The All-In-One Guide To Using Work Breakdown Structures For Business

Starting a business can be challenging; however, running it successfully for a long time can be even harder.

17:31 29 September 2022

Starting a business can be challenging; however, running it successfully for a long time can be even harder. 

 

According to one report, more than 18% of businesses in America fail during their first year. Although reasons can vary, the most common one is poor management. 

 

Companies are looking for various avenues to streamline their processes and operations. They seek innovative solutions to operate their business effectively and efficiently. 

 

One effective way that is used widely by various businesses and project managers are work breakdown structure templates. 

 

This article will explain what a work breakdown structure is, along with its benefits and development. 

 

What Exactly Is A Work Breakdown Structure (WBS)?

One of the best project management tools in the world, work breakdown structure (WBS), is a hierarchical, deliverable-oriented, and visual deconstruction of a project. 

 

It’s a useful diagram for businesses and project managers as it breaks down big projects into small and manageable parts that contain project outcomes.

 

How To Develop A WBS?

Here’s a list of steps we rounded up to help create a WBS from scratch:

 

Step 1

Gather your team, including various project managers, subject-matter experts, etc., to determine your project’s deliverables as well as sub-deliverables.

 

Step 2

Muster all the required documents from project charters and scope management plans to scope statements and more. 

 

Step 3

Determine the key project deliverables. They must appear at the 2nd level of WBS. They will be critical to a project’s completion and performed by separate teams, meaning a similar team won’t work on completing another deliverable.

 

Step 4 

Break down your key project deliverables into small parts of tasks (work packages) with the assistance of subject-matter experts. Put simply, determine the work or task necessary to finish each deliverable. 

 

Step 5

Create a work breakdown structure dictionary – a document including definitions and scope of various elements in WBS. 

 

From work package ID and name to due dates, estimated costs, and people assigned with work, the WBS dictionary should include all this information and more. It helps your team members better understand work packages. 

 

Step 6

You can develop work breakdown structures (WBS) using various formats such as tabular structures, text-based WBS, or visually appealing flowcharts. 

 

Share WBS with your team when completed. Good WBS templates can be shared quickly with other team members using a secure and safe share link. After sharing, you can easily collaborate in real time. 

 

Why Use A Work Breakdown Structure?

A work breakdown structure template and software is an effective tool for various programs, initiatives, and projects to understand what you must perform to successfully complete deliverable(s). 

 

Listed below are a few benefits of developing a work breakdown structure for your business:

 

Create Independent And Measurable Tasks

A WBS helps project managers and businesses reduce complexity and challenging activities into task collections. 

 

This is crucial because project managers can oversee tasks more efficiently than complex activities. Make sure all tasks are independent and measurable with clearly set limits. 

 

Note: Include your project work only in the task to make it more effective.

 

Assign Costs To Every Task

Since work breakdown structure tasks can be measured, project managers and businesses can easily assign costs to various tasks. 

 

With the help of WBS software, you can distribute project-budget into specific work packages and tasks and ensure the total cost of a task doesn’t exceed the cost of a project. 

 

Track Progress Of Various Activities

As all tasks are assigned, scheduled, detailed, and identified to meet specific goals, you can determine their progress smoothly by checking which tasks are completed. 

 

In addition, project managers can even check the percentage of completion for each task as it’s measurable. This ability can increase your chance to deliver clients the best services or products within scope. 

 

Provides More Clarity Around Job Roles

WBS helps project managers and businesses assign tasks to various team members, providing more clarity around work and tasks and even includes deadlines for deliverables. 

 

This way, teams better understand how their roles and responsibilities contribute to meeting deliverables and project goals.

 

On-Time Delivery 

Work breakdown structure is a visually rich, hierarchical tree structure of project scope and deliverables to ensure that all tasks are completed. With a WBS, no task can be lost during the process. 

 

This breakdown reduces confusion and ambiguity around roles, and responsibilities members have to perform along with due dates. It also helps you save time and effort and better utilize an individual’s workday. 

 

Takeaway

A work breakdown structure is an efficient tool and solution to your various management-related troubles. From streamlining processes and assigning tasks on micro levels to project management, WBS can help you perform it effectively and successfully. 

 

We know how tricky and challenging it is to create a WBS. Follow our guide to the T to help develop an effective WBS to simplify business operations and processes.