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Project Communications Management

The topic of project communications management is interesting because although it gets little focus on the examination (there are less than eight questions on this topic), it almost always ranks as one of the management areas students and professionals consider the most important for the success of a project. Although there may be few questions that are directly from this chapter, there will be other topics in other knowledge areas that can be found under the heading of communication. (For instance, lessons learned are a form of written historical communication.) Although there are certainly several topic areas on the examination and in the text that are valuable.

the processes required to ensure timely and appropriate generation, collection, dissemination, storage, retrieval, and ultimate disposition of project information. It provides critical links among people and information that are necessary for project success." As with any form of management, the ability to receive and understand information, send clear and correct information, analyze incoming information, and get data in a form where the data can become useful information are key parts of a manager's function in any capacity, be it project or general management. The professional manager will always have critical tasks that involve communication. As a matter of fact, there are very, very few tasks that a manager does that do not have a component of communication in them.

Managing the Project Team

Managing the project team involves "tracking team member performance, providing feedback, resolving issues, and coordinating changes to enhance project performance". As a result of managing the project team, the staffing management plan is updated, issues are resolved, change requests are submitted, and lessons learned are added to the organization's database if one is available. This topic is as complex and "hard" as any that the project manager has to face.

The inputs to managing the project team are organizational process assets, project staff assignments, roles and responsibilities, project organization charts, the staffing management plan, team performance assessment, work performance information, and performance reports. All of these have been discussed earlier.

The tools and techniques for managing the project team are observation and conversation, project performance appraisals, conflict management, and the issue log. As with all types of management, it is important to work directly with project members and to have personal interaction with them instead of just waiting for reports. Observation and conversation are two important parts of managing the project team. In fact, these are a major part of the management style known as MBWA, Management by Walking Around. As your project progresses, interpersonal management will keep you informed of how your team members are feeling and the ways in which you can help them be better at their jobs. No job is more important than this in project management.

How complex or simple the performance appraisals are will depend on the complexity of the project, labor contract requirements, any organizational policies that apply, and the length of the project. Some may be formal. These will generally be structured by the organization itself to get information about your project team. Other appraisals may be informal, particularly if the appraisals are ad hoc as you are doing MBWA.

If your performance appraisals are formal, you should begin with a set of objectives for the appraisal. Written documents are used for the most part in formal appraisals, and these documents should help you reach the objectives you set for the appraisal. During formal appraisals, you should give feedback to the team member. This feedback can be negative or positive, depending on performance. A management technique that works well is to give positive feedback before and after the negative. This is known as the "sandwich" technique, where you put negative feedback in between positive feedback. Do not be worried about negative feedback. Most people know when they have done something that is negative. Just make sure that you have it documented and can deliver the criticism without making it personal. Try to have positive ways to correct the actions when you do a performance report. In fact, this would be a good time to set personal objectives for the team member. Write these down and bring them up again when you have your next formal appraisal meeting.

Conflict management, if successful, can result in a better team performance. The more formal the ground rules and role definition are, the less conflict there may be. At first, it is a good idea to have the team members try to work out their own differences. If this is not possible, you should address the problem early and use a collaborative approach. It is important that you do not compromise when working on a conflict. Compromise is likely to make all parties unhappy and will not solve the conflict; it will merely keep it going until a later date. If you have continuing conflicts, you may have to use disciplinary actions or actions suggested by the organization for conflict resolution.

How to Acquire Project Team ?


Acquiring a project team is the process of getting the resources necessary to execute the project. There are five inputs into acquiring the project team: enterprise environmental factors, organizational process assets, roles and responsibilities, project organization charts, and the staffing management plan. All of these were discussed in the last section.

The only topic that has been expanded upon is that of the enterprise environmental facts. The areas of discussion are now labeled:


Availability When are people available, and who are they?



Ability What skill sets do these people have?



Experience How much experience do the people assigned to the project have?



Interests Are the project team members interested in their assigned tasks?



Costs How much will the project team members be paid?


The tools and techniques used in acquiring the project team include pre-assignment, negotiation, acquisition, and virtual teams. Pre-assignment simply means that some members of the project team were selected before the project started. This can happen because of a contract or because a special skill set is needed.

Negotiation is a very important part of the project manager's daily duties. The project manager may have to negotiate with the line managers for his or her project team in order to make certain that they will be available when it will fit best for project execution. He or she may also have to negotiate with other project teams, particularly if special skill sets are used in both the projects and resources for these skills are scarce.

Acquisition of project team members will occur when there are no in-house resources that have the skills necessary to complete tasks within the project. In this case, the organization will use outsourcing to fill the needs.

Virtual teams are defined by the us as teams who fulfill their roles with little or no time spent meeting face-to-face. There are many different ways virtual teams occur in organizational life. The first will be if the members of the project team are not located in the same area. Multinational projects are an example. Another reason for a virtual team can be that someone with a special skill works in another place geographically but communicates electronically. There may be issues for handicapped personnel that prevent them from working on-site. And finally, projects that would normally be discontinued because of travel costs can be done using virtual teams.


Human Resource Planning

Human Resource Planning

The first of the process groups in project human resource management is human resource planning. According to PMBOK, this determines "roles, responsibilities, and reporting relationships, and creates the staff management plan." The roles and responsibilities can be for either a group of people or an individual. The groups may be internal, or they may be a contracted project management firm. In the case of the latter, it is absolutely necessary that the roles of the people as well as their responsibilities be documented before beginning the project.

With internal groups, the overall organizational policies and structures apply. So too do the roles and responsibilities and the reporting relationships that the team members have within the organization. The structure of reporting lines is extremely important for the project manager to consider because this will determine how the project manager handles the team.

For the most part, an internal project manager does not have complete control over the project team. The various team members with their variety of skill sets usually report to managers in the functional area they represent. As we discuss types of power later in this chapter, you will see how important this issue is for the project manager to consider and manage. Often the external or contracted project manager, if he or she is running his or her own contracted project team, will have control over the entire function of the team. This is one of the major differences in a project manager's span of control.

Project Plan Development

Taking the results of other planning processes and putting them into a consistent, coherent document that can be used to guide both project execution and project control. It includes:
The project mgt processes selected by the project mgt team
The level of implementation of each selected process
The descriptions of the tools and techniques to be used for accomplishing those processes
How the selected processes will be used to manage the specific project.
How work will be executed to accomplish the project objectives
How changes will be monitored and controlled
How configuration mgt will be performed
The need and techniques for comm. among stakeholders

Develop Preliminary Project Scope Statement

The project scope statement is the definition of the project. What needs to be accomplished? A project scope statement includes:

Project and product objectives
Product or service requirements and characteristics
Product acceptance criteria
Project boundaries
Project requirements and deliverables
Project constraints & assumptions
Initial project organization
Initial defined risks
Schedule milestones
Initial WBS
Order of magnitude cost estimate
Project configuration mgt requirements
Approval requirements

Develop Project Charter - Tools & Techniques

Project selection methods: As a project manager you may not be involved in selecting a project but you should know the selection method. There are two main types of Project Selection Methods.
Benefits Measurement Methods: These project selection methods involve comparing the values of one project against another. There are the following type of Benefit Measurement project selection techniques -
Murder Boards - This involves a committee asking tough questions from each project
Scoring Models - Different projects are given scores based on certain defined criteria. Project with higher score is selected.
Benefits Cost Ratio - This technique involves computing benefits to cost ratio (BCR) for a project. Project with higher BCR is selected.
Payback period - This technique involves considering how long it takes back to "pay back" the cost of the project. Inflation or interest earned in not considered in this technique. A project with lower pay back period is better.
Discounted Cash Flow - This technique takes into account the interest earned on the money. The Future Value (FV) of projects is compared.
FV=PV(1+i)n
PV is the present value of the project. A project with higher present value is better.
Internal Rate of Return (IRR) - A project that has higher IRR is better, as it is giving higher return on money.
Constrained Optimization Methods: These Project selection methods are used for large projects. These are techniques based on mathematical models. The Constrained Optimization techniques are -
Linear Programming
Non-Linear Programming
Integer Algorithm
Dynamic Programming
Multi-objective Programming

What is a Project Office?

A formal structure that supports project mgt within an organization and usually takes one of three forms:
Providing the policies, methodologies and templates for managing projects within the organization.
Providing support and guidance to others in the organization on how to manage projects, training others in project mgt or project mgt software and assisting with specific project mgt tools.
Providing project managers for different projects and being responsible for the results of the projects. All projects (or projects of a certain size, type or influence) are managed by the Project Office.

Difference between Projects and Operations


Operations are ongoing and repetitive where as Projects are unique and non-repetitive.
Normal operations would produce Standard product or service where as Projects would produce Unique product or service
Projects are temporary and have defined start and end where as operations are indefinite and don't have a defined start and end.
Projects are executed by a hydrogenous teams where as operations may be executed by homogenous teams.

Why do we need Project Mgt


Exponential expansion of human knowledge
Global demand for goods and services
Global competition
Team is required to meet the demand with quality and standard.
Improved control over the project
Improved performance
Improved budget and quality

Describing Project Selection Methods

For the purposes of the exam, all you need to understand about constrained optimization methods is they are mathematical models that use linear, dynamic, integer, nonlinear, and/or multiobjective programming in the form of algorithms—or in other words, a specific set of steps to solve a particular problem. These are complicated mathematical formulas and algorithms that are beyond the scope of this book and require an engineering, statistical, or mathematical background to fully understand. Projects of enormous complexity would use techniques such as these to make decisions regarding projects. The vast majority of project selection techniques will use the benefit measurement methods to make project selection decisions.
Benefit measurement methods employ various forms of analysis and comparative approaches to make project selections. One common form of analy-sis is the benefit/cost analysis. This compares the financial benefits to the company of performing the project to the costs of implementing the project. Obviously, a sound project choice is one where the costs to implement or produce the product of the project are less than the financial benefits. How much less is an individual decision. Some companies are comfortable with a small margin, others with a much larger margin between the two figures.
When examining costs for the benefit/cost analysis, include the costs to produce the product or service, costs to take the product to market, and ongoing operational support costs. For example, let’s say your company is considering writing and marketing a database software product that will allow banks to dissect their customer base, determine which types of customers buy which types of products, and then market more effectively to those customers. Some of the costs you will take into account are the costs to develop the software such as programmer costs, hardware costs, testing costs, etc; marketing costs such as advertising, traveling costs to perform demos at potential customer sites, etc.; and ongoing costs such as having a customer support staff available during business hours to assist customers with product questions and problems.
Let’s say the cost to produce this software plus the ongoing support costs total $5 million. Initial projections look like demand for this product is high. Over a 3-year period, the potential life of the software in its proposed form, projected revenues are $12 million. Taking only the financial information into account, the benefits outweigh the costs of this project. This project should receive a go recommendation.
Projects of significant cost or complexity usually take into account more than one benefit measurement method when making go or no-go decisions, or deciding on one project over another. Keep in mind that selection methods can take subjective matter into account as well—the project is a go because it’s the new CEO’s pet project; nothing else needs to be said.
Another project selection technique in the benefit measurement category is a scoring model, or weighted scoring model. My organization uses weighted scoring models to not only choose between projects, but also as a method to choose between competing bids on outsourced projects.
Weighted scoring models are quite simple. The project selection committee should decide on the criteria that will be used on the scoring model—for example, profit potential, marketability of the product or service, the ability of the company to quickly and easily produce the product or service, and so on. Each of these criteria is assigned a weight, depending on the importance of the criteria to the project committee. More important criteria should carry a higher weight than the less important criteria.

Defining Project Selection Criteria

Most organizations have a formal, or at least semiformal, process to select and prioritize projects. In my organization, a steering committee is responsible for project review, selection, and prioritization. A steering committee is a group of folks comprised of senior managers and sometimes midlevel managers who represent each of the functional areas in the organization.
Here’s how our process works. The steering committee requests project ideas from the business staff prior to the beginning of the fiscal year.

A special steering committee meeting is called to review the projects, and a determination is made on each project as to whether it will be included on the upcoming list of projects for the new year. Once the no-go projects have been weeded out, the remaining projects are prioritized according to their importance and benefit to the organization. The projects are documented on an official project list, and progress is reported on the active projects at the regular monthly steering committee meetings.
In theory, it’s a great idea. In practice, it works only moderately well. Priorities can and do change throughout the year. New projects come up that weren’t originally submitted during the call for projects that must be added to the list. Reprioritization begins anew, and resource alignment and assignments are shuffled. But again, we’re getting ahead of ourselves. Just be aware that organizations usually have a process to recognize and screen project requests, accept or reject those requests based on some selection criteria, and prioritize the projects based on some criteria.
Large, complex projects may be subject to further review via a feasibility study before a decision can be made to accept the project. You will recall that feasibility studies determine the viability of the project and help the company determine if the product or service of the project is marketable, profitable, safe, and doable.
What’s the criteria? Funny you should ask. Project selection criteria is an input to the project Initiation process. According to the Guide to the PMBOK, project selection criteria is concerned with the product of the project. In other words, selection criteria is concerned with what the product or service of the project will produce and how it will benefit the company. Selection criteria concerns every area of business from marketing to finance to information technology to human resources. It can be subjective or objective. Criteria for judging project selection could include financial measurements. For example, the selection criteria might dictate that projects must increase profits by a certain percentage in order to be considered. Equally, project selection criteria might include the criteria that an increase in market share or an increase in the public awareness of the company or product will be enjoyed as a result of this project. There aren’t any rules for project selection as the components of selection criteria are up to the company, steering committee, or project review committee to determine.
Predetermined selection criteria, such as mentioned above, is one aspect of project selection, but so is the individual opinion, and power, of selection committee members. Don’t underestimate the importance of the authority, political standing, and individual aspirations of selection committee members. Those committee members who happen to carry a lot of weight in company circles, so to speak, are likely to get their projects approved just on the fact that they are who they are. This is sometimes how project selection works in my organization. How about yours?

Monitoring and Controlling Process Group

Monitoring and Controlling Process Group

The Monitoring and Controlling Process Group consists of those processes performed to observe project execution so that potential problems can be identified in a timely manner and corrective action can be taken, when necessary, to control the execution of the project. The project team should determine which of the processes are required for the team's specific project. The key benefit of this Process Group is that project performance is observed and measured regularly ro identify variances from the project management plan. The Monitoring and Controlling Process Group also includes controlling changes and recommending preventive action in anticipation of possible problems. The Monitoring and Controlling Processes Group includes, for example:
• Monitoring the ongoing project activities against the project management plan and the project performance baseline
♦ Influencing the factors that could circumvent integrated change control so only approved changes are implemented.



This continuous monitoring provides the project team insight into the health of the project and highlights any areas that require additional attention. The Monitoring and Controlling Process Group not only monitors and controls the work being done within a Process Group, but also monitors and controls the entire project effort. In multi-phase projects, the Monitoring and Controlling Process Group also provides feedback between project phases, in order to implement corrective or preventive actions to bring the project into compliance with the project management plan. When variances jeopardize the project objectives, appropriate project management processes within the Planning Process Group are revisited as part of the modified plan-do-check-act cycle. This review can result in recommended updates to the project management plan. For example, a missed activity finish date can require adjustments to the current staffing plan, reliance on overtime, or tradeoffs between budget and schedule objectives. Figure 3-9 indicates some of the process interactions that are essential to this Process Group.

Planning Process Group

Planning Process Group

The project management team uses the Planning Process Group and its constituent processes and interactions to plan and manage a successful project for the organization. The Planning Process Group helps gather information from many sources with each having varymg levels of completeness and confidence. The planning processes develop the project management plan. These processes also identify, define, and mature the project scope, project cost, and schedule the project activities that occur within the project. As new project information is discovered, additional dependencies, requirements, risks, opportunities, assumptions, and constraints will be identified or resolved. The multi-dimensional nature of project management causes repeated feedback loops for additional analysis. As more project information or characteristics are gathered and understood, follow-on actions may be required. Significant changes occurring throughout the project life cycle trigger a need to revisit one or more of the planning processes and, possibly, some of the initiating processes.


The frequency of iterating the planning processes is also affected. For example, the project management plan, developed as an output of the Planning Process Group, will have an emphasis on exploring all aspects of the scope, technology, risks, and costs. Updates arising from approved changes during project execution may significantly impact parts of the project management plan. Project management plan updates provide greater precision with respect to schedule, costs, and resource requirements to meet the defined project scope as a whole. Updates can be limited to the activities and issues associated with the execution of a specific phase. Tins progressive detailing of the project management plan is often called "rolling wave planning," indicating that planning is an iterative and ongoing process.

While planning the project, the project team should involve all appropriate stakeholders, dependmg upon then influence on the project and its outcomes. The project team should use stakeholders in project planning since the stakeholders have skills and knowledge that can be leveraged in developing the project management plan and any subsidiary plans. The project team must create an environment in which stakeholders can contribute appropriately.

Since the feedback and refinement process cannot continue indefinitely, procedures set by the organization identify when the planning effort ends. These procedures will be affected by the nature of the project, the established project boundaries, appropriate monitoring and controlling activities, as well as the environment in which the project will be performed.

Other interactions among the processes within the Planning Process Group are dependent on the nature of the project. For example, on some projects there will be little or no identifiable risk until after most of the planning has been done. At that time, the team might recognize that the cost and schedule targets are overly aggressive, thus involving considerably more risk than previously understood. The results of the iterations are documented as updates to the project management plan.

High Level Summary of Process Groups' Interactions


High Level Summary of Process Groups' Interactions

Project management Process Groups


Project management Process Groups
This section identifies and describes the five Project Management Process Groups required for any project. These five Process Groups have clear dependencies and are performed in the same sequence on each project. They are independent of application areas or industry focus. Individual Process Groups and individual constituent processes are often iterated prior to completing the project. Constituent processes also can have interactions both within a Process Group and among Process Groups.
The symbols for the process flow diagrams are shown in Figure:
• Process Groups
• Processes within the Process Groups
• Organizational Process Assets and Enterprise Environmental Factors, shown as inputs to and outputs from the Process Groups, but external to the processes
• Arrows or line arrows indicate process or data flow among or within the Process Groups.

Project Management Processes

Project Management Processes

The project management processes are presented as discrete elements with well-defined interfaces. However, in practice they overlap and interact in ways that are not completely detailed here. Most experienced project management practitioners recognize there is more than one way to manage a project. The specifics for a project are defined as objectives that must be accomplished based on complexity, risk. size, time frame, project team's experience, access to resources, amount of historical information, the organization's project management maturity, and industry and application area. The required Process Groups and their constituent processes are guides to apply appropriate project management knowledge and skills during the project. In addition, the application of the project management processes to a project is iterative and many processes are repeated and revised during the project. The project manager and the project team are responsible for determining what processes from the Process Groups will be employed, by whom, and the degree of rigor that will be applied to the execution of those processes to achieve the desired project objective.
An underlying concept for the interaction among the project management processes is the plan-do-check-act cycle (as defined by Shewhart and modified by Deming. in the ASQ Handbook. American Society for Quality. 1999). This cycle is linked by results - the result from one part of the cycle becomes the input to another.

Project management Organizational Influences

Organizational Influences

Projects are typically pan of an organization that is larger than the project. Examples of organizations include corporations, government agencies, healthcare institutions, international bodies, professional associations, and others. Even when the project is external (joint ventures, partnering), the project will still be influenced by the organization or organizations that initiated it. The maturity of the organization with respect to its project management system, culture, style, organizational structure and project management office can also influence the project. The following sections describe key aspects of these larger organizational structures that are likely to influence the project.

Organizational Systems
Project-based organizations are those whose operations consist primarily of projects. These organizations fall into two categories:
• Organizations that derive their revenue primarily from performing projects for others under contract - architectural firms, engineering firms, consultants. construction contractors, and government contractors.
• Organizations that have adopted management by projects. These organizations tend to have management systems in place to facilitate project management. For example, their financial systems are often specifically designed for accounting, tracking, and reporting on multiple, simultaneous projects.
Non-project-based organizations often may lack management systems designed to support project needs efficiently and effectively. The absence of project-oriented systems usually makes project management more difficult. Li some cases, non-project-based organizations will have departments or other sub-units that operate as project-based organizations with systems to support them. The project management team should be aware of how its organization's structure and systems affect the project.

Components of a Project Management Plan

There arc 14 common components of a typical project management plan.Management plans Through the course of this book, you have had many opportunities to explore management plans — for example, the scope management plan in  and quality management plan in. You need to include portions of your management plans in your project management plan. Remember that this project management plan serves as a guide for the project during the execution and monitoring and controlling processes.

need to determine which sections should be included to guarantee the objectives of the project. These management plans should correspond directly to the processes that you have selected for your project. The project management plan should include some portions of all of these:
Project scope management plan


■ Schedule management plan
Cost management plan
■ Quality management plan
■ Process improvement plan
■ Staffing management plan Communications management plan Risk management plan
Procurement management plan


Other components You may wish to also include other pertinent pieces of information in your project management plan. These components again should provide information and guidance as you execute the project. You might consider including the following information:


Milestone list As you worked through the WBS and project schedule, you probably determined what deliverables will be created at what points of time. These deliverables create a milestone list. It would be advantageous to include these in the project schedule as a baseline of what you plan to deliver.
Schedule baseline The project schedule is created during the Schedule Development process of the Planning phase of a project. It is created with tools and techniques like calculating critical path and duration compression. The original schedule is called the schedule baseline. The schedule baseline is documented in the project management plan so the project team understands the sequence of the work that must be done.
Resource calendar Resource calendars need to be included in the project management plan so team members understand exactly what days they arc active and what days they arc idle.
Cost baseline At the end of the Cost Planning process, you created a cost baseline. This baseline conveys what you plan on spending on the project. The cost baseline should be kept in the project management plan as a point of comparison as you execute the project.
Risk register The risk register is created in the Risk Identification process and includes risks, potential responses and other pertinent information. It is kept in the project management plan as ongoing documentation that must be inspected and acted upon through the execution of the project.
Be sure to include in your project management plan any other documentation that will guide the project to successful completion. This document should act as a litmus test for project personnel when they arc in doubt about what to do.

Review Questions Project management

1. As a project manager, you're responsible for maintaining and ensuring integrity for all of the following except which one?
A. Personal integrity of others
B. Project management process
C. Personal integrity

D. Product integrity


2. You are a project manager working on contract. You've performed earned value analysis and discovered that the project will be completed on time and under the original estimated amount. This means the profit to your company will decrease as will your personal bonus. Which of the following should you do?
A. Add activities to the project to increase the cost enough to meet the original estimated amount.
B. Tell the customer you're adding requirements to the project that were originally cut because of cost constraints.
C. Upon completion, inform the customer the project has come in under budget.

D. Bill the customer for the full amount of the contract because this was the original agreed-upon price.


3. Integrity in the project management field is accomplished through all of the following except which one?
A. Training to learn how to manage relationships with others from different cultures
B. Adhering to an ethical code
C. Applying established project management processes

D. Following the PMP Code of Professional Conduct


4. You are a project manager for a manufacturing firm that produces Civil War-era replicas and memorabilia. You discover a design error during a test production run on your latest project. Which of the following is the most likely response to this problem?
A. Reduce the technical requirements so that the error is no longer valid.
B. Go forward with production and ignore the error.
C. Go forward with production but inform the customer of the problem.
D. Develop alternative solutions to address the error.

Manage Company Data

While it may seem obvious that you should not use personal information or an organization's trade secrets for personal gain, sometimes the organization lias a legitimate need to share information with vendors, governmental agencies, or others. You need to determine which vendors or organizations arc allowed to sec sensitive company data. In some cases, you may even need to determine which individuals can have access to the data. When in doubt, ask.

Here arc some examples. Maybe the company you're working with has periodic mailings it sends to its customer base. If one of your project activities includes finding a new vendor to print the mailing labels, your organization may require the vendor to sign a nondisclosure agreement to guard the contents of the customer lists. Discovering just who should have access to this information might be tricky.
Another example involves data on citizens that is maintained by the government. You might think that because the data belongs to one agency of the government—say the Internal Revenue Service—any other agency of the government can have access to it. This isn't the case. Some agencies arc refused access to the data even though they may have good reason to use it. Others may have restricted access, depending on the data and the agency policy regarding it. Don't assume that others should have access to data because it seems logical.
Most organizations require vendors or other organizations to sign nondisclosure agreements when the vendors or others will have access to sensitive company data. It's your responsibility to ensure that the proper nondisclosure agreements arc signed prior to releasing the data. This function is often handled by the procurement department.

Intellectual Property

You arc likely to come into contact with intellectual property during the course of your project management career. Intellectual property includes items developed by an organization that have commercial value but arc not tangible and copyrighted material such as books, software, and artistic works. It may also include ideas or processes that arc patented. Or it might involve an industrial process, business process, or manufacturing process that was developed by the organization for a specific purpose.

Intellectual property is owned by the business or person that created it. You may have to pay royalties or ask for written permission to use the property. Intellectual property should be treated just like sensitive or confidential data. It should not be used for personal gain or shared with others who should not have access to it.


Laws and Regulations Compliance for PMP


This may seem obvious, but since it's part of the PMP Code of Professional Conduct, we'll mention it here. As a professional, you're required to follow all applicable laws and rules and regulations that apply to your industry, organization, or project. This includes PM1 organizational rules and policies as well. You should also follow any ethical standards and principles that may govern your industry or the state or country you're working in. Remember that rules or regulations you're used to in the United States may or may not apply to other countries and vice versa.
As a PMP, one of the responsibilities that falls into this category is the responsibility to report violations of the PMP code of conduct. In order to maintain integrity of the profession, PMPs must adhere to the code of conduct that makes all of us accountable to each other.
When you know a violation has occurred and you've verified the facts, notify PMI. Part of this process—and a requirement of the code of conduct—is that you'll comply with ethics violations and will assist PMI in the investigation by supplying information, confirming facts and dates, and so on. Violations include anything listed in the PMP Code of Professional Conduct, such as conflicts of interest, untruthful advertising and reporting of PMP experience and credentials, and so on, as well as appearances of impropriety. This one calls for some judgment on your part, but it's mostly based on common sense. For example, a PMP in most situations should not have a family member working on the project team reporting to them (unless they own and run a family business).


Applying Industry Knowledg


Contributing and applying professional knowledge goes beyond project management experience. You likely have specific industry or technical experience as well. Part of applying your professional knowledge includes gaining knowledge of your particular industry and keeping others informed of advances in these areas.
Information technology lias grown exponentially over the last several years. It used to be that if you specialized in network operations, for example, it was possible to learn and become proficient in all things related to networks. Today that is no longer the case. Each specialized area within information technology lias grown to become a knowledge area in and of itself. Many other fields have cither always had individual specialties or just recently experienced this phenomenon, including the medical field, biocnginccring, manufacturing, pharmaceuticals, and so on. You need to stay up-to-date regarding your industry so that you can apply that knowledge effectively. Today's fast-paced advances can leave you behind fairly quickly if you don't stay on top of things.
I mentioned in the beginning of the book that as a project manager you arc not required to be a technical expert, and that still holds true. But it doesn't hurt to stay abreast of industry trends and knowledge in your field and have a general understanding of the specifics of your business. Again, you can join industry associations and take educational classes to stay on top of breaking trends and technology in your industry.


Project Management Knowledge

Project Management Knowledge
Project management is a growing field. Part of your responsibility as a PMP is to stay abreast of project management practices, theories, and techniques. There arc many ways to do this, one of which includes joining a local PMI chapter. There arc hundreds of local chapters in every state and in other countries as well. You can check the PMI website (HVAV.prai .org) to find a chapter near you.
Chapter meetings give you the opportunity to meet other project managers, find out what techniques they're using, and seek advice regarding your project. Usually guest speakers appear at each chapter meeting and share their experiences and tips. Their stories arc always interesting, and they give you the opportunity to learn from someone else's experiences and avoid making wrong turns on your next project. You may have a few stories of your own worth sharing with your local chapter. Volunteer to be a speaker at an upcoming meeting and let others learn from your experiences.


Professional Demeanor

Professional Demeanor
Acting in a professional manner is required of most everyone who works in the business world. Vhilc you arc not responsible for the actions of others, you arc responsible for your own actions and reactions. Part of acting professionally involves controlling yourself and your reactions in questionable situations. For example, a stakeholder or customer may lash out at you but have no basis for their outburst. You can't control what they said or did, but you can control how|
•ou respond. As a professional, your concern tor the project and the organization should take >rcccdcncc over your concern for your own feelings. Therefore, lashing out in return would be unprofessional. Maintain your professional demeanor and don't succumb to shouting matches
or ego competitions with others
jAs project manager, you have a good deal of influence over your project team members. One of the items on the agenda at the project team kickoff meeting should be a discussion of where
the team members can find a copy of organizational policies regarding conflict of interest, cultural diversity, standards and regulations, and customer service and standards of performance.| Better yet, have copies with you that you can hand out at the meeting or have available the!
addresses of website where they can find these documents. |\Vhcn you sec project team members acting out of turn or with lcss-than-dcsirablc customer! service attitudes, coach and influence those team members to conform to the standards of conduct expected by you and your organization. Your team members represent you and the project.] As such, they should act professionally. It's your job as the project leader to ensure that they do.

Associations and Affiliations of Project

Associations and Affiliations
Conflicts of interest may include your associations or affiliations. For example, perhaps your brother-in-law owns his own construction company and you arc the project manager for a construction project that's just published an RFP. Your brother-in-law bids on the project and ends up winning the bid.
If you sat on the decision committee and didn't tell anyone about your association with the winning bidder, that is clearly a conflict of interest. If you influenced the bid decision so that it went to your brother-in-law, he benefited from your position. Therefore, you put your personal interests, or in this case the interests of your associations, above the project outcome. Even if you did not influence the decision in any way, when others on the project discover the winning bidder is your brother-in-law, they will assume a conflict of interest occurred. This could jeopardize the awarding of the bid and your own position as well.
The correct thing to do in this case would be to, first, inform the project sponsor and the decision committee that your brother-in-law intends to bid on the project. Second, refrain from participating on the award decision committee so as not to unduly influence others in favor of your brother-in-law. And last, if you've done all these things and your brother-in-law still wins the bid, appoint someone else in your organization to administer the contract and make the payments for the work performed by him. Also, make certain you document the decisions you make regarding the activities performed by him and keep them with the project files. The more documentation you have, the less likely someone can make a conflict of interest accusation stick.

Vendor Gifts
Many professionals work in situations in which they arc not allowed to accept gifts in excess of certain dollar amounts. This might be driven by company policy, the department manager's policy, and so on. In my organization, it's considered a conflict of interest to accept anything from a vendor, including gifts (no matter how small), meals, even a cup of coffee. Vendors and suppliers often provide their customers and potential customers with lunches, gifts, ballgamc tickets, and the like. It's your responsibility to know if a policy exists that forbids you from accepting these gifts. It's also your responsibility to inform the vendor if they've gone over the limit and you arc unable to accept the gift.
The same situation can occur here as with the brother-in-law example earlier. If you accept an expensive gift from a vendor and later award that vendor a contract or a piece of the project work, it looks like and probably is a conflict of interest. This violates PMI guidelines and doesn't look good for you personally cither.


What is Project Risk Response Audit in PMP?

A project risk response audit:

  • is an examination of the effectiveness of risk response plans and of the performance of the risk owner.
  • may be conducted by a third party, by the project's risk officer or by other qualified personnel.

The Auditor:
  • reviews the risk response plan and data concerning project work results.
  • evaluates the performance of the risk owner in implementing the response plan.
  • documents the results of the audit and makes recommendations for improvement in the project's risk response efforts.

PMP Study - Project Life Cycle and Organization

Project life cycle
Divide projects into phases to provide better management control with appropriate link to ongoing operations.

Project life cycle defines:
- What technical work to do in each phase
- What deliverables are to be generated in each phase and how they are reviewed, verified and validated
- Who is involved in each phase
- How to control and approve each phase
Common characteristics for life cycles:
- Phases are generally sequential
- Cost and staffing levels are low at the start, peak during intermediate phase and drop rapidly on closing phase.
- Highest level of uncertainty, greatest risk of failing to achieve the objectives at the start of project
- Highest influence of stakeholders on project's product and final cost at the start of project because the cost of change increase as project progressing.

Project Phases
The completion and approval of one or more deliverables characterize a project phase. For reason of size, complexity, level of risk, and cash flow constraints, project phases can be further subdivided into subphases aligned with one or more specific deliverables for monitoring and control. For each phase and subphase, the project management processes can be applied.

Project life cycle and product life cycle
Product life cycle starts with the business plan, through ideas to product, ongoing operations and product divestment.
The project life cycle goes through a series of phases to create the product.

Project Stakeholders
Individuals and organizations
- actively involve in the project
- whose interest may be affected by the project
- Influence the project objectives or outcomes

Key stakeholders include:
- Project Manager
- Customer/User
- Performing organization
- Project team members
- Project Management team
- Sponsor
- Influencers
- PMO

Organizational Influences
Organizational structure influences on projects:
functional, week matrix, balanced matrix, strong matrix, projectized.
little or none, functional manager, part time -- functional
limited, functional manager, part time -- weak matrix
low to moderate, mixed, full time PM -- balanced matrix
moderate to high, project manager, full time PM admin -- strong matrix
high to almost all, project manager, full time PM admin -- projectized

Project Management System
set of tools, techniques, methodologies, resources and procedures used to manage a project.
Project Management Plan describes how the project management system will be used.

Team-Building and Motivating Skills

Project managers will rely heavily on team-building and motivational skills. Teams are often formed with people from different parrs of the organization. These people might or might not have worked together before, so some component of team-building groundwork might involve the project manager. The project manager will set the tone for the project team and will help the team members work through the various stages of team development to become fully functional. Motivating the team, especially during long projects or when experiencing a lot of bumps along the way, is another important role the project manager fulfills during the course of the project.
An interesting caveat to the team-building role is that project managers many times are responsible for motivating team members who are not their direct reports. This has its own set of challenges and dilemmas. One way to help this situation is to ask the functional manager to allow you to participate in your project team members' performance reviews. Use the negotiation and influencing skills I talked about earUer to make sure you're part of this process.
Now that you've been properly introduced to some of the skills you need in your tool kit, you'll know to be prepared to communicate, solve problems, lead, and negotiate your way through your next project.

Project managers are an interesting bunch. They know a little bit about a lot of topics and are excellent communicators. Or, as one person said, they are a mile wide and an inch deep."
They have the ability to motivate people, even those who have no reason to be loyal to the project, and they can make the hard-line calls when necessary. Project managers can get caught in sticky situations that occasionally require making decisions that are good for the company (or the customer) but aren't good for certain stakeholders. These offended stake holders will then drag their feet, and the proj&ct manager has to play the heavy in order to motivate and gain their cooperation again. Some organizations hire contract project managers to run their large, company-altering projects, just because they don't want to burn out a key employee in this role. Fortunately, that doesn't happen often.

Negotiation and Influencing Skills

Effective problem solving requires negotiation and influencing skills. We all utilize negotiation skills in one form or another every day. For example, on a nightly basis I am asked, "Honey, what do you want for dinner?" Then the negotiations begin, and the fried chicken versus swordfish discussion commences. Simply put, negotiating is working with others to come to an agreement.
Negotiation on projects is necessary in almost every area of the project, from scope definition to budgets, contracts, resource assignments, and more. This might involve one-on-one negotiation or with teams of people, and it can occur many times throughout the project.
Influencingis convincing the other party that swordfish is a better choice than fried chicken, even if fried chicken is what they want. It's also the ability to get tilings done through others. Influencing requires an understanding of the formal and informal structure of all the organizations involved in the project.

Budgeting Skills for Project managers

Project managers establish and manage budgets and therefore need some knowledge of finance and accounting principles. Especially important in this skill area is the ability to perform cost estimates for project budgeting. Different methods are available to determine the project costs. They range from estimating individual activities and rolUng the estimates up to estimating the project's cost in one big chunk. I'll discuss these methods more fully in later chapters.
After a budget is determined, you can start spending. This sounds more exciting than it actually is. Reading and understanding vendor quotes, preparing or overseeing purchase orders, and reconcilinginvoices are budgeting skills that the project manager will use on most projects. These costs will be linked back to project activities and expense items in the project's budget.

Conflict Management Skills

Show me a project, and I'll show you problems. All projects have some problems, as does, in fact, much of everyday life. Isn't that what they say builds character? But I digress.
Conflict management involves solving problems. Problem solving is really a twofold process. First, you must define the problem by separating the causes from the symptoms. Often when defining problems, you end up just describing the symptoms instead of really getting to the heart of what's causing the problem. To avoid that, ask yourself questions Uke "Is it an internal or external problem?" and "Is it a technical problem?" and "Are there interpersonal problems between team members?" and "Is it managerial?" and "What are the potential impacts or consequences?" These kinds of questions will help you get to the cause of the problem.
Next, after you have defined the problem, you have some decisions to make. It will take a little time to examine and analyze the problem, the situation causing it, and the alternatives available. After this analysis, the project manager will determine the best course of action to take and implement the decision. The timing of the decision is often as important as the decision itself. If you make a good decision but implement it too late, it might turn into a bad decision.
Negotiation and Influencing Skills
Effective problem solving requires negotiation andinfluencingskills. We all utilize negotiation skills in one form or another every day. For example, on a nightly basis I am asked, "Honey, what do you want for dinner?" Then the negotiations begin, and the fried chicken versus swordfish discussion commences. Simply put, negotiating is working with others to come to an agreement.
Negotiation on projects is necessary in almost every area of the project, from scope definition to budgets, contracts, resource assignments, and more. This might involve one-on-one negotiation or with teams of people, and it can occur many times throughout the project.
Influencingis convincing the other party that swordfish is a better choice than fried chicken, even if fried chicken is what they want. It's also the ability to get things done through others. Influencing requires an understanding of the formal and informal structure of all the organizations involved in the project.

Defining Skills Every Good Project Manager Needs

Many times, organizations will knight their technical experts as project managers. The skill and expertise that made them stars in their technical fields are mistakenly thought to translate into project management skills. This is not necessarily so.
Project managers are generalists with many skills in their repertoires. They are also problem solvers who wear many hats. Project managers might indeed possess technical skills, but technical skills are not a prerequisite for sound project management skills. Your project team should include a few technical experts, and these are the people whom the project manager will rely on for technical details. Understanding and applying good project management techniques, along with a solid understanding of general management skills, are career builders for all aspiring project managers.
Project managers have been likened to small-business owners. They need to know a little bit about ever)' aspect of management. General management skills include every area of management, from accounting to strategic planning, supervision, personnel administration, and more. General management skills are called into play on every project. But some projects require specific skills in certain application areas. Application areas consist of categories of projects that have common elements. These elements, or application areas, can be defined several ways: by industry group (automotive, pharmaceutical), by department (accounting, marketing), and by technical (software development, engineering) or management (procurement, research and development) specialties. These application areas are usually concerned with disciplines, regulations, and the specific needs of the project, the customer, or the industry. For example, most governments have specific procurement rules that apply to their projects that wouldn't be applicable in the construction industry. The pharmaceutical industry is acutely interested in regulations set forth by the Food and Drug Administration, whereas the automotive industry has little or no concern for either of these types of regulations. Having experience in rhe application area you're working in will give you a leg up when it comes to project management. Although you can call in the experts who have application area knowledge, it doesn't hurt lor you to understand the specific aspects of the application areas of your project.
The general management skills listed in this section are the foundation of good project management practices. Your mastery of them (or lack thereof) will likely affect project outcomes. The various skills of a project manager can be broken out in a more or less declining scale of importance. We'll look at an overview of these skills now, and I'll discuss each in more detail in subsequent chapters.

What Is the Term Project Management?


You've determined rhat you indeed have a project. What now? The notes you scratched on the back of a napkin during your coffee break might get you started, but that's not exactly good project management practice.
We have all witnessed this scenario—an assignment is made, and the project team members (limp directly into the project, busying themselves with building the product, service, or result requested. Often, careful thought is not given to the project-planning process. I'm sure you've heard co-workers toss around statements like "That would be a waste of valuable time" or "Why plan when you can just start building?" Project progress is rarely measured against the customer requirements. In the end, the delivered product, service, or result doesn't meet the expectations of the customer! This is a frustrating experience for all those involved. Unfortunately, many projects follow this poorly constructed path.
Project management brings together a set of tools and techniques—performed by people— to describe, organize, andmonitor the work of project activities. Project managers are the people responsible for managing the project processes and applying the tools and techniques used to carry out the project activities. All projects are composed of processes, even if they employ a haphazard approach. There are many advantages to organizing projects and teams around the project management processes endorsed by PMI. We'll be examining those processes and their advantages in depth throughout the remainder of this book.
Project management involves applying knowledge, skills, and techniques during the course of the project to accomplish the project requirements. It is the responsibility of the project manager to ensure that project management techniques are applied and followed.

Projects versus Operations

Projects are temporary in nature and have definitive start dates and definitive end dates. The project is completed when its goals and objectives are accomplished Sometimes projects end when it's determined that the goals and objectives cannot be accomplished or when the product, service, or result of the project is no longer needed and the project is canceled. Projects exist to bring about a product, service, or result that didn't exist before. This might include tangible products, services such as consul ting or project management, and business functions that support the organization. Projects might also produce a result or an outcome, such as a document that details the findings of a research study. In this sense, a project is unique. However, don't get confused by the term unique. For example. Ford Motor Company is in the business of designing and assembling cars. Each model that Ford designs and produces can be considered a project. The models differ from each other in their features and are marketed to people with various needs. An SUV serves a different purpose and clientele than a luxury model. The design and marketing of these two models are unique projects. However, the actual assembly of the cars is considered an operation—a repetitive process that is followed for most makes and models.
Determining the characteristics and features of the different car models is carried out thro ugh what PMBOK Guide terms progressive elaboration. This means the characteristics of the product, service, or result of the project (the SUV, for example) are determined incrementally and are continually refined and worked out in detail as the project progresses. This concept goes along with the temporary and unique aspects of a project because when you first start the project, you don't know all the minute details of the end product. Product characteristics typically start out broad-based at the beginning of the project and are progressively elaborated into more and more detail over time until they are complete and finalized. Keep in mind that product characteristics are progressively elaborated, but the work of the project itself stays constant.
Operations are ongoing and repetitive. They involve work that is continuous without an ending date, and you often repeat the same processes and produce the same results. The purpose of operations is to keep the organization functioning, while the purpose of a project is to meet its goals and to conclude. Therefore, operations are ongoing, and projects are unique and temporary.

How to Become PMP Certified?

You need to fulfill several requirements in order to sit for the PMP exam. The PMI has detailed the certification process quite extensively at its website. Go to www.pmi.org , and click the Professional Development and Careers tab to reveal the Certifications selection and get the latest information on certification procedures and requirements. As of this writing, you are required to fill out an application to sit for the PMP exam. You can submit this application online at the PMI’s website. You also need to document 35 hours of formal project management education. This might include college classes, seminars, workshops, and training sessions. Be prepared to list the class titles, location, date, and content. In addition to filling out the application and documenting your formal project management training, there is one additional set of criteria you’ll need to meet to sit for the exam. These criteria fall into two categories. You need to meet the requirements for only one of these categories: Category 1 is for those who have a baccalaureate degree. You’ll need to provide proof, via transcripts, of your degree with your application. In addition, you’ll need to complete verification forms—found at the PMI website—that show 4,500 hours of project management experience that spans a minimum of three years and no more than six years. Category 2 is for those who do not have a baccalaureate degree but do hold a high school diploma or equivalent. You’ll need to complete verification forms documenting 7,500 hours of project management experience that spans a minimum of five years and no more than eight years. The exam fee at the time this book is being published is $405 for PMI members in good standing and $555 for non-PMI members. Testing is conducted at Thomson Prometric centers. You can find a center near you on the PMI website. You have six months from the time PMI receives and approves your completed application to take the exam. You’ll need to bring a form of identification such as a driver’s license with you to the Thomson Prometric center on the test day. You will not be allowed to take anything with you into the testing center. You will be given

a calculator, pencils, and scrap paper. You will turn in all scrap paper, including the notes and squiggles you’ve jotted during the test, to the center upon completion of the exam. The exam is scored immediately, so you will know whether you’ve passed at the conclusion of the test. You’re given four hours to complete the exam, which consists of 200 randomly generated questions. Only 175 of the 200 questions are scored. A passing score requires you to answer 141 of the 175 questions correctly. Twenty-five of the 200 questions are “pretest” questions that will appear randomly throughout the exam. These 25 questions are used by PMI to determine statistical information and to determine whether they can or should be used on future exams. The questions on the exam cover the following process groups and areas: Initiating Planning Executing Monitoring and Controlling Closing Professional Responsibility All unanswered questions are scored as wrong answers, so it benefits you to guess at an answer if you’re stumped on a question.