Project Management PDF

Classification | Internal  LESSON 1 BUSINESS ENVIRONMENT Foundation Strategic Alignment Project Benefits and Value Organizational Culture and Change Management Project Governance Project Compliance ©2023 Pro...

Classification | Internal  LESSON 1 BUSINESS ENVIRONMENT Foundation Strategic Alignment Project Benefits and Value Organizational Culture and Change Management Project Governance Project Compliance ©2023 Project Management Institute, Inc. All rights reserved. ©2023 Version 3.2 | 2023 Release This material is being provided as part of a PMI® course. 2 Classification | Internal  Learning Objectives Define ‘project’ and how it relates to the larger Discuss strategic alignment and its elements. discussion of project management. Explain the impact of business factors on Discuss the different types of strategic alignment. organizational structures and how they Determine how projects align with relate to your project’s management. business strategy. Discuss the principles of project Identify types of business value. management. Describe change management theory and its Discuss the principles of agile and how relation to organizational change. they relate to your project’s management. Define and discuss project governance. Explain project compliance and its importance. ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 3 Classification | Internal  Foundation TOPIC A ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 4 Classification | Internal Project A project: Creates a unique product, service or result Is time-limited Drives change Enables value creation for a business or organization Project success depends on: Organizational project maturity Project manager effectiveness Funding and resource availability Team member skill levels Collaboration and communication within the team and with key stakeholders Understanding of the core problem and related needs ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 5 Classification | Internal The Evolution ca. 1969 – PMI founded of Project The application of knowledge, skills, Management tools and techniques to project activities to meet the project requirements Can you describe, in your own words, how project management has changed during this time? 2022 - Toward a systems view “Projects do not simply produce outputs, but more importantly, enable those outputs to drive outcomes that ultimately deliver value to the organization and its stakeholders.” - PMBOK® Guide - Seventh Edition ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 6 Classification | Internal  Project Management Life Cycles and Development Approaches Description Key Roles Value Delivery Proposition Plan-based approach: Project sponsor authorizes Deliverables transitioned to Activities completed in a project customer at completion distinct or linear fashion New phase begins only Team led by project manager Value realized in both short and when the previous phase long term is completed Change-based approach: Product owner controls value Iterative or incremental delivery Agile, incremental or proposition to customer during life cycle iterative development Project team delivers work Regular customer feedback Timeboxed cadence Process roles include team cycle enables continuous (iterations/sprints) or lead, scrum master, agile development of value toward a continuous flow coach, facilitator ”final” product Any combination of the above ©2023 Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 7 Classification | Internal Project Management PMOs can be: Directive​ Manage shared resources​ Office (PMO)* Supportive Coordinate communication across Develop best practices, projects methodologies, standards and templates​ Agile Centers of Excellence (ACoEs) Coach, mentor, train, guide project aka Value Delivery Office (VDO) Many large and managers​ established project- ACoEs enable, rather than manage, oriented organizations Controlling​ project efforts: have a PMO, but PMOs Monitor compliance with project are not a requirement for management standards, policies, Coach teams procedures and templates via Build agile mindset, skills and project management project audits​ capabilities throughout the practice. organization Mentor sponsors and product owners ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 8 Classification | Internal OPM: Organizational project management (OPM) – strategy execution framework that coordinates project, program, portfolio and operations management, and A System for which enables organizations to deliver on strategy Value Delivery External Environment Internal Environment System for Value Delivery Program Portfolio A Portfolio B B.1 Program Program Program Projects A.1 A.2 B.1 Projects Projects Projects Projects Operations ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 9 Classification | Internal Projects, Programs, Collection of projects, programs, Portfolio subsidiary portfolios and operations Aligns with business Portfolios Management managed in a group to achieve strategic strategies objectives Group of related projects, subsidiary Controls components programs and program activities Program and managed in a coordinated manner to Management interdependencies to obtain benefits not available from realize benefits managing them individually Enables achievement Project Part of a broader program, portfolio or of organizational Management both goals and objectives ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 10 Classification | Internal Organizational Structures Organizational structure and governance affects/determines: Functional Matrix How organizational groups and individuals interrelate Project-oriented How much authority the project manager has Composite What resources will be available How the project will be conducted ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 11 Classification | Internal  Relative Authority in Organizational Structures Functional Matrix Project-oriented Team member Functional Conflicted loyalty Project loyalty department Both functional Team member Functional manager manager and project Project manager reporting manager Project manager Coordinator to full Full-time and Seldom identified role project manager responsible Full-time on project Team member role Part-time on project Part-time on project (preferred) Control of project Nonexistent Medium – shared with manager over team (functional manager functional High members controls) manager/sponsor ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 12 Classification | Internal Interactive/Activity Think of your current or a recent project. Can you identify the organizational structure type and describe how it affects your project in the following ways? How organizational groups and individuals interrelate The project manager’s authority Resource availability How the project is conducted ©2023 Project Management Institute, Inc. All rights reserved. ©2023 This material is being provided as part of a PMI® course. 13 Classification | Internal Project Management a. Be a diligent, respectful and caring steward Principles b. Recognize, evaluate and respond to system interactions Guidance for All c. Navigate complexity Project d. Create a collaborative project team environment Practitioners e. Demonstrate leadership behaviors f. Optimize risk responses g. Effectively engage with stakeholders h. Tailor based on context i. Embrace adaptability and resiliency j. Focus on value k. Build quality into processes and deliverables l. Enable change to achieve the envisioned future state ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 14 Classification | Internal  From Principles to Performance Domains Stakeholders Use the 12 principles to guide behavior in the 8 project Uncertainty Team performance domains Development Measurement Principles Approach and Life Cycle Delivery Planning Project Work ©2023 Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 15 Classification | Internal Agile Derived from: Four values from the Agile Manifesto 12 principles There are more than 50 known agile practices and methods in use! ©2023 Project Management Institute, Inc. All rights reserved. ©2023 This material is being provided as part of a PMI® course. 16 Classification | Internal The Agile Manifesto for “We are uncovering better ways of developing software by doing it and helping others do it. Software Development Through this work we have come to value: Individuals and interaction over Process and tools Comprehensive Working software over documentation Customer collaboration over Contract negotiation Responding to change over Following a plan That is, while there is value in the items on the right, we value the items on the left more.” -2001 ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 17 Classification | Internal Principles Behind the 1. Our highest priority is to satisfy the customer through early and Agile continuous delivery of valuable software. Manifesto 2. Welcome changing requirements, even late in development. Agile 1 to 6 processes harness change for the customer’s competitive advantage. 3. Deliver working software frequently, from a couple of weeks to a couple of months, with a preference to the shorter timescale. 4. Businesspeople and developers must work together daily throughout the project. 5. Build projects around motivated individuals. Give them the environment and support they need and trust them to get the job done. 6. The most efficient and effective method of conveying information to and within a development team is face-to-face conversation. ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 18 Classification | Internal Principles Behind the 7. Working software is the primary measure of progress. Agile 8. Agile processes promote sustainable development. The sponsors, Manifesto developers, and users should be able to maintain a constant pace indefinitely. 7 to 12 9. Continuous attention to technical excellence and good design enhances agility. 10. Simplicity – the art of maximizing the amount of work not done – is essential. 11. The best architectures, requirements, and designs emerge from self- organizing teams. 12. At regular intervals, the team reflects on how to become more effective, then tunes and adjusts its behavior accordingly. ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 19 Classification | Internal Agile: The “Far Side” of “Doing Agile vs. Being Agile” Adaptive Approaches Agile means: Iterations are likely to be shorter Product is more likely to evolve based on stakeholder feedback Still used for software development, and agile principles have been applied to other kinds of development projects, vis-à-vis the agile mindset. Adopt a flexible, change-friendly way of thinking and behaving Understand the purpose of these practices Select and implement appropriate practices based on context Internalize agile values, mindset and behavior ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 20 Classification | Internal Tailor* Projects to Contexts Because each project is unique, we adapt methods to the unique project context to determine the most appropriate ways of working to produce the desired outcomes. Tailor iteratively and continuously throughout the project ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 21 Classification | Internal Tailor Hybrid Approaches, Processes, Practices and Apply product knowledge, delivery cadence and awareness of the Methods available options to select the most appropriate development approach Tailor processes for the selected life cycle and development approach; include determining which portions or elements should be added, modified, removed, blended, and/or aligned Tailor practices and methods to the environment and culture ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 22 Classification | Internal Topics Covered Foundational project management concepts Project management principles The Agile mindset Tailoring – hybrid approaches, processes and practices in project management ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 23 Classification | Internal  Strategic Alignment TOPIC B ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 24 Classification | Internal PMI Talent Triangle® The PMI Talent Triangle® reflects the skills needed by today’s project professionals and changemakers as they navigate the evolving world of project management. Ways of Working Mastering diverse and creative ways (predictive, adaptive, design thinking) to get any job done Power Skills The critical interpersonal skills required to apply influence, inspire change and build relationships Business Acumen TM Business Acumen Effective decision-making and understanding of how projects align with the big picture of broader organizational strategy and global trends ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 25 Classification | Internal Strategic Alignment and Do you: Business Management Know your organization’s strategic plan? Skills Understand how project goals matter to an organization's long-term vision and mission? See a high-level overview of the organization? Have a working knowledge of business functions? Have pertinent product and industry expertise? Can you: Explain the essential business aspects of a project? Work with SMEs and a sponsor to develop an appropriate project delivery strategy? Implement strategy to maximize the business value of project? ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 26 Classification | Internal  Strategic Management Elements and Frameworks Some agile projects use a goal-setting framework such as OKRs (Objectives and Key Results) that describes the organization’s objectives and desired key results. ongoing Note: From PMI’s Standard for Portfolio Management ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 27 Classification | Internal Organizational Influences Influences Enterprise Environmental Factors Refers to all the implicit input or Conditions outside the assets on processes used by (EEFs) immediate control of the Internal and External an organization in operating a Internal team, and that influence, Internal and external to the EEFs constrain, or direct the business. This may include, but OPAs (Click to show definition) is not(Click limited to, business to show definition)plans, organization project, program, or processes, policies, protocols, portfolio. and knowledge. Organizational Process Assets (OPAs) Project policies, procedures and templates Process, Corporate Historical project information External Internal Policies and Knowledge Procedures Base ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 28 Classification | Internal Get to Know the External Use frameworks or prompts to understand external factors that can introduce risk, Business uncertainty, or provide opportunities and affect the value and desired outcomes of a project: Environment PESTLE: Political, economic, socio-cultural, technical, legal, environmental TECOP: Technical, environmental, commercial, operational, political VUCA: Volatility, uncertainty, complexity, ambiguity In addition, review:​ Comparative advantage analysis​ Feasibility studies​ SWOT (strengths, weaknesses, opportunities and threats) analysis​ Assumption analysis​ Historical information analysis​ Risk alignment with organizational strategy ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 29 Classification | Internal Internal Business Environment Factors Organizational changes can dramatically impact scope The project manager, project sponsor or product owner need to be familiar with business plans, reorganizations, process changes and other internal activities Internal business changes might cause: Need for new deliverables Reprioritization of value, including removal of existing deliverables ©2023Project ©2023 ProjectManagement ManagementInstitute, Institute,Inc. Inc.All Allrights rightsreserved. reserved. This material is being provided as part of a PMI® course. 30 Classification | Internal OPAs and OPAs EEFs EEFs Processes, policies and procedures Internal Examples— Examples— Organizational charts Resource capabilities Procurement rules Organizational culture Hiring and onboarding procedures IT software Distribution of facilities Organizational knowledge bases External Examples— Engineering wikis Examples— Libraries or archives Marketplace conditions Lessons learned repositories Laws, regulations and standards Operating conditions Social and cultural influences ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 31 Classification | Internal Activity: Project name: Shawpe Lifestyle Centre Identify OPAs and EEFs List of EEFs and OPAs: a. Economic demand for a new shopping area b. Historical society (conservation) building regulations c. Local neighborhood demand for a better town center d. Archive of past large infrastructure projects e. Approved vendor and contractors list f. Tenant selection process Which are EEFs? Which are OPAs? ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 32 Classification | Internal Topics Covered Define strategic alignment and business acumen Follow guidelines for effective business decision-making Explore organizational influences on projects Explain how projects align with broader organizational strategy and global trends ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 33 Classification | Internal  Project Benefits and Value TOPIC C ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 34 Classification | Internal Business Value The net quantifiable benefit (tangible and/or intangible) identified from a business endeavor Part of the objectives or description of the project in the initiating agreements Benefits realization is based on declared business value ©2023Project ©2023 ProjectManagement ManagementInstitute, Institute,Inc. Inc.All Allrights rightsreserved. reserved. This material is being provided as part of a PMI® course. 35 Classification | Internal Examine Business Communicate with stakeholders, do the research and use expert Value knowledge Examine, evaluate and confirm to determine exactly what is or can be of value! Look especially at: Shareholder value (publicly traded companies) or business growth (private) Customer value Employee knowledge Channel or business partner value ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 36 Classification | Internal Types of Business Value Financial New Social Gain Customers Benefit First to Improvement Regularization Market Technological, Alignment or process, etc. compliance with standards and regulations ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 37 Classification | Internal Needs Assessment Usually performed by a business analyst Obtain Data for Precedes the business case the Project Involves understanding of: Business goals and objectives Issues and opportunities Recommends proposals to address: What should be done Constraints, assumptions, risks and dependencies Note: From Business Analysis for Practitioners: A Success measures Practice Guide Implementation approach ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 38 Classification | Internal Business Documents Are developed prior to project start (usually by a business analyst or key project stakeholder) ​ Contain information about the project’s objectives and contribution to the business goals​ Help the business to determine whether a project is worth the required investment of time, money, and resources Review the business documents periodically ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 39 Classification | Internal  Business case:​ justifies project and establishes boundaries Business Cost-benefit analysis Documents Business need Business Case Quality specifications and Benefits Schedule or cost constraints Management Plan Acceptance of the business case usually leads to creation of the project charter. Benefits management plan​ should include: Processes for creating, maximizing and sustaining project benefits Time frame for short- and long-term benefits realization Benefits owner or accountable person Metrics Assumptions, constraints and risks This is a business document, not part of the project management plan. ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 40 Classification | Internal Benefit Measurement Cost-benefit analysis: How businesses justify the selection (authorization) of a project Methods Business - “smaller is better” Estimate payback period — Smallest number (duration) chosen Assess opportunity cost — What if we didn’t undertake the project? Financial - largest number (profit) chosen - “bigger is better” Time value of money Present value (PV) Future value (FV) Net present value (NPV) Internal rate of return (IRR) Return on investment (ROI) You will not need to calculate any of these for the exam. ​ ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 41 Classification | Internal  Project Selection Using Present Value (PV) and Net Present Value (NPV) PV applies to projects that span several time periods when the value of money might change – e.g., inflation Factors to determine PV include: Future value Interest rate Number of periods Net present value (NPV): Is used for capital budgeting Accounts for inflation and macro-economic change (discount rate) Compares the value of a currency unit today to the value of the same currency unit in the future Year 0 1 2 3 4 Net Cash Flows -1200 +400 +800 +600 +1200 Factor 1.91.83.75.68 Net Present Value -1200 +364 +664 +450 +816 ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 42 Classification | Internal How OKRs Help Deliver Start with organizational objectives Business Decide key desired results Value Refine further with objectives and key results (OKRs): Objectives are goals and intents Key results are time-bound and measurable milestones under these goals and intents OKR best practices: Support each objective with between 3-5 measurable key results Aim for 70% success rate to encourage competitive goal-making. A 100% success rate should be re-evaluated as not challenging enough Write OKRs that are action-oriented and inspirational and include concrete, measurable outcomes ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 43 Classification | Internal Incremental Value Delivery An incremental development approach can: Enable value delivery sooner Attain higher customer value and increased market share Allow partial delivery (or previews) to customers Enable early feedback, allowing for adjustments to the direction, priorities and quality of the product ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 44 Classification | Internal ECO Coverage 3.2 Evaluate and deliver project benefits and value Investigate that benefits are identified (3.2.1) Evaluate delivery options to deliver value (3.2.4) 2.1 Execute project with the urgency required to deliver business value Assess opportunities to deliver value incrementally (2.1.1) ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 45 Classification | Internal  Organizational Culture and Change Management TOPIC D ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 46 Classification | Internal Change Management* Organizations embrace change as a strategy. PMOs build and sustain alignment between projects and the organization. Whether your organization has a PMO or not, you are a “changemaker”! Tailor a strategy to circumstances, people and timing Use a robust approach ©2023Project ©2023 ProjectManagement ManagementInstitute, Institute,Inc. Inc.All Allrights rightsreserved. reserved. This material is being provided as part of a PMI® course. 47 Classification | Internal Manage Organizational Change Impacts on Projects Assess organizational culture Evaluate impact of organizational change to project and determine required actions Recommend options for changes to project Continually monitor external business environment for impacts to project scope/backlog ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 48 Classification | Internal Get to Know Organizational Cultures and Styles View of leadership, hierarchy and authority Shared vision, beliefs and expectations Diversity, equity and inclusion practices Risk tolerance Regulations, policies and procedures Code of conduct Operating environments Motivation and reward systems ©2023Project ©2023 ProjectManagement ManagementInstitute, Institute,Inc. Inc.All Allrights rightsreserved. reserved. This material is being provided as part of a PMI® course. 49 Classification | Internal Risk, Culture and Change in Organizations Risk threshold and appetite are shaped by diverse values of: Country/region Industry/sector Leadership Project team These must be understood with care to: Establish effective approaches for initiating and planning projects Identify the accepted means for getting work done ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 50 Classification | Internal Change Management Framework “Organizational change requires individual change” The ADKAR® model names five milestones an individual must achieve in order to change successfully: A – Awareness of the need for change D – Desire to support the change K – Knowledge of how to change A – Ability to demonstrate new skills and behaviors R – Reinforcement to make the change stick ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 51 Classification | Internal Actions to Support DO DON’T Change Coach co-workers to support the Force changes – Involve and business — patience and consult; aim to secure buy-in to compassionate mentoring are key the reasons for change Enable an agile operating Alienate resisters – Change can system - Coach team members in breed conflict, so proceed agile to facilitate adoption of a carefully change-centered mindset Keep knowledge current – Continuously improve processes and knowledge ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 52 Classification | Internal Plan for Change Define the knowledge transfer, training and readiness activities required to implement the change brought by the project Include an attitudinal survey to find out how people are feeling Create an informational campaign to familiarize people with changes Be open and transparent about potential effects of the changes Consider creating a rollout plan The rollout plan is not a project management plan component. ©2023Project ©2023 ProjectManagement ManagementInstitute, Institute,Inc. Inc.All Allrights rightsreserved. reserved. This material is being provided as part of a PMI® course. 53 Classification | Internal  Organizational Transformation for Project Practitioners A North Star statement articulates the vision and strategic objectives Brightline® - a PMI initiative Customer insights and global megatrends The Brightline(R) A flat, adaptable cross-functional Transformation Compass transformation operating system and five building blocks of transformation - an Internal volunteer champions (not external enterprise-level change consultants) management framework Inside-Out Employee Transformation (similar to ADKAR) ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 54 Classification | Internal ECO Coverage 3.4 Support organizational change Assess organizational culture (3.4.1) Evaluate impact of organization change to project, and determine required actions (3.4.2) Evaluate impact of the project to the organization and determine required actions (3.4.3) ©2023Project Management Institute, Inc. All rights reserved. This material is being provided as part of a PMI® course. 55 Classification | Internal