0. A Guide To Project Management Body Of Knowledge

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INCLUDES: THE STANDARD

FOR PROJECT MANAGEMENT

ANSI/PMI 99-001-2017

A Guide to the

PROJECT MANAGEMENT

BODY OF KNOWLEDGE

(PMBOK® GUIDE )

Sixth Edition

ISBN: 978-1-62825-184-5

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Library of Congress Cataloging-in-Publication Data

Names: Project Management Institute, publisher.

Title: A guide to the project management body of knowledge (PMBOK guide) / Project Management Institute.

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Description: Sixth edition. | Newtown Square, PA: Project Management Institute, 2017. | Series: PMBOK guide | Includes

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��

TABLE OF CONTENTS

PART 1.

A GUIDE TO THE PROJECT MANAGEMENT BODY OF KNOWLEDGE (PMBOK® Guide)

1. INTRODUCTION ...........................................................................................................................1

1.1 Overview and Purpose of this Guide ................................................................................1

1.1.1 The Standard for Project Management ............................................................... 2

1.1.2 Common Vocabulary ............................................................................................ 3

1.1.3 Code of Ethics and Professional Conduct ........................................................... 3

1.2 Foundational Elements .....................................................................................................4

1.2.1 Projects .................................................................................................................4

1.2.2 The Importance of Project Management ...........................................................10

1.2.3 Relationship of Project, Program, Portfolio,

and Operations Management .............................................................................11

1.2.4 Components of the Guide ...................................................................................17

1.2.5 Tailoring ..............................................................................................................28

1.2.6 Project Management Business Documents ......................................................29

2. THE ENVIRONMENT IN WHICH PROJECTS OPERATE ................................................................ 37

2.1 Overview ......................................................................................................................... 37

2.2 Enterprise Environmental Factors.................................................................................. 38

2.2.1 EEFs Internal to the Organization ...................................................................... 38

2.2.2 EEFs External to the Organization ..................................................................... 39

II Table of Contents

2.3 Organizational Process Assets ...................................................................................... 39

2.3.1 Processes, Policies, and Procedures .................................................................40

2.3.2 Organizational Knowledge Repositories ........................................................... 41

2.4 Organizational Systems .................................................................................................42

2.4.1 Overview .............................................................................................................42

2.4.2 Organizational Governance Frameworks .......................................................... 43

2.4.3 Management Elements ......................................................................................44

2.4.4 Organizational Structure Types ......................................................................... 45

3. THE ROLE OF THE PROJECT MANAGER.................................................................................... 51

3.1 Overview ......................................................................................................................... 51

3.2 Definition of a Project Manager ..................................................................................... 52

3.3 The Project Manager’s Sphere of Influence .................................................................. 52

3.3.1 Overview .............................................................................................................52

3.3.2 The Project..........................................................................................................53

3.3.3 The Organization ................................................................................................54

3.3.4 The Industry .......................................................................................................55

3.3.5 Professional Discipline ......................................................................................56

3.3.6 Across Disciplines .............................................................................................. 56

3.4 Project Manager Competences ...................................................................................... 56

3.4.1 Overview .............................................................................................................56

3.4.2 Technical Project Management Skills ...............................................................58

3.4.3 Strategic and Business Management Skills .....................................................58

3.4.4 Leadership Skills ................................................................................................60

3.4.5 Comparison of Leadership and Management ...................................................64

3.5 Performing Integration ................................................................................................... 66

3.5.1 Performing Integration at the Process Level.....................................................67

3.5.2 Integration at the Cognitive Level ......................................................................67

3.5.3 Integration at the Context Level ........................................................................67

3.5.4 Integration and Complexity................................................................................68

III

4. PROJECT INTEGRATION MANAGEMENT ................................................................................... 69

4.1 Develop Project Charter .................................................................................................75

4.1.1 Develop Project Charter: Inputs .........................................................................77

4.1.2 Develop Project Charter: Tools and Techniques ................................................ 79

4.1.3 Develop Project Charter: Outputs ......................................................................81

4.2 Develop Project Management Plan ................................................................................82

4.2.1 Develop Project Management Plan: Inputs .......................................................83

4.2.2 Develop Project Management Plan: Tools and Techniques .............................. 85

4.2.3 Develop Project Management Plan: Outputs .....................................................86

4.3 Direct and Manage Project Work ...................................................................................90

4.3.1 Direct and Manage Project Work: Inputs .......................................................... 92

4.3.2 Direct and Manage Project Work: Tools and Techniques .................................94

4.3.3 Direct and Manage Project Work: Outputs ........................................................95

4.4 Manage Project Knowledge ........................................................................................... 98

4.4.1 Manage Project Knowledge: Inputs .................................................................100

4.4.2 Manage Project Knowledge: Tools and Techniques ........................................ 102

4.4.3 Manage Project Knowledge: Outputs .............................................................. 104

4.5 Monitor and Control Project Work ...............................................................................105

4.5.1 Monitor and Control Project Work: Inputs ....................................................... 107

4.5.2 Monitor and Control Project Work: Tools and Techniques .............................. 110

4.5.3 Monitor and Control Project Work: Outputs ....................................................112

4.6 Perform Integrated Change Control .............................................................................113

4.6.1 Perform Integrated Change Control: Inputs ....................................................116

4.6.2 Perform Integrated Change Control: Tools and Techniques ........................... 118

4.6.3 Perform Integrated Change Control: Outputs .................................................. 120

4.7 Close Project or Phase .................................................................................................121

4.7.1 Close Project or Phase: Inputs .........................................................................124

4.7.2 Close Project or Phase: Tools and Techniques ................................................ 126

4.7.3 Close Project or Phase: Outputs ......................................................................127

IV Table of Contents

5. PROJECT SCOPE MANAGEMENT ............................................................................................129

5.1 Plan Scope Management ..............................................................................................134

5.1.1 Plan Scope Management: Inputs .....................................................................135

5.1.2 Plan Scope Management: Tools and Techniques ............................................ 136

5.1.3 Plan Scope Management: Outputs .................................................................. 137

5.2 Collect Requirements ................................................................................................... 138

5.2.1 Collect Requirements: Inputs ..........................................................................140

5.2.2 Collect Requirements: Tools and Techniques .................................................142

5.2.3 Collect Requirements: Outputs ........................................................................147

5.3 Define Scope .................................................................................................................150

5.3.1 Define Scope: Inputs ........................................................................................152

5.3.2 Define Scope: Tools and Techniques ............................................................... 153

5.3.3 Define Scope: Outputs ......................................................................................154

5.4 Create WBS ...................................................................................................................156

5.4.1 Create WBS: Inputs ..........................................................................................157

5.4.2 Create WBS: Tools and Techniques .................................................................158

5.4.3 Create WBS: Outputs ........................................................................................161

5.5 Validate Scope ..............................................................................................................163

5.5.1 Validate Scope: Inputs ..................................................................................... 165

5.5.2 Validate Scope: Tools and Techniques ............................................................166

5.5.3 Validate Scope: Outputs ...................................................................................166

5.6 Control Scope ...............................................................................................................167

5.6.1 Control Scope: Inputs ....................................................................................... 169

5.6.2 Control Scope: Tools and Techniques ..............................................................170

5.6.3 Control Scope: Outputs .................................................................................... 170

6. PROJECT SCHEDULE MANAGEMENT...................................................................................... 173

6.1 Plan Schedule Management ........................................................................................179

6.1.1 Plan Schedule Management: Inputs ................................................................ 180

6.1.2 Plan Schedule Management: Tools and Techniques .......................................181

6.1.3 Plan Schedule Management: Outputs ............................................................. 181

6.2 Define Activities ............................................................................................................ 183

6.2.1 Define Activities: Inputs ................................................................................... 184

6.2.2 Define Activities: Tools and Techniques ..........................................................184

6.2.3 Define Activities: Outputs ................................................................................185

6.3 Sequence Activities ......................................................................................................187

6.3.1 Sequence Activities: Inputs .............................................................................188

6.3.2 Sequence Activities: Tools and Techniques .................................................... 189

6.3.3 Sequence Activities: Outputs ...........................................................................194

6.4 Estimate Activity Durations ..........................................................................................195

6.4.1 Estimate Activity Durations: Inputs .................................................................198

6.4.2 Estimate Activity Durations: Tools and Techniques ........................................ 200

6.4.3 Estimate Activity Durations: Outputs .............................................................. 203

6.5 Develop Schedule .........................................................................................................205

6.5.1 Develop Schedule: Inputs ................................................................................207

6.5.2 Develop Schedule: Tools and Techniques ....................................................... 209

6.5.3 Develop Schedule: Outputs ..............................................................................217

6.6 Control Schedule .......................................................................................................... 222

6.6.1 Control Schedule: Inputs ..................................................................................224

6.6.2 Control Schedule: Tools and Techniques .........................................................226

6.6.3 Control Schedule: Outputs ............................................................................... 228

7. PROJECT COST MANAGEMENT .............................................................................................. 231

7.1 Plan Cost Management ................................................................................................235

7.1.1 Plan Cost Management: Inputs ........................................................................ 236

7.1.2 Plan Cost Management: Tools and Techniques ...............................................237

7.1.3 Plan Cost Management: Outputs .....................................................................238

7.2 Estimate Costs .............................................................................................................. 240

7.2.1 Estimate Costs: Inputs ..................................................................................... 241

7.2.2 Estimate Costs: Tools and Techniques ............................................................ 243

7.2.3 Estimate Costs: Outputs ................................................................................... 246

7.3 Determine Budget .........................................................................................................248

7.3.1 Determine Budget: Inputs ................................................................................250

7.3.2 Determine Budget: Tools and Techniques ....................................................... 252

7.3.3 Determine Budget: Outputs..............................................................................254

VI Table of Contents

7.4 Control Costs ................................................................................................................ 257

7.4.1 Control Costs: Inputs ........................................................................................259

7.4.2 Control Costs: Tools and Techniques ............................................................... 260

7.4.3 Control Costs: Outputs ..................................................................................... 268

8. PROJECT QUALITY MANAGEMENT .........................................................................................271

8.1 Plan Quality Management ............................................................................................ 277

8.1.1 Plan Quality Management: Inputs ................................................................... 279

8.1.2 Plan Quality Management: Tools and Techniques ..........................................281

8.1.3 Plan Quality Management: Outputs ................................................................. 286

8.2 Manage Quality .............................................................................................................288

8.2.1 Manage Quality: Inputs ....................................................................................290

8.2.2 Manage Quality: Tools and Techniques ........................................................... 292

8.2.3 Manage Quality: Outputs ..................................................................................296

8.3 Control Quality .............................................................................................................. 298

8.3.1 Control Quality: Inputs ..................................................................................... 300

8.3.2 Control Quality: Tools and Techniques ............................................................302

8.3.3 Control Quality: Outputs ................................................................................... 305

9. PROJECT RESOURCE MANAGEMENT ..................................................................................... 307

9.1 Plan Resource Management ........................................................................................312

9.1.1 Plan Resource Management: Inputs................................................................314

9.1.2 Plan Resource Management: Tools and Techniques ....................................... 315

9.1.3 Plan Resource Management: Outputs ............................................................. 318

9.2 Estimate Activity Resources ........................................................................................ 320

9.2.1 Estimate Activity Resources: Inputs ................................................................322

9.2.2 Estimate Activity Resources: Tools and Techniques ....................................... 324

9.2.3 Estimate Activity Resources: Outputs .............................................................325

9.3 Acquire Resources .......................................................................................................328

9.3.1 Acquire Resources: Inputs ............................................................................... 330

9.3.2 Acquire Resources: Tools and Techniques ......................................................332

9.3.3 Acquire Resources: Outputs ............................................................................333

VII

9.4 Develop Team................................................................................................................336

9.4.1 Develop Team: Inputs .......................................................................................339

9.4.2 Develop Team: Tools and Techniques .............................................................. 340

9.4.3 Develop Team: Outputs .................................................................................... 343

9.5 Manage Team................................................................................................................345

9.5.1 Manage Team: Inputs .......................................................................................347

9.5.2 Manage Team: Tools and Techniques .............................................................. 348

9.5.3 Manage Team: Outputs .................................................................................... 350

9.6 Control Resources ........................................................................................................ 352

9.6.1 Control Resources: Inputs ................................................................................ 354

9.6.2 Control Resources: Tools and Techniques ....................................................... 356

9.6.3 Control Resources: Outputs .............................................................................357

10. PROJECT COMMUNICATIONS MANAGEMENT ...................................................................... 359

10.1 Plan Communications Management ..........................................................................366

10.1.1 Plan Communications Management: Inputs .................................................368

10.1.2 Plan Communications Management: Tools and Techniques ........................ 369

10.1.3 Plan Communications Management: Outputs ...............................................377

10.2 Manage Communications ..........................................................................................379

10.2.1 Manage Communications: Inputs .................................................................. 381

10.2.2 Manage Communications: Tools and Techniques .........................................383

10.2.3 Manage Communications: Outputs ............................................................... 387

10.3 Monitor Communications ........................................................................................... 388

10.3.1 Monitor Communications: Inputs .................................................................. 390

10.3.2 Monitor Communications: Tools and Techniques .........................................391

10.3.3 Monitor Communications: Outputs ................................................................392

11. PROJECT RISK MANAGEMENT .............................................................................................395

11.1 Plan Risk Management .............................................................................................. 401

11.1.1 Plan Risk Management: Inputs ......................................................................402

11.1.2 Plan Risk Management: Tools and Techniques ............................................. 404

11.1.3 Plan Risk Management: Outputs ...................................................................405

VIII Table of Contents

11.2 Identify Risks .............................................................................................................. 409

11.2.1 Identify Risks: Inputs ..................................................................................... 411

11.2.2 Identify Risks: Tools and Techniques ............................................................ 414

11.2.3 Identify Risks: Outputs ................................................................................... 417

11.3 Perform Qualitative Risk Analysis .............................................................................419

11.3.1 Perform Qualitative Risk Analysis: Inputs ..................................................... 421

11.3.2 Perform Qualitative Risk Analysis: Tools and Techniques ............................422

11.3.3 Perform Qualitative Risk Analysis: Outputs ..................................................427

11.4 Perform Quantitative Risk Analysis ........................................................................... 428

11.4.1 Perform Quantitative Risk Analysis: Inputs ..................................................430

11.4.2 Perform Quantitative Risk Analysis: Tools and Techniques .........................431

11.4.3 Perform Quantitative Risk Analysis: Outputs ................................................ 436

11.5 Plan Risk Responses ..................................................................................................437

11.5.1 Plan Risk Responses: Inputs ......................................................................... 439

11.5.2 Plan Risk Responses: Tools and Techniques ................................................ 441

11.5.3 Plan Risk Responses: Outputs .......................................................................447

11.6 Implement Risk Responses ........................................................................................449

11.6.1 Implement Risk Responses: Inputs ............................................................... 450

11.6.2 Implement Risk Responses: Tools and Techniques ...................................... 451

11.6.3 Implement Risk Responses: Outputs.............................................................451

11.7 Monitor Risks .............................................................................................................. 453

11.7.1 Monitor Risks: Inputs ..................................................................................... 455

11.7.2 Monitor Risks: Tools and Techniques ............................................................ 456

11.7.3 Monitor Risks: Outputs ..................................................................................457

12. PROJECT PROCUREMENT MANAGEMENT ............................................................................459

12.1 Plan Procurement Management ................................................................................ 466

12.1.1 Plan Procurement Management: Inputs ........................................................468

12.1.2 Plan Procurement Management: Tools and Techniques ...............................472

12.1.3 Plan Procurement Management: Outputs ..................................................... 475

12.2 Conduct Procurements ...............................................................................................482

12.2.1 Conduct Procurements: Inputs ...................................................................... 484

12.2.2 Conduct Procurements: Tools and Techniques ............................................. 487

12.2.3 Conduct Procurements: Outputs....................................................................488

12.3 Control Procurements ................................................................................................492

12.3.1 Control Procurements: Inputs ........................................................................495

12.3.2 Control Procurements: Tools and Techniques ............................................... 497

12.3.3 Control Procurements: Outputs .....................................................................499

13. PROJECT STAKEHOLDER MANAGEMENT .............................................................................503

13.1 Identify Stakeholders ................................................................................................. 507

13.1.1 Identify Stakeholders: Inputs .........................................................................509

13.1.2 Identify Stakeholders: Tools and Techniques ................................................ 511

13.1.3 Identify Stakeholders: Outputs ...................................................................... 514

13.2 Plan Stakeholder Engagement ................................................................................... 516

13.2.1 Plan Stakeholder Engagement: Inputs .......................................................... 518

13.2.2 Plan Stakeholder Engagement: Tools and Techniques .................................520

13.2.3 Plan Stakeholder Engagement: Outputs ........................................................ 522

13.3 Manage Stakeholder Engagement .............................................................................523

13.3.1 Manage Stakeholder Engagement: Inputs ....................................................525

13.3.2 Manage Stakeholder Engagement: Tools and Techniques ........................... 526

13.3.3 Manage Stakeholder Engagement: Outputs ..................................................528

13.4 Monitor Stakeholder Engagement .............................................................................530

13.4.1 Monitor Stakeholder Engagement: Inputs.....................................................532

13.4.2 Monitor Stakeholder Engagement: Tools and Techniques ............................533

13.4.3 Monitor Stakeholder Engagement: Outputs .................................................. 535

REFERENCES .............................................................................................................................. 537

X Table of Contents

PART 2.

THE STANDARD FOR PROJECT MANAGEMENT

1. INTRODUCTION .......................................................................................................................541

1.1 Projects and Project Management ............................................................................... 542

1.2 Relationships Among Portfolios, Programs, and Projects .......................................... 543

1.3 Linking Organizational Governance and Project Governance ....................................545

1.4 Project Success and Benefits Management ................................................................ 546

1.5 The Project Life Cycle ................................................................................................... 547

1.6 Project Stakeholders ....................................................................................................550

1.7 Role of the Project Manager .........................................................................................552

1.8 Project Management Knowledge Areas ......................................................................553

1.9 Project Management Process Groups .........................................................................554

1.10 Enterprise Environmental Factors and Organizational Process Assets ................... 557

1.11 Tailoring the Project Artifacts .................................................................................... 558

2. INITIATING PROCESS GROUP .................................................................................................561

2.1 Develop Project Charter ...............................................................................................563

2.2 Identify Stakeholders ................................................................................................... 563

2.2.1 Project Management Plan Components .......................................................... 564

2.2.2 Project Documents Examples ..........................................................................564

2.2.3 Project Management Plan Updates ................................................................. 564

2.2.4 Project Documents Updates ............................................................................564

3. PLANNING PROCESS GROUP .................................................................................................. 565

3.1 Develop Project Management Plan ..............................................................................567

3.2 Plan Scope Management ..............................................................................................567

3.2.1 Project Management Plan Components .......................................................... 568

3.3 Collect Requirements ................................................................................................... 568

3.3.1 Project Management Plan Components .......................................................... 568

3.3.2 Project Documents Examples ..........................................................................569

3.4 Define Scope .................................................................................................................569

3.4.1 Project Management Plan Components .......................................................... 569

3.4.2 Project Documents Examples ..........................................................................569

3.4.3 Project Documents Updates ............................................................................570

3.5 Create WBS ...................................................................................................................570

3.5.1 Project Management Plan Components .......................................................... 570

3.5.2 Project Documents Examples ..........................................................................571

3.5.3 Project Documents Updates ............................................................................571

3.6 Plan Schedule Management ........................................................................................ 571

3.6.1 Project Management Plan Components .......................................................... 572

3.7 Define Activities ............................................................................................................ 572

3.7.1 Project Management Plan Components .......................................................... 572

3.7.2 Project Management Plan Updates ................................................................. 572

3.8 Sequence Activities ......................................................................................................573

3.8.1 Project Management Plan Components .......................................................... 573

3.8.2 Project Documents Examples ..........................................................................573

3.8.3 Project Documents Updates ............................................................................573

3.9 Estimate Activity Durations ..........................................................................................574

3.9.1 Project Management Plan Components .......................................................... 574

3.9.2 Project Documents Examples ..........................................................................574

3.9.3 Project Documents Updates ............................................................................575

3.10 Develop Schedule .......................................................................................................575

3.10.1 Project Management Plan Components ........................................................ 575

3.10.2 Project Documents Examples ........................................................................576

3.10.3 Project Management Plan Updates ............................................................... 576

3.10.4 Project Documents Updates ..........................................................................576

3.11 Plan Cost Management ..............................................................................................577

3.11.1 Project Management Plan Components ........................................................ 577

XII Table of Contents

3.12 Estimate Costs ............................................................................................................ 577

3.12.1 Project Management Plan Components ........................................................ 578

3.12.2 Project Documents Examples ........................................................................578

3.12.3 Project Documents Updates ..........................................................................578

3.13 Determine Budget .......................................................................................................578

3.13.1 Project Management Plan Components ........................................................ 579

3.13.2 Project Documents Examples ........................................................................579

3.13.3 Project Documents Updates ..........................................................................579

3.14 Plan Quality Management .......................................................................................... 580

3.14.1 Project Management Plan Components ........................................................ 580

3.14.2 Project Documents Examples ........................................................................580

3.14.3 Project Management Plan Updates ............................................................... 581

3.14.4 Project Documents Updates ..........................................................................581

3.15 Plan Resource Management ......................................................................................581

3.15.1 Project Management Plan Components ........................................................ 582

3.15.2 Project Documents ......................................................................................... 582

3.15.3 Project Documents Updates ..........................................................................582

3.16 Estimate Activity Resources ...................................................................................... 582

3.16.1 Project Management Plan Components ........................................................ 583

3.16.2 Project Documents Examples ........................................................................583

3.16.3 Project Documents Updates ..........................................................................583

3.17 Plan Communications Management ..........................................................................584

3.17.1 Project Management Plan Components ........................................................ 584

3.17.2 Project Documents Examples ........................................................................584

3.17.3 Project Management Plan Updates ............................................................... 584

3.17.4 Project Documents Updates ..........................................................................585

3.18 Plan Risk Management .............................................................................................. 585

3.18.1 Project Management Plan Components ........................................................ 585

3.18.2 Project Documents Examples ........................................................................585

XIII

3.19 Identify Risks .............................................................................................................. 586

3.19.1 Project Management Plan Components ........................................................ 586

3.19.2 Project Documents Examples ........................................................................587

3.19.3 Project Documents Updates ..........................................................................587

3.20 Perform Qualitative Risk Analysis .............................................................................588

3.20.1 Project Management Plan Components ........................................................ 588

3.20.2 Project Documents Examples ........................................................................588

3.20.3 Project Documents Updates ..........................................................................589

3.21 Perform Quantitative Risk Analysis ........................................................................... 589

3.21.1 Project Management Plan Components ........................................................ 589

3.21.2 Project Documents Examples ........................................................................590

3.21.3 Project Documents Updates ..........................................................................590

3.22 Plan Risk Responses ..................................................................................................590

3.22.1 Project Management Plan Components ........................................................ 591

3.22.2 Project Documents Examples ........................................................................591

3.22.3 Project Management Plan Updates ............................................................... 591

3.22.4 Project Documents Updates ..........................................................................592

3.23 Plan Procurement Management ................................................................................ 592

3.23.1 Project Management Plan Components ........................................................ 593

3.23.2 Project Documents Examples ........................................................................593

3.23.3 Project Documents Updates ..........................................................................593

3.24 Plan Stakeholder Engagement ................................................................................... 594

3.24.1 Project Management Plan Components ........................................................ 594

3.24.2 Project Documents Examples ........................................................................594

4. EXECUTING PROCESS GROUP ................................................................................................595

4.1 Direct and Manage Project Work ................................................................................. 597

4.1.1 Project Management Plan Components .......................................................... 597

4.1.2 Project Documents Examples ..........................................................................597

4.1.3 Project Management Plan Updates ................................................................. 598

4.1.4 Project Documents Updates ............................................................................598

XIV Table of Contents

4.2 Manage Project Knowledge ......................................................................................... 598

4.2.1 Project Management Plan Components .......................................................... 599

4.2.2 Project Documents ........................................................................................... 599

4.2.3 Project Management Plan Updates ................................................................. 599

4.3 Manage Quality .............................................................................................................599

4.3.1 Project Management Plan Components .......................................................... 600

4.3.2 Project Documents Examples ..........................................................................600

4.3.3 Project Management Plan Updates ................................................................. 600

4.3.4 Project Documents Updates ............................................................................600

4.4 Acquire Resources .......................................................................................................601

4.4.1 Project Management Plan Components .......................................................... 601

4.4.2 Project Documents Examples ..........................................................................601

4.4.3 Project Management Plan Updates ................................................................. 602

4.4.4 Project Documents Updates ............................................................................602

4.5 Develop Team................................................................................................................602

4.5.1 Project Management Plan Components .......................................................... 603

4.5.2 Project Documents Examples ..........................................................................603

4.5.3 Project Management Plan Updates ................................................................. 603

4.5.4 Project Documents Updates ............................................................................603

4.6 Manage Team................................................................................................................604

4.6.1 Project Management Plan Components .......................................................... 604

4.6.2 Project Documents Examples ..........................................................................604

4.6.3 Project Management Plan Updates ................................................................. 605

4.6.4 Project Documents Updates ............................................................................605

4.7 Manage Communications ............................................................................................605

4.7.1 Project Management Plan Components .......................................................... 606

4.7.2 Project Documents Example ............................................................................606

4.7.3 Project Management Plan Updates ................................................................. 606

4.7.4 Project Documents Updates ............................................................................606

4.8 Implement Risk Responses ..........................................................................................607

4.8.1 Project Management Plan Components .......................................................... 607

4.8.2 Project Documents Examples ..........................................................................607

4.8.3 Project Documents Updates ............................................................................607

4.9 Conduct Procurements .................................................................................................608

4.9.1 Project Management Plan Components .......................................................... 608

4.9.2 Project Documents Examples ..........................................................................609

4.9.3 Project Management Plan Updates ................................................................. 609

4.9.4 Project Documents Updates ............................................................................609

4.10 Manage Stakeholder Engagement .............................................................................610

4.10.1 Project Management Plan Components ........................................................ 610

4.10.2 Project Documents Examples ........................................................................610

4.10.3 Project Management Plan Updates ............................................................... 611

4.10.4 Project Documents Updates ..........................................................................611

5. MONITORING AND CONTROLLING PROCESS GROUP ............................................................613

5.1 Monitor and Control Project Work ...............................................................................615

5.1.1 Project Management Plan Components .......................................................... 615

5.1.2 Project Documents Examples ..........................................................................615

5.1.3 Project Management Plan Updates ................................................................. 616

5.1.4 Project Documents Updates ............................................................................616

5.2 Perform Integrated Change Control .............................................................................616

5.2.1 Project Management Plan Components .......................................................... 617

5.2.2 Project Documents Examples ..........................................................................617

5.2.3 Project Management Plan Updates ................................................................. 617

5.2.4 Project Documents Updates ............................................................................617

5.3 Validate Scope .............................................................................................................. 618

5.3.1 Project Management Plan Components .......................................................... 618

5.3.2 Project Documents Examples ..........................................................................618

5.3.3 Project Documents Updates ............................................................................619

XVI Table of Contents

5.4 Control Scope ...............................................................................................................619

5.4.1 Project Management Plan Components .......................................................... 619

5.4.2 Project Documents Examples ..........................................................................620

5.4.3 Project Management Plan Updates ................................................................. 620

5.4.4 Project Documents Updates ............................................................................620

5.5 Control Schedule .......................................................................................................... 621

5.5.1 Project Management Plan Components .......................................................... 621

5.5.2 Project Documents Examples ..........................................................................621

5.5.3 Project Management Plan Updates ................................................................. 622

5.5.4 Project Documents Updates ............................................................................622

5.6 Control Costs ................................................................................................................ 622

5.6.1 Project Management Plan Components .......................................................... 623

5.6.2 Project Documents Examples ..........................................................................623

5.6.3 Project Management Plan Updates ................................................................. 623

5.6.4 Project Documents Updates ............................................................................623

5.7 Control Quality .............................................................................................................. 624

5.7.1 Project Management Plan Components .......................................................... 624

5.7.2 Project Documents Examples ..........................................................................624

5.7.3 Project Management Plan Updates ................................................................. 625

5.7.4 Project Documents Updates ............................................................................625

5.8 Control Resources ........................................................................................................ 625

5.8.1 Project Management Plan Components .......................................................... 626

5.8.2 Project Documents Examples ..........................................................................626

5.8.3 Project Management Plan Updates ................................................................. 626

5.8.4 Project Documents Updates ............................................................................626

5.9 Monitor Communications ............................................................................................. 627

5.9.1 Project Management Plan Components .......................................................... 627

5.9.2 Project Documents Examples ..........................................................................627

5.9.3 Project Management Plan Updates ................................................................. 628

5.9.4 Project Documents Updates ............................................................................628

XVII

5.10 Monitor Risks .............................................................................................................. 628

5.10.1 Project Management Plan Components ........................................................ 629

5.10.2 Project Documents Examples ........................................................................629

5.10.3 Project Management Plan Updates ............................................................... 629

5.10.4 Project Documents Updates ..........................................................................629

5.11 Control Procurements ................................................................................................629

5.11.1 Project Management Plan Components ........................................................ 630

5.11.2 Project Documents Examples ........................................................................630

5.11.3 Project Management Plan Updates ............................................................... 631

5.11.4 Project Documents Updates ..........................................................................631

5.12 Monitor Stakeholder Engagement .............................................................................631

5.12.1 Project Management Plan Components ........................................................ 632

5.12.2 Project Documents Examples ........................................................................632

5.12.3 Project Management Plan Updates ............................................................... 632

5.12.4 Project Documents Updates ..........................................................................632

6. CLOSING PROCESS GROUP ..................................................................................................... 633

6.1 Close Project or Phase .................................................................................................634

6.1.1 Project Management Plan Components .......................................................... 634

6.1.2 Project Documents Examples ..........................................................................635

6.1.3 Project Documents Updates ............................................................................635

XVIII Table of Contents

PART 3.

APPENDICES, GLOSSARY, AND INDEX

APPENDIX X1

SIXTH EDITION CHANGES .......................................................................................................... 639

APPENDIX X2

CONTRIBUTORS AND REVIEWERS OF THE PMBOK® GUIDE—SIXTH EDITION .......................... 651

APPENDIX X3

AGILE, ITERATIVE, ADAPTIVE, AND HYBRID PROJECT ENVIRONMENTS .................................. 665

APPENDIX X4

SUMMARY OF KEY CONCEPTS FOR KNOWLEDGE AREAS ......................................................... 673

APPENDIX X5

SUMMARY OF TAILORING CONSIDERATIONS FOR KNOWLEDGE AREAS .................................. 679

APPENDIX X6

TOOLS AND TECHNIQUES .......................................................................................................... 685

GLOSSARY ................................................................................................................................. 695

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XIX

LIST OF TABLES AND FIGURES

PART 1.

A GUIDE TO THE PROJECT MANAGEMENT BODY OF KNOWLEDGE (PMBOK® Guide)

Figure 1-1. Organizational State Transition via a Project .....................................................6

Figure 1-2. Project Initiation Context ..................................................................................... 8

Figure 1-3. Portfolio, Programs, Projects, and Operations..................................................12

Figure 1-4. Organizational Project Management ................................................................ 17

Figure 1-5. Interrelationship of PMBOK® Guide Key Components in Projects ...................18

Figure 1-6. Example Process: Inputs, Tools & Techniques, and Outputs............................ 22

Figure 1-7. Project Data, Information, and Report Flow ..................................................... 27

Figure 1-8. Interrelationship of Needs Assessment and Critical Business/

Project Documents ............................................................................................ 30

Figure 2-1. Project Influences .............................................................................................. 37

Figure 3-1. Example of Project Manager’s Sphere of Influence ......................................... 53

Figure 3-2. The PMI Talent Triangle® ................................................................................... 57

Figure 4-1. Project Integration Management Overview ...................................................... 71

Figure 4-2. Develop Project Charter: Inputs, Tools & Techniques, and Outputs .................75

Figure 4-3. Develop Project Charter: Data Flow Diagram ................................................... 76

Figure 4-4. Develop Project Management Plan: Inputs, Tools & Techniques,

and Outputs........................................................................................................82

XX List of Tables and Figures

Figure 4-5. Develop Project Management Plan: Data Flow Diagram ................................. 82

Figure 4-6. Direct and Manage Project Work: Inputs, Tools & Techniques,

and Outputs........................................................................................................90

Figure 4-7. Direct and Manage Project Work: Data Flow Diagram .....................................91

Figure 4-8. Manage Project Knowledge: Inputs, Tools & Techniques, and Outputs ...........98

Figure 4-9. Manage Project Knowledge: Data Flow Diagram .............................................99

Figure 4-10. Monitor and Control Project Work: Inputs, Tools & Techniques,

and Outputs......................................................................................................105

Figure 4-11. Monitor and Control Project Work: Data Flow Diagram ................................. 106

Figure 4-12. Perform Integrated Change Control: Inputs, Tools & Techniques,

and Outputs......................................................................................................113

Figure 4-13. Perform Integrated Change Control: Data Flow Diagram ..............................114

Figure 4-14. Close Project or Phase: Inputs, Tools & Techniques, and Outputs ................. 121

Figure 4-15. Close Project or Phase: Data Flow Diagram ................................................... 122

Figure 5-1. Project Scope Management Overview ............................................................ 130

Figure 5-2. Plan Scope Management: Inputs, Tools & Techniques, and Outputs ............. 134

Figure 5-3. Plan Scope Management: Data Flow Diagram ...............................................134

Figure 5-4. Collect Requirements: Inputs, Tools & Techniques, and Outputs ..................138

Figure 5-5. Collect Requirements: Data Flow Diagram ..................................................... 139

Figure 5-6. Context Diagram .............................................................................................. 146

Figure 5-7. Example of a Requirements Traceability Matrix ............................................149

Figure 5-8. Define Scope: Inputs, Tools & Techniques, and Outputs ................................150

Figure 5-9. Define Scope: Data Flow Diagram .................................................................. 151

Figure 5-10. Create WBS: Inputs, Tools & Techniques, and Outputs ..................................156

Figure 5-11. Create WBS: Data Flow Diagram .....................................................................156

Figure 5-12. Sample WBS Decomposed Down Through Work Packages ...........................158

Figure 5-13. Sample WBS Organized by Phase ................................................................... 159

XXI

Figure 5-14. Sample WBS with Major Deliverables.............................................................160

Figure 5-15. Validate Scope: Inputs, Tools & Techniques, and Outputs ............................. 163

Figure 5-16. Validate Scope: Data Flow Diagram ................................................................164

Figure 5-17. Control Scope: Inputs, Tools & Techniques, and Outputs ............................... 167

Figure 5-18. Control Scope: Data Flow Diagram .................................................................168

Figure 6-1. Project Schedule Management Overview .......................................................174

Figure 6-2. Scheduling Overview .......................................................................................176

Figure 6-3. Plan Schedule Management: Inputs, Tools & Techniques, and Outputs ........ 179

Figure 6-4. Plan Schedule Management: Data Flow Diagram ..........................................179

Figure 6-5. Define Activities: Inputs, Tools & Techniques, and Outputs ........................... 183

Figure 6-6. Define Activities: Data Flow Diagram .............................................................183

Figure 6-7. Sequence Activities: Inputs, Tools & Techniques, and Outputs ..................... 187

Figure 6-8. Sequence Activities: Data Flow Diagram ........................................................ 187

Figure 6-9. Precedence Diagramming Method (PDM) Relationship Types ...................... 190

Figure 6-10. Examples of Lead and Lag .............................................................................. 192

Figure 6-11. Project Schedule Network Diagram ................................................................ 193

Figure 6-12. Estimate Activity Durations: Inputs, Tools & Techniques, and Outputs ......... 195

Figure 6-13. Estimate Activity Durations: Data Flow Diagram ........................................... 196

Figure 6-14. Develop Schedule: Inputs, Tools & Techniques, and Outputs ........................205

Figure 6-15. Develop Schedule: Data Flow Diagram ...........................................................206

Figure 6-16. Example of Critical Path Method .....................................................................211

Figure 6-17. Resource Leveling ........................................................................................... 212

Figure 6-18. Example Probability Distribution of a Target Milestone .................................214

Figure 6-19. Schedule Compression Comparison ............................................................... 215

Figure 6-20. Relationship Between Product Vision, Release Planning,

and Iteration Planning ..................................................................................... 216

��

XXII List of Tables and Figures

Figure 6-21. Project Schedule Presentations—Examples .................................................. 219

Figure 6-22. Control Schedule: Inputs, Tools & Techniques, and Outputs ..........................222

Figure 6-23. Control Schedule: Data Flow Diagram ............................................................ 223

Figure 6-24. Iteration Burndown Chart ................................................................................226

Figure 7-1. Project Cost Management Overview ...............................................................232

Figure 7-2. Plan Cost Management: Inputs, Tools & Techniques, and Outputs ................235

Figure 7-3. Plan Cost Management: Data Flow Diagram .................................................. 235

Figure 7-4. Estimate Costs: Inputs, Tools & Techniques, and Outputs .............................240

Figure 7-5. Estimate Costs: Data Flow Diagram ...............................................................240

Figure 7-6. Determine Budget: Inputs, Tools & Techniques, and Outputs ........................ 248

Figure 7-7. Determine Budget: Data Flow Diagram .......................................................... 249

Figure 7-8. Project Budget Components ............................................................................255

Figure 7-9. Cost Baseline, Expenditures, and Funding Requirements ............................. 255

Figure 7-10. Control Costs: Inputs, Tools & Techniques, and Outputs ................................257

Figure 7-11. Control Costs: Data Flow Diagram ..................................................................258

Figure 7-12. Earned Value, Planned Value, and Actual Costs .............................................264

Figure 7-13. To-Complete Performance Index (TCPI) ..........................................................268

Figure 8-1. Project Quality Management Overview ...........................................................272

Figure 8-2. Major Project Quality Management Process Interrelations ........................... 273

Figure 8-3. Plan Quality Management: Inputs, Tools & Techniques, and Outputs ...........277

Figure 8-4. Plan Quality Management: Data Flow Diagram ..............................................278

Figure 8-5. Cost of Quality..................................................................................................283

Figure 8-6. The SIPOC Model..............................................................................................285

Figure 8-7. Manage Quality: Inputs, Tools & Techniques, and Outputs ............................288

Figure 8-8. Manage Quality: Data Flow Diagram .............................................................. 289

Figure 8-9. Cause-and-Effect Diagram ..............................................................................294

XXIII

Figure 8-10. Control Quality: Inputs, Tools & Techniques, and Outputs ............................. 298

Figure 8-11. Control Quality: Data Flow Diagram ................................................................ 299

Figure 8-12. Check Sheets ...................................................................................................302

Figure 9-1. Project Resource Management Overview .......................................................308

Figure 9-2. Plan Resource Management: Inputs, Tools & Techniques, and Outputs .......312

Figure 9-3. Plan Resource Management: Data Flow Diagram .......................................... 313

Figure 9-4. Sample RACI Chart .......................................................................................... 317

Figure 9-5. Estimate Activity Resources: Inputs, Tools & Techniques, and Outputs ........321

Figure 9-6. Estimate Activity Resources: Data Flow Diagram .......................................... 321

Figure 9-7. Sample Resource Breakdown Structure .........................................................327

Figure 9-8. Acquire Resources: Inputs, Tools & Techniques, and Outputs .......................328

Figure 9-9. Acquire Resources: Data Flow Diagram ......................................................... 329

Figure 9-10. Develop Team: Inputs, Tools & Techniques, and Outputs ...............................336

Figure 9-11. Develop Team: Data Flow Diagram .................................................................337

Figure 9-12. Manage Team: Inputs, Tools & Techniques, and Outputs ...............................345

Figure 9-13. Manage Team: Data Flow Diagram .................................................................346

Figure 9-14. Control Resources: Inputs, Tools & Techniques, and Outputs........................ 352

Figure 9-15. Control Resources: Data Flow Diagram ..........................................................353

Figure 10-1. Project Communications Overview .................................................................360

Figure 10-2. Plan Communications Management: Inputs, Tools & Techniques,

and Outputs......................................................................................................366

Figure 10-3. Plan Communications Management: Data Flow Diagram ............................. 367

Figure 10-4. Communication Model for Cross-Cultural Communication ...........................373

Figure 10-5. Manage Communications: Inputs, Tools & Techniques, and Outputs ............379

Figure 10-6. Manage Communications: Data Flow Diagram .............................................. 380

Figure 10-7. Monitor Communications: Inputs, Tools & Techniques, and Outputs ............ 388

XXIV List of Tables and Figures

Figure 10-8. Monitor Communications: Data Flow Diagram ..............................................389

Figure 11-1. Project Risk Management Overview ............................................................... 396

Figure 11-2. Plan Risk Management: Inputs, Tools & Techniques, and Outputs ................401

Figure 11-3. Plan Risk Management: Data Flow Diagram .................................................. 402

Figure 11-4. Extract from Sample Risk Breakdown Structure (RBS) ................................. 406

Figure 11-5. Example Probability and Impact Matrix with Scoring Scheme ..................... 408

Figure 11-6. Identify Risks: Inputs, Tools & Techniques, and Outputs ............................... 409

Figure 11-7. Identify Risks: Data Flow Diagram .................................................................410

Figure 11-8. Perform Qualitative Risk Analysis: Inputs, Tools & Techniques,

and Outputs......................................................................................................419

Figure 11-9. Perform Qualitative Risk Analysis: Data Flow Diagram ................................. 420

Figure 11-10. Example Bubble Chart Showing Detectability, Proximity,

and Impact Value ............................................................................................. 426

Figure 11-11. Perform Quantitative Risk Analysis: Inputs, Tools & Techniques,

and Outputs......................................................................................................428

Figure 11-12. Perform Quantitative Risk Analysis: Data Flow Diagram ............................... 429

Figure 11-13. Example S-Curve from Quantitative Cost Risk Analysis ................................ 433

Figure 11-14. Example Tornado Diagram .............................................................................. 434

Figure 11-15. Example Decision Tree .................................................................................... 435

Figure 11-16. Plan Risk Responses: Inputs, Tools & Techniques, and Outputs ...................437

Figure 11-17. Plan Risk Responses: Data Flow Diagram ......................................................438

Figure 11-18. Implement Risk Responses: Inputs, Tools & Techniques, and Outputs ......... 449

Figure 11-19. Implement Risk Responses: Data Flow Diagram ...........................................449

Figure 11-20. Monitor Risks: Inputs, Tools & Techniques, and Outputs ...............................453

Figure 11-21. Monitor Risks: Data Flow Diagram ................................................................. 454

Figure 12-1. Project Procurement Management Overview ................................................. 460

XXV

Figure 12-2. Plan Procurement Management: Inputs, Tools & Techniques, and Outputs .... 466

Figure 12-3. Plan Procurement Management: Data Flow Diagram ....................................467

Figure 12-4. Conduct Procurements: Inputs, Tools & Techniques, and Outputs ................482

Figure 12-5. Conduct Procurements: Data Flow Diagram .................................................. 483

Figure 12-6. Control Procurements: Inputs, Tools & Techniques, and Outputs .................. 492

Figure 12-7. Control Procurements: Data Flow Diagram .................................................... 493

Figure 13-1. Project Stakeholder Management Overview .................................................. 504

Figure 13-2. Identify Stakeholders: Inputs, Tools & Techniques, and Outputs...................507

Figure 13-3. Identify Stakeholders: Data Flow Diagram ..................................................... 508

Figure 13-4. Plan Stakeholder Engagement: Inputs, Tools & Techniques, and Outputs .... 516

Figure 13-5. Plan Stakeholder Engagement: Data Flow Diagram ......................................517

Figure 13-6. Stakeholder Engagement Assessment Matrix ...............................................522

Figure 13-7. Manage Stakeholder Engagement: Inputs, Tools & Techniques,

and Outputs......................................................................................................523

Figure 13-8. Manage Stakeholder Engagement: Data Flow Diagram ................................ 524

Figure 13-9. Monitor Stakeholder Engagement: Inputs, Tools & Techniques,

and Outputs......................................................................................................530

Figure 13-10. Monitor Stakeholder Engagement: Data Flow Diagram ................................. 531

Table 1-1. Examples of Factors that Lead to the Creation of a Project ..............................9

Table 1-2. Comparative Overview of Portfolios, Programs, and Projects ......................... 13

Table 1-3. Description of PMBOK® Guide Key Components ..............................................18

Table 1-4. Project Management Process Group and Knowledge Area Mapping .............. 25

Table 1-5. Project Business Documents ............................................................................29

Table 2-1. Influences of Organizational Structures on Projects ....................................... 47

Table 3-1. Team Management and Team Leadership Compared ......................................64

XXVI List of Tables and Figures

Table 4-1. Project Management Plan and Project Documents .......................................... 89

Table 5-1. Elements of the Project Charter and Project Scope Statement .....................155

Table 7-1. Earned Value Calculations Summary Table .................................................... 267

Table 11-1. Example of Definitions for Probability and Impacts ......................................407

Table 12-1. Comparison of Procurement Documentation .................................................481

PART 2.

The Standard For Project Management

Figure 1-1. Example of Portfolio, Program, and Project Management Interfaces ...........544

Figure 1-2. Generic Depiction of a Project Life Cycle........................................................548

Figure 1-3. Impact of Variables Over Time ........................................................................ 549

Figure 1-4. Examples of Project Stakeholders .................................................................. 551

Figure 1-5. Example of Process Group Interactions Within a Project or Phase ...............555

Figure 2-1. Project Boundaries .......................................................................................... 562

Figure 2-2. Initiating Process Group .................................................................................. 562

Figure 2-3. Develop Project Charter: Inputs and Outputs .................................................563

Figure 2-4. Identify Stakeholders: Inputs and Outputs ..................................................... 563

Figure 3-1. Planning Process Group ..................................................................................566

Figure 3-2. Develop Project Management Plan: Inputs and Outputs ............................... 567

Figure 3-3. Plan Scope Management: Inputs and Outputs ............................................... 567

Figure 3-4. Collect Requirements: Inputs and Outputs .....................................................568

Figure 3-5. Define Scope: Inputs and Outputs ..................................................................569

Figure 3-6. Create WBS: Inputs and Outputs ..................................................................... 570

Figure 3-7. Plan Schedule Management: Inputs and Outputs .......................................... 571

Figure 3-8. Define Activities: Inputs and Outputs .............................................................572

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XXVII

Figure 3-9. Sequence Activities: Inputs and Outputs ........................................................573

Figure 3-10. Estimate Activity Durations: Inputs and Outputs ........................................... 574

Figure 3-11. Develop Schedule: Inputs and Outputs ........................................................... 575

Figure 3-12. Plan Cost Management: Inputs and Outputs .................................................. 577

Figure 3-13. Estimate Costs: Inputs and Outputs................................................................577

Figure 3-14. Determine Budget: Inputs and Outputs .......................................................... 579

Figure 3-15. Plan Quality Management: Inputs and Outputs .............................................. 580

Figure 3-16. Plan Resource Management: Inputs and Outputs ..........................................581

Figure 3-17. Estimate Activity Resources: Inputs and Outputs ..........................................583

Figure 3-18. Plan Communications Management: Inputs and Outputs ............................. 584

Figure 3-19. Plan Risk Management: Inputs and Outputs ..................................................585

Figure 3-20. Identify Risks: Inputs and Outputs.................................................................. 586

Figure 3-21. Perform Qualitative Risk Analysis: Inputs and Outputs .................................588

Figure 3-22. Perform Quantitative Risk Analysis: Inputs and Outputs ...............................589

Figure 3-23. Plan Risk Responses: Inputs and Outputs ......................................................590

Figure 3-24. Plan Procurement Management: Inputs and Outputs .................................... 592

Figure 3-25. Plan Stakeholder Engagement: Inputs and Outputs ...................................... 594

Figure 4-1. Executing Process Group ................................................................................596

Figure 4-2. Direct and Manage Project Work: Inputs and Outputs ................................... 597

Figure 4-3. Manage Project Knowledge: Inputs and Outputs ........................................... 598

Figure 4-4. Manage Quality: Inputs and Outputs ..............................................................599

Figure 4-5. Acquire Resources: Inputs and Outputs .........................................................601

Figure 4-6. Develop Team: Inputs and Outputs ................................................................. 602

Figure 4-7. Manage Team: Inputs and Outputs ................................................................. 604

Figure 4-8. Manage Communications: Inputs and Outputs ..............................................605

Figure 4-9. Implement Risk Responses: Inputs and Outputs ........................................... 607

XXVIII List of Tables and Figures

Figure 4-10. Conduct Procurements: Inputs and Outputs ..................................................608

Figure 4-11. Manage Stakeholder Engagement: Inputs and Outputs ................................610

Figure 5-1. Monitoring and Controlling Process Group .................................................... 614

Figure 5-2. Monitor and Control Project Work: Inputs and Outputs .................................615

Figure 5-3. Perform Integrated Change Control: Inputs and Outputs ............................... 616

Figure 5-4. Validate Scope: Inputs and Outputs ................................................................ 618

Figure 5-5. Control Scope: Inputs and Outputs ................................................................. 619

Figure 5-6. Control Schedule: Inputs and Outputs ............................................................ 621

Figure 5-7. Control Costs: Inputs and Outputs .................................................................. 622

Figure 5-8. Control Quality: Inputs and Outputs ................................................................624

Figure 5-9. Control Resources: Inputs and Outputs .......................................................... 625

Figure 5-10. Monitor Communications: Inputs and Outputs ..............................................627

Figure 5-11. Monitor Risks: Inputs and Outputs .................................................................628

Figure 5-12. Control Procurements: Inputs and Outputs .................................................... 630

Figure 5-13. Monitor Stakeholder Engagement: Inputs and Outputs .................................631

Figure 6-1. Closing Process Group .................................................................................... 633

Figure 6-2. Close Project or Phase: Inputs and Outputs ................................................... 634

Table 1-1. Project Management Process Group and Knowledge Area Mapping ............ 556

Table 1-2. Project Management Plan and Project Documents ........................................ 559

XXIX

PART 3.

APPENDICES, GLOSSARY, AND INDEX

Figure X3-1. The Continuum of Project Life Cycles ............................................................. 666

Figure X3-2. Level of Effort for Process Groups across Iteration Cycles ...........................667

Figure X3-3. Relationship of Process Groups in Continuous Phases .................................668

Table X1-1. Section 4 Changes ........................................................................................... 645

Table X1-2. Section 6 Changes ........................................................................................... 646

Table X1-3. Section 8 Changes ........................................................................................... 646

Table X1-4. Section 9 Changes ........................................................................................... 647

Table X1-5. Section 10 Changes ......................................................................................... 648

Table X1-6. Section 11 Changes ......................................................................................... 648

Table X1-7. Section 12 Changes ......................................................................................... 649

Table X1-8. Section 13 Changes ......................................................................................... 650

Table X6-1. Categorization and Index of Tools and Techniques ........................................686

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XXX

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Part 1

A Guide to the

Project Management

Body of Knowledge

(PMBOK® GUIDE )

The information contained in this part is not an American National Standard (ANS) and has not

been processed in accordance with ANSI’s requirements for an ANS. As such, the information in

this part may contain material that has not been subjected to public review or a consensus process.

In addition, it does not contain requirements necessary for conformance to an ANS standard.

��

INTRODUCTION

1.1 OVERVIEW AND PURPOSE OF THIS GUIDE

Project management is not new. It has been in use for hundreds of years. Examples of project outcomes include:

 Pyramids of Giza,

 Olympic games,

 Great Wall of China,

 Taj Mahal,

 Publication of a children’s book,

 Panama Canal,

 Development of commercial jet airplanes,

 Polio vaccine,

 Human beings landing on the moon,

 Commercial software applications,

 Portable devices to use the global positioning system (GPS), and

 Placement of the International Space Station into Earth’s orbit.

The outcomes of these projects were the result of leaders and managers applying project management practices,

principles, processes, tools, and techniques to their work. The managers of these projects used a set of key skills and

applied knowledge to satisfy their customers and other people involved in and affected by the project. By the mid-20th

century, project managers began the work of seeking recognition for project management as a profession. One aspect

of this work involved obtaining agreement on the content of the body of knowledge (BOK) called project management.

This BOK became known as the Project Management Body of Knowledge (PMBOK). The Project Management Institute

(PMI) produced a baseline of charts and glossaries for the PMBOK. Project managers soon realized that no single book

could contain the entire PMBOK. Therefore, PMI developed and published A Guide to the Project Management Body of

Knowledge (PMBOK® Guide).

PMI deﬁnes the project management body of knowledge (PMBOK) as a term that describes the knowledge within the

profession of project management. The project management body of knowledge includes proven traditional practices

that are widely applied as well as innovative practices that are emerging in the profession.

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The body of knowledge (BOK) includes both published and unpublished materials. This body of knowledge is

constantly evolving. This PMBOK® Guide identiﬁes a subset of the project management body of knowledge that is

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 the knowledge, skills, tools, and techniques

to project management processes can enhance the chance of success over many projects in delivering the

expected business values and results.

The project manager works with the project team and other stakeholders to determine and use the appropriate

generally recognized good practices for each project. Determining the appropriate combination of processes, inputs,

tools, techniques, outputs and life cycle phases to manage a project is referred to as “tailoring” the application of the

knowledge described in this guide.

This PMBOK® Guide is different from a methodology. A methodology is a system of practices, techniques,

procedures, and rules used by those who work in a discipline. This PMBOK® Guide is a foundation upon which

organizations can build methodologies, policies, procedures, rules, tools and techniques, and life cycle phases

needed to practice project management.

1.1.1 THE STANDARD FOR PROJECT MANAGEMENT

This guide is based on The Standard for Project Management [1]. A standard is a document established by an authority,

custom, or general consent as a model or example. As an American National Standards Institute (ANSI) standard, The

Standard for Project Management was developed using a process based on the concepts of consensus, openness, due

process, and balance. The Standard for Project Management is a foundational reference for PMI’s project management

professional development programs and the practice of project management. Because project management needs to

be tailored to ﬁt the needs of the project, the standard and the guide are both based on descriptive practices, rather

than prescriptive practices. Therefore, the standard identiﬁes the processes that are considered good practices on most

projects, most of the time. The standard also identiﬁes the inputs and outputs that are usually associated with those

processes. The standard does not require that any particular process or practice be performed. The Standard for Project

Management is included as Part II of A Guide to the Project Management Body of Knowledge (PMBOK® Guide).

The PMBOK® Guide provides more detail about key concepts, emerging trends, considerations for tailoring the project

management processes, and information on how tools and techniques are applied to projects. Project managers may

use one or more methodologies to implement the project management processes outlined in the standard.

The scope of this guide is limited to the discipline of project management, rather than the full spectrum of portfolios,

programs, and projects. Portfolios and programs will be addressed only to the degree they interact with projects. PMI

publishes two other standards that address the management of portfolios and programs:

 The Standard for Portfolio Management [2], and

 The Standard for Program Management [3].

1.1.2 COMMON VOCABULARY

A common vocabulary is an essential element of a professional discipline. The PMI Lexicon of Project Management

Terms [4] provides the foundational professional vocabulary that can be consistently used by organizations, portfolio,

program, and project managers and other project stakeholders. The Lexicon will continue to evolve over time. The

glossary to this guide includes the vocabulary in the Lexicon along with additional deﬁnitions. There may be other

industry-speciﬁc terms used in projects that are deﬁned by that industry’s literature.

1.1.3 CODE OF ETHICS AND PROFESSIONAL CONDUCT

PMI publishes the Code of Ethics and Professional Conduct [5] to instill conﬁdence in the project management

profession and to help an individual in making wise decisions, particularly when faced with difﬁcult situations where the

individual may be asked to compromise his or her integrity or values. The values that the global project management

community deﬁned as most important were responsibility, respect, fairness, and honesty. The Code of Ethics and

Professional Conduct afﬁrms these four values as its foundation.

The Code of Ethics and Professional Conduct includes both aspirational standards and mandatory standards. The

aspirational standards describe the conduct that practitioners, who are also PMI members, certiﬁcation holders, or

volunteers, strive to uphold. Although adherence to the aspirational standards is not easily measured, conduct in

accordance with these is an expectation for those who consider themselves to be professionals—it is not optional. The

mandatory standards establish ﬁrm requirements and, in some cases, limit or prohibit practitioner behavior. Practitioners

who are also PMI members, certiﬁcation holders, or volunteers and who do not conduct themselves in accordance with

these standards will be subject to disciplinary procedures before PMI’s Ethics Review Committee.

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1.2 FOUNDATIONAL ELEMENTS

This section describes foundational elements necessary for working in and understanding the discipline of project

management.

1.2.1 PROJECTS

A project is a temporary endeavor undertaken to create a unique product, service, or result.

 Unique product, service, or result. Projects are undertaken to fulﬁll objectives by producing deliverables.

An objective is deﬁned as an outcome toward which work is to be directed, a strategic position to be attained,

a purpose to be achieved, a result to be obtained, a product to be produced, or a service to be performed.

A deliverable is deﬁned as any unique and veriﬁable product, result, or capability to perform a service that is

required to be produced to complete a process, phase, or project. Deliverables may be tangible or intangible.

Fulﬁllment of project objectives may produce one or more of the following deliverables:

 A unique product that can be either a component of another item, an enhancement or correction to an item,

or a new end item in itself (e.g., the correction of a defect in an end item);

 A unique service or a capability to perform a service (e.g., a business function that supports production

or distribution);

 A unique result, such as an outcome or document (e.g., a research project that develops knowledge that can

be used to determine whether a trend exists or a new process will beneﬁt society); and

 A unique combination of one or more products, services, or results (e.g., a software application, its associated

documentation, and help desk services).

Repetitive elements may be present in some project deliverables and activities. This repetition does not change

the fundamental and unique characteristics of the project work. For example, ofﬁce buildings can be constructed

with the same or similar materials and by the same or different teams. However, each building project remains

unique in key characteristics (e.g., location, design, environment, situation, people involved).

Projects are undertaken at all organizational levels. A project can involve a single individual or a group. A project

can involve a single organizational unit or multiple organizational units from multiple organizations.

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Examples of projects include but are not limited to:

 Developing a new pharmaceutical compound for market,

 Expanding a tour guide service,

 Merging two organizations,

 Improving a business process within an organization,

 Acquiring and installing a new computer hardware system for use in an organization,

 Exploring for oil in a region,

 Modifying a computer software program used in an organization,

 Conducting research to develop a new manufacturing process, and

 Constructing a building.

 Temporary endeavor. The temporary nature of projects indicates that a project has a deﬁnite beginning and end.

Temporary does not necessarily mean a project has a short duration. The end of the project is reached when one

or more of the following is true:

 The project’s objectives have been achieved;

 The objectives will not or cannot be met;

 Funding is exhausted or no longer available for allocation to the project;

 The need for the project no longer exists (e.g., the customer no longer wants the project completed, a change

in strategy or priority ends the project, the organizational management provides direction to end the project);

 The human or physical resources are no longer available; or

 The project is terminated for legal cause or convenience.

Projects are temporary, but their deliverables may exist beyond the end of the project. Projects may produce

deliverables of a social, economic, material, or environmental nature. For example, a project to build a national

monument will create a deliverable expected to last for centuries.

6 Part 1 - Guide

 Projects drive change. Projects drive change in organizations. From a business perspective, a project is aimed

at moving an organization from one state to another state in order to achieve a speciﬁc objective (see Figure 1-1).

Before the project begins, the organization is commonly referred to as being in the current state. The desired

result of the change driven by the project is described as the future state.

For some projects, this may involve creating a transition state where multiple steps are made along a continuum

to achieve the future state. The successful completion of a project results in the organization moving to the

future state and achieving the speciﬁc objective. For more information on project management and change, see

Managing Change in Organizations: A Practice Guide [6].

Figure 1-1. Organizational State Transition via a Project

Organization

Business

Value

Time

Project Activities

• Activity A

• Activity B

• Activity C

• Etc.

Future State

Current State

Project

 Projects enable business value creation. PMI deﬁnes business value as the net quantiﬁable beneﬁt derived

from a business endeavor. The beneﬁt may be tangible, intangible, or both. In business analysis, business value is

considered the return, in the form of elements such as time, money, goods, or intangibles in return for something

exchanged (see Business Analysis for Practitioners: A Practice Guide, p. 185 [7]).

Business value in projects refers to the beneﬁt that the results of a speciﬁc project provide to its stakeholders.

The beneﬁt from projects may be tangible, intangible, or both.

Examples of tangible elements include:

 Monetary assets,

 Stockholder equity,

 Utility,

 Fixtures,

 Tools, and

 Market share.

Examples of intangible elements include:

 Goodwill,

 Brand recognition,

 Public beneﬁt,

 Trademarks,

 Strategic alignment, and

 Reputation.

 Project Initiation Context. Organizational leaders initiate projects in response to factors acting upon their

organizations. There are four fundamental categories for these factors, which illustrate the context of a project

(see Figure 1-2):

 Meet regulatory, legal, or social requirements;

 Satisfy stakeholder requests or needs;

 Implement or change business or technological strategies; and

 Create, improve, or ﬁx products, processes, or services.

8 Part 1 - Guide

Figure 1-2. Project Initiation Context

These factors inﬂuence an organization’s ongoing operations and business strategies. Leaders respond to these

factors in order to keep the organization viable. Projects provide the means for organizations to successfully make the

changes necessary to deal with these factors. These factors ultimately should link to the strategic objectives of the

organization and the business value of each project.

Table 1-1 illustrates how example factors could align with one or more of the fundamental factor categories.

Satisfy Stakeholder

Requests or Needs

Implement or

Change Business

or Technological

Strategies

Meet Regulatory,

Legal, or Social

Requirements

Create, Improve,

or Fix Products,

Processes, or

Services

Project

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Examples of Specific Factors

Meet Regulatory, Legal, or

Social Requirements

Satisfy Stakeholder

Requests or Needs

Create, Improve, or Fix Products,

Processes, or Services

Implement or Change Business

or Technological Strategies

An electronics firm authorizes a new project to develop a faster, cheaper, and

smaller laptop based on advances in computer memory and electronics

technology

Lower pricing on products by a competitor results in the need to lower

production costs to remain competitive

A municipal bridge developed cracks in some support members resulting in a

project to fix the problems

A newly elected official instigating project funding changes to a current project

A car company authorizes a project to build more fuel-efficient cars in response

to gasoline shortages

An economic downturn results in a change in the priorities for a current project

An electric utility authorizes a project to build a substation to serve a new

industrial park

A stakeholder requires that a new output be produced by the organization

A chemical manufacturer authorizes a project to establish guidelines for the

proper handling of a new toxic material

An organization implements a project resulting from a Lean Six Sigma value

stream mapping exercise

A training company authorizes a project to create a new course to increase its

revenues

A nongovernmental organization in a developing country authorizes a project to

provide potable water systems, latrines, and sanitation education to

communities suffering from high rates of infectious diseases

A public company authorizes a project to create a new service for electric car

sharing to reduce pollution

New technology

Competitive forces

Material issues

Political changes

Market demand

Economic changes

Customer request

Stakeholder demands

Legal requirement

Business process

improvements

Strategic opportunity

or business need

Social need

Environmental

considerations

Specific Factor

Table 1-1. Examples of Factors that Lead to the Creation of a Project

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10 Part 1 - Guide

1.2.2 THE IMPORTANCE OF 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

project management processes identiﬁed for the project. Project management enables organizations to execute projects

effectively and efﬁciently.

Effective project management helps individuals, groups, and public and private organizations to:

 Meet business objectives;

 Satisfy stakeholder expectations;

 Be more predictable;

 Increase chances of success;

 Deliver the right products at the right time;

 Resolve problems and issues;

 Respond to risks in a timely manner;

 Optimize the use of organizational resources;

 Identify, recover, or terminate failing projects;

 Manage constraints (e.g., scope, quality, schedule, costs, resources);

 Balance the inﬂuence of constraints on the project (e.g., increased scope may increase cost or schedule); and

 Manage change in a better manner.

Poorly managed projects or the absence of project management may result in:

 Missed deadlines,

 Cost overruns,

 Poor quality,

 Rework,

 Uncontrolled expansion of the project,

 Loss of reputation for the organization,

 Unsatisﬁed stakeholders, and

 Failure in achieving the objectives for which the project was undertaken.

Projects are a key way to create value and beneﬁts in organizations. In today’s business environment, organizational

leaders need to be able to manage with tighter budgets, shorter timelines, scarcity of resources, and rapidly changing

technology. The business environment is dynamic with an accelerating rate of change. To remain competitive in the

world economy, companies are embracing project management to consistently deliver business value.

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Effective and efﬁcient project management should be considered a strategic competency within organizations. It enables

organizations to:

 Tie project results to business goals,

 Compete more effectively in their markets,

 Sustain the organization, and

 Respond to the impact of business environment changes on projects by appropriately adjusting project

management plans (see Section 4.2).

1.2.3 RELATIONSHIP OF PROJECT, PROGRAM, PORTFOLIO, AND OPERATIONS MANAGEMENT

1.2.3.1 OVERVIEW

Using project management processes, tools, and techniques puts in place a sound foundation for organizations to

achieve their goals and objectives. A project may be managed in three separate scenarios: as a stand-alone project

(outside of a portfolio or program), within a program, or within a portfolio. Project managers interact with portfolio and

program managers when a project is within a program or portfolio. For example, multiple projects may be needed to

accomplish a set of goals and objectives for an organization. In those situations, projects may be grouped together into

a program. A program is deﬁned as a group of related projects, subsidiary programs, and program activities managed in

a coordinated manner to obtain beneﬁts not available from managing them individually. Programs are not large projects.

A very large project may be referred to as a megaproject. As a guideline, megaprojects cost US$1billion or more, affect

1 million or more people, and run for years.

Some organizations may employ the use of a project portfolio to effectively manage multiple programs and projects

that are underway at any given time. A portfolio is deﬁned as projects, programs, subsidiary portfolios, and operations

managed as a group to achieve strategic objectives. Figure 1-3 illustrates an example of how portfolios, programs,

projects, and operations are related in a speciﬁc situation.

Program management and portfolio management differ from project management in their life cycles, activities,

objectives, focus, and beneﬁts. However, portfolios, programs, projects, and operations often engage with the same

stakeholders and may need to use the same resources (see Figure 1-3), which may result in a conﬂict in the organization.

This type of a situation increases the need for coordination within the organization through the use of portfolio, program,

and project management to achieve a workable balance in the organization.

12 Part 1 - Guide

Figure 1-3 illustrates a sample portfolio structure indicating relationships between the programs, projects, shared

resources, and stakeholders. The portfolio components are grouped together in order to facilitate the effective governance

and management of the work that helps to achieve organizational strategies and priorities. Organizational and portfolio

planning impact the components by means of prioritization based on risk, funding, and other considerations. The

portfolio view allows organizations to see how the strategic goals are reﬂected in the portfolio. This portfolio view

also enables the implementation and coordination of appropriate portfolio, program, and project governance. This

coordinated governance allows authorized allocation of human, ﬁnancial, and physical resources based on expected

performance and beneﬁts.

Figure 1-3. Portfolio, Programs, Projects, and Operations

Looking at project, program, and portfolio management from an organizational perspective:

 Program and project management focus on doing programs and projects the “right” way; and

 Portfolio management focuses on doing the “right” programs and projects.

Table 1-2 gives a comparative overview of portfolios, programs, and projects.

Organizational Strategy

Sample Portfolio

Project

9Operations

Shared Resources and Stakeholders

Program

Portfolio

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Table 1-2. Comparative Overview of Portfolios, Programs, and Projects

Organizational Project Management

Projects Programs Portfolios

A project is a temporary endeavor

undertaken to create a unique

product, service, or result.

Projects have defined objectives.

Scope is progressively elaborated

throughout the project life cycle.

Project managers expect change and

implement processes to keep change

managed and controlled.

Project managers progressively

elaborate high-level information into

detailed plans throughout the project

life cycle.

Project managers manage the project

team to meet the project objectives.

Project managers monitor and control

the work of producing the products,

services, or results that the project

was undertaken to produce.

Success is measured by product and

project quality, timeliness, budget

compliance, and degree of customer

satisfaction.

A program is a group of related

projects, subsidiary programs, and

program activities that are managed

in a coordinated manner to obtain

benefits not available from managing

them individually.

Programs have a scope that

encompasses the scopes of its

program components. Programs

produce benefits to an organization by

ensuring that the outputs and

outcomes of program components are

delivered in a coordinated and

complementary manner.

Programs are managed in a manner

that accepts and adapts to change as

necessary to optimize the delivery of

benefits as the program’s components

deliver outcomes and/or outputs.

Programs are managed using

high-level plans that track the

interdependencies and progress of

program components. Program plans

are also used to guide planning at the

component level.

Programs are managed by program

managers who ensure that program

benefits are delivered as expected, by

coordinating the activities of a

program’s components.

Program managers monitor the

progress of program components to

ensure the overall goals, schedules,

budget, and benefits of the program

will be met.

A program’s success is measured by

the program’s ability to deliver its

intended benefits to an organization,

and by the program’s efficiency and

effectiveness in delivering those

benefits.

A portfolio is a collection of projects,

programs, subsidiary portfolios, and

operations managed as a group to

achieve strategic objectives.

Portfolios have an organizational

scope that changes with the strategic

objectives of the organization.

Portfolio managers continuously

monitor changes in the broader

internal and external environments.

Portfolio managers create and

maintain necessary processes and

communication relative to the

aggregate portfolio.

Portfolio managers may manage or

coordinate portfolio management

staff, or program and project staff that

may have reporting responsibilities

into the aggregate portfolio.

Portfolio managers monitor strategic

changes and aggregate resource

allocation, performance results, and

risk of the portfolio.

Success is measured in terms of the

aggregate investment performance

and benefit realization of the portfolio.

Definition

Scope

Change

Planning

Management

Monitoring

Success

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1.2.3.2 PROGRAM MANAGEMENT

Program management is deﬁned as the application of knowledge, skills, and principles to a program to achieve the

program objectives and to obtain beneﬁts and control not available by managing program components individually.

A program component refers to projects and other programs within a program. Project management focuses on

interdependencies within a project to determine the optimal approach for managing the project. Program management

focuses on the interdependencies between projects and between projects and the program level to determine the

optimal approach for managing them. Actions related to these program and project-level interdependencies may include:

 Aligning with the organizational or strategic direction that affects program and project goals and objectives;

 Allocating the program scope into program components;

 Managing interdependencies among the components of the program to best serve the program;

 Managing program risks that may impact multiple projects in the program;

 Resolving constraints and conﬂicts that affect multiple projects within the program;

 Resolving issues between component projects and the program level;

 Managing change requests within a shared governance framework;

 Allocating budgets across multiple projects within the program; and

 Assuring beneﬁts realization from the program and component projects.

An example of a program is a new communications satellite system with projects for the design and construction of

the satellite and the ground stations, the launch of the satellite, and the integration of the system.

For more information on program management, see The Standard for Program Management [3].

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1.2.3.3 PORTFOLIO MANAGEMENT

A portfolio is deﬁned as projects, programs, subsidiary portfolios, and operations managed as a group to achieve

strategic objectives.

Portfolio management is deﬁned as the centralized management of one or more portfolios to achieve strategic

objectives. The programs or projects of the portfolio may not necessarily be interdependent or directly related.

The aim of portfolio management is to:

 Guide organizational investment decisions.

 Select the optimal mix of programs and projects to meet strategic objectives.

 Provide decision-making transparency.

 Prioritize team and physical resource allocation.

 Increase the likelihood of realizing the desired return on investment.

 Centralize the management of the aggregate risk proﬁle of all components.

Portfolio management also conﬁrms that the portfolio is consistent with and aligned with organizational strategies.

Maximizing the value of the portfolio requires careful examination of the components that comprise the portfolio.

Components are prioritized so that those contributing the most to the organization’s strategic objectives have the

required ﬁnancial, team, and physical resources.

For example, an infrastructure organization 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 organization may choose to manage related projects as one portfolio. All of the power projects may be

grouped together as a power portfolio. Similarly, all of the water projects may be grouped together as a water portfolio.

However, when the organization has projects in designing and constructing a power plant and then operates the power

plant to generate energy, those related projects can be grouped in one program. Thus, the power program and similar

water program become integral components of the portfolio of the infrastructure organization.

For more information on portfolio management, see The Standard for Portfolio Management [2].

16 Part 1 - Guide

1.2.3.4 OPERATIONS MANAGEMENT

Operations management is an area that is outside the scope of formal project management as described in this guide.

Operations management is concerned with the ongoing production of goods and/or services. It ensures that business

operations continue efﬁciently by using the optimal resources needed to meet customer demands. It is concerned with

managing processes that transform inputs (e.g., materials, components, energy, and labor) into outputs (e.g., products,

goods, and/or services).

1.2.3.5 OPERATIONS AND PROJECT MANAGEMENT

Changes in business or organizational operations may be the focus of a project—especially when there are substantial

changes to business operations as a result of a new product or service delivery. Ongoing operations are outside of the

scope of a project; however, there are intersecting points where the two areas cross.

Projects can intersect with operations at various points during the product life cycle, such as;

 When developing a new product, upgrading a product, or expanding outputs;

 While improving operations or the product development process;

 At the end of the product life cycle; and

 At each closeout phase.

At each point, deliverables and knowledge are transferred between the project and operations for implementation of

the delivered work. This implementation occurs through a transfer of project resources or knowledge to operations or

through a transfer of operational resources to the project.

1.2.3.6 ORGANIZATIONAL PROJECT MANAGEMENT (OPM) AND STRATEGIES

Portfolios, programs, and projects are aligned with or driven by organizational strategies and differ in the way each

contributes to the achievement of strategic goals:

 Portfolio management aligns portfolios with organizational strategies by selecting the right programs or projects,

prioritizing the work, and providing the needed resources.

 Program management harmonizes its program components and controls interdependencies in order to realize

speciﬁed beneﬁts.

 Project management enables the achievement of organizational goals and objectives.

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Within portfolios or programs, projects are a means of achieving organizational goals and objectives. This is often

accomplished in the context of a strategic plan that is the primary factor guiding investments in projects. Alignment

with the organization’s strategic business goals can be achieved through the systematic management of portfolios,

programs, and projects through the application of organizational project management (OPM). OPM is deﬁned as a

framework in which portfolio, program, and project management are integrated with organizational enablers in order to

achieve strategic objectives.

The purpose of OPM is to ensure that the organization undertakes the right projects and allocates critical resources

appropriately. OPM also helps to ensure that all levels in the organization understand the strategic vision, the initiatives

that support the vision, the objectives, and the deliverables. Figure 1-4 shows the organizational environment where

strategy, portfolio, programs, projects, and operations interact.

For more information on OPM, refer to Implementing Organizational Project Management: A Practice Guide [8].

Figure 1-4. Organizational Project Management

1.2.4 COMPONENTS OF THE GUIDE

Projects comprise several key components that, when effectively managed, result in their successful completion.

This guide identiﬁes and explains these components. The various components interrelate to one another during the

management of a project.

The key components are described brieﬂy in Table 1-3. These components are more fully explained in the sections

that follow the table.

Strategy

Portfolio:

Value

Decisions

Portfolio Review and Adjustments

Organizational Environment

Business Impact Analysis

Value Performance Analysis

Programs

and Projects:

Results

Delivery

Operations:

Business Value

Realization

18 Part 1 - Guide

PMBOK® Guide Key Component Brief Description

The series of phases that a project passes through from its start to its completion.

A collection of logically related project activities that culminates in the completion of

one or more deliverables.

A review at the end of a phase in which a decision is made to continue to the next

phase, to continue with modification, or to end a program or project.

A systematic series of activities directed toward causing an end result where one or

more inputs will be acted upon to create one or more outputs.

A logical grouping of project management inputs, tools and techniques, and outputs.

The Project Management Process Groups include Initiating, Planning, Executing,

Monitoring and Controlling, and Closing. Project Management Process Groups are not

project phases.

An identified area of project management defined by its knowledge requirements and

described in terms of its component processes, practices, inputs, outputs, tools, and

techniques.

Project life cycle (Section 1.2.4.1)

Project phase (Section 1.2.4.2)

Phase gate (Section 1.2.4.3)

Project management processes

(Section 1.2.4.4)

Project Management Process Group

(Section 1.2.4.5)

Project Management Knowledge Area

(Section 1.2.4.6)

Project Life Cycle

Starting

the Project

KEY: Phase

Gate

Project

Phase

Potential

Use Timeline

Organizing

and Preparing

Carrying Out

the Work

Ending the

Project

Process Groups

10 Knowledge Areas

Initiating

Processes

Planning

Processes

Executing

Processes

Monitoring

and

Controlling

Processes

Closing

Processes

Figure 1-5. Interrelationship of PMBOK® Guide Key Components in Projects

Table 1-3. Description of PMBOK® Guide Key Components

1.2.4.1 PROJECT AND DEVELOPMENT LIFE CYCLES

A project life cycle is the series of phases that a project passes through from its start to its completion. It provides

the basic framework for managing the project. This basic framework applies regardless of the speciﬁc project work

involved. The phases may be sequential, iterative, or overlapping. All projects can be mapped to the generic life cycle

shown in Figure 1-5.

Project life cycles can be predictive or adaptive. Within a project life cycle, there are generally one or more phases

that are associated with the development of the product, service, or result. These are called a development life cycle.

Development life cycles can be predictive, iterative, incremental, adaptive, or a hybrid model:

 In a predictive life cycle, the project scope, time, and cost are determined in the early phases of the life cycle. Any

changes to the scope are carefully managed. Predictive life cycles may also be referred to as waterfall life cycles.

 In an iterative life cycle, the project scope is generally determined early in the project life cycle, but time

and cost estimates are routinely modiﬁed as the project team’s understanding of the product increases.

Iterations develop the product through a series of repeated cycles, while increments successively add to the

functionality of the product.

 In an incremental life cycle, the deliverable is produced through a series of iterations that successively add

functionality within a predetermined time frame. The deliverable contains the necessary and sufﬁcient capability

to be considered complete only after the ﬁnal iteration.

 Adaptive life cycles are agile, iterative, or incremental. The detailed scope is deﬁned and approved before the start

of an iteration. Adaptive life cycles are also referred to as agile or change-driven life cycles. See Appendix X3.

 A hybrid life cycle is a combination of a predictive and an adaptive life cycle. Those elements of the project that

are well known or have ﬁxed requirements follow a predictive development life cycle, and those elements that

are still evolving follow an adaptive development life cycle.

It is up to the project management team to determine the best life cycle for each project. The project life cycle

needs to be ﬂexible enough to deal with the variety of factors included in the project. Life cycle ﬂexibility may be

accomplished by:

 Identifying the process or processes needed to be performed in each phase,

 Performing the process or processes identiﬁed in the appropriate phase,

 Adjusting the various attributes of a phase (e.g., name, duration, exit criteria, and entrance criteria).

Project life cycles are independent of product life cycles, which may be produced by a project. A product life cycle

is the series of phases that represent the evolution of a product, from concept through delivery, growth, maturity, and

to retirement.

20 Part 1 - Guide

1.2.4.2 PROJECT PHASE

A project phase is a collection of logically related project activities that culminates in the completion of one or more

deliverables. The phases in a life cycle can be described by a variety of attributes. Attributes may be measurable and

unique to a speciﬁc phase. Attributes may include but are not limited to:

 Name (e.g., Phase A, Phase B, Phase 1, Phase 2, proposal phase),

 Number (e.g., three phases in the project, ﬁve phases in the project),

 Duration (e.g., 1 week, 1 month, 1 quarter),

 Resource requirements (e.g., people, buildings, equipment),

 Entrance criteria for a project to move into that phase (e.g., speciﬁed approvals documented, speciﬁed documents

completed), and

 Exit criteria for a project to complete a phase (e.g., documented approvals, completed documents, completed

deliverables).

Projects may be separated into distinct phases or subcomponents. These phases or subcomponents are generally

given names that indicate the type of work done in that phase. Examples of phase names include but are not limited to:

 Concept development,

 Feasibility study,

 Customer requirements,

 Solution development,

 Design,

 Prototype,

 Build,

 Test,

 Transition,

 Commissioning,

 Milestone review, and

 Lessons learned.

The project phases may be established based on various factors including, but not limited to:

 Management needs;

 Nature of the project;

 Unique characteristics of the organization, industry, or technology;

 Project elements including, but not limited to, technology, engineering, business, process, or legal; and

 Decision points (e.g., funding, project go/no-go, and milestone review).

Using multiple phases may provide better insight to managing the project. It also provides an opportunity to assess

the project performance and take necessary corrective or preventive actions in subsequent phases. A key component

used with project phases is the phase review (see Section 1.2.4.3).

1.2.4.3 PHASE GATE

A phase gate, is held at the end of a phase. The project’s performance and progress are compared to project and

business documents including but not limited to:

 Project business case (see Section 1.2.6.1),

 Project charter (see Section 4.1),

 Project management plan (see Section 4.2), and

 Beneﬁts management plan (see Section 1.2.6.2).

A decision (e.g., go/no-go decision) is made as a result of this comparison to:

 Continue to the next phase,

 Continue to the next phase with modiﬁcation,

 End the project,

 Remain in the phase, or

 Repeat the phase or elements of it.

Depending on the organization, industry, or type of work, phase gates may be referred to by other terms such as,

phase review, stage gate, kill point, and phase entrance or phase exit. Organizations may use these reviews to examine

other pertinent items which are beyond the scope of this guide, such as product-related documents or models.

22 Part 1 - Guide

1.2.4.4 PROJECT MANAGEMENT PROCESSES

The project life cycle is managed by executing a series of project management activities known as project

management processes. Every project management process produces one or more outputs from one or more inputs by

using appropriate project management tools and techniques. The output can be a deliverable or an outcome. Outcomes

are an end result of a process. Project management processes apply globally across industries.

Project management processes are logically linked by the outputs they produce. Processes may contain overlapping

activities that occur throughout the project. The output of one process generally results in either:

 An input to another process, or

 A deliverable of the project or project phase.

Figure 1-6 shows an example of how inputs, tools and techniques, and outputs relate to each other within a process,

and with other processes.

Figure 1-6. Example Process: Inputs, Tools & Techniques, and Outputs

The number of process iterations and interactions between processes varies based on the needs of the project.

Processes generally fall into one of three categories:

 Processes used once or at predefined points in the project. The processes Develop Project Charter and Close

Project or Phase are examples.

 Processes that are performed periodically as needed. The process Acquire Resources is performed as

resources are needed. The process Conduct Procurements is performed prior to needing the procured item.

 Processes that are performed continuously throughout the project. The process Deﬁne Activities may

occur throughout the project life cycle, especially if the project uses rolling wave planning or an adaptive

development approach. Many of the monitoring and control processes are ongoing from the start of the

project, until it is closed out.

Project management is accomplished through the appropriate application and integration of logically grouped project

management processes. While there are different ways of grouping processes, the PMBOK® Guide groups processes

into ﬁve categories called Process Groups.

Inputs Tools & Techniques Outputs

.1 Technique A

.2 Tool C

.1 Project Output A

.2 Project Output B

.1 Input H

.2 Input J

��

1.2.4.5 PROJECT MANAGEMENT PROCESS GROUPS

A Project Management Process Group is a logical grouping of project management processes to achieve speciﬁc

project objectives. Process Groups are independent of project phases. Project management processes are grouped into

the following ﬁve Project Management Process Groups:

 Initiating Process Group. Those processes performed to deﬁne a new project or a new phase of an existing

project by obtaining authorization to start the project or phase.

 Planning Process Group. Those processes required to establish the scope of the project, reﬁne the objectives,

and deﬁne the course of action required to attain the objectives that the project was undertaken to achieve.

 Executing Process Group. Those processes performed to complete the work deﬁned in the project management

plan to satisfy the project requirements.

 Monitoring and Controlling Process Group. Those processes required to track, review, and regulate the

progress and performance of the project; identify any areas in which changes to the plan are required; and

initiate the corresponding changes.

 Closing Process Group. Those processes performed to formally complete or close the project, phase, or contract.

Process flow diagrams are used throughout this guide. The project management processes are linked by

specific inputs and outputs where the result or outcome of one process may become the input to another process

that is not necessarily in the same Process Group. Note that Process Groups are not the same as project phases

(see Section 1.2.4.2).

1.2.4.6 PROJECT MANAGEMENT KNOWLEDGE AREAS

In addition to Process Groups, processes are also categorized by Knowledge Areas. A Knowledge Area is an identiﬁed

area of project management deﬁned by its knowledge requirements and described in terms of its component processes,

practices, inputs, outputs, tools, and techniques.

Although the Knowledge Areas are interrelated, they are deﬁned separately from the project management perspective.

The ten Knowledge Areas identiﬁed in this guide are used in most projects most of the time. The ten Knowledge Areas

described in this guide are:

 Project Integration Management. Includes the processes and activities to identify, define, combine, unify,

and coordinate the various processes and project management activities within the Project Management

Process Groups.

 Project Scope Management. Includes the processes required to ensure the project includes all the work

required, and only the work required, to complete the project successfully.

24 Part 1 - Guide

 Project Schedule Management. Includes the processes required to manage the timely completion of the project.

 Project Cost Management. Includes the processes involved in planning, estimating, budgeting, ﬁnancing,

funding, managing, and controlling costs so the project can be completed within the approved budget.

 Project Quality Management. Includes the processes for incorporating the organization’s quality policy

regarding planning, managing, and controlling project and product quality requirements, in order to meet

stakeholders’ expectations.

 Project Resource Management. Includes the processes to identify, acquire, and manage the resources needed

for the successful completion of the project.

 Project Communications Management. Includes the processes required to ensure timely and appropriate

planning, collection, creation, distribution, storage, retrieval, management, control, monitoring, and ultimate

disposition of project information.

 Project Risk Management. Includes the processes of conducting risk management planning, identiﬁcation,

analysis, response planning, response implementation, and monitoring risk on a project.

 Project Procurement Management. Includes the processes necessary to purchase or acquire products,

services, or results needed from outside the project team.

 Project Stakeholder Management. Includes the processes required to identify the people, groups, or

organizations that could impact or be impacted by the project, to analyze stakeholder expectations and their

impact on the project, and to develop appropriate management strategies for effectively engaging stakeholders

in project decisions and execution.

The needs of a speciﬁc project may require one or more additional Knowledge Areas, for example, construction may

require ﬁnancial management or safety and health management. Table 1-4 maps the Project Management Process

Groups and Knowledge Areas. Sections 4 through 13 provide more detail about each Knowledge Area. This table is an

overview of the basic processes described in Sections 4 through 13.

��

Table 1-4. Project Management Process Group and Knowledge Area Mapping

4.1 Develop

Project Charter

4.2 Develop Project

Management Plan

4.3 Direct and

Manage Project

Work

4.4 Manage Project

Knowledge

4.5 Monitor and

Control Project

Work

4.6 Perform

Integrated Change

Control

4.7 Close Project

or Phase

Knowledge

Areas

Project Management Process Groups

Planning

Process

Group

Executing

Process

Group

Initiating

Process

Group

Monitoring

and Controlling

Process Group

Closing

Process

Group

Project

Integration

Management

Project Scope

Management

Project Schedule

Management

Project Cost

Management

Project

Quality

Management

Project

Resource

Management

Project

Communications

Management

Project Risk

Management

Project

Procurement

Management

Project

Stakeholder

Management

10.

11.

12.

13. 13.1 Identify

Stakeholders

13.2 Plan

Stakeholder

Engagement

13.3 Manage

Stakeholder

Engagement

13.4 Monitor

Stakeholder

Engagement

12.1 Plan

Procurement

Management

12.2 Conduct

Procurements

12.3 Control

Procurements

11.1 Plan Risk

Management

11.2 Identify Risks

11.3 Perform

Qualitative Risk

Analysis

11.4 Perform

Quantitative Risk

Analysis

11.5 Plan Risk

Responses

11.6 Implement

Risk Responses

11.7 Monitor Risks

10.1 Plan

Communications

Management

10.2 Manage

Communications

10.3 Monitor

Communications

9.1 Plan Resource

Management

9.2 Estimate

Activity Resources

9.3 Acquire

Resources

9.4 Develop Team

9.5 Manage Team

9.6 Control

Resources

8.1 Plan Quality

Management

8.2 Manage Quality 8.3 Control Quality

7.1 Plan Cost

Management

7.2 Estimate Costs

7.3 Determine

Budget

7.4 Control Costs

6.1 Plan Schedule

Management

6.2 Dene

Activities

6.3 Sequence

Activities

6.4 Estimate

Activity Durations

6.5 Develop

Schedule

6.6 Control

Schedule

5.1 Plan Scope

Management

5.2 Collect

Requirements

5.3 Dene Scope

5.4 Create WBS

5.5 Validate Scope

5.6 Control Scope

26 Part 1 - Guide

1.2.4.7 PROJECT MANAGEMENT DATA AND INFORMATION

Throughout the life cycle of a project, a signiﬁcant amount of data is collected, analyzed, and transformed. Project

data are collected as a result of various processes and are shared within the project team. The collected data

are analyzed in context, aggregated, and transformed to become project information during various processes.

Information is communicated verbally or stored and distributed in various formats as reports. See Section 4.3 for

Sponsors

Governing Bodies

Steering Committees

PMOs

Stakeholders

Suppliers

Customers

End Users

Figure 3-1. Example of Project Manager’s Sphere of Influence

3.3.2 THE PROJECT

The project manager leads the project team to meet the project’s objectives and stakeholders’ expectations. The

project manager works to balance the competing constraints on the project with the resources available.

The project manager also performs communication roles between the project sponsor, team members, and other

stakeholders. This includes providing direction and presenting the vision of success for the project. The project manager

uses soft skills (e.g., interpersonal skills and the ability to manage people) to balance the conﬂicting and competing

goals of the project stakeholders in order to achieve consensus. In this context, consensus means that the relevant

stakeholders support the project decisions and actions even when there is not 100% agreement.

Research shows that successful project managers consistently and effectively use certain essential skills. Research

reveals that the top 2% of project managers as designated by their bosses and team members distinguish themselves

by demonstrating superior relationship and communication skills while displaying a positive attitude [12].

54 Part 1 - Guide

The ability to communicate with stakeholders, including the team and sponsors applies across multiple aspects of

the project including, but not limited to, the following:

 Developing ﬁnely tuned skills using multiple methods (e.g., verbal, written, and nonverbal);

 Creating, maintaining, and adhering to communications plans and schedules;

 Communicating predictably and consistently;

 Seeking to understand the project stakeholders’ communication needs (communication may be the only

deliverable that some stakeholders received until the project’s end product or service is completed);

 Making communications concise, clear, complete, simple, relevant, and tailored;

 Including important positive and negative news;

 Incorporating feedback channels; and

 Relationship skills involving the development of extensive networks of people throughout the project manager’s

spheres of inﬂuence. These networks include formal networks such as organizational reporting structures.

However, the informal networks that project managers develop, maintain, and nurture are more important.

Informal networks include the use of established relationships with individuals such as subject matter experts

and inﬂuential leaders. Use of these formal and informal networks allows the project manager to engage multiple

people in solving problems and navigating the bureaucracies encountered in a project.

3.3.3 THE ORGANIZATION

The project manager proactively interacts with other project managers. Other independent projects or projects that

are part of the same program may impact a project due to but not limited to the following:

 Demands on the same resources,

 Priorities of funding,

 Receipt or distribution of deliverables, and

 Alignment of project goals and objectives with those of the organization.

Interacting with other project managers helps to create a positive inﬂuence for fulﬁlling the various needs of the

project. These needs may be in the form of human, technical, or ﬁnancial resources and deliverables required by the

team for project completion. The project manager seeks ways to develop relationships that assist the team in achieving

the goals and objectives of the project.

In addition, the project manager maintains a strong advocacy role within the organization. The project manager

proactively interacts with managers within the organization during the course of the project. The project manager also

works with the project sponsor to address internal political and strategic issues that may impact the team or the viability

or quality of the project.

The project manager may work toward increasing the project management competency and capability within the

organization as a whole and is involved in both tacit and explicit knowledge transfer or integration initiatives (see

Section 4.4 on Manage Project Knowledge). The project manager also works to:

 Demonstrate the value of project management,

 Increase acceptance of project management in the organization, and

 Advance the efﬁcacy of the PMO when one exists in the organization.

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 PMO or a portfolio or program manager

who is ultimately responsible for one or more organization-wide projects. The project manager works closely with all

relevant managers to achieve the project objectives and to ensure the project management plan aligns with the portfolio

or program plan. The project manager also works closely and in collaboration with other roles, such as organizational

managers, subject matter experts, and those involved with business analysis. In some situations, the project manager

may be an external consultant placed in a temporary management role.

3.3.4 THE INDUSTRY

The project manager stays informed about current industry trends. The project manager takes this information and

sees how it may impact or apply to the current projects. These trends include but are not limited to:

 Product and technology development;

 New and changing market niches;

 Standards (e.g., project management, quality management, information security management);

 Technical support tools;

 Economic forces that impact the immediate project;

 Inﬂuences affecting the project management discipline; and

 Process improvement and sustainability strategies.

56 Part 1 - Guide

3.3.5 PROFESSIONAL DISCIPLINE

Continuing knowledge transfer and integration is very important for the project manager. This professional

development is ongoing in the project management profession and in other areas where the project manager maintains

subject matter expertise. This knowledge transfer and integration includes but is not limited to:

 Contribution of knowledge and expertise to others within the profession at the local, national, and global levels

(e.g., communities of practice, international organizations); and

 Participation in training, continuing education, and development:

 In the project management profession (e.g., universities, PMI);

 In a related profession (e.g., systems engineering, conﬁguration management); and

 In other professions (e.g., information technology, aerospace).

3.3.6 ACROSS DISCIPLINES

A professional project manager may choose to orient and educate other professionals regarding the value of a

project management approach to the organization. The project manager may serve as an informal ambassador by

educating the organization as to the advantages of project management with regard to timeliness, quality, innovation,

and resource management.

3.4 PROJECT MANAGER COMPETENCES

3.4.1 OVERVIEW

Recent PMI studies applied the Project Manager Competency Development (PMCD) Framework to the skills needed

by project managers through the use of The PMI Talent Triangle® shown in Figure 3-2. The talent triangle focuses on

three key skill sets:

 Technical project management. The knowledge, skills, and behaviors related to speciﬁc domains of project,

program, and portfolio management. The technical aspects of performing one’s role.

 Leadership. The knowledge, skills, and behaviors needed to guide, motivate, and direct a team, to help an

organization achieve its business goals.

 Strategic and business management. The knowledge of and expertise in the industry and organization that

enhanced performance and better delivers business outcomes.

��

Technical Project

Management

Leadership

Strategic and

Business Management

The PMI Talent Triangle®

Figure 3-2. The PMI Talent Triangle®

While technical project management skills are core to program and project management, PMI research indicates that

they are not enough in today’s increasingly complicated and competitive global marketplace. Organizations are seeking

added skills in leadership and business intelligence. Members of various organizations state their belief that these

competencies can support longer-range strategic objectives that contribute to the bottom line. To be the most effective,

project managers need to have a balance of these three skill sets.

58 Part 1 - Guide

3.4.2 TECHNICAL PROJECT MANAGEMENT SKILLS

Technical project management skills are deﬁned as the skills to effectively apply project management knowledge

to deliver the desired outcomes for programs or projects. There are numerous technical project management skills.

The Knowledge Areas in this guide describe many of these necessary project management skills. Project managers

frequently rely on expert judgment to perform well. Being aware of personal expertise and where to ﬁnd others with the

needed expertise are important for success as a project manager.

According to research. the top project managers consistently demonstrated several key skills including, but not

limited to, the ability to:

 Focus on the critical technical project management elements for each project they manage. This focus is as

simple as having the right artifacts readily available. At the top of the list were the following:

 Critical success factors for the project,

 Schedule,

 Selected ﬁnancial reports, and

 Issue log.

 Tailor both traditional and agile tools, techniques, and methods for each project.

 Make time to plan thoroughly and prioritize diligently.

 Manage project elements, including, but not limited to, schedule, cost, resources, and risks.

3.4.3 STRATEGIC AND BUSINESS MANAGEMENT SKILLS

Strategic and business management skills involve the ability to see the high-level overview of the organization and

effectively negotiate and implement decisions and actions that support strategic alignment and innovation. This ability

may include a working knowledge of other functions such as ﬁnance, marketing, and operations. Strategic and business

management skills may also include developing and applying pertinent product and industry expertise. This business

knowledge is also known as domain knowledge. Project managers should be knowledgeable enough about the business

to be able to:

 Explain to others the essential business aspects of a project;

 Work with the project sponsor, team, and subject matter experts to develop an appropriate project delivery

strategy; and

 Implement that strategy in a way that maximizes the business value of the project.

��

In order to make the best decisions regarding the successful delivery of their projects, project managers should seek

out and consider the expertise of the operational managers who run the business in their organization. These managers

should know the work performed in their organization and how project plans will affect that work. The more the project

manager is able to know about the project’s subject matter, the better. At a minimum, the project manager should be

knowledgeable enough to explain to others the following aspects of the organization:

 Strategy;

 Mission;

 Goals and objectives;

 Products and services;

 Operations (e.g., location, type, technology);

 The market and the market condition, such as customers, state of the market (i.e., growing or shrinking), and

time-to-market factors, etc.; and

 Competition (e.g., what, who, position in the market place).

The project manager should apply the following knowledge and information about the organization to the project to

ensure alignment:

 Strategy,

 Mission,

 Goals and objectives,

 Priority,

 Tactics, and

 Products or services (e.g., deliverables).

60 Part 1 - Guide

Strategic and business skills help the project manager to determine which business factors should be considered for

their project. The project manager determines how these business and strategic factors could affect the project while

understanding the interrelationship between the project and the organization. These factors include but are not limited to:

 Risks and issues,

 Financial implications,

 Cost versus beneﬁts analysis (e.g., net present value, return on investment), including the various options

considered,

 Business value,

 Beneﬁts realization expectations and strategies, and

 Scope, budget, schedule, and quality.

Through the application of this business knowledge, a project manager has the ability to make the appropriate

decisions and recommendations for a project. As conditions change, the project manager should be continuously

working with the project sponsor to keep the business and the project strategies aligned.

3.4.4 LEADERSHIP SKILLS

Leadership skills involve the ability to guide, motivate, and direct a team. These skills may include demonstrating

essential capabilities such as negotiation, resilience, communication, problem solving, critical thinking, and interpersonal

skills. Projects are becoming increasingly more complicated with more and more businesses executing their strategy

through projects. Project management is more than just working with numbers, templates, charts, graphs, and computing

systems. A common denominator in all projects is people. People can be counted, but they are not numbers.

3.4.4.1 DEALING WITH PEOPLE

A large part of the project manager’s role involves dealing with people. The project manager should study people’s

behaviors and motivations. The project manager should strive to be a good leader, because leadership is crucial to the

success of projects in organizations. A project manager applies leadership skills and qualities when working with all

project stakeholders, including the project team, the steering team, and project sponsors.

��

3.4.4.2 QUALITIES AND SKILLS OF A LEADER

Research shows that the qualities and skills of a leader include but are not limited to:

 Being a visionary (e.g., help to describe the products, goals, and objectives of the project; able to dream and

translate those dreams for others);

 Being optimistic and positive;

 Being collaborative;

 Managing relationships and conﬂict by:

 Building trust;

 Satisfying concerns;

 Seeking consensus;

 Balancing competing and opposing goals;

 Applying persuasion, negotiation, compromise, and conﬂict resolution skills;

 Developing and nurturing personal and professional networks;

 Taking a long-term view that relationships are just as important as the project; and

 Continuously developing and applying political acumen.

 Communicating by:

 Spending sufﬁcient time communicating (research shows that top project managers spend about 90% of

their time on a project in communicating);

 Managing expectations;

 Accepting feedback graciously;

 Giving feedback constructively; and

 Asking and listening.

 Being respectful (helping others retain their autonomy), courteous, friendly, kind, honest, trustworthy, loyal,

and ethical;

 Exhibiting integrity and being culturally sensitive, courageous, a problem solver, and decisive;

 Giving credit to others where due;

 Being a life-long learner who is results- and action-oriented;

62 Part 1 - Guide

 Focusing on the important things, including:

 Continuously prioritizing work by reviewing and adjusting as necessary;

 Finding and using a prioritization method that works for them and the project;

 Differentiating high-level strategic priorities, especially those related to critical success factors for the project;

 Maintaining vigilance on primary project constraints;

 Remaining ﬂexible on tactical priorities; and

 Being able to sift through massive amounts of information to obtain the most important information.

 Having a holistic and systemic view of the project, taking into account internal and external factors equally;

 Being able to apply critical thinking (e.g., application of analytical methods to reach decisions) and identify him

or herself as a change agent.

 Being able to build effective teams, be service-oriented, and have fun and share humor effectively with

team members.

3.4.4.3 POLITICS, POWER, AND GETTING THINGS DONE

Leadership and management are ultimately about being able to get things done. The skills and qualities noted help

the project manager to achieve the project goals and objectives. At the root of many of these skills and qualities is the

ability to deal with politics. Politics involves inﬂuence, negotiation, autonomy, and power.

Politics and its associated elements are not “good” or “bad,” “positive” or “negative” alone. The better the project

manager understands how the organization works, the more likely he or she will be successful. The project manager

observes and collects data about the project and organizational landscapes. The data then needs to be reviewed in the

context of the project, the people involved, the organization, and the environment as a whole. This review yields the

information and knowledge necessary for the project manager to plan and implement the most appropriate action. The

project manager’s action is a result of selecting the right kind of power to inﬂuence and negotiate with others. Exercise

of power also carries with it the responsibility of being sensitive to and respectful of other people. The effective action of

the project manager maintains the autonomy of those involved. The project manager’s action results in the right people

performing the activities necessary to fulﬁll the project’s objectives.

��

Power can originate with traits exhibited by the individual or the organization. Power is often supported by other

people’s perception of the leader. It is essential for project managers to be aware of their relationships with other people.

Relationships enable project managers to get things done on the project. There are numerous forms of power at the

disposal of project managers. Power and its use can be complex given its nature and the various factors at play in a

project. Various forms of power include but are not limited to:

 Positional (sometimes called formal, authoritative, legitimate) (e.g., formal position granted in the organization

or team);

 Informational (e.g., control of gathering or distribution);

 Referent (e.g., respect or admiration others hold for the individual, credibility gained);

 Situational (e.g., gained due to unique situation such as a speciﬁc crisis);

 Personal or charismatic (e.g., charm, attraction);

 Relational (e.g., participates in networking, connections, and alliances);

 Expert (e.g., skill, information possessed; experience, training, education, certiﬁcation);

 Reward-oriented (e.g., ability to give praise, monetary or other desired items);

 Punitive or coercive (e.g., ability to invoke discipline or negative consequences);

 Ingratiating (e.g., application of ﬂattery or other common ground to win favor or cooperation);

 Pressure-based (e.g., limit freedom of choice or movement for the purpose of gaining compliance to desired action);

 Guilt-based (e.g., imposition of obligation or sense of duty);

 Persuasive (e.g., ability to provide arguments that move people to a desired course of action); and

 Avoiding (e.g., refusing to participate).

Top project managers are proactive and intentional when it comes to power. These project managers will work to

acquire the power and authority they need within the boundaries of organizational policies, protocols, and procedures

rather than wait for it to be granted.

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3.4.5 COMPARISON OF LEADERSHIP AND MANAGEMENT

The words leadership and management are often used interchangeably. However, they are not synonymous. The

word management is more closely associated with directing another person to get from one point to another using a

known set of expected behaviors. In contrast, leadership involves working with others through discussion or debate in

order to guide them from one point to another.

The method that a project manager chooses to employ reveals a distinct difference in behavior, self-perception, and

project role. Table 3-1 compares management and leadership on several important levels.

Project managers need to employ both leadership and management in order to be successful. The skill is in ﬁnding

the right balance for each situation. The way in which management and leadership are employed often shows up in the

project manager’s leadership style.

Table 3-1. Team Management and Team Leadership Compared

Management Leadership

Guide, influence, and collaborate using relational power

Develop

Innovate

Focus on relationships with people

Inspire trust

Focus on long-range vision

Ask what and why

Focus on the horizon

Challenge status quo

Do the right things

Focus on vision, alignment, motivation, and inspiration

Direct using positional power

Maintain

Administrate

Focus on systems and structure

Rely on control

Focus on near-term goals

Ask how and when

Focus on bottom line

Accept status quo

Do things right

Focus on operational issues and problem solving

��

3.4.5.1 LEADERSHIP STYLES

Project managers may lead their teams in many ways. The style a project manager selects may be a personal

preference, or the result of the combination of multiple factors associated with the project. The style a project manager

uses may change over time based on the factors in play. Major factors to consider include but are not limited to:

 Leader characteristics (e.g., attitudes, moods, needs, values, ethics);

 Team member characteristics (e.g., attitudes, moods, needs, values, ethics);

 Organizational characteristics (e.g., its purpose, structure, and type of work performed); and

 Environmental characteristics (e.g., social situation, economic state, and political elements).

Research describes numerous leadership styles that a project manager can adopt. Some of the most common

examples of these styles include but are not limited to:

 Laissez-faire (e.g., allowing the team to make their own decisions and establish their own goals, also referred to

as taking a hands-off style);

 Transactional (e.g., focus on goals, feedback, and accomplishment to determine rewards; management

by exception);

 Servant leader (e.g., demonstrates commitment to serve and put other people ﬁrst; focuses on other people’s

growth, learning, development, autonomy, and well-being; concentrates on relationships, community and

collaboration; leadership is secondary and emerges after service);

 Transformational (e.g., empowering followers through idealized attributes and behaviors, inspirational motivation,

encouragement for innovation and creativity, and individual consideration);

 Charismatic (e.g., able to inspire; is high-energy, enthusiastic, self-conﬁdent; holds strong convictions); and

 Interactional (e.g., a combination of transactional, transformational, and charismatic).

66 Part 1 - Guide

3.4.5.2 PERSONALITY

Personality refers to the individual differences in characteristic patterns of thinking, feeling, and behaving. Personality

characteristics or traits include but are not limited to:

 Authentic (e.g., accepts others for what and who they are, show open concern);

 Courteous (e.g., ability to apply appropriate behavior and etiquette);

 Creative (e.g., ability to think abstractly, to see things differently, to innovate);

 Cultural (e.g., measure of sensitivity to other cultures including values, norms, and beliefs);

 Emotional (e.g., ability to perceive emotions and the information they present and to manage them; measure of

interpersonal skills);

 Intellectual (e.g., measure of human intelligence over multiple aptitudes);

 Managerial (e.g., measure of management practice and potential);

 Political (e.g., measure of political intelligence and making things happen);

 Service-oriented (e.g., evidence of willingness to serve other people);

 Social (e.g., ability to understand and manage people); and

 Systemic (e.g., drive to understand and build systems).

An effective project manager will have some level of ability with each of these characteristics in order to be successful.

Each project, organization, and situation requires that the project manager emphasize different aspects of personality.

3.5 PERFORMING INTEGRATION

The role of the project manager is twofold when performing integration on the project:

 Project managers play a key role in working with the project sponsor to understand the strategic objectives and

ensure the alignment of the project objectives and results with those of the portfolio, program, and business

areas. In this way, project managers contribute to the integration and execution of the strategy.

 Project managers are responsible for guiding the team to work together to focus on what is really essential at the

project level. This is achieved through the integration of processes, knowledge, and people.

Integration is a critical skill for project managers. Integration is covered more in depth in the Project Integration

Management Knowledge Area of this guide. Sections 3.5.1 through 3.5.4 focus on integration that takes place at

three different levels: the process, cognitive, and context levels. Section 3.5.4 concludes by addressing complexity

and integration.

3.5.1 PERFORMING INTEGRATION AT THE PROCESS LEVEL

Project management may be seen as a set of processes and activities that are undertaken to achieve the project

objectives. Some of these processes may take place once (e.g., the initial creation of the project charter), but many others

overlap and occur several times throughout the project. One example of this process overlap and multiple occurrences

is a change in a requirement that impacts scope, schedule, or budget and requires a change request. Several project

management processes such as the Control Scope process and the Perform Integrated Change Control process may

involve a change request. The Perform Integrated Change Control process occurs throughout the project for integrating

change requests.

Although there is no stated deﬁnition on how to integrate the project processes, it is clear that a project has a small

chance of meeting its objective when the project manager fails to integrate the project processes where they interact.

3.5.2 INTEGRATION AT THE COGNITIVE LEVEL

There are many different ways to manage a project, and the method selected typically depends on the speciﬁc

characteristics of the project including its size, how complicated the project or organization may be, and the culture of

the performing organization. It is clear that the personal skills and abilities of the project manager are closely related to

the way in which the project is managed.

The project manager should strive to become proﬁcient in all of the Project Management Knowledge Areas. In concert

with proﬁciency in these Knowledge Areas, the project manager applies experience, insight, leadership, and technical

and business management skills to the project. Finally, it is through the project manager’s ability to integrate the

processes in these Knowledge Areas that makes it possible to achieve the desired project results.

3.5.3 INTEGRATION AT THE CONTEXT LEVEL

There have been many changes in the context in which business and projects take place today compared to a

few decades ago. New technologies have been introduced. Social networks, multicultural aspects, virtual teams, and

new values are part of the new reality of projects. An example is knowledge and people integration in the context of

a large cross-functional project implementation involving multiple organizations. The project manager considers the

implications of this context in communications planning and knowledge management for guiding the project team.

Project managers need to be cognizant of the project context and these new aspects when managing the

integration. Then project managers can decide how to best use these new elements of the environment in their

projects to achieve success.

68 Part 1 - Guide

3.5.4 INTEGRATION AND COMPLEXITY

Some projects may be referred to as complex and considered difﬁcult to manage. In simple terms, complex and

complicated are concepts often used to describe what is considered to be intricate or complicated.

Complexity within projects is a result of the organization’s system behavior, human behavior, and the uncertainty at

work in the organization or its environment. In Navigating Complexity: A Practice Guide [13], these three dimensions of

complexity are deﬁned as:

 System behavior. The interdependencies of components and systems.

 Human behavior. The interplay between diverse individuals and groups.

 Ambiguity. Uncertainty of emerging issues and lack of understanding or confusion.

Complexity itself is a perception of an individual based on personal experience, observation, and skill. Rather than

being complex, a project is more accurately described as containing complexity. Portfolios, programs, and projects may

contain elements of complexity.

When approaching the integration of a project, the project manager should consider elements that are both inside and

outside of the project. The project manager should examine the characteristics or properties of the project. Complexity

as a characteristic or property of a project is typically deﬁned as:

 Containing multiple parts,

 Possessing a number of connections between the parts,

 Exhibiting dynamic interactions between the parts, and

 Exhibiting behavior produced as a result of those interactions that cannot be explained as the simple sum of the

parts (e.g., emergent behavior).

Examining these various items that appear to make the project complex should help the project manager identify key

areas when planning, managing, and controlling the project to ensure integration.

��

PROJECT INTEGRATION MANAGEMENT

Project Integration Management includes the processes and activities to identify, deﬁne, combine, unify, and

coordinate the various processes and project management activities within the Project Management Process Groups. In

the project management context, integration includes characteristics of uniﬁcation, consolidation, communication, and

interrelationship. These actions should be applied from the start of the project through completion. Project Integration

Management includes making choices about:

 Resource allocation,

 Balancing competing demands,

 Examining any alternative approaches,

 Tailoring the processes to meet the project objectives, and

 Managing the interdependencies among the Project Management Knowledge Areas.

��

70 Part 1 - Guide

The Project Integration Management processes are:

4.1 Develop Project Charter—The process of developing a document that formally authorizes the existence of

a project and provides the project manager with the authority to apply organizational resources to project activities.

4.2 Develop Project Management Plan—The process of deﬁning, preparing, and coordinating all plan components

and consolidating them into an integrated project management plan.

4.3 Direct and Manage Project Work—The process of leading and performing the work deﬁned in the project

management plan and implementing approved changes to achieve the project’s objectives.

4.4 Manage Project Knowledge—The process of using existing knowledge and creating new knowledge to achieve

the project’s objectives and contribute to organizational learning.

4.5 Monitor and Control Project Work—The process of tracking, reviewing, and reporting overall progress to meet

the performance objectives deﬁned in the project management plan.

4.6 Perform Integrated Change Control—The process of reviewing all change requests; approving changes and

managing changes to deliverables, organizational process assets, project documents, and the project management

plan; and communicating the decisions.

4.7 Close Project or Phase—The process of ﬁnalizing all activities for the project, phase, or contract.

Figure 4-1 provides an overview of the Project Integration Management processes. The Project Integration

Management processes are presented as discrete processes with deﬁned interfaces while, in practice, they overlap

and interact in ways that cannot be completely detailed in the PMBOK® Guide.

��

.1 Inputs

.1 Business documents

.2 Agreements

.3 Enterprise environmental

factors

.4 Organizational process

assets

.2 Tools & Techniques

.1 Expert judgment

.2 Data gathering

.3 Interpersonal and team

skills

.4 Meetings

.3 Outputs

.1 Project charter

.2 Assumption log

Project Integration

Management Overview

4.1 Develop

Project Charter

.1 Inputs

.1 Project charter

.2 Outputs from other

processes

.3 Enterprise environmental

factors

.4 Organizational process

assets

.2 Tools & Techniques

.1 Expert judgment

.2 Data gathering

.3 Interpersonal and team

skills

.4 Meetings

.3 Outputs

.1 Project management plan

4.2 Develop Project

Management Plan

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Approved change requests

.4 Enterprise environmental

factors

.5 Organizational process

assets

.2 To ols & Techniques

.1 Expert judgment

.2 Project management

information system

.3 Meetings

.3 Outputs

.1 Deliverables

.2 Work performance data

.3 Issue log

.4 Change requests

.5 Project management plan

updates

.6 Project documents updates

.7 Organizational process

assets updates

4.3 Direct and Manage

Project Work

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Work performance

information

.4 Agreements

.5 Enterprise environmental

factors

.6 Organizational process

assets

.2 Tools & Techniques

.1 Expert judgment

.2 Data analysis

.3 Decision making

.4 Meetings

.3 Outputs

.1 Work performance reports

.2 Change requests

.3 Project management plan

updates

.4 Project documents updates

4.5 Monitor and

Control Project Work

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Work performance reports

.4 Change requests

.5 Enterprise environmental

factors

.6 Organizational process

assets

.2 Tools & Techniques

.1 Expert judgment

.2 Change control tools

.3 Data analysis

.4 Decision making

.5 Meetings

.3 Outputs

.1 Approved change requests

.2 Project management plan

updates

.3 Project documents

updates

4.6 Perform Integrated

Change Control

.1 Inputs

.1 Project charter

.2 Project management plan

.3 Project documents

.4 Accepted deliverables

.5 Business documents

.6 Agreements

.7 Procurement

documentation

.8 Organizational process

assets

.2 To ols & Techniques

.1 Expert judgment

.2 Data analysis

.3 Meetings

.3 Outputs

.1 Project documents updates

.2 Final product, service, or

result transition

.3 Final report

.4 Organizational process

assets updates

4.7 Close Project

or Phase

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Deliverables

.4 Enterprise environmental

factors

.5 Organizational process

assets

.2 To ols & Techniques

.1 Expert judgment

.2 Knowledge management

.3 Information management

.4 Interpersonal and team

skills

.3 Outputs

.1 Lessons learned register

.2 Project management plan

updates

.3 Organizational process

assets updates

4.4 Manage

Project Knowledge

Figure 4-1. Project Integration Management Overview

72 Part 1 - Guide

KEY CONCEPTS FOR PROJECT INTEGRATION MANAGEMENT

Project Integration Management is speciﬁc to project managers. Whereas other Knowledge Areas may be managed

by specialists (e.g., cost analysis, scheduling specialists, risk management experts), the accountability of Project

Integration Management cannot be delegated or transferred. The project manager is the one who combines the results

in all the other Knowledge Areas and has the overall view of the project. The project manager is ultimately responsible

for the project as a whole.

Projects and project management are integrative by nature. For example, a cost estimate needed for a contingency

plan involves integrating the processes in the Project Cost Management, Project Schedule Management, and Project

Risk Management Knowledge Areas. When additional risks associated with various stafﬁng alternatives are identiﬁed,

then one or more of those processes may be revisited.

The links among the processes in the Project Management Process Groups are often iterative. For example, the

Planning Process Group provides the Executing Process Group with a documented project management plan early in the

project and then updates the project management plan if changes occur as the project progresses.

Project Integration Management is about:

 Ensuring that the deliverable due dates of the product, service, or result; project life cycle; and the beneﬁts

management plan are aligned;

 Providing a project management plan to achieve the project objectives;

 Ensuring the creation and the use of the appropriate knowledge to and from the project as necessary;

 Managing the performance and changes of the activities in the project management plan;

 Making integrated decisions regarding key changes impacting the project;

 Measuring and monitoring the project’s progress and taking appropriate action to meet project objectives;

 Collecting data on the results achieved, analyzing the data to obtain information, and communicating this

information to relevant stakeholders;

 Completing all the work of the project and formally closing each phase, contract, and the project as a whole;

and

 Managing phase transitions when necessary.

The more complex the project and the more varied the expectations of the stakeholders, the more a sophisticated

approach to integration is needed.

TRENDS AND EMERGING PRACTICES IN PROJECT INTEGRATION MANAGEMENT

The Project Integration Management Knowledge Area requires combining the results from all the other Knowledge

Areas. Evolving trends in integration processes include but are not limited to:

 Use of automated tools. The volume of data and information that project managers need to integrate makes it

necessary to use a project management information system (PMIS) and automated tools to collect, analyze, and

use information to meet project objectives and realize project beneﬁts.

 Use of visual management tools. Some project teams use visual management tools, rather than written plans

and other documents, to capture and oversee critical project elements. Making key project elements visible to

the entire team provides a real-time overview of the project status, facilitates knowledge transfer, and empowers

team members and other stakeholders to help identify and solve issues.

 Project knowledge management. The increasingly mobile and transitory work force requires a more rigorous

process of identifying knowledge throughout the project life cycle and transferring it to the target audience so

that the knowledge is not lost.

 Expanding the project manager’s responsibilities. Project managers are being called on to initiate and ﬁnalize

the project, such as project business case development and beneﬁts management. Historically, these activities

have been the responsibility of management and the project management ofﬁce, but project managers are more

frequently collaborating with them to better meet project objectives and deliver beneﬁts. Project managers are

also engaging in more comprehensive identiﬁcation and engagement of stakeholders. This includes managing

the interfaces with various functional and operational departments and senior management personnel.

 Hybrid methodologies. Some project management methodologies are evolving to incorporate successfully

applied new practices. Examples include the use of agile and other iterative practices; business analysis

techniques for requirements management; tools for identifying complex elements in projects; and organizational

change management methods to prepare for transitioning the project outputs into the organization.

74 Part 1 - Guide

TAILORING CONSIDERATIONS

Because each project is unique, the project manager may need to tailor the way that Project Integration Management

processes are applied. Considerations for tailoring include but are not limited to:

 Project life cycle. What is an appropriate project life cycle? What phases should comprise the project life cycle?

 Development life cycle. What development life cycle and approach are appropriate for the product, service,

or result? Is a predictive or adaptive approach appropriate? If adaptive, should the product be developed

incrementally or iteratively? Is a hybrid approach best?

 Management approaches. What management processes are most effective based on the organizational culture

and the complexity of the project?

 Knowledge management. How will knowledge be managed in the project to foster a collaborative working

environment?

 Change. How will change be managed in the project?

 Governance. What control boards, committees, and other stakeholders are part of the project? What are the

project status reporting requirements?

 Lessons learned. What information should be collected throughout and at the end of the project? How will

historical information and lessons learned be made available to future projects?

 Benefits. When and how should beneﬁts be reported: at the end of the project or at the end of each iteration

or phase?

CONSIDERATIONS FOR AGILE/ADAPTIVE ENVIRONMENTS

Iterative and agile approaches promote the engagement of team members as local domain experts in integration

management. The team members determine how plans and components should integrate.

The expectations of the project manager as noted in the Key Concepts for Integration Management do not change in

an adaptive environment, but control of the detailed product planning and delivery is delegated to the team. The project

manager’s focus is on building a collaborative decision-making environment and ensuring the team has the ability to

respond to changes. This collaborative approach can be further enhanced when team members possess a broad skill

base rather than a narrow specialization.

��

4.1 DEVELOP PROJECT CHARTER

Develop Project Charter is the process of developing a document that formally authorizes the existence of a project

and provides the project manager with the authority to apply organizational resources to project activities. The key

beneﬁts of this process are that it provides a direct link between the project and the strategic objectives of the

organization, creates a formal record of the project, and shows the organizational commitment to the project. This

process is performed once or at predeﬁned points in the project. The inputs, tools and techniques, and outputs of the

process are depicted in Figure 4-2. Figure 4-3 depicts the data ﬂow diagram for the process.

Figure 4-2. Develop Project Charter: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

Develop Project Charter

.1 Expert judgment

.2 Data gathering

• Brainstorming

• Focus groups

• Interviews

.3 Interpersonal and team skills

• Conflict management

• Facilitation

• Meeting management

.4 Meetings

.1 Business documents

• Business case

• Benefits management plan

.2 Agreements

.3 Enterprise environmental

factors

.4 Organizational process assets

.1 Project charter

.2 Assumption log

76 Part 1 - Guide

• Enterprise environmental factors

• Organizational process assets

Business documents

• Business case

• Benefits management plan

• Assumption log

• Agreements • Project charter

Business

Documents

5.1

Plan Scope

Management

5.2

Collect

Requirements

5.3

Define Scope

6.1

Plan Schedule

Management

7.1

Plan Cost

Management

8.1

Plan Quality

Management

9.1

Plan Resource

Management

10.1

Plan

Communications

Management

11.1

Plan Risk

Management

12.1

Plan Procurement

Management

13.1

Identify

Stakeholders

13.2

Plan

Stakeholder

Engagement

4.7

Close Project

or Phase

4.2

Develop Project

Management

Plan

Enterprise/

Organization

Project

Documents

4.1

Develop Project

Charter

Figure 4-3. Develop Project Charter: Data Flow Diagram

��

The project charter establishes a partnership between the performing and requesting organizations. In the case

of external projects, a formal contract is typically the preferred way to establish an agreement. A project charter may

still be used to establish internal agreements within an organization to ensure proper delivery under the contract. The

approved project charter formally initiates the project. A project manager is identiﬁed and assigned as early in the

project as is feasible, preferably while the project charter is being developed and always prior to the start of planning.

The project charter can be developed by the sponsor or the project manager in collaboration with the initiating entity.

This collaboration allows the project manager to have a better understanding of the project purpose, objectives, and

expected beneﬁts. This understanding will better allow for efﬁcient resource allocation to project activities. The project

charter provides the project manager with the authority to plan, execute, and control the project.

Projects are initiated by an entity external to the project such as a sponsor, program, or project management ofﬁce

(PMO), or a portfolio governing body chairperson or authorized representative. The project initiator or sponsor should

be at a level that is appropriate to procure funding and commit resources to the project. Projects are initiated due to

internal business needs or external inﬂuences. These needs or inﬂuences often trigger the creation of a needs analysis,

feasibility study, business case, or description of the situation that the project will address. Chartering a project validates

alignment of the project to the strategy and ongoing work of the organization. A project charter is not considered to be

a contract because there is no consideration or money promised or exchanged in its creation.

4.1.1 DEVELOP PROJECT CHARTER: INPUTS

4.1.1.1 BUSINESS DOCUMENTS

The business case (described in Section 1.2.6.1) and the beneﬁts management plan (described in Section 1.2.6.2)

are sources of information about the project´s objectives and how the project will contribute to the business goals.

Although the business documents are developed prior to the project, they are reviewed periodically.

 Business case. The approved business case, or similar, is the business document most commonly used to

create the project charter. The business case describes the necessary information from a business standpoint to

determine whether the expected outcomes of the project justify the required investment. It is commonly used for

decision making by managers or executives above the project level. Typically, the business need and the cost-

beneﬁt analysis are contained in the business case to justify and establish boundaries for the project. For more

information on the business case, see Section 1.2.6.1. The business case is created as a result of one or more

of the following:

78 Part 1 - Guide

 Market demand (e.g., an automobile manufacturer authorizing a project to build more fuel-efﬁcient cars in

response to gasoline shortages),

 Organizational need (e.g., due to high overhead costs, a company may combine staff functions and streamline

processes to reduce costs),

 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 airline authorizing a new project to develop electronic tickets instead of paper

tickets based on technological advances),

 Legal requirement (e.g., a paint manufacturer authorizing a project to establish guidelines for handling

toxic materials),

 Ecological impacts (e.g., a company authorizing a project to lessen its environmental impact), or

 Social need (e.g., a nongovernmental organization in a developing country authorizing a project to

provide potable water systems, latrines, and sanitation education to communities suffering from high

rates of cholera).

The project charter incorporates the appropriate information for the project from the business documents. The project

manager does not update or modify the business documents since they are not project documents; however, the project

manager may make recommendations.

4.1.1.2 AGREEMENTS

Described in Section 12.2.3.2. Agreements are used to deﬁne initial intentions for a project. Agreements may take

the form of contracts, memorandums of understanding (MOUs), service level agreements (SLA), letters of agreement,

letters of intent, verbal agreements, email, or other written agreements. Typically, a contract is used when a project is

being performed for an external customer.

4.1.1.3 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Develop Project Charter process include but are not

limited to:

 Government or industry standards (e.g., product standards, quality standards, safety standards, and workmanship

standards),

 Legal and regulatory requirements and/or constraints,

 Marketplace conditions,

 Organizational culture and political climate,

 Organizational governance framework (a structured way to provide control, direction, and coordination through

people, policies, and processes to meet organizational strategic and operational goals), and

 Stakeholders’ expectations and risk thresholds.

��

4.1.1.4 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Develop Project Charter process include but are not

limited to:

 Organizational standard policies, processes, and procedures;

 Portfolio, program, and project governance framework (governance functions and processes to provide guidance

and decision making);

 Monitoring and reporting methods;

 Templates (e.g., project charter template); and

 Historical information and lessons learned repository (e.g., project records and documents, information about the

results of previous project selection decisions, and information about previous project performance).

4.1.2 DEVELOP PROJECT CHARTER: TOOLS AND TECHNIQUES

4.1.2.1 EXPERT JUDGMENT

Expert judgment is deﬁned as judgment provided based upon expertise in an application area, Knowledge Area,

discipline, industry, etc., as appropriate for the activity being performed. Such expertise may be provided by any group

or person with specialized education, knowledge, skill, experience, or training.

For this process, expertise should be considered from individuals or groups with specialized knowledge of or training

in the following topics:

 Organizational strategy,

 Beneﬁts management,

 Technical knowledge of the industry and focus area of the project,

 Duration and budget estimation, and

 Risk identiﬁcation.

80 Part 1 - Guide

4.1.2.2 DATA GATHERING

Data-gathering techniques that can be used for this process include but are not limited to:

 Brainstorming. This technique is used to identify a list of ideas in a short period of time. It is conducted in a

group environment and is led by a facilitator. Brainstorming comprises two parts: idea generation and analysis.

Brainstorming can be used to gather data and solutions or ideas from stakeholders, subject matter experts, and

team members when developing the project charter.

 Focus groups. Described in Section 5.2.2.2. Focus groups bring together stakeholders and subject matter

experts to learn about the perceived project risk, success criteria, and other topics in a more conversational way

than a one-on-one interview.

 Interviews. Described in Section 5.2.2.2. Interviews are used to obtain information on high-level requirements,

assumptions or constraints, approval criteria, and other information from stakeholders by talking directly to them.

4.1.2.3 INTERPERSONAL AND TEAM SKILLS

Interpersonal and team skills that can be used for this process include but are not limited to:

 Conflict management. Described in Section 9.5.2.1. Conﬂict management can be used to help bring

stakeholders into alignment on the objectives, success criteria, high-level requirements, project description,

summary milestones, and other elements of the charter.

 Facilitation. Facilitation is the ability to effectively guide a group event to a successful decision, solution,

or conclusion. A facilitator ensures that there is effective participation, that participants achieve a mutual

understanding, that all contributions are considered, that conclusions or results have full buy-in according to the

decision process established for the project, and that the actions and agreements achieved are appropriately

dealt with afterward.

 Meeting management. Described in Section 10.2.2.6. Meeting management includes preparing the agenda,

ensuring that a representative for each key stakeholder group is invited, and preparing and sending the follow-up

minutes and actions.

4.1.2.4 MEETINGS

For this process, meetings are held with key stakeholders to identify the project objectives, success criteria, key

deliverables, high-level requirements, summary milestones, and other summary information.

��

4.1.3 DEVELOP PROJECT CHARTER: OUTPUTS

4.1.3.1 PROJECT CHARTER

The project charter is the 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.

It 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;

 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.

At a high level, the project charter ensures a common understanding by the stakeholders of the key deliverables,

milestones, and the roles and responsibilities of everyone involved in the project.

4.1.3.2 ASSUMPTION LOG

High-level strategic and operational assumptions and constraints are normally identiﬁed in the business case before

the project is initiated and will ﬂow into the project charter. Lower-level activity and task assumptions are generated

throughout the project such as deﬁning technical speciﬁcations, estimates, the schedule, risks, etc. The assumption log

is used to record all assumptions and constraints throughout the project life cycle.

82 Part 1 - Guide

4.2 DEVELOP PROJECT MANAGEMENT PLAN

Develop Project Management Plan is the process of deﬁning, preparing, and coordinating all plan components and

consolidating them into an integrated project management plan. The key beneﬁt of this process is the production of a

comprehensive document that deﬁnes the basis of all project work and how the work will be performed. This process is

performed once or at predeﬁned points in the project. The inputs, tools and techniques, and outputs of the process are

depicted in Figure 4-4. Figure 4-5 depicts the data ﬂow diagram for the process.

Figure 4-4. Develop Project Management Plan: Inputs, Tools & Techniques, and Outputs

Figure 4-5. Develop Project Management Plan: Data Flow Diagram

Tools & TechniquesInputs Outputs

Develop Project Management Plan

.1 Expert judgment

.2 Data gathering

• Brainstorming

• Checklists

• Focus groups

• Interviews

.3 Interpersonal and team skills

• Conflict management

• Facilitation

• Meeting management

.4 Meetings

.1 Project charter

.2 Outputs from other processes

.3 Enterprise environmental

factors

.4 Organizational process assets

.1 Project management plan

• Project

charter

4.2

Develop Project

Management

Plan

Enterprise/

Organization

4.1

Develop Project

Charter

Outputs from

Other Processes

• Project management plan

• Project charter

• Any baseline or

component plan

• Enterprise environmental factors

• Organizational process assets

Project

Management

Plan

��

The project management plan deﬁnes how the project is executed, monitored and controlled, and closed. The project

management plan’s content varies depending on the application area and complexity of the project.

The project management plan may be either summary level or detailed. Each component plan is described to the

extent required by the speciﬁc project. The project management plan should be robust enough to respond to an ever-

changing project environment. This agility may result in more accurate information as the project progresses.

The project management plan should be baselined; that is, it is necessary to deﬁne at least the project references

for scope, time, and cost, so that the project execution can be measured and compared to those references and

performance can be managed. Before the baselines are deﬁned, the project management plan may be updated as

many times as necessary. No formal process is required at that time. But, once it is baselined, it may only be changed

through the Perform Integrated Change Control process. Consequently, change requests will be generated and decided

upon whenever a change is requested. This results in a project management plan that is progressively elaborated by

controlled and approved updates extending through project closure.

Projects that exist in the context of a program or portfolio should develop a project management plan that is consistent

with the program or portfolio management plan. For example, if the program management plan indicates all changes

exceeding a speciﬁed cost need to be reviewed by the change control board (CCB), then this process and cost threshold

need to be deﬁned in the project management plan.

4.2.1 DEVELOP PROJECT MANAGEMENT PLAN: INPUTS

4.2.1.1 PROJECT CHARTER

Described in Section 4.1.3.1. The project team uses the project charter as a starting point for initial project planning.

The type and amount of information in the project charter varies depending on the complexity of the project and the

information known at the time of its creation. At a minimum, the project charter should deﬁne the high-level information

about the project that will be elaborated in the various components of the project management plan.

4.2.1.2 OUTPUTS FROM OTHER PROCESSES

Outputs from many of the other processes described in Sections 5 through 13 are integrated to create the project

management plan. Subsidiary plans and baselines that are an output from other planning processes are inputs to this

process. In addition, changes to these documents may necessitate updates to the project management plan.

84 Part 1 - Guide

4.2.1.3 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Develop Project Management Plan process include but

are not limited to:

 Government or industry standards (e.g., product standards, quality standards, safety standards, and workmanship

standards);

 Legal and regulatory requirements and/or constraints;

 Project management body of knowledge for vertical market (e.g., construction) and/or focus area (e.g.,

environmental, safety, risk, or agile software development);

 Organizational structure, culture, management practices, and sustainability;

 Organizational governance framework (a structured way to provide control, direction, and coordination through

people, policies, and processes to meet organizational strategic and operational goals); and

 Infrastructure (e.g., existing facilities and capital equipment).

4.2.1.4 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Develop Project Management Plan process include but are

not limited to:

 Organizational standard policies, processes, and procedures;

 Project management plan template, including:

 Guidelines and criteria for tailoring the organization’s set of standard processes to satisfy the speciﬁc needs

of the project, and

 Project closure guidelines or requirements such as the product validation and acceptance criteria.

 Change control procedures, including the steps by which ofﬁcial organizational standards, policies, plans,

procedures, or any project documents will be modiﬁed and how any changes will be approved and validated;

 Monitoring and reporting methods, risk control procedures, and communication requirements;

 Project information from previous similar projects (e.g., scope, cost, schedule and performance measurement

baselines, project calendars, project schedule network diagrams, and risk registers); and

 Historical information and lessons learned repository.

��

4.2.2 DEVELOP PROJECT MANAGEMENT PLAN: TOOLS AND TECHNIQUES

4.2.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized

knowledge of or training in the following topics:

 Tailoring the project management process to meet the project needs, including the dependencies and interactions

among those processes and the essential inputs and outputs;

 Developing additional components of the project management plan if needed;

 Determining the tools and techniques to be used for accomplishing those processes;

 Developing technical and management details to be included in the project management plan;

 Determining resources and skill levels needed to perform project work;

 Deﬁning the level of conﬁguration management to apply on the project;

 Determining which project documents will be subject to the formal change control process; and

 Prioritizing the work on the project to ensure the project resources are allocated to the appropriate work at the

appropriate time.

4.2.2.2 DATA GATHERING

Data-gathering techniques that can be used for this process include but are not limited to:

 Brainstorming. Described in Section 4.1.2.2. Brainstorming is frequently used when developing the project

management plan to gather ideas and solutions about the project approach. Attendees include the project team

members although other subject matter experts (SMEs) or stakeholders may also participate.

 Checklists. Described in Section 11.2.2.2. Many organizations have standardized checklists available based in

their own experience or use checklists from the industry. A checklist may guide the project manager to develop

the plan or may help to verify that all the required information is included in the project management plan.

 Focus groups. Described in Section 5.2.2.2. Focus groups bring together stakeholders to discuss the project

management approach and the integration of the different components of the project management plan.

 Interviews. Described in Section 5.2.2.2. Interviews are used to obtain speciﬁc information from stakeholders to

develop the project management plan or any component plan or project document.

86 Part 1 - Guide

4.2.2.3 INTERPERSONAL AND TEAM SKILLS

The interpersonal and team skills used when developing the project management plan include:

 Conflict management. Described in Section 9.5.2.1. Conﬂict management may be necessary to bring diverse

stakeholders into alignment on all aspects of the project management plan.

 Facilitation. Described in Section 4.1.2.3. Facilitation ensures that there is effective participation, that participants

achieve a mutual understanding, that all contributions are considered, and that conclusions or results have full

buy-in according to the decision process established for the project.

 Meeting management. Described in Section 10.2.2.6. Meeting management is necessary to ensure that the

numerous meetings that are necessary to develop, unify, and agree on the project management plan are well run.

4.2.2.4 MEETINGS

For this process, meetings are used to discuss the project approach, determine how work will be executed to

accomplish the project objectives, and establish the way the project will be monitored and controlled.

The project kick-off meeting is usually associated with the end of planning and the start of executing. Its purpose is

to communicate the objectives of the project, gain the commitment of the team for the project, and explain the roles and

responsibilities of each stakeholder. The kick-off may occur at different points in time depending on the characteristics

of the project:

 For small projects, there is usually only one team that performs the planning and the execution. In this case, the

kick-off occurs shortly after initiation, in the Planning Process Group, because the team is involved in planning.

 In large projects, a project management team normally does the majority of the planning, and the remainder of the

project team is brought on when the initial planning is complete, at the start of the development/implementation.

In this instance, the kick-off meeting takes place with processes in the Executing Process Group.

Multiphase projects will typically include a kick-off meeting at the beginning of each phase.

4.2.3 DEVELOP PROJECT MANAGEMENT PLAN: OUTPUTS

4.2.3.1 PROJECT MANAGEMENT PLAN

The project management plan is the document that describes how the project will be executed, monitored and

controlled, and closed. It integrates and consolidates all of the subsidiary management plans and baselines, and other

information necessary to manage the project. The needs of the project determine which components of the project

management plan are needed.

��

Project management plan components include but are not limited to:

 Subsidiary management plans:

 Scope management plan. Described in Section 5.1.3.1. Establishes how the scope will be deﬁned, developed,

monitored, controlled, and validated.

 Requirements management plan. Described in Section 5.1.3.2. Establishes how the requirements will be

analyzed, documented, and managed.

 Schedule management plan. Described in Section 6.1.3.1. Establishes the criteria and the activities for

developing, monitoring, and controlling the schedule.

 Cost management plan. Described in Section 7.1.3.1. Establishes how the costs will be planned, structured,

and controlled.

 Quality management plan. Described in Section 8.1.3.1. Establishes how an organization´s quality policies,

methodologies, and standards will be implemented in the project.

 Resource management plan. Described in Section 9.1.3.1 Provides guidance on how project resources should

be categorized, allocated, managed, and released.

 Communications management plan. Described in Section 10.1.3.1. Establishes how, when, and by whom

information about the project will be administered and disseminated.

 Risk management plan. Described in Section 11.1.3.1. Establishes how the risk management activities will

be structured and performed.

 Procurement management plan. Described in Section 12.1.3.1. Establishes how the project team will acquire

goods and services from outside of the performing organization.

 Stakeholder engagement plan. Described in Section 13.2.3.1. Establishes how stakeholders will be engaged

in project decisions and execution, according to their needs, interests, and impact.

 Baselines:

 Scope baseline. Described in Section 5.4.3.1. The approved version of a scope statement, work breakdown

structure (WBS), and its associated WBS dictionary, which is used as a basis for comparison.

 Schedule baseline. Described in Section 6.5.3.1. The approved version of the schedule model that is used as

a basis for comparison to the actual results.

 Cost baseline. Described in Section 7.3.3.1. The approved version of the time-phased project budget that is

used as a basis for comparison to the actual results.

88 Part 1 - Guide

 Additional components. Most components of the project management plan are produced as outputs from other

processes, though some are produced during this process. Those components developed as part of this process

will be dependent on the project; however, they often include but are not limited to:

 Change management plan. Describes how the change requests throughout the project will be formally

authorized and incorporated.

 Conﬁguration management plan. Describes how the information about the items of the project (and which

items) will be recorded and updated so that the product, service, or result of the project remains consistent

and/or operative.

 Performance measurement baseline. An integrated scope-schedule-cost plan for the project work against

which project execution is compared to measure and manage performance.

 Project life cycle. Describes the series of phases that a project passes through from its initiation to its closure.

 Development approach. Describes the product, service, or result development approach, such as predictive,

iterative, agile, or a hybrid model.

 Management reviews. Identiﬁes the points in the project when the project manager and relevant stakeholders

will review the project progress to determine if performance is as expected, or if preventive or corrective

actions are necessary.

While the project management plan is one of the primary documents used to manage the project, other project

documents are also used. These other documents are not part of the project management plan; however, they are

necessary to manage the project effectively. Table 4-1 is a representative list of the project management plan components

and project documents.

��

Table 4-1. Project Management Plan and Project Documents

1. Scope management plan

2. Requirements management plan

3. Schedule management plan

4. Cost management plan

5. Quality management plan

6. Resource management plan

7. Communications management plan

8. Risk management plan

9. Procurement management plan

10. Stakeholder engagement plan

11. Change management plan

12. Configuration management plan

13. Scope baseline

14. Schedule baseline

15. Cost baseline

16. Performance measurement baseline

17. Project life cycle description

18. Development approach

1. Activity attributes

2. Activity list

3. Assumption log

4. Basis of estimates

5. Change log

6. Cost estimates

7. Cost forecasts

8. Duration estimates

9. Issue log

10. Lessons learned register

11. Milestone list

12. Physical resource assignments

13. Project calendars

14. Project communications

15. Project schedule

16. Project schedule network diagram

17. Project scope statement

18. Project team assignments

19. Quality control measurements

20. Quality metrics

21. Quality report

22. Requirements documentation

23. Requirements traceability matrix

24. Resource breakdown structure

25. Resource calendars

26. Resource requirements

27. Risk register

28. Risk report

29. Schedule data

30. Schedule forecasts

31. Stakeholder register

32. Team charter

33. Test and evaluation documents

Project DocumentsProject Management Plan

90 Part 1 - Guide

4.3 DIRECT AND MANAGE PROJECT WORK

Direct and Manage Project Work is the process of leading and performing the work deﬁned in the project management

plan and implementing approved changes to achieve the project’s objectives. The key beneﬁt of this process is that it

provides overall management of the project work and deliverables, thus improving the probability of project success.

This process is performed throughout the project. The inputs, tools and techniques, and outputs of the process are

depicted in Figure 4-6. Figure 4-7 depicts the data ﬂow diagram for the process.

Figure 4-6. Direct and Manage Project Work: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

Direct and Manage Project Work

.1 Expert judgment

.2 Project management

information system

.3 Meetings

.1 Project management plan

• Any component

.2 Project documents

• Change log

• Lessons learned register

• Milestone list

• Project communications

• Project schedule

• Requirements traceability

matrix

• Risk register

• Risk report

.3 Approved change requests

.4 Enterprise environmental

factors

.5 Organizational process assets

.1 Deliverables

.2 Work performance data

.3 Issue log

.4 Change requests

.5 Project management plan

updates

• Any component

.6 Project documents updates

• Activity list

• Assumption log

• Lessons learned register

• Requirements

documentation

• Risk register

• Stakeholder register

.7 Organizational process assets

updates

��

• Enterprise environmental factors

• Organizational process assets

• Approved change requests

• Work performance data

Project management plan updates

• Any component

• Issue log

• Deliverables

• Change requests

• Deliverables

• Organizational process

assets updates

Project documents

• Change log

• Lessons learned register

• Milestone list

• Project communications

• Project schedule

• Requirements traceability

matrix

• Risk register

• Risk report

Project management plan

• Any component

Project

Management

Plan

4.4

Manage Project

Knowledge

4.6

Perform Integrated

Change Control

8.3

Control

Quality

4.3

Direct and

Manage

Project Work

Project

Documents

4.6

Perform

Integrated

Change Control

Enterprise/

Organization 13.4

Monitor

Stakeholder

Engagementt

12.3

Control

Procurements

11.7

Monitor

Risks

10.3

Monitor

Communications

9.6

Control

Resources

8.3

Control

Quality

7.4

Control

Costs

6.6

Control

Scehdule

5.6

Control

Scope

5.5.

Validate

Scope

Enterprise/

Organization

Project

Documents

Project

Management

Plan

Project documents updates

• Activity list

• Assumption log

• Lessons learned register

• Requirements documentation

• Risk register

• Stakeholder register

Figure 4-7. Direct and Manage Project Work: Data Flow Diagram

92 Part 1 - Guide

Direct and Manage Project Work involves executing the planned project activities to complete project deliverables

and accomplish established objectives. Available resources are allocated, their efﬁcient use is managed, and changes in

project plans stemming from analyzing work performance data and information are carried out. The Direct and Manage

Project Work process is directly affected by the project application area. Deliverables are produced as outputs from

processes performed to accomplish the project work as planned and scheduled in the project management plan.

The project manager, along with the project management team, directs the performance of the planned project

activities and manages the various technical and organizational interfaces that exist in the project. Direct and Manage

Project Work also requires review of the impact of all project changes and the implementation of approved changes:

corrective action, preventive action, and/or defect repair.

During project execution, the work performance data is collected and communicated to the applicable controlling

processes for analysis. Work performance data analysis provides information about the completion status of deliverables

and other relevant details about project performance. The work performance data will also be used as an input to the

Monitoring and Controlling Process Group, and can be used as feedback into lessons learned to improve the performance

of future work packages.

4.3.1 DIRECT AND MANAGE PROJECT WORK: INPUTS

4.3.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Any component of the project management plan may be an input to this process.

4.3.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Change log. Described in Section 4.6.3.3. The change log contains the status of all change requests.

 Lessons learned register. Described in Section 4.4.3.1. Lessons learned are used to improve the performance

of the project and to avoid repeating mistakes. The register helps identify where to set rules or guidelines so the

team’s actions are aligned.

 Milestone list. Described in Section 6.2.3.3. The milestone list shows the scheduled dates for speciﬁc milestones.

 Project communications. Described in Section 10.2.3.1. Project communications include performance reports,

deliverable status, and other information generated by the project.

��

 Project schedule. Described in Section 6.5.3.2. The schedule includes at least the list of work activities, their

durations, resources, and planned start and ﬁnish dates.

 Requirements traceability matrix. Described in Section 5.2.3.2. The requirements traceability matrix links

product requirements to the deliverables that satisfy them and helps to focus on the ﬁnal outcomes.

 Risk register. Described in Section 11.2.3.1. The risk register provides information on threats and opportunities

that may impact project execution.

 Risk report. Described in Section 11.2.3.2. The risk report provides information on sources of overall project risk

along with summary information on identiﬁed individual project risks.

4.3.1.3 APPROVED CHANGE REQUESTS

Described in Section 4.6.3.1. Approved change requests are an output of the Perform Integrated Change Control

process, and include those requests reviewed and approved for implementation by the project manager or by the

change control board (CCB) when applicable. The approved change request may be a corrective action, a preventive

action, or a defect repair. Approved change requests are scheduled and implemented by the project team and can

impact any area of the project or project management plan. The approved change requests can also modify the formally

controlled project management plan components or project documents.

4.3.1.4 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Direct and Manage Project Work process include but are

not limited to:

 Organizational structure, culture, management practices, and sustainability;

 Infrastructure (e.g., existing facilities and capital equipment); and

 Stakeholder risk thresholds (e.g., allowable cost overrun percentage).

94 Part 1 - Guide

4.3.1.5 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Direct and Manage Project Work process include but are

not limited to:

 Organizational standard policies, processes, and procedures;

 Issue and defect management procedures deﬁning issue and defect controls, issue and defect identiﬁcation and

resolution, and action item tracking;

 Issue and defect management database(s) containing historical issue and defect status, issue and defect

resolution, and action item results;

 Performance measurement database used to collect and make available measurement data on processes and

products;

 Change control and risk control procedures; and

 Project information from previous projects (e.g., scope, cost, schedule, performance measurement baselines,

project calendars, project schedule network diagrams, risk registers, risk reports, and lessons learned repository).

4.3.2 DIRECT AND MANAGE PROJECT WORK: TOOLS AND TECHNIQUES

4.3.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge

or training in the following topics:

 Technical knowledge on the industry and focus area of the project,

 Cost and budget management,

 Legal and procurement,

 Legislation and regulations, and

 Organizational governance.

4.3.2.2 PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS)

The PMIS provides access to information technology (IT) software tools, such as scheduling software tools, work

authorization systems, conﬁguration management systems, information collection and distribution systems, as well as

interfaces to other online automated systems such as corporate knowledge base repositories. Automated gathering and

reporting on key performance indicators (KPI) can be part of this system.

4.3.2.3 MEETINGS

Meetings are used to discuss and address pertinent topics of the project when directing and managing project work.

Attendees may include the project manager, the project team, and appropriate stakeholders involved or affected by

the topics addressed. Each attendee should have a deﬁned role to ensure appropriate participation. Types of meetings

include but are not limited to: kick-off, technical, sprint or iteration planning, Scrum daily standups, steering group,

problem solving, progress update, and retrospective meetings.

4.3.3 DIRECT AND MANAGE PROJECT WORK: OUTPUTS

4.3.3.1 DELIVERABLES

A deliverable is any unique and veriﬁable product, result, or capability to perform a service that is required to be

produced to complete a process, phase, or project. Deliverables are typically the outcomes of the project and can include

components of the project management plan.

Change control should be applied once the ﬁrst version of a deliverable has been completed. The control of the multiple

versions or editions of a deliverable (e.g., documents, software, and building blocks) is supported by conﬁguration

management tools and procedures.

4.3.3.2 WORK PERFORMANCE DATA

Work performance data are the raw observations and measurements identiﬁed during activities being performed

to carry out the project work. Data are often viewed as the lowest level of detail from which information is derived by

other processes. Data is gathered through work execution and passed to the controlling processes for further analysis.

Examples of work performance data include work completed, key performance indicators (KPIs), technical performance

measures, actual start and ﬁnish dates of schedule activities, story points completed, deliverables status, schedule

progress, number of change requests, number of defects, actual costs incurred, actual durations, etc.

96 Part 1 - Guide

4.3.3.3 ISSUE LOG

Throughout the life cycle of a project, the project manager will normally face problems, gaps, inconsistencies, or

conﬂicts that occur unexpectedly and that require some action so they do not impact the project performance. The issue

log is a project document where all the issues are recorded and tracked. Data on issues may include:

 Issue type,

 Who raised the issue and when,

 Description,

 Priority,

 Who is assigned to the issue,

 Target resolution date,

 Status, and

 Final solution.

The issue log will help the project manager effectively track and manage issues, ensuring that they are investigated

and resolved. The issue log is created for the ﬁrst time as an output of this process, although issues may happen at

any time during the project. The issue log is updated as a result of the monitoring and control activities throughout the

project’s life cycle.

4.3.3.4 CHANGE REQUESTS

A change request is a formal proposal to modify any document, deliverable, or baseline. When issues are found while

project work is being performed, change requests can be submitted, which may modify project policies or procedures,

project or product scope, project cost or budget, project schedule, or quality of the project or product results. Other

change requests cover the needed preventive or corrective actions to forestall negative impact later in the project.

Any project stakeholder may request a change. Change requests are processed for review and disposition through the

Perform Integrated Change Control process (Section 4.6). Change requests can be initiated from inside or outside the

project and they can be optional or legally/contractually mandated. Change requests may include:

 Corrective action. An intentional activity that realigns the performance of the project work with the project

management plan.

 Preventive action. An intentional activity that ensures the future performance of the project work is aligned with

the project management plan.

 Defect repair. An intentional activity to modify a nonconforming product or product component.

 Updates. Changes to formally controlled project documents, plans, etc., to reﬂect modiﬁed or additional ideas

or content.

4.3.3.5 PROJECT MANAGEMENT PLAN UPDATES

Any change to the project management plan goes through the organization’s change control process via a change

request. Any component of the project management plan may require a change request as a result of this process.

4.3.3.6 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Activity list. Described in Section 6.2.3.1. The activity list may be updated with additional or modiﬁed activities

to be performed to complete project work.

 Assumption log. Described in Section 4.1.3.2. New assumptions and constraints may be added, and the status

of existing assumptions and constraints may be updated or closed out.

 Lessons learned register. Described in Section 4.4.3.1. Any lessons learned that will improve performance for

current or future projects is recorded as it is learned.

 Requirements documentation. Described in Section 5.2.3.1. New requirements may be identiﬁed during this

process. Progress on meeting requirements can also be updated.

 Risk register. Described in Section 11.2.3.1. New risks may be identiﬁed and existing risks may be updated

during this process. Risks are recorded in the risk register via risk management processes.

 Stakeholder register. Described in Section 13.1.3.1. Where additional information on existing or new stakeholders

is gathered as a result of this process, it is recorded in the stakeholder register.

4.3.3.7 ORGANIZATIONAL PROCESS ASSETS UPDATES

Any organizational process asset can be updated as a result of this process.

98 Part 1 - Guide

4.4 MANAGE PROJECT KNOWLEDGE

Manage Project Knowledge is the process of using existing knowledge and creating new knowledge to achieve the

project’s objectives and contribute to organizational learning. The key beneﬁts of this process are that prior organizational

knowledge is leveraged to produce or improve the project outcomes, and knowledge created by the project is available

to support organizational operations and future projects or phases. This process is performed throughout the project.

The inputs, tools and techniques, and outputs of the process are depicted in Figure 4-8. Figure 4-9 depicts the data ﬂow

diagram for the process.

Figure 4-8. Manage Project Knowledge: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

Manage Project Knowledge

.1 Expert judgment

.2 Knowledge management

.3 Information management

.4 Interpersonal and team skills

• Active listening

• Facilitation

• Leadership

• Networking

• Political awareness

.1 Project management plan

• All components

.2 Project documents

• Lessons learned register

• Project team assignments

• Resource breakdown

structure

• Source selection criteria

• Stakeholder register

.3 Deliverables

.4 Enterprise environmental

factors

.5 Organizational process assets

.1 Lessons learned register

.2 Project management plan

updates

• Any component

.3 Organizational process assets

updates

��

• Project

charter

4.4

Manage

Project

Knowledge

Enterprise/

Organization

4.3

Direct and

Manage

Project Work

• Organizational process

assets updates

• Lessons learned

• Deliverables

Project management

plan updates

• Any component

Project management plan

• All components

Project documents

• Lessons learned register

• Project team assignments

• Resource breakdown structure

• Source selection criteria

• Stakeholder register

• Enterprise environmental factors

• Organizational process assets

Project

Management

Plan

Project

Management

Plan

Project

Documents

Enterprise/

Organization

Project

Documents

Figure 4-9. Manage Project Knowledge: Data Flow Diagram

100 Part 1 - Guide

Knowledge is commonly split into “explicit” (knowledge that can be readily codiﬁed using words, pictures, and

numbers) and “tacit” (knowledge that is personal and difﬁcult to express, such as beliefs, insights, experience,

and “know-how”). Knowledge management is concerned with managing both tacit and explicit knowledge for two

purposes: reusing existing knowledge and creating new knowledge. The key activities that underpin both purposes are

knowledge sharing and knowledge integration (of knowledge from different domains, contextual knowledge, and project

management knowledge).

It is a common misconception that managing knowledge involves just documenting it so it can be shared. Another

common misconception is that managing knowledge involves just obtaining lessons learned at the end of the project,

in order to use it in the future projects. Only codiﬁed explicit knowledge can be shared in this way. But codiﬁed explicit

knowledge lacks context and is open to different interpretations, so even though it can easily be shared, it isn’t always

understood or applied in the right way. Tacit knowledge has context built in but is very difﬁcult to codify. It resides in

the minds of individual experts or in social groups and situations, and is normally shared through conversations and

interactions between people.

From an organizational perspective, knowledge management is about making sure the skills, experience, and expertise

of the project team and other stakeholders are used before, during, and after the project. Because knowledge resides in

the minds of people and people cannot be forced to share what they know (or to pay attention to others’ knowledge), the

most important part of knowledge management is creating an atmosphere of trust so that people are motivated to share

their knowledge. Even the best knowledge management tools and techniques will not work if people are not motivated

to share what they know or to pay attention to what others know. In practice, knowledge is shared using a mixture of

knowledge management tools and techniques (interactions between people) and information management tools and

techniques (in which people codify part of their explicit knowledge by documenting it so it can be shared).

4.4.1 MANAGE PROJECT KNOWLEDGE: INPUTS

4.4.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. All components of the project management plan are inputs.

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101

4.4.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Lessons learned register. Described in Section 4.4.3.1. The lessons learned register provides information on

effective practices in knowledge management.

 Project team assignments. Described in Section 9.3.3.1. Project team assignments provide information on the

type of competencies and experience available in the project and the knowledge that may be missing.

 Resource breakdown structure. Described in Section 9.2.3.3. The resource breakdown structure includes

information on the composition of the team and may help to understand what knowledge is available as a group

and what knowledge is missing.

 Stakeholder register. Described in Section 13.1.3.1. The stakeholder register contains details about the identiﬁed

stakeholders to help understand the knowledge they may have.

4.4.1.3 DELIVERABLES

A deliverable is any unique and veriﬁable product, result, or capability to perform a service that is required to be

produced to complete a process, phase, or project. Deliverables are typically tangible components completed to meet

the project objectives and can include components of the project management plan.

4.4.1.4 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Manage Project Knowledge process include but are not

limited to:

 Organizational, stakeholder, and customer culture. The existence of trusting working relationships and a

no-blame culture is particularly important in managing knowledge. Other factors include the value placed on

learning and social behavioral norms.

 Geographic distribution of facilities and resources. The location of team members helps determine methods

for gaining and sharing knowledge.

 Organizational knowledge experts. Some organizations have a team or individual that specializes in knowledge

management.

 Legal and regulatory requirements and/or constraints. These include conﬁdentiality of project information.

102 Part 1 - Guide

4.4.1.5 ORGANIZATIONAL PROCESS ASSETS

Knowledge about project management is often embedded in processes and routines. The organizational process

assets that can inﬂuence the Manage Project Knowledge process include but are not limited to:

 Organizational standard policies, processes, and procedures. These may include: conﬁdentiality and access

to information; security and data protection; record retention policies; use of copyrighted information; destruction

of classiﬁed information; format and maximum size of ﬁles; registry data and metadata; authorized technology

and social media; etc.

 Personnel administration. These include, for example, employee development and training records, and

competency frameworks that refer to knowledge-sharing behaviors.

 Organizational communication requirements. Formal, rigid communication requirements are good for sharing

information. Informal communication is more effective for creating new knowledge and integrating knowledge

across diverse stakeholder groups.

 Formal knowledge-sharing and information-sharing procedures. These include learning reviews before,

during, and after projects and project phases; for example, identifying, capturing, and sharing lessons learned

from the current project and other projects.

4.4.2 MANAGE PROJECT KNOWLEDGE: TOOLS AND TECHNIQUES

4.4.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge

or training in the following topics:

 Knowledge management,

 Information management,

 Organizational learning,

 Knowledge and information management tools, and

 Relevant information from other projects.

4.4.2.2 KNOWLEDGE MANAGEMENT

Knowledge management tools and techniques connect people so they can work together to create new knowledge,

share tacit knowledge, and integrate the knowledge of diverse team members. The tools and techniques appropriate in

a project depend on the nature of the project, especially the degree of innovation involved, the project complexity, and

the level of diversity (including diversity of disciplines) among team members.

103

Tools and techniques include but are not limited to:

 Networking, including informal social interaction and online social networking. Online forums where people

can ask open questions (“What does anyone know about…?”) are useful for starting knowledge-sharing

conversations with specialists;

 Communities of practice (sometimes called communities of interest or just communities) and special

interest groups;

 Meetings, including virtual meetings where participants can interact using communications technology;

 Work shadowing and reverse shadowing;

 Discussion forums such as focus groups;

 Knowledge-sharing events such as seminars and conferences;

 Workshops, including problem-solving sessions and learning reviews designed to identify lessons learned;

 Storytelling;

 Creativity and ideas management techniques;

 Knowledge fairs and cafés; and

 Training that involves interaction between learners.

All of these tools and techniques can be applied face-to-face or virtually, or both. Face-to-face interaction is usually

the most effective way to build the trusting relationships that are needed to manage knowledge. Once relationships are

established, virtual interaction can be used to maintain the relationship.

4.4.2.3 INFORMATION MANAGEMENT

Information management tools and techniques are used to create and connect people to information. They are

effective for sharing simple, unambiguous, codiﬁed explicit knowledge. They include but are not limited to:

 Methods for codifying explicit knowledge; for example, for producing lessons to be learned entries for the lessons

learned register;

 Lessons learned register;

 Library services;

 Information gathering, for example, web searches and reading published articles; and

 Project management information system (PMIS). Described in Section 4.3.2.2. Project management information

systems often include document management systems.

Tools and techniques that connect people to information can be enhanced by adding an element of interaction, for

example, include a “contact me” function so users can get in touch with the originators of the lessons and ask for advice

speciﬁc to their project and context.

104 Part 1 - Guide

Interaction and support also helps people ﬁnd relevant information. Asking for help is generally quicker and easier

than trying to identify search terms. Search terms are often difﬁcult to select because people may not know which

keywords or key phrases to use to access the information they need.

Knowledge and information management tools and techniques should be connected to project processes and process

owners. Communities of practice and subject matter experts (SMEs), for example, may generate insights that lead

to improved control processes; having an internal sponsor can ensure improvements are implemented. Lessons learned

4.4.2.4 INTERPERSONAL AND TEAM SKILLS

The interpersonal and team skills used include but are not limited to:

 Active listening. Described in Section 10.2.2.6. Active listening helps reduce misunderstandings and improves

communication and knowledge sharing.

 Facilitation. Described in Section 4.1.2.3. Facilitation helps effectively guide a group to a successful decision,

solution, or conclusion.

 Leadership. Described in Section 3.4.4. Leadership is used to communicate the vision and inspire the project

team to focus on the appropriate knowledge and knowledge objectives.

 Networking. Described in Section 10.2.2.6. Networking allows informal connections and relations among project

stakeholders to be established and creates the conditions to share tacit and explicit knowledge.

 Political awareness. Described in Section 10.1.2.6. Political awareness helps the project manager to plan

communications based on the project environment as well as the organization’s political environment.

4.4.3 MANAGE PROJECT KNOWLEDGE: OUTPUTS

4.4.3.1 LESSONS LEARNED REGISTER

The lessons learned register can include the category and description of the situation. The lessons learned register

may also include the impact, recommendations, and proposed actions associated with the situation. The lessons learned

The lessons learned register is created as an output of this process early in the project. Thereafter it is used as an

input and updated as an output in many processes throughout the project. The persons or teams involved in the work are

also involved in capturing the lessons learned. Knowledge can be documented using videos, pictures, audios, or other

suitable means that ensure the efﬁciency of the lessons captured.

At the end of a project or phase, the information is transferred to an organizational process asset called a lessons

learned repository.

105

4.4.3.2 PROJECT MANAGEMENT PLAN UPDATES

Any change to the project management plan goes through the organization’s change control process via a change

request. Any component of the project management plan may be updated as a result of this process.

4.4.3.3 ORGANIZATIONAL PROCESS ASSETS UPDATES

All projects create new knowledge. Some of this knowledge is codiﬁed, embedded in deliverables, or embedded in

improvements to processes and procedures as a result of the Manage Project Knowledge process. Existing knowledge

can also be codiﬁed or embedded for the ﬁrst time as a result of this process; for example, if an existing idea for a new

procedure is piloted in the project and found to be successful.

Any organizational process asset can be updated as a result of this process.

4.5 MONITOR AND CONTROL PROJECT WORK

Monitor and Control Project Work is the process of tracking, reviewing, and reporting the overall progress to meet

the performance objectives deﬁned in the project management plan. The key beneﬁts of this process are that it allows

stakeholders to understand the current state of the project, to recognize the actions taken to address any performance

issues, and to have visibility into the future project status with cost and schedule forecasts. This process is performed

throughout the project. The inputs, tools and techniques, and outputs of the process are depicted in Figure 4-10. Figure

4-11 depicts the data ﬂow diagram for the process.

Figure 4-10. Monitor and Control Project Work: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

Monitor and Control Project Work

.1 Expert judgment

.2 Data analysis

• Alternatives analysis

• Cost-benefit analysis

• Earned value analysis

• Root cause analysis

• Trend analysis

• Variance analysis

.3 Decision making

.4 Meetings

.1 Project management plan

• Any component

.2 Project documents

• Assumption log

• Basis of estimates

• Cost forecasts

• Issue log

• Lessons learned register

• Milestone list

• Quality reports

• Risk register

• Risk report

• Schedule forecasts

.3 Work performance information

.4 Agreements

.5 Enterprise environmental

factors

.6 Organizational process assets

.1 Work performance reports

.2 Change requests

.3 Project management plan

updates

• Any component

.4 Project documents updates

• Cost forecasts

• Issue log

• Lessons learned register

• Risk register

• Schedule forecasts

106 Part 1 - Guide

11.7

Monitor

Risks

10.2

Manage

Communications

9.5

Manage

Team

4.6

Perform

Integrated

Change Control

5.6.

Control

Scope

5.5

Validate

Scope

9.6

Control

Resources

8.3

Control

Quality

7.4

Control

Costs

6.6

Control

Schedule

13.4

Monitor

Stakeholder

Engagement

12.3

Control

Procurements

11.7

Monitor

Risks

10.3

Monitor

Communications

• Project

charter

12.2

Conduct

Procurements

Project

Management

Plan

Project

Documents

Project

Documents

4.5

Monitor and

Control

Project Work

• Agreements

• Change requests

• Work performance reports

• Work performance information

• Work performance reports

Project documents updates

• Cost forecasts

• Issue log

• Lessons learned register

• Risk register

• Schedule forecasts

Project management

plan updates

• Any component

Project management plan

• Any component

Project documents

• Assumption log

• Basis of estimates

• Cost forecasts

• Issue log

• Lessons learned register

• Milestone list

• Quality reports

• Risk register

• Risk report

• Schedule forecasts

Project

Management

Plan

• Enterprise environmental factors

• Organizational process assets

Enterprise/

Organization

Figure 4-11. Monitor and Control Project Work: Data Flow Diagram

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107

Monitoring is an aspect of project management performed throughout the project. Monitoring includes collecting,

measuring, and assessing measurements and trends to effect process improvements. Continuous monitoring gives

the project management team insight into the health of the project and identiﬁes any areas that may require special

attention. Control includes determining corrective or preventive actions or replanning and following up on action plans

to determine whether the actions taken resolved the performance issue. The Monitor and Control Project Work process

is concerned with:

 Comparing actual project performance against the project management plan;

 Assessing performance periodically to determine whether any corrective or preventive actions are indicated, and

then recommending those actions as necessary;

 Checking the status of individual project risks;

 Maintaining an accurate, timely information base concerning the project’s product(s) and their associated

documentation through project completion;

 Providing information to support status reporting, progress measurement, and forecasting;

 Providing forecasts to update current cost and current schedule information;

 Monitoring implementation of approved changes as they occur;

 Providing appropriate reporting on project progress and status to program management when the project is part

of an overall program; and

 Ensuring that the project stays aligned with the business needs.

4.5.1 MONITOR AND CONTROL PROJECT WORK: INPUTS

4.5.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Monitoring and controlling project work involves looking at all aspects of the project.

Any component of the project management plan may be an input for this process.

108 Part 1 - Guide

4.5.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Assumption log. Described in Section 4.1.3.2. The assumption log contains information about assumptions and

constraints identiﬁed as affecting the project.

 Basis of estimates. Described in Sections 6.4.3.2 and 7.2.3.2. Basis of estimates indicates how the various

estimates were derived and can be used to make a decision on how to respond to variances.

 Cost forecasts. Described in Section 7.4.3.2. Based on the project’s past performance, the cost forecasts are

used to determine if the project is within deﬁned tolerance ranges for budget and to identify any necessary

change requests.

 Issue log. Described in Section 4.3.3.3. The issue log is used to document and monitor who is responsible for

resolving speciﬁc issues by a target date.

 Lessons learned register. Described in Section 4.4.3.1. The lessons learned register may have information on

effective responses for variances, and corrective and preventive actions.

 Milestone list. Described in Section 6.2.3.3. The milestone list shows the scheduled dates for speciﬁc milestones

and is used to check if the planned milestones have been met.

 Quality reports. Described in Section 8.2.3.1. The quality report includes quality management issues;

recommendations for process, project, and product improvements; corrective actions recommendations

(includes rework, defect/bugs repair, 100% inspection, and more); and the summary of ﬁndings from the

Control Quality process.

 Risk register. Described in Section 11.2.3.1. The risk register provides information on threats and opportunities

that have occurred during project execution.

 Risk report. Described in Section 11.2.3.2. The risk report provides information on the overall project risks as

well as information on speciﬁed individual risks.

 Schedule forecasts. Described in Section 6.6.3.2. Based on the project’s past performance, the schedule

forecasts are used to determine if the project is within deﬁned tolerance ranges for schedule and to identify any

necessary change requests.

109

4.5.1.3 WORK PERFORMANCE INFORMATION

Work performance data is gathered through work execution and passed to the controlling processes. To become work

performance information, the work performance data are compared with the project management plan components,

project documents, and other project variables. This comparison indicates how the project is performing.

Speciﬁc work performance metrics for scope, schedule, budget, and quality are deﬁned at the start of the project

as part of the project management plan. Performance data are collected during the project through the controlling

processes and compared to the plan and other variables to provide a context for work performance.

For example, work performance data on cost may include funds that have been expended. However, to be useful, that

data has to be compared to the budget, the work that was performed, the resources used to accomplish the work, and

the funding schedule. This additional information provides the context to determine if the project is on budget or if there

is a variance. It also indicates the degree of variance from the plan, and by comparing it to the variance thresholds in

the project management plan it can indicate if preventive or corrective action is required. Interpreting work performance

data and the additional information as a whole provides a context that provides a sound foundation for project decisions.

4.5.1.4 AGREEMENTS

Described in Section 12.2.3.2. A procurement agreement includes terms and conditions, and may incorporate other

items that the buyer speciﬁes regarding what the seller is to perform or provide. If the project is outsourcing part of the

work, the project manager needs to oversee the contractor’s work to make certain that all the agreements meet the

speciﬁc needs of the project while adhering to organizational procurement policies.

4.5.1.5 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Monitor and Control Project Work process include but are

not limited to:

 Project management information systems such as scheduling, cost, resourcing tools, performance indicators,

databases, project records, and ﬁnancials;

 Infrastructure (e.g., existing facilities and equipment, organization´s telecommunications channels);

 Stakeholders’ expectations and risk thresholds; and

 Government or industry standards (e.g., regulatory agency regulations, product standards, quality standards, and

workmanship standards).

110 Part 1 - Guide

4.5.1.6 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Monitor and Control Project Work process include but are

not limited to:

 Organizational standard policies, processes, and procedures;

 Financial controls procedures (e.g., required expenditure and disbursement reviews, accounting codes, and

standard contract provisions);

 Monitoring and reporting methods;

 Issue management procedures deﬁning issue controls, issue identiﬁcation, and resolution and action item tracking;

 Defect management procedures deﬁning defect controls, defect identiﬁcation, and resolution and action item

tracking; and

 Organizational knowledge base, in particular process measurement and the lessons learned repository.

4.5.2 MONITOR AND CONTROL PROJECT WORK: TOOLS AND TECHNIQUES

4.5.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge

or training in the following topics:

 Earned value analysis,

 Interpretation and contextualization of data,

 Techniques to estimate duration and costs,

 Trend analysis,

 Technical knowledge on the industry and focus area of the project,

 Risk management, and

 Contract management.

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111

4.5.2.2 DATA ANALYSIS

Data analysis techniques that can be used include but are not limited to:

 Alternatives analysis. Alternatives analysis is used to select the corrective actions or a combination of corrective

and preventive actions to implement when a deviation occurs.

 Cost-benefit analysis. Described in Section 8.1.2.3. Cost-beneﬁt analysis helps to determine the best corrective

action in terms of cost in case of project deviations.

 Earned value analysis. Described in Section 7.4.2.2. Earned value provides an integrated perspective on scope,

schedule, and cost performance.

 Root cause analysis. Described in Section 8.2.2.2. Root cause analysis focuses on identifying the main reasons

of a problem. It can be used to identify the reasons for a deviation and the areas the project manager should focus

on in order to achieve the objectives of the project.

 Trend analysis. Trend analysis is used to forecast future performance based on past results. It looks ahead in the

project for expected slippages and warns the project manager ahead of time that there may be problems later in

the schedule if established trends persist. This information is made available early enough in the project timeline

to give the project team time to analyze and correct any anomalies. The results of trend analysis can be used to

recommend preventive actions if necessary.

 Variance analysis. Variance analysis reviews the differences (or variance) between planned and actual

performance. This can include duration estimates, cost estimates, resources utilization, resources rates, technical

performance, and other metrics.

Variance analysis may be conducted in each Knowledge Area based on its particular variables. In Monitor and

Control Project Work, the variance analysis reviews the variances from an integrated perspective considering

cost, time, technical, and resource variances in relation to each other to get an overall view of variance on the

project. This allows for the appropriate preventive or corrective actions to be initiated.

4.5.2.3 DECISION MAKING

A decision-making technique that can be used includes but is not limited to voting. Described in Section 5.2.2.4.

Voting can include making decisions based on unanimity, majority, or plurality.

4.5.2.4 MEETINGS

Meetings may be face-to-face, virtual, formal, or informal. They may include project team members and other project

stakeholders when appropriate. Types of meetings include but are not limited to user groups and review meetings.

112 Part 1 - Guide

4.5.3 MONITOR AND CONTROL PROJECT WORK: OUTPUTS

4.5.3.1 WORK PERFORMANCE REPORTS

Work performance information is combined, recorded, and distributed in a physical or electronic form in order to create

awareness and generate decisions or actions. Work performance reports are the physical or electronic representation of

work performance information intended to generate decisions, actions, or awareness. They are circulated to the project

stakeholders through the communication processes as deﬁned in the project communications management plan.

Examples of work performance reports include status reports and progress reports. Work performance reports can

contain earned value graphs and information, trend lines and forecasts, reserve burndown charts, defect histograms,

contract performance information, and risk summaries. They can be presented as dashboards, heat reports, stop light

charts, or other representations useful for creating awareness and generating decisions and actions.

4.5.3.2 CHANGE REQUESTS

Described in Section 4.3.3.4. As a result of comparing planned results to actual results, change requests may

be issued to expand, adjust, or reduce project scope, product scope, or quality requirements and schedule or cost

baselines. Change requests may necessitate the collection and documentation of new requirements. Changes can

impact the project management plan, project documents, or product deliverables. Change requests are processed for

review and disposition through the Perform Integrated Change Control process (Section 4.6). Changes may include but

are not limited to:

 Corrective action. An intentional activity that realigns the performance of the project work with the project

management plan.

 Preventive action. An intentional activity that ensures the future performance of the project work is aligned with

the project management plan.

 Defect repair. An intentional activity that modiﬁes a nonconforming product or product component.

4.5.3.3 PROJECT MANAGEMENT PLAN UPDATES

Any change to the project management plan goes through the organization’s change control process via a change

request. Changes identiﬁed during the Monitor and Control Project Work process may affect the overall project

management plan.

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113

4.5.3.4 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Cost forecasts. Described in Section 7.4.3.2. Changes in cost forecasts resulting from this process are recorded

using cost management processes.

 Issue log. Described in Section 4.3.3.3. New issues raised as a result of this process are recorded in the

issue log.

 Lessons learned register. Described in Section 4.4.3.1. The lessons learned register is updated with effective

responses for variances and corrective and preventive actions.

 Risk register. Described in Section 11.2.3.1. New risks identiﬁed during this process are recorded in the risk

 Schedule forecasts. Described in Section 6.6.3.2. Changes in schedule forecasts resulting from this process are

recorded using schedule management processes.

4.6 PERFORM INTEGRATED CHANGE CONTROL

Perform Integrated Change Control is the process of reviewing all change requests; approving changes and managing

changes to deliverables, project documents, and the project management plan; and communicating the decisions.

This process reviews all requests for changes to project documents, deliverables, or the project management plan

and determines the resolution of the change requests. The key beneﬁt of this process is that it allows for documented

changes within the project to be considered in an integrated manner while addressing overall project risk, which often

arises from changes made without consideration of the overall project objectives or plans. This process is performed

throughout the project. The inputs, tools and techniques, and outputs of the process are depicted in Figure 4-12. Figure

4-13 depicts the data ﬂow diagram for the process.

Figure 4-12. Perform Integrated Change Control: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

Perform Integrated Change Control

.1 Expert judgment

.2 Change control tools

.3 Data analysis

• Alternatives analysis

• Cost-benefit analysis

.4 Decision making

• Voting

• Autocratic decision making

• Multicriteria decision

analysis

.5 Meetings

.1 Project management plan

• Change management plan

• Configuration management

plan

• Scope baseline

• Schedule baseline

• Cost baseline

.2 Project documents

• Basis of estimates

• Requirements traceability

matrix

• Risk report

.3 Work performance reports

.4 Change requests

.5 Enterprise environmental

factors

.6 Organizational process assets

.1 Approved change requests

.2 Project management plan

updates

• Any component

.3 Project documents updates

• Change log

114 Part 1 - Guide

12.3

Control

Procurements

8.3

Control

Quality

4.3

Direct and

Manage

Project Work

13.4

Monitor

Stakeholder

Engagement

12.1

Plan Procurement

Management

10.3

Monitor

Communications

9.3

Acquire

Resources

4.3

Direct and

Manage

Project Work

12.2

Conduct

Procurements

11.5

Plan Risk

Responses

9.4

Develop

Team

5.5

Validate

Scope

12.3

Control

Procurements

11.6

Implement Risk

Responses

9.5

Manage

Team

5.6.

Control

Scope

13.1

Identify

Stakeholders

11.7

Monitor

Risks

9.6

Control

Resources

6.6

Control

Schedule

13.3

Manage

Stakeholder

Engagement

8.3

Control

Quality

8.2

Manage

Quality

7.4.

Control

Costs

• Project

charter

4.5

Monitor and

Control

Project Work

Project

Management

Plan

Project

Documents

Project

Documents

4.6

Perform

Integrated

Change Control

• Work performance reports

• Change requests

• Approved change requests

• Change requests

• Approved change requests

Project documents updates

• Change log

Project management

plan updates

• Any component

Project management plan

• Change management plan

• Configuration management plan

• Scope baseline

• Schedule baseline

• Cost baseline

Project documents

• Basis of estimates·

• Requirements traceability matrix

• Risk report

Project

Management

Plan

Enterprise/

Organization

• Enterprise

environmental

factors

• Organizational

process assets

Figure 4-13. Perform Integrated Change Control: Data Flow Diagram

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The Perform Integrated Change Control process is conducted from project start through completion and is the

ultimate responsibility of the project manager. Change requests can impact the project scope and the product scope,

as well as any project management plan component or any project document. Changes may be requested by any

stakeholder involved with the project and may occur at any time throughout the project life cycle. The applied level

of change control is dependent upon the application area, complexity of the speciﬁc project, contract requirements,

and the context and environment in which the project is performed.

Before the baselines are established, changes are not required to be formally controlled by the Perform Integrated

Change Control process. Once the project is baselined, change requests go through this process. As a general rule, each

project’s conﬁguration management plan should deﬁne which project artifacts need to be placed under conﬁguration

control. Any change in a conﬁguration element should be formally controlled and will require a change request.

Although changes may be initiated verbally, they should be recorded in written form and entered into the change

management and/or conﬁguration management system. Change requests may require information on estimated

schedule impacts and estimated cost impacts prior to approval. Whenever a change request may impact any of the

project baselines, a formal integrated change control process is always required. Every documented change request

needs to be either approved, deferred, or rejected by a responsible individual, usually the project sponsor or project

manager. The responsible individual will be identiﬁed in the project management plan or by organizational procedures.

When required, the Perform Integrated Change Control process includes a change control board (CCB), which is a

formally chartered group responsible for reviewing, evaluating, approving, deferring, or rejecting changes to the project

and for recording and communicating such decisions.

Approved change requests can require new or revised cost estimates, activity sequences, schedule dates, resource

requirements, and/or analysis of risk response alternatives. These changes can require adjustments to the project

management plan and other project documents. Customer or sponsor approval may be required for certain change

requests after CCB approval, unless they are part of the CCB.

116 Part 1 - Guide

4.6.1 PERFORM INTEGRATED CHANGE CONTROL: INPUTS

4.6.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Change management plan. Described in Section 4.2.3.1. The change management plan provides the direction

for managing the change control process and documents the roles and responsibilities of the change control

board (CCB).

 Configuration management plan. Described in Section 4.2.3.1. The conﬁguration management plan describes

the conﬁgurable items of the project and identiﬁes the items that will be recorded and updated so that the

product of the project remains consistent and operable.

 Scope baseline. Described in Section 5.4.3.1. The scope baseline provides the project and product deﬁnition.

 Schedule baseline. Described in Section 6.5.3.1. The schedule baseline is used to assess the impact of the

changes in the project schedule.

 Cost baseline. Described in Section 7.3.3.1. The cost baseline is used to assess the impact of the changes to

the project cost.

4.6.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Basis of estimates. Described in Section 6.4.3.2. Basis of estimates indicate how the duration, cost, and

resources estimates were derived and can be used to calculate the impact of the change in time, budget, and

resources.

 Requirements traceability matrix. Described in Section 5.2.3.2. The requirements traceability matrix helps

assess the impact of the change on the project scope.

 Risk report. Described in Section 11.2.3.2. The risk report presents information on sources of overall and

individual project risks involved by the change requested.

4.6.1.3 WORK PERFORMANCE REPORTS

Described in Section 4.5.3.1. Work performance reports of particular interest to the Perform Integrated Change Control

process include resource availability, schedule and cost data, earned value reports, and burnup or burndown charts.

117

4.6.1.4 CHANGE REQUESTS

Many processes produce change requests as an output. Change requests (described in Section 4.3.3.4) may

include corrective action, preventive action, defect repairs, as well as updates to formally controlled documents or

deliverables to reﬂect modiﬁed or additional ideas or content. Changes may or may not impact the project baselines—

sometimes only the performance against the baseline is affected. Decisions on those changes are usually made by

the project manager.

Change requests that have an impact on the project baselines should normally include information about the cost

of implementing the change, modiﬁcations in the scheduled dates, resource requirements, and risks. These changes

should be approved by the CCB (if it exists) and by the customer or sponsor, unless they are part of the CCB. Only

approved changes should be incorporated into a revised baseline.

4.6.1.5 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Perform Integrated Change Control process include but

are not limited to:

 Legal restrictions, such as country or local regulations;

 Government or industry standards (e.g., product standards, quality standards, safety standards, and workmanship

standards);

 Legal and regulatory requirements and/or constraints;

 Organizational governance framework (a structured way to provide control, direction, and coordination through

people, policies, and processes to meet organizational strategic and operational goals); and

 Contracting and purchasing constraints.

4.6.1.6 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Perform Integrated Change Control process include but are

not limited to:

 Change control procedures, including the steps by which organizational standards, policies, plans, procedures, or

any project documents will be modiﬁed, and how any changes will be approved and validated;

 Procedures for approving and issuing change authorizations; and

 Conﬁguration management knowledge base containing the versions and baselines of all ofﬁcial organizational

standards, policies, procedures, and any project documents.

118 Part 1 - Guide

4.6.2 PERFORM INTEGRATED CHANGE CONTROL: TOOLS AND TECHNIQUES

4.6.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge

of or training in the following topics:

 Technical knowledge of the industry and focus area of the project,

 Legislation and regulations,

 Legal and procurement,

 Conﬁguration management, and

 Risk management.

4.6.2.2 CHANGE CONTROL TOOLS

In order to facilitate conﬁguration and change management, manual or automated tools may be used. Conﬁguration

control is focused on the speciﬁcation of both the deliverables and the processes, while change control is focused on

identifying, documenting, and approving or rejecting changes to the project documents, deliverables, or baselines.

Tool selection should be based on the needs of the project stakeholders including organizational and environmental

considerations and/or constraints. Tools should support the following conﬁguration management activities:

 Identify configuration item. Identiﬁcation and selection of a conﬁguration item to provide the basis for which

the product conﬁguration is deﬁned and veriﬁed, products and documents are labeled, changes are managed,

and accountability is maintained.

 Record and report configuration item status. Information recording and reporting about each conﬁguration item.

 Perform configuration item verification and audit. Conﬁguration veriﬁcation and conﬁguration audits ensure

that the composition of a project’s conﬁguration items is correct and that corresponding changes are registered,

assessed, approved, tracked, and correctly implemented. This ensures that the functional requirements deﬁned

in the conﬁguration documentation are met.

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119

Tools should support the following change management activities as well:

 Identify changes. Identifying and selecting a change item for processes or project documents.

 Document changes. Documenting the change into a proper change request.

 Decide on changes. Reviewing the changes; approving, rejecting, deferring, or making any other decision about

changes to the project documents, deliverables, or baselines.

 Track changes. Verifying that the changes are registered, assessed, approved, and tracked and communicating

ﬁnal results to stakeholders.

Tools are also used to manage the change requests and the resulting decisions. Additional considerations should be

made for communications to assist the change control board (CCB) members in their duties, as well as to distribute the

decisions to the appropriate stakeholders.

4.6.2.3 DATA ANALYSIS

Data analysis techniques that can be used for this process include but are not limited to:

 Alternatives analysis. Described in Section 9.2.2.5. This technique is used to assess the requested changes and

decide which are accepted, rejected, or need to be modiﬁed to be ﬁnally accepted.

 Cost-benefit analysis. Described in Section 8.1.2.3. This analysis helps to determine if the requested change is

worth its associated cost.

4.6.2.4 DECISION MAKING

Decision-making techniques that can be used for this process include but are not limited to:

 Voting. Described in Section 5.2.2.4. Voting can take the form of unanimity, majority, or plurality to decide on

whether to accept, defer, or reject change requests.

 Autocratic decision making. In this decision-making technique, one individual takes the responsibility for

making the decision for the entire group.

 Multicriteria decision analysis. Described in Section 8.1.2.4. This technique uses a decision matrix to provide

a systematic analytical approach to evaluate the requested changes according to a set of predeﬁned criteria.

120 Part 1 - Guide

4.6.2.5 MEETINGS

Change control meetings are held with a change control board (CCB) that is responsible for meeting and reviewing

the change requests and approving, rejecting, or deferring change requests. Most changes will have some sort of impact

on time, cost, resources, or risks. Assessing the impact of the changes is an essential part of the meeting. Alternatives

to the requested changes may also be discussed and proposed. Finally, the decision is communicated to the request

owner or group.

The CCB may also review conﬁguration management activities. The roles and responsibilities of these boards are

clearly deﬁned and agreed upon by the appropriate stakeholders and are documented in the change management plan.

CCB decisions are documented and communicated to the stakeholders for information and follow-up actions.

4.6.3 PERFORM INTEGRATED CHANGE CONTROL: OUTPUTS

4.6.3.1 APPROVED CHANGE REQUESTS

Change requests (described in Section 4.3.3.4) are processed according to the change management plan by the

project manager, CCB, or an assigned team member. As a result, changes may be approved, deferred, or rejected.

Approved change requests will be implemented through the Direct and Manage Project Work process. Deferred or

rejected change requests are communicated to the person or group requesting the change.

The disposition of all change requests are recorded in the change log as a project document update.

4.6.3.2 PROJECT MANAGEMENT PLAN UPDATES

Any formally controlled component of the project management plan may be changed as a result of this process.

Changes to baselines are only made from the last baseline forward. Past performance is not changed. This protects the

integrity of the baselines and the historical data of past performance.

4.6.3.3 PROJECT DOCUMENTS UPDATES

Any formally controlled project document may be changed as a result of this process. A project document that is

normally updated as a result of this process is the change log. The change log is used to document changes that occur

during a project.

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121

4.7 CLOSE PROJECT OR PHASE

Close Project or Phase is the process of ﬁnalizing all activities for the project, phase, or contract. The key beneﬁts of

this process are the project or phase information is archived, the planned work is completed, and organizational team

resources are released to pursue new endeavors. This process is performed once or at predeﬁned points in the project.

The inputs, tools and techniques, and outputs of the process are depicted in Figure 4-14. Figure 4-15 depicts the data

ﬂow diagram for the process.

Figure 4-14. Close Project or Phase: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

Close Project or Phase

.1 Expert judgment

.2 Data analysis

• Document analysis

• Regression analysis

• Trend analysis

• Variance analysis

.3 Meetings

.1 Project charter

.2 Project management plan

• All components

.3 Project documents

• Assumption log

• Basis of estimates

• Change log

• Issue log

• Lessons learned register

• Milestone list

• Project communications

• Quality control

measurements

• Quality reports

• Requirements

documentation

• Risk register

• Risk report

.4 Accepted deliverables

.5 Business documents

• Business case

• Benefits management plan

.6 Agreements

.7 Procurement documentation

.8 Organizational process assets

.1 Project documents updates

• Lessons learned register

.2 Final product, service, or

result transition

.3 Final report

.4 Organizational process assets

updates

122 Part 1 - Guide

Figure 4-15. Close Project or Phase: Data Flow Diagram

• Project

charter

5.5

Validate

Scope

12.1

Plan

Procurement

Management

4.1

Develop

Project Charter

Project

Management

Plan

Project

Documents

Project

Documents

4.7

Project or

Phase

Enterprise/

Organization

Enterprise/

Organization

Customer

• Accepted deliverables

• Project Charter

• Procurement documentation

12.2

Conduct

Procurements

• Organizational process assets

• Final product, service, or

result transition

Project documents updates

• Lessons learned register

• Final report

• Organizational process

assets updates

Project management plan

• All components

Project documents

• Assumption log

• Basis of estimates

• Change log

• Issue log

• Lessons learned register

• Milestone list

• Project communications

• Quality control measurements

• Quality reports

• Requirements documentation

• Risk register

• Risk report

Project

Documents

• Agreements • Business case

• Benefits management plan

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123

When closing the project, the project manager reviews the project management plan to ensure that all project work

is completed and that the project has met its objectives. The activities necessary for the administrative closure of the

project or phase include but are not limited to:

 Actions and activities necessary to satisfy completion or exit criteria for the phase or project such as:

 Making certain that all documents and deliverables are up-to-date and that all issues are resolved;

 Conﬁrming the delivery and formal acceptance of deliverables by the customer;

 Ensuring that all costs are charged to the project;

 Closing project accounts;

 Reassigning personnel;

 Dealing with excess project material;

 Reallocating project facilities, equipment, and other resources; and

 Elaborating the ﬁnal project reports as required by organizational policies.

 Activities related to the completion of the contractual agreements applicable to the project or project phase

such as:

 Conﬁrming the formal acceptance of the seller’s work,

 Finalizing open claims,

 Updating records to reﬂect ﬁnal results, and

 Archiving such information for future use.

 Activities needed to:

 Collect project or phase records,

 Audit project success or failure,

 Manage knowledge sharing and transfer,

 Identify lessons learned, and

 Archive project information for future use by the organization.

 Actions and activities necessary to transfer the project’s products, services, or results to the next phase or to

production and/or operations.

 Collecting any suggestions for improving or updating the policies and procedures of the organization, and sending

them to the appropriate organizational unit.

 Measuring stakeholder satisfaction.

The Close Project or Phase process also establishes the procedures to investigate and document the reasons for

actions taken if a project is terminated before completion. In order to successfully achieve this, the project manager

needs to engage all the proper stakeholders in the process.

124 Part 1 - Guide

4.7.1 CLOSE PROJECT OR PHASE: INPUTS

4.7.1.1 PROJECT CHARTER

Described in Section 4.1.3.1. The project charter documents the project success criteria, the approval requirements,

and who will sign off on the project.

4.7.1.2 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. All components of the project management plan are an input to this process.

4.7.1.3 PROJECT DOCUMENTS

Project documents that may be inputs for this process include but are not limited to:

 Assumption log. Described in Section 4.1.3.2. The assumption log has a record of all the assumptions and

constraints that guided the technical speciﬁcations, estimates, schedule, risks, etc.

 Basis of estimates. Described in Sections 6.4.3.2 and 7.2.3.2. The basis of estimates is used to evaluate how

the estimation of durations, cost, resources, and cost control compared to the actual results.

 Change log. Described in Section 4.6.3.3. The change log contains the status of all change requests throughout

the project or phase.

 Issue log. Described in Section 4.3.3.3. The issue log is used to check that there is no open issue.

 Lessons learned register. Described in Section 4.3.3.1. The lessons learned in the phase or project will be

ﬁnalized before being entered into the lessons learned repository.

 Milestone list. Described in Section 6.2.3.3. The milestone list shows the ﬁnal dates on which the project

milestones have been accomplished.

 Project communications. Described in Section 10.2.3.1. Project communications include any and all

communications that have been created throughout the project.

 Quality control measurements. Described in Section 8.3.3.1. The quality control measurements document the

results of Control Quality activities and demonstrate compliance with the quality requirements.

 Quality reports. Described in Section 8.2.3.1. The information presented in the quality report may include all

quality assurance issues managed or escalated by the team, recommendations for improvement, and the summary

of ﬁndings from the Control Quality process.

 Requirements documentation. Described in Section 5.2.3.1. Requirements documentation is used to

demonstrate compliance with the project scope.

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125

 Risk register. Described in Section 11.2.3.1. The risk register provides information on risks that have occurred

throughout the project.

 Risk report. Described in Section 11.2.3.2. The risk report provides information on the risk status and is used to

check that there are no open risks at the end of the project.

4.7.1.4 ACCEPTED DELIVERABLES

Described in Section 5.5.3.1. Accepted deliverables may include approved product speciﬁcations, delivery receipts,

and work performance documents. Partial or interim deliverables may also be included for phased or cancelled projects.

4.7.1.5 BUSINESS DOCUMENTS

Described in Section 1.2.6. Business documents include but are not limited to:

 Business case. The business case documents the business need and the cost beneﬁt analysis that justify the

project.

 Benefits management plan. The beneﬁts management plan outlines the target beneﬁts of the project.

The business case is used to determine if the expected outcomes from the economic feasibility study used to justify

the project occurred. The beneﬁts management plan is used to measure whether the beneﬁts of the project were

achieved as planned.

4.7.1.6 AGREEMENTS

Described in Section 12.2.3.2. The requirements for formal procurement closure are usually deﬁned in the terms

and conditions of the contract and are included in the procurement management plan. A complex project may involve

managing multiple contracts simultaneously or in sequence.

4.7.1.7 PROCUREMENT DOCUMENTATION

Described in Section 12.3.1.4. To close the contract, all procurement documentation is collected, indexed, and ﬁled.

Information on contract schedule, scope, quality, and cost performance along with all contract change documentation,

payment records, and inspection results are cataloged. “As-built” plans/drawing or “as-developed” documents, manuals,

troubleshooting, and other technical documentation should also be considered as part of the procurement documents

when closing a project. This information can be used for lessons learned information and as a basis for evaluating

contractors for future contracts.

126 Part 1 - Guide

4.7.1.8 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Close Project or Phase process include but are not limited to:

 Project or phase closure guidelines or requirements (e.g., lessons learned, ﬁnal project audits, project evaluations,

product validations, acceptance criteria, contract closure, resource reassignment, team performance appraisals,

and knowledge transfer).

 Conﬁguration management knowledge base containing the versions and baselines of all ofﬁcial organizational

standards, policies, procedures, and any project documents.

4.7.2 CLOSE PROJECT OR PHASE: TOOLS AND TECHNIQUES

4.7.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge

or training in the following topics:

 Management control,

 Audit,

 Legal and procurement, and

 Legislation and regulations.

4.7.2.2 DATA ANALYSIS

Data analysis techniques that can be used in project closeout include but are not limited to:

 Document analysis. Described in Section 5.2.2.3. Assessing available documentation will allow identifying

lessons learned and knowledge sharing for future projects and organizational assets improvement.

 Regression analysis. This technique analyzes the interrelationships between different project variables that

contributed to the project outcomes to improve performance on future projects.

 Trend analysis. Described in Section 4.5.2.2. Trend analysis can be used to validate the models used in the

organization and to implement adjustments for future projects.

 Variance analysis. Described in Section 4.5.2.2. Variance analysis can be used to improve the metrics of the

organization by comparing what was initially planned and the end result.

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127

4.7.2.3 MEETINGS

Meetings are used to conﬁrm that the deliverables have been accepted, to validate that the exit criteria have been

met, to formalize the completion of the contracts, to evaluate the satisfaction of the stakeholders, to gather lessons

learned, to transfer knowledge and information from the project, and to celebrate success. Attendees may include

project team members and other stakeholders involved in or affected by the project. Meetings may be face-to-face,

virtual, formal, or informal. Types of meetings include but are not limited to close-out reporting meetings, customer

wrap-up meetings, lessons learned meetings, and celebration meetings.

4.7.3 CLOSE PROJECT OR PHASE: OUTPUTS

4.7.3.1 PROJECT DOCUMENTS UPDATES

All project documents may be updated and marked as ﬁnal versions as a result of project closure. Of particular

interest is the lessons learned register, which is ﬁnalized to include ﬁnal information on phase or project closure.

The ﬁnal lessons learned register may include information on beneﬁts management, accuracy of the business

case, project and development life cycles, risk and issue management, stakeholder engagement, and other project

management processes.

4.7.3.2 FINAL PRODUCT, SERVICE, OR RESULT TRANSITION

A product, service, or result, once delivered by the project, may be handed over to a different group or organization

that will operate, maintain, and support it throughout its life cycle.

This output refers to this transition of the ﬁnal product, service, or result that the project was authorized to produce

(or in the case of phase closure, the intermediate product, service, or result of that phase) from one team to another.

4.7.3.3 FINAL REPORT

The ﬁnal report provides a summary of the project performance. It can include information such as:

 Summary level description of the project or phase.

 Scope objectives, the criteria used to evaluate the scope, and evidence that the completion criteria were met.

 Quality objectives, the criteria used to evaluate the project and product quality, the veriﬁcation and actual

milestone delivery dates, and reasons for variances.

 Cost objectives, including the acceptable cost range, actual costs, and reasons for any variances.

 Summary of the validation information for the ﬁnal product, service, or result.

128 Part 1 - Guide

 Schedule objectives including whether results achieved the beneﬁts that the project was undertaken to address.

If the beneﬁts are not met at the close of the project, indicate the degree to which they were achieved and

estimate for future beneﬁts realization.

 Summary of how the ﬁnal product, service, or result achieved the business needs identiﬁed in the business plan.

If the business needs are not met at the close of the project, indicate the degree to which they were achieved and

estimate for when the business needs will be met in the future.

 Summary of any risks or issues encountered on the project and how they were addressed.

4.7.3.4 ORGANIZATIONAL PROCESS ASSET UPDATES

Organizational process assets that are updated include but are not limited to:

 Project documents. Documentation resulting from the project’s activities; for example, project management

plan; scope, cost, schedule, and project calendars; and change management documentation.

 Operational and support documents. Documents required for an organization to maintain, operate, and support

the product or service delivered by the project. These may be new documents or updates to existing documents.

 Project or phase closure documents. Project or phase closure documents, consisting of formal documentation

that indicates completion of the project or phase and the transfer of the completed project or phase deliverables

to others, such as an operations group or to the next phase. During project closure, the project manager reviews

prior phase documentation, customer acceptance documentation from the Validate Scope process (Section 5.5),

and the agreement (if applicable) to ensure that all project requirements are completed prior to ﬁnalizing the

closure of the project. If the project was terminated prior to completion, the formal documentation indicates

why the project was terminated and formalizes the procedures for the transfer of the ﬁnished and unﬁnished

deliverables of the cancelled project to others.

 Lessons learned repository. Lessons learned and knowledge gained throughout the project are transferred to

the lessons learned repository for use by future projects.

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129

PROJECT SCOPE MANAGEMENT

Project Scope Management includes the processes required to ensure that the project includes all the work required,

and only the work required, to complete the project successfully. Managing the project scope is primarily concerned with

deﬁning and controlling what is and is not included in the project.

The Project Scope Management processes are:

5.1 Plan Scope Management—The process of creating a scope management plan that documents how the project

and product scope will be deﬁned, validated, and controlled.

5.2 Collect Requirements—The process of determining, documenting, and managing stakeholder needs and

requirements to meet project objectives.

5.3 Define Scope—The process of developing a detailed description of the project and product.

5.4 Create WBS—The process of subdividing project deliverables and project work into smaller, more manageable

components.

5.5 Validate Scope—The process of formalizing acceptance of the completed project deliverables.

5.6 Control Scope—The process of monitoring the status of the project and product scope and managing changes

to the scope baseline.

Figure 5-1 provides an overview of the Project Scope Management processes. The Project Scope Management

processes are presented as discrete processes with deﬁned interfaces while, in practice, they overlap and interact in

ways that cannot be completely detailed in the PMBOK® Guide.

130 Part 1 - Guide

.1 Inputs

.1 Project charter

.2 Project management plan

.3 Enterprise environmental

factors

.4 Organizational process assets

.2 Tools & Techniques

.1 Expert judgment

.2 Data analysis

.3 Meetings

.3 Outputs

.1 Scope management plan

.2 Requirements management

plan

.1 Inputs

.1 Project charter

.2 Project management plan

.3 Project documents

.4 Business documents

.5 Agreements

.6 Enterprise environmental

factors

.7 Organizational process assets

.2 Tools & Techniques

.1 Expert judgment

.2 Data gathering

.3 Data analysis

.4 Decision making

.5 Data representation

.6 Interpersonal and team skills

.7 Context diagram

.8 Prototypes

.3 Outputs

.1 Requirements documentation

.2 Requirements traceability

matrix

.1 Inputs

.1 Project charter

.2 Project management plan

.3 Project documents

.4 Enterprise environmental

factors

.5 Organizational process assets

.2 Tools & Techniques

.1 Expert judgment

.2 Data analysis

.3 Decision making

.4 Interpersonal and team skills

.5 Product analysis

.3 Outputs

.1 Project scope statement

.2 Project documents updates

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Enterprise environmental

factors

.4 Organizational process assets

.2 Tools & Techniques

.1 Expert judgment

.2 Decomposition

.3 Outputs

.1 Scope baseline

.2 Project documents updates

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Verified deliverables

.4 Work performance data

.2 Tools & Techniques

.1 Inspection

.2 Decision making

.3 Outputs

.1 Accepted deliverables

.2 Work performance information

.3 Change requests

.4 Project documents updates

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Work performance data

.4 Organizational process assets

.2 Tools & Techniques

.1 Data analysis

.3 Outputs

.1 Work performance information

.2 Change requests

.3 Project management plan

updates

.4 Project documents updates

Project Scope Management

Overview

5.2 Collect

Requirements

5.1 Plan Scope

Management 5.3 Define Scope

5.4 Create WBS

5.5 Validate Scope

5.6 Control Scope

Figure 5-1. Project Scope Management Overview

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131

KEY CONCEPTS FOR PROJECT SCOPE MANAGEMENT

In the project context, the term “scope” can refer to:

 Product scope. The features and functions that characterize a product, service, or result.

 Project scope. The work performed to deliver a product, service, or result with the speciﬁed features and

functions. The term “project scope” is sometimes viewed as including product scope.

Project life cycles can range along a continuum from predictive approaches at one end to adaptive or agile approaches

at the other. In a predictive life cycle, the project deliverables are deﬁned at the beginning of the project and any changes

to the scope are progressively managed. In an adaptive or agile life cycle, the deliverables are developed over multiple

iterations where a detailed scope is deﬁned and approved for each iteration when it begins.

Projects with adaptive life cycles are intended to respond to high levels of change and require ongoing stakeholder

engagement. The overall scope of an adaptive project will be decomposed into a set of requirements and work to

be performed, sometimes referred to as a product backlog. At the beginning of an iteration, the team will work to

determine how many of the highest-priority items on the backlog list can be delivered within the next iteration. Three

processes (Collect Requirements, Deﬁne Scope, and Create WBS) are repeated for each iteration. On the contrary, in a

predictive project, these processes are performed toward the beginning of the project and updated as necessary, using

the integrated change control process.

In an adaptive or agile life cycle, the sponsor and customer representatives should be continuously engaged with the

project to provide feedback on deliverables as they are created and to ensure that the product backlog reﬂects their

current needs. Two processes (Validate Scope and Control Scope) are repeated for each iteration. On the contrary, in a

predictive project, Validate Scope occurs with each deliverable or phase review and Control Scope is an ongoing process.

In predictive projects, the scope baseline for the project is the approved version of the project scope statement, work

breakdown structure (WBS), and its associated WBS dictionary. A baseline can be changed only through formal change

control procedures and is used as a basis for comparison while performing Validate Scope and Control Scope processes

as well as other controlling processes. Projects with adaptive life cycles use backlogs (including product requirements

and user stories) to reﬂect their current needs.

Completion of the project scope is measured against the project management plan, while completion of the product

scope is measured against the product requirements. The term “requirement” is deﬁned as a condition or capability that

is required to be present in a product, service, or result to satisfy an agreement or other formally imposed speciﬁcation.

Validate Scope is the process of formalizing acceptance of the completed project deliverables. The veriﬁed deliverables

obtained from the Control Quality process are an input to the Validate Scope process. One of the outputs of Validate

Scope is accepted deliverables that are formally signed off and approved by the authorized stakeholder. Therefore, the

stakeholder needs to get involved early on during planning (sometimes initiating as well) and to provide inputs about

quality of deliverables so that Control Quality can assess the performance and recommend necessary changes.

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132 Part 1 - Guide

TRENDS AND EMERGING PRACTICES IN PROJECT SCOPE MANAGEMENT

Requirements have always been a concern in project management and have continued to gain more attention in

the profession. As the global environment becomes more complex, organizations are starting to recognize how to

use business analysis to their competitive advantage by deﬁning, managing, and controlling requirements activities.

Activities of business analysis may start before a project is initiated and a project manager is assigned. According

to Requirements Management: A Practice Guide [14], the requirements management process starts with a needs

assessment, which may begin in portfolio planning, in program planning, or within a discrete project.

Eliciting, documenting, and managing stakeholder requirements takes place within the Project Scope Management

processes. Trends and emerging practices for Project Scope Management include but are not limited to a focus on

collaborating with business analysis professionals to:

 Determine problems and identify business needs;

 Identify and recommend viable solutions for meeting those needs;

 Elicit, document, and manage stakeholder requirements in order to meet business and project objectives; and

 Facilitate the successful implementation of the product, service, or end result of the program or project [7].

The process ends with the requirements closure, which transitions the product, service, or result to the recipient in

order to measure, monitor, realize, and sustain beneﬁts over time.

The role with responsibility to conduct business analysis should be assigned to resources with sufﬁcient business

analysis skills and expertise. If a business analyst is assigned to a project, requirement-related activities are the

responsibility of that role. The project manager is responsible for ensuring that requirements-related work is accounted

for in the project management plan and that requirements-related activities are performed on time and within budget

and deliver value.

The relationship between a project manager and a business analyst should be a collaborative partnership. A project

will have a higher likelihood of being successful if project managers and business analysts fully understand each other’s

roles and responsibilities to successfully achieve project objectives.

133

TAILORING CONSIDERATIONS

Because each project is unique, the project manager will need to tailor the way Project Scope Management processes

are applied. Considerations for tailoring include but are not limited to:

 Knowledge and requirements management. Does the organization have formal or informal knowledge and

requirements management systems? What guidelines should the project manager establish for requirements to

be reused in the future?

 Validation and control. Does the organization have existing formal or informal validation and control-related

policies, procedures, and guidelines?

 Development approach. Does the organization use agile approaches in managing projects? Is the development

approach iterative or incremental? Is a predictive approach used? Will a hybrid approach be productive?

 Stability of requirements. Are there areas of the project with unstable requirements? Do unstable requirements

necessitate the use of lean, agile, or other adaptive techniques until they are stable and well deﬁned?

 Governance. Does the organization have formal or informal audit and governance policies, procedures,

and guidelines?

CONSIDERATIONS FOR AGILE/ADAPTIVE ENVIRONMENTS

In projects with evolving requirements, high risk, or signiﬁcant uncertainty, the scope is often not understood at the

beginning of the project or it evolves during the project. Agile methods deliberately spend less time trying to deﬁne

and agree on scope in the early stage of the project and spend more time establishing the process for its ongoing

discovery and reﬁnement. Many environments with emerging requirements ﬁnd that there is often a gap between

the real business requirements and the business requirements that were originally stated. Therefore, agile methods

purposefully build and review prototypes and release versions in order to reﬁne the requirements. As a result, scope is

deﬁned and redeﬁned throughout the project. In agile approaches, the requirements constitute the backlog.

134 Part 1 - Guide

5.1 PLAN SCOPE MANAGEMENT

Plan Scope Management is the process of creating a scope management plan that documents how the project and

product scope will be deﬁned, validated, and controlled. The key beneﬁt of this process is that it provides guidance and

direction on how scope will be managed throughout the project. This process is performed once or at predeﬁned points

in the project. The inputs, tools and techniques, and outputs of this process are depicted in Figure 5-2. Figure 5-3 depicts

the data ﬂow diagram of the process.

Figure 5-2. Plan Scope Management: Inputs, Tools & Techniques, and Outputs

Figure 5-3. Plan Scope Management: Data Flow Diagram

Tools & TechniquesInputs Outputs

Plan Scope Management

.1 Expert judgment

.2 Data analysis

• Alternatives analysis

.3 Meetings

.1 Project charter

.2 Project management plan

• Quality management plan

• Project life cycle description

• Development approach

.3 Enterprise environmental

factors

.4 Organizational process assets

.1 Scope management plan

.2 Requirements management

plan

• Project

charter

5.1

Plan Scope

Management

Enterprise/

Organization

4.1

Develop Project

Charter

• Scope management plan

• Requirements

management plan

• Project charter

• Quality management plan

• Project life cycle description

• Development approach

• Enterprise environmental factors

• Organizational process assets

Project

Management

Plan

Project

Management

Plan

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135

The scope management plan is a component of the project or program management plan that describes how the

scope will be deﬁned, developed, monitored, controlled, and validated. The development of the scope management plan

and the detailing of the project scope begin with the analysis of information contained in the project charter (Section

4.1.3.1), the latest approved subsidiary plans of the project management plan (Section 4.2.3.1), historical information

contained in the organizational process assets (Section 2.3), and any other relevant enterprise environmental factors

(Section 2.2).

5.1.1 PLAN SCOPE MANAGEMENT: INPUTS

5.1.1.1 PROJECT CHARTER

Described in Section 4.1.3.1. The project charter documents the project purpose, high-level project description,

assumptions, constraints, and high-level requirements that the project is intended to satisfy.

5.1.1.2 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Quality management plan. Described in Section 8.1.3.1. The way the project and product scope will be

managed can be inﬂuenced by how the organization’s quality policy, methodologies, and standards are

implemented on the project.

 Project life cycle description. The project life cycle determines the series of phases that a project passes

through from its inception to the end of the project.

 Development approach. The development approach deﬁnes whether waterfall, iterative, adaptive, agile, or a

hybrid development approach will be used.

5.1.1.3 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Plan Scope Management process include but are not

limited to:

 Organization’s culture,

 Infrastructure,

 Personnel administration, and

 Marketplace conditions.

136 Part 1 - Guide

5.1.1.4 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Plan Scope Management process include but are not

limited to:

 Policies and procedures, and

 Historical information and lessons learned repositories.

5.1.2 PLAN SCOPE MANAGEMENT: TOOLS AND TECHNIQUES

5.1.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1 Expertise should be considered from individuals or groups with specialized knowledge

or training in the following topics:

 Previous similar projects, and

 Information in the industry, discipline, and application area.

5.1.2.2 DATA ANALYSIS

A data analysis technique that can be used for this process includes but is not limited to alternatives analysis.

Various ways of collecting requirements, elaborating the project and product scope, creating the product, validating

the scope, and controlling the scope are evaluated.

5.1.2.3 MEETINGS

Project teams may attend project meetings to develop the scope management plan. Attendees may include the

project manager, the project sponsor, selected project team members, selected stakeholders, anyone with responsibility

for any of the scope management processes, and others as needed.

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137

5.1.3 PLAN SCOPE MANAGEMENT: OUTPUTS

5.1.3.1 SCOPE MANAGEMENT PLAN

The scope management plan is a component of the project management plan that describes how the scope will be

deﬁned, developed, monitored, controlled, and validated. The components of a scope management plan include:

 Process for preparing a project scope statement;

 Process that enables the creation of the WBS from the detailed project scope statement;

 Process that establishes how the scope baseline will be approved and maintained; and

 Process that speciﬁes how formal acceptance of the completed project deliverables will be obtained.

The scope management plan can be formal or informal, broadly framed or highly detailed, based on the needs

of the project.

5.1.3.2 REQUIREMENTS MANAGEMENT PLAN

The requirements management plan is a component of the project management plan that describes how project and

product requirements will be analyzed, documented, and managed. According to Business Analysis for Practitioners:

A Practice Guide [7], some organizations refer to it as a business analysis plan. Components of the requirements

management plan can include but are not limited to:

 How requirements activities will be planned, tracked, and reported;

 Conﬁguration management activities such as: how changes will be initiated; how impacts will be analyzed; how

they will be traced, tracked, and reported; as well as the authorization levels required to approve these changes;

 Requirements prioritization process;

 Metrics that will be used and the rationale for using them; and

 Traceability structure that reﬂects the requirement attributes captured on the traceability matrix.

138 Part 1 - Guide

5.2 COLLECT REQUIREMENTS

Collect Requirements is the process of determining, documenting, and managing stakeholder needs and requirements

to meet objectives. The key beneﬁt of this process is that it provides the basis for deﬁning the product scope and project

scope. This process is performed once or at predeﬁned points in the project. The inputs, tools and techniques, and

outputs of this process are depicted in Figure 5-4. Figure 5-5 depicts the data ﬂow diagram of the process.

Figure 5-4. Collect Requirements: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

Collect Requirements

.1 Expert judgment

.2 Data gathering

• Brainstorming

• Interviews

• Focus groups

• Questionnaires and

surveys

• Benchmarking

.3 Data analysis

• Document analysis

.4 Decision making

• Voting

• Multicriteria decision

analysis

.5 Data representation

• Affinity diagrams

• Mind mapping

.6 Interpersonal and team skills

• Nominal group technique

• Observation/conversation

• Facilitation

.7 Context diagram

.8 Prototypes

.1 Project charter

.2 Project management plan

• Scope management plan

• Requirements management

plan

• Stakeholder engagement

plan

.3 Project documents

• Assumption log

• Lessons learned register

• Stakeholder register

.4 Business documents

• Business case

.5 Agreements

.6 Enterprise environmental

factors

.7 Organizational process assets

.1 Requirements documentation

.2 Requirements traceability

matrix

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139

• Project

charter

5.2

Collect

Requirements

Enterprise/

Organization

12.2

Conduct

Procurements

4.1

Develop

Project Charter

• Requirements

documentation

• Requirements

traceability matrix

• Agreements

• Project charter

Project documents

• Assumption log

• Lessons learned register

• Stakeholder register

Business documents

• Business case

Project management plan

• Requirements management plan

• Scope management plan

• Stakeholder engagement plan

• Enterprise environmental factors

• Organizational process assets

Project

Management

Plan

Project

Documents

Project

Documents

Business

Documents

Figure 5-5. Collect Requirements: Data Flow Diagram

140 Part 1 - Guide

The PMBOK® Guide does not speciﬁcally address product requirements since those are industry speciﬁc. Note that

Business Analysis for Practitioners: A Practice Guide [7] provides more in-depth information about product requirements.

The project’s success is directly inﬂuenced by active stakeholder involvement in the discovery and decomposition of

needs into project and product requirements and by the care taken in determining, documenting, and managing the

requirements of the product, service, or result of the project. Requirements include conditions or capabilities that are

required to be present in a product, service, or result to satisfy an agreement or other formally imposed speciﬁcation.

Requirements include the quantiﬁed and documented needs and expectations of the sponsor, customer, and other

stakeholders. These requirements need to be elicited, analyzed, and recorded in enough detail to be included in the

scope baseline and to be measured once project execution begins. Requirements become the foundation of the WBS.

Cost, schedule, quality planning, and procurement are all based on these requirements.

5.2.1 COLLECT REQUIREMENTS: INPUTS

5.2.1.1 PROJECT CHARTER

Described in Section 4.1.3.1. The project charter documents the high-level project description and high-level

requirements that will be used to develop detailed requirements.

5.2.1.2 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Scope management plan. Described in Section 5.1.3.1. The scope management plan contains information on

how the project scope will be deﬁned and developed.

 Requirements management plan. Described in Section 5.1.3.2. The requirements management plan has

information on how project requirements will be collected, analyzed, and documented.

 Stakeholder engagement plan. Described in Section 13.2.3.1. The stakeholder engagement plan is used

to understand stakeholder communication requirements and the level of stakeholder engagement in order to

assess and adapt to the level of stakeholder participation in requirements activities.

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141

5.2.1.3 PROJECT DOCUMENTS

Examples of project documents that can be considered as inputs for this process include but are not limited to:

 Assumption Log. Described in Section 4.1.3.2. The assumption log identiﬁed assumptions about the product,

project, environment, stakeholders, and other factors that can inﬂuence requirements.

 Lessons learned register. Described in Section 4.4.3.1. The lessons learned register is used to provide

information on effective requirements collection techniques, especially for projects that are using an iterative or

adaptive product development methodology.

 Stakeholder Register. Described in Section 13.1.3.1. The stakeholder register is used to identify stakeholders

who can provide information on the requirements. It also captures requirements and expectations that

stakeholders have for the project.

5.2.1.4 BUSINESS DOCUMENTS

Described in Section 1.2.6. A business document that can inﬂuence the Collect Requirements process is the

business case, which can describe required, desired, and optional criteria for meeting the business needs.

5.2.1.5 AGREEMENTS

Described in Section 12.2.3.2. Agreements can contain project and product requirements.

5.2.1.6 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Collect Requirements process include but are not limited to:

 Organization’s culture,

 Infrastructure,

 Personnel administration, and

 Marketplace conditions.

5.2.1.7 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Collect Requirements process include but are not limited to:

 Policies and procedures, and

 Historical information and lessons learned repository with information from previous projects.

142 Part 1 - Guide

5.2.2 COLLECT REQUIREMENTS: TOOLS AND TECHNIQUES

5.2.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge

or training in the following topics:

 Business analysis,

 Requirements elicitation,

 Requirements analysis,

 Requirements documentation,

 Project requirements in previous similar projects,

 Diagramming techniques,

 Facilitation, and

 Conﬂict management.

5.2.2.2 DATA GATHERING

Data-gathering techniques that can be used for this process include but are not limited to:

 Brainstorming. Described in Section 4.1.2.2. Brainstorming is a technique used to generate and collect multiple

ideas related to project and product requirements.

 Interviews. An interview is a formal or informal approach to elicit information from stakeholders by talking

to them directly. It is typically performed by asking prepared and spontaneous questions and recording the

responses. Interviews are often conducted on an individual basis between an interviewer and an interviewee, but

may involve multiple interviewers and/or multiple interviewees. Interviewing experienced project participants,

sponsors, other executives, and subject matter experts can aid in identifying and deﬁning the features and

functions of the desired product deliverables. Interviews are also useful for obtaining conﬁdential information.

 Focus groups. Focus groups bring together prequaliﬁed stakeholders and subject matter experts to learn about

their expectations and attitudes about a proposed product, service, or result. A trained moderator guides the

group through an interactive discussion designed to be more conversational than a one-on-one interview.

143

 Questionnaires and surveys. Questionnaires and surveys are written sets of questions designed to quickly

accumulate information from a large number of respondents. Questionnaires and/or surveys are most appropriate

with varied audiences, when a quick turnaround is needed, when respondents are geographically dispersed, and

where statistical analysis could be appropriate.

 Benchmarking. Described in Section 8.1.2.2. Benchmarking involves comparing actual or planned products,

processes, and practices to those of comparable organizations to identify best practices, generate ideas for

improvement, and provide a basis for measuring performance. The organizations compared during benchmarking

can be internal or external.

5.2.2.3 DATA ANALYSIS

Described in Section 4.5.2.2. Data analysis techniques that can be used for this process include but are not limited

to document analysis. Document analysis consists of reviewing and assessing any relevant documented information.

In this process, document analysis is used to elicit requirements by analyzing existing documentation and identifying

information relevant to the requirements. There is a wide range of documents that may be analyzed to help elicit relevant

requirements. Examples of documents that may be analyzed include but are not limited to:

 Agreements;

 Business plans;

 Business process or interface documentation;

 Business rules repositories;

 Current process ﬂows;

 Marketing literature;

 Problem/issue logs;

 Policies and procedures;

 Regulatory documentation such as laws, codes, or ordinances, etc.;

 Requests for proposal; and

 Use cases.

144 Part 1 - Guide

5.2.2.4 DECISION MAKING

Decision-making techniques that can be used in the Collect Requirements process include but are not limited to:

 Voting. Voting is a collective decision-making technique and an assessment process having multiple alternatives

with an expected outcome in the form of future actions. These techniques can be used to generate, classify, and

prioritize product requirements. Examples of voting techniques include:

 Unanimity. A decision that is reached whereby everyone agrees on a single course of action.

 Majority. A decision that is reached with support obtained from more than 50% of the members of the group.

Having a group size with an uneven number of participants can ensure that a decision will be reached, rather

than resulting in a tie.

 Plurality. A decision that is reached whereby the largest block in a group decides, even if a majority is not

achieved. This method is generally used when the number of options nominated is more than two.

 Autocratic decision making. In this method, one individual takes responsibility for making the decision

for the group.

 Multicriteria decision analysis. A technique that uses a decision matrix to provide a systematic analytical

approach for establishing criteria, such as risk levels, uncertainty, and valuation, to evaluate and rank many ideas.

5.2.2.5 DATA REPRESENTATION

Data representation techniques that can be used for this process include but are not limited to:

 Affinity diagrams. Afﬁnity diagrams allow large numbers of ideas to be classiﬁed into groups for review and

analysis.

 Mind mapping. Mind mapping consolidates ideas created through individual brainstorming sessions into a

single map to reﬂect commonality and differences in understanding and to generate new ideas.

5.2.2.6 INTERPERSONAL AND TEAM SKILLS

Described in Section 4.1.2.3. The interpersonal and team skills that can be used in this process include but are not

limited to:

 Nominal group technique. The nominal group technique enhances brainstorming with a voting process used

to rank the most useful ideas for further brainstorming or for prioritization. The nominal group technique is a

structured form of brainstorming consisting of four steps:

145

 A question or problem is posed to the group. Each person silently generates and writes down their ideas.

 The moderator writes down the ideas on a ﬂip chart until all ideas are recorded.

 Each recorded idea is discussed until all group members have a clear understanding.

 Individuals vote privately to prioritize the ideas, usually using a scale of 1 – 5, with 1 being the lowest and 5

being the highest. Voting may take place in many rounds to reduce and focus in on ideas. After each round,

the votes are tallied and the highest scoring ideas are selected.

 Observation/conversation. Observation and conversation provide a direct way of viewing individuals in their

environment and how they perform their jobs or tasks and carry out processes. It is particularly helpful for detailed

processes when the people who use the product have difﬁculty or are reluctant to articulate their requirements.

Observation is also known as “job shadowing.” It is usually done externally by an observer viewing a business

expert performing a job. It can also be done by a “participant observer” who actually performs a process or

procedure to experience how it is done to uncover hidden requirements.

 Facilitation. Described in Section 4.1.2.3. Facilitation is used with focused sessions that bring key stakeholders

together to deﬁne product requirements. Workshops can be used to quickly deﬁne cross-functional

requirements and reconcile stakeholder differences. Because of their interactive group nature, well-facilitated

sessions can build trust, foster relationships, and improve communication among the participants, which can

lead to increased stakeholder consensus. In addition, issues can be discovered earlier and resolved more

quickly than in individual sessions.

Facilitation skills are used in the following situations, but are not limited to:

 Joint application design/development (JAD). JAD sessions are used in the software development industry.

These facilitated sessions focus on bringing business subject matter experts and the development team

together to gather requirements and improve the software development process.

 Quality function deployment (QFD). In the manufacturing industry, QFD is another facilitation technique that

helps determine critical characteristics for new product development. QFD starts by collecting customer

needs, also known as voice of the customer (VOC). These needs are then objectively sorted and prioritized,

and goals are set for achieving them.

 User stories. User stories, which are short, textual descriptions of required functionality, are often developed

during a requirements workshop. User stories describe the stakeholder role, who beneﬁts from the feature

(role), what the stakeholder needs to accomplish (goal), and the beneﬁt to the stakeholder (motivation).

146 Part 1 - Guide

5.2.2.7 CONTEXT DIAGRAM

The context diagram is an example of a scope model. Context diagrams visually depict the product scope by showing

a business system (process, equipment, computer system, etc.), and how people and other systems (actors) interact

with it (see Figure 5-6). Context diagrams show inputs to the business system, the actor(s) providing the input, the

outputs from the business system, and the actor(s) receiving the output.

Figure 5-6. Context Diagram

Hiring

Managers

Internal

Associates

Internal

Full-Time and

Part-Time

Contractors

Recruiting

Agencies

Job

Seekers

HR Talent Management Systems of ABC Company

External

Jobs

Websites

External UsersInternal Users

Internal Users Internal Data Flow External Users

LEGEND

External Data Flow

External

Jobs

Postings

External

User

Profiles

Internal

Jobs

Postings

Internal

User

Profiles

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147

5.2.2.8 PROTOTYPES

Prototyping is a method of obtaining early feedback on requirements by providing a model of the expected product

before actually building it. Examples of prototypes are small-scale products, computer generated 2D and 3D models,

mock-ups, or simulations. Prototypes allow stakeholders to experiment with a model of the ﬁnal product rather than

being limited to discussing abstract representations of their requirements. Prototypes support the concept of progressive

elaboration in iterative cycles of mock-up creation, user experimentation, feedback generation, and prototype revision.

When enough feedback cycles have been performed, the requirements obtained from the prototype are sufﬁciently

complete to move to a design or build phase.

Storyboarding is a prototyping technique showing sequence or navigation through a series of images or illustrations.

Storyboards are used on a variety of projects in a variety of industries, such as ﬁlm, advertising, instructional design,

and on agile and other software development projects. In software development, storyboards use mock-ups to show

navigation paths through web pages, screens, or other user interfaces.

5.2.3 COLLECT REQUIREMENTS: OUTPUTS

5.2.3.1 REQUIREMENTS DOCUMENTATION

Requirements documentation describes how individual requirements meet the business need for the project.

Requirements may start out at a high level and become progressively more detailed as more information about the

requirements is known. Before being baselined, requirements need to be unambiguous (measurable and testable),

traceable, complete, consistent, and acceptable to key stakeholders. The format of the requirements document may

range from a simple document listing all the requirements categorized by stakeholder and priority, to more elaborate

forms containing an executive summary, detailed descriptions, and attachments.

148 Part 1 - Guide

Many organizations categorize requirements into different types, such as business and technical solutions, the

former referring to stakeholder needs and the latter as to how those needs will be implemented. Requirements can

be grouped into classiﬁcations allowing for further reﬁnement and detail as the requirements are elaborated. These

classiﬁcations include:

 Business requirements. These describe the higher-level needs of the organization as a whole, such as the

business issues or opportunities, and reasons why a project has been undertaken.

 Stakeholder requirements. These describe needs of a stakeholder or stakeholder group.

 Solution requirements. These describe features, functions, and characteristics of the product, service, or

result that will meet the business and stakeholder requirements. Solution requirements are further grouped into

functional and nonfunctional requirements:

 Functional requirements. Functional requirements describe the behaviors of the product. Examples include

actions, processes, data, and interactions that the product should execute.

 Nonfunctional requirements. Nonfunctional requirements supplement functional requirements and describe

the environmental conditions or qualities required for the product to be effective. Examples include: reliability,

security, performance, safety, level of service, supportability, retention/purge, etc.

 Transition and readiness requirements. These describe temporary capabilities, such as data conversion and

training requirements, needed to transition from the current as-is state to the desired future state.

 Project requirements. These describe the actions, processes, or other conditions the project needs to meet.

Examples include milestone dates, contractual obligations, constraints, etc.

 Quality requirements. These capture any condition or criteria needed to validate the successful completion

of a project deliverable or fulﬁllment of other project requirements. Examples include tests, certiﬁcations,

validations, etc.

5.2.3.2 REQUIREMENTS TRACEABILITY MATRIX

The requirements traceability matrix is a grid that links product requirements from their origin to the deliverables

that satisfy them. The implementation of a requirements traceability matrix helps ensure that each requirement adds

business value by linking it to the business and project objectives. It provides a means to track requirements throughout

the project life cycle, helping to ensure that requirements approved in the requirements documentation are delivered at

the end of the project. Finally, it provides a structure for managing changes to the product scope.

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149

Tracing requirements includes but is not limited to:

 Business needs, opportunities, goals, and objectives;

 Project objectives;

 Project scope and WBS deliverables;

 Product design;

 Product development;

 Test strategy and test scenarios; and

 High-level requirements to more detailed requirements.

Attributes associated with each requirement can be recorded in the requirements traceability matrix. These

attributes help to deﬁne key information about the requirement. Typical attributes used in the requirements traceability

matrix may include: a unique identiﬁer, a textual description of the requirement, the rationale for inclusion, owner,

source, priority, version, current status (such as active, cancelled, deferred, added, approved, assigned, completed),

and status date. Additional attributes to ensure that the requirement has met stakeholders’ satisfaction may include

stability, complexity, and acceptance criteria. Figure 5-7 provides an example of a requirements traceability matrix

with its associated attributes.

Figure 5-7. Example of a Requirements Traceability Matrix

Requirements Traceability Matrix

Requirements DescriptionID

Business Needs,

Opportunities,

Goals, Objectives

Project

Objectives

Associate

WBS

Deliverables

Product

Design

Product

Development

Test

Cases

Programs Portfolios

Project Name:

Cost Center:

Project Description:

1.0

1.1

1.2

1.2.1

2.0

2.1

2.1.1

3.0

3.1

3.2

4.0

5.0

001

002

003

004

005

150 Part 1 - Guide

5.3 DEFINE SCOPE

Define Scope is the process of developing a detailed description of the project and product. The key benefit of

this process is that it describes the product, service, or result boundaries and acceptance criteria. The inputs, tools

and techniques, and outputs of this process are depicted in Figure 5-8. Figure 5-9 depicts the data flow diagram

of the process.

Figure 5-8. Define Scope: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

Define Scope

.1 Expert judgment

.2 Data analysis

• Alternatives analysis

.3 Decision making

• Multicriteria decision

analysis

.4 Interpersonal and team skills

• Facilitation

.5 Product analysis

.1 Project charter

.2 Project management plan

• Scope management plan

.3 Project documents

• Assumption log

• Requirements

documentation

• Risk register

.4 Enterprise environmental

factors

.5 Organizational process assets

.1 Project scope statement

.2 Project documents updates

• Assumption log

• Requirements

documentation

• Requirements traceability

matrix

• Stakeholder register

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151

• Project

charter

5.3

Define

Scope

Enterprise/

Organization

4.1

Develop Project

Charter

• Project scope statement

• Project charter

Project documents

• Assumption log

• Requirements documentation

• Risk register

• Enterprise environmental factors

• Organizational process assets

Project

Documents

Project management plan

• Scope management plan

Project

Management

Plan

Project

Documents

Project document updates

• Assumption log

• Requirements documentation

• Requirements traceability matrix

• Stakeholder register

Figure 5-9. Define Scope: Data Flow Diagram

Since all the requirements identiﬁed in Collect Requirements may not be included in the project, the Deﬁne Scope

process selects the ﬁnal project requirements from the requirements documentation developed during the Collect

Requirements process. It then develops a detailed description of the project and product, service, or result.

The preparation of a detailed project scope statement builds upon the major deliverables, assumptions, and

constraints that are documented during project initiation. During project planning, the project scope is deﬁned and

described with greater speciﬁcity as more information about the project is known. Existing risks, assumptions, and

constraints are analyzed for completeness and added or updated as necessary. The Deﬁne Scope process can be highly

iterative. In iterative life cycle projects, a high-level vision will be developed for the overall project, but the detailed scope

is determined one iteration at a time, and the detailed planning for the next iteration is carried out as work progresses

on the current project scope and deliverables.

152 Part 1 - Guide

5.3.1 DEFINE SCOPE: INPUTS

5.3.1.1 PROJECT CHARTER

Described in Section 4.1.3.1. The project charter provides the high-level project description, product characteristics,

and approval requirements.

5.3.1.2 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. A project management plan component includes but is not limited to the scope

management plan as described in Section 5.1.3.1, which documents how the project scope will be deﬁned, validated,

and controlled.

5.3.1.3 PROJECT DOCUMENTS

Examples of project documents that can be considered as inputs for this process include but are not limited to:

 Assumption log. Described in Section 4.1.3.2. The assumption log identiﬁes assumptions and constraints about

the product, project, environment, stakeholders, and other factors that can inﬂuence the project and product scope.

 Requirements documentation. Described in Section 5.2.3.1. Requirements documentation identiﬁes

requirements that will be incorporated into the scope.

 Risk register. Described in Section 11.2.3.1. The risk register contains response strategies that may affect the

project scope, such as reducing or changing project and product scope to avoid or mitigate a risk.

5.3.1.4 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Deﬁne Scope process include but are not limited to:

 Organization’s culture,

 Infrastructure,

 Personnel administration, and

 Marketplace conditions.

5.3.1.5 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Deﬁne Scope process include but are not limited to:

 Policies, procedures, and templates for a project scope statement;

 Project ﬁles from previous projects; and

 Lessons learned from previous phases or projects.

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153

5.3.2 DEFINE SCOPE: TOOLS AND TECHNIQUES

5.3.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Expertise should be considered from individuals or groups with knowledge of or

experience with similar projects.

5.3.2.2 DATA ANALYSIS

An example of a data analysis technique that can be used in this process includes but is not limited to alternatives

analysis. Alternatives analysis can be used to evaluate ways to meet the requirements and the objectives identiﬁed in

the charter.

5.3.2.3 DECISION MAKING

Described in Section 5.1.2.2. A decision-making technique that can be used in this process includes but is not limited

to multicriteria decision analysis. Described in Section 8.1.2.4, multicriteria decision analysis is a technique that uses

a decision matrix to provide a systematic analytical approach for establishing criteria, such as requirements, schedule,

budget, and resources, in order to reﬁne the project and product scope for the project.

5.3.2.4 INTERPERSONAL AND TEAM SKILLS

Described in Section 4.1.2.3. An example of an interpersonal and team skills technique is facilitation. Facilitation

is used in workshops and working sessions with key stakeholders who have a variety of expectations or ﬁelds of

expertise. The goal is to reach a cross-functional and common understanding of the project deliverables and project

and product boundaries.

5.3.2.5 PRODUCT ANALYSIS

Product analysis can be used to deﬁne products and services. It includes asking questions about a product or service

and forming answers to describe the use, characteristics, and other relevant aspects of what is going to be delivered.

Each application area has one or more generally accepted methods for translating high-level product or service

descriptions into meaningful deliverables. Requirements are captured at a high level and decomposed to the level of

detail needed to design the ﬁnal product. Examples of product analysis techniques include but are not limited to:

 Product breakdown,

 Requirements analysis,

 Systems analysis,

 Systems engineering,

 Value analysis, and

 Value engineering.

154 Part 1 - Guide

5.3.3 DEFINE SCOPE: OUTPUTS

5.3.3.1 PROJECT SCOPE STATEMENT

The project scope statement is the description of the project scope, major deliverables, assumptions, and constraints.

The project scope statement documents the entire scope, including project and product scope. It describes the project’s

deliverables in detail. It also provides a common understanding of the project scope among project stakeholders. It may

contain explicit scope exclusions that can assist in managing stakeholder expectations. It enables the project team

to perform more detailed planning, guides the project team’s work during execution, and provides the baseline for

evaluating whether requests for changes or additional work are contained within or outside the project’s boundaries.

The degree and level of detail to which the project scope statement deﬁnes the work that will be performed and the

work that is excluded can help determine how well the project management team can control the overall project scope.

The detailed project scope statement, either directly or by reference to other documents, includes the following:

 Product scope description. Progressively elaborates the characteristics of the product, service, or result

described in the project charter and requirements documentation.

 Deliverables. Any unique and verifiable product, result, or capability to perform a service that is required

to be produced to complete a process, phase, or project. Deliverables also include ancillary results, such as

project management reports and documentation. These deliverables may be described at a summary level

or in great detail.

 Acceptance criteria. A set of conditions that is required to be met before deliverables are accepted.

 Project exclusions. Identiﬁes what is excluded from the project. Explicitly stating what is out of scope for the

project helps manage stakeholders’ expectations and can reduce scope creep.

Although the project charter and the project scope statement are sometimes perceived as containing a certain

degree of redundancy, they are different in the level of detail contained in each. The project charter contains high-

level information, while the project scope statement contains a detailed description of the scope components. These

components are progressively elaborated throughout the project. Table 5-1 describes some of the key elements for

each document.

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155

Project Charter

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

Project approval requirements (i.e., what

constitutes success, who decides the

project is successful, 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

Name and authority of the sponsor or other

person(s) authorizing the project charter

Project Scope Statement

Project scope description (progressively

elaborated)

Project deliverables

Acceptance criteria

Project exclusions

Table 5-1. Elements of the Project Charter and Project Scope Statement

5.3.3.2 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Assumption log. Described in Section 4.1.3.2. The assumption log is updated with additional assumptions or

constraints that were identiﬁed during this process.

 Requirements documentation. Described in Section 5.2.3.1. Requirements documentation may be updated

with additional or changed requirements.

 Requirements traceability matrix. Described in Section 5.2.3.2. The requirements traceability matrix may be

updated to reﬂect updates in requirement documentation.

 Stakeholder register. Described in Section 13.1.3.1. Where additional information on existing or new

stakeholders is gathered as a result of this process, it is recorded in the stakeholder register.

156 Part 1 - Guide

5.4 CREATE WBS

Create WBS is the process of subdividing project deliverables and project work into smaller, more manageable

components. The key beneﬁt of this process is that it provides a framework of what has to be delivered. This process is

performed once or at predeﬁned points in the project. The inputs, tools and techniques, and outputs of this process are

depicted in Figure 5-10. Figure 5-11 depicts the data ﬂow diagram of the process.

Figure 5-10. Create WBS: Inputs, Tools & Techniques, and Outputs

Figure 5-11. Create WBS: Data Flow Diagram

Tools & TechniquesInputs Outputs

Create WBS

.1 Expert judgment

.2 Decomposition

.1 Project management plan

• Scope management plan

.2 Project documents

• Project scope statement

• Requirements

documentation

.3 Enterprise environmental

factors

.4 Organizational process assets

.1 Scope baseline

.2 Project documents updates

• Assumption log

• Requirements

documentation

• Project

charter

5.4

Create

WBS

Enterprise/

Organization

• Scope baseline

Project management plan

• Scope management plan

Project documents

• Project scope statement

• Requirements documentation

• Enterprise environmental factors

• Organizational process assets

Project

Documents

Project

Management

Plan

Project

Documents

Project document updates

• Assumption log

• Requirements documentation

Project

Management

Plan

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157

The WBS is a hierarchical decomposition of the total scope of work to be carried out by the project team to accomplish

the project objectives and create the required deliverables. The WBS organizes and deﬁnes the total scope of the project

and represents the work speciﬁed in the current approved project scope statement.

The planned work is contained within the lowest level of WBS components, which are called work packages. A work

package can be used to group the activities where work is scheduled and estimated, monitored, and controlled. In the

context of the WBS, work refers to work products or deliverables that are the result of activity and not to the activity itself.

5.4.1 CREATE WBS: INPUTS

5.4.1.1 PROJECT MANAGEMENT PLAN

A project management plan component includes but is not limited to the scope management plan. Described in

Section 5.1.3.1, the scope management plan documents how the WBS will be created from the project scope statement.

5.4.1.2 PROJECT DOCUMENTS

Examples of project documents that can be considered as inputs for this process include but are not limited to:

 Project scope statement. Described in Section 5.3.3.1. The project scope statement describes the work that

will be performed and the work that is excluded.

 Requirements documentation. Described in Section 5.2.3.1. Detailed requirements describe how individual

requirements meet the business need for the project.

5.4.1.3 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Create WBS process include but are not limited to

industry-speciﬁc WBS standards that are relevant to the nature of the project. These industry-speciﬁc standards may

serve as external reference sources for creating the WBS.

5.4.1.4 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Create WBS process include but are not limited to:

 Policies, procedures, and templates for the WBS;

 Project ﬁles from previous projects; and

 Lessons learned from previous projects.

158 Part 1 - Guide

5.4.2 CREATE WBS: TOOLS AND TECHNIQUES

5.4.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Expertise should be considered from individuals or groups with knowledge of or

experience with similar projects.

5.4.2.2 DECOMPOSITION

Decomposition is a technique used for dividing and subdividing the project scope and project deliverables into

smaller, more manageable parts. The work package is the work deﬁned at the lowest level of the WBS for which cost and

duration can be estimated and managed. The level of decomposition is often guided by the degree of control needed to

effectively manage the project. The level of detail for work packages will vary with the size and complexity of the project.

Decomposition of the total project work into work packages generally involves the following activities:

 Identifying and analyzing the deliverables and related work,

 Structuring and organizing the WBS,

 Decomposing the upper WBS levels into lower-level detailed components,

 Developing and assigning identiﬁcation codes to the WBS components, and

 Verifying that the degree of decomposition of the deliverables is appropriate.

A portion of a WBS with some branches of the WBS decomposed down through the work package level is shown in

Figure 5-12.

Figure 5-12. Sample WBS Decomposed Down Through Work Packages

1.0

Value Management

System Project

1.1

Needs

Assessment

1.2

Standards

Development

1.3

Systems

Engineering

1.4

Project

Management

The WBS is illustrative only. It is not intended to represent the full project scope of any specific project,

nor to imply that this is the only way to organize a WBS on this type of project.

1.1.1.1

Components

Identification

1.1.2.1

Gap

Assessment

1.1.3.1

Alternatives

Identification

1.1.4

System Requirements

Development

1.1.3

Alternatives

Development

1.1.2

Requirements

Determination

1.1.1

Current System

Audit

1.1.1.2

Components

Analysis

1.1.2.2

Requirements

Changes Identification

1.1.3.2

Alternatives

Analysis

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159

A WBS structure may be created through various approaches. Some of the popular methods include the top-down

approach, the use of organization-speciﬁc guidelines, and the use of WBS templates. A bottom-up approach can be used

to group subcomponents. The WBS structure can be represented in a number of forms, such as:

 Using phases of the project life cycle as the second level of decomposition, with the product and project

deliverables inserted at the third level, as shown in Figure 5-13;

 Using major deliverables as the second level of decomposition, as shown in Figure 5-14; and

 Incorporating subcomponents that may be developed by organizations outside the project team, such as

contracted work. The seller then develops the supporting contract WBS as part of the contracted work.

Figure 5-13. Sample WBS Organized by Phase

Planning

Software Product

Release 5.0

Detail

Design Construct Integration

and Test

Project

Management

Product

Requirements

Software Software Software Software

Meetings User

Documentation

User

Documentation

User

Documentation

User

Documentation

Administration Training Program

Materials

Training Program

Materials

Training Program

Materials

Training Program

Materials

The WBS is illustrative only. It is not intended to represent the full project scope of any specific project,

nor to imply that this is the only way to organize a WBS on this type of project.

160 Part 1 - Guide

System

Engineering

Management

Supporting

PM Activities

Aircraft

System

Project

Management

Equipment

Training

Facilities

Training

Services

Training

Technical

Orders

Engineering

Data

Management

Data

Data Air

Vehicle

Organizational

Level SE

Intermediate

Level SE

Depot

Level SE

Support

Equipment

Airframe Engine Communication

System

Navigation

System

Fire Control

System

Base

Buildings

Maintenance

Facility

Facilities

Mock-ups

Operational

Test

Developmental

Test

Test and

Evaluation

The WBS is illustrative only. It is not intended to represent the full project scope of any specific project,

nor to imply that this is the only way to organize a WBS on this type of project.

Figure 5-14. Sample WBS with Major Deliverables

Decomposition of the upper-level WBS components requires subdividing the work for each of the deliverables or

subcomponents into its most fundamental components, where the WBS components represent veriﬁable products, services,

or results. If an agile approach is used, epics can be decomposed into user stories. The WBS may be structured as an

outline, an organizational chart, or other method that identiﬁes a hierarchical breakdown. Verifying the correctness of the

decomposition requires determining that the lower-level WBS components are those that are necessary and sufﬁcient for

completion of the corresponding higher-level deliverables. Different deliverables can have different levels of decomposition.

To arrive at a work package, the work for some deliverables needs to be decomposed only to the next level, while others need

additional levels of decomposition. As the work is decomposed to greater levels of detail, the ability to plan, manage, and

control the work is enhanced. However, excessive decomposition can lead to nonproductive management effort, inefﬁcient

use of resources, decreased efﬁciency in performing the work, and difﬁculty aggregating data over different levels of the WBS.

Decomposition may not be possible for a deliverable or subcomponent that will be accomplished far into the future.

The project management team usually waits until the deliverable or subcomponent is agreed on, so the details of the

WBS can be developed. This technique is sometimes referred to as rolling wave planning.

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161

The WBS represents all product and project work, including the project management work. The total of the work at

the lowest levels should roll up to the higher levels so that nothing is left out and no extra work is performed. This is

sometimes called the 100 percent rule.

For speciﬁc information regarding the WBS, refer to the Practice Standard for Work Breakdown Structures – Second

Edition [15]. This standard contains industry-speciﬁc examples of WBS templates that can be tailored to speciﬁc projects

in a particular application area.

5.4.3 CREATE WBS: OUTPUTS

5.4.3.1 SCOPE BASELINE

The scope baseline is the approved version of a scope statement, WBS, and its associated WBS dictionary, which can

be changed only through formal change control procedures and is used as a basis for comparison. It is a component of

the project management plan. Components of the scope baseline include:

 Project scope statement. The project scope statement includes the description of the project scope, major

deliverables, assumptions, and constraints (Section 5.3.3.1).

 WBS. The WBS is a hierarchical decomposition of the total scope of work to be carried out by the project team

to accomplish the project objectives and create the required deliverables. Each descending level of the WBS

represents an increasingly detailed deﬁnition of the project work.

 Work package. The lowest level of the WBS is a work package with a unique identiﬁer. These identiﬁers provide

a structure for hierarchical summation of costs, schedule, and resource information and form a code of accounts.

Each work package is part of a control account. A control account is a management control point where scope,

budget, and schedule are integrated and compared to the earned value for performance measurement. A control

account has two or more work packages, though each work package is associated with a single control account.

 Planning package. A control account may include one or more planning packages. A planning package is a

work breakdown structure component below the control account and above the work package with known work

content but without detailed schedule activities.

162 Part 1 - Guide

 WBS dictionary. The WBS dictionary is a document that provides detailed deliverable, activity, and scheduling

information about each component in the WBS. The WBS dictionary is a document that supports the WBS. Most

of the information included in the WBS dictionary is created by other processes and added to this document at a

later stage. Information in the WBS dictionary may include but is not limited to:

 Code of account identiﬁer,

 Description of work,

 Assumptions and constraints,

 Responsible organization,

 Schedule milestones,

 Associated schedule activities,

 Resources required,

 Cost estimates,

 Quality requirements,

 Acceptance criteria,

 Technical references, and

 Agreement information.

5.4.3.2 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Assumption log. Described in Section 4.1.3.2. The assumption log is updated with additional assumptions

or constraints that were identiﬁed during the Create WBS process.

 Requirements documentation. Described in Section 5.2.3.1. Requirements documentation may be updated

to include approved changes resulting from the Create WBS process.

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163

5.5 VALIDATE SCOPE

Validate Scope is the process of formalizing acceptance of the completed project deliverables. The key beneﬁt of this

process is that it brings objectivity to the acceptance process and increases the probability of ﬁnal product, service,

or result acceptance by validating each deliverable. This process is performed periodically throughout the project as

needed. The inputs, tools and techniques, and outputs of this process are depicted in Figure 5-15. Figure 5-16 depicts

the data ﬂow diagram of the process.

Figure 5-15. Validate Scope: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

Validate Scope

.1 Inspection

.2 Decision making

• Voting

.1 Project management plan

• Scope management plan

• Requirements management

plan

• Scope baseline

.2 Project documents

• Lessons learned register

• Quality reports

• Requirements

documentation

• Requirements traceability

matrix

.3 Verified deliverables

.4 Work performance data

.1 Accepted deliverables

.2 Work performance

information

.3 Change requests

.4 Project document updates

• Lessons learned register

• Requirements

documentation

• Requirements traceability

matrix

164 Part 1 - Guide

• Project

charter

8.3

Control

Quality

4.3

Direct and

Manage

Project Execution

• Work performance data

• Verified deliverables

• Accepted

deliverables

• Change

requests

• Work

performance

information

Project documents updates

• Lessons learned register

• Requirements

documentation

• Requirements traceability

matrix

Project management plan

• Scope management plan

• Requirements management plan

• Scope baseline

Project documents

• Lessons learned register

• Quality report

• Requirements documentation

• Requirements traceability matrix

Project

Management

Plan

Project

Documents

Project

Documents

4.5

Monitor and

Control

Project Work

4.6

Perform

Integrated

Change Control

4.7

Close Project

or Phase

5.5

Validate

Scope

Figure 5-16. Validate Scope: Data Flow Diagram

The veriﬁed deliverables obtained from the Control Quality process are reviewed with the customer or sponsor to

ensure they are completed satisfactorily and have received formal acceptance of the deliverables by the customer or

sponsor. In this process, the outputs obtained as a result of the Planning processes in the Project Scope Management

Knowledge Area, such as the requirements documentation or the scope baseline, as well as the work performance data

obtained from the Execution processes in other Knowledge Areas, are the basis for performing the validation and for

ﬁnal acceptance.

The Validate Scope process differs from the Control Quality process in that the former is primarily concerned with

acceptance of the deliverables, while the latter is primarily concerned with correctness of the deliverables and meeting

the quality requirements speciﬁed for the deliverables. Control Quality is generally performed before Validate Scope,

although the two processes may be performed in parallel.

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165

5.5.1 VALIDATE SCOPE: INPUTS

5.5.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Scope management plan. Described in Section 5.1.3.1. The project management plan speciﬁes how formal

acceptance of the completed project deliverables will be obtained.

 Requirements management plan. Described in Section 5.1.3.2. The requirements management plan describes

how the project requirements are validated.

 Scope baseline. Described in Section 5.4.3.1. The scope baseline is compared to actual results to determine if

a change, corrective action, or preventive action is necessary.

5.5.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Lessons learned register: Described in Section 4.4.3.1. Lessons learned earlier in the project can be applied to

later phases in the project to improve the efﬁciency and effectiveness of validating deliverables.

 Quality reports. Described in Section 8.2.3.1. The information presented in the quality report may include

all quality assurance issues managed or escalated by the team, recommendations for improvement, and the

summary of ﬁndings from the Control Quality process. This information is reviewed prior to product acceptance.

 Requirements documentation. Described in Section 5.2.3.1. Requirements are compared to the actual results

to determine if a change, corrective action, or preventive action is necessary.

 Requirements traceability matrix. Described in Section 5.2.3.2. The requirements traceability matrix contains

information about requirements, including how they will be validated.

5.5.1.3 VERIFIED DELIVERABLES

Veriﬁed deliverables are project deliverables that are completed and checked for correctness through the Control

Quality process.

5.5.1.4 WORK PERFORMANCE DATA

Described in Section 4.3.3.2. Work performance data can include the degree of compliance with requirements, number

of nonconformities, severity of the nonconformities, or the number of validation cycles performed in a period of time.

166 Part 1 - Guide

5.5.2 VALIDATE SCOPE: TOOLS AND TECHNIQUES

5.5.2.1 INSPECTION

Described in Section 8.3.2.3. Inspection includes activities such as measuring, examining, and validating to

determine whether work and deliverables meet requirements and product acceptance criteria. Inspections are

sometimes called reviews, product reviews, and walkthroughs. In some application areas, these different terms have

unique and speciﬁc meanings.

5.5.2.2 DECISION MAKING

Described in Section 5.2.2.4. An example of decision making that may be used in this process includes but is

not limited to voting. Voting is used to reach a conclusion when the validation is performed by the project team

and other stakeholders.

5.5.3 VALIDATE SCOPE: OUTPUTS

5.5.3.1 ACCEPTED DELIVERABLES

Deliverables that meet the acceptance criteria are formally signed off and approved by the customer or sponsor.

Formal documentation received from the customer or sponsor acknowledging formal stakeholder acceptance of the

project’s deliverables is forwarded to the Close Project or Phase process (Section 4.7).

5.5.3.2 WORK PERFORMANCE INFORMATION

Work performance information includes information about project progress, such as which deliverables have been

accepted and which have not been accepted and the reasons why. This information is documented as described in

Section 10.3.3.1 and communicated to stakeholders.

5.5.3.3 CHANGE REQUESTS

The completed deliverables that have not been formally accepted are documented, along with the reasons for

non-acceptance of those deliverables. Those deliverables may require a change request for defect repair. The change

requests (described in Section 4.3.3.4) are processed for review and disposition through the Perform Integrated Change

Control process (Section 4.6).

167

5.5.3.4 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Lessons learned register. Described in Section 4.4.3.1. The lessons learned register is updated with information

on challenges encountered and how they could have been avoided as well as approaches that worked well for

validating deliverables.

 Requirements documentation. Described in Section 5.2.3.1. The requirements documentation may be updated

with the actual results of validation activity. Of particular interest is when the actual results are better than the

requirement or where a requirement was waived.

 Requirements traceability matrix. Described in Section 5.2.3.2. The requirements traceability matrix is updated

with the results of the validation, including the method used and the outcome.

5.6 CONTROL SCOPE

Control Scope is the process of monitoring the status of the project and product scope and managing changes to

the scope baseline. The key beneﬁt of this process is that the scope baseline is maintained throughout the project. This

process is performed throughout the project. The inputs, tools and techniques, and outputs of this process are depicted

in Figure 5-17. Figure 5-18 depicts the data ﬂow diagram of the process.

Figure 5-17. Control Scope: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

Control Scope

.1 Data analysis

• Variance analysis

• Trend analysis

.1 Project management plan

• Scope management plan

• Requirements management

plan

• Change management plan

• Configuration management

plan

• Scope baseline

• Performance measurement

baseline

.2 Project documents

• Lessons learned register

• Requirements

documentation

• Requirements traceability

matrix

.3 Work performance data

.4 Organizational process assets

.1 Work performance

information

.2 Change requests

.3 Project management plan

updates

• Scope management plan

• Scope baseline

• Schedule baseline

• Cost baseline

• Performance measurement

baseline

.4 Project documents updates

• Lessons learned register

• Requirements

documentation

• Requirements traceability

matrix

168 Part 1 - Guide

• Project

charter

4.3

Direct and

Manage

Project Work

• Work performance data

Project management plan

• Scope management plan

• Requirements management plan

• Change management plan

• Configuration management plan

• Scope baseline

• Performance measurement

baseline

Project documents

• Lessons learned register

• Requirements documentation

• Requirements traceability matrix

Project

Management

Plan

Project

Documents

Project

Documents

4.6

Perform

Integrated

Change Control

4.5

Monitor and

Control

Project Work

5.6

Control

Scope

Enterprise/

Organization

• Organizational process assets

• Work performance information

• Change requests

Project

Management

Plan

Project management

plan updates

• Scope management plan

• Scope baseline

• Schedule baseline

• Cost baseline

• Performance

measurement

baseline

Project documents

updates

• Lessons learned register

• Requirements documentation

• Requirements traceability matrix

Figure 5-18. Control Scope: Data Flow Diagram

Controlling the project scope ensures all requested changes and recommended corrective or preventive actions

are processed through the Perform Integrated Change Control process (see Section 4.6). Control Scope is also used

to manage the actual changes when they occur and is integrated with the other control processes. The uncontrolled

expansion to product or project scope without adjustments to time, cost, and resources is referred to as scope creep.

Change is inevitable; therefore, some type of change control process is mandatory for every project.

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169

5.6.1 CONTROL SCOPE: INPUTS

5.6.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Scope management plan. Described in Section 5.1.3.1. The scope management plan documents how the

project and product scope will be controlled.

 Requirements management plan. Described in Section 5.1.3.2. The requirements management plan describes

how the project requirements will be managed.

 Change management plan. Described in Section 4.2.3.1. The change management plan deﬁnes the process

for managing change on the project.

 Configuration management plan. Described in Section 4.2.3.1. The conﬁguration management plan deﬁnes

those items that are conﬁgurable, those items that require formal change control, and the process for controlling

changes to such items.

 Scope baseline. Described in Section 5.4.3.1. The scope baseline is compared to actual results to determine if

a change, corrective action, or preventive action is necessary.

 Performance measurement baseline. Described in Section 4.2.3.1. When using earned value analysis, the

performance measurement baseline is compared to actual results to determine if a change, corrective action, or

preventive action is necessary.

5.6.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Lessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project can be applied to

later phases in the project to improve scope control.

 Requirements documentation. Described in Section 5.2.3.1. Requirements documentation is used to detect

any deviation in the agreed-upon scope for the project or product.

 Requirements traceability matrix. Described in Section 5.2.3.2. The requirements traceability matrix helps

to detect the impact of any change or deviation from the scope baseline on the project objectives. It may also

provide status of requirements being controlled.

5.6.1.3 WORK PERFORMANCE DATA

Work performance data can include the number of change requests received, the number of requests accepted, and

the number of deliverables veriﬁed, validated, and completed.

170 Part 1 - Guide

5.6.1.4 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Control Scope process include but are not limited to:

 Existing formal and informal scope, control-related policies, procedures, guidelines; and

 Monitoring and reporting methods and templates to be used.

5.6.2 CONTROL SCOPE: TOOLS AND TECHNIQUES

5.6.2.1 DATA ANALYSIS

Data analysis techniques that can be used in the Control Scope process include but are not limited to:

 Variance analysis. Described in Section 4.5.2.2. Variance analysis is used to compare the baseline to the actual

results and determine if the variance is within the threshold amount or if corrective or preventive action is

appropriate.

 Trend analysis. Described in Section 4.5.2.2. Trend analysis examines project performance over time to

determine if performance is improving or deteriorating.

Important aspects of project scope control include determining the cause and degree of variance relative to the scope

baseline (Section 5.4.3.1) and deciding whether corrective or preventive action is required.

5.6.3 CONTROL SCOPE: OUTPUTS

5.6.3.1 WORK PERFORMANCE INFORMATION

Work performance information produced includes correlated and contextualized information on how the project

and product scope are performing compared to the scope baseline. It can include the categories of the changes

received, the identiﬁed scope variances and their causes, how they impact schedule or cost, and the forecast of the

future scope performance.

5.6.3.2 CHANGE REQUESTS

Described in Section 4.3.3.4. Analysis of project performance may result in a change request to the scope and

schedule baselines or other components of the project management plan. Change requests are processed for review

and disposition through the Perform Integrated Change Control process (Section 4.6).

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171

5.6.3.3 PROJECT MANAGEMENT PLAN UPDATES

Any change to the project management plan goes through the organization’s change control process via a change

request. Components that may require a change request for the project management plan include but are not limited to:

 Scope management plan. Described in Section 5.1.3.1. The scope management plan may be updated to reﬂect

a change in how the scope is managed.

 Scope baseline. Described in Section 5.4.3.1. Changes to the scope baseline are incorporated in response to

approved changes in scope, scope statement, the WBS, or the WBS dictionary. In some cases, scope variances can

be so severe that a revised scope baseline is needed to provide a realistic basis for performance measurement.

 Schedule baseline. Described in Section 6.5.3.1. Changes to the schedule baseline are incorporated in response

to approved changes in scope, resources, or schedule estimates. In some cases, schedule variances can be so

severe that a revised schedule baseline is needed to provide a realistic basis for performance measurement.

 Cost baseline. Described in Section 7.3.3.1. Changes to the cost baseline are incorporated in response to

approved changes in scope, resources, or cost estimates. In some cases, cost variances can be so severe that a

revised cost baseline is needed to provide a realistic basis for performance measurement.

 Performance measurement baseline. Described in Section 4.2.3.1. Changes to the performance measurement

baseline are incorporated in response to approved changes in scope, schedule performance, or cost estimates.

In some cases, the performance variances can be so severe that a change request is put forth to revise the

performance measurement baseline to provide a realistic basis for performance measurement.

5.6.3.4 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Lessons learned register. Described in Section 4.4.3.1. The lessons learned register can be updated with

techniques that are efﬁcient and effective in controlling scope, including causes of variances and corrective

actions chosen.

 Requirements documentation. Described in Section 5.2.3.1. Requirements documentation may be updated

with additional or changed requirements.

 Requirements traceability matrix. Described in Section 5.2.3.2. The requirements traceability matrix may be

updated to reﬂect updates in requirement documentation.

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172 Part 1 - Guide

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173

PROJECT SCHEDULE MANAGEMENT

Project Schedule Management includes the processes required to manage the timely completion of the project.

The Project Schedule Management processes are:

6.1 Plan Schedule Management—The process of establishing the policies, procedures, and documentation for

planning, developing, managing, executing, and controlling the project schedule.

6.2 Define Activities—The process of identifying and documenting the speciﬁc actions to be performed to produce

the project deliverables.

6.3 Sequence Activities—The process of identifying and documenting relationships among the project activities.

6.4 Estimate Activity Durations—The process of estimating the number of work periods needed to complete

individual activities with the estimated resources.

6.5 Develop Schedule—The process of analyzing activity sequences, durations, resource requirements, and

schedule constraints to create the project schedule model for project execution and monitoring and controlling.

6.6 Control Schedule—The process of monitoring the status of the project to update the project schedule and

manage changes to the schedule baseline.

Figure 6-1 provides an overview of the Project Schedule Management processes. The Project Schedule Management

processes are presented as discrete processes with deﬁned interfaces while, in practice, they overlap and interact in

ways that cannot be completely detailed in the PMBOK® Guide.

174 Part 1 - Guide

.1 Inputs

.1 Project charter

.2 Project management plan

.3 Enterprise environmental

factors

.4 Organizational process assets

.2 Tools & Techniques

.1 Expert judgment

.2 Data analysis

.3 Meetings

.3 Outputs

.1 Schedule management plan

.1 Inputs

.1 Project management plan

.2 Enterprise environmental

factors

.3 Organizational process assets

.2 Tools & Techniques

.1 Expert judgment

.2 Decomposition

.3 Rolling wave planning

.4 Meetings

.3 Outputs

.1 Activity list

.2 Activity attributes

.3 Milestone list

.4 Change requests

.5 Project management plan

updates

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Enterprise environmental

factors

.4 Organizational process assets

.2 Tools & Techniques

.1 Precedence diagramming

method

.2 Dependency determination

and integration

.3 Leads and lags

.4 Project management

information system

.3 Outputs

.1 Project schedule network

diagrams

.2 Project documents updates

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Enterprise environmental

factors

.4 Organizational process assets

.2 Tools & Techniques

.1 Expert judgment

.2 Analogous estimating

.3 Parametric estimating

.4 Three-point estimating

.5 Bottom-up estimating

.6 Data analysis

.7 Decision making

.8 Meetings

.3 Outputs

.1 Duration estimates

.2 Basis of estimates

.3 Project documents updates

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Agreements

.4 Enterprise environmental

factors

.5 Organizational process assets

.2 Tools & Techniques

.1 Schedule network analysis

.2 Critical path method

.3 Resource optimization

.4 Data analysis

.5 Leads and lags

.6 Schedule compression

.7 Project management

information system

.8 Agile release planning

.3 Outputs

.1 Schedule baseline

.2 Project schedule

.3 Schedule data

.4 Project calendars

.5 Change requests

.6 Project management plan

updates

.7 Project documents updates

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Work performance data

.4 Organizational process assets

.2 Tools & Techniques

.1 Data analysis

.2 Critical path method

.3 Project management

information system

.4 Resource optimization

.5 Leads and lags

.6 Schedule compression

.3 Outputs

.1 Work performance information

.2 Schedule forecasts

.3 Change requests

.4 Project management plan

updates

.5 Project documents updates

Project Schedule

Management Overview

6.2 Define Activities

6.1 Plan Schedule

Management 6.3 Sequence Activities

6.4 Estimate

Activity Durations

6.5 Develop Schedule 6.6 Control Schedule

Figure 6-1. Project Schedule Management Overview

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175

KEY CONCEPTS FOR PROJECT SCHEDULE MANAGEMENT

Project scheduling provides a detailed plan that represents how and when the project will deliver the products,

services, and results deﬁned in the project scope and serves as a tool for communication, managing stakeholders’

expectations, and as a basis for performance reporting.

The project management team selects a scheduling method, such as critical path or an agile approach. Then, the

project-speciﬁc data, such as the activities, planned dates, durations, resources, dependencies, and constraints, are

entered into a scheduling tool to create a schedule model for the project. The result is a project schedule. Figure 6-2

provides a scheduling overview that shows how the scheduling method, scheduling tool, and outputs from the Project

Schedule Management processes interact to create a schedule model.

For smaller projects, deﬁning activities, sequencing activities, estimating activity durations, and developing the

schedule model are so tightly linked that they are viewed as a single process that can be performed by a person

over a relatively short period of time. These processes are presented here as distinct elements because the tools and

techniques for each process are different. Some of these processes are presented more fully in the Practice Standard

for Scheduling [2].

When possible, the detailed project schedule should remain ﬂexible throughout the project to adjust for knowledge

gained, increased understanding of the risk, and value-added activities.

176 Part 1 - Guide

Examples of Project Schedule Presentations

Network Diagram

Bar ChartActivity List

Project

Schedule

Model

Project

Information

Scheduling

Method

Scheduling

Tool

Output

Generates

Project Specific Data

(e.g., WBS, activities,

resources, durations,

dependencies, constraints,

calendars, milestones

lags, etc.)

For example,

CPM

Figure 6-2. Scheduling Overview

177

TRENDS AND EMERGING PRACTICES IN PROJECT SCHEDULE MANAGEMENT

With high levels of uncertainty and unpredictability in a fast-paced, highly competitive global marketplace where

long term scope is difﬁcult to deﬁne, it is becoming even more important to have a contextual framework for effective

adoption and tailoring of development practices to respond to the changing needs of the environment. Adaptive

planning deﬁnes a plan but acknowledges that once work starts, the priorities may change and the plan needs to

reﬂect this new knowledge.

Some of the emerging practices for project scheduling methods include but are not limited to:

 Iterative scheduling with a backlog. This is a form of rolling wave planning based on adaptive life cycles,

such as the agile approach for product development. The requirements are documented in user stories that are

then prioritized and reﬁned just prior to construction, and the product features are developed using time-boxed

periods of work. This approach is often used to deliver incremental value to the customer or when multiple

teams can concurrently develop a large number of features that have few interconnected dependencies. This

scheduling method is appropriate for many projects as indicated by the widespread and growing use of adaptive

life cycles for product development. The beneﬁt of this approach is that it welcomes changes throughout the

development life cycle.

 On-demand scheduling. This approach, typically used in a Kanban system, is based on the theory-of-

constraints and pull-based scheduling concepts from lean manufacturing to limit a team’s work in progress

in order to balance demand against the team’s delivery throughput. On-demand scheduling does not rely

on a schedule that was developed previously for the development of the product or product increments,

but rather pulls work from a backlog or intermediate queue of work to be done immediately as resources

become available. On-demand scheduling is often used for projects that evolve the product incrementally in

operational or sustainment environments, and where tasks may be made relatively similar in size and scope

or can be bundled by size and scope.

178 Part 1 - Guide

TAILORING CONSIDERATIONS

Because each project is unique, the project manager may need to tailor the way Project Schedule Management

processes are applied. Considerations for tailoring include but are not limited to:

 Life cycle approach. What is the most appropriate life cycle approach that allows for a more detailed schedule?

 Resource availability. What are the factors inﬂuencing durations (such as the correlation between available

resources and their productivity)?

 Project dimensions. How will the presence of project complexity, technological uncertainty, product novelty,

pace, or progress tracking (such as earned value, percentage complete, red-yellow-green (stop light) indicators)

impact the desired level of control?

 Technology support. Is technology used to develop, record, transmit, receive, and store project schedule model

information and is it readily accessible?

For more speciﬁc information regarding scheduling, refer to the Practice Standard for Scheduling [16].

CONSIDERATIONS FOR AGILE/ADAPTIVE ENVIRONMENTS

Adaptive approaches use short cycles to undertake work, review the results, and adapt as necessary. These

cycles provide rapid feedback on the approaches and suitability of deliverables, and generally manifest as iterative

scheduling and on-demand, pull-based scheduling, as discussed in the section on Key Trends and Emerging Practices

in Project Schedule Management.

In large organizations, there may be a mixture of small projects and large initiatives requiring long-term roadmaps

to manage the development of these programs using scaling factors (e.g., team size, geographical distribution,

regulatory compliance, organizational complexity, and technical complexity). To address the full delivery life cycle for

larger, enterprise-wide systems, a range of techniques utilizing a predictive approach, adaptive approach, or a hybrid

of both, may need to be adopted. The organization may need to combine practices from several core methods, or

adopt a method that has already done so, and adopt a few principles and practices of more traditional techniques.

The role of the project manager does not change based on managing projects using a predictive development life

cycle or managing projects in adaptive environments. However, to be successful in using adaptive approaches, the

project manager will need to be familiar with the tools and techniques to understand how to apply them effectively.

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179

6.1 PLAN SCHEDULE MANAGEMENT

Plan Schedule Management is the process of establishing the policies, procedures, and documentation for

planning, developing, managing, executing, and controlling the project schedule. The key beneﬁt of this process is

that it provides guidance and direction on how the project schedule will be managed throughout the project. This

process is performed once or at predeﬁned points in the project. The inputs, tools and techniques, and outputs of the

process are depicted in Figure 6-3. Figure 6-4 depicts the data ﬂow diagram for the process.

Figure 6-3. Plan Schedule Management: Inputs, Tools & Techniques, and Outputs

Figure 6-4. Plan Schedule Management: Data Flow Diagram

Tools & TechniquesInputs Outputs

Plan Schedule Management

.1 Expert judgment

.2 Data analysis

.3 Meetings

.1 Project charter

.2 Project management plan

• Scope management plan

• Development approach

.3 Enterprise environmental

factors

.4 Organizational process assets

.1 Schedule management plan

• Project

charter

6.1

Plan Schedule

Management

Enterprise/

Organization

4.1

Develop Project

Charter

• Schedule management plan

• Project charter

Project management plan

• Scope management plan

• Development approach

• Enterprise environmental factors

• Organizational process assets

Project

Management

Plan

Project

Management

Plan

180 Part 1 - Guide

6.1.1 PLAN SCHEDULE MANAGEMENT: INPUTS

6.1.1.1 PROJECT CHARTER

Described in Section 4.1.3.1. The project charter deﬁnes the summary milestone schedule that will inﬂuence the

management of the project schedule.

6.1.1.2 PROJECT MANAGEMENT PLAN

Described in Section 4.3.2.1. Project management plan components include but are not limited to:

 Scope management plan. Described in Section 5.1.3.1. The scope management plan describes how the scope

will be deﬁned and developed, which will provide information on how the schedule will be developed.

 Development approach. Described in Section 4.2.3.1. The product development approach will help deﬁne the

scheduling approach, estimating techniques, scheduling tools, and techniques for controlling the schedule.

6.1.1.3 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Plan Schedule Management process include but are not

limited to:

 Organizational culture and structure,

 Team resource availability and skills and physical resource availability,

 Scheduling software,

 Guidelines and criteria for tailoring the organization’s set of standard processes and procedures to satisfy the

speciﬁc needs of the project, and

 Commercial databases, such as standardized estimating data.

6.1.1.4 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Plan Schedule Management process include but are not

limited to:

 Historical information and lessons learned repositories;

 Existing formal and informal schedule development, management- and control-related policies, procedures,

and guidelines;

 Templates and forms; and

 Monitoring and reporting tools.

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181

6.1.2 PLAN SCHEDULE MANAGEMENT: TOOLS AND TECHNIQUES

6.1.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1 Expertise should be considered from individuals or groups with specialized knowledge

or training in previous, similar projects:

 Schedule development, management, and control;

 Scheduling methodologies (e.g., predictive or adaptive life cycle);

 Scheduling software; and

 The speciﬁc industry for which the project is developed.

6.1.2.2 DATA ANALYSIS

A data analysis technique that can be used for this process includes but is not limited to alternatives analysis.

Alternatives analysis can include determining which schedule methodology to use, or how to combine various

methods on the project. It can also include determining how detailed the schedule needs to be, the duration of

waves for rolling wave planning, and how often it should be reviewed and updated. An appropriate balance between

the level of detail needed to manage the schedule and the amount of time it takes to keep it up to date needs to be

reached for each project.

6.1.2.3 MEETINGS

Project teams may hold planning meetings to develop the schedule management plan. Participants at these meetings

may include the project manager, the project sponsor, selected project team members, selected stakeholders, anyone

with responsibility for schedule planning or execution, and others as needed.

6.1.3 PLAN SCHEDULE MANAGEMENT: OUTPUTS

6.1.3.1 SCHEDULE MANAGEMENT PLAN

The schedule management plan is a component of the project management plan that establishes the criteria

and the activities for developing, monitoring, and controlling the schedule. The schedule management plan may be

formal or informal, highly detailed, or broadly framed based on the needs of the project, and includes appropriate

control thresholds.

182 Part 1 - Guide

The schedule management plan can establish the following:

 Project schedule model development. The scheduling methodology and the scheduling tool to be used in the

development of the project schedule model are speciﬁed.

 Release and iteration length. When using an adaptive life cycle, the time-boxed periods for releases, waves,

and iterations are speciﬁed. Time-boxed periods are durations during which the team works steadily toward

completion of a goal. Time-boxing helps to minimize scope creep as it forces the teams to process essential

features ﬁrst, then other features when time permits.

 Level of accuracy. The level of accuracy speciﬁes the acceptable range used in determining realistic activity

duration estimates and may include an amount for contingencies.

 Units of measure. Each unit of measurement (such as staff hours, staff days, or weeks for time measures, or

meters, liters, tons, kilometers, or cubic yards for quantity measures) is deﬁned for each of the resources.

 Organizational procedures links. The work breakdown structure (WBS) (Section 5.4) provides the framework

for the schedule management plan, allowing for consistency with the estimates and resulting schedules.

 Project schedule model maintenance. The process used to update the status and record progress of the

project in the schedule model during the execution of the project is deﬁned.

 Control thresholds. Variance thresholds for monitoring schedule performance may be speciﬁed to indicate an

agreed-upon amount of variation to be allowed before some action needs to be taken. Thresholds are typically

expressed as percentage deviations from the parameters established in the baseline plan.

 Rules of performance measurement. Earned value management (EVM) rules or other physical measurement

rules of performance measurement are set. For example, the schedule management plan may specify:

 Rules for establishing percent complete,

 EVM techniques (e.g., baselines, ﬁxed-formula, percent complete, etc.) to be employed (for more speciﬁc

information, refer to the Practice Standard for Earned Value Management [17]), and

 Schedule performance measurements such as schedule variance (SV) and schedule performance index (SPI)

used to assess the magnitude of variation to the original schedule baseline.

 Reporting formats. The formats and frequency for the various schedule reports are deﬁned.

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183

6.2 DEFINE ACTIVITIES

Deﬁne Activities is the process of identifying and documenting the speciﬁc actions to be performed to produce

the project deliverables. The key beneﬁt of this process is that it decomposes work packages into schedule activities

that provide a basis for estimating, scheduling, executing, monitoring, and controlling the project work. This process

is performed throughout the project. The inputs, tools and techniques, and outputs of this process are depicted in

Figure 6-5. Figure 6-6 depicts the data ﬂow diagram of the process.

Figure 6-5. Define Activities: Inputs, Tools & Techniques, and Outputs

Figure 6-6. Define Activities: Data Flow Diagram

Tools & TechniquesInputs Outputs

Define Activities

.1 Expert judgment

.2 Decomposition

.3 Rolling wave planning

.4 Meetings

.1 Project management plan

• Schedule management plan

• Scope baseline

.2 Enterprise environmental

factors

.3 Organizational process assets

.1 Activity list

.2 Activity attributes

.3 Milestone list

.4 Change requests

.5 Project management plan

updates

• Schedule baseline

• Cost baseline

• Project

charter

6.2

Define

Activities

Enterprise/

Organization

• Activity list

• Activity attributes

• Milestone list

• Change requests

Project management plan

• Scope management plan

• Scope baseline

• Enterprise environmental factors

• Organizational process assets

Project

Documents

Project

Management

Plan

Project management

plan updates

• Schedule baseline

• Cost baseline

Project

Management

Plan

4.6

Perform Integrated

Change Control

184 Part 1 - Guide

6.2.1 DEFINE ACTIVITIES: INPUTS

6.2.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Schedule management plan. Described in Section 6.1.3.1. The schedule management plan deﬁnes the

schedule methodology, the duration of waves for rolling wave planning, and the level of detail necessary to

manage the work.

 Scope baseline. Described in Section 5.4.3.1. The project WBS, deliverables, constraints, and assumptions

documented in the scope baseline are considered explicitly while deﬁning activities.

6.2.1.2 ENTERPRISE ENVIRONMENTAL FACTORS

Enterprise environmental factors that inﬂuence the Deﬁne Activities process include but are not limited to:

 Organizational cultures and structure,

 Published commercial information from commercial databases, and

 Project management information system (PMIS).

6.2.1.3 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Deﬁne Activities process include but are not limited to:

 Lessons learned repository containing historical information regarding activity lists used by previous similar projects,

 Standardized processes,

 Templates that contain a standard activity list or a portion of an activity list from a previous project, and

 Existing formal and informal activity planning-related policies, procedures, and guidelines, such as the scheduling

methodology, that are considered in developing the activity deﬁnitions.

6.2.2 DEFINE ACTIVITIES: TOOLS AND TECHNIQUES

6.2.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge

of similar past projects and the work being performed.

185

6.2.2.2 DECOMPOSITION

Described in Section 5.4.2.2. Decomposition is a technique used for dividing and subdividing the project scope and

project deliverables into smaller, more manageable parts. Activities represent the effort needed to complete a work

package. The Deﬁne Activities process deﬁnes the ﬁnal outputs as activities rather than deliverables, as done in the

Create WBS process (Section 5.4).

The activity list, WBS, and WBS dictionary can be developed either sequentially or concurrently, with the WBS and WBS

dictionary used as the basis for development of the ﬁnal activity list. Each work package within the WBS is decomposed

into the activities required to produce the work package deliverables. Involving team members in the decomposition can

lead to better and more accurate results.

6.2.2.3 ROLLING WAVE PLANNING

Rolling wave planning is an iterative planning technique in which the work to be accomplished in the near term is

planned in detail, while work further in the future is planned at a higher level. It is a form of progressive elaboration

applicable to work packages, planning packages, and release planning when using an agile or waterfall approach.

Therefore, work can exist at various levels of detail depending on where it is in the project life cycle. During early

strategic planning when information is less deﬁned, work packages may be decomposed to the known level of detail. As

more is known about the upcoming events in the near term, work packages can be decomposed into activities.

6.2.2.4 MEETINGS

Meetings may be face-to-face, virtual, formal, or informal. Meetings may be held with team members or subject

matter experts to deﬁne the activities needed to complete the work.

6.2.3 DEFINE ACTIVITIES: OUTPUTS

6.2.3.1 ACTIVITY LIST

The activity list includes the schedule activities required on the project. For projects that use rolling wave planning

or agile techniques, the activity list will be updated periodically as the project progresses. The activity list includes

an activity identiﬁer and a scope of work description for each activity in sufﬁcient detail to ensure that project team

members understand what work is required to be completed.

186 Part 1 - Guide

6.2.3.2 ACTIVITY ATTRIBUTES

Activity attributes extend the description of the activity by identifying multiple components associated with each

activity. The components for each activity evolve over time. During the initial stages of the project, they include

the unique activity identiﬁer (ID), WBS ID, and activity label or name. When completed, they may include activity

descriptions, predecessor activities, successor activities, logical relationships, leads and lags (Section 6.3.2.3),

resource requirements, imposed dates, constraints, and assumptions. Activity attributes can be used to identify the

place where the work has to be performed, the project calendar the activity is assigned to, and the type of effort

involved. Activity attributes are used for schedule development and for selecting, ordering, and sorting the planned

schedule activities in various ways within reports

6.2.3.3 MILESTONE LIST

A milestone is a signiﬁcant point or event in a project. A milestone list identiﬁes all project milestones and indicates

whether the milestone is mandatory, such as those required by contract, or optional, such as those based on historical

information. Milestones have zero duration because they represent a signiﬁcant point or event.

6.2.3.4 CHANGE REQUESTS

Described in Section 4.3.3.4. Once the project has been baselined, the progressive elaboration of deliverables into

activities may reveal work that was not initially part of the project baselines. This may result in a change request.

Change requests are processed for review and disposition through the Perform Integrated Change Control process

(Section 4.6).

6.2.3.5 PROJECT MANAGEMENT PLAN UPDATES

Any change to the project management plan goes through the organization’s change control process via a change

request. Components that may require a change request for the project management plan include but are not limited to:

 Schedule baseline. Described in Section 6.5.3.1. Throughout the project, work packages are progressively

elaborated into activities. This process may reveal work that was not part of the initial schedule baseline,

necessitating a change to delivery dates or other significant schedule milestones that are part of the

schedule baseline.

 Cost baseline. Described in Section 7.3.3.1. Changes to the cost baseline are incorporated in response to

approved changes in schedule activities.

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187

6.3 SEQUENCE ACTIVITIES

Sequence Activities is the process of identifying and documenting relationships among the project activities. The key

beneﬁt of this process is that it deﬁnes the logical sequence of work to obtain the greatest efﬁciency given all project

constraints. This process is performed throughout the project. The inputs, tools and techniques, and outputs of this

process are depicted in Figure 6-7. Figure 6-8 depicts the data ﬂow diagram of the process.

Figure 6-7. Sequence Activities: Inputs, Tools & Techniques, and Outputs

Figure 6-8. Sequence Activities: Data Flow Diagram

Tools & TechniquesInputs Outputs

Sequence Activities

.1 Precedence diagramming

method

.2 Dependency determination

and integration

.3 Leads and lags

.4 Project management

information system

.1 Project management plan

• Schedule management plan

• Scope baseline

.2 Project documents

• Activity attributes

• Activity list

• Assumption log

• Milestone list

.3 Enterprise environmental

factors

.4 Organizational process assets

.1 Project schedule network

diagrams

.2 Project documents updates

• Activity attributes

• Activity list

• Assumption log

• Milestone list

6.3

Sequence

Activities

Enterprise/

Organization

Project documents updates

• Activity attributes

• Activity list

• Assumption log

• Milestone list

• Project schedule

network diagrams

Project management plan

• Schedule management plan

• Scope baseline

Project documents

• Activity attributes

• Activity list

• Assumption log

• Milestone list

• Enterprise environmental factors

• Organizational process assets

Project

Documents

Project

Documents

Project

Management

Plan

188 Part 1 - Guide

Every activity except the ﬁrst and last should be connected to at least one predecessor and at least one successor

activity with an appropriate logical relationship. Logical relationships should be designed to create a realistic project

schedule. It may be necessary to use lead or lag time between activities to support a realistic and achievable project

schedule. Sequencing can be performed by using project management software or by using manual or automated

techniques. The Sequence Activities process concentrates on converting the project activities from a list to a diagram to

act as a ﬁrst step to publish the schedule baseline.

6.3.1 SEQUENCE ACTIVITIES: INPUTS

6.3.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Schedule management plan. Described in Section 6.1.3.1. The schedule management plan deﬁnes the method

used and the level of accuracy along with other criteria required to sequence activities.

 Scope baseline. Described in Section 5.4.3.1. The project WBS, deliverables, constraints, and assumptions

documented in the scope baseline are considered explicitly while sequencing activities.

6.3.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Activity attributes. Described in Section 6.2.3.2. Activity attributes may describe a necessary sequence of

events or deﬁned predecessor or successor relationships, as well as deﬁned lead and lag and logical relationships

between the activities.

 Activity list. Described in Section 6.2.3.1. The activity list contains all schedule activities required on the project

that are to be sequenced. Dependencies and other constraints for these activities can inﬂuence the sequencing

of the activities.

 Assumption log. Described in Section 4.1.3.2. Assumptions and constraints recorded in the assumption log may

inﬂuence the way activities are sequenced, the relationship between activities, and the need for leads and lags,

and may give rise to individual project risks that may impact the project schedule.

 Milestone list. Described in Section 6.2.3.3. The milestone list may have scheduled dates for speciﬁc milestones,

which may inﬂuence the way activities are sequenced.

189

6.3.1.3 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Sequence Activities process include but are not limited to:

 Government or industry standards,

 Project management information system (PMIS),

 Scheduling tools, and

 Organization work authorization systems.

6.3.1.4 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Sequence Activities process include but are not limited to:

 Portfolio and program plans and project dependencies and relationships;

 Existing formal and informal activity planning-related policies, procedures, and guidelines, such as the scheduling

methodology that is considered in developing logical relationships;

 Templates that can be used to expedite the preparation of networks for project activities. Related activity attributes

information in templates can also contain additional descriptive information useful in sequencing activities; and

 Lessons learned repository containing historical information that can help optimize the sequencing process.

6.3.2 SEQUENCE ACTIVITIES: TOOLS AND TECHNIQUES

6.3.2.1 PRECEDENCE DIAGRAMMING METHOD

The precedence diagramming method (PDM) is a technique used for constructing a schedule model in which activities

are represented by nodes and are graphically linked by one or more logical relationships to show the sequence in which

the activities are to be performed.

PDM includes four types of dependencies or logical relationships. A predecessor activity is an activity that logically

comes before a dependent activity in a schedule. A successor activity is a dependent activity that logically comes after

another activity in a schedule. These relationships are deﬁned below and are illustrated in Figure 6-9:

190 Part 1 - Guide

 Finish-to-start (FS). A logical relationship in which a successor activity cannot start until a predecessor activity

has ﬁnished. For example, installing the operating system on a PC (successor) cannot start until the PC hardware

is assembled (predecessor).

 Finish-to-finish (FF). A logical relationship in which a successor activity cannot ﬁnish until a predecessor activity

has ﬁnished. For example, writing a document (predecessor) is required to ﬁnish before editing the document

(successor) can ﬁnish.

 Start-to-start (SS). A logical relationship in which a successor activity cannot start until a predecessor activity

has started. For example, level concrete (successor) cannot begin until pour foundation (predecessor) begins.

 Start-to-finish (SF). A logical relationship in which a successor activity cannot ﬁnish until a predecessor activity

has started. For example, a new accounts payable system (successor) has to start before the old accounts

payable system can be shut down (predecessor).

In PDM, FS is the most commonly used type of precedence relationship. The SF relationship is very rarely used, but

is included to present a complete list of the PDM relationship types.

Two activities can have two logical relationships at the same time (for example, SS and FF). Multiple relationships

between the same activities are not recommended, so a decision has to be made to select the relationship with the

highest impact. Closed loops are also not recommended in logical relationships.

Figure 6-9. Precedence Diagramming Method (PDM) Relationship Types

Activity A Activity B

Activity A Activity A

Activity B Activity B

Activity A Activity B

Finish to Start (FS)

Start to Finish (SF)

Start to Start (SS) Finish to Finish (FF)

191

6.3.2.2 DEPENDENCY DETERMINATION AND INTEGRATION

Dependencies may be characterized by the following attributes: mandatory or discretionary, internal or external

(as described below). Dependency has four attributes, but two can be applicable at the same time in the following

ways: mandatory external dependencies, mandatory internal dependencies, discretionary external dependencies, or

discretionary internal dependencies.

 Mandatory dependencies. Mandatory dependencies are those that are legally or contractually required or

inherent in the nature of the work. Mandatory dependencies often involve physical limitations, such as on a

construction project, where it is impossible to erect the superstructure until after the foundation has been built,

or on an electronics project, where a prototype has to be built before it can be tested. Mandatory dependencies

are sometimes referred to as hard logic or hard dependencies. Technical dependencies may not be mandatory.

The project team determines which dependencies are mandatory during the process of sequencing the activities.

Mandatory dependencies should not be confused with assigning schedule constraints in the scheduling tool.

 Discretionary dependencies. Discretionary dependencies are sometimes referred to as preferred logic,

preferential logic, or soft logic. Discretionary dependencies are established based on knowledge of best

practices within a particular application area or some unusual aspect of the project where a speciﬁc sequence

is desired, even though there may be other acceptable sequences. For example, generally accepted best

practices recommend that during construction, the electrical work should start after ﬁnishing the plumbing

work. This order is not mandatory and both activities may occur at the same time (in parallel), but performing

the activities in sequential order reduces the overall project risk. Discretionary dependencies should be fully

documented since they can create arbitrary total ﬂoat values and can limit later scheduling options. When fast

tracking techniques are employed, these discretionary dependencies should be reviewed and considered for

modiﬁcation or removal. The project team determines which dependencies are discretionary during the process

of sequencing the activities.

192 Part 1 - Guide

 External dependencies. External dependencies involve a relationship between project activities and non-

project activities. These dependencies are usually outside of the project team’s control. For example, the

testing activity in a software project may be dependent on the delivery of hardware from an external source, or

governmental environmental hearings may need to be held before site preparation can begin on a construction

project. The project management team determines which dependencies are external during the process of

sequencing the activities.

 Internal dependencies. Internal dependencies involve a precedence relationship between project activities and

are generally inside the project team’s control. For example, if the team cannot test a machine until they assemble

it, there is an internal mandatory dependency. The project management team determines which dependencies

are internal during the process of sequencing the activities.

6.3.2.3 LEADS AND LAGS

A lead is the amount of time a successor activity can be advanced with respect to a predecessor activity. For example,

on a project to construct a new ofﬁce building, the landscaping could be scheduled to start 2 weeks prior to the scheduled

punch list completion. This would be shown as a ﬁnish-to-start with a 2-week lead as shown in Figure 6-10. Lead is often

represented as a negative value for lag in scheduling software.

Figure 6-10. Examples of Lead and Lag

Complete

Punch List

Write

Draft

Landscape

Building Lot

Edit

Draft

SS – 15 Days (Lag)FS – 2 Weeks (Lead)

��

193

A lag is the amount of time a successor activity will be delayed with respect to a predecessor activity. For example,

a technical writing team may begin editing the draft of a large document 15 days after they begin writing it. This can be

shown as a start-to-start relationship with a 15-day lag as shown in Figure 6-10. Lag can also be represented in project

schedule network diagrams as shown in Figure 6-11 in the relationship between activities H and I (as indicated by the

nomenclature SS+10 (start-to-start plus 10 days lag) even though the offset is not shown relative to a timescale).

The project management team determines the dependencies that may require a lead or a lag to accurately deﬁne the

logical relationship. The use of leads and lags should not replace schedule logic. Also, duration estimates do not include

any leads or lags. Activities and their related assumptions should be documented.

Figure 6-11. Project Schedule Network Diagram

6.3.2.4 PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS)

Described in Section 4.3.2.2. Project management information systems includes scheduling software that has the

capability to help plan, organize, and adjust the sequence of the activities; insert the logical relationships, lead and lag

values; and differentiate the different types of dependencies.

A B

C D E

Begin H F G End

I J

K L

FS + 15

SS + 10

194 Part 1 - Guide

6.3.3 SEQUENCE ACTIVITIES: OUTPUTS

6.3.3.1 PROJECT SCHEDULE NETWORK DIAGRAMS

A project schedule network diagram is a graphical representation of the logical relationships, also referred to as

dependencies, among the project schedule activities. Figure 6-11 illustrates a project schedule network diagram. A

project schedule network diagram is produced manually or by using project management software. It can include full

project details, or have one or more summary activities. A summary narrative can accompany the diagram and describe

the basic approach used to sequence the activities. Any unusual activity sequences within the network should be fully

described within the narrative.

Activities that have multiple predecessor activities indicate a path convergence. Activities that have multiple successor

activities indicate a path divergence. Activities with divergence and convergence are at greater risk as they are affected

by multiple activities or can affect multiple activities. Activity I is called a path convergence, as it has more than one

predecessor, while activity K is called a path divergence, as it has more than one successor.

6.3.3.2 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Activity attributes. Described in Section 6.2.3.2. Activity attributes may describe a necessary sequence of

events or deﬁned predecessor or successor relationships, as well as deﬁned lead and lag and logical relationships

between the activities.

 Activity list. Described in Section 6.2.3.1. The activity list may be impacted by the change in relationships

among the project activities during the sequencing activities.

 Assumption log. Described in Section 4.1.3.2. Assumptions and constraints recorded in the assumption log may

need to be updated based on the sequencing, relationship determination, and leads and lags, and may give rise

to individual project risks that may impact the project schedule.

 Milestone list. Described in Section 6.2.3.3. The scheduled dates for speciﬁc milestones may be impacted by

changes in relationships among the project activities during the sequencing activities.

��

195

6.4 ESTIMATE ACTIVITY DURATIONS

Estimate Activity Durations is the process of estimating the number of work periods needed to complete individual

activities with estimated resources. The key beneﬁt of this process is that it provides the amount of time each activity

will take to complete. This process is performed throughout the project. The inputs, tools and techniques, and outputs of

this process are depicted in Figure 6-12. Figure 6-13 depicts the data ﬂow diagram of the process.

Figure 6-12. Estimate Activity Durations: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

Estimate Activity Durations

.1 Expert judgment

.2 Analogous estimating

.3 Parametric estimating

.4 Three-point estimating

.5 Bottom-up estimating

.6 Data analysis

• Alternatives analysis

• Reserve analysis

.7 Decision making

.8 Meetings

.1 Project management plan

• Schedule management plan

• Scope baseline

.2 Project documents

• Activity attributes

• Activity list

• Assumption log

• Lessons learned register

• Milestone list

• Project team assignments

• Resource breakdown

structure

• Resource calendars

• Resource requirements

• Risk register

.3 Enterprise environmental

factors

.4 Organizational process assets

.1 Duration estimates

.2 Basis of estimates

.3 Project documents updates

• Activity attributes

• Assumption log

• Lessons learned register

196 Part 1 - Guide

• Project

charter

6.4

Estimate Activity

Durations

Enterprise/

Organization

• Duration estimates

• Basis of estimates

Project management plan

• Schedule management plan

• Scope baseline

Project documents

• Activity attributes

• Activity list

• Assumption log

• Lessons learned register

• Milestone list

• Project team assignments

• Resource breakdown structure

• Resource calendars

• Resource requirements

• Risk register

• Enterprise environmental factors

• Organizational process assets

Project

Documents

Project

Management

Plan

Project

Documents

Project document updates

• Activity attributes

• Assumption log

• Lessons learned register

Figure 6-13. Estimate Activity Durations: Data Flow Diagram

Estimating activity durations uses information from the scope of work, required resource types or skill levels,

estimated resource quantities, and resource calendars. Other factors that may inﬂuence the duration estimates include

constraints imposed on the duration, effort involved, or type of resources (e.g., ﬁxed duration, ﬁxed effort or work, ﬁxed

number of resources), as well as the schedule network analysis technique used. The inputs for the estimates of duration

originate from the person or group on the project team who is most familiar with the nature of the work in the speciﬁc

activity. The duration estimate is progressively elaborated, and the process considers the quality and availability of the

input data. For example, as more detailed and precise data are available about the project engineering and design work,

the accuracy and quality of the duration estimates improve.

197

The Estimate Activity Durations process requires an estimation of the amount of work effort required to complete

the activity and the amount of available resources estimated to complete the activity. These estimates are used to

approximate the number of work periods (activity duration) needed to complete the activity using the appropriate project

and resource calendars. In many cases, the number of resources that are expected to be available to accomplish an

activity, along with the skill proﬁciency of those resources, may determine the activity’s duration. A change to a driving

resource allocated to the activity will usually have an effect on the duration, but this is not a simple “straight-line” or

linear relationship. Sometimes, the intrinsic nature of the work (i.e., constraints imposed on the duration, effort involved,

or number of resources) will take a predetermined amount of time to complete regardless of the resource allocation

(e.g., a 24-hour stress test). Other factors for consideration when estimating duration include:

 Law of diminishing returns. When one factor (e.g., resource) used to determine the effort required to produce a

unit of work is increased while all other factors remain ﬁxed, a point will eventually be reached at which additions

of that one factor start to yield progressively smaller or diminishing increases in output.

 Number of resources. Increasing the number of resources to twice the original number of the resources does

not always reduce the time by half, as it may increase extra duration due to risk, and at some point adding

too many resources to the activity may increase duration due to knowledge transfer, learning curve, additional

coordination, and other factors involved.

 Advances in technology. This may also play an important role in determining duration estimates. For example, an

increase in the output of a manufacturing plant may be achieved by procuring the latest advances in technology,

which may impact duration and resource needs.

 Motivation of staff. The project manager also needs to be aware of Student Syndrome—or procrastination—

when people start to apply themselves only at the last possible moment before the deadline, and Parkinson’s Law

where work expands to ﬁll the time available for its completion.

All data and assumptions that support duration estimating are documented for each activity duration estimate.

198 Part 1 - Guide

6.4.1 ESTIMATE ACTIVITY DURATIONS: INPUTS

6.4.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Schedule management plan. Described in Section 6.1.3.1. The schedule management plan deﬁnes the method

used, as well as the level of accuracy and other criteria required to estimate activity durations.

 Scope baseline. Described in Section 5.4.3.1. The scope baseline includes the WBS dictionary, which contains

technical details that can inﬂuence the effort and duration estimates.

6.4.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Activity attributes. Described in Section 6.2.3.2. Activity attributes may describe deﬁned predecessor or

successor relationships, as well as deﬁned lead and lag and logical relationships between the activities that may

impact duration estimates.

 Activity list. Described in Section 6.2.3.1. The activity list contains all schedule activities required on the

project, which are to be estimated. Dependencies and other constraints for these activities can inﬂuence the

duration estimates.

 Assumption log. Described in Section 4.1.3.2. Assumptions and constraints recorded in the assumption log may

give rise to individual project risks that may impact the project schedule.

 Lessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project with regard to

effort and duration estimating can be applied to later phases in the project to improve the accuracy and precision

of effort and duration estimates.

 Milestone list. Described in Section 6.2.3.3. The milestone list may have scheduled dates for speciﬁc milestones

that may impact the duration estimates.

 Project team assignments. Described in Section 9.3.3.1. The project is staffed when the appropriate people

have been assigned to the team.

 Resource breakdown structure. Described in Section 9.2.3.3. The resource breakdown structure provides a

hierarchical structure of the identiﬁed resources by resource category and resource type.

199

 Resource calendars. Described in Section 9.2.1.2. The resource calendars inﬂuence the duration of schedule

activities due to the availability of speciﬁc resources, type of resources, and resources with speciﬁc attributes.

Resource calendars specify when and how long identiﬁed project resources will be available during the project.

 Resource requirements. Described in Section 9.2.3.1. The estimated activity resource requirements will have

an effect on the duration of the activity, since the level to which the resources assigned to the activity meet

the requirements will signiﬁcantly inﬂuence the duration of most activities. For example, if additional or lower-

skilled resources are assigned to an activity, there may be reduced efﬁciency or productivity due to increased

communication, training, and coordination needs leading to a longer duration estimate.

 Risk register. Described in Section 11.2.3.1. Individual project risks may impact resource selection and

availability. Updates to the risk register are included with project documents updates, described in Section

11.5.3.2, from Plan Risk Responses.

6.4.1.3 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Estimate Activity Durations process include but are not

limited to:

 Duration estimating databases and other reference data,

 Productivity metrics,

 Published commercial information, and

 Location of team members.

6.4.1.4 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Estimate Activity Durations process include but are not

limited to:

 Historical duration information,

 Project calendars,

 Estimating policies,

 Scheduling methodology, and

 Lessons learned repository.

200 Part 1 - Guide

6.4.2 ESTIMATE ACTIVITY DURATIONS: TOOLS AND TECHNIQUES

6.4.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge

or training in the following topics:

 Schedule development, management, and control;

 Expertise in estimating; and

 Discipline or application knowledge.

6.4.2.2 ANALOGOUS ESTIMATING

Analogous estimating is a technique for estimating the duration or cost of an activity or a project using historical

data from a similar activity or project. Analogous estimating uses parameters from a previous, similar project, such as

duration, budget, size, weight, and complexity, as the basis for estimating the same parameter or measure for a future

project. When estimating durations, this technique relies on the actual duration of previous, similar projects as the basis

for estimating the duration of the current project. It is a gross value estimating approach, sometimes adjusted for known

differences in project complexity. Analogous duration estimating is frequently used to estimate project duration when

there is a limited amount of detailed information about the project.

Analogous estimating is generally less costly and less time-consuming than other techniques, but it is also

less accurate. Analogous duration estimates can be applied to a total project or to segments of a project and may

be used in conjunction with other estimating methods. Analogous estimating is most reliable when the previous

activities are similar in fact and not just in appearance, and the project team members preparing the estimates

have the needed expertise.

6.4.2.3 PARAMETRIC ESTIMATING

Parametric estimating is an estimating technique in which an algorithm is used to calculate cost or duration based

on historical data and project parameters. Parametric estimating uses a statistical relationship between historical data

and other variables (e.g., square footage in construction) to calculate an estimate for activity parameters, such as cost,

budget, and duration.

201

Durations can be quantitatively determined by multiplying the quantity of work to be performed by the number of labor

hours per unit of work. For example, duration on a design project is estimated by the number of drawings multiplied by

the number of labor hours per drawing, or on a cable installation, the meters of cable multiplied by the number of labor

hours per meter. If the assigned resource is capable of installing 25 meters of cable per hour, the duration required to

install 1,000 meters is 40 hours (1,000 meters divided by 25 meters per hour).

This technique can produce higher levels of accuracy depending on the sophistication and underlying data built into

the model. Parametric schedule estimates can be applied to a total project or to segments of a project, in conjunction

with other estimating methods.

6.4.2.4 THREE-POINT ESTIMATING

The accuracy of single-point duration estimates may be improved by considering estimation uncertainty and risk.

Using three-point estimates helps deﬁne an approximate range for an activity’s duration:

 Most likely (tM). This estimate is based on the duration of the activity, given the resources likely to be assigned,

their productivity, realistic expectations of availability for the activity, dependencies on other participants, and

interruptions.

 Optimistic (tO). The activity duration based on analysis of the best-case scenario for the activity.

 Pessimistic (tP). The duration based on analysis of the worst-case scenario for the activity.

Depending on the assumed distribution of values within the range of the three estimates, the expected duration, tE,

can be calculated. One commonly used formula is triangular distribution:

tE = (tO + tM + tP) / 3.

Triangular distribution is used when there is insufﬁcient historical data or when using judgmental data. Duration

estimates based on three points with an assumed distribution provide an expected duration and clarify the range of

uncertainty around the expected duration.

202 Part 1 - Guide

6.4.2.5 BOTTOM-UP ESTIMATING

Bottom-up estimating is a method of estimating project duration or cost by aggregating the estimates of the lower-

level components of the WBS. When an activity’s duration cannot be estimated with a reasonable degree of conﬁdence,

the work within the activity is decomposed into more detail. The detail durations are estimated. These estimates are

then aggregated into a total quantity for each of the activity’s durations. Activities may or may not have dependencies

between them that can affect the application and use of resources. If there are dependencies, this pattern of resource

usage is reﬂected and documented in the estimated requirements of the activity.

6.4.2.6 DATA ANALYSIS

Data analysis techniques that can be used for this process include but are not limited to:

 Alternatives analysis. Alternatives analysis is used to compare various levels of resource capability or skills;

scheduling compression techniques (described in Section 6.5.2.6); different tools (manual versus automated);

and make, rent, or buy decisions regarding the resources. This allows the team to weigh resource, cost, and

duration variables to determine an optimal approach for accomplishing project work.

 Reserve analysis. Reserve analysis is used to determine the amount of contingency and management reserve

needed for the project. Duration estimates may include contingency reserves, sometimes referred to as schedule

reserves, to account for schedule uncertainty. Contingency reserves are the estimated duration within the schedule

baseline, which is allocated for identiﬁed risks that are accepted. Contingency reserves are associated with the

known-unknowns, which may be estimated to account for this unknown amount of rework. The contingency

reserve may be a percentage of the estimated activity duration or a ﬁxed number of work periods. Contingency

reserves may be separated from the individual activities and aggregated. As more precise information about the

project becomes available, the contingency reserve may be used, reduced, or eliminated. Contingency should be

clearly identiﬁed in the schedule documentation.

Estimates may also be produced for the amount of management reserve of schedule for the project. Management

reserves are a speciﬁed amount of the project budget withheld for management control purposes and are

reserved for unforeseen work that is within scope of the project. Management reserves are intended to address

the unknown-unknowns that can affect a project. Management reserve is not included in the schedule baseline,

but it is part of the overall project duration requirements. Depending on contract terms, use of management

reserves may require a change to the schedule baseline.

203

6.4.2.7 DECISION MAKING

Described in Section 5.2.2.4. Decision-making techniques that can be used in this process include but are not limited

to voting. One variation of the voting method that is often used in agile-based projects is called the ﬁst of ﬁve (also called

ﬁst to ﬁve). In this technique, the project manager asks the team to show their level of support for a decision by holding

up a closed ﬁst (indicating no support) up to ﬁve ﬁngers (indicating full support). If a team member holds up fewer than

three ﬁngers, the team member is given the opportunity to discuss any objections with the team. The project manager

continues the ﬁst-of-ﬁve process until the team achieves consensus (everyone holds up three or more ﬁngers) or agrees

to move on to the next decision.

6.4.2.8 MEETINGS

The project team may hold meetings to estimate activity durations. When using an agile approach, it is necessary

to conduct sprint or iteration planning meetings to discuss prioritized product backlog items (user stories) and decide

which of these items the team will commit to work on in the upcoming iteration. The team breaks down user stories to

low-level tasks, with estimates in hours, and then validates that the estimates are achievable based on team capacity

over the duration (iteration). This meeting is usually held on the ﬁrst day of the iteration and is attended by the product

owner, the Scrum team, and the project manager. The outcome of the meeting includes an iteration backlog, as well as

assumptions, concerns, risks, dependencies, decisions, and actions.

6.4.3 ESTIMATE ACTIVITY DURATIONS: OUTPUTS

6.4.3.1 DURATION ESTIMATES

Duration estimates are quantitative assessments of the likely number of time periods that are required to complete

an activity, a phase, or a project. Duration estimates do not include any lags as described in Section 6.3.2.3. Duration

estimates may include some indication of the range of possible results. For example:

 A range of 2 weeks ± 2 days, which indicates that the activity will take at least 8 days and not more than 12

(assuming a 5-day work week); or

 A 15% probability of exceeding 3 weeks, which indicates a high probability—85%—that the activity will take

3 weeks or less.

204 Part 1 - Guide

6.4.3.2 BASIS OF ESTIMATES

The amount and type of additional details supporting the duration estimate vary by application area. Regardless of

the level of detail, the supporting documentation should provide a clear and complete understanding of how the duration

estimate was derived.

Supporting detail for duration estimates may include:

 Documentation of the basis of the estimate (i.e., how it was developed),

 Documentation of all assumptions made,

 Documentation of any known constraints,

 Indication of the range of possible estimates (e.g., ±10%) to indicate that the duration is estimated between a

range of values),

 Indication of the conﬁdence level of the ﬁnal estimate, and

 Documentation of individual project risks inﬂuencing this estimate.

6.4.3.3 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Activity attributes. Described in Section 6.2.3.2. Activity duration estimates produced during this process are

documented as part of the activity attributes.

 Assumption log. Described in Section 4.1.3.2. This includes assumptions made in developing the duration

estimate, such as resource skill levels and availability, as well as a basis of estimates for durations. Additionally,

constraints arising out of the scheduling methodology and scheduling tool are also documented.

 Lessons learned register. Described in Section 4.4.3.1. The lessons learned register can be updated with

techniques that were efﬁcient and effective in developing effort and duration estimates.

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205

6.5 DEVELOP SCHEDULE

Develop Schedule is the process of analyzing activity sequences, durations, resource requirements, and schedule

constraints to create a schedule model for project execution and monitoring and controlling. The key beneﬁt of this

process is that it generates a schedule model with planned dates for completing project activities. This process

is performed throughout the project. The inputs, tools and techniques, and outputs of this process are depicted in

Figure 6-14. Figure 6-15 depicts the data ﬂow diagram of the process.

Figure 6-14. Develop Schedule: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

Develop Schedule

.1 Schedule network analysis

.2 Critical path method

.3 Resource optimization

.4 Data analysis

• What-if scenario analysis

• Simulation

.5 Leads and lags

.6 Schedule compression

.7 Project management

information system

.8 Agile release planning

.1 Project management plan

• Schedule management plan

• Scope baseline

.2 Project documents

• Activity attributes

• Activity list

• Assumption log

• Basis of estimates

• Duration estimates

• Lessons learned register

• Milestone list

• Project schedule network

diagrams

• Project team assignments

• Resource calendars

• Resource requirements

• Risk register

.3 Agreements

.4 Enterprise environmental

factors

.5 Organizational process assets

.1 Schedule baseline

.2 Project schedule

.3 Schedule data

.4 Project calendars

.5 Change requests

.6 Project management plan

updates

• Schedule management plan

• Cost baseline

.7 Project documents updates

• Activity attributes

• Assumption log

• Duration estimates

• Lessons learned register

• Resource requirements

• Risk register

206 Part 1 - Guide

Figure 6-15. Develop Schedule: Data Flow Diagram

• Project

charter

12.2

Conduct

Procurements

• Agreements

• Change requests

Project management plan

• Schedule management plan

• Scope baseline

Project documents

• Activity attributes

• Activity list

• Assumption log

• Basis of estimates

• Duration estimates

• Lessons learned register

• Milestone list

• Project schedule network diagrams

• Project team assignments

• Resource calendars

• Resource requirements

• Risk register

Project

Management

Plan

Project

Documents

Project

Documents

4.6

Perform

Integrated

Change Control

6.5

Develop

Schedule

Enterprise/

Organization

• Enterprise environmental factors

• Organizational process assets

• Schedule baseline

Project management plan updates

• Schedule management plan

• Cost baseline

• Project schedule

• Schedule data

• Project calendars

Project documents updates

• Activity attributes

• Assumption log

• Duration estimates

• Lessons learned register

• Resource requirements

• Risk register

Project

Management

Plan

��

207

Developing an acceptable project schedule is an iterative process. The schedule model is used to determine the

planned start and ﬁnish dates for project activities and milestones based on the best available information. Schedule

development can require the review and revision of duration estimates, resource estimates, and schedule reserves to

establish an approved project schedule that can serve as a baseline to track progress. Key steps include deﬁning the

project milestones, identifying and sequencing activities, and estimating durations. Once the activity start and ﬁnish

dates have been determined, it is common to have the project staff assigned to the activities review their assigned

activities. The staff conﬁrms that the start and ﬁnish dates present no conﬂict with resource calendars or assigned

activities on other projects or tasks and thus are still valid. The schedule is then analyzed to determine conﬂicts with

logical relationships and if resource leveling is required before the schedule is approved and baselined. Revising and

maintaining the project schedule model to sustain a realistic schedule continues throughout the duration of the project,

as described in Section 6.7.

For more speciﬁc information regarding scheduling, refer to the Practice Standard for Scheduling.

6.5.1 DEVELOP SCHEDULE: INPUTS

6.5.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Schedule management plan. Described in Section 6.1.3.1. The schedule management plan identiﬁes the

scheduling method and tool used to create the schedule and how the schedule is to be calculated.

 Scope baseline. Described in Section 5.4.3.1. The scope statement, WBS, and WBS dictionary have details about

the project deliverables that are considered when building the schedule model.

6.5.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Activity attributes. Described in Section 6.2.3.2. The activity attributes provide the details used to build the

schedule model.

 Activity list. Described in Section 6.2.3.1. The activity list identiﬁes the activities that will be included in the

schedule model.

 Assumption log. Described in Section 4.1.3.2. Assumptions and constraints recorded in the assumption log may

give rise to individual project risks that may impact the project schedule.

208 Part 1 - Guide

 Basis of estimates. Described in Section 6.4.3.2. The amount and type of additional details supporting the

duration estimate vary by application area. Regardless of the level of detail, the supporting documentation should

provide a clear and complete understanding of how the duration estimate was derived.

 Duration estimates. Described in Section 6.4.3.1. The duration estimates contain the quantitative assessments

of the likely number of work periods that will be required to complete an activity. This will be used to calculate

the schedule.

 Lessons learned. Described in Section 4.4.3.1. Lessons learned earlier in the project with regard to developing

the schedule model can be applied to later phases in the project to improve the validity of the schedule model.

 Milestone list. Described in Section 6.2.3.3. The milestone list has scheduled dates for speciﬁc milestones.

 Project schedule network diagrams. Described in Section 6.3.3.1. The project schedule network diagrams

contain the logical relationships of predecessors and successors that will be used to calculate the schedule.

 Project team assignments. Described in Section 9.3.3.1. The project team assignments specify which resources

are assigned to each activity.

 Resource calendars. Described in Sections 9.2.1.2. The resource calendars contain information on the

availability of resources during the project.

 Resource requirements. Described in Section 9.2.3.1. The activity resource requirements identify the types and

quantities of resources required for each activity used to create the schedule model.

 Risk register. Described in Section 11.2.3.1. The risk register provides the details of all identiﬁed risks, and their

characteristics, that affect the schedule model. Risk information relevant to the schedule is reﬂected in schedule

reserves using the expected or mean risk impact.

6.5.1.3 AGREEMENTS

Described in Section 12.2.3.2. Vendors may have an input to the project schedule as they develop the details of how

they will perform the project work to meet contractual commitments.

209

6.5.1.4 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Develop Schedule process include but are not limited to:

 Government or industry standards, and

 Communication channels.

6.5.1.5 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Develop Schedule process include but are not limited to:

 Scheduling methodology containing the policies governing schedule model development and maintenance,

and

 Project calendar(s).

6.5.2 DEVELOP SCHEDULE: TOOLS AND TECHNIQUES

6.5.2.1 SCHEDULE NETWORK ANALYSIS

Schedule network analysis is the overarching technique used to generate the project schedule model. It employs

several other techniques such as critical path method (described in Section 6.5.2.2), resource optimization techniques

(described in Section 6.5.2.3), and modeling techniques (described in Section 6.5.2.4). Additional analysis includes but

is not limited to:

 Assessing the need to aggregate schedule reserves to reduce the probability of a schedule slip when multiple

paths converge at a single point in time or when multiple paths diverge from a single point in time, to reduce the

probability of a schedule slip.

 Reviewing the network to see if the critical path has high-risk activities or long lead items that would necessitate

use of schedule reserves or the implementation of risk responses to reduce the risk on the critical path.

Schedule network analysis is an iterative process that is employed until a viable schedule model is developed.

��

210 Part 1 - Guide

6.5.2.2 CRITICAL PATH METHOD

The critical path method is used to estimate the minimum project duration and determine the amount of schedule

ﬂexibility on the logical network paths within the schedule model. This schedule network analysis technique calculates

the early start, early ﬁnish, late start, and late ﬁnish dates for all activities without regard for any resource limitations

by performing a forward and backward pass analysis through the schedule network, as shown in Figure 6-16. In this

example, the longest path includes activities A, C, and D, and therefore the sequence of A-C-D is the critical path.

The critical path is the sequence of activities that represents the longest path through a project, which determines

the shortest possible project duration. The longest path has the least total ﬂoat—usually zero. The resulting early

and late start and ﬁnish dates are not necessarily the project schedule; rather they indicate the time periods within

which the activity could be executed, using the parameters entered in the schedule model for activity durations, logical

relationships, leads, lags, and other known constraints. The critical path method is used to calculate the critical path(s)

and the amount of total and free ﬂoat or schedule ﬂexibility on the logical network paths within the schedule model.

On any network path, the total ﬂoat or schedule ﬂexibility is measured by the amount of time that a schedule

activity can be delayed or extended from its early start date without delaying the project ﬁnish date or violating a

schedule constraint. A critical path is normally characterized by zero total ﬂoat on the critical path. As implemented

with the precedence diagramming method sequencing, critical paths may have positive, zero, or negative total ﬂoat

depending on the constraints applied. Positive total ﬂoat is caused when the backward pass is calculated from a

schedule constraint that is later than the early ﬁnish date that has been calculated during forward pass calculation.

Negative total ﬂoat is caused when a constraint on the late dates is violated by duration and logic. Negative ﬂoat

analysis is a technique that helps to ﬁnd possible accelerated ways of bringing a delayed schedule back on track.

Schedule networks may have multiple near-critical paths. Many software packages allow the user to deﬁne the

parameters used to determine the critical path(s). Adjustments to activity durations (when more resources or less

scope can be arranged), logical relationships (when the relationships were discretionary to begin with), leads and

lags, or other schedule constraints may be necessary to produce network paths with a zero or positive total ﬂoat.

Once the total ﬂoat and the free ﬂoat have been calculated, the free ﬂoat is the amount of time that a schedule

activity can be delayed without delaying the early start date of any successor or violating a schedule constraint. For

example the free ﬂoat for Activity B, in Figure 6-16, is 5 days.

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211

Critical Path Link

Non-Critical Path Link

Activity

Node

Start Finish

155

105

61015

6015

6510

11515

16 15 30

16030

Activity Name

Early

Start Duration Early

Finish

Late

Start

Total

Float

Late

Finish

Path A–B–D = 25

Path A–C–D = 30

(Critical Path)

KEY

NOTE: This example uses the accepted convention of the project

starting on day 1 for calculating start and finish dates. There are

other accepted conventions that may be used.

Figure 6-16. Example of Critical Path Method

6.5.2.3 RESOURCE OPTIMIZATION

Resource optimization is used to adjust the start and ﬁnish dates of activities to adjust planned resource use to be

equal to or less than resource availability. Examples of resource optimization techniques that can be used to adjust the

schedule model due to demand and supply of resources include but are not limited to:

 Resource leveling. A technique in which start and ﬁnish dates are adjusted based on resource constraints with

the goal of balancing the demand for resources with the available supply. Resource leveling can be used when

shared or critically required resources are available only at certain times or in limited quantities, or are over-

allocated, such as when a resource has been assigned to two or more activities during the same time period (as

shown in Figure 6-17), or there is a need to keep resource usage at a constant level. Resource leveling can often

cause the original critical path to change. Available ﬂoat is used for leveling resources. Consequently, the critical

path through the project schedule may change.

 Resource smoothing. A technique that adjusts the activities of a schedule model such that the requirements for

resources on the project do not exceed certain predeﬁned resource limits. In resource smoothing, as opposed to

resource leveling, the project’s critical path is not changed and the completion date may not be delayed. In other

words, activities may only be delayed within their free and total ﬂoat. Resource smoothing may not be able to

optimize all resources.

212 Part 1 - Guide

Figure 6-17. Resource Leveling

Start

Activity A Tom: 8 hrs

Sue: 8 hrs

Activity B Sue: 8 hrs

Activity C Tom: 8 hrs

Tom: 8 hrs

Sue: 16 hrs

Tom: 8 hrs

Day

ay 3Day 1

Start

Activity A Tom: 8 hrs

Sue: 8 hrs

Activity B Sue: 8 hrs

Activity C Tom: 8 hrs

Tom: 8 hrs

Sue: 8 hrs

Sue: 8 hrsTom: 8 hrs

Day

ay 3Day 1

Activities Before Resource Leveling

Activities After Resource Leveling

213

6.5.2.4 DATA ANALYSIS

Data analysis techniques that can be used for this process include but are not limited to:

 What-if scenario analysis. What-if scenario analysis is the process of evaluating scenarios in order to predict

their effect, positive or negative, on project objectives. This is an analysis of the question, “What if the situation

represented by scenario X happens?” A schedule network analysis is performed using the schedule to compute

the different scenarios, such as delaying a major component delivery, extending speciﬁc engineering durations,

or introducing external factors, such as a strike or a change in the permit process. The outcome of the what-if

scenario analysis can be used to assess the feasibility of the project schedule under different conditions, and in

preparing schedule reserves and response plans to address the impact of unexpected situations.

 Simulation. Simulation models the combined effects of individual project risks and other sources of uncertainty

to evaluate their potential impact on achieving project objectives. The most common simulation technique is

Monte Carlo analysis (see Section 11.4.2.5), in which risks and other sources of uncertainty are used to calculate

possible schedule outcomes for the total project. Simulation involves calculating multiple work package durations

with different sets of activity assumptions, constraints, risks, issues, or scenarios using probability distributions

and other representations of uncertainty (see Section 11.4.2.4). Figure 6-18 shows a probability distribution for a

project with the probability of achieving a certain target date (i.e., project ﬁnish date). In this example, there is a

10% probability that the project will ﬁnish on or before the target date of May 13, while there is a 90% probability

of completing the project by May 28.

214 Part 1 - Guide

Project Finish Date

0.08

0.07

0.06

0.05

0.04

0.03

0.02

0.01

0.00

100.0%

87.5%

75.0%

62.5%

50.0%

37.5%

25.0%

12.5%

0.0%

10.0%

05/28/17 19:4505/13/2017 20:30

80.0%10.0%

05/05/2017 05/10/2017 05/15/2017 05/20/2017 05/25/2017 05/30/2017 06/04/2017 06/09/2017 06/14/2017

Figure 6-18. Example Probability Distribution of a Target Milestone

For more information on how Monte Carlo simulation is used for schedule models, see the Practice Standard

for Scheduling.

6.5.2.5 LEADS AND LAGS

Described in Section 6.3.2.3. Leads and lags are reﬁnements applied during network analysis to develop a viable

schedule by adjusting the start time of the successor activities. Leads are used in limited circumstances to advance a

successor activity with respect to the predecessor activity, and lags are used in limited circumstances where processes

require a set period of time to elapse between the predecessors and successors without work or resource impact.

215

6.5.2.6 SCHEDULE COMPRESSION

Schedule compression techniques are used to shorten or accelerate the schedule duration without reducing the

project scope in order to meet schedule constraints, imposed dates, or other schedule objectives. A helpful technique

is the negative ﬂoat analysis. The critical path is the one with the least ﬂoat. Due to violating a constraint or imposed

date, the total ﬂoat can become negative. Schedule compression techniques are compared in Figure 6-19 and include:

 Crashing. A technique used to shorten the schedule duration for the least incremental cost by adding resources.

Examples of crashing include approving overtime, bringing in additional resources, or paying to expedite delivery

to activities on the critical path. Crashing works only for activities on the critical path where additional resources

will shorten the activity’s duration. Crashing does not always produce a viable alternative and may result in

increased risk and/or cost.

 Fast tracking. A schedule compression technique in which activities or phases normally done in sequence

are performed in parallel for at least a portion of their duration. An example is constructing the foundation for a

building before completing all of the architectural drawings. Fast tracking may result in rework and increased

risk. Fast tracking only works when activities can be overlapped to shorten the project duration on the critical

path. Using leads in case of schedule acceleration usually increases coordination efforts between the activities

concerned and increases quality risk. Fast tracking may also increase project costs.

Figure 6-19. Schedule Compression Comparison

Normal

Crashing

Fast

Tracking

12345

4 5 6 7 8

7 8 9 10 11

21 3

4 5 6 7

88 9 10

6 7 8 9 10

11 12 13 14 15

High Risk

High Cost

216 Part 1 - Guide

6.5.2.7 PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS)

Described in Section 4.3.2.2. Project management information systems include scheduling software that expedites

the process of building a schedule model by generating start and ﬁnish dates based on the inputs of activities, network

diagrams, resources, and activity durations.

6.5.2.8 AGILE RELEASE PLANNING

Agile release planning provides a high-level summary timeline of the release schedule (typically 3 to 6 months)

based on the product roadmap and the product vision for the product’s evolution. Agile release planning also

determines the number of iterations or sprints in the release, and allows the product owner and team to decide

how much needs to be developed and how long it will take to have a releasable product based on business goals,

dependencies, and impediments.

Since features represent value to the customer, the timeline provides a more easily understood project schedule

as it deﬁnes which feature will be available at the end of each iteration, which is exactly the depth of information the

customer is looking for.

Figure 6-20 shows the relationship among product vision, product roadmap, release planning, and iteration planning.

Figure 6-20. Relationship Between Product Vision, Release Planning, and Iteration Planning

Release 3Release 2Release 1

Release Plan

Iteration Plan

Iteration 0 Iteration 1 Iteration 2 Iteration 3 Iteration n

Feature D

(User Story 5)

Feature C

(User Story 4)

Feature B

(User Story 3)

Feature A

(User Story 2)

Feature A

(User Story 1)

5 Hours

8 Hours

4 Hours

12 Hours

Task A

Task B

Task C

Task D

Product vision drives

product roadmap

Product roadmap

drives release plans

Release plan

establishes

the iterations

Iteration plans

schedules feature

development

Tasks (estimated in

hours) created to

deliver user stories

Prioritized features

delivered by user

stories (estimated

in story points)

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217

6.5.3 DEVELOP SCHEDULE: OUTPUTS

6.5.3.1 SCHEDULE BASELINE

A schedule baseline is the approved version of a schedule model that can be changed only through formal change

control procedures and is used as a basis for comparison to actual results. It is accepted and approved by the appropriate

stakeholders as the schedule baseline with baseline start dates and baseline ﬁnish dates. During monitoring and

controlling, the approved baseline dates are compared to the actual start and ﬁnish dates to determine if variances have

occurred. The schedule baseline is a component of the project management plan.

6.5.3.2 PROJECT SCHEDULE

The project schedule is an output of a schedule model that presents linked activities with planned dates, durations,

milestones, and resources. At a minimum, the project schedule includes a planned start date and planned ﬁnish date

for each activity. If resource planning is done at an early stage, the project schedule remains preliminary until resource

assignments have been conﬁrmed and scheduled start and ﬁnish dates are established. This process usually occurs no

later than the completion of the project management plan (Section 4.2.3.1). A target project schedule model may also

be developed with a deﬁned target start and target ﬁnish for each activity. The project schedule may be presented in

summary form, sometimes referred to as the master schedule or milestone schedule, or presented in detail. Although

a project schedule model can be presented in tabular form, it is more often presented graphically, using one or more of

the following formats:

 Bar charts. Also known as Gantt charts, bar charts represent schedule information where activities are listed

on the vertical axis, dates are shown on the horizontal axis, and activity durations are shown as horizontal

bars placed according to start and ﬁnish dates. Bar charts are relatively easy to read and are commonly used.

Depending on the audience, ﬂoat can be depicted or not. For control and management communications, the

broader, more comprehensive summary activity is used between milestones or across multiple interdependent

work packages and is displayed in bar chart reports. An example is the summary schedule portion of Figure 6-21

that is presented in a WBS-structured format.

218 Part 1 - Guide

 Milestone charts. These charts are similar to bar charts, but only identify the scheduled start or completion of

major deliverables and key external interfaces. An example is the milestone schedule portion of Figure 6-21.

 Project schedule network diagrams. These diagrams are commonly presented in the activity-on-node

diagram format showing activities and relationships without a time scale, sometimes referred to as a pure

logic diagram, as shown in Figure 6-11, or presented in a time-scaled schedule network diagram format that

is sometimes called a logic bar chart, as shown for the detailed schedule in Figure 6-21. These diagrams, with

activity date information, usually show both the project network logic and the project’s critical path schedule

activities. This example also shows how each work package is planned as a series of related activities.

Another presentation of the project schedule network diagram is a time-scaled logic diagram. These diagrams

include a time scale and bars that represent the duration of activities with the logical relationships. They are

optimized to show the relationships between activities where any number of activities may appear on the

same line of the diagram in sequence.

Figure 6-21 shows schedule presentations for a sample project being executed, with the work in progress reported

through as-of date or status date. For a simple project schedule model, Figure 6-21 reﬂects schedule presentations in

the forms of (1) a milestone schedule as a milestone chart, (2) a summary schedule as a bar chart, and (3) a detailed

schedule as a project schedule linked bar chart diagram. Figure 6-21 also visually shows the relationships among the

different levels of detail of the project schedule.

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219

Project Schedule Time Frame

Period 5Period 1Period 2Period 3

Activity

Identifier

1.1.MB Begin New Product Z

Period 4

Calendar

units

Calendar

units

Calendar

units

Complete Component 1

Complete Component 2

Finish New Product Z

Activity Description

Project Schedule Time Frame

Period 5Period 1Period 2Period 3

Activity

Identifier

1.1.MB 0

120

Period 4

Activity Description

1.1.1.M1

1.1.2.M1

1.1.3.MF

Complete Integration of Components 1 & 20

1.1.3.M1

Project Schedule Time Frame

Period 5Period 1Period 2Period 3

Activity

Identifier

1.1Develop and Deliver New Product Z

Period 4

Work Package 1: Component 1

Work Package 2: Component 2

Work Package 3: Integrated Components 1 and 2

120

Activity Description

1.1.1

1.1.2

1.1.3

Milestone Schedule

Data Date

Detailed Schedule

1.1.1.T

1.1

1.1.1

1.1.1.D

1.1.1.B

1.1.2.T

1.1.1.M1

1.1.2

1.1.2.D

1.1.2.B

1.1.3.M1

1.1.2.M1

1.1.3

1.1.3.G

1.1.3.T

Data Date

1.1.3.P

1.1.3.MF

Summary Schedule

Begin New Product Z

Develop and Deliver Product Z

Work Package 1: Component 1

Design Component 1

Build Component 1

Test Component 1

Complete Component 1

Work Package 2: Component 2

Design Component 2

Build Component 2

Test Component 2

Complete Component 2

Work Package 3: Integrated Components 1 and 2

Integrate Components 1 and 2 as Product Z

Complete Integration of Components 1 and 2

Test Integrated Components as Product Z

Deliver Product Z

Finish New Product Z

Figure 6-21. Project Schedule Presentations—Examples

220 Part 1 - Guide

6.5.3.3 SCHEDULE DATA

The schedule data for the project schedule model is the collection of information for describing and controlling the

schedule. The schedule data includes, at a minimum, the schedule milestones, schedule activities, activity attributes,

and documentation of all identiﬁed assumptions and constraints. The amount of additional data varies by application

area. Information frequently supplied as supporting detail includes but is not limited to:

 Resource requirements by time period, often in the form of a resource histogram;

 Alternative schedules, such as best-case or worst-case, not resource-leveled or resource-leveled, or with or

without imposed dates; and

 Applied schedule reserves.

Schedule data could also include such items as resource histograms, cash-ﬂow projections, order and delivery

schedules, or other relevant information.

6.5.3.4 PROJECT CALENDARS

A project calendar identiﬁes working days and shifts that are available for scheduled activities. It distinguishes

time periods in days or parts of days that are available to complete scheduled activities from time periods that are not

available for work. A schedule model may require more than one project calendar to allow for different work periods for

some activities to calculate the project schedule. The project calendars may be updated.

6.5.3.5 CHANGE REQUESTS

Described in Section 4.3.3.4. Modiﬁcations to the project scope or project schedule may result in change requests

to the scope baseline, and/or other components of the project management plan. Change requests are processed for

review and disposition through the Perform Integrated Change Control process (Section 4.6). Preventive actions may

include recommended changes to eliminate or reduce the probability of negative schedule variances.

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221

6.5.3.6 PROJECT MANAGEMENT PLAN UPDATES

Any change to the project management plan goes through the organization’s change control process via a change

request. Components that may require a change request for the project management plan include but are not limited to:

 Schedule management plan. Described in Section 6.1.3.1. The schedule management plan may be updated to

reﬂect a change in the way the schedule was developed and will be managed.

 Cost baseline. Described in Section 7.3.3.1. Changes to the cost baseline are incorporated in response to

approved changes in scope, resources, or cost estimates. In some cases, cost variances can be so severe that a

revised cost baseline is needed to provide a realistic basis for performance measurement.

6.5.3.7 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Activity attributes. Described in Section 6.2.3.2. Activity attributes are updated to include any revised resource

requirements and any other revisions generated by the Develop Schedule process.

 Assumption log. Described in Section 4.1.3.2. The assumption log may be updated with changes to assumptions

in duration, resource utilization, sequencing, or other information that is revealed as a result of developing the

schedule model.

 Duration estimates. Described in Section 6.4.3.1. The number and availability of resources, along with the

activity dependencies can result in a change to the duration estimates. If the resource-leveling analysis changes

the resource requirements, then the duration estimates will likely need to be updated as well.

 Lessons learned register. Described in Section 4.4.3.1. The lessons learned register can be updated with

techniques that were efﬁcient and effective in developing the schedule model.

 Resource requirements. Described in Section 9.2.3.1. Resource leveling can have a signiﬁcant effect on

preliminary estimates for the types and quantities of resources required. If the resource-leveling analysis changes

the resource requirements, then the resource requirements are updated.

 Risk register. Described in Section 11.2.3.1. The risk register may need to be updated to reﬂect opportunities or

threats perceived through scheduling assumptions.

222 Part 1 - Guide

6.6 CONTROL SCHEDULE

Control Schedule is the process of monitoring the status of the project to update the project schedule and managing

changes to the schedule baseline. The key beneﬁt of this process is that the schedule baseline is maintained throughout

the project. This process is performed throughout the project. The inputs, tools and techniques, and outputs of this

process are depicted in Figure 6-22. Figure 6-23 depicts the data ﬂow diagram of the process.

Figure 6-22. Control Schedule: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

Control Schedule

.1 Data analysis

• Earned value analysis

• Iteration burndown chart

• Performance reviews

• Trend analysis

• Variance analysis

• What-if scenario analysis

.2 Critical path method

.3 Project management

information system

.4 Resource optimization

.6 Leads and lags

.7 Schedule compression

.1 Project management plan

• Schedule management plan

• Schedule baseline

• Scope baseline

• Performance measurement

baseline

.2 Project documents

• Lessons learned register

• Project calendars

• Project schedule

• Resource calendars

• Schedule data

.3 Work performance data

.4 Organizational process assets

.1 Work performance

information

.2 Schedule forecasts

.3 Change requests

.4 Project management plan

updates

• Schedule management plan

• Schedule baseline

• Cost baseline

• Performance measurement

baseline

.5 Project documents updates

• Assumption log

• Basis of estimates

• Lessons learned register

• Project schedule

• Resource calendars

• Risk register

• Schedule data

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223

• Project

charter

4.3

Direct and

Manage

Project Work

• Work performance data

Project management plan

• Schedule management plan

• Schedule baseline

• Scope baseline

• Performance measurement baseline

Project documents

• Lessons learned register

• Project calendars

• Project schedule

• Resource calendars

• Schedule data

Project

Management

Plan

Project

Documents

Project

Documents

4.6

Perform

Integrated

Change Control

4.5

Monitor and

Control

Project Work

6.6

Control

Schedule

Enterprise/

Organization

• Organizational process assets

• Work performance information

• Change requests

• Schedule forecasts

Project documents

updates

• Assumption log

• Basis of estimates

• Lessons learned register

• Project schedule

• Resource calendars

• Risk register

• Schedule data

Project management

plan updates

• Schedule management

plan

• Schedule baseline

• Cost baseline

• Performance

measurement baseline

Project

Management

Plan

Figure 6-23. Control Schedule: Data Flow Diagram

Updating the schedule model requires knowing the actual performance to date. Any change to the schedule baseline

can only be approved through the Perform Integrated Change Control process (Section 4.6). Control Schedule, as a

component of the Perform Integrated Change Control process, is concerned with:

 Determining the current status of the project schedule,

 Inﬂuencing the factors that create schedule changes,

 Reconsidering necessary schedule reserves,

 Determining if the project schedule has changed, and

 Managing the actual changes as they occur.

224 Part 1 - Guide

When an agile approach is used, Control Schedule is concerned with:

 Determining the current status of the project schedule by comparing the total amount of work delivered and

accepted against the estimates of work completed for the elapsed time cycle;

 Conducting retrospectives (scheduled reviews to record lessons learned) for correcting processes and improving,

if required;

 Reprioritizing the remaining work plan (backlog);

 Determining the rate at which the deliverables are produced, validated, and accepted (velocity) in the given time

per iteration (agreed-upon work cycle duration, typically 2 weeks or 1 month);

 Determining that the project schedule has changed; and

 Managing the actual changes as they occur.

When work is being contracted, regular and milestone status updates from contractors and suppliers are a means of

ensuring the work is progressing as agreed upon to ensure the schedule is under control. Scheduled status reviews and

walkthroughs should be done to ensure the contractor reports are accurate and complete.

6.6.1 CONTROL SCHEDULE: INPUTS

6.6.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Schedule management plan. Described in Section 6.1.3.1. The schedule management describes the frequency

that the schedule will be updated, how reserve will be used, and how the schedule will be controlled.

 Schedule baseline. Described in Section 6.5.3.1. The schedule baseline is compared with actual results to

determine if a change, corrective action, or preventive action is necessary.

 Scope baseline. Described in Section 5.4.3.1. The project WBS, deliverables, constraints, and assumptions

documented in the scope baseline are considered explicitly when monitoring and controlling the schedule

baseline.

 Performance measurement baseline. Described in Section 4.2.3.1. When using earned value analysis the

performance measurement baseline is compared to actual results to determine if a change, corrective action, or

preventive action is necessary.

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225

6.6.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Lessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project can be applied to

later phases in the project to improve schedule control.

 Project calendars. Described in Section 6.5.3.4. A schedule model may require more than one project calendar

to allow for different work periods for some activities to calculate the schedule forecasts.

 Project schedule. Described in Section 6.5.3.2. Project schedule refers to the most recent version with notations

to indicate updates, completed activities, and started activities as of the indicated date.

 Resource calendars. Described in Section 9.2.1.2. Resource calendars show the availability of team and

physical resources.

 Schedule data. Described in Section 6.5.3.3. Schedule data will be reviewed and updated in the Control

Schedule process.

6.6.1.3 WORK PERFORMANCE DATA

Described in Section 4.3.3.2. Work performance data contains data on project status such as which activities have

started, their progress (e.g., actual duration, remaining duration, and physical percent complete), and which activities

have ﬁnished.

6.6.1.4 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Control Schedule process include but are not limited to:

 Existing formal and informal schedule control-related policies, procedures, and guidelines;

 Schedule control tools; and

 Monitoring and reporting methods to be used.

226 Part 1 - Guide

6.6.2 CONTROL SCHEDULE: TOOLS AND TECHNIQUES

6.6.2.1 DATA ANALYSIS

Data analysis techniques that can be used for this process include but are not limited to:

 Earned value analysis. Described in Section 7.4.2.2. Schedule performance measurements such as schedule

variance (SV) and schedule performance index (SPI) are used to assess the magnitude of variation to the original

schedule baseline.

 Iteration burndown chart. This chart tracks the work that remains to be completed in the iteration backlog. It

is used to analyze the variance with respect to an ideal burndown based on the work committed from iteration

planning (see Section 6.4.2.8). A forecast trend line can be used to predict the likely variance at iteration

completion and take appropriate actions during the course of the iteration. A diagonal line representing the ideal

burndown and daily actual remaining work is then plotted. A trend line is then calculated to forecast completion

based on remaining work. Figure 6-24 is an example of an iteration burndown chart.

Figure 6-24. Iteration Burndown Chart

Iteration Burndown Chart

Iteration Days

Remaining Work

300

250

200

150

100

12345678910 11 12

Actual

Remaining

Work

Ideal

Remaining

Work

Forecast

Remaining

Work

227

 Performance reviews. Performance reviews measure, compare, and analyze schedule performance against

the schedule baseline such as actual start and ﬁnish dates, percent complete, and remaining duration for work

in progress.

 Trend analysis. Described in Section 4.5.2.2. Trend analysis examines project performance over time to determine

whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding

performance to date and for comparing to future performance goals in the form of completion dates.

 Variance analysis. Variance analysis looks at variances in planned versus actual start and ﬁnish dates, planned

versus actual durations, and variances in ﬂoat. Part of variance analysis is determining the cause and degree of

variance relative to the schedule baseline (see Section 6.5.3.1), estimating the implications of those variances

for future work to completion, and deciding whether corrective or preventive action is required. For example, a

major delay on any activity not on the critical path may have little effect on the overall project schedule, while a

much shorter delay on a critical or near-critical activity may require immediate action.

 What-if scenario analysis. Described in Section 6.5.2.4. What-if scenario analysis is used to assess the various

scenarios guided by the output from the Project Risk Management processes to bring the schedule model into

alignment with the project management plan and approved baseline.

6.6.2.2 CRITICAL PATH METHOD

Described in Section 6.5.2.2. Comparing the progress along the critical path can help determine schedule status. The

variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on

near critical paths can identify schedule risk.

6.6.2.3 PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS)

Described in Section 4.3.2.2. Project management information systems include scheduling software that provides

the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule

baseline, and to forecast the effects of changes to the project schedule model.

6.6.2.4 RESOURCE OPTIMIZATION

Described in Section 6.5.2.3. Resource optimization techniques involve the scheduling of activities and the resources

required by those activities while taking into consideration both the resource availability and the project time.

228 Part 1 - Guide

6.6.2.5 LEADS AND LAGS

Adjusting leads and lags is applied during network analysis to ﬁnd ways to bring project activities that are behind into

alignment with the plan. For example, on a project to construct a new ofﬁce building, the landscaping can be adjusted to

start before the exterior work of the building is completed by increasing the lead time in the relationship, or a technical

writing team can adjust the start of editing the draft of a large document immediately after the document is written by

eliminating or decreasing lag time.

6.6.2.6 SCHEDULE COMPRESSION

Schedule compression techniques (see Section 6.5.2.6) are used to ﬁnd ways to bring project activities that are

behind into alignment with the plan by fast tracking or crashing the schedule for the remaining work.

6.6.3 CONTROL SCHEDULE: OUTPUTS

6.6.3.1 WORK PERFORMANCE INFORMATION

Described in Section 4.5.1.3. Work performance information includes information on how the project work

is performing compared to the schedule baseline. Variances in the start and ﬁnish dates and the durations can be

calculated at the work package level and control account level. For projects using earned value analysis, the (SV) and

(SPI) are documented for inclusion in work performance reports (see Section 4.5.3.1).

6.6.3.2 SCHEDULE FORECASTS

Schedule updates are forecasts of estimates or predictions of conditions and events in the project’s future based on

information and knowledge available at the time of the forecast. Forecasts are updated and reissued based on work

performance information provided as the project is executed. The information is based on the project’s past performance

and expected future performance based on corrective or preventive actions. This can include earned value performance

indicators, as well as schedule reserve information that could impact the project in the future.

229

6.6.3.3 CHANGE REQUESTS

Described in Section 4.3.3.4. Schedule variance analysis, as well as reviews of progress reports, results of performance

measures, and modiﬁcations to the project scope or project schedule, may result in change requests to the schedule

baseline, scope baseline, and/or other components of the project management plan. Change requests are processed

for review and disposition through the Perform Integrated Change Control process (Section 4.6). Preventive actions may

include recommended changes to eliminate or reduce the probability of negative schedule variances.

6.6.3.4 PROJECT MANAGEMENT PLAN UPDATES

Any change to the project management plan goes through the organization’s change control process via a change

request. Components that may require a change request for the project management plan include but are not limited to:

 Schedule management plan. Described in Section 6.1.3.1. The schedule management plan may be updated to

reﬂect a change in the way the schedule is managed.

 Schedule baseline. Described in Section 6.5.3.1. Changes to the schedule baseline are incorporated in

response to approved change requests related to change in project scope, resources, or activity duration

estimates. The schedule baseline may be updated to reﬂect changes caused by schedule compression

techniques or performance issues.

 Cost baseline. Described in Section 7.3.3.1. Changes to the cost baseline are incorporated in response to

approved changes in scope, resources, or cost estimates.

 Performance measurement baseline. Described in Section 4.2.3.1. Changes to the performance measurement

baseline are incorporated in response to approved changes in scope, schedule performance, or cost estimates.

In some cases, the performance variances can be so severe that a change request is put forth to revise the

performance measurement baseline to provide a realistic basis for performance measurement.

230 Part 1 - Guide

6.6.3.5 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Assumption log. Described in Section 4.1.3.2. Schedule performance may indicate the need to revise

assumptions on activity sequencing, durations, and productivity.

 Basis of estimates. Described in Section 6.4.3.2. Schedule performance may indicate the need to revise the

way duration estimates were developed.

 Lessons learned register. Described in Section 4.4.3.1. The lessons learned register can be updated with

techniques that were effective in maintaining the schedule, causes of variances, and corrective actions that were

used to respond to schedule variances.

 Project schedule. An updated project schedule (see Section 6.5.3.2) will be generated from the schedule model

populated with updated schedule data to reﬂect the schedule changes and manage the project.

 Resource calendars. Described in Section 9.2.1.2. Resource calendars are updated to reﬂect changes to

the utilization of resource calendars that were the result of optimizing resources, schedule compression, and

corrective or preventive actions.

 Risk register. Described in Section 11.2.3.1. The risk register and risk response plans within it, may be updated

based on the risks that may arise due to schedule compression techniques.

 Schedule data. Described in Section 6.5.3.3. New project schedule network diagrams may be developed to

display approved remaining durations and approved modiﬁcations to the schedule. In some cases, project

schedule delays can be so severe that a new target schedule with forecasted start and ﬁnish dates is needed to

provide realistic data for directing the work, measuring performance, and measuring progress.

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231

PROJECT COST MANAGEMENT

Project Cost Management includes the processes involved in planning, estimating, budgeting, ﬁnancing, funding,

managing, and controlling costs so that the project can be completed within the approved budget. The Project Cost

Management processes are:

7.1 Plan Cost Management—The process of deﬁning how the project costs will be estimated, budgeted, managed,

monitored, and controlled.

7.2 Estimate Costs—The process of developing an approximation of the monetary resources needed to complete

project work.

7.3 Determine Budget—The process of aggregating the estimated costs of individual activities or work packages to

establish an authorized cost baseline.

7.4 Control Costs—The process of monitoring the status of the project to update the project costs and manage

changes to the cost baseline.

Figure 7-1 provides an overview of the Project Cost Management processes. The Project Cost Management processes

are presented as discrete processes with deﬁned interfaces, while in practice they overlap and interact in ways that

cannot be completely detailed in the PMBOK® Guide. These processes interact with each other and with processes in

other Knowledge Areas.

On some projects, especially those of smaller scope, cost estimating and cost budgeting are tightly linked and can

be viewed as a single process that can be performed by a single person over a relatively short period of time. They are

presented here as distinct processes because the tools and techniques for each are different. The ability to inﬂuence

cost is greatest at the early stages of the project, making early scope deﬁnition critical (see Section 5.3).

232 Part 1 - Guide

.1 Inputs

.1 Project charter

.2 Project management plan

.3 Enterprise environmental

factors

.4 Organizational process assets

.2 Tools & Techniques

.1 Expert judgment

.2 Data analysis

.3 Meetings

.3 Outputs

.1 Cost management plan

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Enterprise environmental

factors

.4 Organizational process assets

.2 Tools & Techniques

.1 Expert judgment

.2 Analogous estimating

.3 Parametric estimating

.4 Bottom-up estimating

.5 Three-point estimating

.6 Data analysis

.7 Project management

information system

.8 Decision making

.3 Outputs

.1 Cost estimates

.2 Basis of estimates

.3 Project documents updates

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Business documents

.4 Agreements

.5 Enterprise environmental

factors

.6 Organizational process assets

.2 Tools & Techniques

.1 Expert judgment

.2 Cost aggregation

.3 Data analysis

.4 Historical information review

.5 Funding limit reconciliation

.6 Financing

.3 Outputs

.1 Cost baseline

.2 Project funding requirements

.3 Project documents updates

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Project funding requirements

.4 Work performance data

.5 Organizational process assets

.2 Tools & Techniques

.1 Expert judgment

.2 Data analysis

.3 To-complete performance

index

.4 Project management

information system

.3 Outputs

.1 Work performance

information

.2 Cost forecasts

.3 Change requests

.4 Project management plan

updates

.5 Project documents updates

Project Cost

Management Overview

7.2 Estimate Costs

7.1 Plan Cost

Management 7.3 Determine Budget

7.4 Control Costs

Figure 7-1. Project Cost Management Overview

233

KEY CONCEPTS FOR PROJECT COST MANAGEMENT

Project Cost Management is primarily concerned with the cost of the resources needed to complete project activities.

Project Cost Management should consider the effect of project decisions on the subsequent recurring cost of using,

maintaining, and supporting the product, service, or result of the project. For example, limiting the number of design

reviews can reduce the cost of the project but could increase the resulting product’s operating costs.

Another aspect of cost management is recognizing that different stakeholders measure project costs in different

ways and at different times. For example, the cost of an acquired item may be measured when the acquisition decision

is made or committed, the order is placed, the item is delivered, or the actual cost is incurred or recorded for project

accounting purposes. In many organizations, predicting and analyzing the prospective ﬁnancial performance of

the project’s product is performed outside of the project. In others, such as a capital facilities project, Project Cost

Management can include this work. When such predictions and analyses are included, Project Cost Management may

address additional processes and numerous general ﬁnancial management techniques such as return on investment,

discounted cash ﬂow, and investment payback analysis.

TRENDS AND EMERGING PRACTICES IN PROJECT COST MANAGEMENT

Within the practice of Project Cost Management, trends include the expansion of earned value management (EVM) to

include the concept of earned schedule (ES).

ES is an extension to the theory and practice of EVM. Earned schedule theory replaces the schedule variance

measures used in traditional EVM (earned value − planned value) with ES and actual time (AT). Using the alternate

equation for calculating schedule variance ES − AT, if the amount of earned schedule is greater than 0, then the project

is considered ahead of schedule. In other words, the project earned more than planned at a given point in time. The

schedule performance index (SPI) using earned schedule metrics is ES/AT. This indicates the efﬁciency with which work

is being accomplished. Earned schedule theory also provides formulas for forecasting the project completion date, using

earned schedule, actual time, and estimated duration.

234 Part 1 - Guide

TAILORING CONSIDERATIONS

Because each project is unique, the project manager may need to tailor the way Project Cost Management processes

are applied. Considerations for tailoring include but are not limited to:

 Knowledge management. Does the organization have a formal knowledge management and ﬁnancial database

repository that a project manager is required to use and that is readily accessible?

 Estimating and budgeting. Does the organization have existing formal or informal cost estimating and

budgeting-related policies, procedures, and guidelines?

 Earned value management. Does the organization use earned value management in managing projects?

 Use of agile approach. Does the organization use agile methodologies in managing projects? How does this

impact cost estimating?

 Governance. Does the organization have formal or informal audit and governance policies, procedures, and guidelines?

CONSIDERATIONS FOR AGILE/ADAPTIVE ENVIRONMENTS

Projects with high degrees of uncertainty or those where the scope is not yet fully deﬁned may not beneﬁt from

detailed cost calculations due to frequent changes. Instead, lightweight estimation methods can be used to generate a

fast, high-level forecast of project labor costs, which can then be easily adjusted as changes arise. Detailed estimates

are reserved for short-term planning horizons in a just-in-time fashion.

In cases where high-variability projects are also subject to strict budgets, the scope and schedule are more often

adjusted to stay within cost constraints.

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235

7.1 PLAN COST MANAGEMENT

Plan Cost Management is the process of deﬁning how the project costs will be estimated, budgeted, managed,

monitored, and controlled. The key beneﬁt of this process is that it provides guidance and direction on how the project

costs will be managed throughout the project. This process is performed once or at predeﬁned points in the project. The

inputs, tools and techniques, and outputs of this process are depicted in Figure 7-2. Figure 7-3 depicts the data ﬂow

diagram of the process.

Figure 7-2. Plan Cost Management: Inputs, Tools & Techniques, and Outputs

Figure 7-3. Plan Cost Management: Data Flow Diagram

Tools & TechniquesInputs Outputs

Plan Cost Management

.1 Expert judgment

.2 Data analysis

.3 Meetings

.1 Project charter

.2 Project management plan

• Schedule management plan

• Risk management plan

.3 Enterprise environmental

factors

.4 Organizational process assets

.1 Cost management plan

• Project

charter

7.1

Plan Cost

Management

Enterprise/

Organization

4.1

Develop Project

Charter

• Cost management plan

• Project charter

Project management plan

• Schedule management plan

• Risk management plan

• Enterprise environmental factors

• Organizational process assets

Project

Management

Plan

Project

Management

Plan

236 Part 1 - Guide

The cost management planning effort occurs early in project planning and sets the framework for each of the cost

management processes so that performance of the processes will be efﬁcient and coordinated. The cost management

processes and their associated tools and techniques are documented in the cost management plan. The cost management

plan is a component of the project management plan.

7.1.1 PLAN COST MANAGEMENT: INPUTS

7.1.1.1 PROJECT CHARTER

Described in Section 4.2.3.1. The project charter provides the preapproved ﬁnancial resources from which the detailed

project costs are developed. The project charter also deﬁnes the project approval requirements that will inﬂuence the

management of the project costs.

7.1.1.2 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Schedule management plan. Described in Section 6.1.3.1. The schedule management plan establishes the

criteria and the activities for developing, monitoring, and controlling the schedule. The schedule management

plan provides processes and controls that will impact cost estimation and management.

 Risk management plan. Described in Section 11.1.3.1. The risk management plan provides the approach for

identifying, analyzing, and monitoring risks. The risk management plan provides processes and controls that will

impact cost estimation and management.

7.1.1.3 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Plan Cost Management process include but are not

limited to:

 Organizational culture and structure can inﬂuence cost management.

 Market conditions describe what products, services, and results are available in the regional and global markets.

 Currency exchange rates for project costs are sourced from more than one country.

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237

 Published commercial information such as resource cost rate information is often available from commercial

databases that track skills and human resource costs, and provide standard costs for material and equipment.

Published seller price lists are another source of information.

 Project management information system provides alternative possibilities for managing cost.

 Productivity differences in different parts of the world can have a large inﬂuence on the cost of projects.

7.1.1.4 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Plan Cost Management process include but are not limited to:

 Financial controls procedures (e.g., time reporting, required expenditure and disbursement reviews, accounting

codes, and standard contract provisions);

 Historical information and lessons learned repository;

 Financial databases; and

 Existing formal and informal cost estimating and budgeting-related policies, procedures, and guidelines.

7.1.2 PLAN COST MANAGEMENT: TOOLS AND TECHNIQUES

7.1.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1 Expertise should be considered from individuals or groups with specialized knowledge

or training in the following topics:

 Previous similar projects;

 Information in the industry, discipline, and application area;

 Cost estimating and budgeting; and

 Earned value management.

238 Part 1 - Guide

7.1.2.2 DATA ANALYSIS

A data analysis technique that can be used for this process includes but is not limited to alternatives analysis.

Alternatives analysis can include reviewing strategic funding options such as: self-funding, funding with equity, or

funding with debt. It can also include consideration of ways to acquire project resources such as making, purchasing,

renting, or leasing.

7.1.2.3 MEETINGS

Project teams may hold planning meetings to develop the cost management plan. Attendees may include the project

manager, the project sponsor, selected project team members, selected stakeholders, anyone with responsibility for

project costs, and others as needed.

7.1.3 PLAN COST MANAGEMENT: OUTPUTS

7.1.3.1 COST MANAGEMENT PLAN

The cost management plan is a component of the project management plan and describes how the project costs will

be planned, structured, and controlled. The cost management processes and their associated tools and techniques are

documented in the cost management plan.

For example, the cost management plan can establish the following:

 Units of measure. Each unit used in measurements (such as staff hours, staff days, or weeks for time measures;

meters, liters, tons, kilometers, or cubic yards for quantity measures; or lump sum in currency form) is deﬁned

for each of the resources.

 Level of precision. This is the degree to which cost estimates will be rounded up or down (e.g., US$995.59 to

US$1,000), based on the scope of the activities and magnitude of the project.

 Level of accuracy. The acceptable range (e.g., ±10%) used in determining realistic cost estimates is speciﬁed,

and may include an amount for contingencies.

239

 Organizational procedures links. The work breakdown structure (WBS) (Section 5.4) provides the

framework for the cost management plan, allowing for consistency with the estimates, budgets, and control

of costs. The WBS component used for the project cost accounting is called the control account. Each

control account is assigned a unique code or account number(s) that links directly to the performing

organization’s accounting system.

 Control thresholds. Variance thresholds for monitoring cost performance may be speciﬁed to indicate an

agreed-upon amount of variation to be allowed before some action needs to be taken. Thresholds are typically

expressed as percentage deviations from the baseline plan.

 Rules of performance measurement. Earned value management (EVM) rules of performance measurement are

set. For example, the cost management plan may:

 Deﬁne the points in the WBS at which measurement of control accounts will be performed;

 Establish the EVM techniques (e.g., weighted milestones, ﬁxed-formula, percent complete, etc.) to be

employed; and

 Specify tracking methodologies and the EVM computation equations for calculating projected estimate at

completion (EAC) forecasts to provide a validity check on the bottom-up EAC.

 Reporting formats. The formats and frequency for the various cost reports are deﬁned.

 Additional details. Additional details about cost management activities include but are not limited to:

 Description of strategic funding choices,

 Procedure to account for ﬂuctuations in currency exchange rates, and

 Procedure for project cost recording.

For more speciﬁc information regarding earned value management, refer to the Practice Standard for Earned Value

Management – Second Edition [17].

240 Part 1 - Guide

7.2 ESTIMATE COSTS

Estimate Costs is the process of developing an approximation of the cost of resources needed to complete project

work. The key beneﬁt of this process is that it determines the monetary resources required for the project. This process

is performed periodically throughout the project as needed. The inputs, tools and techniques, and outputs of this process

are depicted in Figure 7-4. Figure 7-5 depicts the data ﬂow diagram of the process.

Figure 7-4. Estimate Costs: Inputs, Tools & Techniques, and Outputs

Figure 7-5. Estimate Costs: Data Flow Diagram

Tools & TechniquesInputs Outputs

Estimate Costs

.1 Expert judgment

.2 Analogous estimating

.3 Parametric estimating

.4 Bottom-up estimating

.5 Three-point estimating

.6 Data analysis

• Alternatives analysis

• Reserve analysis

• Cost of quality

.7 Project management

information system

.8 Decision making

• Voting

.1 Project management plan

• Cost management plan

• Quality management plan

• Scope baseline

.2 Project documents

• Lessons learned register

• Project schedule

• Resources requirements

• Risk register

.3 Enterprise environmental

factors

.4 Organizational process assets

.1 Cost estimates

.2 Basis of estimates

.3 Project documents updates

• Assumption log

• Lessons learned register

• Risk register

7.2

Estimate

Costs

Enterprise/

Organization

Project documents updates

• Assumption log

• Lessons learned register

• Risk register

• Cost estimates

• Basis of estimates

Project management plan

• Cost management plan

• Quality management.plan

• Scope baseline

Project documents

• Lessons learned register

• Project schedule

• Resources requirements

• Risk register

• Enterprise environmental factors

• Organizational process assets

Project

Documents

Project

Documents

Project

Management

Plan

��

241

A cost estimate is a quantitative assessment of the likely costs for resources required to complete the activity. It is a

prediction that is based on the information known at a given point in time. Cost estimates include the identiﬁcation and

consideration of costing alternatives to initiate and complete the project. Cost trade-offs and risks should be considered,

such as make versus buy, buy versus lease, and the sharing of resources in order to achieve optimal costs for the project.

Cost estimates are generally expressed in units of some currency (i.e., dollars, euros, yen, etc.), although in some

instances other units of measure, such as staff hours or staff days, are used to facilitate comparisons by eliminating the

effects of currency ﬂuctuations.

Cost estimates should be reviewed and reﬁned during the course of the project to reﬂect additional detail as it becomes

available and assumptions are tested. The accuracy of a project estimate will increase as the project progresses through

the project life cycle. For example, a project in the initiation phase may have a rough order of magnitude (ROM) estimate

in the range of −25% to +75%. Later in the project, as more information is known, deﬁnitive estimates could narrow

the range of accuracy to −5% to +10%. In some organizations, there are guidelines for when such reﬁnements can be

made and the degree of conﬁdence or accuracy that is expected.

Costs are estimated for all resources that will be charged to the project. This includes but is not limited to labor,

materials, equipment, services, and facilities, as well as special categories such as an inﬂation allowance, cost of

ﬁnancing, or contingency costs. Cost estimates may be presented at the activity level or in summary form.

7.2.1 ESTIMATE COSTS: INPUTS

7.2.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Cost management plan. Described in Section 7.1.3.1. The cost management plan describes estimating methods

that can be used and the level of precision and accuracy required for the cost estimate.

 Quality management plan. Described in Section 8.1.3.1. The quality management plan describes the activities

and resources necessary for the project management team to achieve the quality objectives set for the project.

242 Part 1 - Guide

 Scope baseline. Described in Section 5.4.3.1. The scope baseline includes the project scope statement, WBS,

and WBS dictionary:

 Project scope statement. The scope statement (Section 5.3.3.1) reﬂects funding constraints by period for the

expenditure of project funds or other ﬁnancial assumptions and constraints.

 Work breakdown structure. The WBS (Section 5.4.3.1) provides the relationships among all the project

deliverables and their various components.

 WBS dictionary. The WBS dictionary (Section 5.4.3.) and related detailed statements of work provide an

identiﬁcation of the deliverables and a description of the work in each WBS component required to produce

each deliverable.

7.2.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Lessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project with regard to

developing cost estimates can be applied to later phases in the project to improve the accuracy and precision of

the cost estimates.

 Project schedule. Described in Section 6.5.3.2. The schedule includes the type, quantity, and amount of time

that team and physical resources will be active on the project. The duration estimates (Section 6.4.3.1) will

affect cost estimates when resources are charged per unit of time and when there are seasonal ﬂuctuations

in costs. The schedule also provides useful information for projects that incorporate the cost of ﬁnancing

(including interest charges).

 Resource requirements. Described in Section 9.2.3.1. Resource requirements identify the types and quantities

of resources required for each work package or activity.

 Risk register. Described in Section 11.2.3.1. The risk register contains details of individual project risks that

have been identiﬁed and prioritized, and for which risk responses are required. The risk register provides detailed

information that can be used to estimate costs.

243

7.2.1.3 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Estimate Costs process include but are not limited to:

 Market conditions. These conditions describe what products, services, and results are available in the market,

from whom, and under what terms and conditions. Regional and/or global supply and demand conditions greatly

inﬂuence resource costs.

 Published commercial information. Resource cost rate information is often available from commercial

databases that track skills and human resource costs, and provide standard costs for material and equipment.

Published seller price lists are another source of information.

 Exchange rates and inflation. For large-scale projects that extend multiple years with multiple currencies, the

ﬂuctuations of currencies and inﬂation need to be understood and built into the Estimate Cost process.

7.2.1.4 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Estimate Costs process include but are not limited to:

 Cost estimating policies,

 Cost estimating templates,

 Historical information and lessons learned repository.

7.2.2 ESTIMATE COSTS: TOOLS AND TECHNIQUES

7.2.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1 Expertise should be considered from individuals or groups with specialized knowledge

or training in the following topics:

 Previous similar projects;

 Information in the industry, discipline, and application area; and

 Cost estimating methods.

244 Part 1 - Guide

7.2.2.2 ANALOGOUS ESTIMATING

Described in Section 6.4.2.2. Analogous cost estimating uses values, or attributes, of a previous project that are

similar to the current project. Values and attributes of the projects may include but are not limited to: scope, cost, budget,

duration, and measures of scale (e.g., size, weight). Comparison of these project values, or attributes, becomes the basis

for estimating the same parameter or measurement for the current project.

7.2.2.3 PARAMETRIC ESTIMATING

Described in Section 6.4.2.3. Parametric estimating uses a statistical relationship between relevant historical data

and other variables (e.g., square footage in construction) to calculate a cost estimate for project work. This technique can

produce higher levels of accuracy depending on the sophistication and underlying data built into the model. Parametric

cost estimates can be applied to a total project or to segments of a project, in conjunction with other estimating methods.

7.2.2.4 BOTTOM-UP ESTIMATING

Described in Section 6.4.2.5. Bottom-up estimating is a method of estimating a component of work. The cost

of individual work packages or activities is estimated to the greatest level of specified detail. The detailed cost

is then summarized or “rolled up” to higher levels for subsequent reporting and tracking purposes. The cost and

accuracy of bottom-up cost estimating are typically influenced by the size or other attributes of the individual

activity or work package.

7.2.2.5 THREE-POINT ESTIMATING

Described in Section 6.4.2.4. The accuracy of single-point cost estimates may be improved by considering estimation

uncertainty and risk and using three estimates to deﬁne an approximate range for an activity’s cost:

 Most likely (cM). The cost of the activity, based on realistic effort assessment for the required work and any

predicted expenses.

 Optimistic (cO). The cost based on analysis of the best-case scenario for the activity.

 Pessimistic (cP). The cost based on analysis of the worst-case scenario for the activity.

245

Depending on the assumed distribution of values within the range of the three estimates, the expected cost, cE, can

be calculated using a formula. Two commonly used formulas are triangular and beta distributions. The formulas are:

 Triangular distribution. cE = (cO + cM + cP) / 3

 Beta distribution. cE = (cO + 4cM + cP) / 6

Cost estimates based on three points with an assumed distribution provide an expected cost and clarify the range of

uncertainty around the expected cost.

7.2.2.6 DATA ANALYSIS

Data analysis techniques that can be used in the Estimate Costs process include but are not limited to:

 Alternatives analysis. Alternatives analysis is a technique used to evaluate identiﬁed options in order to select

which options or approaches to use to execute and perform the work of the project. An example would be

evaluating the cost, schedule, resource, and quality impacts of buying versus making a deliverable.

 Reserve analysis. Cost estimates may include contingency reserves (sometimes called contingency allowances)

to account for cost uncertainty. Contingency reserves are the budget within the cost baseline that is allocated for

identiﬁed risks. Contingency reserves are often viewed as the part of the budget intended to address the known-

unknowns that can affect a project. For example, rework for some project deliverables could be anticipated, while

the amount of this rework is unknown. Contingency reserves may be estimated to account for this unknown

amount of rework. Contingency reserves can be provided at any level from the speciﬁc activity to the entire

project. The contingency reserve may be a percentage of the estimated cost, a ﬁxed number, or may be developed

by using quantitative analysis methods.

As more precise information about the project becomes available, the contingency reserve may be used, reduced,

or eliminated. Contingency should be clearly identiﬁed in cost documentation. Contingency reserves are part of

the cost baseline and the overall funding requirements for the project.

 Cost of quality. Assumptions about costs of quality (Section 8.1.2.3) may be used to prepare the estimates. This

includes evaluating the cost impact of additional investment in conformance versus the cost of nonconformance.

It can also include looking at short-term cost reductions versus the implication of more frequent problems later

on in the product life cycle.

246 Part 1 - Guide

7.2.2.7 PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS)

Described in Section 4.3.2.2. The project management information system can include spreadsheets, simulation

software, and statistical analysis tools to assist with cost estimating. Such tools simplify the use of some cost-estimating

techniques and thereby facilitate rapid consideration of cost estimate alternatives.

7.2.2.8 DECISION MAKING

The decision-making techniques that can be used in the Estimate Costs process include but are not limited to voting.

Described in Section 5.2.2.4, voting is an assessment process having multiple alternatives with an expected outcome in

the form of future actions. These techniques are useful for engaging team members to improve estimate accuracy and

commitment to the emerging estimates.

7.2.3 ESTIMATE COSTS: OUTPUTS

7.2.3.1 COST ESTIMATES

Cost estimates include quantitative assessments of the probable costs required to complete project work, as well as

contingency amounts to account for identiﬁed risks, and management reserve to cover unplanned work. Cost estimates

can be presented in summary form or in detail. Costs are estimated for all resources that are applied to the cost

estimate. This includes but is not limited to direct labor, materials, equipment, services, facilities, information technology,

and special categories such as cost of ﬁnancing (including interest charges), an inﬂation allowance, exchange rates,

or a cost contingency reserve. Indirect costs, if they are included in the project estimate, can be included at the activity

level or at higher levels.

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247

7.2.3.2 BASIS OF ESTIMATES

The amount and type of additional details supporting the cost estimate vary by application area. Regardless of

the level of detail, the supporting documentation should provide a clear and complete understanding of how the cost

estimate was derived.

Supporting detail for cost estimates may include:

 Documentation of the basis of the estimate (i.e., how it was developed),

 Documentation of all assumptions made,

 Documentation of any known constraints,

 Documentation of identiﬁed risks included when estimating costs,

 Indication of the range of possible estimates (e.g., US$10,000 (±10%) to indicate that the item is expected to

cost between a range of values), and

 Indication of the conﬁdence level of the ﬁnal estimate.

7.2.3.3 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Assumption log. Described in Section 4.1.3.2. During the Cost Estimates process, new assumptions may be

made, new constraints may be identiﬁed, and existing assumptions or constraints may be revisited and changed.

The assumption log should be updated with this new information.

 Lessons learned register. Described in Section 4.4.3.1. The lessons learned register can be updated with

techniques that were efﬁcient and effective in developing cost estimates.

 Risk register. Described in Section 11.2.3.1. The risk register may be updated when appropriate risk responses

are chosen and agreed upon during the Estimate Cost process.

248 Part 1 - Guide

7.3 DETERMINE BUDGET

Determine Budget is the process of aggregating the estimated costs of individual activities or work packages to

establish an authorized cost baseline. The key beneﬁt of this process is that it determines the cost baseline against

which project performance can be monitored and controlled. This process is performed once or at predeﬁned points in

the project. The inputs, tools and techniques, and outputs of this process are depicted in Figure 7-6. Figure 7-7 depicts

the data ﬂow diagram of the process.

A project budget includes all the funds authorized to execute the project. The cost baseline is the approved version of

the time-phased project budget that includes contingency reserves, but excludes management reserves.

Figure 7-6. Determine Budget: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

Determine Budget

.1 Expert judgment

.2 Cost aggregation

.3 Data analysis

• Reserve analysis

.4 Historical information review

.5 Funding limit reconciliation

.6 Financing

.1 Project management plan

• Cost management plan

• Resource management plan

• Scope baseline

.2 Project documents

• Basis of estimates

• Cost estimates

• Project schedule

• Risk register

.3 Business documents

• Business case

• Benefits management plan

.4 Agreements

.5 Enterprise environmental

factors

.6 Organizational process assets

.1 Cost baseline

.2 Project funding requirements

.3 Project documents updates

• Cost estimates

• Project schedule

• Risk register

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249

Figure 7-7. Determine Budget: Data Flow Diagram

• Project

charter

12.2

Conduct

Procurements

• Agreements

Project management plan

• Cost management plan

• Resource management plan

• Scope baseline

Project documents

• Basis of estimates

• Cost estimates

• Project schedule

• Risk register

• Business case

• Benefits management plan

Project

Management

Plan

Project

Documents

Project

Documents

Business

Documents

7.4

Control

Costs

7.3

Determine

Budget

Enterprise/

Organization

• Enterprise environmental factors

• Organizational process assets

• Cost baseline

• Project funding

requirements

Project documents updates

• Cost estimates

• Project schedule

• Risk register

Project

Management

Plan

250 Part 1 - Guide

7.3.1 DETERMINE BUDGET: INPUTS

7.3.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Cost management plan. Described in Section 7.1.3.1. The cost management plan describes how the project

costs will be structured into the project budget.

 Resource management plan. Described in Section 9.1.3.1. The resource management plan provides information

on rates (personnel and other resources), estimation of travel costs, and other foreseen costs that are necessary

to estimate the overall project budget.

 Scope baseline. Described in Section 5.4.3.1. The scope baseline includes the project scope statement, WBS,

and WBS dictionary details for cost estimation and management.

7.3.1.2 PROJECT DOCUMENTS

Examples of project documents that can be considered as inputs for this process include but are not limited to:

 Basis of estimates. Described in Section 6.4.3.2. Supporting detail for cost estimates contained in the basis for

estimates should specify any basic assumptions dealing with the inclusion or exclusion of indirect or other costs

in the project budget.

 Cost estimates. Described in Section 7.2.3.1. Cost estimates for each activity within a work package are

aggregated to obtain a cost estimate for each work package.

 Project schedule. Described in Section 6.5.3.2. The project schedule includes planned start and ﬁnish dates

for the project’s activities, milestones, work packages, and control accounts. This information can be used to

aggregate costs to the calendar periods in which the costs are planned to be incurred.

 Risk register. Described in Section 11.2.3.1. The risk register should be reviewed to consider how to aggregate

the risk response costs. Updates to the risk register are included with project documents updates described in

Section 11.5.3.3.

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251

7.3.1.3 BUSINESS DOCUMENTS

Described in Section 1.2.6. The business documents that can be considered as inputs for this process include but

are not limited to:

 Business case. The business case identiﬁes the critical success factors for the project, including ﬁnancial

success factors.

 Benefits management plan. The beneﬁts management plan includes the target beneﬁts, such as net present

value calculations, timeframe for realizing beneﬁts, and the metrics associated with the beneﬁts.

7.3.1.4 AGREEMENTS

Described in Section 12.2.3.2. Applicable agreement information and costs relating to products, services, or results

that have been or will be purchased are included when determining the budget.

7.3.1.5 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Estimate Costs process include but are not limited

to exchange rates. For large-scale projects that extend multiple years with multiple currencies, the ﬂuctuations of

currencies need to be understood and built into the Determine Budget process.

7.3.1.6 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Determine Budget process include but are not limited to:

 Existing formal and informal cost budgeting-related policies, procedures, and guidelines;

 Historical information and lessons learned repository.

 Cost budgeting tools; and

 Reporting methods.

252 Part 1 - Guide

7.3.2 DETERMINE BUDGET: TOOLS AND TECHNIQUES

7.3.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge

or training in the following topics:

 Previous similar projects;

 Information in the industry, discipline, and application area;

 Financial principles; and

 Funding requirement and sources.

7.3.2.2 COST AGGREGATION

Cost estimates are aggregated by work packages in accordance with the WBS. The work package cost estimates

are then aggregated for the higher component levels of the WBS (such as control accounts) and, ultimately, for the

entire project.

7.3.2.3 DATA ANALYSIS

A data analysis technique that can be used in the Determine Budget process includes but is not limited to reserve

analysis, which can establish the management reserves for the project. Management reserves are an amount of

the project budget withheld for management control purposes and are reserved for unforeseen work that is within

scope of the project. Management reserves are intended to address the unknown unknowns that can affect a project.

The management reserve is not included in the cost baseline but is part of the overall project budget and funding

requirements. When an amount of management reserves is used to fund unforeseen work, the amount of management

reserve used is added to the cost baseline, thus requiring an approved change to the cost baseline.

253

7.3.2.4 HISTORICAL INFORMATION REVIEW

Reviewing historical information can assist in developing parametric estimates or analogous estimates. Historical

information may include project characteristics (parameters) to develop mathematical models to predict total project

costs. Such models may be simple (e.g., residential home construction is based on a certain cost per square foot of space)

or complex (e.g., one model of software development costing uses multiple separate adjustment factors, each of which

has numerous points within it).

Both the cost and accuracy of analogous and parametric models can vary widely. They are most likely to be

reliable when:

 Historical information used to develop the model is accurate,

 Parameters used in the model are readily quantiﬁable, and

 Models are scalable, such that they work for large projects, small projects, and phases of a project.

7.3.2.5 FUNDING LIMIT RECONCILIATION

The expenditure of funds should be reconciled with any funding limits on the commitment of funds for the project.

A variance between the funding limits and the planned expenditures will sometimes necessitate the rescheduling of

work to level out the rate of expenditures. This is accomplished by placing imposed date constraints for work into

the project schedule.

7.3.2.6 FINANCING

Financing entails acquiring funding for projects. It is common for long-term infrastructure, industrial, and public

services projects to seek external sources of funds. If a project is funded externally, the funding entity may have certain

requirements that are required to be met.

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254 Part 1 - Guide

7.3.3 DETERMINE BUDGET: OUTPUTS

7.3.3.1 COST BASELINE

The cost baseline is the approved version of the time-phased project budget, excluding any management reserves,

which can only be changed through formal change control procedures. It is used as a basis for comparison to actual

results. The cost baseline is developed as a summation of the approved budgets for the different schedule activities.

Figure 7-8 illustrates the various components of the project budget and cost baseline. Cost estimates for the various

project activities, along with any contingency reserves (see Section 7.2.2.6) for these activities, are aggregated

into their associated work package costs. The work package cost estimates, along with any contingency reserves

estimated for the work packages, are aggregated into control accounts. The summation of the control accounts

make up the cost baseline. Since the cost estimates that make up the cost baseline are directly tied to the schedule

activities, this enables a time-phased view of the cost baseline, which is typically displayed in the form of an S-curve,

as is illustrated in Figure 7-9. For projects that use earned value management, the cost baseline is referred to as the

performance measurement baseline.

Management reserves (Section 7.2.2.3) are added to the cost baseline to produce the project budget. As changes

warranting the use of management reserves arise, the change control process is used to obtain approval to move the

applicable management reserve funds into the cost baseline.

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255

Figure 7-8. Project Budget Components

Figure 7-9. Cost Baseline, Expenditures, and Funding Requirements

Activity Cost

Estimates

Activity

Contingency Reserve

Work Package

Cost Estimates

Contingency

Reserve

Cost

Baseline

Control

Accounts

Management

Reserve

Project

Budget

Project Budget Component

Total Amount

BAC

Project Budget

Management Reserve

Funding Requirements

Cost Baseline

Expenditures

Time

Cumulative Values

256 Part 1 - Guide

7.3.3.2 PROJECT FUNDING REQUIREMENTS

Total funding requirements and periodic funding requirements (e.g., quarterly, annually) are derived from the cost

baseline. The cost baseline will include projected expenditures plus anticipated liabilities. Funding often occurs in

incremental amounts, and may not be evenly distributed, which appear as steps in Figure 7-9. The total funds required

are those included in the cost baseline plus management reserves, if any. Funding requirements may include the

source(s) of the funding.

7.3.3.3 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Cost estimates. Described in Section 7.2.3.1. Cost estimates are updated to record any additional information.

 Project schedule. Described in Section 6.5.3.2. Estimated costs for each activity may be recorded as part of the

project schedule.

 Risk register. Described in Section 11.2.3.1. New risks identiﬁed during this process are recorded in the risk

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257

7.4 CONTROL COSTS

Control Costs is the process of monitoring the status of the project to update the project costs and managing changes

to the cost baseline. The key beneﬁt of this process is that the cost baseline is maintained throughout the project. This

process is performed throughout the project. The inputs, tools and techniques, and outputs of this process are depicted

in Figure 7-10. Figure 7-11 depicts the data ﬂow diagram of the process.

Figure 7-10. Control Costs: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

Control Costs

.1 Expert judgment

.2 Data analysis

• Earned value analysis

• Variance analysis

• Trend analysis

• Reserve analysis

.3 To-complete performance

index

.4 Project management

information system

.1 Project management plan

• Cost management plan

• Cost baseline

• Performance measurement

baseline

.2 Project documents

• Lessons learned register

.3 Project funding requirements

.4 Work performance data

.5 Organizational process assets

.1 Work performance

information

.2 Cost forecasts

.3 Change requests

.4 Project management plan

updates

• Cost management plan

• Cost baseline

• Performance measurement

baseline

.5 Project documents updates

• Assumption log

• Basis of estimates

• Cost estimates

• Lessons learned register

• Risk register

258 Part 1 - Guide

• Project

charter

4.3

Direct and

Manage

Project Work

7.3

Determine

Budget

• Work performance data

Project management plan

• Cost management plan

• Cost baseline

• Performance measurement baseline

• Lessons learned register

• Project funding requirements

Project

Management

Plan

Project

Documents

Project

Documents

4.6

Perform

Integrated

Change Control

4.5

Monitor and

Control

Project Work

7.4

Control

Costs

Enterprise/

Organization

• Organizational process assets

• Change requests

• Cost forecasts

• Work performance information

Project management

plan updates

• Cost management plan

• Cost baseline

• Performance measurement baseline

Project documents updates

• Assumption log

• Basis of estimates

• Cost estimates

• Lessons learned register

• Risk register

Project

Management

Plan

Figure 7-11. Control Costs: Data Flow Diagram

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259

Updating the budget requires knowledge of the actual costs spent to date. Any increase to the authorized budget can

only be approved through the Perform Integrated Change Control process (Section 4.6). Monitoring the expenditure of

funds without regard to the value of work being accomplished for such expenditures has little value to the project, other

than to track the outﬂow of funds. Much of the effort of cost control involves analyzing the relationship between the

consumption of project funds and the work being accomplished for such expenditures. The key to effective cost control

is the management of the approved cost baseline.

Project cost control includes:

 Inﬂuencing the factors that create changes to the authorized cost baseline;

 Ensuring that all change requests are acted on in a timely manner;

 Managing the actual changes when and as they occur;

 Ensuring that cost expenditures do not exceed the authorized funding by period, by WBS component, by activity,

and in total for the project;

 Monitoring cost performance to isolate and understand variances from the approved cost baseline;

 Monitoring work performance against funds expended;

 Preventing unapproved changes from being included in the reported cost or resource usage;

 Informing appropriate stakeholders of all approved changes and associated cost; and

 Bringing expected cost overruns within acceptable limits.

7.4.1 CONTROL COSTS: INPUTS

7.4.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Cost management plan. Described in Section 7.1.3.1. The cost management plan describes how the project

costs will be managed and controlled.

 Cost baseline. Described in Section 7.3.3.1. The cost baseline is compared with actual results to determine if a

change, corrective action, or preventive action is necessary.

 Performance measurement baseline. Described in Section 4.2.3.1. When using earned value analysis, the

performance measurement baseline is compared to actual results to determine if a change, corrective action, or

preventive action is necessary.

260 Part 1 - Guide

7.4.1.2. PROJECT DOCUMENTS

Examples of project documents that can be considered as inputs for this process include but are not limited to the

lessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project can be applied to later

phases in the project to improve cost control.

7.4.1.3 PROJECT FUNDING REQUIREMENTS

Described in Section 7.3.3.2. The project funding requirements include projected expenditures plus anticipated liabilities.

7.4.1.4 WORK PERFORMANCE DATA

Described in Section 4.3.3.2. Work performance data contains data on project status such as which costs have been

authorized, incurred, invoiced, and paid.

7.4.1.5 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Control Costs process include but are not limited to:

 Existing formal and informal cost control-related policies, procedures, and guidelines;

 Cost control tools; and

 Monitoring and reporting methods to be used.

7.4.2 CONTROL COSTS: TOOLS AND TECHNIQUES

7.4.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Examples of expert judgment during the Control Costs process include but are not

limited to:

 Variance analysis,

 Earned value analysis,

 Forecasting, and

 Financial analysis.

261

7.4.2.2 DATA ANALYSIS

Data analysis techniques that can be used to control costs include but are not limited to:

 Earned value analysis (EVA). Earned value analysis compares the performance measurement baseline to the

actual schedule and cost performance. EVM integrates the scope baseline with the cost baseline and schedule

baseline to form the performance measurement baseline. EVM develops and monitors three key dimensions for

each work package and control account:

 Planned value. Planned value (PV) is the authorized budget assigned to scheduled work. It is the authorized

budget planned for the work to be accomplished for an activity or work breakdown structure (WBS) component,

not including management reserve. This budget is allocated by phase over the life of the project, but at a given

point in time, planned value deﬁnes the physical work that should have been accomplished. The total of the

PV is sometimes referred to as the performance measurement baseline (PMB). The total planned value for the

project is also known as budget at completion (BAC).

 Earned value. Earned value (EV) is a measure of work performed expressed in terms of the budget authorized

for that work. It is the budget associated with the authorized work that has been completed. The EV being

measured needs to be related to the PMB, and the EV measured cannot be greater than the authorized

PV budget for a component. The EV is often used to calculate the percent complete of a project. Progress

measurement criteria should be established for each WBS component to measure work in progress. Project

managers monitor EV, both incrementally to determine current status and cumulatively to determine the long-

term performance trends.

 Actual cost. Actual cost (AC) is the realized cost incurred for the work performed on an activity during a

speciﬁc time period. It is the total cost incurred in accomplishing the work that the EV measured. The AC

needs to correspond in deﬁnition to what was budgeted in the PV and measured in the EV (e.g., direct hours

only, direct costs only, or all costs including indirect costs). The AC will have no upper limit; whatever is spent

to achieve the EV will be measured.

262 Part 1 - Guide

 Variance analysis. Described in Section 4.5.2.2. Variance analysis, as used in EVM, is the explanation (cause,

impact, and corrective actions) for cost (CV = EV – AC), schedule (SV = EV – PV), and variance at completion

(VAC = BAC – EAC) variances. Cost and schedule variances are the most frequently analyzed measurements.

For projects not using formal earned value analysis, similar variance analyses can be performed by comparing

planned cost against actual cost to identify variances between the cost baseline and actual project performance.

Further analysis can be performed to determine the cause and degree of variance relative to the schedule

baseline and any corrective or preventive actions needed. Cost performance measurements are used to assess

the magnitude of variation to the original cost baseline. An important aspect of project cost control includes

determining the cause and degree of variance relative to the cost baseline (see Section 7.3.3.1) and deciding

whether corrective or preventive action is required. The percentage range of acceptable variances will tend to

decrease as more work is accomplished. Examples of variance analysis include but are not limited to:

 Schedule variance. Schedule variance (SV) is a measure of schedule performance expressed as the difference

between the earned value and the planned value. It is the amount by which the project is ahead or behind

the planned delivery date, at a given point in time. It is a measure of schedule performance on a project. It

is equal to the earned value (EV) minus the planned value (PV). The EVA schedule variance is a useful metric

in that it can indicate when a project is falling behind or is ahead of its baseline schedule. The EVA schedule

variance will ultimately equal zero when the project is completed because all of the planned values will have

been earned. Schedule variance is best used in conjunction with critical path method (CPM) scheduling and

risk management. Equation: SV = EV – PV.

 Cost variance. Cost variance (CV) is the amount of budget deﬁcit or surplus at a given point in time, expressed

as the difference between earned value and the actual cost. It is a measure of cost performance on a project.

It is equal to the earned value (EV) minus the actual cost (AC). The cost variance at the end of the project will

be the difference between the budget at completion (BAC) and the actual amount spent. The CV is particularly

critical because it indicates the relationship of physical performance to the costs spent. Negative CV is often

difﬁcult for the project to recover. Equation: CV = EV – AC.

263

 Schedule performance index. The schedule performance index (SPI) is a measure of schedule efﬁciency

expressed as the ratio of earned value to planned value. It measures how efﬁciently the project team is

accomplishing the work. It is sometimes used in conjunction with the cost performance index (CPI) to forecast

the ﬁnal project completion estimates. An SPI value less than 1.0 indicates less work was completed than

was planned. An SPI greater than 1.0 indicates that more work was completed than was planned. Since the

SPI measures all project work, the performance on the critical path also needs to be analyzed to determine

whether the project will ﬁnish ahead of or behind its planned ﬁnish date. The SPI is equal to the ratio of the

EV to the PV. Equation: SPI = EV/PV.

 Cost performance index. The cost performance index (CPI) is a measure of the cost efﬁciency of budgeted

resources, expressed as a ratio of earned value to actual cost. It is considered the most critical EVA metric

and measures the cost efﬁciency for the work completed. A CPI value of less than 1.0 indicates a cost overrun

for work completed. A CPI value greater than 1.0 indicates a cost underrun of performance to date. The CPI is

equal to the ratio of the EV to the AC. Equation: CPI = EV/AC.

 Trend analysis. Described in Section 4.5.2.2. Trend analysis examines project performance over time to determine

if performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding

performance to date and for comparison to future performance goals in the form of BAC versus estimate at

completion (EAC) and completion dates. Examples of the trend analysis techniques include but are not limited to:

 Charts. In earned value analysis, three parameters of planned value, earned value, and actual cost can be

monitored and reported on both a period-by-period basis (typically weekly or monthly) and on a cumulative

basis. Figure 7-12 uses S-curves to display EV data for a project that is performing over budget and behind

the schedule.

264 Part 1 - Guide

Figure 7-12. Earned Value, Planned Value, and Actual Costs

 Forecasting. As the project progresses, the project team may develop a forecast for the estimate at completion

(EAC) that may differ from the budget at completion (BAC) based on the project performance. If it becomes

obvious that the BAC is no longer viable, the project manager should consider the forecasted EAC. Forecasting

the EAC involves making projections of conditions and events in the project’s future based on current

performance information and other knowledge available at the time of the forecast. Forecasts are generated,

updated, and reissued based on work performance data (Section 4.3.3.2) that is provided as the project is

executed. The work performance information covers the project’s past performance and any information that

could impact the project in the future.

EACs are typically based on the actual costs incurred for work completed, plus an estimate to complete (ETC)

the remaining work. It is incumbent on the project team to predict what it may encounter to perform the ETC,

based on its experience to date. Earned value analysis works well in conjunction with manual forecasts of the

required EAC costs. The most common EAC forecasting approach is a manual, bottom-up summation by the

project manager and project team.

The project manager’s bottom-up EAC method builds upon the actual costs and experience incurred for

the work completed, and requires a new estimate to complete the remaining project work. Equation: EAC =

AC + Bottom-up ETC.

BAC

ETC

Project Budget

Management Reserve

Planned

Value (PV)

Earned

Value (EV)

Actual

Cost (AC)

EAC

Time

Cumulative Cost

Data Date

265

The project manager’s manual EAC is quickly compared with a range of calculated EACs representing

various risk scenarios. When calculating EAC values, the cumulative CPI and SPI values are typically

used. While EVM data quickly provide many statistical EACs, only three of the more common methods are

described as follows:

 EAC forecast for ETC work performed at the budgeted rate. This EAC method accepts the actual project

performance to date (whether favorable or unfavorable) as represented by the actual costs, and predicts

that all future ETC work will be accomplished at the budgeted rate. When actual performance is unfavorable,

the assumption that future performance will improve should be accepted only when supported by project

risk analysis. Equation: EAC = AC + (BAC – EV).

 EAC forecast for ETC work performed at the present CPI. This method assumes that what the project has

experienced to date can be expected to continue in the future. The ETC work is assumed to be performed

at the same cumulative cost performance index (CPI) as that incurred by the project to date. Equation:

EAC = BAC / CPI.

 EAC forecast for ETC work considering both SPI and CPI factors. In this forecast, the ETC work will be

performed at an efﬁciency rate that considers both the cost and schedule performance indices. This

method is most useful when the project schedule is a factor impacting the ETC effort. Variations of this

method weight the CPI and SPI at different values (e.g., 80/20, 50/50, or some other ratio) according to

the project manager’s judgment. Equation: EAC = AC + [(BAC – EV) / (CPI × SPI)].

 Reserve analysis. Described in Section 7.2.2.6. During cost control, reserve analysis is used to monitor the

status of contingency and management reserves for the project to determine if these reserves are still needed or

if additional reserves need to be requested. As work on the project progresses, these reserves may be used as

planned to cover the cost of risk responses or other contingencies. Conversely, when opportunities are captured

and resulting in cost savings, funds may be added to the contingency amount, or taken from the project as

margin/proﬁt.

If the identiﬁed risks do not occur, the unused contingency reserves may be removed from the project budget to

free up resources for other projects or operations. Additional risk analysis during the project may reveal a need

to request that additional reserves be added to the project budget.

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266 Part 1 - Guide

7.4.2.3 TO-COMPLETE PERFORMANCE INDEX

The to-complete performance index (TCPI) is a measure of the cost performance that is required to be achieved with

the remaining resources in order to meet a speciﬁed management goal, expressed as the ratio of the cost to ﬁnish

the outstanding work to the remaining budget. TCPI is the calculated cost performance index that is achieved on the

remaining work to meet a speciﬁed management goal, such as the BAC or the EAC. If it becomes obvious that the BAC

is no longer viable, the project manager should consider the forecasted EAC. Once approved, the EAC may replace the

BAC in the TCPI calculation. The equation for the TCPI based on the BAC: (BAC – EV) / (BAC – AC).

The TCPI is conceptually displayed in Figure 7-13. The equation for the TCPI is shown in the lower left as the work

remaining (deﬁned as the BAC minus the EV) divided by the funds remaining (which can be either the BAC minus the

AC, or the EAC minus the AC).

If the cumulative CPI falls below the baseline (as shown in Figure 7-13), all future work of the project will need

to be performed immediately in the range of the TCPI (BAC) (as reﬂected in the top line of Figure 7-13) to stay

within the authorized BAC. Whether this level of performance is achievable is a judgment call based on a number of

considerations, including risk, time remaining in the project, and technical performance. This level of performance

is displayed as the TCPI (EAC) line. The equation for the TCPI is based on the EAC: (BAC – EV) / (EAC – AC). The EVM

formulas are provided in Table 7-1.

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267

Earned Value Analysis

Lexicon Denition How Used EquationAbbreviation Name Interpretation of Result

The authorized budget assigned to

scheduled work.

The measure of work performed

expressed in terms of the budget

authorized for that work.

The realized cost incurred for the

work performed on an activity during

a specific time period.

The sum of all budgets established

for the work to be performed.

The amount of budget deficit or

surplus at a given point in time,

expressed as the difference between

the earned value and the actual cost.

The amount by which the project is

ahead or behind the planned

delivery date, at a given point in

time, expressed as the difference

between the earned value and the

planned value.

A projection of the amount of budget

deficit or surplus, expressed as the

difference between the budget at

completion and the estimate at

completion.

A measure of the cost efficiency of

budgeted resources

expressed as the ratio of earned

value to actual cost.

A measure of schedule efficiency

expressed as the ratio of earned

value to planned value.

The expected total cost of com-

pleting all work expressed as the

sum of the actual cost to date and

the estimate to complete.

The expected cost to finish all the

remaining project work.

A measure of the cost performance

that must be achieved with the

remaining resources in order to meet

a specified management goal,

expressed as the ratio of the cost to

finish the outstanding work to the

budget available.

Planned

Value

Earned Value

Actual Cost

Budget at

Completion

Cost Variance

Schedule

Variance

Variance at

Completion

Cost

Performance

Index

Schedule

Performance

Index

Estimate At

Completion

Estimate to

Complete

To Complete

Performance

Index

BAC

VAC

CPI

SPI

EAC

ETC

TCPI

The value of the work planned to be

completed to a point in time, usually

the data date, or project completion.

The planned value of all the work

completed (earned) to a point in

time, usually the data date, without

reference to actual costs.

The actual cost of all the work

completed to a point in time, usually

the data date.

The value of total planned work, the

project cost baseline.

The difference between the value of

work completed to a point in time,

usually the data date, and the actual

costs to the same point in time.

The difference between the work

completed to a point in time, usually

the data date, and the work planned

to be completed to the same point

in time.

The estimated difference in cost at

the completion of the project.

A CPI of 1.0 means the project is

exactly on budget, that the work

actually done so far is exactly the

same as the cost so far. Other values

show the percentage of how much

costs are over or under the budgeted

amount for work accomplished.

An SPI of 1.0 means that the project

is exactly on schedule, that the work

actually done so far is exactly the

same as the work planned to be

done so far. Other values show the

percentage of how much costs are

over or under the budgeted amount

for work planned.

If the CPI is expected to be the same

for the remainder of the project, EAC

can be calculated using:

If future work will be accomplished

at the planned rate, use:

If the initial plan is no longer valid,

use:

If both the CPI and SPI influence the

remaining work, use:

Assuming work is proceeding on

plan, the cost of completing the

remaining authorized work can be

calculated using:

Reestimate the remaining work from

the bottom up.

The efficiency that must be

maintained in order to complete on

plan.

The efficiency that must be

maintained in order to complete the

current EAC.

EV = sum of the planned

value of completed work

CV = EV – AC

SV = EV – PV

VAC = BAC – EAC

CPI = EV/AC

SPI = EV/PV

EAC = BAC/CPI

EAC = AC + BAC – EV

EAC = AC + Bottom-up ETC

EAC = AC + [(BAC – EV)/

(CPI x SPI)]

ETC = EAC – AC

ETC = Reestimate

TCPI = (BAC – EV )/(BAC – AC )

TCPI = (BAC – EV)/(EAC – AC )

Positive = Under planned cost

Neutral = On planned cost

Negative = Over planned cost

Positive = Ahead of Schedule

Neutral = On schedule

Negative = Behind Schedule

Positive = Under planned cost

Neutral = On planned cost

Negative = Over planned cost

Greater than 1.0 = Under planned

cost

Exactly 1.0 = On planned cost

Less than 1.0 = Over planned cost

Greater than 1.0 = Ahead of

schedule

Exactly 1.0 = On schedule

Less than 1.0 = Behind schedule

Greater than 1.0 = Harder to

complete

Exactly 1.0 = Same to complete

Less than 1.0 = Easier to complete

Greater than 1.0 = Harder to

complete

Exactly 1.0 = Same to complete

Less than 1.0 = Easier to complete

Table 7-1. Earned Value Calculations Summary Table

268 Part 1 - Guide

Status Date

1.00

TCPI

(BAC)

TCPI

(EAC)

Baseline Plan

Cumulative

CPI

Formula:

= TCPI

Work Remaining (BAC-EV)

Funds Remaining (BAC-AC) or (EAC-AC)

Figure 7-13. To-Complete Performance Index (TCPI)

7.4.2.4 PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS)

Described in Section 4.3.2.2. Project management information systems are often used to monitor the three EVM

dimensions (PV, EV, and AC), to display graphical trends, and to forecast a range of possible ﬁnal project results.

7.4.3 CONTROL COSTS: OUTPUTS

7.4.3.1 WORK PERFORMANCE INFORMATION

Described in Section 4.5.1.3. Work performance information includes information on how the project work is

performing compared to the cost baseline. Variances in the work performed and the cost of the work are evaluated at

the work package level and control account level. For projects using earned value analysis, CV, CPI, EAC, VAC, and TCPI

are documented for inclusion in work performance reports (Section 4.5.3.1).

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269

7.4.3.2 COST FORECASTS

Either a calculated EAC value or a bottom-up EAC value is documented and communicated to stakeholders.

7.4.3.3 CHANGE REQUESTS

Described in Section 4.3.3.4. Analysis of project performance may result in a change request to the cost and

schedule baselines or other components of the project management plan. Change requests are processed for review

and disposition through the Perform Integrated Change Control process (Section 4.6).

7.4.3.4 PROJECT MANAGEMENT PLAN UPDATES

Any change to the project management plan goes through the organization’s change control process via a change

request. Components that may require a change request for the project management plan include but are not limited to:

 Cost management plan. Described in Section 7.1.3.1. Changes to the cost management plan, such as changes

to control thresholds or speciﬁed levels of accuracy required in managing the project’s cost, are incorporated in

response to feedback from relevant stakeholders.

 Cost baseline. Described in Section 7.3.3.1. Changes to the cost baseline are incorporated in response to

approved changes in scope, resources, or cost estimates. In some cases, cost variances can be so severe that a

revised cost baseline is needed to provide a realistic basis for performance measurement.

 Performance measurement baseline. Described in Section 4.2.3.1. Changes to the performance measurement

baseline are incorporated in response to approved changes in scope, schedule performance, or cost estimates.

In some cases, the performance variances can be so severe that a change request is put forth to revise the

performance measurement baseline to provide a realistic basis for performance measurement.

270 Part 1 - Guide

7.4.3.5 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Assumption log. Described in Section 4.1.3.2. Cost performance may indicate the need to revise assumptions

on resource productivity and other factors inﬂuencing cost performance.

 Basis of estimates. Described in Section 6.4.3.2. Cost performance may indicate the need to revisit the original

basis of estimates.

 Cost estimates. Described in Section 7.2.3.1. Cost estimates may need to be updated to reﬂect the actual cost

efﬁciency for the project.

 Lessons learned register. Described in Section 4.4.3.1. The lessons learned register can be updated with

techniques that were effective in maintaining the budget, variance analysis, earned value analysis, forecasting,

and corrective actions that were used to respond to cost variances.

 Risk register. Described in Section 11.2.3.1. The risk register may be updated if the cost variances have crossed,

or are likely to cross, the cost threshold.

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271

PROJECT QUALITY MANAGEMENT

Project Quality Management includes the processes for incorporating the organization’s quality policy regarding

planning, managing, and controlling project and product quality requirements in order to meet stakeholders’ objectives.

Project Quality Management also supports continuous process improvement activities as undertaken on behalf of the

performing organization.

The Project Quality Management processes are:

8.1 Plan Quality Management—The process of identifying quality requirements and/or standards for the project

and its deliverables, and documenting how the project will demonstrate compliance with quality requirements and/

or standards.

8.2 Manage Quality—The process of translating the quality management plan into executable quality activities that

incorporate the organization’s quality policies into the project.

8.3 Control Quality—The process of monitoring and recording the results of executing the quality management

activities to assess performance and ensure the project outputs are complete, correct, and meet customer expectations.

Figure 8-1 provides an overview of the Project Quality Management processes. The Project Quality Management

processes are presented as discrete processes with deﬁned interfaces while, in practice, they overlap and interact in

ways that cannot be completely detailed in the PMBOK® Guide. In addition, these quality processes may differ within

industries and companies.

272 Part 1 - Guide

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Organizational process assets

.2 Tools & Techniques

.1 Data gathering

.2 Data analysis

.3 Decision making

.4 Data representation

.5 Audits

.6 Design for X

.7 Problem solving

.8 Quality improvement methods

.3 Outputs

.1 Quality reports

.2 Test and evaluation

documents

.3 Change requests

.4 Project management plan

updates

.5 Project documents updates

.1 Inputs

.1 Project charter

.2 Project management plan

.3 Project documents

.4 Enterprise environmental

factors

.5 Organizational process assets

.2 Tools & Techniques

.1 Expert judgement

.2 Data gathering

.3 Data analysis

.4 Decision making

.5 Data representation

.6 Test and inspection planning

.7 Meetings

.3 Outputs

.1 Quality management plan

.2 Quality metrics

.3 Project management plan

updates

.4 Project documents updates

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Approved change requests

.4 Deliverables

.5 Work performance data

.6 Enterprise environmental

factors

.7 Organizational process assets

.2 Tools & Techniques

.1 Data gathering

.2 Data analysis

.3 Inspection

.4 Testing/product evaluations

.5 Data representation

.6 Meetings

.3 Outputs

.1 Quality control measurements

.2 Verified deliverables

.3 Work performance information

.4 Change requests

.5 Project management plan

updates

.6 Project documents updates

Project Quality

Management Overview

8.2 Manage Quality

8.1 Plan Quality

Management 8.3 Control Quality

Figure 8-1. Project Quality Management Overview

Figure 8-2 provides an overview of the major inputs and outputs of the Project Quality Management processes

and the interrelations of these processes in the Project Quality Management Knowledge Area. The Plan Quality

Management process is concerned with the quality that the work needs to have. Manage Quality is concerned with

managing the quality processes throughout the project. During the Manage Quality process, quality requirements

identiﬁed during the Plan Quality Management process are turned into test and evaluation instruments, which are

then applied during the Control Quality process to verify these quality requirements are met by the project. Control

Quality is concerned with comparing the work results with the quality requirements to ensure the result is acceptable.

There are two outputs speciﬁc to the Project Quality Management Knowledge Area that are used by other Knowledge

Areas: veriﬁed deliverables and quality reports.

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273

Figure 8-2. Major Project Quality Management Process Interrelations

KEY CONCEPTS FOR PROJECT QUALITY MANAGEMENT

Project Quality Management addresses the management of the project and the deliverables of the project. It

applies to all projects, regardless of the nature of their deliverables. Quality measures and techniques are speciﬁc

to the type of deliverables being produced by the project. For example, the project quality management of software

deliverables may use different approaches and measures from those used when building a nuclear power plant. In

either case, failure to meet the quality requirements can have serious negative consequences for any or all of the

project’s stakeholders. For example:

 Meeting customer requirements by overworking the project team may result in decreased proﬁts and increased

levels of overall project risks, employee attrition, errors, or rework.

 Meeting project schedule objectives by rushing planned quality inspections may result in undetected errors,

decreased proﬁts, and increased post-implementation risks.

To Other

Project

Processes

Validate

Scope

Manage

Quality

Control

Quality

Project

Integration

Management

Plan

Quality

Management

Quality templates

from organizational

process assets

Quality management

plan

Quality metrics

Test and evaluate documents

Quality reports

Quality control

measurements

Work performance

information

Quality reports

Veried deliverables

Deliverables

Work performance data

274 Part 1 - Guide

Quality and grade are not the same concepts. Quality as a delivered performance or result is “the degree to which a

set of inherent characteristics fulﬁll requirements” (ISO 9000 [18].). Grade as a design intent is a category assigned to

deliverables having the same functional use but different technical characteristics. The project manager and the project

management team are responsible for managing the trade-offs associated with delivering the required levels of both

quality and grade. While a quality level that fails to meet quality requirements is always a problem, a low-grade product

may not be a problem. For example:

 It may not be a problem if a suitable low-grade product (one with a limited number of features) is of high quality

(no obvious defects). In this example, the product would be appropriate for its general purpose of use.

 It may be a problem if a high-grade product (one with numerous features) is of low quality (many defects). In

essence, a high-grade feature set would prove ineffective and/or inefﬁcient due to low quality.

Prevention is preferred over inspection. It is better to design quality into deliverables, rather than to ﬁnd quality issues

during inspection. The cost of preventing mistakes is generally much less than the cost of correcting mistakes when

they are found by inspection or during usage.

Depending on the project and the industry area, the project team may need a working knowledge of statistical control

processes to evaluate data contained in the Control Quality outputs. The team should know the differences between the

following pairs of terms:

 Prevention (keeping errors out of the process) and inspection (keeping errors out of the hands of the customer);

 Attribute sampling (the result either conforms or does not conform) and variable sampling (the result is rated on

a continuous scale that measures the degree of conformity); and

 Tolerances (speciﬁed range of acceptable results) and control limits (that identify the boundaries of common

variation in a statistically stable process or process performance).

The cost of quality (COQ) includes all costs incurred over the life of the product by investment in preventing

nonconformance to requirements, appraising the product or service for conformance to requirements, and failing to

meet requirements (rework). Failure costs are often categorized into internal (found by the project team) and external

(found by the customer). Failure costs are also called the cost of poor quality. Section 8.1.2.3 provides some examples

to consider in each area. Organizations choose to invest in defect prevention because of the beneﬁts over the life of the

product. Because projects are temporary, decisions about the COQ over a product’s life cycle are often the concern of

program management, portfolio management, the PMO, or operations.

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275

There are ﬁve levels of increasingly effective quality management as follows:

 Usually, the most expensive approach is to let the customer ﬁnd the defects. This approach can lead to warranty

issues, recalls, loss of reputation, and rework costs.

 Detect and correct the defects before the deliverables are sent to the customer as part of the quality control

process. The control quality process has related costs, which are mainly the appraisal costs and internal

failure costs.

 Use quality assurance to examine and correct the process itself and not just special defects.

 Incorporate quality into the planning and designing of the project and product.

 Create a culture throughout the organization that is aware and committed to quality in processes and products.

TRENDS AND EMERGING PRACTICES IN PROJECT QUALITY MANAGEMENT

Modern quality management approaches seek to minimize variation and to deliver results that meet deﬁned

stakeholder requirements. Trends in Project Quality Management include but are not limited to:

 Customer satisfaction. Understand, evaluate, deﬁne, and manage requirements so that customer expectations

are met. This requires a combination of conformance to requirements (to ensure the project produces what it

was created to produce) and ﬁtness for use (the product or service needs to satisfy the real needs). In agile

environments, stakeholder engagement with the team ensures customer satisfaction is maintained throughout

the project.

 Continual improvement. The plan-do-check-act (PDCA) cycle is the basis for quality improvement as deﬁned by

Shewhart and modiﬁed by Deming. In addition, quality improvement initiatives such as total quality management

(TQM), Six Sigma, and Lean Six Sigma may improve both the quality of project management, as well as the

quality of the end product, service, or result.

 Management responsibility. Success requires the participation of all members of the project team.

Management retains, within its responsibility for quality, a related responsibility to provide suitable resources

at adequate capacities.

 Mutually beneficial partnership with suppliers. An organization and its suppliers are interdependent.

Relationships based on partnership and cooperation with the supplier are more beneﬁcial to the organization and

to the suppliers than traditional supplier management. The organization should prefer long-term relationships

over short-term gains. A mutually beneﬁcial relationship enhances the ability for both the organization and the

suppliers to create value for each other, enhances the joint responses to customer needs and expectations, and

optimizes costs and resources.

276 Part 1 - Guide

TAILORING CONSIDERATIONS

Each project is unique; therefore, the project manager will need to tailor the way Project Quality Management

processes are applied. Considerations for tailoring include but are not limited to:

 Policy compliance and auditing. What quality policies and procedures exist in the organization? What quality

tools, techniques, and templates are used in the organization?

 Standards and regulatory compliance. Are there any speciﬁc quality standards in the industry that need to be

applied? Are there any speciﬁc governmental, legal, or regulatory constraints that need to be taken into consideration?

 Continuous improvement. How will quality improvement be managed in the project? Is it managed at the

organizational level or at the level of each project?

 Stakeholder engagement. Is there a collaborative environment for stakeholders and suppliers?

CONSIDERATIONS FOR AGILE/ADAPTIVE ENVIRONMENTS

In order to navigate changes, agile methods call for frequent quality and review steps built in throughout the project

rather than toward the end of the project.

Recurring retrospectives regularly check on the effectiveness of the quality processes. They look for the root cause of

issues then suggest trials of new approaches to improve quality. Subsequent retrospectives evaluate any trial processes

to determine if they are working and should be continued or new adjusting or should be dropped from use.

In order to facilitate frequent, incremental delivery, agile methods focus on small batches of work, incorporating as

many elements of project deliverables as possible. Small batch systems aim to uncover inconsistencies and quality

issues earlier in the project life cycle when the overall costs of change are lower.

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277

8.1 PLAN QUALITY MANAGEMENT

Plan Quality Management is the process of identifying quality requirements and/or standards for the project and its

deliverables, and documenting how the project will demonstrate compliance with quality requirements and/or standards.

The key beneﬁt of this process is that it provides guidance and direction on how quality will be managed and veriﬁed

throughout the project. This process is performed once or at predeﬁned points in the project. The inputs and outputs of

this process are depicted in Figure 8.3. Figure 8.4 depicts the data ﬂow diagram for the process.

Figure 8-3. Plan Quality Management: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

Plan Quality Management

.1 Expert judgment

.2 Data gathering

• Benchmarking

• Brainstorming

• Interviews

.3 Data analysis

• Cost-benefit analysis

• Cost of quality

.4 Decision making

• Multicriteria decision

analysis

.5 Data representation

• Flowcharts

• Logical data model

• Matrix diagrams

• Mind mapping

.6 Test and inspection planning

.7 Meetings

.1 Project charter

.2 Project management plan

• Requirements management

plan

• Risk management plan

• Stakeholder engagement

plan

• Scope baseline

.3 Project documents

• Assumption log

• Requirements

documentation

• Requirements traceability

matrix

• Risk register

• Stakeholder register

.4 Enterprise environmental

factors

.5 Organizational process assets

.1 Quality management plan

.2 Quality metrics

.3 Project management plan

updates

• Risk management plan

• Scope baseline

.4 Project documents updates

• Lessons learned register

• Requirements traceability

matrix

• Risk register

• Stakeholder register

278 Part 1 - Guide

• Project

charter

4.1

Develop

Project

Charter

Project management plan

• Requirements management plan

• Risk management plan

• Stakeholder engagement plan

• Scope baseline

Project documents

• Assumption log

• Requirements documentation

• Requirements traceability matrix

• Risk register

• Stakeholder register

• Project charter

Project

Management

Plan

Project

Documents

Project

Documents

8.1

Plan Quality

Management

Enterprise/

Organization

• Enterprise environmental factors

• Organizational process assets

• Quality metrics

• Quality management plan

Project management plan updates

• Risk management plan

• Scope baseline

Project documents updates

• Lessons learned register

• Requirements traceability matrix

• Risk register

• Stakeholder register

Project

Management

Plan

Figure 8-4. Plan Quality Management: Data Flow Diagram

Quality planning should be performed in parallel with the other planning processes. For example, changes proposed

in the deliverables in order to meet identiﬁed quality standards may require cost or schedule adjustments and a detailed

risk analysis of the impact to plans.

The quality planning techniques discussed here are those used most frequently on projects. There are many others

that may be useful on certain projects or in speciﬁc application areas.

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279

8.1.1 PLAN QUALITY MANAGEMENT: INPUTS

8.1.1.1 PROJECT CHARTER

Described in Section 4.1.3.1. The project charter provides the high-level project description and product characteristics.

It also contains the project approval requirements, measurable project objectives, and related success criteria that will

inﬂuence the quality management of the project.

8.1.1.2 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Requirements management plan. Described in Section 5.1.3.2. The requirements management plan provides

the approach for identifying, analyzing, and managing the requirements that the quality management plan and

quality metrics will reference.

 Risk management plan. Described in Section 11.1.3.1. The risk management plan provides the approach for

identifying, analyzing, and monitoring risks. The information in the risk management plan and quality management

plan work together to successfully deliver product and project success.

 Stakeholder engagement plan. Described in Section 13.2.3.1. The stakeholder engagement plan provides

the method for documenting the stakeholders’ needs and expectations that provide the foundation for quality

management.

 Scope baseline. Described in Section 5.4.3.1. The WBS along with the deliverables documented in the project

scope statement are considered while determining which quality standards and objectives are suitable for the

project, and which project deliverables and processes will be subjected to quality review. The scope statement

includes the acceptance criteria for the deliverables. The deﬁnition of acceptance criteria may signiﬁcantly

increase or decrease quality costs and, therefore, project costs. Satisfying all acceptance criteria implies the

needs of the stakeholders have been met.

280 Part 1 - Guide

8.1.1.3 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Assumption log. Described in Section 4.1.3.2. The assumption log has all the assumptions and constraints

regarding quality requirements and standard compliance.

 Requirements documentation. Described in Section 5.2.3.1. Requirements documentation captures the

requirements that the project and product should attain to meet stakeholder expectations. The components

of the requirements documentation include but are not limited to project and product quality requirements.

Requirements are used by the project team to help plan how quality control will be implemented on the project.

 Requirements traceability matrix. Described in Section 5.2.3.2. The requirements traceability matrix links

product requirements to deliverables and helps to ensure each requirement in the requirements documentation

is tested. The matrix provides an overview of the tests required to verify the requirements.

 Risk register. Described in Section 11.2.3.1. The risk register contains information on threats and opportunities

that may impact quality requirements.

 Stakeholder register. Described in Section 13.1.3.1. The stakeholder register helps to identify stakeholders who

have a particular interest in or impact on quality, with the emphasis on the customer and project sponsor needs

and expectations.

8.1.1.4 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Plan Quality Management process include but are not

limited to:

 Governmental agency regulations;

 Rules, standards, and guidelines speciﬁc to the application area;

 Geographic distribution;

 Organizational structure;

 Marketplace conditions;

 Working or operating conditions of the project or its deliverables; and

 Cultural perceptions.

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281

8.1.1.5 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Plan Quality Management process include but are not

limited to:

 Organizational quality management system including policies, procedures, and guidelines;

 Quality templates such as check sheets, traceability matrix, and others; and

 Historical databases and lessons learned repository.

8.1.2 PLAN QUALITY MANAGEMENT: TOOLS AND TECHNIQUES

8.1.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge

or training in the following topics:

 Quality assurance,

 Quality control,

 Quality measurements,

 Quality improvements, and

 Quality systems.

8.1.2.2 DATA GATHERING

Data-gathering techniques that can be used for this process include but are not limited to:

 Benchmarking. Benchmarking involves comparing actual or planned project practices or the project’s quality

standards to those of comparable projects to identify best practices, generate ideas for improvement, and provide

a basis for measuring performance. Benchmarked projects may exist within the performing organization or

outside of it, or can be within the same application area or other application area. Benchmarking allows for

analogies from projects in a different application area or different industries to be made.

 Brainstorming. Described in Section 4.1.2.2. Brainstorming can be used to gather data creatively from a

group of team members or subject matter experts to develop the quality management plan that best fits

the upcoming project.

282 Part 1 - Guide

 Interviews. Described in Section 5.2.2.2. Project and product quality needs and expectations, implicit and

explicit, formal and informal, can be identiﬁed by interviewing experienced project participants, stakeholders,

and subject matter experts. Interviews should be conducted in an environment of trust and conﬁdentiality to

encourage honest and unbiased contributions.

8.1.2.3 DATA ANALYSIS

Data analysis techniques that can be used for this process include but are not limited to:

 Cost-benefit analysis. A cost-beneﬁt analysis is a ﬁnancial analysis tool used to estimate the strengths and

weaknesses of alternatives in order to determine the best alternative in terms of beneﬁts provided. A cost-

beneﬁt analysis will help the project manager determine if the planned quality activities are cost effective. The

primary beneﬁts of meeting quality requirements include less rework, higher productivity, lower costs, increased

stakeholder satisfaction, and increased proﬁtability. A cost-beneﬁt analysis for each quality activity compares the

cost of the quality step to the expected beneﬁt.

 Cost of quality. The cost of quality (COQ) associated with a project consists of one or more of the following costs

(Figure 8-5 lists examples for each cost group):

 Prevention costs. Costs related to the prevention of poor quality in the products, deliverables, or services of

the speciﬁc project.

 Appraisal costs. Costs related to evaluating, measuring, auditing, and testing the products, deliverables, or

services of the speciﬁc project.

 Failure costs (internal/external). Costs related to nonconformance of the products, deliverables, or services to

the needs or expectations of the stakeholders.

The optimal COQ is one that reﬂects the appropriate balance for investing in the cost of prevention and appraisal

to avoid failure costs. Models show that there is an optimal quality cost for projects, where investing in additional

prevention/appraisal costs is neither beneﬁcial nor cost effective.

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283

Cost of Conformance Cost of Nonconformance

Prevention Costs

(Build a quality product)

• Training

• Document processes

• Equipment

• Time to do it right

Appraisal Costs

(Assess the quality)

• Testing

• Destructive testing loss

• Inspections

Money spent during the project

to avoid failures

Internal Failure Costs

(Failures found by the project)

• Rework

• Scrap

External Failure Costs

(Failures found by the customer)

• Liabilities

• Warranty work

• Lost business

Money spent during and after

the project because of failures

Figure 8-5. Cost of Quality

8.1.2.4 DECISION MAKING

A decision-making technique that can be used for this process includes but is not limited to multicriteria decision

analysis. Multicriteria decision analysis tools (e.g., prioritization matrix) can be used to identify the key issues and

suitable alternatives to be prioritized as a set of decisions for implementation. Criteria are prioritized and weighted

before being applied to all available alternatives to obtain a mathematical score for each alternative. The alternatives

are then ranked by score. As used in this process, it can help prioritize quality metrics.

284 Part 1 - Guide

8.1.2.5 DATA REPRESENTATION

Data representation techniques that can be used for this process include but are not limited to:

 Flowcharts. Flowcharts are also referred to as process maps because they display the sequence of steps

and the branching possibilities that exist for a process that transforms one or more inputs into one or more

outputs. Flowcharts show the activities, decision points, branching loops, parallel paths, and the overall order

of processing by mapping the operational details of procedures that exist within a horizontal value chain. One

version of a value chain, known as a SIPOC (suppliers, inputs, process, outputs, and customers) model, is shown

in Figure 8-6. Flowcharts may prove useful in understanding and estimating the cost of quality for a process.

Information is obtained by using the workﬂow branching logic and associated relative frequencies to estimate

the expected monetary value for the conformance and nonconformance work required to deliver the expected

conforming output. When ﬂowcharts are used to represent the steps in a process, they are sometimes called

process ﬂows or process ﬂow diagrams and they can be used for process improvement as well as identifying

where quality defects can occur or where to incorporate quality checks.

 Logical data model. Logical data models are a visual representation of an organization’s data, described in

business language and independent of any speciﬁc technology. The logical data model can be used to identify

where data integrity or other quality issues can arise.

 Matrix diagrams. Matrix diagrams help ﬁnd the strength of relationships among different factors, causes, and

objectives that exist between the rows and columns that form the matrix. Depending on how many factors

may be compared, the project manager can use different shapes of matrix diagrams; for example, L, T, Y, X, C,

and roof–shaped. In this process they facilitate identifying the key quality metrics that are important for the

success of the project.

 Mind mapping. Described in Section 5.2.2.3. Mind mapping is a diagrammatic method used to visually

organizing information. A mind map in quality is often created around a single quality concept, drawn as an

image in the center of a blank landscape page, to which associated representations of ideas such as images,

words, and parts of words are added. The mind-mapping technique may help in the rapid gathering of project

quality requirements, constraints, dependencies, and relationships.

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285

Requirements and

Feedback Loop

Requirements and

Feedback Loop

OUTPUTINPUT

PROCES

USTOMERSUPPLIER

SuppliersInputs ProcessOutputs Customers

•

Requirements List Measurements List Requirements List Measurements List

•

NOTE: The components of this diagram are flexible and can take any direction depending upon the circumstance.

Figure 8-6. The SIPOC Model

8.1.2.6 TEST AND INSPECTION PLANNING

During the planning phase, the project manager and the project team determine how to test or inspect the product,

deliverable, or service to meet the stakeholders’ needs and expectations, as well as how to meet the goal for the

product’s performance and reliability. The tests and inspections are industry dependent and can include, for example,

alpha and beta tests in software projects, strength tests in construction projects, inspection in manufacturing, and ﬁeld

tests and nondestructive tests in engineering.

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8.1.2.7 MEETINGS

Project teams may hold planning meetings to develop the quality management plan. Attendees can include the

project manager, the project sponsor, selected project team members, selected stakeholders, anyone with responsibility

for project quality management activities, and others as needed.

8.1.3 PLAN QUALITY MANAGEMENT: OUTPUTS

8.1.3.1 QUALITY MANAGEMENT PLAN

The quality management plan is a component of the project management plan that describes how applicable

policies, procedures, and guidelines will be implemented to achieve the quality objectives. It describes the activities

and resources necessary for the project management team to achieve the quality objectives set for the project.

The quality management plan may be formal or informal, detailed, or broadly framed. The style and detail of the

quality management plan are determined by the requirements of the project. The quality management plan should

be reviewed early in the project to ensure that decisions are based on accurate information. The beneﬁts of this

review can include a sharper focus on the project’s value proposition, reductions in costs, and less frequent schedule

overruns that are caused by rework.

The quality management plan may include but is not limited to the following components:

 Quality standards that will be used by the project;

 Quality objectives of the project;

 Quality roles and responsibilities;

 Project deliverables and processes subject to quality review;

 Quality control and quality management activities planned for the project;

 Quality tools that will be used for the project; and

 Major procedures relevant for the project, such as dealing with nonconformance, corrective actions procedures,

and continuous improvement procedures.

287

8.1.3.2 QUALITY METRICS

A quality metric specifically describes a project or product attribute and how the Control Quality process will

verify compliance to it. Some examples of quality metrics include percentage of tasks completed on time, cost

performance measured by CPI, failure rate, number of defects identified per day, total downtime per month, errors

found per line of code, customer satisfaction scores, and percentage of requirements covered by the test plan as

a measure of test coverage.

8.1.3.3 PROJECT MANAGEMENT PLAN UPDATES

Any change to the project management plan goes through the organization’s change control process via a change

request. Components that may require a change request for the project management plan include but are not limited to:

 Risk management plan. Described in Section 11.1.3.1. Decisions on the quality management approach may

require changes to the agreed-upon approach to managing risk on the project, and these will be recorded in the

risk management plan.

 Scope baseline. Described in Section 5.4.3.1. The scope baseline may change as a result of this process if

speciﬁc quality management activities need to be added. The WBS dictionary also records quality requirements,

which may need updating.

8.1.3.4 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Lessons learned register. Described in Section 4.4.3.1. The lessons learned register is updated with information

on challenges encountered in the quality planning process.

 Requirements traceability matrix. Described in Section 5.2.3.2. Where quality requirements are speciﬁed by

this process, they are recorded in the requirements traceability matrix.

 Risk register. Described in Section 11.2.3.1. New risks identiﬁed during this process are recorded in the risk

 Stakeholder register. Described in Section 13.1.3.1. Where additional information on existing or new stakeholders

is gathered as a result of this process, it is recorded in the stakeholder register.

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8.2 MANAGE QUALITY

Manage Quality is the process of translating the quality management plan into executable quality activities that

incorporate the organization’s quality policies into the project. The key beneﬁts of this process are that it increases

the probability of meeting the quality objectives as well as identifying ineffective processes and causes of poor quality.

Manage Quality uses the data and results from the control quality process to reﬂect the overall quality status of the

project to the stakeholders. This process is performed throughout the project.

The inputs, tools and techniques, and outputs of this process are depicted in Figure 8-7. Figure 8-8 depicts the data

ﬂow diagram of the process.

Figure 8-7. Manage Quality: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

Manage Quality

.1 Data gathering

• Checklists

.2 Data analysis

• Alternatives analysis

• Document analysis

• Process analysis

• Root cause analysis

.3 Decision making

• Multicriteria decision

analysis

.4 Data representation

• Affinity diagrams

• Cause-and-effect diagrams

• Flowcharts

• Histograms

• Matrix diagrams

• Scatter diagrams

.5 Audits

.6 Design for X

.7 Problem solving

.8 Quality improvement methods

.1 Project management plan

• Quality management plan

.2 Project documents

• Lessons learned register

• Quality control

measurements

• Quality metrics

• Risk report

.3 Organizational process assets

.1 Quality reports

.2 Test and evaluation

documents

.3 Change requests

.4 Project management plan

updates

• Quality management plan

• Scope baseline

• Schedule baseline

• Cost baseline

.5 Project documents updates

• Issue log

• Lessons learned register

• Risk register

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289

• Project

charter

4.6

Perform

Integrated

Change Control

Project management plan

• Quality management plan

Project documents

• Lessons learned register

• Quality control measurements

• Quality metrics

• Risk report

Project

Management

Plan

Project

Documents

Project

Documents

8.2

Manage

Quality

Enterprise/

Organization

• Organizational process assets

• Quality reports

• Test and evaluation

documents

• Change requests

Project management plan updates

• Quality management plan

• Scope baseline

• Schedule baseline

• Cost baseline

Project documents updates

• Issue log

• Lessons learned register

• Risk register

Project

Management

Plan

Figure 8-8. Manage Quality: Data Flow Diagram

Manage Quality is sometimes called quality assurance, although Manage Quality has a broader deﬁnition than quality

assurance as it is used in nonproject work. In project management, the focus of quality assurance is on the processes

used in the project. Quality assurance is about using project processes effectively. It involves following and meeting

standards to assure stakeholders that the ﬁnal product will meet their needs, expectations, and requirements. Manage

Quality includes all the quality assurance activities, and is also concerned with the product design aspects and process

improvements. Manage Quality work will fall under the conformance work category in the cost of quality framework.

290 Part 1 - Guide

The Manage Quality process implements a set of planned and systematic acts and processes deﬁned within the

project’s quality management plan that helps to:

 Design an optimal and mature product by implementing speciﬁc design guidelines that address speciﬁc aspects

of the product,

 Build conﬁdence that a future output will be completed in a manner that meets the speciﬁed requirements and

expectations through quality assurance tools and techniques such as quality audits and failure analysis,

 Conﬁrm that the quality processes are used and that their use meets the quality objectives of the project, and

 Improve the efﬁciency and effectiveness of processes and activities to achieve better results and performance

and enhance stakeholders’ satisfaction.

The project manager and project team may use the organization’s quality assurance department, or other organizational

functions, to execute some of the Manage Quality activities such as failure analysis, design of experiments, and quality

improvement. Quality assurance departments usually have cross-organizational experience in using quality tools and

techniques and are a good resource for the project.

Manage Quality is considered the work of everybody—the project manager, the project team, the project sponsor, the

management of the performing organization, and even the customer. All of these have roles in managing quality in the

project, though the roles differ in size and effort. The level of participation in the quality management effort may differ

between industries and project management styles. In agile projects, quality management is performed by all team

members throughout the project, but in traditional projects, quality management is often the responsibility of speciﬁc

team members.

8.2.1 MANAGE QUALITY: INPUTS

8.2.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to the quality

management plan. Described in Section 8.1.3.1, the quality management plan deﬁnes the acceptable level of project

and product quality and describes how to ensure this level of quality in its deliverables and processes. The quality

management plan also describes what to do with nonconforming products and what corrective action to implement.

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8.2.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Lessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project with regard to

managing quality can be applied to later phases in the project to improve the efﬁciency and effectiveness of

managing quality.

 Quality control measurements. Described in Section 8.3.3.1. Quality control measurements are used to analyze

and evaluate the quality of the processes and deliverables of the project against the standards of the performing

organization or the requirements speciﬁed. Quality control measurements can also compare the processes used

to create the measurements and validate actual measurements to determine their level of correctness.

 Quality metrics. Described in Section 8.1.3.2. Quality metrics are veriﬁed as part of the Control Quality process.

The Manage Quality process uses these quality metrics as a basis for the development of test scenarios for the

project and its deliverables and as a basis for improvement initiatives.

 Risk report. Described in Section 11.2.3.2. Risk report is used in the Manage Quality process to identify sources

of overall project risk and the most important drivers of overall risk exposure that can impact the quality objectives

of the project.

8.2.1.3 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Manage Quality process include but are not limited to:

 Organizational quality management system that includes policies, procedures, and guidelines;

 Quality templates such as check sheets, traceability matrix, test plans, test documents, and others;

 Results from previous audits; and

 Lessons learned repository with information from similar projects.

292 Part 1 - Guide

8.2.2 MANAGE QUALITY: TOOLS AND TECHNIQUES

8.2.2.1 DATA GATHERING

A data-gathering technique that can be used for this process includes but is not limited to checklists (see Section

11.2.2.2). A checklist is a structured tool, usually component-speciﬁc, used to verify that a set of required steps has

been performed or to check if a list of requirements has been satisﬁed. Based on the project’s requirements and

practices, checklists may be simple or complex. Many organizations have standardized checklists available to ensure

consistency in frequently performed tasks. In some application areas, checklists are also available from professional

associations or commercial service providers. Quality checklists should incorporate the acceptance criteria included in

the scope baseline.

8.2.2.2 DATA ANALYSIS

Data analysis techniques that can be used for this process include but are not limited to:

 Alternatives analysis. Described in Section 9.2.2.5. This technique is used to evaluate identiﬁed options in order

to select which different quality options or approaches are most appropriate to use.

 Document analysis. Described in Section 5.2.2.3. The analysis of different documents produced as part of

the output of project control processes, such as quality reports, test reports, performance reports, and variance

analysis, can point to and focus on processes that may be out of control and may jeopardize meeting the

speciﬁed requirements or stakeholders’ expectations.

 Process analysis. Process analysis identiﬁes opportunities for process improvements. This analysis also

examines problems, constraints, and non-value-added activities that occur during a process.

 Root cause analysis (RCA). Root cause analysis is an analytical technique used to determine the basic underlying

reason that causes a variance, defect, or risk. A root cause may underlie more than one variance, defect, or risk. It

may also be used as a technique for identifying root causes of a problem and solving them. When all root causes

for a problem are removed, the problem does not recur.

293

8.2.2.3 DECISION MAKING

A decision-making technique that can be used for this process includes but is not limited to multicriteria decision

analysis. Described in Section 8.1.2.4. Multicriteria decision making is used to evaluate several criteria when discussing

alternatives that impact project or product quality. Project decisions can include choosing among different implementation

scenarios or suppliers. Product decisions can include evaluating the life cycle cost, schedule, stakeholder satisfaction,

and risks associated with resolving product defects.

8.2.2.4 DATA REPRESENTATION

Data representation techniques that can be used for this process include but are not limited to:

 Affinity diagrams. Described in Section 5.2.2.5. Afﬁnity diagrams can organize potential causes of defects into

groups showing areas that should be focused on the most.

 Cause-and-effect diagrams. Cause-and-effect diagrams are also known as ﬁshbone diagrams, why-why

diagrams, or Ishikawa diagrams. This type of diagram breaks down the causes of the problem statement identiﬁed

into discrete branches, helping to identify the main or root cause of the problem. Figure 8-9 is an example of a

cause-and-effect diagram.

 Flowcharts. Described in Section 8.1.2.5. Flowcharts show a series of steps that lead to a defect.

 Histograms. Histograms show a graphical representation of numerical data. Histograms can show the number

of defects per deliverable, a ranking of the cause of defects, the number of times each process is noncompliant,

or other representations of project or product defects.

 Matrix diagrams. Described in Section 8.1.2.5. The matrix diagram seeks to show the strength of relationships

among factors, causes, and objectives that exist between the rows and columns that form the matrix.

 Scatter diagrams. A scatter diagram is a graph that shows the relationship between two variables. Scatter

diagrams can demonstrate a relationship between any element of a process, environment, or activity on one axis

and a quality defect on the other axis.

294 Part 1 - Guide

Figure 8-9. Cause-and-Effect Diagram

8.2.2.5 AUDITS

An audit is a structured, independent process used to determine if project activities comply with organizational and

project policies, processes, and procedures. A quality audit is usually conducted by a team external to the project,

such as the organization’s internal audit department, PMO, or by an auditor external to the organization. Quality audit

objectives may include but are not limited to:

 Identifying all good and best practices being implemented;

 Identifying all nonconformity, gaps, and shortcomings;

 Sharing good practices introduced or implemented in similar projects in the organization and/or industry;

 Proactively offering assistance in a positive manner to improve the implementation of processes to help raise

team productivity; and

 Highlighting contributions of each audit in the lessons learned repository of the organization.

Product quality

not matching

the requirements

ManagementEnvironmentMaterial

EquipmentProcessPeople

Worker’s fatigue

Lack of training

Low quality of

raw material

Bad working

conditions

Low commitment

to quality

Delay in arrival

Low maintenance

Old technology

Improper handling

Not enough R&D

Nonoptional

manufacturing methods

295

The subsequent effort to correct any deﬁciencies should result in a reduced cost of quality and an increase in sponsor

or customer acceptance of the project’s product. Quality audits may be scheduled or random, and may be conducted by

internal or external auditors.

Quality audits can conﬁrm the implementation of approved change requests including updates, corrective actions,

defect repairs, and preventive actions.

8.2.2.6 DESIGN FOR X

Design for X (DfX) is a set of technical guidelines that may be applied during the design of a product for the optimization

of a speciﬁc aspect of the design. DfX can control or even improve the product’s ﬁnal characteristics. The X in DfX can

be different aspects of product development, such as reliability, deployment, assembly, manufacturing, cost, service,

usability, safety, and quality. Using the DfX may result in cost reduction, quality improvement, better performance, and

customer satisfaction.

8.2.2.7 PROBLEM SOLVING

Problem solving entails ﬁnding solutions for issues or challenges. It can include gathering additional information,

critical thinking, creative, quantitative and/or logical approaches. Effective and systematic problem solving is a

fundamental element in quality assurance and quality improvement. Problems can arise as a result of the Control Quality

process or from quality audits and can be associated with a process or deliverable. Using a structured problem-solving

method will help eliminate the problem and develop a long-lasting solution. Problem-solving methods generally include

the following elements:

 Deﬁning the problem,

 Identifying the root-cause,

 Generating possible solutions,

 Choosing the best solution,

 Implementing the solution, and

 Verifying solution effectiveness.

296 Part 1 - Guide

8.2.2.8 QUALITY IMPROVEMENT METHODS

Quality improvements can occur based on ﬁndings and recommendations from quality control processes, the ﬁndings

of the quality audits, or problem solving in the Manage Quality process. Plan-do-check-act and Six Sigma are two of the

most common quality improvement tools used to analyze and evaluate opportunities for improvement.

8.2.3 MANAGE QUALITY: OUTPUTS

8.2.3.1 QUALITY REPORTS

The quality reports can be graphical, numerical, or qualitative. The information provided can be used by other

processes and departments to take corrective actions in order to achieve the project quality expectations. The information

presented in the quality reports may include all quality management issues escalated by the team; recommendations for

process, project, and product improvements; corrective actions recommendations (including rework, defect/bugs repair,

100% inspection, and more); and the summary of ﬁndings from the Control Quality process.

8.2.3.2 TEST AND EVALUATION DOCUMENTS

Test and evaluation documents can be created based on industry needs and the organization’s templates. They are

inputs to the Control Quality process and are used to evaluate the achievement of quality objectives. These documents

may include dedicated checklists and detailed requirements traceability matrices as part of the document.

8.2.3.3 CHANGE REQUESTS

Described in Section 4.3.3.4. If changes occur during the Manage Quality process that impact any of the components

of the project management plan, project documents, or project or product management processes, the project manager

should submit a change request and follow the Perform Integrated Change Control process as deﬁned in Section 4.6.

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8.2.3.4 PROJECT MANAGEMENT PLAN UPDATES

Any change to the project management plan goes through the organization’s change control process via a change

request. Components that may require a change request for the project management plan include but are not limited to:

 Quality management plan. Described in Section 8.1.3.1. The agreed-upon approach to managing quality may

need to be modiﬁed due to the actual results.

 Scope baseline. Described in Section 5.4.3.1. The scope baseline may change as a result of speciﬁc quality

management activities.

 Schedule baseline. Described in Section 6.5.3.1. The schedule baseline may change as a result of speciﬁc

quality management activities.

 Cost baseline. Described in Section 7.3.3.1. The cost baseline may change as a result of speciﬁc quality

management activities.

8.2.3.5 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Issue log. Described in Section 4.3.3.3. New issues raised as a result of this process are recorded in the

issue log.

 Lessons learned register. Described in Section 4.4.3.1. The lessons learned register is updated with information

on challenges encountered and how they could have been avoided as well as approaches that worked well for

the managing quality.

 Risk register. Described in Section 11.2.3.1. New risks identiﬁed during this process are recorded in the risk

298 Part 1 - Guide

8.3 CONTROL QUALITY

Control Quality is the process of monitoring and recording results of executing the quality management activities in

order to assess performance and ensure the project outputs are complete, correct, and meet customer expectations.

The key beneﬁt of this process is verifying that project deliverables and work meet the requirements speciﬁed by key

stakeholders for ﬁnal acceptance. The Control Quality process determines if the project outputs do what they were

intended to do. Those outputs need to comply with all applicable standards, requirements, regulations, and speciﬁcations.

This process is performed throughout the project.

The inputs, tools and techniques, and outputs of this process are depicted in Figure 8-10. Figure 8-11 depicts the

data ﬂow diagram of the process.

Figure 8-10. Control Quality: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

Control Quality

.1 Data gathering

• Checklists

• Check sheets

• Statistical sampling

• Questionnaires and surveys

.2 Data analysis

• Performance reviews

• Root cause analysis

.3 Inspection

.4 Testing/product evaluations

.5 Data representation

• Cause-and-effect diagrams

• Control charts

• Histogram

• Scatter diagrams

.6 Meetings

.1 Project management plan

• Quality management plan

.2 Project documents

• Lessons learned register

• Quality metrics

• Test and evaluation

documents

.3 Approved change requests

.4 Deliverables

.5 Work performance data

.6 Enterprise environmental

factors

.7 Organizational process assets

.1 Quality control measurements

.2 Verified deliverables

.3 Work performance

information

.4 Change requests

.5 Project management plan

updates

• Quality management plan

.6 Project documents updates

• Issue log

• Lessons learned register

• Risk register

• Test and evaluation

documents

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299

• Project

charter

4.5

Monitor and

Control

Project Work

4.6

Perform

Integrated

Change Control

5.5

Validate

Scope

Project management plan

• Quality management plan

Project documents

• Lessons learned register

• Quality metrics

• Test and evaluation documents

Project

Management

Plan

Project

Documents

Project

Documents

8.3

Control

Quality

Enterprise/

Organization

• Enterprise environmental factors

• Organizational process assets

• Approved change requests

• Deliverables

• Work performance data

• Work performance information

• Change requests

• Quality control measurements

• Verified deliverables

Project management plan updates

• Quality management plan

Project documents updates

• Issue log

• Lessons learned register

• Risk register

• Test and evaluation documents

Project

Management

Plan

4.6

Perform

Integrated

Change Control

4.3

Direct and

Manage

Project Work

Figure 8-11. Control Quality: Data Flow Diagram

The Control Quality process is performed to measure the completeness, compliance, and ﬁtness for use of a product

or service prior to user acceptance and ﬁnal delivery. This is done by measuring all steps, attributes, and variables used

to verify conformance or compliance to the speciﬁcations stated during the planning stage.

Quality control should be performed throughout the project to formally demonstrate, with reliable data, that the

sponsor’s and/or customer’s acceptance criteria have been met.

300 Part 1 - Guide

The level of effort to control quality and the degree of implementation may differ between industries and project

management styles; in pharmaceutical, health, transportation, and nuclear industries, for example, there may be stricter

quality control procedures compared to other industries, and the effort needed to meet the standards may be extensive.

For example, in agile projects, the Control Quality activities may be performed by all team members throughout the

project life cycle. In waterfall model-based projects, the quality control activities are performed at speciﬁc times, toward

the end of the project or phase, by speciﬁed team members.

8.3.1 CONTROL QUALITY: INPUTS

8.3.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to the quality

management plan. Described in Section 8.1.3.1, the quality management plan deﬁnes how quality control will be

performed within the project.

8.3.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Lessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project can be applied to

later phases in the project to improve quality control.

 Quality metrics. Described in Section 8.1.3.2. A quality metric speciﬁcally describes a project or product attribute

and how the Control Quality process will verify compliance to it.

 Test and evaluation documents. Described in Section 8.2.3.2. Test and evaluation documents are used to

evaluate achievement of the quality objectives.

301

8.3.1.3 APPROVED CHANGE REQUESTS

Described in Section 4.6.3.1. As part of the Perform Integrated Change Control process, a change log update indicates

that some changes are approved and some are not. Approved change requests may include modiﬁcations such as

defect repairs, revised work methods, and revised schedules. Partial change completion may result in inconsistencies

and later delays due to incomplete steps or corrections. The implementation of approved changes should be veriﬁed,

conﬁrmed for completeness, retested, and certiﬁed as correct.

8.3.1.4 DELIVERABLES

A deliverable is any unique and veriﬁable product, result, or capability to perform a service that is required to be

produced to complete a process, phase, or project. Deliverables that are outputs from the Direct and Manage Project

Work process are inspected and compared to the acceptance criteria deﬁned in the project scope statement.

8.3.1.5 WORK PERFORMANCE DATA

Described in Section 4.3.3.2. Work performance data contains data on product status such as observations, quality

metrics, and measurements for technical performance, as well as project quality information on schedule performance

and cost performance.

8.3.1.6 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Control Quality process include but are not limited to:

 Project management information system; quality management software can be used to track errors and variations

in processes or deliverables;

 Governmental agency regulations; and

 Rules, standards, and guidelines speciﬁc to the application area.

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8.3.1.7 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Control Quality process include but are not limited to:

 Quality standards and policies;

 Quality templates, for example, check sheets, checklists, etc. and;

 Issue and defect reporting procedures and communication policies.

8.3.2 CONTROL QUALITY: TOOLS AND TECHNIQUES

8.3.2.1 DATA GATHERING

Data-gathering techniques that can be used for this process include but are not limited to:

 Checklists. Described in Section 11.2.2.2. Checklists help in managing the control quality activities in a

structured manner.

 Check sheets. Check sheets are also known as tally sheets and are used to organize facts in a manner that will

facilitate the effective collection of useful data about a potential quality problem. They are especially useful for

gathering attributes data while performing inspections to identify defects; for example, data about the frequencies

or consequences of defects collected. See Figure 8-12.

Figure 8-12. Check Sheets

Defects/Date Date 1 Date 2 Date 3 Date 4 Total

Small scratch

Large scratch

Bent

Missing component

Wrong color

Labeling error

303

 Statistical sampling. Statistical sampling involves choosing part of a population of interest for inspection (for

example, selecting 10 engineering drawings at random from a list of 75). The sample is taken to measure controls

and verify quality. Sample frequency and sizes should be determined during the Plan Quality Management process.

 Questionnaires and Surveys. Surveys may be used to gather data about customer satisfaction after the

deployment of the product or service. The cost regarding defects identiﬁed in the surveys may be considered

external failure costs in the COQ model and can have extensive cost implications for the organization.

8.3.2.2 DATA ANALYSIS

Data analysis techniques that can be used for this process include but are not limited to:

 Performance reviews. Performance reviews measure, compare, and analyze the quality metrics deﬁned by the

Plan Quality Management process against the actual results.

 Root cause analysis (RCA). Described in Section 8.2.2.2. Root cause analysis is used to identify the source

of defects.

8.3.2.3 INSPECTION

An inspection is the examination of a work product to determine if it conforms to documented standards. The results

of inspections generally include measurements and may be conducted at any level. The results of a single activity can be

inspected, or the ﬁnal product of the project can be inspected. Inspections may be called reviews, peer reviews, audits,

or walkthroughs. In some application areas, these terms have narrow and speciﬁc meanings. Inspections also are used

to verify defect repairs.

8.3.2.4 TESTING/PRODUCT EVALUATIONS

Testing is an organized and constructed investigation conducted to provide objective information about the quality

of the product or service under test in accordance with the project requirements. The intent of testing is to ﬁnd errors,

defects, bugs, or other nonconformance problems in the product or service. The type, amount, and extent of tests

needed to evaluate each requirement are part of the project quality plan and depend on the nature of the project, time,

budget, and other constraints. Tests can be performed throughout the project, as different components of the project

become available, and at the end of the project on the ﬁnal deliverables. Early testing helps identify nonconformance

problems and helps reduce the cost of ﬁxing the nonconforming components.

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Different application areas require different tests. For example, software testing may include unit testing, integration

testing, black-box, white-box, interface testing, regression testing, Alpha testing, etc. In construction projects, testing

may include cement strength, concrete workability test, nondestructive tests at construction sites for testing the quality

of hardened concrete structures, and soil tests. In hardware development, testing may include environmental stress

screening, burn-in tests, system testing, and more.

8.3.2.5 DATA REPRESENTATION

Data representation techniques that can be used for this process include but are not limited to:

 Cause-and-effect diagrams. Described in Section 8.2.2.4. Cause-and-effect diagrams are used to identify the

possible effects of quality defects and errors.

 Control charts. Control charts are used to determine whether or not a process is stable or has predictable

performance. Upper and lower speciﬁcation limits are based on the requirements and reﬂect the maximum and

minimum values allowed. Upper and lower control limits are different from speciﬁcation limits. The control limits

are determined using standard statistical calculations and principles to ultimately establish the natural capability

for a stable process. The project manager and appropriate stakeholders may use the statistically calculated

control limits to identify the points at which corrective action will be taken to prevent performance that remains

outside the control limits. Control charts can be used to monitor various types of output variables. Although used

most frequently to track repetitive activities required for producing manufactured lots, control charts may also be

used to monitor cost and schedule variances, volume, frequency of scope changes, or other management results

to help determine if the project management processes are in control.

 Histograms. Described in Section 8.2.2.4. Histograms can demonstrate the number of defects by source

or by component.

 Scatter diagrams. Described in Section 8.2.2.4. Scatter diagrams can show the planned performance on one

axis and the actual performance on the second axis.

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8.3.2.6 MEETINGS

The following meetings may be used as part of the Control Quality process:

 Approved change requests review. All approved change requests should be reviewed to verify that they were

implemented as approved. This review should also check that partial changes are completed and all parts have

been properly implemented, tested, completed, and certiﬁed.

 Retrospectives/lesson learned. A meeting held by a project team to discuss:

 Successful elements in the project/phase,

 What could be improved,

 What to incorporate in the ongoing project and what in future projects, and

 What to add to the organization process assets.

8.3.3 CONTROL QUALITY: OUTPUTS

8.3.3.1 QUALITY CONTROL MEASUREMENTS

Quality control measurements are the documented results of Control Quality activities. They should be captured in the

format that was speciﬁed in the quality management plan.

8.3.3.2 VERIFIED DELIVERABLES

A goal of the Control Quality process is to determine the correctness of deliverables. The results of performing the

Control Quality process are veriﬁed deliverables that become an input to the Validate Scope process (Section 5.5) for

formalized acceptance. If there were any change requests or improvements related to the deliverables, they may be

changed, inspected, and reveriﬁed.

8.3.3.3 WORK PERFORMANCE INFORMATION

Described in Section 4.5.1.3. Work performance information includes information on project requirements fulﬁllment,

causes for rejections, rework required, recommendations for corrective actions, lists of veriﬁed deliverables, status of

the quality metrics, and the need for process adjustments.

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8.3.3.4 CHANGE REQUESTS

Described in Section 4.3.3.4. If changes occur during the Control Quality process that may impact any of the

components of the project management plan or project documents, the project manager should submit a change

request. Change requests are processed for review and disposition through the Perform Integrated Change Control

process (Section 4.6).

8.3.3.5 PROJECT MANAGEMENT PLAN UPDATES

Any change to the project management plan goes through the organization’s change control process via a change

request. Components that may require a change request for the project management plan include but are not limited to

the quality management plan, as described in Section 8.1.3.1.

8.3.3.6 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Issue log. Described in Section 4.3.3.3. Many times a deliverable that does not meet the quality requirements

is documented as an issue.

 Lessons learned register. Described in Section 4.4.3.1. The lessons learned register is updated with information

on the source of quality defects and how they could have been avoided as well as approaches that worked well.

 Risk register. Described in Section 11.2.3.1. New risks identiﬁed during this process are recorded in the risk

 Test and evaluation documents. Described in Section 8.2.3.2. Test and evaluation documents may be modiﬁed

as a result of this process in order to make future tests more effective.

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PROJECT RESOURCE MANAGEMENT

Project Resource Management includes the processes to identify, acquire, and manage the resources needed for

the successful completion of the project. These processes help ensure that the right resources will be available to the

project manager and project team at the right time and place.

The Project Resource Management processes are:

9.1 Plan Resource Management—The process of deﬁning how to estimate, acquire, manage, and utilize physical

and team resources.

9.2 Estimate Activity Resources—The process of estimating team resources and the type and quantities of

material, equipment, and supplies necessary to perform project work.

9.3 Acquire Resources—The process of obtaining team members, facilities, equipment, materials, supplies, and

other resources necessary to complete project work.

9.4 Develop Team—The process of improving competencies, team member interaction, and the overall team

environment to enhance project performance.

9.5 Manage Team—The process of tracking team member performance, providing feedback, resolving issues,

and managing team changes to optimize project performance.

9.6 Control Resources—The process of ensuring that the physical resources assigned and allocated to the

project are available as planned, as well as monitoring the planned versus actual use of resources, and performing

corrective action as necessary.

Figure 9-1 provides an overview of the Project Resource Management processes. The Project Resource

Management processes are presented as discrete processes with deﬁned interfaces while, in practice, they overlap

and interact in ways that cannot be completely detailed in the PMBOK® Guide.

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.1 Inputs

.1 Project charter

.2 Project management plan

.3 Project documents

.4 Enterprise environmental

factors

.5 Organizational process

assets

.2 Tools & Techniques

.1 Expert judgment

.2 Data representation

.3 Organizational theory

.4 Meetings

.3 Outputs

.1 Resource management plan

.2 Team charter

.3 Project documents updates

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Enterprise environmental

factors

.4 Organizational process

assets

.2 Tools & Techniques

.1 Expert judgment

.2 Bottom-up estimating

.3 Analogous estimating

.4 Parametric estimating

.5 Data analysis

.6 Project management

information system

.7 Meetings

.3 Outputs

.1 Resource requirements

.2 Basis of estimates

.3 Resource breakdown

structure

.4 Project documents updates

1 Inputs

.1 Project management plan

.2 Project documents

.3 Enterprise environmental

factors

.4 Organizational process assets

.2 Tools & Techniques

.1 Decision making

.2 Interpersonal and team skills

.3 Pre-assignment

.4 Virtual teams

.3 Outputs

.1 Physical resource

assignments

.2 Project team assignments

.3 Resource calendars

.4 Change requests

.5 Project management plan

updates

.6 Project documents updates

.7 Enterprise environmental

factors updates

.8 Organizational process

assets updates

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Enterprise environmental

factors

.4 Organizational process

assets

.2 Tools & Techniques

.1 Colocation

.2 Virtual teams

.3 Communication technology

.4 Interpersonal and team skills

.5 Recognition and rewards

.6 Training

.7 Individual and team

assessments

.8 Meetings

.3 Outputs

.1 Team performance

assessments

.2 Change requests

.3 Project management plan

updates

.4 Project documents updates

.5 Enterprise environmental

factors updates

.6 Organizational process assets

updates

1 Inputs

.1 Project management plan

.2 Project documents

.3 Work performance reports

.4 Team performance

assessments

.5 Enterprise environmental

factors

.6 Organizational process assets

.2 Tools & Techniques

.1 Interpersonal and team skills

.2 Project management

information system

.3 Outputs

.1 Change requests

.2 Project management plan

updates

.3 Project documents updates

.4 Enterprise environmental

factors updates

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Work performance data

.4 Agreements

.5 Organizational process assets

.2 Tools & Techniques

.1 Data analysis

.2 Problem solving

.3 Interpersonal and team skills

.4 Project management

information system

.3 Outputs

.1 Work performance information

.2 Change requests

.3 Project management plan

updates

.4 Project documents updates

Project Resource

Management Overview

9.2 Estimate

Activity Resources

9.1 Plan Resource

Management 9.3 Acquire Resources

9.4 Develop Team

9.5 Manage Team

9.6 Control Resources

Figure 9-1. Project Resource Management Overview

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There is a distinction between the skills and competencies needed for the project manager to manage team

resources versus physical resources. Physical resources include equipment, materials, facilities, and infrastructure.

Team resources or personnel refer to the human resources. Personnel may have varied skill sets, may be assigned

full- or part-time, and may be added or removed from the project team as the project progresses. There is some overlap

between Project Resource Management and Project Stakeholder Management (Section 13). This section (Section 9)

focuses on the subset of stakeholders who make up the project team.

KEY CONCEPTS FOR PROJECT RESOURCE MANAGEMENT

The project team consists of individuals with assigned roles and responsibilities who work collectively to achieve

a shared project goal. The project manager should invest suitable effort in acquiring, managing, motivating, and

empowering the project team. Although speciﬁc roles and responsibilities for the project team members are assigned,

the involvement of all team members in project planning and decision making is beneﬁcial. Participation of team

members during planning adds their expertise to the process and strengthens their commitment to the project.

The project manager should be both leader and manager of the project team. In addition to project management

activities such as initiating, planning, executing, monitoring and controlling, and closing the various project phases, the

project manager is responsible for the team formation as an effective group. The project manager should be aware of

different aspects that inﬂuence the team, such as:

 Team environment,

 Geographical locations of team members,

 Communications among stakeholders,

 Organizational change management,

 Internal and external politics,

 Cultural issues and organizational uniqueness, and

 Other factors that may alter project performance.

As a leader, the project manager is also responsible for proactively developing team skills and competencies while

retaining and improving team satisfaction and motivation. The project manager should be aware of, and subscribe to,

professional and ethical behavior, and ensure that all team members adhere to these behaviors.

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Physical resource management is concentrated in allocating and using the physical resources (material, equipment,

and supplies, for example) needed for successful completion of the project in an efﬁcient and effective way. In order to do

that, organizations should have data on resource demands (now and in the reasonable future), resource conﬁgurations

that will be required to meet those demands, and the supply of resources. Failing to manage and control resources

efﬁciently is a source of risk for successful project completion. For example:

 Failing to secure critical equipment or infrastructure on time may result in delays in the manufacturing of the

ﬁnal product,

 Ordering low-quality material may damage the quality of the product causing a high rate of recalls or rework, and

 Keeping too much inventory may result in high operations costs and reduce the organization’s proﬁt. Unacceptably

low inventory level, on the other hand, may result in not satisfying customer demand and, again, reduce the

organization’s proﬁt.

TRENDS AND EMERGING PRACTICES IN PROJECT RESOURCE MANAGEMENT

Project management styles are shifting away from a command and control structure for managing projects and

toward a more collaborative and supportive management approach that empowers teams by delegating decision

making to the team members. In addition, modern project resource management approaches seek to optimize resource

utilization. Trends and emerging practices for Project Resource Management include but are not limited to:

 Resource management methods. Due to the scarce nature of critical resources, in some industries, several

trends have become popular in the past several years. There is extensive literature about lean management, just-

in-time (JIT) manufacturing, Kaizen, total productive maintenance (TPM), theory of constraints (TOC), and other

methods. A project manager should determine if the performing organization has adopted one or more resource

management tools and adapt the project accordingly.

 Emotional intelligence (EI). The project manager should invest in personal EI by improving inbound (e.g.,

self-management and self-awareness) and outbound (e.g., relationship management) competencies. Research

suggests that project teams that succeed in developing team EI or become an emotionally competent group are

more effective. Additionally, there is a reduction in staff turnover.

 Self-organizing teams. The increase in using agile approaches mainly for the execution of IT projects has given

rise to the self-organizing team, where the team functions with an absence of centralized control. In projects

that have self-organizing teams, the project manager (who may not be called a project manager) role provides

the team with the environment and support needed and trusts the team to get the job done. Successful self-

organizing teams usually consist of generalized specialists, instead of subject matter experts, who continuously

adapt to the changing environment and embrace constructive feedback.

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 Virtual teams/distributed teams. The globalization of projects has promoted the need for virtual teams that work

on the same project, but are not colocated at the same site. The availability of communication technology such as

email, audio conferencing, social media, web-based meetings, and video conferencing has made virtual teams

feasible. Managing virtual teams has unique advantages, such as being able to use special expertise on a project

team even when the expert is not in the same geographic area, incorporating employees who work from home

ofﬁces, and including people with mobility limitations or disabilities. The challenges of managing virtual teams

are mainly in the communication domain, including a possible feeling of isolation, gaps in sharing knowledge

and experience between team members, and difﬁculties in tracking progress and productivity, possible time zone

difference and cultural differences.

TAILORING CONSIDERATIONS

Because each project is unique, the project manager will need to tailor the way Project Resource Management

processes are applied. Considerations for tailoring include but are not limited to:

 Diversity. What is the diversity background of the team?

 Physical location. What is the physical location of team members and physical resources?

 Industry-specific resources. What special resources are needed in the industry?

 Acquisition of team members. How will team members be acquired for the project? Are team resources

full-time or part-time on the project?

 Management of team. How is team development managed for the project? Are there organizational tools to

manage team development or will new ones need to be established? Are there team members who have special

needs? Will the team need special training to manage diversity?

 Life cycle approaches. What life cycle approach will be used on the project?

CONSIDERATIONS FOR AGILE/ADAPTIVE ENVIRONMENTS

Projects with high variability beneﬁt from team structures that maximize focus and collaboration, such as self-

organizing teams with generalizing specialists.

Collaboration is intended to boost productivity and facilitate innovative problem solving. Collaborative teams may

facilitate accelerated integration of distinct work activities, improve communication, increase knowledge sharing, and

provide ﬂexibility of work assignments in addition to other advantages.

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Although the beneﬁts of collaboration also apply to other project environments, collaborative teams are often critical

to the success of projects with a high degree of variability and rapid changes, because there is less time for centralized

tasking and decision making.

Planning for physical and human resources is much less predictable in projects with high variability. In these

environments, agreements for fast supply and lean methods are critical to controlling costs and achieving the schedule.

9.1 PLAN RESOURCE MANAGEMENT

Plan Resource Management is the process of deﬁning how to estimate, acquire, manage, and use team and physical

resources. The key beneﬁt of this process is that it establishes the approach and level of management effort needed

for managing project resources based on the type and complexity of the project. This process is performed once or at

predeﬁned points in the project. The inputs, tools and techniques, and outputs of the process are depicted in Figure 9-2.

Figure 9-3 depicts the data ﬂow diagram for the process.

Figure 9-2. Plan Resource Management: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

Plan Resource Management

.1 Expert judgment

.2 Data representation

• Hierarchical charts

• Responsibility assignment

matrix

• Text-oriented formats

.3 Organizational theory

.4 Meetings

.1 Project charter

.2 Project management plan

• Quality management plan

• Scope baseline

.3 Project documents

• Project schedule

• Requirements

documentation

• Risk register

• Stakeholder register

.4 Enterprise environmental

factors

.5 Organizational process assets

.1 Resource management plan

.2 Team charter

.3 Project documents updates

• Assumption log

• Risk register

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313

• Project

charter

4.1

Develop

Project

Charter

Project management plan

• Quality management plan

• Scope baseline

Project documents

• Project schedule

• Requirements documentation

• Risk register

• Stakeholder register

• Project charter

Project

Management

Plan

Project

Documents

Project

Documents

9.1

Plan

Resource

Management

Enterprise/

Organization

• Enterprise environmental factors

• Organizational process assets

• Resource management plan

• Team charter

Project documents updates

• Assumption log

• Risk register

Project

Management

Plan

Figure 9-3. Plan Resource Management: Data Flow Diagram

Resource planning is used to determine and identify an approach to ensure that sufﬁcient resources are available for

the successful completion of the project. Project resources may include team members, supplies, materials, equipment,

services and facilities. Effective resource planning should consider and plan for the availability of, or competition for,

scarce resources.

Those resources can be obtained from the organization’s internal assets or from outside the organization through a

procurement process. Other projects may be competing for the same resources required for the project at the same time

and location. This may signiﬁcantly impact project costs, schedules, risks, quality, and other project areas.

314 Part 1 - Guide

9.1.1 PLAN RESOURCE MANAGEMENT: INPUTS

9.1.1.1 PROJECT CHARTER

Described in Section 4.1.3.1. The project charter provides the high-level project description and requirements. It also

has the key stakeholder list, summary milestones, and preapproved ﬁnancial resources that may inﬂuence the resource

management of the project.

9.1.1.2 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Quality management plan. Described in Section 8.1.3.1. The quality management plan helps deﬁne the level of

resources that will be required to achieve and maintain the deﬁned level of quality and achieve the metrics for

the project.

 Scope baseline. Described in Section 5.4.3.1. The scope baseline identiﬁes the deliverables that drive the types

and quantities of resources that will need to be managed.

9.1.1.3 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Project schedule. Described in Section 6.5.3.2. The project schedule shows the timeline for needed resources.

 Requirements documentation. Described in Section 5.2.3.1. Requirements will dictate the type and amount of

resources needed for the project and may inﬂuence how they are managed.

 Risk register. Described in Section 11.2.3.1. The risk register contains information on threats and opportunities

that may impact resource planning.

 Stakeholder register. Described in Section 13.1.3.1. The stakeholder register aids in identifying those

stakeholders who have a particular interest in or an impact on resources needed for the project. It also helps to

identify stakeholders who can inﬂuence the use of one kind of resource over another.

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9.1.1.4 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Plan Resource Management include but are not limited to:

 Organizational culture and structure,

 Geographic distribution of facilities and resources,

 Existing resources competencies and availability, and

 Marketplace conditions.

9.1.1.5 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Plan Resource Management include but are not limited to:

 Human resource policies and procedures,

 Physical resource management policies and procedures,

 Safety policies,

 Security policies,

 Templates for the resource management plan, and

 Historical information for similar projects.

9.1.2 PLAN RESOURCE MANAGEMENT: TOOLS AND TECHNIQUES

9.1.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge

or training in the following topics:

 Negotiating for the best resources within the organization;

 Talent management and personnel development;

 Determining the preliminary effort level needed to meet project objectives;

 Determining reporting requirements based on the organizational culture;

 Estimating lead times required for acquisition, based on lessons learned and market conditions;

 Identifying risks associated with resource acquisition, retention, and release plans;

 Complying with applicable government and union regulations; and

 Managing sellers and the logistics effort to ensure materials and supplies are available when needed.

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9.1.2.2 DATA REPRESENTATION

Data representation techniques that can be used for this process include but are not limited to charts. Various formats

exist to document and communicate team member roles and responsibilities. Most fall into hierarchical, matrix, or text-

oriented formats. Some project assignments are listed in subsidiary plans, such as the risk, quality, or communications

management plans. Regardless of the method used to document team member roles, the objective is to ensure that

each work package has an unambiguous owner and that all team members have a clear understanding of their roles

and responsibilities. A hierarchical format may be used to represent high-level roles, while a text-based format may be

better suited to document the detailed responsibilities.

 Hierarchical charts. The traditional organizational chart structure can be used to show positions and relationships

in a graphical, top-down format.

 Work breakdown structures (WBS). The WBS is designed to show how project deliverables are broken down

into work packages and provide a way of showing high-level areas of responsibility.

 Organizational breakdown structure (OBS). While the WBS shows a breakdown of project deliverables, an OBS

is arranged according to an organization’s existing departments, units, or teams, with the project activities or

work packages listed under each department. An operational department, such as information technology or

purchasing, can see all of its project responsibilities by looking at its portion of the OBS.

 Resource breakdown structure. The resource breakdown structure is a hierarchical list of team and physical

resources related by category and resource type that is used for planning, managing and controlling project

work. Each descending (lower) level represents an increasingly detailed description of the resource until the

information is small enough to be used in conjunction with the work breakdown structure (WBS) to allow the

work to be planned, monitored, and controlled.

317

 Assignment Matrix. A RAM shows the project resources assigned to each work package. It is used to illustrate

the connections between work packages, or activities, and project team members. On larger projects, RAMs can

be developed at various levels. For example, a high-level RAM can deﬁne the responsibilities of a project team,

group, or unit within each component of the WBS. Lower-level RAMs are used within the group to designate roles,

responsibilities, and levels of authority for speciﬁc activities. The matrix format shows all activities associated

with one person and all people associated with one activity. This also ensures that there is only one person

accountable for any one task to avoid confusion about who is ultimately in charge or has authority for the work.

One example of a RAM is a RACI (responsible, accountable, consult, and inform) chart, shown in Figure 9-4.

The sample chart shows the work to be done in the left column as activities. The assigned resources can be

shown as individuals or groups. The project manager can select other options, such as “lead” and “resource”

designations, as appropriate for the project. A RACI chart is a useful tool to use to ensure clear assignment of

roles and responsibilities when the team consists of internal and external resources.

 Text-oriented formats. Team member responsibilities that require detailed descriptions can be speciﬁed in text-

oriented formats. Usually in outline form, these documents provide information such as responsibilities, authority,

competencies, and qualiﬁcations. The documents are known by various names including position descriptions

and role-responsibility-authority forms. These documents can be used as templates for future projects, especially

when the information is updated throughout the current project by applying lessons learned.

Figure 9-4. Sample RACI Chart

RACI Char

erson

Activity

Create charter

Collect

requirements

Submit change

request

Develop test plan

Ann Ben Carlos Dina Ed

R = Responsible A = Accountable C = Consult I = Inform

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9.1.2.3 ORGANIZATIONAL THEORY

Organizational theory provides information regarding the way in which people, teams, and organizational units

behave. Effective use of common techniques identiﬁed in organizational theory can shorten the amount of time, cost,

and effort needed to create the Plan Resource Management process outputs and improve planning efﬁciency. Applicable

organizational theories may recommend exercising a ﬂexible leadership style that adapts to the changes in a team’s

maturity level throughout the project life cycle. It is important to recognize that the organization’s structure and culture

impacts the project organizational structure.

9.1.2.4 MEETINGS

The project team may hold meetings to plan resource management for the project.

9.1.3 PLAN RESOURCE MANAGEMENT: OUTPUTS

9.1.3.1 RESOURCE MANAGEMENT PLAN

The resource management plan is the component of the project management plan that provides guidance on how

project resources should be categorized, allocated, managed, and released. It may be divided between the team

management plan and physical resource management plan according to the speciﬁcs of the project. The resource

management plan may include but is not limited to:

 Identification of resources. Methods for identifying and quantifying team and physical resources needed.

 Acquiring resources. Guidance on how to acquire team and physical resources for the project.

 Roles and responsibilities:

 Role. The function assumed by, or assigned to, a person in the project. Examples of project roles are civil

engineer, business analyst, and testing coordinator.

 Authority. The rights to apply project resources, make decisions, sign approvals, accept deliverables, and

inﬂuence others to carry out the work of the project. Examples of decisions that need clear authority

include the selection of a method for completing an activity, quality acceptance criteria, and how to

respond to project variances. Team members operate best when their individual levels of authority match

their individual responsibilities.

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319

 Responsibility. The assigned duties and work that a project team member is expected to perform in order to

complete the project’s activities.

 Competence. The skill and capacity required to complete assigned activities within the project constraints.

If project team members do not possess required competencies, performance can be jeopardized. When

such mismatches are identiﬁed, proactive responses such as training, hiring, schedule changes, or scope

changes are initiated.

 Project organization charts. A project organization chart is a graphic display of project team members and their

reporting relationships. It can be formal or informal, highly detailed or broadly framed, based on the needs of the

project. For example, the project organization chart for a 3,000-person disaster response team will have greater

detail than a project organization chart for an internal, 20-person project.

 Project team resource management. Guidance on how project team resources should be deﬁned, staffed,

managed, and eventually released.

 Training. Training strategies for team members.

 Team development. Methods for developing the project team.

 Resource control. Methods for ensuring adequate physical resources are available as needed and that the

acquisition of physical resources is optimized for project needs. Includes information on managing inventory,

equipment, and supplies during throughout the project life cycle.

 Recognition plan. Which recognition and rewards will be given to team members, and when they will be given.

9.1.3.2 TEAM CHARTER

The team charter is a document that establishes the team values, agreements, and operating guidelines for the team.

The team charter may include but is not limited to:

 Team values,

 Communication guidelines,

 Decision-making criteria and process,

 Conﬂict resolution process,

 Meeting guidelines, and

 Team agreements.

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The team charter establishes clear expectations regarding acceptable behavior by project team members. Early

commitment to clear guidelines decreases misunderstandings and increases productivity. Discussing areas such as

codes of conduct, communication, decision making, and meeting etiquette allows team members to discover values that

are important to one another. The team charter works best when the team develops it, or at least has an opportunity to

contribute to it. All project team members share responsibility for ensuring the rules documented in the team charter are

followed. The team charter can be reviewed and updated periodically to ensure a continued understanding of the team

ground rules and to orient and integrate new team members.

9.1.3.3 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Assumption log. Described in Section 4.1.3.2. The assumption log is updated with assumptions regarding the

availability, logistics requirements, and location of physical resources as well as the skill sets and availability of

team resources.

 Risk register. Described in Section 11.2.3.1. The risk register is updated with risks associated with team and

physical resource availability or other known resource-related risks.

9.2 ESTIMATE ACTIVITY RESOURCES

Estimate Activity Resources is the process of estimating team resources and the type and quantities of materials,

equipment, and supplies necessary to perform project work. The key beneﬁt of this process is that it identiﬁes the

type, quantity, and characteristics of resources required to complete the project. This process is performed periodically

throughout the project as needed. The inputs, tools and techniques, and outputs of this process are depicted in Figure

9-5. Figure 9-6 depicts the data ﬂow diagram of the process.

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Figure 9-5. Estimate Activity Resources: Inputs, Tools & Techniques, and Outputs

Figure 9-6. Estimate Activity Resources: Data Flow Diagram

Tools & TechniquesInputs Outputs

Estimate Activity Resources

.1 Expert judgment

.2 Bottom-up estimating

.3 Analogous estimating

.4 Parametric estimating

.5 Data analysis

• Alternatives analysis

.6 Project management

information system

.7 Meetings

.1 Project management plan

• Resource management plan

• Scope baseline

.2 Project documents

• Activity attributes

• Activity list

• Assumption log

• Cost estimates

• Resource calendars

• Risk register

.3 Enterprise environmental

factors

.4 Organizational process assets

.1 Resource requirements

.2 Basis of estimates

.3 Resource breakdown

structure

.4 Project documents updates

• Activity attributes

• Assumption log

• Lessons learned register

• Project

charter

9.2

Estimate Activity

Resources

Enterprise/

Organization

• Resource requirements

• Basis of estimates

• Resource breakdown

structure

Project management plan

• Resource management plan

• Scope baseline

Project documents

• Activity attributes

• Activity list

• Assumption log

• Cost estimates

• Resource calendars

• Risk register

• Enterprise environmental factors

• Organizational process assets

Project

Documents

Project

Management

Plan

Project

Documents

Project document updates

• Activity attributes

• Assumption log

• Lessons learned register

322 Part 1 - Guide

The Estimate Activity Resources process is closely coordinated with other processes, such as the Estimate Costs

process. For example:

 A construction project team will need to be familiar with local building codes. Such knowledge is often readily

available from local sellers. If the internal labor pool lacks experience with unusual or specialized construction

techniques, the additional cost for a consultant may be the most effective way to secure knowledge of the local

building codes.

 An automotive design team will need to be familiar with the latest automated assembly techniques. The requisite

knowledge could be obtained by hiring a consultant, by sending a designer to a seminar on robotics, or by

including someone from manufacturing as a member of the project team.

9.2.1 ESTIMATE ACTIVITY RESOURCES: INPUTS

9.2.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Resource management plan. Described in Section 9.1.3.1. The resource management plan deﬁnes the

approach to identify the different resources needed for the project. It also deﬁnes the methods to quantify the

resources needed for each activity and aggregates this information.

 Scope baseline. Described in Section 5.4.3.1. The scope baseline identiﬁes the project and product scope

necessary to meet the project objectives. The scope drives the needs for both team and physical resources.

9.2.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Activity attributes. Described in Section 6.2.3.2. Activity attributes provide the primary data source for use

in estimating team and physical resources required for each activity on the activity list. Examples of attributes

include the resource requirements, imposed dates, activity location, assumptions, and constraints.

 Activity list. Described in Section 6.2.3.1. The activity list identiﬁes the activities that will need resources.

323

 Assumption log. Described in Section 4.1.3.2. The assumption log may have information on productivity factors,

availability, cost estimates, and approaches to work that will inﬂuence the nature and number of team and

physical resources.

 Cost estimates. Described in Section 7.2.3.1. The cost of resources may impact resource selection from the

quantity and skill level perspectives.

 Resource calendars. A resource calendar identiﬁes the working days, shifts, start and end of normal business

hours, weekends, and public holidays when each speciﬁc resource is available. Information on which resources

(such as team resource, equipment, and material) are potentially available during a planned activity period is

used for estimating resource utilization. Resource calendars also specify when, and for how long, identiﬁed

team and physical resources will be available during the project. This information may be at the activity or

project level. This includes consideration of attributes such as resource experience and/or skill level, as well

as various geographical locations.

 Risk register. Described in Section 11.2.3.1. The risk register describes the individual risks that can impact

resource selection and availability.

9.2.1.3 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Estimate Activity Resources process include but are not

limited to:

 Resource location,

 Resource availability,

 Team resource skills,

 Organizational culture,

 Published estimating data, and

 Marketplace conditions.

324 Part 1 - Guide

9.2.1.4 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Estimate Activity Resources process include but are not

limited to:

 Policies and procedures regarding stafﬁng,

 Policies and procedures relating to supplies and equipment, and

 Historical information regarding types of resources used for similar work on previous projects.

9.2.2 ESTIMATE ACTIVITY RESOURCES: TOOLS AND TECHNIQUES

9.2.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge

or training in team and physical resource planning and estimating.

9.2.2.2 BOTTOM-UP ESTIMATING

Described in Section 6.4.2.5. Team and physical resources are estimated at the activity level and then aggregated to

develop the estimates for work packages, control accounts, and summary project levels.

9.2.2.3 ANALOGOUS ESTIMATING

Described in Section 6.4.2.2. Analogous estimating uses information regarding resources from a previous similar

project as the basis for estimating a future project. It is used as quick estimating method and can be used when the

project manager can only identify a few top levels of the WBS.

9.2.2.4 PARAMETRIC ESTIMATING

Described in Section 6.4.2.3. Parametric estimating uses an algorithm or a statistical relationship between historical

data and other variables to calculate resource quantities needed for an activity, based on historical data and project

parameters. For example, if an activity needs 4,000 hours of coding and it needs to ﬁnish it in 1 year, it will require two

people to code (each doing 2,000 hours a year). This technique can produce higher levels of accuracy depending on the

sophistication and underlying data built into the model.

325

9.2.2.5 DATA ANALYSIS

A data analysis technique used in this process includes but is not limited to alternatives analysis. Alternatives analysis

is used to evaluate identiﬁed options in order to select the options or approaches to use to execute and perform the work

of the project. Many activities have multiple options for accomplishment. They include using various levels of resource

capability or skills, different sizes or types of machines, different tools (manual versus automated), and make-rent-or-

buy decisions regarding the resources. Alternatives analysis assists in providing the best solution to perform the project

activities, within the deﬁned constraints.

9.2.2.6 PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS)

Described in Section 4.3.2.2. Project management information systems can include resource management software

that can help plan, organize, and manage resource pools and develop resource estimates. Depending on the sophistication

of the software, resource breakdown structures, resource availability, resource rates, and various resource calendars

can be deﬁned to assist in optimizing resource utilization.

9.2.2.7 MEETINGS

The project manager may hold planning meetings with functional managers to estimate the resources needed per

activity, level of effort (LoE), skill level of the team resources, and the quantity of the materials needed. Participants

at these meetings may include the project manager, the project sponsor, selected project team members, selected

stakeholders, and others as needed.

9.2.3 ESTIMATE ACTIVITY RESOURCES: OUTPUTS

9.2.3.1 RESOURCE REQUIREMENTS

Resource requirements identify the types and quantities of resources required for each work package or activity in a

work package and can be aggregated to determine the estimated resources for each work package, each WBS branch,

and the project as a whole. The amount of detail and the level of speciﬁcity of the resource requirement descriptions

can vary by application area. The resource requirements’ documentation can include assumptions that were made in

determining which types of resources are applied, their availability, and what quantities are needed.

326 Part 1 - Guide

9.2.3.2 BASIS OF ESTIMATES

Described in Section 6.4.3.2. The amount and type of additional details supporting the resource estimate vary by

application area. Regardless of the level of detail, the supporting documentation should provide a clear and complete

understanding of how the resource estimate was derived.

Supporting detail for resource estimates may include:

 Method used to develop the estimate,

 Resources used to develop the estimate (such as information from previous similar projects),

 Assumptions associated with the estimate,

 Known constraints,

 Range of estimates,

 Conﬁdence level of the estimate, and

 Documentation of identiﬁed risks inﬂuencing the estimate.

9.2.3.3 RESOURCE BREAKDOWN STRUCTURE

The resource breakdown structure is a hierarchical representation of resources by category and type (see Figure 9-7

for example). Examples of resource categories include but are not limited to labor, material, equipment, and supplies.

Resource types may include the skill level, grade level, required certiﬁcations, or other information as appropriate to the

project. In Plan Resource Management, the resource breakdown structure was used to guide the categorization for the

project. In this process it is a completed document that will be used to acquire and monitor resources.

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327

Figure 9-7. Sample Resource Breakdown Structure

9.2.3.4 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Activity attributes. Described in Section 6.2.3.2. The activity attributes are updated with the resource

requirements.

 Assumption log. Described in Section 4.1.3.2. The assumption log is updated with assumptions regarding the

types and quantities of resources required. Additionally, any resource constraints are entered including collective

bargaining agreements, continuous hours of operation, planned leave, etc.

 Lessons learned register. Described in Section 11.2.3.1. The lessons learned register can be updated with

techniques that were efﬁcient and effective in developing resource estimates, and information on those

techniques that were not efﬁcient or effective.

Project

Role

PersonnelMaterialEquipment

Role

Material

Level

Grade

Equipment

328 Part 1 - Guide

9.3 ACQUIRE RESOURCES

Acquire Resources is the process of obtaining team members, facilities, equipment, materials, supplies, and other

resources necessary to complete project work. The key beneﬁt of this process is that it outlines and guides the selection

of resources and assigns them to their respective activities. This process is performed periodically throughout the

project as needed. The inputs, tools and techniques, and outputs of the process are depicted in Figure 9-8. Figure 9-9

depicts the data ﬂow diagram for the process.

Figure 9-8. Acquire Resources: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

Acquire Resources

.1 Decision making

• Multicriteria decision

analysis

.2 Interpersonal and team skills

• Negotiation

.3 Pre-assignment

.4 Virtual teams

.1 Project management plan

• Resource management plan

• Procurement management

plan

• Cost baseline

.2 Project documents

• Project schedule

• Resource calendars

• Resource requirements

• Stakeholder register

.3 Enterprise environmental

factors

.4 Organizational process assets

.1 Physical resource

assignments

.2 Project team assignments

.3 Resource calendars

.4 Change requests

.5 Project management plan

updates

• Resource management plan

• Cost baseline

.6 Project documents updates

• Lessons learned register

• Project schedule

• Resource breakdown

structure

• Resource requirements

• Risk register

• Stakeholder register

.7 Enterprise environmental

factors updates

.8 Organizational process assets

updates

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329

Enterprise/

Organization

• Project

charter

4.6

Perform

Integrated

Change Control

Project management plan

• Resource management plan

• Procurement management plan

• Cost baseline

Project documents

• Project schedule

• Resource calendars

• Resource requirements

• Stakeholder register

Project

Management

Plan

Project

Documents

Project

Documents

9.3

Acquire

Resources

Enterprise/

Organization

• Enterprise environmental factors

• Organizational process assets

• Change requests

Project management plan updates

• Resource management plan

• Cost baseline

Project documents updates

• Lessons learned register

• Project schedule

• Resource breakdown structure

• Resource requirements

• Risk register

• Stakeholder register

• Physical resource assignments

• Project team assignments

• Resource calendars

Project

Management

Plan

• Enterprise environmental factors updates

• Organizational process assets updates

Figure 9-9. Acquire Resources: Data Flow Diagram

The resources needed for the project can be internal or external to the project-performing organization. Internal

resources are acquired (assigned) from functional or resource managers. External resources are acquired through the

procurement processes.

The project management team may or may not have direct control over resource selection because of collective

bargaining agreements, use of subcontractor personnel, a matrix project environment, internal or external reporting

relationships, or other reasons. It is important that the following factors are considered during the process of acquiring

the project resources:

330 Part 1 - Guide

 The project manager or project team should effectively negotiate and inﬂuence others who are in a position to

provide the required team and physical resources for the project.

 Failure to acquire the necessary resources for the project may affect project schedules, budgets, customer

satisfaction, quality, and risks. Insufﬁcient resources or capabilities decrease the probability of success and, in a

worst-case scenario, could result in project cancellation.

 If the team resources are not available due to constraints such as economic factors or assignment to other

projects, the project manager or project team may be required to assign alternative resources, perhaps with

different competencies or costs. Alternative resources are allowed provided there is no violation of legal,

regulatory, mandatory, or other speciﬁc criteria.

These factors should be considered and accounted for in the planning stages of the project. The project manager

or project management team will be required to document the impact of the unavailability of required resources in the

project schedule, project budget, project risks, project quality, training plans, and other project management plans.

9.3.1 ACQUIRE RESOURCES: INPUTS

9.3.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Resource management plan. Described in Section 9.1.3.1. The resource management plan provides guidance

on how to acquire resources for the project.

 Procurement management plan. Described in Section 12.1.3.1. The procurement management plan has

information regarding resources that will be acquired from outside the project. This includes information on how

procurements will be integrated with other project work and stakeholders involved in procuring resources.

 Cost baseline. Described in Section 7.3.3.1. The cost baseline provides the overall budget for the project activities.

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331

9.3.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Project schedule. Described in Section 6.5.3.2. The project schedule shows the activities and their planned start

and end dates to help determine when the resources need to be available and acquired.

 Resource calendars. Described in Section 9.3.3.3. Resource calendars document the time periods that each

resource needed for the project is available for the project. Creating a reliable schedule depends on having a

good understanding of each resource’s availability and schedule constraints, including time zones, work hours,

vacation time, local holidays, maintenance schedule and commitments to other projects. Resource calendars are

progressively elaborated and updated throughout the project. Once created as an output of this process, they are

used as needed whenever this process is repeated.

 Resource requirements. Described in Section 9.2.3.1. Resource requirements identify which resources need

to be acquired.

 Stakeholder register. Described in Section 13.1.3.1. The stakeholder register may reveal stakeholders’ needs

or expectations for speciﬁc resources to be used on the project that need to be considered in the Acquire

Resources process.

9.3.1.3 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Acquire Resources process include but are not limited to:

 Existing information on organizational resources including availability, competence levels, and prior experience

for team resources and resource costs;

 Marketplace conditions;

 Organizational structure; and

 Geographic locations.

9.3.1.4 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Acquire Resources process include but are not limited to:

 Policies and procedures for acquiring, allocating, and assigning resources to the project; and

 Historical information and lessons learned repository.

332 Part 1 - Guide

9.3.2 ACQUIRE RESOURCES: TOOLS AND TECHNIQUES

9.3.2.1 DECISION MAKING

Described in Section 5.2.2.4. Decision-making techniques that can be used in the Acquire Resources process include

but are not limited to multicriteria decision analysis, as described in Section 8.1.2.4. Selection criteria are often used to

select physical project resources, or the project team. Using a multicriteria decision analysis tool, criteria are developed

and used to rate or score potential resources (for example, choosing between internal and external team resources). The

criteria are weighted according to their relative importance and values can be changed for different types of resources.

Some examples of selection criteria that can be used are:

 Availability. Verify that the resource is available to work on the project within the time period needed.

 Cost. Verify if the cost of adding the resource is within the prescribed budget.

 Ability. Verify that the team member provides the capability needed by the project.

Some selection criteria that are unique for team resources are:

 Experience. Verify that the team member has the relevant experience that will contribute to the project success.

 Knowledge. Consider if the team member has relevant knowledge of the customer, similar implemented projects,

and nuances of the project environment.

 Skills. Determine if the team member has the relevant skills to use a project tool.

 Attitude. Determine if the team member has the ability to work with others as a cohesive team.

 International factors. Consider team member location, time zone, and communication capabilities.

9.3.2.2 INTERPERSONAL AND TEAM SKILLS

An interpersonal and team skill that can be used for this process includes but is not limited to negotiation. Described

in Section 12.2.2.5. Many projects need to negotiate for required resources. The project management team may need

to negotiate with:

 Functional managers. Ensure that the project receives the best resources possible in the required timeframe

and until their responsibilities are complete.

 Other project management teams within the performing organization. Appropriately assign or share scarce

or specialized resources.

 External organizations and suppliers. Provide appropriate, scarce, specialized, qualiﬁed, certiﬁed, or other

speciﬁc team or physical resources. Special consideration should be given to external negotiating policies,

practices, processes, guidelines, legal, and other such criteria.

333

The project management team’s ability to inﬂuence others plays an important role in negotiating resource allocation,

as does the politics of the organizations involved. For example, convincing a functional manager about the high visibility

of the project may inﬂuence him or her to assign the best resources to this project over competing ones.

9.3.2.3 PRE-ASSIGNMENT

When physical or team resources for a project are determined in advance, they are considered pre-assigned. This

situation can occur if the project is the result of speciﬁc resources being identiﬁed as part of a competitive proposal or if

the project is dependent upon the expertise of particular persons. Pre-assignment might also include the team members

who have already been assigned in Develop Project Charter Process or other processes before the initial Resource

Management Plan has been completed.

9.3.2.4 VIRTUAL TEAMS

The use of virtual teams creates new possibilities when acquiring project team members. Virtual teams can be

deﬁned as groups of people with a shared goal who fulﬁll their roles with little or no time spent meeting face to face. The

availability of communication technology such as email, audio conferencing, social media, web-based meetings, and

video conferencing has made virtual teams feasible. The virtual team model makes it possible to:

 Form teams of people from the same organization who live in widespread geographic areas;

 Add special expertise to a project team even though the expert is not in the same geographic area;

 Incorporate employees who work from home ofﬁces;

 Form teams of people who work different shifts, hours, or days;

 Include people with mobility limitations or disabilities;

 Move forward with projects that would have been held or canceled due to travel expenses; and

 Save the expense of ofﬁces and all physical equipment needed for employees.

Communication planning becomes increasingly important in a virtual team environment. Additional time may be

needed to set clear expectations, facilitate communications, develop protocols for resolving conﬂict, include people in

decision making, understand cultural differences, and share credit in successes.

9.3.3 ACQUIRE RESOURCES: OUTPUTS

9.3.3.1 PHYSICAL RESOURCE ASSIGNMENTS

Documentation of the physical resource assignments records the material, equipment, supplies, locations, and other

physical resources that will be used during the project.

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9.3.3.2 PROJECT TEAM ASSIGNMENTS

Documentation of team assignments records the team members and their roles and responsibilities for the project.

Documentation can include a project team directory and names inserted into the project management plan, such as the

project organization charts and schedules.

9.3.3.3 RESOURCE CALENDARS

A resource calendar identiﬁes the working days, shifts, start and end of normal business hours, weekends, and public

holidays when each speciﬁc resource is available. Information on which resources (such as team resource, equipment,

and material) are potentially available during a planned activity period is used for estimating resource utilization.

Resource calendars also specify when and for how long identiﬁed team and physical resources will be available during

the project. This information may be at the activity or project level. This includes consideration of attributes such as

resource experience and/or skill level, as well as various geographical locations.

9.3.3.4 CHANGE REQUESTS

Described in Section 4.3.3.4. When changes occur as a result of carrying out the Acquire Resources process (for

example, impacts to the schedule) or when recommended corrective or preventive actions impact any of the components

of the project management plan or project documents, the project manager needs to submit a change request. Change

requests are processed for review and disposition through the Perform Integrated Change Control process (Section 4.6).

9.3.3.5 PROJECT MANAGEMENT PLAN UPDATES

Any change to the project management plan goes through the organization’s change control process via a change

request. Components of the project management plan that may be updated as a result of carrying out this process

include but are not limited to:

 Resource management plan. Described in Section 9.1.3.1. The resource management plan may be updated to

reﬂect actual experience in acquiring resources for the project, including lessons learned in acquiring resources

early in the project that will impact how resources are acquired later in the project.

 Cost baseline. Described in Section 7.3.3.1. The cost baseline may change as a result of the acquisition of

resources for the project.

335

9.3.3.6 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Lessons learned register. Described in Section 4.4.3.1. The lessons learned register is updated with information

on challenges encountered and how they could have been avoided as well as approaches that worked well for

acquiring resources.

 Project schedule. Described in Section 6.5.3.2. Changes to the project schedule may result from the availability

of required resources.

 Resource breakdown structure. Described in Section 9.2.3.3. Resources acquired during this process are

recorded in the resource breakdown structure.

 Resource requirements. Described in Section 9.2.3.1. Resource requirements documentation is updated to

reﬂect resources acquired for the project.

 Risk register. Described in Section 11.2.3.1. New risks identiﬁed during this process are recorded in the risk

 Stakeholder register. Described in Section 13.1.3.1. The stakeholder register is updated with any new

stakeholders and any new information about existing stakeholders that has been gained as a result of

this process.

9.3.3.7 ENTERPRISE ENVIRONMENTAL FACTORS UPDATES

Enterprise environmental factors that are updated include but are not limited to:

 Resource availability within the organization, and

 Amount of the organization’s consumable resources that have been used.

9.3.3.8 ORGANIZATIONAL PROCESS ASSETS UPDATES

Organizational process assets that are updated as a result of the Acquire Resources process include but are not

limited to documentation related to acquiring, assigning and allocating resources.

336 Part 1 - Guide

9.4 DEVELOP TEAM

Develop Team is the process of improving competencies, team member interaction, and the overall team environment

to enhance project performance. The key beneﬁt of this process is that it results in improved teamwork, enhanced

interpersonal skills and competencies, motivated employees, reduced attrition, and improved overall project performance.

This process is performed throughout the project.

The inputs, tools and techniques, and outputs of the process are depicted in Figure 9-10. Figure 9-11 depicts the data

ﬂow diagram for the process.

Figure 9-10. Develop Team: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

Develop Team

.1 Colocation

.2 Virtual teams

.3 Communication technology

.4 Interpersonal and team skills

• Conflict management

• Influencing

• Motivation

• Negotiation

• Team building

.5 Recognition and rewards

.6 Training

.7 Individual and team

assessments

.8 Meetings

.1 Project management plan

• Resource management plan

.2 Project documents

• Lessons learned register

• Project schedule

• Project team assignments

• Resource calendars

• Team charter

.3 Enterprise environmental

factors

.4 Organizational process assets

1. Team performance

assessments

.2 Change requests

.3 Project management plan

updates

• Resource management plan

.4 Project documents updates

• Lessons learned register

• Project schedule

• Project team assignments

• Resource calendars

• Team charter

.5 Enterprise environmental

factors updates

.6 Organizational process assets

updates

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337

Enterprise/

Organization

• Project

charter

4.6

Perform

Integrated

Change Control

9.5

Manage

Team

Project management plan

• Resource management plan

Project documents

• Lessons learned register

• Project schedule

• Project team assignments

• Resource calendars

• Team charter

Project

Management

Plan

Project

Documents

Project

Documents

9.4

Develop

Team

Enterprise/

Organization

• Enterprise environmental factors

• Organizational process assets

• Change requests

• Team performance assessments

Project management plan updates

• Resource management plan

Project documents updates

• Lessons learned register

• Project schedule

• Project team assignments

• Resource calendars

• Team charter

Project

Management

Plan

• Enterprise environmental factors updates

• Organizational process assets updates

Figure 9-11. Develop Team: Data Flow Diagram

Project managers require the skills to identify, build, maintain, motivate, lead, and inspire project teams to achieve

high team performance and to meet the project’s objectives. Teamwork is a critical factor for project success, and

developing effective project teams is one of the primary responsibilities of the project manager. Project managers

should create an environment that facilitates teamwork and continually motivates the team by providing challenges

and opportunities, providing timely feedback and support as needed, and recognizing and rewarding good performance.

High team performance can be achieved by employing these behaviors:

 Using open and effective communication,

 Creating team-building opportunities,

 Developing trust among team members,

 Managing conﬂicts in a constructive manner,

 Encouraging collaborative problem solving, and

 Encouraging collaborative decision making.

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Project managers operate in a global environment and work on projects characterized by cultural diversity. Team

members often have diverse industry experience, communicate in multiple languages, and sometimes work with a

“team language” or cultural norm that may be different from their native one. The project management team should

capitalize on cultural differences, focus on developing and sustaining the project team throughout the project life cycle,

and promote working together interdependently in a climate of mutual trust. Developing the project team improves

the people skills, technical competencies, and overall team environment and project performance. It requires clear,

timely, effective, and efﬁcient communication between team members throughout the life of the project. Objectives of

developing a project team include but are not limited to:

 Improving the knowledge and skills of team members to increase their ability to complete project deliverables,

while lowering costs, reducing schedules, and improving quality;

 Improving feelings of trust and agreement among team members to raise morale, lower conﬂict, and increase

teamwork;

 Creating a dynamic, cohesive, and collaborative team culture to: (1) improve individual and team productivity,

team spirit, and cooperation; and (2) allow cross-training and mentoring between team members to share

knowledge and expertise; and

 Empowering the team to participate in decision making and take ownership of the provided solutions to improve

team productivity for more effective and efﬁcient results.

One of the models used to describe team development is the Tuckman ladder [19, 20], which includes ﬁve stages of

development that teams may go through. Although it is common for these stages to occur in order, it is not uncommon

for a team to get stuck in a particular stage or regress to an earlier stage. Projects with team members who worked

together in the past might skip a stage.

 Forming. This phase is where the team members meet and learn about the project and their formal roles and

responsibilities. Team members tend to be independent and not as open in this phase.

 Storming. During this phase, the team begins to address the project work, technical decisions, and the project

management approach. If team members are not collaborative or open to differing ideas and perspectives, the

environment can become counterproductive.

 Norming. In this phase, team members begin to work together and adjust their work habits and behaviors to

support the team. The team members learn to trust each other.

 Performing. Teams that reach the performing stage function as a well-organized unit. They are interdependent

and work through issues smoothly and effectively.

 Adjourning. In this phase, the team completes the work and moves on from the project. This typically occurs when

staff is released from the project as deliverables are completed or as part of the Close Project or Phase process.

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The duration of a particular stage depends upon team dynamics, team size, and team leadership. Project managers

should have a good understanding of team dynamics in order to move their team members through all stages in an

effective manner.

9.4.1 DEVELOP TEAM: INPUTS

9.4.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to the resource

management plan. Described in Section 9.1.3.1, the resource management plan provides guidance on providing

project team member rewards, feedback, additional training, and disciplinary actions as a result of team performance

assessments and other forms of project team management. The resource management plan may include also the team

performance assessment criteria.

9.4.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Lessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project with regard to

developing the team can be applied to later phases in the project to improve team performance.

 Project schedule. Described in Section 6.5.3.2. The project schedule deﬁnes how and when to provide training

to the project team and develop the competencies required at different phases. It identiﬁes the need for team

development strategies based on variations, if any, during the project execution.

 Project team assignments. Described in Section 9.3.3.1. Project team assignments identify the team and

member roles and responsibilities.

 Resource calendars. Described in Section 9.2.1.2. Resource calendars identify times when the project team

members can participate in team development activities. It also helps illustrate team availability during the

entire project.

 Team charter. Described in Section 9.1.3.2. The team charter is where the team operating guidelines are

documented. The team values and operating guidelines provide the structure that describes how the team will

operate together.

9.4.1.3 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Develop Team process include but are not limited to:

 Human resource management policies regarding hiring and termination, employee performance reviews,

employee development and training records, and recognition and rewards;

 Team member skills, competencies, and specialized knowledge; and

 Geographic distribution of team members.

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9.4.1.4 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Develop Team process include but are not limited to historical

information and the lessons learned repository.

9.4.2 DEVELOP TEAM: TOOLS AND TECHNIQUES

9.4.2.1 COLOCATION

Colocation involves placing many or all of the most active project team members in the same physical location to

enhance their ability to perform as a team. Colocation can be temporary, such as at strategically important times during

the project, or can continue for the entire project. Colocation strategies can include a team meeting room, common

places to post schedules, and other conveniences that enhance communication and a sense of community.

9.4.2.2 VIRTUAL TEAMS

The use of virtual teams can bring beneﬁts such as the use of more skilled resources, reduced costs, less travel and

relocation expenses, and the proximity of team members to suppliers, customers, or other key stakeholders. Virtual

teams can use technology to create an online team environment where the team can store ﬁles, use conversations

threads to discuss issues, and keep a team calendar.

9.4.2.3 COMMUNICATION TECHNOLOGY

Described in Section 10.1.2.3. Communication technology is important in addressing the team development issues in

colocated and virtual teams. It helps build a harmonious environment for the colocated team and a better understanding

for the virtual team, especially those working in different time zones. Examples of communication technology that may

be used are:

 Shared portal. A shared repository for information sharing (e.g., website, collaboration software or intranet) is

effective for virtual project teams.

 Video conferencing. Video conferencing is an important technique for effective communication with

virtual teams.

 Audio conferencing. Communication within a team using audio conferencing is another technique to build

rapport and conﬁdence within virtual teams.

 Email/chat. Regular communications using email and chat is also an effective technique.

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9.4.2.4 INTERPERSONAL AND TEAM SKILLS

Interpersonal and team skills that can be used for this process include but are not limited to:

 Conflict management. Described in Section 9.5.2.1. The project manager needs to resolve conﬂicts in a timely

manner and in a constructive way in order to achieve a high-performing team.

 Influencing. Described in Section 9.5.2.1. An inﬂuencing skill used in this process is gathering relevant and

critical information to address important issues and reach agreements while maintaining mutual trust.

 Motivation. Motivation is providing a reason for someone to act. Teams are motivated by empowering them to

participate in decision making and encouraging them to work independently.

 Negotiation. Described in Section 12.2.2.5. Negotiation among team members is used to reach consensus on

project needs. Negotiation can build trust and harmony among the team members.

 Team building. Team building is conducting activities that enhance the team’s social relations and build a

collaborative and cooperative working environment. Team building activities can vary from a 5-minute agenda

item in a status review meeting to an offsite, professionally facilitated event designed to improve interpersonal

relationships. The objective of team-building activities is to help individual team members work together effectively.

Team-building strategies are particularly valuable when team members operate from remote locations without the

beneﬁt of face-to-face contact. Informal communication and activities can help in building trust and establishing

good working relationships. While team building is essential during the initial stages of a project, it should be a

continuous process. Changes in a project environment are inevitable, and to manage them effectively, a continuous

or renewed team-building effort may be applied. The project manager should continually monitor team functionality

and performance to determine if any actions are needed to prevent or correct various team problems.

9.4.2.5 RECOGNITION AND REWARDS

Part of the team development process involves recognizing and rewarding desirable behavior. The original

plan for rewarding people is developed during the Plan Resource Management process. Rewards will be effective

only if they satisfy a need that is valued by that individual. Reward decisions are made, formally or informally,

during the process of managing the project team. Cultural differences should be considered when determining

recognition and rewards.

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People are motivated when they feel they are valued in the organization and this value is demonstrated by the rewards

given to them. Generally, money is viewed as a tangible aspect of any reward system, but intangible rewards could be

equally or even more effective. Most project team members are motivated by an opportunity to grow, accomplish, be

appreciated, and apply their professional skills to meet new challenges. A good strategy for project managers is to give

the team recognition throughout the life cycle of the project rather than waiting until the project is completed.

9.4.2.6 TRAINING

Training includes all activities designed to enhance the competencies of the project team members. Training can be

formal or informal. Examples of training methods include classroom, online, computer-based, on-the-job training from

another project team member, mentoring, and coaching. If project team members lack the necessary management or

technical skills, such skills can be developed as part of the project work. Scheduled training takes place as stated in

the resource management plan. Unplanned training takes place as a result of observation, conversation, and project

performance appraisals conducted during management of the project team. Training costs could be included in the

project budget or supported by the performing organization if the added skills may be useful for future projects. It may

be performed by in-house or by external trainers.

9.4.2.7 INDIVIDUAL AND TEAM ASSESSMENTS

Individual and team assessment tools give the project manager and the project team insight into areas of strengths

and weaknesses. These tools help project managers assess team members’ preferences, aspirations, how they process

and organize information, how they make decisions, and how they interact with people. Various tools are available such

as attitudinal surveys, speciﬁc assessments, structured interviews, ability tests, and focus groups. These tools can

provide improved understanding, trust, commitment, and communications among team members and facilitate more

productive teams throughout the project.

9.4.2.8 MEETINGS

Meetings are used to discuss and address pertinent topics for developing the team. Attendees include the project

manager and the project team. Types of meetings include but are not limited to project orientation meetings, team-

building meetings, and team development meetings.

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9.4.3 DEVELOP TEAM: OUTPUTS

9.4.3.1 TEAM PERFORMANCE ASSESSMENTS

As project team development efforts such as training, team building, and colocation are implemented, the project

management team makes formal or informal assessments of the project team’s effectiveness. Effective team

development strategies and activities are expected to increase the team’s performance, which increases the likelihood

of meeting project objectives.

The evaluation of a team’s effectiveness may include indicators such as:

 Improvements in skills that allow individuals to perform assignments more effectively,

 Improvements in competencies that help team members perform better as a team,

 Reduced staff turnover rate, and

 Increased team cohesiveness where team members share information and experiences openly and help each

other to improve the overall project performance.

As a result of conducting an evaluation of the team’s overall performance, the project management team can

identify the speciﬁc training, coaching, mentoring, assistance, or changes required to improve the team’s performance.

This should also include identifying the appropriate or required resources necessary to achieve and implement the

improvements identiﬁed in the assessment.

9.4.3.2 CHANGE REQUESTS

Described in Section 4.3.3.4. If change requests occur as a result of carrying out the Develop Team process or if

recommended corrective or preventive actions impact any of the components of the project management plan or project

documents, the project manager needs to submit a change request and follow the Perform Integrated Change Control

process as deﬁned in Section 4.6.

9.4.3.3 PROJECT MANAGEMENT PLAN UPDATES

Any change to the project management plan goes through the organization’s change control process via a change

request. Components that may require a change request for the project management plan include but are not limited to

the resource management plan, as described in Section 9.1.3.1.

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9.4.3.4 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Lessons learned register. Described in Section 4.4.3.1. The lessons learned register is updated with information

on challenges encountered and how they could have been avoided as well as approaches that worked well for

the development of the team.

 Project schedule. Described in Section 6.5.3.2. Activities to develop the project team may result in changes to

the project schedule.

 Project team assignments. Described in Section 9.3.3.1. When team development results in changes to agreed-

upon assignments, these changes are recorded in the project team assignments documentation.

 Resource calendars. Described in Section 9.2.1.2. Resource calendars are updated to reﬂect the availability of

resources for the project.

 Team charter. Described in Section 9.1.3.2. The team charter may be updated to reﬂect changes to agreed-upon

team operating guidelines that result from team development.

9.4.3.5 ENTERPRISE ENVIRONMENTAL FACTORS UPDATES

Enterprise environmental factors that are updated as a result of the Develop Project Team process include but are

not limited to:

 Employee development plan records, and

 Skill assessments.

9.4.3.6 ORGANIZATIONAL PROCESS ASSETS UPDATES

Organizational process assets that are updated as a result of the Develop Team process include but are not limited to:

 Training requirements, and

 Personnel assessment.

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9.5 MANAGE TEAM

Manage Team is the process of tracking team member performance, providing feedback, resolving issues, and

managing team changes to optimize project performance. The key beneﬁt of this process is that it inﬂuences team

behavior, manages conﬂict, and resolves issues. This process is performed throughout the project.

The inputs, tools and techniques, and outputs of the process are depicted in Figure 9-12. Figure 9-13 depicts the data

ﬂow diagram for the process.

Figure 9-12. Manage Team: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

Manage Team

.1 Interpersonal and team skills

• Conflict management

• Decision making

• Emotional intelligence

• Influencing

• Leadership

.2 Project management

information system

.1 Project management plan

• Resource management plan

.2 Project documents

• Issue log

• Lessons learned register

• Project team assignments

• Team charter

.3 Work performance reports

.4 Team performance

assessments

.5 Enterprise environmental

factors

.6 Organizational process assets

.1 Change requests

.2 Project management plan

updates

• Resource management plan

• Schedule baseline

• Cost baseline

.3 Project documents updates

• Issue log

• Lessons learned register

• Project team assignments

.4 Enterprise environmental

factors updates

346 Part 1 - Guide

Enterprise/

Organization

• Project

charter

4.6

Perform

Integrated

Change Control

4.5

Monitor and

Control

Project Work

Project management plan

• Resource management plan

• Work performance reports

9.4

Develop

Team

• Team performance assessments

Project documents

• Issue log

• Lessons learned register

• Project team assignments

• Team charter

Project

Management

Plan

Project

Documents

Project

Documents

9.5

Manage

Team

Enterprise/

Organization

• Enterprise environmental factors

• Organizational process assets

• Change requests

Project management plan updates

• Resource management plan

• Schedule baseline

• Cost baseline

Project documents updates

• Issue log

• Lessons learned register

• Project team assignments

Project

Management

Plan

• Enterprise environmental factors updates

Figure 9-13. Manage Team: Data Flow Diagram

Managing the project team requires a variety of management and leadership skills for fostering teamwork and

integrating the efforts of team members to create high-performance teams. Team management involves a combination

of skills with special emphasis on communication, conﬂict management, negotiation, and leadership. Project managers

should provide challenging assignments to team members and provide recognition for high performance.

The project manager needs to be sensitive to both the willingness and the ability of team members to perform their

work and adjust their management and leadership styles accordingly. Team members with low-skill abilities will require

more intensive oversight than those who have demonstrated ability and experience.

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9.5.1 MANAGE TEAM: INPUTS

9.5.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to the resource

management plan. Described in Section 9.1.3.1, the resource management plan provides guidance on how project team

resources should be managed and eventually released.

9.5.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Issue log. Described in Section 4.3.3.3. Issues arise in the course of managing the project team. An issue log can

be used to document and monitor who is responsible for resolving speciﬁc issues by a target date.

 Lessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project can be applied to

later phases in the project to improve the efﬁciency and effectiveness of managing the team.

 Project team assignments. Described in Section 9.3.3.1. Project team assignments identify the team member

roles and responsibilities.

 Team charter. Described in Section 9.1.3.2. The team charter provides guidance for how the team will make

decisions, conduct meetings, and resolve conﬂict.

9.5.1.3 WORK PERFORMANCE REPORTS

Described in Section 4.5.3.1. Work performance reports are the physical or electronic representation of work

performance information intended to generate decisions, actions, or awareness. Performance reports that can help with

project team management include results from schedule control, cost control, quality control, and scope validation. The

information from performance reports and related forecasts assists in determining future team resource requirements,

recognition and rewards, and updates to the resource management plan.

9.5.1.4 TEAM PERFORMANCE ASSESSMENTS

Described in Section 9.4.3.1. The project management team makes ongoing formal or informal assessments of the

project team’s performance. By continually assessing the project team’s performance, actions can be taken to resolve

issues, modify communication, address conﬂict, and improve team interaction.

348 Part 1 - Guide

9.5.1.5 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Manage Team process include but are not limited to

human resource management policies.

9.5.1.6 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Manage Team process include but are not limited to:

 Certiﬁcates of appreciation,

 Corporate apparel, and

 Other organizational perquisites.

9.5.2 MANAGE TEAM: TOOLS AND TECHNIQUES

9.5.2.1 INTERPERSONAL AND TEAM SKILLS

Interpersonal and team skills that can be used for this process include but are not limited to:

 Conflict management. Conﬂict is inevitable in a project environment. Sources of conﬂict include scarce

resources, scheduling priorities, and personal work styles. Team ground rules, group norms, and solid project

management practices, like communication planning and role deﬁnition, reduce the amount of conﬂict.

Successful conﬂict management results in greater productivity and positive working relationships. When managed

properly, differences of opinion can lead to increased creativity and better decision making. If the differences

become a negative factor, project team members are initially responsible for their resolution. If conﬂict escalates,

the project manager should help facilitate a satisfactory resolution. Conﬂict should be addressed early and

usually in private, using a direct, collaborative approach. If disruptive conﬂict continues, formal procedures may

be used, including disciplinary actions.

The success of project managers in managing their project teams often depends on their ability to resolve

conﬂict. Different project managers may use different conﬂict resolution methods. Factors that inﬂuence conﬂict

resolution methods include:

 Importance and intensity of the conﬂict,

 Time pressure for resolving the conﬂict,

 Relative power of the people involved in the conﬂict,

 Importance of maintaining a good relationship, and

 Motivation to resolve conﬂict on a long-term or short-term basis.

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349

There are ﬁve general techniques for resolving conﬂict. Each technique has its place and use:

 Withdraw/avoid. Retreating from an actual or potential conﬂict situation; postponing the issue to be better

prepared or to be resolved by others.

 Smooth/accommodate. Emphasizing areas of agreement rather than areas of difference; conceding one’s

position to the needs of others to maintain harmony and relationships.

 Compromise/reconcile. Searching for solutions that bring some degree of satisfaction to all parties in order

to temporarily or partially resolve the conﬂict. This approach occasionally results in a lose-lose situation.

 Force/direct. Pushing one’s viewpoint at the expense of others; offering only win-lose solutions, usually enforced

through a power position to resolve an emergency. This approach often results to a win-lose situation.

 Collaborate/problem solve. Incorporating multiple viewpoints and insights from differing perspectives;

requires a cooperative attitude and open dialogue that typically leads to consensus and commitment. This

approach can result in a win-win situation.

 Decision making. Decision making, in this context, involves the ability to negotiate and inﬂuence the organization

and the project management team, rather than the set of tools described in the decision making tool set. Some

guidelines for decision making include:

 Focus on goals to be served,

 Follow a decision-making process,

 Study the environmental factors,

 Analyze available information,

 Stimulate team creativity, and

 Account for risk.

 Emotional intelligence. Emotional intelligence is the ability to identify, assess, and manage the personal

emotions of oneself and other people, as well as the collective emotions of groups of people. The team

can use emotional intelligence to reduce tension and increase cooperation by identifying, assessing, and

controlling the sentiments of project team members, anticipating their actions, acknowledging their concerns,

and following up on their issues.

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 Influencing. Because project managers often have little or no direct authority over team members in a matrix

environment, their ability to inﬂuence stakeholders on a timely basis is critical to project success. Key inﬂuencing

skills include:

 Ability to be persuasive;

 Clearly articulating points and positions;

 High levels of active and effective listening skills;

 Awareness of, and consideration for, the various perspectives in any situation; and

 Gathering relevant information to address issues and reach agreements while maintaining mutual trust.

 Leadership. Successful projects require leaders with strong leadership skills. Leadership is the ability to lead

a team and inspire them to do their jobs well. It encompasses a wide range of skills, abilities and actions.

Leadership is important through all phases of the project life cycle. There are multiple leadership theories

deﬁning leadership styles that should be used as needed for each situation or team. It is especially important to

communicate the vision and inspire the project team to achieve high performance.

9.5.2.2 PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS)

Described in Section 4.3.2.2. Project management information systems can include resource management or

scheduling software that can be used for managing and coordinating team members across project activities.

9.5.3 MANAGE TEAM: OUTPUTS

9.5.3.1 CHANGE REQUESTS

Described in Section 4.3.3.4. When change requests occur as a result of carrying out the Manage Team process or

when recommended corrective or preventive actions impact any of the components of the project management plan or

project documents, the project manager needs to submit a change request. Change requests are processed for review

and disposition through the Perform Integrated Change Control process (Section 4.6).

For example, stafﬁng changes, whether made by choice or by uncontrollable events, can disrupt the project team.

This disruption can cause the schedule to slip or the budget to be exceeded. Stafﬁng changes include moving people to

different assignments, outsourcing some of the work, or replacing team members who leave.

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9.5.3.2 PROJECT MANAGEMENT PLAN UPDATES

Any change to the project management plan goes through the organization’s change control process via a change

request. Components of the project management plan that may require a change request for the project management

plan include but are not limited to:

 Resource management plan. Described in Section 9.1.3.1. The resource management plan is updated to reﬂect

actual experience in managing the project team.

 Schedule baseline. Described in Section 6.5.3.1. Changes to the project schedule may be required to reﬂect the

way the team is performing.

 Cost baseline. Described in Section 7.3.3.1. Changes to the project cost baseline may be required to reﬂect the

way the team is performing.

9.5.3.3 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Issue log. Described in Section 4.3.3.3. New issues raised as a result of this process are recorded in the issue log.

 Lessons learned register. Described in Section 4.4.3.1. The lessons learned register is updated with information

on challenges encountered and how they could have been avoided as well as approaches that worked well for

the managing the team.

 Project team assignments. Described in Section 9.3.3.1. If changes to the team are required, those changes

are recorded in the project team assignments documentation.

9.5.3.4 ENTERPRISE ENVIRONMENTAL FACTORS UPDATES

Enterprise environmental factors that are updated as a result of the Manage Team process include but are not

limited to:

 Input to organizational performance appraisals, and

 Personnel skill.

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9.6 CONTROL RESOURCES

Control Resources is the process of ensuring that the physical resources assigned and allocated to the project are

available as planned, as well as monitoring the planned versus actual utilization of resources and taking corrective

action as necessary. The key beneﬁt of this process is ensuring that the assigned resources are available to the project

at the right time and in the right place and are released when no longer needed. This process is performed throughout

the project. The inputs and outputs of this process are depicted in Figure 9-14. Figure 9-15 depicts the data ﬂow

diagram for the process.

Figure 9-14. Control Resources: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

Control Resources

.1 Data analysis

• Alternatives analysis

• Cost-benefit analysis

• Performance reviews

• Trend analysis

.2 Problem solving

.3 Interpersonal and team skills

• Negotiation

• Influencing

.4 Project management

information system

.1 Project management plan

• Resource management plan

.2 Project documents

• Issue log

• Lessons learned register

• Physical resource

assignments

• Project schedule

• Resource breakdown

structure

• Resource requirements

• Risk register

.3 Work performance data

.4 Agreements

.5 Organizational process assets

.1 Work performance

information

.2 Change requests

.3 Project management plan

updates

• Resource management plan

• Schedule baseline

• Cost baseline

.4 Project documents updates

• Assumption log

• Issue log

• Lessons learned register

• Physical resource

assignments

• Resource breakdown

structure

• Risk register

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• Project

charter

4.6

Perform

Integrated

Change Control

4.3

Direct and

Manage

Project Work

Project management plan

• Resource management plan

12.2

Conduct

Procurements

• Agreements

Project documents

• Issue log

• Lessons learned register

• Physical resource assignments

• Project schedule

• Resource breakdown structure

• Resource requirements

• Risk register

Project

Management

Plan

Project

Documents

Project

Documents

9.6

Control

Resources

Enterprise/

Organization

• Organizational process assets

• Work performance information

• Change requests

Project management plan updates

• Resource management plan

• Schedule baseline

• Cost baseline

Project documents updates

• Assumption log

• Issue log

• Lessons learned register

• Physical resource assignments

• Resource breakdown structure

• Risk register

Project

Management

Plan

4.5

Monitor and

Control

Project Work

• Work performance data

Figure 9-15. Control Resources: Data Flow Diagram

The Control Resources process should be performed continuously in all project phases and throughout the project

life cycle. The resources needed for the project should be assigned and released at the right time, right place, and right

amount for the project to continue without delays. The Control Resources process is concerned with physical resources

such as equipment, materials, facilities, and infrastructure. Team members are addressed in the Manage Team process.

The Control Resources techniques discussed here are those used most frequently on projects. There are many others

that may be useful on certain projects or in some application areas.

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Updating resource allocation requires knowing what actual resources have been used to date and what is still

needed. This is done mainly by reviewing the performance usage to date. Control Resources is concerned with:

 Monitoring resource expenditures,

 Identifying and dealing with resource shortage/surplus in a timely manner,

 Ensuring that resources are used and released according to the plan and project needs,

 Informing appropriate stakeholders if any issues arise with relevant resources,

 Inﬂuencing the factors that can create resources utilization change, and

 Managing the actual changes as they occur.

Any changes needed to the schedule or cost baselines can be approved only through the Perform Integrated Change

Control process (Section 4.6).

9.6.1 CONTROL RESOURCES: INPUTS

9.6.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to the resource

management plan. Described in Section 9.1.3.1, the resource management plan provides guidance on how physical

resources should be used, controlled, and eventually released.

9.6.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Issue log. Described in Section 4.3.3.3. The issue log is used to identify issues such as lack of resources, delays

in raw material supplies, or low grades of raw material.

 Lessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project can be applied to

later phases in the project to improve physical resource control.

 Physical resource assignments. Described in Section 9.3.3.1. The physical resource assignments describe

the expected resource utilization along with details such as type, amount, location, and whether the resource is

internal to the organization or outsourced.

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355

 Project schedule. Described in Section 6.5.3.2. The project schedule shows the resources that are needed,

when they are needed, and the location where they are needed.

 Resource breakdown structure. Described in Section 9.2.3.3. The resource breakdown structure provides a

reference in case any resource needs to be replaced or reacquired during the course of the project.

 Resource requirements. Described in Section 9.2.3.1. Resource requirements identify the needed material,

equipment, supplies, and other resources.

 Risk register. Described in Section 11.2.3.1. The risk register identiﬁes individual risks that can impact

equipment, materials, or supplies.

9.6.1.3 WORK PERFORMANCE DATA

Described in Section 4.3.3.2. Work performance data contains data on project status such as the number and type

of resources that have been used.

9.6.1.4 AGREEMENTS

Described in Section 12.2.3.2. Agreements made within the context of the project are the basis for all resources

external to the organization and should deﬁne procedures when new, unplanned resources are needed or when issues

arise with the current resources.

9.6.1.5 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Control Resources process include but are not limited to:

 Policies regarding resource control and assignment,

 Escalation procedures for handling issues within the performing organization, and

 Lessons learned repository from previous similar projects.

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9.6.2 CONTROL RESOURCES: TOOLS AND TECHNIQUES

9.6.2.1 DATA ANALYSIS

Data analysis techniques that can be used in this process include but are not limited to:

 Alternatives analysis. Described in Section 9.2.2.5. Alternatives can be analyzed to select the best resolution

for correcting variances in resource utilization. Alternatives such as paying additional for overtime or additional

team resources can be weighed against a late delivery or phased deliveries.

 Cost-benefit analysis. Described in Section 8.1.2.3. This analysis helps to determine the best corrective action

in terms of cost in case of project deviations.

 Performance reviews. Performance reviews measure, compare, and analyze planned resource utilization

to actual resource utilization. Cost and schedule work performance information can also be analyzed to help

pinpoint issues that can inﬂuence resource utilization.

 Trend analysis. Described in Section 4.5.2.2. As the project progresses, the project team may use trend analysis,

based on current performance information, to determine the resources needed at upcoming stages of the project.

Trend analysis examines project performance over time and can be used to determine whether performance is

improving or deteriorating.

9.6.2.2 PROBLEM SOLVING

Described in Section 8.2.2.7. Problem solving may use a set of tools that helps the project manager to solve

problems that arise during the control resource process. The problem can come from inside the organization (machines

or infrastructure used by another department in the organization and not released in time, materials that have been

damaged because of unsuitable storage conditions, etc.) or from outside the organization (major supplier that has gone

bankrupt or bad weather that has damaged resources). The project manager should use methodical steps to deal with

problem solving, which can include:

 Identify the problem. Specify the problem.

 Define the problem. Break it into smaller, manageable problems.

 Investigate. Collect data.

 Analyze. Find the root cause of the problem.

 Solve. Choose the suitable solution from a variety of available ones.

 Check the solution. Determine if the problem has been ﬁxed.

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357

9.6.2.3 INTERPERSONAL AND TEAM SKILLS

Interpersonal and team skills, sometimes known as “soft skills,” are personal competencies. The interpersonal and

team skills used in this process include:

 Negotiation. Described in Section 12.2.2.5. The project manager may need to negotiate for additional physical

resources, changes in physical resources, or costs associated with the resources.

 Influencing. Described in Section 9.5.2.1. Inﬂuencing can help the project manager solve problems and obtain

the resources needed in a timely manner.

9.6.2.4 PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS)

Described in Section 4.3.2.2. Project management information systems can include resource management or

scheduling software that can be used to monitor the resource utilization which helps ensure that the right resources are

working on the right activities at the right time and place.

9.6.3 CONTROL RESOURCES: OUTPUTS

9.6.3.1 WORK PERFORMANCE INFORMATION

Described in Section 4.5.1.3. Work performance information includes information on how the project work is

progressing by comparing resource requirements and resource allocation to resource utilization across the project

activities. This comparison can show gaps in resource availability that need to be addressed.

9.6.3.2 CHANGE REQUESTS

Described in Section 4.3.3.4. When change requests occur as a result of carrying out the Control Resources process

or when recommended, corrective, or preventive actions impact any of the components of the project management

plan or project documents, the project manager needs to submit a change request. Change requests are processed for

review and disposition through the Perform Integrated Change Control process (Section 4.6).

358 Part 1 - Guide

9.6.3.3 PROJECT MANAGEMENT PLAN UPDATES

Any change to the project management plan goes through the organization’s change control process via a change

request. Components that may require a change request for the project management plan include but are not limited to:

 Resource management plan. Described in Section 9.1.3.1. The resource management plan is updated to reﬂect

actual experience in managing project resources.

 Schedule baseline. Described in Section 6.5.3.1. Changes to the project schedule may be required to reﬂect the

way project resources are being managed.

 Cost baseline. Described in Section 7.3.3.1. Changes to the project cost baseline may be required to reﬂect the

way project resources are being managed.

9.6.3.4 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of performing this process include but are not limited to:

 Assumption log. Described in Section 4.1.3.2. The assumption log may be updated with new assumptions

regarding equipment, materials, supplies, and other physical resources.

 Issue log. Described in Section 4.3.3.3. New issues raised as a result of this process are recorded in the

issue log.

 Lessons learned register. Described in Section 4.4.3.1. The lessons learned register can be updated with

techniques that were effective in managing resource logistics, scrap, utilization variances, and corrective actions

that were used to respond to resource variances.

 Physical resource assignments. Described in Section 9.3.3.1. Physical resource assignments are dynamic and

subject to change due to availability, the project, organization, environment, or other factors.

 Resource breakdown structure. Described in Section 9.2.3.3. Changes to the resource breakdown structure

may be required to reﬂect the way project resources are being used.

 Risk register. Described in Section 11.2.3.1. The risk register is updated with any new risks associated with

resource availability, utilization, or other physical resource risks.

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359

PROJECT COMMUNICATIONS MANAGEMENT

Project Communications Management includes the processes necessary to ensure that the information needs of

the project and its stakeholders are met through development of artifacts and implementation of activities designed

to achieve effective information exchange. Project Communications Management consists of two parts. The ﬁrst part

is developing a strategy to ensure communication is effective for stakeholders. The second part is carrying out the

activities necessary to implement the communication strategy.

The Project Communications Management processes are:

10.1 Plan Communications Management—The process of developing an appropriate approach and plan for project

communication activities based on the information needs of each stakeholder or group, available organizational assets,

and the needs of the project.

10.2 Manage Communications—The process of ensuring timely and appropriate collection, creation, distribution,

storage, retrieval, management, monitoring, and the ultimate disposition of project information.

10.3 Monitor Communications—The process of ensuring the information needs of the project and its stakeholders

are met.

Figure 10-1 provides an overview of the Project Communications Management processes. The Project

Communications Management processes are presented as discrete processes with deﬁned interfaces while, in

practice, they overlap and interact in ways that cannot be completely detailed in the PMBOK® Guide.

360 Part 1 - Guide

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Work performance reports

.4 Enterprise environmental

factors

.5 Organizational process assets

.2 Tools & Techniques

.1 Communication technology

.2 Communication methods

.3 Communication skills

.4 Project management

information system

.5 Project reporting

.6 Interpersonal and team skills

.7 Meetings

.3 Outputs

.1 Project communications

.2 Project management plan

updates

.3 Project documents updates

.4 Organizational process assets

updates

.1 Inputs

.1 Project charter

.2 Project management plan

.3 Project documents

.4 Enterprise environmental

factors

.5 Organizational process assets

.2 Tools & Techniques

.1 Expert judgment

.2 Communication requirements

analysis

.3 Communication technology

.4 Communication models

.5 Communication methods

.6 Interpersonal and team skills

.7 Data representation

.8 Meetings

.3 Outputs

.1 Communications management

plan

.2 Project management plan

updates

.3 Project documents update

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Work performance data

.4 Enterprise environmental

factors

.5 Organizational process assets

.2 Tools & Techniques

.1 Expert judgment

.2 Project management

information system

.3 Data representation

.4 Interpersonal and team skills

.5 Meetings

.3 Outputs

.1 Work performance information

.2 Change requests

.3 Project management plan

updates

.4 Project documents updates

Project Communications

Management Overview

10.2 Manage

Communications

10.1 Plan Communications

Management

10.3 Monitor

Communications

Figure 10-1. Project Communications Overview

KEY CONCEPTS FOR PROJECT COMMUNICATIONS MANAGEMENT

Communication is the exchange of information, intended or involuntary. The information exchanged can be in the

form of ideas, instructions, or emotions. The mechanisms by which information is exchanged can be in:

 Written form. Either physical or electronic.

 Spoken. Either face-to-face or remote.

 Formal or informal (as in formal papers or social media).

 Through gestures. Tone of voice and facial expressions.

 Through media. Pictures, actions, or even just the choice of words.

 Choice of words. There is often more than one word to express an idea; there can be subtle differences in the

meaning of each of these words and phrases.

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361

Communications describe the possible means by which the information can be sent or received, either through

communication activities, such as meetings and presentations, or artifacts, such as emails, social media, project reports,

or project documentation.

Project managers spend most of their time communicating with team members and other project stakeholders, both

internal (at all organizational levels) and external to the organization. Effective communication builds a bridge between

diverse stakeholders who may have different cultural and organizational backgrounds as well as different levels of

expertise, perspectives, and interests.

Communication activities have many dimensions, including but not limited to:

 Internal. Focus on stakeholders within the project and within the organization.

 External. Focus on external stakeholders such as customers, vendors, other projects, organizations, government,

the public, and environmental advocates.

 Formal. Reports, formal meetings (both regular and ad hoc), meeting agendas and minutes, stakeholder brieﬁngs,

and presentations.

 Informal. General communications activities using emails, social media, websites, and informal ad hoc discussions.

 Hierarchical focus. The position of the stakeholder or group with respect to the project team will affect the

format and content of the message, in the following ways:

 Upward. Senior management stakeholders.

 Downward. The team and others who will contribute to the work of the project.

 Horizontal. Peers of the project manager or team.

 Official. Annual reports; reports to regulators or government bodies.

 Unofficial. Communications that focus on establishing and maintaining the proﬁle and recognition of the

project and building strong relationships between the project team and its stakeholders using ﬂexible and

often informal means.

 Written and oral. Verbal (words and voice inﬂections) and nonverbal (body language and actions), social media

and websites, media releases.

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362 Part 1 - Guide

Communication develops the relationships necessary for successful project and program outcomes. Communication

activities and artifacts to support communication vary widely, ranging from emails and informal conversations to

formal meetings and regular project reports. The act of sending and receiving information takes place consciously

or unconsciously through words, facial expressions, gestures and other actions. In the context of successfully

managing project relationships with stakeholders, communication includes developing strategies and plans for suitable

communications artifacts and activities with the stakeholder community and the application of skills to enhance the

effectiveness of the planned and other ad hoc communications.

There are two parts to successful communication. The ﬁrst part involves developing an appropriate communication

strategy based on both the needs of the project and the project’s stakeholders. From that strategy, a communications

management plan is developed to ensure that the appropriate messages are communicated to stakeholders in

various formats and various means as deﬁned by the communication strategy. These messages constitute the

project’s communications—the second part of successful communication. Project communications are the products

of the planning process, addressed by the communications management plan that deﬁnes the collection, creation,

dissemination, storage, retrieval, management, tracking, and disposition of these communications artifacts. Finally,

the communication strategy and communications management plan will form the foundation to monitor the effect of

the communication.

The project’s communications are supported by efforts to prevent misunderstandings and miscommunication and by

careful selection of the methods, messengers, and messages developed from the planning process.

Misunderstandings can be reduced but not eliminated through using the 5Cs of written communications in composing

a traditional (non-social media) written or spoken message:

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363

 Correct grammar and spelling. Poor use of grammar or inaccurate spelling can be distracting and can also

introduce distortions in the message, diminishing credibility.

 Concise expression and elimination of excess words. A concise, well-crafted message reduces the

opportunities for misunderstanding the intent of the message.

 Clear purpose and expression directed to the needs of the reader. Ensure that the needs and interests of the

audience are factored into the message.

 Coherent logical flow of ideas. A coherent logical ﬂow of ideas and using “markers” such as introduction and

summaries of the ideas throughout the writing.

 Controlling flow of words and ideas. Controlling the flow of words and ideas may involve graphics or

just summaries.

The 5Cs of written communications are supported by communication skills, such as:

 Listening actively. Staying engaged with the speaker and summarizing conversations to ensure effective

information exchange.

 Awareness of cultural and personal differences. Developing the team’s awareness of cultural and personal

differences to reduce misunderstandings and enhance communication capability.

 Identifying, setting, and managing stakeholder expectations. Negotiating with stakeholders reduces the

existence of conﬂicting expectations among the stakeholder community.

 Enhancement of skills. Enhancing the skills of all team members in the following activities:

 Persuading a person, a team, or an organization to perform an action;

 Motivating people and providing encouragement or reassurance;

 Coaching to improve performance and achieve desired results;

 Negotiating to achieve mutually acceptable agreements between parties and reduce approval or decision

delays; and

 Resolving conﬂict to prevent disruptive impacts.

The fundamental attributes of effective communication activities and developing effective communication

artifacts are:

 Clarity on the purpose of the communication—deﬁning its purpose;

 Understanding as much as possible about the receiver of the communications, meeting needs, and

preferences; and

 Monitoring and measuring the effectiveness of the communications.

364 Part 1 - Guide

TRENDS AND EMERGING PRACTICES IN PROJECT COMMUNICATIONS MANAGEMENT

Along with a focus on stakeholders and recognition of the value to projects and organizations of effective stakeholder

engagement comes the recognition that developing and implementing appropriate communication strategies is vital

to maintaining effective relationships with stakeholders. Trends and emerging practices for Project Communications

Management include but are not limited to:

 Inclusion of stakeholders in project reviews. The stakeholder community of each project includes individuals,

groups, and organizations that the project team has identiﬁed as essential to the successful delivery of project

objectives and organizational outcomes. An effective communication strategy requires regular and timely reviews

of the stakeholder community and updates to manage changes in its membership and attitudes.

 Inclusion of stakeholders in project meetings. Project meetings should include stakeholders from outside

the project and even the organization, where appropriate. Practices inherent in the agile approaches can be

applied to all types of projects. Practices often include short, daily standup meetings, where the achievements

and issues of the previous day, and plans for the current day’s work, are discussed with the project team and

key stakeholders.

 Increased use of social computing. Social computing in the form of infrastructure, social media services,

and personal devices has changed how organizations and their people communicate and do business. Social

computing incorporates different approaches to collaboration supported by public IT infrastructure. Social

networking refers to how users build networks of relationships to explore their interests and activities with

others. Social media tools can not only support information exchange, but also build relationships accompanied

by deeper levels of trust and community.

 Multifaceted approaches to communication. The standard communication strategy for project stakeholder

communications embraces and selects from all technologies and respects cultural, practical, and personal

preferences for language, media, content, and delivery. When appropriate, social media and other advanced

computing technologies may be included. Multifaceted approaches such as these are more effective for

communicating to stakeholders from different generations and cultures.

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365

TAILORING CONSIDERATIONS

Because each project is unique, the project team will need to tailor the way that Project Communications Management

processes are applied. Considerations for tailoring include but are not limited to:

 Stakeholders. Are the stakeholders internal or external to the organization, or both?

 Physical location. What is the physical location of team members? Is the team colocated? Is the team in the

same geographical area? Is the team distributed across multiple time zones?

 Communications technology. What technology is available to develop, record, transmit, retrieve, track, and

store communication artifacts? What technologies are most appropriate and cost effective for communicating to

stakeholders?

 Language. Language is a main factor to consider in communication activities. Is one language used? Or are

many languages used? Have allowances been made to adjust to the complexity of team members from diverse

language groups?

 Knowledge management. Does the organization have a formal knowledge management repository? Is the

repository used?

CONSIDERATIONS FOR AGILE/ADAPTIVE ENVIRONMENTS

Project environments subject to various elements of ambiguity and change have an inherent need to communicate

evolving and emerging details more frequently and quickly. This motivates streamlining team member access to

information, frequent team checkpoints, and colocating team members as much as possible.

In addition, posting project artifacts in a transparent fashion, and holding regular stakeholder reviews are intended to

promote communication with management and stakeholders.

366 Part 1 - Guide

10.1 PLAN COMMUNICATIONS MANAGEMENT

Plan Communications Management is the process of developing an appropriate approach and plan for project

communications activities based on the information needs of each stakeholder or group, available organizational

assets, and the needs of the project. The key beneﬁt of this process is a documented approach to effectively and

efﬁciently engage stakeholders by presenting relevant information in a timely manner. This process is performed

periodically throughout the project as needed. The inputs, tools and techniques, and outputs of the process are depicted

in Figure 10-2. Figure 10-3 depicts the data ﬂow diagram for the process.

Figure 10-2. Plan Communications Management: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

Plan Communications Management

.1 Expert judgment

.2 Communication requirements

analysis

.3 Communication technology

.4 Communication models

.5 Communication methods

.6 Interpersonal and team skills

• Communication styles

assessment

• Political awareness

• Cultural awareness

.7 Data representation

• Stakeholder engagement

assessment matrix

.8 Meetings

.1 Project charter

.2 Project management plan

• Resource management plan

• Stakeholder engagement

plan

.3 Project documents

• Requirements

documentation

• Stakeholder register

.4 Enterprise environmental

factors

.5 Organizational process assets

.1 Communications management

plan

.2 Project management plan

updates

• Stakeholder engagement

plan

.3 Project documents updates

• Project schedule

• Stakeholder register

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367

• Project

charter

4.1

Develop

Project

Charter

Project management plan

• Resource management plan

• Stakeholder engagement plan

Project documents

• Requirements documentation

• Stakeholder register

• Project charter

Project

Management

Plan

Project

Documents

Project

Documents

10.1

Plan

Communications

Management

Enterprise/

Organization

• Enterprise environmental factors

• Organizational process assets

• Communications management plan

Project management

plan updates

• Stakeholder

engagement plan

Project documents updates

• Project schedule

• Stakeholder register

Project

Management

Plan

Figure 10-3. Plan Communications Management: Data Flow Diagram

An effective communications management plan that recognizes the diverse information needs of the project’s

stakeholders is developed early in the project life cycle. It should be reviewed regularly and modiﬁed when necessary,

when the stakeholder community changes or at the start of each new project phase.

On most projects, communications planning is performed very early, during stakeholder identiﬁcation and project

management plan development.

While all projects share the need to communicate project information, the information needs and methods of distribution

may vary widely. In addition, the methods of storage, retrieval, and ultimate disposition of the project information need

to be considered and documented during this process. The results of the Plan Communications Management process

should be reviewed regularly throughout the project and revised as needed to ensure continued applicability.

368 Part 1 - Guide

10.1.1 PLAN COMMUNICATIONS MANAGEMENT: INPUTS

10.1.1.1 PROJECT CHARTER

Described in Section 4.1.3.1. The project charter identiﬁes the key stakeholder list. It may also contain information

about the roles and responsibilities of the stakeholders.

10.1.1.2 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Resource management plan. Described in Section 9.1.3.1. Provides guidance on how team resources will

be categorized, allocated, managed, and released. Team members and groups may have communication

requirements that should be identiﬁed in the communications management plan.

 Stakeholder engagement plan. Described in Section 13.2.3.1. The stakeholder engagement plan identiﬁes

the management strategies required to effectively engage stakeholders. These strategies are often fulﬁlled via

communications.

10.1.1.3 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Requirements documentation. Described in Section 5.2.3.1. Requirements documentation can include project

stakeholder communications.

 Stakeholder register. Described in Section 13.1.3.1. The stakeholder register is used to plan communications

activities with stakeholders.

10.1.1.4 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Plan Communications Management process include but

are not limited to:

 Organizational culture, political climate, and governance framework;

 Personnel administration policies;

 Stakeholder risk thresholds;

 Established communication channels, tools, and systems;

 Global, regional, or local trends, practices, or habits; and

 Geographic distribution of facilities and resources.

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369

10.1.1.5 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Plan Communications Management process include but are

not limited to:

 Organizational policies and procedures for social media, ethics, and security;

 Organizational policies and procedures for issue, risk, change, and data management;

 Organizational communication requirements;

 Standardized guidelines for development, exchange, storage, and retrieval of information;

 Historical information and lessons learned repository; and

 Stakeholder and communications data and information from previous projects.

10.1.2 PLAN COMMUNICATIONS MANAGEMENT: TOOLS AND TECHNIQUES

10.1.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized

knowledge or training in the following topics:

 Politics and power structures in the organization;

 Environment and culture of the organization and other customer organizations;

 Organizational change management approach and practices;

 Industry or type of project deliverables;

 Organizational communications technologies;

 Organizational policies and procedures regarding legal requirements of corporate communications;

 Organizational policies and procedures regarding security; and

 Stakeholders, including customers or sponsors.

10.1.2.2 COMMUNICATION REQUIREMENTS ANALYSIS

Analysis of communication requirements determines the information needs of the project stakeholders. These

requirements are deﬁned by combining the type and format of information needed with an analysis of the value of

that information.

370 Part 1 - Guide

Sources of information typically used to identify and deﬁne project communication requirements include but are not

limited to:

 Stakeholder information and communication requirements from within the stakeholder register and stakeholder

engagement plan;

 Number of potential communication channels or paths, including one-to-one, one-to-many, and many-to-many

communications;

 Organizational charts;

 Project organization and stakeholder responsibility, relationships, and interdependencies;

 Development approach;

 Disciplines, departments, and specialties involved in the project;

 Logistics of how many persons will be involved with the project and at which locations;

 Internal information needs (e.g., when communicating within organizations);

 External information needs (e.g., when communicating with the media, public, or contractors); and

 Legal requirements.

10.1.2.3 COMMUNICATION TECHNOLOGY

The methods used to transfer information among project stakeholders may vary signiﬁcantly. Common methods

used for information exchange and collaboration include conversations, meetings, written documents, databases, social

media, and websites.

Factors that can affect the choice of communication technology include:

 Urgency of the need for information. The urgency, frequency, and format of the information to be communicated

may vary from project to project and also within different phases of a project.

 Availability and reliability of technology. The technology that is required for distribution of project

communications artifacts should be compatible, available, and accessible for all stakeholders throughout

the project.

 Ease of use. The choice of communication technologies should be suitable for project participants and proper

training events should be planned, where appropriate.

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371

 Project environment. Whether the team will meet and operate on a face-to-face basis or in a virtual environment;

whether they will be located in one or multiple time zones; whether they will use multiple languages for

communication; and ﬁnally, whether there are any other project environmental factors, such as various aspects

of culture, which may constrain the efﬁciency of the communication.

 Sensitivity and confidentiality of the information. Some aspects to consider are:

 Whether information to be communicated is sensitive or conﬁdential. If so, additional security measures may

be required.

 Social media policies for employees to ensure appropriate behavior, security, and the protection of

proprietary information.

10.1.2.4 COMMUNICATION MODELS

Communication models can represent the communication process in its most basic linear form (sender and receiver),

in a more interactive form that encompasses the additional element of feedback (sender, receiver, and feedback), or in

a more complex model that incorporates the human elements of the sender(s) or receiver(s) and attempts to show the

complexity of any communication that involves people.

 Sample basic sender/receiver communication model. This model describes communication as a process

and consists of two parties, deﬁned as the sender and receiver. This model is concerned with ensuring that the

message is delivered, rather than understood. The sequence of steps in a basic communication model is:

 Encode. The message is coded into symbols, such as text, sound or some other medium for transmission

(sending).

 Transmit message. The message is sent via a communication channel. The transmission of this message

may be compromised by various physical factors such as unfamiliar technology or inadequate infrastructure.

Noise and other factors may be present and contribute to loss of information in transmission and/or reception

of the message.

 Decode. The data received is translated by the receiver back into a form useful to the receiver.

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 Sample interactive communication model. This model also describes communication as a process consisting

of two parties, the sender and receiver, but recognizes the need to ensure that the message has been understood.

In this model, noise includes any interference or barriers that might compromise the understanding of the

message, such as the distraction of the receiver, variations in the perceptions of receivers, or lack of appropriate

knowledge or interest. The additional steps in an interactive communication model are:

 Acknowledge. Upon receipt of a message, the receiver may signal (acknowledge) receipt of the message, but

this does not necessarily mean agreement with or comprehension of the message—merely that it has been

received.

 Feedback/response. When the received message has been decoded and understood, the receiver

encodes thoughts and ideas into a message and then transmits this message to the original sender. If

the sender perceives that the feedback matches the original message, the communication has been

successful. In communication between people, feedback can be achieved through active listening,

described in Section 10.2.2.6.

As part of the communication process, the sender is responsible for the transmission of the message, ensuring

the information being communicated is clear and complete, and conﬁrming the message is correctly interpreted.

The receiver is responsible for ensuring that the information is received in its entirety, interpreted correctly, and

acknowledged or responded to appropriately. These components take place in an environment where there will

likely be noise and other barriers to effective communication.

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373

Cross-cultural communication presents challenges to ensuring that the meaning of the message has been

understood. Differences in communication styles can arise from differences in working methods, age, nationality,

professional discipline, ethnicity, race, or gender. People from different cultures communicate using different languages

(e.g., technical design documents, different styles) and expect different processes and protocols.

The communication model shown in Figure 10-4 incorporates the idea that the message itself and how it is

transmitted are inﬂuenced by the sender’s current emotional state, knowledge, background, personality, culture, and

biases. Similarly, the receiver’s emotional state knowledge, background, personality, culture, and biases will inﬂuence

how the message is received and interpreted, and will contribute to the barriers or noise.

This communication model and its enhancements can assist in developing communication strategies and plans for

person-to-person or even small group to small group communications. It is not useful for other communications artifacts

such as emails, broadcast messages, or social media.

Figure 10-4. Communication Model for Cross-Cultural Communication

Sender

Encode

Decode

Receiver

Decode

Encode

Transmit

Message

Feedback

Message

Current

Emotional

State

Culture:

• Generational

• National

• Professional

discipline

• Gender

Personality

biases

(assumptions)

Current

Emotional

State

Culture:

• Generational

• National

• Professional

discipline

• Gender

Personality

biases

(assumptions)

Noise

Medium

Noise

Acknowledge

Message

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10.1.2.5 COMMUNICATION METHODS

There are several communication methods that are used to share information among project stakeholders. These

methods are broadly classiﬁed as follows:

 Interactive communication. Between two or more parties performing a multidirectional exchange of information

in real time. It employs communications artifacts such as meetings, phone calls, instant messaging, some forms

of social media, and videoconferencing.

 Push communication. Sent or distributed directly to speciﬁc recipients who need to receive the information.

This ensures that the information is distributed but does not ensure that it actually reached or was understood

by the intended audience. Push communications artifacts include letters, memos, reports, emails, faxes, voice

mails, blogs, and press releases.

 Pull communication. Used for large complex information sets, or for large audiences, and requires the recipients

to access content at their own discretion subject to security procedures. These methods include web portals,

intranet sites, e-learning, lessons learned databases, or knowledge repositories.

Different approaches should be applied to meet the needs of the major forms of communication deﬁned in the

communications management plan:

 Interpersonal communication. Information is exchanged between individuals, typically face-to-face.

 Small group communication. Occurs within groups of around three to six people.

 Public communication. A single speaker addressing a group of people.

 Mass communication. There is a minimal connection between the person or group sending the message and

the large, sometimes anonymous groups for whom the information is intended.

 Networks and social computing communication. Supports emerging communication trends of many-to-many

supported by social computing technology and media.

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375

Possible communications artifacts and methods include but are not limited to:

 Notice boards,

 Newsletters/in-house magazines/e-magazines,

 Letters to staff/volunteers,

 Press releases,

 Annual reports,

 Emails and intranets,

 Web portals and other information repositories (for pull communication)

 Phone conversations,

 Presentations,

 Team brieﬁngs/group meetings,

 Focus groups,

 Face-to-face formal or informal meetings between various stakeholders,

 Consultation groups or staff forums, and

 Social computing technology and media.

10.1.2.6 INTERPERSONAL AND TEAM SKILLS

Interpersonal and team skills that can be used for this process include but are not limited to:

 Communication styles assessment. A technique used to assess communication styles and identify the

preferred communication method, format, and content for planned communication activities. Often used with

unsupportive stakeholders, this assessment may follow a stakeholder engagement assessment (described in

Section 13.2.2.5) to identify gaps in stakeholder engagement that require additional tailored communication

activities and artifacts.

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 Political awareness. Political awareness helps the project manager to plan communications based on the project

environment as well as the organization’s political environment. Political awareness concerns the recognition of

power relationships, both formal and informal, and also the willingness to operate within these structures. An

understanding of the strategies of the organization, knowing who wields power and inﬂuence in this arena, and

developing an ability to communicate with these stakeholders are all aspects of political awareness.

 Cultural awareness. Cultural awareness is an understanding of the differences between individuals, groups,

and organizations and adapting the project’s communication strategy in the context of these differences. This

awareness and any consequent actions minimize misunderstandings and miscommunication that may result from

cultural differences within the project’s stakeholder community. Cultural awareness and cultural sensitivity help

the project manager to plan communications based on the cultural differences and requirements of stakeholders

and team members.

10.1.2.7 DATA REPRESENTATION

A data representation technique that can be used for this process includes but is not limited to a stakeholder

engagement assessment matrix. Described in Section 13.2.2.5. The stakeholder engagement assessment matrix,

shown in Figure 13-6, displays gaps between current and desired engagement levels of individual stakeholders, it can

be further analyzed in this process to identify additional communication requirements (beyond the regular reports) as a

method to close any engagement level gaps.

10.1.2.8 MEETINGS

Project meetings can include virtual (e-meetings) or face-to-face meetings, and can be supported with document

collaboration technologies, including email messages and project websites. The Plan Communications Management

process requires discussion with the project team to determine the most appropriate way to update and communicate

project information, and to respond to requests from various stakeholders for information.

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377

10.1.3 PLAN COMMUNICATIONS MANAGEMENT: OUTPUTS

10.1.3.1 COMMUNICATIONS MANAGEMENT PLAN

The communications management plan is a component of the project management plan that describes how project

communications will be planned, structured, implemented, and monitored for effectiveness. The plan contains the

following information:

 Stakeholder communication requirements;

 Information to be communicated, including language, format, content, and level of detail;

 Escalation processes;

 Reason for the distribution of that information;

 Timeframe and frequency for the distribution of required information and receipt of acknowledgment or response,

if applicable;

 Person responsible for communicating the information;

 Person responsible for authorizing release of conﬁdential information;

 Person or groups who will receive the information, including information about their needs, requirements, and

expectations;

 Methods or technologies used to convey the information, such as memos, email, press releases, or social media;

 Resources allocated for communication activities, including time and budget;

 Method for updating and reﬁning the communications management plan as the project progresses and develops,

such as when the stakeholder community changes as the project moves through different phases;

 Glossary of common terminology;

 Flow charts of the information ﬂow in the project, workﬂows with possible sequence of authorization, list of

reports, meeting plans, etc.; and

 Constraints derived from speciﬁc legislation or regulation, technology, organizational policies, etc.

The communications management plan can include guidelines and templates for project status meetings, project

team meetings, e-meetings, and email messages. The use of a project website and project management software can

be included if these are to be used in the project.

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10.1.3.2 PROJECT MANAGEMENT PLAN UPDATES

Any change to the project management plan goes through the organization’s change control process via a change

request. Components that may require a change request for the project management plan include but are not limited

to the stakeholder engagement plan, which is described in Section 13.2.3.1. The stakeholder engagement plan is

updated to reﬂect any processes, procedures, tools, or techniques that affect the engagement of stakeholders in project

decisions and execution.

10.1.3.3 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Project schedule. Described in Section 6.5.3.2. The project schedule may be updated to reﬂect communication

activities.

 Stakeholder register. Described in Section 13.1.3.1.The stakeholder register may be updated to reﬂect

communications planned.

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379

10.2 MANAGE COMMUNICATIONS

Manage Communications is the process of ensuring timely and appropriate collection, creation, distribution, storage,

retrieval, management, monitoring, and the ultimate disposition of project information. The key beneﬁt of this process is

that it enables an efﬁcient and effective information ﬂow between the project team and the stakeholders. This process

is performed throughout the project.

The Manage Communications process identiﬁes all aspects of effective communication, including choice of

appropriate technologies, methods, and techniques. In addition, it should allow for ﬂexibility in the communications

activities, allowing adjustments in the methods and techniques to accommodate the changing needs of stakeholders

and the project. The inputs, tools, techniques, and outputs of this process are depicted in Figure 10-5. Figure 10-6

depicts the data ﬂow diagram of the Manage Communications process.

Figure 10-5. Manage Communications: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

Manage Communications

.1 Communication technology

.2 Communication methods

.3 Communication skills

• Communication competence

• Feedback

• Nonverbal

• Presentations

.4 Project management

information system

.5 Project reporting

.6 Interpersonal and team skills

• Active listening

• Conflict management

• Cultural awareness

• Meeting management

• Networking

• Political awareness

.7 Meetings

.1 Project management plan

• Resource management plan

• Communications

management plan

• Stakeholder engagement

plan

.2 Project documents

• Change log

• Issue log

• Lessons learned register

• Quality report

• Risk report

• Stakeholder register

.3 Work performance reports

.4 Enterprise environmental

factors

.5 Organizational process assets

.1 Project communications

.2 Project management plan

updates

• Communications

management plan

• Stakeholder engagement

plan

.3 Project documents updates

• Issue log

• Lessons learned register

• Project schedule

• Risk register

• Stakeholder register

.4 Organizational process

assets updates

380 Part 1 - Guide

Enterprise/

Organization

• Project

charter

4.5

Monitor and

Control

Project Work

Project management plan

• Resource management plan

• Communications management plan

• Stakeholder engagement plan

Project documents

• Change log

• Issue log

• Lessons learned register

• Quality report

• Risk report

• Stakeholder register

• Work performance reports

Project

Management

Plan

Project

Documents

Project

Documents

10.2

Manage

Communications

Enterprise/

Organization

• Enterprise environmental factors

• Organizational process assets

• Project communications

Project documents updates

• Issue log

• Lessons learned register

• Project schedule

• Risk register

• Stakeholder register

Project management

plan updates

• Communications

management plan

• Stakeholder

engagement plan

• Organizational process

assets updates

Project

Management

Plan

Figure 10-6. Manage Communications: Data Flow Diagram

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381

This process goes beyond the distribution of relevant information and seeks to ensure that the information being

communicated to project stakeholders has been appropriately generated and formatted, and received by the intended

audience. It also provides opportunities for stakeholders to make requests for further information, clariﬁcation, and

discussion. Techniques and considerations for effective communications management include but are not limited to:

 Sender-receiver models. Incorporating feedback loops to provide opportunities for interaction/participation and

remove barriers to effective communication.

 Choice of media. Decisions about application of communications artifacts to meet speciﬁc project needs, such

as when to communicate in writing versus orally, when to prepare an informal memo versus a formal report, and

when to use push/pull options and the choice of appropriate technology.

 Writing style. Appropriate use of active versus passive voice, sentence structure, and word choice.

 Meeting management. Described in Section 10.2.2.6. Preparing an agenda, inviting essential participants, and

ensuring they attend. Dealing with conﬂicts within the meeting or resulting from inadequate follow-up of minutes

and actions, or attendance of the wrong people.

 Presentations. Awareness of the impact of body language and design of visual aids.

 Facilitation. Described in Section 4.1.2.3. Building consensus and overcoming obstacles such as difﬁcult group

dynamics, and maintaining interest and enthusiasm among group members.

 Active listening. Described in Section 10.2.2.6. Listening actively involves acknowledging, clarifying and

conﬁrming, understanding, and removing barriers that adversely affect comprehension.

10.2.1 MANAGE COMMUNICATIONS: INPUTS

10.2.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Resource management plan. Described in Section 9.1.3.1. The resource management plan describes the

communications that are needed for management of team or physical resources.

 Communications management plan. Described in Section 10.1.3.1. The communications management plan

describes how project communications will be planned, structured, monitored, and controlled.

 Stakeholder engagement plan. Described in detail in Section 13.2.3.1. The stakeholder engagement plan

describes how stakeholders will be engaged through appropriate communication strategies.

382 Part 1 - Guide

10.2.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to

 Change log. Described in Section 4.6.3.3. The change log is used to communicate changes and approved,

deferred, and rejected change requests to the impacted stakeholders.

 Issue log. Described in Section 4.6.3.3. Information about issues is communicated to impacted stakeholders.

 Lessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project with regard to

managing communications can be applied to later phases in the project to improve the efﬁciency and effectiveness

of communications and the communication process.

 Quality report. Described in Section 8.2.3.1. Information in the quality report includes quality issues, project

and product improvements, and process improvements. This information is forwarded to those who can take

corrective actions in order to achieve the project quality expectations.

 Risk report. Described in Section 11.2.3.2. The risk report presents information on sources of overall project

risk, together with summary information on identiﬁed individual project risks. This information is communicated

to risk owners and other impacted stakeholders.

 Stakeholder register. Described in Section 13.1.3.1. The stakeholder register identiﬁes the individuals, groups,

or organizations that will need various types of information.

10.2.1.3 WORK PERFORMANCE REPORTS

Described in Section 4.5.3.1. Work performance reports are circulated to the project stakeholders through this

process as deﬁned in the communications management plan. Examples of work performance reports include status

reports and progress reports. Work performance reports can contain earned value graphs and information, trend lines

and forecasts, reserve burndown charts, defect histograms, contract performance information, and risk summaries.

They can be presented as dashboards, heat reports, stop light charts, or other representations useful for creating

awareness and generating decisions and actions.

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383

10.2.1.4 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence this process include but are not limited to:

 Organizational culture, political climate, and governance framework;

 Personnel administration policies;

 Stakeholder risk thresholds;

 Established communication channels, tools, and systems;

 Global, regional, or local trends and practices or habits; and

 Geographic distribution of facilities and resources.

10.2.1.5 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence this process include but are not limited to:

 Corporate policies and procedures for social media, ethics, and security;

 Corporate policies and procedures for issue, risk, change, and data management;

 Organizational communication requirements;

 Standardized guidelines for development, exchange, storage, and retrieval of information; and

 Historical information from previous projects, including the lessons learned repository.

10.2.2 MANAGE COMMUNICATIONS: TOOLS AND TECHNIQUES

10.2.2.1 COMMUNICATION TECHNOLOGY

Described in Section 10.1.2.3. Factors that inﬂuence the technology include whether the team is colocated, the

conﬁdentiality of any information that needs to be shared, resources available to the team members, and how the

organization’s culture inﬂuences the way in which meetings and discussions are normally conducted.

10.2.2.2 COMMUNICATION METHODS

Described in Section 10.1.2.5. The choice of communication methods should allow ﬂexibility in the event that the

membership of the stakeholder community changes or their needs and expectations change.

384 Part 1 - Guide

10.2.2.3 COMMUNICATION SKILLS

Communication techniques that can be used for this process include but are not limited to:

 Communication competence. A combination of tailored communication skills that considers factors such as

clarity of purpose in key messages, effective relationships and information sharing, and leadership behaviors.

 Feedback. Feedback is information about reactions to communications, a deliverable, or a situation. Feedback

supports interactive communication between the project manager, team and all other project stakeholders.

Examples include coaching, mentoring, and negotiating.

 Nonverbal. Examples of nonverbal communication include appropriate body language to transmit meaning

through gestures, tone of voice, and facial expressions. Mirroring and eye contact are also important techniques.

The team members should be aware of how they are expressing themselves both through what they say and

what they don’t say.

 Presentations. A presentation is the formal delivery of information and/or documentation. Clear and effective

presentations of project information to relevant stakeholders can include but are not limited to:

 Progress reports and information updates to stakeholders;

 Background information to support decision making;

 General information about the project and its objectives, for the purposes of raising the proﬁle of the work of

the project and the team; and

 Speciﬁc information aimed at increasing understanding and support of the work and objectives of the project.

Presentations will be successful when the content and delivery take the following into account:

 The audience, their expectations, and needs; and

 The needs and objectives of the project and project team.

385

10.2.2.4 PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS)

Described in Section 4.3.2.2. Project management information systems can ensure that stakeholders can easily

retrieve the information they need in a timely way. Project information is managed and distributed using a variety of

tools, including:

 Electronic project management tools. Project management software, meeting and virtual ofﬁce support

software, web interfaces, specialized project portals and dashboards, and collaborative work management tools.

 Electronic communications management. Email, fax, and voice mail; audio, video and web conferencing; and

websites and web publishing.

 Social media management. Websites and web publishing; and blogs and applications, which offer the

opportunity to engage with stakeholders and form online communities.

10.2.2.5 PROJECT REPORTING

Project reporting is the act of collecting and distributing project information. Project information is distributed to

many groups of stakeholders and should be adapted to provide information at an appropriate level, format, and detail

for each type of stakeholder. The format may range from a simple communication to more elaborate custom reports

and presentations. Information may be prepared regularly or on an exception basis. While work performance reports are

the output of the Monitor and Control Project Work process, this process develops ad hoc reports, project presentations,

blogs, and other types of communication about the project.

386 Part 1 - Guide

10.2.2.6 INTERPERSONAL AND TEAM SKILLS

Interpersonal and team skills that can be used for this process include but are not limited to:

 Active listening. Techniques of active listening involve acknowledging, clarifying and conﬁrming, understanding,

and removing barriers that adversely affect comprehension.

 Conflict management. Described in Section 9.5.2.1.

 Cultural awareness. Described in Section 10.1.2.6.

 Meeting management. Meeting management is taking steps to ensure meetings meet their intended objectives

effectively and efﬁciently. The following steps should be used for meeting planning:

 Prepare and distribute the agenda stating the objectives of the meeting.

 Ensure that the meetings start and ﬁnish at the published time.

 Ensure the appropriate participants are invited and attend.

 Stay on topic.

 Manage expectations, issues, and conﬂicts during the meeting.

 Record all actions and those who have been allocated the responsibility for completing the action.

 Networking. Networking is interacting with others to exchange information and develop contacts. Networks

provide project managers and their teams with access to informal organizations to solve problems, inﬂuence

actions of their stakeholders, and increase stakeholder support for the work and outcomes of the project, thus

improving performance.

 Political awareness. Described in Section 10.1.2.6. Political awareness assists the project manager in engaging

stakeholders appropriately to maintain their support throughout the project.

10.2.2.7 MEETINGS

Meetings support the actions deﬁned in the communication strategy and communications plan.

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387

10.2.3 MANAGE COMMUNICATIONS: OUTPUTS

10.2.3.1 PROJECT COMMUNICATIONS

Project communications artifacts may include but are not limited to: performance reports, deliverable status, schedule

progress, cost incurred, presentations, and other information required by stakeholders.

10.2.3.2 PROJECT MANAGEMENT PLAN UPDATES

Any change to the project management plan goes through the organization’s change control process via a change

request. Components of the project management plan that may be updated as a result of carrying out this process

include but are not limited to:

 Communications management plan. Described in Section 10.1.3.1. When changes are made to the

project communications approach as a result of this process, these changes are reflected in the project

communications plan.

 Stakeholder engagement plan. Described in Section 13.2.3.1. Stakeholder communication requirements and

agreed-upon communications strategies are updated as a result of this process.

10.2.3.3 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Issue log. Described in Sections 4.3.3.3. The issue log is updated to reﬂect any communication issues on the

project, or how any communications have been used to impact active issues.

 Lessons learned register. Described in Section 4.3.3.1. The lessons learned register is updated with information

on challenges encountered and how they could have been avoided as well as approaches that worked well and

what did not work well for managing communications.

 Project schedule. Described in Section 6.5.3.2. The project schedule may be updated to reﬂect the status of

communication activities.

 Risk register. Described in Section 11.2.3.1. The risk register is updated to capture risks associated with

managing communications.

 Stakeholder register. Described in Section 13.1.3.1. The stakeholder register can be updated to include

information regarding communications activities with project stakeholders.

388 Part 1 - Guide

10.2.3.4 ORGANIZATIONAL PROCESS ASSETS UPDATES

Organizational process assets that may be updated as a result of this process include but are not limited to:

 Project records such as correspondence, memos, meeting minutes and other documents used on the project; and

 Planned and ad hoc project reports and presentations.

10.3 MONITOR COMMUNICATIONS

Monitor Communications is the process of ensuring the information needs of the project and its stakeholders are met.

The key beneﬁt of this process is the optimal information ﬂow as deﬁned in the communications management plan and

the stakeholder engagement plan. This process is performed throughout the project. The inputs, tools and techniques,

and outputs of the process are depicted in Figure 10-7. Figure 10-8 depicts the data ﬂow diagram for the process.

Figure 10-7. Monitor Communications: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

Monitor Communications

.1 Project management plan

• Resource management plan

• Communications

management plan

• Stakeholder engagement

plan

.2 Project documents

• Issue log

• Lessons learned register

• Project communications

.3 Work performance data

.4 Enterprise environmental

factors

.5 Organizational process assets

.1 Expert judgment

.2 Project management

information system

.3 Data analysis

• Stakeholder engagement

assessment matrix

.4 Interpersonal and team skills

• Observation/conversation

.5 Meetings

.1 Work performance

information

.2 Change requests

.3 Project management plan

updates

• Communications

management plan

• Stakeholder engagement

plan

.4 Project documents updates

• Issue log

• Lessons learned register

• Stakeholder register

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389

• Project

charter

4.3

Direct and

Manage

Project Work

Project management plan

• Resource management plan

• Communications management plan

• Stakeholder engagement plan

Project documents

• Issue log

• Lessons learned register

• Project communications

• Work performance reports

Project

Management

Plan

Project

Documents

Project

Documents

10.3

Monitor

Communications

Enterprise/

Organization

• Enterprise environmental factors

• Organizational process assets

• Work performance information

• Change requests

Project management

plan updates

• Communications

management plan

• Stakeholder

engagement plan

Project documents updates:

• Issue log

• Lessons learned register

• Stakeholder register

Project

Management

Plan

4.6

Perform

Integrated

Change Control

4.5

Monitor and

Control

Project Work

Figure 10-8. Monitor Communications: Data Flow Diagram

Monitor Communications determines if the planned communications artifacts and activities have had the desired

effect of increasing or maintaining stakeholders’ support for the project’s deliverables and expected outcomes. The

impact and consequences of project communications should be carefully evaluated and monitored to ensure that the

right message with the right content (the same meaning for sender and receiver) is delivered to the right audience,

through the right channel, and at the right time. Monitor Communications may require a variety of methods, such as

customer satisfaction surveys, collecting lessons learned, observations of the team, reviewing data from the issue log,

or evaluating changes in the stakeholder engagement assessment matrix described in Section 13.2.2.5.

The Monitor Communications process can trigger an iteration of the Plan Communications Management and/or

Manage Communications processes to improve effectiveness of communication through additional and possibly amended

communications plans and activities. Such iterations illustrate the continuous nature of the Project Communications

Management processes. Issues or key performance indicators, risks, or conﬂicts may trigger an immediate revision.

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10.3.1 MONITOR COMMUNICATIONS: INPUTS

10.3.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Resource management plan. Described in Section 9.1.3.1. The resource management plan can be used to

understand the actual project organization and any changes through understanding of roles and responsibilities

and the project organization charts.

 Communications management plan. Described in Section 10.1.3.1. The communications management plan

contains the current plan for collecting, creating, and distributing information in a timely manner. It identiﬁes the

team members, stakeholders, and the work involved in the communication process.

 Stakeholder engagement plan. Described in Section 13.2.3.1. The stakeholder engagement plan identiﬁes the

communication strategies that are planned to engage stakeholders.

10.3.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Issue log. Described in Section 4.3.3.3. The issue log provides the project’s history, a record of stakeholder

engagement issues, and how they were resolved.

 Lessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project can be applied to

later phases in the project to improve communication effectiveness.

 Project communications. Described in Section 10.2.3.1. Provides information about communications that have

been distributed.

10.3.1.3 WORK PERFORMANCE DATA

Described in Section 4.3.3.2. Work performance data contains data on the types and quantities of communications

that have actually been distributed.

391

10.3.1.4 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Monitor Communications process include but are not

limited to:

 Organizational culture, political climate, and governance framework;

 Established communication channels, tools, and systems;

 Global, regional, or local trends, practices, or habits; and

 Geographic distribution of facilities and resources.

10.3.1.5 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that may inﬂuence the Monitor Communications process include but are not

limited to:

 Corporate policies and procedures for social media, ethics, and security;

 Organizational communication requirements;

 Standardized guidelines for development, exchange, storage, and retrieval of information;

 Historical information and lessons learned repository from previous projects; and

 Stakeholder and communications data and information from previous projects.

10.3.2 MONITOR COMMUNICATIONS: TOOLS AND TECHNIQUES

10.3.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge

or training in the following topics:

 Communications with the public, the community, and the media, and, in an international environment, between

virtual groups; and

 Communications and project management systems.

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10.3.2.2 PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS)

Described in Section 4.3.2.2. Project management information systems provides a set of standard tools for the

project manager to capture, store, and distribute information to internal and external stakeholders with the information

they need according the communications plan. The information contained in the system is monitored to assess its

validity and effectiveness.

10.3.2.3 DATA REPRESENTATION

A data representation technique that can be used includes but is not limited to the stakeholder engagement

assessment matrix (Section 13.2.2.5), which can provide information about the effectiveness of the communications

activities. This is achieved by reviewing changes between desired and current engagement and adjusting

communications as necessary.

10.3.2.4 INTERPERSONAL AND TEAM SKILLS

Interpersonal and team skills that can be used for this process include but are not limited to observation/conversation

as described in Section 5.2.2.6. Discussion and dialogue with the project team helps determine the most appropriate

way to update and communicate project performance, and to respond to requests from stakeholders for information.

Observation and conversation enables the project manager to identify issues within the team, conﬂicts between people,

or individual performance issues.

10.3.2.5 MEETINGS

Face-to-face or virtual meetings are used for decision making; responding to stakeholder requests; and having

discussions with suppliers, vendors, and other project stakeholders.

10.3.3 MONITOR COMMUNICATIONS: OUTPUTS

10.3.3.1 WORK PERFORMANCE INFORMATION

Described in Section 4.5.1.3. Work performance information includes information on how project communication is

performing by comparing the communications that were implemented compared to those that were planned. It also

considers feedback on communications, such as survey results on communication effectiveness.

��

393

10.3.3.2 CHANGE REQUESTS

Described in Section 4.3.3.4. The Monitor Communications process often results in the need for adjustment, action,

and intervention on communications activities deﬁned in the communications management plan. Change requests are

processed through the Perform Integrated Change Control process (Section 4.6).

These change requests may result in:

 Revision of stakeholder communication requirements, including stakeholders’ information distribution, content or

format, and distribution method; and

 New procedures to eliminate bottlenecks.

10.3.3.3 PROJECT MANAGEMENT PLAN UPDATES

Any change to the project management plan goes through the organization’s change control process via a change

request. Components that may require a change request for the project management plan include but are not limited to:

 Communications management plan. Described in Section 10.1.3.1. The communications management plan is

updated with new information to make communication more effective.

 Stakeholder engagement plan. Described in Section 13.2.3.1. The stakeholder engagement plan is updated to

reﬂect the actual situation of stakeholders, their communication needs, and their importance.

10.3.3.4 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Issue log. Described in Section 4.3.3.3. The issue log may be updated with new information on issues raised,

their progress, and resolution.

 Lessons learned register. Described in Section 4.4.3.1. The lessons learned register may be updated with

causes of issues, reasons behind the corrective actions chosen, and other communication lessons learned

as appropriate.

 Stakeholder register. Described in Section 13.1.3.1. The stakeholder register may be updated with revised

stakeholder communication requirements.

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395

PROJECT RISK MANAGEMENT

Project Risk Management includes the processes of conducting risk management planning, identiﬁcation, analysis,

response planning, response implementation, and monitoring risk on a project. The objectives of project risk management

are to increase the probability and/or impact of positive risks and to decrease the probability and/or impact of negative

risks, in order to optimize the chances of project success.

The Project Risk Management processes are:

11.1 Plan Risk Management—The process of defining how to conduct risk management activities for a project.

11.2 Identify Risks—The process of identifying individual project risks as well as sources of overall project risk,

and documenting their characteristics.

11.3 Perform Qualitative Risk Analysis—The process of prioritizing individual project risks for further analysis

or action by assessing their probability of occurrence and impact as well as other characteristics.

11.4 Perform Quantitative Risk Analysis—The process of numerically analyzing the combined effect of identified

individual project risks and other sources of uncertainty on overall project objectives.

11.5 Plan Risk Responses—The process of developing options, selecting strategies, and agreeing on actions to

address overall project risk exposure, as well as to treat individual project risks.

11.6 Implement Risk Responses—The process of implementing agreed-upon risk response plans.

11.7 Monitor Risks—The process of monitoring the implementation of agreed-upon risk response plans,

tracking identified risks, identifying and analyzing new risks, and evaluating risk process effectiveness throughout

the project.

Figure 11-1 provides an overview of the Project Risk Management processes. The Project Management Risk processes

are presented as discrete processes with deﬁned interfaces while, in practice, they overlap and interact in ways that

cannot be completely detailed in this PMBOK® Guide.

396 Part 1 - Guide

Figure 11-1. Project Risk Management Overview

.1 Inputs

.1 Project charter

.2 Project management plan

.3 Project documents

.4 Enterprise environmental

factors

.5 Organizational process

assets

.2 Tools & Techniques

.1 Expert judgment

.2 Data analysis

.3 Meetings

.3 Outputs

.1 Risk management plan

Project Risk

Management Overview

11.1 Plan

Risk Management

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Agreements

.4 Procurement

documentation

.5 Enterprise environmental

factors

.6 Organizational process

assets

.2 Tools & Techniques

.1 Expert judgment

.2 Data gathering

.3 Data analysis

.4 Interpersonal and team

skills

.5 Prompt lists

.6 Meetings

. 3 Outputs

.1 Risk register

.2 Risk report

.3 Project documents

updates

11.2 Identify Risks

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Enterprise environmental

factors

.4 Organizational process

assets

.2 To ols & Techniques

.1 Expert judgment

.2 Data gathering

.3 Data analysis

.4 Interpersonal and team

skills

.5 Risk categorization

.6 Data representation

.7 Meetings

.3 Outputs

.1 Project documents updates

11.4 Perform

Quantitative Risk Analysis

1 Inputs

.1 Project management plan

.2 Project documents

.3 Enterprise environmental

factors

.4 Organizational process

assets

.2 Tools & Techniques

.1 Expert judgment

.2 Data gathering

.3 Interpersonal and team

skills

.4 Strategies for threats

.5 Strategies for opportunities

.6 Contingent response

strategies

.7 Strategies for overall

project risk

.8 Data analysis

.9 Decision making

.3 Outputs

.1 Change requests

.2 Project management plan

updates

.3 Project documents updates

11.5 Plan

Risk Responses

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Organizational process

assets

.2 Tools & Techniques

.1 Expert judgment

.2 Interpersonal and team

skills

.3 Project management

information system

.3 Outputs

.1 Change requests

.2 Project documents updates

11.6 Implement

Risk Responses

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Work performance data

.4 Work performance reports

.2 To ols & Techniques

.1 Data analysis

.2 Audits

.3 Meetings

.3 Outputs

.1 Work performance

information

.2 Change requests

.3 Project management plan

updates

.4 Project documents updates

.5 Organizational process

assets updates

11.7 Monitor Risks

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Enterprise environmental

factors

.4 Organizational process

assets

.2 Tools & Techniques

.1 Expert judgment

.2 Data gathering

.3 Interpersonal and team

skills

.4 Representations of

uncertainty

.5 Data analysis

.3 Outputs

.1 Project documents

updates

11.3 Perform

Qualitative Risk Analysis

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397

KEY CONCEPTS FOR PROJECT RISK MANAGEMENT

All projects are risky since they are unique undertakings with varying degrees of complexity that aim to deliver

beneﬁts. They do this in a context of constraints and assumptions, while responding to stakeholder expectations that

may be conﬂicting and changing. Organizations should choose to take project risk in a controlled and intentional manner

in order to create value while balancing risk and reward.

Project Risk Management aims to identify and manage risks that are not addressed by the other project management

processes. When unmanaged, these risks have the potential to cause the project to deviate from the plan and fail to

achieve the deﬁned project objectives. Consequently, the effectiveness of Project Risk Management is directly related

to project success.

Risk exists at two levels within every project. Each project contains individual risks that can affect the achievement of

project objectives. It is also important to consider the riskiness of the overall project, which arises from the combination

of individual project risks and other sources of uncertainty. Project Risk Management processes address both levels of

risk in projects, and these are deﬁned as follows:

 Individual project risk is an uncertain event or condition that, if it occurs, has a positive or negative effect on

one or more project objectives.

 Overall project risk is the effect of uncertainty on the project as a whole, arising from all sources of uncertainty

including individual risks, representing the exposure of stakeholders to the implications of variations in project

outcome, both positive and negative.

Individual project risks can have a positive or negative effect on project objectives if they occur. Project Risk

Management aims to exploit or enhance positive risks (opportunities) while avoiding or mitigating negative risks

(threats). Unmanaged threats may result in issues or problems such as delay, cost overruns, performance shortfall,

or loss of reputation. Opportunities that are captured can lead to beneﬁts such as reduced time and cost, improved

performance, or reputation.

Overall project risk can also be positive or negative. Management of overall project risk aims to keep project risk

exposure within an acceptable range by reducing drivers of negative variation, promoting drivers of positive variation,

and maximizing the probability of achieving overall project objectives.

398 Part 1 - Guide

Risks will continue to emerge during the lifetime of the project, so Project Risk Management processes should be conducted

iteratively. Risk is initially addressed during project planning by shaping the project strategy. Risk should also be monitored and

managed as the project progresses to ensure that the project stays on track and emergent risks are addressed.

In order to manage risk effectively on a particular project, the project team needs to know what level of risk exposure

is acceptable in pursuit of the project objectives. This is deﬁned by measurable risk thresholds that reﬂect the risk

appetite of the organization and project stakeholders. Risk thresholds express the degree of acceptable variation around

a project objective. They are explicitly stated and communicated to the project team and reﬂected in the deﬁnitions of

risk impact levels for the project.

TRENDS AND EMERGING PRACTICES IN PROJECT RISK MANAGEMENT

The focus of project risk management is broadening to ensure that all types of risk are considered, and that project

risks are understood in a wider context. Trends and emerging practices for Project Risk Management include but are

not limited to:

 Non-event risks. Most projects focus only on risks that are uncertain future events that may or may not occur.

Examples of event-based risks include: a key seller may go out of business during the project, the customer may

change the requirement after design is complete, or a subcontractor may propose enhancements to the standard

operating processes.

There is an increasing recognition that non-event risks need to be identiﬁed and managed. There are two main

types of non-event risks:

 Variability risk. Uncertainty exists about some key characteristics of a planned event or activity or decision.

Examples of variability risks include: productivity may be above or below target, the number of errors found

during testing may be higher or lower than expected, or unseasonal weather conditions may occur during the

construction phase.

 Ambiguity risk. Uncertainty exists about what might happen in the future. Areas of the project where

imperfect knowledge might affect the project’s ability to achieve its objectives include: elements of the

requirement or technical solution, future developments in regulatory frameworks, or inherent systemic

complexity in the project.

399

Variability risks can be addressed using Monte Carlo analysis, with the range of variation reﬂected in probability

distributions, followed by actions to reduce the spread of possible outcomes. Ambiguity risks are managed by

deﬁning those areas where there is a deﬁcit of knowledge or understanding, then ﬁlling the gap by obtaining

expert external input or benchmarking against best practices. Ambiguity is also addressed through incremental

development, prototyping, or simulation.

 Project resilience. The existence of emergent risk is becoming clear, with a growing awareness of so-called

unknowable-unknowns. These are risks that can only be recognized after they have occurred. Emergent risks

can be tackled through developing project resilience. This requires each project to have:

 Right level of budget and schedule contingency for emergent risks, in addition to a speciﬁc risk budget for

known risks;

 Flexible project processes that can cope with emergent risk while maintaining overall direction toward project

goals, including strong change management;

 Empowered project team that has clear objectives and that is trusted to get the job done within agreed-

upon limits;

 Frequent review of early warning signs to identify emergent risks as early as possible; and

 Clear input from stakeholders to clarify areas where the project scope or strategy can be adjusted in response

to emergent risks.

 Integrated risk management. Projects exist in an organizational context, and they may form part of a program

or portfolio. Risk exists at each of these levels, and risks should be owned and managed at the appropriate level.

Some risks identiﬁed at higher levels will be delegated to the project team for management, and some project

risks may be escalated to higher levels if they are best managed outside the project. A coordinated approach to

enterprise-wide risk management ensures alignment and coherence in the way risk is managed across all levels.

This builds risk efﬁciency into the structure of programs and portfolios, providing the greatest overall value for a

given level of risk exposure.

400 Part 1 - Guide

TAILORING CONSIDERATIONS

Because each project is unique, it is necessary to tailor the way Project Risk Management processes are applied.

Considerations for tailoring include but are not limited to:

 Project size. Does the project’s size in terms of budget, duration, scope, or team size require a more detailed

approach to risk management? Or is it small enough to justify a simpliﬁed risk process?

 Project complexity. Is a robust risk approach demanded by high levels of innovation, new technology, commercial

arrangements, interfaces, or external dependencies that increase project complexity? Or is the project simple

enough that a reduced risk process will sufﬁce?

 Project importance. How strategically important is the project? Is the level of risk increased for this project

because it aims to produce breakthrough opportunities, addresses signiﬁcant blocks to organizational

performance, or involves major product innovation?

 Development approach. Is this a waterfall project, where risk processes can be followed sequentially and

iteratively, or does the project follow an agile approach where risk is addressed at the start of each iteration as

well as during its execution?

Tailoring of the Project Risk Management processes to meet these considerations is part of the Plan Risk Management

process, and the outcomes of tailoring decisions are recorded in the risk management plan.

CONSIDERATIONS FOR AGILE/ADAPTIVE ENVIRONMENTS

High-variability environments, by deﬁnition, incur more uncertainty and risk. To address this, projects managed using

adaptive approaches make use of frequent reviews of incremental work products and cross-functional project teams to

accelerate knowledge sharing and ensure that risk is understood and managed. Risk is considered when selecting the

content of each iteration, and risks will also be identiﬁed, analyzed, and managed during each iteration.

Additionally, the requirements are kept as a living document that is updated regularly, and work may be reprioritized

as the project progresses, based on an improved understanding of current risk exposure.

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401

11.1 PLAN RISK MANAGEMENT

Plan Risk Management is the process of deﬁning how to conduct risk management activities for a project. The key

beneﬁt of this process is that it ensures that the degree, type, and visibility of risk management are proportionate to both

risks and the importance of the project to the organization and other stakeholders. This process is performed once or

at predeﬁned points in the project. The inputs, tools and techniques, and outputs of the process are depicted in Figure

11-2. Figure 11-3 depicts the data ﬂow diagram for the process.

Figure 11-2. Plan Risk Management: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

Plan Risk Management

.1 Expert judgment

.2 Data analysis

• Stakeholder analysis

.3 Meetings

.1 Project charter

.2 Project management plan

• All components

.3 Project documents

• Stakeholder register

.4 Enterprise environmental

factors

.5 Organizational process assets

.1 Risk management plan

402 Part 1 - Guide

• Project

charter

11.1

Plan Risk

Management

Enterprise/

Organization

4.1

Develop Project

Charter

• Project charter

Project documents

• Stakeholder register

• Enterprise environmental factors

• Organizational process assets

Project

Management

Plan

Project management plan

• All components

Project

Management

Plan

Project

Documents

• Risk management plan

Figure 11-3. Plan Risk Management: Data Flow Diagram

The Plan Risk Management process should begin when a project is conceived and should be completed early in the

project. It may be necessary to revisit this process later in the project life cycle, for example at a major phase change, or

if the project scope changes signiﬁcantly, or if a subsequent review of risk management effectiveness determines that

the Project Risk Management process requires modiﬁcation.

11.1.1 PLAN RISK MANAGEMENT: INPUTS

11.1.1.1 PROJECT CHARTER

Described in Section 4.1.3.1. The project charter documents the high-level project description and boundaries, high-

level requirements, and risks.

403

11.1.1.2 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. In planning Project Risk Management, all approved subsidiary management plans

should be taken into consideration in order to make the risk management plan consistent with them. The methodology

outlined in other project management plan components might inﬂuence the Plan Risk Management process.

11.1.1.3 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to the stakeholder

provides an overview of their project roles and their attitude toward risk on this project. This is useful in determining

roles and responsibilities for managing risk on the project, as well as setting risk thresholds for the project.

11.1.1.4 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Plan Risk Management process include but are not

limited to overall risk thresholds set by the organization or key stakeholders.

11.1.1.5 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Plan Risk Management process include but are not

limited to:

 Organizational risk policy;

 Risk categories, possibly organized into a risk breakdown structure;

 Common deﬁnitions of risk concepts and terms;

 Risk statement formats;

 Templates for the risk management plan, risk register, and risk report;

 Roles and responsibilities;

 Authority levels for decision making; and

 Lessons learned repository from previous similar projects.

404 Part 1 - Guide

11.1.2 PLAN RISK MANAGEMENT: TOOLS AND TECHNIQUES

11.1.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge

or training in the following topics:

 Familiarity with the organization’s approach to managing risk, including enterprise risk management where this

is performed;

 Tailoring risk management to the speciﬁc needs of a project; and

 Types of risk that are likely to be encountered on projects in the same area.

11.1.2.2 DATA ANALYSIS

Data analysis techniques that can be used for this process includes but are not limited to a stakeholder analysis

(Section 13.1.2.3) to determine the risk appetite of project stakeholders.

11.1.2.3 MEETINGS

The risk management plan may be developed as part of the project kick-off meeting or a speciﬁc planning meeting

may be held. Attendees may include the project manager, selected project team members, key stakeholders, or team

members who are responsible to manage the risk management process on the project. Others outside the organization

may also be invited, as needed, including customers, sellers, and regulators. A skilled facilitator can help participants

remain focused on the task, agree on key aspects of the risk approach, identify and overcome sources of bias, and

resolve any disagreements that may arise.

Plans for conducting risk management activities are deﬁned in these meetings and documented in the risk

management plan (see Section 11.1.3.1).

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405

11.1.3 PLAN RISK MANAGEMENT: OUTPUTS

11.1.3.1 RISK MANAGEMENT PLAN

The risk management plan is a component of the project management plan that describes how risk management

activities will be structured and performed. The risk management plan may include some or all of the following elements:

 Risk strategy. Describes the general approach to managing risk on this project.

 Methodology. Deﬁnes the speciﬁc approaches, tools, and data sources that will be used to perform risk

management on the project.

 Roles and responsibilities. Deﬁnes the lead, support, and risk management team members for each type of

activity described in the risk management plan, and clariﬁes their responsibilities.

 Funding. Identiﬁes the funds needed to perform activities related to Project Risk Management. Establishes

protocols for the application of contingency and management reserves.

 Timing. Deﬁnes when and how often the Project Risk Management processes will be performed throughout the

project life cycle, and establishes risk management activities for inclusion into the project schedule.

 Risk categories. Provide a means for grouping individual project risks. A common way to structure risk categories

is with a risk breakdown structure (RBS), which is a hierarchical representation of potential sources of risk (see

example in Figure 11-4). An RBS helps the project team consider the full range of sources from which individual

project risks may arise. This can be useful when identifying risks or when categorizing identiﬁed risks. The

organization may have a generic RBS to be used for all projects, or there may be several RBS frameworks for

different types of projects, or the project may develop a tailored RBS. Where an RBS is not used, an organization

may use a custom risk categorization framework, which may take the form of a simple list of categories or a

structure based on project objectives.

406 Part 1 - Guide

RBS LEVEL 0

0. ALL SOURCES OF

PROJECT RISK

1. TECHNICAL RISK

2. MANAGEMENT RISK

3. COMMERCIAL RISK

4. EXTERNAL RISK

RBS LEVEL 1RBS LEVEL 2

1.1 Scope definition

1.2 Requirements definition

1.3 Estimates, assumptions, and constraints

1.4 Technical processes

1.5 Technology

1.6 Technical interfaces

Etc.

2.1 Project management

2.2 Program/portfolio management

2.3 Operations management

2.4 Organization

2.5 Resourcing

2.6 Communication

Etc.

3.1 Contractual terms and conditions

3.2 Internal procurement

3.3 Suppliers and vendors

3.4 Subcontracts

3.5 Client/customer stability

3.6 Partnerships and joint ventures

Etc.

4.1 Legislation

4.2 Exchange rates

4.3 Site/facilities

4.4 Environmental/weather

4.5 Competition

4.6 Regulatory

Etc.

Figure 11-4. Extract from Sample Risk Breakdown Structure (RBS)

407

 Stakeholder risk appetite. The risk appetites of key stakeholders on the project are recorded in the risk

management plan, as they inform the details of the Plan Risk Management process. In particular, stakeholder risk

appetite should be expressed as measurable risk thresholds around each project objective. These thresholds will

determine the acceptable level of overall project risk exposure, and they are also used to inform the deﬁnitions of

probability and impacts to be used when assessing and prioritizing individual project risks.

 Definitions of risk probability and impacts. Deﬁnitions of risk probability and impact levels are speciﬁc to the

project context and reﬂect the risk appetite and thresholds of the organization and key stakeholders. The project

may generate speciﬁc deﬁnitions of probability and impact levels or it may start with general deﬁnitions provided

by the organization. The number of levels reﬂects the degree of detail required for the Project Risk Management

process, with more levels used for a more detailed risk approach (typically ﬁve levels), and fewer for a simple

process (usually three). Table 11-1 provides an example of deﬁnitions of probability and impacts against three

project objectives. These scales can be used to evaluate both threats and opportunities by interpreting the impact

deﬁnitions as negative for threats (delay, additional cost, and performance shortfall) and positive for opportunities

(reduced time or cost, and performance enhancement).

Table 11-1. Example of Definitions for Probability and Impacts

SCALEPROBABILITY

TIME COST QUALITY

+/– IMPACT ON PROJECT OBJECTIVES

Very significant impact on overall functionality

Significant impact on overall functionality

Some impact in key functional areas

Minor impact on overall functionality

Minor impact on secondary functions

No change in functionality

Very High

High

Medium

Low

Very Low

Nil

>70%

51-70%

31-50%

11-30%

1-10%

<1%

>6 months

3-6 months

1-3 months

1-4 weeks

1 week

No change

>$5M

$1M-$5M

$501K-$1M

$100K-$500K

<$100K

No change

408 Part 1 - Guide

 Probability and impact matrix. Described in Section 11.3.2.6. Prioritization rules may be speciﬁed by the

organization in advance of the project and be included in organizational process assets, or they may be tailored to

the speciﬁc project. Opportunities and threats are represented in a common probability and impact matrix using

positive deﬁnitions of impact for opportunities and negative impact deﬁnitions for threats. Descriptive terms

(such as very high, high, medium, low, and very low) or numeric values can be used for probability and impact.

Where numeric values are used, these can be multiplied to give a probability-impact score for each risk, which

allows the relative priority of individual risks to be evaluated within each priority level. An example probability and

impact matrix is presented in Figure 11-5, which also shows a possible numeric risk scoring scheme.

Figure 11-5. Example Probability and Impact Matrix with Scoring Scheme

 Reporting formats. Reporting formats deﬁne how the outcomes of the Project Risk Management process will

be documented, analyzed, and communicated. This section of the risk management plan describes the content

and format of the risk register and the risk report, as well as any other required outputs from the Project Risk

Management processes.

 Tracking. Tracking documents how risk activities will be recorded and how risk management processes will

be audited.

Probability

0.05

0.04

0.03

0.02

0.01

Very Low

0.05

Very High

0.90

High

0.70

Medium

0.50

Low

0.30

Very Low

0.10

Very High

0.90

High

0.70

Medium

0.50

Low

0.30

Very Low

0.10

0.09

0.07

0.05

0.03

0.01

Low

0.10

0.18

0.14

0.10

0.06

0.02

Moderate

0.20

0.36

0.28

0.20

0.12

0.04

High

0.40

0.72

0.56

0.40

0.24

0.08

Very High

0.80

Threats

0.05

0.04

0.03

0.02

0.01

Very Low

0.05

0.09

0.07

0.05

0.03

0.01

Low

0.10

0.18

0.14

0.10

0.06

0.02

Moderate

0.20

0.36

0.28

0.20

0.12

0.04

High

0.40

0.72

0.56

0.40

0.24

0.08

Very High

0.80

Opportunities

Negative Impact Positive Impact

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409

11.2 IDENTIFY RISKS

Identify Risks is the process of identifying individual project risks as well as sources of overall project risk, and

documenting their characteristics. The key beneﬁt of this process is the documentation of existing individual project risks

and the sources of overall project risk. It also brings together information so the project team can respond appropriately

to identiﬁed risks. This process is performed throughout the project. The inputs, tools and techniques, and outputs of the

process are depicted in Figure 11-6. Figure 11-7 depicts the data ﬂow diagram for the process.

Figure 11-6. Identify Risks: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

.1 Expert judgment

.2 Data gathering

• Brainstorming

• Checklists

• Interviews

.3 Data analysis

• Root cause analysis

• Assumption and constraint

analysis

• SWOT analysis

• Document analysis

.4 Interpersonal and team skills

• Facilitation

.5 Prompt lists

.6 Meetings

.1 Project management plan

• Requirements management

plan

• Schedule management plan

• Cost management plan

• Quality management plan

• Resource management plan

• Risk management plan

• Scope baseline

• Schedule baseline

• Cost baseline

.2 Project documents

• Assumption log

• Cost estimates

• Duration estimates

• Issue log

• Lessons learned register

• Requirements

documentation

• Resource requirements

• Stakeholder register

.3 Agreements

.4 Procurement documentation

.5 Enterprise environmental

factors

.6 Organizational process assets

.1 Risk register

.2 Risk report

.3 Project documents updates

• Assumption log

• Issue log

• Lessons learned register

Identify Risks

410 Part 1 - Guide

• Project

charter

12.1

Plan

Procurement

Management

Project management plan

• Requirements management plan

• Schedule management plan

• Cost management plan

• Resource management plan

• Quality management plan

• Risk management plan

• Scope baseline

• Schedule baseline

• Cost baseline

Project documents

• Assumption log

• Cost estimates

• Duration estimates

• Issue log

• Lessons learned register

• Requirements documentation

• Resource requirements

• Stakeholder register

• Procurement documentation

12.2

Conduct

Procurements

• Agreements

Project

Management

Plan

Project

Documents

Project

Documents

11.2

Identify

Risks

Enterprise/

Organization

• Enterprise environmental factors

• Organizational process assets

• Risk register

• Risk report

Project documents updates

• Assumption log

• Issue log

• Lessons learned register

Figure 11-7. Identify Risks: Data Flow Diagram

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411

Identify Risks considers both individual project risks and sources of overall project risk. Participants in risk

identiﬁcation activities may include the following: project manager, project team members, project risk specialist

(if assigned), customers, subject matter experts from outside the project team, end users, other project managers,

operations managers, stakeholders, and risk management experts within the organization. While these personnel are

often key participants for risk identiﬁcation, all project stakeholders should be encouraged to identify individual project

risks. It is particularly important to involve the project team so they can develop and maintain a sense of ownership and

responsibility for identiﬁed individual project risks, the level of overall project risk, and associated risk response actions.

When describing and recording individual project risks, a consistent format should be used for risk statements to

ensure that each risk is understood clearly and unambiguously in order to support effective analysis and risk response

development. Risk owners for individual project risks may be nominated as part of the Identify Risks process, and will

be conﬁrmed during the Perform Qualitative Risk Analysis process. Preliminary risk responses may also be identiﬁed

and recorded and will be reviewed and conﬁrmed as part of the Plan Risk Responses process.

Identify Risks is an iterative process, since new individual project risks may emerge as the project progresses through

its life cycle and the level of overall project risk will also change. The frequency of iteration and participation in each risk

identiﬁcation cycle will vary by situation, and this will be deﬁned in the risk management plan.

11.2.1 IDENTIFY RISKS: INPUTS

11.2.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Requirements management plan. Described in Section 5.1.3.2. The requirements management plan may

indicate project objectives that are particularly at risk.

 Schedule management plan. Described in Section 6.1.3.1. The schedule management plan may identify areas

that are subject to uncertainty or ambiguity.

 Cost management plan. Described in Section 7.1.3.1. The cost management plan may identify areas that are

subject to uncertainty or ambiguity.

 Quality management plan. Described in Section 8.1.3.1. The quality management plan may identify areas that

are subject to uncertainty or ambiguity, or where key assumptions have been made that might give rise to risk.

 Resource management plan. Described in Section 9.1.3.1. The resource management plan may identify

areas that are subject to uncertainty or ambiguity, or where key assumptions have been made that might give

rise to risk.

412 Part 1 - Guide

 Risk management plan. Described in Section 11.1.3.1. The risk management plan provides information on

risk-related roles and responsibilities, indicates how risk management activities are included in the budget and

schedule, and describes categories of risk, which may be expressed as a risk breakdown structure (Figure 11-4).

 Scope baseline. Described in Section 5.4.3.1. The scope baseline includes deliverables and criteria for their

acceptance, some of which might give rise to risk. It also contains the WBS, which can be used as a framework

to structure risk identiﬁcation techniques.

 Schedule baseline. Described in Section 6.5.3.1. The schedule baseline may be reviewed to identify milestones

and deliverable due dates that are subject to uncertainty or ambiguity, or where key assumptions have been

made that might give rise to risk.

 Cost baseline. Described in Section 7.3.3.1. The cost baseline may be reviewed to identify costs or funding

requirements that are subject to uncertainty or ambiguity, or where key assumptions have been made that might

give rise to risk.

11.2.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Assumption log. Described in Section 4.1.3.2. Assumptions and constraints recorded in the assumption log may

give rise to individual project risks and may also inﬂuence the level of overall project risk.

 Cost estimates. Described in Section 7.2.3.1. Cost estimates provide quantitative assessments of project costs,

ideally expressed as a range, indicating the degree of risk, where a structured review of the documents may

indicate that the current estimate is insufﬁcient and poses a risk to the project.

 Duration estimates. Described in Section 6.4.3.1. Duration estimates provide quantitative assessments of

project durations, ideally expressed as a range, indicating the degree of risk, where a structured review of the

documents may indicate that the current estimate is insufﬁcient and poses a risk to the project.

 Issue log. Described in Section 4.3.3.3. Issues recorded in the issue log may give rise to individual project risks

and may also inﬂuence the level of overall project risk.

 Lessons learned register. Described in Section 4.4.3.1. Lessons learned about risk identiﬁed from earlier phases

of the project are reviewed to determine whether similar risks might recur during the remainder of the project.

 Requirements documentation. Described in Section 5.2.3.1. Requirements documentation lists the project

requirements and allows the team to identify those that could be at risk.

413

 Resource requirements. Described in Section 9.2.3.1. Resource requirements provide quantitative

assessments of project resource requirements, ideally expressed as a range, indicating the degree of risk,

where a structured review of the documents may indicate that the current estimate is insufﬁcient and poses

a risk to the project.

 Stakeholder register. Described in Section 13.1.3.1. The stakeholder register indicates which individuals or

groups might participate in identifying risks to the project. It also details those individuals who are available to

act as risk owners.

11.2.1.3 AGREEMENTS

Described in Section 12.2.3.2. If the project requires external procurement of resources, the agreements may have

information such as milestone dates, contract type, acceptance criteria, and awards and penalties that can present

threats or opportunities.

11.2.1.4 PROCUREMENT DOCUMENTATION

Described in Section 12.3.1.4. If the project requires external procurement of resources, the initial procurement

documentation should be reviewed as procuring goods and services from outside the organization may increase or

decrease overall project risk and may introduce additional individual project risks. As the procurement documentation

is updated throughout the project, the most up to date documentation can be reviewed for risks. For example, seller

performance reports, approved change requests and information on inspections.

11.2.1.5 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Identify Risks process include but are not limited to:

 Published material, including commercial risk databases or checklists,

 Academic studies,

 Benchmarking results, and

 Industry studies of similar projects.

11.2.1.6 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Identify Risks process include but are not limited to:

 Project ﬁles, including actual data,

 Organizational and project process controls,

 Risk statement formats, and

 Checklists from previous similar projects.

414 Part 1 - Guide

11.2.2 IDENTIFY RISKS: TOOLS AND TECHNIQUES

11.2.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge

of similar projects or business areas. Such experts should be identiﬁed by the project manager and invited to consider

all aspects of individual project risks as well as sources of overall project risk, based on their previous experience and

areas of expertise. The experts’ bias should be taken into account in this process.

11.2.2.2 DATA GATHERING

Data-gathering techniques that can be used for this process include but are not limited to:

 Brainstorming. The goal of brainstorming (see Section 4.1.2.2) is to obtain a comprehensive list of individual

project risks and sources of overall project risk. The project team usually performs brainstorming, often with

a multidisciplinary set of experts who are not part of the team. Ideas are generated under the guidance of a

facilitator, either in a free-form brainstorm session or one that uses more structured techniques. Categories of

risk, such as in a risk breakdown structure, can be used as a framework. Particular attention should be paid to

ensuring that risks identiﬁed through brainstorming are clearly described, since the technique can result in ideas

that are not fully formed.

 Checklists. A checklist is a list of items, actions, or points to be considered. It is often used as a reminder.

Risk checklists are developed based on historical information and knowledge that has been accumulated from

similar projects and from other sources of information. They are an effective way to capture lessons learned

from similar completed projects, listing speciﬁc individual project risks that have occurred previously and that

may be relevant to this project. The organization may maintain a risk checklist based on its own completed

projects or may use generic risk checklists from the industry. While a checklist may be quick and simple to use,

it is impossible to build an exhaustive one, and care should be taken to ensure the checklist is not used to avoid

the effort of proper risk identiﬁcation. The project team should also explore items that do not appear on the

checklist. Additionally, the checklist should be reviewed from time to time to update new information as well as

remove or archive obsolete information.

 Interviews. Individual project risks and sources of overall project risk can be identiﬁed by interviewing experienced

project participants, stakeholders, and subject matter experts. Interviews (see Section 5.2.2.2) should be

conducted in an environment of trust and conﬁdentiality to encourage honest and unbiased contributions.

415

11.2.2.3 DATA ANALYSIS

Data analysis techniques that can be used for this process include but are not limited to:

 Root cause analysis. Root cause analysis (see Section 8.2.2.2) is typically used to discover the underlying

causes that lead to a problem, and develop preventive action. It can be used to identify threats by starting with a

problem statement (for example, the project might be delayed or over budget) and exploring which threats might

result in that problem occurring. The same technique can be used to ﬁnd opportunities by starting with a beneﬁt

statement (for example, early delivery or under budget) and exploring which opportunities might result in that

beneﬁt being realized.

 Assumption and constraint analysis. Every project and its project management plan are conceived

and developed based on a set of assumptions and within a series of constraints. These are often already

incorporated in the scope baseline and project estimates. Assumption and constraint analysis explores the

validity of assumptions and constraints to determine which pose a risk to the project. Threats may be identiﬁed

from the inaccuracy, instability, inconsistency, or incompleteness of assumptions. Constraints may give rise to

opportunities through removing or relaxing a limiting factor that affects the execution of a project or process.

 SWOT analysis. This technique examines the project from each of the strengths, weaknesses, opportunities,

and threats (SWOT) perspectives. For risk identiﬁcation, it is used to increase the breadth of identiﬁed risks by

including internally generated risks. The technique starts with the identiﬁcation of strengths and weaknesses

of the organization, focusing on either the project, organization, or the business area in general. SWOT analysis

then identiﬁes any opportunities for the project that may arise from strengths, and any threats resulting from

weaknesses. The analysis also examines the degree to which organizational strengths may offset threats and

determines if weaknesses might hinder opportunities.

 Document analysis. Described in Section 5.2.2.3. Risks may be identiﬁed from a structured review of project

documents, including, but not limited to, plans, assumptions, constraints, previous project ﬁles, contracts,

agreements, and technical documentation. Uncertainty or ambiguity in project documents, as well as

inconsistencies within a document or between different documents, may be indicators of risk on the project.

416 Part 1 - Guide

11.2.2.4 INTERPERSONAL AND TEAM SKILLS

Interpersonal and team skills that can be used for this process includes but are not limited to facilitation (see Section

4.1.2.3). Facilitation improves the effectiveness of many of the techniques used to identify individual project risks and

sources of overall project risk. A skilled facilitator can help participants remain focused on the risk identiﬁcation task,

follow the method associated with the technique accurately, ensure clear risk descriptions, identify and overcome

sources of bias, and resolve any disagreements that may arise.

11.2.2.5 PROMPT LISTS

A prompt list is a predetermined list of risk categories that might give rise to individual project risks and that could also

act as sources of overall project risk. The prompt list can be used as a framework to aid the project team in idea generation

when using risk identiﬁcation techniques. The risk categories in the lowest level of the risk breakdown structure can be

used as a prompt list for individual project risks. Some common strategic frameworks are more suitable for identifying

sources of overall project risk, for example PESTLE (political, economic, social, technological, legal, environmental), TECOP

(technical, environmental, commercial, operational, political), or VUCA (volatility, uncertainty, complexity, ambiguity).

11.2.2.6 MEETINGS

To undertake risk identiﬁcation, the project team may conduct a specialized meeting (often called a risk workshop).

Most risk workshops include some form of brainstorming (see Section 4.1.2.2), but other risk identiﬁcation techniques

may be included depending on the level of the risk process deﬁned in the risk management plan. Use of a skilled

facilitator will increase the effectiveness of the meeting. It is also essential to ensure that the right people participate in

the risk workshop. On larger projects, it may be appropriate to invite the project sponsor, subject matter experts, sellers,

representatives of the customer, or other project stakeholders. Risk workshops for smaller projects may be restricted to

a subset of the project team.

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417

11.2.3 IDENTIFY RISKS: OUTPUTS

11.2.3.1 RISK REGISTER

The risk register captures details of identiﬁed individual project risks. The results of Perform Qualitative Risk Analysis,

Plan Risk Responses, Implement Risk Responses, and Monitor Risks are recorded in the risk register as those processes

are conducted throughout the project. The risk register may contain limited or extensive risk information depending on

project variables such as size and complexity.

On completion of the Identify Risks process, the content of the risk register may include but is not limited to:

 List of identified risks. Each individual project risk is given a unique identiﬁer in the risk register. Identiﬁed risks

are described in as much detail as required to ensure unambiguous understanding. A structured risk statement

may be used to distinguish risks from their cause(s) and their effect(s).

 Potential risk owners. Where a potential risk owner has been identiﬁed during the Identify Risks process, the

risk owner is recorded in the risk register. This will be conﬁrmed during the Perform Qualitative Risk Analysis

process.

 List of potential risk responses. Where a potential risk response has been identiﬁed during the Identify Risks

process, it is recorded in the risk register. This will be conﬁrmed during the Plan Risk Responses process.

Additional data may be recorded for each identiﬁed risk, depending on the risk register format speciﬁed in the risk

management plan. This may include: a short risk title, risk category, current risk status, one or more causes, one or

more effects on objectives, risk triggers (events or conditions that indicate that a risk is about to occur), WBS reference

of affected activities, and timing information (when was the risk identiﬁed, when might the risk occur, when might it no

longer be relevant, and what is the deadline for taking action).

418 Part 1 - Guide

11.2.3.2 RISK REPORT

The risk report presents information on sources of overall project risk, together with summary information on identiﬁed

individual project risks. The risk report is developed progressively throughout the Project Risk Management process. The

results of Perform Qualitative Risk Analysis, Perform Quantitative Risk Analysis, Plan Risk Responses, Implement Risk

Responses, and Monitor Risks are also included in the risk report as those processes are completed. On completion of

the Identify Risks process, information in the risk report may include but is not limited to:

 Sources of overall project risk, indicating which are the most important drivers of overall project risk exposure;

and

 Summary information on identiﬁed individual project risks, such as number of identiﬁed threats and opportunities,

distribution of risks across risk categories, metrics and trends, etc.

Additional information may be included in the risk report, depending on the reporting requirements speciﬁed in the

risk management plan.

11.2.3.3 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of this process include but are not limited to:

 Assumption log. Described in Section 4.1.3.2. During the Identify Risks process, new assumptions may be

made, new constraints may be identiﬁed, and existing assumptions or constraints may be revisited and changed.

The assumption log should be updated with this new information.

 Issue log. Described in Section 4.3.3.3. The issue log should be updated to capture any new issues uncovered

or changes in currently logged issues.

 Lessons learned register. Described in Section 4.4.3.1. The lessons learned register can be updated with

information on techniques that were effective in identifying risks to improve performance in later phases or

other projects.

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419

11.3 PERFORM QUALITATIVE RISK ANALYSIS

Perform Qualitative Risk Analysis is the process of prioritizing individual project risks for further analysis or action

by assessing their probability of occurrence and impact as well as other characteristics. The key beneﬁt of this

process is that it focuses efforts on high-priority risks. This process is performed throughout the project. The inputs,

tools and techniques, and outputs of the process are depicted in Figure 11-8. Figure 11-9 depicts the data ﬂow

diagram for the process.

Figure 11-8. Perform Qualitative Risk Analysis: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

.1 Expert judgment

.2 Data gathering

• Interviews

.3 Data analysis

• Risk data quality

assessment

• Risk probability and impact

assessment

• Assessment of other risk

parameters

.4 Interpersonal and team skills

• Facilitation

.5 Risk categorization

.6 Data representation

• Probability and impact

matrix

• Hierarchical charts

.7 Meetings

.1 Project management plan

• Risk management plan

.2 Project documents

• Assumption log

• Risk register

• Stakeholder register

.3 Enterprise environmental

factors

.4 Organizational process assets

.1 Project documents updates

• Assumption log

• Issue log

• Risk register

• Risk report

Perform Qualitative Risk Analysis

420 Part 1 - Guide

• Project

charter

11.3

Perform

Qualitative

Risk Analysis

Enterprise/

Organization

Project documents updates

• Assumption log

• Issue log

• Risk register

• Risk report

Project management plan

• Risk management plan

Project documents

• Assumption log

• Risk register

• Stakeholder register

• Enterprise environmental factors

• Organizational process assets

Project

Documents

Project

Management

Plan

Project

Documents

Figure 11-9. Perform Qualitative Risk Analysis: Data Flow Diagram

Perform Qualitative Risk Analysis assesses the priority of identiﬁed individual project risks using their probability of

occurrence, the corresponding impact on project objectives if the risks occur, and other factors. Such assessments are

subjective as they are based on perceptions of risk by the project team and other stakeholders. Effective assessment

therefore requires explicit identiﬁcation and management of the risk attitudes of key participants in the Perform

Qualitative Risk Analysis process. Risk perception introduces bias into the assessment of identiﬁed risks, so attention

should be paid to identifying bias and correcting for it. Where a facilitator is used to support the Perform Qualitative

Risk Analysis process, addressing bias is a key part of the facilitator’s role. An evaluation of the quality of the available

information on individual project risks also helps to clarify the assessment of each risk’s importance to the project.

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421

Perform Qualitative Risk Analysis establishes the relative priorities of individual project risks for Plan Risk Responses.

It identiﬁes a risk owner for each risk who will take responsibility for planning an appropriate risk response and ensuring

that it is implemented. Perform Qualitative Risk Analysis also lays the foundation for Perform Quantitative Risk Analysis

if this process is required.

The Perform Qualitative Risk Analysis process is performed regularly throughout the project life cycle, as deﬁned in

the risk management plan. Often, in an agile development environment, the Perform Qualitative Risk Analysis process is

conducted before the start of each iteration.

11.3.1 PERFORM QUALITATIVE RISK ANALYSIS: INPUTS

11.3.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include the risk management plan as

described in Section 11.1.3.1. Of particular interest in this process are the roles and responsibilities for conducting risk

management, budgets for risk management, schedule activities for risk management, risk categories (often deﬁned in

a risk breakdown structure), deﬁnitions of probability and impact, the probability and impact matrix, and stakeholders’

risk thresholds. These inputs are usually tailored to the project during the Plan Risk Management process. If they are

not available, they may be developed during the Perform Qualitative Risk Analysis process and presented to the project

sponsor for approval before use.

11.3.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Assumption log. Described in Section 4.1.3.2. The assumption log is used for identifying, managing, and

monitoring key assumptions and constraints that may affect the project. These may inform the assessment of

the priority of individual project risks.

 Risk register. Described in Section 11.2.3.1. The risk register contains details of each identiﬁed individual project

risk that will be assessed during the Perform Qualitative Risk Analysis process.

 Stakeholder register. Described in Section 13.1.3.1. This includes details of project stakeholders who may be

nominated as risk owners.

422 Part 1 - Guide

11.3.1.3 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence Perform Qualitative Risk Analysis include but are not limited to:

 Industry studies of similar projects, and

 Published material, including commercial risk databases or checklists.

11.3.1.4 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence Perform Qualitative Risk Analysis include but are not limited to

information from similar completed projects.

11.3.2 PERFORM QUALITATIVE RISK ANALYSIS: TOOLS AND TECHNIQUES

11.3.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge

or training in the following topics:

 Previous similar projects, and

 Qualitative risk analysis.

Expert judgment is often obtained through facilitated risk workshops or interviews. The possibility of expert views

being biased should be taken into account in this process.

11.3.2.2 DATA GATHERING

Data-gathering techniques that can be used for this process include but are not limited to interviews. Structured or

semi-structured interviews (Section 5.2.2.2) can be used to assess the probability and impacts of individual project risks,

as well as other factors. The interviewer should promote an environment of trust and conﬁdentiality in the interview

setting to encourage honest and unbiased assessments.

423

11.3.2.3 DATA ANALYSIS

Data analysis techniques that can be used during this process include but are not limited to:

 Risk data quality assessment. Risk data quality assessment evaluates the degree to which the data about

individual project risks is accurate and reliable as a basis for qualitative risk analysis. The use of low-quality

risk data may lead to a qualitative risk analysis that is of little use to the project. If data quality is unacceptable,

it may be necessary to gather better data. Risk data quality may be assessed via a questionnaire measuring

the project’s stakeholder perceptions of various characteristics, which may include completeness, objectivity,

relevancy, and timeliness. A weighted average of selected data quality characteristics can then be generated to

give an overall quality score.

 Risk probability and impact assessment. Risk probability assessment considers the likelihood that a speciﬁc

risk will occur. Risk impact assessment considers the potential effect on one or more project objectives such

as schedule, cost, quality, or performance. Impacts will be negative for threats and positive for opportunities.

Probability and impact are assessed for each identiﬁed individual project risk. Risks can be assessed in

interviews or meetings with participants selected for their familiarity with the types of risk recorded in the

risk register. Project team members and knowledgeable persons external to the project are included. The level

of probability for each risk and its impact on each objective are evaluated during the interview or meeting.

Differences in the levels of probability and impact perceived by stakeholders are to be expected, and such

differences should be explored. Explanatory detail, including assumptions justifying the levels assigned, are

also recorded. Risk probabilities and impacts are assessed using the deﬁnitions given in the risk management

plan (see Table 11-1). Risks with low probability and impact may be included within the risk register as part

of a watch list for future monitoring.

 Assessment of other risk parameters. The project team may consider other characteristics of risk (in addition

to probability and impact) when prioritizing individual project risks for further analysis and action. These

characteristics may include but are not limited to:

424 Part 1 - Guide

 Urgency. The period of time within which a response to the risk is to be implemented in order to be effective.

A short period indicates high urgency.

 Proximity. The period of time before the risk might have an impact on one or more project objectives. A short

period indicates high proximity.

 Dormancy. The period of time that may elapse after a risk has occurred before its impact is discovered. A

short period indicates low dormancy.

 Manageability. The ease with which the risk owner (or owning organization) can manage the occurrence or

impact of a risk. Where management is easy, manageability is high.

 Controllability. The degree to which the risk owner (or owning organization) is able to control the risk’s

outcome. Where the outcome can be easily controlled, controllability is high.

 Detectability. The ease with which the results of the risk occurring, or being about to occur, can be detected

and recognized. Where the risk occurrence can be detected easily, detectability is high.

 Connectivity. The extent to which the risk is related to other individual project risks. Where a risk is connected

to many other risks, connectivity is high.

 Strategic impact. The potential for the risk to have a positive or negative effect on the organization’s strategic

goals. Where the risk has a major effect on strategic goals, strategic impact is high.

 Propinquity. The degree to which a risk is perceived to matter by one or more stakeholders. Where a risk is

perceived as very signiﬁcant, propinquity is high.

The consideration of some of these characteristics can provide a more robust prioritization of risks than is possible

by only assessing probability and impact.

11.3.2.4 INTERPERSONAL AND TEAM SKILLS

Interpersonal and team skills that can be used for this process include but are not limited to facilitation (see Section

4.1.2.3). Facilitation improves the effectiveness of the qualitative analysis of individual project risks. A skilled facilitator

can help participants remain focused on the risk analysis task, follow the method associated with the technique

accurately, reach consensus on assessments of probability and impacts, identify and overcome sources of bias, and

resolve any disagreements that may arise.

425

11.3.2.5 RISK CATEGORIZATION

Risks to the project can be categorized by sources of risk (e.g., using the risk breakdown structure (RBS); see

Figure 11-4), the area of the project affected (e.g., using the work breakdown structure (WBS); see Figures 5-12,

5-13, and 5-14), or other useful categories (e.g., project phase, project budget, and roles and responsibilities) to

determine the areas of the project most exposed to the effects of uncertainty. Risks can also be categorized by

common root causes. Risk categories that may be used for the project are deﬁned in the risk management plan.

Grouping risks into categories can lead to the development of more effective risk responses by focusing attention and

effort on the areas of highest risk exposure, or by developing generic risk responses to address groups of related risks.

11.3.2.6 DATA REPRESENTATION

Data representation techniques that can be used during this process include but are not limited to:

 Probability and impact matrix. A probability and impact matrix is a grid for mapping the probability of each

risk occurrence and its impact on project objectives if that risk occurs. This matrix speciﬁes combinations of

probability and impact that allow individual project risks to be divided into priority groups (see Figure 11-5). Risks

can be prioritized for further analysis and planning of risk responses based on their probability and impacts.

The probability of occurrence for each individual project risk is assessed as well as its impact on one or more

project objectives if it does occur, using deﬁnitions of probability and impact for the project as speciﬁed in the

risk management plan. Individual project risks are assigned to a priority level based on the combination of their

assessed probability and impact, using a probability and impact matrix.

An organization can assess a risk separately for each objective (e.g., cost, time, and scope) by having a separate

probability and impact matrix for each. Alternatively, it may develop ways to determine one overall priority level

for each risk, either by combining assessments for different objectives, or by taking the highest priority level

regardless of which objective is affected.

 Hierarchical charts. Where risks have been categorized using more than two parameters, the probability and

impact matrix cannot be used and other graphical representations are required. For example, a bubble chart displays

three dimensions of data, where each risk is plotted as a disk (bubble), and the three parameters are represented

by the x-axis value, the y-axis value, and the bubble size. An example bubble chart is shown in Figure 11-10, with

detectability and proximity plotted on the x and y axes, and impact value represented by bubble size.

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426 Part 1 - Guide

Figure 11-10. Example Bubble Chart Showing Detectability, Proximity, and Impact Value

11.3.2.7 MEETINGS

To undertake qualitative risk analysis, the project team may conduct a specialized meeting (often called a risk

workshop) dedicated to the discussion of identiﬁed individual project risks. The goals of this meeting include the review

of previously identiﬁed risks, assessment of probability and impacts (and possibly other risk parameters), categorization,

and prioritization. A risk owner, who will be responsible for planning an appropriate risk response and for reporting

progress on managing the risk, will be allocated to each individual project risk as part of the Perform Qualitative Risk

Analysis process. The meeting may start by reviewing and conﬁrming the probability and impact scales to be used for

the analysis. The meeting may also identify additional risks during the discussion, and these should be recorded for

analysis. Use of a skilled facilitator will increase the effectiveness of the meeting.

Proximity

High

Low

Low High

Detectability

Large

bubbles

in this

area are

unacceptable

Bubble size = Impact Value

Small bubbles

in this area are

acceptable

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427

11.3.3 PERFORM QUALITATIVE RISK ANALYSIS: OUTPUTS

11.3.3.1 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Assumption log. Described in Section 4.1.3.2. During the Perform Qualitative Risk Analysis process, new

assumptions may be made, new constraints may be identiﬁed, and existing assumptions or constraints may be

revisited and changed. The assumption log should be updated with this new information.

 Issue log. Described in Section 4.3.3.3. The issue log should be updated to capture any new issues uncovered

or changes in currently logged issues.

 Risk register. Described in Section 11.2.3.1. The risk register is updated with new information generated during

the Perform Qualitative Risk Analysis process. Updates to the risk register may include assessments of probability

and impacts for each individual project risk, its priority level or risk score, the nominated risk owner, risk urgency

information or risk categorization, and a watch list for low-priority risks or risks requiring further analysis.

 Risk report. Described in Section 11.2.3.2. The risk report is updated to reﬂect the most important individual

project risks (usually those with the highest probability and impact), as well as a prioritized list of all identiﬁed

risks on the project and a summary conclusion.

428 Part 1 - Guide

11.4 PERFORM QUANTITATIVE RISK ANALYSIS

Perform Quantitative Risk Analysis is the process of numerically analyzing the combined effect of identiﬁed individual

project risks and other sources of uncertainty on overall project objectives. The key beneﬁt of this process is that it

quantiﬁes overall project risk exposure, and it can also provide additional quantitative risk information to support risk

response planning. This process is not required for every project, but where it is used, it is performed throughout the

project. The inputs and outputs of this process are depicted in Figure 11-11. Figure 11-12 depicts the data ﬂow diagram

for the process.

Figure 11-11. Perform Quantitative Risk Analysis: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

.1 Expert judgment

.2 Data gathering

• Interviews

.3 Interpersonal and team skills

• Facilitation

.4 Representations of

uncertainty

.5 Data analysis

• Simulations

• Sensitivity analysis

• Decision tree analysis

• Influence diagrams

.1 Project management plan

• Risk management plan

• Scope baseline

• Schedule baseline

• Cost baseline

.2 Project documents

• Assumption log

• Basis of estimates

• Cost estimates

• Cost forecasts

• Duration estimates

• Milestone list

• Resource requirements

• Risk register

• Risk report

• Schedule forecasts

.3 Enterprise environmental

factors

.4 Organizational process assets

.1 Project documents updates

• Risk report

Perform Quantitative Risk Analysis

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429

• Project

charter

11.4

Perform

Quantitative

Risk Analysis

Enterprise/

Organization

Project documents updates

• Risk report

Project documents

• Assumption log

• Basis of estimates

• Cost estimates

• Cost forecasts

• Duration estimates

• Milestone list

• Resource requirements

• Risk register

• Risk report

• Schedule forecasts

• Enterprise environmental factors

• Organizational process assets

Project

Documents

Project

Management

Plan

Project

Documents

Project management plan

• Risk management plan

• Scope baseline

• Schedule baseline

• Cost baseline

Figure 11-12. Perform Quantitative Risk Analysis: Data Flow Diagram

Perform Quantitative Risk Analysis is not required for all projects. Undertaking a robust analysis depends on the availability

of high-quality data about individual project risks and other sources of uncertainty, as well as a sound underlying project

baseline for scope, schedule, and cost. Quantitative risk analysis usually requires specialized risk software and expertise

in the development and interpretation of risk models. It also consumes additional time and cost. The use of quantitative

risk analysis for a project will be speciﬁed in the project’s risk management plan. It is most likely appropriate for large or

complex projects, strategically important projects, projects for which it is a contractual requirement, or projects in which

a key stakeholder requires it. Quantitative risk analysis is the only reliable method to assess overall project risk through

evaluating the aggregated effect on project outcomes of all individual project risks and other sources of uncertainty.

Perform Quantitative Risk Analysis uses information on individual project risks that have been assessed by the

Perform Qualitative Risk Analysis process as having a signiﬁcant potential to affect the project’s objectives.

Outputs from Perform Quantitative Risk Analysis are used as inputs to the Plan Risk Responses process, particularly

in recommending responses to the level of overall project risk and key individual risks. A quantitative risk analysis

may also be undertaken following the Plan Risk Responses process, to determine the likely effectiveness of planned

responses in reducing overall project risk exposure.

430 Part 1 - Guide

11.4.1 PERFORM QUANTITATIVE RISK ANALYSIS: INPUTS

11.4.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Risk management plan. Described in Section 11.1.3.1. The risk management plan speciﬁes whether quantitative

risk analysis is required for the project. It also details the resources available for the analysis and the expected

frequency of analyses.

 Scope baseline. Described in Section 5.4.3.1. The scope baseline describes the starting point from which the

effect of individual project risks and other sources of uncertainty are evaluated.

 Schedule baseline. Described in Section 6.5.3.1. The schedule baseline describes the starting point from which

the effect of individual project risks and other sources of uncertainty can be evaluated.

 Cost baseline. Described in Section 7.3.3.1. The cost baseline describes the starting point from which the effect

of individual project risks and other sources of uncertainty can be evaluated.

11.4.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Assumption log. Described in Section 4.1.3.2. Assumptions may form inputs to the quantitative risk analysis if

they are assessed as posing a risk to project objectives. The effect of constraints may also be modeled during a

quantitative risk analysis.

 Basis of estimates. Described in Sections 6.4.3.2 and 7.2.3.2. The basis of estimates used in the planning of

the project may be reﬂected in variability modeled during a quantitative risk analysis process. This may include

information on the estimate’s purpose, classiﬁcation, assumed accuracy, methodology, and source.

 Cost estimates. Described in Section 7.2.3.1. Cost estimates provide the starting point from which cost variability

is evaluated.

 Cost forecasts. Described in Section 7.4.3.2. Forecasts such as the project’s estimate to complete (ETC),

estimate at completion (EAC), budget at completion (BAC), and to-complete performance index (TCPI) may be

compared to the results of a quantitative cost risk analysis to determine the conﬁdence level associated with

achieving these targets.

 Duration estimates. Described in Section 6.4.3.1. Duration estimates provide the starting point from which

schedule variability is evaluated.

 Milestone list. Described in Section 6.2.3.3. Signiﬁcant events in the project deﬁne the schedule targets against

which the results of a quantitative schedule risk analysis are compared, in order to determine the conﬁdence

level associated with achieving these targets.

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431

 Resource requirements. Described in Section 9.2.3.1. Resource requirements provide the starting point from

which variability is evaluated.

 Risk register. Described in Section 11.2.3.1. The risk register contains details of individual project risks to be

used as input for quantitative risk analysis.

 Risk report. Described in Section 11.2.3.2. The risk report describes sources of overall project risk and the

current overall project risk status.

 Schedule forecasts. Described in Section 6.6.3.2. Forecasts may be compared to the results of a quantitative

schedule risk analysis to determine the conﬁdence level associated with achieving these targets.

11.4.1.3 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Perform Quantitative Risk Analysis process include but

are not limited to:

 Industry studies of similar projects, and

 Published material, including commercial risk databases or checklists.

11.4.1.4 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Perform Quantitative Risk Analysis process include

information from similar completed projects.

11.4.2 PERFORM QUANTITATIVE RISK ANALYSIS: TOOLS AND TECHNIQUES

11.4.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge

or training in the following topics:

 Translating information on individual project risks and other sources of uncertainty into numeric inputs for the

quantitative risk analysis model,

 Selecting the most appropriate representation of uncertainty to model particular risks or other sources of uncertainty,

 Modeling techniques that are appropriate in the context of the project,

 Identifying which tools would be most suitable for the selected modeling techniques, and

 Interpreting the outputs of quantitative risk analysis.

432 Part 1 - Guide

11.4.2.2 DATA GATHERING

Interviews (see Section 5.2.2.2) may be used to generate inputs for the quantitative risk analysis, drawing on inputs

that include individual project risks and other sources of uncertainty. This is particularly useful where information is

required from experts. The interviewer should promote an environment of trust and conﬁdentiality during the interview

to encourage honest and unbiased contributions.

11.4.2.3 INTERPERSONAL AND TEAM SKILLS

Interpersonal and team skills that can be used for this process include but are not limited to facilitation (see

Section 4.1.2.3). A skilled facilitator is useful for gathering input data during a dedicated risk workshop involving

project team members and other stakeholders. Facilitated workshops can improve effectiveness by establishing a

clear understanding of the purpose of the workshop, building consensus among participants, ensuring continued

focus on the task, and using creative approaches to deal with interpersonal conﬂict or sources of bias.

11.4.2.4 REPRESENTATIONS OF UNCERTAINTY

Quantitative risk analysis requires inputs to a quantitative risk analysis model that reﬂect individual project risks and

other sources of uncertainty.

Where the duration, cost, or resource requirement for a planned activity is uncertain, the range of possible values

can be represented in the model as a probability distribution. This may take several forms. The most commonly used

are triangular, normal, lognormal, beta, uniform, or discrete distributions. Care should be taken when selecting an

appropriate probability distribution to reﬂect the range of possible values for the planned activity.

Individual project risks may be covered by probability distributions. Alternatively, risks may be included in the

model as probabilistic branches, where optional activities are added to the model to represent the time and/or cost

impact of the risk should it occur, and the chance that these activities actually occur in a particular simulation run

matches the risk’s probability. Branches are most useful for risks that might occur independently of any planned

activity. Where risks are related, for example, with a common cause or a logical dependency, correlation is used in

the model to indicate this relationship.

Other sources of uncertainty may also be represented using branches to describe alternative paths through

the project.

433

11.4.2.5 DATA ANALYSIS

Data analysis techniques that can be used during this process include but are not limited to:

 Simulation. Quantitative risk analysis uses a model that simulates the combined effects of individual project risks

and other sources of uncertainty to evaluate their potential impact on achieving project objectives. Simulations

are typically performed using a Monte Carlo analysis. When running a Monte Carlo analysis for cost risk, the

simulation uses the project cost estimates. When running a Monte Carlo analysis for schedule risk, the schedule

network diagram and duration estimates are used. An integrated quantitative cost-schedule risk analysis uses

both inputs. The output is a quantitative risk analysis model.

Computer software is used to iterate the quantitative risk analysis model several thousand times. The input

values (e.g., cost estimates, duration estimates, or occurrence of probabilistic branches) are chosen at random

for each iteration. Outputs represent the range of possible outcomes for the project (e.g., project end date,

project cost at completion). Typical outputs include a histogram presenting the number of iterations where a

particular outcome resulted from the simulation, or a cumulative probability distribution (S-curve) representing

the probability of achieving any particular outcome or less. An example S-curve from a Monte Carlo cost risk

analysis is shown in Figure 11-13.

Figure 11-13. Example S-Curve from Quantitative Cost Risk Analysis

100

$2.0M

23% Chance

of Meeting

Target

$2.2M

Expected

Value

$2.35M

85% Chance

of Costing

$2.45M or Less

$2.1M $2.2M $2.3M $2.4M $2.5M $2.6M $2.7M $2.8M

Predicted Total Project Cost

Cumulative Probability (%)

Range of Uncertainty

434 Part 1 - Guide

For a quantitative schedule risk analysis, it is also possible to conduct a criticality analysis that determines which

elements of the risk model have the greatest effect on the project critical path. A criticality index is calculated for

each element in the risk model, which gives the frequency with which that element appears on the critical path

during the simulation, usually expressed as a percentage. The output from a criticality analysis allows the project

team to focus risk response planning efforts on those activities with the highest potential effect on the overall

schedule performance of the project.

 Sensitivity analysis. Sensitivity analysis helps to determine which individual project risks or other sources of

uncertainty have the most potential impact on project outcomes. It correlates variations in project outcomes with

variations in elements of the quantitative risk analysis model.

One typical display of sensitivity analysis is the tornado diagram, which presents the calculated correlation

coefﬁcient for each element of the quantitative risk analysis model that can inﬂuence the project outcome.

This can include individual project risks, project activities with high degrees of variability, or speciﬁc sources

of ambiguity. Items are ordered by descending strength of correlation, giving the typical tornado appearance.

An example tornado diagram is shown in Figure 11-14.

Figure 11-14. Example Tornado Diagram

Activity or Risk Driving

Projection Duration

Correlation with Project Duration

-0.2 -0.1 0 0.1 0.2 0.3 0.4 0.5

Activity B12.3 Manufacture reactors

Risk 5.2 DCS may fail installation test

Risk 5.7 Duplicate test may not be required

Activity A3.12 Construct control room

Risk 4.6 Piling contractor may deliver early

Activity A7.1 Provide temporary facilities

Activity D1.9 Install Equipment

Risk 7.2 Hydrotest may find fewer faults

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435

 Decision tree analysis. Decision trees are used to support selection of the best of several alternative courses of

action. Alternative paths through the project are shown in the decision tree using branches representing different

decisions or events, each of which can have associated costs and related individual project risks (including both

threats and opportunities). The end-points of branches in the decision tree represent the outcome from following

that particular path, which can be negative or positive.

The decision tree is evaluated by calculating the expected monetary value of each branch, allowing the optimal

path to be selected. An example decision tree is shown in Figure 11-15.

Figure 11-15. Example Decision Tree

Computed:

Payoffs minus Costs

along Path

Decision Definition Decision Node Chance Node Net Path Value

Decision to

be Made

Input: Cost of Each Decision

Output: Decision Made

Input: Scenario Probability,

Reward if it Occurs

Output: Expected Monetary

Value (EMV)

Build or Upgrade?

$80M

60%

40%

60%

40%

-$30M

$36M = .60 ($80M) +

.40 (–$30M)

EMV (before costs) of Build

New Plant considering demand

$46M = .60 ($70M) +

.40 ($10M)

EMV (before costs) of Upgrade

Plant considering demand

Decision EMV = $46M

(the larger of $36M

and $46M)

$80M = $200M – $120M

–$30M = $90M – $120M

$70M = $120M – $50M

$10M = $60M – $50M

$70M

$10M

Note 1: The decision tree shows how to make a decision between alternative capital strategies (represented as “decision nodes”)

when the environment contains uncertain elements (represented as “chance nodes”).

Note 2: Here, a decision is being made whether to invest $120M US to build a new plant or to instead invest only $50M US

to upgrade the existing plant. For each decision, the demand (which is uncertain, and therefore represents a

“chance node”) must be accounted for. For example, strong demand leads to $200M revenue with the new plant

but only $120M US for the upgraded plant, perhaps due to capacity limitations of the upgraded plant. The end of

each branch shows the net effect of the payoffs minus costs. For each decision branch, all effects are added (see

shaded areas) to determine the overall Expected Monetary Value (EMV) of the decision. Remember to account for

the investment costs. From the calculations in the shaded areas, the upgraded plant has a higher EMV of $46M –

also the EMV of the overall decision. (This choice also represents the lowest risk, avoiding the worst case possible

outcome of a loss of $30M).

Decision Node

Chance Node

End of Branch

Strong Demand

($200M)

Weak Demand

($90M)

Strong Demand

($120M)

Weak Demand

($60M)

Build New Plant

(Invest $120M)

Upgrade Plant

(Invest $50M)

436 Part 1 - Guide

 Influence diagrams. Inﬂuence diagrams are graphical aids to decision making under uncertainty. An inﬂuence

diagram represents a project or situation within the project as a set of entities, outcomes, and inﬂuences, together

with the relationships and effects between them. Where an element in the inﬂuence diagram is uncertain as a

result of the existence of individual project risks or other sources of uncertainty, this can be represented in the

inﬂuence diagram using ranges or probability distributions. The inﬂuence diagram is then evaluated using a

simulation technique, such as Monte Carlo analysis, to indicate which elements have the greatest inﬂuence

on key outcomes. Outputs from an inﬂuence diagram are similar to other quantitative risk analysis methods,

including S-curves and tornado diagrams.

11.4.3 PERFORM QUANTITATIVE RISK ANALYSIS: OUTPUTS

11.4.3.1 PROJECT DOCUMENTS UPDATES

Project documents that can be considered as outputs for this process include but are not limited to the risk report

described in Section 11.2.3.2. The risk report will be updated to reﬂect the results of the quantitative risk analysis. This

will typically include:

 Assessment of overall project risk exposure. Overall project risk is reﬂected in two key measures:

 Chances of project success, indicated by the probability that the project will achieve its key objectives (e.g.,

required end date or interim milestones, required cost target, etc.) given the identiﬁed individual project risks

and other sources of uncertainty; and

 Degree of inherent variability remaining within the project at the time the analysis was conducted, indicated

by the range of possible project outcomes.

 Detailed probabilistic analysis of the project. Key outputs from the quantitative risk analysis are presented,

such as S-curves, tornado diagrams, and criticality analysis, together with a narrative interpretation of the results.

Possible detailed results of a quantitative risk analysis may include:

 Amount of contingency reserve needed to provide a speciﬁed level of conﬁdence;

 Identiﬁcation of individual project risks or other sources of uncertainty that have the greatest effect on the

project critical path; and

 Major drivers of overall project risk, with the greatest inﬂuence on uncertainty in project outcomes.

 Prioritized list of individual project risks. This list includes those individual project risks that pose the greatest

threat or present the greatest opportunity to the project, as indicated by sensitivity analysis.

 Trends in quantitative risk analysis results. As the analysis is repeated at different times during the project life

cycle, trends may become apparent that inform the planning of risk responses.

 Recommended risk responses. The risk report may present suggested responses to the level of overall

project risk exposure or key individual project risks, based on the results of the quantitative risk analysis. These

recommendations will form inputs to the Plan Risk Responses process.

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437

11.5 PLAN RISK RESPONSES

Plan Risk Responses is the process of developing options, selecting strategies, and agreeing on actions to address

overall project risk exposure, as well as to treat individual project risks. The key beneﬁt of this process is that it identiﬁes

appropriate ways to address overall project risk and individual project risks. This process also allocates resources

and inserts activities into project documents and the project management plan as needed. This process is performed

throughout the project. The inputs, tools and techniques, and outputs of the process are depicted in Figure 11-16.

Figure 11-17 depicts the data ﬂow diagram for the process.

Figure 11-16. Plan Risk Responses: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

.1 Expert judgment

.2 Data gathering

• Interviews

.3 Interpersonal and team skills

• Facilitation

.4 Strategies for threats

.5 Strategies for opportunities

.6 Contingent response

strategies

.7 Strategies for overall project

risk

.8 Data analysis

• Alternatives analysis

• Cost-benefit analysis

.9 Decision making

• Multicriteria decision

analysis

.1 Project management plan

• Resource management plan

• Risk management plan

• Cost baseline

.2 Project documents

• Lessons learned register

• Project schedule

• Project team assignments

• Resource calendars

• Risk register

• Risk report

• Stakeholder register

.3 Enterprise environmental

factors

.4 Organizational process assets

.1 Change requests

.2 Project management plan

updates

• Schedule management plan

• Cost management plan

• Quality management plan

• Resource management plan

• Procurement management

plan

• Scope baseline

• Schedule baseline

• Cost baseline

.3 Project documents updates

• Assumption log

• Cost forecasts

• Lessons learned register

• Project schedule

• Project team assignments

• Risk register

• Risk report

Plan Risk Responses

438 Part 1 - Guide

• Project

charter

11.5

Plan Risk

Responses

Enterprise/

Organization

4.6

Perform

Integrated

Change Control

Project documents updates

• Assumption log

• Cost forecasts

• Lessons learned register

• Project schedule

• Project team assignments

• Risk register

• Risk report

• Change requests

Project management

plan updates

• Schedule management plan

• Cost management plan

• Quality management plan

• Resource management plan

• Procurement management plan

• Scope baseline

• Schedule baseline

• Cost baseline

Project management plan

• Resource management plan

• Risk management plan

• Cost baseline

Project documents

• Lessons learned register

• Project schedule

• Resource breakdown structure

• Resource calendars

• Risk register

• Risk report

• Stakeholder register

• Enterprise environmental factors

• Organizational process assets

Project

Management

Plan

Project

Management

Plan

Project

Documents

Project

Documents

Figure 11-17. Plan Risk Responses: Data Flow Diagram

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439

Effective and appropriate risk responses can minimize individual threats, maximize individual opportunities, and

reduce overall project risk exposure. Unsuitable risk responses can have the converse effect. Once risks have been

identiﬁed, analyzed, and prioritized, plans should be developed by the nominated risk owner for addressing every

individual project risk the project team considers to be sufﬁciently important, either because of the threat it poses to the

project objectives or the opportunity it offers. The project manager should also consider how to respond appropriately to

the current level of overall project risk.

Risk responses should be appropriate for the signiﬁcance of the risk, cost-effective in meeting the challenge, realistic

within the project context, agreed upon by all parties involved, and owned by a responsible person. Selecting the

optimal risk response from several options is often required. The strategy or mix of strategies most likely to be effective

should be selected for each risk. Structured decision-making techniques may be used to choose the most appropriate

response. For large or complex projects, it may be appropriate to use a mathematical optimization model or real options

analysis as a basis for a more robust economic analysis of alternative risk response strategies.

Speciﬁc actions are developed to implement the agreed-upon risk response strategy, including primary and backup

strategies, as necessary. A contingency plan (or fallback plan) can be developed for implementation if the selected

strategy turns out not to be fully effective or if an accepted risk occurs. Secondary risks should also be identiﬁed.

Secondary risks are risks that arise as a direct result of implementing a risk response. A contingency reserve is often

allocated for time or cost. If developed, it may include identiﬁcation of the conditions that trigger its use.

11.5.1 PLAN RISK RESPONSES: INPUTS

11.5.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Resource management plan. Described in Section 9.1.3.1. The resource management plan is used to help

determine how resources allocated to agreed-upon risk responses will be coordinated with other project resources.

 Risk management plan. Described in Section 11.1.3.1. Risk management roles and responsibilities and risk

thresholds are used in this process.

 Cost baseline. Described in Section 7.3.3.1. The cost baseline has information on the contingency fund that is

allocated to respond to risks.

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11.5.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Lessons learned register. Described in Section 4.4.3.1. Lessons learned about effective risk responses used in

earlier phases of the project are reviewed to determine if similar responses might be useful during the remainder

of the project.

 Project schedule. Described in Section 6.5.3.2. The schedule is used to determine how agreed-upon risk

responses will be scheduled alongside other project activities.

 Project team assignments. Described in Section 9.3.3.2. Project team assignments can show the resources

that can be allocated to agreed-upon risk responses.

 Resource calendars. Described in Section 9.2.1.2. Resource calendars identify when potential resources are

available to be allocated to agreed-upon risk responses.

 Risk register. Described in Section 11.2.3.1. The risk register contains details of individual project risks that

have been identiﬁed and prioritized, and for which risk responses are required. The priority level for each risk

can help to guide the selection of appropriate risk responses. For example, high-priority threats or opportunities

may require priority action and highly proactive response strategies. Threats and opportunities in the low-priority

zone may not require proactive management action beyond being placed in the risk register as part of the watch

list or adding a contingency reserve.

The risk register identiﬁes the nominated risk owner for each risk. It may also contain preliminary risk responses

identiﬁed earlier in the Project Risk Management process. The risk register may provide other data on identiﬁed

risks that can assist in planning risk responses, including root causes, risk triggers and warning signs, risks

requiring responses in the near term, and risks where a need for additional analysis has been identiﬁed.

 Risk report. Described in Section 11.2.3.2. The risk report presents the current level of overall risk exposure of

the project that will inform selection of the risk response strategy. The risk report may also list individual project

risks in priority order and provide additional analysis of the distribution of individual project risks that may inform

risk response selection.

 Stakeholder register. Described in Section 13.1.3.1. The stakeholder register identiﬁes potential owners for

risk responses.

441

11.5.1.3 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Plan Risk Responses process include but are not limited

to the risk appetite and thresholds of key stakeholders.

11.5.1.4 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Plan Risk Responses process include but are not limited to:

 Templates for the risk management plan, risk register, and risk report;

 Historical databases; and

 Lessons learned repositories from similar projects.

11.5.2 PLAN RISK RESPONSES: TOOLS AND TECHNIQUES

11.5.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge

in the following topics:

 Threat response strategies,

 Opportunity response strategies,

 Contingent response strategies, and

 Overall project risk response strategies.

Expert input may be sought from individuals with particular subject matter expertise relevant to a speciﬁc individual

project risk, for example, where specialist technical knowledge is required.

442 Part 1 - Guide

11.5.2.2 DATA GATHERING

Data-gathering techniques that can be used for this process include but are not limited to interviews (see

Section 5.2.2.2). Development of responses to individual project risks and overall project risk may be undertaken

during structured or semi-structured interviews (see Section 5.2.2.2) with risk owners. Other stakeholders may

also be interviewed if necessary. The interviewer should promote an environment of trust and confidentiality in the

interview setting to encourage honest and unbiased decisions.

11.5.2.3 INTERPERSONAL AND TEAM SKILLS

Interpersonal and team skills that can be used for this process includes but are not limited to facilitation (see

Section 4.1.2.3). The use of facilitation improves the effectiveness of developing responses to individual project

risks and overall project risk. A skilled facilitator can help risk owners understand the risk, identify and compare

alternative possible risk response strategies, choose an appropriate response strategy, and identify and overcome

sources of bias.

11.5.2.4 STRATEGIES FOR THREATS

Five alternative strategies may be considered for dealing with threats, as follows:

 Escalate. Escalation is appropriate when the project team or the project sponsor agrees that a threat is outside

the scope of the project or that the proposed response would exceed the project manager’s authority. Escalated

risks are managed at the program level, portfolio level, or other relevant part of the organization, and not on the

project level. The project manager determines who should be notiﬁed about the threat and communicates the

details to that person or part of the organization. It is important that ownership of escalated threats is accepted

by the relevant party in the organization. Threats are usually escalated to the level that matches the objectives

that would be affected if the threat occurred. Escalated threats are not monitored further by the project team after

escalation, although they may be recorded in the risk register for information.

443

 Avoid. Risk avoidance is when the project team acts to eliminate the threat or protect the project from its

impact. It may be appropriate for high-priority threats with a high probability of occurrence and a large negative

impact. Avoidance may involve changing some aspect of the project management plan or changing the objective

that is in jeopardy in order to eliminate the threat entirely, reducing its probability of occurrence to zero. The

risk owner may also take action to isolate the project objectives from the risk’s impact if it were to occur.

Examples of avoidance actions may include removing the cause of a threat, extending the schedule, changing the

project strategy, or reducing scope. Some risks can be avoided by clarifying requirements, obtaining information,

improving communication, or acquiring expertise.

 Transfer. Transfer involves shifting ownership of a threat to a third party to manage the risk and to bear the

impact if the threat occurs. Risk transfer often involves payment of a risk premium to the party taking on the

threat. Transfer can be achieved by a range of actions, which include but are not limited to the use of insurance,

performance bonds, warranties, guarantees, etc. Agreements may be used to transfer ownership and liability for

speciﬁed risks to another party.

 Mitigate. In risk mitigation, action is taken to reduce the probability of occurrence and/or impact of a threat. Early

mitigation action is often more effective than trying to repair the damage after the threat has occurred. Adopting

less complex processes, conducting more tests, or choosing a more stable seller are examples of mitigation

actions. Mitigation may involve prototype development (see Section 5.2.2.8) to reduce the risk of scaling up from

a bench-scale model of a process or product. Where it is not possible to reduce probability, a mitigation response

might reduce the impact by targeting factors that drive the severity. For example, designing redundancy into a

system may reduce the impact from a failure of the original component.

 Accept. Risk acceptance acknowledges the existence of a threat, but no proactive action is taken. This strategy

may be appropriate for low-priority threats, and it may also be adopted where it is not possible or cost-effective

to address a threat in any other way. Acceptance can be either active or passive. The most common active

acceptance strategy is to establish a contingency reserve, including amounts of time, money, or resources to

handle the threat if it occurs. Passive acceptance involves no proactive action apart from periodic review of the

threat to ensure that it does not change signiﬁcantly.

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11.5.2.5 STRATEGIES FOR OPPORTUNITIES

Five alternative strategies may be considered for dealing with opportunities, as follows:

 Escalate. This risk response strategy is appropriate when the project team or the project sponsor agrees that

an opportunity is outside the scope of the project or that the proposed response would exceed the project

manager’s authority. Escalated opportunities are managed at the program level, portfolio level, or other relevant

part of the organization, and not on the project level. The project manager determines who should be notiﬁed

about the opportunity and communicates the details to that person or part of the organization. It is important

that ownership of escalated opportunities is accepted by the relevant party in the organization. Opportunities

are usually escalated to the level that matches the objectives that would be affected if the opportunity occurred.

Escalated opportunities are not monitored further by the project team after escalation, although they may be

recorded in the risk register for information.

 Exploit. The exploit strategy may be selected for high-priority opportunities where the organization wants to

ensure that the opportunity is realized. This strategy seeks to capture the beneﬁt associated with a particular

opportunity by ensuring that it deﬁnitely happens, increasing the probability of occurrence to 100%. Examples of

exploiting responses may include assigning an organization’s most talented resources to the project to reduce

the time to completion, or using new technologies or technology upgrades to reduce cost and duration.

 Share. Sharing involves transferring ownership of an opportunity to a third party so that it shares some of the

beneﬁt if the opportunity occurs. It is important to select the new owner of a shared opportunity carefully so they

are best able to capture the opportunity for the beneﬁt of the project. Risk sharing often involves payment of a

risk premium to the party taking on the opportunity. Examples of sharing actions include forming risk-sharing

partnerships, teams, special-purpose companies, or joint ventures.

 Enhance. The enhance strategy is used to increase the probability and/or impact of an opportunity. Early

enhancement action is often more effective than trying to improve the beneﬁt after the opportunity has occurred.

The probability of occurrence of an opportunity may be increased by focusing attention on its causes. Where it

is not possible to increase probability, an enhancement response might increase the impact by targeting factors

that drive the size of the potential beneﬁt. Examples of enhancing opportunities include adding more resources

to an activity to ﬁnish early.

 Accept. Accepting an opportunity acknowledges its existence but no proactive action is taken. This strategy may

be appropriate for low-priority opportunities, and it may also be adopted where it is not possible or cost-effective

to address an opportunity in any other way. Acceptance can be either active or passive. The most common active

acceptance strategy is to establish a contingency reserve, including amounts of time, money, or resources to take

advantage of the opportunity if it occurs. Passive acceptance involves no proactive action apart from periodic

review of the opportunity to ensure that it does not change signiﬁcantly.

445

11.5.2.6 CONTINGENT RESPONSE STRATEGIES

Some responses are designed for use only if certain events occur. For some risks, it is appropriate for the project

team to make a response plan that will only be executed under certain predeﬁned conditions, if it is believed that

there will be sufﬁcient warning to implement the plan. Events that trigger the contingency response, such as missing

intermediate milestones or gaining higher priority with a seller, should be deﬁned and tracked. Risk responses

identiﬁed using this technique are often called contingency plans or fallback plans and include identiﬁed triggering

events that set the plans in effect.

11.5.2.7 STRATEGIES FOR OVERALL PROJECT RISK

Risk responses should be planned and implemented not only for individual project risks but also to address overall

project risk. The same risk response strategies that are used to deal with individual project risks can also be applied to

overall project risk:

 Avoid. Where the level of overall project risk is signiﬁcantly negative and outside the agreed-upon risk

thresholds for the project, an avoid strategy may be adopted. This involves taking focused action to reduce

the negative effect of uncertainty on the project as a whole and bring the project back within the thresholds.

An example of avoidance at the overall project level would include removal of high-risk elements of scope

from the project. Where it is not possible to bring the project back within the thresholds, the project may be

canceled. This represents the most extreme degree of risk avoidance and it should be used only if the overall

level of threat is, and will remain, unacceptable.

 Exploit. Where the level of overall project risk is signiﬁcantly positive and outside the agreed-upon risk thresholds

for the project, an exploit strategy may be adopted. This involves taking focused action to capture the positive

effect of uncertainty on the project as a whole. An example of exploiting at the overall project level would include

addition of high-beneﬁt elements of scope to the project to add value or beneﬁts to stakeholders. Alternatively

the risk thresholds for the project may be modiﬁed with the agreement of key stakeholders in order to embrace

the opportunity.

 Transfer/share. If the level of overall project risk is high but the organization is unable to address it effectively,

a third party may be involved to manage the risk on behalf of the organization. Where overall project risk is

negative, a transfer strategy is required, which may involve payment of a risk premium. In the case of high

positive overall project risk, ownership may be shared in order to reap the associated beneﬁts. Examples of

both transfer and share strategies for overall project risk include but are not limited to setting up a collaborative

business structure in which the buyer and the seller share the overall project risk, launching a joint venture or

special-purpose company, or subcontracting key elements of the project.

446 Part 1 - Guide

 Mitigate/enhance. These strategies involve changing the level of overall project risk to optimize the chances

of achieving the project’s objectives. The mitigation strategy is used where overall project risk is negative, and

enhancement applies when it is positive. Examples of mitigation or enhancement strategies include replanning

the project, changing the scope and boundaries of the project, modifying project priority, changing resource

allocations, adjusting delivery times, etc.

 Accept. Where no proactive risk response strategy is possible to address overall project risk, the organization

may choose to continue with the project as currently deﬁned, even if overall project risk is outside the agreed-

upon thresholds. Acceptance can be either active or passive. The most common active acceptance strategy is

to establish an overall contingency reserve for the project, including amounts of time, money, or resources to be

used if the project exceeds its thresholds. Passive acceptance involves no proactive action apart from periodic

review of the level of overall project risk to ensure that it does not change signiﬁcantly.

11.5.2.8 DATA ANALYSIS

A number of alternative risk response strategies may be considered. Data analysis techniques that can be used to

select a preferred risk response strategy include but are not limited to:

 Alternatives analysis. A simple comparison of the characteristics and requirements of alternative risk response

options can lead to a decision on which response is most appropriate.

 Cost-benefit analysis. If the impact of an individual project risk can be quantiﬁed in monetary terms, then the

cost-effectiveness of alternative risk response strategies can be determined using cost-beneﬁt analysis (see

Section 8.1.2.3). The ratio of (change in impact level) divided by (implementation cost) gives the cost effectiveness

of the response strategy, with a higher ratio indicating a more effective response.

11.5.2.9 DECISION MAKING

Decision-making techniques that can be used to select a risk response strategy include but are not limited to

multicriteria decision analysis (described in Section 8.1.2.4). One or more risk response strategies may be under

consideration. Decision-making techniques can help prioritize risk response strategies. Multicriteria decision analysis

uses a decision matrix to provide a systematic approach for establishing key decision criteria, evaluating and ranking

alternatives, and selecting a preferred option. Criteria for risk response selection may include but are not limited to

cost of response, likely effectiveness of response in changing probability and/or impact, resource availability, timing

constraints (urgency, proximity, and dormancy), level of impact if the risk occurs, effect of response on related risks,

introduction of secondary risks, etc. Different strategies may be selected later in the project if the original choice proves

to be ineffective.

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447

11.5.3 PLAN RISK RESPONSES: OUTPUTS

11.5.3.1 CHANGE REQUESTS

Described in Section 4.3.3.4. Planned risk responses may result in a change request to the cost and schedule

baselines or other components of the project management plan. Change requests are processed for review and

disposition through the Perform Integrated Change Control process (Section 4.6).

11.5.3.2 PROJECT MANAGEMENT PLAN UPDATES

Any change to the project management plan goes through the organization’s change control process via a change

request. Components that may require a change request for the project management plan include but are not limited to:

 Schedule management plan. Described in Section 6.1.3.1. Changes to the schedule management plan, such as

changes to resource loading and leveling, or updates to the schedule strategy, are incorporated.

 Cost management plan. Described in Section 7.1.3.1. Changes to the cost management plan, such as changes

to cost accounting, tracking, and reports, as well as updates to the budget strategy and how contingency reserves

are consumed, are incorporated.

 Quality management plan. Described in Section 8.1.3.1. Changes to the quality management plan, such as

changes to approaches for meeting requirements, quality management approaches, or quality control processes,

are incorporated.

 Resource management plan. Described in Section 9.1.3.1. Changes to the resource management plan, such as

changes to resource allocation, as well as updates to the resource strategy, are incorporated.

 Procurement management plan. Described in Section 12.1.3.1. Changes to the procurement management

plan, such as alterations in the make-or-buy decision or contract type(s), are incorporated.

 Scope baseline. Described in Section 5.4.3.1. Changes in the scope baseline are incorporated in response to

approved changes in scope that may arise from agreed-upon risk responses.

 Schedule baseline. Described in Section 6.5.3.1. Changes in the schedule baseline are incorporated in response

to approved changes in schedule estimates that may arise from agreed-upon risk responses.

 Cost baseline. Described in Section 7.3.3.1. Changes in the cost baseline are incorporated in response to

approved changes in cost estimates that may arise from agreed-upon risk responses.

448 Part 1 - Guide

11.5.3.3 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Assumption log. Described in Section 4.1.3.2. During the Plan Risk Responses process, new assumptions

may be made, new constraints may be identiﬁed, and existing assumptions or constraints may be revisited and

changed. The assumption log should be updated with this new information.

 Cost forecasts. Described in Section 7.4.3.2. Cost forecasts may change as a result of planned risk responses.

 Lessons learned register. Described in Section 4.4.3.1. The lessons learned register is updated with information

about risk responses that may be useful for future phases of the project or future projects.

 Project schedule. Described in Section 6.5.3.2. Activities relating to agreed-upon risk responses may be added

to the project schedule.

 Project team assignments. Described in Section 9.3.3.2. Once the responses are conﬁrmed, the necessary

resources should be allocated to each action associated with a risk response plan. These resources include suitably

qualiﬁed and experienced personnel to execute the agreed-upon action (usually within the project team) a speciﬁc

budget and time allowance for the action, and any required technical resources to complete the action.

 Risk register. Described in Section 11.2.3.1. The risk register is updated when appropriate risk responses are

chosen and agreed upon. Updates to the risk register may include but are not limited to:

 Agreed-upon response strategies;

 Speciﬁc actions to implement the chosen response strategy;

 Trigger conditions, symptoms, and warning signs of a risk occurrence;

 Budget and schedule activities required to implement the chosen responses;

 Contingency plans and risk triggers that call for their execution;

 Fallback plans for use when a risk that has occurred and the primary response proves to be inadequate;

 Residual risks that are expected to remain after planned responses have been taken, as well as those that

have been deliberately accepted; and

 Secondary risks that arise as a direct outcome of implementing a risk response.

 Risk report. Described in Section 11.2.3.2. The risk report may be updated to present agreed-upon responses

to the current overall project risk exposure and high-priority risks, together with the expected changes that may

be expected as a result of implementing these responses.

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449

11.6 IMPLEMENT RISK RESPONSES

Implement Risk Responses is the process of implementing agreed-upon risk response plans. The key beneﬁt of

this process is that it ensures that agreed-upon risk responses are executed as planned in order to address overall

project risk exposure, minimize individual project threats, and maximize individual project opportunities. This process is

performed throughout the project. The inputs, tools and techniques, and outputs of the process are depicted in Figure

11-18. Figure 11-19 depicts the data ﬂow diagram for the process.

Figure 11-18. Implement Risk Responses: Inputs, Tools & Techniques, and Outputs

Figure 11-19. Implement Risk Responses: Data Flow Diagram

Tools & TechniquesInputs Outputs

.1 Expert judgment

.2 Interpersonal and team skills

• Influencing

.3 Project management

information system

.1 Project management plan

• Risk management plan

.2 Project documents

• Lessons learned register

• Risk register

• Risk report

.3 Organizational process assets

.1 Change requests

.2 Project documents updates

• Issue log

• Lessons learned register

• Project team assignments

• Risk register

• Risk report

Implement Risk Responses

• Project

charter

11.6

Implement

Risk Responses

Enterprise/

Organization

4.6

Perform

Integrated

Change Control

Project documents updates

• Lessons learned register

• Issue log

• Project team assignments

• Risk register

• Risk report

• Change requests

Project management plan

• Risk management plan

Project documents

• Lessons learned register

• Risk register

• Risk report

• Organizational process assets

Project

Management

Plan

Project

Documents

Project

Documents

450 Part 1 - Guide

Proper attention to the Implement Risk Responses process will ensure that agreed-upon risk responses are actually

executed. A common problem with Project Risk Management is that project teams spend effort in identifying and

analyzing risks and developing risk responses, then risk responses are agreed upon and documented in the risk register

and risk report, but no action is taken to manage the risk.

Only if risk owners give the required level of effort to implementing the agreed-upon responses will the overall risk

exposure of the project and individual threats and opportunities be managed proactively.

11.6.1 IMPLEMENT RISK RESPONSES: INPUTS

11.6.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to the risk

management plan. Described in Section 11.1.3.1, the risk management plan lists the roles and responsibilities of

project team members and other stakeholders for risk management. This information is used when allocating owners

for agreed-upon risk responses. The risk management plan also deﬁnes the level of detail for the risk management

methodology for the project. It also speciﬁes risk thresholds for the project based on the risk appetite of key stakeholders,

which deﬁne the acceptable target that the implementation of risk responses is required to achieve.

11.6.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Lessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project with regard

to implementing risk responses can be applied to later phases in the project to improve the effectiveness

of this process.

 Risk register. Described in Section 11.2.3.1. The risk register records the agreed-upon risk responses for each

individual risk and the nominated owners for each response plan.

 Risk report. Described in Section 11.2.3.2. The risk report includes an assessment of the current overall project

risk exposure, as well as the agreed-upon risk response strategy. It also describes the major individual project

risks with their planned responses.

11.6.1.3 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Implement Risk Responses process include but are not

limited to the lessons learned repository from similar completed projects that indicate the effectiveness of particular

risk responses.

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451

11.6.2 IMPLEMENT RISK RESPONSES: TOOLS AND TECHNIQUES

11.6.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized

knowledge to validate or modify risk responses if necessary, and decide how to implement them in the most

efﬁcient and effective manner.

11.6.2.2 INTERPERSONAL AND TEAM SKILLS

Interpersonal and team skills that can be used for this process include but are not limited to inﬂuencing. Some risk

response actions may be owned by people outside the immediate project team or who have other competing demands.

The project manager or person responsible for facilitating the risk process may need to exercise inﬂuencing (see

Section 9.5.2.1) to encourage nominated risk owners to take necessary action where required.

11.6.2.3 PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS)

Described in Section 4.3.2.2. Project management information systems can include schedule, resource, and cost

software to ensure that agreed-upon risk response plans and their associated activities are integrated into the project

alongside other project activities.

11.6.3 IMPLEMENT RISK RESPONSES: OUTPUTS

11.6.3.1 CHANGE REQUESTS

Described in Section 4.3.3.4. Implementation of risk responses may result in a change request to the cost and

schedule baselines or other components of the project management plan. Change requests are processed for review

and disposition through the Perform Integrated Change Control process (Section 4.6).

452 Part 1 - Guide

11.6.3.2 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Issue log. Described in Section 4.3.3.3. Where issues are identiﬁed as part of the Implement Risk Responses

process, they are recorded in the issue log.

 Lessons learned register. Described in Section 4.4.3.1. The lessons learned register is updated with information

on challenges encountered when implementing risk responses and how they could have been avoided, as well

as approaches that worked well for implementing risk responses.

 Project team assignments. Described in Section 9.3.3.2. Once the risk responses are conﬁrmed, the necessary

resources should be allocated to each action associated with a risk response plan. These resources include

suitably qualiﬁed and experienced personnel to execute the agreed-upon action (usually within the project team),

a speciﬁc budget and time allowance for the action, and any required technical resources to complete the action.

 Risk register. Described in Section 11.2.3.1. The risk register may be updated to reﬂect any changes to the

previously agreed-upon risk responses for individual project risks that are subsequently made as a result of the

Implement Risk Responses process.

 Risk report. Described in Section 11.2.3.2. The risk report may be updated to reﬂect any changes to the

previously agreed-upon risk response to overall project risk exposure that are subsequently made as a result of

the Implement Risk Responses process.

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453

11.7 MONITOR RISKS

Monitor Risks is the process of monitoring the implementation of agreed-upon risk response plans, tracking identiﬁed

risks, identifying and analyzing new risks, and evaluating risk process effectiveness throughout the project. The key

beneﬁt of this process is that it enables project decisions to be based on current information about overall project risk

exposure and individual project risks. This process is performed throughout the project. The inputs, tools and techniques,

and outputs of the process are depicted in Figure 11-20. Figure 11-21 depicts the data ﬂow diagram for the process.

Figure 11-20. Monitor Risks: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

.1 Data analysis

• Technical performance

analysis

• Reserve analysis

.2 Audits

.3 Meetings

.1 Project management plan

• Risk management plan

.2 Project documents

• Issue log

• Lessons learned register

• Risk register

• Risk report

.3 Work performance data

.4 Work performance reports

.1 Work performance

information

.2 Change requests

.3 Project management plan

updates

• Any component

.4 Project documents updates

• Assumption log

• Issue log

• Lessons learned register

• Risk register

• Risk report

.5 Organizational process assets

updates

Monitor Risks

454 Part 1 - Guide

• Project

charter

4.5

Monitor and

Control

Project Work

4.3

Direct and

Manage

Project Work

• Work performance data

• Work performance reports

• Change

requests

• Work

performance

information

Project management plan

• Risk management plan

Project documents

• Issue log

• Lessons learned register

• Risk register

• Risk report

Project

Management

Plan

Project

Documents

Project

Documents

4.5

Monitor and

Control

Project Work

4.6

Perform

Integrated

Change Control

11.7

Monitor

Risks

Project documents

updates

• Assumption log

• Issue log

• Lessons learned register

• Risk register

• Risk report

Project management

plan updates

• Any component

Project

Management

Plan

Enterprise/

Organization

• Organizational process

assets updates

Figure 11-21. Monitor Risks: Data Flow Diagram

In order to ensure that the project team and key stakeholders are aware of the current level of risk exposure, project

work should be continuously monitored for new, changing, and outdated individual project risks and for changes in

the level of overall project risk by applying the Monitor Risks process. The Monitor Risks process uses performance

information generated during project execution to determine if:

 Implemented risk responses are effective,

 Level of overall project risk has changed,

 Status of identiﬁed individual project risks has changed,

 New individual project risks have arisen,

 Risk management approach is still appropriate,

 Project assumptions are still valid,

 Risk management policies and procedures are being followed,

 Contingency reserves for cost or schedule require modiﬁcation, and

 Project strategy is still valid.

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11.7.1 MONITOR RISKS: INPUTS

11.7.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to the risk

management plan. Described in Section 11.3.1.1. The risk management plan provides guidance on how and when

risks should be reviewed, which policies and procedures should be followed, the roles and responsibilities in the

monitoring process, and reporting formats.

11.7.1.2 PROJECT DOCUMENTS

Project documents that should be considered as inputs for this process include but are not limited to:

 Issue log. Described in Section 4.3.3.3. The issue log is used to see if any of the open issues have been updated

and necessitate an update to the risk register.

 Lessons learned register. Described in Section 4.4.3.1. Risk-related lessons from earlier in the project can be

applied to later phases in the project.

 Risk register. Described in Section 11.2.3.1. The risk register has key inputs that include identiﬁed individual

project risks, risk owners, agreed-upon risk responses, and speciﬁc implementation actions. It may also provide

other details including control actions for assessing the effectiveness of response plans, symptoms and warning

signs of risk, residual and secondary risks, and a watch list of low-priority risks.

 Risk report. Described in Section 11.2.3.2. The risk report includes an assessment of the current overall project

risk exposure as well as the agreed-upon risk response strategy. It also describes the major individual risks with

planned responses and risk owners.

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11.7.1.3 WORK PERFORMANCE DATA

Described in Section 4.3.3.2. Work performance data contains data on project status such as risk responses that

have been implemented, risks that have occurred, risks that are active and those that have been closed out.

11.7.1.4 WORK PERFORMANCE REPORTS

Described in Section 4 5.3.1. Work performance reports provide information from performance measurements that

can be analyzed to provide project work performance information including variance analysis, earned value data, and

forecasting data. This information could be relevant when monitoring performance-related risks.

11.7.2 MONITOR RISKS: TOOLS AND TECHNIQUES

11.7.2.1 DATA ANALYSIS

Data analysis techniques that can be used for this process include but are not limited to:

 Technical performance analysis. Technical performance analysis compares technical accomplishments during

project execution to the schedule of technical achievement. It requires the deﬁnition of objective, quantiﬁable

measures of technical performance, which can be used to compare actual results against targets. Such technical

performance measures may include weight, transaction times, number of delivered defects, storage capacity,

etc. Deviation can indicate the potential impact of threats or opportunities.

 Reserve analysis. Described in Section 7.2.2.6. Throughout execution of the project, some individual project

risks may occur with positive or negative impacts on budget or schedule contingency reserves. Reserve analysis

compares the amount of the contingency reserves remaining to the amount of risk remaining at any time in the

project in order to determine if the remaining reserve is adequate. This may be communicated using various

graphical representations, including a burndown chart.

11.7.2.2 AUDITS

Described in Section 8.2.2.5. Risk audits are a type of audit that may be used to consider the effectiveness of the risk

management process. The project manager is responsible for ensuring that risk audits are performed at an appropriate

frequency, as deﬁned in the project’s risk management plan. Risk audits may be included during routine project review

meetings or may form part of a risk review meeting, or the team may choose to hold separate risk audit meetings. The

format for the risk audit and its objectives should be clearly deﬁned before the audit is conducted.

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457

11.7.2.3 MEETINGS

Meetings that can be used during this process include but are not limited to risk reviews. Risk reviews are scheduled

regularly and should examine and document the effectiveness of risk responses in dealing with overall project risk

and with identiﬁed individual project risks. Risk reviews may also result in identiﬁcation of new individual project risks,

(including secondary risks that arise from agreed-upon risk responses), reassessment of current risks, the closing of

risks that are outdated, issues that have arisen as the result of risks that have occurred, and identiﬁcation of lessons

to be learned for implementation in ongoing phases in the current project or in similar projects in the future. The risk

review may be conducted as part of a periodic project status meeting or a dedicated risk review meeting may be held,

as speciﬁed in the risk management plan.

11.7.3 MONITOR RISKS: OUTPUTS

11.7.3.1 WORK PERFORMANCE INFORMATION

Described in Section 4.5.1.3. Work performance information includes information on how project risk management

is performing by comparing the individual risks that have occurred with the expectation of how they would occur. This

information indicates the effectiveness of the response planning and response implementation processes.

11.7.3.2 CHANGE REQUESTS

Described in Section 4.3.3.4. The Monitor Risks process may result in a change request to the cost and schedule

baselines or other components of the project management plan. Change requests are processed for review and

disposition through the Perform Integrated Change Control process (Section 4.6).

Change requests can include recommended corrective and preventive actions to address the current level of overall

project risk or to address individual project risks.

11.7.3.3 PROJECT MANAGEMENT PLAN UPDATES

Any change to the project management plan goes through the organization’s change control process via a change

request. This may affect any component of the project management plan.

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11.7.3.4 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Assumption log. Described in Section 4.1.3.2. During the Monitor Risks process, new assumptions may be

made, new constraints may be identiﬁed, and existing assumptions or constraints may be revisited and changed.

The assumption log is updated with this new information.

 Issue log. Described in Section 4.3.3.3. Where issues are identiﬁed as part of the Monitor Risks process, these

are recorded in the issue log.

 Lessons learned register. Described in Section 4.4.3.1. The lessons learned register is updated with any

risk-related lessons learned during risk reviews so these can be used on later phases of the project or in

future projects.

 Risk register. Described in Section 11.2.3.1. The risk register is updated with information on individual project

risks generated during the Monitor Risks process. This may include adding new risks, updating outdated risks or

risks that were realized, updating risk responses, and so forth.

 Risk report. Described in Section 11.2.3.2. As new information becomes available through the Monitor Risks

process, the risk report is updated to reﬂect the current status of major individual project risks and the current

level of overall project risk. The risk report may also include details of the top individual project risks, agreed-

upon responses and owners, and conclusions and recommendations. It may also include conclusions from risk

audits on the effectiveness of the risk management process.

11.7.3.5 ORGANIZATIONAL PROCESS ASSETS UPDATES

Organizational process assets that are updated as a result of the Monitor Risks process include but are not limited to:

 Templates for the risk management plan, risk register, and risk report; and

 Risk breakdown structure.

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PROJECT PROCUREMENT MANAGEMENT

Project Procurement Management includes the processes necessary to purchase or acquire products, services,

or results needed from outside the project team. Project Procurement Management includes the management and

control processes required to develop and administer agreements such as contracts, purchase orders, memoranda of

agreements (MOAs), or internal service level agreements (SLAs). The personnel authorized to procure the goods and/or

services required for the project may be members of the project team, management, or part of the organization’s

purchasing department if applicable.

Project Procurement Management processes include the following:

12.1 Plan Procurement Management—The process of documenting project procurement decisions, specifying the

approach, and identifying potential sellers.

12.2 Conduct Procurements—The process of obtaining seller responses, selecting a seller, and awarding a contract.

12.3 Control Procurements—The process of managing procurement relationships, monitoring contract performance,

making changes and corrections as appropriate, and closing out contracts.

The procurement processes are presented as discrete processes with deﬁned interfaces. In practice, procurement

processes can be complex and can interact with each other and with processes in other Knowledge Areas in ways

that cannot be completely detailed in the PMBOK® Guide. The processes described in this section are written from the

viewpoint where goods or services are obtained from outside of the project.

Figure 12-1 provides an overview of the Project Procurement Management processes. The Project Procurement

Management processes are presented as discrete processes with deﬁned interfaces while, in practice, they overlap and

interact in ways that cannot be completely detailed in the PMBOK® Guide.

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Figure 12-1 Project Procurement Management Overview

KEY CONCEPTS FOR PROJECT PROCUREMENT MANAGEMENT

More than most other project management processes, there can be signiﬁcant legal obligations and penalties tied to

the procurement process. The project manager does not have to be a trained expert in procurement management laws

and regulations but should be familiar enough with the procurement process to make intelligent decisions regarding

contracts and contractual relationships. The project manager is typically not authorized to sign legal agreements binding

the organization; this is reserved for those who have the authority to do so.

The Project Procurement Management processes involve agreements that describe the relationship between two

parties—a buyer and a seller. Agreements can be as simple as the purchase of a deﬁned quantity of labor hours at

a speciﬁed labor rate, or they can be as complex as multiyear international construction contracts. The contracting

approach and the contract itself should reﬂect the simplicity or complexity of the deliverables or required effort and

should be written in a manner that complies with local, national, and international laws regarding contracts.

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Procurement documentation

.4 Seller proposals

.5 Enterprise environmental

factors

.6 Organizational process assets

.2 Tools & Techniques

.1 Expert judgment

.2 Advertising

.3 Bidder conferences

.4 Data analysis

.5 Interpersonal and team skills

.3 Outputs

.1 Selected sellers

.2 Agreements

.3 Change requests

.4 Project management plan

updates

.5 Project documents updates

.6 Organizational process assets

updates

.1 Inputs

.1 Project charter

.2 Business documents

.3 Project management plan

.4 Project documents

.5 Enterprise environmental

factors

.6 Organizational process assets

.2 Tools & Techniques

.1 Expert judgment

.2 Data gathering

.3 Data analysis

.4 Source selection analysis

.5 Meetings

.3 Outputs

.1 Procurement management

plan

.2 Procurement strategy

.3 Bid documents

.4 Procurement statement of

work

.5 Source selection criteria

.6 Make-or-buy decisions

.7 Independent cost estimates

.8 Change requests

.9 Project documents updates

.10 Organizational process assets

updates

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Agreements

.4 Procurement documentation

.5 Approved change requests

.6 Work performance data

.7 Enterprise environmental

factors

.8 Organizational process assets

.2 Tools & Techniques

.1 Expert judgment

.2 Claims administration

.3 Data analysis

.4 Inspection

.5 Audits

.3 Outputs

.1 Closed procurements

.2 Work performance information

.3 Procurement documentation

updates

.4 Change requests

.5 Project management plan

updates

.6 Project documents updates

.7 Organizational process assets

updates

Project Procurement

Management Overview

12.2 Conduct

Procurements

12.1 Plan Procurement

Management

12.3 Control

Procurements

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461

A contract should clearly state the deliverables and results expected, including any knowledge transfer from the seller

to the buyer. Anything not in the contract cannot be legally enforced. When working internationally, project managers

should keep in mind the effect that culture and local law have upon contracts and their enforceability, no matter how

clearly a contract is written.

A purchasing contract includes terms and conditions and may incorporate other buyer speciﬁcs as to what the seller

is to perform or provide. It is the project management team’s responsibility to make certain that all procurements meet

the speciﬁc needs of the project while working with the procurement ofﬁce to ensure organizational procurement

policies are followed. Depending on the application area, an agreement can be a contract, an SLA, an understanding,

an MOA, or a purchase order.

Most organizations document policies and procedures speciﬁcally deﬁning procurement rules and specifying who

has authority to sign and administer such agreements on behalf of the organization. Across the world, organizations use

different names for departments or divisions that deal with procurement, such as purchasing, contracting, procurement,

or acquisitions; however, the responsibilities are likely to be similar.

Although all project documents may be subject to some form of review and approval, the legally binding nature of

a contract means it will be subjected to a more extensive approval process, often involving the legal department. In

all cases, the primary focus of the review and approval process is to ensure that the contract adequately describes

the products, services, or results that the seller is agreeing to provide, while being in compliance with the laws and

regulations regarding procurements. These sections are often separate appendices or annexes, allowing standardized

legal contract language to be used.

A complex project may involve managing multiple contracts simultaneously or in sequence. In such cases, each

contract life cycle may begin and end during any phase of the project life cycle. The buyer-seller relationship may exist

at many levels on any one project, and between organizations internal to and external to the acquiring organization.

Depending on the application area, the seller may be identiﬁed as a contractor, vendor, service provider, or supplier.

The buyer may be the owner of the ﬁnal product, a subcontractor, the acquiring organization, a service requestor, or the

purchaser. The seller can be viewed during the contract life cycle ﬁrst as a bidder, then as the selected source, and then

as the contracted supplier or vendor.

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The winning bidder may manage the work as a project. In such cases:

 The buyer becomes the customer to subcontractors, suppliers, and service providers and is therefore a key

project stakeholder from the seller’s perspective.

 The seller’s project management team may be concerned with all the processes involved in performing the work

or providing the services.

 Terms and conditions of the contract and the procurement statement of work (SOW) become key inputs to many

of the seller’s management processes. The contract can actually contain the inputs (e.g., major deliverables,

key milestones, cost objectives) or it can limit the project team’s options (for example, buyer approval of stafﬁng

decisions is often required on IT integration projects). The procurement SOW may have other names, such as the

technical statement of work.

 The seller itself may become a buyer of lower-tiered products, services, and materials from subcontractors

and suppliers.

In this section, it is assumed that the buyer of an item for the project is assigned to the project team and/or is part

of the larger organization. The seller is assumed to be providing services and/or materials to the project and is usually

outside the performing organization. For some projects, the seller role may be ﬁlled by a group or function that is part of

the performing organization but external to the project. For larger, more complex projects, the seller may become part

of an integrated project team after the contract is awarded.

For smaller organizations or startup companies and those without a purchasing, contracting, or procurement

department, the project manager may assume the purchasing authority role to negotiate and sign contracts directly

(decentralized purchasing). For more mature organizations, the actual procurement and contracting functions

will be carried out by a separate department with the speciﬁc role to purchase, negotiate, and sign contracts

(centralized purchasing).

In international contracting, the legal jurisdictions under which the contracts will be administered are clearly spelled

out in the contract. In most cases, the seller is an external contractor who is bound by a formal contractual relationship.

463

TRENDS AND EMERGING PRACTICES IN PROCUREMENT MANAGEMENT

There are a number of major trends in software tools, risk, processes, logistics, and technology with different

industries that can affect the success rate of projects. Trends and emerging practices for Project Procurement

Management include but are not limited to:

 Advances in tools. There has been signiﬁcant improvement in the development of tools to manage the

procurement and implementation phases of a project. Online tools for procurement now give the buyers a

single point where procurements can be advertised and provide sellers with a single source to ﬁnd procurement

documents and complete them directly online. In the construction/engineering/infrastructure ﬁeld, the increasing

use of the building information model (BIM) in software tools has been shown to save signiﬁcant amounts of time

and money on projects using it. This approach can substantially reduce construction claims, thereby reducing

both costs and schedule. Major companies and governments worldwide are beginning to mandate the use of

BIM on large projects.

 More advanced risk management. An increasing trend in risk management is to write contracts that accurately

allocate speciﬁc risks to those entities most capable of managing them. No contractor is capable of managing all

the possible major risks on a project. The buyer will be required to accept the risks that the contractors do not have

control over, such as changing corporate policies in the buying organization, changing regulatory requirements,

and other risks from outside the project. Contracts may specify that risk management be performed as part of

the contract.

 Changing contracting processes. There has been a signiﬁcant growth in megaprojects in the past several

years, particularly in the areas of infrastructure development and engineering projects. Multibillion-dollar projects

are now common. A large proportion of these involve international contracts with multiple contractors from many

countries and are inherently more risky than projects using only local contractors. Increasingly, the contractor

works closely with the client in the procurement process to take advantage of discounts through quantity

purchases or other special considerations. For these projects, the use of internationally recognized standard

contract forms is increasing in order to reduce problems and claims during execution.

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 Logistics and supply chain management. Because so many large engineering, construction infrastructure

projects are done through multiple international contractors, the management of the ﬂow of materials becomes

critical to successful completion. For long-lead items, both the manufacture of the items and their transportation

to the project site become schedule-drivers. In the IT ﬁeld, a long-lead item may require ordering 2 to 3 months

in advance. In complex construction projects, long-lead items may require ordering 1 to 2 years in advance or

longer. For these projects, long-lead items may be procured in advance of other procurement contracts to meet

the planned project completion date. It is possible to begin contracting for these long-lead materials, supplies,

or equipment before the ﬁnal design of the end product itself is completed based on the known requirements

identiﬁed in the top-level design. The management of the supply chain is an area of increasing emphasis by the

contractor’s project team. Not only are primary sources of supplies identiﬁed early in the project, but secondary,

back-up sources are also generally identiﬁed. Many countries around the world require international contractors

to purchase certain minimum percentages of material and supplies from local vendors.

 Technology and stakeholder relations. Publicly funded projects are under increasing scrutiny. A trend in

infrastructure and commercial construction projects is the use of technology including web cameras (webcams)

to improve stakeholder communications and relations. During construction, one or more webcams are installed

on the site, with periodic updates to a publicly available website. The progress on the project can be viewed on

the Internet by all stakeholders. Video data can also be stored, allowing analysis if a claim arises. Some projects

have discovered that the use of webcams minimizes disputes relating to the construction work on site, as the

webcam has recorded the events, so there should be no disagreement about the facts of the matter.

 Trial engagements. Not every seller is well suited for an organization’s environment. Therefore, some projects

will engage several candidate sellers for initial deliverables and work products on a paid basis before making the

full commitment to a larger portion of the project scope. This accelerates momentum by allowing the buyer to

evaluate potential partners, while simultaneously making progress on project work.

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465

TAILORING CONSIDERATIONS

Because each project is unique, the project manager may need to tailor the way that Project Procurement Management

processes are applied. Considerations for tailoring include but are not limited to:

 Complexity of procurement. Is there one main procurement or are there multiple procurements at different

times with different sellers that add to the complexity of the procurements?

 Physical location. Are the buyers and sellers in the same location, or reasonably close, or in different time zones,

countries, or continents?

 Governance and regulatory environment. Are local laws and regulations regarding procurement activities

integrated with the organization’s procurement policies? How does this affect contract auditing requirements?

 Availability of contractors. Are there available contractors who are capable of performing the work?

CONSIDERATIONS FOR AGILE/ADAPTIVE ENVIRONMENTS

In agile environments, speciﬁc sellers may be used to extend the team. This collaborative working relationship can

lead to a shared risk procurement model where both the buyer and the seller share in the risk and rewards associated

with a project.

Larger projects may use an adaptive approach for some deliverables and a more stable approach for other parts.

In these cases, a governing agreement such as a master services agreement (MSA) may be used for the overall

engagement, with the adaptive work being placed in an appendix or supplement. This allows changes to occur on the

adaptive scope without impacting the overall contract.

466 Part 1 - Guide

12.1 PLAN PROCUREMENT MANAGEMENT

Plan Procurement Management is the process of documenting project procurement decisions, specifying the

approach and identifying potential sellers. The key beneﬁt of this process is that it determines whether to acquire

goods and services from outside the project and, if so, what to acquire as well as how and when to acquire it. Goods

and services may be procured from other parts of the performing organization or from external sources. This process is

performed once or at predeﬁned points in the project. The inputs, tools and techniques, and outputs of this process are

depicted in Figure 12-2. Figure 12-3 depicts the data ﬂow diagram of the process.

Tools & TechniquesInputs Outputs

.1 Expert judgment

.2 Data gathering

• Market research

.3 Data analysis

• Make-or-buy analysis

.4 Source selection analysis

.5 Meetings

.1 Project charter

.2 Business documents

• Business case

• Benefits management plan

.3 Project management plan

• Scope management plan

• Quality management plan

• Resource management plan

• Scope baseline

.4 Project documents

• Milestone list

• Project team assignments

• Requirements

documentation

• Requirements traceability

matrix

• Resource requirements

• Risk register

• Stakeholder register

.5 Enterprise environmental

factors

.6 Organizational process assets

.1 Procurement management

plan

.2 Procurement strategy

.3 Bid documents

.4 Procurement statement of

work

.5 Source selection criteria

.6 Make-or-buy decisions

.7 Independent cost estimates

.8 Change requests

.9 Project documents updates

• Lessons learned register

• Milestone list

• Requirements

documentation

• Requirements traceability

matrix

• Risk register

• Stakeholder register

.10 Organizational process

assets updates

Plan Procurement Management

Figure 12-2. Plan Procurement Management: Inputs, Tools & Techniques, and Outputs

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467

4.6

Perform

Integrated

Change Control

• Enterprise environmental factors

• Organizational process assets

updates

Project

Management

Plan

Project

Documents

Procurement

Documentation

Business

Documents

Project

Documents

12.1

Plan

Procurement

Management

• Change requests

• Source selection

criteria

Project

Management

Plan

Project documents updates

• Lessons learned register

• Milestone list

• Requirements documentation

• Requirements traceability matrix

• Risk register

• Stakeholder register

• Procurement management plan

• Procurement strategy

• Procurement statement of work

• Bid documents

• Make-or-buy decisions

• Independent cost estimates

Project management plan

• Scope management plan

• Quality management plan

• Resource management plan

• Scope baseline

Business documents

• Business case

• Benefits management plan

Project documents

• Milestone list

• Project team assignments

• Requirements documentation

• Requirements traceability matrix

• Resource requirements

• Risk register

• Stakeholder register

4.1

Develop

Project Charter

• Project charter

Enterprise/

Organization

Enterprise/

Organization

Figure 12-3. Plan Procurement Management: Data Flow Diagram

468 Part 1 - Guide

Deﬁning roles and responsibilities related to procurement should be done early in the Plan Procurement Management

process. The project manager should ensure that the project team is staffed with procurement expertise at the level

required for the project. Participants in the procurement process may include personnel from the purchasing or

procurement department as well as personnel from the buying organization’s legal department. These responsibilities

should be documented in the procurement management plan.

Typical steps might be:

 Prepare the procurement statement of work (SOW) or terms of reference (TOR).

 Prepare a high-level cost estimate to determine the budget.

 Advertise the opportunity.

 Identify a short list of qualiﬁed sellers.

 Prepare and issue bid documents.

 Prepare and submit proposals by the seller.

 Conduct a technical evaluation of the proposals including quality.

 Perform a cost evaluation of the proposals.

 Prepare the ﬁnal combined quality and cost evaluation to select the winning proposal.

 Finalize negotiations and sign contract between the buyer and the seller.

The requirements of the project schedule can signiﬁcantly inﬂuence the strategy during the Plan Procurement

Management process. Decisions made in developing the procurement management plan can also inﬂuence the

project schedule and are integrated with the Develop Schedule process, the Estimate Activity Resources process, and

make-or-buy decisions.

12.1.1 PLAN PROCUREMENT MANAGEMENT: INPUTS

12.1.1.1 PROJECT CHARTER

Described in Section 4.1.3.1. The project charter contains the objectives, project description, summary milestones,

and the preapproved ﬁnancial resources.

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469

12.1.1.2 BUSINESS DOCUMENTS

Described in Section 1.2.6. The business documents include the following:

 Business case. The procurement strategy and business case need to be aligned to ensure the business case

remains valid.

 Benefits management plan. The beneﬁts management plan describes when speciﬁc project beneﬁts are

expected to be available, which will drive procurement dates and contract language.

12.1.1.3 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Scope management plan. Described in Section 5.1.3.1. The scope management plan describes how the scope

of work by the contractors will be managed through the execution phase of the project.

 Quality management plan. Described in Section 8.1.3.1. The quality management plan contains the applicable

industry standards and codes the project is required to follow. This information is used in bidding documents

such as the RFP and will eventually be referenced in the contract. This information may be used in supplier

prequaliﬁcation or as part of the selection criteria.

 Resource management plan. Described in Section 9.1.3.1. The resource management plan has information on

which resources will be purchased or leased, along with any assumptions or constraints that would inﬂuence

the procurement.

 Scope baseline. Described in Section 5.4.3.1. The scope baseline contains the scope statement, WBS, and WBS

dictionary. Early in the project, the project scope may still be evolving. The elements of the scope that are known

are used to develop the statement of work (SOW) and the terms of reference (TOR).

12.1.1.4 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Milestone list. Described in Section 6.2.3.3. This list of major milestones show when the sellers are required to

deliver their results.

 Project team assignments. Described in Section 9.3.3.2. The project team assignments contain information on

the skills and abilities of the project team and their availability to support the procurement activities. If the project

team does not have the skills to perform the procurement activities for which they are responsible, additional

resources will need to be acquired or training will need to be provided, or both.

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 Requirements documentation. Described in Section 5.2.3.1. Requirements documentation may include:

 Technical requirements that the seller is required to satisfy, and

 Requirements with contractual and legal implications that may include health, safety, security, performance,

environmental, insurance, intellectual property rights, equal employment opportunity, licenses, permits, and

other nontechnical requirements.

 Requirements traceability matrix. Described in Section 5.2.3.2. The requirements traceability matrix links

product requirements from their origin to the deliverables that satisfy them.

 Resource requirements. Described in Section 9.2.3.1. Resource requirements contain information on speciﬁc

needs such as team and phyisical resources that may need to be acquired.

 Risk register. Described in Section 11.2.3.1. The risk register provides the list of risks, along with the results of

risk analysis and risk response planning. Some risks are transferred via a procurement agreement.

 Stakeholder register. Described in Section 13.1.3.1. The stakeholder register provides details on the

project participants and their interests in the project, including regulatory agencies, contracting personnel,

and legal personnel.

12.1.1.5 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Plan Procurement Management process include but are

not limited to:

 Marketplace conditions;

 Products, services, and results that are available in the marketplace;

 Sellers, including their past performance or reputation;

 Typical terms and conditions for products, services, and results or for the speciﬁc industry;

 Unique local requirements, such as regulatory requirements for local labor or sellers;

 Legal advice regarding procurements;

 Contract management systems, including procedures for contract change control;

 Established multi-tier supplier system of prequaliﬁed sellers based on prior experience; and

 Financial accounting and contract payments system.

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12.1.1.6 ORGANIZATIONAL PROCESS ASSETS

The various types of contractual agreements used by the organization also inﬂuence decisions for the Plan Procurement

Management process. The organizational process assets that can inﬂuence the Plan Procurement Management process

include but are not limited to:

 Preapproved seller lists. Lists of sellers that have been properly vetted can streamline the steps needed to

advertise the opportunity and shorten the timeline for the seller selection process.

 Formal procurement policies, procedures, and guidelines. Most organizations have formal procurement

policies and buying organizations. When such procurement support is not available, the project team should

supply both the resources and the expertise to perform such procurement activities.

 Contract types. All legal contractual relationships generally fall into one of two broad families: either ﬁxed-price

or cost-reimbursable. Also, there is a third hybrid type commonly used called the time and materials contract.

The more popular contract types in use are discussed below as discrete types, but, in practice, it is not unusual

to combine one or more types into a single procurement.

 Fixed-price contracts. This category of contracts involves setting a ﬁxed total price for a deﬁned product,

service, or result to be provided. These contracts should be used when the requirements are well deﬁned and

no signiﬁcant changes to the scope are expected. Types of ﬁxed-price contract include:

 Firm ﬁxed price (FFP). The most commonly used contract type is the FFP. It is favored by most buying

organizations because the price for goods is set at the outset and not subject to change unless the scope

of work changes.

 Fixed price incentive fee (FPIF). This ﬁxed-price arrangement gives the buyer and seller some ﬂexibility

in that it allows for deviation from performance, with ﬁnancial incentives tied to achieving agreed-upon

metrics. Typically, such ﬁnancial incentives are related to cost, schedule, or technical performance of the

seller. Under FPIF contracts, a price ceiling is set, and all costs above the price ceiling are the responsibility

of the seller.

 Fixed price with economic price adjustments (FPEPA). This type is used whenever the seller’s performance

period spans a considerable period of years, or if the payments are made in a different currency. It

is a ﬁxed-price contract, but with a special provision allowing for predeﬁned ﬁnal adjustments to the

contract price due to changed conditions, such as inﬂation changes or cost increases (or decreases) for

speciﬁc commodities.

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 Cost-reimbursable contracts. This category of contract involves payments (cost reimbursements) to the

seller for all legitimate actual costs incurred for completed work, plus a fee representing seller proﬁt. This type

should be used if the scope of work is expected to change signiﬁcantly during the execution of the contract.

Variations can include:

 Cost plus ﬁxed fee (CPFF). The seller is reimbursed for all allowable costs for performing the contract work and

receives a ﬁxed-fee payment calculated as a percentage of the initial estimated project costs. Fee amounts

do not change unless the project scope changes.

 Cost plus incentive fee (CPIF). The seller is reimbursed for all allowable costs for performing the contract work

and receives a predetermined incentive fee based on achieving certain performance objectives as set forth

in the contract. In CPIF contracts, if the ﬁnal costs are less or greater than the original estimated costs, then

both the buyer and seller share costs from the departures based upon a prenegotiated cost-sharing formula,

for example, an 80/20 split over/under target costs based on the actual performance of the seller.

 Cost plus award fee (CPAF). The seller is reimbursed for all legitimate costs, but the majority of the fee

is earned based on the satisfaction of certain broad subjective performance criteria that are deﬁned and

incorporated into the contract. The determination of fee is based solely on the subjective determination of

seller performance by the buyer and is generally not subject to appeals.

 Time and material contracts (T&M). Time and material contracts (also called time and means) are a hybrid

type of contractual arrangement with aspects of both cost-reimbursable and ﬁxed-price contracts. They are often

used for staff augmentation, acquisition of experts, and any outside support when a precise statement of work

cannot be quickly prescribed.

12.1.2 PLAN PROCUREMENT MANAGEMENT: TOOLS AND TECHNIQUES

12.1.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge

or training in the following topics:

 Procurement and purchasing,

 Contract types and contract documents, and

 Regulations and compliance topics.

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12.1.2.2 DATA GATHERING

A data-gathering technique that can be used for this process includes but is not limited to market research. Market

research includes examination of industry and speciﬁc seller capabilities. Procurement teams may leverage information

gained at conferences, online reviews, and a variety of sources to identify market capabilities. The team may also reﬁne

speciﬁc procurement objectives to leverage maturing technologies while balancing risks associated with the breadth of

sellers who can provide the desired materials or services.

12.1.2.3 DATA ANALYSIS

Data analysis techniques that can be used for this process include but are not limited to make-or-buy analysis.

A make-or-buy analysis is used to determine whether work or deliverables can best be accomplished by the project

team or should be purchased from outside sources. Factors to consider in the make-or-buy decision include the

organization’s current resource allocation and their skills and abilities, the need for specialized expertise, the desire to

not expand permanent employment obligations, and the need for independent expertise. It also includes evaluating the

risks involved with each make-or-buy decision.

Make-or-buy analysis may use payback period, return on investment (ROI), internal rate of return (IRR), discounted

cash ﬂow, net present value (NPV), beneﬁt/cost analysis (BCA), or other techniques in order to decide whether to include

something as part of the project or purchase it externally.

12.1.2.4 SOURCE SELECTION ANALYSIS

It is necessary to review the prioritization of the competing demands for the project before deciding on the selection

method. Since competitive selection methods may require sellers to invest a large amount of time and resources

upfront, it is a good practice to include the evaluation method in the procurement documents so bidders know how they

will be evaluated. Commonly used selection methods include the following:

 Least cost. The least cost method may be appropriate for procurements of a standard or routine nature where

well-established practices and standards exist and from which a speciﬁc and well-deﬁned outcome is expected,

which can be executed at different costs.

 Qualifications only. The qualiﬁcations only selection method applies when the time and cost of a full selection

process would not make sense because the value of the procurement is relatively small. The buyer establishes

a short list and selects the bidder with the best credibility, qualiﬁcations, experience, expertise, areas of

specialization, and references.

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 Quality-based/highest technical proposal score. The selected ﬁrm is asked to submit a proposal with both

technical and cost details and is then invited to negotiate the contract if the technical proposal proves acceptable.

Using this method, technical proposals are ﬁrst evaluated based on the quality of the technical solution offered.

The seller who submitted the highest-ranked technical proposal is selected if their ﬁnancial proposal can be

negotiated and accepted.

 Quality and cost-based. The quality and cost-based method allows cost to be included as a factor in the seller

selection process. In general, when risk and/or uncertainty are greater for the project, quality should be a key

element when compared to cost.

 Sole source. The buyer asks a speciﬁc seller to prepare technical and ﬁnancial proposals, which are then

negotiated. Since there is no competition, this method is acceptable only when properly justiﬁed and should be

viewed as an exception.

 Fixed budget. The ﬁxed-budget method requires disclosing the available budget to invited sellers in the RFP

and selecting the highest-ranking technical proposal within the budget. Because sellers are subject to a cost

constraint, they will adapt the scope and quality of their offer to that budget. The buyer should therefore ensure

that the budget is compatible with the SOW and that the seller will be able to perform the tasks within the budget.

This method is appropriate only when the SOW is precisely deﬁned, no changes are anticipated, and the budget

is ﬁxed and cannot be exceeded.

12.1.2.5 MEETINGS

Research alone may not provide speciﬁc information to formulate a procurement strategy without additional

information interchange meetings with potential bidders. By collaborating with potential bidders, the organization

purchasing the material or service may beneﬁt while the seller can inﬂuence a mutually beneﬁcial approach or product.

Meetings can be used to determine the strategy for managing and monitoring the procurement.

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12.1.3 PLAN PROCUREMENT MANAGEMENT: OUTPUTS

12.1.3.1 PROCUREMENT MANAGEMENT PLAN

The procurement management plan contains the activities to be undertaken during the procurement process. It

should document whether international competitive bidding, national competitive bidding, local bidding, etc., should be

done. If the project is ﬁnanced externally, the sources and availability of funding should be aligned with the procurement

management plan and the project schedule.

The procurement management plan can include guidance for:

 How procurement will be coordinated with other project aspects, such as project schedule development and

control processes;

 Timetable of key procurement activities;

 Procurement metrics to be used to manage contracts;

 Stakeholder roles and responsibilities related to procurement, including authority and constraints of the project

team when the performing organization has a procurement department;

 Constraints and assumptions that could affect planned procurements;

 The legal jurisdiction and the currency in which payments will be made;

 Determination of whether independent estimates will be used and whether they are needed as evaluation criteria;

 Risk management issues including identifying requirements for performance bonds or insurance contracts to

mitigate some forms of project risk; and

 Prequaliﬁed sellers, if any, to be used.

A procurement management plan can be formal or informal, can be highly detailed or broadly framed, and is based

upon the needs of each project.

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12.1.3.2 PROCUREMENT STRATEGY

Once the make-or-buy analysis is complete and the decision is made to acquire from outside the project, a procurement

strategy should be identiﬁed. The objective of the procurement strategy is to determine the project delivery method, the

type of legally binding agreement(s), and how the procurement will advance through the procurement phases.

 Delivery methods. Delivery methods are different for professional services versus construction projects.

 For professional services, delivery methods include: buyer/services provider with no subcontracting, buyer/

services provider with subcontracting allowed, joint venture between buyer and services provider, and buyer/

services provider acts as the representative.

 For industrial or commercial construction, project delivery methods include but are not limited to: turnkey,

design build (DB), design bid build (DBB), design build operate (DBO), build own operate transfer (BOOT),

and others.

 Contract payment types. Contract payment types are separate from the project delivery methods and are

coordinated with the buying organization’s internal ﬁnancial systems. They include but are not limited to these

contract types plus variations: lump sum, ﬁrm ﬁxed price, cost plus award fees, cost plus incentive fees, time

and materials, target cost, and others.

 Fixed-price contracts are suitable when the type of work is predictable and the requirements are well deﬁned

and not likely to change.

 Cost plus contracts are suitable when the work is evolving, likely to change, or not well deﬁned.

 Incentives and awards may be used to align the objectives of buyer and seller.

 Procurement phases. The procurement strategy can also include information on procurement phases.

Information may include:

 Sequencing or phasing of the procurement, a description of each phase and the speciﬁc objectives

of each phase;

 Procurement performance indicators and milestones to be used in monitoring;

 Criteria for moving from phase to phase;

 Monitoring and evaluation plan for tracking progress; and

 Process for knowledge transfer for use in subsequent phases.

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477

12.1.3.3 BID DOCUMENTS

Bid documents are used to solicit proposals from prospective sellers. Terms such as bid, tender, or quotation are generally

used when the seller selection decision is based on price (as when buying commercial or standard items), while a term

such as proposal is generally used when other considerations such as technical capability or technical approach are the

most important. Speciﬁc procurement terminology used may vary by industry and location of the procurement.

Depending on the goods or services needed, the bidding documents can include a request for information, request

for quotation, request for proposal, or other appropriate procurement documents. The conditions involving their use are

presented below:

 Request for information (RFI). An RFI is used when more information on the goods and services to be acquired

is needed from the sellers. It will typically be followed by an RFQ or RFP.

 Request for quotation (RFQ). An RFQ is commonly used when more information is needed on how vendors

would satisfy the requirements and/or how much it will cost.

 Request for proposal (RFP). An RFP is used when there is a problem in the project and the solution is not easy

to determine. This is the most formal of the “request for” documents and has strict procurement rules for content,

timeline, and seller responses.

The buyer structures procurement documents to facilitate an accurate and complete response from each prospective

seller and to facilitate easy evaluation of the responses. These documents include a description of the desired form of

the response, the relevant procurement SOW, and any required contractual provisions.

The complexity and level of detail of the procurement documents should be consistent with the value of, and risks

associated with, the planned procurement. Procurement documents are required to be sufﬁciently detailed to ensure

consistent, appropriate responses, but ﬂexible enough to allow consideration of any seller suggestions for better ways

to satisfy the same requirements.

12.1.3.4 PROCUREMENT STATEMENT OF WORK

The statement of work (SOW) for each procurement is developed from the project scope baseline and deﬁnes only

that portion of the project scope that is to be included within the related contract. The SOW describes the procurement

item in sufﬁcient detail to allow prospective sellers to determine if they are capable of providing the products, services,

or results. Sufﬁcient detail can vary based on the nature of the item, the needs of the buyer, or the expected contract

form. Information included in a SOW can include speciﬁcations, quantity desired, quality levels, performance data, period

of performance, work location, and other requirements.

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The procurement SOW should be clear, complete, and concise. It includes a description of any collateral services

required, such as performance reporting or post-project operational support for the procured item. The SOW can be

revised as required as it moves through the procurement process until incorporated into a signed agreement.

The phrase terms of reference (TOR) is sometimes used when contracting for services. Similar to the procurement

SOW, a TOR typically includes these elements:

 Tasks the contractor is required to perform as well as speciﬁed coordination requirements;

 Standards the contractor will fulﬁll that are applicable to the project;

 Data that needs to be submitted for approval;

 Detailed list of all data and services that will be provided to the contractor by the buyer for use in performing the

contract, if applicable; and

 Deﬁnition of the schedule for initial submission and the review/approval time required.

12.1.3.5 SOURCE SELECTION CRITERIA

In choosing evaluation criteria, the buyer seeks to ensure that the proposal selected will offer the best quality for the

services required. The source selection criteria may include but are not limited to:

 Capability and capacity;

 Product cost and life cycle cost;

 Delivery dates;

 Technical expertise and approach;

 Speciﬁc relevant experience;

 Adequacy of the proposed approach and work plan in responding to the SOW;

 Key staff’s qualiﬁcations, availability, and competence;

 Financial stability of the ﬁrm;

 Management experience; and

 Suitability of the knowledge transfer program, including training.

479

For international projects, evaluation criteria may include “local content” requirements, for example, participation by

nationals among proposed key staff.

The speciﬁc criteria may be a numerical score, color-code, or a written description of how well the seller satisﬁes

the buying organization’s needs. The criteria will be part of a weighting system that can be used to select a single seller

that will be asked to sign a contract and establish a negotiating sequence by ranking all the proposals by the weighted

evaluation scores assigned to each proposal.

12.1.3.6 MAKE-OR-BUY DECISIONS

A make-or-buy analysis results in a decision as to whether particular work can best be accomplished by the project

team or needs to be purchased from outside sources.

12.1.3.7 INDEPENDENT COST ESTIMATES

For large procurements, the procuring organization may elect to either prepare its own independent estimate or

have a cost estimate prepared by an outside professional estimator to serve as a benchmark on proposed responses.

Signiﬁcant differences in cost estimates can be an indication that the procurement SOW was deﬁcient or ambiguous, or

that the prospective sellers either misunderstood or failed to respond fully to the procurement SOW.

12.1.3.8 CHANGE REQUESTS

Described in Section 4.3.3.4. A decision that involves procuring goods, services, or resources may require a change

request. Other decisions during procurement planning can also create the need for additional change requests. Changes

to the project management plan, its subsidiary plans, and other components may result in change requests that impact

procurement actions. Change requests are processed for review and disposition through the Perform Integrated Change

Control process (Section 4.6).

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12.1.3.9 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Lessons learned register. Described in Section 4.4.3.1. The lessons learned register is updated with any relevant

lessons regarding regulations and compliance, data gathering, data analysis, and source selection analysis.

 Milestone list. Described in Section 6.2.3.3. This list of major milestones shows when the sellers are expected

to deliver their results.

 Requirements documentation. Described in Section 5.2.3.1. Requirements documentation may include:

 Technical requirements that the seller is required to satisfy, and

 Requirements with contractual and legal implications that may include health, safety, security, performance,

environmental, insurance, intellectual property rights, equal employment opportunity, licenses, permits, and

other nontechnical requirements.

 Requirements traceability matrix. Described in Section 5.2.3.2. The requirements traceability matrix links

product requirements from their origin to the deliverables that satisfy them.

 Risk register. Described in Section 11.2.3.1. Each approved seller comes with its own unique set of risks,

depending on the seller’s organization, the duration of the contract, the external environment, the project delivery

method, the type of contracting vehicle chosen, and the ﬁnal agreed-upon price.

 Stakeholder register. Described in Section 13.1.3.1. The stakeholder register is updated with any additional

information on stakeholders, particularly regulatory agencies, contracting personnel, and legal personnel.

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12.1.3.10 ORGANIZATIONAL PROCESS ASSETS UPDATES

Organizational process assets that are updated as a result of the Plan Procurement Management process include but

are not limited to information on qualiﬁed sellers.

For projects with few procurements and relatively simple procurements, some of these outputs may be combined.

However, for projects with large, complex procurements and where much of the work is done by contractors, there are

several different types of documentation. Table 12-1 is a representative list of common types of documents used in

procurements and some of their contents. Given the legal nature of procurements, this list should not be considered

prescriptive, but rather it should be used as a general outline of types of documents and contents needed to conduct

procurement. The organization, environment, and legal constraints dictate the required procurement documents and

information needed for the project.

Table 12-1. Comparison of Procurement Documentation

Procurement

Management Plan

Procurement

Strategy

Statement of

Work Bid Documents

How procurement work will be

coordinated and integrated with

other project work, particularly

with resources, schedule, and

budget

Timetable for key procurement

activities

Procurement metrics to manage

the contract

Responsibilities of all

stakeholders

Procurement assumptions and

constraints

Legal jurisdiction and currency

used for payment

Information on independent

estimates

Risk management issues

Prequalified sellers, if applicable

Procurement delivery methods

Type of agreements

Procurement phases

Description of the procurement

item

Specifications, quality require-

ments and performance metrics

Description of collateral services

required

Acceptance methods and criteria

Performance data and other

reports required

Quality

Period and place of performance

Currency; payment schedule

Warranty

Request for information (RFI),

Request for quote (RFQ),

Request for proposal (RFP)

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Part 1 - Guide

12.2 CONDUCT PROCUREMENTS

Conduct Procurements is the process of obtaining seller responses, selecting a seller, and awarding a contract. The

key beneﬁt of this process is that it selects a qualiﬁed seller and implements the legal agreement for delivery. The end

results of the process are the established agreements including formal contracts. This process is performed periodically

throughout the project as needed. The inputs, tools and techniques, and outputs of the Conduct Procurements process

are depicted in Figure 12-4. Figure 12-5 depicts the data ﬂow diagram for the process.

Tools & TechniquesInputs Outputs

.1 Expert judgment

.2 Advertising

.3 Bidder conferences

.4 Data analysis

• Proposal evaluation

.5 Interpersonal and team skills

• Negotiation

.1 Project management plan

• Scope management plan

• Requirements management

plan

• Communications

management plan

• Risk management plan

• Procurement management

plan

• Configuration management

plan

• Cost baseline

.2 Project documents

• Lessons learned register

• Project schedule

• Requirements

documentation

• Risk register

• Stakeholder register

.3 Procurement documentation

.4 Seller proposals

.5 Enterprise environmental

factors

.6 Organizational process assets

.1 Selected sellers

.2 Agreements

.3 Change requests

.4 Project management plan

updates

• Requirements management

plan

• Quality management plan

• Communications

management plan

• Risk management plan

• Procurement management

plan

• Scope baseline

• Schedule baseline

• Cost baseline

.5 Project documents updates

• Lessons learned register

• Requirements

documentation

• Requirements traceability

matrix

• Resource calendars

• Risk register

• Stakeholder register

.6 Organizational process assets

updates

Conduct Procurements

Figure 12-4. Conduct Procurements: Inputs, Tools & Techniques, and Outputs

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Figure 12-5. Conduct Procurements: Data Flow Diagram

12.3

Control

Procurements

4.6

Perform

Integrated

Change Control

• Project

charter

• Seller proposals

• Enterprise environmental factors

• Organizational process assets

• Organizational

process assets

updates

• Agreements

Project

Management

Plan

Project

Documents

Project

Documents

Procurement

Documentation

12.2

Conduct

Procurements

• Change requests

• Selected sellers

Project

Management

Plan

Project documents

updates

• Lessons learned register

• Requirements documentation

• Requirements traceability matrix

• Resource calendars

• Risk register

• Stakeholder register

Project management

plan updates

• Requirements

management plan

• Quality management plan

• Communications management plan

• Risk management plan

• Procurement management plan

• Scope baseline

• Schedule baseline

• Cost baseline

Project management plan

• Scope management plan

• Requirements management plan

• Communications management plan

• Risk management plan

• Procurement management plan

• Configuration management plan

• Cost baseline

Project documents

• Lessons learned register

• Project schedule

• Requirements documentation

• Risk register

• Stakeholder register

4.1

Develop

Project Charter

4.5

Monitor and

Control

Project Work

4.7

Project or Phase

6.5

Develop

Schedule

7.3

Determine

Budget

9.6

Control

Resources

12.3

Control

Procurements

13.1

Identify

Stakeholders

13.2

Plan

Stakeholder

Engagement

Sellers

Enterprise/

Organization

Enterprise/

Organization

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Part 1 - Guide

12.2.1 CONDUCT PROCUREMENTS: INPUTS

12.2.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Scope management plan. Described in Section 5.1.3.1. The scope management plan describes how the overall

scope of work will be managed, including the scope performed by sellers.

 Requirements management plan. Described in Section 5.1.3.2. The requirements management plan describes

how requirements will be analyzed, documented, and managed. The requirements management plan may

include how sellers will manage the requirements they are under agreement to satisfy.

 Communications management plan. Described in Section 10.1.3.1. The communications management plan

describes how communications between buyers and sellers will be conducted.

 Risk management plan. Described in Section 11.1.3.1. The risk management plan is a component of the

project management plan and describes how risk management activities will be structured and performed for

the project.

 Procurement management plan. Described in Section 12.1.3.1. The procurement management plan contains

the activities to be undertaken during the Conduct Procurements process.

 Configuration management plan. Described in Section 5.6.1.1. The conﬁguration management plan deﬁnes

those items that are conﬁgurable, those items that require formal change control, and the process for controlling

changes to such items. It includes formats and processes for how sellers will provide conﬁguration management

in a way that is consistent with the buyer’s approach.

 Cost baseline. Described in Section 7.3.3.1. The cost baseline includes the budget for the procurement as well

as costs associated with managing the procurement process and sellers.

12.2.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Lessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project with regard to

conducting procurements can be applied to later phases in the project to improve the efﬁciency of this process.

 Project schedule. Described in Section 6.5.3.2. The project schedule identiﬁes the start and end dates of project

activities, including procurement activities. It also deﬁnes when contractor deliverables are due.

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485

 Requirements documentation. Described in Section 5.2.3.1. Requirements documentation may include:

 Technical requirements the seller is required to satisfy, and

 Requirements with contractual and legal implications that may include health, safety, security, performance,

environmental, insurance, intellectual property rights, equal employment opportunity, licenses, permits, and

other nontechnical requirements.

 Risk register. Described in Section 11.2.3.1. Each approved seller comes with its own unique set of risks,

depending on the seller’s organization, the duration of the contract, the external environment, the project delivery

method, the type of contracting vehicle chosen, and the ﬁnal agreed-upon price.

 Stakeholder register. Described in Section 13.1.3.1. This document contains all of the details about the

identiﬁed stakeholders.

12.2.1.3 PROCUREMENT DOCUMENTATION

Procurement documentation provides a written record used in reaching the legal agreement, and may include older

documents predating the current project. Procurement documentation can include:

 Bid documents. Described in Section 12.1.3.3. Procurement documents include the RFI, RFP, RFQ, or other

documents sent to sellers so they can develop a bid response.

 Procurement statement of work. Described in Section 12.1.3.4. The procurement statement of work (SOW)

provides sellers with a clearly stated set of goals, requirements, and outcomes from which they can provide

a quantiﬁable response.

 Independent cost estimates. Described in Section 12.1.3.7. Independent cost estimates are developed either

internally or by using external resources and provide a reasonableness check against the proposals submitted

by bidders.

 Source selection criteria. Described in Section 12.1.3.5. These criteria describe how bidder proposals will be

evaluated, including evaluation criteria and weights. For risk mitigation, the buyer may decide to sign agreements

with more than one seller to mitigate damage caused by a single seller having problems that impact the

overall project.

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12.2.1.4 SELLER PROPOSALS

Seller proposals, prepared in response to a procurement document package, form the basic information that will be

used by an evaluation body to select one or more successful bidders (sellers). If the seller is going to submit a price

proposal, good practice is to require that it be separate from the technical proposal. The evaluation body reviews each

submitted proposal according to the source selection criteria and selects the seller that can best satisfy the buying

organization’s requirements.

12.2.1.5 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Conduct Procurements Process include:

 Local laws and regulations regarding procurements;

 Local laws and regulations ensuring that the major procurements involve local sellers;

 External economic environment constraining procurement processes;

 Marketplace conditions;

 Information on relevant past experience with sellers, both good and bad;

 Prior agreements already in place; and

 Contract management systems.

12.2.1.6 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Conduct Procurements process include but are not limited to:

 List of preferred sellers that have been prequaliﬁed,

 Organizational policies that inﬂuence the selection of a seller,

 Speciﬁc organizational templates or guidelines that will determine the way agreements are drafted and built,

and

 Financial policies and procedures regarding invoicing and payment processes.

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12.2.2 CONDUCT PROCUREMENTS: TOOLS AND TECHNIQUES

12.2.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1 Expertise should be considered from individuals or groups with specialized knowledge

or training in the following topics:

 Proposal evaluation;

 Technical or subject matter;

 Relevant functional areas such as ﬁnance, engineering, design, development, supply chain management, etc.;

 Industry regulatory environment;

 Laws, regulations, and compliance requirements; and

 Negotiation.

12.2.2.2 ADVERTISING

Advertising is communicating with users or potential users of a product, service, or result. Existing lists of potential

sellers often can be expanded by placing advertisements in general circulation publications such as selected newspapers

or in specialty trade publications. Most government jurisdictions require public advertising or online posting of pending

government contracts.

12.2.2.3 BIDDER CONFERENCES

Bidder conferences (also called contractor conferences, vendor conferences, and pre-bid conferences) are meetings

between the buyer and prospective sellers prior to proposal submittal. They are used to ensure that all prospective

bidders have a clear and common understanding of the procurement and no bidders receive preferential treatment.

12.2.2.4 DATA ANALYSIS

A data analysis technique that can be used for this process includes but is not limited to proposal evaluation. Proposals

are evaluated to ensure they are complete and respond in full to the bid documents, procurement statement of work,

source selection criteria, and any other documents that went out in the bid package.

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12.2.2.5 INTERPERSONAL AND TEAM SKILLS

Interpersonal and team skills that can be used for this process include negotiation. Negotiation is a discussion aimed

at reaching an agreement. Procurement negotiation clariﬁes the structure, rights, and obligations of the parties and

other terms of the purchases so that mutual agreement can be reached prior to signing the contract. Final document

language reﬂects all agreements reached. Negotiation concludes with a signed contract document or other formal

agreement that can be executed by both buyer and seller.

The negotiation should be led by a member of the procurement team that has the authority to sign contracts. The

project manager and other members of the project management team may be present during negotiation to provide

assistance as needed.

12.2.3 CONDUCT PROCUREMENTS: OUTPUTS

12.2.3.1 SELECTED SELLERS

The selected sellers are those who have been judged to be in a competitive range based on the outcome of the proposal

or bid evaluation. Final approval of complex, high-value, high-risk procurements will generally require organizational

senior management approval prior to award.

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12.2.3.2 AGREEMENTS

A contract is a mutually binding agreement that obligates the seller to provide the speciﬁed products, services, or

results; obligates the buyer to compensate the seller; and represents a legal relationship that is subject to remedy in the

courts. The major components in an agreement document will vary, and may include but are not limited to:

 Procurement statement of work or major deliverables;

 Schedule, milestones, or date by which a schedule is required;

 Performance reporting;

 Pricing and payment terms;

 Inspection, quality, and acceptance criteria;

 Warranty and future product support;

 Incentives and penalties;

 Insurance and performance bonds;

 Subordinate subcontractor approvals;

 General terms and conditions;

 Change request handling; and

 Termination clause and alternative dispute resolution mechanisms.

12.2.3.3 CHANGE REQUESTS

Described in Section 4.3.3.4. Change requests to the project management plan, its subsidiary plans, and other

components are processed for review and disposition through the Perform Integrated Change Control process

(Section 4.6).

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12.2.3.4 PROJECT MANAGEMENT PLAN UPDATES

Any change to the project management plan goes through the organization’s change control process via a change

request. Components of the project management plan that may require a change request for the project management

plan include but are not limited to:

 Requirements management plan. Described in Section 5.1.3.2. There may be changes to project requirements

due to changes identiﬁed by sellers.

 Quality management plan. Described in Section 8.1.3.1. Sellers may offer alternative quality standards or

alternative solutions that impact the quality approaches deﬁned in the quality management plan.

 Communications management plan. Described in Section 10.1.3.1. As sellers are hired, the communications

management plan is updated to incorporate their communications needs and approaches.

 Risk management plan. Described in Section 11.1.3.1. Each agreement and seller has its own set of risks that

may require updates to the risk management plan. Speciﬁc risks are incorporated into the risk register.

 Procurement management plan. Described in Section 12.1.3.1. Updates may be required depending on the

results of the contracting and negotiations processes.

 Scope baseline. Described in Section 5.4.3.1. The project WBS and deliverables documented in the scope

baseline are considered when performing procurement activities. Any one or all of these may change during the

procurement process.

 Schedule baseline. Described in Section 6.5.3.1. If there are delivery changes created by sellers that impact

overall project schedule performance, the baseline schedule may need to be updated and approved to reﬂect the

current expectations.

 Cost baseline. Described in Section 7.3.3.1. Contractor and materials prices can change frequently during the

delivery of a project. These changes can occur because of ﬂuctuating materials and labor prices created by the

external economic environment and need to be incorporated into the cost baseline.

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12.2.3.5 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Lessons learned register. Described in Section 4.4.3.1. The lessons learned register is updated with information

on challenges encountered while conducting procurements and how they could have been avoided as well as

approaches that worked well.

 Requirements documentation. Described in Section 5.2.3.1. Requirements documentation may include:

 Technical requirements that the seller is required to satisfy, and

 Requirements with contractual and legal implications that may include health, safety, security, performance,

environmental, insurance, intellectual property rights, equal employment opportunity, licenses, permits, and

other nontechnical requirements.

 Requirements traceability matrix. Described in Section 5.2.3.2. As sellers are incorporated into the project’s

plan, the requirements register and the traceability matrix may change depending on the capabilities of the

speciﬁc seller.

 Resource calendars. Described in Section 9.2.1.2. Schedule resource calendars may need to be updated

depending on the availabilities of the sellers.

 Risk register. Described in Section 11.2.3.1. Each approved seller comes with its own unique set of risks,

depending on the seller’s organization, the duration of the contract, the external environment, the project delivery

method, the type of contracting vehicle chosen, and the ﬁnal agreed-upon price. Changes are made to the risk

 Stakeholder register. Described in Section 13.1.3.1. This document contains all the details about the identiﬁed

stakeholders. The stakeholder register is updated as agreements are made with speciﬁc sellers.

12.2.3.6 ORGANIZATIONAL PROCESS ASSETS UPDATES

Elements of the organizational process assets that can be updated as a result of the Conduct Procurements process

can include:

 Listings of prospective and prequaliﬁed sellers; and

 Information on relevant experience with sellers, both good and bad.

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12.3 CONTROL PROCUREMENTS

Control Procurements is the process of managing procurement relationships; monitoring contract performance,

and making changes and corrections as appropriate; and closing out contracts. The key beneﬁt of this process is

that it ensures that both the seller’s and buyer’s performance meet the project’s requirements according to the

terms of the legal agreement. This process is performed throughout the project as needed. The inputs, tools and

techniques, and outputs of this process are depicted in Figure 12-6. Figure 12-7 depicts the data ﬂow diagram

of the process.

Tools & TechniquesInputs Outputs

.1 Expert judgment

.2 Claims administration

.3 Data analysis

• Performance reviews

• Earned value analysis

• Trend analysis

.4 Inspection

.5 Audits

.1 Project management plan

• Requirements management

plan

• Risk management plan

• Procurement management

plan

• Change management plan

• Schedule baseline

.2 Project documents

• Assumption log

• Lessons learned register

• Milestone list

• Quality reports

• Requirements

documentation

• Requirements traceability

matrix

• Risk register

• Stakeholder register

.3 Agreements

.4 Procurement documentation

.5 Approved change requests

.6 Work performance data

.7 Enterprise environmental

factors

.8 Organizational process assets

.1 Closed procurements

.2 Work performance

information

.3 Procurement documentation

updates

.4 Change requests

.5 Project management plan

updates

• Risk management plan

• Procurement management

plan

• Schedule baseline

• Cost baseline

.6 Project documents updates

• Lessons learned register

• Resource requirements

• Requirements traceability

matrix

• Risk register

• Stakeholder register

.7 Organizational process assets

updates

Control Procurements

Figure 12-6. Control Procurements: Inputs, Tools & Techniques, and Outputs

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4.5

Monitor and

Control

Project Work

4.6

Perform

Integrated

Change Control

• Project

charter

• Enterprise environmental factors

• Organizational process assets

• Organizational process

assets updates

Project

Management

Plan

Project

Documents

Project

Documents

12.3

Control

Procurements

• Change requests

• Work performance information

• Closed procurements

• Procurement documentation updates

Project

Management

Plan

• Agreements

Project documents updates

• Lessons learned register

• Resource requirements

• Requirements traceability matrix

• Risk register

• Stakeholder register

Project management plan updates

• Risk management plan

• Procurement management plan

• Schedule baseline

• Cost baseline

Procurement

Documentation

4.3

Direct and

Manage

Project Work

• Procurement documentation

12.1

Plan

Procurement

Management

4.6

Perform

Integrated

Change Control

12.2

Conduct

Procurements

Project management plan

• Requirements management plan

• Risk management plan

• Procurement management plan

• Change management plan

• Schedule baseline

• Approved change requests

• Work performance data

Project documents

• Assumption log

• Lessons learned register

• Milestone list

• Quality reports

• Requirements documentation

• Requirements traceability matrix

• Risk register

• Stakeholder register

Enterprise/

Organization

Enterprise/

Organization

Figure 12-7. Control Procurements: Data Flow Diagram

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Both the buyer and the seller administer the procurement contract for similar purposes. Each is required to ensure

that both parties meet their contractual obligations and that their own legal rights are protected. The legal nature of

the relationship makes it imperative that the project management team is aware of the implications of actions taken

when controlling any procurement. On larger projects with multiple providers, a key aspect of contract administration is

managing communication among the various providers.

Because of the legal aspect, many organizations treat contract administration as an organizational function that

is separate from the project. While a procurement administrator may be on the project team, this individual typically

reports to a supervisor from a different department.

Control Procurements includes application of the appropriate project management processes to the contractual

relationship(s) and integration of the outputs from these processes into the overall management of the project. This

integration often occurs at multiple levels when there are multiple sellers and multiple products, services, or results involved.

Administrative activities may include:

 Collection of data and managing project records, including maintenance of detailed records of physical and

ﬁnancial performance and establishment of measurable procurement performance indicators;

 Reﬁnement of procurement plans and schedules;

 Set up for gathering, analyzing, and reporting procurement-related project data and preparation of periodic

reports to the organization;

 Monitoring the procurement environment so that implementation can be facilitated or adjustments made; and

 Payment of invoices.

The quality of the controls, including the independence and credibility of procurement audits, is critical to the reliability

of the procurement system. The organization’s code of ethics, its legal counsel, and external legal advisory arrangements

including any ongoing anti-corruption initiatives can contribute to proper procurement controls.

Control Procurements has a ﬁnancial management component that involves monitoring payments to the seller. This

ensures that payment terms deﬁned within the contract are met and that compensation is linked to the seller’s progress

as deﬁned in the contract. A principal concern when making payments is to ensure there is a close relationship of

payments made to the work accomplished. A contract that requires payments linked to project output and deliverables

rather than inputs such as labor hours has better controls.

Agreements can be amended at any time prior to contract closure by mutual consent, in accordance with the change

control terms of the agreement. Such amendments are typically captured in writing.

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12.3.1 CONTROL PROCUREMENTS: INPUTS

12.3.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Requirements management plan. Described in Section 5.1.3.2. The requirements management plan describes

how contractor requirements will be analyzed, documented, and managed.

 Risk management plan. Described in Section 11.1.3.1. The risk management plan describes how risk activities

created by sellers will be structured and performed for the project.

 Procurement management plan. Described in Section 12.1.3.2. The procurement management plan contains

the activities to be performed during the Control Procurement process.

 Change management plan. Described in Section 4.2.3.1. The change management plan contains information

about how seller-created changes will be processed.

 Schedule baseline. Described in Section 6.5.3.1. If there are slippages created by sellers that impact overall

project performance, the schedule may need to be updated and approved to reﬂect the current expectations.

12.3.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs to this process include but are not limited to:

 Assumption log. Described in Section 4.1.3.2. The assumption log documents the assumptions that have been

made during the procurement process.

 Lessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project can be applied

further along in the project to improve contractor performance and the procurement process.

 Milestone list. Described in Section 6.2.3.3. This list of major milestones shows when the sellers are expected

to deliver their results.

 Quality reports. Described in Section 8.2.3.1. The quality reports can identify seller processes, procedures,

or products that are out of compliance.

 Requirements documentation. Described in Section 5.2.3.1. Requirements documentation may include:

 Technical requirements the seller is required to satisfy, and

 Requirements with contractual and legal implications that may include health, safety, security, performance,

environmental, insurance, intellectual property rights, equal employment opportunity, licenses, permits, and

other nontechnical requirements.

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 Requirements traceability matrix. Described in Section 5.2.3.2. The requirements traceability matrix links

product requirements from their origin to the deliverables that satisfy them.

 Risk register. Described in Section 11.2.3.1. Each approved seller comes with its own unique set of risks,

depending on the seller’s organization, the duration of the contract, the external environment, the project delivery

method, the type of contracting vehicle chosen, and the ﬁnal agreed-upon price.

 Stakeholder register. Described in Section 13.1.3.1. The stakeholder register includes information about

identiﬁed stakeholders, including contracted team members, selected sellers, contracting ofﬁcers, and other

stakeholders who are involved in procurements.

12.3.1.3 AGREEMENTS

Described in Section 12.2.3.2. Agreements are understandings between parties, including understanding of the

duties of each party. The relevant agreements are reviewed to verify terms and conditions are met.

12.3.1.4 PROCUREMENT DOCUMENTATION

Procurement documentation contains complete supporting records for administration of the procurement processes.

Procurement documentation includes the statement of work, payment information, contractor work performance

information, plans, drawings, and other correspondence.

12.3.1.5 APPROVED CHANGE REQUESTS

Described in Section 4.6.3.1. Approved change requests can include modiﬁcations to the terms and conditions of

the contract, including the procurement statement of work (SOW), pricing, and descriptions of the products, services, or

results to be provided. All procurement-related changes are formally documented in writing and approved before being

implemented through the Control Procurements process. In complex projects and programs, change requests may come

from sellers involved with the project that can inﬂuence other involved sellers. The project should have the capability of

identifying, communicating, and resolving changes that impact the work of multiple sellers.

12.3.1.6 WORK PERFORMANCE DATA

Described in Section 4.3.3.2. Work performance data contains seller data on project status such as technical

performance; activities that have started, are in progress, or have completed; and costs that have been incurred or

committed. Work performance data can also include information on the seller invoices that have been paid.

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12.3.1.7 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Control Procurements process include but are not

limited to:

 Contract change control system,

 Marketplace conditions,

 Financial management and accounts payable system, and

 Buying organization’s code of ethics.

12.3.1.8 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Control Procurements process include but are not limited

to, procurement policies.

12.3.2 CONTROL PROCUREMENTS: TOOLS AND TECHNIQUES

12.3.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1 Expertise should be considered from individuals or groups with specialized knowledge

or training in the following topics:

 Relevant functional areas such as ﬁnance, engineering, design, development, supply chain management, etc.;

 Laws, regulations, and compliance requirements; and

 Claims administration.

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12.3.2.2 CLAIMS ADMINISTRATION

Contested changes and potential constructive changes are those requested changes where the buyer and seller

cannot reach an agreement on compensation for the change or cannot agree that a change has occurred. These

contested changes are called claims. When they cannot be resolved, they become disputes and ﬁnally appeals. Claims

are documented, processed, monitored, and managed throughout the contract life cycle, usually in accordance with the

terms of the contract. If the parties themselves do not resolve a claim, it may have to be handled in accordance with

alternative dispute resolution (ADR) typically following procedures established in the contract. Settlement of all claims

and disputes through negotiation is the preferred method.

12.3.2.3 DATA ANALYSIS

Data analysis techniques that can be used to monitor and control procurements include but are not limited to:

 Performance Reviews. Performance reviews for contracts measure, compare, and analyze quality, resource,

schedule, and cost performance against the agreement. This includes identifying work packages that are ahead

or behind schedule, over or under budget, or have resource or quality issues.

 Earned Value Analysis (EVA). Described in Section 7.4.2.2. Schedule and cost variances along with schedule

and cost performance indexes are calculated to determine the degree of variance from target.

 Trend Analysis. Described in Section 4.5.2.2. Trend analysis can develop a forecast estimate at completion

(EAC) for cost performance to see if performance is improving or deteriorating. See 7.4.2.2 for more detail on

EAC methods.

12.3.2.4 INSPECTION

An inspection is a structured review of the work being performed by the contractor. This may involve a simple review

of the deliverables or an actual physical review of the work itself. On a construction/engineering/infrastructure project,

inspections involve walkthroughs of the site by both the buyer and the contractor to ensure a mutual understanding of

the work in progress.

12.3.2.5 AUDITS

Audits are described in Section 8.2.2.5. Audits are a structured review of the procurement process. Rights and

obligations related to audits should be described in the procurement contract. Resulting audit observations should be

brought to the attention of the buyer’s project manager and the seller’s project manager for adjustments to the project,

when necessary.

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12.3.3 CONTROL PROCUREMENTS: OUTPUTS

12.3.3.1 CLOSED PROCUREMENTS

The buyer, usually through its authorized procurement administrator, provides the seller with formal written notice

that the contract has been completed. Requirements for formal procurement closure are usually deﬁned in the terms

and conditions of the contract and are included in the procurement management plan. Typically, all deliverables should

have been provided on time and meet technical and quality requirements, there should be no outstanding claims or

invoices, and all ﬁnal payments should have been made. The project management team should have approved all

deliverables prior to closure.

12.3.3.2 WORK PERFORMANCE INFORMATION

Described in Section 4.5.1.3. Work performance information includes information on how a seller is performing by

comparing the deliverables received, the technical performance achieved, and the costs incurred and accepted against

the SOW budget for the work performed.

12.3.3.3 PROCUREMENT DOCUMENTATION UPDATES

Procurement documentation that may be updated includes the contract with all supporting schedules, requested

unapproved contract changes, and approved change requests. Procurement documentation also includes any

seller-developed technical documentation and other work performance information such as deliverables, seller

performance reports and warranties, ﬁnancial documents including invoices and payment records, and the results of

contract-related inspections.

12.3.3.4 CHANGE REQUESTS

Described in Section 4.3.3.4. Change requests to the project management plan, its subsidiary plans, and other

components such as the cost baseline, schedule baseline, and procurement management plan, may result from the

Control Procurements process. Change requests are processed for review and disposition through the Perform Integrated

Change Control process (Section 4.6).

Requested but unresolved changes can include direction provided by the buyer or actions taken by the seller, which

the other party considers a constructive change to the contract. Since any of these constructive changes may be disputed

by one party and can lead to a claim against the other party, such changes are uniquely identiﬁed and documented by

project correspondence.

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12.3.3.5 PROJECT MANAGEMENT PLAN UPDATES

Any change to the project management plan goes through the organization’s change control process via a change

request. Components that may require a change request for the project management plan include but are not limited to:

 Risk management plan. Described in Section 11.1.3.1. Each agreement and seller has its own set of risks

that may require updates to the risk management plan. If signiﬁcant unexpected risks occur during the

execution of the contract, the risk management plan may require updating. Speciﬁc risks are incorporated

into the risk register.

 Procurement management plan. Described in Section 12.1.3.1. The procurement management plan contains

the activities to be undertaken during the procurement process. Updates may be required depending on the

results of the performance of the sellers during execution of the work.

 Schedule baseline. Described in Section 6.5.3.1. If there are signiﬁcant schedule changes created by sellers

that impact overall project schedule performance, the baseline schedule may need to be updated and approved

to reﬂect the current expectations. The buyer should be aware of any cascading impacts of schedule delays

created by a seller that impact other sellers.

 Cost baseline. Described in Section 7.3.3.1. Contractor and material costs can change frequently during the

delivery of a project. These changes can occur because of ﬂuctuating materials and labor prices created by the

external economic environment and need to be incorporated into the cost baseline.

12.3.3.6 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Lessons learned register. Described in Section 4.4.3.1. The lessons learned register can be updated with

techniques that were effective in maintaining the scope, schedule, and cost of the procured items. Where

variances occurred, the register should show the corrective actions that were used to respond to variances

and how effective those actions were. If there are any claims, information should be documented to avoid

recurrences. Additional information on how to improve the procurement process can also be recorded.

 Resource requirements. Described in Section 9.2.3.1. As the work progresses by the contractors, there may be

changes to the resource requirements resulting from work being done that is not in accordance with the planned

work schedule.

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 Requirements traceability matrix. Described in Section 5.2.3.2. The requirements traceability matrix is updated

with information on requirements that have been satisﬁed.

 Risk register. Described in Section 11.2.3.1. Each approved seller comes with its own unique set of risks,

depending on the seller’s organization, the duration of the contract, the external environment, the project delivery

method, the type of contracting vehicle chosen, and the ﬁnal agreed-upon price. Changes are made to the risk

 Stakeholder register. Described in Section 13.1.3.1. As the work progresses through the execution phase,

the contractors and suppliers may change. These changes should be reﬂected in the stakeholder register.

12.3.3.7 ORGANIZATIONAL PROCESS ASSETS UPDATES

Organizational process assets that can be updated as a result of the Control Procurements process include but are

not limited to:

 Payment schedules and requests. All payments should be made in accordance with the procurement contract

terms and conditions.

 Seller performance evaluation documentation. Seller performance evaluation documentation is prepared by

the buyer and documents the seller’s ability to continue to perform work on the current contract, indicates

whether the seller can be allowed to perform work on future projects, or rates how well the seller is performing

the project work or has performed in the past.

 Prequalified seller lists updates. Prequaliﬁed seller lists are lists of potential sellers who are previously qualiﬁed

(approved). These lists will be updated according to the Procurement Control process outcomes because sellers

could be disqualiﬁed and removed from the lists based on poor performance.

 Lessons learned repository. Lessons learned should be archived in the lessons learned repository to improve

procurements on future projects. At the end of a contract, the actual results of the procurement are compared

with the projected results in the original procurement management plan. These lessons learned state whether

the project objectives were achieved and, if not, provides the reasons they were not.

 Procurement file. A complete set of indexed contract documentation, including the closed contract, is prepared

for inclusion with the ﬁnal project ﬁles.

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PROJECT STAKEHOLDER MANAGEMENT

Project Stakeholder Management includes the processes required to identify the people, groups, or organizations that

could impact or be impacted by the project, to analyze stakeholder expectations and their impact on the project, and to

develop appropriate management strategies for effectively engaging stakeholders in project decisions and execution.

The processes support the work of the project team to analyze stakeholder expectations, assess the degree to which

they impact or are impacted by the project, and develop strategies to effectively engage stakeholders in support of

project decisions and the planning and execution of the work of the project.

The Project Stakeholder Management processes are:

13.1 Identify Stakeholders—The process of identifying project stakeholders regularly and analyzing and

documenting relevant information regarding their interests, involvement, interdependencies, inﬂuence, and potential

impact on project success.

13.2 Plan Stakeholder Engagement—The process of developing approaches to involve project stakeholders based

on their needs, expectation, interests, and potential impact on the project.

13.3 Manage Stakeholder Engagement—The process of communicating and working with stakeholders to meet

their needs and expectations, address issues, and foster appropriate stakeholder engagement involvement.

13.4 Monitor Stakeholder Engagement—The process of monitoring project stakeholder relationships and tailoring

strategies for engaging stakeholders through the modiﬁcation of engagement strategies and plans.

Figure 13-1 provides an overview of the Project Stakeholder Management processes. The Project Stakeholder

Management processes are presented as discrete processes with deﬁned interfaces while, in practice, they overlap and

interact in ways that cannot be completely detailed in the PMBOK® Guide.

504 Part 1 - Guide

.1 Inputs

.1 Project charter

.2 Business documents

.3 Project management plan

.4 Project documents

.5 Agreements

.6 Enterprise environmental

factors

.7 Organizational process

assets

.2 Tools & Techniques

.1 Expert judgment

.2 Data gathering

.3 Data analysis

.4 Data representation

.5 Meetings

.3 Outputs

.1 Stakeholder register

.2 Change requests

.3 Project management plan

updates

.4 Project documents updates

Project Stakeholder

Management Overview

13.1 Identify

Stakeholders

.1 Inputs

.1 Project charter

.2 Project management plan

.3 Project documents

.4 Agreements

.5 Enterprise environmental

factors

.6 Organizational process

assets

.2 Tools & Techniques

.1 Expert judgment

.2 Data gathering

.3 Data analysis

.4 Decision making

.5 Data representation

.6 Meetings

.3 Outputs

.1 Stakeholder engagement

plan

13.2 Plan Stakeholder

Engagement

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Enterprise environmental

factors

.4 Organizational process

assets

.2 Tools & Techniques

.1 Expert judgment

.2 Communication skills

.3 Interpersonal and team

skills

.4 Ground rules

.5 Meetings

.3 Outputs

.1 Change requests

.2 Project management plan

updates

.3 Project documents updates

13.4 Monitor Stakeholder

Engagement

.1 Inputs

.1 Project management plan

.2 Project documents

.3 Work performance data

.4 Enterprise environmental

factors

.5 Organizational process

assets

.2 To ols & Techniques

.1 Data analysis

.2 Decision making

.3 Data representation

.4 Communication skills

.5 Interpersonal and team

skills

.6 Meetings

.3 Outputs

.1 Work performance

information

.2 Change requests

.3 Project management plan

updates

.4 Project documents updates

13.3 Manage Stakeholder

Engagement

Figure 13-1. Project Stakeholder Management Overview

KEY CONCEPTS FOR PROJECT STAKEHOLDER MANAGEMENT

Every project has stakeholders who are impacted by or can impact the project in a positive or negative way. Some

stakeholders may have a limited ability to inﬂuence the project’s work or outcomes; others may have signiﬁcant inﬂuence

on the project and its expected outcomes. Academic research and analyses of high-proﬁle project disasters highlight

the importance of a structured approach to the identiﬁcation, prioritization, and engagement of all stakeholders. The

ability of the project manager and team to correctly identify and engage all stakeholders in an appropriate way can mean

the difference between project success and failure. To increase the chances of success, the process of stakeholder

identiﬁcation and engagement should commence as soon as possible after the project charter has been approved, the

project manager has been assigned and the team begins to form.

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Stakeholder satisfaction should be identiﬁed and managed as a project objective. The key to effective stakeholder

engagement is a focus on continuous communication with all stakeholders, including team members, to understand their

needs and expectations, address issues as they occur, manage conﬂicting interests, and foster appropriate stakeholder

engagement in project decisions and activities.

The process of identifying and engaging stakeholders for the beneﬁt of the project is iterative. Although the processes

in Project Stakeholder Management are described only once, the activities of identiﬁcation, prioritization, and engagement

should be reviewed and updated routinely, and at least at the following times when:

 The project moves through different phases in its life cycle,

 Current stakeholders are no longer involved in the work of the project or new stakeholders become members of

the project’s stakeholder community, or

 There are signiﬁcant changes in the organization or the wider stakeholder community.

TRENDS AND EMERGING PRACTICES IN PROJECT STAKEHOLDER ENGAGEMENT

Broader deﬁnitions of stakeholders are being developed that expand the traditional categories of employees, suppliers,

and shareholders to include groups such as regulators, lobby groups, environmentalists, ﬁnancial organizations, the

media, and those who simply believe they are stakeholders—they perceive that they will be affected by the work or

outcomes of the project.

Trends and emerging practices for Project Stakeholder Management include but are not limited to:

 Identifying all stakeholders, not just a limited set;

 Ensuring that all team members are involved in stakeholder engagement activities;

 Reviewing the stakeholder community regularly, often in parallel with reviews of individual project risks;

 Consulting with stakeholders who are most affected by the work or outcomes of the project through the

concept of co-creation. Co-creation places greater emphasis on including affected stakeholders in the team

as partners; and

 Capturing the value of effective stakeholder engagement, both positive and negative. Positive value can be based

on the consideration of beneﬁts derived from higher levels of active support from stakeholders, particularly

powerful stakeholders. Negative value can be derived by measuring the true costs of not engaging stakeholders

effectively, leading to product recalls or loss of organizational or project reputation.

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TAILORING CONSIDERATIONS

Because each project is unique, the project manager may need to tailor the way Project Stakeholder Management

processes are applied. Considerations for tailoring include but are not limited to:

 Stakeholder diversity. How many stakeholders are there? How diverse is the culture within the

stakeholder community?

 Complexity of stakeholder relationships. How complex are the relationships within the stakeholder community?

The more networks a stakeholder or stakeholder group participates in, the more complex the networks of

information and misinformation the stakeholder may receive.

 Communication technology. What communication technology is available? What support mechanisms are in

place to ensure that best value is achieved from the technology?

CONSIDERATIONS FOR AGILE/ADAPTIVE ENVIRONMENTS

Projects experiencing a high degree of change require active engagement and participation with project stakeholders.

To facilitate timely, productive discussion and decision making, adaptive teams engage with stakeholders directly rather

than going through layers of management. Often the client, user, and developer exchange information in a dynamic

co-creative process that leads to more stakeholder involvement and higher satisfaction. Regular interactions with the

stakeholder community throughout the project mitigate risk, build trust, and support adjustments earlier in the project

cycle, thus reducing costs and increasing the likelihood of success for the project.

In order to accelerate the sharing of information within and across the organization, agile methods promote aggressive

transparency. The intent of inviting any stakeholders to project meetings and reviews or posting project artifacts in public

spaces is to surface as quickly as possible any misalignment, dependency, or other issue related to the changing project.

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13.1 IDENTIFY STAKEHOLDERS

Identify Stakeholders is the process of identifying project stakeholders regularly and analyzing and documenting

relevant information regarding their interests, involvement, interdependencies, inﬂuence, and potential impact on

project success. The key beneﬁt of this process is that it enables the project team to identify the appropriate focus for

engagement of each stakeholder or group of stakeholders. This process is performed periodically throughout the project

as needed. The inputs, tools and techniques, and outputs of the process are depicted in Figure 13-2. Figure 13-3 depicts

the data ﬂow diagram for the process.

Figure 13-2. Identify Stakeholders: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

.1 Expert judgment

.2 Data gathering

• Questionnaires and surveys

• Brainstorming

.3 Data analysis

• Stakeholder analysis

• Document analysis

.4 Data representation

• Stakeholder mapping/

representation

.5 Meetings

.1 Project charter

.2 Business documents

• Business case

• Benefits management plan

.3 Project management plan

• Communications

management plan

• Stakeholder engagement

plan

.4 Project documents

• Change log

• Issue log

• Requirements

documentation

.5 Agreements

.6 Enterprise environmental

factors

.7 Organizational process assets

.1 Stakeholder register

.2 Change requests

.3 Project management plan

updates

• Requirements management

plan

• Communications

management plan

• Risk management plan

• Stakeholder engagement

plan

.4 Project documents updates

• Assumption log

• Issue log

• Risk register

Identify Stakeholders

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Figure 13-3. Identify Stakeholders: Data Flow Diagram

This process frequently occurs for the ﬁrst time in a project either prior to or at the same time the project charter is

developed and approved. It is repeated as necessary, but should be performed at the start of each phase and when a

signiﬁcant change in the project or the organization occurs. Each time the identiﬁcation process is repeated, the project

management plan components and project documents should be consulted to identify relevant project stakeholders.

4.6

Perform

Integrated

Change Control

• Project

charter

• Enterprise environmental factors

• Organizational process assets

• Change requests

Project

Management

Plan

Project

Documents

Project

Documents

13.1

Identify

Stakeholders

• Stakeholder register

Project documents updates

• Assumption log

• Issue log

• Risk register

Project

Management

Plan

Project management plan

• Communications management plan

• Stakeholder engagement plan

• Project charter

• Agreements

Project documents

• Change log

• Issue log

• Requirements documentation

Business

Documents

• Business case

• Benefits management plan

Project management plan updates

• Requirements management plan

• Communications management plan

• Risk management plan

• Stakeholder engagement plan

4.1

Develop

Project Charter

12.2

Conduct

Procurements

Enterprise/

Organization

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13.1.1 IDENTIFY STAKEHOLDERS: INPUTS

13.1.1.1 PROJECT CHARTER

Described in Section 4.1.3.1. The project charter identiﬁes the key stakeholder list. It may also contain information

about the responsibilities of the stakeholders.

13.1.1.2 BUSINESS DOCUMENTS

In the ﬁrst iteration of the Identify Stakeholders process, the business case and the beneﬁts management plan are

sources of information about the project’s stakeholders.

 Business case. Described in Section 1.2.6.1. The business case identiﬁes the project objectives and identiﬁes

an initial list of stakeholders affected by the project.

 Benefits management plan. Described in Section 1.2.6.2. The beneﬁts management plan describes the

expected plan for realizing the beneﬁts claimed in the business case. It may identify the individuals and groups

that will beneﬁt from the delivery of the outcomes of the project and are thus considered as stakeholders.

13.1.1.3 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. The project management plan is not available when initially identifying stakeholders;

however, once it has been developed, project management plan components include but are not limited to:

 Communications management plan. Described in Section 10.1.3.1. Communications and stakeholder

engagement are strongly linked. Information included in the communications management plan is a source of

knowledge about the project’s stakeholders.

 Stakeholder engagement plan. Described in Section 13.2.3.1. The stakeholder engagement plan identiﬁes the

management strategies and actions required to effectively engage stakeholders.

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13.1.1.4 PROJECT DOCUMENTS

It is unlikely that any project documents will be an input for the initial stakeholder identiﬁcation. However, stakeholder

identiﬁcation occurs throughout the project. Once the project is past the startup phase, more documents become

available and are used throughout the project. Project documents that can be considered as inputs for this process

include but are not limited to:

 Change log. Described in Section 4.6.3.3. The change log may introduce a new stakeholder or change the nature

of an existing stakeholder’s relationship to the project.

 Issue log. Described in Section 4.3.3.3. The issue log records issues that may introduce new stakeholders to the

project or change the type of participation of existing stakeholders.

 Requirements documentation. Described in Section 5.2.3.1. Requirements can provide information on potential

stakeholders.

13.1.1.5 AGREEMENTS

Described in Section 12.2.3.2. The parties of an agreement are project stakeholders. The agreement can contain

references to additional stakeholders.

13.1.1.6 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Identify Stakeholders process include but are not limited to:

 Organizational culture, political climate, and governance framework;

 Government or industry standards (regulations, product standards, and codes of conduct);

 Global, regional, or local trends and practices or habits; and

 Geographic distribution of facilities and resources.

13.1.1.7 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Identify Stakeholders process include but are not limited to:

 Stakeholder register templates and instructions,

 Stakeholder registers from previous projects, and

 Lessons learned repository with information about the preferences, actions, and involvement of stakeholders.

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13.1.2 IDENTIFY STAKEHOLDERS: TOOLS AND TECHNIQUES

13.1.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge

or training in the following topics:

 Understanding the politics and power structures in the organization,

 Knowledge of the environment and culture of the organization and other affected organizations including

customers and the wider environment,

 Knowledge of the industry or type of project deliverable, and

 Knowledge of individual team member contributions and expertise.

13.1.2.2 DATA GATHERING

Data-gathering techniques that can be used for this process include but are not limited to:

 Questionnaires and surveys. Described in Section 5.2.2.2. Questionnaires and surveys can include one-on-one

reviews, focus group sessions, or other mass information collection techniques.

 Brainstorming. Described in Section 4.1.2.2. Brainstorming as used to identify stakeholders can include both

brainstorming and brain writing.

 Brainstorming. A general data-gathering and creativity technique that elicits input from groups such as team

members or subject matter experts.

 Brain writing. A reﬁnement of brainstorming that allows individual participants time to consider the question(s)

individually before the group creativity session is held. The information can be gathered in face-to-face

groups or using virtual environments supported by technology.

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13.1.2.3 DATA ANALYSIS

Data analysis techniques that can be used for this process include but are not limited to:

 Stakeholder analysis. Stakeholder analysis results in a list of stakeholders and relevant information such as

their positions in the organization, roles on the project, “stakes,” expectations, attitudes (their levels of support

for the project), and their interest in information about the project. Stakeholders’ stakes can include but are not

limited to a combination of:

 Interest. A person or group can be affected by a decision related to the project or its outcomes.

 Rights (legal or moral rights). Legal rights, such as occupational health and safety, may be deﬁned in the

legislation framework of a country. Moral rights may involve concepts of protection of historical sites or

environmental sustainability.

 Ownership. A person or group has a legal title to an asset or a property.

 Knowledge. Specialist knowledge, which can beneﬁt the project through more effective delivery of project

objectives, organizational outcomes, or knowledge of the power structures of the organization.

 Contribution. Provision of funds or other resources, including human resources, or providing support for the

project in more intangible ways, such as advocacy in the form of promoting the objectives of the project or

acting as a buffer between the project and the power structures of the organization and its politics.

 Document analysis. Described in Section 5.2.2.3. Assessing the available project documentation and lessons

learned from previous projects to identify stakeholders and other supporting information.

13.1.2.4 DATA REPRESENTATION

A data representation technique that may be used in this process includes but is not limited to stakeholder mapping/

representation. Stakeholder mapping and representation is a method of categorizing stakeholders using various

methods. Categorizing stakeholders assists the team in building relationships with the identiﬁed project stakeholders.

Common methods include:

 Power/interest grid, power/influence grid, or impact/influence grid. Each of these techniques supports

a grouping of stakeholders according to their level of authority (power), level of concern about the project’s

outcomes (interest), ability to inﬂuence the outcomes of the project (inﬂuence), or ability to cause changes to

the project’s planning or execution. These classiﬁcation models are useful for small projects or for projects with

simple relationships between stakeholders and the project, or within the stakeholder community itself.

513

 Stakeholder cube. This is a reﬁnement of the grid models previously mentioned. This model combines the

grid elements into a three-dimensional model that can be useful to project managers and teams in identifying

and engaging their stakeholder community. It provides a model with multiple dimensions that improves the

depiction of the stakeholder community as a multidimensional entity and assists with the development of

communication strategies.

 Salience model. Describes classes of stakeholders based on assessments of their power (level of authority or

ability to inﬂuence the outcomes of the project), urgency (need for immediate attention, either time-constrained

or relating to the stakeholders’ high stake in the outcome), and legitimacy (their involvement is appropriate).

There is an adaptation of the salience model that substitutes proximity for legitimacy (applying to the team and

measuring their level of involvement with the work of the project). The salience model is useful for large complex

communities of stakeholders or where there are complex networks of relationships within the community. It is

also useful in determining the relative importance of the identiﬁed stakeholders.

 Directions of influence. Classiﬁes stakeholders according to their inﬂuence on the work of the project or the

project team itself. Stakeholders can be classiﬁed in the following ways:

 Upward (senior management of the performing organization or customer organization, sponsor, and steering

committee),

 Downward (the team or specialists contributing knowledge or skills in a temporary capacity),

 Outward (stakeholder groups and their representatives outside the project team, such as suppliers,

government departments, the public, end-users, and regulators), or

 Sideward (the peers of the project manager, such as other project managers or middle managers who are in

competition for scarce project resources or who collaborate with the project manager in sharing resources

or information).

 Prioritization. Prioritizing stakeholders may be necessary for projects with a large number of stakeholders,

where the membership of the stakeholder community is changing frequently, or when the relationships between

stakeholders and the project team or within the stakeholder community are complex.

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13.1.2.5 MEETINGS

Meetings are used to develop an understanding of signiﬁcant project stakeholders. They can take the form of facilitation

workshops, small group guided discussions, and virtual groups using electronics or social media technologies to share

ideas and analyze data.

13.1.3 IDENTIFY STAKEHOLDERS: OUTPUTS

13.1.3.1 STAKEHOLDER REGISTER

The main output of the Identify Stakeholders process is the stakeholder register. This document contains information

about identiﬁed stakeholders that includes but is not limited to:

 Identification information. Name, organizational position, location and contact details, and role on the project.

 Assessment information. Major requirements, expectations, potential for inﬂuencing project outcomes, and the

phase of the project life cycle where the stakeholder has the most inﬂuence or impact.

 Stakeholder classification. Internal/external, impact/inﬂuence/power/interest, upward/downward/outward/

sideward, or any other classiﬁcation model chosen by the project manager.

13.1.3.2 CHANGE REQUESTS

Described in Section 4.3.3.4. During the ﬁrst iteration of identifying stakeholders, there will not be any change

requests. As stakeholder identiﬁcation continues throughout the project, new stakeholders, or new information about

stakeholders, may result in a change request to the product, project management plan, or project documents.

Change requests are processed for review and disposition through the Perform Integrated Change Control

(Section 4.6) process.

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13.1.3.3 PROJECT MANAGEMENT PLAN UPDATES

When stakeholders are identiﬁed at the very beginning of a project, there will not be updates to the project management

plan. As the project progresses, any change to the project management plan goes through the organization’s change

control process via a change request. Components that may require a change request for the project management plan

include but are not limited to:

 Requirements management plan. Described in Section 5.1.1.2. Newly identiﬁed stakeholders can impact how

requirements activities will be planned, tracked, and reported.

 Communications management plan. Described in Section 10.1.3.1. Stakeholder communication requirements

and agreed-upon communications strategies are recorded in the communications management plan.

 Risk management plan. Described in Section 11.1.3.1. Where stakeholder communication requirements and

agreed-upon communications strategies affect the approach to managing risk on the project, this is reﬂected in

the risk management plan.

 Stakeholder engagement plan. Described in Section 13.2.3.1. Agreed-upon communications strategies for

identiﬁed stakeholders are recorded in the stakeholder engagement plan.

13.1.3.4 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Assumption log. Described in Section 4.1.3.2. Much of the information about the relative power, interest, and

engagement of stakeholders is based on assumptions. This information is entered into the assumption log.

Additionally, any constraints associated with interacting with speciﬁc stakeholders are entered as well.

 Issue log. Described in Section 4.3.3.3. New issues raised as a result of this process are recorded in the

issue log.

 Risk register. Described in Section 11.2.3.1. New risks identiﬁed during this process are recorded in the risk

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13.2 PLAN STAKEHOLDER ENGAGEMENT

Plan Stakeholder Engagement is the process of developing approaches to involve project stakeholders based on their

needs, expectations, interests, and potential impact on the project. The key beneﬁt is that it provides an actionable plan

to interact effectively with stakeholders. This process is performed periodically throughout the project as needed.

The inputs, tools and techniques, and outputs of the process are depicted in Figure 13-4. Figure 13-5 depicts the data

ﬂow diagram for the process.

Figure 13-4. Plan Stakeholder Engagement: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

.1 Expert judgment

.2 Data gathering

• Benchmarking

.3 Data analysis

• Assumption and constraint

analysis

• Root cause analysis

.4 Decision making

• Prioritization/ranking

.5 Data representation

• Mind mapping

• Stakeholder engagement

assessment matrix

.6 Meetings

.1 Project charter

.2 Project management plan

• Resource management plan

• Communications

management plan

• Risk management plan

.3 Project documents

• Assumption log

• Change log

• Issue log

• Project schedule

• Risk register

• Stakeholder register

.4 Agreements

.5 Enterprise environmental

factors

.6 Organizational process assets

.1 Stakeholder engagement

plan

Plan Stakeholder Engagement

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Figure 13-5. Plan Stakeholder Engagement: Data Flow Diagram

• Project

charter

12.2

Conduct

Procurements

• Agreements

4.1

Develop

Project Charter

• Project charter

Project management plan

• Resource management plan

• Communications management plan

• Risk management plan

Project documents

• Assumption log

• Change log

• Issue log

• Project schedule

• Risk register

• Stakeholder register

Project

Management

Plan

Project

Documents

13.2

Plan

Stakeholder

Engagement

Enterprise/

Organization

• Enterprise environmental factors

• Organizational process assets

• Stakeholder engagement plan

Project

Management

Plan

518 Part 1 - Guide

An effective plan that recognizes the diverse information needs of the project’s stakeholders is developed early in the

project life cycle and is reviewed and updated regularly as the stakeholder community changes. The ﬁrst version of the

stakeholder engagement plan is developed after the initial stakeholder community has been identiﬁed by the Identify

Stakeholder process. The stakeholder engagement plan is updated regularly to reﬂect changes to the stakeholder

community. Typical trigger situations requiring updates to the plan include but are not limited to:

 When it is the start of a new phase of the project;

 When there are changes to the organization structure or within the industry;

 When new individuals or groups become stakeholders, current stakeholders are no longer part of the stakeholder

community, or the importance of particular stakeholders to the project’s success changes; and

 When outputs of other project process areas, such as change management, risk management, or issue

management, require a review of stakeholder engagement strategies.

The results of these adjustments may be changes to the relative importance of the stakeholders who have

been identiﬁed.

13.2.1 PLAN STAKEHOLDER ENGAGEMENT: INPUTS

13.2.1.1 PROJECT CHARTER

Described in Section 4.1.3.1. The project charter contains information on the project purpose, objectives, and success

criteria that can be taken into consideration when planning how to engage stakeholders.

13.2.1.2 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Resource management plan. Described in Section 9.1.3.1. The resource management plan may contain

information regarding roles and responsibilities of the team and other stakeholders listed in the stakeholder register.

 Communications management plan. Described in Section 10.1.3.1. The communications strategies for

stakeholder management and their implementation plans are both inputs to, and recipients of, information from

processes in Project Stakeholder Management.

 Risk management plan. Described in Section 11.1.3.1. The risk management plan may contain risk thresholds

or risk attitudes that can assist in the selection of the optimal stakeholder engagement strategy mix.

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13.2.1.3 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process, especially after initial planning has taken place,

include but are not limited to:

 Assumption log. Described in Section 4.1.3.2. The assumption log contains information about assumptions and

constraints and may be linked to speciﬁc stakeholders.

 Change log. Described in Section 4.6.3.3. The change log contains changes to the original scope of the project.

It usually links to speciﬁc stakeholders because they fall into categories of requesting certain changes, making

decisions about change requests, or being impacted by the implementation of approved changes.

 Issue log. Described in Section 4.3.3.3. Managing and resolving issues contained in the issue log will require

additional communications with the stakeholders affected.

 Project schedule. Described in Section 6.5.3.2. The schedule contains activities that may be linked to speciﬁc

stakeholders as owners or executors.

 Risk register. Described in Section 11.2.3.1. The risk register contains the identiﬁed risks of the project and usually

links them to the speciﬁc stakeholders as either risk owners or as subject to risk impact.

 Stakeholder register. Described in Section 13.1.3.1. The stakeholder register provides the list of project stakeholders

including additional classiﬁcation data and other information.

13.2.1.4 AGREEMENTS

Described in Section 12.2.3.2. When planning for the engagement of contractors and suppliers, coordination usually

involves working with the procurement/contracting group in the organization to ensure contractors and suppliers are

effectively managed.

13.2.1.5 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence Plan Stakeholder Engagement include but are not limited to:

 Organizational culture, political climate, and governance framework;

 Personnel administration policies;

 Stakeholder risk appetites;

 Established communication channels;

 Global regional or local trends, practices, or habits; and

 Geographic distribution of facilities and resources.

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13.2.1.6 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Plan Stakeholder Engagement process include but are

not limited to:

 Corporate policies and procedures for social media, ethics, and security;

 Corporate policies and procedures for issue, risk, change, and data management;

 Organizational communication requirements;

 Standardized guidelines for development, exchange, storage, and retrieval of information;

 Lessons learned repository with information about the preferences, actions, and involvement of stakeholders; and

 Software tools needed to support effective stakeholder engagement.

13.2.2 PLAN STAKEHOLDER ENGAGEMENT: TOOLS AND TECHNIQUES

13.2.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge

or training in the following topics:

 Politics and power structures in the organization and outside the organization,

 Environment and culture of the organization and outside the organization,

 Analytical and assessment techniques to be used for stakeholder engagement processes,

 Communication means and strategies, and

 Knowledge from previous projects of the characteristics of stakeholders and stakeholder groups and organizations

involved in the current project that may have been involved in previous similar projects.

13.2.2.2 DATA GATHERING

A data-gathering technique that can be used for this process includes but is not limited to benchmarking. Described

in Section 8.1.2.2. The results of stakeholder analysis are compared with information from other organizations or other

projects that are considered to be world class.

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13.2.2.3 DATA ANALYSIS

Data analysis techniques that can be used for this process include but are not limited to:

 Assumption and constraint analysis. Described in Section 11.2.2.3. Analysis of current assumptions and

constraints may be conducted in order to tailor appropriate engagement strategies.

 Root cause analysis. Described in Section 8.2.2.2. Root cause analysis identifies underlying reasons for

the level of support of project stakeholders in order to select the appropriate strategy to improve their level

of engagement.

13.2.2.4 DECISION MAKING

Decision-making techniques that can be used for this process include but are not limited to prioritization/ranking.

Stakeholder requirements need to be prioritized and ranked, as do the stakeholders themselves. Stakeholders with the

most interest and the highest inﬂuence are often prioritized at the top of the list.

13.2.2.5 DATA REPRESENTATION

Data representation techniques that may be used in this process include but are not limited to:

 Mind mapping. Described in Section 5.2.2.3. Mind mapping is used to visually organize information about

stakeholders and their relationship to each other and the organization.

 Stakeholder engagement assessment matrix. A stakeholder engagement assessment matrix supports

comparison between the current engagement levels of stakeholders and the desired engagement levels required

for successful project delivery. One way to classify the engagement level of stakeholders is shown in Figure 13-6.

The engagement level of stakeholders can be classiﬁed as follows:

 Unaware. Unaware of the project and potential impacts.

 Resistant. Aware of the project and potential impacts but resistant to any changes that may occur as a result

of the work or outcomes of the project. These stakeholders will be unsupportive of the work or outcomes of

the project.

 Neutral. Aware of the project, but neither supportive nor unsupportive.

 Supportive. Aware of the project and potential impacts and supportive of the work and its outcomes.

 Leading. Aware of the project and potential impacts and actively engaged in ensuring that the project

is a success.

522 Part 1 - Guide

In Figure 13-6, C represents the current engagement level of each stakeholder and D indicates the level that the

project team has assessed as essential to ensure project success (desired). The gap between current and desired for

each stakeholder will direct the level of communications necessary to effectively engage the stakeholder. The closing of

this gap between current and desired is an essential element of monitoring stakeholder engagement.

Figure 13-6. Stakeholder Engagement Assessment Matrix

13.2.2.6 MEETINGS

Meetings are used to discuss and analyze the input data of the stakeholder engagement planning process and to

develop a sound stakeholder engagement plan.

13.2.3 PLAN STAKEHOLDER ENGAGEMENT: OUTPUTS

13.2.3.1 STAKEHOLDER ENGAGEMENT PLAN

The stakeholder engagement plan is a component of the project management plan that identiﬁes the strategies and

actions required to promote productive involvement of stakeholders in decision making and execution. It can be formal or

informal and highly detailed or broadly framed, based on the needs of the project and the expectations of stakeholders.

The stakeholder engagement plan may include but is not limited to speciﬁc strategies or approaches for engaging

with individuals or groups of stakeholders.

Stakeholder Unaware Resistant Neutral Supportive Leading

Stakeholder 1

Stakeholder 2

Stakeholder 3

D C

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523

13.3 MANAGE STAKEHOLDER ENGAGEMENT

Manage Stakeholder Engagement is the process of communicating and working with stakeholders to meet their

needs and expectations, address issues, and foster appropriate stakeholder involvement. The key beneﬁt of this

process is that it allows the project manager to increase support and minimize resistance from stakeholders. This

process is performed throughout the project. The inputs, tools and techniques, and outputs of the process are depicted

in Figure 13-7. Figure 13-8 depicts the data ﬂow diagram for the process.

Figure 13-7. Manage Stakeholder Engagement: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

.1 Expert judgment

.2 Communication skills

• Feedback

.3 Interpersonal and team skills

• Conflict management

• Cultural awareness

• Negotiation

• Observation/conversation

• Political awareness

.4 Ground rules

.5 Meetings

.1 Project management plan

• Communications

management plan

• Risk management plan

• Stakeholder engagement

plan

• Change management plan

.2 Project documents

• Change log

• Issue log

• Lessons learned register

• Stakeholder register

.3 Enterprise environmental

factors

.4 Organizational process assets

.1 Change requests

.2 Project management plan

updates

• Communications

management plan

• Stakeholder engagement

plan

.3 Project documents updates

• Change log

• Issue log

• Lessons learned register

• Stakeholder register

Manage Stakeholder Engagement

524 Part 1 - Guide

4.6

Perform

Integrated

Change Control

• Project

charter

• Enterprise environmental factors

• Organizational process assets

• Change requests

Project

Management

Plan

Project

Documents

Project

Documents

13.3

Manage

Stakeholder

Engagement

Project documents updates

• Change log

• Issue log

• Lessons learned register

• Stakeholder register

Project

Management

Plan

Project management plan

• Communications management plan

• Risk management plan

• Stakeholder engagement plan

• Change management plan

Project documents

• Change log

• Issue log

• Lessons learned register

• Stakeholder register

Project management plan updates

• Communications management plan

• Stakeholder engagement plan

Enterprise/

Organization

Figure 13-8. Manage Stakeholder Engagement: Data Flow Diagram

Manage Stakeholder Engagement involves activities such as:

 Engaging stakeholders at appropriate project stages to obtain, conﬁrm, or maintain their continued commitment

to the success of the project;

 Managing stakeholder expectations through negotiation and communication;

 Addressing any risks or potential concerns related to stakeholder management and anticipating future issues

that may be raised by stakeholders; and

 Clarifying and resolving issues that have been identiﬁed.

Managing stakeholder engagement helps to ensure that stakeholders clearly understand the project goals, objectives,

beneﬁts, and risks for the project, as well as how their contribution will enhance project success.

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525

13.3.1 MANAGE STAKEHOLDER ENGAGEMENT: INPUTS

13.3.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Communications management plan. Described in Section 10.1.3.1. The communications management plan

describes the methods, formats, and technologies used for stakeholder communication.

 Risk management plan. Described in Section 11.1.3.1. The risk management plan describes the risk categories,

risk appetites, and reporting formats that can be used to manage stakeholder engagement.

 Stakeholder engagement plan. Described in Section 13.2.3.1. The stakeholder engagement plan provides

guidance and information on managing stakeholder expectations.

 Change management plan. Described in Section 4.2.3.1. The change management plan describes the process

for submitting, evaluating and implementing changes to the project.

13.3.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs to this process include but are not limited to:

 Change log. Described in Section 4.6.3.3. Change requests and their status are documented in the change log

and communicated to the appropriate stakeholders.

 Issue log. Described in Section 4.3.3.3. Any project or stakeholder concerns are documented in the issue log, as

well as any assigned action items associated with managing the issue.

 Lessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project with regard to

managing stakeholder engagement can be applied to later phases in the project to improve the efﬁciency and

effectiveness of this process.

 Stakeholder register. Described in Section 13.1.3.1. The stakeholder register provides the list of project

stakeholders and any information needed to execute the stakeholder engagement plan.

526 Part 1 - Guide

13.3.1.3 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Manage Stakeholder Engagement include but are not

limited to:

 Organizational culture, political climate, and governance structure of the organization;

 Personnel administration policies;

 Stakeholder risk thresholds;

 Established communication channels;

 Global, regional, or local trends, practices, or habits; and

 Geographic distribution of facilities and resources.

13.3.1.4 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Manage Stakeholder Engagement process include but are

not limited to:

 Corporate policies and procedures for social media, ethics, and security;

 Corporate policies and procedures for issue, risk, change, and data management;

 Organizational communication requirements;

 Standardized guidelines for development, exchange, storage, and retrieval of information; and

 Historical information from previous similar projects.

13.3.2 MANAGE STAKEHOLDER ENGAGEMENT: TOOLS AND TECHNIQUES

13.3.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge

or training in the following topics:

 Politics and power structures in the organization and outside the organization;

 Environment and culture of the organization and outside the organization;

 Analytical and assessment techniques to be used for stakeholder engagement processes;

 Communication methods and strategies;

 Characteristics of stakeholders, stakeholder groups, and organizations involved in the current project that may

have been involved in previous projects; and

 Requirements management, vendor management, and change management.

527

13.3.2.2 COMMUNICATION SKILLS

The methods of communication identiﬁed for each stakeholder in the communications management plan are applied

during stakeholder engagement management. The project management team uses feedback to assist in understanding

stakeholder reaction to the various project management activities and key decisions. Feedback may be collected in the

following ways, but not limited to:

 Conversations; both formal and informal,

 Issue identiﬁcation and discussion,

 Meetings,

 Progress reporting, and

 Surveys.

13.3.2.3 INTERPERSONAL AND TEAM SKILLS

Interpersonal and team skills that can be used for this process include but are not limited to:

 Conflict management. Described in Section 9.5.2.1. The project manager should ensure that conﬂicts are

resolved in a timely manner.

 Cultural awareness. Described in Section 10.1.2.6. Cultural awareness is used to help the project manager

and team to communicate effectively by considering cultural differences and the requirements of stakeholders.

 Negotiation. Described in Section 12.2.2.5. Negotiation is used to achieve support or agreement that supports

the work of the project or its outcomes and to resolve conﬂicts within the team or with other stakeholders.

 Observation/conversation. Described in Section 5.2.2.6. Observation/conversation is used to stay in touch with

the work and attitudes of project team members and other stakeholders.

 Political awareness. Described in Section 10.1.2.6. Political awareness is achieved through understanding the

power relationships within and around the project.

528 Part 1 - Guide

13.3.2.4 GROUND RULES

Ground rules, deﬁned in the team charter set the expected behavior for project team members, as well as other

stakeholders, with regard to stakeholder engagement.

13.3.2.5 MEETINGS

Described in Section 10.1.2.8. Meetings are used to discuss and address any issue or concern regarding stakeholder

engagement. Types of meetings that are beneﬁcial as part of this process include but are not limited to:

 Decision making,

 Issue resolution,

 Lessons learned and retrospectives,

 Project kick-off,

 Sprint planning, and

 Status updates.

13.3.3 MANAGE STAKEHOLDER ENGAGEMENT: OUTPUTS

13.3.3.1 CHANGE REQUESTS

Described in Section 4.3.3.4. As a result of managing stakeholder engagement, changes to the project scope or

product scope may emerge. All change requests are processed for review and disposition through the Perform Integrated

Change Control process (Section 4.6).

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529

13.3.3.2 PROJECT MANAGEMENT PLAN UPDATES

Any change to the project management plan goes through the organization’s change control process via a change

request. Components of the project management plan that may require a change request for the project management

plan include but are not limited to:

 Communications management plan. Described in Section 10.1.3.1. The communications management plan is

updated to reﬂect new or changed stakeholder requirements.

 Stakeholder engagement plan. Described in Section 13.2.3.1. The stakeholder engagement plan is updated to

reﬂect new or changed management strategies required to effectively engage stakeholders.

13.3.3.3 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Change log. Described in Section 4.6.3.3. The change log may be updated based on any change requests.

 Issue log. Described in Section 4.3.3.3. The issue log may be updated to reﬂect an update to, or the development

of, an issue log entry.

 Lessons learned register. Described in Section 4.4.3.1. The lessons learned register is updated with effective

or ineffective approaches to managing stakeholder engagement so that information can be used in the current

project or future projects.

 Stakeholder register. Described in Section 13.1.3.1. The stakeholder register may be updated based on new

information provided to stakeholders about resolved issues, approved changes, and general project status.

530 Part 1 - Guide

13.4 MONITOR STAKEHOLDER ENGAGEMENT

Monitor Stakeholder Engagement is the process of monitoring project stakeholder relationships and tailoring strategies

for engaging stakeholders through modiﬁcation of engagement strategies and plans. The key beneﬁt of this process is that

it maintains or increases the efﬁciency and effectiveness of stakeholder engagement activities as the project evolves and

its environment changes. This process is performed throughout the project. The inputs, tools and techniques, and outputs

of the process are depicted in Figure 13-9. Figure 13-10 depicts the data ﬂow diagram for the process.

Figure 13-9. Monitor Stakeholder Engagement: Inputs, Tools & Techniques, and Outputs

Tools & TechniquesInputs Outputs

.1 Data analysis

• Alternatives analysis

• Root cause analysis

• Stakeholder analysis

.2 Decision making

• Multicriteria decision

analysis

• Voting

.3 Data representation

• Stakeholder engagement

assessment matrix

.4 Communication skills

• Feedback

• Presentations

.5 Interpersonal and team skills

• Active listening

• Cultural awareness

• Leadership

• Networking

• Political awareness

.6 Meetings

.1 Project management plan

• Resource management plan

• Communications

management plan

• Stakeholder engagement

plan

.2 Project documents

• Issue log

• Lessons learned register

• Project communications

• Risk register

• Stakeholder register

.3 Work performance data

.4 Enterprise environmental

factors

.5 Organizational process assets

.1 Work performance

information

.2 Change requests

.3 Project management plan

updates

• Resource management plan

• Communications

management plan

• Stakeholder engagement

plan

.4 Project documents updates

• Issue log

• Lessons learned register

• Risk register

• Stakeholder register

Monitor Stakeholder Engagement

��

531

• Project

charter

4.3

Direct and

Manage

Project Work

• Work performance data

• Enterprise environmental factors

• Organizational process assets

• Change requests

• Work performance information

Project

Management

Plan

Project

Documents

Project

Documents

4.5

Monitor and

Control

Project Work

4.6

Perform

Integrated

Change Control

13.4

Monitor

Stakeholder

Engagement

Project documents updates

• Issue log

• Lessons learned register

• Risk register

• Stakeholder register

Project

Management

Plan

Project management plan

• Resource management plan

• Communications management plan

• Stakeholder engagement plan

Project documents

• Issue log

• Lessons learned register

• Project communications

• Risk register

• Stakeholder register

Project management

plan updates

• Resource management

plan

• Communications management plan

• Stakeholder engagement plan

Enterprise/

Organization

Figure 13-10. Monitor Stakeholder Engagement: Data Flow Diagram

532 Part 1 - Guide

13.4.1 MONITOR STAKEHOLDER ENGAGEMENT: INPUTS

13.4.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

 Resource management plan. Described in Section 9.1.3.1. The resource management plan identiﬁes the

methods for team member management.

 Communications management plan. Described in Section 10.1.3.1. The communications management plan

describes the plans and strategies for communication to the project’s stakeholders.

 Stakeholder engagement plan. Described in Section 13.2.3.1. Deﬁnes the plan for managing stakeholder

needs and expectations.

13.4.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

 Issue log. Described in Section 4.3.3.3. The issue log documents all the known issues related to the project and

stakeholders.

 Lessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project can be applied in

later phases of the project to improve the efﬁciency and effectiveness of engaging stakeholders.

 Project communications. Described in Section 10.2.3.1. These include the project communications that have

been distributed to stakeholders as deﬁned in the communications management plan and the stakeholder

engagement plan.

 Risk register. Described in Section 11.2.3.1. The risk register contains the identiﬁed risks for the project, including

those related to stakeholder engagement and interactions, their categorization, and list of potential responses.

 Stakeholder register. Described in Section 13.1.3.1. The stakeholder register contains stakeholder information

that includes but is not limited to stakeholder identiﬁcation, assessment, and classiﬁcation.

13.4.1.3 WORK PERFORMANCE DATA

Described in Section 4.3.3.2. Work performance data contains data on project status such as which stakeholders are

supportive of the project, and their level and type of engagement.

533

13.4.1.4 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can inﬂuence the Monitor Stakeholder Engagement process include but

are not limited to:

 Organizational culture, political climate, and governance framework;

 Personnel administration policies;

 Stakeholder risk thresholds;

 Established communication channels;

 Global, regional, or local trends, practices, or habits; and

 Geographic distribution of facilities and resources.

13.4.1.5 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can inﬂuence the Monitor Stakeholder Engagement process include but are

not limited to:

 Corporate policies and procedures for social media, ethics, and security;

 Corporate policies and procedures for issue, risk, change, and data management;

 Organizational communication requirement;

 Standardized guidelines for development, exchange, storage, and retrieval of information; and

 Historical information from previous projects.

13.4.2 MONITOR STAKEHOLDER ENGAGEMENT: TOOLS AND TECHNIQUES

13.4.2.1 DATA ANALYSIS

Data analysis techniques that can be used for this process include but are not limited to:

 Alternatives analysis. Described in Section 9.2.2.5. Alternatives analysis can be used to evaluate options to

respond to variances in the desired results of stakeholder engagement.

 Root cause analysis. Described in Section 8.2.2.2. A root cause analysis can be used to determine the basic

underlying reason that stakeholder engagement is not having the planned effect.

 Stakeholder analysis. Described in Section 13.1.2.3. The stakeholder analysis helps to determine the position

of stakeholder groups and individuals at any particular time in the project.

534 Part 1 - Guide

13.4.2.2 DECISION MAKING

Decision-making techniques that can be used for this process include but are not limited to:

 Multicriteria decision analysis. Described in Section 8.1.2.4. Criteria for successful stakeholder engagement

are prioritized and weighted to identify the most appropriate choice.

 Voting. Described in Section 5.2.2.4. Voting can be used to select the best response for a variance in stakeholder

engagement.

13.4.2.3 DATA REPRESENTATION

A data representation technique used in this process includes but is not limited to a stakeholder engagement

assessment matrix. Described in Section 13.2.2.3. The stakeholder engagement assessment matrix monitors stakeholder

engagement through tracking changes in level of engagement for each stakeholder.

13.4.2.4 COMMUNICATION SKILLS

Communication techniques that can be used for this process include but are not limited to:

 Feedback. Described in Section 10.2.2.3. Feedback is used to ensure that the information to stakeholders is

received and understood.

 Presentations. Described in Section 10.2.2.3. Presentations provide clear information to stakeholders.

13.4.2.5 INTERPERSONAL AND TEAM SKILLS

Interpersonal skills to that can be used for this process include but are not limited to:

 Active listening. Described in Section 10.2.2.6. Active listening is used to reduce misunderstandings and other

miscommunication.

 Cultural awareness. Described in Section 10.1.2.6. Cultural awareness and cultural sensitivity help the

project manager to plan communications based on the cultural differences and requirements of stakeholders

and team members.

 Leadership. Described in Section 3.4.4. Successful stakeholder engagement requires strong leadership skills to

communicate the vision and inspire stakeholders to support the work and outcomes of the project.

 Networking. Described in Section 10.2.2.6. Networking ensures access to information about levels of

engagement of stakeholders.

 Political awareness. Described in Section 10.1.2.6. Political awareness is used to understand the strategies

of the organization, understand who wields power and inﬂuence in this arena, and to develop an ability to

communicate with these stakeholders.

��

535

13.4.2.6 MEETINGS

Types of meetings include status meetings, standup meetings, retrospectives, and any other meetings as agreed

upon in the stakeholder engagement plan to monitor and assess stakeholder engagement levels. Meetings are no longer

limited by face-to-face or voice-to-voice interactions. While face-to-face interactions are ideal, they can be expensive.

Teleconferencing and technology bridge the gap and provide numerous ways to connect and conduct a meeting.

13.4.3 MONITOR STAKEHOLDER ENGAGEMENT: OUTPUTS

13.4.3.1 WORK PERFORMANCE INFORMATION

Described in Section 4.5.1.3. Work performance information includes information about the status of stakeholder

engagement, such as the level of current project support and compared to the desired levels of engagement as deﬁned

in the stakeholder engagement assessment matrix, stakeholder cube, or other tool.

13.4.3.2 CHANGE REQUESTS

Described in Section 4.3.3.4. A change request may include corrective and preventive actions to improve the current

level of stakeholder engagement. Change requests are processed for review and disposition through the Perform

Integrated Change Control process (Section 4.6).

13.4.3.3 PROJECT MANAGEMENT PLAN UPDATES

Any change to the project management plan goes through the organization’s change control process via a change

request. Components of the project management plan that may require a change request include but are not limited to:

 Resource management plan. Described in Section 9.1.3.1. Team responsibilities for stakeholder engagement

activities may need to be updated.

 Communications management plan. Described in Section 10.1.3.1. The project’s communication strategies

may need to be updated.

 Stakeholder engagement plan. Described in Section 13.2.3.1. Information about the project’s stakeholder

community may need to be updated.

536 Part 1 - Guide

13.4.3.4 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

 Issue log. Described in Section 4.3.3.3. Information in the issue log indicates stakeholder attitudes and may

need to be updated.

 Lessons learned register. Described in Section 4.3.3.1. The lessons learned register is updated with information

on challenges and how they could have been avoided. It is also updated with approaches that worked well for

engaging stakeholders optimally, and those that did not work well.

 Risk register. Described in Section 11.2.3.1. The risk register may need to be updated with responses to

stakeholder risks.

 Stakeholder register. Described in Section 13.1.12-13.1. The stakeholder register is updated with information

as a result of monitoring stakeholder engagement.

537

REFERENCES

[1] Project Management Institute. 2017. The Standard for Project Management. Newtown Square, PA: Author.

[2] Project Management Institute. 2013. The Standard for Portfolio Management – Third Edition. Newtown Square,

PA: Author.

[3] Project Management Institute. 2017. The Standard for Program Management – Fourth Edition. Newtown

Square, PA: Author.

[4] Project Management Institute. 2016. The PMI Lexicon of Project Management Terms. Available from

http://www.pmi.org/lexiconterms

[5] Project Management Institute. Code of Ethics and Professional Conduct. Available from

http://www.pmi.org/codeofethics

[6] Project Management Institute. 2013. Managing Change in Organizations: A Practice Guide. Newtown Square,

PA: Author.

[7] Project Management Institute. 2015. Business Analysis for Practitioners: A Practice Guide. Newtown Square,

PA: Author.

[8] Project Management Institute. 2014. Implementing Organizational Project Management: A Practice Guide.

Newtown Square, PA: Author.

[9] Project Management Institute. 2014. Project Management Institute Excellence in Practice-Research

Collaboration, PMI-RI Standards Program: Making Sense of PPP Governance, December 19, 2014. Newtown

Square, PA: Author

[10] Project Management Institute. 2016. Governance of Portfolios, Programs, and Projects: A Practice Guide.

Newtown Square, PA: Author.

[11] Project Management Institute. (2013). PMI’s Pulse of the Profession® In-Depth Report: The Competitive

Advantage of Effective Talent Management. Available from http://www.pmi.org

[12] Project Management Institute. 2015. White Paper, Complexity Management for Projects, Programmes,

and Portfolios: An Engineering Systems Perspective, March 2015. Newtown Square, PA: Author.

[13] Project Management Institute. 2014. Navigating Complexity: A Practice Guide. Newtown Square, PA: Author.

[14] Project Management Institute. 2016. Requirements Management: A Practice Guide. Newtown Square, PA: Author.

[15] Project Management Institute. 2006. Practice Standard for Work Breakdown Structures (WBS). Newtown

Square, PA: Author.

[16] Project Management Institute. 2011. Practice Standard for Scheduling – Second Edition. Newtown Square,

PA: Author.

[17] Project Management Institute. 2011. Practice Standard for Earned Value Management – Second Edition

[18] International Standards Organization. 2015. ISO 9000:2015 Quality Management Systems—Fundamentals

and Vocabulary. Geneva: Author.

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Part 2

The Standard for

Project Management

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541

INTRODUCTION

A standard is a document established by an authority, custom, or general consent as a model or example. This

standard was developed using a process based on the concepts of consensus, openness, due process, and balance. This

standard describes the processes considered to be good practice on most projects most of the time. These processes

are organized by Process Group. It further deﬁnes key project management concepts including the relationship of project

management to organizational strategy and objectives, governance, portfolio management, program management, the

project environment, and project success. It also covers information on project life cycles, project stakeholders, and

the role of the project manager. Section 1 discusses key concepts and provides contextual information about project

management. Sections 2 through 6 provide deﬁnitions for each of the ﬁve Process Groups and describe the processes

within those Process Groups. Sections 2 through 6 also describe the key beneﬁts, inputs, and outputs for each project

management process. This standard serves as the foundation and framework for A Guide to the Project Management

Body of Knowledge (PMBOK® Guide).1 PMBOK® Guide expands on the information in this standard by providing a more

in-depth description of the context, environment and inﬂuences on project management. In addition, the PMBOK® Guide

provides descriptions of the project management process inputs and outputs, identiﬁes tools and techniques, and

discusses key concepts and emerging trends associated with each Knowledge Area.

1 Project Management Institute. 2017. A Guide to the Project Management Body of Knowledge (PMBOK® Guide).

Newtown Square, PA: Author.

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1.1 PROJECTS AND PROJECT MANAGEMENT

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. Temporary does not necessarily mean a project has a short duration.

A project’s end is reached when the 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. The decision to terminate a project

requires approval and authorization by an appropriate authority.

Project management is the application of knowledge, skills, tools, and techniques to project activities to meet project

requirements. Project management is accomplished through the appropriate application and integration of the project

management processes identiﬁed for the project.

Managing a project typically includes but is not limited to:

 Identifying project requirements;

 Addressing the various needs, concerns, and expectations of stakeholders;

 Establishing and maintaining active communication with stakeholders;

 Managing resources; and

 Balancing the competing project constraints, which include but are not limited to:

 Scope,

 Schedule,

 Cost,

 Quality,

 Resources, and

 Risk.

Project circumstances will inﬂuence how each project management process is implemented and how the project

constraints are prioritized.

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1.2 RELATIONSHIPS AMONG PORTFOLIOS, PROGRAMS, AND PROJECTS

A portfolio is deﬁned as projects, programs, subsidiary portfolios, and operations managed in a coordinated manner

to achieve strategic objectives. Portfolio management is the centralized management of one or more portfolios to

achieve strategic objectives. Portfolio management focuses on ensuring the portfolio is performing consistent with the

organization’s objectives and evaluating portfolio components to optimize resource allocation. Portfolios may include

work that is operational in nature.

A program is deﬁned as related projects, subsidiary programs, and program activities managed in a coordinated

manner to obtain beneﬁts not available from managing them individually. Programs include program related work

outside the scope of the discrete projects in the program. Program management is the application of knowledge,

skills, and principles to a program to achieve the program objectives and to obtain beneﬁts and control not available

by managing related program components individually. Programs may also include work that is operational in nature.

Program management supports organizational strategies by authorizing, changing, or terminating projects and

managing their interdependencies. Managing project interdependencies may include, among other actions, the following:

 Resolving resource constraints and/or conﬂicts that affect components within the program;

 Aligning with the organization’s strategies that impact and affect program goals and objectives

 Managing issues and employing change management within a shared governance structure;

 Addressing project and program risks that can impact one or more components; and

 Managing program beneﬁts realization by effectively analyzing, sequencing and monitoring component

interdependencies.

A project may be managed in three separate scenarios: as a stand-alone project (outside a portfolio or program);

within a program; or within a portfolio. Project management has interactions with portfolio and program management

when a project is within a portfolio or program.

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Figure 1-1 illustrates a sample portfolio structure indicating relationships of the components, shared resources

and stakeholders. The portfolio components are grouped together in order to facilitate the effective governance and

management of that work and to achieve organizational strategies and priorities. Organizational and portfolio planning

impact the components by means of prioritization based on risk, funding, and other considerations. This allows

organizations to have an overall view of how the strategic goals are reﬂected in the portfolio; institute appropriate

portfolio, program, and project governance; and authorize human, ﬁnancial, or physical resources. These resources

will be allocated based on expected performance and beneﬁts. Figure 1-1 illustrates that organizational strategies

and priorities are linked and have relationships between portfolios and programs, between portfolios and projects, and

between programs and individual projects. These relationships are not always strictly hierarchical.

Organizational project management (OPM) is a strategy execution framework utilizing portfolio, program, and project

management. It provides a framework that enables organizations to consistently and predictably deliver on organizational

strategy, producing better performance, better results, and a sustainable competitive advantage.

Figure 1-1. Example of Portfolio, Program, and Project Management Interfaces

Organizational Strategy

Sample Portfolio

Project

9Operations

Shared Resources and Stakeholders

Program

Portfolio

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1.3 LINKING ORGANIZATIONAL GOVERNANCE AND PROJECT GOVERNANCE

There are various types of governance including organizational governance; organizational project management

(OPM) governance; and portfolio, program, and project governance. Organizational governance is a structured way to

provide direction and control through policies, and processes, to meet strategic and operational goals. Organizational

governance is typically conducted by a board of directors to ensure accountability, fairness, and transparency to its

stakeholders. Organizational governance principles, decisions, and processes may inﬂuence and impact the governance

of portfolios, programs, and projects in the following ways:

 Enforcing legal, regulatory, standards, and compliance requirements,

 Deﬁning ethical, social, and environmental responsibilities, and

 Specifying operational, legal, and risk policies.

Project governance is the framework, functions, and processes that guide project management activities in order to

create a unique product, service, or result to meet organizational, strategic, and operational goals. Governance at the

project level includes:

 Guiding and overseeing the management of project work;

 Ensuring adherence to policies, standards, and guidelines;

 Establishing governance roles, responsibilities, and authorities;

 Decision-making regarding risk escalations, changes, and resources (e.g. team, ﬁnancial, physical, facilities);

 Ensuring appropriate stakeholder engagement; and

 Monitoring performance.

The project governance framework provides the project stakeholders with structure, processes, roles, responsibilities,

accountabilities, and decision-making models for managing the project. Elements of a project governance framework

include but are not limited to principles or processes for:

 Stage gate or phase reviews;

 Identifying, escalating, and resolving risks and issues;

 Deﬁning roles, responsibilities, and authorities;

 Process for project knowledge management and capturing lessons learned;

 Decision making, problem solving and escalating topics that are beyond the project manager’s authority; and

 Reviewing and approving changes to project, and product changes that are beyond the authority of the

project manager.

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1.4 PROJECT SUCCESS AND BENEFITS MANAGEMENT

Projects are initiated to realize business opportunities that are aligned with an organization’s strategic goals. Prior

to initiating a project, a business case is often developed to outline the project objectives, the required investment, and

ﬁnancial and qualitative criteria for project success. The business case provides the basis to measure success and

progress throughout the project life cycle by comparing the results with the objectives and the identiﬁed success criteria.

Projects are typically initiated as a result of one or more of the following strategic considerations:

 Market demand,

 Strategic opportunity/business need,

 Social need,

 Environmental consideration,

 Customer request,

 Technological advancement,

 Legal or regulatory requirement, and

 Existing or forecasted problem.

A beneﬁts management plan describes how and when the beneﬁts of the project will be delivered and how they will

be measured. The beneﬁts management plan may include the following:

 Target benefits. The expected tangible and intangible business value to be gained by the implementation of the

product, service, or result.

 Strategic alignment. How the project beneﬁts support and align with the business strategies of the organization.

 Timeframe for realizing benefits. Beneﬁts by phase: short term, long term, and ongoing.

 Benefits owner. The accountable person or group that monitors, records, and reports realized beneﬁts throughout

the timeframe established in the plan.

 Metrics. The direct and indirect measurements used to show the beneﬁts realized.

 Risks. Risks associated with achieving target beneﬁts.

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The success of the project is measured against the project objectives and success criteria. In many cases, the success

of the product, service, or result is not known until sometime after the project is complete. For example, an increase in

market share, a decrease in operating expenses, or the success of a new product may not be known when the project is

transitioned to operations. In these circumstances, the project management ofﬁce (PMO), portfolio steering committee,

or some other business function within the organization should evaluate the success at a later date to determine if the

outcomes met the business objectives.

Both the business case and the beneﬁts management plan are developed prior to the project being initiated.

Additionally, both documents are referenced after the project has been completed. Therefore, they are considered

business documents rather than project documents or components of the project management plan. As appropriate,

these business documents may be inputs to some of the processes involved in managing the project, such as developing

the project charter.

1.5 THE PROJECT LIFE CYCLE

A project life cycle is the series of phases that a project passes through from its start to its completion. A project

phase is a collection of logically related project activities that culminates in the completion of one or more deliverables.

The phases can be sequential, iterative, or overlapping. The names, number, and duration of the project phases are

determined by the management and control needs of the organization(s) involved in the project, the nature of the project

itself, and its area of application. Phases are time bound, with a start and end or control point (sometimes referred to

as a phase review, phase gate, control gate, or other similar term). At the control point, the project charter and business

documents are reexamined based on the current environment. At that time, the project’s performance is compared to

the project management plan to determine if the project should be changed, terminated, or continue as planned.

548 Part 2 - Standard

The project life cycle can be inﬂuenced by the unique aspects of the organization, industry, development method, or

technology employed. While every project has a start and end, the speciﬁc deliverables and work that take place vary

widely depending on the project. The life cycle provides the basic framework for managing the project, regardless of the

speciﬁc work involved.

Though projects vary in size and the amount of complexity they contain, a typical project can be mapped to the

following project life cycle structure (see Figure 1-2):

 Starting the project,

 Organizing and preparing,

 Carrying out the work, and

 Closing the project.

Figure 1-2. Generic Depiction of a Project Life Cycle

Project Life Cycle

Generic Phases

Starting

the Project

Organizing

and Preparing

Carrying Out

the Work

Ending the

Project

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549

A generic life cycle structure typically displays the following characteristics:

 Cost and stafﬁng levels are low at the start, increase as the work is carried out, and drop rapidly as the project

draws to a close.

 Risk is greatest at the start of the project as illustrated by Figure 1-3. These factors decrease over the life cycle

of the project as decisions are reached and as deliverables are accepted.

 The ability of stakeholders to inﬂuence the ﬁnal characteristics of the project’s product, without signiﬁcantly

impacting cost and schedule, is highest at the start of the project and decreases as the project progresses

toward completion. Figure 1-3 illustrates the cost of making changes and correcting errors typically increases

substantially as the project approaches completion.

Figure 1-3. Impact of Variables Over Time

Risk

Cost of changes

Project Time

Low

High

Degree

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1.6 PROJECT STAKEHOLDERS

A stakeholder is an individual, group, or organization that may affect, be affected by, or perceive itself to be affected

by a decision, activity, or outcome of a project. Project stakeholders may be internal or external to the project, they may

be actively involved, passively involved, or unaware of the project. Project stakeholders may have a positive or negative

impact on the project, or be positively or negatively impacted by the project. Examples of stakeholders include but are

not limited to:

 Internal stakeholders:

 Sponsor,

 Resource manager,

 Project management ofﬁce (PMO),

 Portfolio steering committee,

 Program manager,

 Project managers of other projects, and

 Team members.

 External stakeholders:

 Customers,

 End users,

 Suppliers,

 Shareholders

 Regulatory bodies, and

 Competitors

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551

Figure 1-4. Examples of Project Stakeholders

Figure 1-4 shows examples of project stakeholders. Stakeholder involvement may range from occasional contributions

in surveys and focus groups to full project sponsorship that includes the provision of ﬁnancial, political, or other types

of support. The type and level of project involvement can change over the course of the project’s life cycle. Therefore,

successfully identifying, analyzing, and engaging stakeholders and effectively managing their project expectations and

participation throughout the project life cycle is critical to project success.

Project

Manager

Project Team

PPP Managers

Resource Managers

0. A Guide To Project Management Body Of Knowledge

0.%20A%20Guide%20to%20Project%20Management%20-%20Body%20of%20Knowledge

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