e

ut
ib
tr
is
D
LESSON 5

KEEPING THE or
BUSINESS IN MIND
e
• Manage Compliance
at

Requirements
• Evaluate and Deliver Project
Benefits and Value
lic

• Evaluate and Address Internal

and External Business
Environment Changes
up

• Support Organizational Change

• Employ Continuous Process
Improvement
D
ot

1
N

1
o
D
 e
ut
ib
tr
is
D
or
e
at
lic

Manage Compliance Requirements

up

TOPIC A
D
ot
N

2
o
D
 e
ut
ib
KEEPING THE BUSINESS IN MIND > MANAGE COMPLIANCE REQUIREMENTS

tr
Deliverables and Tools

is
D
or
e
Risk Register Risk Register
at

Configuration Management System Risk Response Plan

Execution Reports Variance Analysis
lic

Nonfunctional Requirements Configuration Management System

Signoffs/Approvals Tolerance
up

QA Outputs Escalation Procedures

Quality Management Plan Audits
Sampling
D

QA Tools
ot

3
N

3
o
D
 e
ut
ib
Compliance

tr
Requirements

is
D
✓ In most projects, solutions are
subject to legal or regulatory
constraints. or
✓ Identify, track, and manage
e
compliance requirements
at

throughout the project.

lic

✓ This might include requirements for

specific practices, privacy laws,
up

handling of sensitive information,

and so on.
D
ot

4
N

4
o
D
 e
ut
ib
Use of the

tr
Risk Register

is
D
✓ Use a Risk Register to track and
manage risks.
or
✓ Also, validate legal and
regulatory compliance for
e
deliverables continuously.
at

✓ Perform a summary check of

lic

compliance before the end of the

project.
up
D
ot
N

5
o
D
 e
ut
ib
Compliance-

tr
related Risks

is
For compliance-related risks,

D
include:
✓ The identified risk
or
✓ Risk owner
✓ Impact of a realized risk
e
✓ Risk responses
at
lic
up
D
ot

6
N

6
o
D
 e
ut
ib
Configuration Management System

tr
is
Allows for tracking,
versioning, and

D
control.

Is handed over with the

deliverables so
or Records deliverable
components,
customer can continue including a
e
to track in their description and the
configuration defined key
management system.
at

attributes.
lic
up

Records deliverable
components, including
a description and the
D
Includes compliance
information, including
proof of validation that
each deliverable meets

defined key attributes. compliance

requirements.
ot

7
N

7
o
D
 e
ut
ib
Compliance Categories

tr
Classification

is
D
Categories vary based on:

✓ Industry and solution scope. or

✓ Unique legal and regulatory
e
exposure.
at
lic
up
D
ot

8
N

8
o
D
 e
ut
ib
Compliance Reporting

tr
is
D
Update:
With:
or Compliance-related
• Project risks, include:
e
activities and • Risk management
Work Performance
at

changes actions
Reports regularly
• Team • Testing and
lic

improvements validation
activities
• Deliverable
• Audits
up

status
• Other actions to
• Overall progress verify deliverable
• Risk status compliance
D
ot

9
N

9
o
D
 e
ut
ib
Variance
Analysis

tr
is
✓ Create regular reports on project

D
variances and details of actions
taken to control and keep the
project on track.
✓ Variances related to compliance are
or
critical because of potential impact
e
on usability of the deliverable.
at

✓ Variance analysis should include:

lic

− Identification of the variant

− Plans for bringing the project or
up

deliverable back into compliance

− Any proposed changes required
D

to meet compliance requirements

ot

10
N

10
o
D
 e
ut
ib
Potential Threats

tr
to Compliance

is
D
✓ Identification of new vulnerabilities

or
✓ Changes in legal or regulatory
requirements
✓ Errors in testing and validation to
e
confirm compliance
at

✓ Errors or bugs in deliverables

✓ Lack of awareness of compliance
lic

requirements
up
D
ot
N

11

11
o
D
 e
ut
ib
Signoffs and Approvals

tr
is
D
This step follows successful
Identify the stakeholders
authorized to sign-off and
approve compliance of
or
testing and validating of
deliverables. But this can be
throughout the project or at
deliverables.
completion.
e
at

Benefits of compliance sign- Remediate compliance issues

lic

off: to avoid:
✓ Early warning of potential ✓ Negative impact on the
threats to compliance.
up

timeline
✓ The ability to capture ✓ Cost overruns
variances and determine a ✓ Increased risks
course of action.
D
ot

12
N

12
o
D
 e
ut
ib
GUIDELINES

tr
Analyze the Consequences of Noncompliance

is
To identify and manage legal, regulatory, and other compliance requirements,

D
you need to:
Define:
• Legal, regulatory, and other
or Track and manage:
• The review and approval
constraints activities related to compliance
e
• The business rules that constrain requirements
at

the project solution and improve • The risks and risk responses
the likelihood of compliance
related to compliance
lic

• Parts of the potential solution requirements

subject to compliance
requirements
up

• The scope of the compliance

requirement
• The stakeholders responsible for
D

reviewing, approving, and signing-

off on compliance.
ot

13
N

13
o
D
 e
ut
ib
Control Quality
to Help Ensure Compliance

tr
is
D
or
e
at
lic
up
D
ot

14
N

14
o
D
 e
ut
ib
tr
Quality Management Plan

is
D
or
DEFINITION
e
A component of the project management plan
at

that describes how applicable policies,

procedures, and guidelines will be implemented
lic

to achieve the quality objectives.

up
D
ot

15
N

15
o
D
 e
ut
ib
Quality Management

tr
Plan

is
D
✓ Describes resources and activities
or
needed to achieve the necessary quality
objectives.
e
✓ Sets expectations for the project's
quality requirements.
at
lic
up
D
ot

1
6
N

16
o
D
 e
ut
ib
Control Quality

tr
Process Outputs

is
As the project team produces deliverables,

D
QA:
✓Verifies that they meet both functional and
nonfunctional requirements.

✓Possibly, identifies and suggests potential

or
improvements.
e
at

✓Validates alignment with compliance

requirements.
lic

✓Provides feedback on any identified

variances.
up

✓Identifies potential approaches to cure

defects or other noncompliance.
Continuously monitor the QC reports
D

and recommendations and coordinate

with the project team to address
defects or noncompliance issues.
ot

17
N

17
o
D
 e
ut
ib
Escalation Procedures

tr
is
Determine whether a noncompliance
issue is within the project’s tolerance

D
level.

or If yes, then work with the team to

propose a resolution.

If it’s beyond the tolerance level,

e
then escalate the issue to the
at

responsible stakeholder for

adjudication.
lic
up

Define these procedures

during project and risk
D

planning.
ot
N

18

18
o
D
 e
ut
ib
Quality Audits

tr
is
D
or
DEFINITION
e
A process conducted by an external team that
at

confirms the implementation of approved

change requests including updates, corrective
lic

actions, defect repairs, and preventive actions.

up
D
ot

19
N

19
o
D
 e
ut
ib
Audits

tr
is
✓Verify compliance with

D
organizational policies, processes,
and procedures.
✓Can verify implementation of change
requests.
or
✓Identify use of good/best practices,
e
nonconformity, gaps, and
at

shortcomings.
✓Share good practices from other
lic

projects in the organization or

industry.
up

✓Proactively offer improvements to

boost productivity.
✓Highlight contributions to lessons
D

learned.
ot

2
0
N

20
o
D
 e
ut
ib
Sampling

tr
is
If QA can’t inspect every product or

D
deliverable, use sampling to identify
quality issues.
This approach can provide similar
or
results and reduce the cost of quality.
e
attribute sampling - result either
at

conforms or does not conform

lic

variable sampling - result is rated on a

continuous scale that measures the
degree of conformity
up
D
ot

21
N

21
o
D
 e
ut
ib
GUIDELINES

tr
Measure Project Compliance

is
D
• Establish a clear Quality Management Plan and act on it continuously to
identify noncompliance issues as early as possible.
or
• Use quality control outputs to confirm deliverable and process compliance
and identify needs for corrective actions.
e
at

• Establish project tolerances and either initiate corrective actions yourself

or quickly escalate noncompliance beyond the tolerances.
lic

• Establish where external audit teams can confirm and validate use of
appropriate processes and procedures and how audit results can enable
up

the team to identify improvements.

• Leverage effective quality tools and techniques to assess

D

quality deliverables and identify improvements, corrective

actions, or defect repairs required.
ot

22
N

22
o
D
 e
ut
ib
tr
is
D
or
e
at
lic

Evaluate and Deliver

Project Benefits and Value
up

TOPIC B
D
ot
N

23

23
o
D
 e
ut
ib
KEEPING THE BUSINESS IN MIND > EVALUATE AND DELIVER PROJECT BENEFITS AND

tr
VALUE

Deliverables and Tools

is
D
or
e
Benefits Management Plan Value Analysis
at

Cost Analysis
EVM, ETC analysis
lic

ROI, NPV, IRR

Benefit Cost Analysis
up

Decision Trees, EMV

Monte Carlo
Net Promoter Score
D

A/B Testing
ot

24
N

24
o
D
 e
ut
ib
Business Value

tr
is
D
or
DEFINITION
e
The net quantifiable benefit derived from a
at

business endeavor, the benefit of which may be

tangible, intangible, or both.
lic
up
D
ot

25
N

25
o
D
 e
ut
ib
Benefits Management Plan

tr
is
D
or
DEFINITION
e
A document that describes how and when the
at

benefits of a project will be derived and

measured.
lic
up
D
ot

26
N

26
o
D
 e
ut
ib
tr
Benefits Management Plan

is
D
Expected tangible and intangible business value to be
Target benefits
realized from the project.
Strategic
alignment
or
How the benefits align with the organization’s business
strategies
When the benefits (short-term and long-term) will be
e
Timeframe
realized, usually by project phase
at

Person or group that monitors, records, and reports the

Benefits owner
benefits
lic

Metrics Direct and indirect measurements of the realized benefits

up

Risks Risks associated with achieving the targeted benefits

D
ot

27
N

27
o
D
 e
ut
ib
Sprint Reviews

tr
/Demos

is
D
✓ At the end of each iteration or sprint,
the team conducts a sprint review or
demo. or
✓ In early stages, obtain the product
owner’s acceptance of the story and
e
any feedback to enable the team to
at

make changes to optimize business

value.
lic

✓ Focus on completing whole user

stories in each sprint.
up

✓ Verify that the capability is

“potentially shippable”.
D
ot

28
N

28
o
D
 e
ut
ib
Release

tr
Management

is
D
In traditional projects, product release
occurs at the end when everything is
or
complete.

However, in today’s complex business

e
environment, where work is hardly
at

ever “done”, we need to factor change

into our thinking about work.
lic
up

Agile projects can convert high-

value capabilities into delivered
D

solutions early.
ot
N

29

29
o
D
 e
ut
ib
Disciplined Agile

tr
is
D
or
DEFINITION
e
A hybrid tool kit that harnesses hundreds of
at

agile practices—agile, lean, and traditional

sources—to guide you to the best way of
lic

working for your team or organization.

up
D
ot

30
N

30
o
D
 e
ut
ib
Disciplined Agile (DA)

tr
Approaches

is
D
✓ Use DA approaches to support
dynamic work environments.
✓ A Product Owner creates a
minimum business increment (MBI)
or
that defines work requirements to
e
deliver the stated value.
at

✓ The MBI creates value quickly and

incrementally, so the business can
lic

start using and benefitting from it.

Advantages:
up

− Feature or capability assessment

− Improve organizational tolerance
for change
D

− A time cadence for subsequent

releases
ot

31
N

31
o
D
 e
ut
ib
Benefit Cost Analysis

tr
is
D
or
DEFINITION
e
A systematic approach to estimating the
strengths and weaknesses of alternatives used
at

to determine options which provide the best

approach to achieving benefits while preserving
lic

savings. Also called cost-benefit analysis.

up
D
ot

32
N

32
o
D
 e
ut
ib
Benefit Cost Analysis

tr
is
D
✓ Frequently used to compare potential
projects to determine which one to
authorize. or
✓ Select the alternative which demonstrates
e
that benefits outweigh costs by the
at

greatest amount.
lic

✓ Alternative should not be chosen when

costs exceed benefits.
up

✓ The accuracy of the estimates of cost

and benefit determines the value of the
D

benefit cost analysis.

ot

33
N

33
o
D
 e
ut
ib
Present Value (PV)

tr
is
D
or
DEFINITION
e
The current value of a future sum of money or
at

stream of cash flows given a specific rate of

return.
lic
up
D
ot

34
N

34
o
D
 e
ut
ib
Present Value

tr
(PV) Calculation

is
D
The PV formula is:

Present Value (PV)

Calculation
or
e
at

If you need $USD 3,000 in three years

and can invest your money at 8 percent
lic

(8%) interest, the present value of your

initial investment is calculated:
up
D
ot

35
N

35
o
D
 e
ut
ib
Net Present Value

tr
is
D
or
The present value of all cash outflows minus the
DEFINITION
e
present value of all cash inflows.
NPV is a financial tool used in capital budgeting.
at

NPV compares the value of a currency unit

today to the value of the same currency unit in
lic

the future, after taking inflation and discount

rate into account.
up
D
ot

36
N

36
o
D
 e
ut
ib
Internal Rate of Return (IRR)

tr
is
D
or
The interest rate that makes the net present
value of all cash flow equal to zero.
DEFINITION
e
IRR is also a financial tool often used in capital
budgeting.
at

IRR is the discount rate at which the NPV of the

project is zero. It is calculated iteratively, by
lic

setting up the NPV calculation in a spreadsheet

or other software and changing the discount
up

rate until the NPV equals zero.

D
ot

37
N

37
o
D
 e
ut
ib
Return on Investment

tr
is
D
or
A financial metric of profitability that measures
DEFINITION the gain or loss from an investment relative to
e
the amount of money invested.
at

Sometimes called the rate of return

Usually expressed as a percentage
lic

A positive ROI is interpreted as a good

investment, and a negative ROI is a bad
investment.
up
D
ot

38
N

38
o
D
 e
ut
ib
Net Promoter

tr
Score (NPS)

is
D
NPS is a metric used in customer
experience programs to measure
or
customer loyalty.

Customers rate their experience

e
with a number from -100 to +100.
A higher score is desirable.
at
lic
up
D
ot
N

39
o
D
 e
ut
ib
tr
Used in

is
marketing, A/B
testing is a
method for

D
determining
user
preferences.

or
Different sets
of users are

A/B Testing shown similar

services; the
e
difference is
the
at

independent
variable.
lic

Based on the
results of the
AB testing
experiment,
up

you can
optimize the
solution you
provide to
D

users.
ot

40
N

40
o
D
 e
ut
ib
Monte Carlo Simulation

tr
is
D
or
DEFINITION
e
An analysis technique in which a computer
model is iterated many times, with the input
at

values chosen at random for each iteration

driven by the input data, including probability
lic

distributions and probabilistic branches.

up
D
ot

41
N

41
o
D
 e
ut
ib
Monte Carlo

tr
Simulation

is
D
Outputs are generated to represent
the range of possible outcomes for
the project.
or
e
Monte Carlo refers to not one single
at

analysis method but to a wide class

of techniques, mostly making use of
lic

sophisticated computers and inputs

of random numbers, probabilities,
and algorithms.
up
D
ot

42
N

42
o
D
 e
ut
ib
Simulation

tr
is
D
or
DEFINITION
e
An analytical technique that models the
at

combined effect of uncertainties to evaluate

their potential impact on objectives.
lic
up
D
ot

43
N

43
o
D
 e
ut
ib
Using Simulations

tr
is
D
✓Uses computer models and estimates
of risks.
or
✓Translates uncertainties into potential
impact.
e
✓Involves calculating multiple project
at

durations, using varying sets of

assumptions.
lic
up
D
ot
N

44
o
D
 e
ut
ib
Decision Tree Analysis

tr
is
D
or
DEFINITION
e
A diagramming and calculation technique for
at

evaluating the implications of a chain of

multiple options in the presence of uncertainty.
lic
up
D
ot

45
N

45
o
D
 e
ut
ib
Use Decision Trees to

tr
Find Benefit and Value

is
D
✓ Use to support selection of the best of
several action options.
✓ Branches represent different decisions
or
or events, each of which can have
e
associated costs and risks.
at

✓ The end-points of branches in the

decision tree represent the outcome
lic

from following that path, which can be

negative or positive.
up

✓ Calculate the expected monetary value

of each branch and select the optimal
one.
D
ot

46
N

46
o
D
 e
ut
ib
tr
is
D
or
e
at
lic

Evaluate and Address Internal and

External Business Environment
up

Changes
D

TOPIC C
ot
N

47

47
o
D
 e
ut
ib
KEEPING THE BUSINESS IN MIND > EVALUATE AND ADDRESS INTERNAL AND EXTERNAL

tr
BUSINESS ENVIRONMENT CHANGES

Deliverables and Tools

is
D
or
Baselines
e
Change Control Boards
Configuration Management System
at

Backlog Reprioritization
Backlogs Product Owner Duties
lic

(Updated) Roadmaps Release Planning

Governance
up
D
ot

48
N

48
o
D
 e
ut
ib
Internal Business

tr
Environment

is
D
✓ Organizational changes can make a
or
dramatic impact on the scope of a
project.
e
✓ The project manager and project
sponsor need to have visibility into
at

business plans, reorganizations,

process changes, and other internal
lic

activities.
up

✓ Because internal business changes

might cause:
− Need for new deliverables
D

− Reprioritization or removal of
existing deliverables
ot

49
N

49
o
D
 e
ut
ib
Get to Know the External

tr
Business Environment

is
D
The PESTLE acronym identifies the
Political
external business environment factors
that can affect the value and desired
outcomes of a project.
orEconomic
Others are: Social
e
✓ TECOP (technical, environmental,
at

commercial, operational, political) Technical

lic

✓ VUCA (volatility, uncertainty,

complexity, ambiguity) Legal
These frameworks can help you to better
up

understand external factors that can Environmental

introduce risk, uncertainty, or provide
opportunities.
D
ot

50
N

50
o
D
 e
ut
ib
Update Baselines

tr
is
D
✓ In traditional project plans, the
completed initial plan contains the
baseline.
✓ As changes occur in the project, you
or
update the baseline to reflect any new
e
requirements.
at

✓ Agile projects process change

continuously, in iterations or
lic

increments. Work is prioritized and

updated in the product backlog or in
up

the value stream (Disciplined Agile).

D
ot

51
N

51
o
D
 e
ut
ib
Backlog

tr
Reprioritization

is
D
Product owner re-prioritizes the backlog High priority
Item 1
as stories or requirements change.
Business value determines the priority of
the changes.
or Item 2

Added item
e
Item 4
at

Item 3

Item 5
lic

Item 6
Low priority
Backlog
up
D
ot

52
N

52
o
D
 e
ut
ib
Recommended Options

tr
for Changes

is
D
✓ When change is proposed, the product
owner should focus on the intended
business value of the change. or
✓ Give the project team discretion to
e
consider the change and identify
at

potential solution options.

lic
up
D
ot

53
N

53
o
D
 e
ut
ib
tr
is
D
A clear governance structure becomes critical
when project changes are driven by changes in
the internal or external business environments.
or
e
at
lic
up
D
ot

54
N

54
o
D
 e
ut
ib
Governance Steering

tr
Committee

is
D
✓ ‘The Project Board’ or overall
governance or steering committee
that coordinates the project: or
✓Might include: the project
e
sponsor, a senior user, and PMO
at

resources.

✓ Are responsible for:

lic

Clarifying the project charter and

objectives; and allocating
up

resources to the project.

D
ot

55
N

55
o
D
 e
ut
ib
GUIDELINES

tr
Assessing the Impact on Project Backlog

is
Based on Business Environment Changes

D
or
• Understand the project's organizational context.
• Understand the external factors that may impact your project.
• How is the project work prioritized?
e
at

• What is the project governance model?

lic
up
D
ot

56
N

56
o
D
 e
ut
ib
tr
is
D
or
e
at
lic

Support Organizational Change

up

TOPIC D
D
ot
N

57

57
o
D
 e
ut
ib
KEEPING THE BUSINESS IN MIND > SUPPORT ORGANIZATIONAL CHANGE

tr
Deliverables and Tools

is
D
or
Change Management Plan Project Management Plan updates
e
Roll Out Plan EEFs
at

Training Plan OPAs

lic

Training Artifacts Demos

PM / PMO org structures
up
D
ot

58
N

58
o
D
 e
ut
ib
Organizational Cultures and Styles

tr
is
View of leadership,

D
hierarchy and
authority

Motivation and
or Shared vision,
beliefs &
reward systems
expectations
e
at
lic

Operating
Risk tolerance
Environments
up
D

Regulations, policies
Code of conduct
ot

and procedures
59
N

59
o
D
 e
ut
ib
Organizational

tr
Structures

is
D
✓ Affect resource availability
or
✓ Affect how projects are conducted
✓ Main structures include functional, project-
e
oriented, matrix, and composite.
at
lic
up
D
ot

60
N

60
o
D
 e
ut
ib
Relative Authority in Organizational Structures

tr
is
Consider your authority relative to the functional manager’s authority over the
project and the project team.

D
Relationship Functional Matrix Project-oriented

Team members are Functional

or
Conflicted loyalty Project
loyal to department
e
Both functional
Team members report
at

Functional manager manager and Project manager

to
project manager
lic

Project manager’s role

Part-time Full-time Full-time
is

Team members’ role is Part-time Part-time Full-time

up

Control of project
manager over team Low Medium High
D

members is
ot

61
N

61
o
D
 e
ut
ib
Project Management Office (PMO)

tr
is
D
or
DEFINITION A management structure that standardizes the
e
project-related governance processes and
at

facilitates the sharing of resources,

methodologies, tools, and techniques.Types of
lic

PMOs include supportive, controlling, and

directive
up
D
ot

62
N

62
o
D
 e
ut
ib
Roll Out Plan

tr
is
D
✓ You need to plan for successful
implementation of changes.

✓ Roll out plans enable you to define

the knowledge transfer, training,
or
and readiness activities required to
e
implement the change.
at

✓ Depending on the size, scope, and

nature of the change, the plan
lic

details might include:

– The Project team and the
up

affected customer and users

– Training and support activities
D
ot

63
N

63
o
D
 e
ut
ib
Project Management

tr
Plan Updates

is
D
Based on the scope of changes, you
may need to update the project
or
management plan for:
✓ Scope

✓ Timelines
e
✓ Work packages
at

✓ Team member assignments

lic

In agile projects, the team might

remove lower-value deliverables
up

from scope to make room for the

change.
D
ot

64
N

64
o
D
 e
ut
ib
Training Plan

tr
is
Changes to the project plan that will

D
likely impact the training plan:

✓ Scope of the training and

knowledge transfer required or
✓ Roles and responsibilities of the
e
stakeholders
at

✓ Timelines
lic
up
D
ot

65
N

65
o
D
 e
ut
ib
Training Artifacts

tr
is
Changes to the plan and deliverable set

D
requires changes to the training
artifacts, including:
✓ Training courseware
✓ Lab configurations and exercises
or
✓ Knowledge requirements and
e
potentially credentials, if certification
at

of skills is expected
✓ Updates for the trainers to gain the
lic

necessary knowledge transfer

required to deliver the updated
training
up

Whether in-house or
D

outsourced, you have to ensure

these changes to training are
made.
ot

66
N

66
o
D
 e
ut
ib
Demos

tr
is
✓ Changes to software solutions may
require demonstration of changed

D
configurations, processes,
workflows, and roles and
responsibilities. or
✓ Key customer and user stakeholders
e
need to review the demo and provide
at

feedback to ensure the changes

work as intended and do not impact
lic

the workflow of the solution.

up

✓ Early feedback allows for adaptation,

while the feedback is immediately
relevant and should improve the
D

quality of the change while reducing

overall cost and risk.
ot

67
N

67
o
D
 e
ut
ib
GUIDELINES

tr
Recommend, Plan, and Facilitate Change

is
(Part 1 of 2)

D
or
• Establish a single change request method which includes:
− A description of the proposed change

− The business value of the change

e
− Any risk and risk mitigation recommendations
at

− Likely cost of the change

lic

• Ensure that a CCB can assess the change cost, risk, and value,
other potential impacts to the project, and make
recommendations.
up

• Check the project’s tolerance – can you can approve the change or
do you need to escalate it to the governing board for review and
D

approval?
ot

68
N

68
o
D
 e
ut
ib
GUIDELINES

tr
Recommend, Plan, and Facilitate Change

is
(Part 2 of 2)

D
• Follow organizational change management best practices:
− Build a compelling case for change
or
− Get buy-in and commitment of key stakeholders
e
− Communicate the change vision
at

− Enable other stakeholders to engage

• Ensure changes are properly aligned and updates are made to

lic

relevant project artifacts – i.e. project plan, training plans, training

artifacts, and software configurations or demos.
up
D
ot

69
N

69
o
D
 e
ut
ib
tr
is
D
or
e
at
lic

Employ Continuous Process

Improvements
up

TOPIC F
D
ot
N

70

70
o
D
 e
ut
ib
KEEPING THE BUSINESS IN MIND > EMPLOY CONTINUOUS PROCESS IMPROVEMENTS

tr
Deliverables and Tools

is
D
or
e
Processes and standards Quality Theory methods
at

CI approaches
Lessons learned
lic

Retrospectives
Experiments
up
D
ot

71
N

71
o
D
 e
ut
ib
Continuous Improvement

tr
is
D
or
An ongoing effort to improve products, services,
DEFINITION
e
or processes.
at

Institute of Quality Assurance definition

includes improving business strategy, business
lic

results, and customer, employee, and supplier

relationships.
up
D
ot

72
N

72
o
D
 e
ut
ib
Continuous

tr
Improvement

is
D
✓ Aim for small, incremental improvements
or large breakthroughs.
✓ A business strategy that is developed at
the organizational level for projects to
or
adopt and use.
e
✓ Might be implemented by an
at

organization’s PMO.
lic
up
D
ot

73
N

73
o
D
 e
ut
ib
Culture of Continuous

tr
Improvement

is
D
W. Edwards Deming’s philosophy of
improving quality aims to reduce
expenses, increase productivity, and thus
or
increase market share.
e
Be guided by these four concepts:
at

✓Better design of products to improve

service.
lic

✓Higher level of uniform product quality.

✓Improvement of product testing in the
workplace and in research centers.
up

✓Greater sales through global markets.

D
ot

74
N

74
o
D
 e
ut
ib
Further Study in

tr
Quality Theory

is
D
Methods
or Approaches by industry
thought leaders can help
e
you understand how to
improve business results.
at
lic
up
D
ot

75
N

75
o
D
 e
ut
ib
Four absolutes:
Six Sigma - respond conforming to

tr
to customer needs requirements, quality
and improving

is
achieved by prevention,
processes by standard of zero defects,

D
systematically and quality measured by
removing defects. Continuous
determining CoQ.
William Smith, Jr. or
process
improvement in Philip B. Crosby
which quality
e
must be
at

continuously Design quality into the

Break quality improve to meet product so factors that
lic

management customer needs cause variation can be

into quality
W. Edward identified and
planning, control
up

Deming controlled.
and
improvement
Genichi Taguchi
D

Joseph M. Juran
ot

76
N

76
o
D
 e
ut
ib
Continuous Improvement Approaches

tr
is
D
Kaizen
✓ Many small changes or
improvements. or Act
Identify issues
and root causes,
Plan
Define objectives
✓ Small changes less likely to then modify to and processes
e
require major expenditures of improve process
capital.
at

Plan Do
✓ Ideas come from workers—not Study Act
lic

expensive research, consultants,

or equipment.

✓ All employees should continually Study

up

Evaluate data Do
improve their own performance.
and compare Execute plan and
results to collect data
✓ All are encouraged to take expectations
D

ownership of their work to

improve motivation.
ot

77
N

77
o
D
 e
ut
ib
Continuous

tr
Improvement Tools

is
Lessons Learned Register is an important

D
component of each project.
✓ Use it as a source of improving the processes

or
in other projects.
✓ Avoid filing it away at the end of a project and
not referring to it.
e
Retrospectives:
✓ Common in agile projects at the end of each
at

iteration.
✓ Helps the team look back at an iteration and
lic

plan improvements for the next one.

Experiments provide a way to improve team
efficiency and effectiveness:
up

✓ Some techniques include A/B testing and

team feedback to identify improvements.
✓ Perform experiments one at a time to isolate
D

the results.
ot

78
N

78
o
D
 e
ut
ib
Update to Process and

tr
Standards

is
D
✓ Lessons learned at the project level can
apply to the organization's continuous
improvement process, in addition to the
project management processes.
or
e
✓ Escalate these lessons and evaluate them
for consideration at the organizational
at

level.
lic
up
D
ot

79
N

79
o
D
 e
ut
ib
GUIDELINES

tr
Execute Continuous Improvement Steps

is
D
• Review the organization’s continuous improvement strategy.
• Develop a continuous improvement approach for your project, keeping in
or
mind the project goals and the expectations of the stakeholders.
• Use lessons learned from your project and other projects—as sources of
e
continuous improvement.
at

• For agile projects, use retrospectives to improve the next iteration.

• Use lessons learned at the project level to improve the organization’s
lic

continuous improvement process.

up
D
ot

80
N

80
o
D
 81
D
o
N
ot
D

End of
up

Module 5
lic
at
e
or
D
is
tr
ib
ut
81
e