Professional Documents
Culture Documents
Shivshanker Shenoy
PMP
www.PMExamSmartNotes.com
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Foreword
Whenever you had to study a 'heavy' book, did you wish for a simpler guide just to get the gist of the subject?
Something like a crash-course guide that you could go through and get a handle on the stuff?
I always thought about and looked for such resources whenever I had to study a new subject (the reason I love
Wikipedia). It was a similar feeling I had when I took up PMBOK book to study.
And when I was in a position to prepare a short guide, there was no time to waste.
So here is this guide in front of you. The very fact that you have decided to read this would mean that you might be
one of these
(a) seriously preparing for PMP or CAPM exam
(b) performing the duties of a project manager (project practitioner)
(c) simply curious to know about a systematic way of project management
You will not be disappointed.
Even the basic form of the foundation guide came to well over 200 pages, so I decided to split it into modules. One
covering project management basics and one each for the 10 knowledge areas, so you can pick up the one you wish
to understand and run through it easily.
This guide, of course, comes to you free of cost. The only aim of this guide is to provide you with a quick and succinct
account of project management concepts from PMBOK.
For all the details of concepts highlighted in this book, do visit www.PMExamSmartNotes.com blog. It will make your
exam preparation a breeze, I promise!
PS: This study guide is best viewed in 100% (or 1:1) resolution. Zooming out beyond this may slightly blur some of
visual representations.
Before moving to the content, I would like to take a moment to recommend a fast-track study resource I have used, which 1. ...saves you a ton of time on PMP or CAPM exam study
2. ...lets you study anytime, anywhere while traveling, eating, waiting in the queue you get the idea. Learn on PC or on
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3. fulfils the mandatory requirement to appear for the exam: 35hr project management education. This alone is
your return on investment!
4. saves you money as compared to contact classes out there that can cost as much as $2000+!
I am talking about PMPrepCast by Cornelius Fichtner!. You can view couple of sample chapters at Exam Resources section on
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Table of contents
What is a Project and how do you manage one? ................................................................................................................................................................. 8
What is process? ............................................................................................................................................................................................................................. 9
What is process group? .............................................................................................................................................................................................................. 12
What is Project Management? ................................................................................................................................................................................................. 14
10 Knowledge areas .................................................................................................................................................................................................................... 14
How are Project, Program and Portfolio related?
PMO
............................................................................................................................................................ 15
................................................................................................................................................................................................................................................ 15
.......................................................................................................................................................................................................... 20
schedules may stretch and the end date may move, but the project will end at some point.
Even if it is terminated prematurely!
Yes, a project can be closed mid-way for several reasons. One of the common reasons is when costs exceed the
benefits that project is expected to create.
Each of the above three instances creates
something unique - a Product (first scenario), a
Service (second scenario) or a Result (third scenario).
Spend a minute on the figure below. It shows a
project or a phase containing 5 process groups. We
shall see more details in subsequent lessons. The
background arrow indicates the sequence of
execution of processes in each of these process
groups, by the project manager or project
management team. Note the overlap, more details
on that in a bit.
What is a Process?
A process is any activity performed that helps
manage certain aspect of the project. For instance,
Identify Risks is a process using which, as the name
states, the project manager identifies all possible
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Inputs
Tools and Techniques
Outputs
Essentially, project management is all about knowing the processes. And executing them effectively, of course. There
are 47 processes defined in PMBOK, and they are grouped into two buckets - sliced and diced.
Which means to say that, any particular process falls into one of the Process Groups and one of the Knowledge Areas.
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As a Project Manager you will need to know about all these processes, what goes into each of the process, what
comes out of it, and how do you produce these output.
There is another way of grouping these 47 process and that is based on the specific knowledge area it takes to
execute the processes. Areas such as Scope, Risk, Human resources, Procurement and Stakeholders. We shall look at
these in detail in the next lesson.
For now, remember that there are these five process groups
Initiating
Planning
Executing
Monitoring and Controlling
Closing
What is a portfolio?
A portfolio is a collection of projects or programs managed together in order to gain a business benefit.
These programs or projects may or may not be related.
An example of portfolio would be - a clothing firm has a portfolio that serves strategic goals of improving the
effectiveness of IT, introducing new brand of teen-clothing, reducing inventory costs, and increasing user satisfaction.
Couple of points to remember the differences between Project, Program and Portfolio:
Project
Provides unique
Benefit
{Project-x}
Program
Contains related projects,
provides common outcome
and shared benefits
{project-1, project2,...project-X}
Portfolio
Achieves a business objective
PMO
There is an entity in an organization that helps manage Projects, Programs and Portfolios (the 3Ps).
it is called the Project Management Office (PMO).
The PMO in an organization sets up processes, guidelines and standards to manage these 3Ps. It also helps to share
resources, knowledge and best practices across projects in the organization. However, it is not uncommon for it to
manage a project completely on its own.
Types of PMO
There are different, broadly following three types are used:
Supportive PMO
As the name suggests they support you, the project manager, with templates, best practices and even training. This
type of PMO cannot have much control over how project is managed.
Controlling PMO
This type of PMO is a bit more involved with project management. It not only supplies necessary artifacts and
procedural help along with training, it demands compliance to the project management practices and methodologies
it prescribes. You need to provide constant feedback to PMO on the compliance and implement changes to practices
and methodologies it brings in from time to time.
Directive PMO
This type of PMO pretty much manages the project on its own and hence has complete control over how things are
done. Generally, whenever a new type of or larger scale project is taken up by the organization for the first time PMO
dons this role, to make sure that the project has high chances of success, and to set a benchmark for further such
projects in the organization.
Wait a sec. I got the difference between the 3Ps. My office has
an IT team that helps us with problems of our computers and
printers, and keeps our servers running all the time. They also
manage any issues with network connectivity and network
security. I have seen that team doing planning, work allocation
and holding status meetings. They do these all the time - there
is not a 'start and end date' though.
Is it a Project? Or a Program may be?
Definitely not a Portfolio.
I am not sure!
Image credit: emilylaurel
Great point!
These are ongoing activities in an organization that produce some sort of repetitive service. Such activities are called
Operations. Managing them is called Operations Management, or Business Process Management.
Consider few examples
Accounting operations of an enterprise
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Each leg represents a constraint, and an issue with any of the constraints may affect the entire project
deliverables, human resources, communication needs, risks, procurement of materials and services and managing
stakeholders needs. These aspects are termed by PMBOK as Knowledge Areas.
Managing a project involves dealing with constraints mainly scope, time, cost, quality, resources and risk we saw in
the earlier lesson on project constraints. Impact on one of the constraints likely will affect other(s).
Project management involves identifying true stakeholders, documenting right requirements, coming up with
optimized schedule, managing resources effectively, keeping costs in check, making project deliverables with accepted
level of quality, managing good relationship with stakeholders, keeping communication channels up and running,
ensuring procurement activities are running smooth, keeping top management abreast of project progress, churning
out right amount of project documentation, managing positive and negative risks well, managing changes to project
scope through change control process, updating various baselines, improving processes, and contributing to
organizational process assets.
Organizational Structures
Which management activities would you perform if you
have absolute control over everything on the project?
Yes, quite a lot of them. From managing people, to
delivery, to planning and execution, to keeping customer
as well as your own management happy with the progress
of the project.
In short, a project manager is responsible for everything
that is required to be done to make the project successful
(unless she works with Functional organization, we shall
see more of this later in this lesson).
Image credit: digital art/freedigitialphotos.net
In reality though, a project manager may not get to do all of these, or may be have to do more than these!. What she
can do actually depends on the type of organization her project has.
Functional Organization
...is where functional manager has complete control over the project. Project managers need to get a nod for pretty
much everything from functional managers, and they assist them in getting the work done. A sample org structure:
Functional manager decides everything - who works on the team, what is the budget, what is the plan, so on. Team
members report directly to the functional manager.
Weak-matrix Organization
is still structured around functional organization. Project managers have limited powers, such as chairing project
meetings, certain reporting functions - depending on the practices in the organization.
Balanced-matrix Organization
...is the one where management responsibilities are divided almost equally between functional and project manager.
Usually functional manager takes care of people management responsibilities and project managers take care of
project management responsibilities. If project manager has to make any decision about people she runs it by the
functional manager, and vice versa.
This organization can lead to situations where functional and project managers both may feel responsible for certain
management aspects, leading to issues that impact project delivery, cost and schedule!
Strong-matrix Organization
...is the most likely scenario is most of the organizations. A place where project managers feel a bit more comfortable
- they control good part of the decisions on the project, including selection of resources and decisions on the budget.
Resources need to be made available by the functional managers.
Inputs for performance reviews of team members are shared - project performance inputs from the project manager
and functional expertise related inputs from the functional manager.
Projectized Organization
...is the one where teams are organized around projects. Project manager takes complete responsibility of the project,
its deliverables and the team. Project team reports only to the project manager.
Consulting companies make use of this type of an organization. A team is assembled and a project manager is
assigned for each project. She executes the project without any interference from any of the functions. She gets to
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make all decisions such as budgeting, human resources management and communication planning. If such a project
requires functional expert(s) then PMO, sponsor or management will provide them to the project manager.
Composite Organization
Then there is a hybrid kind of organization called Composite Organization. This type evolves based on the needs to
have different control structure at different levels of the organization. Such needs could be temporary or permanent.
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