Milestone – what is it?

Milestones are key tools in project management, shaping the path to success by defining important milestones. How can the effective use of milestones contribute to better organisation, monitoring of progress and achievement of business goals?

From this article you will learn:

• What are milestones?
• How to set milestones?
• What are examples of milestones?
• What mistakes to avoid in setting milestones?
• What can be gained from milestones?

Milestone – definition

In a business and project management context, a milestone refers to a significant moment or achievement within a project that significantly affects its progress. They are often used to track progress and measure whether objectives are being met on schedule. They also serve as checkpoints and the achievement of each milestone is usually celebrated and provides an opportunity to reflect on what worked, what can be learnt and what can be improved in the next phases of the project as well as the overall organisational development process, which is particularly relevant for startups.

The term ‘milestone’ comes from ancient times, when distances between points (villages or towns) were measured using physical stones placed along a route every mile or other set distance to indicate distance or direction. Figuratively, a milestone marks an important point in development or significant moments in an individual’s experience, such as:

• a child’s first steps or words,
• getting married,
• buying a house,
• retirement,
• important anniversaries,
• getting your first job,
• changing career path,
• starting one’s own business.

Milestones are used to document and celebrate important events in an individual’s life, often the result of considerable effort and work. Similar to project management milestones are used to reflect, celebrate achievements and set benchmarks for future aspirations.

Milestones in business are significant project milestones that illustrate important achievements or checkpoints and help teams track progress.

Milestone definition

Setting milestones

Setting project milestones is a key part of planning that helps manage expectations, monitor progress and keep the team focused on the goal. Here are the steps to take to effectively set milestones:

Define the purpose and scope of the project

Start with a clear understanding of the project’s purpose, as clearly defining it will make it easier to identify key milestones. Also analyse the project scope to understand all aspects, requirements and constraints. This will allow you to identify elements that can become milestones.

Next, divide the project into major phases or milestones – each of which may contain one or more milestones that indicate the completion of a significant part of the project. Located at the end of important phases, milestones help to assess whether the project is progressing as planned and whether objectives are being met as expected. They also allow project leaders to better anticipate potential challenges, while enabling them to modify, for example, the company’s growth strategy if necessary.

Identify key results and set deadlines

Identify which events, deliverables or deadlines are most important to the success of the project – these could be critical decisions, completion of milestones, important meetings or deliverables. Along with milestones, it’s worth setting key performance indicators – the former signal the completion of a milestone, while KPIs can be used throughout the project to monitor performance.

Then, based on resources, time constraints and other dependencies in the project, assign realistic dates for each milestone. These allow you to quickly identify any schedule delays and manage changes, minimising negative impacts.

Communicate with the team and integrate into the project plan

Discuss milestones with the team to get members’ feedback and then present them to stakeholders. Everyone should understand and agree on the selected milestones, as this greatly influences the course of future project support and delivery.

Integrate milestones into the overall project plan – they can be part of the schedule, budget, risk management plan or other elements of the documentation. Integrating them into the overall plan ensures that they are visible and part of the project strategy. This helps the team to stay focused and stakeholders to track progress.

Monitor and adapt

Regularly monitor progress against agreed milestones and respond to changes in project scope, schedule, resources or priorities. Flexibility is key to keeping the plan up to date. When a milestone is reached, document the results and analyse what went well and what needs improvement.

Examples of milestones

Milestones in projects can take different forms depending on the type of project, industry, objectives and specific requirements. Each use of milestones signals an important transition point. Here are some examples:

• Completion of the planning phase can mean that all aspects of the project planning, such as scoping, resourcing, budgeting and scheduling, have been approved and prepared for presentation or implementation, providing the basis on which all project milestones will be implemented.
• Budget approval means that the budget for the project has been analysed, approved and secured. Without funding, the next stages of the project cannot proceed.
• The completion of the design phase, for example in engineering, architecture, IT or product development projects, is a key milestone. It means that all the schematics, drawings and plans have been completed and approved to proceed to the production or construction phase.
• The first prototype or beta version are important milestones in product or software development projects. It is a signal that the product is ready for the first tests, reviews and possible revisions.
• Obtaining certification or compliance is one of the most important milestones in projects related to regulated areas such as medicine, pharmaceuticals or construction.
• The launch of a product on the market, the opening of an installation or the commissioning of a system is one of the most visible milestones, signifying that the project has passed all previous stages and is ready to be presented to the final audience.
• In marketing activities or business operations, achieving a certain level of sales, number of users or other key performance indicators can be an important milestone, demonstrating the success of the strategy.

Mistakes related to milestones

During project planning and implementation, managers often encounter pitfalls related to milestones. One of the most common mistakes is to define them inadequately – milestones should be specific, measurable and achievable. Another typical problem is an excessive or insufficient number of milestones – too many can lead to information overload and stress, while too few means there are no control stages to make necessary adjustments.

Setting milestones without considering actual resources and time constraints can also be problematic. No matter how important a milestone is, if the team does not have the resources or time to achieve it, it can lead to frustration, delays and potential project failure. It can also be disastrous to ignore opportunities for adjustment – projects rarely run exactly to plan, and rigidly sticking to milestones, regardless of changing circumstances, can lead to a drop in quality.

One of the biggest mistakes is a lack of communication and collaboration with the team and stakeholders in the process of setting and achieving milestones. This can lead to lack of engagement, misunderstandings and potential resistance, so it is worth ensuring that all parties are actively involved.

Benefits of milestones

Milestones make the project clear and understandable. With clearly defined goals, teams can focus on achieving specific results, which is essential, especially in large projects where it is easy to lose the big picture to the details. They also act as beacons, allowing managers to quickly assess whether a project is on track and to identify problems at an early stage.

In addition, milestones are invaluable for team motivation. Achieving small targets on the way to the final product builds morale and motivates employees, showing them that their work is having a real impact on the progress of the project. This feeling of achievement is key to keeping productivity and engagement high.

In terms of stakeholder communication, milestones provide clear information on what has been achieved and what still needs to be done, allowing, for example, investors to understand the status of their time, financial and operational investments. They are also important for risk management – each milestone achieved is a step closer to the final goal, but also a moment for the team to pause and assess what could go wrong in the upcoming milestones.