“wo Project Management Framework “The trick to reading this chapter isto make sure you keep an ‘open mind and specifically look for gaps in your knowledge. ‘You will likely find a lot of small things, which can add up o on the exam and can alter your understanding of more > Definition ofprojest complex topics. Do not simply memorize the concepts in "management ‘management this chapter; instead, use this book to help you understand > OngunizaGonal + Projectmanagement. hem and be abetter project manager "structure (ce (PMO) » Definitionofa program ve Defi inition. of FI Proj ject pace 5 » Definition of portfolio (CAll page number references are to the PMBOK" Guide, : Prodict lifecycle Fourth Edition) > Project ifesyele i Knowing the true definition of a project has helped many test takers get upto four questions right on the exam. Read the definition, and then read the rest ofthis section. Many people call their work a project when itis not Lea lerned <7 he Definion ofa objectves(MBO).—— "Toa temporary endeavor with a beginning and an end, ‘project: & > Creates a unique product, service, or result. e Largeproject, Does the exam ask, “What is a project?” No, but it will describe situations, and part of your analysis of those situations will have to include, “Is this a project being described?” ‘So what isa project? If your boss walked into your office today and said, “The system is broken. Can you figure out what is wrong with it and fx it?" would this be a project? Are you reading on before you have thought through the question? Ifso, please read it again, and think ‘of your answer, This is an important concept, both for the exam and for the real world. ‘Of the thousands of students RMC has taught, very few came into our classes understanding that you ‘must frst take what you are given and organize the work into appropriate projects. The project planning process will produce schedules and budgets. Can you schedule “fix it” if you do not know what is ‘wrong? Of course not, so there are at east two projects inthe previous story Remember that a project manager must come up with a project management plan that can be agreed to, that people believe is realistic, and most importantly, thatthe project manager can stake his or her reputation on. Itis time someone said this out loud: excluding approved changes for additional work, if the project manager does not get the project completed for the time and cost agreed to (in addition to meeting other objectives), he or she should be relieved of the position! Why so drastic? Studies 162011 AVC Pubcaons, Ie» 952.846.4484 « inarmcprjct.cam © wanmepreec com 19—— Project Management Framework curren wo 20 conducted by the Standish Group in 2009 showed that only 32 percent of projects are successful. This ‘means we are doing a bad job of project management and things need to change. ‘Are you really working on projects? For the exam, make sure the initiatives you ae thinking about ate truly projects. You need to imagine an initiative that would require you to use many of the tools of project management. Ifyou work ata help desk and someone contacts you about a problem they are having, you may be abe to use a WBS, but do you need a network diagram? How about management plans for scope, time, and cost? Probably not. Some activities are simply part of the company’s normal ‘operations rather than a project. fi ‘You should have a large project in mind when you answer questions on the exam. Think of a Pe project that is new to the organization (it hs not been done before), utlizes resources fom any countries, has more than 200 people on the team, lasts longer than one year, and has budget of ver US $10,000,000. Regardless of whether you work on such projects, you will need to answer questions on the exam as if you do. There isa big difference between managing small and large projects. For example, on a small project, you walk over to the person you need to speak to when you have an issue to resolve. On a large project, you may have spent weeks planning communications. When there isan issue, you have to figure ‘out who is involved and where they are located, look up their preferred method of communication and their contact information in the stakeholder register, and then communicate with them in that way. If you keep this large-project focus in mind as you read this book, you will see that the many diferent elements being described here as part of project management make sense. And ifthe concepts make sense to you, you do not have to memorize them—you can use logic to answer questions on the exam! Another thing to keep in mind for the exam is that you should assume project proposals are formally reviewed and approved by management in your organization after a comparison of al possible projects, Projects are not selected arbitrarily or informally. (See the Business Case and Project Selection discussions in the Integration Management chapter.) Operational, Work PA 2..n.nsnnsnn ‘Most work being done in organizations can be described as ether operational or project work (Operational work is ongoing, and project work ends. Iti important to understand the difference for the exam. You may see instances where the real problem in the question is that someone is attempting to ‘manage ongoing (operational) work, like manufacturing, as a project. ‘Many people think project managers just need to know how to manage people or, even worse that ‘you can simply buy some software and be a project manager. The project management profession is ‘growing rapidly. Its both a science and an art, and follows a systematic process. PMI breaks project ‘management into process groups and knowledge areas. The process groups follow the high-level process of project management: initiating, planning, executing, monitoring and controlling, and closing. The knowledge areas are integration, scope, time, cost, quality, human resource, communications risk, and procurement management, though PMI also gives a separate focus to the project management framework and project management processes Do you know what project management is? Chances are, there are some key aspects of project ‘management you do not know. Even people with advanced degrees in project management sometimes (© 2011 AM Pubeatons, nc» 52.46.4484 nfoormepoject.com » wm smearaect.comcuererTwo Project Management Framework == {ail this exam, The answer to “What is project management?” is described throughout this book. It can involve technical terms and processes, but italso involves roles and responsibilities and authority levels. ‘As you read this book, you may find that project management involves more than you thought. 2. A program isa group of projects. By grouping related projects into a program, an organization can coordinate the management of those projects. The program approach may help achieve decreased risk, economies of scale, and improved management. In addition to the work required to complete each individual you want rn project, the program also includes ettorts lke the program manager’ coordination and management moce abut rogram activities. So when you discover that you have more than one project, if there isa benefit to it, you can. ‘management vst MC ib se at ‘manage all the projects asa program. This should be done only when the program approach adds value. Ea ee ‘or infriaton about a ‘courses on his tpi, mere Other Related || Project Project || Project _Work l | A portfolio includes a group of programs and individual projects that are implemented to achieve a specific strategic business goal. The programs and projects that make up the portfolio may not be related other than the fact that they are helping to achieve that common strategic goal. Portono 1 =——— Other : Related || Progam || Project Werke ‘This department centralizes the management of projects. A PMO usually takes one of three roles: > Provides the polices, methodologies, and templates for managing projects within the organization > Provides support and guidance to others in the organization on how to manage projects rains others in project management and project management software, and assists with specific project ‘management tools > Provides project managers for different projects, and is responsible forthe results of those projects; all projects, or projects ofa certain size, type o influence, are managed by ths office (© 2017 AMC Publeabong, ne» 952.845.4484» intoGrmepejectcom » wawameproectcon 21—= Project Management Framework citer wo ‘Be careful to understand the authority of the PMO and how itis different from the other players on a project. The PMO isa departmental unit within an organization; itis nota single person. The PMO may: > Manage the interdependencies between projects. Help provide resources. Recommend the termination of projects. ‘Monitor compliance with organizational processes. Help gather lessons learned and make them available to other projects. Provide templates (eg. for work breakdown structures or communications management plans). Provide guidance. Provide centralized communication about the projects. Be more heavily involved during project initiating than later in the project. Be part of the change control board, Bea stakeholder. Prioritize projects. ‘There isa strong trend to start PMOs, but organizations should recognize the risk; if PMOs do poorly, they generate negative feelings toward professional project management that can set a company back ‘years. To successfully implement a PMO, organizations should remember these key concepts: > Therole of the PMO must be clearly defined. > ‘The PMO should take one of the three roles (as previously identified), and stick to that role without trying to do everything. » The commitment of executive management is required. » ‘The PMO will not improve project performance without the use of proper project management processes and techniques, so professional project management must be promoted. QL CS ners SNe “The exam may refer to different types of objectives, including both project objectives and product objectives. These questions can be alittle tricky. Carefully read the following list of unique things you should know about objectives, and come back to this list after you read the rest of the book. Do you have any gaps in your knowledge? » Project objectives are stated in the project charter. >» Projects are considered complete when the objectives have been met. > Ifitis determined thatthe project objectives cannot be met, the project should be terminated before completion, ‘A more complete understanding of the objectives may be achieved over the length of the project. ‘The project manager is responsible for accomplishing the project objectives. ‘The reason for quality activities is to make sure the project meets its objectives. Risk management enhances opportunities and reduces threats to the project objectives. ‘Things that could negatively impact the project objectives, such as risk and stakeholders’ influence, should be watched and tracked, Projects often require trade-offs between the specific requirements or scope of the project and the ‘overall objectives the project is supposed to achieve. Project objectives are determined in project initiating and refined in planning > One of the purposes of the Develop Project Management Plan process isto determine how work ‘will be accomplished to meet project objectives. verve . 22 (©2011 UG Pubcon, in » 952.848 4484+ rformepoet. com» weurmcpst comcrarren two Project Management Framework == Obiectives (MBO) ‘MBO is a management philosophy with three steps: 1. Establish unambiguous and realistic objectives. 2. Periodically evaluate whether objectives are being met. 3. Implement corrective action For project managers, this philosophy means that ifa project is not inline with or does not support the corporate objectives, it is likely to lose resources, assistance, and attention. Also understand thet MBO works only if management supports it Asa project manager, you must handle o juggle many things to accomplish a project, including project constraints like time, cost, risk, scope, quality resources, customer satisfaction, and any other factors that limit options. For example, the date a milestone is du, the date by which the project must be completed, or the maximum allowable risk a project may have are all constraints You use constraints to help evaluate competing demands, Management directly or indirectly sets the priority ofeach constraint. You then use this prioritization throughout the project to properly plan the project, evaluate the impact of changes, and prove successful project completion. Itis important to realize that you need to evaluate the effect a change to one constraint has on the other constraints. In other words, you probably cannot shorten the schedule without causing a negative impact to cost, risk, et. Stakeholders, managers, and others will inevitably try to change something or add work to the project. As the project manager, you are responsible for analyzing these change requests and identifying the {impacts on all constraints through integrated change control. Constraints will be discussed in many areas ofthis book. Take time to really understand the integrated change control discussion in the Integration Management chapter and how it relates to constraints. ose Resources ca Ss (OES. csensnennerenisnts ie i oS RRNA ‘OPM3 is PMT organizational project mangement maturity model. This model is designed to help organizations determine thei level of maturity in project management. For the exam, you should be familiar with the term “OPM3” and generally know what its. (© 2011 AMC Publeatns, ne» 952.645.4484 «interject * wanameroect com 23—= Project Management Framework curren tw0 24 Stakeholder, Stakeholder Management. 2505.23 ..cccnmnceusensscasscconvessoueroxsnot ‘Think about the stakeholders on your real-world projects. Do you realize that stakeholders include more than the project manager, customer, sponsor, and team? Stakeholders are any people or organizations ‘hose interests may be positively or negatively impacted by the projector its product; they can include individuals and groups you may not have thought about before, such as the performing organization, ‘project management team, project management office, portfolio managers, program managers, functional ‘managers, and sellers. They may also include those who could exert positive or negative influence over the ‘project but would not otherwise be considered stakeholders, ‘Now think about how you treat the stakeholders on your projects. Do you consider them to be like assistant team members? Ifnot, this might be a gap in your knowledge that could result in getting questions wrong throughout the exam. Treating stakeholders like assistant team members means you keep them informed, solicit their input, and work to satisly their needs and expectations. Without this effort, the project may ful. ‘The topic of stakeholders i discussed and expanded throughout this book, because a project manager should analyze and manage stakeholders needs and levels of influence throughout the project. The Haman Resource Management and Communications Management chapters have a special focus on the topic of stakeholders. Te Human Resource Management chapter provides a way to check ‘your understanding about the roe stakeholders play on the project, and most of the stakeholder identification and management efforts are done as part of communications management. NOTE: Several people may help complete project management activities, especially on lange projects. The PMBOK° Guide refers to these people as the “project management team. To avoid confusion between the diffrent types of teams, we will use only two terms inthis book: “project manager” or “team” The term “project manager” refers to anyone doing project management activities on the project—this includes the lead project manager and those in supporting roles as members ofthe project management. team, The term “team” refers to the project team—everyone who does work on the project not just those who perform project management activities Organizational StUCtW6e 266626 cnesasenmensiene conscotneneuncsnenasteEeTeTAnHtnkt [A project does not operate in a vacuum. Projects are impacted by, and have impact on, the cultural norms, ‘management policies, and procedures ofthe organizations of which they are a part. The best project ‘managers look for these influences and manage them for the benefit of the project and the organization. (One ofthe main forms of influence is how the company is organized. The organizational structure will dictate who the project manager goes to for help with resources, how communications must be handled, and many other aspects of project management, Ths influence is so important that an answer toa question on the exam can change depending on the form of organization. Questions related to organizational theory are often phrased in terms of the project manager’ evel of authority and the impacts on managing projects in such environments. For example, exam questions ‘may deal with: » Who has the power in each type of organization—the project manager or the functional manager > ‘The advantages of each type of organization > ‘he disadvantages of each type of organization ‘Many people have told RMC they wished they had spent more time studying this topic. So let's get it down now. As you read through the next paragraphs defining the different organizational structures, take the time to think about how each form would impact your real-world projects. (© 2011 AMC Pb, ne «952.846.4484» Ifemeprajetcom + wwwncpojE comcusptentwo Project Management Framework —— Functional Thisis the most common form of organization. Such organizations are grouped by areas of specialization within diferent functional areas (eg, accounting, marketing, and manufacturing). ‘When you se “functional” on the exam, think “silo” Projects generally occur within a single department. Ifinformation or project work is needed from another department, employees transmit the request 0 the head of the department, who communicates the request to the other department head. Otherwise, communication stays within the projec. Team members complete project work in adlition to normal departmental work Projectized Ina projctized organization, the entire company is organized by project, an the project manager has control ofthe projet. Personnel are assigned and report toa project manager. ‘When you see“projetzed” onthe exam, remember “no home: Team members complete only project work, and when the projects over, they donot have a department to go back to. They need tobe {esigned to another projector et job witha diferent employer. Communication primarily occurs vehi the project. Matrix’ This form san attempt to maximize the strengths ofboth the functional and projectized structures. When you se “matrix” onthe exam, think “two bosses” The team members report t to bosses the project manager andthe functional manager (eg, engineering manager). Communication goes from team members to both bosses. Team members do project work in addition to normal departmental work. In a strong matrix, power rests with the project manager. In a weak matrix, power rests with the functional ‘manager, and the power of the project manager is comparable to that of a coordinator or expedite. Ina balanced matrix, the power is shared between the functional manager and the project manager. {As stated in the previous paragraph, the project manager’ role in a weak matrix (or in a functional ‘organization) might be more of : > Project Expediter’ the project expediter ats primarily asa staff assistant and communications coordinator. The expediter cannot personally make or enforce decisions. > Project Coordinator This position is similar to the project expediter except the coordinator hhas some power to make decisions, some authority, and reports toa higher-level manager. FETE ‘the exam typically does not identify the form of organization you are in. When it does not BEE specs form. assume mati Ifyou remember this, you sould gta few more questions ight HEE offices for the project team in the same room. Because it sounds similar to the other forms of {A tight matrix has nothing todo witha matrix organization. lt simply refers to locating the organization, thas often been used asa fourth choice for these questions onthe exam. (© 2011 MC Publications, ne» 952.846.4484 «ifo@rmoprject.com » mia.mcpiec com 25