Mastering Project Management: Core Concepts and Processes
Defining a Project: Core Concepts and Lifecycle
A project is a temporary effort (because it has a definite beginning and ending) to create a product, service, or result. Projects are undertaken to fulfill objectives by producing deliverables.
- Objective: An outcome toward which work is directed, a strategic position to be produced, or a service to be performed.
- Deliverable: Any unique and verifiable product, service, or result to be produced to complete the project. Deliverables may be tangible or intangible.
Projects are undertaken at all organizational levels. A project can involve an individual or a group, a single organization, or multiple organizations.
A project concludes when one or more of these conditions are met:
- The objectives are achieved.
- The objectives cannot be achieved.
- Funding is no longer available.
- For legal cause.
- Resources are not available.
Key Benefits of Project Management Methodology
- Meet business objectives.
- Satisfy stakeholder expectations.
- Be more predictable.
- Increase chances of success.
- Deliver the right products at the right time.
- Resolve problems and issues.
- Respond to risks in a timely manner.
- Optimize the use of organizational resources.
- Identify, recover, or terminate failed projects.
- Manage constraints (scope, quality, schedule, etc.).
- Better manage change.
Understanding PMBOK: Project Management Body of Knowledge
PMBOK (Project Management Body of Knowledge) is the internationally recognized standard that identifies the best practices in project management. It is not a methodology; it is a foundation on which to build policies, procedures, rules, tools, and techniques for project management. The project manager has to tailor the application of knowledge in PMBOK.
- Generally Recognized: PMBOK identifies what are recognized as good practices in project management. These practices are considered applicable to most projects most of the time and represent a consensus on their value and utility.
- Good Practice: The application of knowledge, tools, and techniques improves the success of projects.
Project Life Cycle: Phases and Development Models
A project life cycle is the series of phases that a project passes through from its start to its completion. Development life cycles can be organized in different ways:
- In a predictive life cycle (or waterfall): The project scope, time, and cost are determined in the first phases of the life cycle, and any changes are carefully managed.
- In an iterative life cycle (or agile): Time and cost estimates are routinely modified as the understanding of the project increases. Iterations develop the product, adding functionality to it.
- In an incremental life cycle: The deliverable is produced through a series of iterations, and it contains 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.
- A hybrid life cycle: Is a combination of a predictive and an adaptive life cycle. Each element of the project may belong to a different kind.
The Project Manager Role: Distinctions from Other Managers
A project manager is the person assigned by the organization to lead the team that is responsible for achieving the project objectives. This role is tailored to the organization, just as project management processes are tailored to fit the project. The role of a project manager may vary from organization to organization.
- A functional manager oversees the management of a functional or business area.
- An operations manager is responsible for ensuring that business operations are efficient.
Leadership vs. Management: Project Manager Competencies
Management
Management is associated with directing another person to get from one point to another using a known set of expected behaviors.
- Direct using positional power
- Maintain
- Administrate
- Focus on systems and structure
- Rely on control
- Focus on near-term goals
- Ask how and when
- Focus on bottom line
- Accept status quo
- Do things right
- Focus on operational issues and problem solving
Leadership
Leadership involves working with others through discussion or debate in order to guide them from one point to another.
- Guide, influence, and collaborate using relational power
- Develop
- Innovate
- Focus on relationships with people
- Inspire trust
- Focus on long-range vision
- Ask what and why
- Focus on the horizon
- Challenge status quo
- Do the right things
- Focus on vision, alignment, motivation, and inspiration
Project Manager’s Areas of Influence
The Project
Successful project managers demonstrate superior relationship and communication skills while displaying a positive attitude. This includes:
- Communicating predictably and consistently
- Understanding stakeholder’s communication needs
- Including new communication channels
- Incorporating feedback channels
- Developing formal and informal networks
- Ensuring communication is concise, clear, complete, relevant, and tailored
The Organization
The project manager interacts with other project managers leading projects from the same program that may impact due to:
- Demands on the same resources
- Priorities of funding
- Receipt or distribution of deliverables
- Alignment of project goals with those of the organization
They also interact with managers within the organization, subject matter experts, business analysts, and more.
The Industry
The project manager stays informed about industry trends, including:
- Products and technology development
- Standards and technical support tools
- Influences affecting the project management discipline
- Process improvement
- Sustainability strategies
Professional Discipline
The project manager keeps updated in knowledge transfer and integration through:
- Contribution to others at local, national, and global levels
- Participation in training and continuing education
Project Integration Management: Delegation & Accountability
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 managers make choices about:
- Assignment of resources.
- Balancing competing demands.
- Examining any alternative approaches.
- Tailoring the processes to meet the project objectives.
- Managing the interdependencies among Project Management Knowledge Areas.
Project Integration Management is specific for project managers. Other areas can be managed by specialists, but the accountability of Project Integration Management CANNOT BE DELEGATED OR TRANSFERRED. The more complex the project and the more varied the expectations of the stakeholders, the more sophisticated an approach to integration is needed.
The Project Charter: Purpose, Content, and Responsibility
DEVELOP PROJECT CHARTER is the process of developing a document that formally authorizes the project and provides the project manager the authority to apply organizational resources to project activities. (It’s like a summary of the project).
- The project charter establishes a partnership between the performing and requesting organizations.
- In the case of external projects, a formal contract is preferred to establish an agreement.
- The approved project charter formally initiates the project.
- It’s not considered a contract because there is no money exchanged in its creation.
The Project Charter includes information such as:
- Project purpose.
- High-level project description.
- Overall project risks.
- Summary milestone schedule.
- Pre-approved financial resources.
- Project exit criteria.
- Assigned project manager.
- Sponsor authorizing the project charter.
Project Kick-off Meeting: Purpose and Significance
The project kick-off meeting (with the most important roles of the company) is 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, and explain the roles and responsibilities of each stakeholder. It is used for tools and techniques in developing the project management plan.
Integrated Change Control: Process and Project Manager Role
PERFORM INTEGRATED CHANGE CONTROL is the process of reviewing all change requests, approving changes, and managing changes in deliverables, project documents, and the project management plan, as well as communicating the decisions. A key benefit is that it allows for documented changes in an integrated manner, reducing overall project risk that often arises from changes made without considering the overall project objectives or plans.
- This process is the ultimate responsibility of the project manager.
- Change can impact the project and product scope or any project document.
- Changes may be requested by any stakeholder throughout the project lifecycle.
- Although changes may be initiated verbally, they should be recorded and entered into the change management system.
- Every change request needs to be either approved, deferred, or rejected by the project manager.
Collecting Project Requirements for Scope Definition
PROJECT SCOPE MANAGEMENT includes the processes required to ensure that the project includes all the work required and only the work required to complete the project successfully. It is about defining and controlling what is and is not included in the project. One of the processes of project scope management is:
COLLECT REQUIREMENTS is the process of determining, documenting, and managing stakeholder needs and requirements to meet objectives. It provides the basis for defining the product and project scope.
- Product requirements are specific to each sector.
- The project’s success is directly influenced by the discovery and decomposition of needs into project and product requirements.
- Requirements (Cost, schedule, quality planning, and procurement) become the base of the Work Breakdown Structure (WBS).
Work Breakdown Structure (WBS): Purpose and Decomposition
CREATE WBS is the process of subdividing project deliverables and project work into smaller, more manageable components. It provides a framework of what has to be delivered. The WBS is a hierarchical decomposition of the total scope of work to be carried out by the project team to achieve the project objectives and create the required deliverables. The planned work is contained within the lowest level of WBS components, which are called work packages (activities where work is scheduled, estimated, monitored, and controlled).
Tools and Techniques: Decomposition
The level of decomposition is guided by the degree of control needed to effectively manage the project. The level of detail will vary with the size and complexity of the project. The WBS must be decomposed until the following objectives are met:
- All the work is included at every level of decomposition (100% Rule: ΣΑ1 = Project).
- There is no overlapping (NA1 = 0).
- One single person is responsible for each work at the last level.
- Deliverables are clearly specified at the last level.
- Quality control can be performed when each work of the last level is finished. Avoid “90% finished” due to lack of data.
- The project is decomposed at the level you want to monitor.
- Each activity is well-defined and is short enough: This allows better estimation & control.
Validating Project Scope and Deliverable Acceptance
PROJECT SCOPE MANAGEMENT includes the processes required to ensure that the project includes all the work required and only the work required to complete the project successfully. It is about defining and controlling what is and is not included in the project.
VALIDATE SCOPE is the process of formalizing acceptance of the completed project deliverables. It brings objectivity to the acceptance process and increases the probability of acceptance by validating each deliverable. The verified deliverables obtained from the Quality Control process are reviewed with the customer or sponsor to ensure they are completed satisfactorily. Sometimes both processes may be performed in parallel.
Cost Management Plan: Key Information and Components
PLAN COST MANAGEMENT is the process of defining how the project costs will be estimated, budgeted, managed, monitored, and controlled. The cost management planning effort occurs early in project planning and sets the framework for each of the cost management processes so that performance of the processes will be efficient and coordinated.
Outputs: Cost Management Plan
It typically establishes the following:
- Reporting formats.
- Organizational procedures links.
- Level of precision, accuracy (e.g., 1%), resources units of measure.
- Control thresholds: Indicate an agreed-upon amount of variation to be allowed before some action is taken.
- Rules of performance measurement: Define the points in the WBS at which measurements of control accounts will be performed, Earned Value Management (EVM) techniques, tracking methodologies, etc.
- Additional details: Strategic fund choices, project cost recording, etc.
Project Cost Metrics: VAC, PV, EV, AC Explained
Variance at Completion (VAC)
VAC = Budget at Completion (BAC) – Estimate at Completion (EAC)
Planned Value (PV)
Planned Value is the authorized budget assigned to the scheduled work. At a given point in time, the planned value defines the physical work that should have been performed.
Earned Value (EV)
Earned Value is a measure of the work performed expressed in terms of the authorized budget for that work.
Actual Cost (AC)
Actual Cost is the realized cost incurred for the work performed on an activity during a specific period of time.
Stages of Effective Project Quality Management
PROJECT QUALITY MANAGEMENT includes the processes of incorporating the organization’s quality policy regarding planning, managing, and controlling project and product quality requirements in order to meet stakeholder’s objectives. There are five levels to increase the effectiveness of quality management:
- Let the customer find the defects. This leads to warranty issues, recalls, loss of reputation, and rework costs.
- Detect and correct the defects before the deliverables are sent to the customer.
- Use quality assurance to examine and correct the process and not just specific defects.
- Incorporate quality into the planning and designing of the project and product.
- Create a culture in the organization that is aware of and committed to quality.
Quality vs. Grade in Project Management
- Quality is the degree to which a set of characteristics meets requirements (ISO 9000:2015).
- Grade is a category assigned to products that have the same functional use but different technical characteristics (e.g., high grade / low grade).
While a quality level that does not meet quality requirements is always a problem, a low grade product may not be. It’s better prevention than inspection because correcting errors is much more expensive.
RACI Chart: Role in Resource Management Planning
Plan resource management is the process of defining how to estimate, acquire, manage, and use team and physical resources. It is used to determine an approach to ensure that sufficient resources are available for the successful completion of the project. Project resources may include team members, supplies, materials, equipment, services, and facilities. They can be obtained from the organization’s internal assets or from outside the organization through procurement processes. The RACI chart is a tool of the plan resource management that represents the connection between work packages or activities and project team members.
Communications Management Plan: Key Elements
PLAN COMMUNICATIONS MANAGEMENT develops an appropriate approach and plan for project communications based on the needs of each stakeholder or group, and available organizational assets.
- On most projects, communications planning is performed very early, during stakeholder identification and project management plan development.
- Although all projects share the need to communicate project information, the information needs and methods of distribution may vary widely.
Outputs: Communications Management Plan
This plan typically includes:
- Stakeholder communication requirements.
- Escalation processes.
- Glossary of common terminology.
- Information to be communicated, reason, timeframe, and frequency for the distribution.
- Person responsible for communicating the information.
- Person responsible for authorizing release of confidential information.
- Person or groups who will receive the information.
- Methods, technologies, and resources allocated for communication activities.
- Constraints derived from specific regulation, technology, organizational policies, etc.
Identifying Project Risks: Process and Best Practices
Identifying risks is the process of identifying individual project risks as well as sources of overall project risk, and documenting their characteristics. It also brings together information so the project team can respond appropriately to identified risks. When describing and recording individual project risks, a consistent format should be used for risk statements to ensure that each risk is understood clearly. Identify Risks is an iterative process, since new individual project risks may emerge as the project progresses through its life cycle.
Project Procurement Process: Key Steps
Project Procurement Management includes the processes necessary to purchase or acquire products, services, or results needed from outside the project team. It includes the management and control processes required to develop and administer agreements such as contracts, purchase orders, memoranda of agreements (MOAs), or internal service level agreements (SLAs). Typical steps in the procurement process might be:
- Prepare the statement of work (SOW) or terms of reference (TOR).
- Prepare a high-level cost estimate to determine the budget.
- Advertise the opportunity.
- Identify a short list of qualified sellers.
- Prepare and issue bid documents.
- Prepare and submit proposals by the seller.
- Conduct a technical evaluation of the proposals including quality.
- Perform a cost evaluation of the proposals.
Drafting Quality and Procurement Management Plans
Quality Management Plan
PLAN QUALITY MANAGEMENT is the process of identifying the quality requirements and standards for the project and deliverables, and documenting how the project will demonstrate the achievement. Quality planning should be performed in parallel with other planning processes. For example, the changes proposed in the deliverables may require cost or schedule adjustments.
Outputs: Quality Management Plan
This plan typically includes:
- Quality standards that will be used in the project.
- Quality objectives.
- Quality roles and responsibilities.
- Quality review in deliverables and processes.
- Quality control, activities, and tools.
- Relevant procedures in case of nonconformance, corrective actions, continuous improvement, etc.
Procurement Management Plan
PROJECT PROCUREMENT MANAGEMENT includes processes necessary to purchase products, services, or results needed from outside the project team. It also includes the management and control processes required to develop and administer agreements such as contracts, purchase orders, memoranda of agreements (MOAs), or internal service level agreements (SLAs). Typical steps in the PLAN PROCUREMENT MANAGEMENT process might be: It determines what, how, and when to acquire goods.
Outputs: Procurement Management Plan
This plan typically includes guidance for:
- How procurement will be coordinated.
- Timetable of key activities.
- Procurement metrics to be used to manage contracts.
- Stakeholder roles and responsibilities.
- Constraints and assumptions that could affect the planned purchases.
- The legal jurisdiction and the currency in which payments will be made.
- Risk issues including insurance contracts to reduce risk.
- Prequalified sellers.
Drafting Communication and Stakeholder Management Plans
Communication Management Plan
PLAN COMMUNICATIONS MANAGEMENT develops an appropriate approach and plan for project communications based on the needs of each stakeholder or group, and available organizational assets.
On most projects, communications planning is performed very early, during stakeholder identification and project management plan development.
Although all projects share the need to communicate project information, the information needs and methods of distribution may vary widely.
Outputs: Communications Management Plan
This plan typically includes:
- Stakeholder communication requirements.
- Escalation processes.
- Glossary of common terminology.
- Information to be communicated, reason, timeframe, and frequency for the distribution.
- Person responsible for communicating the information.
- Person responsible for authorizing release of confidential information.
- Person or groups who will receive the information.
- Methods, technologies, and resources allocated for communication activities.
- Constraints derived from specific regulation, technology, organizational policies, etc.
Stakeholder Management Plan
(Content for Stakeholder Management Plan was not provided in the original document.)