A project baseline typically includes the following components:<\/p>\n\n\n\n
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- Scope baseline:<\/strong> based on the project scope consists of the project\u2019s objectives<\/a>, deliverables, requirements, or any other relevant information that defines what the project will accomplish.<\/li>\n\n\n\n
- Schedule baseline:<\/strong> includes the project\u2019s timeline<\/a>, start and end dates, milestones, and overall project duration.<\/li>\n\n\n\n
- Cost baseline:<\/strong> outlines the project\u2019s estimated costs<\/a>, including resources, materials, equipment, and other expenses.<\/li>\n<\/ul>\n\n\n\n
Why is a project baseline important?<\/h2>\n\n\n\n
A project baseline is important for various reasons, such as:<\/p>\n\n\n\n
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- Facilitating <\/strong>project monitoring<\/strong><\/a>: <\/strong>If you know from the start what the expectations and requirements of the project are, it\u2019s much simpler to monitor progress. <\/li>\n\n\n\n
- Helping measure project performance:<\/strong> Project managers can use the baseline to determine if the project is on track, ahead, or behind schedule.<\/li>\n\n\n\n
- Enhancing cost management:<\/strong> It allows project managers to accurately monitor and control project costs<\/a>. <\/li>\n\n\n\n
- Helping manage stakeholder expectations<\/strong>: By providing a clear cost baseline from the start, project managers ensure effective communication and transparency with stakeholders. <\/li>\n<\/ul>\n\n\n\n
Now that you know project baselines act as benchmarks for monitoring project performance, you might ask: <\/p>\n\n\n\n
How do you create a project baseline?<\/p>\n\n\n\n
Let\u2019s take a look.<\/p>\n\n\n
\n Further Reading:<\/span>\n\n\n \n![\"What\u2019s](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/07\/blog-availability-overview-112x59.jpg\")
\n What\u2019s New: Availability Overview For Frictionless Resource Planning<\/span>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n \n\n\nHow to create a baseline project plan?<\/h2>\n\n\n\n
Creating a baseline for your project might sound easy, but many project managers find it challenging to put their planning ideas into practice.<\/p>\n\n\n\n
To help with that, here are three important steps to take when creating an initial plan for your project.<\/p>\n\n\n\n
Scope baseline: start with a scope statement<\/h3>\n\n\n\n
A good starting point for creating your scope baseline is a scope statement, which is a document that will answer questions like:<\/p>\n\n\n\n
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- What are the project\u2019s goals and objectives?<\/li>\n\n\n\n
- What are the key deliverables and milestones?<\/li>\n\n\n\n
- What tasks are involved?<\/li>\n\n\n\n
- What are the key deliverables?<\/li>\n\n\n\n
- What are the constraints and assumptions?<\/li>\n<\/ul>\n\n\n\n
Answering those questions will help you keep the project within scope and prevent scope creep<\/a>.<\/p>\n\n\n
\n Further Reading:<\/span>\n\n\n \n![\"Steal](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2022\/11\/project-whiteboard-112x57.jpg\")
\n Steal Our 8-Step Requirements Gathering Process for Project Management<\/span>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n \n\n\nSchedule baseline: use a Gantt chart timeline<\/h3>\n\n\n\n
Next, establish the key milestones, due dates, and the overall project timeline<\/a>. <\/p>\n\n\n\n
Some good questions to ask when creating the schedule baseline are:<\/p>\n\n\n\n
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- What are the logical milestones for this project?<\/li>\n\n\n\n
- What are the high-level tasks (or activities) needed to complete the project? (Use Work Breakdown Struture<\/a> to identify these tasks.)<\/li>\n\n\n\n
- What are the natural order and dependencies between the tasks?<\/li>\n\n\n\n
- What is the estimated duration<\/a> of each task? (Looking at past projects might help with this.)<\/li>\n<\/ul>\n\n\n\n
After you organize your workload based on your estimates, create a Gantt chart<\/a> (aka project timeline) \u2014 a graphical illustration of project tasks, durations, and interdependencies. <\/p>\n\n\n\n
You can easily create your project schedule using a timeline app<\/a> like Toggl Plan. <\/p>\n\n\n\n
Here\u2019s how:<\/p>\n\n\n\n
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- On the left sidebar, click on the \u2018+\u2019<\/strong> sign next to the Projects section to create a new project<\/strong>.<\/li>\n<\/ol>\n\n\n\n
![\"Creating](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/08\/Create-a-new-project-1024x468.jpg\")
<\/figure>\n\n\n\n- \n
- Then, you can create tasks for your project. <\/li>\n<\/ol>\n\n\n\n
To create a task<\/strong> in Toggl Plan<\/a>, click on New Task<\/strong> on the top right of your screen. <\/p>\n\n\n\n
![\"A](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/08\/Create-a-task-in-Toggl-Plan-1024x474.jpg\")
<\/figure>\n\n\n\n- \n
- Then, a little window will pop up where you can add details like:<\/li>\n<\/ol>\n\n\n\n
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- Name of the task<\/li>\n\n\n\n
- Start and end date<\/li>\n\n\n\n
- Custom notes<\/li>\n\n\n\n
- Time estimates<\/li>\n<\/ul>\n\n\n\n
![\"A](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/08\/Adding-task-details-in-Toggl-Plan-1024x473.jpg\")
<\/figure>\n\n\n\n- \n
- The next step in creating your schedule baseline is to add milestones.<\/li>\n<\/ol>\n\n\n\n
To create a milestone<\/strong>, just click on the date on top of your timeline<\/strong>. <\/p>\n\n\n\n
A window will pop up, where you can name your milestone and choose a color to differentiate it from other milestones. <\/p>\n\n\n\n
![\"A](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/08\/How-to-Add-a-New-Milestone-in-Toggl-Plan-1024x467.jpg\")
<\/figure>\n\n\n\nCost baseline: don\u2019t forget contingency reserves<\/h3>\n\n\n\n
Time and money. Two essential resources that you must efficiently manage from the start of a project to ensure its success. <\/p>\n\n\n\n
The cost baseline will help with the latter by establishing the project budget and overall financial requirements. <\/p>\n\n\n\n
But what should the cost baseline include? <\/p>\n\n\n\n
Here are its key components:<\/p>\n\n\n\n
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- Direct costs:<\/strong> These are expenses directly related to the project and typically include labor, materials, or equipment.<\/li>\n<\/ul>\n\n\n\n
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- Indirect costs:<\/strong> Also known as overhead costs, these are expenses that are not directly related to a specific task but are necessary for the overall execution of the project. Examples include administrative costs, utilities, rent, project management salaries, etc. <\/li>\n\n\n\n
- Contingency reserves:<\/strong> These are funds set aside to account for known risks or uncertainties that may impact the project\u2019s cost. It\u2019s a good idea to include contingency reserves in your cost baseline to mitigate potential cost overruns resulting from identified risks.<\/li>\n<\/ul>\n\n\n\n
To create a solid cost baseline, here\u2019s a quick step-by-step process:<\/p>\n\n\n\n
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- Estimate project costs:<\/strong> Don\u2019t forget to consider labor, materials, equipment, software licenses, subcontractors, overhead costs, etc., when estimating the costs associated with a project. <\/li>\n\n\n\n
- Breakdown cost elements:<\/strong> For example, if your labor costs are a significant part of your overall project cost, break it down into individual roles to gain more accurate estimates. <\/li>\n\n\n\n
- Determine resource requirements:<\/strong> What are the resources required to complete the project? What are the quantity, duration, and associated costs for each resource?<\/li>\n\n\n\n
- Assign cost estimates:<\/strong> Associate costs with specific activities, tasks, or deliverables based on your resource requirements and their durations. <\/li>\n\n\n\n
- Aggregate costs:<\/strong> Summarize the estimated costs from your cost elements to create a comprehensive project budget.<\/li>\n<\/ol>\n\n\n\n
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- Validate and review:<\/strong> Review your cost estimates with the project stakeholders. <\/li>\n\n\n\n
- Finalize the cost baseline:<\/strong> Once you gain approval from stakeholders, establish the cost baseline. <\/li>\n\n\n\n
- Monitor and control costs:<\/strong> Compare actual costs to the cost baseline and make adjustments where necessary. <\/li>\n<\/ol>\n\n\n\n
Next, we\u2019ll look at how you can measure and track your project\u2019s progress.<\/p>\n\n\n\n
How to track and measure progress against the project baseline<\/h2>\n\n\n\n
Tracking and measuring your progress can be challenging.<\/p>\n\n\n\n
The good news is that with tools like Toggl Plan and Toggl Track, it\u2019s much easier to measure and track your project\u2019s progress. <\/p>\n\n\n\n
Let\u2019s look at how we can make your life easier when tracking each baseline created in your project.<\/p>\n\n\n\n
Scope baseline: tasks, phases, deliverables<\/h3>\n\n\n\n
With Toggl Plan, you can follow the progress of your entire project in one view<\/p>\n\n\n\n
You can access this view by clicking on the Project Timeline and Board view button at the top right-hand corner of your view.<\/p>\n\n\n\n
![\"A](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/08\/How-to-access-the-projects-progress-overview-in-Toggl-Plan-1024x495.jpg\")
<\/figure>\n\n\n\nHere you can see two boxes, one which shows the task progress and one which sums up the time estimates for all Tasks in this specific Project.<\/p>\n\n\n\n
![\"A](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/08\/Progress-overview-of-a-project-in-Toggl-Plan-1024x471.png\")
<\/figure>\n\n\n\nIf you use Toggl Track and have enabled the integration, this view also provides:<\/p>\n\n\n\n
- \n
- A comparison of tracked and planned hours.<\/li>\n\n\n\n
- A direct link to the Detailed Report of this Project in Toggl Track.<\/li>\n<\/ul>\n\n\n\n
![\"A](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/08\/Detailed-Report-of-a-Project-in-Toggl-Track-1024x310.png\")
<\/figure>\n\n\n\nSchedule baseline: timeline, milestones<\/h3>\n\n\n\n
With Toggl Plan it\u2019s easy to create and track milestones so you can ensure your project development meets the schedule baseline\u2019s requirements. <\/p>\n\n\n\n
To add a milestone to your timeline:<\/p>\n\n\n\n
- \n
- Click on a date in the header that you wish to add a milestone to.<\/li>\n\n\n\n
- Add a relevant name for your milestone.<\/li>\n\n\n\n
- Choose a color that matches your project.<\/li>\n<\/ol>\n\n\n\n
![\"A](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/08\/Adding-a-Milestone-in-Toggl-Plan-1024x506.png\")
<\/figure>\n\n\n\nYou can add project-specific milestones, which are only visible in the project\u2019s timeline, or global milestones, which will be visible in every timeline. <\/p>\n\n\n\n
Also, you can easily share existing milestones with clients and stakeholders to keep them informed and ensure everybody is on the same page. <\/p>\n\n\n\n
If you want to include only the most relevant milestones in your project, you can choose to exclude specific milestones.<\/p>\n\n\n\n
![\"A](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/08\/Sharing-a-Milestone-in-Toggl-Plan-1024x507.png\")
<\/figure>\n\n\n\nBy easily creating and managing milestones in Toggl Plan<\/a>, you can track critical dates of your project visually.<\/p>\n\n\n\n
Also, the Toggl Track integration<\/a> allows you to visualize the actual time tracked compared to the time estimated in the schedule baseline. <\/p>\n\n\n\n
Cost baseline: labor costs, project budget<\/h3>\n\n\n\n
When tracking project costs, it\u2019s easy to get lost in numbers. But not if you use Toggl Track, which offers valuable insights into project profitability<\/a> and resource management.<\/p>\n\n\n\n
You can create project alerts in Toggl Track<\/a> for projects that reach:<\/p>\n\n\n\n
- \n
- A certain percentage of their time estimate<\/li>\n\n\n\n
- A certain percentage of their fixed-fee amount<\/li>\n<\/ul>\n\n\n\n
![\"A](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/08\/Creating-Project-Alerts-in-Toggl-Track.png\")
<\/figure>\n\n\n\nWith the Insights feature in Toggl Track, gathering data trends and measuring the profitability of your projects gets much easier. <\/p>\n\n\n\n
You can select the following types of insights to explore:<\/p>\n\n\n\n
- \n
- Data trends<\/li>\n\n\n\n
- Project profitability<\/li>\n\n\n\n
- Employee profitability<\/li>\n\n\n\n
- Comparative analysis<\/li>\n<\/ul>\n\n\n\n
![\"A](\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/08\/Insights-Options-in-Toggl-Track-1024x411.png\")
<\/figure>\n\n\n\nYou can also select the date range in Insights so you can view cost reports during specific timeframes. <\/p>\n\n\n\n
Create a project baseline with Toggl<\/h2>\n\n\n\n
Now that you know the importance of a project baseline and what it takes to create a solid one, you may also understand the need for a trusted partner in your project management journey.<\/p>\n\n\n\n
Toggl Plan can offer you support to create, manage, and measure projects more quickly and efficiently. And Toggl Track<\/a> can help you track and make the most out of employees\u2019 hours.<\/p>\n\n\n\n
Try Toggl Plan for free<\/a> and see what it can do for your next project!<\/p>\n\n\n
\n\n
- Finalize the cost baseline:<\/strong> Once you gain approval from stakeholders, establish the cost baseline. <\/li>\n\n\n\n
- Breakdown cost elements:<\/strong> For example, if your labor costs are a significant part of your overall project cost, break it down into individual roles to gain more accurate estimates. <\/li>\n\n\n\n
- Contingency reserves:<\/strong> These are funds set aside to account for known risks or uncertainties that may impact the project\u2019s cost. It\u2019s a good idea to include contingency reserves in your cost baseline to mitigate potential cost overruns resulting from identified risks.<\/li>\n<\/ul>\n\n\n\n
- Indirect costs:<\/strong> Also known as overhead costs, these are expenses that are not directly related to a specific task but are necessary for the overall execution of the project. Examples include administrative costs, utilities, rent, project management salaries, etc. <\/li>\n\n\n\n
- Direct costs:<\/strong> These are expenses directly related to the project and typically include labor, materials, or equipment.<\/li>\n<\/ul>\n\n\n\n
- The next step in creating your schedule baseline is to add milestones.<\/li>\n<\/ol>\n\n\n\n
- Then, a little window will pop up where you can add details like:<\/li>\n<\/ol>\n\n\n\n
- Then, you can create tasks for your project. <\/li>\n<\/ol>\n\n\n\n
- Helping measure project performance:<\/strong> Project managers can use the baseline to determine if the project is on track, ahead, or behind schedule.<\/li>\n\n\n\n
- Schedule baseline:<\/strong> includes the project\u2019s timeline<\/a>, start and end dates, milestones, and overall project duration.<\/li>\n\n\n\n