What is a baseline in project management?

In project management, a baseline is established as a fixed reference point for measuring project performance. This baseline allows project managers to gauge progress by comparing actual performance against the predefined plan or scope. By setting clear baselines for scope, schedule, and cost, project teams can effectively monitor their work and assess any deviations from the original project plan.

The significance of having a baseline lies in its role in facilitating the tracking of project performance over time. It permits teams to identify variances, enabling informed decision-making and potential corrective actions. Establishing baselines is a critical element as it ensures that all stakeholders have a common understanding of expected outcomes and standards against which performance can be measured throughout the project lifecycle.

In contrast, final project reports, estimates of project risks, and summaries of project objectives serve different purposes in project management and do not function as the reference point needed to evaluate ongoing performance. These elements contribute to project documentation and management but do not provide a foundation for measurement like a baseline does.