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in the ongoing life of a product

Stakeholders are many and various. Their wants, needs, and desires shape
project requirements and influence project performance.
The culture and structure of a performing organization influences (constrains)
the ways in which work on a project can be performed.

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Project Management Processes
The PMBOK Guide is a standard that describes the application of project man-
agement processes to project activities that have been recognized as good
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practice on most projects most of the time. Good practice, in this
15-Minute Guide =
PMP context, enhances the chance of success.
The PMBOK Guide is not an exhaustive standard. Processes may overlap and
interact in ways not described.
Project management processes that are iterated throughout the project gen-
erally conform to the Plan-Do-Check-Act model of interaction.
There are five process groups to which all project management processes can
be mapped. These are: Initiating, Planning, Executing, Monitoring &
Project Management Professional (PMP) Control, and Closing.

Develop Project Charter

Introduction: the Project Screening criteria fall into one of two categories:

Management Framework Benefits measurement which uses scoring models, comparative

approaches, benefit contribution, and economic models to compare project
A project is a temporary endeavor undertaken to create a unique product, alternatives; and
service, or result, in which temporary means a finite (fixed) duration and Mathematical which uses various mathematical algorithms (linear, non-lin-
unique denotes a set of circumstances (the project) that, although resembling ear, dynamic, integer, multi-objective programming algorithms, etc.) to evalu-
similar circumstances in many aspects, have not been previously encountered. ate alternative projects.
A project proceeds through the process of progressive elaboration.
A project is distinguished from the operational activities of a company by the Statement of Work (or SOW) A narrative description of products, services, or
fact that it is both temporary and unique. Operational activities are ongoing results to be supplied by the project.
and repetitive.
The SOW is important because it:

Project Life Cycle and Organization g

g
identifies the business needs that will be met by the project;
documents the product requirements and characteristics of the product or
A project life cycle defines the phases through which the project progresses service that the project will deliver; and
from beginning to end. Different application areas have different
g
demonstrates how the product or service supports the performing
life cycle models. organizations strategic plan.
A product life cycle describes the phases through which a product progresses
from inception (idea) to end-of-life (obsolescence). Enterprise Environmental Factors Any or all external environmental factors
The project life cycle will intersect with the product life cycle at various points and internal organizational factors that surround or influence the projects success.

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Organizational Process Assets Any or all process-related assets, from any or

all of the organizations involved in the project that are or can be used to influ- Project Scope Management
ence the projects success.
Definition: Project Scope Management includes the processes required
to ensure that the project includes all the work required, and only the work
Direct and Manage Project Execution required, to complete the project successfully.
Approved corrective actions required to bring anticipated project perfor-
mance back into conformance with the project plan (affecting Scope, Schedule, WBS
Cost, Quality and Risk);
Work Breakdown Structure (WBS) A deliverable-oriented hierarchical
Approved preventive actions required to reduce the probability of potential decomposition of the work to be executed by the project team to accomplish
negative consequence (affecting Quality, Risk and Human Resource the project objectives and create the required deliverables. It organizes and
Mobile Edition defines the total scope of the project.
Management); or
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15-Minute Guide Approved defect repair requests required to correct product defects found
the way it was
meant to be, on
by the quality process (affecting Quality). Project Time Management
your iPod, iPhone, These elements are generally represented within the hierarchy of the WBS as
Blackberry and Integrated Change Control
follows (top-down view):
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Other than maintaining the integrity of project baselines, Integrated Change
g
Level 1 represents the total scope of the project;
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Control is necessary in order to:
g
Level 2 represents the projects high level (or rolled-up) deliverables;
g
Level 3 represents the projects work packages (or deliverables); and
g
identify that a change has occurred or needs to occur;
g
Level 4 represents the projects schedule activities.
g
ensure that only approved changes are implemented by influencing those
elements that may circumvent integrated change control; and Activity Sequencing
g
coordinate all approved changes across the project as they affect interde-
pendent, interconnected or related components of the project. The Precedence Diagramming Method (PDM), also known as activity-on-node
(AON), uses a node and arrow convention to model the relationships between
Configuration management is comprised of: schedule activities. The nodes are depicted using boxes or rectangles that
represent activities. Activities are connected with arrows that represent depen-
g
Configuration Identification provides the basis by which product dencies between the activities. The PDM can be used to model four different
configuration is defined and verified, products and documents are labeled types of dependency relationships in which one activity cannot commence or
(i.e. version, series, etc.), changes are managed and accountability is identi- finish until the preceding activity has either started or ended. These relation-
fied and maintained; ships are defined as:
g
Configuration Status Accounting assures the capture, storage and
retrieval of configuration management information required to effectively Finish-to-Start The predecessor activity must finish before the successor
manage both the product and information about the product; and activity can commence;
g
Configuration Verification and Auditing establishes that the perfor- Finish-to- Finish The predecessor activity must finish before the successor
mance and functional requirements defined in the configuration documen- activity can finish;
tation have actually been met as specified. Start-to-Start The predecessor activity must start before the successor
activity can start; and
Start-to-Finish - The predecessor activity must start before the successor
activity can finish.
A lag applies a delay to the successor activity

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A lead accelerates the successor activity. The early finish date is calculated by adding the duration of the activ-
The Arrow Diagramming Method (ADM), also known as activity-on-arrow ity to the early start date.
(AOA), uses an arrow and node convention to model the relationship between
schedule activities. Arrows represent the schedule activities. The connection of Backward pass involves calculating the late start (LS) and late finish (LF)
arrows to nodes represents dependencies. Note that this is the opposite of the dates by moving backward, from right (finish) to left (start) through the
PDM convention. ADM is less commonly used than PDM diagramming and is network diagram.
characterized by the following features: Formula: LS = LF duration
The late start date is calculated by subtracting the duration of the
g
ADM diagrams incorporate dummy relationships (using dummy activities); and activity from the late finish date.
g
only finish-to-start dependencies are used in ADM diagrams.
Flexibility in the project schedule is represented by float (or slack) in the net-
A dummy activity is a schedule activity of zero duration with no actual work content. work paths. Float is defined by the amount of time that a schedule activity can
Project Schedule Network Templates based on previous projects may be used by be delayed without delaying the project. Float can be calculated using either
the project team to create the schedule network diagram. late start and early start dates or late finish and early finish dates. Remember
There are three types of logical relationships or dependencies: these for the exam:

Mandatory (hard logic) dependencies that are defined by the inherent or Formula: Float = LS ES or
physical characteristics of the work to be performed. Formula: Float = LF EF
Discretionary (soft logic) also referred to as preferred or preferential logic,
are dependencies established by best practices generally followed in a There are two kinds of float. Memorize these. Do not confuse the two:
specific application area or may be preferred according to the circumstances
of the project. Free float represents the amount of time that a predecessor schedule
External dependencies that arise from the relationship between project activity can be delayed without delaying the early start of the success or
schedule activities and non- or external project activities. schedule activity;
Total float represents the amount of time that a schedule activity can be
delayed from its early start date without delaying the project completion date.
Activity Duration Estimating
Where a project needs to meet imposed dates or other schedule constraints,
Most likely representing the duration of the schedule activity on the basis
schedule compression techniques can be used to shorten the project schedule
of most likely resource availability and assignment, known dependencies and
while maintaining the scope of the project. Two compression methods are
realistic expectations about the performance of the required task(s);
commonly used:
Optimistic (or best case) representing the duration of the schedule activity
on the basis of uninterrupted and optimal performance of the required task(s)
Crashing in which additional resources are applied to shorten the duration
(the perfect realization of circumstances in the most likely scenario); and
of critical path tasks. This usually implies an increase in cost to pay for addi-
Pessimistic (or worst case) which represents the duration of the schedule
tional staff, buy additional work hours (overtime) or purchase technology.
activity on the basis of disrupted and imperfect performance of the required task(s).
Fast Tracking in which tasks that are normally performed serially are per-
formed in parallel. This can result in tasks being removed from the critical
Schedule Development path.
The output from the schedule development process is the Project Schedule,
Forward pass involves calculating the early start (ES) and early finish (EF) which can be presented in one or more of the following formats:
dates by moving forward, from left (start) to right (finish), through the network
diagram. g
Milestone chart presents the start and end dates for the projects major
Formula: EF = ES + duration deliverables (milestones) in a bar chart format;
g
Bar (or GANTT) chart presents both the start and end dates for project

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schedule activities and their durations in a bar char format. g

Level of precision prescribes the precision to which schedule activity cost
g
Project schedule network diagram presents both the critical path and estimates will be recorded; for example, to within the nearest $100, $1,000, etc.
the network logic relationships using an AON diagram format. g
Control thresholds prescribes the agreed variances in costs or time
(schedule) that are tolerated when measurements are taken;
g
Earned value rules describes the basis on which earned value techniques
(EVT) will be applied to monitor project performance;
Project Cost Management g
Control account (CA) prescribes how work packages in the WBS will
be linked to and tracked through the performing organizations
The cost of the project is therefore determined with respect to: accounting system.
g
Resources What resources are required (technical, human), and are they g
Report format defines the formats for the projects cost reports;
available (technology, skills, expertise, quantity)? g
Estimation, Budget & Control processes describes how the cost estima-
g
Time How long will it take for those resources to complete activities and tion, budget and control processes will be applied to the project.
tasks to deliver the project?
g
Scope What are the projects boundaries and limits? What is not included Cost Estimating
(and therefore will not be funded)?
g
Quality What are the quality requirements of the projects products Rough Order of Magnitude (ROM) is in a range of -50% to +100% from
or services? the expected or actual value;
Order of Magnitude is in a range of -25% to +75% from the expected
Present value the discounted value (i.e. the current value) of a future sum or or actual value;
stream of cash flows. This value is expressed by the formula PV = FV divided by Budget estimate is in a range of -10% to +25% from the expected or
1 + r multiplied by n, where PV = Present Value, FV = Future Value, r = the inter- actual value; and
est rate and n = the number of time periods; Definitive estimate is in a range of -5% to +10% from the expected
or actual value.
Net Present Value (NPV) equal to the present value of the total benefits
(which can be expressed as either revenue or income) of the project, minus The PMBOK identifies a number of inputs that are used in the estimating pro-
the costs. cess, of which the following are the most important:
Internal Rate of Return (IRR) the rate (expressed as an interest or discount
rate) at which the value of the project inflows (revenues) and the project ou g
Project Scope Statement covers the totality of those elements that
flows (costs) are exactly equal, or the rate at which the net present value = 0. determine what the project will deliver and how it will deliver the projects
Payback Period the length of time (usually expressed as time periods or products and services.
number of years/months) required of a company to recover its initial invest- g
Work Breakdown Structure (WBS) defines the scope and interrelation-
ment in the project before it starts generating a profit, i.e. the time it takes to ship of the projects component work packages.
pay back the cost of the project. g
Risk register considers information on risk responses. The response to
Benefit Cost Ratio (BCR) compares benefits to costs. Benefits can be each risk identified in the projects Risk register will have a cost associated
expressed as either revenue or payback (not profit). If the BCR value is greater with it that needs to be taken into account when estimating costs.
than 1, then the benefits of the project outweigh the costs; if the BCR value is g
Schedule Management Plan Uses schedule activity resources
less than 1, then the costs outweigh the benefits. and their respective durations as key inputs.
g
Lessons Learned provides input to estimates based on the performance
The Cost Management Plan defines how the following criteria will be applied of previous, comparable projects.
to the project: g
Project team knowledge Project team members can provide input to
estimates based on their own experience and knowledge of similar projects.
g
Units of measurement identifies the base units that will be used for mea-
suring resource utilization; for example, hours, days, weeks, etc. for staff; dol-
lars, euros, etc. for costs;

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Various estimating methods are used to develop the projects costs estimates. Cost Variance (CV) measures the difference between the estimated value
You should familiarize yourself with the following methods. Note how and of the budgeted work accomplished and the actual cost of the work accom-
when it is most appropriate to use each of the following methods: plished. It answers the question Are we on budget?
Formula: EV minus AC = CV
Analogous (or Top-Down) estimating uses the actual costs of similar, previ- A negative CV value (-) indicates that the project is over budget, while a positive
ous projects as the basis for estimating the cost of the current project. value (+) indicates that the project is under budget; and
Parametric (or unit cost) estimating uses mathematical models to derive
a scaled cost for the project, based on the parameters of the work Schedule Variance (SV) - measures the difference between the estimated
to be performed. value of the budgeted work accomplished and the estimated value of the
Bottom-Up estimating involves estimating the cost of individual work scheduled work that is to be accomplished. It answers the question Are
packages or individual schedule activities with the lowest level of detail. we on schedule?
Formula: EV minus PV = SV
Cost Control A negative SV value (-) indicates that the project is behind
schedule, while a positive value (+) indicates that the project
g
Variance analysis in which the actual performance of project work is ahead of schedule.
is compared to planned or expected performance, and any variations are
assessed as to their impact on the project. Variance analysis is most often The following indices are used to measure the projects cost and
performed on cost and schedule data, but can also include scope, quality, schedule performance:
resource and risk assessment;
g
Trend analysis in which project performance is assessed over time to Cost Performance Index (CPI) indicates the rate of return that the project
determine if the projects performance is improving or deteriorating, or is spend is yielding. It answers the question For every project dollar we spend,
within an acceptable range of variation; what is the project returning?
g
Earned value in which planned performance (the baseline) is compared Formula: EV divided by AC = CPI
to actual performance. A CPI value greater than 1 indicates that for every dollar spent, the
project is earning more than the project spend (that is, costs are
There are three main concepts in EV analysis. The purpose of these is to mea- running below estimated levels). A CPI value of less than 1 indicates
sure whether the value of project work performed at a given moment in time that the project is spending more than it is earning (that is, costs are
(when measurements are taken) is as planned. running ahead of the estimated levels). The CPI value indicates how
efficiently the project is being run with respect to costs; and
Earned Value (EV) the estimated value of the budgeted amount of the work
actually accomplished or performed when performance is measured. This is Schedule Performance Index (SPI) indicates the rate of project progress
alternatively known as the Budgeted Cost of Work Performed (BCWP); compared to the scheduled or planned progress. It answers the question If
Planned Value (PV) the estimated value of the scheduled work that is to be we continue at this rate, will we achieve our project end date as planned?
accomplished or completed during the next reporting period. This is alterna- Formula: EV divided by PV = SPI
tively known as the Budgeted Cost of Work Scheduled (BCWS) ; and
Actual Cost (AC) the total cost of the work actually accomplished in per- EV is also used to forecast performance, to help assess the cost, or amount, of Mobile Edition
forming the project work when performance is measured. This is alternatively the work remaining to complete the project.
Enjoy your
known as the Actual Cost of Work Performed (ACWP). 15-Minute Guide
Budget at Completion (BAC) represents the total planned value of the the way it was
Variances in both project cost and schedule are measured using the project work, and it is therefore the sum of all of the budgeted work. meant to be, on
following formulae: Formula: total cumulative PV at completion (PVc) = BAC your iPod, iPhone,
Estimate at Completion (EAC) represents the currently expected total cost Blackberry and
of the project when performance is measured and applies the current spend more! Visit us at
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what the project will cost at this rate. The Cost of Quality (COQ) includes all of the costs related to quality the
Formula: BAC divided by CPI = EAC principle, formulated by Joseph M. Juran, that the cost of quality includes both
Estimate to Complete (ETC) represents an estimate of how much it will the cost of conformance and the cost of nonconformance. Conformance costs
cost to complete the project from this point (when performance is measured) include all prevention and appraisal costs associated with investing in proac-
forward. The cost of the work actually accomplished is subtracted from the tive measures designed to assure delivery of quality requirements (validated
expected total cost of the project, to derive an estimate of how much more it by customer acceptance).
is now expected to cost to complete the project. ISO 9000 provides for the establishment of quality systems within organi-
Formula: EAC minus AC = ETC zations, and it is administered by the International Organization for Stand-
ardization (ISO).
Total Quality Management (TQM) based on the principle that if quality
Project Quality Management requirements are met, then customer requirements are met, TQM provides
the primary focus for the ways in which a performing organization will strive
Quality emphasizes prevention over inspection the principle that the to meet those requirements.
cost of preventing mistakes earlier in the product creation process is generally Six Sigma an approach to quality management that emphasizes continuous
much less than the cost of correcting mistakes that are revealed by inspection process improvement using statistical measurement to guide improvements
of the product later in the process; and and focuses on identifying and solving the root causes of problems.
Quality implies continuous improvement the principle that all processes
involved in project performance and creating the projects product should Perform Quality Control
be continually improved to reduce costs and improve consistency to attain
an optimal state. g
Attribute a defining characteristic of a process or product. The attribute is
measured to determine if the item or component sampled is acceptable.
g
Plan the task or activity, specifying the desired outcome; g
Variable the characteristic of the process or product that is measured,
g
Do the task or activity, as defined in the plan; such as size, shape, weight, etc.;
g
Check the results of the task or activity against the desired outcome; and g
Sample size the number of items, or representatives, selected in the
g
Act to correct or amend the task or activity if the results did not meet sample set;
the desired outcome. g
Range the limits of a population, defined by the difference between the
largest measurement or value and the smallest in the population distribution;
Quality means satisfying customer requirements the principle that g
Variance a measurement of how far the variable being measured is from
customer requirements define the scope of the quality attributes that need the expected value typically associated with that variable (the norm);
to be met by the project. Because customer satisfaction is based on subjec- g
Standard deviation a statistical measure of dispersion of a sample, repre-
tive needs, the PMBOK considers them to be unquantifiable expectations sented by the square root of the average of the squares of deviations about
(page 110), which are difficult to successfully satisfy. the mean of a set of measurements or data. Standard deviation is used to
Quality is a management responsibility the principle that management is identify the range of accuracy that is applied to the results of a defined mea-
ultimately responsible for quality within the performing organization deliver- surement. It is commonly represented by the sigma (or standard deviation)
ing the project. Once again, W. Edwards Deming is influential in defining the scale in ascending order of magnitude, as follows:
standards associated with this principle.
Quality is not the same as grade the principle that grade is a category or 4 +/- 1 sigma = 68.26%,
rank that is used to distinguish items that have the same functional use but\ 4 +/- 2 sigma = 95.46%,
do not share the same requirements for quality (as defined by ISO 4 +/- 3 sigma = 99.73% (representing 27 in 10,000 occurrences),
standard 8402). 4 +/- 6 sigma = 99.99% (representing 1 in 10,000 occurrences);
Precision and accuracy are not equivalent the principle that precision is
defined by observed consistency that the value of repeated measurements g
Normal distribution across a statistical sample is depicted by a bell curve
are closely clustered and exhibit minimal scatter or dispersion when plotted. distribution, in which 50% of the curve occurs above the mean (to the right
hand side of the mean point, usually a line dividing the bell curve), and 50%

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occurs below the mean (the left-hand side of the mean point); Flowcharting is used to analyze how problems occur through the depiction
Mean the arithmetic average expressed by the sum of the measurements
g
of the interrelation of elements within a process.
in a sample set, divided by the number of measurements (the sample size); Cause and Effect Diagrams also known as fishbone or Ishikawa diagrams,
Median the value in a range of data points representing the midpoint
g
cause and effect diagrams are used to depict and aid analysis of how various
in the range, and having as many data points above the midpoint as it does factors may contribute to, or be linked to, potential problems or effects.
below; Histograms are bar charts that show the distribution of variables where
Mode the value in a range of data points that represents the most fre-
g
each bar (or column) represents an attribute or characteristic of a problem
quently observed value in that range; or event.
Statistical sampling involves selecting a sub-set of the total population
g
Pareto Chart is a specific kind of histogram in which the causes of a
for inspection (the sample set). problem or event are ordered by frequency of occurrence, and displayed
Attribute sampling an audit technique in which representatives of a
g
by category or type of cause. Pareto charts are used to identify and evaluate
population are selected (the sample set) and assessed for absolute confor- nonconformities in processes.
mance (yes or no); Run Chart is used to track and analyze trends in performance over time.
Variables sampling an audit technique in which the degree of conformity
g
Data points are plotted in the order in which they occur on a line graph so
of a sample representative is measured and rated on a continuous scale; that patterns of variation in the process or results (including both improve-
Special causes unusual events or results observed in a process indicating
g
ment and deterioration) are captured over time.
that it is not in control; Scatter Diagram depicts the pattern of relationships between two variables,
Common causes also known as random causes, these are events or results
g
and is used to analyze the possible relationships between changes observed
that are attributable to a known variation within the normal working of in the two variables. Dependent versus independent variables are plotted.
the process.
Assignable cause a single data point, or a pattern of data points, that
Project Human Resource Management
g

indicates investigation is required to determine the cause of variation in the

process (see Control charts below);
Tolerances specify the acceptable variations in the attributes of a process,
g g
Project staff alternatively referred to as project team members, they
and provide measurement of the degree of accuracy within the tolerable include all staff performing project work as a regular part of their assigned
range of variation (acceptable margin of error); duties. Project staff report directly or indirectly to the project manager;
Control limits define the variable limits (upper and lower) within which
g g
Project team includes the project manager, the project management
a process is observed to be in control. Control limits are dynamic and should team and, on some projects, the sponsor, too;
be adjusted when required, to reflect the normal range of operation g
Project management team - a sub-set of the project team, alternatively
of the process; known as the core, executive or leadership team, who are responsible for
Prevention includes all of the actions taken to keep errors out of
g
project management activities. On small scale projects the project manage-
the\ process; and ment team may be comprised of most of the project staff; and
Inspection includes all of the actions taken to keep errors out of the
g g
Project manager the person assigned by the performing organization to
hands of the customer. achieve the project objectives.

Rule of Seven Human Resource Planning

Control Charts are used to determine whether or not a process is stable or Organizational identifying which functional units or departments will be
exhibits predictable performance (is in control). The chart depicts the behav- involved in the project, how those departments interact and interrelate, what
ior of a process observed over time. It is a tool for detecting trends. The data methods of working they use, etc.;
points gathered in a control chart are used to identify special cause variation, Technical identifying the technologies and technical resources available to
that is, evidence that the process is inconsistent or unpredictable in its behav- meet the projects needs, including technical operating standards, mandated
ior (it is not in control). technology use, standard operational workflow processes, etc.;

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Interpersonal identifying candidates for the project team, including their Roles and responsibilities are typically described and depicted in the
job descriptions, how they interact with other staff and departments (formal following formats:
and informal), reporting relationships, supervisor-subordinate relationships,
customer-supplier relationships, levels of cooperation, trust, respect, etc.; g
Hierarchical-type chart in which project activities and deliverables are
Logistical identifying the logistical constraints that may determine the mapped to the functional group or department responsible for executing
effectiveness of team member interactions and cohesion, including ge those activities and delivering artifacts in accordance with the project
graphical proximity (collocation) or dispersion (different areas of the country management plan.
or different countries), time zone differences, etc.; and g
Matrix-based chart in which the level of responsibility for a project task
Political identifying different stakeholder agendas and goals, informal or deliverable is explicitly identified with a team member or group.
relationships that support such agendas and goals, how and where stakehold- g
Text format in which much more detailed descriptions of roles, respon-
ers exert influence within the organization (especially informally) and how sibilities, levels of authority, qualifications, competencies, etc., can be pro-
that might affect project performance. vided than in a hierarchical or matrix chart format.

In addition to the above factors, the project management team may also find RACI chart
its human resource planning constrained by the following:
Responsible the team member who has ultimate authority for executing the
g
Collective bargaining agreements union and other employee agree- task or activity meeting the needs of the project;
ments with the performing organization may limit the project management Accountable the team member who has ultimate responsibility for ensur-
teams ability to flex roles and working arrangements to meet project needs; ing that a task or activity has been completed as required by the needs
g
Economic conditions may impact the kind of human resources that can of the project;
be secured and utilized effectively. Consult the team member who must be consulted about the performance
g
Organizational structure the performing organizational structure of the task or expected outcome, as it may impinge or directly affect the per-
directly impacts how the project is performed with respect to the amount formance of activities or tasks for which they are responsible; and
of influence and authority that the project manger and project manage- Inform the team member who must be made aware of the performance of
ment team can exert in securing and directing the necessary resource and a task or outcome so that they can respond, if appropriate, from an
priority to successfully complete project activities. informed perspective.

Five Types of Organizational Structures All roles and responsibilities required by the project must be identified and
defined as a result of the human resource planning process. At the very least,
Functional in a functional organization, each specialist department or the following must be documented:
group has ultimate authority over any project work performed by its staff, and
will defer to other departments for work outside of its specialization. Projects g
Role the part that the team member will play in the project. Each team
are performed in accordance with the hierarchical structure of the company. member is ultimately accountable for the role assigned to them;
Weak Matrix functional departments still exert strong control over resource g
Authority confers rights to make decisions, apply resource and sign
allocations and budget, and the project managers authority is limited. approvals. The level of authority exercised by each team member derives
Mobile Edition Balanced Matrix the project manager begins to share authority with from their designated and agreed upon project responsibilities;
functional managers for directing and assigning staff to project work, as well g
Responsibility is defined by those accountabilities which the team mem-
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15-Minute Guide as sharing in control over the project budget. ber must perform or execute to meet project needs; and
the way it was Strong Matrix control and influence over resources and budget assigned g
Competency is defined by a team members skills and capacity to
meant to be, on to projects is shared with functional managers, though the project manager perform tasks assigned to them to meet project requirements. Team mem-
your iPod, iPhone, exerts the stronger authority over these. ber competency impacts, both positively and negatively, project performance.
Blackberry and Projectized Performing projects is the business of the organization, and
more! Visit us at functions and departments are primarily aligned to support the execution
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The Staffing Management Plan is the formal planning document that describes opinions and views, relationships have not yet been established and the team
how and when the projects human resource requirements will be met and is needs a high degree of direction in order to function;
comprised of the following components: Storm in which team members are actively establishing their position in
the team, are openly expressing their views, will challenge and confront other
Staff acquisition addressing how and where project staff will be added to viewpoints and will try to influence and shape the direction of the team to
the project, including costs of acquisition (determined by the skills, know suit their own agendas.
edge, and experience required to meet project needs); Norm in which differences and conflicts between team members are being
Timetable identifying when staff will be added to the project and how long resolved or accommodated, effective relationships are becoming more estab-
they will be utilized on project activities. lished and individual agendas are increasingly focused on meeting the needs
Release criteria defining when and how staff will be released from the of the project.
project and returned to their functional department or transitioned to Perform in which trust between team members guides action, individual
another project. performance is enhanced and supported by strong cohesion, the team is self
Training needs identifying how required competencies will be acquired by directed and requires a minimum of support from the project management
staff to meet the projects needs; team and it is completely focused on meeting the goals of the project;
Recognition and Rewards (R&R) defining criteria and behaviors by which Adjourn during the closing stages of the project, in which team members
team members will be rewarded for their project efforts. The scope of an are moving on to new projects or returning to their functional department
effective R&R scheme must be based on those activities that a team member and may be reluctant to leave or sever relationships with the team.
can personally influence and control.
Compliance identifying how the project will ensure that it meets the Project managers in particular, but also project management team members,
requirements of human resource policies, statutory regulations, union need to develop and apply their own general management skills to help reduce
agreements, etc.; problems and increase cooperation. These soft skills include:
Safety identifying relevant health and safety policies and procedures that
may affect staff in the performance of their project work. g
Empathy the ability to step into another team members shoes, not just
to see their perspective on an issue or problem, but to understand with feel-
g
Physiological needs representing the basic or fundamental needs of ing what the issue or problem really means to that team member.
existence, such as shelter, food, clothing, etc. The primary objectives of these g
Influence the ability to achieve a desired outcome or state in the mind
needs are self-preservation and comfort; of a project participant, without having to give explicit direction or exert
g
Safety needs representing the avoidance of risk, pain or harm. These overt pressure to achieve that result.
needs are met by anything that promotes and assures stability, order g
Creativity the ability to find solutions to problems using available
and security; resources in imaginative or ingenious ways.
g
Social needs representing companionship, family and social relationships; g
Group facilitation comprises various interpersonal techniques that are
g
Esteem needs represented by our sense of status, derived from achieve- used to mediate the contributions of individuals to ensure balanced and full
ments and responsibilities that are recognized, acknowledged and participation in team activities by each individual.
rewarded; and
g
Self Actualization representing the cognitive level at which the indi- Manage Project Team
vidual realizes their full potential, attaining self-fulfillment.
The power that project managers exert derives from a combination of the
Develop Project Team limits of their influence and the level of their authority. There are five commonly
recognized sources for this power. These are:
On an increasing scale of team cohesion, the phases through which the team Reward in which bonus, promotion and other incentives are used to encour-
members progress in this process are referred to as: age positive behaviors that enhance project performance;
Expert in which knowledge and expertise (technical or specialist) are used
Form the initial stage of team development in which team members are to establish credibility and build confidence among team members in the
unsure of their peers, are relatively reserved or guarded about expressing their leadership abilities of the project manager.

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Referent in which reference to the authority of someone in a higher posi- Confrontation (or problem solving) in which the sources of the conflict are
tion or via association is used to establish leadership. Such reference may also discussed and examined by the protagonists in an open-minded dialogue.
be based on personality or knowledge; The root causes are identified and acknowledged, and alternative solutions to
Penalty (or Coercive) in which rewards are withheld or actions are penalized the conflict are accepted. Confronting directly the root causes of the problem
on the basis of non-performance, usually via formal disciplinary procedures. is the most effective way of resolving conflict.
In all cases, the objective of these actions is to correct negative behaviors that
impair or disrupt project performance; and
Legitimate (or Formal) in which the leadership of the project manager is Project Communications Management
officially recognized by the performing organization. The level of authority
Communications comprises a substantial body of knowledge in itself that is
exerted is based on a hierarchical position.
outside the scope of the PMBOK. However, as a minimum, you should be famil-
iar with the following communications concepts:
Conflict can arise in many areas of the project. The main sources of conflict are:
Sender-receiver models the mechanics of successful communication. This
g
Schedule created by the tension between the desire to complete project
includes understanding the dynamic of active feedback loops (between
tasks according to an idealized timetable, and the performance of those
sender and receiver) and barriers to successful communication.
tasks according to the constraints of the actual project environment;
Choice of media selecting the optimal form in which the message is sent to
g
Priority divergent or conflicting views on the order of accomplishment
ensure that it is correctly understood by the receiver. For communications to
of the project activities, or between one project assuming (or being
be successful, it is necessary to deliver the message in a form appropriate to
assigned) precedence over another;
the nature of the content.
g
Resource lack of availability or access to the right kind of resources to
Writing style selecting the appropriate components of written communica-
perform project tasks; and
tion to ensure that the correct message is delivered.
g
Technical viewpoint divergent opinions regarding the best way to
Presentation techniques using a variety of techniques to enhance and
perform project activities, especially those involving alternative choices
assure that information is interpreted in the correct manner.
over technology decisions.
Meeting management techniques using a variety of techniques to ensure
that group communications among project participants contribute to
Approaches to Conflict
the projects purpose.
Avoidance (or withdrawing) in which management ignores the conflict, and
the problem continues unresolved;
The five components are:
Accommodation (or smoothing) in which common ground between the
protagonists is identified by emphasizing those areas on which there is agree-
1. Encode the process by which thoughts or ideas are translated into a public
ment, but does not address areas of disagreement. The source of the conflict
language (i.e., can be commonly understood and transmitted to others);
is deemphasized but is not resolved;
2. Message the output of the encoding process (i.e., the message
Compromise (or bargaining) in which the protagonists negotiate over the
to be transmitted);
issues causing conflict, and jointly arrive at a win-win position by giving som
3. Medium the method used to carry the message from the sender
thing up in return for gaining something.
to the receiver;
Forcing (or dictating) in which a specific solution to the conflict is imposed
4. Noise anything that may impede or distort the transmission of the mes-
on the protagonists. One party usually gains more than the other (win-lose).
sage or the interpretation (understanding) of the message by the receiver
The source of the conflict is only partially addressed, and may re-surface, but in
(for example, using excessive technical terminology when communicating
a different form;
with a non-technical audience); and
Collaboration (or consensus) similar to compromise but more effective,
5. Decode the process by which encoding is reversed and the received mes-
because the multiple viewpoints of the protagonists are acknowledged and
sage is translated back into thoughts and ideas.
accommodated within the solution. Collaborative solutions emphasize work-
ing together, and this is a very effective way of resolving conflict; and

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External interfaces to identify how the project will meet the communica- Tracking describing how risk activities such as outputs and artifacts will be
tion needs of stakeholder groups external to the performing project organiza- recorded and documented, including lessons learned. Also included is refer-
tion. For example, keeping local communities appraised of construction work ence to how risk management activities will be audited; and
that may impact their environment; Reports describing the content and format of the Risk Register and
Company and departmental organization charts to identify how and project risk reports.
where potential project resources are organized by the performing project
organization, including understanding the interactions between departments Risk Identification
and groups (as documented in methods of working or operational procedures);
Roles & responsibilities to understand the functions and activities for Delphi technique in which ideas and opinions about potential risks are
which individuals and groups are accountable for within the performing collected from experts, and a consensus view on the risks is developed. The
project organization; steps involved in this process are:
Internal communications to identify mandatory or other regularly required
a questionnaire is circulated to the experts to solicit risk ideas; Mobile Edition
communications requirements within the performing project organization, for g

example, monthly project status reports for the Project Management Office; g
responses are summarized and then circulated to the experts for review and Enjoy your
comment; and 15-Minute Guide
Formula: n(n-1)/2 where n = number of stakeholders g
updated responses which are re-circulated for further review and comment. the way it was
meant to be, on
Brainstorming in which idea-generation is facilitated with the project team your iPod, iPhone,
If there are 10 project stakeholders, then the potential number of communi-
and relevant subject matter experts to explore, uncover and identify areas of Blackberry and
cations channels is 45. If you double the number of stakeholders to 20, does more! Visit us at
the number of channels double? Increasing the number of stakeholders not potential project risk.
preplogic.com/m
only increases the complexity of the communications channels numerically, Interviews in which project participants, subject matter experts and stak
but also increases how the communications requirements of those additional holders are interviewed to identify project risks based on their experience.
stakeholders will be met. Identifying all of the projects stakeholders is critical SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis in
to ensuring successful project communications. which potential risks are identified by looking at each of the SWOT characteris-
tics as they apply to the project.
Root Cause analysis in which the underlying causes of risks are identified
Project Risk Management and analyzed. Causation characteristics can be used to categorize similar risks
and formulate responses.
Risk Categorization defining which kind of categories and the criteria that
will be used to identify, analyze and assess the impact of risks to the project.
Roles and Responsibilities describing who is responsible for which parts of Qualitative Risk Analysis
the risk management activities; The output from qualitative risk analysis is an updated Risk Register that provides:
Timing identifying when risk management processes will be performed
throughout the project, including when risk management activities will be g
Ranking providing a relative ordering of the significance of the risks
included in the project schedule; evaluated on the project. This should include sufficient information about
Budgeting identifying the resources and costs associated with the projects the risk event, and how it has been evaluated to enable decisions about
risk management approach, accounted for in the cost baseline; how to respond;
Stakeholder tolerances identifying the risk tolerance profile of each stak g
Categorization identifying root causes or patterns of risk for further evaluation;
holder, as revised by the risk management planning process; g
Trend analysis noting any observed trends in risks events;
Methodologies describing the tools, techniques and processes that will be g
Low priority risk watchlist identifying low probability and/or low impact
used to manage risk; risks that do not require immediate attention but should be monitored by
Definition of Risk Probability and Impact defining how probability and the project team;
impact will be applied during the Qualitative Risk Analysis process g
Near term risk responses identifying those risk events that require
Probability and Impact matrix defining how risks will be prioritized accord- urgent attention by the project management team; and
ing to their probability and impact on the projects objectives;

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g
Additional analysis and response identifying those risks that do not
pose an immediate threat to the project but require further evaluation.
Notes
Risk Response Planning
Mitigation (threat response) in which either the probability and/or the
impact of the risk event (and hence, its consequences on project objectives)
are reduced.
Avoidance (threat response) in which the threat is eliminated by changing
the circumstances that invite the threat.
Transference (threat response) in which ownership of the risk is transferred
to a third party. Note that this does not remove the threat. It is a means for
engaging a third party in the management of a specific risk.
Enhancing (opportunity response) in which the size of the opportunity is
enhanced by increasing either the probability and/or impact of the positive
event. Like mitigation, enhancing is most effective where it is used to exert
influence over outcomes before they occur;
Sharing (opportunity response) in which the ownership and rewards of the
positive risk are shared with a third party.
Exploitation (opportunity response) in which the performing organization
deliberately acts to enhance the occurrence of the opportunity.
Acceptance (both threat & opportunity response) in which the risks, either
positive or negative, are accepted by the performing organization.

Project Procurement Management

Fixed Price (FP) (also known as firm fixed price (FFP) or lump sum (LP)):
Fixed Price Incentive (FPI):
Cost Plus Incentive Fee (CPIF):
Cost Plus Fixed Fee (CPFF):
Time & Materials (T&M):
Cost Plus Percentage Cost (CPPC) (also known as cost plus percentage
of cost (CPPC)):

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