Diagram showing the differences between waterfall and agile project management methodologies
Project management

10 Differences Between Agile and Waterfall Project Management

Psoda blog author avatar
4 July 2024

When it comes to managing projects, there are two stand out methodologies: Agile and waterfall. Both have their own strengths and weaknesses and understanding the differences between the two approaches can help you choose the best fit for your project. This article explores ten key differences between each methodology.

1. Project Structure and Planning


The waterfall method follows a linear and sequential structure, where each phase is completed before moving to the next. This method requires detailed planning upfront and follows a predefined project plan.

Benefits of waterfall:

  • Structured approach. Waterfall follows a sequential, structured process, ensuring a clear and well-defined project plan.
  • Detailed planning. Waterfall involves comprehensive upfront planning, allowing for thorough requirements gathering and design.
  • Better forecasting. With the detailed planning in waterfall it is much easier to forecast the most likely date the project will be delivered especially when change is introduced for example overruns on tasks or completely new scope being added to the project.
  • Accountability. Waterfall provides clear accountability for each phase of the project, ensuring clear milestones and deliverables.
  • Documentation. Waterfall emphasises detailed documentation at each project stage, facilitating better traceability and knowledge transfer.
  • Risk management. Waterfall allows for better risk management by addressing potential risks early in the project lifecycle.
  • Cost control. The final cost of the project can be accurately forecasted with each change introduced to the project. This may lead to some changes not being accepted if the cost is too high or for the scope of the project to be reduced in other areas if it is not desirable to increase the budget.


Agile project management is iterative and flexible. Instead of comprehensive planning upfront, it focuses on frequent iterations called sprints. Planning occurs incrementally, with the ability to adapt and change based on feedback.

Benefits of Agile:

  • Flexibility. Agile allows for adaptability and responsiveness to changing project requirements and customer needs.
  • Iterative approach. Agile follows an iterative development process, allowing for continuous feedback and improvement.
  • Collaboration. Agile promotes strong collaboration between team members, stakeholders and customers throughout the project.
  • Faster delivery. Agile enables faster delivery of incremental project outcomes and value.
  • Customer satisfaction. Agile focuses on delivering customer value and ensuring customer satisfaction through frequent deliveries and feedback loops.
  • Cost control. By limiting the number of iterations the final cost of the project can be controlled. However if there were a lot of changes introduced then compromises will have to be made and some lower priority items may stay in the backlog.

2. Team Collaboration


In waterfall, team collaboration is usually limited to specific phases. Each team member works in their siloed area and communication primarily happens through formal documentation and meetings.

  • Phased cooperation. With waterfall, any collaboration is tied to specific project phases. Each step engages relevant team members, allowing them to pool their expertise and insights to enhance the project’s quality and accuracy.
  • Specialised contributions. Every team member’s contributions are delineated by their specialised roles, ensuring that individual expertise is channelled effectively into each phase.
  • Formalised communication. Collaboration occurs through formal documentation and scheduled meetings. This meticulous approach provides a clear record of decisions, developments and progress across the project lifecycle.
  • Structured interaction. In waterfall, communication follows a structured pattern, ensuring that exchanges remain organised and on track. Meetings are used for aligning efforts, sharing updates and addressing concerns.


Agile emphasises frequent collaboration and teamwork. Communication is more dynamic, with daily stand-up meetings and open channels for sharing ideas. Collaboration is encouraged to achieve the best possible outcomes.

In Agile project management, collaboration takes centre stage as an indispensable factor for achieving project goals:

  • Regular engagements. Agile structures daily stand-up meetings that facilitate constant team synchronisation and end-of-sprint retrospectives are some examples. This consistent interaction aids in sharing insights, addressing challenges and maintaining project momentum.
  • Dynamic communication. Agile projects are characterised by open and fluid channels of communication. Real-time feedback and discussions replace the rigidity of formal documentation, fostering a responsive environment for idea exchange.
  • Encouraging idea flow. Agile’s collaborative environment nurtures a culture of idea-sharing and solution-suggesting. Team members are prompted to contribute ideas, offer improvements and voice concerns, promoting innovation and constructive problem-solving.
  • Diverse skill utilisation. Agile brings together a diverse range of skills and breaks out of the traditional silos. This environment encourages the collective team to leverage varied strengths, resulting in comprehensive and well-rounded project outcomes.
  • Outcome-centric approach. Agile aligns all efforts with the project’s overarching objectives. This ensures that each sprint contributes directly to the desired end results, emphasising purposeful progress.

3. Flexibility and Adaptability


Waterfall lacks flexibility once the project plan is set. Changes are challenging to accommodate and any modifications may require revisiting previous stages.

  • Rigid phased approach. Waterfall’s distinct phases (requirements, design, implementation, testing and delivery) are sequential and interdependent, making it challenging to incorporate changes once a phase is completed. Any alterations often necessitate revisiting earlier stages, causing delays and potential disruptions to the entire project timeline.
  • Limited stakeholder involvement. Waterfall’s linear structure limits stakeholder engagement to specific phases, reducing the opportunity for continuous feedback and collaboration. As a result, adjustments based on evolving user needs or market dynamics might be neglected until later phases, leading to potential misalignment with project goals.
  • Change management complexity. Introducing changes in the waterfall model requires thorough documentation, re-evaluation of requirements and rework of design and development components. This complexity can lead to increased project costs and extended timelines, as resources are diverted from progressing through planned stages to accommodate modifications.
  • Risk of scope creep. The lack of flexibility in the waterfall approach can inadvertently lead to scope creep—a phenomenon where project requirements expand beyond the initially defined scope. Since accommodating changes is arduous, stakeholders might withhold certain requirements until later stages, contributing to time and cost overruns.
  • Limited adaptation to external factors. Waterfall’s rigid structure can make it difficult to adapt to external factors such as technological advancements, market shifts or regulatory changes. As these dynamics evolve the predefined project plan might become obsolete, leaving the project ill-prepared to address new challenges or opportunities.

However, the very rigidity that presents a challenge can also be a boon in certain scenarios. When dealing with projects where a well-defined plan is crucial, such as construction or manufacturing, the waterfall approach provides a stable roadmap. The comprehensive documentation and phased progression reduce the likelihood of overlooking critical elements, ensuring precision in execution.


Agile embraces change and adaptability. It thrives on feedback and allows for course corrections during each sprint. This flexibility ensures that the project aligns with evolving needs and priorities.

  • Iterative development. Agile divides the project into smaller iterations, or sprints, allowing for frequent evaluations and adjustments. This iterative approach enables teams to respond to changing requirements, stakeholder feedback and market shifts in a timely manner.
  • Continuous feedback loop. Agile’s emphasis on regular feedback from stakeholders, end-users and team members ensures that the project remains aligned with evolving needs and priorities. This dynamic feedback loop enables quick identification and resolution of issues.
  • Embracing change. Agile acknowledges that change is inevitable and even welcome. The methodology is designed to accommodate changes in requirements, technology or market conditions throughout the project lifecycle. This flexibility minimises the risk of delivering a product that no longer meets current demands.
  • Customer-centric approach. Agile puts customers and users at the centre of the development process. By involving them in each sprint’s planning, review and testing phases, agile ensures that the delivered product not only meets their needs but is also refined based on real-world experiences.
  • Empowered cross-functional teams. Agile teams are empowered to make decisions and adjustments within their defined scope during each sprint. This empowerment, coupled with open communication, enables teams to address challenges swiftly and respond effectively to unforeseen circumstances.

One thing to keep in mind with agile is that continuous adaptability might pose challenges if not managed diligently. For instance, if the development team constantly shifts focus based on every minor change, the project might suffer from scope creep, timeline extensions and a lack of stable features. If the project is limited to a fixed number of sprints due to time constraints or to a fixed budget then the changes will push other features down the priority list and they may never be delivered or require future projects and budget to complete.

4. Project Visibility


In waterfall, project progress is typically visible to stakeholders during key milestones or at project completion. Limited visibility during intermediate stages can make it difficult to address issues promptly.

While waterfall’s visibility might be concentrated around milestones, it still offers advantages:

  • Structured updates. Waterfall’s milestone-based visibility provides stakeholders with structured and comprehensive updates. This periodic reporting can instil confidence as stakeholders observe the project’s gradual progression.
  • Focused attention. Limited visibility during intermediate stages can allow teams to focus without the distraction of constant updates. This can be beneficial when in-depth focus and specialised work are crucial.
  • Complete assessments. Stakeholders are provided the opportunity to assess project components in their entirety during milestone review points. This review can reveal both accomplishments and potential areas for refinement.


Agile provides continuous visibility into project progress through regular demonstrations of working software or prototypes. Stakeholders have the opportunity to provide feedback throughout the project lifecycle.

When it comes to project visibility, Agile emerges as a dynamic force, with its continuous feedback loop and transparent demonstrations of working products:

  • Stakeholder engagement. Agile offers stakeholders an uninterrupted view into project evolution. This active involvement fosters a sense of ownership and investment, as stakeholders witness first-hand the realisation of their vision.
  • Timely issue resolution. With Agile’s regular showcases of prototypes or software, issues are unearthed early. This proactive identification allows for swift corrective actions, minimising the impact on project timelines and budgets.
  • Course correction. Ongoing visibility allows agile teams to make informed adjustments. Teams can respond nimbly to shifting priorities, ensuring that the project remains in alignment with stakeholders’ ever changing expectations.

5. Risk Management


Waterfall project management tends to focus heavily on risk identification and mitigation upfront during the planning phase. This proactive approach to risk management helps in minimising potential issues later in the project.

  • Early issue prevention. By addressing risks during the planning phase, waterfall mitigates potential problems before they can escalate. This proactive stance helps prevent most issues from arising and causing disruptions later in the project.
  • Resource optimisation. Proactively managing risks in waterfall allows for strategic allocation of resources. By identifying potential obstacles upfront, teams can allocate resources efficiently and avoid last-minute adjustments that might impact project progress.
  • Stakeholder Confidence. Waterfall’s proactive risk management approach demonstrates a commitment to quality and predictability. Stakeholders gain confidence knowing that potential pitfalls are being addressed, fostering stronger support for the project.
  • Documentation for accountability. Waterfall’s emphasis on risk identification and mitigation is documented thoroughly, promoting accountability among team members. This documentation also serves as a reference point for future projects, enhancing knowledge transfer.


Agile project management addresses risk throughout the project, adapting as the project evolves. Risks are identified and managed iteratively, this continuous approach to risk management reduces the impact of unforeseen challenges.

  • Real-Time risk mitigation: Agile’s continuous risk assessment allows teams to identify and manage risks as they emerge, reducing the likelihood of risks evolving into major issues. This proactive approach ensures that challenges are tackled promptly.
  • Adaptive strategies. Agile’s iterative nature enables teams to adapt risk management strategies based on evolving project dynamics. This agility ensures that mitigation efforts remain relevant and effective throughout the project lifecycle.
  • Iterative learning. The continuous approach to risk assessment fosters a culture of learning and improvement. Teams apply lessons from previous iterations to refine risk management strategies, leading to enhanced project performance over time.
  • Collaborative engagement. Agile’s collaborative environment encourages team members to contribute to risk assessment and mitigation efforts. This collective input enhances the project’s ability to identify a wide range of potential risks.
  • Reduced risk impact. Addressing risks iteratively minimises the impact of unforeseen challenges. By dealing with risks in smaller, manageable increments reduces the chances of major disruptions to the project’s progress.
  • Risk blind spots. This iterative approach to risk management means that the team might not be considering any risks from future iterations that might’ve been mitigated through their design decisions in the current iterations. This often leads to a need to refactor the code at a later date impacting the time, cost or scope that might be delivered by the end of the project.

6. Customer Engagement


Waterfall projects typically involve limited customer involvement. Feedback from stakeholders may be received near the end, reducing opportunities for course correction.

  • Requirements clarity. Early customer involvement helps clarify project requirements and expectations, ensuring a shared understanding between the project team and stakeholders. This reduces the likelihood of miscommunication and scope creep.
  • Consistent deliverables. Waterfall’s linear approach ensures that each project phase builds on the previous one, resulting in a structured and cohesive final product.
  • Minimal disruptions. Waterfall’s limited customer involvement minimises the chances of frequent changes or disruptions. This approach can be suitable for projects where stable requirements are crucial to customer satisfaction.
  • Clear milestones: Waterfall’s distinct phases provide clear milestones for customers to review and assess progress. This transparency ensures that customers have opportunities to evaluate the project’s alignment with their expectations.


Agile emphasises continuous customer engagement. Stakeholders are involved from the start and have regular opportunities to provide feedback, ensuring that the end result meets their expectations.

  • Continuous feedback. Agile’s iterative nature ensures that customers are involved throughout the project, allowing them to provide feedback at various stages. This ongoing feedback loop ensures that the end product aligns closely with customer expectations.
  • Adaptability. Agile’s frequent feedback cycles enable the project team to adapt quickly to changing customer needs and evolving market dynamics. This adaptability ensures that the delivered product remains relevant and valuable.
  • Customer-centric focus. Agile’s emphasis on customer collaboration places customers at the centre of the development process. Regular engagement ensures that the product remains customer-centric, leading to higher levels of satisfaction.
  • Reduced waste. Agile’s continuous feedback and iterative development reduce the chances of building features or functionalities that customers do not need or want. This efficiency leads to a more valuable end product and higher customer satisfaction.
  • Early visibility. Agile’s incremental delivery approach allows customers to see tangible progress early on. This visibility builds confidence and enables customers to track project development, enhancing their overall satisfaction.
  • Early access to benefits. With Agile’s incremental delivery approach some features from the project will be delivered with each iteration allowing the end users to start using the product and gaining that benefit earlier than with a waterfall approach.

7. Documentation


Waterfall projects rely heavily on comprehensive documentation throughout the entire lifecycle. Formal documents such as requirement specifications, project plans and schedules play a central role.

  • Comprehensive requirements. Waterfall’s documentation is detailed and extensive, capturing comprehensive requirements upfront. This thorough documentation aims to establish a clear project scope from the outset.
  • Formal specifications. Formal documents, such as requirement specifications and design documents are central in waterfall. These documents serve as blueprints for the entire project, guiding development and ensuring consistency.
  • Linear traceability: Waterfall’s documentation approach emphasises traceability, ensuring that each phase’s deliverables align with the documented requirements. When things do go wrong it is much easier to trace it back to a source with this traceability in place.
  • Compliance: In industries with strict regulations, waterfall’s detailed documentation approach supports compliance requirements. Formal documentation helps demonstrate adherence to industry standards and best practices.


Agile focuses on delivering working software or tangible outcomes over extensive documentation. Documentation is still important but it is more flexible and designed to accommodate changing requirements.

  • Working software focus: Agile prioritises delivering working software or tangible outcomes over extensive documentation. The emphasis is on producing functional results that users can interact with, promoting quicker value delivery.
  • Lightweight and adaptive: Agile documentation is more lightweight and adaptable. Instead of rigid documents, agile relies on flexibility to capture evolving project needs and priorities.
  • User stories and backlogs: Agile uses user stories and product backlogs to capture requirements and desired functionalities. These agile artifacts serve as dynamic documentation that evolves alongside the project.
  • Just-in-time documentation: Agile documentation is created as needed and typically focuses on what is essential for the current iteration. This just-in-time approach minimises unnecessary documentation and streamlines the development process.

8. Time to Market


Waterfall projects tend to have longer development cycles. Since each phase must be completed before moving forward, it may take time to deliver the final product to the market.

  • Sequential phases: Waterfall’s sequential nature requires completion of each phase before moving to the next. This can lead to extended development cycles, delaying product launch and impacting time to market.
  • Cumbersome changes: Modifying requirements or features mid-project in waterfall can be complex due to the rigid structure. This can further contribute to delays in delivering the final product to the market.
  • Risk of obsolescence: Longer development cycles in waterfall may result in products becoming outdated by the time they are released to the market, potentially impacting their relevance and competitive edge.
  • Limited early feedback: Waterfall’s late involvement of stakeholders and end-users means that valuable feedback is often received late in the process, potentially resulting in products that don’t fully meet current market demands.
  • Market uncertainty: Waterfall’s extended timeline exposes projects to market uncertainties, making it challenging to predict market conditions accurately by the time the product is launched.


Agile projects deliver incremental value in shorter time frames. Early iterations can be released to the market while development continues on subsequent iterations, allowing for rapid deployment.

  • Iterative releases: Agile’s approach involves delivering at shorter intervals, allowing for early releases to the market. This facilitates a quicker response to market demands and trends.
  • Faster time to market: Agile’s focus on incremental delivery enables businesses to enter the market sooner with functional products, gaining an advantage in terms of market presence and customer engagement.
  • Adaptive approach: Agile’s iterative cycles allow businesses to adapt to evolving market dynamics, aligning with changing customer preferences and potentially leading to better market positioning.
  • Continuous feedback: Agile’s regular customer engagement and feedback loops ensure that products remain closely aligned with user needs, enhancing their potential success upon market entry.
  • Competitive edge: Agile’s ability to release functional features rapidly can give businesses a competitive edge, capturing early market share and potentially improving their visibility and ranking in competitive markets.

9. Quality Assurance


Waterfall emphasises quality control through thorough review and testing. The project must pass quality gates at each phase before proceeding to the next, ensuring fewer defects in the final product.

  • Thorough testing: Waterfall’s distinct testing phase allow for comprehensive testing of each project component. This sequential approach ensures that each aspect is thoroughly examined, potentially leading to a more robust final product.
  • Structured quality gates: The quality gates in waterfall serve as checkpoints that each phase must clear before proceeding. This increases the likelihood of identifying and rectifying defects before they escalate.
  • Defect prevention: Waterfall’s emphasis on quality control helps identify defects early, preventing them from accumulating and resulting in a higher-quality end product. This focus aligns with a proactive defect prevention strategy.
  • Documentation and traceability: Waterfall’s testing approach involves well-documented test cases and results. This documentation aids in maintaining traceability, ensuring sufficient test coverage, providing a record of testing outcomes and facilitating accountability.
  • Predictable quality: Waterfall’s quality assurance approach contributes to a more predictable quality outcome. The methodical testing phases reduce the likelihood of unexpected defects emerging, enhancing the final product’s reliability.


Agile incorporates quality assurance throughout the development process. Testing occurs regularly and continuously to ensure high-quality outcomes at the end of each sprint.

  • Continuous testing: Agile’s emphasis on testing throughout the development process ensures that quality is maintained from start to finish. Regular testing reduces the chances of defects accumulating and helps identify issues early.
  • Rapid feedback loop: Agile’s frequent testing allows for a rapid feedback loop, enabling immediate identification and rectification of defects. This real-time feedback contributes to a dynamic and adaptive quality assurance process.
  • Adaptability to changes: Agile’s continuous testing aligns well with its adaptive nature, allowing for quick adjustments in response to changing requirements. This approach ensures that the product remains high-quality and relevant to evolving needs.
  • Reduced technical debt: Agile’s regular testing helps prevent the accumulation of technical debt—unaddressed issues or defects. This proactive approach to quality assurance minimises the need for extensive rework later in the development process.
  • Incremental refinement: Agile’s iterative approach enables teams to refine the product’s quality in increments. With each sprint the product becomes more refined and better aligned with customer expectations, enhancing overall quality.

10. Project Success Measurement


Waterfall projects are typically measured against predefined project objectives and deliverables. Success is evaluated based on whether the final product adheres to the initial plan.

  • Adherence to plan: Waterfall projects measure success based on how closely the final product aligns with the initially defined project objectives, scope, plan and schedule. Deviations may be viewed as setbacks.
  • Deliverables completion: The completion of predefined deliverables within the agreed timeline is usually a key performance indicator. Meeting project milestones is considered an indicator of successful progress.
  • On time delivery: Waterfall’s emphasis on structured planning and sequential phases often results in a focus on predictability and on-time delivery. Success is usually measured by how well the project stuck to its planned schedule.
  • Scope: Success is determined by the extent to which the final product matches the original scope defined at the project’s outset. Any scope creep can be seen as negative.
  • Documentation: Success can be measured by assessing how well the project documentation, including requirements and specifications, has been followed.
  • Benefit delivery. The business case for the project would typically include a breakdown of the benefits that the organisation hopes to achieve from the outputs and outcomes delivered by the project. By monitoring these benefits throughout the life of the project and after the delivery the return on investment of the project can be maximised.


Agile projects measure success by evaluating customer satisfaction, continuous feedback, and the ability to adapt to changing needs. Success is focused on delivering value and achieving customer goals.

  • Customer satisfaction: Agile projects prioritise customer satisfaction as a primary measure of success. The degree to which the delivered product meets customer needs and expectations drives the evaluation of success.
  • Value delivery: Success in agile is gauged by the value delivered to customers and end-users with each iteration. The continuous deployment of functional features aims to create a sense of accomplishment and customer delight.
  • Adaptability and flexibility: Agile’s success is reflected in the team’s ability to adapt to changing requirements and market dynamics. Success is measured by how well the project responds to evolving needs.
  • Continuous feedback utilisation: Agile’s iterative nature encourages continuous feedback to improve the product. The incorporation of this feedback into each iteration contributes to the assessment of success.
  • Achievement of customer goals: Success in agile revolves around achieving specific customer goals and objectives. These goals guide the development process and success is determined by the extent to which they are fulfilled.


Remember, project management is not a one-size-fits-all approach – it’s about selecting the best fit for your unique project requirements and constraints. Both methodologies have their own strengths and weaknesses. It’s important to keep these in mind and make an informed choice for your next project. You can even consider a hybrid approach taking the best of both worlds to achieve your project success.

Psoda provides a comprehensive platform for managing waterfall, Agile and hybrid projects. Get in touch today to book a demo with our CEO.

Rhona Aylward avatar
Written by Rhona Aylward
Rhona is Deputy Everything Officer at Psoda, where she does everything except code. After starting life as a microbiologist she moved into PMO leadership roles around the world before settling in New Zealand with her family.

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