Category: PMBOK

blog post, certifications, Earned value, Earned Value Management, Integrated project monitoring and control, PMBOK, PMP certification, Project Management

Why PMP certified professionals earn 16% more than their counterparts?

Critical Success factors for project success

Projects are considered as successful, if they are completed on time, within budget, met the scope and achieved the business objectives of the project. How do we really achieve Poject sucess?

Initiation

  • Right Project Selection – If the project does not have a strong business case, it will fail eventually

Planning

  • Right project execution strategy (Agile, Waterfall, Hybrid) – A wrong project execution strategy can fail a project. For example, projects where scope is not clear, techno;ogy is new calls for agile / iterative development, till there is clarity. Once clarity is established, the rest of the project can follow waterfall or hybrid.
  • Right tools & techniques (Scheduling, Estimation, Project Management Information Systems) – On many occassions projects fail becuase the right tools are not used effectively.
  • Developing the subsidiary plans – Generally speaking, nothing good happens in projects without proper planning. For project success, one need to plan the following;
    • Quality management plan
    • Communications management plan
    • Procurement management plan
    • Resource management plan
    • Risk management plan
    • Schedule management plan
    • Stakeholder management plan
    • Change management plan
    • Configuration management plan
  • Developing the integrated project plan – For monitoring and controlling at a project level, all the subsidiary plans and the various other lower level plans must be integrated into a cohesive integrated project plan.

Execution

  • Executing the project as per the plan
  • Corrective and preventive actions

Monitoring & Controlling

  • Lag indicators
    • Schedule variance
    • Schedule performance index
    • Cost variance
    • Cost performance index
    • Scope variance
    • Quality issues
    • Risks occured
  • Lead indicators
    • Estmated date of completion (work package, milestone, project)
    • Estimated cost at completion
    • Anticipated risks

Closing

  • Closing phase
  • Closing project

A quick look at the PMP certification

  • Project Management Professional (PMP) is the most popular project management certification in the world. Right now, there are more than 1400000 PMP certfied professionals across the World. According to PMI Survey, PMP certified project professionals earn 16% more than their counterparts who are not PMP Certified.
  • The PMP certification is based on the Project Management Body Of Knowledge (PMBOK) by Project Management Institute (PMI,USA) . The PMBOK covers;
    • Predictive Project Management (Waterfall)
    • Agile Project Management (Adaptive)
    • Hybrid Project Management
  • Before applying for the PMP Certification, it is mandatory to attend 35 hours of formal project management training based on PMBOK.

Eligibility

OR

Exam content

People (42%)

  • Manage conflict
  • Lead a team
  • Support team performance
  • Empower team members and stakeholders
  • Build a team
  • Address and remove impediments
  • Negotiate
  • Collaborate with stakeholders
  • Build shared understanding
  • Engage and support virtual teams
  • Define team ground rules
  • Mentor relevant stakeholders
  • Application of emotional intelligence to improve team performance

Process (50%)

  • Execute project with the urgency required to deliver business value
  • Manage communications
  • Assess and manage project risks
  • Engage stakeholders
  • Plan and manage budget and resources
  • Plan and manage schedule
  • Plan and manage quality
  • Plan and manage scope
  • Integrate project planning activities
  • Manage project changes
  • Plan and manage procurements
  • Manage project artifacts
  • Determine appropriate project methodology
  • Establisg project governance structure
  • Manage project issues
  • Ensure knowledge transfer
  • Plan and manage project/phase closure or transitions

Business environment (8%)

  • Plan and manage project compliance (EHS)
  • Evaluate and deliver project benefits and value
  • Evaluate and address external business environment changes for impact on scope
  • Support organizational change

Why do PMP certified professionals earn 16% more than their counterparts?

  • They understand the critical parameters that must be monitored and controlled for project success
  • They understand the building blocks and their inter-relationships for monitoring and controlling the lead and lag indicators
  • They understand the need for Project Management Information Systems
  • They understand the globally accepted project management vocabulary, hence can communicate better
  • PMP certification is an endorsement for minimum viable professional project management knowledge to be effective in larger projects

Preperation for PMP with a right balance of theory and practice will tremendously crash the learning curve to master professional project management based on a globally recognized standard (PMBOK).

To learn more about the PMdistilled PMP Preperation Program, Click here

certifications, PMBOK, PMP certification, Project Management, Training

Ways to earn 35 PDU PMP training certificate prior to PMP Certification

Is it mandatory to attend courses from Authorised Training Providers (ATP) of PMI to qualify for PMP certification?

The good news is ‘No’. One can attend any instructor led course or self paced course covering the course content recommended by PMI with an end of the course formal assessment. That means, one can attend;

  • Training programs conducted by Universities
  • Training programs conducted by independent training organizations
  • Training programs offered by PMI Chapters
  • Self paced training programs offered by online education providers like coursera etc

In a nutshell, any course which satisfies the following criteria will qualify;

  • Must be of or above 35 hours duration
  • Must be formal
  • Must be supervised by a supervisor / mentor
  • Must cover the PMP syllabus
  • Must have an end of the course formal assessment with certificate

Here is the snapshot of our chat with PMI to verify which substantiates this;

blog post, Construction Project Management, PMBOK

Construction extension to the Project Management Body Of Knowledge

The Project Management Body Of Knowledge (PMBOK) comprises of the globally accepted project management best practices applicable to most of the projects, most of the time. The Construction Extension to the Project Management Body of Knowledge provides best practices relevant for construction projects. PMBOK construction extension is updated whenever a new version of the PMBOK is released. As you might already know, the new PMBOK is principle based and covers predictive, agile and hybrid project management. Construction extension (latest) is fully aligned to these approaches and at the same time have additional knowledge areas relevant for construction projects.

Comparison of Knowledge Areas

PMBOK (General) PMBOK (Construction)
Integration Management Integration Management
Scope Management Scope Management
Schedule Management Schedule Management
Cost Management Cost Management
Quality Management Quality Management
Resource Management Resource Management
Communications management Communications Management
Risk ManagementRisk Management
Procurement ManagementProcurement Management
Stakeholder Management Stakeholder Management
Project Health, Safety, Security & Environment (HSSE) Management
Project financial management

Though there is one to one mapping, the content within each knowledge area is more specific to construction projects in the construction extension to PMBOK Guide.

blog post, PMBOK, PMBOK7

Quick bridge to PMBOK7 from PMBOK6

Who should read this?

  • Those who prepared for PMP exam using PMBOK6 and writing the exam now
  • Those who know PMBOK6 and want to update their knowledge of PMBOK7 without going through all the pages of PMBOK7

If you fall into anyone of the above categories, please read further….

PMBOK7 is structured into;

  • Principles
  • Project Performance Domains
  • Models
  • Methods
  • Artifacts

If you want to know more about the structure and principles of PMBOK7, I request you to read the two earlier articles, before reading this one;

Unboxing PMBOK7 – Article1

Unboxing PMBOK7 – Article2

12 governing principles

  1. Stewardship – Be a diligent, respectful, and caring steward
  2. Team – Build a culture of accountability and respect
  3. Stakeholders – Engage stakeholders to understand their interests and needs.
  4. Value – Focus on value.
  5. Holistic Thinking – Recognize and respond to systems’ interactions.
  6. Leadership – Motivate, influence, coach, and learn.
  7. Tailoring – Tailor the delivery approach based on context.
  8. Quality – Build quality into processes and results.
  9. Complexity – Address complexity using knowledge, experience, and learning.
  10. Opportunities & Threats – Address opportunities and threats.
  11. Adaptability & Resilience – Be adaptable and resilient.
  12. Change Management – Enable change to achieve the envisioned future state.

8 Performance domains

  1. Stakeholders
  2. Team
  3. Development approach and life cycle
  4. Planning
  5. Project work
  6. Delivery
  7. Measurement
  8. Uncertainty

The governing principles and the performance domains are supported by the Models, Methods and Artifacts. If you know PMBOK6, you have already covered all the Methods & Artifacts of PMBOK7. Hence, our primary focus is on the Models, followed by some of the methods and artifacts.

True to the spirit of Agile, we want to reduce the amount of unwanted work not done. Hence we are not repeating the topics again, instead we are providing you with the page numbers of PMBOK7, which will help you to get familiarized with the new terms of PMBOK7.

Here are the list of topics with page numbers of PMBOK7, for your quick reference.

Now open PMBOK7, and skim through these topics, instead of reading the entire PMBOK7.

  • Emotional intelligence – Page 25
  • Conflict management – Page 29
  • Delivery cadence – Page 33
  • Hybrid approach – Page 36
  • Explicit and tacit knowledge – Page 77
  • Done drift – Page 85 last paragraph
  • Leading indicators, Lagging indicators – Page 96
  • Cycle time – Page 99
  • Que size – Page 99
  • Batch size – Page 99
  • Process efficiency – Page 99
  • Net promoter score – Page 103
  • Mood chart – Page 103
  • Regression analysis – Page 105
  • Throughput analysis – Page 105
  • Information radiators, Big visible charts – Page 108
  • Hawthorne effect – Page 112
  • Vanity metric – Page 112
  • Decoupling – Page 120
  • Tailoring – Page 137
  • Situational leadership II Page – 156
  • OSCAR model – Page 156
  • Rich communication – Page 157
  • Gulf of Execution and Evaluation – Page 158
  • Hygiene and motivational factors – Page 158
  • Intrinsic Vs Extrinsic motivation – Page 159
  • Theory of needs – Page 159
  • Theory X, Theory Y and Theory Z – Page 160
  • Managing change in organizations – Page 161
  • ADKAR Model – Page 161
  • 8 step process for leading change – Page 162
  • Virginia Satir Change Model – Page 163
  • Transition model – Page 163
  • Cynefin framework – Page 164
  • Stacy matrix – Page 165
  • Tuckman ladder – Page 166
  • Drexler/Sibbet team performance model – Page 167
  • Conflict model – Page 168
  • Think Win-Win – Stephen covey – Page 169
  • Planning – Page 170
  • Process groups – Page 170
  • Salience model – Page 171
  • Story map – Page 190
  • Infinite delivery infinite quantity (IDIQ) – Page 191

At the end of this exercise, you can be almost sure that there is no gap between your knowledge and PMBOK7 provided your knowledge about PMBOK6 is good.

Point to note

Do not delete PMBOK6. It is still a valuable reference document along with PMBOK7.

Best wishes

PMRI team

Integrated project monitoring and control, PMBOK, PMBOK7, Project Management, Trends in project management

PMBOK7 – Impact Analysis

Till yesterday, when people anxiously asked me about the changes in PMBOK7, my reply was in the form of another question –  ‘Can you execute a project without any one of the knowledge areas (listed below)?’. The answer is a unanimous ‘No’. So they are inevitable. They have to be there in the new version hidden somewhere. If you can master the 10 knowledge areas and their application in both predictive and agile project management, you are pretty much done with project management. That is my view.

I am glad that my views hold good after going through all the 370 pages of the new PMBOK7.

The Ten Knowledge Areas evolved from Version 1 to Version 6 of the Project Management Body of Knowledge;

  1. Project Integration Management
  2. Project Scope Management
  3. Project Schedule Management
  4. Project Cost Management
  5. Project Quality Management
  6. Project Risk Management
  7. Project Resource management
  8. Project Procurement management
  9. Project communications management
  10. Project stakeholder management

These are immortal. Projects cannot succeed without them. The sequences may vary.

The PMBOK7 looks like an apex manual explaining the;

  • 12 principles of professional project management (new)
  • 8 project performance domains (new)
  • Tailoring guidelines
  • Models, methods and artifacts (Not part of the PMBOK7 document, but accessible from the digital library, Old, taken from PMBOK6)

High level mind map of PMBOK7

PMBOK7 comprises of 12 principles, 8 performance domains, tailoring guidelines and the models, methods and artifacts contained in a digital library ‘PM Standards Plus’ maintained by PMI. The immediate thought can be, about the 10 knowledge areas, 5 process groups, 49 processes and the inputs, tools & techniques and the outputs of the PMBOK6. Where is the place for them in the PMBOK7. All of that is under the digital library ‘PM Standards Plus’. In essence, nothing is lost during the transition from PMBOK6 to PMBOK7, and at the same time 12 principles, Eight project performance domains and the tailoring guidelines sits on top of the digital library PMStandards Plus which is nothing but the PMBOK6 contents, that makes up the 10 knowledge areas evolved from version 1.0 till 6.

How will this impact the different stakeholders who comprise the project management community?

  • Impact on Practitioners – the organizations who have shaped their project management policies and procedures around the structure of PMBOK versions 1 to 6 will have the added opportunity to embrace value driven delivery which can accommodate the whole gamut of project management ranging from large infrastructure projects to research and development projects. Even if they do not change anything, nothing will be in contradiction to PMBOK7.
  • Impact on 12,0000 PMPs World Wide – Change will always push us outside our comfort zones. Initially there can be expectation mismatch and the frustration stemming out of it. Once one dig deeper, like me, they also will realize that the changes are more to the value system and structure, than to the content.
  • Impact on PMP trainers – PMP trainers who are good at both predictive and agile project management will not find it difficult. The ones, who have not yet understood the true spirit of agile may need to gain hands on experience on agile to really understand and explain value driven project management.
  • Impact on the new PMP aspirants – PMI, keeps on repeating the fact that the PMP aspirants can still use the PMBOK6 as the reference material. Going by the earlier revisions, even if one use PMBOK Version 5, it should not make much of a difference because the fundamentals of project management cannot be changed as it revolves around the famous Plan, Do, Check, Act cycle and around the 10 knowledge areas. If you have already completed your PMP preparatory training, then do not disrupt your preparation. Proceed with PMBOK6 as the basis. It will be good if you can go through the new PMBOK7 quickly to understand those new jargon (not many any way).
  • Impact on other Agile frameworks and certifications – If the PMBOK7 gets wider acceptance, and if the new PMPs are equally adept in both predictive and agile project management frameworks then other agile frameworks and certifications will face a strong contender in PMBOK7 and PMP2021. PMI themselves will be forced to stop the PMI-ACP, as it will become redundant within PMI’s portfolio.

Abrachan Pudussery (Aby)

Project Management Domain Expert, Wrench Academy

New 10 Week PMdistilled PMP Preparatory Program based on PMBOK7

blog post, PMBOK, PMP certification, Project Management

Unboxing PMBOK7 Article#1

This is the first of a series of unboxing PMBOK7 articles explaining PMBOK7 which will help the readers to bridge between PMBOK6 and Agile to PMBOK7 very easily. Again I want to reiterate the fact that the foundations of project management cannot be disrupted very easily. If you know the basics of predictive project management and agile project management, then it is only a matter of establishing a traceability to the PMBOK7 structure. PMI, the publishers of PMBOK have time and again highlighting the fact that PMBOK is only a reference material and need not be mastered and remembered end to end like every other reference material. With these Unboxing PMBOK7 articles, my goal is to make the transition from PMBOK6 to PMBOK7 as smooth as possible.

Structure of PMBOK 7

From PMBOK version 6 onwards, PMI was trying to catch up with Agile Project Management (APM) which is the most suitable for managing certain types of projects, especially those ones where the scope is continuously evolving and the technology component is fast changing. PMBOK Version 7 can be seen as a natural progression of it. Like the 12 Agile Principles, which are the foundation of all agile frameworks, PMBOK7 also has 12 governing principles at the apex level followed by other components as shown in the diagram below.

Click on the diagram to zoom

12 Governing Principles

At the apex level are the 12 governing principles. These 12 principles based on the project management professions ethics governs the actions and behaviors of project management practice regardless of whether one is following predictive or adaptive project management styles.

  1. Stewardship – Be a diligent, respectful, and caring steward
  2. Team – Build a culture of accountability and respect
  3. Stakeholders – Engage stakeholders to understand their interests and needs.
  4. Value – Focus on value.
  5. Holistic Thinking – Recognize and respond to systems’ interactions.
  6. Leadership – Motivate, influence, coach, and learn.
  7. Tailoring – Tailor the delivery approach based on context.
  8. Quality – Build quality into processes and results.
  9. Complexity – Address complexity using knowledge, experience, and learning.
  10. Opportunities & Threats – Address opportunities and threats.
  11. Adaptability & Resilience – Be adaptable and resilient.
  12. Change Management – Enable change to achieve the envisioned future state.

Project performance domains

The second level comprises of the project performance domains;

  1. Team
  2. Stakeholders
  3. Life cycle
  4. Planning
  5. Navigating uncertainty and ambiguity
  6. Delivery
  7. Performance
  8. Project work

Models, methods & artifacts for enabling outcomes

This section at the third level more or less looks like the Inputs, Tools & Techniques and Outputs re-grouped as models, methods and artifacts. For each project outcome we have a set of models, methods and artifacts which help to achieve the project outcome.

At the fourth level is the PMIstandards+ digital platform which will guide on the application of Models, methods and artifacts based on project type, development approach and industry sector.

changes-to-pmbok-guide-7th-edition PMBOK 7th Edition - Coming in August 2021 - What is changing?
Courtesy – Project Management Institute (PMI), USA

New 10 Week PMdistilled PMP Plan / Program based on PMBOK7

blog post, Earned Schedule Management, Earned Value Management, Forecasting, Methods, Monitoring and control, PMBOK, Project Management

Project Cost and Schedule forecasting

Schedule and Cost forecasting explained in detail.

  • Are we progressing as planned?
  • Are we completing the work within budget?
  • When will we complete the project?

These are the key questions we hear most of the time in project review meetings. Well implemented earned value management systems, provide answers to these questions at the press of a button.

Earned Value Management (EVM) is based on the analysis of the earned value of the project and comparing it with the planned value of the project. Earned value management is used to monitor and control both the schedule and cost. Earned value management (EVM) comprises of;

  1. Earned Value Analysis
  2. Variance Analysis
  3. Trend Analysis
  4. Reserve Analysis
  5. Corrective / Preventive actions
1. Earned Value Analysis :

The basic building blocks of earned value management are;

  • As on date, how much work we were supposed to complete? – Planned Value (PV)  – Also known as Budgeted Cost of Work Scheduled (BCWS) 
  • Out of that how much work did we complete? – Earned Value (EV) – Also known as Budgeted Cost of Work Performed (BCWP)
  • For the completed work how much did we spend? – Actual Cost (AC) – Actual Cost of Work Performed (ACWP)
2. Variance Analysis

Once we have the basic values of Planned Value (PV), which is also known as Budgeted Cost Of Work Scheduled (BCWS), Earned Value (EV), which is also known as the Budgeted Cost Of Work Performed (BCWP) and the Actual Cost (AC), which is also known as the Actual Cost Of Work Performed (ACWP), it is time to do the performance analysis.

  • Schedule Variance (SV) = EV – PV
  • Cost Variance (CV) = EV – AC
  • Schedule Performance Index (SPI) = EV/PV
  • Cost Performance Index (CPI) = EV/AC

As we can see in the diagram above, as on the review date, the Earned Value (EV) is lower than the Planned Value (PV). That means, the work has not progressed as planned. The actual cost (AC) is higher than the Earned Value (EV) and even the Planned Value (PV). That means, there is a big cost overrun. In an ideal situation, all the three lines should have intersected at the Planned Value (PV). In that scenario EV = PV = AC

  • Schedule Variance (SV) = EV – PV = 0
  • Cost Variance (CV) = EV – AC = 0
  • Schedule Performance Index (SPI) = EV / PV = 1
  • Cost Performance Index (CPI) = EV / AC = 1
  • If the SPI=1, then we can infer that the project is progressing as per the agreed upon schedule.
  • If the SPI >1, then the project is progressing at a rate which is more than planned.
  • If the SPI <1, then the project is lagging behind schedule wise.
  • Similarly. If the Cost Performance Index (CPI)=1, then we can infer that the work is getting completed as per the budget.
  • If the CPI <1, then the that indicates budget overrun.
  • If the CPI>1, then more work is getting accomplished than planned, with the same amount of money.
  • As a general rule of thumb, if the SPI and CPI is 1 or above 1, then the project is doing well schedule wise and cost wise.

As project managers, if we know the schedule variance (SV), Cost Variance (CV), almost real time, then we can monitor and control our projects effectively.

3. Trend Analysis

The variance analysis provides us with the current snapshot of the project. One can become more pro-active in managing and controlling the project, if the future trends of the project performance can be predicted with the present progress information. We use graphs and charts to do this.

At this stage, let me introduce these three additional terminologies;

1) Budget At Completion (BAC) – is the total approved budget of the project from the beginning of the project till the end of the project.

2) Estimate to Complete (ETC) – is the budget required to complete the balance work of the project. ETC = (BAC – EV).

In some cases, ETC is calculated as a bottom up re-estimate for the balance activities to be completed.

3) Estimate at Completion (EAC)

  • If all the future work can be expected to be completed as planned, then how much will it cost when we complete the project. EAC = AC + ETC = AC + (BAC-EV).
  • If the current trend is going to continue in the future as well, then EAC = AC+(BAC-EV) / CPI.
  • In some projects, where the schedule has an impact on the cost, for example, a delay in schedule incurs additional cost, then EAC = AC + (BAC-EV) / (CPI x SPI). In this case, CPI and SPI are given weightages like (80/20, 50/50 or some other based on the judgment of the project team).
4. Reserve analysis

While performing the cost control of the project, the reserve analysis of the contingency and management reserves monitored. This will help in utilising these reserves elsewhere is the project progress is satisfactory or in organizing additional reserves proactively.

5. Corrective and Preventive actions based on the to Complete Performance Index (TCPI)

What should be the target CPI, to be maintained for the balance work, in order to complete the project within budget.

TCPI = Work remaining / Funds remaining

(BAC-EV) / (BAC–AC) or it can be,

(BAC-EV) / (EAC-AC) if the EAC is approved by the management.

Earned Value Management brings in more visibility into the project, and helps us to be more pro-active.

So far our focus was on forecasting the Estimate At Completion (EAC). What about forecasting the Estimated Date Of Completion of the project?. The following seven minutes video explains schedule forecasting;

Abrachan Pudussery, Domain expert, Wrench Solutions

Reference – Project Management Body Of Knowledge by PMI, USA