Category: Project Management

blog post, Project Management, Risk management

Managing the Owner’s risk

Today Mr. Renjith invited me for an informal discussion across a cup of garam chai. The first restaurant we planned was under renovation, as if they are gearing up for the post pandemic era. On the way to the next restaurant in Kochi city, we spotted many closed shops which could not survive the impact of the pandemic. It resembled a graveyard of small businesses. For a moment I thought about the owners. As an unpleasant coincidence, Renjith who attended my project management workshop (PMP) around ten years back wanted to discuss about a project to convert his property into a residential villa project. A property development company approached him and proposed a professional association with him to start this project. He wants to know the key risks of such a project and ways of managing them?.

High level risks to the land owner of the real estate development project

  1. There is a possibility of real estate prices shooting up in another 2 to 3 years time because there is a major road expansion project happening nearby. Budgets are already approved by the central government. This is a very positive risk. If the owner can leverage it, he can maximize the profits from the project.
  2. The revenue from the project or the benefits to Renjith must be much higher than the land cost before development. After taking the risk of starting this project, if the returns are not substantially higher than the land cost, then it is better not to do the project.
  3. If there are delays in getting approvals, the project can get delayed. That means, in reality there is a possibility of the projects real start date getting postponed resulting in a longer project duration than anticipated.
  4. If the project do not complete on time, the responsibility of answering the buyers concerns may get transferred to Renjith, the owner.
  5. Actual demand can be lower than the anticipated demand. On the contrary, the actual demand can be much higher than the anticipated demand as well.
  6. Exit criteria from the project in the unlikely event of either party unable to continue with the project is not clear
  7. The last but not least question is ‘How will you invest the money obtained from the project in the best possible way, which will provide better returns than holding the property for some more time.

These are just high level risks to the land owner of the real estate development project.

The key aspect of risk management to the land owner lies in the contract type selection. The possible types of contracts in this scenario are;

  • Outright sale of the land to the builder : In this case, the risk to the land owner is the least, provided he has another project ready to invest the money out of this project than just depositing it in the bank. The positive risk of land prices appreciating cannot be factored into this.
  • Variable pricing of the land : This is a good choice. Since this is not a standard practice, the modus operandi must be worked out in this case.
  • Per unit pricing : This is also a good option where the builder and land owner shares the revenue from the sale of each housing unit in the project. Again the details must be worked out.
  • Joint venture : This is applicable only if the land owner is willing to enter into the project as a full fledged partner of the project.

Choosing the right contract type is key here. Other actions to mitigate the risks are;

  • Credibility check of the developers and marketers
  • Appointing a consultant for project approvals to speed up the project initiation
  • Alternatives analysis
  • Value assessment
  • Learn lessons from past similar projects
  • Request for proposals, RFI so that the owner can learn from them
  • Adoption of agile project based cadence till the actual start with all approvals and drawings in place.

In a nutshell aggressive risk management during the pre-project phases, till the contract is inked with the contractors is important to maximize value to the owner in construction projects.

blog post, Mentoring, Project Management

Inspiring Careers – Dr. Kalirajan, Deputy Dean at L&T Institute of Project Management

About Dr. Kalirajan

As a visionary leader and a Project Management specialist, He brings with him over 33 years of progressive experience in managing challenging mega projects in power and infrastructure sector. His complete ownership for ROI accountability and passion for developing people make him an asset for any organization. A Doctorate in Concrete Technology with MBA and PMP Certified professional, he possess sound ability to lead and ramp up projects and ensure their timely completion within defined budget and quality guidelines while institutionalizing budgetary controls. He holds the distinction of turning around projects in crisis and ensuing their successful completion and acceptance. Adept at managing all facets of engineering project management, including construction management, site survey & execution, design engineering, tendering & contract administration and people management. He is presently into corporate training and development in the areas of project management, leadership and team building, strategy development etc. Linkedin profile

Integrated project monitoring and control, PMBOK7, Project Management

Unboxing PMBOK7 – Article 2

What is the point in completing a project on time, within budget and meeting the complete scope, if the product of the project does not provide value to the sponsor / owner?. The single biggest issue for project failure is lack of solid business case. Many projects have solid business cases while starting the project, and very often they become irrelevant due to environmental impacts. The unknown – unknown risk of the pandemic itself have made many travel and tourism related projects irrelevant. Projects are plagued by uncertainties like never before, and it is the responsibility of the project manager to navigate these complexities successfully and achieve the intended benefits from the product / service the project delivers.

The shift of the project success criteria from just meeting the time, cost and scope criteria to delivering value to the owner of the project is the biggest change in PMBOK7 when compared to the earlier versions of the PMBOK. As a true project manager, one has to ensure the value delivery. Projects are initiated to achieve certain business goals and it is the opportunity of the project manager to ensure the achievement of these goals by delivering the intended benefits for which the project is undertaken in the first place.

The PMBOK7 brings more clarity to the project manager’s role.

Project manager is ultimately responsible for the success and failure of the project. The project manager role demands active participation while deciding the project management approach which will help the project to eliminate all negative risks and maximize the benefits from the positive risks from the initiation till the closure of the project.

The project management team comprises of the Project controllers, Engineering managers, Architects, Team leaders, Project coordinators, Quality managers, Procurement managers, Risk managers . Resource managers, Communications managers etc.

The project teams comprises of the people who really execute the work

Till PMBOK7 shows the growth path for those who belong to the Project management teams at present to the true Project Manager who is at the helm of affairs and whose primary objective is to steer the project through all uncertainties and deliver the intended value to the project owner and end user.

Another key aspect of PMBOK7 is that it is general enough to be applied for any type of project with proper tailoring. It is a collection of Models, Methods & Artifacts that can be arranged / sequenced as per the project management approach of the project.

If we approach PMBOK7, with this as the context, then everything starts making sense.

Structure of PMBOK7

Values Principles Performance domains
ResponsibilityStewardshipStakeholders
Respect TeamTeam
Fairness StakeholdersDevelopment approach & Life cycle
Honesty ValuePlanning
Systems thinkingProject work
LeadershipDelivery
TailoringMeasurement
QualityUncertainty
Complexity
Risk
Adaptability & Resilience
Change Management

Most of the Inputs, Tools & Techniques from PMBOK6 with some new additions forms the section Mpdels, Methods & Tools in PMBOK7.

Models Methods Artifacts
Leadership models Data gathering & Analysis Strategy Artifacts
Communication models EstimatingLogs & Registers
Motivation models Meeting & Events Plans
Change models Other methods Hierarchy Charts
Complexity model Baselines
Project team development models Visual data and information
Other models Reports
Agreements & Contracts
Other artifacts

These models, methods and artifacts are linked to the performance domains. These linkages will be explained in the subsequent articles.

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

agile, blog post, Hybrid Project Management, Project Management, Trends in project management

The Hybrid Manifesto

Projects are neither completely predictive nor agile any more. They are hybrid in nature. That is the reality. So far, project management had two distinct streams, the Adaptive (Agile) and the Predictive (traditional). The purists believed in any one of the streams. They are busy justifying their views. Now, the industry has changed. Irrespective of the type of work, majority are working from home and that demands adoption of both agile and predictive best practices in the day to day work. That trend is here to stay. The Project Management Institute (PMI) was the front runner in this by including Agile in the Project Management Body of Knowledge four years back. This was followed by the new Scrum Guide 2021, which has become more generic. Scrum is the most popular among the Agile frameworks because of it’s adaptability to various disciplines of project management. According to Ken Schwaber and Jeff Sutherland, the founders of Scrum, they made the Scrum Guide 2021 more generic so that it becomes easier for all types of projects to adopt it. The trend is very clear. The boundaries between agile and predictive is vanishing, if not yet vanished.

Image by S. Hermann & F. Richter

Unfortunately, when I visited the Agile Manifesto Page, it still reads as ‘Agile manifesto for developing software’. From an EPC project practitioner’s perspective this is very demotivating. The engineering phases of any EPC project is a good candidate for agile adoption, but still the agile manifesto is maintained exclusively for software development. Like every other EPC person wanting to leverage agile I feel stranded and unsupported.

These two factors leads to the need for the Hybrid Project Management Manifesto;

The Hybrid Project Management Manifesto 

As practitioners of Professional Project Management, We believe that;

All projects are unique in nature,
Tailoring the processes, by incorporating the best from every project management framework is better for project success, than relying on any single framework. 

For this;
We will continuously update our knowledge and skills without any bias to any one particular project management framework,
We will always maintain an independent open view in all our actions to ensure project success. 


I am very optimistic about this, because there are many who opposes this view as well as those support this view. It is high time we stopped saying ‘Agile Vs Waterfall’, instead we must learn to say ‘Agile and Waterfall’ and for that the apt word is 'Hybrid'. Thanks to the traditionalists who contributed us with great tools like the critical path analysis, earned value management and the likes. These are time tested concepts which is here to stay. The agile practices like time boxing, the short term planning, daily team meetings, self organizing teams can be effectively used within phases of every project. That will result in a healthy co-existence.  Think of  burn down charts co-existing with earned value management and helping to protect the earned value.  Nothing is good or bad, the project context determines it’s suitability.

Hope Hybrid manifesto will help us to focus on the project’s success than worrying about the technicalities of frameworks.

The Hybrid manifesto is evolving. You can help with your suggestions.

Abrachan Pudussery

Domain Expert at Wrench Solutions