Ch 2: Key Project Management Terms

PMBOK Guide

Project Management Body of Knowledge - book that standardizes the processes for effective project management with input from many different sectors

Agile Practice Guide

outlines agile concepts, processes, terms will need to know for exam

Project

temporary initiative undertaken in a unique context to create value. Defined beginning and end. Every project produces a unique output.

Business Value

According to PMBOK, business value is a net quantifiable benefit in any form, including tangible or intangible elements that may contribute to the overall health and well-being of the organization during the project, at the end of the project, or in the long term.

• A project with business value should always benefit the org undertaking it in some way.

Net Quantifiable

refers to a measurable total that accounts for both positive contributions (ex: revenue, efficiency gains, societal impact, customer satisfaction) and negative factors (cost, risk, unforeseen issues)

Value

Value is subjective and different stakeholders may perceive value differently. Because of this, it is essential for a PM to work closely with stakeholders to understand what value means to them.

Operations

Opposite of projects. Ops deal with day to day work in business. One of the main differences between projects and ops is that the former is temporary, and the latter is ongoing. Ops have no start or end date.

Progressive Elaboration

Involves discovering greater levels of detail as the project moves towards completion. This is also known as the “rolling wave planning”. As time progresses, things get more detailed.

• Understanding what info needs to be known and when is the key to successful progressive elaboration. Success of progressive elaboration hinges on prioritizing the timing and relevance of info throughout the project lifecycle.

• what do I need to know and WHEN do I need to know it

Project Management

Project Management is the application of knowledge, skills, tools and techniques to project work in order to meet or exceed the intended value.

Three different approaches to managing a project

1) predictive, 2) agile, 3) hybrid

Predictive Project Management

Predictive project, also known as traditional, waterfall, or plan driven, involves extensive upfront planning, followed by executing that plan to complete the work. Ex: building a house

Agile Project Management

Agile project, known as adaptive, uses an adaptive, change-driven approach in which that product is developed iteratively and delivered in small, value adding increments, rather than relying on a fully defined upfront plan and a single, end of project delivery as a typical predictive approach.

An agile project allows more customer input as the small increments are being built. For example, software development project, you could build and deploy specific modules for users to start using immediately while gathering their feedback for implementation in future modules. Agile projects also support changes throughout the entire project, allowing customers to add requirements without having to go through a change management process as you would on a traditional project.

Hybrid Project Management

Hybrid project is when an org implements aspects of both predictive and agile methods. This can be done in a variety of ways, combining various predictive and agile processes based on the needs of the specific hybrid project.

Product Management

Focuses on the entire lifecycle of a product and the ongoing delivery of value. A product is not a one time effort. It evolves over time and product management typically includes many projects throughout the product’s life. For ex, creating a new product is a project, enhancing or updating the product is another project, and eventually retiring/decom the product is also a project.

• Projects are temporary and deliver outputs

• Product management coordinates multiple projects to deliver sustained, long term value

Tangible Value

ex: increased revenue, productivity, efficiency, infrastructure improvements, or market share, monetary assets, profitability, stockholder equity, utility

Intangible Value

ex: brand recognition, reputation, employee wellbeing, knowledge gained, goodwill, environmental awareness, public benefit

A deliverable alone does not create value…

unless it enabled an intended outcome

Project success measured by two key dimensions

1) success of project outcomes, which focuses on whether the project actually delivered the intended value. Includes achieving financial goals like return on investment or sales targets, as well as non-financial goals such as project improvement, regulatory compliance, customer satisfaction, innovation, or environmental sustainability. Type of value realization will vary depending on type of project - during/right after/years later

2) Success of project management process. How efficiently the project was managed and whether it met its key constraints such as scope, schedule, cost and quality. A project that finishes on time, within budget, meets quality standards demonstrates strong PM and proper use of resources

Processes

Have inputs, tools, and techniques, and outputs that are combined to executive a specific activity on a project

• Every process has inputs, which are things that are needed to start the process. tools and techniques are things that help you execute a process. Output is what you get out of the process.

• ITTO: Input, tools and techniques, and output

ITTO

Input, tools and techniques, and output

Phase

is a collection of logically related project activities that culminates in the completion of one or more deliverables and/or outcomes. Phases are generally concluded and formally closed with the acceptance of a deliverable.

• Each phase has five process groups of initiating, planning, executing, monitoring and controlling, and closing

• every phase culminates in at least one deliverable and one outcome (or both).

Phase gates

Formal review points (also called stage gates), phase/gate/stage reviews, or decision/kill points, held at end of each phase of a project to determine if project is meeting its goals and if project should continue

• can also occur at start of phase to ensure proper alignment, planning and risk readiness before work continues

Deliverable

unique and verifiable product, result, capability that the project is required to produce. Presented to the customer, stakeholders, sponsor for formal review and acceptance. Deliverables are result of completed phases.

Focus Areas

grouping of related PM activities that collectively guide and facilitate the achievement of project objectives.

• 5 focus areas are: initiating, planning, executing, monitoring/controlling and closing

• previous books called focus areas “process groups” (now interchangeable)

Performance domains

enable the practical application of PM and represent the mechanics of PM, including the knowledge, processes, methods that are essential for delivering projects successfully. There are seven PM performance domains:

• governance, scope, schedule, finance, stakeholders, resources, risk

Project Development Approach

Describes how the product, service, or result will be created and evolved through project lifecycle. Defines how you work, while phases define when work happens.