Old Wine in a New Bottle - Knowledge Century · 3 Topics for Discussion PMI Foundational Standards Top 10 changes from the Third Edition to the Fourth Edition of the PMBOK® Guide

Old Wine in A New Bottle?Old Wine in A New Bottle?Overview of PMBOK® Guide Overview of PMBOK® Guide ——Fourth EditionFourth Edition

Kevin Chui

Principal Consultant

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Copyright NoticeCopyright Notice

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PMI, PMP, PMBOK ARE SERVICE AND TRADEMARKS OF THE PROJECT MANAGEMENT INSTITUTE REGISTERED IN THE UNITED STATES AND OTHER NATIONS.

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Topics for DiscussionTopics for Discussion

PMI Foundational StandardsTop 10 changes from the Third Edition to the Fourth Edition of the PMBOK® GuideChapter by Chapter OverviewComments

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Good Practices in use today in Projects, Programs, or Portfolios

Organizational Best Practices

PMI Foundational StandardsPMI Foundational Standards

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Harmonization of PMI StandardsHarmonization of PMI Standards

Simultaneous roll-out of the following:A Guide to the Project Management Body of Knowledge (PMBOK® Guide)—Fourth EditionThe Standard for Program Management—Second EditionThe Standard for Portfolio Management—Second EditionOPM3®—Second Edition

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PMBOK® GuidePMBOK® Guide——Fourth EditionFourth Edition

PMBOK® Guide—Fourth Edition represents generally recognized good practice in the profession of project management.

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PMBOK® GuidePMBOK® Guide——Fourth Edition: Top Fourth Edition: Top Ten ChangesTen Changes

Control ScheduleSchedule Control

Estimate Activity ResourcesActivity Resource Estimating

Define ActivitiesActivity Definition

Sequence ActivitiesActivity Sequencing

Develop ScheduleSchedule Development

Estimate Activity DurationsActivity Duration Estimating

PMBOK® Guide—Third Edition

PMBOK® Guide—Fourth Edition

1. All process names are in a verb‐noun format

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2. A standard approach to discussing Enterprise Environmental Factors and Organizational Process Assets was employed.

Example of the new format:The following Enterprise Environmental Factors can influence the [xyz] process:

brief description of how it influences the processbrief description of how it influences the processbrief description of how it influences the process

This is not a complete list, but these factors should be considered on most projects.

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Enterprise Environmental Factors Enterprise Environmental Factors (EEF)(EEF)

Organization culture and structureGovernment or industry standards and regulationsExisting infrastructureExisting human resourcesPersonnel administrationCompany work authorization systemsMarketplace conditionsStakeholder risk tolerances

Political climateDatabases

Historical cost estimation dataRisk databaseIndustry data

Project Management Information Systems (PMIS)

An automated tool suite, groupware, a configuration management system or web based online automated systems

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Organizational Process Assets (OPA)Organizational Process Assets (OPA)

Processes and ProceduresStandards, policies, quality policies and proceduresProposal evaluation criteria, performance measurement criteriaTemplatesCommunication requirementsProject closure guidelinesFinancial control proceduresIssue and defect managementChange control proceduresRisk control procedures

Corporate Knowledge BaseProcess measurement databaseProject filesHistorical information and lessons learned knowledge baseIssue and defect management databasesConfiguration management knowledge basesFinancial databases

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3. Change requests clarified

Change requests now include:Change requestsCorrective actionPreventive actionDefect repair

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The Old “Direct and Manage Project The Old “Direct and Manage Project Execution” Process (Third Edition)Execution” Process (Third Edition)

Project management methodologyProject management information system (PMIS)

Tools & Techniques

Project management planApproved

Corrective actionsPreventive actions

Approved change requestsApproved defect repairValidated defect repairAdministrative closure procedure

Inputs

DeliverablesRequested changesImplemented change requestsImplemented

Corrective actionsPreventive actions

Implemented defect repairWork performance information

Outputs

4.4 Direct and Manage Project Execution

Directing the various technical and organizational interfaces that exist in the project to execute the work defined in the project management plan

139-13 v0901 All rights reserved © 2009

The New “Direct and Manage Project The New “Direct and Manage Project Execution” Process (Fourth Edition)Execution” Process (Fourth Edition)

Expert judgmentProject management information system

Tools & Techniques

Project management planApproved change requestsEnterprise environmental factorsOrganizational process assets

Inputs

DeliverablesWork performance informationChange requests Project management plan updatesProject document updates

Outputs


Performing the work defined in the project management plan to achieve the project’s objectives.

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4. The processes decreased from 44 to 42.

Process DeletionsDevelop Preliminary Scope Statement Plan Scope

Process Additions:Identify Stakeholders Collect Requirements

Combined Processes:Plan Purchases and Acquisitions and Plan Contract to Plan ProcurementsRequest Seller Responses and Select Sellers to Conduct Procurements

Process Groups

Knowledge AreasInitiating Planning Executing Monitoring &

Controlling Closing

4. Project Integration Management

4.1 Develop Project Charter

4.2 Develop Project Management Plan


4.4 Monitor and Control Project Work4.5 Perform Integrated Change Control

4.6 Close Project or Phase

5. Project Scope Management

5.1 Collect Requirements5.2 Define Scope5.3 Create WBS

5.4 Verify Scope5.5 Control Scope

6. Project Time Management

6.1 Define Activities6.2 Sequence Activities6.3 Estimate Activity Resources6.4 Estimate Activity Durations6.5 Develop Schedule

6.6 Control Schedule

7. Project Cost Management

7.1 Estimate Costs7.2 Determine Budget

7.3 Control Costs

8. Project Quality Management

8.1 Plan Quality 8.2 Perform Quality Assurance 8.3 Perform Quality Control

9. Project Human Resource Management

9.1 Develop Human Resource Plan 9.2 Acquire Project Team9.3 Develop Project Team9.4 Manage Project Team

10. Project Communications Management

10.1 identify Stakeholders 10.2 Plan Communications 10.3 Distribute information10.4 Manage Stakeholder Expectations

10.5 Report Performance

11. Project Risk Management

11.1 Plan Risk Management11.2 Identify Risks11.3 Perform Qualitative Risk Analysis11.4 Perform Quantitative Risk Analysis11.5 Plan Risk Responses

11.6 Monitor and Control Risks

12. Project Procurement Management

12.1 Plan Procurements 12.2 Conduct Procurements 12.3 Administer Procurements 12.4 Close Procurements

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Project management plan

Requirements management planCommunications management planRisk management planProcurement management planScope management planSchedule management planetc.

Project documentsAssumption logChange logRisk registerDuration estimatesResource requirementsSource selection criteriaetc.

5. Project Management Plan vs. Project Documents

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Scope StatementProduct scope descriptionProject deliverablesUser acceptance criteriaProject boundariesProject constraints Project assumptions

Project CharterProject purpose or justificationMeasurable project objectives and related success criteriaHigh-level requirementsHigh-level project descriptionSummary milestone scheduleSummary budget Project approval requirementsProject Manager, responsibility and authority levelAuthorizing person

6. Project Charter vs. Project Scope Statement

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Project Charter vs. Project Scope Project Charter vs. Project Scope StatementStatement

Project Charter Project Scope Statement

Addresses business needs, justifications, key risks, strategy, and other aspects of the project, including, scope, resources, cost, and schedule at a high level

Reiterates some elements of the project charter, with particular focus on project scope boundary, and the product of the project

Concerned mainly about “why”, and also “how”, “when”, “who”, and “how much”

Explains mainly “what” the project must deliver and do

Issued by project initiator or sponsor, typically external to the project organization

Developed from information provided by the initiator or sponsor, and by the PM team

Top executives are key audience Middle layer managers are key audience

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7. Deletion of Process Flow Diagrams

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8. Addition of Data Flow Diagrams

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9. Triple constraint expanded to include quality, resources and risk

Common project constraints:ScopeQualityScheduleBudgetResourcesRisk

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10. New appendix on interpersonal skills.

Identified skills: LeadershipTeam buildingMotivationCommunicationInfluencingDecision makingPolitical and cultural awarenessNegotiation

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Interpersonal Skills (1 of 2)Interpersonal Skills (1 of 2)

Effective communication.Interacting with others, socializing and networking; Being aware of the communication styles of other parties, personalities and cultural issues.

Leadership. Management is concerned with consistently producing results that stakeholders expect. Leadership involves establishing common goal, direction and vision, aligning, motivating, and inspiring people.

Motivation. Energizing people and build up good teamwork environment; Meeting project objectives while offering maximum self-satisfaction related to what people value most.

Team Building. Building a group of individuals, bound by a common sense of purpose, to work interdependently with each other.

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Interpersonal Skills (2 of 2)Interpersonal Skills (2 of 2)

Influencing. Being persuasive and getting other to cooperate towards common goals.

Decision Making. Able to use different problem solving techniques and decision making styles (such as command, consultation, consensus and random) under different constraints to come up with the most effective decision.

Negotiation and conflict management. Resolving conflicts in scope, cost, schedule, changes, contract T&C, resources.

Political and cultural awareness. Understanding the formal and informal structures of organizations and knowledge of power and politics, and get things done; Sensitive to cultural differences.

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Chapter 1: Introduction Chapter 1: Introduction

Managing a project typically includes…..Balancing the competing project constraints including, but not limited to:

ScopeQualityScheduleBudgetResourcesRisk

The specific project will influence the constraints on which the project manager needs to focus.

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Six Competing ConstraintsSix Competing Constraints

Scope

Quality

RiskBudget

Time

Competing Constraints

Resources

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Chapter 2: Project Lifecycles and Chapter 2: Project Lifecycles and Organization Organization

Aligned with other standards

A bit more on project life cycles

More detail on types of stakeholders

New graphics

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Concepts of PhasesConcepts of Phases

Phases based on geographical regionsE.g. Implementation of a global telecommunication network

Phase 1 North America (Feb-Apr)Phase 2 EMEA (Jul-Oct)Phase 3 Asia Pacific (Oct-Dec)

Phases based on nature of workE.g. Cleaning up a hazardous waste site

Phase 1 Facility decommissioningPhase 2 Waste removal/cleanupPhase 3 Landscaping

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PhasePhase--toto--Phase RelationshipPhase Relationship

Phase 1Facility decommissioning

Phase 3 Landscaping

Phase 2 Waste removal

Sequential

Overlapping

Product Implementation Phase Marketing Phase

Iterative

Agile methodology or R&D project

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Chapter 3: Project Management Chapter 3: Project Management Processes for a Project Processes for a Project

New graphic that shows project management process interactions

New process group graphics with more emphasis on the integrating processes

Process descriptions and Input/Output tables only

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Process Process GroupsGroupsInteractionInteraction

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Chapter 4: Project Integration Chapter 4: Project Integration Management Management

Deleted Develop Preliminary Scope Statement

Removed Project Selection Method under Develop Project Charter

Clarified Develop Project Management Plan

Strengthened the importance of Expert Judgment in all integration processes

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Old “Develop Preliminary Project Old “Develop Preliminary Project Scope Statement” Process (Third Ed)Scope Statement” Process (Third Ed)

Project management methodologyProject management information system (PMIS)Expert judgment

Tools & Techniques

Project charterProject statement of workEnterprise environmental factors (EEF)Organizational process assets (OPA)

Inputs

Preliminary project scope statement

Outputs

4.2 Develop Preliminary Project Scope Statement

Producing a preliminary high-level definition of the project using the Project Charter with other inputs to the initiating processes.

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Project Selection MethodsProject Selection Methods

Project Selection methods such asBenefit measurement methods (comparative approaches, scoring models, benefit contribution, economic models, e.g. ROI, IRR);Mathematical models, e.g. linear, nonlinear, dynamic, integer, or multi-objective programming algorithms;

are completely removed.

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Project Management PlanProject Management Plan

Subsidiary plansScope management planRequirements management planSchedule management planCost management planQuality management planProcess improvement planHuman resource planCommunication management planRisk management planProcurement management plan

BaselinesSchedule baselineCost baselineScope baselineQuality baseline

Other Important TopicsLevel and results of process tailoringChange management planConfiguration management planKey management reviews

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Project Integration ManagementProject Integration Management

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Chapter 5: Project Scope Chapter 5: Project Scope Management Management

Deleted Plan Scope

Added Collect Requirements

Outputs include:Requirements management planRequirements documentationRequirements traceability matrix

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Old “Scope Planning” Process (Third Old “Scope Planning” Process (Third Edition)Edition)

Expert judgmentTemplates, forms, standards

Tools & Techniques

EEFOPAProject charterPreliminary project scope statementProject management plan

Inputs

Project scope management plan

Outputs

5.1 Scope PlanningCreating a project scope management plan that documents how the project scope will be defined, verified and controlled, and how the WBS will be created and defined

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New “Collect Requirements” Process New “Collect Requirements” Process (Fourth Edition)(Fourth Edition)

InterviewsFocus groupsFacilitated workshopsGroup creativity techniquesGroup decision making techniquesQuestionnaires and surveysObservationsPrototypes

Tools & Techniques

Project charterStakeholder register

Inputs

Requirements documentationRequirements management planRequirements traceability matrix

Outputs

5.1 Collect Requirements

Defining and documenting stakeholders’ needs to meet the project objectives.

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Project Scope ManagementProject Scope Management

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Chapter 6: Project Time Chapter 6: Project Time Management Management

Deleted Activity on Arrow (AOA)

Three point estimating includes PERT equation

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Arrow Diagramming Method (ADM)Arrow Diagramming Method (ADM)

Activity on Arrow (AOA) – Uses arrows to represent activities and connecting nodes to show dependenciesADM uses finish-to-start dependencies only and uses dummy activities to show logical relationships

A B

DE

Start

FinishF

C

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PERT EquationPERT Equation

OptimisticPessimistic

Beta Distribution

Most Likely(used in CPM)

PERT Weighted Average =TO + 4 x TM + TP

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Probability ofOccurrence

Higher

Lower

Shorter LongerPossible Durations

PERT Standard Deviation = TP - TO6

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Project Time ManagementProject Time Management

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Chapter 7: Project Cost Management Chapter 7: Project Cost Management

Three point estimating includes PERT equation

Added to-complete performance index (TCPI) to Control Cost

Greater alignment with 5.5, 6.6 and 7.3

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ThreeThree--Point EstimatesPoint Estimates

Just like duration of an activity, PERT can also be applied to cost estimation to arrive at a better estimate.

Most likely CM

Optimistic CO

Pessimistic CP

Expected value CE = CO + 4 CM + CP6

Standard deviation σ = CP – CO

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EAC = AC + (BAC – EV)(CPI x SPI)

To Complete Performance Index (TCPI)(BAC – EV)(BAC – AC) (based on BAC)(BAC – EV)(EAC – AC) (based on EAC)

New EAC Calculation and TCPINew EAC Calculation and TCPI

TCPI =

TCPI =

Work Remaining

Budget Remaining

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Project Cost ManagementProject Cost Management

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Chapter 8: Project Quality Chapter 8: Project Quality Management Management

Added more graphics

More discussion on cost of quality

Deleted quality baseline

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The Cost of QualityThe Cost of Quality

Cost of Conformance

PreventionDesign reviewsTrainingPlanningProcess studies

InspectionProduct inspectionsLab testsVendor controls

Cost of Non-Conformance

InternalScrap / reworkRepairDowntime

ExternalCustomer returnsCustomer complaintsTarnished brand name

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Project Quality ManagementProject Quality Management

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Chapter 9: Project Human Resources Chapter 9: Project Human Resources Management Management

Added information on interpersonal skillsStages of team buildingConflict managementLeadershipInfluencingDecision making

Moved Manage Project Team from monitoring and controlling to executing

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Five Stages of Team DevelopmentFive Stages of Team Development

Five stages of team development:

Forming

Storming

Norming

Performing

Adjourning

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Conflict ManagementConflict Management

Six techniques for conflict resolution:Withdrawing / AvoidingSmoothing / AccommodatingCompromisingForcingCollaboratingConfronting / Problem Solving

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Project Human Resources ManagementProject Human Resources Management

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Chapter 10: Project Communication Chapter 10: Project Communication Management Management

Added Identify Stakeholders

Outputs include:Stakeholder registerStakeholder management strategy

Changed process to Manage Stakeholder Expectations

Moved from monitoring and controlling to executing.

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Identify StakeholdersIdentify Stakeholders

Stakeholder analysisExpert judgment

Tools & Techniques

Project charterProcurement documentsEnterprise environmental factorsOrganizational process assets

Inputs

Stakeholder registerStakeholder management strategy

Outputs

10.1 Identify StakeholdersIdentifying all people or organizations impacted by the project, and documenting relevant information regarding their interests, involvement, and impact on project success.

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Stakeholder RegisterStakeholder Register

Identified stakeholders – Who? Role? Contact?Assessment information – Major requirements? Main expectations? Potential influence?Stakeholder classification – internal/external? Supporter/neutral/resistor? Influencer/decision maker?

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Manage Stakeholder ExpectationsManage Stakeholder Expectations

Communications methodsInterpersonal skillsManagement skills

Tools & Techniques

Stakeholder registerStakeholder management strategyProject management planIssue logChange logOrganizational process assets

Inputs

Organizational process assets updatesChange requestsProject management plan updatesProject document updates

Outputs

10.4 Manage Stakeholder Expectations

Communicating and working with stakeholders to meet their needs and addressing issues as they occur.

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Project Communication ManagementProject Communication Management

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Chapter 11: Project Risk Chapter 11: Project Risk Management Management

Minor editorial changes.

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Project Risk ManagementProject Risk Management

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Chapter 12: Project Procurement Chapter 12: Project Procurement Management Management

Went from 6 processes to 4 processes

Renamed processes to center around procurements

Discussed teaming agreements

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Old “Project Procurement Management” Old “Project Procurement Management” (Third Edition)(Third Edition)

PROJECT PROCUREMENTMANAGEMENT

12.1Plan Purchases& Acquisitions

12.2Plan Contracting

12.3Request Seller

Responses

12.4Select Sellers

12.6ContractClosure

12.5Contract

Administration

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New “Project Procurement Management” New “Project Procurement Management” (Fourth Edition)(Fourth Edition)

PROJECT PROCUREMENTMANAGEMENT

12.1Plan

Procurements

12.2Conduct

Procurements

12.3Administer

Procurements

12.4Close

Procurements

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Teaming AgreementTeaming Agreement

Legal contractual agreements to form a partnership or joint ventureThe seller may already be working under some form of interim contractWhenever in effect

Roles of buyer and seller are predetermined,Competition requirements, and other critical issues are generally predefined,Buyer and seller collectively prepare a procurement SOW to meet the requirements of the project.

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Project Procurement ManagementProject Procurement Management

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CommentsComments (1 of 2)(1 of 2)

Represents a minor incremental revision compared to previous revision.Changes I like:

Consolidation of change requests, corrective action, preventive action, and defect repair into one single “Change Requests”;Deletion of process flow diagrams, and addition of data flow diagrams;Deletion of “Develop Preliminary Project Scope Statement”;Addition of “Identify Stakeholders” and “Collect Requirements”.

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Comments (2 of 2)Comments (2 of 2)

Changes I don’t like:Too much reliance on “Expert Judgment” as tools and techniques;“Issue log” not properly highlighted, and confusion remains (input/output or tools & techniques?);Removal of Project Selection Method from project initiation;Project Communication Management chapter still stays at a very high level, not able to provide more insights regarding soft skills required.

Fifth Edition trendWill “Stakeholder Management” become a new knowledge area?

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PMBOK® GuidePMBOK® Guide——Fourth Edition: Fourth Edition: Impact on Credentials Impact on Credentials

31 August 2009PgMP®

31 August 2009PMI-RMPSM

31 August 2009PMI-SPSM

31 July 2009CAPM®

30 June 2009PMP®

Examination UpdatedCredential

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PMBOK® GuidePMBOK® Guide——Fourth Edition: PMI Fourth Edition: PMI Published TranslationsPublished Translations

ArabicChinese (Simplified)GermanFrenchItalian

* All translations are scheduled to be published Q2 2009

JapanesePortuguese (Brazilian)RussianSpanishKorean

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THANK YOU!THANK YOU!

Kevin [email protected](852) 2287 5190

Web: www.knowledgecentury.comBlog: http://knowledgecentury.blogspot.com/

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