A Guide to the Project Management Body of Knowledge (PMBOKR Guide) is a
recognized standard for the project management profession. A standard is a
formal document that describes established norms, methods, processes, and
practices. As with other professions such as law, medicine, and accounting, the
knowledge contained in this standard evolved from the recognized good practices
of project management practitioners who contributed to the development of this
standard.
The first two chapters of the PMBOKR Guide provide an introduction to key
concepts in the project management field. Chapter 3 is the standard for project
management. As such, it summarizes the processes, inputs, and outputs that are
considered good practices on most projects most of the time. Chapters 4 through
12 are the guide to the project management body of knowledge. They expand on
the information in the standard by describing the inputs and outputs as well as
tools and techniques used in managing projects.
The PMBOKR Guide provides guidelines for managing individual projects. It
defines project management and related concepts and describes the project
management life cycle and the related processes.
This chapter defines several key terms and identifies external environmental
and internal organizational factors that surround or influence a
project’ffssuccessAn overview of the PMBOKR Guide is in the following
sections:
- 1.1 Purpose of the PMBOK® Guide
- 1.2 What is a Project?
- 1.3 What is Project Management?
- 1.4 Relationships Among Project Management, Program Management, and
Portfolio Management
- 1.5 Project Management and Operations Management
- 1.6 Role of a Project Manager
- 1.7 Project Management Body of Knowledge
- 1.8 Enterprise Environmental Factors
1.1 Purpose of the PMBOK® Guide
The increasing acceptance of project management indicates that the
application of appropriate knowledge, processes, skills, tools, and techniques
can have a significant impact on project success. The PMBOKR Guide identifies
that subset of the project management body of knowledge generally recognized as
good practice. “Generally recognized” means the knowledge and practices
described are applicable to most projects most of the time, and there is
consensus about their value and usefulness. “Good practice” means there is
general agreement that the application of these skills, tools, and techniques
can enhance the chances of success over a wide range of projects. Good practice
does not mean the knowledge described should always be applied uniformly to all
projects; the organization and/or project management team is responsible for
determining what is appropriate for any given project.
The PMBOKR Guide also provides and promotes a common vocabulary within the
project management profession for discussing, writing, and applying project
management concepts. Such a standard vocabulary is an essential element of a
professional discipline.
The Project Management Institute (PMI) views this standard as a foundational
project management reference for its professional development programs and
certifications.
As a foundational reference, this standard is neither complete nor
all-inclusive. This standard is a guide rather than a methodology. One can use
different methodologies and tools to implement the framework. Appendix D
discusses application area extensions, and Appendix E lists sources of further
information on project management.
In addition to the standards that establish guidelines for project
management processes, tools, and techniques, the Project Management Institute
Code of Ethics and Professional Conduct guides practitioners of the profession
of project management and describes the expectations practitioners have of
themselves and others. The Project Management Institute Code of Ethics and
Professional Conduct is specific about the basic obligation of responsibility,
respect, fairness, and honesty. It requires that practitioners demonstrate a
commitment to ethical and professional conduct. It carries the obligation to
comply with laws, regulations, and organizational and professional policies.
Since practitioners come from diverse backgrounds and cultures, the Code of
Ethics and Professional Conduct applies globally. When dealing with any
stakeholder, practitioners should be committed to honest and fair practices and
respectful dealings. The Project Management Institute Code of Ethics and
Professional Conduct is posted on the PMI website (http://www.pmi.org/). Acceptance of the code is a
requirement for the PMPR certification by PMI.
1.2 What is a Project?
A project is a temporary endeavor undertaken to create a unique product,
service, or result. The temporary nature of projects indicates a definite
beginning and end. The end is reached when the project’s objectives have been
achieved or when the project is terminated because its objectives will not or
cannot be met, or when the need for the project no longer exists. Temporary
does not necessarily mean short in duration. Temporary does not generally apply
to the product, service, or result created by the project; most projects are
undertaken to create a lasting outcome. For example, a project to build a
national monument will create a result expected to last centuries. Projects can
also have social, economic, and environmental impacts that far outlast the
projects themselves.
Every project creates a unique product, service, or result. Although
repetitive elements may be present in some project deliverables, this
repetition does not change the fundamental uniqueness of the project work. For
example, office buildings are constructed with the same or similar materials or
by the same team, but each location is unique—with a different design,
different circumstances, different contractors, and so on.
An ongoing work effort is generally a repetitive process because it follows
an organization’ffffsexistingproceduresIn contrast, because of the unique
nature of projects, there may be uncertainties about the products, services, or
results that the project creates. Project tasks can be new to a project team,
which necessitates more dedicated planning than other routine work. In
addition, projects are undertaken at all organizational levels. A project can
involve a single person, a single organizational unit, or multiple
organizational units.
A project can create:
- A product that can be either a component of another item or an end item
in itself,
- A capability to perform a service (e.g., a business function that
supports production or distribution), or
- A result such as an outcome or document (e.g., a research project that
develops knowledge that can be used to determine whether a trend is present
or a new process will benefit society).
Examples of projects include, but are not limited to:
- Developing a new product or service,
- Effecting a change in the structure, staffing, or style of an
organization,
- Developing or acquiring a new or modified information system,
- Constructing a building or infrastructure, or
- Implementing a new business process or procedure.
1.3 What is Project Management?
Project management is the application of knowledge, skills, tools, and
techniques to project activities to meet the project requirements. Project
management is accomplished through the appropriate application and integration
of the 42 logically grouped project management processes comprising the 5
Process Groups. These 5 Process Groups are:
- Initiating,
- Planning,
- Executing,
- Monitoring and Controlling, and
- Closing.
Managing a project typically includes:
- Identifying requirements,
- Addressing the various needs, concerns, and expectations of the
stakeholders as the project is planned and carried out,
- Balancing the competing project constraints including, but not limited
to:
-
- Scope,
- Quality,
- Schedule,
- Budget,
- Resources, and
- Risk.
The specific project will influence the constraints on which the project
manager needs to focus.
The relationship among these factors is such that if any one factor changes,
at least one other factor is likely to be affected. For example, if the
schedule is shortened, often the budget needs to be increased to add additional
resources to complete the same amount of work in less time. If a budget
increase is not possible, the scope or quality may be reduced to deliver a
product in less time for the same budget. Project stakeholders may have
differing ideas as to which factors are the most important, creating an even
greater challenge. Changing the project requirements may create additional
risks. The project team must be able to assess the situation and balance the
demands in order to deliver a successful project.
Because of the potential for change, the project management plan is
iterative and goes through progressive elaboration throughout the
project’ffffslifecycleProgressive elaboration involves continuously improving
and detailing a plan as more-detailed and specific information and more
accurate estimates become available. Progressive elaboration allows a project
management team to manage to a greater level of detail as the project
evolves.
1.4 Relationships Among Project Management, Program Management, and
Portfolio Management
In mature project management organizations, project management exists in a
broader context governed by program management and portfolio management. As
Figure 1-1 illustrates, organizational strategies and priorities are linked and
have relationships between portfolios and programs, and between programs and
individual projects. Organizational planning impacts the projects by means of
project prioritization based on risk, funding, and the
organization’ffffsstrategicplanOrganizational planning can direct the funding
and support for the component projects on the basis of risk categories,
specific lines of business, or general types of projects, such as
infrastructure and internal process improvement.
Figure 1-1. Portfolio, Program, and Project Management Interactions
Projects, programs, and portfolios have different approaches. Table 1-1
shows the comparison of project, program, and portfolio views across several
domains including change, leadership, management, and others.
Table 1-1. Comparative Overview of Project, Program, and Portfolio
Management
|
PROJECTS |
PROGRAMS |
PORTFOLIOS |
| Scope |
Projects have defined objectives. Scope is progressively
elaborated throughout the project life cycle. |
Programs have a larger scope and provide more significant
benefits. |
Portfolios have a business scope that changes with the
strategic goals of the organization. |
| Change |
Project managers expect change and implement processes to keep
change managed and controlled. |
The program manager must expect change from both inside and
outside the program and be prepared to manage it. |
Portfolio managers continually monitor changes in the broad
environment. |
| Planning |
Project managers progressively elaborate high-level information
into detailed plans throughout the project life cycle. |
Program managers develop the overall program plan and create
high-level plans to guide detailed planning at the component
level. |
Portfolio managers create and maintain necessary processes and
communication relative to the aggregate portfolio. |
| Management |
Project managers manage the project team to meet the project
objectives. |
Program managers manage the program staff and the project
managers; they provide vision and overall leadership. |
Portfolio managers may manage or coordinate portfolio
management staff. |
| Success |
Success is measured by product and project quality,
timeliness, budget compliance, and degree of customer
satisfaction. |
Success is measured by the degree to which the
program satisfies the needs and benefits for which it was
undertaken. |
Success is measured in terms of aggregate
performance of portfolio components. |
| Monitoring |
Project managers monitor and control the work of producing the
products, services or results that the project was undertaken to
produce. |
Program managers monitor the progress of program components to
ensure the overall goals, schedules, budget, and benefits of the
program will be met. |
Portfolio managers monitor aggregate performance and value
indicators. |
1.4.1 Portfolio Management
A portfolio refers to a collection of projects or programs and other work
that are grouped together to facilitate effective management of that work to
meet strategic business objectives. The projects or programs of the portfolio
may not necessarily be interdependent or directly related. For example, an
infrastructure firm that has the strategic objective of “maximizing the return
on its investments” may put together a portfolio that includes a mix of
projects in oil and gas, power, water, roads, rail, and airports. From this
mix, the firm may choose to manage related projects as one program. All of the
power projects may be grouped together as a power program. Similarly, all of
the water projects may be grouped together as a water program.
Portfolio management refers to the centralized management of one or more
portfolios, which includes identifying, prioritizing, authorizing, managing,
and controlling projects, programs, and other related work, to achieve specific
strategic business objectives. Portfolio management focuses on ensuring that
projects and programs are reviewed to prioritize resource allocation, and that
the management of the portfolio is consistent with and aligned to
organizational strategies.
1.4.2 Program Management
A program is defined as a group of related projects managed in a coordinated
way to obtain benefits and control not available from managing them
individually. Programs may include elements of related work outside the scope
of the discrete projects in the program. A project may or may not be part of a
program but a program will always have projects.
Program management is defined as the centralized coordinated management of a
program to achieve the program’s strategic objectives and benefits. Projects
within a program are related through the common outcome or collective
capability. If the relationship between projects is only that of a shared
client, seller, technology, or resource, the effort should be managed as a
portfolio of projects rather than as a program.
Program management focuses on the project interdependencies and helps to
determine the optimal approach for managing them. Actions related to these
interdependencies may include:
- Resolving resource constraints and/or conflicts that affect multiple
projects within the program;
- Aligning organizational/strategic direction that affects project and
program goals and objectives; and
- Resolving issues and change management within a shared governance
structure.
An example of a program would be a new communications satellite system with
projects for design of the satellite and of the ground stations, construction
of each, integration of the system, and launch of the satellite.
1.4.3 Projects and Strategic Planning
Projects are often utilized as a means of achieving an organization’s
strategic plan. Projects are typically authorized as a result of one or more of
the following strategic considerations:
- Market demand (e.g., a car company authorizing a project to build more
fuel-efficient cars in response to gasoline shortages),
- Strategic opportunity/business need (e.g., a training company
authorizing a project to create a new course to increase its
revenues),
- Customer request (e.g., an electric utility authorizing a project to
build a new substation to serve a new industrial park),
- Technological advance (e.g., an electronics firm authorizing a new
project to develop a faster, cheaper, and smaller laptop after advances in
computer memory and electronics technology), and
- Legal requirements (e.g., a chemical manufacturer authorizes a project
to establish guidelines for the handling of a new toxic material).
Projects, within programs or portfolios, are a means of achieving
organizational goals and objectives, often in the context of a strategic plan.
Although a group of projects within a program can have discrete benefits, they
can also contribute to the benefits of the program, to the objectives of the
portfolio, and to the strategic plan of the organization.
Organizations manage portfolios based on their strategic plan, which may
dictate a hierarchy to the portfolio, program, or projects involved. One goal
of portfolio management is to maximize the value of the portfolio by the
careful examination of its components—the constituent programs, projects, and
other related work. Those components contributing the least to the portfolio’s
strategic objectives may be excluded. In this way, an organization’s strategic
plan becomes the primary factor guiding investments in projects. At the same
time, projects provide feedback to programs and portfolios by means of status
reports and change requests that may impact other projects, programs, or
portfolios. The needs of the projects, including the resource needs, are rolled
up and communicated back to the portfolio level, which in turn sets the
direction for organizational planning.
1.4.4 Project Management Office
A project management office (PMO) is an organizational body or entity
assigned various responsibilities related to the centralized and coordinated
management of those projects under its domain. The responsibilities of a PMO
can range from providing project management support functions to actually being
responsible for the direct management of a project.
The projects supported or administered by the PMO may not be related, other
than by being managed together. The specific form, function, and structure of a
PMO is dependent upon the needs of the organization that it supports.
A PMO may be delegated the authority to act as an integral stakeholder and a
key decision maker during the beginning of each project, to make
recommendations, or to terminate projects or take other actions as required to
keep business objectives consistent. In addition, the PMO may be involved in
the selection, management, and deployment of shared or dedicated project
resources.
A primary function of a PMO is to support project managers in a variety of
ways which may include, but are not limited to:
- Managing shared resources across all projects administered by the
PMO;
- Identifying and developing project management methodology, best
practices, and standards;
- Coaching, mentoring, training, and oversight;
- Monitoring compliance with project management standards, policies,
procedures, and templates via project audits;
- Developing and managing project policies, procedures, templates, and
other shared documentation (organizational process assets); and
- Coordinating communication across projects.
Project managers and PMOs pursue different objectives and, as such, are
driven by different requirements. All of these efforts, however, are aligned
with the strategic needs of the organization. Differences between the role of
project managers and a PMO may include the following:
- The project manager focuses on the specified project objectives, while
the PMO manages major program scope changes which may be seen as potential
opportunities to better achieve business objectives.
- The project manager controls the assigned project resources to best
meet project objectives while the PMO optimizes the use of shared
organizational resources across all projects.
- The project manager manages the constraints (scope, schedule, cost, and
quality, etc.) of the individual projects while the PMO manages the
methodologies, standards, overall risk/opportunity, and interdependencies
among projects at the enterprise level.
1.5 Project Management and Operations Management
Operations are an organizational function performing the ongoing execution
of activities that produce the same product or provide a repetitive service.
Examples include: production operations, manufacturing operations, and
accounting operations. Though temporary in nature, projects can help achieve
the organizational goals when they are aligned with the organization’s
strategy. Organizations sometimes change their operations, products, or systems
by creating strategic business initiatives. Projects require project management
while operations require business process management or operations management.
Projects can intersect with operations at various points during the product
life cycle, such as:
- At each closeout phase;
- When developing a new product, upgrading a product, or expanding
outputs;
- Improvement of operations or the product development process; or
- Until the divestment of the operations at the end of the product life
cycle.
At each point, deliverables and knowledge are transferred between the
project and operations for implementation of the delivered work. This occurs
through a transfer of project resources to operations toward the end of the
project, or through a transfer of operational resources to the project at the
start.
Operations are permanent endeavors that produce repetitive outputs, with
resources assigned to do basically the same set of tasks according to the
standards institutionalized in a product life cycle. Unlike the ongoing nature
of operations, projects are temporary endeavors.
1.6 Role of a Project Manager
The project manager is the person assigned by the performing organization to
achieve the project objectives. The role of a project manager is distinct from
a functional manager or operations manager. Typically the functional manager is
focused on providing management oversight for an administrative area, and
operations managers are responsible for a facet of the core business.
Depending on the organizational structure, a project manager may report to a
functional manager. In other cases, a project manager may be one of several
project managers who report to a portfolio or program manager that is
ultimately responsible for enterprise-wide projects. In this type of structure,
the project manager works closely with the portfolio or program manager to
achieve the project objectives and to ensure the project plan aligns with the
overarching program plan.
Many of the tools and techniques for managing projects are specific to
project management. However, understanding and applying the knowledge, tools,
and techniques that are recognized as good practice is not sufficient for
effective project management. In addition to any area-specific skills and
general management proficiencies required for the project, effective project
management requires that the project manager possess the following
characteristics:
- Knowledge. This refers to what the project manager knows about project
management.
- Performance. This refers to what the project manager is able to do or
accomplish while applying their project management knowledge.
- Personal. This refers to how the project manager behaves when
performing the project or related activity. Personal effectiveness
encompasses attitudes, core personality characteristics and leadership—the
ability to guide the project team while achieving project objectives and
balancing the project constraints.
1.7 Project Management Body of Knowledge
The PMBOK® Guide is the standard for managing most projects most of the time
across many types of industries. This standard describes the project management
processes, tools, and techniques used to manage a project toward a successful
outcome.
This standard is unique to the project management field and has
interrelationships to other project management disciplines such as program
management and portfolio management.
Project management standards do not address all details of every topic. This
standard is limited to single projects and the project management processes
that are generally recognized as good practice. Other standards may be
consulted for additional information on the broader context in which projects
are accomplished. Management of programs is addressed in The Standard for
Program Management, and management of portfolios is addressed in The Standard
for Portfolio Management. Examination of an enterprise’s project management
process capabilities is addressed in Organizational Project Management Maturity
Model (OPM3®).
1.8 Enterprise Environmental Factors
Enterprise environmental factors refer to both internal and external
environmental factors that surround or influence a project’s success. These
factors may come from any or all of the enterprises involved in the project.
Enterprise environmental factors may enhance or constrain project management
options and may have a positive or negative influence on the outcome. They are
considered as inputs to most planning processes.
Enterprise environmental factors include, but are not limited to:
- Organizational culture, structure, and processes;
- Government or industry standards (e.g., regulatory agency regulations,
codes of conduct, product standards, quality standards, and workmanship
standards);
- Infrastructure (e.g., existing facilities and capital equipment);
- Existing human resources (e.g., skills, disciplines, and knowledge,
such as design, development, law, contracting, and purchasing);
- Personnel administration (e.g., staffing and retention guidelines,
employee performance reviews and training records, overtime policy, and
time tracking);
- Company work authorization systems;
- Marketplace conditions;
- Stakeholder risk tolerances;
- Political climate;
- Organization’s established communications channels;
- Commercial databases (e.g., standardized cost estimating data, industry
risk study information, and risk databases); and
- Project management information systems (e.g., an automated tool, such
as a scheduling software tool, a configuration management system, an
information collection and distribution system, or web interfaces to other
online automated systems).