Project Performance Domains

Performance Domains

7 total: governance, scope, schedule, finance, stakeholders, risk, resources

*group of related processes that deliver project value

• all interactive, related, interdependent

• work together as one integrated system to help achieve project results

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Governance

framework, functions, processes used to guide project decisions and activities. Goal to optimize project value delivery*. Helps integrate all domains

• other six domains combined

• can be tailored lightweight for adaptive projects, moderate for hybrid, and comprehensive for large predictive projects

• structured governance often includes sponsor, PMO leader, governance board and PM

• predictive projects may need stronger governance tools such as escalation paths and investment controls

• effective governance needs clear metrics, warning signals and feedback mechanisms to support better decisions

• **Leading indicators show early warning signs or trends before problems happen

• **Lagging indicators show what already happened on the project

• ex: completed deliverables, schedule variance, cost variance, resources used

Leading indicators

show early warning signs or trends before problems happen

Lagging Indicators

show what already happened on the project

Scope

defines what the project will accomplish

**should only include required work

• **also includes quality, meaning project must meet both scope requirements and quality requirements

Product Scope

Describes the features, functions, and req of product, service, or result

**explains what the product does, NOT the work needed to create it

Project Scope

Describes work needed to DELIVER the product, service, or result

• what project team must do to create/deliver product

Quality as a feature

means quality requirements are part of the scope, such as speed, security, reliability, ease of use

Value Breakdown Structure (VBS)

organized deliverables by the value they provide, helping the team prioritize the highest value work first

Schedule Management

work needed to plan, develop, monitor, control, project schedule

• can be created at different level depending on project approach or org needs

• rolling wave planning allows the team to plan high level work first, then add more details as project progresses

• project schedule includes linked activities, planned dates, durations, milestones, dependencies, resources

Finance

finance performance domain focuses on how project money and financial resources are planned, used, managed, and controlled

• it covers project costs, funding, budgeting, financing, value*

• financial info help team compare actual performance against plan

value maximization

project should not only control costs but also deliver greatest possible value

funding

explains where the project money comes from, like internal budgets, customer contracts, grants, crowdfunding

Financial constraints

limits to how project money can be used - budget limits, funding rules, time restrictions

• *capex is money used for long term assets

• Opex is money used for ongoing business ops

CapEX

money used for long term assets

• capitol expenditure

OpEX

is money used for ongoing business ops

• operation expense

Stakeholder performance domain

focuses on identifying, engaging, analyzing, monitoring stakeholders throughout project

• include sponsor, team members, customers, anyone impacted by project

• can be internal or external to org

• their power, interest, influence, support may change as project progresses

• domain connected to communications management

Stakeholder engagement

identifying stakeholders, understanding needs, managing expectations, keeping them involved

Sponsor Engagement

critical* because sponsor supports the project, provides resources, approves key docs, help align with project strategy

Resources performance domain

focuses on how project team plans, manages, uses resources

• resources include people and non people resources

• PM is responsible for building, managing, motivating, encouraging/empowering team

• resource manager has authority or one or more resource / helps to align resources

• human resources are the project team members who have roles and respon to meet project work*

Risk performance domain

focuses on managing uncertainty and protecting project from disruption

• goal is to anticipate, prepare for, respond to risks

• should be proactive, not reactive

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Classification

1) unknown - known (hidden fact) - knowledge exists in community but not with entity working endeavor

2) unknown- unknown (emergent risk) - knowledge doesn’t exist within sphere or influence

3) known - known (facts and requirements) - managed a part of scope, NOT risk

4) known - unknown (classic risk) - knowledge to identify probability and impact

Risk threshold

acceptable amount of variation around project objective, such as allowing cost to vary but 5 to 10 percent

Risk exposure

total potential impact of all risks on the project at a certain point in time

During planning, the project manager identified a specific risk and documented a response for it. Months later, that exact risk occurs. 

What should the project manager do first?

Correct answer: Implement the response that was already planned for this risk.

Why it is correct: Because the risk was identified during planning and a response was already prepared, proactive risk management means carrying out that planned response now that the risk has occurred.

Early in a project, much of the later work is not yet well understood, but the project manager is trying to build a fully detailed schedule for the entire project right now. This is causing delays and constant rework of the schedule. 

What should the project manager do?

Correct answer: Detail the near-term work now and elaborate the later work as it becomes clearer.

Why it is correct: Rolling wave planning lets the team plan high-level work first and add more detail as the project progresses. Detailing the near-term work now and elaborating later work as it becomes clearer avoids the constant rework described.