PROJECTFRAMEWORK

A PROJECT MANAGEMENT MATURITY MODEL

VOLUME O NE : T HE M ODEL
identifying maturity levels

© Copyright ESI International July 1999 All rights reserved.

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All material from A Guide to the Project Management Body of Knowledge (PMBOK™) is reprinted with permission of the Project Management Institute, Four Campus Boulevard, Newton Square, Pennsylvania 19073-3299, USA, a worldwide organization advancing the state of the art in project management. Phone: (610) 356-4600, Fax: (610) 356-4647. PMI is a registered service mark of the Project Management Institute. PMBOK™ is a trademark of the Project Management Institute.
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Special permission to use The Capability Maturity Model for Software, Version 1.1, CMU/SEI-93-TR-24 (c) 1993 by Carnegie Mellon University, in ESI’s TM ProjectFRAMEWORK is granted by the Software Engineering Institute.
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VOLUME ONE: THE MODEL
Ginger Levin, D.P.A Gerard M. Hill, PMP Pat DeFilippis, PMP J. LeRoy Ward, PMP Paul Shaltry, PMP D. Richards, Editor

CONTENTS
Page

Executive Overview......................................................................................................OV-1
Need for a Project Management Maturity Model.............................................. OV-1 Background........................................................................................................ OV-1 ESI’s Project Management Maturity Model...................................................... OV-1 Levels of Maturity ............................................................................................. OV-2 Components of ProjectFRAMEWORK™......................................................... OV-4 Understanding the Components of ProjectFRAMEWORK™ .......................... OV-5

Level 1: Ad Hoc—Using Inconsistently Performed Processes and Miscellaneous Tools and Resources............................................................... 1-1
Project Integration Management............................................................................ 1-1 Project Scope Management ................................................................................... 1-1 Project Time Management..................................................................................... 1-1 Project Cost Management...................................................................................... 1-1 Project Quality Management ................................................................................. 1-1 Project Human Resource Management ................................................................. 1-2 Project Communications Management.................................................................. 1-2 Project Risk Management...................................................................................... 1-2 Project Procurement Management......................................................................... 1-2

Level 2: Consistent—Introducing a Structured Approach to Project Management.................................................................................................... 2-1
Methodology Process ...................................................................................... 2-1 Management Support ...................................................................................... 2-1 Training........................................................................................................... 2-1 Project Integration Management............................................................................ 2-3 Objectives........................................................................................................ 2-3 Commitment to Perform ................................................................................. 2-3 Ability to Perform ........................................................................................... 2-4 Activities Performed ....................................................................................... 2-5 Evaluation ....................................................................................................... 2-7 Verification ..................................................................................................... 2-7 Project Scope Management ................................................................................... 2-9 Objectives........................................................................................................ 2-9 Commitment to Perform ................................................................................. 2-9 Ability to Perform ......................................................................................... 2-10 Activities Performed ..................................................................................... 2-11 Evaluation ..................................................................................................... 2-13 Verification ................................................................................................... 2-14 Project Time Management................................................................................... 2-17 Objective ....................................................................................................... 2-17 Commitment to Perform ............................................................................... 2-17 Ability to Perform ......................................................................................... 2-17 Activities Performed ..................................................................................... 2-18 Evaluation ..................................................................................................... 2-19

© ESI International 1999 PROJECTFRAMEWORKTM Volume One: The Model

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................................................................. 2-43 Commitment to Perform .................... 2-30 Activities Performed .............................................................. 2-25 Objectives........................................................................................................................................................................................................................................................................................................................................................................... 2-35 Project Communications Management......................... 2-25 Commitment to Perform ............................................ 2-43 Activities Performed ........................................................................... 3-3 Objectives........... 2-53 Level 3: Integrated—Implementing Project Management Processes Throughout the Organization.................................. 2-29 Objectives............................................................................................................................................................................................................................................. 3-1 Project Integration Management.................................................................................................................... 2-21 Commitment to Perform .................................................................................................................................................. 2-37 Objectives... 2-47 Ability to Perform ......................................................................................................... 2-43 Objectives..................... 2-41 Project Risk Management..................................... 3-1 Organization-Wide Process Application........................................................................................ 2-38 Activities Performed .................................................................. 2-27 Verification ............................. 2-23 Verification ..................................................................................................................................................... 2-45 Project Procurement Management........................................................................................................................................................................................................................................................................................... 2-28 Project Human Resource Management .............. 2-29 Ability to Perform ............................................................................................................ 2-23 Project Quality Management ......................... 2-47 Objectives..................................................................... 2-43 Ability to Perform ...... 2-29 Commitment to Perform ............................. 2-19 Project Cost Management..... 2-37 Ability to Perform ........................................ 3-1 Information System Integration .................................... 2-34 Verification ........................... 2-53 Verification ...................................................................................................................CONTENTS Page Verification ....................................... 2-21 Activities Performed ............................ 3-1 Advanced Technique Development ....................................................................... 2-21 Objective ........................................................................................................................................ 2-48 Activities Performed .............................................................. 2-21 Ability to Perform ....... 2-26 Evaluation .... 2-31 Evaluation ................ 2-47 Commitment to Perform ............................................................................................................................................................................... 2-45 Verification ........................................................................................................................................................................................................................................................................................................................................... 2-41 Verification ........................... 3-3 iv © ESI International 1999 PROJECTFRAMEWORKTM Volume One: The Model ........................................................................................................................................................................................................ 2-49 Evaluation ............ 2-38 Evaluation .............. 2-22 Evaluation ......................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 2-37 Commitment to Perform ........................................................................................................... 2-25 Activities Performed ..... 2-43 Evaluation ........................................................................................................................... 2-25 Ability to Perform .....................................................

...................................................................................................................................... 3-12 Project Scope Management .......... 3-36 Verification ........................................................................................ 3-19 Commitment to Perform ............................................ 3-31 Ability to Perform ............................................................................................................................................................................ 3-19 Objectives...................... 3-19 Activities Performed ..................................................................................... 3-52 Evaluation ........................................................ 3-60 © ESI International 1999 PROJECTFRAMEWORKTM Volume One: The Model v .....................................................................................................................................................................................................................................CONTENTS Page Commitment to Perform ................................................................................................. 3-31 Commitment to Perform ......... 3-5 Activities Performed ............ 3-31 Objectives....................................................................... 3-13 Commitment to Perform ........................................................................................................................................ 3-13 Objectives............................................................................................................................................................................................................................................................................. 3-59 Objectives..................................................................................................... 3-25 Commitment to Perform ............................................................................................................................................................................................................. 3-20 Evaluation .............................................................. 3-49 Ability to Perform ............................ 3-49 Objectives......................................................................... 3-25 Objectives.............................................................................................................................................................................................................. 3-29 Verification ................................................................ 3-32 Activities Performed .. 3-46 Verification ................................................................................................................................................................................................................................................................................................................................................................................................................. 3-13 Ability to Perform ....................................................................................................... 3-29 Project Quality Management ............................................................... 3-39 Ability to Perform .......................................................................................... 3-57 Verification ..................................................................................................................................................................................................................................................... 3-26 Activities Performed ............................................................................................................ 3-36 Project Human Resource Management ............................................................................................................................................................... 3-57 Project Risk Management............................................................ 3-15 Evaluation ......................................................................... 3-39 Commitment to Perform ...................................................................... 3-14 Activities Performed ........................................... 3-26 Evaluation ........................................................................................................................... 3-33 Evaluation ....................... 3-47 Project Communications Management.............................................................. 3-23 Verification ................................................... 3-41 Activities Performed ............................. 3-49 Commitment to Perform ............................................................................................................. 3-25 Ability to Perform ....................................................................................................... 3-17 Verification ...................................................... 3-39 Objectives................................................ 3-17 Project Time Management.................... 3-51 Activities Performed ................................ 3-3 Ability to Perform ................. 3-43 Evaluation .......................................................................................... 3-23 Project Cost Management............................................................. 3-6 Evaluation ................................. 3-59 Ability to Perform ........................................................................................... 3-19 Ability to Perform .......... 3-59 Commitment to Perform ........... 3-11 Verification .........................................

...................................................................................................................................................................................... 5-3 Ability to Perform ........................................................................... 5-7 vi © ESI International 1999 PROJECTFRAMEWORKTM Volume One: The Model ....... 3-67 Ability to Perform ............................... 4-20 Verification ...................................................................................................... 4-13 Ability to Perform ............................................................................................................................................................................................................. 3-65 Verification ........... 3-71 Verification ........ 4-1 Professional Core Competency .................................... 4-9 Verification .................................................................................. 5-7 Commitment to Perform ........... 4-23 Ability to Perform ..................................................................................................................................................................................................................... 5-1 Objective 1.......................................................... 4-25 Verification ......................................................................................................................................................................................................................................................................... 4-3 Ability to Perform ........................... 4-13 Commitment to Perform ....................................................................................................................................................................................... 3-68 Activities Performed ............................................... 4-1 Matrix-Based Performance .......................................................................... 3-65 Project Procurement Management............................................................................................................................CONTENTS Page Activities Performed ...................................................................... 3-68 Evaluation ................................................................................................ 4-23 Commitment to Perform ............................................................................. 4-15 Activities Performed ........................................................ 4-25 Level 5: Optimizing—Targeting Improvements to the Project Management Practice ......................................... 3-60 Evaluation .. 5-6 Verification ...... 3-67 Objectives............................................................................................................................................................................................................................... 4-24 Evaluation ......................................................................................................................................... 5-4 Evaluation .............................................................. 4-1 Institutionalization of Project Management ...................................................................................................................... 5-4 Activities Performed ..................... 5-3 Commitment to Perform .................................................................. 4-23 Objective .......... 4-1 Risk Management Culture ....................................................................................................................................................................................... 4-3 Commitment to Perform ........................ 4-23 Activities Performed ..................... 4-20 Project Risk Management... 5-7 Activities Performed ................... 4-5 Activities Performed ............................................ 5-6 Objective 2...................................................................................................................... 4-3 Objectives...................................................... 4-1 Participation and Commitment of All Project Stakeholders .......................................................................................................................................................................................................................................................................................................................... 4-13 Objectives............................................................................................................................................................................ 5-7 Ability to Perform ............................................... 3-67 Commitment to Perform ............................................................................................................................. 3-72 Level 4: Comprehensive—Committing to a Project Management Culture.................................................................................................................................................................................................... 4-6 Evaluation ................... 4-1 Project Integration Management.............................................................................................. 4-16 Evaluation .................... 4-10 Project Human Resource Management ..

........................................ 5-22 Verification ................................................................................................CONTENTS Page Evaluation ...................................................................................................................... 5-14 Evaluation ........................................ 5-20 Verification ............................................................................................................ 5-21 Evaluation .............................................................................................................................................................................................................................................................................................................. 5-17 Commitment to Perform ..................................................................................... 5-11 Activities Performed .................................. 5-16 Verification ................................................................................................................................................................................................................... 5-11 Evaluation ............................................................................................................................................................................................................................. 5-12 Verification .............................................................................................................. 5-8 Verification ...........GL-1 © ESI International 1999 PROJECTFRAMEWORKTM Volume One: The Model vii ....................................................... 5-18 Activities Performed .......................................................................................................................... 5-11 Commitment to Perform ..................... 5-21 Ability to Perform ....................................................................................................................................................................................................................................... 5-21 Activities Performed ........................... 5-16 Objective 5......................................................... 5-9 Objective 3....................................................................... 5-11 Ability to Perform ..................................... 5-20 Objective 6................ 5-23 Glossary ...................................................................................................................................... 5-13 Activities Performed ............................................................................................................. 5-13 Ability to Perform ......................... 5-17 Ability to Perform ........ 5-12 Objective 4......................................................................................... 5-21 Commitment to Perform ................................................................................................. 5-13 Commitment to Perform ................................................................ 5-18 Evaluation .........................

Executive Overview NEED FOR A PROJECT MANAGEMENT MATURITY MODEL Organizations improve business and technical performance by analyzing three interrelated components—people. ESI’S PROJECT MANAGEMENT MATURITY MODEL ESI’s ProjectFRAMEWORK™: A Project Management Maturity Model is a management tool that builds on the familiar content of the 1996 PMBOK™ by presenting performance objectives for each of the nine project management knowledge areas: n n n n n n n n n Project integration management Project scope management Project time management Project cost management Project quality management Project human resource management Project communications management Project risk management Project procurement management The objectives are used to assess an organization’s level of maturity in managing projects. It was developed as a progressive standard to help organizations continuously improve their software practices. tools and techniques. ProjectFRAMEWORK™ was developed to provide guidance to organizations that want to improve the way they manage projects throughout their organizations. PMI is a registered service mark of the Project Management Institute. not just one. Detailed models that help identify performance characteristics of these components at various stages of growth provide structure for analysis. As organizations continue to become project-based. Some organizations tend to focus only on one of these components. To guide organizations that want to enhance their project management practices. A total of 37 project management subprocesses are identified. The Software Engineering Institute (SEI) developed the Capability Maturity Model ® (CMM ) for Software to help organizations improve the way they develop and ® maintain software. PMI issued its 1996 edition of the PMBOK™ as A Guide to the Project Management Body of Knowledge. The 1987 edition defined that body of knowledge in terms of the topics. ESI developed ProjectFRAMEWORK™: A Project Management Maturity Model. and processes required to apply management principles to ® projects. ® SM BACKGROUND About the same time that the SEI was developing the CMM . the Project ® Management Institute (PMI ) developed the first project management body of knowledge (PMBOK™). The CMM describes how an organization’s software engineering practices evolve under various conditions. and each one is described in terms of its inputs. It describes nine project management knowledge areas in terms of their component processes and how they interrelate. PMBOK™ is a trademark of the Project Management Institute. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model OV-1 ® . and outputs. subject areas. and technology. organizations pursuing effective project management must examine all three areas. an integrated approach is needed to manage these three components throughout the organization. However. It focuses on continuous improvement in managing and developing project management in organizations. processes.

and continuously improved project management processes throughout the organization. resulting in a substantial increase in the project management capability of the entire organization. be interpreted as prohibiting activities OV-2 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . LEVELS OF MATURITY As organizations establish and improve their project management processes. disciplined. ProjectFRAMEWORK™ helps organizations to— n n n n n Identify strengths and weaknesses in project management processes Establish a project management capability baseline Become project based with predicable results Set up a continuous improvement program Integrate effective project management principles and processes within the organization structure Establish uniform principles and processes and integrate them throughout the organization n ProjectFRAMEWORK™ is designed to guide organizations in selecting immediate improvement activities based on the current capability of their project management processes. inconsistently performed processes and moves toward mature. or stages. ProjectFRAMEWORK™ should not. they progress through five levels of maturity. Growth at each level creates fundamental changes in how projects are managed. n n n n n Ad Hoc Consistent Integrated Comprehensive Optimizing Achieving each level in ProjectFRAMEWORK™ institutionalizes new project management capabilities incrementally.Executive Overview The strategic objectives of ProjectFRAMEWORK™ are to— n Enable an organization to assess its current project management capabilities and identify areas of improvement Establish a capability baseline from which an organization can set improvement objectives to achieve “best-in-class” project management status Provide an organization with the necessary know-how to improve its competitive edge by implementing effective project management processes n n ProjectFRAMEWORK™ describes the five levels. ProjectFRAMEWORK™ begins with ad hoc. Each of these levels provides a key layer in the foundation for the continuous improvement of an organization’s project management processes. One primary benefit of the maturity model is that it provides the means for narrowing the scope of the improvement activities by targeting only those project management processes that provide the next foundational layer in an organization’s continued project management development in each of the nine PMBOK™ knowledge areas. These maturity levels are defined according to an organization’s orientation to project management. however. through which most organizations progress in their pursuit of best-in-class project management status.

Executive Overview at lower maturity levels that the organization finds beneficial even after it has achieved higher maturity levels. Policies are established to guide the use of basic project management processes. Neither should the ability to implement processes from higher levels imply that levels can be skipped without risk. the processes are not dependent on a super project manager who just “makes it happen. the organization supports a disciplined approach to performing essential processes for its project management efforts. Processes are repeatable across projects. Objectives at each maturity level are presented as results statements and describe observable steps that indicate that an organization has effectively implemented particular processes within a knowledge area. Organizations can use ProjectFRAMEWORK™ to determine the point at which specific key interventions are required to improve project management capability. Level 4: Comprehensive In maturing to Level 4. personnel performing specific roles are appropriately trained. the Integrated level. project management processes are tailored to enhance and advance specific aspects of each of the nine knowledge areas.” Management reviews the status of each process and. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model OV-3 . There is risk in implementing processes without developing the proper foundation beneath them. based on the results of the reviews. responsibilities are identified for each process. distinctly enabled by senior management support. It uses information to evaluate its effectiveness and to reduce variation in project management execution. Level 1: Ad Hoc The default state of project management maturity is the Ad Hoc level. ProjectFRAMEWORK™ is based on systematic process improvement. resources are allocated and obtained to perform the process. the organization has fully implemented project management throughout the organization. Project management processes. When an organization reaches Level 3. are ill-defined because they are developed and applied by individuals assigned to independent projects. These processes represent the development and introduction of a project management methodology. because there is little organizational support for project management. Projects support and link to the organization’s strategic plan. the Comprehensive level. processes are documented so that they can be repeated in all projects regardless of who manages the project. In maturing from the Ad Hoc level to the Consistent level. Standard processes are closely aligned with the five PMBOK™ process groups: n n n n n Level 2: Consistent Level 3: Integrated Initiating Planning Executing Controlling Closing This alignment sets the foundation for the common understanding and use of the established project management processes throughout the organization. That is. and the processes are documented. Advanced and alternative project management tools and techniques are developed and deployed. Both internal and external stakeholders are viewed as partners in a comprehensive and organization-wide approach to project management. if any. The repeatability of such process application is not readily discernable. takes corrective action as appropriate.

project human resource management. an organization must demonstrate a commitment to perform. project management integration becomes the primary focus of an organization’s project management capability. The objective is to establish continually improving processes. tracking progress. organizational structures. boundaries. Activities performed describe the processes that must be implemented to establish a process capability. o n n Commitment to perform—the actions the organization must take to ensure the processes in a particular knowledge area are established and will endure. o o OV-4 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . and taking corrective actions as necessary. Commitment typically involves establishing organizational policies and executive management sponsorship. At level 4. The commitment to perform and the ability to perform describe the prerequisites for implementing each process. At level 5. this is the largest category because it describes the actual implementation of the knowledge areas. Activities performed typically involve developing specific plans. Activities performed—the specific tasks necessary to implement the objectives related to each knowledge area. and 3 are analyzed in terms of nine well-established knowledge areas in the field of project management. Objectives—The objectives within a knowledge area describe what must be happening in that area to ensure that the components of the knowledge area are applied. Each of the nine areas has its own set of objectives that establish that area’s ability to improve project management. The five ascending maturity levels provide the basic structure of the model. and intent of each knowledge area. for they address what must be done to support and institutionalize the activities in each knowledge area. The objectives signify the scope. the organization looks continually for innovative approaches to improve its overall project management capability. and training. All the components are equally important. Performance—To achieve the objectives in each of the knowledge areas. an ability to perform. and project risk management. 2. n Knowledge areas—Maturity levels 1. COMPONENTS OF The components of ProjectFRAMEWORK™ are as follows. Ability to perform—the preconditions that must exist in the organization or unit to enable the processes in each knowledge area to be implemented competently. the focus is on three areas required to institutionalize project management in any organization: project integration management. Ability to perform typically involves resources. The extent to which objectives have been accomplished is an indicator of the degree of capability the organization has established at that level. The other components generally form the basis by which the organization can institutionalize the processes described.Executive Overview Level 5: Optimizing At Level 5. doing the work. the Optimizing level. PROJECT n Maturity levels—A maturity level is a defined position in an achievement scale FRAMEWORK™ that establishes the attainment of certain project management capabilities. and actual performance. Common causes of project failure are eliminated.

Objectives The objective statements can be used in two ways: n n To determine an organization’s current level of maturity in project management To identify in broad terms those steps an organization can take to reach the next level of maturity Policy statements and procedures—Where policy statements or procedures are used. A variety of alternatives may be used to accomplish the objectives of a knowledge area. Typically. o Evaluation —information collected to determine the effectiveness of the activities performed to achieve the established objectives. Resources—Most knowledge areas contain component descriptions that reflect the need for adequate resources for the activities in the knowledge area. they should not be interpreted as mandating “how” the objectives should be achieved. o UNDERSTANDING THE C OMPONENTS OF PROJECT FRAMEWORK™ Each knowledge area is described in terms of the processes that contribute toward satisfying its objectives. however. and access to tools. adequate time. This represents the connection between the organizational commitment and the activities to be performed. organizational policy or procedure for the processes performed in a particular knowledge area. this includes examples of metrics that could be used to determine the beneficial impact that the activities performed have on project performance. The following provides some insight to understanding. or other individuals or groups not directly involved in the project. procedures. Leadership—In some knowledge areas. interpreting. and using the components of ProjectFRAMEWORK™. and activities for the knowledge areas. They describe “what” is to be done. Those tools that may be useful in performing the activities in a knowledge area are listed as examples. Component descriptions should be interpreted rationally to judge whether the objectives of the knowledge areas are effectively achieved. Commitment to Perform n n Ability to Perform n © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model OV-5 . the Commitment statement addresses the assignment of a leadership role or describes particular sponsorship activities that are necessary for the activities in the knowledge area to be successfully institutionalized. an organization must also be able to measure them. Component descriptions state the fundamental policies. Component descriptions consist of a single sentence often followed by focus points or clarification statements. the Program Management Office.Executive Overview n Measurement—Measurement determines whether the prerequisites have been met and the activities have been institutionalized. Typically. ProjectFRAMEWORK™ components describe the infrastructure and activities that contribute most to the effective implementation and institutionalization of the project management knowledge areas. Verification—the steps taken by the organization to ensure that the activities are performed in compliance with established policies and procedures. they refer to following a written. this encompasses objective reviews and audits by management. access to special skills. To achieve specified objectives. adequate funding. These resources generally fall into five categories: adequate personnel.

and the need for planning and documentation. Senior management reviews conducted periodically are the primary compliance oversight activity. Training is provided to make people more proficient through specialized instruction and practice. Orientation—In some knowledge areas. These metrics are used to verify the establishment of commitments. According to a documented procedure—A documented procedure usually is needed so that the people responsible for a task or an activity can perform it in a repeatable way. Evaluation can be as simple and objective as “Is the activity performed. how it will be used. Verification Verification relates to organizational oversight and the specific activities instituted to verify that the processes are being performed properly. ProjectFRAMEWORK™ cites only those that have been found to be particularly critical for implementing the activities in a knowledge area.Executive Overview n Training—Training may be accomplished through informal and formal vehicles to transfer knowledge. Documented procedures also ensure that others with general knowledge of the topic will be able to learn and perform the activity in the same way. how often it is performed. n Evaluation The evaluation of maturity is. and the performance of required activities. OV-6 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . the organizational focus. how important it is. skills. how well and timely project management activities are conducted at a specified level of maturity. yes or no?” It can also be more complex and subjective based on the evaluator’s experience. Some generalizations are— n Plans—Plans require management commitment both from the standpoint of creating them and ensuring that they are followed. as in “Is the plan comprehensive?” Evaluation metrics should be based on widely accepted concepts of successful performance and on compiled results from like organizations or large population samples. and competencies to stakeholders. accomplished through the application of metrics that enable analysis and determination of maturity status relative to specified knowledge areas. in part. The formality and level of detail of a documented procedure can vary significantly and depends on who will perform the procedure. and who will use it. and insight into. n n Activities Performed The activities performed show the greatest amount of variability because the implementation activities in the knowledge area vary in the level of detail. the creation and demonstration of ability. An orientation is an overview or introduction to a topic for those overseeing or working with the individuals responsible for performing activities in a specific area. The processes for a plan require that it be developed or revised and that the activities of the knowledge area be based on it. This fosters institutionalization of a process. processes that describe orientation are found. The purpose of these reviews is to provide awareness of. Prerequisites—Some knowledge areas contain processes that require prerequisites. Orientation is used broadly to indicate that less depth of knowledge or skills are being transferred than would be expected through training. Reviews should be frequent enough to accurately determine whether compliance is achieved and to implement action where activities are not compliant.

and no formal project management methodology exists. and. Not all basic processes are performed. Formal project acceptance may not be sought. The focus of project management is on the project schedule. not costs. are developed based on end-dates imposed by customers or project sponsors without regard to historical information. Project cost overruns and schedule delays are common. or lessons learned. Projects may or may not end up meeting customer needs. scope creep becomes a chronic problem in project execution. Many projects originate because individuals just decide to do them. and a schedule management plan is not part of the overall project plan. In Level 1. Performance is inconsistent. other projects begin when dictated by management. People working on projects either struggle with the organization’s existing processes or tend to invent a process as they work on the project. as a result. Project management software is just beginning to be implemented in the organization and is used to list specific tasks to be performed without consideration of network logic or resource requirements. scope management is not managed in any structured way. the characteristics are grouped according to the nine knowledge areas in project management. The organization’s accounting system is not project-based. The Level 1 organization may complete projects successfully. projects are managed in an ad hoc fashion. These actions may lead to ill-defined scope. Costs are not formally managed and tend to exceed available budget. They do not believe that these processes provide value to their work and thereby contribute to the organization’s performance. Consequently. but many are accomplished through the heroic efforts of a few persons. risks. PROJECT INTEGRATION MANAGEMENT The organization may provide forms or checklists for use on various project activities but offers little guidance or training in conducting those activities. A schedule baseline is not established. Scope verification is limited. The project management capability of the organization is unknown because most individuals do not take project management processes seriously at this level.Level 1: Ad Hoc Using Inconsistently Performed Processes and Miscellaneous Tools and Resources Specific objectives and activities are not described for a Level 1 organization because it is assumed that all organizations are operating at Level 1 before the introduction of any project management processes. generally. Following is a description of the characteristics displayed by organizations operating at Level 1. There is no formal project budget. Resource planning is ad hoc and not coordinated with cost estimating. PROJECT SCOPE MANAGEMENT PROJECT TIME MANAGEMENT PROJECT COST MANAGEMENT © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 1-1 . Project schedules. Cost reporting is also done in an ad hoc way. The project manager keeps a separate set of cost reports and does not rely on the organization’s accounting department or its systems. Cost management activities are not incorporated into the project plan. A project schedule is sometimes believed to constitute a plan.

causing confusion among team members regarding the relative priorities of project versus functional work. or customers. The organization is struggling with the concept of a matrix organization. and limited. PROJECT HUMAN RESOURCE MANAGEMENT PROJECT COMMUNICATIONS MANAGEMENT PROJECT RISK MANAGEMENT PROJECT PROCUREMENT MANAGEMENT 1-2 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . A project communications management plan is not incorporated into the project plan. Project performance reports are prepared. Quality assurance programs and policies aimed at management by project are virtually nonexistent. A project management information system is not used. and project performance reviews are held only as needed or requested by project sponsors. and as such. it is to be handled by the procurement function. Contract administration and subcontractor management are performed poorly or not at all. Staffing management activities are not incorporated into the project plan. Project closeout is not planned or managed. No formal risk management process is in place. risk management planning is not incorporated into the project plan. Rework is expected because project specifications often are poorly defined at the outset of a project. unstructured. At this level. therefore. Project managers who are successful are heroes and are rewarded individually. the contract. Accordingly.Level 1: Ad Hoc PROJECT QUALITY MANAGEMENT Quality planning is not accomplished at the project level. some projects are never formally closed out. Procurement is not considered part of project management. Quality control is conducted on an ad hoc basis by individual project team members or the quality department on an as-required basis. The project team is staffed based on the availability of individuals. Quality management activities are not incorporated into the project plan. functional managers are reluctant or unwilling to share authority with project managers. Project documentation is not managed according to any appropriate records management processes. Risks are recognized when they turn into problems. The organization does not promote or encourage staff to discuss risk in an open forum. project management is not a recognized practice. Suppliers are not considered members of the project team. Project communication tends to be informal. Project managers are assigned on an ad hoc basis. no career progression is in place. Formal make-or-buy analyses are not conducted. project procurement planning is ad hoc.

and quality goals of their projects. it has developed and introduced a project management methodology. The goal at this level is to establish a basic project management discipline in the organization. that is. and appropriate senior managers of the organization have identified and completed appropriate project management training programs. risk identification and quantification. requirements analysis. At Level 2. and training. Established policies promote a sense of responsibility and discipline in performing basic project management processes. METHODOLOGY PROCESS By the time an organization reaches Level 2. is established for project management. team building. This includes training in the project management methodology. and there is a marked difference in the style of work from Level 1 organizations. Such training ensures that the people in the organization have the knowledge. In maturing to the Consistent level. project management software. the organization has a foundation on which it can build improved methods and processes. MANAGEMENT SUPPORT TRAINING © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 2-1 . When these processes are institutionalized. one that can be repeated regardless of the players. This capability provides a foundation of project management processes that can be continuously improved. Best practices are gathered at the project level. cost. project managers prepare project plans and estimates and control project performance according to the established process. and personnel performing these roles are appropriately trained.Level 2: Consistent Introducing a Structured Approach to Project Management The knowledge areas at Level 2 focus on (1) establishing a foundation of basic project management processes that can be used across all projects and that can be continuously improved and (2) eliminating fundamental problems that hinder project management performance. and competencies required to perform their current assignments. Level 2 capability is supported when project managers. This maturity level is characterized by a methodology process. and project procurement management The ProjectFRAMEWORK™ components used to assess Level 2 maturity are presented in the following subsections. A repeatable process. skills. The capability established at Level 2 enables the organization to eliminate many problems that keep people from being able to meet the schedule. team members. Responsibility is assigned for specific project management roles. cost management. the organization’s executive management clearly supports policies that commit it to developing its project management capabilities. management support.

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and activity lists. work breakdown structures (WBS). COMMITMENT TO PERFORM Commitment 1: The organization follows a documented procedure for managing projects. techniques. Project planning processes stress the need to assess interfaces. and quality. The methodology will ensure that customer needs are met and facilitate internal management of the organization’s projects. The methodology communicates standard project management practices. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 2-3 . repeatable approach to guide the project team during development of the project plan and during project execution. It also provides for a consistent approach to project management.Project Integration Management—Level 2 The Level 2 organization has developed a project management methodology that contains. while allowing project managers some flexibility to manage the unique aspects of each project. Standard approaches for project planning. Objective 2: Project plans are documented and approved. The planning and tracking of new projects are based on experience with similar projects. This function (which could be performed by one person or a group of persons) serves to facilitate the implementation of project management processes in the organization. The organization is considering standard quantifiable metrics in terms of cost. are being formulated to serve as possible templates for future efforts. The organization’s commitment to project management is further evidenced by the identification of a function whose major purpose is the development. and terminology and provides a standard set of tools for project managers. refinement. schedule. OBJECTIVES Objective 1: Management approval is obtained for every project. including the development of project charters. and institutionalization of the project management methodology. one that describes activities to be performed in each phase of the project life cycle Use standard tools that facilitate the performance of project management activities Use project management terms consistently so that a common frame of reference exists throughout the project management life cycle n n Commitment 2: An organizational position is created to assume responsibility for assisting and advising units on project management-related activities. at a minimum. The methodology provides a structured. This procedure typically specifies that organizations— n Follow a process for managing projects. a series of process steps that enable the accomplishment of essential project management activities within an established project management life cycle.

Project Integration Management Level 2: Consistent Ownership of the organization’s project management practice is established. schedule. and continually improve its project management processes. such as project management software. and resources. This procedure typically includes— n n Standard forms and templates for planning Combination of “hard” tools. such as a facilitated kickoff meeting Identification of the customer’s and other stakeholders’ project objectives and requirements Identification of product or service characteristics and how they will be measured and assessed Procedures to retain project documentation n n n ABILITY TO PERFORM Ability 1: Project managers and team members receive an orientation to the organization’s project management processes. This orientation typically includes a description of the— n n n n n n Project management life cycle Activities generally performed in each phase of the life cycle Roles and responsibilities of the project manager Requirements for project planning Requirements for project review Requirements for project documentation Ability 2: Adequate resources are provided for the organization to develop. and “soft” tools. The resources typically made available include— 2-4 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . Groups and individuals normally categorized as stakeholders include— n n n n n n n Project manager Project team members Project sponsor Executive management Functional managers Customers Suppliers and subcontractors Commitment 4: The organization follows a documented procedure on project planning to guide project teams during the development of project plans. The focus at this level is on development and deployment of the project management processes (methodology). Commitment 3: The organization follows a documented procedure that specifies which groups and individuals are to review and agree on cost. implement.

Examples of typical activities in generic project life-cycle phases include— o 2. Items typically covered in this training include— n n n n n Steps to be performed in developing the plan Elements to include in the plan Review of the plan Reasons to update the plan Process to follow to update or revise the plan Ability 4: Adequate resources are provided to support project planning. 3. the technical work to be done in each phase. which deliverables will be produced.Level 2: Consistent Project Integration Management n n n Support for implementing the project management methodology Adequate funding for methodology-related activities Time to assess needed methodology improvements Ability 3: Project managers and team members receive training in project planning. 1. and who will produce them. The project life cycle serves to define the beginning and end of a project. The project life cycle is modified based on the nature of the project to be completed. The project life cycle is structured to contain successive levels of detail to guide project management performance. The resources typically made available include— n n n Individuals with expertise in project planning and estimating Resource time for project planning Tools and techniques for project management planning ACTIVITIES PERFORMED Activity 1: A project life cycle is defined for the organization. Concept phase • Project definition • Project selection • Customer relationship development Development phase • Project plan development • Requirements enhancement • Specification development • WBS development • Risk assessment Implementation phase • Change control • Task management • Tracking and controlling • Risk management • Procurement management o o © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 2-5 .

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• •
o

Quality management Team building

Closeout phase • Reward and recognition • Customer satisfaction assessment • Project assessments

4. 5. 6.

The phases in the life cycle delineate the major project management activities. The conclusion of a project phase is generally marked by a review of deliverables and project performance. Phases in the project life cycle may overlap.

Activity 2: Each project has an identified sponsor.
Examples of typical sponsor responsibilities include—
n n n n n n

Ensuring the project contributes to the organization’s strategic objectives Defining or approving project objectives and goals Facilitating necessary and useful contacts for the project manager Focusing on key project concerns Signing off on the project charter Providing or arranging funding for the project

Activity 3: The project plan is developed according to the project planning procedure.
1. Available historical information is consulted for lessons learned when developing the plan. Examples of historical information include—
o o

Estimating databases Records of past performance on other projects

2.

Informal and formal organizational policies are considered in developing the project plan. Examples of typical policies include—
o o o

Quality management Personnel administration Financial controls

3.

The project plan documents any constraints and assumptions that affect the project team’s actions. Examples of constraints that may limit the project team’s options include—
o o o

Predefined budget Predefined schedule Contractual provisions (if a project is performed under contract)

Examples of assumptions that for planning purposes are considered to be true, real, or certain include—

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o o

Date a key resource may be available Date a key deliverable is scheduled

4. 5.

The project plan documents decisions regarding alternatives selected. Project plans are reviewed and approved by the project sponsor prior to execution.

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Typical elements of a project plan include—
o o o o o o

Scope of work Work breakdown structure (WBS) Cost estimates Resource estimates Project schedule Supporting plans (for example, risk, quality, and so on)

6. 7. 8.

The project plan is used to facilitate communication among stakeholders. The project plan defines the content, extent, and timing of key management reviews. The project plan is reviewed, updated, and revised as needed.

Activity 4: The project plan is issued and executed.
1. 2. The project plan provides a baseline for performance measurement and project control. Supporting detail is included with the project plan and is organized to facilitate its use during plan execution. Examples of typical supporting detail include—
o o o

Additional information or documentation generated as the plan is developed Technical documentation Documentation of relevant standards

Activity 5: The project manager, project sponsor, and appropriate functional managers sign off on the project plan.
The project plan contains a commitment and agreement section that records commitments by project managers, project sponsors, and appropriate functional managers indicating agreement with the plan and commitment to support it. EVALUATION

Evaluation 1: Information is collected and used to evaluate the effectiveness and completeness of the project plan.
Examples of information collected include—
n n n n n n

Level of stakeholder contribution to the project plan Number and types of revisions to the project plan Project plan adherence to established processes Number and types of sign-offs and approvals of the project plan Project variances (costs, schedule, resources) Number of team members and other project stakeholders using the project plan

VERIFICATION

Verification 1: Reviews are conducted to confirm that project plans comply with established project management procedures.
The purpose of these reviews is to confirm that—
n

Every project has a project plan

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n n n n

Activities contained in the plan are performed Project plans are formally reviewed, approved, and issued Every project has a project sponsor Noncompliance issues are resolved

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Problems in meeting commitments are identified when they arise. documented. Requirements are baselined. they should be unambiguous.Project Scope Management—Level 2 The Level 2 organization has a formal project initiation process that is being tested in pilot projects. and the content is controlled. COMMITMENT TO PERFORM Commitment 1: The organization follows a documented procedure for gathering and establishing project requirements. verifiable. it is important that requirements are specified accurately. Because all projects are based on needs and requirements. The procedure typically specifies that— n The WBS provides a family-tree hierarchy and structure for measuring project achievements The WBS identifies the work necessary to accomplish project objectives Responsibility for each WBS work package can be assigned to a specific individual or organizational unit n n © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 2-11 . traceable. controlled. and understood by all stakeholders. There is a focus on establishing and maintaining agreement among the project team. with respect to the requirements. OBJECTIVES Objective 1: Appropriate individuals and groups agree to project requirements. Objective 2: A work breakdown structure (WBS) is developed for every project. including the customer and suppliers. This procedure typically includes— n n n n n n n n Identifying customer’s needs Converting the needs into technical and nontechnical requirements Documenting project requirements Reviewing and signing off on requirements by the customer Reviewing the requirements by other project stakeholders: o Project manager o Project team members o Project sponsor o Executive management o Functional managers o Customers o Suppliers and subcontractors Establishing a baseline for requirements Establishing agreed-on acceptance criteria Implementing an established requirements management process Commitment 2: The organization follows a documented procedure for developing and using the WBS in project planning and execution.

clarity. Persons experienced in conducting requirements analysis are made available. nonambiguity. 1. consistency. and feasibility Procedures for impact analysis of changes to requirements or the introduction of new requirements Identification of resource requirements and development of schedules to perform requirements analysis and related management activities o o 3. completeness. Resources are made available to support training efforts in requirements analysis. Examples of typical areas covered in this training include— o o o Methods for requirements analysis Procedures for requirements development Procedures to define attributes that note a satisfactory requirement such as correctness. and personnel reviews Expert interviews Traceability tools o o o 2-12 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . Tools and techniques are made available to assist in the requirements analysis process. These tools and techniques may include— o Requirements hierarchies that show the full range of requirements for a given project and their relationship to each other Organizational assessments. process reviews. verifiability. such as methodology reviews.Project Scope Management Level 2: Consistent n Management reporting is done at the WBS cost account level or other meaningful level Each item in the WBS has a unique identifier n Commitment 3: The organization follows a documented procedure concerning the purpose of the project charter. Experience means having participated in a similar project with similar requirements or having subject matter expertise in the technical aspects of the project. 2. Typically. this procedure specifies the— n n n n Business need that the project was undertaken to address Product or service description Project goals and objectives Authority and responsibility of the project manager ABILITY TO PERFORM Ability 1: Project managers and team members are provided with adequate resources to conduct requirements analysis and scope development activities.

Project objectives— n n n n n Are a direct result of a thorough requirements definition Are specific statements of what is to be accomplished Contain specific success criteria Are realistic and have time constraints Are output-based. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 2-13 . reports) Testing procedures Financial analysis Activity 3: A requirements checklist is used on every project to aid in developing the requirements. Examples of typical project definition documentation elements include— n Customer information o o o o o o o o Background and summary of the project Project objectives Scope statement Project phases and deliverables Key milestones Customer requirements (technical and nontechnical) Assumptions and constraints Acceptance criteria n Project information o o o o o o o o Risks and opportunities Key resource requirements Constraints Interrelated projects Change management requirements Communication requirements (updates. Examples of typical areas covered in this training include— n n n n n n n Purpose and benefits of the WBS Use of WBS templates Identification of work packages and cost accounts Development of a task. not effort-based Activity 2: The project is defined and documented. reviews.Level 2: Consistent Project Scope Management o o Specification modeling tools Prototyping tools Ability 2: Project managers and team members receive training in the development and use of the WBS.or a product-oriented WBS WBS numbering systems Use of project management software for WBS development Top-down and bottom-up approaches to building a WBS ACTIVITIES PERFORMED Activity 1: Project objectives are developed and documented.

1. Requirements are refined for completeness and accuracy after these meetings. sign-offs will depend on the particular project. Requirements are generated from and consistent with customer needs. as appropriate. not all stakeholders will necessarily be required to sign off on the requirements for every project. One-on-one and general meetings or consultations are held with stakeholders. Project stakeholders sign off on the requirements documentation. and refined according to a documented procedure. 1. 2. 4.Project Scope Management Level 2: Consistent Examples of factors considered in developing requirements include— n n n n n n n n n n n n n Project authority Market Budget Capability Capacity Functionality Appearance Regulation Support Training Documentation Storage and retrieval Maintenance Activity 4: Requirements are developed. Activity 5: The WBS is prepared and decomposed to a level where specific responsibility can be assigned to an individual or specific organizational unit. Lower-level items in the WBS are both necessary and sufficient for completion of the decomposed item. 3. 2. to review and validate requirements. Stakeholders include— o o o o o o o Project manager Project team members Project sponsor Executive management Functional managers Customers Suppliers and subcontractors At this level. Each item in the WBS— o o o o Is clearly and completely defined Can be assigned to a specific individual or organizational unit Can be appropriately scheduled Can be budgeted 2-14 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . validated.

© ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 2-15 .Level 2: Consistent Project Scope Management Activity 6: New elements are added to the WBS through a defined and managed procedure. technical) baseline. Activity 7: A project manager is assigned responsibility for each project. Changes to the WBS are controlled. 1. 2. The WBS represents the project’s scope (that is.

Examples of information collected include— n Number of meetings held with project stakeholders to identify project requirements 2-16 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . The project charter— o o Formally recognizes the existence of a project Provides the project manager with the authority to apply organizational resources to project activities Authorizes the project manager to interface with the appropriate levels of management necessary to achieve project success. and to cross functional organizational lines and work directly with managers in other units to help achieve project goals and objectives Assigns authority and responsibility to the project manager to monitor the time. 3. 5. trade-offs between cost. The project charter is a preliminary delineation of project roles and responsibilities. The project charter serves as a clear statement of project intent because it establishes boundaries as to what the project is to accomplish. Signatures on the charter signify approval by the sponsor and commitment by all stakeholders to execute their project responsibilities. schedule. and changes to the project n n n Activity 8: A project charter is prepared for each project. and performance activities of other organizational units that pertain to the specific tasks under way on the project o o 2. cost.Project Scope Management Level 2: Consistent Examples of typical project manager responsibilities include— n Integration—coordinating the efforts of all project team members in planning toward the achievement of project goals Communication—establishing and maintaining communication links with project stakeholders throughout the project Leadership—guiding the project team Decision making—involving project resources. and technical performance. 4. 1. Items typically part of a project charter include— o o o o o Statement of project objectives Assignment and responsibilities of the project manager Authority of the project manager Statement of project scope Sponsor signature and date EVALUATION Evaluation 1: Information on the project requirements definition process is collected and used to assess its effectiveness in defining customer requirements.

identify training needs. The purpose of these reviews is to confirm that— n The project manager and the customer work together to verify and validate requirements If multiple customers are involved.Level 2: Consistent Project Scope Management n n n n n Customer participation in requirements definition Number of stakeholders who sign off on the project requirements Number of change requests during implementation Customer satisfaction with project deliverables Amount of rework required to satisfy customer expectations Evaluation 2: Information is collected and used to assess the effectiveness of the work breakdown structure. conflicting requirements are reconciled Customers and other stakeholders sign off on requirements Noncompliance issues are resolved n n n Verification 2: The WBS and the extent of its use on the project are reviewed periodically with the project manager and other stakeholders. Examples of information collected include— n n Stakeholder participation in charter development Extent to which charter was used to manage and resolve authority and responsibility conflicts VERIFICATION Verification 1: Methods to define project requirements are reviewed periodically. identify risks. and identify resources requirements Extent to which the WBS accurately describes the scope of work Ability to assign responsibility to and track work packages n n Evaluation 3: Information is collected and used to assess the effectiveness of the project charter. The purpose of these reviews is to confirm that— n n n WBS is prepared and used on every project WBS development activities conform with the organization’s processes Noncompliance issues are resolved © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 2-17 . Examples of information collected include— n Extent to which the WBS was used to develop budgets.

2-18 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model .Project Scope Management Level 2: Consistent Verification 3: The project charter and the extent of its use are reviewed periodically with the project manager and other stakeholders.

Level 2: Consistent Project Scope Management The purpose of these reviews is to confirm that— n n n A charter is prepared on every project The project charter is effective and useful Lessons learned concerning the charter are documented to help develop a template for future projects Noncompliance issues are resolved n © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 2-19 .

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and baselined. This procedure typically specifies— n n n n COMMITMENT TO PERFORM Purpose of duration estimating Steps for defining activity relationships Coordination and comparison with cost and resource estimates Stakeholders that should review and agree to duration estimates and the project schedule A process to change the schedule n Commitment 2: The organization has adopted standard project management software for developing schedules. issued. Project managers and team members receive training in the use of this software. Changes to the schedule are implemented according to a change control process. This software typically includes the capability to— n n n n n n n n n n Prepare a WBS Prepare a network schedule Prepare a Gantt chart Display information concerning resources and costs Assign resources and costs to tasks Calculate the critical path View the critical path Determine slack or float Prepare status reports Prepare resource histograms © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 2-21 . A project schedule is prepared. Schedule control involves monitoring performance regularly to detect variances from the plan. Commitment 1: The organization follows a documented procedure for preparing activity duration estimates and the project schedule. which is used for all but the smallest projects. The organization has adopted standard project management software that is used for schedule development and tracking. OBJECTIVE Objective 1: A schedule is established and maintained for every project.Project Time Management—Level 2 The Level 2 organization is committed to project time management. Procedures are in place to notify stakeholders of any schedule changes.

2. Identified dependencies and limitations on subsequent scheduling options are reviewed for consistency. Project activities are identified using the WBS. Every activity is defined so that its specific outputs are measurable to ensure its completion. 1. Items that may be covered in the training include— n n n n n n n n n n n n n n n n Importance of schedule control Correlation between the WBS and network scheduling Validation of time frames Development of a project network diagram Arrow diagramming method Precedence diagramming method Calculating the critical path Types of float Precedence relationships Lead and lag times Schedule constraints Setting milestones Preparing a milestone chart Preparing a Gantt chart Setting a baseline Schedule tracking ACTIVITIES PERFORMED Activity 1: Specific activities are identified to meet project objectives. are those defined by the project management team External dependencies are those that involve a relationship between project activities and nonproject activities o o Activity 3: Project activity duration estimates are prepared. or hard logic. Activity 2: Dependencies between activities are identified and used as a basis for scheduling the project. such estimates are validated with the customer. preferential logic. and the project team to assess— o When each activity can start 2-22 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . 1. Types of dependencies include— o Mandatory dependencies. The number of work periods needed to complete each activity is estimated. are those that are inherent in the nature of the project work being done Discretionary dependencies. Typically. developing activity duration estimates.Project Time Management Level 2: Consistent ABILITY TO PERFORM Ability 1: Project managers and team members receive training in using the project management software. 1. 2. or preferred logic. and preparing schedules. performing organization. or soft logic.

3. The schedule is used to regularly assess activity progress. or other stakeholders Resource availability Precedence relationships among activities Concurrent and sequential activity performance relationships Activity 4: The project schedule is issued and executed.Level 2: Consistent Project Time Management o o o When each activity should be completed The business need affecting the deadline Constraints and assumptions affecting the activity 2. The schedule is a major project baseline element for project control. the customer. 3. from which a best estimate is selected. Activity 5: Changes in the project schedule that affect commitments by stakeholders are resolved. 1. 2. 1. Activity duration estimates may show a range of possible results. Assumptions and constraints made in developing activity duration estimates are documented. The purpose of these reviews is to confirm that— n n Schedules are developed for every project Assumptions and constraints in schedule development are documented © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 2-23 . 4. Schedule changes are documented and managed. Activity duration estimates may require consideration of elapsed time or level of effort. 2. Examples of constraints that may affect schedule development include— o o o o Imposed dates by the project sponsor. Examples of information collected include— n n n n Number of people using the project schedule for tracking and controlling Key events or milestones completed or missed Deviations from the schedule Number and types of revisions to the schedule VERIFICATION Verification 1: Periodic reviews with executive management are conducted to ensure that project teams follow established project time management procedures. EVALUATION Duration estimates are revised and refined as additional information becomes available. Evaluation 1: Information is collected and used to evaluate the use of the project schedule in managing projects. Appropriate stakeholders are notified when the schedule is revised.

Project Time Management Level 2: Consistent n Schedules are reviewed with the customer(s) and other key stakeholders before setting the baseline Schedules are used in tracking and controlling activities Schedules are regularly reviewed and updated as appropriate Noncompliance issues are resolved n n n 2-24 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model .

Project Cost Management—Level 2 The Level 2 organization is committed to preparing and using cost estimates. is exercised. A project budget is developed based on allocating elements of the project cost estimate to individual work items. that is. monitoring performance to detect variances from the plan. and corrective actions are taken as required. Cost control. n ABILITY TO PERFORM Ability 1: Project managers and team members receive training in project cost estimating. Commitment 1: The organization follows a documented procedure that addresses project cost estimating and project budget preparation. Typical training items include— n n Specifying estimating objectives Using different estimating methods Examples of estimating methods include— o o o o o o Analogous estimating Vendor bids Parametric modeling Budget method Top-down estimating Bottom-up estimating n n Identifying and considering various estimating alternatives Developing a cost estimate using the WBS © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 2-25 . This procedure typically specifies the— n n n n n n COMMITMENT TO PERFORM Purpose of cost estimating Difference between cost estimating and pricing Difference between cost estimating and budgeting Steps for conducting cost estimating Coordination and comparison with duration estimates Groups and individuals (stakeholders) that should review and agree on cost estimates Groups and individuals (stakeholders) that should review and agree on budget changes. OBJECTIVE Objective 1: Cost estimates are developed and used to establish the project budget. Project costs are tracked. The WBS serves as the basis for the cost estimate. The project team prepares cost estimates using either a top-down or bottom-up approach.

Project Cost Management Level 2: Consistent n n Identifying contingency and reserve funds in the estimating process Recognizing common estimating pitfalls 2-26 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model .

Costs are estimated for all resources to be charged to the project. Cost estimates are assigned to appropriate accounting categories with appropriate codes in the organization’s chart of accounts.Level 2: Consistent Project Cost Management Examples of estimating pitfalls include— o o o o o Excessive optimism Political pressures Poor estimating models Unskilled estimators Using project cost estimating tools and techniques to develop budgets for work items ACTIVITIES PERFORMED Activity 1: Project cost estimates. 2. All project costs are clearly identified and documented. 2. 1. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 2-27 . Supporting detail for the cost estimates is provided. are prepared using a documented procedure. risks are evaluated and response strategies are prepared o o o Activity 2: The project budget is issued and executed. Examples of supporting detail include— o A description of the scope of work estimated with a reference to the WBS as the basis for the estimate Documentation of assumptions and constraints An indication of the range of possible results When estimates involve significant uncertainty. Typical items considered in resource planning include— o o o o o o Utilization and productivity factors Needed skills and expertise Availability Resources needed on similar projects Work packages in the WBS that need specific resources Organizational policies on rental or purchase of supplies and equipment 4. Estimating objectives are documented. Examples of project costs include— o o o o Direct costs Indirect costs Fixed costs Variable costs 3. Cost estimates are allocated to the work packages to establish the cost baseline. including assumptions and constraints. 1.

Examples of information collected include— n n Accuracy of estimates compared with actual costs at the work package level Accuracy of estimates at the project level VERIFICATION Verification 1: Project cost estimating activities are reviewed regularly with the project manager and other responsible individuals. 3. 4. Appropriate stakeholders are notified when cost estimates are revised. Budget changes are documented and managed. Evaluation 1: Information is collected and used to evaluate the cost estimating process. 2. The budget is based on the cost estimates and includes all authorized costs.Project Cost Management Level 2: Consistent 3. The budget is used to regularly assess a project’s financial progress. 1. The purpose of these reviews is to confirm that— n n Organizational policies on staffing and materials are followed The organization’s procedures for cost estimating and cost budgeting are followed Estimates are prepared by or in conjunction with the performing organization Actual cost is tracked and compared to the estimate Cost estimates serve as the basis for the project budget Noncompliance issues are resolved n n n n 2-28 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . EVALUATION Cost estimates are revised and refined as additional information becomes available. Activity 3: Changes in the project budget that affect commitments by stakeholders are resolved.

The project manager may focus on incorporating and performing quality management activities or delegate them to a core team member. A representative from the organization’s quality assurance/control department may be aligned with one or more project management efforts. Quality control consists of inspection activities but is evolving in the Level 2 organization toward a prevention approach to keep errors out of the process. Commitment 2: The organization follows a documented procedure for quality control inspections and audits. Quality is considered to be inspected into the product or service rather than being designed in during the planning phase. Quality audits are conducted on an exception basis or as required under contract. 3.Project Quality Management—Level 2 The emphasis in quality management in the Level 2 organization is on the product or service of the project and not the process by which the project is executed. The project sponsor promotes quality management actions. Activities typically included as part of quality control inspections are— o o o Measuring Examining Testing n Inspections may be conducted at any time during the project and at varying levels of detail. OBJECTIVES Objective 1: Quality standards are defined for project deliverables. COMMITMENT TO PERFORM Commitment 1: An organizational position is assigned responsibility for ensuring that quality assurance and control activities are performed. Objective 2: Inspections and audits are used to identify nonconformance. Audits are performed to assess overall project execution. 2. 1. This procedure typically specifies— n Inspections are undertaken to see whether results conform to requirements. n ABILITY TO PERFORM Ability 1: Project managers and project team members receive an orientation on project quality assurance and control. Items in this orientation typically include— n n Performance of quality assurance and quality control throughout the project Overview of quality assurance tools and techniques © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 2-29 .

product.Project Quality Management Level 2: Consistent Examples include— o o o o n Benefit-cost analysis Benchmarking Flowcharting Design of experiments Overview of quality control tools and techniques Examples include— o o o o o o Inspection Control charts Pareto diagrams Statistical sampling Trend analysis Audits Ability 2: Project team members receive training in methods of conducting quality inspections and audits. 1. Establish inspection standards and test procedures to determine whether a product conforms to specifications Examples of inspection standards and tests include— o o o o o o o o o o o o o o External visual inspection Stressing of materials Disassembly and visual inspection Destruction of the item Artificial environmental stressing Temperature cycling Software code reviews Regression tests User acceptance tests Integration tests Unit tests Interface testing Parallel testing Defect tracking 2-30 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . discipline. Activity 2: Quality inspections are planned and conducted routinely. ACTIVITIES PERFORMED Activity 1: Project quality management requirements are identified according to a documented procedure. Training may be specific to a deliverable. 2. Documentation requirements for project quality management are specified. or industry. The quality management procedure contains steps to— 1. The procedure enables customer requirements to be assessed for quality requirements.

Perform corrective action as a result of quality inspections or audits o o Corrective action may involve rework or process adjustments. Causes of quality problems are analyzed to determine specific corrective action required. those based on unusual events. Identify causes of nonconformance o Causes are classified into common causes. Examples of variables to consider include— o o Sample size Number of defects in the sample that would cause the lot to be rejected 2. 1. The quality audits or reviews support identifying areas of improvement. 2.Level 2: Consistent Project Quality Management If acceptance sampling is used. EVALUATION Evaluation 1: Information is collected and used to assess the overall quality of the product or service. those considered to be normal process variation. o 3. and special causes. Planned and unplanned quality audits or reviews are conducted. Examples of information collected include— n n Amount of rework required Number of inspections conducted before product or service quality is deemed satisfactory Number of quality audits conducted Testing compliance Meeting customer requirements in terms of— o o o o o o o o n n n Usability Reliability Maintainability Availability Operability Flexibility Social acceptability Affordability © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 2-31 . standards are set for the acceptability of the sampled lot. The objective of the audit or review is to identify lessons learned that may improve performance of the project or other projects in the performing organization. Results of quality inspections are documented and maintained for future trend analyses. 3. Activity 3: Quality audits and reviews are planned and conducted routinely.

Project Quality Management Level 2: Consistent VERIFICATION Verification 1: Inspection activities are reviewed regularly with the project manager and other responsible individuals. The purpose of these reviews is to confirm that— n Inspections and audits are conducted according to plans and using established procedures Inspections are conducted according to specific contractual requirements Noncompliance issues are resolved n n 2-32 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model .

ensuring cost. and assignments are established using a resource responsibility matrix or similar tool. responsibilities. It is using a project matrix organization. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 2-33 . where project managers and functional managers are working out respective roles and responsibilities. Objective 2: Project team formation. 2. The purpose of early involvement is to ensure— o o Continuity of all management activities throughout the project life cycle Participation in the project selection process or handoff from sales or marketing Participation in refining project objectives and establishing the specific commitments that he or she will be responsible for meeting on the project o Commitment 2: Training needs for project managers and team members are identified. schedule. and quality goals. 1. normally before planning begins.Project Human Resource Management—Level 2 The Level 2 organization is being structured for effective assignment of project team members. OBJECTIVES Objective 1: Project team members’ roles. and quality objectives are met Customer relationships o The role and responsibilities of the project manager vary significantly by application area. 1. The role of the project manager is critical to the success of the project. Executive management recognizes the need to identify the training required for project team members and related stakeholders. schedule. and performance are managed. The processes and procedures contained in the methodology support project team formation. responsibilities include— o o Technical management activities Project management activities. Training requirements for critical project skills are identified. development. and the assessment and development of individual and team effectiveness. A resource responsibility matrix is prepared for each project as the essential element of a project staffing plan. COMMITMENT TO PERFORM Commitment 1: A project manager is assigned to every project with responsibility for achieving project cost. The project manager is assigned early in the project. assignment of project activities.

This procedure typically specifies— n n n Establishing the project team structure Identifying staffing requirements Steps for requesting and assigning staff resources Commitment 4: Project team members coordinate their project work plans and activities and agree to commitments. 4. 1. 5.Project Human Resource Management Level 2: Consistent 2. 2. Examples of individuals or groups who might assist and advise on training activities include— o o o Human resources staff Training staff Project managers or team members who have participated in previous training Instructional systems designers o Commitment 3: The organization follows a documented procedure for project team formation. 1. Roles and responsibilities may vary during the project. Training time is allocated for each individual. The project manager’s and team members’ backgrounds and experience are consistent with required project technical skills. All project team members are involved in planning their work and making commitments external to the project team. Training opportunities are provided to support individual development activities. An individual or a specific group is assigned responsibility for assisting and advising project teams on training opportunities. Project managers and project team members have demonstrated the capability to perform on the project to which they are assigned. 3. Ability 2: Project team members know their specific roles and responsibilities within the project. Incentives and procedures are in place for functional managers to assign staff members to project teams and support projects. Training to support the performance of assigned responsibilities is provided in a timely manner. Staff members are assigned to the project in a timely manner so that they are able to complete assigned tasks as planned. 2-34 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . ABILITY TO PERFORM Ability 1: Project managers and team members have the requisite technical capability to perform the project work. 1. 2. 3.

Support for implementing training activities is made available. 4.Level 2: Consistent Project Human Resource Management 2. 1. experienced individuals who have expertise in project management and in training methods and procedures are made available to conduct training or training-related activities. Ability 3: Adequate resources for project management training are provided. Project responsibilities concern who decides what on the project. 2. and competencies needed by the individual or team. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 2-35 . 1. Project resource requirements are linked to the project scope definition. Ability 4: Project managers and team members receive needed project management training to participate effectively on projects. 1. Individuals provide feedback on the quality and usefulness of the training they receive. skills. Where feasible. Ability 5: Project managers receive the training necessary to manage the project team effectively. Project roles concern who does what on the project. 3. skills. Project roles and responsibilities are identified at the work package level of the WBS. Training content is evaluated to ensure that it covers all the knowledge. 2. and competencies. 3. Examples of project manager training topics include— n n n n n n n n n n Project team leadership Team building Project organization structures Coaching and facilitating teams Coordinating team goals with organizational goals Supervising different types of teams Conflict resolution Negotiation Consensus building Tracking and providing feedback on team performance ACTIVITIES PERFORMED Activity 1: Project staffing requirements are identified. Training alternatives are evaluated to identify those that provide the most effective mechanism for developing the required knowledge. 3. Tools and instruments to support training activities are made available. Activity 2: The project team is formed to accomplish the project objectives. Funding is made available for project management training. 2.

and assigning project roles. and reporting relationships. documenting.Project Human Resource Management Level 2: Consistent 1. responsibilities. 2-36 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . Project interfaces are identified as an input to identifying.

Staff assignments consider availability of personnel in the functional organizational unit. o Staff assignments consider skills and expertise of personnel in the functional organizational unit. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 2-37 . The purpose of the OBS typically is to show which work organizational units are responsible for which work packages. In assigning project team members. large-scale projects in which several organizations are involved—particularly suppliers and subcontractors. This is particularly helpful in complex. o o o 3. The project manager works directly with functional managers in the staff selection process and in negotiating resource assignments. skills. Staff assignments are identified. and competencies fit team needs and complement those of other team members. and negotiated by the project manager with the appropriate functional manager. Project team members are selected and assigned to the project based on the degree to which their knowledge. requested. desired team member roles include— o o o Subject matter experts Coordinators or facilitators Technical experts In selecting team members.or part-time basis. The purpose of the chart is to— o o Show the project reporting relationships Show the organizational units involved in the project 5. An organizational breakdown structure (OBS) is prepared for complex projects.Level 2: Consistent Project Human Resource Management Examples of interfaces are— o Organizational—formal and informal reporting relationships among different organizational units Technical—formal and informal reporting relationships among different technical individuals working on the project Interpersonal—formal and informal reporting relationships among different individuals working on the project o o 2. tasks typically performed include— o o o o o Assess the technical requirements of the project Determine who needs to be involved on the project Assess the competence of prospective project team members Determine who is available Assess the productivity of the potential team member 4. Staff assignments consider the effect on ongoing operations in the functional organizational unit if personnel are reassigned to projects either on a full. A project organization chart is prepared.

and competencies required for the project to determine whether training is needed. skills. skills. 1. The project team participates in determining its performance criteria. Performance criteria typically are based on factors such as— o o Project plan Project charter 2-38 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . an individual’s knowledge. and what type of. Activity 6: Project teams plan their work and establish commitments. 1. 3. Examples of items to consider in establishing ground rules for the team include— n n n How administrative activities will be performed How to handle conflict among team members When and how to escalate problems and issues to the next level of management Activity 5: Training needs for project staff are identified at the time the project team forms. skills. assignment of specific individuals or organizations for each work package in the WBS Activity 4: The project team establishes ground rules for its operation at the time the project team is formed. and competency assessment tests 2. The resource response responsibility matrix typically shows— n n Initially. Project team members agree to commitments. training is needed. Examples of methods for evaluating training needs include— o o o o o Individual’s personal assessment Individual’s previous experience Performance reviews Training records Knowledge. assignment of roles for each work package in the WBS Subsequently.Project Human Resource Management Level 2: Consistent Activity 3: A resource responsibility matrix is prepared. The knowledge. 4. skills. Team members are involved in estimating how much time is required to accomplish their portions of the project. and competencies are reviewed against those that are required for the project to determine whether. 2. Before being assigned to a project team. Project team members are involved in reviewing progress against commitments and in negotiating changes to commitments when necessary. and competencies of individuals on each project are compared to the knowledge.

Examples of stakeholders include— o o o o o o o Project manager Project team members Project sponsor Executive management Functional managers Customers Suppliers and subcontractors 2. The project team establishes working relationships with other entities to execute its responsibilities. Examples of other entities include— o Units within the organization with which the project team shares work or dependencies on the project Executive management Customers Suppliers and subcontractors o o o Activity 7: Project stakeholders are identified. e-mail). Typically. telephone number. cost. A stakeholder directory is created to identify all project team members and other stakeholders and to provide contact information (name. and quality performance criteria o 5. and their roles and participation are assessed.Level 2: Consistent Project Human Resource Management o Mutually defined roles and expected contributions of each project team member Schedule. the purpose of this analysis is to determine— o o o o o o Commonalties and common objectives among stakeholders Which team member will handle key interfaces with which stakeholders Any potential barriers that may exist Specific types of help needed from the stakeholder Type of assistance or input the stakeholder needs from the project team Specific steps that can be taken to develop a positive relationship with each stakeholder © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 2-39 . address. A project stakeholder analysis is conducted. fax. 1.

The purpose of these reviews is to confirm that— n Progress is being made toward accomplishing human resource development goals Progress is being made by all team members in fulfilling their commitments Roles and responsibilities are established Training is provided as required A resource responsibility matrix is developed The project team is formed based on project requirements Noncompliance issues are resolved n n n n n n 2-40 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . unfilled Contributions of each project team member in terms of the project goals and objectives Evaluation 2: Information is collected and used to evaluate whether training meets the needs of the project managers and team members. Examples of information collected include— n n Productivity factor improvement (learning curve) Application of specific skills learned in the organization’s project management training Project team’s ability to complete assigned tasks Number of rejections or amount of rework n n VERIFICATION Verification 1: Project reviews are conducted regularly to confirm whether human resource management procedures are followed. Examples of information collected include— n n n n Skills match Resource utilization (over-allocation or under-allocation) Number of positions filled vs.Project Human Resource Management Level 2: Consistent EVALUATION Evaluation 1: Information is collected and used to evaluate the effectiveness of the project human resource management process.

This procedure typically specifies— n n n n n Purpose of the reports and reviews When to conduct project reviews Who should participate in project reviews Ways to obtain ad hoc project information between scheduled report distribution How to use a project review to assess outputs of project activities based on defined acceptance criteria Commitment 3: The organization provides the tools needed to facilitate and promote information sharing and dissemination. sharing information about project status. and specifying project communications requirements. This procedure typically specifies— n n n n Project resources needed for communication Information needs of project stakeholders Suitable means to meet the information needs of project stakeholders Importance of maintaining an environment that supports communication flow in all directions Requirements for periodic communication of project information to all stakeholders n Commitment 2: The organization follows a documented procedure for project reports and reviews. COMMITMENT TO PERFORM Commitment 1: The organization follows a documented procedure to determine project communication requirements. This commitment is evidenced by training to foster open and improved communications.Project Communications Management—Level 2 The Level 2 organization is committed to project communications management. The organization’s project management methodology contains processes and procedures. tracking and evaluating project results and the performance of each project. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 2-41 . as well as tools and techniques. OBJECTIVES Objective 1: Project communication requirements are determined during project planning. Project information is recorded and distributed for individual projects. Objective 2: A system of regular project reports and reviews is implemented. that facilitate collecting and analyzing project data and compiling and preparing summary-level management reports.

3. and archiving various types of project information. Individuals with expertise in planning communication requirements are made available. frequency. and specialties involved in the project 2-42 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . and format of the information required. This includes consideration of— n n Project organization and stakeholder responsibility relationships Disciplines. dissemination. This procedure typically includes— n Collecting and disseminating updates and corrections to information previously disseminated Identifying responsibilities for gathering and storing information Providing backup and security of the information Archiving information Classifying information n n n n ABILITY TO PERFORM Ability 1: Adequate resources are provided for identifying communication requirements and planning communication solutions. Adequate funding for communication requirements planning is made available. categorizing. Ability 2: Project managers and team members are trained in project information collection. organizational units. and retention processes. 2. Information collected serves to support— o o o o Status reporting Progress reporting (relates to project) Performance reporting (relates to people) Forecasting 2. 1. disseminating. ACTIVITIES PERFORMED Information is made available to project stakeholders in a timely manner. 1. Information is prepared and distributed with adherence to time schedules. Activity 1: Stakeholder information requirements are identified and documented according to the type.Project Communications Management Level 2: Consistent Examples of possible tools include— n n n n Electronic mail Voice mail Video and teleconferencing Internet and intranet Commitment 4: The organization follows a documented procedure for collecting.

progress reporting. 1. Project team members routinely provide information as stated in the project plan. The purpose of these reviews is typically to— © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 2-43 . 3. The project team responds to information needs between regularly scheduled reports. 1. 2. A typical project status report may include— o o o o o o o o Report period start and end dates Workdays in the reporting period Milestones completed during the reporting period • Major milestones • Planned completion • Actual/forecast completion • Major deliverables Milestones scheduled for the next reporting period • Major milestones • Planned completion • Actual/forecast completion • Major deliverables Resource use • Name • Assignment • Planned use during the next 3 months Major issues and actions • Issue • Action • Person assigned • Due date • Resolution Activity/task progress • Percent complete • Planned • Actual Report authentication • Name • Signature • Date Activity 3: Status review meetings are held regularly and on an event-driven basis to exchange and share project information. Information provided supports status reporting. Project status information is made available to stakeholders as appropriate according to specific requirements of each project. and forecasting. 4.Level 2: Consistent Project Communications Management n n Number of individuals involved in the project and their locations External communication needs Activity 2: Project team members regularly report the status of their project work in the format specified for project status reports.

Examples of topics addressed in the meeting guidelines include— o o o o o o Purpose of meetings Agenda for meetings Time management Responsibilities and roles of participants Attendance requirements Procedures for tracking and reporting on action items or issues 3. The review is finalized with a summary of accomplishments. 7. cost expenditures/analysis of variances Project schedule vs. any issues raised. Examples of project records include— o Project binder 2-44 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . Guidelines are developed to maximize efficiency during each review meeting. Review meetings are held periodically. and procedures are planned. 8. Activity 4: Project records are maintained in an organized fashion. and assignments of action items. to assess project plan execution. a status review’s purpose. and an agenda is distributed in advance. and when needed. objectives. To the extent possible.Project Communications Management Level 2: Consistent o o o o Assess project status or performance Compare actual project results to planned or expected results Discuss and try to resolve outstanding issues Discuss risks identified during project performance and ways to mitigate them Present predictions of future project status and performance o 2. items that fall outside the agenda are the subject of a later meeting or discussion. Reviews are conducted to encourage the participation of all who are able to make a contribution. 5. 6. Minutes are prepared and distributed after each review. Actions to be performed following each review are assigned and tracked to completion. Reviews serve to maintain focus on accomplishing the project goals and objectives. progress/analysis of variances Upcoming milestones Status of outstanding issues and action items Next meeting date 4. A typical agenda for a status review meeting includes— o o o o o o Project goals and objectives Project budget vs. 9.

Examples of information collected include— n n n n n n n n n Timeliness in receiving and distributing project information Relevancy of information Accuracy of information Completeness of information Effectiveness of media used Frequency of status update and project reviews Number of unexpected requests for specific information Changes needed in information provided in standard project status reports Changes needed in project status review meeting agendas VERIFICATION Verification 1: Reviews are conducted periodically to determine compliance with established communication procedures. including all agreements that affect project performance EVALUATION Evaluation 1: Information is collected and used to assess the effectiveness of the project’s communication procedures. The purpose of these reviews is to confirm that— n n n n n n Applicability of project communication requirements continues Project records are collected.Level 2: Consistent Project Communications Management o o o o o Correspondence Memos Reports Documents describing the project Contracts. maintained. and archived Reports adhere to established formats Review meetings and status update schedules are adhered to Project status reports and other reports are effective Noncompliance issues are resolved © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 2-45 .

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Risks generally are analyzed individually without consideration of multiple effects. and to determine which risk events warrant response. 2. and risk responses are planned. at a minimum. Risks are identified and analyzed. the project WBS. analyzed. However. OBJECTIVES Objective 1: Project risks are identified. to assess the range of possible project outcomes. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 2-47 . 3. 1. The purpose of the risk identification procedure is to produce a description of project risks. Experienced individuals with expertise in project risk management are made available. the emphasis is primarily on risks involving cost and schedule impact. Project risk management training is made available to project managers and team members. 2. Resource time is made available for conducting project risk management. Objective 2: Risk responses are prepared for the highest-level risks in every project. not quality. Risk quantification or qualification is performed to evaluate risks and risk interactions. This procedure typically includes— n Determining the risks that are likely to affect the project and documenting their characteristics Evaluating risks to assess the range of possible outcomes Determining steps to respond to opportunities and threats Responding to changes in risk over the life of the project Recognizing the effects and implications of risk n n n n ABILITY TO PERFORM Ability 1: Adequate resources are provided for risk management activities. Risks are categorized to help understand the different perspectives on the types of risks. COMMITMENT TO PERFORM Commitment 1: The organization follows a documented procedure for identifying and analyzing project risks. and prioritized.Project Risk Management—Level 2 The Level 2 organization recognizes the importance of project risk management. 1. The risk management process is continual throughout each project. ACTIVITIES PERFORMED Activity 1: Project risks are identified using.

3. Risks are assessed to determine which risk events warrant response and to determine risk impact and risk probability.Project Risk Management Level 2: Consistent Examples of possible categories include— o o o o o o Business vs. Examples of sources of risk include— o o o o o o o o o o Project requirements Product or service description WBS Project roles and responsibilities Cost and time estimates Staffing requirements Statutory and regulatory requirements Technologies to be used in the project Procurement activities Historical information and lessons learned from previous projects 4. The WBS provides a structure for addressing many technical and business risks. 1. 2. Each WBS work package is reviewed individually to identify any potential risk events. Checklists. including best. and most-probable scenarios. The major project risks and proposed response strategies are reviewed and revised regularly. they are prioritized. Risk quantification or qualification can include a range of possible project outcomes. unknown External vs. The number of risks considered to be major typically depends on such factors as the— o o Impact of the identified risks Number of risk events 2-48 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . worst. After risks are assessed. describing a variety of sources of risk. 6. Activity 3: Risk response strategies are developed for major project risks to reduce or eliminate any adverse effects on the project. 1. 5. internal Technical Legal Schedule 3. are used in the identification process. The WBS provides a framework for identifying and categorizing project risk events. Activity 2: Risks are quantified or qualified to assess the range of possible project outcomes. pure Known vs.

Specific risk response actions include— o o o 4. 3. The major risks are reevaluated regularly. Examples of information collected include— n n n n n Number of risks identified and assessed Number of risk responses developed Effectiveness of risk responses in mitigating risks Number of risks avoided or mitigated Actual risk impact as compared to expected risk impact VERIFICATION Verification 1: Project risk management activities are reviewed regularly with the project manager to determine compliance with established risk management procedures. ability to use the strategy.Level 2: Consistent Project Risk Management o o Type of risks Number of risks with an overall rating of “high” 2. Avoidance Mitigation Acceptance 5. Response strategies are developed in the context of the project objectives. risk combinations. The purpose of these reviews is to confirm that— n n n n n Project risk identification and analysis occurs throughout the project Risks are prioritized and response strategies are developed for major risks Project risks are documented Risk response strategies are developed for major risks Noncompliance issues are resolved © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 2-49 . and project assumptions and constraints. EVALUATION Evaluation 1: Information is collected and used to assess the effectiveness of the risk management process. risk responses are incorporated into the project plan through additional WBS work packages or schedule manipulation. Where possible.

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Projects use documented standards and processes to select suppliers and subcontractors and to manage their contracts. Project managers and team members understand the implications of various contract types and terms and conditions so that risks can be shared among the parties. cooperative working environment. Procurement management plans are established by the project team. Objective 2: Supplier and subcontractor performance is managed. This procedure typically specifies that— n n n Planning for solicitations is documented Planning for proposal evaluation activities is documented Solicitations are conducted in a manner compliant with applicable laws. Project teams work with suppliers and subcontractors to establish a stable. Contract administration is the responsibility of the project team under the overall guidance of the project manager. regulations. and their results and performance are tracked against commitments. Procurement audits are conducted on an exception basis. and guidance Solicitation activities are tailored based on the cost or complexity of the item or service being acquired A selection official is designated to be responsible for the supplier or subcontractor selection process and the selection decision o n n Typically. Requirements for formal acceptance and closure are specified in each contract. o © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 2-51 . The project team is aware of legal implications of actions taken in contract administration. The selection official for a solicitation has the ultimate responsibility for conducting the solicitation and for selecting the winning supplier. the selection official is chosen based on his or her authority to commit the organization to a specified monetary amount that is equal to or greater than the estimated value of the solicitation. COMMITMENT TO PERFORM Commitment 1: The organization follows a documented procedure for selecting and managing suppliers and subcontractors. Commitments are agreed upon. Project teams track the performance of suppliers and subcontractors to ensure that they adhere to project plans and meet contractual requirements.Project Procurement Management—Level 2 The Level 2 organization is implementing processes for effective project procurement management. OBJECTIVES Objective 1: Customer contracts and agreements are managed. policies. Ongoing communication is maintained with suppliers and subcontractors because they are considered members of the project team. and any changes are implemented according to a documented contract change control procedure.

Ability 2: Individuals performing the solicitation and selection activities have experience or receive needed training. 2. 1. 3. 1. Individuals with expertise in contract administration are made available. Items in this training typically include— n n n n n Understanding procurement documents Preparing evaluation criteria Conducting a bidders’ conference Reviewing proposals Conducting contract negotiations Ability 3: Adequate resources are provided for contract administration activities. Adequate funding is made available for solicitation activities. Support is made available for improvements in contract administration activities. 2. and technical performance Quality control of the product or service Control of contract changes Internal and external communication and control Approval of invoices Maintenance of records and documentation Resolution of claims and disputes Commitment 3: The organization follows a documented procedure for managing customer contract relationships. Items in this procedure typically include— n n n n n n n n n Compliance with contract terms and conditions Authorization of the work at the appropriate time Monitoring of cost. Experienced individuals with solicitation expertise are made available. 2-52 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . Ability 4: Project managers and project team members receive training in contract formation and administration. schedule.Project Procurement Management Level 2: Consistent n A specific project team member is designated to be responsible for technical oversight of each supplier’s or subcontractor’s contract Commitment 2: The organization follows a documented procedure for contract administration. Items in this procedure typically include— n n Recognition of customer needs and review of customer requirements Inclusion of the customer in project planning activities ABILITY TO PERFORM Ability 1: Adequate resources are provided for the solicitation activities. Adequate funding is made available for contract administration activities.

o When requirements are so specific that they leave little doubt as to what is to be delivered. a fixed-price (lump sum) contract type may be used.Level 2: Consistent Project Procurement Management Items in this training typically include— n n n Establishing customer contracts or agreements Conducting customer contract negotiation Understanding the standard terms and conditions and their proper interpretation. 1. The plan typically covers— n n n Objectives of the solicitation Contents of the solicitation package Solicitation steps and completion dates Activity 3: Customer and supplier/subcontractor contracts are established. cost-reimbursement. Considerations in the make-or-buy analysis typically include— n Direct costs of buying products or services and the cost of administering the contract Perspective of the performing organization concerning whether an ongoing need for the product or service exists Immediacy of the project needs Organizational policies concerning staffing and rental or purchase of supplies and equipment n n n Activity 2: A supplier/subcontractor selection plan is prepared. The contract type (for example. which appear in most all types of contracts to reduce the potential for misunderstanding and disputes Understanding how to document and administer a contract properly Evaluating the effect of terms and conditions on price Integrating contract performance with overall project reporting Reviewing supplier or subcontractor invoices before approving them Reviewing supplier or subcontractor work results Ensuring supplier or subcontractor performance meets contractual requirements Customer contract closeout n n n n n n n ACTIVITIES PERFORMED Activity 1: A make-or-buy analysis is performed before a decision is made to procure products or services. or time-andmaterials) is selected based on the ability of the project team to clearly identify its requirements. fixed-price. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 2-53 .

2. it is more likely that a time-andmaterials contract will be used. 2-54 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model .Project Procurement Management Level 2: Consistent o When the requirements are less descriptive. Evaluation criteria include technical and nontechnical project characteristics.

Potential risks include— o Different interpretations between the project organization and supplier/subcontractor Lack of experience in working with a particular supplier/subcontractor Lack of prequalified suppliers/subcontractors o o Activity 4: A customer contract management plan is prepared and issued. Risks are associated with every supplier and subcontractor. vendor. with the main consideration being reasonableness Components of reasonableness include— • • Realism Competitiveness 3. Items in the plan typically include— n n n Administration activities Negotiation approach Closeout activities Activity 5: Supplier/subcontractor performance is managed. Action is taken to ensure that the suppliers and subcontractors understand the requirements before the contract is awarded. or the features or qualities of the supplier or subcontractor as an organization Examples include— • • • • • • o Reputation Employee qualifications Facilities and equipment capability and capacity Financial strength Labor relations Management systems Technical expertise.Level 2: Consistent Project Procurement Management Typical evaluation factors include— o Management expertise. o Bidders’ conferences (or contractor. 1. or prebid conferences) are held as appropriate to ensure that prospective suppliers or subcontractors have a clear understanding of the requirements. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 2-55 . or the features or qualities of the offered product or service Examples include— • • • Functions and capabilities Nature and quality of design Level and quality of performance o Price.

and setting performance goals Observing. o 2.Project Procurement Management Level 2: Consistent o Responses to questions concerning the solicitation may be incorporated into the procurement documents as amendments. The meeting provides an opportunity to discuss performance measurement and to report on and discuss procedures for managing change and resolving differences. assigning responsibilities. Oral presentations may be held with potential suppliers or subcontractors as part of the source selection process. 4. Reviews to address supplier or subcontractor accomplishments and results are conducted at selected milestones or at the completion of selected phases of the project life cycle. 2. The meeting is used to establish a process for regular communication and to define and communicate roles and responsibilities. or electronic mail exchange. These reviews typically attempt to ensure that— o Communication and mutual understanding of the contractual requirements continue The supplier or subcontractor is implementing activities according to approved plans Open issues with the supplier or subcontractor are resolved. teleconference. 1. Changes to the plan are coordinated with the project team before the supplier or subcontractor implements them. The meeting may be a face-to-face. o o Actual performance is reviewed and tracked against the plan. and corrective actions are taken as required Evolving products and services will satisfy contractual requirements o o o Activity 6: Contract administration activities are performed. o The purpose of this meeting is to ensure that all parties are aware of and understand the contract requirements. Suppliers and subcontractors develop and submit a work plan describing their activities in satisfying the contract requirements. The principal objective is to ensure fulfillment of contractual obligations by all parties. documenting decisions and events. The project manager conducts a kickoff meeting with the supplier’s or contractor’s project manager and project team after the contract is awarded. Major tasks to perform typically include— o Analyzing specific contractual obligations. o o o 3. and reporting performance o 2-56 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . video conference.

proof of claims. Key documentation includes— • • • • • • • • Official copy of the contract Contract modifications External and internal correspondence Meeting minutes Progress reports Project diaries Telephone logs Photographs and videotapes o o o Efforts to maintain documentation are thorough and consistent. o The project organization and the supplier or subcontractor need to agree on who receives invoices and what information is required. o o Activity 7: A standard contract closeout process is followed. management of changes. Contract billing and invoice management are conducted. Contract closeout refers to verifying that all administrative matters are concluded on a contract that is otherwise physically complete. The invoicing and payment system includes appropriate reviews and approvals by the project management team. and evidence in case of litigation. Records are essential for proof of performance. 4. This means that the— o Supplier or subcontractor has delivered the required product or performed the required services Project organization has inspected and accepted the product or services o 2. o The purpose of documentation is to record facts and reduce reliance on human memory. Final payment is authorized when the supplier or subcontractor has accomplished all administrative tasks. 1. Records and documentation of contract administration activities are maintained.Level 2: Consistent Project Procurement Management o o o o o Identifying and analyzing variances Taking corrective action Managing change Resolving disputes Closing the contract 3. Late payment penalty clauses are included in contracts. Examples of administrative tasks include— o Proper disposition of intellectual property © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 2-57 .

Project Procurement Management Level 2: Consistent o o Return or other disposition of property furnished by the project organization Fulfillment of procedural requirements if the contract is terminated 3. and guidance Noncompliance issues are resolved n Verification 2: Contract administration activities are reviewed regularly to ensure compliance with established procedures. The purpose of these reviews is to confirm that— n n Solicitation activities support the organization’s policies and stated values Solicitation activities are conducted in accordance with applicable laws. Examples of information collected include— n n n n Ability to meet customer requirements Progress in meeting schedule. 4. and technical performance goals Number of changes required Number of disputes VERIFICATION Verification 1: Solicitation activities are reviewed periodically to determine compliance with established procedures. policies. which describe the positive and negative aspects of contract performance. are documented. The purpose of these reviews is to confirm that— 2-58 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . Examples of information collected include— n n n n Effort expended in solicitation planning Effort expended in bid evaluation and supplier/subcontractor selection Funds expended in solicitation planning and supplier/subcontractor selection Effectiveness of the process used to select high-performing suppliers and subcontractors Ability to establish favorable terms and conditions Progress toward completion of solicitation planning activities n n Evaluation 2: Information is collected and used to evaluate performance against the contract. Evaluation 1: Information is collected and used to assess the effectiveness of the source selection process. 5. The supplier or subcontractor receives formal written notice that the contract has been completed. regulations. cost. A complete set of indexed records is included with the final project records. EVALUATION Lessons learned.

Level 2: Consistent Project Procurement Management n n n n Contract administration activities are performed according to procedures Contract closeout process is performed using standard procedures Required documentation is maintained Noncompliance issues are resolved © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 2-59 .

Project management software is used to manage multiple projects and the links between projects. these elements should reside centrally for access throughout the organization. Advanced techniques are obtained or developed. competitive advantage through its management of projects. The organization capitalizes on prior success by adapting and enhancing its project management methodology for deployment throughout the organization. there are both basic and advanced techniques to accomplish specified process steps. and establishes manual and automated systems and processes that implement centralized and integrated information systems in support of its project management efforts. contract administration. if not mandate. organization-wide capability—a program management office (PMO) or staff dedicated to this effort. controlling. __________________________ PMBOK™ is a trademark of the Project Management Institute. ORGANIZATION-WIDE PROCESS APPLICATION Level 3 is achieved when there is a distinct awareness and application of project management concepts and processes throughout the organization. the integration of applicable business and project management processes. Level 3 is achieved when an organization identifies data integration opportunities. INFORMATION SYSTEM The benefits of effective cost. executing. This maturity level is characterized by organization-wide process application. The organization is able to improve its ability to predict the performance of its projects and further builds the foundation for continuous improvement. Such availability of alternative techniques provides flexibility to project managers and scalability to project management. information system integration. and incorporated to enable accomplishment of processes that now cover all recommended activities for each of the five PMBOK™ process groups: initiating. Functional units have a firm understanding of how projects interface with their operation and know the basic project management processes to be used on the project. and progress reporting. tracking and controlling. and resource management are further enhanced at Level 3 through a demonstrated capability to integrate and manage INTEGRATION associated data and information. In combination with other pertinent project management data for scope and plan management.Level 3: Integrated Implementing Project Management Processes Throughout the Organization An organization with an Integrated level of maturity is motivated to gain a strategic. and closing. schedule. planning. This effort is also supported by the establishment of a centralized function to oversee and manage the more mature. Executive management continues to support and endorse. The ProjectFRAMEWORK™ components used to assess Level 3 maturity are presented in the following subsections. ADVANCED TECHNIQUE DEVELOPMENT The essential project management processes and activities contained in the established methodology are expanded and enhanced to achieve Level 3 maturity. and advanced technique development. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-1 . In some cases.

Level 3: Integrated Project Cost Management 3-2 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model .

some type of project management support infrastructure is introduced. continually change and are reviewed regularly as more detail is available. Objective 3: An overall change control system is established and maintained for use with all projects in the organization. Templates are available and used for planning. Benefits of using the organization’s methodology typically include— n Improved customer satisfaction with an emphasis on customer requirements and management of customer relationships More effective project operations by using a consistent. At this level. and schedule is developed for each project.Project Integration Management—Level 3 The Level 3 organization uses its project management methodology throughout the organization for all projects. representing management control. Best practices are shared. and strategic value. OBJECTIVES Objective 1: A standard project management methodology is deployed and used throughout the entire organization. The status and content of project baselines are documented and known. Assumptions from project plans are documented and shared throughout the organization. cost. Objective 4: A project management support infrastructure is established. change management is an integral part of project management. Larger organizations may establish a PMO with several or more individuals responsible for coordinating project management activities throughout the organization. The level of detail depends on the specific project classification. For smaller organizations. Stakeholders contribute to the planning process. An established change control process for requirements. risk. and an organization-wide project management information system (PMIS) is established. Project managers apply the methodology for their individual projects based on criteria such as complexity of requirements. though. Objective 2: An organization-wide PMIS is established. Project reviews are also conducted at a level of frequency that depends on the project classification. COMMITMENT TO PERFORM Commitment 1: The organization follows a documented procedure requiring projects to be managed using its standard project management methodology. common approach to managing projects n © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-3 . The performance measurement baseline. cost. Also at this level. project plans are prepared regularly. size and duration of work effort. The purpose of the plans is to facilitate communication among project stakeholders and to provide a baseline for performance measurement and project controls. it may be one person who coordinates project management activities. changes only intermittently and in response to approved scope changes. Project plans. and a work authorization system is in place. In the Level 3 organization.

This procedure typically specifies— n n n Use of the PMIS by every project Information to be supplied to the PMIS by every project Update and maintenance of the PMIS Commitment 4: The organization follows a documented procedure for establishing integrated change control on its projects as part of its project management methodology. Commitment 3: The organization follows a documented procedure concerning the use of an organization-wide PMIS. the PMO should have at least one full-time.or part-time participants. 1. 3-4 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . Access to these data is defined.Project Integration Management Level 3: Integrated n Improved resource management by using a structured approach to planning and implementation that enables staff and other resources to be used when needed. dedicated person overseeing its activities. Specific project metrics are collected on each project. and execution decisions. o o Commitment 2: A group with executive management sponsorship serves as the focal point for the organization’s project management methodology deployment and improvement activities. 3. The PMO can have other full. In most circumstances. The operating arm of this group is usually formalized as a PMO. planning. reducing the frequency of unexpected downtime or overloaded resource commitments Reduced impact of risks by attending to risk management throughout the project life cycle Greater potential for identifying opportunities—as well as threats—as part of the risk identification and analysis process Reduced costs associated with project implementation by reducing the need for and cost of rework and establishing cost tracking and control methods to identify difficulties early in the project life cycle Improved quality of delivered products and services with the focus on project objectives and requirements to meet customer needs and expectations A common frame of reference for project evaluation Maintenance and use of project performance data in an organization-wide measurement program o n n n n n n Project performance data are collected to monitor the performance of each ongoing project and to provide information for use in future project selection. 2.

or deferring changes are defined. Individuals with expertise in project configuration management are made available. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-5 . and understanding the roles and responsibilities of board members Coordinating changes throughout the project and with all affected stakeholders n n n Ability 3: The roles. Funding is made available for project configuration management activities. agreed to. Ability 4: Adequate resources are developed to support an integrated project change control process within the organization. and authority of the CCB and the project manager for approving. 2. responsibilities. when used on a project. Items in this training typically include— n n n n Information to be supplied to the PMIS Time frames for supplying information to the PMIS Methods of accessing the PMIS Method of tailoring reports available from the PMIS Ability 2: Project managers and project team members are trained to manage change in a formal way. and communicated to all affected. rejecting. influences can be either internal or external) Establishing a change management process—request. 1.Level 3: Integrated Project Integration Management Actions in this procedure typically include— n Encouraging project changes at the earliest stages of the project because changes are more difficult as the project progresses Discussing changes at each project review meeting so that stakeholders are aware of changes Developing a change management plan Identifying the need and process for referring changes to a change control board (CCB) or other body whose purpose is to review changes Implementing approved changes Recognizing that a change in one part of the process will affect the project and the organization n n n n n ABILITY TO PERFORM Ability 1: Organization members receive training in the use of the PMIS. and decision making Working with a CCB. evaluation. Items in this training typically include— n Determining the factors that influence change (factors can involve planned change events or unplanned changed events.

duration. Objective criteria for the evaluations are determined. Independent reviews and evaluations of the methodology are conducted. and importance of the project. Every project has a defined strategy for collecting information to support overall organizational project performance metrics. 1. or high Project size in terms of the extent of the effort involved related to material and staff resource requirements with a range of small. or complex Project duration to add a time dimension with a range of short. Evaluations are planned and focus on those elements that will contribute to project success. The methodology is viewed as dynamic. and improvements to it are sought throughout the organization based on results of its use on specific projects. and a specific evaluation schedule is prepared. Changes to the methodology are made when changes are viewed as beneficial. Project results and performance are measured to gather information on the usefulness of the methodology and the benefits of project management. 4. medium. o o 5. 3. these changes follow the change control procedures contained in the methodology.Project Integration Management Level 3: Integrated ACTIVITIES PERFORMED Activity 1: The organization follows a documented procedure for changing its project management methodology. or large Project complexity in terms of project effort relative to technical requirements in the project type with a range of simple. Guidelines and criteria used in determining whether or not to use a scaled version of the methodology are specified by project classification elements. and action plans are developed to address evaluation findings. moderate. or long o o o 3-6 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . o o Activity 2: Every project is reviewed to determine whether it should use a scaled version of the methodology based on the size. Staff members who are involved in project management throughout the organization participate in and are informed of the organization’s activities for improving the project management methodology. nature. composite. 1. 6. Typical examples include— o Project type in terms of the nature and extent of the technical work to be performed with a value range of low. 2. The organization periodically evaluates its project management methodology. medium. Tracking mechanisms are in place to ensure that approved findings are implemented.

complexity. 3. 1. or duration. Activity 3: A project management support infrastructure. The methodology process scalability is structured so that it does not hinder the management of the project. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-7 .Level 3: Integrated Project Integration Management 2. and reporting to management Supporting executive management reviews of significant projects under way Supporting executive management project selection decisions Evaluating. is established. the amount of data entered. collecting project performance measurement data. common tools and systems are used. selecting. such as a PMO. size. The extent of the PMIS’s use. The methodology is available through information technologies so that it is accessible easily to staff throughout the organization and to customers and suppliers as appropriate. The organization has established and implemented an information technology strategy for project management information. and introducing standard tools and techniques to facilitate project management Coordinating project management training and orientation sessions Promoting executive management participation and support in project management improvement Establishing for the organization a repository of best practices in project management o n n n n n n n Obtaining information from other project managers in the organization based on lessons learned on past projects Establishing a format and database for reporting lessons learned Developing a mechanism whereby project managers can access the database o o Activity 4: A PMIS is established for the organization and used on every project. The objective of the PMIS is to facilitate information exchange and to reduce manual data entry. 2. 5. The organization has determined the information required to manage projects effectively. assessing these data for areas of needed improvement. and the effort in evaluating and reporting its output vary according to the project’s classification. 3. Functions performed by the PMO typically include— n Facilitating the establishment and maintenance of the organization’s project management methodology Monitoring projects. 4. The structure of the PMIS is common to all projects regardless of project type.

to identify problems quickly. cost. The PMIS enables the project manager and project team to maintain up-to-date information on technical performance. 3-8 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model .Project Integration Management Level 3: Integrated 6. and schedule. and to take corrective action as needed. to produce reports.

cost. and schedule Features to consider in developing or acquiring a PMIS include— o Flexibility to choose among system features for appropriateness to the specific project Cost-effectiveness Usefulness in satisfying project needs Timeliness so that variances and problems are discovered while there is time to take corrective action System accuracy and precision Simplicity of use o o o o o © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-9 . free float.Level 3: Integrated Project Integration Management PMIS capabilities typically include— o o o o o o o o o o o o o o o o o o o o o Developing and displaying a WBS Providing a detailed definition and description of each work package Displaying network charts with critical path. and total float Establishing a schedule baseline and revising it as appropriate Tracking progress in terms of completing work packages and milestones Displaying and contrasting the schedule baseline and actual data Performing “what if” analyses Identifying costs for each work package Tracking costs incurred Establishing a cost baseline and revising it when appropriate Displaying and contrasting the cost baseline and actual data Graphically displaying periodic and cumulative costs Establishing a resource list Monitoring resource availability Establishing project and resource calendars Assigning resources to work packages Performing resource leveling Displaying a resource spreadsheet Using resource histograms to show resource loading Calculating earned value data Preparing customized and standard reports on progress and status of technical performance.

Items typically included in the change management plan include— o o n n n n Roles regarding evaluating and approving changes Description of how project documents will be revised to reflect approved changes Procedures for change control tracking and notification Description of responsibilities for performing change control activities Membership and role of the CCB if appropriate Contract-specific requirements for change management if appropriate o o o o Activity 7: All change requests are managed and tracked. Activity 6: A change management plan is developed for every project and is used as the basis for performing the change management activities. as appropriate. or specifications of a project. 3-10 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . 3. The PMO maintains the PMIS and establishes procedures for access to it. The customer reviews and concurs with the change management plan as appropriate. Interfaces between knowledge areas on each project are recognized. and other participants in the organization. 1. throughout a project’s life cycle and by various projects according to their classification in the organization. project team members. Members of the organization and project stakeholders as appropriate are consulted periodically regarding the usefulness of the PMIS and any recommended improvements. 4. n The change management plan is consistent with the level of detail necessary for the size of the project. 2. activities. Changes are defined as deviations from planned or contractually required events.Project Integration Management Level 3: Integrated o Minimization of manual data entry Activity 5: The PMO maintains the PMIS and the procedures for its use. The baseline is used to identify whether a change is required. The PMIS is structured so that there are different levels of access depending on individual needs. different levels of formal project change management are implemented. The PMO ensures that the required PMIS capability is available to project managers. and procedures for interface management are developed and followed. The change management plan describes the process to be used by the project manager and project team to deal with changes as they occur. 1.

Level 3: Integrated Project Integration Management 2. A change request form is used to track changes from various sources. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-11 .

or deferral Date change approved Date change effective o o o o 4. and control changes to baselines is established. 2. Appropriate approvals are received before changes are implemented. and the proper approval. Written minutes of the project’s CCB meetings are prepared and distributed. and so on Change evaluation and recommendation Change approval. A change order is prepared and issued to implement the change. or deferral of the change is received. 3-12 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . schedule. Items typically part of this form include— o o o o Change proposal number Change requester Description of the change Description of the impact of the change in terms of cost. quality. The change request form is used to ensure that all steps in the evaluation of the change are performed. suppliers. 1. The project and contract baselines are updated. documented. as appropriate. The change is communicated both internally and externally to appropriate stakeholders. o The roles and responsibilities of the CCB and its individual members are defined. o o Activity 8: Approved changes are implemented. Examples of approval sources include— o o o Project manager CCB Contract manager if the change requires a contract modification 5. resources. disapproval. for every major project that represents interests of all groups and individuals affected by the changes. Procedures for changes that are approved without CCB review are documented. A CCB with the authority to review. and agreed upon by key project stakeholders. manage. 3.Project Integration Management Level 3: Integrated Change requests can be— o o o o Oral or written Direct or indirect Externally or internally initiated Legally mandated or optional 3. disapproval.

and the change execution does not exceed the designated and intended scope of the change. Typical items in this log include— o o o o o o o o o Revision date Change number Description Status • Proposed • Reviewed • Negotiated • Approved Change type • Funded • Unfunded Quoted amount (if applicable) Accepted amount (if applicable) Original contract value (if applicable) Calculated adjusted baseline value 2. Periodic progress reports are reviewed to identify issues that may lead to future changes. Examples of information collected include— n n n n n n Timeliness of the information Reliability of the information Effort required to supply to or retrieve information from the PMIS Ease of use and access to the PMIS Ability to customize the PMIS for specific projects Cost of maintaining the PMIS versus value of information produced © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-13 . EVALUATION Evaluation 1: Information is collected and used to evaluate the usefulness of the project management methodology.Level 3: Integrated Project Integration Management 4. Project performance is monitored to ensure that changed items are properly executed. Appropriate project plans are updated. Examples of information collected include— n n n n n Number of people using the methodology Applicability of methodology across a range of projects Amount of feedback received and revisions made Number of changes tracked and not tracked by the overall change control process Timeliness of the change control process Evaluation 2: Information is collected and used to evaluate the usefulness and value of the PMIS. A change control log is established to track changes as they occur. 5. Activity 9: Change control is monitored throughout the project. 1.

3-14 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model .Project Integration Management Level 3: Integrated Evaluation 3: Information is collected and used to assess the usefulness of the PMO function.

and in reviewing projects under way n n n VERIFICATION Verification 1: Reviews are conducted periodically to confirm that established procedures are followed. The purpose of these reviews is to confirm that— n Every project team uses the project management methodology in planning and managing projects The PMO has established a feedback mechanism for revising the methodology The PMO provides the required support as specified in the methodology The PMO provides standard tools and templates as required Project management processes are consistent throughout the entire organization Noncompliance issues are resolved n n n n n © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-15 .Level 3: Integrated Project Integration Management Examples of information collected include— n Number of tools and templates introduced for use in planning and managing projects Timeliness of incorporating approved changes to the project management methodology Ability to provide required project management training Ability to support executive management in the project selection process.

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more manageable components Formalizing the acceptance of project scope by project stakeholders through a scope verification process Establishing a scope change control system Ensuring that scope verification is performed Documenting lessons learned Establishing and using WBS templates Integrating product scope and project scope so that the work of the project results in delivery of the specified product or service Items typically addressed in integrating product scope and project scope include— o o n n n n n n n Features and functions to be included in a product or service (product scope) Work that must be done to deliver a product scope with the specified features and functions (project scope) Description of the processes. Objective 1: Project scope management activities are deployed and maintained.Project Scope Management—Level 3 At Level 3. tools. COMMITMENT TO PERFORM OBJECTIVES Commitment 1: The organization follows a documented procedure for conducting its project scope management activities. and techniques used to manage both product scope and project scope o © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-17 . and changes are controlled. a written scope statement and scope management plan are developed as part of scope planning to establish criteria for project decisions. and they work with others in the project initiation phase. Objective 3: A scope verification process is established. Objective 2: Project scope is tracked. A scope verification process ensures customer acceptance of project deliverables. product scope and project scope are integrated. Project managers typically are assigned to projects before the planning phase. Typical items in the procedure include— n n n Assigning responsibilities for project scope management Developing a scope statement for every project Developing a scope management plan for every project as a separate document or as part of other planning documents Defining project scope by subdividing the major project deliverables into smaller.

Topics in this training typically include— n n n n n n Developing a scope change request Determining factors that create scope changes Determining whether a change has occurred Managing scope changes Tracking the resolution of scope change requests Authorizing scope changes 3-18 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . Ability 2: Scope change control training is provided to appropriate project stakeholders. 5. change control. The purpose of this review is to— n n Support formal acceptance of the product or service of the project Ensure that all products or services are completed as specified and meet the customer’s expectations ABILITY TO PERFORM Ability 1: Adequate resources are provided for project scope management activities. Funding is made available for project scope management activities. Examples of tools and techniques include— o o 2. 4. Experienced individuals. are made available to support project scope management activities. Adequate time is allocated for project scope management activities.Project Scope Management Level 3: Integrated o Description of the methods to measure completion of both product scope and project scope Importance of integrating product scope and project scope Description of the methods to integrate any scope changes into the project o o Commitment 2: The project manager and the customer review and agree on all customer commitments. 1. Templates for WBS development Project management software to support WBS development 3. who have expertise in requirements definition. Support is made available for implementing improvements in project scope management. WBS development. Tools and techniques to support project scope management activities are made available. and scope verification.

approved. and controlled. The purpose of the scope statement is to— n Provide a documented basis for making future project decisions through project justification Project justification typically serves to— o o State the business need that the project was undertaken to address Provide the basis for evaluating future trade-offs n n n Confirm or develop an understanding of project scope among stakeholders Describe how the proposed solution meets the customer’s business need Identify project objectives and major project deliverables. which form the basis for an agreement between the project team and the customer Assess product scope changes and modify the scope statement as appropriate n The scope statement typically contains references to items such as— n n n n n n Project justification Project product or service Project deliverables Project objectives Product or service description Project charter © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-19 .Level 3: Integrated Project Scope Management n Integrating the project’s scope change control system with the project’s overall change control system Ability 3: An orientation on scope verification is provided to stakeholders. Typical areas covered in such an orientation include— n n n n Definition of scope verification Reviewing requirements of deliverables Inspection activities as tools and techniques for scope verification Formal customer acceptance documentation requirements Stakeholders in an orientation session include— n n n n n n n Project manager Project team members Project sponsor Executive management Functional managers Customers Suppliers and subcontractors ACTIVITIES PERFORMED Activity 1: A project scope statement is documented.

The project scope management plan is updated as required. but templates are available. 3-20 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . and assessment of scope changes Submission. this plan may be a standalone document or part of the overall project plan. classification. 1. Corrective actions are taken as required. The project scope management plan typically describes the— n n n n n n Management of project scope Integration of scope changes into the project Expected stability of the project scope Identification. The purpose of this review is to ensure that— n n n Customer requirements are reflected accurately in the project objectives Project objectives are measurable Project deliverables conform to customer expectations Activity 3: A documented scope management plan is developed and used by the project team as the basis for performing the project scope management activities. Templates are created and used according to the types of technical work performed by projects. 1. Activity 5: The organization has developed standard WBS templates as models for developing a project-specific WBS. 2. 2. review. and decisions concerning scope change requests Assumptions and constraints Examples of assumptions include— o o Dates when a key resource is available Expected stability in project scope Examples of constraints include— o o o Predefined budget Predefined schedule Specific contractual provisions if the project is performed under contract or if the project uses suppliers Activity 4: The project scope management activities are performed in accordance with the project scope management plan.Project Scope Management Level 3: Integrated Activity 2: The scope statement is reviewed and validated with the customer before it is finalized. 3. Some projects may still require creation of a unique WBS. Activities performed are monitored and tracked against the plan.

The scope change control system documentation typically includes— n n n Scope change control request form Scope change responsibility document Documentation control matrix Activity 7: Scope verification acceptance criteria for each project deliverable are defined and approved by the performing organization and the customer before execution. Tools and techniques for scope verification may include— n n n n Project reviews Product reviews Audits Walk-throughs The purpose of scope verification is to determine whether deliverables conform to documented project requirements.Level 3: Integrated Project Scope Management Activity 6: A scope change control system is documented to describe ways in which the project scope may be changed. Documentation serves to— n n Determine the level of acceptance of deliverables Identify the extent of any rework required EVALUATION Evaluation 1: Information is collected and used to assess the effectiveness of project scope management activities. The purpose of these reviews is to confirm that— n The organization’s project management methodology contains effective scope management procedures Scope management activities are conducted in accordance with the project management methodology n © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-21 . Activity 8: Customer acceptance of the project is documented. Examples of information collected include— n n n n n n n n n Quality and completeness of the scope statement Number of changes in the project deliverables Timeliness in processing scope change requests Changes in the scope planning assumptions or constraints Changes to project documents as a result of scope changes Customer acceptance of project deliverables Product or service conformance with requirements Timeliness in resolving conflicts in project scope Number of times issues had to be escalated to executive management VERIFICATION Verification 1: Scope management activities are reviewed regularly to confirm that they are performed satisfactorily.

Project Scope Management Level 3: Integrated n Scope statements are developed in conjunction with and validated by the customer Scope management plans are developed for every project Scope management activities are performed according to the scope management plan Scope change control procedures are reviewed and approved by the customer Lessons learned from scope change control systems in use on projects are evaluated The organization contributes to the refinement of standard WBS templates for its use on future projects Customer signatures are obtained on all deliverables as appropriate Noncompliance items are resolved n n n n n n n 3-22 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model .

the project schedule is approved according to the project management methodology and baselined for use in measuring and reporting schedule performance. COMMITMENT TO PERFORM Commitment 1: The organization follows a documented procedure for conducting its project time management activities. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-23 . fast-tracking. OBJECTIVES Objective 1: Project time management activities are deployed and maintained. Tools and techniques are made available for project time management activities. A schedule management plan is prepared and followed.Project Time Management—Level 3 At Level 3. Personnel with expertise in project time management are made available. Typical items include— n Identifying and documenting specific activities to be performed on each project to produce the deliverables and subdeliverables identified in the WBS Using the schedule to control the work as it is performed Identifying and documenting interactivity dependencies Estimating the number of work periods needed to complete each activity Determining start and finish dates for project activities Managing and controlling changes to the project schedule Ensuring agreement from all appropriate stakeholders on the schedule developed Establishing the timing of schedule reviews and the frequency of data collection to assess schedule performance Establishing documentation requirements for schedule changes Using tracking systems for schedule changes Describing the approval levels needed to authorize schedule changes n n n n n n n n n n ABILITY TO PERFORM Ability 1: Adequate resources are provided for project time management. Ability 2: Project team members receive training in various scheduling techniques and in schedule control. 1. 3. and leveling techniques are used as required. Adequate funding is made available for project time management activities. 2. Crashing. Objective 2: The project schedule is monitored and controlled.

Activity 3: Project and resource calendars that identify periods when work can be scheduled are developed. The schedule management plan typically includes— n n n n n n n Description of the process used to change the schedule Approvals required for schedule changes Notification to stakeholders regarding proposed and approved schedule changes Establishment and use of schedule reserve Coordination of schedule revisions with other project processes Timing of schedule reviews Summary narrative that describes the basic sequencing approach and any unusual sequence of activities Activity 2: The project time management activities are performed in accordance with the project schedule management plan. 2. 3-24 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . 1. Activities performed are monitored and tracked against the plan.Project Time Management Level 3: Integrated Typical topics in this training include— n n n n n n n n n n n n Resource-leveling heuristics Crashing Fast-tracking Critical path method (CPM) Program evaluation and review technique (PERT) Determining reasons for schedule changes Schedule reserve Schedule reviews Influencing factors that create schedule changes to ensure they are beneficial Determining that the schedule has changed Implementing schedule changes Informing stakeholders of proposed and actual schedule changes ACTIVITIES PERFORMED Activity 1: A documented schedule management plan is developed and used by the project team as the basis for performing the project time management activities. The project schedule management plan is updated as required. Resource calendars affect a specific resource or resource pool. 1. Project calendars affect all resources assigned to the project. Corrective actions are taken as required. this plan may be a stand-alone document or part of the overall project plan. 3. 2.

© ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-25 .Level 3: Integrated Project Time Management Activity 4: Resource-leveling heuristics are used to develop and refine the schedule if a project must be finished on a certain date without exceeding a specific level of resource use.

Free float is calculated to address the pressure that one activity places on another. which normally would be done sequentially n Activity 6: The activities with the least scheduling flexibility are identified. 1. Activity 7: The schedule is loaded with resources. 2.or part-time. 2. such as full-time for one unit. 1. Schedule reserve serves to mitigate the risk of missing schedule objectives. 3-26 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . If available. parttime for one unit. 2. 3. specific names of people with responsibility for an activity are noted. 3. Total float or slack for each activity is calculated. Activity 8: Schedule reserve is determined and accounted for in each project. As the schedule is developed. 3. or multiple units for each task. A path in the network with negative slack or float is known. organizational units are used. Use of schedule reserve is managed according to the project’s schedule management plan. Resources show the specific effort required. either full. 1.Project Time Management Level 3: Integrated Common priority standards for leveling include— n n n n n n n n n n n As soon as possible As late as possible Shortest time first Most resources first Minimum slack first Most critical followers Most successors Minimum late finish time Greatest resource demand Greatest resource utilization Greatest number of activities scheduled in any given period Activity 5: Duration compression approaches are used when appropriate to shorten a project schedule without changing its scope. Schedule reserve is established at the beginning of the project. resources are assigned to each activity. Examples of duration compression techniques include— n Crashing—increasing resources to activities to obtain the greatest amount of compression for the least incremental cost Fast-tracking—performing activities in parallel (or in an overlapping manner). otherwise.

Schedule change control is integrated with other control processes. as appropriate. o Schedule updates typically are defined as any modification to the schedule information used to manage the project. are analyzed to ensure that unfavorable variances do not affect project objectives. 4. Schedule control activities assess whether the schedule variance requires corrective action in any aspect of the project. 5. milestones. The schedule baseline provides the means to measure and report schedule performance. activities requiring use of the schedule reserve may not be known when the reserve is established. Schedule reserve is not disguised or hidden. 1. Stakeholders are notified of proposed and actual major schedule changes. 1. o 7. as appropriate. Approved changes to the schedule may result in an update. The schedule change control system describes procedures by which the schedule may be changed. 5. Schedule updates or revisions that cause the schedule to change are resolved according to a documented procedure. Activity 9: The project schedule is baselined and placed under the project’s change control system. Schedule changes may result in either extending the schedule or accelerating it. o Stakeholders may be involved in making decisions concerning proposed schedule changes as documented in the project’s schedule management plan. 3. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-27 . o Activity 10: The schedule is routinely reviewed and updated to incorporate the effects of early/late completion of project activities and is reevaluated for impacts on future activities. Schedule reserve is included in the overall project duration. The project team notifies appropriate stakeholders of schedule updates or revisions. o Schedule changes are coordinated. o 8. 2. either favorable or unfavorable. 6. The schedule baseline is the original schedule plus or minus approved changes.Level 3: Integrated Project Time Management 4. with activities in the other knowledge areas. Schedule revisions are a special category of schedule updates and change the scheduled start and finish dates in the approved project schedule. Root causes for schedule variances. however. and commitments.

Project Time Management Level 3: Integrated 2. Schedule performance data are used to assess the likelihood of completing the project according to the schedule baseline. The purpose of these reviews is to confirm that— n Changes to the project schedule are made in accordance with the schedule management plan Appropriate stakeholders are notified when schedule revisions or significant schedule updates occur The schedule change control system is being followed n n 3-28 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . dependencies. and constraints Number of schedule corrective actions initiated Accuracy of estimated completion dates Status of tasks on the critical path Effectiveness of schedule tracking and controlling process Extent of use of schedule reserve Number of people using scheduling tools and techniques provided by the PMO or included in the project management methodology Value of the scheduling tools and techniques in managing projects n n n n n n n VERIFICATION Verification 1: Project time management activities are reviewed regularly to confirm compliance with established time management procedures. Examples of information collected include— n n n n n n Planned schedule dates that have been met and those that have been missed Number of critical milestones met and missed Magnitude of schedule variances Frequency of schedule updates Number of schedule revisions Effect of schedule changes on activity duration estimates. Examples of templates include— n n Network templates for a project or a portion of a project Activity lists for a project or a WBS element EVALUATION Evaluation 1: Information is collected and used to assess the effectiveness of time management activities. Activity 11: Every project’s schedule is reviewed to facilitate the development of templates for possible use on future projects.

Level 3: Integrated Project Time Management n n Various scheduling techniques are being used throughout the project life cycle The customer is involved in the periodic review and update of the schedule as appropriate Prospective changes and corrective actions that involve expediting or delaying key events or major milestones are agreed to and supported by the customer The customer is notified of major scheduling issues Noncompliance issues are resolved n n n © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-29 .

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OBJECTIVES Objective 1: Cost management activities are deployed and maintained. and significance of the project © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-31 . and cost estimating are coordinated. Resource planning. and manage changes when and as they occur Cost control items typically include— o o o o n n Monitoring cost performance to detect variances from the plan Ensuring that changes are recorded in the cost baseline Preventing incorrect or unauthorized changes to the cost baseline Informing appropriate stakeholders of authorized changes n Ensuring that project cost management includes the cost of resources needed to complete project activities and the effect of project decisions on the cost of using the product or service of the project Using earned value analysis to provide an objective assessment of variance and a common understanding and consistency from project to project Describing specific reporting requirements and their frequency Integrating cost control with other project control processes n n n Commitment 2: The organization follows a documented procedure for independently validating and verifying cost estimates. The cost baseline serves as a time-phased budget to measure and monitor project cost performance. Items in this procedure typically include— n The need for independent validation and verification based on the size. COMMITMENT TO PERFORM Commitment 1: The organization follows a documented procedure for conducting its project cost management activities.Project Cost Management—Level 3 At Level 3. Objective 2: Project budget is monitored and controlled. complexity. Activities typically include— n Developing a cost management plan that discusses roles and responsibilities for project cost management Establishing a cost baseline to measure and monitor cost performance Stressing the importance of cost control to influence the factors that create changes to the cost baseline. project cost management activities are planned. determine whether the cost baseline has changed. scheduling. Earned value analysis is used for performance measurement and for forecasting.

4. 1. including use on future projects ABILITY TO PERFORM Ability 1: Adequate resources are provided for project cost management. Ability 2: Project managers and team members receive training in earned value analysis and overall cost control.Project Cost Management Level 3: Integrated n Use of the results of the independent validation and verification. 2. Information needs of various stakeholders are considered during the cost management planning process because stakeholders may measure project costs in different ways and at different times. 2. The cost management plan includes resource planning as a component to determine the physical resources and quantities of each resource needed to perform project activities. 3. this plan may be a stand-alone document or part of the overall project plan. The cost management plan describes how cost variances will be managed and costs controlled. When feasible. Items in this training typically include— n n n n Importance of earned value Key earned value data and their calculations Sources of earned value data Use of earned value to determine project status and for project evaluation and forecasting Presentation of earned value data to management Process for effective implementation of earned value Establishment of a cost change control system Key inputs to cost control Use of automated tools for cost control Corrective actions to help bring future performance in line with the cost management plan n n n n n n ACTIVITIES PERFORMED Activity 1: A documented cost management plan is developed and used by the project team as the basis for performing the project cost management activities. budgeting. Tools are provided to support the cost estimating. The cost management plan serves as the basis for performing the project cost management activities. and control processes. 3-32 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . experienced individuals are made available for project cost management activities. 1.

Level 3: Integrated Project Cost Management © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-33 .

3. Corrective actions are taken as required. 3. The project cost management plan is updated as required. 6. Policies of the performing organization concerning rental or purchase of supplies and equipment and the use of outsourcing are considered. Data are collected so that the usefulness of specific metrics over the life of the project is known. 2. 2. 3. other metrics may be used as well. Metrics may include those from the earned value approach. Historical information is used as part of the cost management planning process. Activity 3: The cost estimate is reviewed independently for comprehensiveness and completeness as appropriate. An independent review of the estimate is recommended if the project involves significant uncertainty. including— o o o o o o o o o Budgeted cost of work scheduled Budgeted cost of work performed Actual cost of work performed Schedule variance Cost variance Cost performance index Schedule performance index Estimate at completion Estimate to completion However. Activities performed are monitored and tracked against the plan.Project Cost Management Level 3: Integrated Examples of resources include— o o o o People Equipment Materials Supplies 5. Activity 2: The project cost management activities are performed in accordance with the project cost management plan. 1. Independent reviewers receive the data needed for validation and verification. and analyzed are identified. 3-34 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . The independent review of the estimate concentrates on possible systematic errors in the estimates. 1. Cost analyses are conducted throughout the project on a defined schedule that is included in the project cost management plan. monitored. 2. 1. the components of cost to be collected. Activity 4: For every project.

The cost control system includes the timing of reviews and frequency of data collection. 1. 2. 2. Lessons learned typically include— o o Causes of cost variances Reasons for choosing corrective actions 3. Budget updates generally are issued only in response to approved scope changes. The cost control system includes the approval levels needed for authorizing changes. Activity 7: Budget updates are prepared to reflect authorized changes. 4. The cost control system includes documenting lessons learned about the causes of variances and corrective actions taken. 7. Deviations from the budget are identified and analyzed. Changes in project costs are authorized before they are expended. Project managers know when to take actions within predetermined cost thresholds. 6. 5. A documented procedure is prepared for accepting and revising the budget. The cost control system emphasizes assessing the causes of variations between budget figures and actual figures for use in making continual improvements. and appropriate action is taken when necessary. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-35 . 2. 1. 1. 3. The cost control system defines the procedures to follow when changing the cost baseline. 3.Level 3: Integrated Project Cost Management Activity 5: Cost variance thresholds are developed. and responses to exceeding thresholds are known. Budget updates are coordinated with other project processes to develop the plan for the remaining work. Activity 6: A cost control system is established for every project. 8. Standard corrective action responses are available to project managers for variances exceeding thresholds. 4. rebaselining may be needed to provide a realistic measure of project performance. Project managers know when to escalate cost issues when predetermined thresholds are exceeded. The cost control system interfaces with the project’s overall change control system. If cost variances are significant.

Examples of information collected include— n n n n n n n n n Number of revisions to the cost management plan Number of stakeholders involved in developing the plan Ability to achieve budget goals Comparison of the budgeted cost with the actual cost (cost variance) Number of times cost variances exceed established threshold Number and frequency of budget updates Number of unauthorized changes included in the cost baseline Difference between any independent estimate and the project team’s estimate Accuracy of the independent estimate in terms of overall project costs VERIFICATION Verification 1: Project cost management activities are reviewed regularly to confirm that they performed according to established cost management procedures. the better the project performance. 1. 2. 1. Activity 9: Cost indexes are developed for major projects. The smaller the schedule index. The schedule index is calculated by actual project duration divided by authorized project duration. Evaluation 1: Information is collected and used to assess the effectiveness of project cost management activities.Project Cost Management Level 3: Integrated Activity 8: Schedule indexes are developed for major projects. EVALUATION The cost index is calculated by actual project costs divided by the authorized budget. the better the project performance. The smaller the cost index. 2. The purpose of these reviews is to confirm that— n n A cost management plan is developed for every project Cost estimates are reviewed independently as required for comprehensiveness and completeness Actual cost is tracked regularly Causes of cost variance are determined and documented for use on future projects The cost control system is established and followed The cost baseline is updated as required by scope changes Nonconformance issues are resolved n n n n n 3-36 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model .

The organization has a quality policy for project management and quality standards for its project work. as well as the specific product or service delivered. Objective 2: Project quality management activities are deployed and maintained. Team members recognize that quality is designed and built into the project during planning. Standardized checklists are used to ensure consistency in frequently performed activities. Objective 3: Quality assurance and quality control activities are conducted on every project. and resources needed for quality management Quality control. responsibilities. not inspected in during the execution phase. and quality improvement activities for projects Use and importance of quality assurance and quality control tools and techniques The need to monitor project results to verify them according to relevant quality standards and take appropriate corrective action if results do not lead to acceptance decisions Typical corrective actions include— o o n n n Process adjustments Rework of a marginal product or system © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-37 . Tools and techniques for quality planning are used regularly to help the project team anticipate the occurrence of potential quality problems. Objective 4: Project quality improvements are identified and implemented early in the project life cycle. unanticipated rework is minimal. COMMITMENT TO PERFORM Commitment 1: The organization follows a documented procedure for conducting its project quality management activities. they become part of the project’s records. quality assurance. Quality assurance activities are performed routinely. with audits providing a structured review to address lessons learned.Project Quality Management—Level 3 At Level 3. Procedural items typically include— n n The need to determine how the project team will implement the quality policy Project quality system or the organizational structure. The organization emphasizes the importance of quality improvements. processes. OBJECTIVES Objective 1: An organization’s project quality management policy and quality standards are established for project work. and schedule. cost. Trend analysis is used to monitor technical performance. project quality management addresses project management processes.

and employee recognition Considering quality a responsibility of every team member throughout the project life cycle Using process improvements to reduce common causes of variation n n n n n n n ABILITY TO PERFORM Ability 1: Members of the organization receive an orientation to the organization’s project quality management policy and standards. enhanced supplier relations. Items in this procedure typically include— n Identifying responsibilities for quality improvement initiatives in the organization Recognizing the importance of quality improvement to ensure the project conforms to the customer’s requirements Using objective measurements and data to continuously and simultaneously improve quality. Typical resources that are made available include— n n n n Individuals with expertise in quality management Funding for project quality management activities Tools and techniques for project quality management Time for project quality management Ability 3: Project management team members receive training in project quality management. and investor satisfaction. cost.Project Quality Management Level 3: Integrated o Removal and replacement of defects Commitment 2: The organization follows a documented procedure that demonstrates its commitment to quality improvement initiatives in its project activities. shareholder. skills. This orientation typically addresses the knowledge. and competencies needed to meet the quality objectives. and delivery time Fostering both incremental and innovative improvements Promoting quality as an asset to the organization if it is applied consistently in all projects Viewing quality as value in terms of customer. Examples include— n n n Basic quality awareness Problem solving Meeting customer requirements Ability 2: The organization provides adequate resources for project quality management. Items typically covered in this training include— 3-38 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model .

Quality assurance comprises the planned and systematic activities implemented to provide confidence that the project will satisfy the relevant quality standards. Support is provided for improvements in project quality management. 1. 4. 2. Funding is provided for quality improvement initiatives. ACTIVITIES PERFORMED Activity 1: A project quality plan is developed and used by the project team as the basis for performing the project quality management activities.Level 3: Integrated Project Quality Management n n n n n n Discussing proven benefits of quality Promoting quality management principles Determining quality costs Measuring quality Promoting a customer focus Determining ways to structure project activities around processes rather than functions Using quality tools Examples of tools and techniques for which training may be needed include— o o o o o o o o n Control charts Pareto diagrams Statistical sampling Flowcharting Trend analysis Histograms Run charts Checklists Ability 4: Quality assurance and quality control are structured so they are distinct yet complementary activities. Ability 5: Adequate resources are provided for project quality management improvement initiatives. Quality assurance is a responsibility of management and depends on the involvement of the project manager for its attainment and verification. and tools that support the improvement process. 2. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-39 . 3. 3. Quality control is a responsibility of all project team members. this plan may be a stand-alone document or part of the overall project plan. techniques. 1. Training is provided to educate employees in the principles. Quality control involves monitoring specific project results to determine whether they comply with quality standards and to determine ways to eliminate causes of unsatisfactory results.

The project quality management plan describes the organizational structure. responsibilities. The project quality management plan describes how the project team will implement the organization’s quality management policy. Quality planning includes inputs from the other project management knowledge areas. ISO 10006. Baldrige award. 2. procedures. Items in this plan typically include— o o o o Required quality inspections Required quality audits Use of quality control measurements Requirements and processes to meet the customer’s product or service requirements Steps typically included in developing the project quality management plan are to— o Identify the project’s objectives and requirements in conjunction with defining scope Analyze each objective and requirement for specific risk This analysis may include identifying and analyzing the— • Potential causes of failure o 3-40 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . and other internal policies. The project team ensures that appropriate project stakeholders are aware of the project’s quality management policy. The project quality management plan addresses project quality planning. quality assurance. and approval of the project quality management plan. The project team either uses the organization’s quality management policy “as is” or modifies or tailors it to meet specific project needs. 4. 7.Project Quality Management Level 3: Integrated 1. quality control. 5. The project quality plan is developed in compliance with organizational requirements such as International Standards Organization (ISO) 9000. review. 3. The project’s quality assurance staff or a quality assurance team member and members of the project team participate in the preparation. WBS Scope statement Product or service description Identified risks Specific supplier quality requirements 8. and quality improvement. processes. and resources needed for project quality management. Examples of specific outputs from other knowledge areas that may be useful in quality planning include the— o o o o o 6.

Level 3: Integrated

Project Quality Management

• • • • •
o

Potential failure modes Probability of failure occurring Effects and severity of failure Current controls in place Likelihood of detecting failure using existing controls

Establish control measures for each work package and deliverable for quality actions or issues and assess each work package’s risk to see whether specific quality control measures are required for mitigation Document the control measures

o

Activity 2: The project quality management activities are performed in accordance with the project quality management plan.
1. 2. 3. Activities performed are monitored and tracked against the plan. Corrective actions are taken as required. The project quality management plan is updated as required.

Activity 3: Project team members use standard tools and techniques in the quality planning process.
Examples of tools and techniques used in quality planning include—
n n n

Benefit-cost analysis Benchmarking Flowcharting Flowchart techniques commonly used in quality management include—
o o

Cause-and-effect diagrams, also known as Ishikawa or fishbone diagrams System or process flowcharts

n

Designing experiments to show which variables have the most influence on the overall outcome Quality checklists

n

Activity 4: Quality control tools are used, and their results are analyzed.
1. 2. 3. Quality control tools are used to help ensure that the project’s product or service conforms to the specifications and requirements. Project team members have a working knowledge of these tools and their usefulness in various situations. Data collected using these tools are analyzed and evaluated.

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Project Quality Management

Level 3: Integrated

Activity 5: Project technical activities are tracked, deviations or deficiencies are identified and reported, and corrective actions are taken to support quality improvements.
1. 2. 3. 4. 5. The output of quality assurance activities is quality improvement. Quality indicators are developed to help determine potential areas of improvement. Quality measurement results are displayed openly for all team members to review. The purpose of reviewing the project’s technical activities is to simultaneously improve quality, cost, and delivery. Process improvements are used to reduce the common causes of variation.

Activity 6: Quality improvements are implemented according to overall change control procedures.
1. 2. 3. EVALUATION Specific documentation requirements are followed to implement improvements. Specific approvals are obtained before improvements are implemented. Other documents are updated as appropriate.

Evaluation 1: Information is collected and used to evaluate the acceptance of the organization’s project quality management policy.
Examples of information collected include—
n

Surveys or interviews to determine whether an organization’s quality values are adopted Amount of funding and training provided on quality assurance and quality control Need and extent of any tailoring of the performing organization’s quality policy to fit the specific requirements of individual projects

n

n

Evaluation 2: Information is collected and used to evaluate project quality management activities.
Examples of information collected include—
n n n n n n n n n n

Number and types of revisions to the project quality management plan Number of people involved in quality planning Number of failures detected during acceptance tests Number of prototype failures Time and cost involved in fixing errors or defects Number of problems discovered through quality inspections Number of unplanned quality audits conducted Number of special events noted on process control charts Planned or expected results versus actual results Number of adjustments made to processes

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Level 3: Integrated

Project Quality Management

n

Reduction in costs associated with warranty repairs

VERIFICATION

Verification 1: Project quality management activities are reviewed regularly to confirm that activities are performed according to quality standards and the organization’s quality policies.
The purpose of these reviews is to confirm that—
n n n

Quality plans are developed for every project The status of the project quality management activities is tracked The quality project management plan adheres to project management methodology Standard quality management tools and techniques are used consistently Quality management tools and techniques are adequate Appropriate training on quality tools and techniques is conducted Quality assurance and quality control activities are conducted according to the plan Quality audits are conducted as scheduled Noncompliance issues are resolved

n n n n

n n

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Objective 3: The organization furthers project management competencies through a managed training program. Examples of individuals or groups who might assist and advise on project human resource management activities include— n n n Human resources staff Training staff PMO staff © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-45 . COMMITMENT TO PERFORM Commitment 1: The organization follows a documented procedure for conducting its project human resource management activities.Project Human Resource Management—Level 3 At Level 3. team development occurs throughout each project. The procedure typically specifies that— n n n Staffing activities comply with the project objectives Staffing activities comply with all national laws and regulations Responsibilities for initiating. the organization is examining alternative teambased reward and recognition systems to support the project environment. Objective 2: The organization uses a team-based approach to projects. and used for— o o o o o o n Recruiting internally and externally Announcing availability of positions Developing a list of qualified candidates for open positions Evaluating and selecting the most qualified candidates Transitioning selected candidates into their new positions Documenting and measuring the staffing process Commitment 2: An organizational position is assigned responsibility for assisting and advising projects on project human resource management activities and procedures. an organization uses a variety of organizational structures for its projects based on the nature of the project and the skills and capabilities of specific team members. documented. conducting. and approving project staffing decisions are assigned Appropriate procedures are defined. At Level 3. OBJECTIVES Objective 1: The organization adapts organizational structures to meet project needs. and communication skills. Teambuilding training emphasizes the temporary nature of project management. Information is collected throughout the organization to determine a resource productivity/utilization factor to support resource planning efforts and the development of future metrics. the dual reporting relationship that exists in the matrix structure.

as needed.Project Human Resource Management Level 3: Integrated Commitment 3: The organization follows a documented procedure for using various organizational structures for its projects. Individuals are made aware in a timely manner of the training that is being offered. This procedure typically specifies that— n Team-building activities serve the business objectives and stated values of the organization Team-building activities are to be included in project plans Guidance is available for team-building activities that typically specify— o o o n n How teams are to be prepared to perform their tasks How team accountability will be established How team performance will be reviewed Commitment 5: The organization follows a documented procedure for its project management training program. n n n Typical items in the procedure include— n n n Selection of attendees Evaluation of courses for quality and applicability Internal and external courses required to establish certain skill levels 3-46 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . As part of the program. The organization’s training budget is established. The organization’s project management training program is reviewed periodically and revised. the procedures typically followed include— n The organization’s project management training schedule is developed and published. The project organizational structure is compatible with and supports the overall organizational strategy and structure The project organizational structure is designed to encourage effective communication and cooperation among all project stakeholders The organizational structure that is most appropriate for each project is established n n n n Commitment 4: The organization follows a documented procedure for building project teams. according to a documented procedure. This procedure typically states that— n Project organizational structures that serve the business objectives and stated values of the organization are established The project organizational structure is included in project plans.

3. 1. and competency-analysis activities include— o o o Task analysis tools Job analysis questionnaires Skills analysis inventories 5. skills. and competency-analysis activities are made available. Individuals responsible for project human resource management activities have the necessary expertise relevant to their responsibilities and receive training as needed. This individual may be assigned from among project team members or from a collateral organization. skills. Individuals who have expertise in knowledge. 4. an individual is assigned responsibility for ensuring that human resource management activities are performed. Ability 2: In every project team. skills. and competency-analysis activities are made available. Time is made available to support the development of project management as a core professional competency in the organization. and competency-analysis activities. Examples of methods and procedures in which individuals may receive training include— © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-47 . Examples of individuals who can contribute to knowledge. Adequate funding is made available to support development of project management as a core professional competency in the organization. skills. and competency-analysis activities include— o o o o o Human resource professionals PMO staff Project managers Training staff Instructional system designers 2. Adequate funding is made available to support knowledge. Examples of individuals who may be assigned responsibility for various human resource management activities include— o o o o Project team member Representative of the organization’s human resource group Staff members assigned to the project team on a part-time basis Project control officer 2. 1. skills. Examples of tools to support knowledge. Tools for supporting knowledge.Level 3: Integrated Project Human Resource Management ABILITY TO PERFORM Ability 1: Adequate resources are provided for the development of project management as a core professional competency in the organization.

Individuals who have expertise in team building are made available. Examples of individuals with expertise in team building include— 3-48 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . 1. Examples of contributions that could be made by those with special skills include— o o o o o Assistance in training needs analysis Knowledge of sources for relevant training opportunities Application of course design principles Conducting training Evaluating learning. Support for implementing training activities is made available. and return on investment 2.Project Human Resource Management Level 3: Integrated o o o o o Staffing procedures required by organizational policies Position and task analysis interviewing skills Selection techniques and candidate evaluation Orienting and transitioning individuals into new positions Laws and regulations governing employee selection Ability 3: Adequate resources are provided for project management and related training. Individuals with expertise in project management and course design are made available. 3. Adequate funding is made available for project management training activities. transfer of learned skills to the project environment. Examples of tools and instruments include— o o o o Templates for training needs analysis Skill inventories Lists of training opportunities available Materials for developing training 4. 1. Tools and instruments to support training activities are made available. Examples of implementation support include— o o o o o Training materials Development or procurement of training Delivery of training Training facilities and equipment Evaluation of the quality and effectiveness of the training and maintenance of training records Ability 4: Adequate resources are provided for project teambuilding activities.

obtaining commitments. 3. are defined and conducted with the assistance and approval of the organization’s human resource staff Training requirements are determined for each individual and the project team Training activities are conducted Training records are maintained and used to identify areas for possible improvement n n n n n © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-49 . this plan may be a stand-alone document or part of the overall project plan. and assigning resources.Level 3: Integrated Project Human Resource Management o o o o o Team mentors Facilitators Individuals who have worked on successful teams Trainers Human resource staff 2. Examples of relevant skills include— n n n n n n n n n n n Consensus building Group problem-solving and decision-making techniques Creative problem-solving techniques Conflict resolution Negotiation Stages of team development Role and task definition Team leadership and decision making Team goal setting and performance feedback Team communication and coordination Team discipline and self-management ACTIVITIES PERFORMED Activity 1: A documented project human resource management plan is developed and used by the project team as the basis for performing the project human resource management activities. requesting resources. Time is made available for training in needed team-building skills. Ability 5: All project team members are trained in team effectiveness skills. such as determining requirements. Funding is made available for training in team-building skills and for support of team-building activities. The project human resource management plan typically ensures that— n n Staffing activities are assigned and tracked Procedures are in place to determine when and how human resources will be brought into and taken off the project team Staffing activities are conducted according to the organization’s documented policies and procedures Staffing activities.

Project Human Resource Management Level 3: Integrated n Constraints and assumptions that affect the project team’s options in project human resource management are identified and documented as part of the staffing plan Examples of constraints include— o o o o Organizational structure of the performing organization Collective bargaining agreements Preferences of the project management team Expected staff assignments Activity 2: The project human resource management activities are performed in accordance with the project human resource management plan. and competencies required Project duration Project manager’s level of authority and responsibility Communication or information flows Accountability for results 3. Corrective actions are taken as required. 1. 3-50 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . Issues to be considered in identifying appropriate project organizational structures include— o o o o o o o Assigned responsibilities Project goals and objectives Diversity of knowledge. The organization designs an approved set of structures for use in specific situations. Different types of structures include— o o o o o o o o Self-managed or self-directed work teams Cross-functional or core teams Virtual teams Weak matrix Balanced matrix Strong matrix Projectized Task forces 2. Activity 3: The organization supports an approved set of project organization structures for application in appropriate situations. The organization analyzes the specific project to determine the most appropriate organizational structure. 2. Specific organizational structures vary depending on the situation. The project human resource management plan is updated as required. Activities performed are monitored and tracked against the plan. skills. The type of structure to implement depends on the characteristics of the specific project. 3. 1.

Examples of team-building activities include— n n n n Periodic team meetings Coaching Mentoring sessions Team problem-solving sessions Activity 5: Interpersonal problems or conflicts that degrade the quality or effectiveness of working relationships are handled swiftly and appropriately. guiding. The project organizational structure is determined based on the skills and capabilities of specific individuals assigned to the project team. training. The organization’s set of supported project structures and processes is— o o Updated and expanded as situations require Used for initiating. and the overall structure of the organization in which the project resides. and managing project teams 5. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-51 .Level 3: Integrated Project Human Resource Management The organization’s set of supported structures is documented and used as the basis for facilitating the formation of new project teams and guiding them in adopting effective practices. the business objectives of the project. Examples of structural and process elements to be designed for each type of team include— o o o o o o o o Level of empowerment Scope of decision authority Accountability and management or reporting relationships Project leadership Project team roles and responsibilities Level of independence in project planning Project team size and composition Support mechanisms 4. Skills and capabilities include— o o o o Management Technical Group process Administrative Activity 4: The project manager conducts team-building activities throughout the project. Conflicts that cannot be resolved by the project manager are escalated for action. 1. Examples of problems to be resolved include— o o o o Resource allocation issues Internal conflicts Breakdowns in coordination with other stakeholders Conflicting priorities 2.

The purpose of the program typically is to— n Support the development of project management knowledge. and competencies assessments Retention of learned skills Application of learned skills or behaviors in job performance Benefit to the project as a result of applied behaviors Evaluation 2: Information is collected and used to assess the effectiveness of the organizational structures supporting projects. Examples of information collected include— n n n n n n Training: scheduled vs. Project team members may report to— n n n Project manager on a full-time basis during the project Project manager on a part-time basis during of the project Functional manager during the project and provide only output products to the project manager Customer or supplier during the project n Activity 7: The organization establishes a program for training and development in project management and defines the resources needed to support the program. and competencies in the organization Provide project team members with an opportunity to gain needed knowledge. skills. Examples of information collected— n n n Clear delineation of roles and responsibilities for members of the project team Ease in obtaining appropriate resources when needed Project manager’s ability to exert control over and motivate team members 3-52 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . skills.Project Human Resource Management Level 3: Integrated Activity 6: The project manager provides input to project team members’ performance appraisals. skills. completed Quality of training as rated in student evaluations Knowledge. and competencies to plan and execute projects Increase skills and capabilities of project teams to achieve higher levels of success in completing projects Enhance competencies in project management Support individual career development n n n n EVALUATION Evaluation 1: Information is collected and used to evaluate the quality and status of project management training activities.

and responsibility issues VERIFICATION Verification 1: Human resource development activities are reviewed regularly to confirm adherence to established procedures. The purpose of these reviews is to confirm that— n n Established policies for filling open positions are followed Project managers and team members are selected in compliance with established criteria Staffing activities are conducted according to plans The organizational structure selected is appropriate Team-building activities are useful Noncompliance items are resolved n n n n Verification 2: Reviews are conducted regularly to confirm that project management training activities are conducted according to established plans.Level 3: Integrated Project Human Resource Management n Number of problems that need to be escalated to executive management or the project sponsor concerning working relationships. authority. The purpose of these reviews is to confirm that— n n n Training activities comply with the organization’s policies and stated values Training activities are performed according to plans and specific project needs All actions related to developing and implementing training plans are periodically reviewed to ensure that they conform to the documented policies Noncompliance items are resolved n © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-53 .

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and resource management. Management reviews are held regularly on each project. progress reporting. OBJECTIVES Objective 1: Performance reporting activities are deployed and maintained. A project management information system is used throughout the life cycle. executive management— n n Publicly endorses open communication in the organization Supports an open communication environment that supports communication flow among all levels and groups in the organization and with all project stakeholders Ensures that requirements for recurring project-related information are communicated to all appropriate individuals and groups Enforces corrective actions when information-related activities do not comply with the values of the organization Ensures that individuals are involved in making commitments that they are accountable for fulfilling n n n Commitment 2: The organization follows a documented procedure for its project performance reporting activities. schedule. communication management activities are well defined and carried out by all team members. Metrics are in place for cost. Standard performance reports are prepared. Typically. Performance reports provide the level of detail required by stakeholders as documented in the project communication plan. COMMITMENT TO PERFORM Commitment 1: The organization establishes and maintains an environment that fosters effective communication throughout the organization. and forecasting Need for information on scope. An indexed series of project records is prepared for archiving with formal documentation of lessons learned. cost. Objective 2: Project records are established and maintained for reuse or lessons learned. This procedure typically specifies the— n Need to collect and disseminate performance information so stakeholders have information about the use of resources to achieve project objectives Importance of status reporting. and quality Preparation of reports on a regular or exception basis n n n © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-55 . Planning for project closeout and transition to the customer begins during the project planning phase. Objective 3: Administrative closeout activities are conducted. schedule.Project Communications Management—Level 3 At Level 3.

including tracking of project deliverables and milestones Resource allocations and individual efforts of project team members are tracked Project performance is tracked against project plans Variances are identified Analyses of variance are conducted Project progress is assessed n n n n n n n Commitment 4: The organization follows a documented procedure for allocating and archiving project records. lessons learned. This procedure typically specifies the— n n n n n n n n Relationship of the project’s records to the organization’s records Importance of retaining records Requirements for retaining records on every project Access to project records after project completion Security of project records Backup of project records Storage of archived records Amount of time records remain available Commitment 5: The organization follows a documented procedure for closing a project and transferring it to the customer. and documentation of the product or service or project) Contract closeout (product or service verification and administrative closure according to the procedures specified in the contract) Personnel closeout (reassignment of project team members and the project manager) o o 3-56 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model .Project Communications Management Level 3: Integrated Commitment 3: The organization follows a documented procedure that specifies requirements for tracking project performance against plans. This procedure typically includes— n n Developing a closeout plan Ensuring that closeout activities are accomplished as planned Examples of typical closeout activities include— o Administrative closure (all documents associated with performance measurements such as specific performance reviews. This procedure typically specifies that— n Project status information is collected and reported routinely by all those involved in the project Cost monitoring and tracking are performed Effective monitoring and tracking of the schedule is performed.

Examples of training include— n n n n n Ways to conduct performance reviews Variance analysis Trend analysis Earned value analysis Use of information distribution tools and techniques © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-57 . 2. an individual is assigned responsibility for ensuring that project communication-related activities are performed. Individuals with expertise in project performance reporting are made available.Level 3: Integrated Project Communications Management ABILITY TO PERFORM Ability 1: Within each project team. 3. Support for implementing improvements in project performance reporting is made available. Funding is made available for project performance reporting activities. Examples of tools include— o o o Spreadsheets Database systems Project management software Ability 4: Project team members receive training in project performance reporting. The responsible individual may be— n n Project team member Project control officer Ability 2: Project managers and team members are trained in communication skills. Examples of items covered in this training include— n n n n n n n n n n Preparing status reports and conducting project reviews Facilitating and developing communication skills in others Developing interpersonal communication skills Facilitating meetings Using different communication media Planning and executing a project communication strategy Developing negotiation skills Using communication skills such as— o Verbal o Paralingual o Nonverbal Using different behaviors during conflict and opposition Determining ways to handle conflict Ability 3: Adequate resources are provided for the project performance reporting activities. 1. 4. Tools for project performance reporting are made available.

3. this plan may be a stand-alone document or part of the overall project plan. 1. Items covered in the project communication management plan typically include— n n Description of methods used to gather and store various types of information Distribution structure that shows to whom information will flow and the methods to be used to distribute information Examples of the types of information include— o o o Status reports Schedules Technical documents 3-58 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model .Project Communications Management Level 3: Integrated Ability 5: Project team members receive training in records management. Items covered in this training typically include— n Maintaining and retaining paper and electronic records according to internal or contractual requirements Indexing project records Preparing a records retention schedule Updating and maintaining organization databases that are pertinent to projects Reviewing records Ensuring the retention of records that reflect final specifications of the product or service of the project n n n n n Ability 6: Adequate resources are provided for records management in the organization and for every project. Ability 7: Adequate resources are provided for closeout activities. Activity 1: A documented project communication management plan is developed and used by the project team as the basis for performing the project communication management activities. 1. 2. ACTIVITIES PERFORMED Individuals with expertise in project closeout are made available. Time is made available for project closeout activities. as needed. 2. Adequate funding is made available for records management activities. Time is allocated for records management activities. 3. Funding is made available for project closeout activities. Experienced individuals with records management expertise are made available to support project teams.

Level 3: Integrated Project Communications Management Examples of methods used to distribute information include— o o o n Written reports Meetings Electronic mail Communication matrix that shows information recipients and communication methods The communication matrix typically includes— o Names of individual stakeholders or groups involved with the project and the types of information they require Methods of communication with each individual or group o n Description of the information to be distributed This description typically includes— o o o o Format Content Level of detail Conventions or definitions used n n n n Schedule to show when each type of communication will be produced Description of the information security requirements Methods of accessing information between scheduled communication Procedures to refine and update the communication management plan as required Procedures for escalating issues both within the performing organization and to the customers’ organizations Performance indicators that are documented and known to all team members and stakeholders Examples of typical performance indicators include— o o o o n n Schedule variance Cost variance Actual hours worked versus estimated hours scheduled Total direct and indirect costs incurred in accomplishing project work in a given period Portion of the approved cost estimate planned to be spent on the activity during a given period Percentage of the total budget equal to the percentage of the work actually completed o o n Constraints and assumptions © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-59 .

An action item report defines the requirements necessary for resolving the issue. Typically. The project communication management plan is updated as required. Activities performed are monitored and tracked against the plan. the action item report includes— o o o o o o o o o Action item name Action item number Responsible individual Status Resolution strategy Due date Date closed Project manager approval Approval date 3-60 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . 1. 2. Action items are identified and assigned to responsible individuals for resolution. tracked. The project team maintains an action item log and reports regularly on its status. 3. Activity 3: Action items are assigned. and reviewed. 2.Project Communications Management Level 3: Integrated Examples of constraints include— o o o o Use of contractors Handling of contract information Handling of sensitive information Geographical considerations Examples of assumptions include— o o Risks associated with various options in the plan and how to deal with them Availability of tools and technology Activity 2: The project communication management activities are performed in accordance with the project communication management plan. Typical items included in the action item log are— o o o o o o o o Action item number Description Originator and person responsible Origination date Expected resolution date Follow-up date Status Resolution date 3. Corrective actions are taken as required. 1.

Project managers are rewarded for following previous lessons learned. 3. Lessons learned are timely. and risk. Activity 7: Lessons learned are systematically reviewed and incorporated into historical databases. 2. 2. 4. 5. This plan serves to ensure the continued support of those favorable to the project. This plan will also serve to mitigate the impact of actions taken by those who do not want the project to succeed. Project performance reports provide the kinds of information and the level of detail required by various stakeholders as documented in the project communication management plan. Project-specific historical databases are maintained up to date. 1. 1. Information on variances includes cost and schedule as well as scope. Both positive and negative lessons learned are documented and maintained. Effectiveness of potential recovery actions is assessed. Project results are analyzed to determine whether performance is improving or deteriorating. cost. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-61 . and detailed.Level 3: Integrated Project Communications Management Activity 4: Stakeholders receive information on potential problems in a timely fashion. Organization-wide historical databases pertinent to the project are maintained up to date. Activity 5: A repository is established for all project documentation. quality. relevant. 2. and schedule measures to determine whether work is being accomplished as planned. 3. 1. 5. Project performance reports integrate scope. Items in the project repository typically include— n n n n n n n n n n Scope statement WBS Network schedule Gantt chart Resource responsibility matrix Commitments by project team members and stakeholders Contractual information with the customer and with suppliers Project performance measurement documentation All project planning documents Documents concerning the project’s product or service Activity 6: A stakeholder management plan is prepared and used for key stakeholders. 4. in context.

if appropriate. equipment. including all project deliverables and the final report Prepare final invoices to the customer Redistribute personnel. preferably through a WBS. Typical records include— n n n n n Contracts Project plan WBS Schedule Customer acceptance documents Activity 9: The project team prepares and executes a closeout plan. including tasks performed by suppliers Notify the customer of project completion and ensure that delivery and installation. is accomplished. with responsibility designated at the work package level Schedule for completion of each task Designation of a closeout manager Typical duties of the closeout manager are to— o o n n Ensure completion of the work. materials.Project Communications Management Level 3: Integrated Activity 8: Project records are collected and archived. The purpose of the closeout review typically is to— n n Assess lessons learned on the project that can be used by other projects Ensure that all aspects of the closeout plan are completed 3-62 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . receive formal customer acceptance Ensure that documentation is complete. and other resources as required Ensure that project records are retained and stored appropriately Ensure that any product support requirements are delivered Close the project’s books o o o o o o n n Required documentation and sign-offs Budget for the closeout tasks to be performed Activity 10: A formal project closeout review is conducted. This plan typically includes— n Description of the tasks to be performed.

Examples of information collected include— n n n n Percentage of documentation completion Official customer sign-off on all product and service deliverables Number of outstanding issues or action items Archiving of final records VERIFICATION Verification 1: Project communications management activities are reviewed regularly to confirm adherence to established procedures. The purpose of these reviews is to confirm that— n The project’s records management efforts conform to the organization’s records management policies Project files are archived according to established policies Documents contain all the required approval signatures n n © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-63 . The purpose of these reviews is to confirm that— n Project communication activities comply with the organization’s stated policies and documented procedures Project communication activities are performed according to the communication plan Communication plans are developed for every project The communication management plan is updated as required Closeout activities are conducted as specified in the project management methodology Noncompliance issues are resolved n n n n n Verification 2: The organization’s records management efforts are reviewed periodically. Examples of information collected include— n n n n n n n n Timeliness and frequency of project review meetings Requests for ad hoc reports in addition to standard production reports Frequency and completeness of performance reports Ease of access to performance reports Ability to tailor reports based on stakeholder needs and requirements Number of changes needed to the project communication management plan Timeliness of analyzing and reporting variances Timeliness of reporting open action items Evaluation 2: Information is collected and used to evaluate the effectiveness of closeout activities.Level 3: Integrated Project Communications Management EVALUATION Evaluation 1: Information is collected and used to evaluate the effectiveness of project communications management activities.

Project Communications Management Level 3: Integrated n Noncompliance issues are resolved 3-64 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model .

and the organization begins to develop a risk management capability and culture of dealing openly with risk. COMMITMENT TO PERFORM Commitment 1: The organization follows a documented procedure for conducting its project risk management activities. Specific estimates are made of contingency and management reserves. Risk communication is stressed. OBJECTIVES Objective 1: Project risk management activities are deployed and maintained. A risk management plan is prepared. risk management is a continuous activity. Previous projects and commercial databases are reviewed to help identify risks.Project Risk Management—Level 3 At Level 3. This procedure typically serves to— n n Promote a general understanding of risk throughout the organization Recognize that risk is an integral and inevitable part of all projects © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-65 . with risk identification addressing both threats and opportunities. Objective 2: An organization risk management policy and standards are established. Contingency planning is an integral part of risk management planning and is integrated as required into other parts of the project plan. Procedure items typically include— n n n Developing a project risk management plan Dealing with risk events as they occur throughout the project Dealing with project risk management from both short-term and long-term perspectives Documenting risk management activity on all projects Viewing risk management as a systematic process Establishing a specific risk management capability and viewing it as an integral part of project management Maximizing the results of possible opportunities and minimizing the consequences of adverse events Contributing to the organization’s historical database of project risk management Ensuring that prioritized risks receive attention Closing out those risks that no longer threaten the project n n n n n n n Commitment 2: The organization follows a documented procedure that establishes direction and responsibility for the risk management process.

when managed professionally. Items typically covered in project risk management training include— n n n n n n n n n n n n n n n n n n n n n n n n Role of risk management in project management Components of risk Risk characteristics Project manager’s and project team members’ roles in risk Risk identification guidelines Categorizing risks Risk identification tools and techniques Risk analysis approaches Using a risk and opportunity assessment model Prioritizing risks Developing risk responses Preparing a risk management plan Risk reassessment Documenting risk results Conducting a risk identification interview Decision-tree analyses Calculating expected monetary value Simulations such as Monte Carlo analyses Estimating relationships Network analysis Life-cycle cost analysis Probability and impact analysis Comparative risk ranking Using filtering to prioritize risks Ability 2: Project managers and team members receive training in risk communication so that information on project risks is presented to management in a usable format.Project Risk Management Level 3: Integrated n n Clarify terminology to promote effective risk communication Provide support for an analytical and quantitative approach to project risk management Ensure that risk taking. Risk communication topics typically covered include— n n n When to identify risks When to report risks. and to whom When to execute risk response strategies 3-66 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . provides opportunities to maximize benefits for all concerned Ensure that identified risks are owned by specific individuals n n ABILITY TO PERFORM Ability 1: Project managers and team members receive training in project risk management.

typically the project manager and sponsor Includes these typical elements: o o o o o o n n n n n Summary list of all risks identified All completed risk analysis worksheets Detailed response strategy for each major risk to be tracked List of who is responsible for tracking and resolving each risk Schedule to review the plan to see whether updates are needed Risk result evaluation and documentation process to evaluate effectiveness of risk response strategy implemented © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-67 . The responsible individual monitors the status of the risk event until closure. and developments in his or her risk area. as appropriate Risk responsibilities typically are allocated as follows: o Each risk included in the risk management plan is assigned to a specific individual to track the risk and resolve it. o o o n Describes how risk identification and assessment will be performed throughout the project Describes how contingencies and reserves are allocated Documents the assumptions and constraints that may affect the project team’s effectiveness Is used by the project team throughout the project to demonstrate awareness of the importance of risk management and to prepare for responding to risks Is approved by appropriate project personnel. The responsible individual advises the project manager on the actions taken. this plan may be a stand-alone document or part of the overall project plan.Level 3: Integrated Project Risk Management ACTIVITIES PERFORMED Activity 1: A documented project risk management plan is developed and used by the project team as the basis for performing the project risk management activities. Risks are assigned to individuals based on specific expertise. effectiveness of risk response strategies. The project risk management plan— n n n Is used as the basis for performing the project risk management activities Documents the procedures used to manage risk throughout the project Covers who is responsible for managing various areas of risk and the steps to escalate risk management activities.

3. 3-68 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . evaluation of the tools and techniques is based on— n n n n n n Input data requirements Customization of output reports Resource requirements: o Implementation cost o Facilities and equipment o Implementation time o Ease of use in terms of level of training and education required o Project manager oversight and involvement Reliability Accuracy Level of detail Activity 4: Risk triggers are identified for all major project risks. The project risk management plan is updated as required. Risk triggers are an output of the risk identification process. 1. Activity 3: Risk management tools and techniques are selected and used based on the expected level of risk to the project. 3. Activities performed are monitored and tracked against the plan.Project Risk Management Level 3: Integrated Activity 2: The project risk management activities are performed in accordance with the project risk management plan. 2. Risk triggers are identified events that indicate the need for reassessing risks or initiating mitigation action to reduce risks to acceptable levels. Examples of tools and techniques include— n n n n n n n n n n n n n n n Risk and opportunity assessment model Checklists identifying sources of risk Flowcharting Risk-oriented interviews with stakeholders and technical experts Using analogies with previous projects and assessing lessons learned Evaluation and review of all the project plans Project templates Decision-tree analyses Expected monetary value Simulations such as Monte Carlo analyses Estimating relationships Network analysis Qualitative analysis Life-cycle cost analysis Risk management software Typically. 1. The purpose of the risk trigger is to minimize the impact of a risk by detecting it and taking action early in the process to deal with it. Corrective actions are taken as required. 2.

Responses used to address specific risk events. A risk reporting system is established as part of the project management information system. Examples of items typically included in this log are— o o o o o o o Risk identification number. 2. A risk analysis and tracking log provides a format for tracking and monitoring project risks. 4. Lessons learned are prepared in response to past incidents to facilitate future planning. such as the WBS number Brief description of the risk Effect of the risk on the project Probability that the risk will occur Expected monetary impact of the risk Value assigned to each risk as a result of prioritization Individual responsible for determining the action necessary to respond to the risk © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-69 . 5. The risk response strategy selected is analyzed to determine whether its use lowers the probability of occurrence or impact of a risk event. 1.Level 3: Integrated Project Risk Management Activity 5: Project risks are tracked. The risk reporting system— n n Assembles risk data for project management use Enables risks to be accessed and brought to the attention of the project manager and team members Uses information to prioritize risks for management and reporting purposes Is used to review risks at regular intervals and to report risk status Typically contains the following: o o o o o o o o o n n n Risk description Risk identification number WBS reference Risk owner information Risk impact estimate Risk probability estimate Risk trigger indicator Risk response strategy Risk priority listing 3. and responses to those risks are analyzed for their effectiveness. and the effectiveness of those responses. become part of the project files and the organization’s historical database.

Sources of new risks are continually reviewed. 4. 1. Risk response strategies are reassessed in terms of successes and failures. Evaluations take into account the fact that— o o o Risks usually do not exist in isolation Single risk event may cause multiple effects Opportunities for one project stakeholder may be a threat for another stakeholder Activity 6: Risks are reprioritized as additional information becomes available. more specific information may be available to justify reprioritizing risks. As the project progresses. events. This includes— o Estimates made in earlier project phases to have a broader range than those made later in the project Outcomes specified as continuous or discrete functions o 7. 2. impacts. 5.Project Risk Management Level 3: Integrated o o o o o Specific action that when taken will respond to the risk described Estimated cost to respond to the risk Target date for completing the response Actual date when the response was completed Actual cost of the response 6. Examples of sources include— o o o o Customer changes Technology changes Organizational changes Resource changes 3. Risks are reassessed in terms of probabilities. Estimates of probabilities and value are updated as anticipated risk events either occur or fail to occur. Risks identified are reviewed throughout the project to ensure that the risks and the project environment have not changed. and tolerance for the risk. 3-70 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . A range of outcomes for the major risks is provided. Risk interactions are evaluated. 6.

an allocation of cost and schedule allowance held in reserve to be spent only with the emergence of specific risks. Risk information is communicated properly to decision makers. Examples of information collected include— n n Number of workarounds needed Team’s ability to estimate risk impact—actual risk impact as compared to estimate Team’s ability to identify risks and effectively mitigate them Amount of risk transferred to.Level 3: Integrated Project Risk Management Activity 7: Risk information is presented in a usable format to management. typically more than 50 percent. is established. Guidelines are provided to project teams on executive management’s requirements for presenting risk information and the needed supporting information to assist in making decisions. of occurrence Providing an allowance for inaccuracy in estimates Providing an allowance for uncertainty that comprises risk contingency costs Assessing the target profit or the maximum level of profit assigned by the organization for the type of project under way n n n EVALUATION Evaluation 1: Information is collected and used to evaluate the effectiveness of the project risk management activities. Risk information is documented thoroughly. Terminology used to present risk-related information is clear and unambiguous to ensure common understanding. 2. 1. Activity 8: A risk budget. Preparing a risk budget typically includes— n n n Estimating the overall project costs Determining the cost of risk response strategies Determining the contingency for those risks with a high probability. Information about risk is presented clearly and consistently. and contingency fund expended in responding to risks Actual cost of mitigating strategies. 3. or shared with. 4. as compared to estimated cost Assessment of whether the selected mitigation strategy lowers the probability of occurrence or impact of the risk event n n n n n © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-71 . suppliers and contractors Contingency reserve established. 5.

Project Risk Management Level 3: Integrated VERIFICATION Verification 1: Project risk management activities are reviewed regularly by the project manager and other responsible individuals. and managing risks Documentation is complete so that lessons learned can be used by other project managers in the organization Noncompliance issues are resolved n n n n n n n 3-72 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . reporting. The purpose of these reviews is to confirm that— n A risk management plan is developed for every project in accordance with the project management methodology Project risk management activities are performed according to the risk management plan Risks are reassessed and reprioritized throughout project life cycle Risk tracking and reporting are conducted according to the organization’s procedures and the risk management plan Risk funds are established for every project All project team members accept responsibility for identifying.

This procedure typically specifies that— n Partnering is used as appropriate to improve communication between buyer and seller and to reduce contract disputes and claims The objective is to resolve contract conflicts professionally and without rancor The organization strives to ensure early project manager involvement in the procurement process.Project Procurement Management—Level 3 At Level 3. Specific processes are in place for either perspective. the prospective project manager is part of the proposal development process. the project manager is a member of the evaluation team and participates in preparing the statement of work and the evaluation criteria. COMMITMENT TO PERFORM Commitment 1: The organization follows a documented procedure governing project procurement planning. OBJECTIVES Objective 1: Project procurement management activities are deployed and maintained. Objective 2: Project managers work in partnership with contract managers and suppliers and subcontractors. Objective 4: A process for selecting suppliers and subcontractors is established. This procedure typically specifies that— n Project procurement management plans address all areas of the proposed procurement Procurement planning documentation is prepared before issuing the solicitation Responsibility and accountability are clearly established for project procurement management Planning documentation is maintained throughout the acquisition process n n n Commitment 2: The organization follows a documented procedure to foster partnerships in the procurement management process. If the organization is the buyer and is reviewing proposals from suppliers and subcontractors. If the organization is the seller and is submitting a proposal. from inception to contract closeout n n © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-73 . Either process requires that the project manager work in partnership with the procurement or contracting department. Objective 3: Contract change control is an established and managed process. project procurement activities are based on two perspectives—that of the buyer and that of the seller. as well as selecting suppliers and subcontractors.

3. This procedure typically includes— n n n n n n Means by which the contract may be modified Approval levels needed to authorize changes Change notifications Confirmation of all oral changes in writing Documentation requirements for changes Methods for resolving disputes ABILITY TO PERFORM Ability 1: Adequate resources are provided for project procurement management activities. Planning documentation may be in a single document or in separate documents. The list is made available to all project managers. Ability 2: The organization maintains a list of qualified vendors. 3-74 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . Items typically covered in the orientation include— n n Authorized persons to negotiate and approve contract changes Notification requirements of any action or inaction by another party to the contract that does not conform to the contract terms and conditions Procedures to follow to ensure that all actions comply with authorized changes Documentation requirements for all changes n n ACTIVITIES PERFORMED Activity 1: A documented procurement management plan is developed and used by the project team as the basis for performing the project procurement management activities. depending on project needs. Individuals experienced in procurement management are made available. this plan may be a stand-alone document or part of the overall project plan. 1. Needed support and guidance are made available. This may be done through— o o Identification of previous suppliers Receipt of supplier proposals 1. Adequate funding is made available. 1. 2. Ability 3: Project team members receive an orientation on contract change management.Project Procurement Management Level 3: Integrated n An effective working relationship between contract managers and project managers is considered vital to achieving strategic business objectives Commitment 3: The organization follows a documented procedure for contract change control.

Level 3: Integrated Project Procurement Management Typical items in a project procurement plan include— n n Objectives of the procurement Assumptions and constraints © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-75 .

Project Procurement Management Level 3: Integrated Examples of assumptions and constraints include— o o o Availability of funds Availability of multiple providers Actions the project team members can take without consulting the procurement organization n n Type of contract to be used Roles. Corrective actions are taken as required. 3. 2. and authority include that— o Project managers and project team members know the procurement actions they can handle without involvement from a contract manager Specific authority to bind the organization legally is known Ultimate responsibility for each step in the supplier selection and contract administration process is known Authority to direct any changes to the contract is known Authority to direct the supplier in any aspect of performance is known Ways to foster effective interaction among contract managers and project managers are developed and implemented o o o o o n n Management of multiple providers Coordination of the procurement with other aspects of the project. 3-76 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . and the project team Typical roles. The project procurement management plan is updated as required. such as scheduling and cost Risk identification Master schedule for the acquisition Performance measurements for the progress of the acquisition Responsibilities and a timetable for the preparation of independent estimates if needed as evaluation criteria n n n n Activity 2: The project procurement management activities are performed in accordance with the project procurement management plan. 1. responsibilities. the project manager. Activities performed are monitored and tracked against the plan. and authority of the procurement organization. responsibilities.

and maintained according to the contract change control procedures. cost. agreed to.Level 3: Integrated Project Procurement Management Activity 3: The project manager or a project team member participates actively throughout the project procurement management process. and schedule. 1. The impact on existing commitments is determined. 1. or activities resulting from changes in contractual requirements are addressed. and schedule Documented Communicated to the appropriate groups and individuals Tracked to completion 3. work products. approval for any additional expense and time is received before initiating any change. Typical items in the change request include— © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-77 . Activity 5: A modification to a supplier’s contract is prepared. cost. The project manager and the contracts manager routinely coordinate activities throughout the process. reviewed. Activity 4: The project team identifies all changes to the contractual requirements for their impact on performance. Examples of changes include— o Changes to commitments made to individuals and groups external to the buying organization Changes to commitments within the buying organization o 2. An estimate of the effect on cost and schedule is prepared. Typically the changes are— o o o o o o Identified Appraised for potential impact Analyzed for risk and impact on performance. services. The project manager works with the contracts manager during the preaward phase of the contract life cycle. 1. A change request is prepared for each change proposed. Changes to plans. Examples of contributions from the early involvement of the project manager include— o o o Assessing whether cost and schedule estimates are realistic Analyzing risks and opportunities in the project Recommending specific terms and conditions for tailoring the contract to the project goals 2. and changes in commitments are negotiated as appropriate.

contract management. 1. procurement official. 2. The lessons-learned summary typically includes— o Executive summary containing a brief description of the background. financial management. and the drawing number Supplier authorization and date Buyer disposition • • • Approved Suspended Disapproved o o o Buyer authorization Change requests may include— o o o Modifications to the terms and conditions of the contract Modifications to the description of the product or service to be provided Decision to terminate the contract 2. Typical items in the contract change log include— o o o o o Change number Description Date requested Date approved Effective date Activity 6: Information from each procurement is archived for future use. and relationship management o o 3-78 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . risk management. including any proposed changes to tools or techniques used in the process Additional summaries describing experience and recommended process improvements for technical performance. highlights. and recommendations Technical performance summary describing experience and recommended process improvements. the statement of work. the specification number. A database of lessons learned is developed and maintained.Project Procurement Management Level 3: Integrated o o o o Change request number Date requested Description of the proposed change and reason for the change Affected documents such as the WBS. A lessons-learned summary that describes the major positive and negative aspects of the contract is prepared by the project manager. and project team. schedule performance. A contract change log is maintained.

Level 3: Integrated Project Procurement Management 3. Lessons learned are used to alert other project teams to potential problems and to suggest effective methods of responding to risks. and procedures A procurement management plan is developed on every project The procurement management plan complies with the project management methodology Procurement activities are conducted according to plan The contract manager and project manager coordinate activities Lessons learned are documented Compliance with established change management procedures exists Required documentation is maintained Noncompliance issues are resolved n n n n n n n n © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 3-79 . EVALUATION Evaluation 1: Information is collected and used to determine the effectiveness of the procurement management activities. policies. Examples of information collected include— n n n Progress according to the procurement management plan Number of claims or disputes Number of cases in which conflict between the project manager and the contract manager requires escalation Number of cases in which conflict between the project manager and the supplier or subcontractor requires escalation Number of billing or payment issues n n Evaluation 2: Information is collected and used to assess the effectiveness of the organization’s contract change management procedures. Examples of information collected include— n n n n n Time required to perform contract changes Number of outstanding change requests Effect of each change on the overall contract price Effect of each change on the overall schedule Effect of contract changes on project profitability VERIFICATION Verification 1: Project procurement management activities are reviewed regularly with executive management. The purpose of these reviews is to confirm that— n Procurement planning activities conform to the organization’s stated values.

portfolio management is practiced at the executive level as each project is assessed for its overall value to the organization. The focus at Level 4 is to (1) define a series of metrics that are meaningful and that can be used over a specific period of time to gauge the progress made in implementing project management processes and (2) determine the effectiveness of such processes as they are manifested through project performance. Projects support and link to the organization’s strategic plan. further distinguishes the Level 4 organization from lower levels of maturity. and are integrated with. such openness alleviates the concerns of those who raise risk issues that they will be viewed as “doomsayers” or “pessimists. the capability of the organization to accomplish projects in accordance with project objectives and constraints increases. and subcontractors—are identified and participate fully as members of the project organization. The organization recognizes and now maximizes the involvement of all project stakeholders.Level 4: Comprehensive Committing to a Project Management Culture At Level 4. the ongoing operations of the organization. Level 4 maturity is also attained through the widespread participation and commitment of all project stakeholders in achieving project objectives.” Risks are made transparent. accordingly. The organization benefits by this approach to risk because key risks are brought to the attention of all those who need to know of any potential impediments to project accomplishment. They receive an orientation on the project management methodology used by the project team so that they know what their role is relative to project accomplishment and to the manner and method in which project performance will be completed. Internally. MATRIX-BASED PERFORMANCE The Level 4 organization sets quantitative objectives to ensure the achievement of specific project management process and product objectives. suppliers. The Level 4 organization supports a risk management culture that encourages the open dialogue and communication of risk issues. functional managers recognize their role as stakeholders. allowing all stakeholders to understand the decisions made to respond to key risks. leveraging their individual and collective expertise in project performance. Where management actively supports the development of project management as a core discipline and profession. and mentoring activities. In addition. and project management teams and functional organizations understand how projects relate to. project management is an integral part of each person’s responsibilities. External stakeholders—primarily customers. PROFESSIONAL CORE COMPETENCY The establishment of project management as a professional core competency. and contribute to the evolution of project management processes and optimization of the project management practice. PARTICIPATION AND COMMITMENT OF ALL PROJECT STAKEHOLDERS RISK MANAGEMENT CULTURE © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 4-1 . professional development plans. Practices are well understood and followed. including a career path. support for project management processes exists throughout the organization.

it focuses on three areas that are required to institutionalize project management in any organization: project integration management. project human resource management. 2.Level 4: Comprehensive INSTITUTIONALIZATION OF PROJECT MANAGEMENT At Level 4. and 3 to identify characteristics at each of the nine PMBOK™ knowledge areas. ProjectFRAMEWORK™ departs from its approach at Levels 1. PMBOK™ is a trademark of the Project Management Institute 4-2 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . rather. and project risk management.

best practices in project management are established.Project Integration Management—Level 4 The Level 4 organization recognizes and supports project management at all levels because projects are viewed as essential to the growth of the organization. reported. The Level 4 organization works to ensure that its projects are integrated with and support its ongoing operations. the organization has developed and uses integrated systems. and quantitative objectives for improving the effectiveness of its project management processes are identified. and practices to improve financial performance Viewing projects as essential to the survival and growth of an organization Ensuring that project management is a key factor that contributes to the organization’s strategic goals Maintaining and using a comprehensive project management methodology n n n Commitment 2: The organization follows a documented procedure for developing capabilities and competencies in project management. Typical items in this procedure include— n Using project management tools. COMMITMENT TO PERFORM Commitment 1: The organization follows a documented procedure demonstrating its commitment to project management. available to all project stakeholders. use of advanced techniques is encouraged as appropriate. which support projects and ongoing operations. Partnering is fostered at all levels. Objective 2: Quantitative objectives for improving the effectiveness of project management processes are established. This procedure typically specifies that— n The organization is committed to continuously improving its overall project management performance by improving those capabilities and competencies that focus on the discipline Quantitative objectives are defined to improve performance in project management Progress toward performance is quantitatively analyzed. The project management methodology is ingrained in the organization and used consistently in all projects. The PMO’s focus is on project management improvement and enhancement. OBJECTIVES Objective 1: Project work is integrated with the ongoing operations of the performing organization. In addition. both internally and externally. processes. and monitored Best practices are identified and implemented in the organization n n n © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 4-3 . Objective 3: Integrated systems are used by project stakeholders.

Both systems have the ability to separate controllable and uncontrollable costs for estimates and budgets. 3. Commitment 4: The organization follows a documented procedure that supports the development. and maintenance of integrated systems. In small-to-medium-sized organizations.Project Integration Management Level 4: Comprehensive Commitment 3: The PMO is aligned organizationally at the senior executive level. both internal and external to the organization. implementation. The projects’ PMIS supports and interfaces with the organization’s financial management systems. A senior executive has direct oversight of the PMO. to further the performing organization’s commitment to partnering Need to minimize to the greatest extent possible the use of duplicate or manual data entry Development and use of a common scheduling process by project stakeholders Development and use of an integrated cost collection and reporting system by project stakeholders Continuous improvements and enhancements of the integrated systems in response to lessons learned n n n n Commitment 5: The organization follows a documented procedure demonstrating its commitment to partnering. The head of the PMO may be at the vice president level of the project management career path. these systems in turn support both the management of projects and of ongoing operations. 2. Items in this procedure typically include— n Viewing partnering as essential at all levels for an effective project management practice Using partnering as a way to do business based on openness. Items in this procedure typically include— n Importance of integrated systems to support both projects and the organization’s ongoing operations o The projects’ PMIS supports and interfaces with the organization’s accounting systems. and risk sharing Supporting partnering workshops to facilitate their use in the organization n n 4-4 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . 1. the PMO reports to the director of the organization or deputy director (or equivalent title). trust. and the procedure also supports the use of these systems by project stakeholders. o o n Use of these systems by project stakeholders. teamwork.

Adequate funding. and risk sharing by all stakeholders Using partnering as a way to ensure that all parties have a thorough understanding of the project Using a partnering agreement to formalize the intent of partnering and to reduce misunderstandings.Level 4: Comprehensive n Project Integration Management Resolving differences as soon as they occur ABILITY TO PERFORM Ability 1: All members of the organization receive an orientation in project management. Requirements for integrated systems are developed jointly by the information technology staff and project stakeholders. Individuals with expertise in information technology are made available. Feedback is solicited from personnel throughout the organization on desired project management process improvements. Support for implementing improvements in integrated systems is made available. Orientations may be either formal or informal. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 4-5 . and litigation Conducting a partnering workshop Resolving differences on a daily. 2. Ability 4: Adequate resources are provided for integrated systems development. as appropriate. Items in the orientation typically include— n Fostering partnering as a way of doing business based on trust. 2. issue-by-issue basis Obtaining feedback on the usefulness of partnering from involved participants n n n n n Ability 3: Adequate resources are provided for project partnering initiatives. 1. Funding is made available for the integrated systems development efforts. Ability 2: Project team members receive an orientation in partnering. teamwork. for the information technology staff. openness. o 2. Individuals experienced in partnering are made available. 3. support. 1. 3. claims. Orientations discuss the benefits of project management. and guidance are made available. 1. o Project management training is provided.

and functional managers in the performing organization with the project manager. 2. sponsor. conducted. Life-cycle cost analyses are prepared to assess costs and cost risks associated with critical decisions. 3. 2. Roles and responsibilities are defined so that each participant understands the actions to be taken to resolve differences and prevent their escalation to higher levels. 1. 2. Advanced and alternative tools and techniques are used. 4. Activity 2: Projects are selected and managed as a portfolio supporting business strategic objectives. and metrics are developed and applied to evaluate effectiveness.Project Integration Management Level 4: Comprehensive ACTIVITIES PERFORMED Activity 1: The PMO coordinates the project management initiatives. Partnering is used and fostered with internal and external stakeholders. 3. and evaluated. Activity 3: Partnering is used on projects both internally and externally. Project integration with organizational business strategies is managed. Partnering is agreed to by customers. 1. Life-cycle cost models are prepared for use throughout the organization and can be modified to meet the needs of individual projects. 2. 1. and project team. Project selection and prioritization is a consistent. Project management training requirements are identified. 4-6 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . 3. 4. and process expertise is provided to project managers and other stakeholders. 1. Partnering plans are prepared by the project team and the involved stakeholders. 5. 3. Life-cycle cost models are used both for projects at their inception and for projects in progress. Project management methodology use and improvement are managed. Initial meetings are held with the project team and other stakeholders to begin the partnering effort. Resource use is coordinated through the integrated management of projects. Oversight of multiple. Activity 4: The organization uses life-cycle cost analyses for major projects. suppliers. and training programs are arranged. recurring event aligned with business objectives. Project performance reporting is integrated so that similar information is compiled for every project. 4. related projects is coordinated.

3.Level 4: Comprehensive Project Integration Management Activity 5: Multiple techniques are used for activity-duration estimating. The project audit identifies successes that warrant transfer to other projects in the performing organization and failures to avoid in future projects.and activityspecific checklists. are conducted to calculate multiple durations with different sets of assumptions. o o o Activity 6: Customized estimating models are developed and used. Learning curves are applied to recurring tasks. Expert judgment. and most likely time estimates are determined. 3. Actual productivity data are used as a basis for resource estimates. 2. guided by historical information. The project audit may be conducted at any time during the project’s life cycle. and analogous estimating to meet the specific needs of the organization’s projects. and a confidence interval can be used to specify the probability that the activity will be completed within a certain range of time. such as the use of Monte Carlo analyses. 1. Standard deviation can be computed for each activity. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 4-7 . Best practices are communicated throughout the organization to become part of the continuously evolving project management methodology. Optimistic. The organization contributes to the development of industry. Simulations. Activity 7: Project audits are conducted on selected projects to provide an objective view of project performance and the use of project management practices. 2. Activity 8: The organization develops and maintains a repository of best-practice techniques by knowledge area for use on its projects. Analogous estimating is used if there is a limited amount of detailed information available about the project. 2. 4. parametric models. 1. 1. is used. Estimating models use a mix of historical data. pessimistic. Typical examples of its application include— o Probabilistic activity time estimates aid in determining the probability that a project can be completed by a given date. PERT is used to calculate project duration. The project audit serves as a structured review of the project management processes. 3. 2. A confidence interval can be specified for the critical path. 1.

5. 2. Annual project expenditures are measured. or annualized project expenditures. Trends in the organization’s project management capabilities are compared quantitatively to its development goals. The PMIS generates timely variance and status reports. Types of costs that might be considered annual project expenditures include— o o o o 2. Estimating models and other project tools and templates are automated on the PMIS. financial management. and upgrade costs (annualized) Support staff costs Project management training (annualized) Certification expenses Recruitment and hiring expenses Travel. and human resource management systems. Information collection. 4-8 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . 1. software acquisition. 1.Project Integration Management Level 4: Comprehensive Activity 9: The organization establishes measurable objectives for use in improving its project management capabilities. Profit and profit margins can be associated with project operations because the accounting systems permit the identification of project-related profits. and networking expenses Moving and storage costs and temporary office expenses Utility expenses o o o o o o o o o o 3. procedures. and reporting strategies to assess project management capabilities are developed. Activity 10: The organization-wide PMIS interfaces with the organization’s accounting. and tools (annualized) Computer hardware. Salaries and benefits of project management personnel Project management consultant expenses Project management systems. and coordination expenses Supplies and material costs Rent and other facility management expenses Telephone. meeting. 3. 4. If the capabilities differ significantly from goals. annual project revenues. action is taken to improve the capabilities. fax. analysis. conferencing. maintenance. Automated links supply the PMIS with actual labor and other expense information in a real-time fashion.

All stakeholders use a common project time management software system. 2. 1. EVALUATION Evaluation 1: Information is collected and used to evaluate the level to which project work is integrated within the organization. 1. and schedule Number of standard processes that have been developed and continuously improved Number of quality improvement activities conducted Ease of sharing best practices throughout the organization Ease of use and accuracy of estimating models Ease of use and accuracy of established tools and templates Frequency of project management methodology reviews. Examples of information collected include— n n n Amount of project work versus nonproject work Ease of obtaining and retaining resources Benefit of project work to the organization Evaluation 2: Information is collected and used to determine the status of the organization’s best practices in project management. Activity 11: Project stakeholders use a common scheduling process. scope. Activity 12: Project stakeholders use an integrated cost collection and reporting system.Level 4: Comprehensive Project Integration Management 6. The organization uses a single and integrated reporting system that minimizes manual data entry. Project stakeholders use a common software system for cost management. 2. for possible inclusion with improved techniques n n n n n n © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 4-9 . All stakeholders incorporate schedule changes into the system through a common process. 3. Examples of information collected include— n n n Progress against goals in terms of project management capabilities Number of enhancements made to the project management methodology Number of standard models that have been developed—for cost. Project stakeholders input information directly into the cost management system. Project stakeholders receive reports directly from the cost management system as required.

Examples of information collected include— n n n Ease of inputting and retrieving information from the systems Project accounting integration within the organization’s financial system PMIS’ degree of integration with the organization’s financial. The purpose of these reviews is to confirm that— n n Quantitative objectives have been established for project management The entire organization is committed to achieving those objectives 4-10 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model .Project Integration Management Level 4: Comprehensive Evaluation 3: Information is collected and used to evaluate the capability and ease of use of the organization’s integrated systems. The purpose of these reviews is to confirm that— n n n n Best-practice techniques are communicated throughout the organization Best-practice techniques are used by projects in the organization Lessons learned are documented and used throughout the organization Noncompliance issues are resolved Verification 3: Reviews are conducted to confirm the establishment of and compliance with clear and measurable improvement objectives for project management processes. accounting. The purpose of these reviews is to confirm that— n n Decisions made support the management-by-projects policy Project results have a strategic fit in the design and execution of future products and services Projects under way contribute to the organization’s success Noncompliance issues are resolved n n Verification 2: The organization’s effectiveness in implementing best-practice techniques is periodically reviewed. and human resource management systems Number of procedures requiring manual or duplicate data entry compared to number of automated procedures Number of organizations providing input or receiving output from the systems Time required to input data into the system Time required to prepare reports from the system Ease of distributing information n n n n n VERIFICATION Verification 1: Reviews are conducted to confirm the effectiveness of integrating project management into the ongoing operation of the organization.

The purpose of these reviews is to confirm that— n PMIS and the systems it interfaces with are accessible throughout the entire organization PMIS is integrated and shares information with other organizations’ databases PMIS is accessible to all project stakeholders Estimating models and other project tools and templates are automated as part of the PMIS Noncompliance issues are resolved n n n n © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 4-11 .Level 4: Comprehensive n Project Integration Management Processes and models are constantly reviewed and revised according to an established continuous improvement process Individual performance goals are congruent with the organization’s objectives Noncompliance issues are resolved n n Verification 4: Reviews are conducted to confirm the usefulness of the integrated systems to the organization.

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The knowledge. Personal development plans are prepared for project team members. and competencies required to perform defined project management work tasks are identified. skills. and competencies in project time management include— o Knowledge of project management processes © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 4-13 . Examples of knowledge.Project Human Resource Management—Level 4 Project management is established as a core professional competency in the Level 4 organization. Knowledge is defined as the information and understanding that someone needs to perform a task successfully. skills. and to facilitate career decisions. COMMITMENT TO PERFORM Commitment 1: Project management core competencies for each project management or project team position are established and used. A project position matrix is developed for knowledge. and competencyanalysis activities that typically includes— o o o 2. skills. Skills may involve behaviors that directly accomplish the task or that provide the support of or coordination with others who help to accomplish tasks. the Level 4 organization also establishes a mentoring program in project management to provide personal support and guidance to other individuals or groups. skills. and competency profiles for project personnel. OBJECTIVES Objective 1: Project management is established in the organization as a core professional competency. skills. A competency is a characteristic that is causally related to effective. Objective 2: A project management mentoring program is established. The organization maintains a current inventory of project management knowledge. and competency-analyses activities are evaluated to identify any interventions needed. The competencies the organization uses to perform project management functions in each of the nine project management knowledge areas are identified for each project position. 3. To support this commitment to project management. 1. and competencies in project management. superior performance as measured by objective criteria in a job or situation. The results of knowledge. and competencies needed Resources and effort required 4. skills. to assist in dealing with difficult situations. Project management processes and work tasks to be performed Knowledge. This mentoring program supports the Level 4 organization’s commitment to project management and its continual improvement. skills. Skills are defined as the performance activities that must be developed to perform a task or activity successfully. Mentoring is considered essential to help develop knowledge.

Commitment 2: The organization follows a documented procedure for conducting project management mentoring activities. A knowledge. and competency profile is defined for each project management position in the organization. This procedure typically specifies that— n n n Mentoring activities serve the business objectives of the organization Mentoring activities are encouraged but not imposed on individuals Mentoring activities are instituted where appropriate to provide support to project teams Selection. Project management position titles are assigned to project managers and project team members.Project Human Resource Management Level 4: Comprehensive o Skills in activity sequencing such as precedence diagramming method. and assignment of mentors are completed according to requirements Conditions under which mentoring relationships may be established. changed. or terminated are stated The mentoring program is evaluated periodically to ensure its effectiveness and to identify improvements n n n Commitment 3: A position is assigned responsibility for coordinating mentoring activities throughout the organization. skills. 6. arrow diagramming method. training. and system dynamics models Skills in activity duration estimating Skills in mathematical analysis techniques for schedule development such as critical path method (CPM) and Program Evaluation and Review Technique (PERT) Skills in duration compression techniques such as crashing and fast-tracking Knowledge of resource-leveling heuristics and simulation approaches Skills in using project management software Knowledge of change control procedures Skills in performance measurement techniques o o o o o o o 5. Examples of this organizational position include— n n PMO staff Human resource management staff 4-14 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . conditional diagramming methods.

Time is made available for analyses activities. or project teams Support for evaluation of the mentoring program 4. and skills. and the tasks performed by the project manager and team members. Examples of mentoring skills training include— n n n n n n n n n n n Conducting a mentoring relationship Listening actively Listening empathetically Providing guidance and advice Serving as a role model Solving problems Resolving conflict Using performance improvement methods Advising groups Building teams Evaluating mentoring activities Ability 5: Individuals or project teams to be mentored receive an orientation to the mentoring program. so that a career path can be developed for project personnel. 2. skills. Ability 2: Adequate resources are provided for analyzing project management knowledge. 3. 2. and competencies. Experienced individuals are made available to serve as mentors. 3.Level 4: Comprehensive Project Human Resource Management ABILITY TO PERFORM Ability 1: The organization has identified the types of projects it executes. Time is made available for mentors and individuals to engage in mentoring activities. Experienced individuals are made available. individuals. Other resources to support mentoring activities are made available. techniques. Ability 3: Adequate resources are provided for mentoring activities. 1. and competency profiles for project personnel. Examples of topics for the mentoring program orientation include— © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 4-15 . skills. 1. Funding is made available to maintain a project management inventory of knowledge. Ability 4: Individuals selected to serve as mentors have been trained in relevant mentoring objectives. Examples of resources needed to support the mentoring program include— o o o o Training for mentors Orientation for individuals or project teams to be mentored Availability of an advisor for mentors. Funding is made available to support mentoring activities.

Graduated career opportunities include not only promotion opportunities within the organization but also career broadening or lateral assignments to gain experience or to increase the individual’s capabilities in project management. and competencies to enhance performance in the current assignment Skills needed to progress toward career objectives o 4-16 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . Changes in work methods. and competency profiles are made according to a developmental plan. Activity 3: A personal development plan is prepared and maintained for each project team member. 1. Available positions on project teams are identified. skills. Typical changes may include— o o o 2. skills. 1. 3. 1. and competencies Activity 2: Project manager entry-level and career-path requirements are developed and publicized. and competency profiles are periodically analyzed against the actual work of project personnel to determine their relevancy to assigned tasks. and competencies need to be updated. Needed changes to knowledge. The development plan is created jointly between the individual and the manager. Job descriptions for project management positions are prepared and used to foster career progression. skills. and competency profiles are prepared and reevaluated on a periodic or event-driven basis. skills. and people in the organization are aware of possible opportunities. skills. or technologies are analyzed on an eventdriven basis to determine whether related knowledge. skills. and competencies Changing existing knowledge. Examples of information in the personal development plan include— o o Career objectives Knowledge. 3. Knowledge. skills.Project Human Resource Management Level 4: Comprehensive n n n n n Objectives of the mentoring program Attributes of an effective mentoring relationship Expectations for mentoring relationships Roles to be fulfilled in mentoring Ways to handle problems or inefficiencies in the mentoring relationship ACTIVITIES PERFORMED Activity 1: Knowledge. skills. and competencies Changing the number of people that will need to possess particular knowledge. processes. 2. Developing or acquiring new knowledge.

© ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 4-17 . Opportunities for personal development other than training are identified.Level 4: Comprehensive Project Human Resource Management o Plan for developing the skills required for the potential next assignment 2. 3. The development plan identifies activities and training needs.

Examples of corrective actions include— o o o o Revising the schedule of development activities Changing the development activities Revising career objectives Ensuring that development time is built into the individual’s schedule Activity 5: A discussion is held periodically with each individual to assess the status of professional development activities. Procedures for mentoring functions are tailored to each set of objectives. Individual performance is reviewed periodically and compared with personal development plans. 1. Different types of mentoring relationships may be defined depending on the stated objectives. 1. For example. potential corrective actions are evaluated. The organization establishes objectives for the mentoring program. and competencies needed for current or potential future assignments Career options available o Activity 4: The development activities of each individual are tracked against his or her personal development plan. The organization identifies the project teams to be involved in a mentoring program. 2. and competencies Preparation of specific project manager skills Improved team effectiveness 3. skills. Examples of objectives for mentoring programs include— o o o Development of specific knowledge. The knowledge. skills. 2. and competencies needed to enhance performance in current and future assignments are identified. Examples of elements to be defined for all types of mentoring relationships include how the— 4-18 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . The development plan is updated periodically as changes occur in— o o Individual’s career objectives Knowledge.Project Human Resource Management Level 4: Comprehensive 4. Activity 6: The objectives and structure of the mentoring program are defined. 1. 2. The development discussion can be conducted in conjunction with or subsequent to providing formal performance feedback. skills. When performance deviates significantly from the personal development plan. mentoring activities for project team members may differ from mentoring activities for new project managers.

individuals. or project teams in the program Procedures for becoming a mentor Procedures for acquiring mentoring services Effective ways to terminate the mentoring relationship Orientation and training requirements Activity 8: Mentors are selected. and competencies Ability to provide personal support o o o o o o © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 4-19 . Information to be communicated about the mentoring program may include— n n n n n n Goals and objectives of the mentoring program Positions. Examples of criteria for selecting mentors include— o Experience required to mentor various positions. individuals. 1. and assigned to individuals or project teams. Examples of roles that mentors might fulfill include— o o o o o Role model Personal or project team advisor Knowledge.Level 4: Comprehensive Project Human Resource Management o Roles and responsibilities of the mentor and the individual or project team are defined Mentors will be selected and trained Individuals or project teams will receive orientation on mentoring Objectives of the relationship will be accomplished Program will be monitored and evaluated for effectiveness Expected duration of the mentoring relationship is established o o o o o 4. Criteria are defined for selecting mentors. skills. or project teams Knowledge required to mentor various positions. individuals. or project teams Interpersonal and communication skills Availability Ability to provide a successful role model Commitment to developing individuals’ project management knowledge. and competency advisor Problem solver Expert Activity 7: The mentoring program is communicated to all appropriate individuals or project teams. Roles are defined for mentors to fulfill. skills. prepared for their assignments.

3. Mentors are assigned based on the specific requirements of the project teams. when mentors are used— o o o Project team determines why it requires a mentor Specific goals and objectives for the relationship are delineated Ways to evaluate the effectiveness of the mentoring relationship are specified 2. Both mentors and the individual or project team to be mentored receive appropriate training or orientation on ways to maximize their relationship. The mentor or mentors and the individual or project team establish the basic agreements on which their relationship will develop. 1. Examples of criteria for matching mentors with individuals or project teams include— o o Task. Examples of issues on which they should reach agreement include— o o o o o o What they both expect to receive from a mentoring relationship Whether they will meet on a periodic or event-driven basis What initial goals they want to accomplish through mentoring How they will evaluate their progress How they will conduct their meetings How they will communicate between meetings 4-20 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . Selected mentors are trained in mentoring responsibilities and skills. 3. skills. Candidates who have applied for mentoring assignments are evaluated against the criteria. 4. and those who are qualified are selected. Typically.Project Human Resource Management Level 4: Comprehensive o o Ability to work with project teams Commitment to developing and guiding others 2. and competency needs of the individual or project team to be mentored Personal development needs of the individual or project team to be mentored Common backgrounds Personalities or interest Geographical considerations o o o o Activity 9: Mentors and individuals or project teams to be mentored establish a mentoring relationship. or career experiences Knowledge. Specific mentoring goals are established for every individual or project team whenever mentors are used. position.

Level 4: Comprehensive Project Human Resource Management 4. The mentor will provide feedback and guidance to the individual or team in a timely manner. skills. Examples of information collected include— n n Number of project managers participating in the career path Availability and accuracy of project management position descriptions Evaluation 3: Information is collected and used to determine the status and value of mentoring activities. and competency descriptions in each profile Timeliness of the inventory Frequency of the use of the information base containing the knowledge. skills. and competency analysis activities are conducted according to plans and procedures. skills. skills. and competency profiles Evaluation 2: Information is collected and used to evaluate the implementation and maintenance of a project management career path. and competency profiles. and competencies in individuals or project teams being mentored Career development of individuals in the program Number of problems identified and improvements made in the mentoring relationships n n VERIFICATION Verification 1: Periodic reviews are conducted to confirm that knowledge. Examples of information collected include— n n n Completeness of knowledge. Examples of information collected include— n n n n n n Number of mentoring relationships established Progress of mentoring activities compared to the mentoring program objectives Frequency with which mentors and individuals or project teams interact Impact of mentoring on project performance Evaluation of program by mentors and mentored individuals Growth of project management knowledge. The purpose of these reviews is to confirm that— © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 4-21 . EVALUATION Evaluation 1: Information is collected and used to assess the usefulness of the knowledge. skills. Verification 2: Periodic reviews are conducted to confirm implementation and effectiveness of the project management career path.

is commensurate with other disciplines Clear information about the project management career path is available Inequities found in project management career progression opportunities are immediately corrected Noncompliance issues are resolved n n n n Verification 3: The mentoring program is reviewed periodically to ensure that it is meeting its intended objectives. by position. The purpose of these reviews is to confirm that— n n Mentoring objectives are established for every mentoring engagement The mentor and the individual or project team to be mentored periodically review their progress toward meeting their objectives Mentoring relationships are voluntary and not imposed on individuals Noncompliance issues are resolved n n 4-22 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model .Project Human Resource Management Level 4: Comprehensive n The career path provides adequate and equal career progression opportunities within the organization Compensation.

Risk management is such an integral part of project management that. Each stakeholder must be aware of the key risks facing the project at any time in its life cycle. rather. OBJECTIVE Objective 1: The organization has established a risk management culture. Such open communication. Commitment 1: The organization follows a documented procedure that supports the development of comprehensive project risk management capabilities. 2. that procedure addresses the— n n n COMMITMENT TO PERFORM Need for risk to receive sufficient attention throughout the organization Emphasis on proactive management of key risks to achieve project objectives Encouragement of open communication throughout the organization regarding project risks Awareness of risks as a major element of all business decisions at all levels of the organization Benefits of project risk management to the organization n n Commitment 2: An organizational position is assigned responsibility for coordinating project risk management activities throughout the organization. 1. their impact. ABILITY TO PERFORM The PMO may be used to fulfill this role. 2. without the attendant fear of being criticized for focusing on what can go wrong in a project. Ability 1: Adequate resources are provided to increase the organization’s competency in project risk management. is the foundation on which a risk culture is built. they are viewed as one. Experienced individuals are made available to support improvements in project risk management. Typically. 1. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 4-23 .Project Risk Management—Level 4 Risk management in the Level 4 organization involves making informed decisions by assessing what can go wrong and the likelihood and severity of the potential impact. Accordingly. in the Level 4 organization. the Level 4 organization promotes a risk management culture that is characterized by direct and open communication with stakeholders regarding project risks. To make informed decisions. and the inevitable trade-offs associated with various risk responses. Funding is made available to support identification and assessment of improvements in project risk management. This role could be aligned with the organization’s strategic planning function. the Level 4 organization practices continuous risk management throughout the project life cycle. they are not viewed as separate and distinct activities.

1. team members. which are assessed during the risk quantification process. Key risk interactions are documented as they are identified by the project manager and team members. The organization recognizes that risks are interdependent. and specific risk response strategies are developed for consideration organization-wide. Activity 2: Risk events that may affect projects throughout the organization are documented. 4. ACTIVITIES PERFORMED Activity 1: The project manager. risk response development. 1. The organization recognizes that different stakeholders have different tolerances for risk. Project estimates incorporate risk. The organization recognizes that potential risk events are seldom applicationarea specific. 2. Trade-offs between performance. risk quantification. 3. The organization’s historical database includes information on sources of risk. 3. The organization emphasizes transfer across projects of experience gained in responding to risks. and risk response control. Training is provided to project personnel in learning risk management practices and techniques and in analyzing organizational data within project history files to extract lessons learned for future projects. and customers are included in the discussions on risk identification. 2. Support is made available for implementing improvements in the organization’s risk management practices. Activity 3: Techniques such as decision-tree analysis and expected value are used to quantify risks. and time are considered as risk responses are assessed. 3. 4. Risk management activities are visible both within the organization and with all project stakeholders. 4-24 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . cost. 4. The objective is to quantify each risk so that the key risks are clearly delineated from minor risks. suppliers. 1.Project Risk Management Level 4: Comprehensive 3. 2. Risk associated both with individual project activities and the project as a whole are assessed.

Contingency reserve is for risks that have been identified in advance of their occurrence. Reserves can include time and money that have been set aside. Risk quantification tools and techniques are evaluated for effectiveness. Management reserve is for risks that are unknown and unknowable to the project stakeholders. according to its experiences on various projects. Management reserve is typically budgeted as a percentage of the total cost or schedule baseline of the project. Risk responses selected are evaluated in terms of effectiveness. Examples of information collected include— n Incorporation of lessons learned into the continuous improvement of risk management Reduction in product or service performance shortfalls Reduction in the need for time or cost escalation Reduction in the occurrence of unexpected catastrophic risks Improvement in project predictability n n n n © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 4-25 . 3. 1. based on a risk assessment. Activity 5: Management and contingency reserves are established for major projects 1. 4. 2. This reserve is used to execute contingency plans. to address project risks that actually occur. as defined in its project management methodology. This reserve is used to execute workaround plans. Activity 6: Independent risk reviews are conducted periodically for major projects. 1. Checklists are maintained by specific application areas within the organization and are reviewed at the end of each project to assess their effectiveness and needed enhancements. 3. 2. 2. Management reserves and contingency reserves constitute the project’s risk budget. not involved with the project but considered expert in the project’s content area. EVALUATION Evaluation 1: Information is collected and used to evaluate improvement in the organization’s risk management capability. and that can be budgeted on an individual-risk basis. 3. The results of the independent assessment—which is not an audit—are shared with the project manager and project team members. A person or persons (perhaps from the PMO). can conduct a review of the project risks to ensure the project team is cognizant of all key risks.Level 4: Comprehensive Project Risk Management Activity 4: The organization continually refines its risk management process. The project’s risk management plan is updated as required.

Project Risk Management

Level 4: Comprehensive

n

Performance of risk management models

VERIFICATION

Verification 1: Periodic reviews are conducted to confirm the status of the organization’s risk management procedures.
The purpose of these reviews is to confirm that—
n

Risk management models are developed according to the organization’s policies and its project management methodology The training conducted includes best-practice efforts and the use of the latest technologies and tools Risk checklists are constantly reviewed for usefulness Project stakeholders are involved in the risk management process The usefulness of the methods and techniques available for risk management are reviewed periodically Lessons learned are incorporated into the risk management models, tools, checklists, and practices Noncompliance issues are resolved

n

n n n

n

n

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Level 5: Optimizing
Targeting Improvements to the Project Management Practice

At Level 5, an organization’s project management methodology operates routinely and projects meet schedule, cost, technical, and quality requirements. Roles and responsibilities in the organization are well understood. Accordingly, this maturity level is characterized by, and focuses on, continuous process improvement. The emphasis at this level is on preventive, not just corrective, actions. Common causes of project problems are documented and tracked throughout the organization so that preventive actions can be taken. The organization focuses on the processes by which project management is practiced, ensuring that any common causes of problems are prioritized and systematically eliminated. It strives to improve its project management processes and further refine them to meet new business challenges. For example, the organization regularly participates in, and is active in, benchmarking forums as a way to continue to generate ideas for improvement and to refine its metrics. It also works to refine and expand expert/knowledge-based systems for decision models. At Level 5, ProjectFRAMEWORK™ is organized according to six objectives, all of which focus on continuous process improvement.

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Objective 1—Level 5
Continuous project management process improvement is established and maintained. COMMITMENT TO PERFORM Commitment 1: Executive management is committed to continuous improvement in project management.

This commitment is demonstrated by—
n

Specifying that project management improvement serves the business objectives and stated values of the organization Viewing continuous improvement as a strategy to manage change in the organization through project management Setting and tracking measurable goals for improvement by adopting innovative practices Directing activities toward improvement in project management knowledge, skills, and competencies Ensuring that individuals involved in project management are able to participate in continuous improvement activities Specifying that all project personnel are expected to participate in the improvement of project management processes

n

n

n

n

n

Commitment 2: The PMO or comparable staff serves as the focal point for and actively sponsors project management process improvement activities.

The role of the PMO is to—
n

Establish the organization’s strategic objectives and plans for process improvement Review and approve the project managers’ process improvement objectives and their process improvement plans Track performance of the continuous process improvement activities against their objectives Maintain a consistent priority focus on process improvement in the face of day-to-day activities and project crises Ensure that process improvement issues are resolved promptly Reward participation in the process improvement activities Select and plan for the implementation of improved practices

n

n

n

n n n

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The plan typically describes— o o o Resources required Work force training needs Quantitative short-term and long-term objectives for project management performance improvement Procedures for— • Oversight of the project management performance improvement activities o 5-4 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . and communication technology Knowledge models 2. Training is provided in continuous process improvement. Time and support are made available for evaluating suggestions and conducting pilot projects. Examples of specialized areas include— o o o o o o o Knowledge. 4. 1. 3. Funding and staff are made available to implement advanced practices.Objective 1 Level 5: Optimizing ABILITY TO PERFORM Ability 1: Adequate resources are provided for continuous process improvement efforts. skills. planning. and supporting initiatives for continuous project management process improvement efforts. Examples of training topics include— o o o o Principles of process improvement Procedures for proposing process improvement Setting and tracking objectives for process improvement Motivation and team building in a continuous process improvement environment Managing technological and organizational change o ACTIVITIES PERFORMED Activity 1: The PMO or other sponsoring function develops and maintains a project management performance improvement plan using a documented procedure. and competencies assessment methods Organizational design strategies Performance enhancement methods Project performance metrics Evaluation methodologies Computer. Experienced individuals with expertise in specialized areas are made available to help in evaluating. software.

and the decision rationale is documented Implementation of the approved project management improvement actions is assigned and planned The status of each process improvement proposal is tracked Individuals submitting project management improvement proposals receive prompt acknowledgment of their proposals and notification of the disposition of their proposals o o o o Activity 4: Records of the project management improvement activities are maintained. 1. the expected benefits are determined. 1. quality. status. and may address any aspect of the project management methodology Each project management improvement proposal is evaluated. by any member of the organization.Level 5: Optimizing Objective 1 • • • Planning and coordination of those activities Evaluation of proposed improvements Recognition of staff contributions to project management improvement Activity 2: The organization’s project management performance improvement activities are conducted according to the project management performance improvement plan. Progress is tracked according to the plan. Historical data are maintained. o Project management improvement proposals are submitted at any time. and implementation of the project management improvement proposals is maintained. Examples of records and reports include the— o o Projects’ technical. a decision is made whether to implement the proposal. Information about the initiation. The plan is reviewed and revised as appropriate. and schedule performances Projects’ defect histories © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 5-5 . and an organization-wide feedback mechanism is established. and reports are produced on project management improvement activities and results. 2. Activity 3: Project management improvement proposals and their subsequent transfer into practice are handled according to a documented procedure. 2.

Benchmarking compares actual or planned project management practices within the performing organization to those outside of the performing organization. Records maintained reflect the process change capacity of the organization and its process change cycle time. Activity 5: Benchmarking is conducted to provide a standard for measuring performance. Data are collected on the performance of both the performing organization’s products and services and the competitor’s products and services. 3.Objective 1 Level 5: Optimizing o Organizational quality and productivity trends 3. 2. n Benchmark results that compare the organization’s performance against best-in-class Benchmark results that compare the organization’s performance against competition Number of improvement proposals submitted and implemented Impact of each improvement on increasing the organization’s capability in one of the project management competencies Effort expended in project management improvement PMO effectiveness in reviewing and implementing suggested improvements Numbers and types of recognition for project management improvement activities n n n n n n VERIFICATION Verification 1: The project management improvement process is reviewed regularly to ensure compliance with the established project management performance improvement plan. Benchmarking compares the project’s products and services with those of EVALUATION Evaluation 1: Information is collected and used to evaluate the organization’s efforts to continuously improve project management processes. 1. These reviews confirm that— n The activities for continuous project management improvement comply with the organization’s policies and stated values 5-6 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model .

Level 5: Optimizing Objective 1 n The organization has a project management performance improvement plan Continuous improvement activities are conducted according to the plan Participation in project management improvement is organization-wide Noncompliance issues are resolved n n n © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 5-7 .

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Funding. and support initiatives in innovative technologies. as appropriate.Objective 2—Level 5 Appropriate new technologies for project management are planned for and transferred into normal practice throughout the organization. selecting. COMMITMENT TO PERFORM Commitment 1: The organization follows a documented procedure that shows its commitment to technological improvements that support its continuous efforts to improve project management processes. 3. Time is made available to evaluate technologies and conduct pilot efforts. 1. Pilot projects are conducted to determine the feasibility and economic impact of new technologies. 2. n Maintains an awareness of new developments in technologies that support project management Evaluates new technologies and transitions the most effective ones into day-to-day use n ABILITY TO PERFORM Ability 1: Adequate resources are provided for identifying. 1. 4. plan. Experienced individuals with expertise in specialized areas are made available to help evaluate. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 5-9 . and support are made available to transition new technologies into the organization. Items in the plan typically include— n n n Roles and responsibilities Strategic objectives in terms of project management technology Process for introducing the use of new technology in the organization Activity 2: Pilot projects are used. before fullscale implementation occurs. and evaluating new technologies and introducing their use in the organization. staff. ACTIVITIES PERFORMED Activity 1: The PMO or appropriate staff prepares a strategic plan for project management technology improvement. Funding and staff are made available for acquiring technologies for evaluation and running pilot projects to customize them as appropriate.

Objective 2 Level 5: Optimizing 2. 5-10 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . 3. and activities for the pilot projects are planned and tracked. evaluation criteria. Pilot plans are reviewed and approved by all affected parties. The objectives.

2. proceed with full-scale implementation. Examples of information collected include— n n Impact of improvements in individual or project team performance Impact of each technology in terms of increasing the organization’s capability in one or more of the project management competencies Effort associated with evaluating and implementing new technologies Timeliness in transferring new technology into normal practice throughout the organization Number of new models or automated tools introduced n n n © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 5-11 . Those responsible for technologies provide consultation and assistance to the pilot effort. EVALUATION Evaluation 1: Information regarding the technological improvement efforts in project management is collected and used to continually improve project management processes. Activity 3: Appropriate new technologies are transferred into normal practice throughout the organization. 8. Adjustments to the proposed technology are made during the pilot to optimize its implementation. The pilot is designed to show the advantages and disadvantages that an innovative technology would exhibit in broad use in the organization. The results of the pilot effort are collected. Scheduling and acquiring new technologies follows a defined process. or replan and continue the pilot. analyzed. and documented. 5.Level 5: Optimizing Objective 2 Examples of affected parties include those who— o o o o Are responsible for administering the pilot Are affected by the pilot Must use the results of the pilot Must provide support for the pilot 4. Project managers and team members are informed about new technologies. A decision is made whether to terminate the effort. Pilot results typically include— o o o Lessons learned and problems encountered Estimated benefits and impacts of broader use in the organization Risk assessments 7. 6. 1.

The purpose of these reviews is to confirm that— n The organization has a strategic plan for project management technology improvement Progress is made against the technology improvement strategic plan Timeliness exists in implementing technological improvements recommended and approved throughout the organization The technology improvement supports the project management performance improvement plan The technological improvements are useful in terms of the organization’s stated values and strategic objectives Noncompliance issues are resolved n n n n n 5-12 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model .Objective 2 Level 5: Optimizing n n New technology impact on the decision-making process Benefit-cost analysis of new technology VERIFICATION Verification 1: Progress in implementing technological improvements is reviewed periodically.

and techniques: o Benefit measurement models o Constrained optimization models Project selection considerations Opportunity vs. which includes both numeric and nonnumeric considerations. Project goals and objectives are assessed. 1. The purpose of this assessment is to ensure that the project goals and objectives are— o o Realistic Supportive of the organization’s strategic goals 2. This training typically includes areas such as— n n n n Project selection practices.Objective 3—Level 5 Projects selected are aligned with strategic organizational goals and objectives. Activity 2: Projects are selected using a combination of selection criteria. Formal project selection criteria are established and followed. COMMITMENT TO PERFORM Commitment 1: The organization follows a documented procedure for selecting which projects to undertake. Elements of the project selection process may include— n n n Persons involved in project selection Approvals required before a project can be formally undertaken Factors to consider in project selection: o Support of the organization’s strategic goals o Market demand o Business needs o Customer request o Technological advances o Legal requirements o Regulatory requirements ABILITY TO PERFORM Ability 1: Training is provided in project selection procedures. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 5-13 . risk assessment Project selection criteria ACTIVITIES PERFORMED Activity 1: For each project initiated. a justification is prepared that provides the basis for evaluating future selection trade-offs. tools.

Objective 3 Level 5: Optimizing n n n Profitability measures Benefit measurement methods Constrained optimization methods 5-14 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model .

Level 5: Optimizing

Objective 2

Nonnumeric considerations include—
n n n n n

Management prerogative Product line extension Operating necessity Competitive necessity Regulatory necessity

EVALUATION

Evaluation 1: Information is collected and used to evaluate the effectiveness of the organization’s project selection criteria.

Examples of information collected include—
n n n

Selected project’s congruence with the organization’s strategic objectives Financial return of the selected project compared with projections Timeliness of the project selection decision process

VERIFICATION

Verification 1: Project selection approaches are reviewed periodically.

The purpose of these reviews is to confirm that—
n

Project selection processes comply with the organization’s stated values, policies, and documented procedures Project selection criteria support the organization’s strategic goals Noncompliance items are resolved

n n

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Objective 4—Level 5
The organization develops a strategic plan for long-term development of the competencies and work force needed for project management. COMMITMENT TO PERFORM Commitment 1: The organization follows a documented procedure for developing and updating its strategic and near-term work force plans for project management.

The procedure typically specifies that—
n

Work force planning serves the business objectives and stated values of the organization The strategic and near-term work force plans support the organization’s business strategies and operating objectives in project management Responsibilities for initiating, conducting, and approving the strategic work force plan are defined and assigned The frequency with which the strategic work force plan is developed and revised is defined The strategic and near-term work force plans are communicated throughout the organization

n

n

n

n

ABILITY TO PERFORM

Ability 1: Adequate resources are provided for developing, maintaining, and executing the strategic and near-term work force plans.

1. Experienced individuals who have expertise in the organization’s talent needs are made available for developing the strategic and near-term work force plans. Examples of individuals with expertise relevant to work force planning include—
o o o o

Human resource staff PMO staff Technology planning staff Executive management

2. Strategic and operational business objectives are made available for developing strategic and near-term work force plans. 3. Tools for supporting strategic and near-term work force planning activities are made available. Examples of tools to support work force planning include—

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Objective 4

Level 5: Optimizing

o o o o

Planning tools Spreadsheets Effort estimating tools Knowledge, skills, and competency-analysis tools

4. Resources for pursuing activities in support of strategic and near-term work force objectives are made available.
ACTIVITIES PERFORMED Activity 1: The strategic project management competency and work force needs of the organization are documented.

1. The strategic project management competency needs of the organization are developed from inputs identifying the knowledge, skills, and competencies needed to conduct the organization’s future business activities. Examples of relevant inputs concerning strategic competency needs include—
o o o o o

Organization’s business objectives and capabilities Knowledge, skills, and competencies profiles Anticipated processes and technologies Data from benchmarking activities Anticipated changes in laws and regulations

2. An understanding of the organization’s strategic needs relative to each competency is documented. Examples of information that may be relative to each competency include—
o

How the knowledge, skills, and competencies are related to and required by project management processes and activities Measures used to indicate the effectiveness with which the competency is being performed How changes in project management processes and functions may change the defined knowledge, skills, and competencies

o

o

3. The organization’s current capability for performing each competency is assessed and documented as a baseline for determining future development needs within the work force. The current capability is determined by—
o o

Number of people possessing the competency Level of knowledge and skills exhibited by the people possessing the competency Number of people in the process of developing the competency

o

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Strategic competency and work force needs are identified by those having knowledge of the organization’s future business needs. Examples of relevant inputs concerning strategic work force needs include— o o o o Organization’s anticipated business objectives and capabilities Anticipated future requirements in the project management competencies Resource requirements for future business processes and technologies Anticipated talent needs and sources 5. The work force needs of the organization are developed from inputs identifying the number of people who possess the competencies that the organization will need to conduct its future business activities. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 5-19 .Level 5: Optimizing Objective 4 o Development resources and activities in place for producing the competency 4.

Objective 4 Level 5: Optimizing Examples of people with knowledge of the organization’s future business o o o o o o o Executives Project sponsors Technologists Strategic planners Customers Business development specialists External consultants 6. Activity 2: For each of the project management competencies. 1. The development plan includes— o Anticipated number of people with the needed competency by specified dates How the numbers of people with the competency will be developed or provided Examples of mechanisms through which people with a competency can be developed or provided include— • • • • • Hiring individuals with the competency Acquiring an external organization with the competency Developing the competency through training Using consultants Outsourcing the work o o Internal activities that need to be performed to develop the competencies Resources needed to perform internal activities How competencies will be maintained or enhanced over time o o 5-20 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . a development plan is prepared and periodically reviewed and revised as appropriate. The development plan for each of the project management competencies is based on the— o Organization’s current level of capability in each of its project management competencies Strategic needs of the organization Organization’s established competency development activities o o 2. Strategic competency and work force needs are documented.

Executive management periodically reviews the status of the organization’s performance against its plan. The development plan for each project management competency is reviewed on a periodic and event-driven basis and revised as necessary. 2. The development plans for the organization’s project management competencies form a partial basis for the organization’s strategic and near-term work force plans. 1. Activity 3: The organization’s performance in meeting the objectives of its strategic work force development plan is tracked. 4.Level 5: Optimizing Objective 4 3. corrective action is taken. If progress against objectives deviates significantly. The purpose of these reviews is to confirm that— n Strategic and near-term work force planning activities comply with the organization’s policies and stated values Strategic and near-term plans are current and reflect existing and anticipated organizational conditions and needs Noncompliance issues are resolved n n © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 5-21 . EVALUATION Evaluation 1: Information is collected and used to determine the status of strategic work force planning and development activities. Examples of information collected include— n n Objectives achieved in the strategic work force plan Milestones met in the strategic competency needs identification and development plan Status of plans developed to address improvement in needed competencies Progress made toward establishing long-term work force requirements n n VERIFICATION Verification 1: The organization’s strategic and near-term work force planning activities are reviewed periodically.

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where appropriate. team members. or project teams at random times without any prior agreement as to conditions of receipt. against objective criteria Appropriate project performance management procedures are defined. where possible. COMMITMENT TO PERFORM Commitment 1: The organization follows a documented procedure describing its commitment to team-based performance and the establishment of team-based incentive systems.Objective 5—Level 5 The organization has adopted a structured approach to project team performance incentives that rewards both individual and team accomplishments. Reward refers to variable amounts of money or other considerations provided to project managers. documented. Recognition and rewards can be made periodically or occasionally. o o n Reasons for providing recognitions and rewards include— o o o o Exceptional project team performance Project management methodology process improvement Project completion exceeding stated goals Exceptional quality © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 5-23 . rewarded as follows: o Recognition is accomplished through special acknowledgments made to a project manager. This procedure typically specifies that— n Performance management activities comply with all applicable laws and regulations Performance management information and data are confidential Project performance and project management skills are measured. and used for— o o o o o o n n n Identifying those responsible for providing performance feedback Developing performance criteria Delivering formal performance feedback Periodically discussing project performance and possible improvements Handling performance problems Rewarding outstanding performance n Outstanding performance is recognized and. team member. or project team.

reviewing. 5-24 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . Funding for recognition and reward activities is made available. The project team’s performance criteria are based on the project plan. ACTIVITIES PERFORMED Activity 1: A specific reward and recognition system that is consistent with organizational goals is established for project team members. 1. or revising a recognition and reward program Determining criteria for making rewards Participating in recognition and reward decisions 2.Objective 5 Level 5: Optimizing n Appropriate recognition and reward procedures are defined. and used for— o o o o Identifying those responsible for recognition and reward activities Defining the purposes of recognition and reward incentives Defining the basis for giving special recognition or reward Communicating the structure of the recognition and reward system to the work force Recommending a project team or team member for recognition or reward Determining appropriate recognitions and rewards Providing recognition and reward information to project team members Establishing and maintaining equity in the recognition and reward system Publicizing recognitions and rewards o o o o o ABILITY TO PERFORM Ability 1: Adequate resources are provided for recognition and reward activities. Experienced individuals who have expertise in recognition and reward programs are made available to guide these activities. Contributions that could be made by those with special skills include— o o o Designing. documented. Tools to support recognition and reward activities are made available. Examples of tools include— o o o Recognition and reward guidelines Repositories of previously defined recognition and reward criteria Standard forms for documenting recognition and reward activities 3. 1.

The project team’s performance criteria are documented. Members of the project team are involved in developing the performance criteria. Each team member’s objective performance criteria are drawn from the criteria for the entire team. 4. The project team’s performance criteria are reviewed with and approved by the project sponsor to whom the team reports. 1. 2. Each team member’s performance criteria and the project team’s performance criteria are reviewed periodically to determine their appropriateness under changing project conditions. Activity 3: Objective performance criteria are documented for each individual and for the entire project team. Each team member’s performance criteria are documented. Activity 4: Performance criteria for each individual and for the project team are periodically reviewed and. 1. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 5-25 . Skills needing development and actions to develop them are discussed. 3. Where appropriate. individual and project team performance criteria are revised. 5. 2. if conditions warrant.Level 5: Optimizing Objective 5 2. 1. Team members sign off on the performance criteria to indicate their commitment to the performance evaluation process. Approved performance criteria for the project team are communicated to all team members. 3. Activity 2: The reward and recognition system is communicated to the project team members. Activity 5: Formal feedback on individual and team performance is provided on a regular and event-driven basis. 3. Each team member has an opportunity to participate in developing the team’s performance criteria. 2. Revisions to individual and team performance criteria are documented and made known to those involved. 1. revised. 2. Accomplishments are compared with documented performance criteria. Each team member has an opportunity to participate in developing his or her performance criteria.

certificates. n Reward and recognition systems used by projects are consistent with the stated values and objectives of the organization 5-26 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . Examples of information collected include— n n Level of participation and acceptance by the project teams Project performance improvement attributable to the team-based incentive system Level of accomplished performance criteria at team and individual levels Number and types of incentives awarded Frequency of performance criteria review and revision Impact of a team-based incentive system on the organization’s profitability Employee satisfaction as shown through surveys Customer satisfaction as shown through surveys n n n n n n VERIFICATION Verification 1: Reviews are conducted periodically to ensure that the team-based incentive systems support the organization’s strategic objectives. Opportunities to enhance performance are discussed. and actions are identified. as events that justify special attention occur. and by those at the next higher level of management. Results of the formal performance feedback process are documented.Objective 5 Level 5: Optimizing 3. Examples of recognitions and rewards include— n n n n n n n n Money Plaques. or citations Public recognition Time off Special perquisites Special assignments Parties or celebrations Other meaningful considerations EVALUATION Evaluation 1: Information is collected and used to evaluate the effectiveness of the organization’s team-based incentive system. 4. Activity 6: Recognitions and rewards are given appropriately. Documentation from the performance feedback process is reviewed with the individual. trophies. the project team. 5. and the person responsible for managing performance.

Level 5: Optimizing Objective 5 n n n n The organization provides funding for the reward and recognition systems Confidentiality of specific individual performance is protected Systems comply with specific laws and regulations Noncompliance issues are resolved © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 5-27 .

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3. The program is established for voluntary participation. 3. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 5-29 . Changes are made to personal development plans based on the activities performed to improve individual work processes. Individuals with expertise in individual work process improvement are made available to assist in activities for continuous competency development. 2. 1. Activity 2: Individuals define the processes they use to perform their work.Objective 6—Level 5 Participation in improving personal competencies in project management is organization-wide. The procedure typically specifies that— n Personal competency development activities serve the business objectives and stated values of the organization Individuals are encouraged to continuously improve the personal work processes involved in their work Individuals participate in personal competency development by setting measurable goals for continuous improvement Support is provided to assist individuals in continuously improving their competencies n n n ABILITY TO PERFORM Ability 1: Adequate resources are provided for continuously improving personal competencies. Funds are made available to support the activities. ACTIVITIES PERFORMED Activity 1: A personal competency development program that empowers individuals to continuously improve their individual work processes in project management is established. 1. 2. The availability of support for personal competency development is communicated throughout the organization. Tools for supporting activities for continuous improvement in personal competencies are made available. COMMITMENT TO PERFORM Commitment 1: The organization follows a documented procedure for continuously improving individuals’ personal competencies in project management.

3. Applicable measurements defined at the project team level provide a framework for measuring the performance of individual work processes. Individuals continually update and improve the measurements of their work processes. 3. analyze. Activity 4: Individuals analyze the measured performance of their work processes to identify opportunities for improvement. Individuals analyze their work activities to define the products and services they must personally produce or provide for use by the project team.Objective 6 Level 5: Optimizing 1. Individuals determine the capability of each of their work processes to accomplish its intended result. and competencies maintained by the organization Trainers and training materials Mentors Professional literature in project management n n n 5-30 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . Individuals continually measure. and competencies they need to improve their work processes. 1. 3. 2. Examples of sources of information on knowledge. Activity 5: Individuals identify the knowledge. skills. skills. These outcomes can include the productivity of the performance or the quality of the product or service produced. 2. 2. and improve their work processes and their definitions. The capabilities of individual work processes are analyzed to determine their potential for improvement. The capability of an individual work process is the range of outcomes that occur when it is performed repeatedly. 1. Individuals define additional measurements as needed to characterize the performance of their work processes more completely. Activity 3: Individuals measure the performance of their individual work processes. and competencies include— n n Descriptions of personal work activities Descriptions of knowledge. Processes defined at the project team level provide a framework for defining individual work processes. skills.

and size of changes Rate at which goals for individual work process improvement is being accomplished n n n n n VERIFICATION Verification 1: The organization’s effectiveness in implementing activities for personal competency development is reviewed periodically. including number. Examples of information collected include— n Number of individuals actively engaged in personal competency development activities Degree of individual and team participation in work process improvement activities Amount of management feedback provided on individual and team performance Career advancement resulting from self-improvement in knowledge. and competencies Overall activity in changing individual work processes. The purpose of these reviews is to confirm that— n n n Individuals are provided the tools required for self-assessment The activities for personal competency development are appropriate Progress is made in performing activities for personal competency development Results from reviewing the personal competency development activities are compared with the organization’s values and appropriate policies Self-development activities are organization-wide Successful self-development is rewarded appropriately Noncompliance issues are resolved n n n n © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model 5-31 .Level 5: Optimizing Objective 6 EVALUATION Evaluation 1: Information is collected and used to determine the status and effectiveness of personal competency development activities. skills. type.

and takes time to complete. or customer for a specific project phase or at project completion. See also earned value. The length of the arrow does not represent the expected duration of the activity. Also called configuration control board. Sum of approved cost estimates (including any overhead allocation) for activities (or portions of activities) scheduled to be performed during a given period. C Change control. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model GL-1 . Budgeted cost of work performed (BCWP). Element of work that is required by the project. Activity duration estimating. See also earned value. Network diagramming technique in which activities are represented by arrows. Is held to ensure that prospective suppliers have a clear understanding of requirements. Change to an approved cost baseline. Process of monitoring and dealing with changes to the scope of a project or to its objectives. Using the actual duration or cost of a previous. client. The tail of the arrow represents the start of the activity. Total costs (direct and indirect) incurred in accomplishing work during a given time period. B Benchmarking. generally revised only in response to scope changes. uses resources. Activities are connected at points called nodes (usually drawn as circles) to illustrate the sequence in which the activities are expected to be performed. Arrow diagramming method (ADM). Estimating the number of work periods needed to complete individual activities. Analogous estimating. Actual cost of work performed (ACWP). Is conducted to provide a standard for measuring performance. Compares the project’s products and services and actual or planned project management practices to those of other performing organizations. the head of the arrow represents the finish of the activity. similar activity as the basis for estimating the duration or cost of a present or future activity. a form of expert judgment. Budgeted cost of work scheduled (BCWS). Administrative closure. or prebid conference. Also called activity-on-arrow. Change control board (CCB). Sum of approved cost estimates (including any overhead allocation) for activities (or portions of activities) completed during a given period. Also called contractor. See also earned value. and disseminating information to formalize acceptance of the product or service of the project by the sponsor. Bidders’ conference. Activities associated with generating. Budget update. gathering. Formally constituted group of stakeholders responsible for approving or rejecting changes to the project baselines. vendor.Glossary A Activity.

Commitment. Document that describes the methods for gathering. (1) Process by which organizations continuously improve their processes and procedures to meet or exceed customer requirements. dispute resolution procedures. (2) Means through which an organization creates and sustains a culture of continuous improvement. Comprises three major areas of effort: configuration identification. documented procedures that defines the steps by which official project documents may be changed. and expected to be kept by all parties. details methods for accessing information between scheduled communications. tracking systems. visible.Glossary C (CONTINUED) Change control process. Chart of accounts. Change control system. Process for initiating changes to the project baseline configuration. Document that describes the tasks to be performed to complete the project and transfer it to the customer. tracking systems. and audit the item or system to verify conformance to requirements. Communication management plan. and updating project or product specifications and baselines. Competency. Usually. Pact that is freely assumed. distributing. Numbering system used to identify and monitor project costs by category (for example. Characteristic that is causally related to effective. (1) Procedure used to apply technical and administrative direction and oversight to identify and document the functional and physical characteristics of an item or system. or materials). and approval levels needed to authorize changes. record and report the changes and their implementation status. control any changes to the characteristics. Developed by summing estimated costs by period and usually displayed in the form of an S-curve. approving or disapproving changes. Closeout plan. Procedure by which the cost baseline may be changed. schedule. and incorporates procedures for updating and refining the communication plan. Process by which the contract may be modified including the documentation. Configuration management. Collection of formal. and storing various types of information. and configuration control. Change request and evaluation form. provides a production schedule showing when each type of information will be produced. configuration status accounting. GL-2 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . (2) Approach used to control changes to these characteristics and provide information on the status of engineering or contract change actions. including documentation. and scope. supplies. Cost change control system. analyzing the impact of changes to project cost. Is used to ensure that all steps in the evaluation of changes are performed and that proper approval or disapproval of changes is received. and approval levels necessary for authorizing change. superior performance as measured by objective criteria in a job or situation. Continuous process improvement. based on the corporate chart of accounts of the performing organization. Time-phased budget used to measure and monitor cost performance on the project. Contract change control system. labor. Cost baseline.

© ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model GL-3 . Includes influencing the factors that cause changes to the cost baseline. The objective of crashing is to obtain the maximum duration compression for the least cost. Taking action to decrease the total project duration by adding resources (human and material) to the project schedule without altering the sequence of activities. D Decision tree analysis. determining that the cost baseline has changed. Often used to predict the amount of a possible cost overrun or underrun using the following formula: BAC ÷ CPI = EAC. Also called schedule compression. different responses for major and minor variances). Network analysis technique used to predict project duration by analyzing the sequence of activities (path) that has the least amount of scheduling flexibility (the least amount of float). Duration compression technique. Branches of the tree represent either decisions or chance events. Critical path method (CPM). Crashing. See also earned value. Customer contract management. the series of activities that determine the earliest completion of the project. Critical path. See also duration compression technique. The diagram provides for the consideration of the probability of each outcome. Although normally calculated for the entire project. Document that describes how cost variances will be managed (for example. Management of the relationship with the customer from contract award to closeout. Shortening of the schedule without reducing the project scope. Late dates are calculated by a backward pass starting from a specified completion date (usually the forward pass’s calculated early finish date for the project). Cost performance index (CPI). Early dates are calculated by a forward pass using a specified start date. Diagram that shows key interactions among decisions and associated chance events as they are understood by the decision maker. Dependencies may be mandatory or inherent in the nature of the work being done. which can be graphically depicted on a network diagram. Oversight of changes to the project budget.Glossary Cost control system. May be part of the overall project plan. often zero. ensuring that the changes are beneficial. may also be determined for a milestone or subproject. Written description about a course of action to take to perform a task. Often defined as those activities with float less than or equal to a specified value. Logical relationship between and among project tasks listed on a WBS. and managing actual changes when and as they occur. discretionary or those defined by the project team. In a project network diagram. Ratio of budgeted costs to actual costs (BCWP/ACWP). Cost management plan. Documented procedure. See also critical path method. See also crashing and fast-tracking. Often requires an increase in project cost. Dependency. or external or those that involve a relationship between project activities and nonproject activities. Will change as activities are completed ahead of or behind schedule.

advice. or commentary proffered. Most techniques for forecasting ETC include an adjustment to the original estimate based on project performance to date. cost performance index. usually upon request. and schedule performance index. PMBOK provides three methods of calculating EAC: EAC=ACWP+ETC. and path float. total float. GL-4 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . Earned value analysis. fixed-price incentive contract. or the total project. Generally done during the planning process. Amount of time that an activity may be delayed from its early start without delaying the project end date. Estimate at completion (EAC). Estimating or predicting future conditions and events. fixed-priced redetermination prospective contract. Amount of time that an activity may be delayed without delaying the early start of any immediately succeeding activities. Also called slack. Expected total cost of an activity. Type of contract with a firm pricing arrangement established by the parties at the time of contracting. Expert judgment. Float. Functional manager. Sometimes confused with concurrent engineering. Derived by subtracting the early start from the late start or early finish from the late finish. See also earned value and estimate at completion. budgeted cost of work scheduled. and ACWP+BCWS. Forecasting. Other types of fixed-price contracts (fixed-price contract with economic price adjustment. or total project when the work is complete. by a person or persons recognized.Glossary E Earned value (EV). BAC÷CPI. Also called secondary float. See also free float. group of activities. Manager of a group that makes a product or performs a service. recommendations. See earned value. budgeted cost of work performed. as having specialized knowledge or training in a specific area. Opinions. either formally or informally. Also called forecast at completion or latest revised estimate. group of activities. Often confused with budgeting. Free float. F Fast-tracking. schedule variance. and fixed-price redetermination retroactive contract) are subject to price adjustment on the basis of (1) economic conditions or (2) the contractor’s performance of the contract. Estimate to completion (ETC). See also actual cost of work performed. Fixed-price contract. Forecast of total project costs based on project performance to date. and may change as the project progresses and as changes are made to the project plan. Expected additional cost needed to complete an activity. such as design and construction. which is a definitive allocation of resources rather than a prediction or estimate. Compressing the project schedule by overlapping activities normally performed in sequence. A firm-fixed-price contract is not subject to adjustment on the basis of the contractor’s cost experience in performing the contract. See also earned value and estimate to completion. Analysis of a project's schedule and financial progress as compared to the original plan.

developed by Peter Drucker in the early 1950s. Named after its developer. See resource leveling. M Make-or-buy analysis. measurable. the balance of power over the resources is in favor of the project manager. Management approach or methodology. Information or understanding that someone needs to perform a task successfully. Project organizational structure in which the project manager shares responsibility with the functional managers to assign priorities and direct the work of individuals assigned to the project. Examination or measurement of work to verify whether an item or activity conforms to a specific requirement. and improve team effectiveness. Inspection. Mentor. Considers such factors as direct and indirect costs. Assessment conducted by someone not involved with the project to ensure the project team is cognizant of all key risks. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model GL-5 . for which planning is impossible. activities or other project elements are listed down the left side of the chart. Document that describes when and how human resources will become part of the project team. Human resource management plan. immediacy of project needs. and competencies. performing organization’s perspective on the ongoing need for the product or services. Formal and informal reporting relationships among different individuals working on the project. skills.Glossary G Gantt chart. Matrix organization. Broad view of project cost management that considers the effect of project decisions on the cost of using the project’s product. requirements. Independent risk review. Management and the subordinate jointly develop clear objectives. Henry Gantt. H I K L Knowledge. and when the team members will return to their organizational units. and (if applicable) disposing of the items being acquired so decisions can be made among alternatives. that encourages managers to give their subordinates more freedom in determining how to achieve specific objectives. functional managers retain most of the control over project resources. In a weak matrix organization. and milestones and ensure that they are realistic. Separately planned quantity of money or time intended to reduce the impact of missed cost. Generally. Interpersonal interfaces. and achievable. Graphic display of schedule-related information. and organizational policy concerning staffing and rental or purchase of supplies and equipment. schedule. Management by objectives (MBO). Management reserve. operating. and activity durations are displayed against the x and y axes as dateplaced horizontal bars. In a strong matrix organization. including acquiring. Evaluation of all costs associated with the project life cycle. Advisor or coach used to help develop specific knowledge. Leveling. dates are shown across the top. or performance objectives. Life-cycle costing analysis. specific training needs for the project team. Subordinate performance and compensation are measured by progress achieved against these goals at regular intervals. supporting. prepare specific project manager skills.

P Parametric modeling. Schedule or cost risk assessment technique that entails performing a project simulation many times to calculate a likely distribution of results. Schematic display of the logical relationships of project activities. Organizational interfaces. Units of measurement used to assess. usually drawn from left to right to reflect project chronology. typically established by senior management. Guiding principle. Considered to be reliable when the historical information used to develop the model is accurate. results are collected. Four types of relationships are possible: finish-to-finish. Pareto diagram. N Network diagram. ordered by frequency of occurrence. Monte Carlo analysis. and start-tostart. Precedence relationship. progress performance in terms of monetary units. schedule. that is adopted by an organization to influence and determine decisions. Pilot project. Plan used to develop skills for the potential next assignment. Periodic review. Tool used to show the work units or work packages that are assigned to specific organizational units. regular time interval. Objectives. O Organizational breakdown structure (OBS). Precedence diagramming method (PDM). calculate. to progress toward career objectives. or to develop knowledge.Glossary Metrics. and documented. GL-6 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . that shows the number of results that were generated by each identified cause. PMIS. start-to-finish. Sequence of activities in a network affecting the order in which the work will be performed. parameters used in the model are readily quantifiable. Usually includes a second scale to reflect percentage of results for each cause. A decision then is made whether to terminate the effort. proceed on a full scale. finish-to-start. rather than at the completion of a major event or on an as-needed basis. Histogram. Formal and informal reporting relationships among different organizational units. Personal development plan. analyzed. Review that occurs at a specified. or replan and continue the pilot. and the model is scalable. Approach used at the beginning of the contract that encourages assimilation of the contractor’s employees into the project as full partners to achieve contract objectives. or determine. and competencies to enhance performance in the current assignment. Is conducted to determine the feasibility and economic impact of new technologies. or quality results. Project characteristics (parameters) used in a mathematical model to predict project costs. Network logic. Partnering. Term used in PDM for a logical relationship. Also called activity-on-node (AON) or activity-on-arc. evaluation criteria. skills. (See Project Management Information Systems) Policy. The nodes are connected with arrows to show the dependencies. Network diagramming technique in which activities are represented by boxes (or nodes) and linked by precedence relationship lines to show the sequence in which the activities are to be performed. and activities are planned and tracked.

tools. integrate. and administrative closure. work force training needs. in summarized or detailed form. methodologies. Event-oriented. Program Evaluation and Review Technique (PERT). Consists of communication planning. (1) Systems. and techniques. and data that allow information flow in a project. Document that describes steps to be taken to continuously improve performance in project management and describes resources required. and quantitative short-term and long-term objectives. source selection. Project manager. Program management office (PMO). Part of project management that includes the processes required to acquire supplies and services from outside the performing organization. and characteristics to be included in a product. and documents approved scope. storage. dissemination. facilitates communication among stakeholders. practices. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model GL-7 . and contract closeout. and disposition of project information. Project communications management plan. Project management information system (PMIS). solicitation. Project procurement management plan. contract administration. Project plan.Glossary P (CONTINUED) Procurement management plan. and distribute output of the other project management processes. Includes a description of the business need that the project was undertaken to address and a description of the product or service to be delivered by the project. probabilitybased network analysis technique used to estimate project duration when there is a high degree of uncertainty with the individual activity duration estimates. Product scope. Consists of procurement planning. and schedule baselines. Features. and P = pessimistic time. information distribution. ML = most likely time. Document that describes the management of the procurement processes from solicitation planning through contract closeout. cost. performance reporting. activities. approved document. PERT applies the critical path method to a weighted average duration estimate. Project charter. where O = optimistic time. functions. solicitation planning. Project management performance improvement plan. Part of project management that includes the processes needed to ensure proper collection. frequently automated. (2) Tools and techniques used to gather. used to guide both project execution and control. Document issued by senior management that gives the project manager authority to apply organizational resources to project activities and formally recognizes the existence of a project. Organizational entity established to assist project managers throughout the organization in implementing project management principles. The formula is as follows: O + 4 ( ML) + P 6 . Highly detailed description of the procedures to be followed in a project life cycle. Project management methodology. Individual responsible for managing the overall project and its deliverables. Formal. Documents planning assumptions and decisions.

as a result of project execution or successful project completion. Document that describes how the project management team will implement its quality policy. Project risk. Structured review of quality management activities to identify lessons learned and improve performance of the project or other projects within the organization. Project scope. GL-8 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model . All the work required to deliver a project’s product or service with the specified features and functions. Project stakeholder. Part of project management that consists of processes required to ensure that the project will satisfy its objectives. Quality management plan. Who does what on the project. Cumulative effect of the probability of uncertain occurrences that may positively or negatively affect project objectives. Person in an organization whose support and approval is required for a project to start and continue. and quality control. Is the planned and systematic activities implemented to provide confidence that the project will satisfy the relevant quality standards. quality assurance. Communicating information about project activities. divided into two broad categories—benefit measurement methods and constrained optimization methods. Includes quality planning. Who decides what on the project. Project scope management plan. Quality audit. Individual or organization who is actively involved in the project or whose interests may be affected. Project schedule. Quality control (QC). (A management responsibility). Q Quality assurance (QA). Planned dates to perform activities and meet milestones. (A responsibility of all project team members). or procedures used to select a project or group of projects that best supports the organization’s objectives. Project sponsor. practices. Project reporting. Project review. either positively or negatively. Action taken to increase the effectiveness and efficiency of the project to provide added benefits to project stakeholders. Project selection methods. Also sometimes called party-atinterest.Glossary Project quality management plan. Involves monitoring specific project results to determine whether they comply with quality standards and to determine ways to eliminate causes of unsatisfactory results. Techniques. All the work required to deliver a project’s product or service with the specified features and functions. Quality improvements. Project roles. Periodic monitoring of project activities and tasks. Project responsibilities.

Identification and quantification of project risks to ensure they are understood and can be prioritized. Risk communication. Resource leveling heuristic. Describes observable steps that indicate that an organization has effectively implemented particular processes within a knowledge area. Repository. Results statement. Resource histogram. Responsibility matrix. Structure used to relate the WBS to individual resources to ensure that each element of the project’s scope of work is assigned to an individual.Glossary R Record retention. Specific technique developed by ESI International to quantify the identified risks and opportunities associated with a particular project to help decide whether the project should be undertaken. A combination of contingency and management reserves. Resource leveling. Records management. Analysis of the probability that certain undesirable and beneficial events will occur and their impact on attaining project objectives. Ensuring that a resource is maximized but not used beyond its limitations. archive. Period of time that records are kept for reference after contact or project closeout. Problem-solving technique that results in an acceptable solution. Also called resource loading chart. and distribute all documentation associated with the project. Resource loading. Procedures established by an organization to identify. often arrived at by trial and error. Risk and opportunity assessment model (ROAM). Risk identification. Formal management actions to promote or reinforce desired behavior. Responsibility assignment matrix (RAM). Organized collection of project documentation. index. Risk analysis. (1) Practicing a form of network analysis in which scheduling decisions (start and finish dates) are driven by resource management issues (such as limited resource availability or changes in resource levels). Designating the amount and type of resources to be assigned to a specific activity in a certain time period. Risk budget. A high-level RAM defines which group or unit is responsible for each WBS element. Presenting information on project risk in a useable format. Cost and schedule allowance that is held in reserve and spent only if uncertainties or risks occur. Vertical bar chart used to show resource consumption by time period. Reward and recognition system. See responsibility assignment matrix. a low-level RAM assigns roles and responsibilities for specific activities to particular people. (2) Evening out the peaks and valleys of resource requirements so that a fixed amount of resources can be used over time. Determining the risk events that are likely to affect the project and classifying them according to their cause or source. Risk assessment. Also called accountability matrix. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model GL-9 .

Filtering. Is set at the project start and managed according to the schedule management plan. Includes procedures for performing risk identification and quantification. grouping. Scope statement. Is the original schedule plus or minus approved changes. The project is behind schedule if the SPI is less than one. (1) Difference between the scheduled completion of an activity and its actual completion. Risk response development. allocating reserves. See also earned value. Procedures followed to change the schedule. Ratio of work performed to work scheduled (BCWP/BCWS). tracking systems. Scope change control system. Documentation of the procedures to be used to manage risk during the life of a project and the parties responsible for managing various areas of risk. Scope change control. planning risk response. including paperwork. integration of any scope changes into the project. tracking systems. Schedule change control system. and approval levels needed to authorize changes. implementing contingency plans. Risk prioritizing. Documented description of the project concerning its output. Schedule reserve. Includes paperwork. and content. and (3) managing the changes when they occur. S Schedule baseline. Scope management plan. Scope verification. GL-10 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model .Glossary Risk management plan. Schedule variance (SV). Scope change. Serves to mitigate the risk of missing schedule objectives. Document that describes the management of project scope. Document used to define management of schedule changes. an SV of less than zero shows that project activity is behind schedule. Identification of specific actions to maximize the occurrence of opportunities and minimize the occurrence of specific risks in a project. Used to provide a documented basis to help make future project decisions and to confirm or develop a common understanding of the project’s scope by stakeholders. and documenting results. (2) In earned value. a subsidiary element of the overall project plan. Procedures used to track the scope of the project. Schedule performance index (SPI). BCWP less BCWS. Modification of the agreed-upon project scope as defined by the approved WBS. Provides the means to measure and report schedule performance. and identification and classification of scope changes. Process of ensuring that all identified project deliverables have been completed satisfactorily. Schedule management plan. Evaluation of the probability of a risk event’s occurring and of its effect. and ranking risks following an assessment. and approval levels needed to authorize changes. (2) determining that a scope change has occurred. Process of (1) influencing the factors that cause scope changes to help ensure that the changes are beneficial. approach. Risk quantification.

Management and individual actions undertaken specifically and primarily to improve team performance. ensure impartial and comprehensive evaluation of proposals. Technical interfaces. forms. Total float. Description of where the project currently stands versus where it should be. and selection process. Status reporting. Competent and qualified organization or person procured to perform work within specified elements of the project’s WBS. and schedule performance. cost. Subcontractor.Glossary Skills. at specified fixed hourly rates. Traceability. Formal and informal reporting relationships among different technical individuals working on the project. Set of guidelines that provides sample outlines. Approaches used to maximize competition. T Team-building activities. Performance activities that must be developed to perform a task or activity successfully. Standard. Often used to monitor technical. and other documents. including materials handling costs. V Validation. or location of an item or activity by means of recorded identification. See float. Type of contract that provides for the acquisition of supplies or services on the basis of direct labor hours. and select the source whose proposal is most advantageous and realistic. (2) Ease with which a project can be traced forward from specifications to the final deliverable or backward from the deliverable to the original specifications in a systematic way. Examination of project results over time to determine whether performance is improving or deteriorating. (1) Use of mathematical techniques to forecast future outcomes based on historical results. general and administrative (G&A) expenses and profit. and materials at cost. Templates. Time-and-materials contract. See float. Source selection process. Obtaining quotations. for wages. Trend analysis. overhead. Comparison of actual project results to planned or expected results. Person or organization responsible for the performance of a contract or subcontract. Verification. checklists. Evaluation of a product against its specified requirements. Basis for uniformly measuring or specifying performance. Slack. bids. application. Variance analysis. (1) Ability to trace the history. © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model GL-11 . offers. Supplier. evaluation. minimize complexity of the solicitation. Evaluation of the correctness of the output of various stages of the process based on the criteria for that stage. or proposals as appropriate. Solicitation.

Deliverable at the lowest level of the WBS. Workaround. Process of evaluating alternative strategies. Work breakdown structure (WBS). Distinguished from contingency plan because it is not planned in advance of the occurrence of the risk event. Deliverable-oriented grouping of project elements that organizes and defines the total scope of the project. Work package. Unplanned response to a negative risk event. May be divided into activities and used to identify and control work flows in the organization. GL-12 © ESI International 1999 PROJECTFRAMEWORK™ Volume One: The Model .Glossary W What-if analysis. Project components may be products or services. Each descending level is an increasingly detailed definition of a project component. by changing certain variables and assumptions to predict the outcome of considering such changes.

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