EXAM CONTENT OUTLINE

Domain I – People 42%

Domain II – Process 50%

Domain III – Business Environment 8%

DOMAIN III – Business Environment 8%
PROJECT MANAGEMENT ALIGNMENT
Organisational Structure Types (1/6)
Project
Organisational Project Manager’s Project Manager’s Resource Who Manages the
Work Groups Arranged by Management
Structure Type Authority Role Availability Project Budget?
Administrative Staff

Organic or Simple Flexible Little or None Part-time Little or none Owner or Operator Part-time

Functional
Job Function Little or None Part-time Little or None Functional Manager Part-time
(Centralized)

Multi-divisional Job Function [PgM PfM] Little or None Part-time Little or None Functional Manager Part-time

Matrix-weak Job Function Low Part-time Low Functional Manager Part-time

Matrix-balanced Job Function Low to Moderate Part-time Low to Moderate Mixed Part-time

Matrix-strong Job Function [PM] Moderate to High Full-time Moderate to High Project Manager Full-time

Project-oriented Project High to almost total Full-time High to almost total Project Manager Full-time

Full-time or Part- Full-time or Part-

Virtual Network Structure [Nodes] Low to Moderate Low to Moderate Mixed
time time

Hybrid Mix of other types Mixed Mixed Mixed Mixed Mixed

PMO Mix of other types High to almost total Full-time High to almost total Project Manager Full-time
PROJECT MANAGEMENT ALIGNMENT
Organisational Structure Types (2/6)
PROJECTISED

❑ The Functional Organization groups workers based on their area of
specialization.
❑ This structure is an extension of the Line Organization.
❑ The functional manager leads the team and manages all the operations or
businesses.
❑ This type of organization is suitable for manufacturing or engineering
companies.
❑ It supports ongoing operations and practices for producing standard
products.
❑ The project manager has a minimal role to play or may not have a
designated position.
❑ Generally, you'll play the role of an expediter or work as a coordinator.
❑ Project organization is a temporary setup formed for specific projects.
❑ It's also called “projectized organizational structure.”
❑ The project manager assigned for the project is the head of this structure.
❑ Once the project is complete, you may choose to dismantle this setup or move
it to form a new project.
❑ In the case of a new project, the project manager might have to reshuffle the
staff to fit the new plan.
❑ You’ll hire resources or specialists from different functional departments.
❑ As a project manager, you can use allotted resources until completion and
closeout.
❑ Albeit you're accountable for all the activities and timely completion of the
project.
PROJECT MANAGEMENT ALIGNMENT
Organisational Structure Types (3/6)
STRONG WEAK

BALANCE
PROJECT MANAGEMENT ALIGNMENT
Organisational Structure Types (4/6)

A virtual organization is a
recent development that
involves different locations.

When your team executes

a project in one area, you
can manage it from any
other place.

So, you can distribute

resources to your project
team regardless of
location.
PROJECT MANAGEMENT ALIGNMENT
Organisational Structure Types (5/6)
3 Major Types of Organisational Structure Difference Between Functional Manager & Project Manager

Functional Organisation
Functional manager provides
management oversight for a
Matrix Organisation functional unit in an
organization.
Projectised Organisation
Project manager leads the
team that is assigned to
achieve the objectives of a
project.
PROJECT MANAGEMENT ALIGNMENT
Organisational Structure Types (6/6)
❑ An organizational structure that standardizes the project-related governance processes and facilitates the sharing of
resources, methodologies, tools, and techniques.

❑ The responsibilities of a PMO can range from providing project management support functions to the direct management
of one or more projects.
Project
Management ❑ There are several types of PMOs in organizations and each type varies in the degree of control and influence it has on
projects within the organization.
Office (PMO)
❑ The PMO may: Make recommendations, Lead knowledge transfer, Terminate projects, and Take other actions, as required.

Supportive PMOs provide a Controlling PMOs provide Directive PMOs take control

Controlling:

Directive:
Supportive:

consultative role to projects support and require of the projects by directly

by supplying templates, compliance through managing the projects.
best practices, training, various means. Project managers are
access to information, and The degree of control assigned by and report to
lessons learned from other provided by the PMO is the PMO.
projects. moderate. The degree of control
This type of PMO serves as Compliance may involve: provided by the PMO is
a project repository. Adoption of project high.
The degree of control management frameworks
provided by the PMO is or methodologies;
low. •Use of specific templates,
•Forms, and tools; and
•Conformance to
governance frameworks.
PROJECT MANAGEMENT ALIGNMENT
Integration

Integration:
INTEGRATION involves REPEATING PROCESSES CONTINUOUSLY while you're working on the
PROJECT and COORDINATING all aspects of the PROJECT MANAGEMENT PLAN.
INTEGRATION is HIGHLY INTERACTIVE and according to the PMBOK® Guide, PERFORMING
INTEGRATION is a CRITICAL SKILL that all PROJECT MANAGERS should POSSESS.

Integration When Using An Agile Methodology:

INTEGRATION is MANAGED and PERFORMED by the project manager when
using an AGILE PROJECT MANAGEMENT METHODOLOGY, and the PLANNING,
CONTROL, and DELIVERY of the PRODUCT is MANAGED by the AGILE TEAM.
PROJECT MANAGEMENT ALIGNMENT
Purpose of the Business Case

❑The project business case (PBC) is a documented economic feasibility study used to establish the
What? validity of the benefits of a selected component lacking sufficient definition and that is used as a
basis for the authorization of further project management activities.

❑Lists the objectives and reasons for project initiation.

❑Helps measure the project success at the end of the project against the project objectives.

❑Is a project business document that is used throughout the project life cycle.
What does it
entail? ❑May be used before the project initiation and may result in a go/no-go decision for the project.

❑A needs assessment often precedes the business case.

❑The needs assessment involves understanding business goals and objectives, issues, and
opportunities and recommending proposals to address them.

❑The results of the needs assessment may be summarized in the business case document.

❑The process of defining the business need, analyzing the situation, making recommendations, and
defining evaluation criteria is applicable to any organization’s projects.
PROJECT MANAGEMENT ALIGNMENT
Purpose of the Benefits Management Plan
❑ The project benefits management plan is the document that describes how and when the benefits of the project will be delivered, and describes
the mechanisms that should be in place to measure those benefits.

❑ A project benefit is defined as an outcome of actions, behaviours, products, services, or results that provide value to the sponsoring organization as
well as to the project’s intended beneficiaries.

❑ Development of the benefits management plan begins early in the project life cycle with the definition of the target benefits to be realized.

❑ Developing the benefits management plan makes use of the data

❑ Target benefits (e.g., the expected tangible and
Benefit and information documented in the business case and needs
intangible value to be gained by the implementation
Management Salient Aspects assessment.
of the project; financial value is expressed as net
Plan Contents
present value);
❑ For example, the cost-benefit analyses recorded in the documents
illustrate the estimate of costs compared to the value of the benefits
❑ Strategic alignment (e.g., how well the project
realized by the project.
benefits align to the business strategies of the
organization);
❑ The benefits management plan and the project management plan
include a description of how the business value resulting from the
❑ Timeframe for realizing benefits (e.g., benefits by
project becomes part of the organization’s ongoing operations,
phase, short-term, long-term, and ongoing);
including the metrics to be used.
❑ Benefits owner (e.g., the accountable person to
❑ The metrics provide verification of the business value and validation
monitor, record, and report realized benefits
of the project’s success.
throughout the timeframe established in the plan);
❑ Development and maintenance of the project benefits
❑ Metrics (e.g., the measures to be used to show
management plan is an iterative activity.
benefits realized, direct measures, and indirect
measures);
❑ This document complements the business case, project charter, and
project management plan.
❑ Assumptions (e.g., factors expected to be in place or
to be in evidence); and
❑ The project manager works with the sponsor to ensure that the
project charter, project management plan, and the benefits
❑ Risks (e.g., risks for realization of benefits).
management plan remain in alignment throughout the life cycle of
the project.
PROJECT MANAGEMENT ALIGNMENT
Importance of the Project Charter
❑ Defined as a document issued by the project sponsor that formally authorizes the existence of a project and provides the
project manager with the authority to apply organizational resources to project activities.

❑ Document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project
manager with the authority to apply organizational resources to project activities.
DEFINITION
❑ Ensures a common understanding by the stakeholders of the key deliverables, milestones, and the roles and responsibilities of
everyone involved in the project.

Documents the high-level information on the project and on the product, service, or result the project is intended to satisfy, such as:
❑ Project purpose;

❑ Measurable project objectives and related success criteria;

❑ High-level requirements;

❑ High-level project description, boundaries, and key deliverables;

❑ Overall project risk;

❑ Summary milestone schedule;

❑ Preapproved financial resources;

❑ Key stakeholder list;

CONTENTS
❑ Project approval requirements (i.e., what constitutes project success, who decides the project is successful, and who signs off on the
project);

❑ Project exit criteria (i.e., what are the conditions to be met in order to close or to cancel the project or phase);

❑ Assigned project manager, responsibility, and authority level; and

❑ Name and authority of the sponsor or other person(s) authorizing the project charter.
PROJECT MANAGEMENT ALIGNMENT
Project Success Measures (1/2)
❑ Most common challenges in project management is determining whether or not a project is successful.

❑ Traditionally, the project management metrics of time, cost, scope, and quality have been the most important factors in defining the success of a
project.

❑ Project success should also be measured with consideration toward achievement of the project objectives.

❑ It is critical to clearly document the project objectives and to select objectives that are measurable.

❑ The project team needs to be able to assess the project situation, balance the demands, and maintain proactive communication with stakeholders in
order to deliver a successful project.

Three questions that the key SHs and the PM should answer are:

(1) What does success look like for this project?

(2) How will success be measured? Should be agreed upfront by

the PM & SHs
(3) What factors may impact success?

“Project Success May Include Additional Criteria Linked to the Organizational Strategy and to the
Delivery of Business Results”

❑ It is possible for a project to be successful from a scope/schedule/budget viewpoint, and to be unsuccessful from a business
viewpoint.
❑ This can occur when there is a change in the business needs or the market environment before the project is completed.
PROJECT MANAGEMENT ALIGNMENT
Project Success Measures (2/2)
Meeting the agreed-
Achieving upon financial Meeting business
stakeholder measures case nonfinancial
satisfaction; documented in the objectives;
business case.

Completing
Acceptable Completing the movement of an
customer/end-user project benefits organization from its
adoption; management plan current state to the
desired future state;

Integration of
Achieving other
deliverables into the Fulfilling contract
agreed-upon
organization’s terms and
success measures or
operating conditions;
criteria
environment;

Meeting
Achieving agreed-
Meeting governance organizational
upon quality of
criteria; and strategy, goals, and
delivery;
objectives;