PMP Terms 5

Product Management

The strategic management of a product throughout its life cycle to maximize its value. Within the product lifecycle, there are many projects.

• Understands customer and market needs

• Guides product strategy and development

• Continues beyond individual projects

Product Managers work closely with Project Managers to translate the product strategy and roadmap into actionable project plans.

Example (Izzy's Ice Cream):
The Izzy's mobile app is a product. Product management guides it over its entire life—deciding what customers need, prioritizing improvements, launching new features, and continually improving it.

Risk

An uncertain event or condition that, if it occurs, has a positive or negative effect on project objectives.

• Negative risk = Threat

• Positive risk = Opportunity

• Has not happened yet

Example (Izzy's Ice Cream):
There's a chance the new freezers could arrive late, delaying opening day. It hasn't happened yet, so it's a risk.

Issue

A current problem or condition that is already affecting the project and requires attention.

• Has already happened

• Typically requires action or resolution

Example (Izzy's Ice Cream):
The freezers were supposed to arrive Monday but didn't. The project is now being affected, so it's an issue.

Risk Register

A repository where identified project risks and related information are recorded and tracked.

May include:

• Threats and opportunities

• Risk analysis

• Planned responses

• Risk owners

Example (Izzy's Ice Cream):
The possible late freezer delivery is documented in the risk register along with its probability, potential impact, owner, and planned response.

Issue Log

A document used to record and track project issues through resolution.

May include:

• Issue description

• Owner

• Priority

• Status and resolution

Example (Izzy's Ice Cream):
Once the freezer delivery is actually late, the problem is recorded in the issue log, assigned to someone for resolution, and tracked until resolved.

Leadership vs. Management

Management → focuses on the work

• Plans, organizes, coordinates, and controls

• Manages tasks, processes, and resources

• Uses formal authority

• Creates stability and order

Leadership → focuses on people

• Sets direction and inspires

• Motivates and empowers

• Builds trust and collaboration

• Influences rather than simply directs

Example (Izzy's Ice Cream):
The PM manages the renovation by tracking the schedule, budget, contractors, and work.

The PM leads when the opening falls behind schedule by bringing the team together, listening to concerns, building trust, and motivating everyone toward the shared goal.

Memory hook: Manage the work. Lead the people.

Laissez-Faire Leadership

A hands-off leadership style in which the team has significant freedom to make decisions.

• Best with experienced, self-motivated teams

• Leader provides minimal direction

Example (Izzy's Ice Cream):
The experienced architects and designers decide how to organize their work while the PM largely stays out of their way.

Servant Leadership

A leadership style focused on supporting and empowering the team so they can succeed.

• Removes obstacles

• Provides needed resources

• Encourages team ownership

• Common in Agile

Example (Izzy's Ice Cream):
The renovation team can't proceed because they're waiting for a city decision. Rather than directing the team's work, the PM works to remove the blocker so the team can keep moving.

PMP mindset: Especially in Agile, support, empower, and remove impediments.

Charismatic Leadership

A leadership style that inspires through the leader's personality, enthusiasm, and communication.

Distinction: Charismatic = inspired by the leader; Transformational = inspired by the vision.

Example (Izzy's Ice Cream):
After a difficult week, the PM gives an enthusiastic talk that reenergizes the team and builds excitement about opening Izzy's.

Transactional Leadership

A leadership style based on goals, rules, performance, and rewards.

Example (Izzy's Ice Cream):
The construction team receives a performance bonus for completing the renovation milestone ahead of schedule.

Memory hook: Performance → Reward

Transformational Leadership

A leadership style that motivates people through a shared vision and encourages growth, innovation, and change.

Distinction: Charismatic = inspired by the leader; Transformational = inspired by the vision.

Example (Izzy's Ice Cream):
Rather than focusing only on opening another store, the PM helps the team see that they're bringing a beloved community ice cream shop back to life, inspiring them around the larger purpose.

Memory hook: Inspire through vision.

Situational Leadership

A leadership approach in which the leader adapts their style to the situation and needs of the team.

Example (Izzy's Ice Cream):
The PM gives a new employee more coaching and direction, while giving an experienced contractor greater independence.

Memory hook: Different situation → different leadership style.