In the dynamic business environment that prevails today, projects form the basis of most business changes, decisions or initiatives. Effective project management means a number of benefits for company itself, among other things, increases the chances of achieving the set goals and optimizes the use of resources. By applying a certain project management method, all the parameters required for a certain project are defined. Traditional model facilitates the definition of costs, resource allocation and scheduling, reduces the risk of failure, provides a better overview of activities and a better decision - making process. The agile method is, unlike the traditional one, a management process that provides the project manager and project team with a way to respond to constant changes in the business. The paper provides an insight into the methods of project management in Croatian companies, explains the main concepts related to the project, describes the traditional and agile approach to project management and points out the advantages and disadvantages of the same. The paper provides reference information obtained from an analysis conducted on a sample of ten Croatian companies on how to manage projects. The aim of this paper is to give an overview of basic concepts related to projects and project management, to explain the methods used in project management, to describe the advantages and disadvantages of each of them and to give a cross-section of the sample analysis.