Best Practices for Effective Project Issue Management

Ken Martin
By | Updated May 13, 2025 | 8 min read
issue management

In any project lifecycle, there will always be unexpected problems and issues that arise. When these issues arise, a project manager must be prepared to deal with them, or they could impact the project’s outcome.

According to the Project Management Institute (PMI), poor issue and risk management is one of the leading causes of project failure. That’s why a clear issue management process is essential. It ensures problems are tracked, assigned, and resolved before they escalate.

What is Issue Management?

Issue management is the process of identifying and resolving problems that arise during a project. Issues with staff, suppliers, technical failures, or material shortages can negatively affect a project’s outcome.

Unresolved issues can create conflict, delay progress, and prevent the project team from reaching goals, milestones, and deliverables. Issue management helps minimize the impact of these problems and keeps the project on track.

How Issue Management Works

Issue management follows a process similar to risk management, and the two are often considered together. Any issues that arise should be recorded in a Project Issues Log to ensure they are tracked and addressed properly.

The main goal is to identify and document problems that can hinder project success, then review all relevant information to find the best resolution.

Common obstacles include differences of opinion, situations that require investigation, and unexpected responsibilities.

Responsibilities of the Project Manager

Throughout the project, the project manager must regularly manage and monitor issues. They are responsible for following up with issue owners to make sure progress is being made and reporting the status of each issue.

Issue management also contributes to constructive working relationships with project stakeholders and the project team. A well-maintained issue log is an essential tool for tracking and monitoring the resolution process.

What is an Issue?

An issue is anything that may prevent a project from meeting its goals. It is a problem that has already occurred, which can slow down or block the project’s progress.

It can also be a point of dispute, an unsettled matter under discussion, or a situation with opposing views or disagreements.

Types of Issues

Anyone associated with the project can raise an issue. It’s important to have a clear process in place for how the team should raise and report issues.

Defining categories for different types of issues helps track them more easily and assign the right people to resolve them.

Technical Issues

  • Technological problems within the project.
  • Technical requirements have changed.
  • Insufficient project funding.
  • Equipment delays that affect timelines.

 

Management and Communication Issues

 

Business and Process Issues

  • Business process issues related to a project’s design.
  • Changes in business requirements.
  • Scope and schedule changes from unplanned requests.
  • Overly aggressive project schedules.

 

External and Third-Party Issues

  • Equipment delays have impacted the project schedule.
  • Third-party issues or “bugs” that need to be reported to an external supplier.
  • Transition activity issues.
  • Dependencies with other projects.

 

What is a Risk?

In project management, a risk is an uncertain event or condition that could have a positive or negative impact on a project’s objectives.

Key Issue Management Questions

Effective issue management requires clear planning and decision-making throughout the project. Project managers should consider the following key questions when setting up their issue management process:

  • How will a PM assign responsibility for resolving the issue?
  • How will a PM know when to escalate an issue to management or the steering committee?
  • What criteria will determine an issue’s priority status?
  • Who will set the target resolution date?
  • How will issues be communicated among the team members?
  • How will a PM identify different issues if several occur during one project?
  • If change orders are needed, how will those be handled?
  • When the resolution affects the project budget or schedule, what will the update process be, and who will be responsible for it?

 

What is a Project Issues Log?

Issues should be recorded as soon as they occur. Project managers typically use an Issues Log, often included in a RAID template, to report and communicate what’s happening in the project. This makes sure that issues are raised, investigated, and resolved quickly and effectively.

Without a defined process, issues may be overlooked until it’s too late to act. The Issues Log lists problems found at the start and throughout the life of the project.

It shows the actions taken to solve each issue and the results. The log should be updated regularly. Resolved issues are closed, and new ones are added as they arise.

Benefits of Using an Issues Log

An issues log has some of the following benefits:

  • Provides a useful tool for managing and addressing issues identified before and during the project.
  • Identifies and documents actions taken to resolve each issue.
  • Provides project updates to senior management and gives them a structured way to monitor issues.
  • Keeps key stakeholders informed about ongoing issues.
  • Encourages stakeholder engagement by providing a channel for feedback.

 

When to Create an Issues Log

The Issues Log should be created at the start of the project as part of the RAID documentation. How often it’s updated depends on the project size. For most projects, a weekly review of open issues is usually enough to stay on track.

The Issue Log Format

A well-structured Issues Log typically includes the following details:

  • The date when the issue was raised.
  • An issue reference number (ID) to identify different issues.
  • A name for the i
  • A brief description of the cause of the issue:
    • Technical issue.
    • Business process issues as part of the project’s design.
    • Change management issues from business, customer, or environmental changes.
    • Resource issues from equipment, material, or staff.
    • Third-party issues with vendors, suppliers, or other outside parties.
  • The name of the person who raised this issue.
  • The date the issue is assigned to someone.
  • Name of the person(s) assigned to solve the issue.
  • The priority and severity of the issue, including the consequences of not resolving the issue.

 

 Tracking Issue Status

Each issue should be labeled clearly to show its current status. Common status labels include:

  • Open – The issue has been identified, but no action has been taken yet.
  • Investigating – The issue and possible solutions are being investigated.
  • Implementing – The issue resolution is in progress.
  • Escalated – The issue has been raised to management or the project steering committee, and directions or approval of a solution are
  • Resolved – The resolution has been implemented, and the issue is closed.

 

Documenting Actions and Resolution

Include a summary of actions taken and the final resolution. Also, note the date the issue was resolved to track how long it remained open.

6 Best Practices For Issue Management

Risk and issue management is critical to keeping a project on track. Following a few simple best practices makes it easier to identify issues, manage projects, and resolve problems before they impact the overall project.

1. Surface and Address Problems Early

Potential problems should be raised as soon as they are identified. Proactively managing issues early helps minimize their effect on the project.

2. Keep Issues Visible

Make issues visible to the relevant stakeholders. Regular communication builds trust and keeps everyone aligned.

3. Plan for Escalation

An issue escalation process should be part of the overall issue management plan. It should be clearly documented before the project begins.

4. Document Every Issue

All issues, regardless of how minor they seem, should be centrally documented in an issue log. This ensures nothing is overlooked.

5. Clearly Define Issues

Each issue should be described clearly so that it is easy to understand how to resolve it. Good documentation speeds up resolution.

6. Use “Traffic Lights” to Track Progress

Use ‘traffic lights’ for issue tracking. This provides an easy-to-see indication of whether issues are under control. Traffic lights could be used as follows:

  • Red – The project cannot continue until the issue is resolved.
  • Amber – The resolution is in progress, and work can proceed soon.

 

Stay Ahead of Issues with BrightWork

Managing issues effectively is easier with the right project management tools. BrightWork helps you track, assign, and resolve project issues with built-in templates, visual dashboards, and real-time updates.

Stay on top of problems, reduce project risk, and keep your team aligned – all in one place. Try BrightWork’s project management templates to improve your issue management.

Ken Martin
Ken Martin

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