The Differences Between Risk Management Planning and Risk Response Planning
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The Differences Between Risk Management Planning and Risk Response Planning
The Differences Between Risk Management Planning and Risk Response Planning
The Relationships Among Quality, Risk and Procurement, and HR Management
Facilitating Process
Related Facilitating Relationship Description
Process(es)
8.1: Quality Planning Quality management resources
9.1: Organizational Planning need to be reflected in the project 10.1: Communications organization. Planning The communications plan should
11.2: Risk Identification reflect QA and QC communications. A detailed risk analysis may be needed if the cost and/or schedule impact to meet a quality standard is high.
9.2: Staff Acquisition A decision is made to acquire
12.1: Procurement Planning external staff resources.
9.1: Organizational Planning The information and
10.1: Communications communication needs of project Planning stakeholders.
Related Facilitating Relationship Description
Process(es)
8.1: Quality Planning Quality management resources
9.1: Organizational Planning need to be reflected in the project 10.1: Communications organization. Planning The communications plan should
11.2: Risk Identification reflect QA and QC communications. A detailed risk analysis may be needed if the cost and/or schedule impact to meet a quality standard is high.
9.2: Staff Acquisition A decision is made to acquire
12.1: Procurement Planning external staff resources.
9.1: Organizational Planning The information and
10.1: Communications communication needs of project Planning stakeholders.
The Impact of the Facilitating Processes on the Core Processes
The PMBOK illustrates a two-way feedback loop between the core and facilitating planning processes. Although most experienced professionals naturally understand this two-way feedback loop, this "natural" understanding can get lost if you are not accustomed to seeing this activity described this way, if you do not have considerable experience with many of these facilitating processes, and/or if you are trying to understand the individual process-to-process relationships between the two groups. To clarify the relationships between the facilitating and core planning process groups and to improve your context understanding of the facilitating planning processes, review for common situations in which the results from a facilitating planning activity can impact a core planning activity.
The Differences Between the Core and Facilitating Planning Processes
A common confusion point for project managers and readers of the PMBOK is understanding the differences between "core" and "facilitating" planning processes. Common questions include the following:
> Does "core" mean that the processes are always performed, whereas "facilitating" indicates optional.
> Why is risk management planning considered a "core" planning process, but communications planning, quality planning, and risk response planning are not?
These are good, insightful questions. In order to answer them and improve your understanding of the distinction between the planning process types, let's review a couple points:
> The distinction between core and facilitating planning processes is more of an "academic" distinction.
The core processes are those that must be done in a specific sequence. The facilitating processes can vary in sequence, are often performed in parallel with each other, and have a two-way feedback loop with many "core" processes.
> The facilitating planning processes are always performed.
The effort to perform these processes will vary greatly depending on the nature of the project and the project management maturity level of the performing organization.
> Does "core" mean that the processes are always performed, whereas "facilitating" indicates optional.
> Why is risk management planning considered a "core" planning process, but communications planning, quality planning, and risk response planning are not?
These are good, insightful questions. In order to answer them and improve your understanding of the distinction between the planning process types, let's review a couple points:
> The distinction between core and facilitating planning processes is more of an "academic" distinction.
The core processes are those that must be done in a specific sequence. The facilitating processes can vary in sequence, are often performed in parallel with each other, and have a two-way feedback loop with many "core" processes.
> The facilitating planning processes are always performed.
The effort to perform these processes will vary greatly depending on the nature of the project and the project management maturity level of the performing organization.
Project Planning—Facilitating Processes
Project planning involves more than the scope, time, and cost elements we reviewed in the last chapter. The project planning process also sets the stage for project communications, project quality, project risk management, procurement management activities, and the project team. The PMBOK refers to these activities as the facilitating processes of project planning.
This subject area, more than any other we discuss in this book, may best illustrate PMI's philosophy that effective project management is proactive, that the project manager should be in control of the project (and not the other way around), and that all project management activities should be planned.
Although most project managers have considerable experience with the core planning steps, there is a much wider range of experience with the facilitating planning processes. Depending on your industry, the mission-critical level of your projects, and the project management methodology of your organization, your exposure to disciplined risk management, quality management, and procurement management procedures may be quite limited. In addition, even when people are experienced in these areas, they often find that the techniques and terms they have utilized are not always consistent with PMI's methodology or philosophy.
On top of all this, the PMBOK coverage of the core and facilitating planning processes tends to make the project planning process seem less intuitive and much more complicated than it really is.
To streamline your exam preparations, we will clarify these process relationships, emphasize the "gotta-know" concepts and terms that are important to PMI, and identify the "common" gaps you may need to close to be ready for the exam questions related to the facilitating project planning processes.
This subject area, more than any other we discuss in this book, may best illustrate PMI's philosophy that effective project management is proactive, that the project manager should be in control of the project (and not the other way around), and that all project management activities should be planned.
Although most project managers have considerable experience with the core planning steps, there is a much wider range of experience with the facilitating planning processes. Depending on your industry, the mission-critical level of your projects, and the project management methodology of your organization, your exposure to disciplined risk management, quality management, and procurement management procedures may be quite limited. In addition, even when people are experienced in these areas, they often find that the techniques and terms they have utilized are not always consistent with PMI's methodology or philosophy.
On top of all this, the PMBOK coverage of the core and facilitating planning processes tends to make the project planning process seem less intuitive and much more complicated than it really is.
To streamline your exam preparations, we will clarify these process relationships, emphasize the "gotta-know" concepts and terms that are important to PMI, and identify the "common" gaps you may need to close to be ready for the exam questions related to the facilitating project planning processes.
Core Planning Process PMBOK.
Unfortunately, there's no way to really avoid this. You will need to understand how PMI defines the project planning process. In general, PMI defines the project planning process as the development and maintenance of the project plan. That's straightforward. However, it is the 11-step breakdown of core project planning and the inter-relationships among those 11 processes that may be "less than straightforward."
The PMBOK definition of project planning is accurate, complete, and logical. The confusing element is that in our real-life experiences, we simply have not thought about each of these steps in the same way as PMI. It is also possible that we, as project managers, simply execute these steps naturally (or in rare circumstances, perhaps this level of diligence is not always exercised during project planning).
describes how PMI defines the core project planning process, and the content in this table describes what depicts. Note that provides references back to where these processes can be found in the PMBOK. Pay particular attention to the PMBOK reference terminology.
The PMBOK definition of project planning is accurate, complete, and logical. The confusing element is that in our real-life experiences, we simply have not thought about each of these steps in the same way as PMI. It is also possible that we, as project managers, simply execute these steps naturally (or in rare circumstances, perhaps this level of diligence is not always exercised during project planning).
describes how PMI defines the core project planning process, and the content in this table describes what depicts. Note that provides references back to where these processes can be found in the PMBOK. Pay particular attention to the PMBOK reference terminology.
Project Selection Accounting Concepts
One area, in particular, where much overlap exists between the Initiating and Planning processes is project selection. Earlier in this chapter, you reviewed the two general categories of project selection methods—benefit measurement methods and constrained optimization methods — and the key elements of each that you need to know for the PMP exam.
Also, for the PMP exam, you will need to understand several cost accounting concepts that are frequently used when performing the project-selection process, especially any of the benefit measurement methods. You are not expected to be a cost accountant or even to perform the associated accounting calculations. However, you are expected to understand each of these accounting concepts and to know how to use them |during the project-selection activity. we summarizes these accounting concepts and how they relate to project selection.
Also, for the PMP exam, you will need to understand several cost accounting concepts that are frequently used when performing the project-selection process, especially any of the benefit measurement methods. You are not expected to be a cost accountant or even to perform the associated accounting calculations. However, you are expected to understand each of these accounting concepts and to know how to use them |during the project-selection activity. we summarizes these accounting concepts and how they relate to project selection.
The Relationship to Planning Activities
Because many project managers have limited project initiation experience, and because many organizations have differing views on what project initiation entails, it is not always clear how project initiation relates to project planning.
When you review the following list of common project management activities performed during the Initiating phase, you can understand why the line between these two major activities is not clear:
> Determining business need
> Collecting historical info
> Determining project objectives and goals
> Resolving conflicting high-level goals
> Developing product descriptions
> Determining deliverables
> Determining process outputs
> Documenting constraints
> Documenting assumptions
> Defining strategies
> Identifying performance criteria
> Determining resource requirements
When you review the following list of common project management activities performed during the Initiating phase, you can understand why the line between these two major activities is not clear:
> Determining business need
> Collecting historical info
> Determining project objectives and goals
> Resolving conflicting high-level goals
> Developing product descriptions
> Determining deliverables
> Determining process outputs
> Documenting constraints
> Documenting assumptions
> Defining strategies
> Identifying performance criteria
> Determining resource requirements
What is Management by Objectives (MBO)
Because one of the goals of Management by Objectives (MBO)—a business management technique you probably studied in school and/or utilize in some capacity within your organization today—is to ensure that objectives (goals) of one level within an organization are supportive of and aligned with the objectives of the other, we'll review MBO in this chapter. After all, one of the main purposes of the Project Initiation process is to ensure that authorized projects support the strategic objectives of the sponsoring organization.
MBO is not covered explicitly by the PMBOK. However, PMI expects project managers to understand this management philosophy and how it aligns with managing projects.
For the exam, you need to understand three philosophical points and three general process steps.
The management philosophy points are as follows:
> Because MBO uses goal setting and periodic reviews, it is a natural fit for managing projects.
> A project must be consistent with corporate objectives.
> Due to its top-down nature, MBO only works if management supports it.
MBO is not covered explicitly by the PMBOK. However, PMI expects project managers to understand this management philosophy and how it aligns with managing projects.
For the exam, you need to understand three philosophical points and three general process steps.
The management philosophy points are as follows:
> Because MBO uses goal setting and periodic reviews, it is a natural fit for managing projects.
> A project must be consistent with corporate objectives.
> Due to its top-down nature, MBO only works if management supports it.
The Timing and Importance of the Project Manager Assignment
Besides the project charter, the other critical output of the Project Initiation phase is the authorized assignment of the project manager. Ideally, PMI would like to see the project manager selected, assigned, or identified at the point of project initiation. PMI advocates this practice because it feels strongly that the project manager should be a key player in any and all planning activities. PMI wants to reduce the number of real-world experiences whereby the person now responsible for the project (the project manager) does not have proper input into the key planning assumptions.
The Value of Project-Selection Methods
Outside of the project charter, the other topic that is greatly emphasized by PMI within the Initiating process is project-selection methods.
PMI feels strongly that organizations should have a formal process for deciding projects to sponsor and for ensuring that projects are supportive of the organization's strategic objectives. In many organizations, some type of senior management steering committee or Program Management Office (PMO) performs this project-evaluation and -selection process.
Project-selection methods are the techniques used to execute this process, and they are organized into two major categories: benefit measurement methods and constrained optimization methods.
The Importance of the Project Charter to the Project Manager
The project charter is highly important to the project manager for three main reasons:
> It makes the project manager's role legit. The project charter formally recognizes the project manager role and gives the project manager the authority to "get the job done."
> It makes the project legit. The project charter formally authorizes the project to exist and/or to continue.
> It sets the target for the project. The project charter provides the high-level goals and objectives the project should achieve.
> It makes the project manager's role legit. The project charter formally recognizes the project manager role and gives the project manager the authority to "get the job done."
> It makes the project legit. The project charter formally authorizes the project to exist and/or to continue.
> It sets the target for the project. The project charter provides the high-level goals and objectives the project should achieve.
The Importance of Project Initiation
Because many project managers have never completed activities in this phase (never completed a project charter, never signed a contract, and so on), let's quickly review why PMI considers project initiation an important process.
Initiation is the first step in the project management process, and it is the first step in the scope-management process. It authorizes (formally) a project to begin and links a project to the work and to the strategic objectives of the organization.
Be sure to understand that the Initiation step can ocqur more than once in a project. The Initiation process is also performed at the end of each project phase to get authorization to continue the project. A common term for this point is a go/no-go decision.
Per PMI, projects should be aligned with the organization's strategic direction. The project-initiation process at the beginning of each project and at the beginning of each phase helps to ensure this alignment throughout the project lifecycle.
Based on our experience, many professionals associate project initiation with some type of "analysis" effort, such as assessment, feasibility study, or business case development. To PMI, the "analysis" effort is a separate project (with its own project charter) that provides information needed to make a decision about initiating a new project.
The most important result of the Project Initiation phase is the project charter, which formally authorizes the work of the project to begin (or continue) and gives the project manager authority to do his job. Someone external to the team and of higher organizational rank issues this authorization.
What a Project Is and How It's Different from a Program?
According to PMI, a project is "a temporary endeavor undertaken to create a unique product or service." This is an important definition you need to know for the test because it emphasizes that a project is temporary and has a distinct beginning, duration, and clear-cut ending. According to the PMBOK, a program is "a group of related projects managed in a coordinated way and includes an element of ongoing work."
The PMP exam will not be based on memorization only. You must know the definitions and concepts and be able to utilize them in a fictitious situation.
If you answer "yes" to all three of these questions, the event constitutes a project. If the event has a beginning but has stopped before the ending, it may still constitute a project. For example, suppose a military assignment is started and is supposed to end in 6 months. Due to budget cuts, all activities are ended after 4 months. These events would still constitute a project because they have a definite beginning, duration, and ending, even if the events were cut short.
Projects come in all forms and sizes and are done in the areas of government infrastructure, aerospace, pharmaceutical development, telecommunications, and a multitude of different professions. Projects are also done in our daily lives—the annual Girl Scout cookie drive, weddings, home building, and preparation of the family Thanksgiving dinner.
Projects at work may include the implementation of software on 200 computers, the introduction of a new product, or the development and distribution of a book. All these events are considered projects that involve planning and the execution of that plan. Each event is considered unique, even though it may be repeated each year.
Progressive elaboration involves various parts of projects that evolve over time. For example, a new style of automobile begins as an idea and is then transformed into blueprints. Many transformations may occur between the idea and the blueprints. The blueprints are then used to develop a prototype with additional modifications and augmentations. The prototype leads to engineering designs for the manufacturing line of the vehicle. The prototype may change as limitations of the manufacturing designs are identified. Eventually an automobile-assembly process and line will develop and cars will be manufactured. This process shows how a project can go through several or even hundreds of progressive elaborations before it becomes a reality.
The PMP exam will not be based on memorization only. You must know the definitions and concepts and be able to utilize them in a fictitious situation.
If you answer "yes" to all three of these questions, the event constitutes a project. If the event has a beginning but has stopped before the ending, it may still constitute a project. For example, suppose a military assignment is started and is supposed to end in 6 months. Due to budget cuts, all activities are ended after 4 months. These events would still constitute a project because they have a definite beginning, duration, and ending, even if the events were cut short.
Projects come in all forms and sizes and are done in the areas of government infrastructure, aerospace, pharmaceutical development, telecommunications, and a multitude of different professions. Projects are also done in our daily lives—the annual Girl Scout cookie drive, weddings, home building, and preparation of the family Thanksgiving dinner.
Projects at work may include the implementation of software on 200 computers, the introduction of a new product, or the development and distribution of a book. All these events are considered projects that involve planning and the execution of that plan. Each event is considered unique, even though it may be repeated each year.
Progressive elaboration involves various parts of projects that evolve over time. For example, a new style of automobile begins as an idea and is then transformed into blueprints. Many transformations may occur between the idea and the blueprints. The blueprints are then used to develop a prototype with additional modifications and augmentations. The prototype leads to engineering designs for the manufacturing line of the vehicle. The prototype may change as limitations of the manufacturing designs are identified. Eventually an automobile-assembly process and line will develop and cars will be manufactured. This process shows how a project can go through several or even hundreds of progressive elaborations before it becomes a reality.
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