PMBOK Study Guide 6th Edition PDF

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PMBOK Study Guide www.iipsmonline.com International Institute of Project and Safety Management (IIPSM) |1 PMBOK Study Guide www.iipsmonline.com INTRODUCTION 1.1 OVERVIEW AND PURPOSE OF THIS GUIDE A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition provides guidelines for managing individual projects and defines project management related concepts. It also describes the project management life cycle and its related processes, as well as the project life cycle. Project management is not new. It has been in use for hundreds of years. Examples of project outcomes include:  Pyramids of Giza  Olympic games  Great Wall of China The outcomes of these projects were the result of leaders and managers applying project management practices, principles, processes, tools, and techniques to their work. The managers of these projects used a set of key skills and applied knowledge to satisfy their customers and other people involved in and affected by the project. By the mid-20th century, project managers began the work of seeking recognition for project management as a profession. One aspect of this work involved obtaining agreement on the content of the body of knowledge (BOK) called project management. This BOK became known as the Project Management Body of Knowledge (PMBOK). The Project Management Institute (PMI) produced a baseline of charts and glossaries for the PMBOK. Project managers soon realized that no single book could contain the entire PMBOK. Therefore, PMI developed and published A Guide to the Project Management Body of Knowledge (PMBOK® Guide). 2| International Institute of Project and Safety Management (IIPSM) PMBOK Study Guide www.iipsmonline.com PMI defines the project management body of knowledge (PMBOK) as a term that describes the knowledge within the profession of project management. The project management body of knowledge includes proven traditional practices that are widely applied as well as innovative practices that are emerging in the profession. The body of knowledge (BOK) which is constantly evolving includes both published and unpublished materials. This PMBOK® Guide identifies a subset of the project management body of knowledge that is generally recognized as good practice. Generally recognized means the knowledge and practices described are applicable to most projects most of the time, and there is consensus about their value and usefulness. Good practice means there is general agreement that the application of the knowledge, skills, tools, and techniques to project management processes can enhance the chance of success over many projects in delivering the expected business values and results. The project manager works with the project team and other stakeholders to determine and use the appropriate generally recognized good practices for each project. Determining the appropriate combination of processes, inputs, tools, techniques, outputs and life cycle phases to manage a project is referred to as “tailoring” the application of the knowledge described in this guide. This PMBOK® Guide is different from a methodology. A methodology is a system of practices, techniques, procedures, and rules used by those who work in a discipline. This PMBOK® Guide is a foundation upon which organizations can build methodologies, policies, procedures, rules, tools and techniques, and life cycle phases needed to practice project management. 1.2 FOUNDATIONAL ELEMENTS This section describes foundational elements necessary for working in and understanding the discipline of project management. 1.2.1 PROJECTS A project is a temporary endeavor undertaken to create a unique product, service, or result.  Unique product, service, or result: Projects are undertaken to fulfill objectives by producing deliverables. An objective is defined as an outcome toward which work is to be directed, a strategic position to be attained, a purpose to be achieved, a result to be obtained, a product to be produced, or a service to be performed. A deliverable is defined as any unique and verifiable product, result, or capability to perform a service that is required to be produced to complete a process, phase, or project. Deliverables may be tangible or intangible. Fulfillment of project objectives may produce one or more of the following deliverables:  A unique product that can be either a component of another item, an enhancement or correction to an item, or a new end item in itself (e.g., the correction of a defect in an end item)  A unique service or a capability to perform a service (e.g., a business function that supports production)  A unique result, such as an outcome or document (e.g., a research project that develops knowledge that can be used to determine whether a trend exists or a new process will benefit the society)  A unique combination of one or more products, services, or results (e.g., a software application, its associated documentation, and help desk services) Repetitive elements may be present in some project deliverables and activities. This repetition does not change the fundamental and unique characteristics of the project work. For example, office buildings can be constructed with the same or similar materials and by the same or different teams. However, each building project remains unique in key characteristics (e.g., location, design, environment, situation, people involved). International Institute of Project and Safety Management (IIPSM) |3 PMBOK Study Guide www.iipsmonline.com  Temporary endeavor: The temporary nature of projects indicates that a project has a definite beginning and end. Temporary does not necessarily mean a project has a short duration. The end of the project is reached when one or more of the following is true:  The project’s objectives have been achieved;  The objectives will not or cannot be met  Funding is exhausted or no longer available for allocation to the project  The need for the project no longer exists (e.g., the customer no longer wants the project completed)  The human or physical resources are no longer available  The project is terminated for legal cause or convenience Projects are temporary, but their deliverables may exist beyond the end of the project. Projects may produce deliverables of a social, economic, material, or environmental nature.  Projects drive change: Projects drive change in organizations. From a business perspective, a project is aimed at moving an organization from one state to another state in order to achieve a specific objective. Before the project begins, the organization is commonly referred to as being in the current state. The desired result of the change driven by the project is described as the future state. For some projects, this may involve creating a transition state where multiple steps are made along a continuum to achieve the future state. The successful completion of a project results in the organization moving to the future state and achieving the specific objective.  Projects enable business value creation. PMI defines business value as the net quantifiable benefit derived from a business endeavor. The benefit may be tangible, intangible, or both. In business analysis, business value is considered the return, in the form of elements such as time, money, goods, or intangibles in return for something exchanged. Business value in projects refers to the benefit that the results of a specific project provide to its stakeholders. The benefit from projects may be tangible, intangible, or both. Examples of tangible elements include: Monetary assets Stockholder equity Utility Fixtures Tools Market share Examples of intangible elements include: Goodwill Brand recognition Public benefit Trademarks Strategic alignment Reputation 4| International Institute of Project and Safety Management (IIPSM) PMBOK Study Guide www.iipsmonline.com Figure 1.1: Organizational State Transition via a Project  Project Initiation Context: Organizational leaders initiate projects in response to factors acting upon their organizations. There are four fundamental categories for these factors, which illustrate the context of a project  Meet regulatory, legal, or social requirements  Satisfy stakeholder requests or needs  Implement or change business or technological strategies  Create, improve, or fix products, processes, or services 1.2.2 THE IMPORTANCE OF PROJECT MANAGEMENT Project management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. Project management is accomplished through the appropriate application and integration of the project management processes identified for the project. Project management enables organizations to execute projects effectively and efficiently. Effective project management helps individuals, groups, and public and private organizations to: Meet business objectives Satisfy stakeholder expectations Increase chances of success Deliver the right products at the right time Respond to risks in a timely manner Be more predictable Resolve problems and issues Optimize the use of organizational resources; Poorly managed projects or the absence of project management may result in: Missed deadlines Cost overruns Poor quality Uncontrolled expansion of the project Unsatisfied stakeholders Rework Loss of reputation for the organization Failure in achieving the objectives Projects are a key way to create value and benefits in organizations. In today’s business environment, organizational leaders need to be able to manage with tighter budgets, shorter timelines, scarcity of resources, and rapidly changing technology. The business environment is dynamic with an accelerating rate of change. To remain competitive in the world economy, companies are embracing project management to consistently deliver business value. International Institute of Project and Safety Management (IIPSM) |5 PMBOK Study Guide www.iipsmonline.com 1.2.3 RELATIONSHIP AMONG PROGRAM, PORTFOLIO AND OPERATIONS MANAGEMENT 1.2.3.1 OVERVIEW Using project management processes, tools, and techniques puts in place a sound foundation for organizations to achieve their goals and objectives. A project may be managed in three separate scenarios: as a stand-alone project (outside of a portfolio or program), within a program, or within a portfolio. Project managers interact with portfolio and program managers when a project is within a program or portfolio. For example, multiple projects may be needed to accomplish a set of goals and objectives for an organization. In those situations, projects may be grouped together into a program. A program is defined as a group of related projects, subsidiary programs, and program activities managed in a coordinated manner to obtain benefits not available from managing them individually. Programs are not large projects. A portfolio is defined as projects, programs, subsidiary portfolios, and operations managed as a group to achieve strategic objectives. Program management and portfolio management differ from project management in their life cycles, activities, objectives, focus, and benefits. However, portfolios, programs, projects, and operations often engage with the same stakeholders and may need to use the same resources, which may result in a conflict in the organization. This type of a situation increases the need for coordination within the organization through the use of portfolio, program and project management to achieve a workable balance in the organization. Figure 1.2: Portfolio, Programs, Projects, and Operations Table 1.1: Comparative Overview of Portfolios, Programs, and Projects 6| International Institute of Project and Safety Management (IIPSM) PMBOK Study Guide www.iipsmonline.com 1.2.3.2 PROGRAM MANAGEMENT Program management is defined as the application of knowledge, skills, and principles to a program to achieve the program objectives and to obtain benefits and control not available by managing program components individually. A program component refers to projects and other programs within a program. Project management focuses on interdependencies within a project to determine the optimal approach for managing the project. Program management focuses on the interdependencies between projects and between projects and the program level to determine the optimal approach for managing them. Actions related to these program and project-level interdependencies may include:  Aligning with the organizational or strategic direction that affects program and project goals and objectives International Institute of Project and Safety Management (IIPSM) |7 PMBOK Study Guide www.iipsmonline.com  Allocating the program scope into program components  Managing interdependencies among the components of the program to best serve the program  Managing program risks that may impact multiple projects in the program  Resolving constraints and conflicts that affect multiple projects within the program etc. 1.2.3.3 PORTFOLIO MANAGEMENT A portfolio is defined as projects, programs, subsidiary portfolios, and operations managed as a group to achieve strategic objectives. Portfolio management is defined as the centralized management of one or more portfolios to achieve strategic objectives. The programs or projects of the portfolio may not necessarily be interdependent or directly related. The aim of portfolio management is to:  Guide organizational investment decisions  Select the optimal mix of programs and projects to meet strategic objectives  Provide decision-making transparency  Prioritize team and physical resource allocation  Increase the likelihood of realizing the desired return on investment  Centralize the management of the aggregate risk profile of all components Portfolio management also confirms that the portfolio is consistent with and aligned with organizational strategies. Maximizing the value of the portfolio requires careful examination of the components that comprise the portfolio. Components are prioritized so that those contributing the most to the organization’s strategic objectives have the required financial, team, and physical resources. 1.2.3.4 OPERATIONS MANAGEMENT Operations management is an area that is outside the scope of formal project management as described in this guide. Operations management is concerned with the ongoing production of goods and/or services. It ensures that business operations continue efficiently by using the optimal resources needed to meet customer demands. It is concerned with managing processes that transform inputs (e.g., materials, components, energy, and labor) into outputs (e.g., products, goods, and/or services). 1.2.3.5 OPERATIONS AND PROJECT MANAGEMENT Changes in business or organizational operations may be the focus of a project - especially when there are substantial changes to business operations as a result of a new product or service delivery. Ongoing operations are outside of the scope of a project; however, there are intersecting points where the two areas cross. Projects can intersect with operations at various points during the product life cycle, such as;  When developing a new product, upgrading a product, or expanding outputs  While improving operations or the product development process  At the end of the product life cycle  At each closeout phase At each point, deliverables and knowledge are transferred between the project and operations for implementation of the delivered work. This implementation occurs through a transfer of project resources or knowledge to operations or through a transfer of operational resources to the project. 8| International Institute of Project and Safety Management (IIPSM) PMBOK Study Guide www.iipsmonline.com 1.2.3.6 ORGANIZATIONAL PROJECT MANAGEMENT (OPM) AND STRATEGIES Portfolios, programs, and projects are aligned with or driven by organizational strategies and differ in the way each contributes to the achievement of strategic goals:  Portfolio management aligns portfolios with organizational strategies by selecting the right programs or projects, prioritizing the work, and providing the needed resources  Program management harmonizes its program components and controls interdependencies in order to realize specified benefits  Project management enables the achievement of organizational goals and objectives Within portfolios or programs, projects are a means of achieving organizational goals and objectives. This is often accomplished in the context of a strategic plan that is the primary factor guiding investments in projects. Alignment with the organization’s strategic business goals can be achieved through the systematic management of portfolios, programs, and projects through the application of organizational project management (OPM). OPM is defined as a framework in which portfolio, program, and project management are integrated with organizational enablers in order to achieve strategic objectives. The purpose of OPM is to ensure that the organization undertakes the right projects and allocates critical resources appropriately. OPM also helps to ensure that all levels in the organization understand the strategic vision, the initiatives that support the vision, the objectives, and the deliverables. 1.2.4 COMPONENTS OF THE GUIDE Projects comprise several key components that, when effectively managed, result in their successful completion. This guide identifies and explains these components. The various components interrelate to one another during the management of a project. Figure 1.3: Interrelationship of PMBOK® Guide Key Components in Projects 1.2.4.1 PROJECT AND DEVELOPMENT LIFE CYCLES A project life cycle is the series of phases that a project passes through from its start to its completion. It provides the basic framework for managing the project. This basic framework applies regardless of the specific project work involved. The phases may be sequential, iterative, or overlapping. Project life cycles can be predictive or adaptive. Within a project International Institute of Project and Safety Management (IIPSM) |9 PMBOK Study Guide www.iipsmonline.com life cycle, there are generally one or more phases that are associated with the development of the product, service, or result. These are called a development life cycle. Development life cycles can be predictive, iterative, incremental, adaptive, or a hybrid model:  In a predictive life cycle, the project scope, time, and cost are determined in the early phases of the life cycle. Any changes to the scope are carefully managed. Predictive life cycles may also be referred to as waterfall life cycles.  In an iterative life cycle, the project scope is generally determined early in the project life cycle, but time and cost estimates are routinely modified as the project team’s understanding of the product increases. Iterations develop the product through a series of repeated cycles, while increments successively add to the functionality of the product.  In an incremental life cycle, the deliverable is produced through a series of iterations that successively add functionality within a predetermined time frame. The deliverable contains the necessary and sufficient capability to be considered complete only after the final iteration.  Adaptive life cycles are agile, iterative, or incremental. The detailed scope is defined and approved before the start of an iteration. Adaptive life cycles are also referred to as agile or change-driven life cycles.  A hybrid life cycle is a combination of a predictive and an adaptive life cycle. Those elements of the project that are well known or have fixed requirements follow a predictive development life cycle, and those elements that are still evolving follow an adaptive development life cycle. It is up to the project management team to determine the best life cycle for each project. The project life cycle needs to be flexible enough to deal with the variety of factors included in the project. Life cycle flexibility may be accomplished by:  Identifying the process or processes needed to be performed in each phase  Performing the process or processes identified in the appropriate phase  Adjusting the various attributes of a phase (e.g., name, duration, exit criteria, and entrance criteria) Project life cycles are independent of product life cycles, which may be produced by a project. A product life cycle is the series of phases that represent the evolution of a product, from concept through delivery, growth, maturity, and to retirement. 1.2.4.2 PROJECT PHASE A project phase is a collection of logically related project activities that culminates in the completion of one or more deliverables. The phases in a life cycle can be described by a variety of attributes. Attributes may be measurable and unique to a specific phase. Attributes may include but are not limited to:  Name (e.g., Phase A, Phase B, Phase 1, Phase 2, proposal phase)  Number (e.g., three phases in the project, five phases in the project)  Duration (e.g., 1 week, 1 month, 1 quarter)  Resource requirements (e.g., people, buildings, equipment)  Entrance criteria for a project to move into that phase (e.g., specified approvals documented, specified documents completed)  Exit criteria for a project to complete a phase (e.g., documented approvals, completed documents, complete deliverables) Projects may be separated into distinct phases or subcomponents. These phases or subcomponents are generally given names that indicate the type of work done in that phase. Examples of phase names include but are not limited to: Concept development Feasibility study Milestone review Build 10 | International Institute of Project and Safety Management (IIPSM) PMBOK Study Guide www.iipsmonline.com Solution development Lessons learned Prototype Design Customer requirements Commissioning Transition Test 1.2.4.3 PHASE GATE A phase gate, is held at the end of a phase. The project’s performance and progress are compared to project and business documents including but not limited to:  Project business case  Project charter  Project management plan  Benefits management plan A decision (e.g., go/no-go decision) is made as a result of this comparison to:  Continue to the next phase  Continue to the next phase with modification  End the project  Remain in the phase  Repeat the phase or elements of it Depending on the organization, industry, or type of work, phase gates may be referred to by other terms such as, phase review, stage gate, kill point, and phase entrance or phase exit. Organizations may use these reviews to examine other pertinent items which are beyond the scope of this guide, such as product-related documents or models. 1.2.4.4 PROJECT MANAGEMENT PROCESSES The project life cycle is managed by executing a series of project management activities known as project management processes. Every project management process produces one or more outputs from one or more inputs by using appropriate project management tools and techniques. The output can be a deliverable or an outcome. Outcomes are an end result of a process. Project management processes apply globally across industries. Project management processes are logically linked by the outputs they produce. Processes may contain overlapping activities that occur throughout the project. The output of one process generally results in either: i. An input to another process, or ii. A deliverable of the project or project phase Project management is accomplished through the appropriate application and integration of logically grouped project management processes. While there are different ways of grouping processes, the PMBOK® Guide group processes into five categories called Process Groups. 1.2.4.5 PROJECT MANAGEMENT PROCESS GROUPS A Project Management Process Group is a logical grouping of project management processes to achieve specific project objectives. Process Groups are independent of project phases. Project management processes are grouped into the following five Project Management Process Groups:  Initiating Process Group: Those processes performed to define a new project or a new phase of an existing project by obtaining authorization to start the project or phase.  Planning Process Group: Those processes required to establish the scope of the project, refine the objectives, and define the course of action required to attain the objectives that the project was undertaken to achieve.  Executing Process Group. Those processes performed to complete the work defined in the project management plan to satisfy the project requirements. International Institute of Project and Safety Management (IIPSM) | 11 PMBOK Study Guide www.iipsmonline.com  Monitoring and Controlling Process Group. Those processes required to track, review, and regulate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes.  Closing Process Group. Those processes performed to formally complete or close the project, phase, or contract. Process flow diagrams are used throughout this guide. The project management processes are linked by specific inputs and outputs where the result or outcome of one process may become the input to another process that is not necessarily in the same Process Group. Note that Process Groups are not the same as project phases 1.2.4.6 PROJECT MANAGEMENT KNOWLEDGE AREAS In addition to Process Groups, processes are also categorized by Knowledge Areas. A Knowledge Area is an identified area of project management defined by its knowledge requirements and described in terms of its component processes, practices, inputs, outputs, tools, and techniques. Although the Knowledge Areas are interrelated, they are defined separately from the project management perspective. The ten Knowledge Areas identified in this guide are used in most projects most of the time. The ten Knowledge Areas described in this guide are:  Project Integration Management: Includes the processes and activities to identify, define, combine, unify, and coordinate the various processes and project management activities within the Project Management Process Groups.  Project Scope Management: Includes the processes required to ensure the project includes all the work required, and only the work required, to complete the project successfully.  Project Schedule Management: Includes the processes required to manage the timely completion of the project.  Project Cost Management: Includes the processes involved in planning, estimating, budgeting, financing, funding, managing, and controlling costs so the project can be completed within the approved budget.  Project Quality Management: Includes the processes for incorporating the organization’s quality policy regarding planning, managing, and controlling project and product quality requirements, in order to meet stakeholders’ expectations.  Project Resource Management: Includes the processes to identify, acquire, and manage the resources needed for the successful completion of the project.  Project Communications Management: Includes the processes required to ensure timely and appropriate planning, collection, creation, distribution, storage, retrieval, management, control, monitoring, and ultimate disposition of project information.  Project Risk Management: Includes the processes of conducting risk management planning, identification, analysis, response planning, response implementation, and monitoring risk on a project.  Project Procurement Management: Includes the processes necessary to purchase or acquire products, services, or results needed from outside the project team.  Project Stakeholder Management: Includes the processes required to identify the people, groups, or organizations that could impact or be impacted by the project, to analyze stakeholder expectations and their impact on the project, and to develop appropriate management strategies for effectively engaging stakeholders in project decisions and execution. The needs of a specific project may require one or more additional Knowledge Areas, for example, construction may require financial management or safety and health management. Table 1.2 maps the Project Management Process Groups and Knowledge Areas. Table 1.2: Project Management Process Group and Knowledge Area Mapping 12 | International Institute of Project and Safety Management (IIPSM) PMBOK Study Guide www.iipsmonline.com 1.2.5 PROJECT MANAGEMENT BUSINESS DOCUMENTS International Institute of Project and Safety Management (IIPSM) | 13 PMBOK Study Guide www.iipsmonline.com The project manager needs to ensure that the project management approach captures the intent of business documents. These two documents are interdependent and iteratively developed and maintained throughout the life cycle of the project. The project sponsor is generally accountable for the development and maintenance of the project business case document. The project manager is responsible for providing recommendations and oversight to keep the project business case, project management plan, project charter, and project benefits management plan success measures in alignment with one another and with the goals and objectives of the organization. Project managers should appropriately tailor the noted project management documents for their projects. In some organizations, the business case and benefits management plan are maintained at the program level. Project managers should work with the appropriate program managers to ensure the project management documents are aligned with the program documents. Figure 1.4: Interrelationship of Needs Assessment and Critical Business/Project Documents 1.2.5.1 PROJECT BUSINESS CASE The project business case is a documented economic feasibility study used to establish the validity of the benefits of a selected component lacking sufficient definition and that is used as a basis for the authorization of further project management activities. The business case lists the objectives and reasons for project initiation. It helps measure the project success at the end of the project against the project objectives. The business case is a project business document that is used throughout the project life cycle. The business case may be used before the project initiation and may result in a go/no-go decision for the project. A needs assessment often precedes the business case. The needs assessment involves understanding business goals and objectives, issues, and opportunities and recommending proposals to address them. The results of the needs assessment may be summarized in the business case document. 14 | International Institute of Project and Safety Management (IIPSM) PMBOK Study Guide www.iipsmonline.com The process of defining the business need, analyzing the situation, making recommendations, and defining evaluation criteria is applicable to any organization’s projects. A business case may include but is not limited to documenting the following:  Business needs:  Determination of what is prompting the need for action  Situational statement documenting the business problem or opportunity to be addressed including the value to be delivered to the organization  Identification of stakeholders affected  Identification of the scope  Analysis of the situation:  Identification of organizational strategies, goals, and objectives  Identification of root cause(s) of the problem or main contributors of an opportunity  Gap analysis of capabilities needed for the project versus existing capabilities of the organization  Identification of known risks  Identification of critical success factors  Identification of decision criteria by which the various courses of action may be assessed  Identification of a set of options to be considered for addressing the business problem or opportunity. Options are alternative courses of action that may be taken by the organization. Options may also be described as business scenarios  Recommendation:  A statement of the recommended option to pursue in the project  Items to include in the statement may include but are not limited to  Analysis results for the potential option  Constraints, assumptions, risks, and dependencies for the potential options  Success measures  Evaluation:  Statement describing the plan for measuring benefits the project will deliver.  The business case document provides the basis to measure success and progress throughout the project life cycle by comparing the results with the objectives and the identified success criteria. 1.2.5.2 PROJECT BENEFITS MANAGEMENT PLAN The project benefits management plan is the document that describes how and when the benefits of the project will be delivered, and describes the mechanisms that should be in place to measure those benefits. A project benefit is defined as an outcome of actions, behaviors, products, services, or results that provide value to the sponsoring organization as well as to the project’s intended beneficiaries. Development of the benefits management plan begins early in the project life cycle with the definition of the target benefits to be realized. The benefits management plan describes key elements of the benefits and may include but is not limited to documenting the following:  Target benefits (e.g., the expected tangible and intangible value to be gained by the implementation of the project; financial value is expressed as net present value)  Strategic alignment (e.g., how well the project benefits align to the business strategies of the organization)  Timeframe for realizing benefits (e.g., benefits by phase, short-term, long-term, and ongoing)  Benefits owner (e.g., the accountable person to monitor, record, and report realized benefits throughout the timeframe established in the plan) International Institute of Project and Safety Management (IIPSM) | 15 PMBOK Study Guide www.iipsmonline.com  Metrics (e.g., the measures to be used to show benefits realized, direct measures, and indirect measures)  Assumptions (e.g., factors expected to be in place or to be in evidence)  Risks (e.g., risks for realization of benefits) Developing the benefits management plan makes use of the data and information documented in the business case and needs assessment. Development and maintenance of the project benefits management plan is an iterative activity. This document complements the business case, project charter, and project management plan. The project manager works with the sponsor to ensure that the project charter, project management plan, and the benefits management plan remain in alignment throughout the life cycle of the project. 1.2.5.3 PROJECT CHARTER AND PROJECT MANAGEMENT PLAN The project charter is defined as a document issued by the project sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities. The project management plan is defined as the document that describes how the project will be executed, monitored, and controlled. 1.2.5.4 PROJECT SUCCESS MEASURES One of the most common challenges in project management is determining whether or not a project is successful. Traditionally, the project management metrics of time, cost, scope, and quality have been the most important factors in defining the success of a project. More recently, practitioners and scholars have determined that project success should also be measured with consideration toward achievement of the project objectives. Project stakeholders may have different ideas as to what the successful completion of a project will look like and which factors are the most important. It is critical to clearly document the project objectives and to select objectives that are measurable. Three questions that the key stakeholders and the project manager should answer are:  What does success look like for this project?  How will success be measured?  What factors may impact success? The answer to these questions should be documented and agreed upon by the key stakeholders and the project manager. 16 | International Institute of Project and Safety Management (IIPSM) PMBOK Study Guide www.iipsmonline.com 2.1 ENTERPRISE ENVIRONMENTAL FACTORS Enterprise environmental factors (EEFs) refer to conditions, not under the control of the project team, that influence, constrain, or direct the project. These conditions can be internal and/or external to the organization. EEFs are considered as inputs to many project management processes, specifically for most planning processes. These factors may enhance or constrain project management options. In addition, these factors may have a positive or negative influence on the outcome. EEFs vary widely in type or nature. 2.1.1 EEFS INTERNAL TO THE ORGANIZATION The following EEFs are internal to the organization:  Organizational culture, structure, and governance. Examples; vision, mission, values, beliefs, cultural norms.  Geographic distribution of facilities and resources. Examples; factory locations, virtual teams, shared systems.  Infrastructure. Examples; existing facilities, equipment, organizational telecommunications channels, capacity.  Information technology software. Examples; scheduling software tools, configuration management systems.  Resource availability. Examples; contracting and purchasing constraints, approved providers and subcontractors.  Employee capability. Examples; existing human resources expertise, skills, competencies, specialized knowledge 2.1.2 EEFS EXTERNAL TO THE ORGANIZATION The following EEFs are external to the organization.  Marketplace conditions. Examples; competitors, market share brand recognition, and trademarks.  Social and cultural influences and issues. Examples; political climate, codes of conduct, ethics, and perceptions.  Legal restrictions. Examples; country or local laws and regulations related to security, data protection.  Commercial databases. Examples; benchmarking results, standardized cost estimating data, risk databases.  Academic research. Examples; industry studies, publications, and benchmarking results.  Government or industry standards. Examples; regulatory agency regulations and standards related to products.  Financial considerations. Examples; currency exchange rates, interest rates, inflation rates, tariffs.  Physical environmental elements. Examples; working conditions, weather, and constraints. 2.2 ORGANIZATIONAL PROCESS ASSETS Organizational process assets (OPAs) are the plans, processes, policies, procedures, and knowledge bases specific to and used by the performing organization. These assets influence the management of the project. OPAs include any artifact, practice, or knowledge from any or all of the performing organizations involved in the project that can be used to execute or govern the project. The OPAs also include the organization’s lessons learned from previous projects and historical information. OPAs may include completed schedules, risk data, and earned value data. They are inputs to many project management processes. Since OPAs are internal to the organization, the project team members may be able to update and add to the organizational process assets as necessary throughout the project. They may be grouped into two categories: i. Processes, policies, and procedures ii. Organizational knowledge bases 2.2.1 PROCESSES, POLICIES, AND PROCEDURES The organization’s processes and procedures for conducting project work include but are not limited to: Initiating and Planning: International Institute of Project and Safety Management (IIPSM) | 17 PMBOK Study Guide www.iipsmonline.com  Guidelines and criteria for tailoring the organization’s set of standard processes and procedures to satisfy the specific needs of the project  Specific organizational standards such as policies (e.g., human resources policies, health and safety policies)  Product and project life cycles, and methods and procedures (e.g., project management methods, process audits)  Templates (e.g., project management plans, project documents, project registers, report formats)  Preapproved supplier lists and various types of contractual agreements (e.g., fixed-price, cost-reimbursable) Executing, Monitoring, and Controlling:  Change control procedures, including the steps by which performing organization standards, policies, plans, and procedures or any project documents will be modified, and how any changes will be approved and validated  Traceability matrices  Financial controls procedures (e.g., time reporting, required expenditure and disbursement reviews)  defect management procedures (e.g., defining issue and defect controls, identifying and resolving issues and defects, and tracking action items)  Resource availability control and assignment management  Organizational communication requirements (e.g., specific communication technology available, authorized communication media, record retention policies, videoconferencing, collaborative tools)  Procedures for prioritizing, approving, and issuing work authorizations  Templates (e.g., risk register, issue log, and change log)  Standardized guidelines, work instructions, proposal evaluation criteria, and performance measurement criteria  Product, service, or result verification and validation procedures. Closing: Project closure guidelines or requirements (e.g., final project audits, project evaluations, deliverable acceptance, contract closure, resource reassignment, and knowledge transfer to production and/or operations). 2.3 PROJECT MANAGEMENT OFFICE A project management office (PMO) is an organizational structure that standardizes the project-related governance processes and facilitates the sharing of resources, methodologies, tools, and techniques. The responsibilities of a PMO can range from providing project management support functions to the direct management of one or more projects. There are several types of PMOs in organizations. Each type varies in the degree of control and influence it has on projects within the organization, such as:  Supportive: They provide a consultative role to projects by supplying templates, best practices, training, access to information, and lessons learned from other projects. This type of PMO serves as a project repository. The degree of control provided by the PMO is low.  Controlling: They provide support and require compliance through various means. The degree of control provided by the PMO is moderate. Compliance may involve:  Adoption of project management frameworks or methodologies  Use of specific templates, forms, and tools  Conformance to governance frameworks.  Directive: They take control of the projects by directly managing the projects. Project managers are assigned by and report to the PMO. The degree of control provided by the PMO is high. The PMO integrates data and information from organizational strategic projects and evaluates how higher-level strategic objectives are being fulfilled. They are the natural liaison between the organization’s portfolios, programs, projects, and the organizational measurement systems (e.g., balanced scorecard). 18 | International Institute of Project and Safety Management (IIPSM) PMBOK Study Guide www.iipsmonline.com 3.1 DEFINITION OF A PROJECT MANAGER The role of a project manager is distinct from that of a functional manager or operations manager. Typically, the functional manager focuses on providing management oversight for a functional or business unit. Operations managers are responsible for ensuring that business operations are efficient. The project manager is the person assigned by the performing organization to lead the team that is responsible for achieving the project objectives. 3.2 THE PROJECT The project manager leads the project team to meet the project’s objectives and stakeholders’ expectations. The project manager works to balance the competing constraints on the project with the resources available and also performs communication roles between the project sponsor, team members, and other stakeholders. This includes providing direction and presenting the vision of success for the project. The project manager uses soft skills (e.g., interpersonal skills and the ability to manage people) to balance the conflicting and competing goals of the project stakeholders in order to achieve consensus. In this context, consensus means that the relevant stakeholders support the project decisions and actions even when there is not 100% agreement. Research shows that successful project managers consistently and effectively use certain essential skills. Research reveals that the top 2% of project managers as designated by their bosses and team members distinguish themselves by demonstrating superior relationship and communication skills while displaying a positive attitude. 3.3 PROJECT MANAGER COMPETENCES Recent PMI studies applied the Project Manager Competency Development (PMCD) Framework to the skills needed by project managers through the use of The PMI Talent Triangle® shown in Figure 3.1. The talent triangle focuses on three key skill sets: Technical project management: The knowledge, skills, and behaviors related to specific domains of project, program, and portfolio management. The technical aspects of performing one’s role. Leadership: The knowledge, skills, and behaviors needed to guide, motivate, and direct a team, to help an organization achieve its business goals. Strategic and business management: The knowledge of and expertise in the industry and organization that enhanced performance and better delivers business outcomes. Figure 3.1: The PMI Talent Triangle International Institute of Project and Safety Management (IIPSM) | 19 PMBOK Study Guide www.iipsmonline.com While technical project management skills are core to program and project management, PMI research indicates that they are not enough in today’s increasingly complicated and competitive global marketplace. Organizations are seeking added skills in leadership and business intelligence. Members of various organizations state their belief that these competencies can support longer-range strategic objectives that contribute to the bottom line. To be the most effective, project managers need to have a balance of these three skill sets. 3.3.1 TECHNICAL PROJECT MANAGEMENT SKILLS Technical project management skills are defined as the skills to effectively apply project management knowledge to deliver the desired outcomes for programs or projects. There are numerous technical project management skills. The Knowledge Areas in this guide describe many of these necessary project management skills. Project managers frequently rely on expert judgment to perform well. Being aware of personal expertise and where to find others with the needed expertise are important for success as a project manager. 3.3.2 STRATEGIC AND BUSINESS MANAGEMENT SKILLS Strategic and business management skills involve the ability to see the high-level overview of the organization and effectively negotiate and implement decisions and actions that support strategic alignment and innovation. This ability may include a working knowledge of other functions such as finance, marketing, and operations. Strategic and business management skills may also include developing and applying pertinent product and industry expertise. This business knowledge is also known as domain knowledge. 3.3.3 LEADERSHIP SKILLS Leadership skills involve the ability to guide, motivate, and direct a team. These skills may include demonstrating essential capabilities such as negotiation, resilience, communication, problem solving, critical thinking, and interpersonal skills. Projects are becoming increasingly more complicated with more and more businesses executing their strategy through projects. Project management is more than just working with numbers, templates, charts, graphs, and computing systems. A common denominator in all projects is people. People can be counted, but they are not numbers. 3.3.3.1 LEADERSHIP STYLES Project managers may lead their teams in many ways. The style a project manager selects may be a personal preference, or the result of the combination of multiple factors associated with the project. The style a project manager uses may change over time based on the factors in play. Major factors to consider include but are not limited to:  Leader characteristics (e.g., attitudes, moods, needs, values, ethics)  Team member characteristics (e.g., attitudes, moods, needs, values, ethics)  Organizational characteristics (e.g., its purpose, structure, and type of work performed)  Environmental characteristics (e.g., social situation, economic state, and political elements) Research describes numerous leadership styles that a project manager can adopt. Some of the most common examples of these styles include but are not limited to:  Laissez-faire (e.g., allowing the team to make their own decisions and establish their own goals)  Transactional (e.g., focus on goals, feedback, and accomplishment to determine rewards)  Servant leader (e.g., demonstrates commitment to serve and put other people first; leadership is secondary and emerges after service)  Transformational (e.g., empowering followers through idealized attributes and behaviors, inspirational motivation)  Charismatic (e.g., able to inspire; is high-energy, enthusiastic, self-confident; holds strong convictions)  Interactional (e.g., a combination of transactional, transformational, and charismatic) 20 | International Institute of Project and Safety Management (IIPSM) PMBOK Study Guide www.iipsmonline.com 3.3.3.2 PERSONALITY Personality refers to the individual differences in characteristic patterns of thinking, feeling, and behaving. Personality characteristics or traits include but are not limited to:  Authentic (e.g., accepts others for what and who they are, show open concern)  Courteous (e.g., ability to apply appropriate behavior and etiquette)  Creative (e.g., ability to think abstractly, to see things differently, to innovate)  Cultural (e.g., measure of sensitivity to other cultures including values, norms, and beliefs)  Emotional (e.g., ability to perceive emotions and the information they present and to manage them)  Intellectual (e.g., measure of human intelligence over multiple aptitudes)  Managerial (e.g., measure of management practice and potential)  Political (e.g., measure of political intelligence and making things happen)  Service-oriented (e.g., evidence of willingness to serve other people)  Social (e.g., ability to understand and manage people)  Systemic (e.g., drive to understand and build systems) An effective project manager will have some level of ability with each of these characteristics in order to be successful. Each project, organization, and situation requires that the project manager emphasize different aspects of personality. 3.4 COMPARISON OF LEADERSHIP AND MANAGEMENT The words leadership and management are often used interchangeably. However, they are not synonymous. The word management is more closely associated with directing another person to get from one point to another using a known set of expected behaviors. In contrast, leadership involves working with others through discussion or debate in order to guide them from one point to another. The method that a project manager chooses to employ reveals a distinct difference in behavior, self-perception, and project role. Table 3.1 compares management and leadership on several important levels. Project managers need to employ both leadership and management in order to be successful. The skill is in finding the right balance for each situation. The way in which management and leadership are employed often shows up in the project manager’s leadership style. Table 3.1: Team Management and Team Leadership Compared International Institute of Project and Safety Management (IIPSM) | 21 PMBOK Study Guide www.iipsmonline.com 3.5 PERFORMING INTEGRATION The role of the project manager is twofold when performing integration on the project:  Project managers play a key role in working with the project sponsor to understand the strategic objectives and ensure the alignment of the project objectives and results with those of the portfolio, program, and business areas. In this way, project managers contribute to the integration and execution of the strategy.  Project managers are responsible for guiding the team to work together to focus on what is really essential at the project level. This is achieved through the integration of processes, knowledge, and people. Integration is a critical skill for project managers. 3.5.1 PERFORMING INTEGRATION AT THE PROCESS LEVEL Project management may be seen as a set of processes and activities that are undertaken to achieve the project objectives. Some of these processes may take place once (e.g., the initial creation of the project charter), but many others overlap and occur several times throughout the project. One example of this process overlap and multiple occurrences is a change in a requirement that impacts scope, schedule, or budget and requires a change request. The Perform Integrated Change Control process occurs throughout the project for integrating change requests and it is clear that a project has a small chance of meeting its objective when the project manager fails to integrate the project processes where they interact. 3.5.2 INTEGRATION AT THE COGNITIVE LEVEL There are many different ways to manage a project, and the method selected typically depends on the specific characteristics of the project including its size, how complicated the project or organization may be, and the culture of the performing organization. It is clear that the personal skills and abilities of the project manager are closely related to the way in which the project is managed. The project manager should strive to become proficient in all of the Project Management Knowledge Areas. 3.5.3 INTEGRATION AT THE CONTEXT LEVEL There have been many changes in the context in which business and projects take place today compared to a few decades ago. An example is knowledge and people integration in the context of a large cross-functional project implementation involving multiple organizations. The project manager considers the implications of this context in communications planning and knowledge management for guiding the project team. Project managers need to be cognizant of the project context and these new aspects when managing the integration. Then project managers can decide how to best use these new elements of the environment in their projects to achieve success. 3.5.4 INTEGRATION AND COMPLEXITY Some projects may be referred to as complex and considered difficult to manage. Complexity itself is a perception of an individual based on personal experience, observation, and skill. Rather than being complex, a project is more accurately described as containing complexity. Portfolios, programs, and projects may contain elements of complexity. When approaching the integration of a project, the project manager should consider elements that are both inside and outside of the project. The project manager should examine the characteristics or properties of the project. 22 | International Institute of Project and Safety Management (IIPSM) PMBOK Study Guide www.iipsmonline.com PROJECT INTEGRATION MANAGEMENT Project Integration Management includes the processes and activities to identify, define, combine, unify, and coordinate the various processes and project management activities within the Project Management Process Groups. In the project management context, integration includes characteristics of unification, consolidation, communication, and interrelationship. These actions should be applied from the start of the project through completion. Project Integration Management includes making choices about:  Resource allocation,  Balancing competing demands  Examining any alternative approaches  Tailoring the processes to meet the project objectives  Managing the interdependencies among the Project Management Knowledge Areas The Project Integration Management processes are: 4.1 Develop Project Charter - The process of developing a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities. 4.2 Develop Project Management Plan - The process of defining, preparing, and coordinating all plan components and consolidating them into an integrated project management plan. 4.3 Direct and Manage Project Work - The process of leading and performing the work defined in the project management plan and implementing approved changes to achieve the project’s objectives. 4.4 Manage Project Knowledge - The process of using existing knowledge and creating new knowledge to achieve the project’s objectives and contribute to organizational learning. 4.5 Monitor and Control Project Work - The process of tracking, reviewing, and reporting overall progress to meet the performance objectives defined in the project management plan. 4.6 Perform Integrated Change Control - The process of reviewing all change requests; approving changes and managing changes to deliverables, organizational process assets, project documents, and the project management plan; and communicating the decisions. 4.7 Close Project or Phase - The process of finalizing all activities for the project, phase, or contract. TRENDS AND EMERGING PRACTICES IN PROJECT INTEGRATION MANAGEMENT Evolving trends in integration processes include but are not limited to: Use of automated tools: The volume of data and information that project managers need to integrate makes it necessary to use a project management information system (PMIS) and automated tools to collect, analyze, and use information to meet project objectives and realize project benefits. Use of visual management tools: Some project teams use visual management tools, rather than written plans to capture and oversee critical project elements. Making key project elements visible to the entire team provides a real- time overview of the project status, facilitates knowledge transfer, and empowers team members to help identify and solve issues. Project knowledge management: The increasingly mobile and transitory work force requires a more rigorous process of identifying knowledge throughout the project and transferring it to the target audience so that the knowledge is not lost. Expanding the project manager’s responsibilities: Project managers are being called on to initiate and finalize the project, such as project business case development and benefits management. They are also engaging in more comprehensive identification and engagement of stakeholders. This includes managing the interfaces with various functional and operational departments and senior management personnel. Hybrid methodologies: Some project management methodologies are evolving to incorporate successfully applied new practices. Examples include the use of agile and other iterative practices; business analysis techniques for requirements management; tools for identifying complex elements in projects; and organizational change management methods to prepare for transitioning the project outputs into the organization. International Institute of Project and Safety Management (IIPSM) | 23 PMBOK Study Guide www.iipsmonline.com Figure 4.1: Project Integration Management Overview 4.1 DEVELOP PROJECT CHARTER Develop Project Charter is the process of developing a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities. The key benefits of this process are that it provides a direct link between the project and the strategic objectives of the organization, creates a formal record of the project, and shows the organizational commitment to the project. The inputs, tools and techniques, and outputs of the process are depicted in Figure 4.2. 24 | International Institute of Project and Safety Management (IIPSM) PMBOK Study Guide www.iipsmonline.com Figure 4.2: Develop Project Charter: Inputs, Tools & Techniques, and Outputs The project charter establishes a partnership between the performing and requesting organizations. In the case of external projects, a formal contract is typically the preferred way to establish an agreement. A project charter may still be used to establish internal agreements within an organization to ensure proper delivery under the contract. The approved project charter formally initiates the project. A project manager is identified and assigned as early in the project as is feasible, preferably while the project charter is being developed and always prior to the start of planning. The project charter can be developed by the sponsor or the project manager in collaboration with the initiating entity. This collaboration allows the project manager to have a better understanding of the project purpose, objectives, and expected benefits. This understanding will better allow for efficient resource allocation to project activities. The project charter provides the project manager with the authority to plan, execute, and control the project. Projects are initiated by an entity external to the project such as a sponsor, program, or project management office (PMO), or a portfolio governing body chairperson or authorized representative. The project initiator or sponsor should be at a level that is appropriate to procure funding and commit resources to the project. Projects are initiated due to internal business needs or external influences. These needs or influences often trigger the creation of a needs analysis, feasibility study, business case, or description of the situation that the project will address. Chartering a project validates alignment of the project to the strategy and ongoing work of the organization. A project charter is not considered to be a contract because there is no consideration or money promised or exchanged in its creation. 4.1.1 DEVELOP PROJECT CHARTER: INPUTS 4.1.1.1 BUSINESS DOCUMENTS The business case and the benefits management plan are sources of information about the project´s objectives and how the project will contribute to the business goals. Although the business documents are developed prior to the project, they are reviewed periodically.  Business case: The approved business case, or similar, is the business document most commonly used to create the project charter. The business case describes the necessary information from a business standpoint to determine whether the expected outcomes of the project justify the required investment. It is commonly used for decision making by managers or executives above the project level. Typically, the business need and the cost benefit analysis are contained in the business case to justify and establish boundaries for the project. For more information on the business case. The business case is created as a result of one or more of the following:  Market demand (e.g., an automobile manufacturer authorizing a project to build more fuel-efficient cars in response to gasoline shortages)  Organizational need (e.g., due to high overhead costs, a company may combine staff functions and streamline processes to reduce costs) International Institute of Project and Safety Management (IIPSM) | 25 PMBOK Study Guide www.iipsmonline.com  Customer request (e.g., an electric utility authorizing a project to build a new substation to serve a new industrial park)  Technological advance (e.g., an airline authorizing a new project to develop electronic tickets instead of paper tickets based on technological advances)  Legal requirement (e.g., a paint manufacturer authorizing a project to establish guidelines for handling toxic materials)  Ecological impacts (e.g., a company authorizing a project to lessen its environmental impact)  Social need (e.g., a nongovernmental organization in a developing country authorizing a project to provide potable water systems, latrines, and sanitation education to communities suffering from high rates of cholera) The project charter incorporates the appropriate information for the project from the business documents. The project manager does not update or modify the business documents since they are not project documents; however, the project manager may make recommendations. 4.1.1.2 AGREEMENTS Agreements are used to define initial intentions for a project. Agreements may take the form of contracts, memorandums of understanding (MOUs), service level agreements (SLA), letters of agreement, letters of intent, verbal agreements, email, or other written agreements. Typically, a contract is used when a project is being performed for an external customer. 4.1.1.3 ENTERPRISE ENVIRONMENTAL FACTORS The enterprise environmental factors that can influence the Develop Project Charter process include but are not limited to:  Government or industry standards (e.g., product standards, quality standards, and workmanship standards),  Legal and regulatory requirements and/or constraints  Marketplace conditions  Organizational culture and political climate  Organizational governance framework (a structured way to provide control, direction, and coordination through people, policies, and processes to meet organizational strategic and operational goals)  Stakeholders’ expectations and risk thresholds 4.1.1.4 ORGANIZATIONAL PROCESS ASSETS The organizational process assets that can influence the Develop Project Charter process include but are not limited to:  Organizational standard policies, processes, and procedures  Portfolio, program, and project governance framework (governance functions and processes to provide guidance and decision making)  Monitoring and reporting methods  Templates (e.g., project charter template)  Historical information and lessons learned repository 4.1.2 DEVELOP PROJECT CHARTER: TOOLS AND TECHNIQUES 4.1.2.1 EXPERT JUDGMENT Expert judgment is defined as judgment provided based upon expertise in an application area, Knowledge Area, discipline, industry, etc., as appropriate for the activity being performed. Such expertise may be provided by any group or person with specialized education, knowledge, skill, experience, or training. For this process, expertise should be considered from individuals or groups with specialized knowledge of or training in the following topics:  Organizational strategy  Benefits management  Technical knowledge of the industry and focus area of the project  Duration and budget estimation 26 | International Institute of Project and Safety Management (IIPSM) PMBOK Study Guide www.iipsmonline.com  Risk identification 4.1.2.2 DATA GATHERING Data-gathering techniques that can be used for this process include but are not limited to:  Brainstorming: This technique is used to identify a list of ideas in a short period of time. It is conducted in a group environment and is led by a facilitator. Brainstorming comprises two parts: idea generation and analysis. Brainstorming can be used to gather data and solutions or ideas from stakeholders, subject matter experts, and team members when developing the project charter.  Focus groups: Focus groups bring together stakeholders and subject matter experts to learn about the perceived project risk, success criteria, and other topics in a more conversational way than a one-on-one interview.  Interviews: Interviews are used to obtain information on high-level requirements, assumptions or constraints, approval criteria, and other information from stakeholders by talking directly to them. 4.1.2.3 INTERPERSONAL AND TEAM SKILLS Interpersonal and team skills that can be used for this process include but are not limited to:  Conflict management: Conflict management can be used to help bring stakeholders into alignment on the objectives, success criteria, high-level requirements, project description, summary milestones, and other elements of the charter.  Facilitation: Facilitation is the ability to effectively guide a group event to a successful decision, solution, or conclusion. A facilitator ensures that there is effective participation, that participants achieve a mutual understanding, that all contributions are considered, that conclusions or results have full buy-in according to the decision process established for the project, and that the actions and agreements achieved are appropriately dealt with afterward  Meeting management: Meeting management includes preparing the agenda, ensuring that a representative for each key stakeholder group is invited, and preparing and sending the follow-up minutes and actions. 4.1.2.4 MEETINGS For this process, meetings are held with key stakeholders to identify the project objectives, success criteria, key deliverables, high-level requirements, summary milestones, and other summary information. 4.1.3 DEVELOP PROJECT CHARTER: OUTPUTS 4.1.3.1 PROJECT CHARTER The project charter is the document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities. It documents the high-level information on the project and on the product, service, or result the project is intended to satisfy, such as: Measurable project objectives and related success criteria Project purpose High-level project description, boundaries, and key deliverables High-level requirements Preapproved financial resources Overall project risk Summary milestone schedule Key stakeholder list Project approval requirements Project exit criteria At a high level, the project charter ensures a common understanding by the stakeholders of the key deliverables, milestones, and the roles and responsibilities of everyone involved in the project. 4.1.3.2 ASSUMPTION LOG High-level strategic and operational assumptions and constraints are normally identified in the business case before the project is initiated and will flow into the project charter. Lower-level activity and task assumptions are generated throughout the project such as defining technical specifications, estimates, the schedule, risks, etc. The assumption log is used to record all assumptions and constraints throughout the project life cycle. International Institute of Project and Safety Management (IIPSM) | 27 PMBOK Study Guide www.iipsmonline.com 4.2 DEVELOP PROJECT MANAGEMENT PLAN Develop Project Management Plan is the process of defining, preparing, and coordinating all plan components and consolidating them into an integrated project management plan. The key benefit of this process is the production of a comprehensive document that defines the basis of all project work and how the work will be performed. This process is performed once or at predefined points in the project. The inputs, tools and techniques, and outputs of the process are depicted in Figure 4.3. Figure 4.3: Develop Project Management Plan: Inputs, Tools & Techniques, and Outputs The project management plan defines how the project is executed, monitored and controlled, and closed. Its content varies depending on the application area and complexity of the project. The project management plan may be either summary level or detailed. Each component plan is described to the extent required by the specific project. The project management plan should be robust enough to respond to an ever changing project environment. This agility may result in more accurate information as the project progresses. 4.2.1 DEVELOP PROJECT MANAGEMENT PLAN: INPUTS 4.2.1.1 PROJECT CHARTER The project team uses the project charter as a starting point for initial project planning. The type and amount of information in the project charter varies depending on the complexity of the project and the information known at the time of its creation. At a minimum, the project charter should define the high-level information about the project that will be elaborated in the various components of the project management plan. 4.2.1.2 OUTPUTS FROM OTHER PROCESSES Outputs from many of the other processes are integrated to create the project management plan. Subsidiary plans and baselines that are an output from other planning processes are inputs to this process. In addition, changes to these documents may necessitate updates to the project management plan. 4.2.1.3 ENTERPRISE ENVIRONMENTAL FACTORS The enterprise environmental factors that can influence the Develop Project Management Plan process include but are not limited to:  Government or industry standards  Legal and regulatory requirements and/or constraints  Project management body of knowledge for vertical market and/or focus area  Organizational structure, culture, management practices, and sustainability  Organizational governance framework  Infrastructure (e.g., existing facilities and capital equipment). 28 | International Institute of Project and Safety Management (IIPSM) PMBOK Study Guide www.iipsmonline.com 4.2.1.4 ORGANIZATIONAL PROCESS ASSETS The organizational process assets that can influence the Develop Project Management Plan process include but are not limited to:  Organizational standard policies, processes, and procedures  Project management plan template, including:  Guidelines and criteria for tailoring the organization’s set of standard processes to satisfy the specific needs of the project  Project closure guidelines or requirements such as the product validation and acceptance criteria.  Change control procedures, including the steps by which official organizational standards, policies, plans, procedures, or any project documents will be modified and how any changes will be approved and validated  Monitoring and reporting methods, risk control procedures, and communication requirements  Project information from previous similar projects  Historical information and lessons learned repository 4.2.2 DEVELOP PROJECT MANAGEMENT PLAN: TOOLS AND TECHNIQUES 4.2.2.1 EXPERT JUDGMENT Expertise should be considered from individuals or groups with specialized knowledge of or training in the following topics  Tailoring the project management process to meet the project needs, including the dependencies and interactions among those processes and the essential inputs and outputs  Developing additional components of the project management plan if needed  Determining the tools and techniques to be used for accomplishing those processes  Developing technical and management details to be included in the project management plan  Determining resources and skill levels needed to perform project work  Defining the level of configuration management to apply on the project  Determining which project documents will be subject to the formal change control process  Prioritizing the work on the project to ensure the project resources are allocated to the appropriate work at the appropriate time. 4.2.2.2 DATA GATHERING Data-gathering techniques that can be used for this process include but are not limited to: Brainstorming: It is frequently used when developing the project management plan to gather ideas and solutions about the project approach. Attendees include the project team members although other subject matter experts (SMEs) or stakeholders may also participate. Checklists: Many organizations have standardized checklists available based in their own experience or use checklists from the industry. Focus groups: They bring together stakeholders to discuss the project management approach and the integration of the different components of the project management plan. Interviews: Interviews are used to obtain specific information from stakeholders to develop the project management plan or any component plan or project document. 4.2.2.3 INTERPERSONAL AND TEAM SKILLS The interpersonal and team skills used when developing the project management plan include: Conflict management: It may be necessary to bring diverse stakeholders into alignment on all aspects of the project management plan. Facilitation: It ensures that there is effective participation, that participants achieve a mutual understanding, that all contributions are considered, and that conclusions have full buy-in according to the decision process established for the project. Meeting management: This is necessary to ensure that the numerous meetings that are necessary to develop, unify, and agree on the project management plan are well run. International Institute of Project and Safety Management (IIPSM) | 29 PMBOK Study Guide www.iipsmonline.com 4.2.2.4 MEETINGS They are used to discuss the project approach, determine how work will be executed to accomplish the project objectives, and establish the way the project will be monitored and controlled. The project kick-off meeting is usually associated with the end of planning and the start of executing. Its purpose is to communicate the objectives of the project, gain the commitment of the team for the project, and explain the roles and responsibilities of each stakeholder. 4.2.3 DEVELOP PROJECT MANAGEMENT PLAN: OUTPUTS 4.2.3.1 PROJECT MANAGEMENT PLAN The project management plan is the document that describes how the project will be executed, monitored and controlled, and closed. It integrates and consolidates all of the subsidiary management plans and baselines, and other information necessary to manage the project. The needs of the project determine which components of the project management plan are needed. Project management plan components include but are not limited to: Subsidiary management plans:  Scope management plan  Requirements management plan  Schedule management plan  Cost management plan  Quality management plan  Resource management plan  Communications management plan  Risk management plan  Procurement management plan  Stakeholder engagement plan. Baselines:  Scope baseline: The approved version of a scope statement, work breakdown structure (WBS), and its associated WBS dictionary, which is used as a basis for comparison  Schedule baseline: The approved version of the schedule model that is used as a basis for comparison to the actual results  Cost baseline: The approved version of the time-phased project budget that is used as a basis for comparison to the actual results Additional components: Most components of the project management plan are produced as outputs from other processes, though some are produced during this process. Those components developed as part of this process will be dependent on the project; however, they often include but are not limited to:  Change management plan  Configuration management plan  Performance measurement  Project life cycle  Development approach  Management reviews While the project management plan is one of the primary documents used to manage the project, other project documents are also used. These other documents are not part of the project management plan; however, they are necessary to manage the project effectively. Table 4.1 is a representative list of the project management plan components and project documents. 30 | International Institute of Project and Safety Management (IIPSM) PMBOK Study Guide www.iipsmonline.com Table 4.1: Project Management Plan and Project Documents 4.3 DIRECT AND MANAGE PROJECT WORK Direct and Manage Project Work is the process of leading and performing the work defined in the project management plan and implementing approved changes to achieve the project’s objectives. The key benefit of this process is that it provides overall management of the project work and deliverables, thus improving the probability of project success. This process is performed throughout the project. The inputs, tools and techniques, and outputs of the process are depicted in Figure 4.4. International Institute of Project and Safety Management (IIPSM) | 31 PMBOK Study Guide www.iipsmonline.com Figure 4.4: Direct and Manage Project Work: Inputs, Tools & Techniques, and Outputs Direct and Manage Project Work involves executing the planned project activities to complete project deliverables and accomplish established objectives. Available resources are allocated, their efficient use is managed, and changes in project plans stemming from analyzing work performance data and information are carried out. The Direct and Manage Project Work process is directly affected by the project application area. Deliverables are produced as outputs from processes performed to accomplish the project work as planned and scheduled in the project management plan. The project manager, along with the project management team, directs the performance of the planned project activities and manages the various technical and organizational interfaces that exist in the project. It also requires review of the impact of all project changes and the implementation of approved changes: corrective action, preventive action, and/or defect repair. During project execution, the work performance data is collected and communicated to the applicable controlling processes for analysis. Work performance data analysis provides information about the completion status of deliverables and other relevant details about project performance. The work performance data will also be used as an input to the Monitoring and Controlling Process Group, and can be used as feedback into lessons learned to improve the performance of future work packages. 4.3.1 DIRECT AND MANAGE PROJECT WORK: INPUTS 4.3.1.1 PROJECT MANAGEMENT PLAN Any component of the project management plan may be an input to this process. 4.3.1.2 PROJECT DOCUMENTS Project documents that can be considered as inputs for this process include but are not limited to:  Change log: It contains the status of all change requests  Lessons learned register: They improve the performance of the project and to avoid repeating mistakes  Milestone list: This list shows the scheduled dates for specific milestones  Project communications: They include performance reports and other information generated by the project  Project schedule: It includes at least the list of work activities, their durations, and planned start and finish dates  Requirements traceability matrix: It links product requirements to the deliverables that satisfy them and helps to focus on the final outcomes  Risk register: It provides information on threats and opportunities that may impact project execution 32 | International Institute of Project and Safety Management (IIPSM) PMBOK Study Guide www.iipsmonline.com  Risk report: It provides information on sources of overall project risk along with summary information on identified individual project risks 4.3.1.3 APPROVED CHANGE REQUESTS They are an output of the Perform Integrated Change Control process, and include those requests reviewed and approved for implementation by the project manager or by the change control board (CCB) when applicable. The approved change request may be a corrective action, a preventive action, or a defect repair. Approved change requests are scheduled and implemented by the project team and can impact any area of the project or project management plan. The approved change requests can also modify the formally controlled project management plan components or project documents. 4.3.1.4 ENTERPRISE ENVIRONMENTAL FACTORS The enterprise environmental factors that can influence the Direct and Manage Project Work process include but are not limited to:  Organizational structure, culture, management practices, and sustainability  Infrastructure (e.g., existing facilities and capital equipment)  Stakeholder risk thresholds (e.g., allowable cost overrun percentage) 4.3.1.5 ORGANIZATIONAL PROCESS ASSETS The organizational process assets that can influence the Direct and Manage Project Work process include but are not limited to:  Organizational standard policies, processes, and procedures  Issue and defect management procedures defining issue and defect controls, issue and defect identification and resolution, and action item tracking  Issue and defect management database(s) containing historical issue and defect status, issue and defect resolution, and action item results  Performance measurement database used to collect and make available measurement data on processes and product  Change control and risk control procedures  Project information from previous projects (e.g., scope, cost, schedule, performance measurement baselines). 4.3.2 DIRECT AND MANAGE PROJECT WORK: TOOLS AND TECHNIQUES 4.3.2.1 EXPERT JUDGMENT Expertise should be considered from individuals or groups with specialized knowledge or training in the following topics:  Technical knowledge on the industry and focus area of the project  Cost and budget management  Legal and procurement  Legislation and regulations  Organizational governance 4.3.1.5 ORGANIZATIONAL PROCESS ASSETS The organizational process assets that can influence the Direct and Manage Project Work process include but are not limited to:  Organizational standard policies, processes, and procedures  Issue and defect management procedures defining issue and defect controls, issue and defect identification and resolution, and action item tracking  Issue and defect management database(s) containing historical issue and defect status, issue and defect resolution, and action item results International Institute of Project and Safety Management (IIPSM) | 33 PMBOK Study Guide www.iipsmonline.com  Performance measurement database used to collect and make available measurement data on processes and products  Change control and risk control procedures  Project information from previous projects (e.g., scope, cost, schedule, performance measurement baselines, project calendars, project schedule network diagrams, risk registers, risk reports, and lessons learned repository). 4.3.2 DIRECT AND MANAGE PROJECT WORK: TOOLS AND TECHNIQUES 4.3.2.1 EXPERT JUDGMENT Expertise should be considered from individuals or groups with specialized knowledge or training in the following topics:  Technical knowledge on the industry and focus area of the project  Cost and budget management  Legal and procurement  Legislation and regulations  Organizational governance 4.3.3.3 ISSUE LOG Throughout the life cycle of a project, the project manager will normally face problems, gaps, inconsistencies, or conflicts that occur unexpectedly and that require some action so they do not impact the project performance. The issue log is a project document where all the issues are recorded and tracked. Data on issues may include: Who raised the issue and when Priority Who is assigned to the issue Issue type Target resolution date Description Final solution Status The issue log will help the project manager effectively track and manage issues, ensuring that they are investigated and resolved. The issue log is created for the first time as an output of this process, although issues may happen at any time during the project. The issue log is updated as a result of the monitoring and control activities throughout the project’s life cycle. 4.3.3.4 CHANGE REQUESTS A change request is a formal proposal to modify any document, deliverable, or baseline. When issues are found while project work is being performed, change requests can be submitted, which may modify project policies or procedures, project or product scope, project cost or budget, project schedule, or quality of the project or product results. Other change requests cover the needed preventive or corrective actions to forestall negative impact later in the project. Any project stakeholder may request a change. Change requests are processed for review and disposition through the Perform Integrated Change Control process. Change requests may include:  Corrective action: An intentional activity that realigns the performance of the project work with the project management plan  Preventive action: An intentional activity that ensures the future performance of the project work is aligned with the project management plan  Defect repair: An intentional activity to modify a nonconforming product or product component  Updates: Changes to formally controlled project documents, plans, etc., to reflect modified or additional ideas or content. 4.3.3.5 PROJECT MANAGEMENT PLAN UPDATES 34 | International Institute of Project and Safety Management (IIPSM) PMBOK Study Guide www.iipsmonline.com Any change to the project management plan goes through the organization’s change control process via a change request. Any component of the project management plan may require a change request as a result of this process. 4.3.3.6 PROJECT DOCUMENTS UPDATES Project documents that may be updated as a result of carrying out this process include but are not limited to: Lessons learned register Assumption log Requirements documentation Risk register Stakeholder register Activity list 4.3.3.7 ORGANIZATIONAL PROCESS ASSETS UPDATES Any organizational process asset can be updated as a result of this process. 4.4 MANAGE PROJECT KNOWLEDGE Manage Project Knowledge is the process of using existing knowledge and creating new knowledge to achieve the project’s objectives and contribute to organizational learning. The key benefits of this process are that prior organizational knowledge is leveraged to produce or improve the project outcomes, and knowledge created by the project is available to support organizational operations and future projects or phases. This process is performed throughout the project. The inputs, tools and techniques, and outputs of the process are depicted in Figure 4.5. Figure 4.5: Manage Project Knowledge: Inputs, Tools & Techniques, and Outputs Knowledge is commonly split into “explicit” (knowledge that can be readily codified using words, pictures, and numbers) and “tacit” (knowledge that is personal and difficult to express, such as beliefs, insights, experience, and “know-how”). Knowledge management is concerned with managing both tacit and explicit knowledge for two purposes: reusing existing knowledge and creating new knowledge. The key activities that underpin both purposes are knowledge sharing and knowledge integration (of knowledge from different domains, contextual knowledge, and project management knowledge). From an organizational perspective, knowledge management is about making sure the skills, experience, and expertise of the project team and other stakeholders are used before, during, and after the project. Because knowledge resides in the minds of people and people cannot be forced to share what they know (or to pay attention to others’ knowledge), the most important part of knowledge management is creating an atmosphere of trust so that people are motivated to share their knowledge. Even the best knowledge management tools and techniques will not work if people are not motivated to share what they know or to pay attention to what others know. In practice, knowledge is shared using a mixture of knowledge management tools and techniques (interactions between people) and