Introduction to PMP
Risk Appetite and Thresholds
Post-investment incident impact on risk appetite.
Following acquisition by PNB, the risk appetite decreased significantly.
Explanation of risk appetite: willingness to take risks.
Emphasis on stringent analyses for new projects (e.g., IRR, ROI).
Definition of Risk Threshold
Risk threshold: the point at which risk becomes unacceptable, necessitating escalation to higher management.
Example in manufacturing where machines are shut down after reaching certain thresholds to maintain safety.
Change Management
Overview of PMI's change management framework.
Focus on ADKAR model for organizational change:
A: Awareness of the need for change.
D: Desire to support the change.
K: Knowledge of how to change.
A: Ability to demonstrate new skills.
R: Reinforcement to sustain change.
Importance illustrated with a personal story about resistance to change from an employee nearing retirement.
Concerns about job security were paramount in employee resistance.
Strategy for Supporting Change
Recommendations for implementing change include:
Coaching coworkers for agile systems.
Avoiding forced changes and addressing resisters positively.
Planning for change with proper informational campaigns, like the one done for mobile hydrogen refueling systems (MHRS).
Organizational Transformation
BrightLine Transformation Compass
Purpose: bridge the gap between strategy and execution.
Five pillars guiding transformation:
North Star: Clear vision.
Customer Insight: Market dynamics understanding.
Transformation Operating System: Structure and resources.
Champion: Individuals promoting transformation.
Empowering Employees: Focus on engagement in the transformation process.
The transformation framework aims to engage senior leaders and involve employees effectively.
Project Governance Structure
Definition and Importance of Project Governance
Project governance oversees project alignment with organizational goals.
Components of effective project governance include:
Project board or steering group: responsible for making decisions and oversight.
Project sponsor: day-to-day decision-making leadership.
Terms of Reference: Clarifying the roles within governance.
Stage Gate Process: Reviewing project milestones to facilitate feedback and decision-making.
Project Compliance and Governance
Understanding Project Compliance
Compliance ensures alignment with regulatory standards, internal policies, and required procedures.
Types of Compliance: Technical and Commercial
Technical: adherence to technical standards.
Commercial: compliance with commercial policies and legal frameworks.
Effective Strategies for Compliance Management:
Regular audits and monitoring.
Documentation and classifying compliance categories early in the project.
Identifying risks related to compliance as part of the planning process.
Definitions and Key Concepts
Definitions:
Risk Appetite: The level of risk an organization is willing to accept.
Risk Threshold: The point at which a risk is deemed unacceptable.
ADKAR: A change management model focusing on awareness, desire, knowledge, ability, and reinforcement.
BrightLine Transformation Compass: A framework for successful organizational transformation.
Minimum Viable Product (MVP): The smallest product that can be released that is functional and meets criteria.
Questions and Answers
Types of questions on these topics that can be expected in exams or discussions:
What is the primary purpose of governance in projects?
What does the ADKAR model stand for?
How can resistance to change be effectively managed?
Describe the components of effective project governance.
Conclusion
Emphasize the importance of following guidelines and frameworks in project management.
Transition to the next chapter focusing on specific project management techniques and practices.
Break
Reminder to take a break for a better engagement in discussions to follow.