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CUNY / OTHER / PROM 210 / pmi newtown square

pmi newtown square

pmi newtown square

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School: The City University of New York (CUNY)
Department: OTHER
Course: Project Management
Professor: Michael fagan
Term: Spring 2017
Tags: textbook
Cost: 50
Description: Project Management Institute A Guide to the Project MAnAGeMent Body of KnowledGe ® (PMBOK Guide) – Fifth Edition This copy is a PMI Member benefit, not for distribution, sale, or reproduction
Uploaded: 05/06/2017
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3 What is Project Management?




3 What is Project Management?




3 What is Project Management?



Project Management Institute A Guide to the Project  MAnAGeMent Body of KnowledGe (PMBOK® Guide) – Fifth Edition Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.Library of Congress Cataloging-in-Publication Data A guide to the project management body of knowledge (PMBOK® guide). --We also discuss several other topics like What is the barometer of public attitudes theory?
We also discuss several other topics like Define Porphyry.
Don't forget about the age old question of What do you mean by improper integrals?
If you want to learn more check out How do business mergers happen?
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We also discuss several other topics like Why do we sometimes have increasing costs?
Fifth edition. pages cm Includes bibliographical references and index. ISBN 978-1-935589-67-9 (pbk. : alk. paper)  1. Project management. I. Project Management Institute. II. Title: PMBOK guide. HD69.P75G845 2013 658.4’04--dc23 2012046112 ISBN: 978-1-935589-67-9 Published by: Project Management Institute, Inc. 14 Campus Boulevard Newtown Square, Pennsylvania 19073-3299 USA Phone: +610-356-4600 Fax: +610-356-4647 Email: customercare@pmi.org Internet: www.PMI.org ©2013 Project Management Institute, Inc. All rights reserved. “PMI”, the PMI logo, “PMP”, the PMP logo, “PMBOK”, “PgMP”, “Project Management Journal”, “PM Network”, and the PMI  Today logo are registered marks of Project Management Institute, Inc. The Quarter Globe Design is a trademark of the Project  Management Institute, Inc. For a comprehensive list of PMI marks, contact the PMI Legal Department.  PMI Publications welcomes corrections and comments on its books. Please feel free to send comments on typographical,  formatting, or other errors. Simply make a copy of the relevant page of the book, mark the error, and send it to: Book Editor,  PMI Publications, 14 Campus Boulevard, Newtown Square, PA 19073-3299 USA. To inquire about discounts for resale or educational purposes, please contact the PMI Book Service Center. PMI Book Service Center P.O. Box 932683, Atlanta, GA 31193-2683 USA Phone: 1-866-276-4764 (within the U.S. or Canada) or +1-770-280-4129 (globally) Fax: +1-770-280-4113  Email: info@bookorders.pmi.org Printed in the United States of America. No part of this work may be reproduced or transmitted in any form or by any means,  electronic, manual, photocopying, recording, or by any information storage and retrieval system, without prior written permission  of the publisher. The paper used in this book complies with the Permanent Paper Standard issued by the National Information Standards  Organization (Z39.48—1984). 10 9 8 7 6 5 4 3 2 1 Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.Notice The Project Management Institute, Inc. (PMI) standards and guideline publications, of which the document  contained herein is one, are developed through a voluntary consensus standards development process. This process  brings together volunteers and/or seeks out the views of persons who have an interest in the topic covered by this  publication. While PMI administers the process and establishes rules to promote fairness in the development of  consensus, it does not write the document and it does not independently test, evaluate, or verify the accuracy  or completeness of any information or the soundness of any judgments contained in its standards and guideline  publications. PMI disclaims liability for any personal injury, property or other damages of any nature whatsoever, whether  special, indirect, consequential or compensatory, directly or indirectly resulting from the publication, use of  application, or reliance on this document. PMI disclaims and makes no guaranty or warranty, expressed or implied,  as to the accuracy or completeness of any information published herein, and disclaims and makes no warranty that  the information in this document will fulfill any of your particular purposes or needs. PMI does not undertake to  guarantee the performance of any individual manufacturer or seller’s products or services by virtue of this standard  or guide. In publishing and making this document available, PMI is not undertaking to render professional or other  services for or on behalf of any person or entity, nor is PMI undertaking to perform any duty owed by any person  or entity to someone else. Anyone using this document should rely on his or her own independent judgment or,  as appropriate, seek the advice of a competent professional in determining the exercise of reasonable care in  any given circumstances. Information and other standards on the topic covered by this publication may be  available from other sources, which the user may wish to consult for additional views or information not covered  by this publication. PMI has no power, nor does it undertake to police or enforce compliance with the contents of this document. PMI  does not certify, test, or inspect products, designs, or installations for safety or health purposes. Any certification  or other statement of compliance with any health or safety-related information in this document shall not be  attributable to PMI and is solely the responsibility of the certifier or maker of the statement. Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.TABLE OF CONTENTS Table of Contents 1. Introduction..................................................................................................................... 1 1.1 Purpose of the PMBOK® Guide ................................................................................ 2 1.2 What is a Project? ...................................................................................................... 3 1.2.1. The Relationships Among Portfolios, Programs, and Projects .................... 4 1.3 What is Project Management?................................................................................... 5 1.4 Relationships Among Portfolio Management, Program Management, Project  Management, and Organizational Project Management........................................... 7 1.4.1 Program Management ................................................................................... 9 1.4.2 Portfolio Management.................................................................................... 9 1.4.3 Projects and Strategic Planning .................................................................. 10 1.4.4 Project Management Office ......................................................................... 10 1.5 Relationship Between Project Management, Operations Management, and  Organizational Strategy............................................................................................ 12 1.5.1 Operations and Project Management.......................................................... 12 1.5.2 Organizations and Project Management..................................................... 14 1.6 Business Value ......................................................................................................... 15 1.7 Role of the Project Manager..................................................................................... 16 1.7.1 Responsibilities and Competencies of the Project Manager...................... 17 1.7.2 Interpersonal Skills of a Project Manager................................................... 17 1.8 Project Management Body of Knowledge ............................................................... 18 2. ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE.............................................. 19 2.1 Organizational Influences on Project Management................................................ 20 2.1.1 Organizational Cultures and Styles ............................................................. 20 2.1.2 Organizational Communications ................................................................. 21 2.1.3 Organizational Structures............................................................................ 21 2.1.4 Organizational Process Assets .................................................................... 27 2.1.5 Enterprise Environmental Factors ............................................................... 29 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK I ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.TABLE OF CONTENTS 2.2 Project Stakeholders and Governance .................................................................... 30 2.2.1 Project Stakeholders.................................................................................... 30 2.2.2 Project Governance...................................................................................... 34 2.2.3 Project Success............................................................................................ 35 2.3 Project Team............................................................................................................. 35 2.3.1 Composition of Project Teams ..................................................................... 37 2.4 Project Life Cycle...................................................................................................... 38 2.4.1 Characteristics of the Project Life Cycle ..................................................... 38 2.4.2 Project Phases.............................................................................................. 41 3. PROJECT MANAGEMENT PROCESSES ............................................................................... 47 3.1 Common Project Management Process Interactions.............................................. 50 3.2 Project Management Process Groups ..................................................................... 52 3.3 Initiating Process Group........................................................................................... 54 3.4 Planning Process Group........................................................................................... 55 3.5 Executing Process Group ......................................................................................... 56 3.6 Monitoring and Controlling Process Group ............................................................. 57 3.7 Closing Process Group ............................................................................................. 57 3.8 Project Information................................................................................................... 58 3.9 Role of the Knowledge Areas................................................................................... 60 4. PROJECT INTEGRATION MANAGEMENT............................................................................. 63 4.1 Develop Project Charter ........................................................................................... 66 4.1.1 Develop Project Charter: Inputs................................................................... 68 4.1.2 Develop Project Charter: Tools and Techniques.......................................... 71 4.1.3 Develop Project Charter: Outputs ................................................................ 71 4.2 Develop Project Management Plan.......................................................................... 72 4.2.1 Develop Project Management Plan: Inputs ................................................. 74 4.2.2 Develop Project Management Plan: Tools and Techniques ........................ 76 4.2.3 Develop Project Management Plan: Outputs............................................... 76 II ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.TABLE OF CONTENTS 4.3 Direct and Manage Project Work............................................................................. 79 4.3.1 Direct and Manage Project Work: Inputs .................................................... 82 4.3.2 Direct and Manage Project Work: Tools and Techniques ........................... 83 4.3.3 Direct and Manage Project Work: Outputs.................................................. 84 4.4 Monitor and Control Project Work ........................................................................... 86 4.4.1 Monitor and Control Project Work: Inputs................................................... 88 4.4.2 Monitor and Control Project Work: Tools and Techniques.......................... 91 4.4.3 Monitor and Control Project Work: Outputs ................................................ 92 4.5 Perform Integrated Change Control......................................................................... 94 4.5.1 Perform Integrated Change Control: Inputs ................................................ 97 4.5.2 Perform Integrated Change Control: Tools and Techniques ....................... 98 4.5.3 Perform Integrated Change Control: Outputs.............................................. 99 4.6 Close Project or Phase ........................................................................................... 100 4.6.1 Close Project or Phase: Inputs................................................................... 102 4.6.2 Close Project or Phase: Tools and Techniques.......................................... 102 4.6.3 Close Project or Phase: Outputs ................................................................ 103 5. PROJECT SCOPE MANAGEMENT...................................................................................... 105 5.1 Plan Scope Management........................................................................................ 107 5.1.1 Plan Scope Management: Inputs............................................................... 108 5.1.2 Plan Scope Management: Tools and Techniques...................................... 109 5.1.3 Plan Scope Management: Outputs ............................................................ 109 5.2 Collect Requirements ............................................................................................. 110 5.2.1 Collect Requirements: Inputs .................................................................... 113 5.2.2 Collect Requirements: Tools and Techniques ........................................... 114 5.2.3 Collect Requirements: Outputs.................................................................. 117 5.3 Define Scope........................................................................................................... 120 5.3.1 Define Scope: Inputs .................................................................................. 121 5.3.2 Define Scope: Tools and Techniques ......................................................... 122 5.3.3 Define Scope: Outputs................................................................................ 123 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK III ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.TABLE OF CONTENTS 5.4 Create WBS ............................................................................................................. 125 5.4.1 Create WBS: Inputs .................................................................................... 127 5.4.2 Create WBS: Tools and Techniques ........................................................... 128 5.4.3 Create WBS: Outputs.................................................................................. 131 5.5 Validate Scope ........................................................................................................ 133 5.5.1 Validate Scope: Inputs ............................................................................... 134 5.5.2 Validate Scope: Tools and Techniques ...................................................... 135 5.5.3 Validate Scope: Outputs............................................................................. 135 5.6 Control Scope ......................................................................................................... 136 5.6.1 Control Scope: Inputs................................................................................. 138 5.6.2 Control Scope: Tools and Techniques........................................................ 139 5.6.3 Control Scope: Outputs .............................................................................. 139 6. PROJECT TIME MANAGEMENT......................................................................................... 141  6.1 Plan Schedule Management ................................................................................. 145 6.1.1 Plan Schedule Management: Inputs.......................................................... 146 6.1.2 Plan Schedule Management: Tools and Techniques................................. 147 6.1.3 Plan Schedule Management: Outputs ....................................................... 148 6.2 Define Activities...................................................................................................... 149 6.2.1 Define Activities: Inputs............................................................................. 150 6.2.2 Define Activities: Tools and Techniques.................................................... 151 6.2.3 Define Activities: Outputs .......................................................................... 152 6.3 Sequence Activities ................................................................................................ 153 6.3.1 Sequence Activities: Inputs ....................................................................... 154 6.3.2 Sequence Activities: Tools and Techniques .............................................. 156 6.3.3 Sequence Activities: Outputs..................................................................... 159 6.4 Estimate Activity Resources .................................................................................. 160 6.4.1 Estimate Activity Resources: Inputs.......................................................... 162 6.4.2 Estimate Activity Resources: Tools and Techniques................................. 164 6.4.3 Estimate Activity Resources: Outputs ....................................................... 165 IV ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.TABLE OF CONTENTS 6.5 Estimate Activity Durations.................................................................................... 165 6.5.1 Estimate Activity Durations: Inputs........................................................... 167 6.5.2 Estimate Activity Durations: Tools and Techniques.................................. 169 6.5.3 Estimate Activity Durations: Outputs ........................................................ 172 6.6 Develop Schedule ................................................................................................... 172 6.6.1 Develop Schedule: Inputs .......................................................................... 174 6.6.2 Develop Schedule: Tools and Techniques ................................................. 176 6.6.3 Develop Schedule: Outputs........................................................................ 181 6.7 Control Schedule .................................................................................................... 185 6.7.1 Control Schedule: Inputs............................................................................ 187 6.7.2 Control Schedule: Tools and Techniques................................................... 188 6.7.3 Control Schedule: Outputs ......................................................................... 190 7. PROJECT COST MANAGEMENT ........................................................................................ 193 7.1 Plan Cost Management .......................................................................................... 195 7.1.1 Plan Cost Management: Inputs.................................................................. 196 7.1.2 Plan Cost Management: Tools and Techniques......................................... 198 7.1.3 Plan Cost Management: Outputs ............................................................... 198 7.2 Estimate Costs........................................................................................................ 200 7.2.1 Estimate Costs: Inputs ............................................................................... 202 7.2.2 Estimate Costs: Tools and Techniques ...................................................... 204 7.2.3 Estimate Costs: Outputs............................................................................. 207 7.3 Determine Budget................................................................................................... 208 7.3.1 Determine Budget: Inputs .......................................................................... 209 7.3.2 Determine Budget: Tools and Techniques ................................................. 211 7.3.3 Determine Budget: Outputs........................................................................ 212 7.4 Control Costs .......................................................................................................... 215 7.4.1 Control Costs: Inputs.................................................................................. 216 7.4.2 Control Costs: Tools and Techniques......................................................... 217 7.4.3 Control Costs: Outputs ............................................................................... 225 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK V ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.TABLE OF CONTENTS 8. PROJECT QUALITY MANAGEMENT................................................................................... 227 8.1 Plan Quality Management ...................................................................................... 231 8.1.1 Plan Quality Management: Inputs ............................................................. 233 8.1.2 Plan Quality Management: Tools and Techniques .................................... 235 8.1.3 Plan Quality Management: Outputs........................................................... 241 8.2 Perform Quality Assurance .................................................................................... 242 8.2.1 Perform Quality Assurance: Inputs............................................................ 244 8.2.2 Perform Quality Assurance: Tools and Techniques................................... 245 8.2.3 Perform Quality Assurance: Outputs ......................................................... 247 8.3 Control Quality ........................................................................................................ 248 8.3.1 Control Quality: Inputs ............................................................................... 250 8.3.2 Control Quality: Tools and Techniques ...................................................... 252 8.3.3 Control Quality: Outputs............................................................................. 252 9. PROJECT HUMAN RESOURCE MANAGEMENT.................................................................. 255 9.1 Plan Human Resource Management...................................................................... 258 9.1.1 Plan Human Resource Management: Inputs............................................. 259 9.1.2 Plan Human Resource Management: Tools and Techniques.................... 261 9.1.3 Plan Human Resource Management: Outputs .......................................... 264 9.2 Acquire Project Team ............................................................................................. 267 9.2.1 Acquire Project Team: Inputs..................................................................... 269 9.2.2 Acquire Project Team: Tools and Techniques............................................ 270 9.2.3 Acquire Project Team: Outputs .................................................................. 272 9.3 Develop Project Team............................................................................................. 273 9.3.1 Develop Project Team: Inputs .................................................................... 274 9.3.2 Develop Project Team: Tools and Techniques ........................................... 275 9.3.3 Develop Project Team: Outputs.................................................................. 278 9.4 Manage Project Team............................................................................................. 279 9.4.1 Manage Project Team: Inputs .................................................................... 281 9.4.2 Manage Project Team: Tools and Techniques ........................................... 282 9.4.3 Manage Project Team: Outputs.................................................................. 284 VI ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.TABLE OF CONTENTS 10. PROJECT COMMUNICATIONS MANAGEMENT ................................................................ 287 10.1 Plan Communications Management.................................................................... 289 10.1.1 Plan Communications Management: Inputs ........................................... 290 10.1.2 Plan Communications Management: Tools and Techniques .................. 291 10.1.3 Plan Communications Management: Outputs..........................................296 10.2 Manage Communications .................................................................................... 297 10.2.1 Manage Communications: Inputs............................................................ 299 10.2.2 Manage Communications: Tools and Techniques................................... 300 10.2.3 Manage Communications: Outputs ......................................................... 301 10.3 Control Communications...................................................................................... 303 10.3.1 Control Communications: Inputs ............................................................. 304 10.3.2 Control Communications: Tools and Techniques .................................... 306 10.3.3 Control Communications: Outputs........................................................... 307 11. PROJECT RISK MANAGEMENT....................................................................................... 309 11.1 Plan Risk Management ........................................................................................ 313 11.1.1 Plan Risk Management: Inputs................................................................ 314 11.1.2 Plan Risk Management: Tools and Techniques....................................... 315 11.1.3 Plan Risk Management: Outputs ............................................................. 316 11.2 Identify Risks........................................................................................................ 319 11.2.1 Identify Risks: Inputs ............................................................................... 321 11.2.2 Identify Risks: Tools and Techniques ...................................................... 324 11.2.3 Identify Risks: Outputs............................................................................. 327 11.3 Perform Qualitative Risk Analysis ....................................................................... 328 11.3.1 Perform Qualitative Risk Analysis: Inputs............................................... 329 11.3.2 Perform Qualitative Risk Analysis: Tools and Techniques...................... 330 11.3.3 Perform Qualitative Risk Analysis: Outputs ............................................ 333 11.4 Perform Quantitative Risk Analysis ..................................................................... 333 11.4.1 Perform Quantitative Risk Analysis: Inputs ............................................ 335 11.4.2 Perform Quantitative Risk Analysis: Tools and Techniques ................... 336 11.4.3 Perform Quantitative Risk Analysis: Outputs.......................................... 341 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK VII ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.TABLE OF CONTENTS 11.5 Plan Risk Responses ............................................................................................ 342 11.5.1 Plan Risk Responses: Inputs ................................................................... 343 11.5.2 Plan Risk Responses: Tools and Techniques .......................................... 343 11.5.3 Plan Risk Responses: Outputs................................................................. 346 11.6 Control Risks ........................................................................................................ 349 11.6.1 Control Risks: Inputs................................................................................ 350 11.6.2 Control Risks: Tools and Techniques....................................................... 351 11.6.3 Control Risks: Outputs ............................................................................. 353 12. PROJECT PROCUREMENT MANAGEMENT...................................................................... 355 12.1 Plan Procurement Management .......................................................................... 358 12.1.1 Plan Procurement Management: Inputs.................................................. 360 12.1.2 Plan Procurement Management: Tools and Techniques......................... 365 12.1.3 Plan Procurement Management: Outputs ............................................... 366 12.2 Conduct Procurements......................................................................................... 371 12.2.1 Conduct Procurements: Inputs................................................................ 373 12.2.2 Conduct Procurements: Tools and Techniques ....................................... 375 12.2.3 Conduct Procurements: Outputs.............................................................. 377 12.3 Control Procurements .......................................................................................... 379 12.3.1 Control Procurements: Inputs.................................................................. 381 12.3.2 Control Procurements: Tools and Techniques......................................... 383 12.3.3 Control Procurements: Outputs ............................................................... 384 12.4 Close Procurements ............................................................................................. 386 12.4.1 Close Procurements: Inputs..................................................................... 388 12.4.2 Close Procurements: Tools and Techniques............................................ 388 12.4.3 Close Procurements: Outputs .................................................................. 389 13. PROJECT STAKEHOLDER MANAGEMENT ....................................................................... 391 13.1 Identify Stakeholders ........................................................................................... 393 13.1.1 Identify Stakeholders: Inputs................................................................... 394 13.1.2 Identify Stakeholders: Tools and Techniques.......................................... 395 13.1.3 Identify Stakeholders: Outputs ................................................................ 398 VIII ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.TABLE OF CONTENTS 13.2 Plan Stakeholder Management............................................................................ 399 13.2.1 Plan Stakeholder Management: Inputs ................................................... 400 13.2.2 Plan Stakeholder Management: Tools and Techniques .......................... 401 13.2.3 Plan Stakeholder Management: Outputs................................................. 403 13.3 Manage Stakeholder Engagement....................................................................... 404 13.3.1 Manage Stakeholder Engagement: Inputs .............................................. 406 13.3.2 Manage Stakeholder Engagement: Tools and Techniques ..................... 407 13.3.3 Manage Stakeholder Engagement: Outputs............................................ 408 13.4 Control Stakeholder Engagement........................................................................ 409 13.4.1 Control Stakeholder Engagement: Inputs ............................................... 411 13.4.2 Control Stakeholder Engagement: Tools and Techniques ...................... 412 13.4.3 Control Stakeholder Engagement: Outputs............................................. 413 ANNEX A1 THE STANDARD FOR PROJECT MANAGEMENT OF A PROJECT.......................... 417 APPENDIX X1 FIFTH EDITION CHANGES .............................................................................. 463 Appendix X2 Contributors and Reviewers of the PMBOK® Guide – Fifth Edition...................................................................................................................... 483 APPENDIX X3 INTERPERSONAL SKILLS............................................................................... 513 REFERENCES ........................................................................................................................ 521 Glossary............................................................................................................................ 523 INDEX ................................................................................................................................... 569 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition IX Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.List of TABLES and Figures List of TABLES and Figures Figure 1-1. Portfolio, Program, and Project Management Interactions................................................5 Figure 2-1. Functional Organization ....................................................................................................22 Figure 2-2. Weak Matrix Organization.................................................................................................23 Figure 2-3. Balanced Matrix Organization...........................................................................................24 Figure 2-4. Strong Matrix Organization ...............................................................................................24 Figure 2-5. Projectized Organization ...................................................................................................25 Figure 2-6. Composite Organization ....................................................................................................26 Figure 2-7. The Relationship Between Stakeholders and the Project................................................31 Figure 2-8. Typical Cost and Staffing Levels Across a Generic Project Life Cycle Structure ............39 Figure 2-9. Impact of Variable Based on Project Time .......................................................................40 Figure 2-10. Example of a Single-Phase Project...................................................................................42 Figure 2-11. Example of a Three-Phase Project....................................................................................43 Figure 2-12. Example of a Project with Overlapping Phases................................................................43 Figure 2-13. Example of Predictive Life Cycle.......................................................................................44 Figure 3-1. Project Management Process Groups...............................................................................50 Figure 3-2. Process Groups Interact in a Phase or Project.................................................................51 Figure 3-3. Project Management Process Interactions ......................................................................53 Figure 3-4. Project Boundaries ............................................................................................................54 Figure 3-5. Project Data, Information and Report Flow ......................................................................59 Figure 3-6. Data Flow Diagram Legend...............................................................................................60 Figure 4-1. Project Integration Management Overview......................................................................65 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK XI ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.List of TABLES and Figures Figure 4-2. Develop Project Charter: Inputs, Tools and Techniques, and Outputs .............................66 Figure 4-3. Develop Project Charter Data Flow Diagram....................................................................67 Figure 4-3. Develop Project Charter Data Flow Diagram....................................................................72 Figure 4-5. Develop Project Management Plan Data Flow Diagram ..................................................73 Figure 4-6. Direct and Manage Project Work: Inputs, Tools and Techniques, and Outputs...............79 Figure 4-7. Direct and Manage Project Work: Data Flow Diagram.....................................................80 Figure 4-8. Monitor and Control Project Work: Inputs, Tools & Techniques, and Outputs.................86 Figure 4-9. Monitor and Control Project Work Data Flow Diagram....................................................87 Figure 4-10. Perform Integrated Change Control: Inputs, Tools & Techniques, and Outputs ..............94 Figure 4-11. Perform Integrated Change Control Data Flow Diagram..................................................95 Figure 4-12. Close Project or Phase: Inputs, Tools & Techniques, and Outputs.................................100 Figure 4-13. Close Project or Phase Data Flow Diagram....................................................................101 Figure 5-1. Project Scope Management Overview............................................................................106 Figure 5-2. Plan Scope Management: Inputs, Tools & Techniques, and Outputs.............................107 Figure 5-3. Plan Scope Management Data Flow Diagram................................................................107 Figure 5-4. Collect Requirements: Inputs, Tools & Techniques, and Outputs ..................................111 Figure 5-5. Collect Requirements Data Flow Diagram......................................................................111 Figure 5-6. Example of a Requirements Traceability Matrix.............................................................119 Figure 5-7. Define Scope: Inputs, Tools & Techniques, and Outputs ................................................120 Figure 5-8. Define Scope Data Flow Diagram ...................................................................................120 Figure 5-9. Create WBS: Inputs, Tools & Techniques, and Outputs ..................................................125 Figure 5-10. Create WBS Data Flow Diagram......................................................................................126 XII ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.List of TABLES and Figures Figure 5-11. Sample WBS Decomposed Down Through Work Packages...........................................129 Figure 5-12. Sample WBS Organized by Phase...................................................................................130 Figure 5-13. Sample WBS with Major Deliverables.............................................................................130 Figure 5-14. Validate Scope: Inputs, Tools & Techniques, and Outputs .............................................133 Figure 5-15. Validate Scope Data Flow Diagram.................................................................................133 Figure 5-16. Control Scope: Inputs, Tools & Techniques, and Outputs...............................................136 Figure 5-17. Control Scope Data Flow Diagram..................................................................................137 Figure 6-1. Project Time Management Overview..............................................................................143 Figure 6-2. Scheduling Overview.......................................................................................................144 Figure 6-3. Plan Schedule Management: Inputs, Tools & Techniques, and Outputs........................145 Figure 6-4. Plan Schedule Management Data Flow Diagram...........................................................145 Figure 6-5. Define Activities: Inputs, Tools & Techniques, and Outputs...........................................149 Figure 6-6. Define Activities Data Flow Diagram ..............................................................................150 Figure 6-7. Sequence Activities: Inputs, Tools & Techniques, and Outputs .....................................153 Figure 6-8. Sequence Activities Data Flow Diagram.........................................................................154 Figure 6-9. Precedence Diagramming Method (PDM) Relationship Types ......................................157 Figure 6-10. Examples of Lead and Lag ..............................................................................................158 Figure 6-11. Project Schedule Network Diagram................................................................................160 Figure 6-12. Estimate Activity Resources: Inputs, Tools & Techniques, and Outputs........................161 Figure 6-13. Estimate Activity Resources Data Flow Diagram...........................................................161 Figure 6-14. Estimate Activity Durations: Inputs, Tools & Techniques, and Outputs.........................166 Figure 6-15. Estimate Activity Durations Data Flow Diagram ............................................................166 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK XIII ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.List of TABLES and Figures Figure 6-16 Develop Schedule: Inputs, Tools & Techniques, and Outputs ........................................173 Figure 6-17. Develop Schedule Data Flow Diagram............................................................................173 Figure 6-18. Example of Critical Path Method.....................................................................................177 Figure 6-19. Example of Critical Chain Method...................................................................................178 Figure 6-20. Resource Leveling ...........................................................................................................179 Figure 6-21. Project Schedule Presentations —Examples.................................................................183 Figure 6-22. Control Schedule: Inputs, Tools & Techniques, and Outputs..........................................185 Figure 6-23. Control Schedule Data Flow Diagram.............................................................................186 Figure 7-1. Project Cost Management Overview...............................................................................194 Figure 7-2. Plan Cost Management: Inputs, Tools & Techniques, and Outputs................................195 Figure 7-3. Plan Cost Management: Data Flow Diagram..................................................................196 Figure 7-4. Estimate Costs: Inputs, Tools & Techniques, and Outputs .............................................200 Figure 7-5. Estimate Costs Data Flow Diagram.................................................................................201 Figure 7-6. Determine Budget: Inputs, Tools & Techniques, and Outputs ........................................208 Figure 7-7. Determine Budget Data Flow Diagram ...........................................................................209 Figure 7-8. Project Budget Components............................................................................................213 Figure 7-9. Cost Baseline, Expenditures, and Funding Requirements .............................................214 Figure 7-10. Control Costs: Inputs, Tools & Techniques, and Outputs................................................215 Figure 7-11. Control Costs Data Flow Diagram...................................................................................215 Figure 7-12. Earned Value, Planned Value, and Actual Costs.............................................................219 Figure 7-13. To-Complete Performance Index (TCPI)..........................................................................222 XIV ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.List of TABLES and Figures Figure 8-1. Project Quality Management Overview...........................................................................230 Figure 8-2. Fundamental Relationships of Quality Assurance and Control Quality to the IPECC,  PDCA, Cost of Quality Models and Project Management Process Groups.....................231 Figure 8-3. Plan Quality Management Inputs, Tools & Techniques, and Outputs ............................232 Figure 8-4. Plan Quality Management Data Flow Diagram...............................................................232 Figure 8-5. Cost of Quality..................................................................................................................235 Figure 8-6. The SIPOC Model..............................................................................................................237 Figure 8-7. Storyboard Illustrating a Conceptual Example of Each of the Seven  Basic Quality Tools ..........................................................................................................239 Figure 8-8. Perform Quality Assurance: Inputs, Tools & Techniques, and Outputs..........................243 Figure 8-9. Perform Quality Assurance Data Flow Diagram.............................................................243 Figure 8-10. Storyboard Illustrating the Seven Quality Management and Control Tools ..................246 Figure 8-11. Control Quality: Inputs, Tools & Techniques, and Outputs .............................................249 Figure 8-12. Control Quality Data Flow Diagram.................................................................................249 Figure 9-1. Project Human Resource Management Overview..........................................................257 Figure 9-2. Plan Human Resource Management: Inputs, Tools & Techniques, and Outputs...........258 Figure 9-3. Plan Human Resource Management Data Flow Diagram ..............................................258 Figure 9-4. Roles and Responsibility Definition Formats..................................................................261 Figure 9-5. RACI Matrix ......................................................................................................................262 Figure 9-6. Illustrative Resource Histogram......................................................................................266 Figure 9-7. Acquire Project Team: Inputs, Tools & Techniques, and Outputs...................................267 Figure 9-8. Acquire Project Team Data Flow Diagram......................................................................268 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK XV ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.List of TABLES and Figures Figure 9-9. Develop Project Team: Inputs, Tools & Techniques, and Outputs ..................................273 Figure 9-10. Develop Project Team Data Flow Diagram .....................................................................273 Figure 9-11. Manage Project Team: Inputs, Tools & Techniques, and Outputs ..................................279 Figure 9-12. Manage Project Team Data Flow Diagram .....................................................................280 Figure 10-1. Project Communications Management Overview ..........................................................288 Figure 10-2. Plan Communications Management: Inputs, Tools & Techniques, and Outputs ...........289 Figure 10-3. Plan Communications Management Data Flow Diagram ..............................................289 Figure 10-4. Basic Communication Model ..........................................................................................294 Figure 10-5. Manage Communications: Inputs, Tools & Techniques, and Outputs............................297 Figure 10-6. Manage Communications Data Flow Diagram...............................................................298 Figure 10-7. Control Communications: Inputs, Tools & Techniques, and Outputs .............................303 Figure 10-8. Control Communications Data Flow Diagram ................................................................304 Figure 11-1. Project Risk Management Overview...............................................................................312 Figure 11-2. Plan Risk Management: Inputs, Tools & Techniques, and Outputs................................313 Figure 11-3. Plan Risk Management Data Flow Diagram...................................................................313 Figure 11-4. Example of a Risk Breakdown Structure (RBS)..............................................................317 Figure 11-5. Identify Risks: Inputs, Tools & Techniques, and Outputs ...............................................319 Figure 11-6. Identify Risks Data Flow Diagram...................................................................................320 Figure 11-7. Influence Diagram ...........................................................................................................326 Figure 11-8. Perform Qualitative Risk Analysis: Inputs, Tools & Techniques, and Outputs...............328 Figure 11-9. Perform Qualitative Risk Analysis Data Flow Diagram..................................................328 Figure 11-10. Probability and Impact Matrix.........................................................................................331 XVI ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.List of TABLES and Figures Figure 11-11. Perform Quantitative Risk Analysis: Inputs, Tools & Techniques, and Outputs ............334 Figure 11-12. Perform Quantitative Risk Analysis Data Flow Diagram................................................334 Figure 11-13. Range of Project Cost Estimates Collected During the Risk Interview ........................336 Figure 11-14. Examples of Commonly Used Probability Distributions.................................................337 Figure 11-15. Example of Tornado Diagram..........................................................................................338 Figure 11-16. Decision Tree Diagram ....................................................................................................339 Figure 11-17. Cost Risk Simulation Results ..........................................................................................340 Figure 11-18. Plan Risk Responses: Inputs, Tools & Techniques, and Outputs ...................................342 Figure 11-19. Plan Risk Responses Data Flow Diagram.......................................................................342 Figure 11-20. Control Risks: Inputs, Tools & Techniques, and Outputs................................................349 Figure 11-21. Control Risks Data Flow Diagram...................................................................................349 Figure 12-1. Project Procurement Management Overview.................................................................356 Figure 12-2. Plan Procurements: Inputs, Tools & Techniques, and Outputs ......................................358 Figure 12-3. Plan Procurement Management Data Flow Diagram.....................................................359 Figure 12-4. Conduct Procurements: Inputs, Tools & Techniques, and Outputs ................................371 Figure 12-5. Conduct Procurements Data Flow Diagram ...................................................................372 Figure 12-6. Control Procurements: Inputs, Tools & Techniques, and Outputs..................................379 Figure 12-7. Control Procurements Data Flow Diagram.....................................................................380 Figure 12-8. Close Procurements: Inputs, Tools & Techniques, and Outputs.....................................386 Figure 12-9. Close Procurements Data Flow Diagram........................................................................387 Figure 13-1. Project Stakeholder Management Overview ..................................................................392 Figure 13-2. Identify Stakeholders: Inputs, Tools & Techniques, and Outputs...................................393 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK XVII ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.List of TABLES and Figures Figure 13-3. Identify Stakeholders Data Flow Diagram......................................................................393 Figure 13-4. Example Power/Interest Grid with Stakeholders ...........................................................397 Figure 13-5. Plan Stakeholder Management: Inputs, Tools & Techniques, and Outputs ...................399 Figure 13-6. Plan Stakeholder Management Data Flow Diagram ......................................................399 Figure 13-7. Stakeholders Engagement Assessment Matrix..............................................................403 Figure 13-8. Manage Stakeholder Engagement: Inputs, Tools & Techniques, and Outputs ..............404 Figure 13-9. Manage Stakeholder Engagement Data Flow Diagram .................................................405 Figure 13-10. Control Stakeholder Engagement: Inputs, Tools & Techniques, and Outputs ...............410 Figure 13-11. Control Stakeholder Engagement: Data Flow Diagram..................................................410 Figure A1-1. Process Group Interactions in a Project.........................................................................419 Figure A1-2. Project Management Process Interactions ....................................................................421 Figure A1-3. Project Boundaries ..........................................................................................................425 Figure A1-4. Initiating Process Group..................................................................................................425 Figure A1-5. Develop Project Charter: Inputs and Outputs .................................................................426 Figure A1-6. Identify Stakeholders: Inputs and Outputs.....................................................................426 Figure A1-7. Planning Process Group ..................................................................................................428 Figure A1-8. Develop Project Management Plan: Inputs and Outputs ...............................................429 Figure A1-9. Plan Scope Management: Inputs and Outputs ...............................................................429 Figure A1-10. Collect Requirements: Inputs and Outputs.....................................................................430 Figure A1-11. Define Scope: Inputs and Outputs ..................................................................................430 Figure A1-12. Create WBS: Inputs and Outputs.....................................................................................431 Figure A1-13. Plan Schedule Management: Inputs and Outputs ..........................................................431 XVIII ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.List of TABLES and Figures Figure A1-14. Define Activities: Inputs and Outputs .............................................................................432 Figure A1-15. Sequence Activities: Inputs and Outputs........................................................................432 Figure A1-16. Estimate Activity Resources: Inputs and Outputs ..........................................................433 Figure A1-17. Estimate Activity Durations: Inputs and Outputs ...........................................................434 Figure A1-18. Develop Schedule: Inputs and Outputs...........................................................................435 Figure A1-19. Plan Cost Management: Inputs and Outputs..................................................................436 Figure A1-20. Estimate Costs: Inputs and Outputs................................................................................436 Figure A1-21. Determine Budget: Inputs and Outputs ..........................................................................437 Figure A1-22. Plan Quality Management: Inputs and Outputs..............................................................438 Figure A1-23. Plan Human Resource Management: Inputs and Outputs .............................................438 Figure A1-24. Plan Communications Management: Inputs and Outputs .............................................439 Figure A1-25. Plan Risk Management: Inputs and Outputs ..................................................................439 Figure A1-26. Identify Risks: Inputs and Outputs..................................................................................440 Figure A1-27. Perform Qualitative Risk Analysis: Inputs and Outputs .................................................441 Figure A1-28. Perform Quantitative Risk Analysis: Inputs and Outputs...............................................441 Figure A1-29. Plan Risk Responses: Inputs and Outputs......................................................................442 Figure A1-30. Plan Procurement Management: Inputs and Outputs ....................................................443 Figure A1-31. Plan Stakeholder Management: Inputs and Outputs .....................................................443 Figure A1-32. Executing Process Group ................................................................................................445 Figure A1-33. Direct and Manage Project Work: Inputs and Outputs...................................................446 Figure A1-34. Perform Quality Assurance: Inputs and Outputs ............................................................446 Figure A1-35. Acquire Project Team: Inputs and Outputs .....................................................................447 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition XIX Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.List of TABLES and Figures Figure A1-36. Develop Project Team: Inputs and Outputs.....................................................................447 Figure A1-37. Manage Project Team: Inputs and Outputs.....................................................................448 Figure A1-38. Manage Communications: Inputs and Outputs ..............................................................448 Figure A1-39. Conduct Procurements: Inputs and Outputs ..................................................................449 Figure A1-40. Manage Stakeholder Engagement: Inputs and Outputs ................................................450 Figure A1-41. Monitoring and Controlling Process Group ....................................................................451 Figure A1-42. Monitor and Control Project Work: Inputs and Outputs .................................................452 Figure A1-43. Perform Integrated Change Control: Inputs and Outputs...............................................453 Figure A1-44. Validate Scope: Inputs and Outputs................................................................................453 Figure A1-45. Control Scope: Inputs and Outputs .................................................................................454 Figure A1-46. Control Schedule: Inputs and Outputs ............................................................................455 Figure A1-47. Control Costs: Inputs and Outputs ..................................................................................455 Figure A1-48. Control Quality: Inputs and Outputs................................................................................456 Figure A1-49. Control Communications: Inputs and Outputs ...............................................................457 Figure A1-50. Control Risks: Inputs and Outputs ..................................................................................457 Figure A1-51. Control Procurements: Inputs and Outputs ....................................................................458 Figure A1-52. Control Stakeholder Engagement: Inputs and Outputs..................................................459 Figure A1-53. Closing Process Group ....................................................................................................460 Figure A1-54. Close Project or Phase: Inputs and Outputs ...................................................................461 Figure A1-55. Close Procurements: Inputs and Outputs .......................................................................461 XX ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.List of TABLES and Figures Figure X1-1. Refined Data Model .........................................................................................................467 Table 1-1. Comparative Overview of Project, Program, and Portfolio Management..........................8 Table 2-1. Influence of Organizational Structures on Projects .........................................................22 Table 3-1. Project Management Process Group and Knowledge Area Mapping..............................61 Table 4-1 Differentiation Between the Project Management Plan and Project Documents ...........78 Table 5-1. Elements of the Project Charter and Project Scope Statement .....................................124 Table 7-1. Earned Value Calculations Summary Table....................................................................224 Table 11-1. Definition of Impact Scales for Four Project Objectives ................................................318 Table A1-1. Project Management Process Group and Knowledge Area Mapping............................423 Table X1-1. Section 4 Changes ...........................................................................................................472 Table X1-2. Section 5 Changes ...........................................................................................................473 Table X1-3. Section 6 Changes ...........................................................................................................474 Table X1-4. Section 7 Changes ...........................................................................................................475 Table X1-5. Section 8 Changes ...........................................................................................................476 Table X1-6. Section 9 Changes ...........................................................................................................477 Table X1-7. Section 10 Changes .........................................................................................................478 Table X1-8. Section 11 Changes .........................................................................................................479 Table X1-9. Section 12 Changes .........................................................................................................480 Table X1-10. Section 13 Changes .........................................................................................................481 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK XXI ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.1 - INTRODUCTION 11 1 Introduction A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition provides guidelines  for managing individual projects and defines project management related concepts. It also describes the project  management life cycle and its related processes, as well as the project life cycle. The PMBOK® Guide contains the globally recognized standard and guide for the project management profession  (found in Annex A1). A standard is a formal document that describes established norms, methods, processes, and  practices. As with other professions, the knowledge contained in this standard has evolved from the recognized  good practices of project management practitioners who have contributed to the development of this standard. The first two sections of the PMBOK® Guide provide an introduction to key concepts in the project management  field. Section 3 summarizes the Process Groups and provides an overview of process interactions among the ten  Knowledge Areas and five Process Groups. Sections 4 through 13 are the guide to the project management body of  knowledge. These sections expand on the information in the standard by describing the inputs and outputs, as well  as tools and techniques used in managing projects. Annex A1 is the standard for project management and presents  the processes, inputs, and outputs that are considered to be good practice on most projects most of the time. This section defines several key terms and the relationship among portfolio management, program management,  project management and organizational project management. An overview of the PMBOK® Guide is found within  the following sections: 1.1 Purpose of the PMBOK® Guide 1.2 What is a Project? 1.3 What is Project Management? 1.4 Relationships Among Portfolio Management, Program Management,  Project Management,and Organizational Project Management 1.5 Relationship Between Project Management, Operations Management,  and Organizational Strategy 1.6 Business Value 1.7 Role of the Project Manager 1.8 Project Management Body of Knowledge ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK 1 ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.1 - INTRODUCTION 1.1 Purpose of the PMBOK® Guide The acceptance of project management as a profession indicates that the application of knowledge, processes,  skills, tools, and techniques can have a significant impact on project success. The PMBOK® Guide identifies that  subset of the project management body of knowledge that is generally recognized as good practice. “Generally  recognized” means the knowledge and practices described are applicable to most projects most of the time, and  there is consensus about their value and usefulness. “Good practice” means there is general agreement that the  application of the knowledge, skills, tools, and techniques can enhance the chances of success over many projects.  “Good practice” does not mean that the knowledge described should always be applied uniformly to all projects; the  organization and/or project management team is responsible for determining what is appropriate for any given project. The PMBOK® Guide also provides and promotes a common vocabulary within the project management  profession for using and applying project management concepts. A common vocabulary is an essential element of  a professional discipline. The PMI Lexicon of Project Management Terms [1]1 provides the foundational professional  vocabulary that can be consistently used by project, program, and portfolio managers and other stakeholders. Annex A1 is a foundational reference for PMI’s project management professional development programs. Annex  A1 continues to evolve along with the profession, and is therefore not all-inclusive; this standard is a guide rather  than a specific methodology. One can use different methodologies and tools (e.g., agile, waterfall, PRINCE2) to  implement the project management framework.  In addition to the standards that establish guidelines for project management processes, the Project Management  Institute Code of Ethics and Professional Conduct [2] guides practitioners of the profession and describes the  expectations that practitioners should hold for themselves and others. The Project Management Institute Code  of Ethics and Professional Conduct is specific about the basic obligation of responsibility, respect, fairness, and  honesty. It requires that practitioners demonstrate a commitment to ethical and professional conduct. It carries  the obligation to comply with laws, regulations, and organizational and professional policies. Practitioners come  from diverse backgrounds and cultures, and the Project Management Institute Code of Ethics and Professional  Conduct applies globally. When interacting with any stakeholder, practitioners should be committed to honest,  responsible, fair practices and respectful dealings. Acceptance of the code is essential for project managers, and is  a requirement for the following PMI® exams: •  Certified Associate in Project Management (CAPM)® •  Project Management Professional (PMP)® •  Program Management Professional (PgMP)® •  PMI Agile Certified Practitioner (PMI-ACP)SM •  PMI Risk Management Professional (PMI-RMP)® •  PMI Scheduling Professional (PMI-SP)® 1The numbers in brackets refer to the list of references at the end of this standard. 2 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.1 - INTRODUCTION 1.2 What is a Project? 1 A project is a temporary endeavor undertaken to create a unique product, service, or result. The temporary  nature of projects indicates that a project has a definite beginning and end. The end is reached when the project’s  objectives have been achieved or when the project is terminated because its objectives will not or cannot be met,  or when the need for the project no longer exists. A project may also be terminated if the client (customer, sponsor,  or champion) wishes to terminate the project. Temporary does not necessarily mean the duration of the project  is short. It refers to the project’s engagement and its longevity. Temporary does not typically apply to the product,  service, or result created by the project; most projects are undertaken to create a lasting outcome. For example, a  project to build a national monument will create a result expected to last for centuries. Projects can also have social,  economic, and environmental impacts that far outlive the projects themselves. Every project creates a unique product, service, or result. The outcome of the project may be tangible or  intangible. Although repetitive elements may be present in some project deliverables and activities, this repetition  does not change the fundamental, unique characteristics of the project work. For example, office buildings can  be constructed with the same or similar materials and by the same or different teams. However, each building  project remains unique with a different location, different design, different circumstances and situations, different  stakeholders, and so on. An ongoing work effort is generally a repetitive process that follows an organization’s existing procedures.  In contrast, because of the unique nature of projects, there may be uncertainties or differences in the products,  services, or results that the project creates. Project activities can be new to members of a project team, which  may necessitate more dedicated planning than other routine work. In addition, projects are undertaken at all  organizational levels. A project can involve a single individual or multiple individuals, a single organizational unit, or  multiple organizational units from multiple organizations. A project can create: •  A product that can be either a component of another item, an enhancement of an item, or an end item  in itself; •  A service or a capability to perform a service (e.g., a business function that supports production or  distribution); •  An improvement in the existing product or service lines (e.g., A Six Sigma project undertaken to reduce  defects); or •  A result, such as an outcome or document (e.g., a research project that develops knowledge that can be  used to determine whether a trend exists or a new process will benefit society). ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK 3 ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.1 - INTRODUCTION Examples of projects include, but are not limited to: •  Developing a new product, service, or result; •  Effecting a change in the structure, processes, staffing, or style of an organization; •  Developing or acquiring a new or modified information system (hardware or software); •  Conducting a research effort whose outcome will be aptly recorded; •  Constructing a building, industrial plant, or infrastructure; or •  Implementing, improving, or enhancing existing business processes and procedures. 1.2.1. The Relationships Among Portfolios, Programs, and Projects The relationship among portfolios, programs, and projects is such that a portfolio refers to a collection of projects,  programs, subportfolios, and operations managed as a group to achieve strategic objectives. Programs are grouped  within a portfolio and are comprised of subprograms, projects, or other work that are managed in a coordinated  fashion in support of the portfolio. Individual projects that are either within or outside of a program are still considered  part of a portfolio. Although the projects or programs within the portfolio may not necessarily be interdependent or  directly related, they are linked to the organization’s strategic plan by means of the organization’s portfolio. As Figure 1-1 illustrates, organizational strategies and priorities are linked and have relationships between  portfolios and programs, and between programs and individual projects. Organizational planning impacts  the projects by means of project prioritization based on risk, funding, and other considerations relevant to the  organization’s strategic plan. Organizational planning can direct the management of resources, and support for the  component projects on the basis of risk categories, specific lines of business, or general types of projects, such as  infrastructure and process improvement. 4 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.Subportfolios 1 - INTRODUCTION Portfolio • Strategies and priorities • Progressive elaboration • Governance • Disposition on requested changes • Impacts from changes in other  portfolios, programs, or projects  • Performance reports • Change requests with   impact on other portfolios,   programs, or projects  • Strategies and priorities • Progressive elaboration • Governance • Disposition on requested changes • Impacts from changes in other  portfolios, programs, or projects  • Performance reports • Change requests with   impact on other portfolios,   programs, or projects  1 Projects Projects Programs Subprograms Projects Projects • Strategies and priorities • Progressive elaboration • Governance • Disposition on requested changes • Impacts from changes in other  portfolios, programs, or projects  • Performance reports • Change requests with   impact on other portfolios,   programs, or projects  Projects Programs Subprograms Projects Figure 1-1. Portfolio, Program, and Project Management Interactions 1.3 What is Project Management? Project management is the application of knowledge, skills, tools, and techniques to project activities to meet the  project requirements. Project management is accomplished through the appropriate application and integration of  the 47 logically grouped project management processes, which are categorized into five Process Groups. These five  Process Groups are: •  Initiating, •  Planning, •  Executing, •  Monitoring and Controlling, and •  Closing. ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK 5 ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.1 - INTRODUCTION Managing a project typically includes, but is not limited to: •  Identifying requirements; •  Addressing the various needs, concerns, and expectations of the stakeholders in planning and executing  the project; •  Setting up, maintaining, and carrying out communications among stakeholders that are active, effective,  and collaborative in nature; •  Managing stakeholders towards meeting project requirements and creating project deliverables; •  Balancing the competing project constraints, which include, but are not limited to: ○ Scope, ○ Quality, ○ Schedule, ○ Budget, ○ Resources, and ○ Risks. The specific project characteristics and circumstances can influence the constraints on which the project  management team needs to focus. The relationship among these factors is such that if any one factor changes, at least one other factor is likely  to be affected. For example, if the schedule is shortened, often the budget needs to be increased to add additional  resources to complete the same amount of work in less time. If a budget increase is not possible, the scope or  targeted quality may be reduced to deliver the project’s end result in less time within the same budget amount.  Project stakeholders may have differing ideas as to which factors are the most important, creating an even greater  challenge. Changing the project requirements or objectives may create additional risks. The project team needs to  be able to assess the situation, balance the demands, and maintain proactive communication with stakeholders in  order to deliver a successful project. Due to the potential for change, the development of the project management plan is an iterative activity and is  progressively elaborated throughout the project’s life cycle. Progressive elaboration involves continuously improving  and detailing a plan as more detailed and specific information and more accurate estimates become available.  Progressive elaboration allows a project management team to define work and manage it to a greater level of detail  as the project evolves. 6 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.1 - INTRODUCTION 1.4 Relationships Among Portfolio Management, Program Management,  Project Management, and Organizational Project Management 1 In order to understand portfolio, program, and project management, it is important to recognize the similarities  and differences among these disciplines. It is also helpful to understand how they relate to organizational project  management (OPM). OPM is a strategy execution framework utilizing project, program, and portfolio management  as well as organizational enabling practices to consistently and predictably deliver organizational strategy producing  better performance, better results, and a sustainable competitive advantage. Portfolio, program, and project management are aligned with or driven by organizational strategies. Conversely,  portfolio, program, and project management differ in the way each contributes to the achievement of strategic goals.  Portfolio management aligns with organizational strategies by selecting the right programs or projects, prioritizing  the work, and providing the needed resources, whereas program management harmonizes its projects and program  components and controls interdependencies in order to realize specified benefits. Project management develops  and implements plans to achieve a specific scope that is driven by the objectives of the program or portfolio it is  subjected to and, ultimately, to organizational strategies. OPM advances organizational capability by linking project,  program, and portfolio management principles and practices with organizational enablers (e.g. structural, cultural,  technological, and human resource practices) to support strategic goals. An organization measures its capabilities,  then plans and implements improvements towards the systematic achievement of best practices. Table 1-1 shows the comparison of project, program, and portfolio views across several dimensions within  the organization. ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK 7 ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.1 - INTRODUCTION Table 1-1. Comparative Overview of Project, Program, and Portfolio Management Organizational Project Management Projects Programs Portfolios Scope Change Planning Management Success Monitoring Projects have defined  objectives. Scope is progres sively elaborated throughout the  project life cycle. Project managers expect change  and implement processes to  keep change managed and  controlled. Project managers progressively  elaborate high-level information  into detailed plans throughout  the project life cycle. Project managers manage the  project team to meet the project  objectives. Success is measured by product  and project quality, timeliness,  budget compliance, and degree  of customer satisfaction. Project managers monitor and  control the work of producing  the products, services, or results  that the project was undertaken  to produce. Programs have a larger scope  and provide more significant  benefits. Program managers expect  change from both inside and  outside the program and are  prepared to manage it. Program managers develop the  overall program plan and create  high-level plans to guide  detailed planning at the  component level. Program managers manage the  program staff and the project  managers; they provide vision  and overall leadership. Success is measured by the  degree to which the program  satisfies the needs and benefits  for which it was undertaken. Program managers monitor  the progress of program  components to ensure the  overall goals, schedules, budget,  and benefits of the program will  be met. Portfolios have an organizational  scope that changes with the  strategic objectives of the  organization. Portfolio managers continuously  monitor changes in the  broader internal and external  environment. Portfolio managers create and  maintain necessary processes  and communication relative to  the aggregate portfolio. Portfolio managers may manage  or coordinate portfolio  management staff, or program  and project staff that may have  reporting responsibilities into  the aggregate portfolio. Success is measured in terms  of the aggregate investment  performance and benefit  realization of the portfolio. Portfolio managers monitor  strategic changes and aggregate  resource allocation,  performance results, and risk  of the portfolio. 8 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.1 - INTRODUCTION 1.4.1 Program Management 1 A program is defined as a group of related projects, subprograms, and program activities managed in a  coordinated way to obtain benefits not available from managing them individually. Programs may include elements  of related work outside the scope of the discrete projects in the program. A project may or may not be part of a  program but a program will always have projects. Program management is the application of knowledge, skills, tools, and techniques to a program in order to  meet the program requirements and to obtain benefits and control not available by managing projects individually. Projects within a program are related through the common outcome or collective capability. If the relationship  between projects is only that of a shared client, seller, technology, or resource, the effort should be managed as a  portfolio of projects rather than as a program. Program management focuses on the project interdependencies and helps to determine the optimal approach  for managing them. Actions related to these interdependencies may include: •  Resolving resource constraints and/or conflicts that affect multiple projects within the program, •  Aligning organizational/strategic direction that affects project and program goals and objectives, and •  Resolving issues and change management within a shared governance structure. An example of a program is a new communications satellite system with projects for design of the satellite and  the ground stations, the construction of each, the integration of the system, and the launch of the satellite. 1.4.2 Portfolio Management A portfolio refers to projects, programs, subportfolios, and operations managed as a group to achieve strategic  objectives. The projects or programs of the portfolio may not necessarily be interdependent or directly related. For  example, an infrastructure firm that has the strategic objective of “maximizing the return on its investments” may  put together a portfolio that includes a mix of projects in oil and gas, power, water, roads, rail, and airports. From  this mix, the firm may choose to manage related projects as one program. All of the power projects may be grouped  together as a power program. Similarly, all of the water projects may be grouped together as a water program.  Thus, the power program and the water program become integral components of the enterprise portfolio of the  infrastructure firm. ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK 9 ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.1 - INTRODUCTION Portfolio management refers to the centralized management of one or more portfolios to achieve strategic  objectives. Portfolio management focuses on ensuring that projects and programs are reviewed to prioritize  resource allocation, and that the management of the portfolio is consistent with and aligned to organizational  strategies. 1.4.3 Projects and Strategic Planning Projects are often utilized as a means of directly or indirectly achieving objectives within an organization’s  strategic plan. Projects are typically authorized as a result of one or more of the following strategic considerations: •  Market demand (e.g., a car company authorizing a project to build more fuel-efficient cars in response  to gasoline shortages); •  Strategic opportunity/business need (e.g., a training company authorizing a project to create a new  course to increase its revenues); •  Social need (e.g., a nongovernmental organization in a developing country authorizing a project to provide  potable water systems, latrines, and sanitation education to communities suffering from high rates of  infectious diseases); •  Environmental consideration (e.g., a public company authorizing a project to create a new service for  electric car sharing to reduce pollution); •  Customer request (e.g., an electric utility authorizing a project to build a new substation to serve a new  industrial park); •  Technological advance (e.g., an electronics firm authorizing a new project to develop a faster, cheaper, and  smaller laptop based on advances in computer memory and electronics technology); and •  Legal requirement (e.g., a chemical manufacturer authorizing a project to establish guidelines for proper  handling of a new toxic material). 1.4.4 Project Management Office A project management office (PMO) is a management structure that standardizes the project-related governance  processes and facilitates the sharing of resources, methodologies, tools, and techniques. The responsibilities of a  PMO can range from providing project management support functions to actually being responsible for the direct  management of one or more projects. There are several types of PMO structures in organizations, each varying in the degree of control and influence  they have on projects within the organization, such as: 10 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.1 - INTRODUCTION •  Supportive. Supportive PMOs provide a consultative role to projects by supplying templates, best  practices, training, access to information and lessons learned from other projects. This type of PMO  1 serves as a project repository. The degree of control provided by the PMO is low. •  Controlling. Controlling PMOs provide support and require compliance through various means.  Compliance may involve adopting project management frameworks or methodologies, using specific  templates, forms and tools, or conformance to governance. The degree of control provided by the PMO  is moderate. •  Directive. Directive PMOs take control of the projects by directly managing the projects. The degree of  control provided by the PMO is high. The PMO integrates data and information from corporate strategic projects and evaluates how higher level  strategic objectives are being fulfilled. The PMO is the natural liaison between the organization’s portfolios,  programs, projects, and the corporate measurement systems (e.g. balanced scorecard). The projects supported or administered by the PMO may not be related, other than by being managed together.  The specific form, function, and structure of a PMO are dependent upon the needs of the organization that it  supports. A PMO may have the authority to act as an integral stakeholder and a key decision maker throughout the life  of each project, to make recommendations, or to terminate projects or take other actions, as required, to remain  aligned with the business objectives. In addition, the PMO may be involved in the selection, management, and  deployment of shared or dedicated project resources. A primary function of a PMO is to support project managers in a variety of ways which may include, but are not  limited to: •  Managing shared resources across all projects administered by the PMO; •  Identifying and developing project management methodology, best practices, and standards; •  Coaching, mentoring, training, and oversight; •  Monitoring compliance with project management standards, policies, procedures, and templates by means  of project audits; •  Developing and managing project policies, procedures, templates, and other shared documentation  (organizational process assets); and •  Coordinating communication across projects. ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK 11 ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.1 - INTRODUCTION Project managers and PMOs pursue different objectives and, as such, are driven by different requirements. All  of these efforts are aligned with the strategic needs of the organization. Differences between the role of project  managers and a PMO may include the following: •  The project manager focuses on the specified project objectives, while the PMO manages major program  scope changes, which may be seen as potential opportunities to better achieve business objectives. •  The project manager controls the assigned project resources to best meet project objectives, while the  PMO optimizes the use of shared organizational resources across all projects. •  The project manager manages the constraints (scope, schedule, cost, quality, etc.) of the individual  projects, while the PMO manages the methodologies, standards, overall risks/opportunities, metrics, and  interdependencies among projects at the enterprise level. 1.5 Relationship Between Project Management, Operations Management,  and Organizational Strategy Operations management is responsible for overseeing, directing, and controlling business operations. Operations  evolve to support the day-to-day business, and are necessary to achieve strategic and tactical goals of the business.  Examples include: production operations, manufacturing operations, accounting operations, software support, and  maintenance. Though temporary in nature, projects can help achieve the organizational goals when they are aligned with the  organization’s strategy. Organizations sometimes change their operations, products, or systems by creating strategic  business initiatives that are developed and implemented through projects. Projects require project management  activities and skill sets, while operations require business process management, operations management activities,  and skill sets. 1.5.1 Operations and Project Management Changes in business operations may be the focus of a dedicated project—especially if there are substantial  changes to business operations as a result of a new product or service delivery. Ongoing operations are outside of  the scope of a project; however, there are intersecting points where the two areas cross. Projects can intersect with operations at various points during the product life cycle, such as: 12 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.1 - INTRODUCTION •  At each closeout phase; 1 •  When developing a new product, upgrading a product, or expanding outputs; •  While improving operations or the product development process; or •  Until the end of the product life cycle. At each point, deliverables and knowledge are transferred between the project and operations for implementation  of the delivered work. This implementation occurs through a transfer of project resources to operations toward the  end of the project, or through a transfer of operational resources to the project at the start. Operations are ongoing endeavors that produce repetitive outputs, with resources assigned to do basically the  same set of tasks according to the standards institutionalized in a product life cycle. Unlike the ongoing nature of  operations, projects are temporary endeavors. 1.5.1.1 Operations Management Operations management is a subject area that is outside the scope of formal project management as described  in this standard. Operations management is an area of management concerned with ongoing production of goods and/or  services. It involves ensuring that business operations continue efficiently by using the optimum resources needed  and meeting customer demands. It is concerned with managing processes that transform inputs (e.g., materials,  components, energy, and labor) into outputs (e.g., products, goods, and/or services). 1.5.1.2 Operational Stakeholders in Project Management While operations management is different from project management (see 1.5.1.1), the needs of stakeholders  who perform and conduct business operations are important considerations in projects that will affect their future  work and endeavors. Project managers who consider and appropriately include operational stakeholders in all  phases of projects, gain insight and avoid unnecessary issues that often arise when their input is overlooked. Operational stakeholders should be engaged and their needs identified as part of the stakeholder register, and  their influence (positive or negative) should be addressed as part of the risk management plan. ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK 13 ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.1 - INTRODUCTION The following list includes examples of operational stakeholders (depending upon the business): •  Plant operators, •  Manufacturing line supervisors, •  Help desk staff, •  Production system support analysts, •  Customer service representative, •  Salespersons, •  Maintenance workers, •  Telephone sales personnel, •  Call center personnel, •  Retail workers, •  Line managers, and •  Training officers. 1.5.2 Organizations and Project Management Organizations use governance to establish strategic direction and performance parameters. The strategic  direction provides the purpose, expectations, goals, and actions necessary to guide business pursuit and is aligned  with business objectives. Project management activities should be aligned with top-level business direction, and  if there is a change, then project objectives need to be realigned. In a project environment, changes to project  objectives affect project efficiency and success. When the business alignment for a project is constant, the chance  for project success greatly increases because the project remains aligned with the strategic direction of the  organization. Should something change, projects should change accordingly. 1.5.2.1 Project-Based Organizations Project-based organizations (PBOs) refer to various organizational forms that create temporary systems  for carrying out their work. PBOs can be created by different types of organizations (i.e., functional, matrix, or  projectized (see 2.1.3)). The use of PBOs may diminish the hierarchy and bureaucracy inside the organizations as  the success of the work is measured by the final result rather than by position or politics. PBOs conduct the majority of their work as projects and/or provide project rather than functional approaches. PBOs  can refer to either entire firms (as in telecommunications, oil and gas, construction, consultancy, and professional  services) multi-firm consortia, or networks; it is also possible that some large project-based organizations have  functional support areas or that the PBO is nested within subsidiaries or divisions of larger corporations. 14 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.1 - INTRODUCTION 1.5.2.2 The Link Between Project Management and Organizational Governance 1 Projects (and programs) are undertaken to achieve strategic business outcomes, for which many organizations  now adopt formal organizational governance processes and procedures. Organizational governance criteria  can impose constraints on projects—particularly if the project delivers a service which will be subject to strict  organizational governance. Because project success may be judged on the basis of how well the resultant product or service supports  organizational governance, it is important for the project manager to be knowledgeable about corporate/ organizational governance policies and procedures pertaining to the subject matter of the product or service  (e.g., if an organization has adopted policies in support of sustainability practices and the project involves  construction of a new office building, the project manager should be aware of sustainability requirements related  to building construction.) 1.5.2.3 The Relationship Between Project Management and Organizational Strategy Organizational strategy should provide guidance and direction to project management—especially when one  considers that projects exist to support organizational strategies. Often it is the project sponsor or the portfolio or  program manager who identifies alignment or potential conflicts between organizational strategies and project goals  and then communicates these to the project manager. If the goals of a project are in conflict with an established  organizational strategy, it is incumbent upon the project manager to document and identify such conflicts as early  as possible in the project. At times, the development of an organizational strategy could be the goal of a project  rather than a guiding principle. In such a case, it is important for the project to specifically define what constitutes  an appropriate organizational strategy that will sustain the organization. 1.6 Business Value Business value is a concept that is unique to each organization. Business value is defined as the entire value  of the business; the total sum of all tangible and intangible elements. Examples of tangible elements include  monetary assets, fixtures, stockholder equity, and utility. Examples of intangible elements include good will, brand  recognition, public benefit, and trademarks. Depending on the organization, business value scope can be short-,  medium-, or long-term. Value may be created through the effective management of ongoing operations. However,  through the effective use of portfolio, program, and project management, organizations will possess the ability to  employ reliable, established processes to meet strategic objectives and obtain greater business value from their  project investments. While not all organizations are business driven, all organizations conduct business-related  activities. Whether an organization is a government agency or a nonprofit organization, all organizations focus on  attaining business value for their activities. ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK 15 ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.1 - INTRODUCTION Successful business value realization begins with comprehensive strategic planning and management.  Organizational strategy can be expressed through the organization’s mission and vision, including orientation to  markets, competition, and other environmental factors. Effective organizational strategy provides defined directions  for development and growth, in addition to performance metrics for success. In order to bridge the gap between  organizational strategy and successful business value realization, the use of portfolio, program, and project  management techniques is essential. Portfolio management aligns components (projects, programs, or operations) to the organizational strategy,  organized into portfolios or subportfolios to optimize project or program objectives, dependencies, costs, timelines,  benefits, resources, and risks. This allows organizations to have an overall view of how the strategic goals are  reflected in the portfolio, institute appropriate governance management, and authorize human, financial, or material  resources to be allocated based on expected performance and benefits. Using program management, organizations have the ability to align multiple projects for optimized or integrated  costs, schedule, effort, and benefits. Program management focuses on project interdependencies and helps to  determine the optimal approach for managing and realizing the desired benefits. With project management, organizations have the ability to apply knowledge, processes, skills, and tools and  techniques that enhance the likelihood of success over a wide range of projects. Project management focuses on  the successful delivery of products, services, or results. Within programs and portfolios, projects are a means of  achieving organizational strategy and objectives. Organizations can further facilitate the alignment of these portfolio, program, and project management activities  by strengthening organizational enablers such as structural, cultural, technological, and human resource practices.  By continuously conducting portfolio strategic alignment and optimization, performing business impact analyses,  and developing robust organizational enablers, organizations can achieve successful transitions within the portfolio,  program, and project domains and attain effective investment management and business value realization. 1.7 Role of the Project Manager The project manager is the person assigned by the performing organization to lead the team that is responsible  for achieving the project objectives. The role of a project manager is distinct from a functional manager or operations  manager. Typically the functional manager is focused on providing management oversight for a functional or a  business unit, and operations managers are responsible for ensuring that business operations are efficient. 16 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.1 - INTRODUCTION Depending on the organizational structure, a project manager may report to a functional manager. In other cases,  a project manager may be one of several project managers who report to a program or portfolio manager who is  1 ultimately responsible for enterprise-wide projects. In this type of structure, the project manager works closely with  the program or portfolio manager to achieve the project objectives and to ensure the project management plan  aligns with the overarching program plan. The project manager also works closely and in collaboration with other  roles, such as a business analyst, quality assurance manager, and subject matter experts. 1.7.1 Responsibilities and Competencies of the Project Manager In general, project managers have the responsibility to satisfy the needs: task needs, team needs, and  individual needs. As project management is a critical strategic discipline, the project manager becomes the link  between the strategy and the team. Projects are essential to the growth and survival of organizations. Projects  create value in the form of improved business processes, are indispensable in the development of new products  and services, and make it easier for companies to respond to changes in the environment, competition, and  the marketplace. The project manager’s role therefore becomes increasingly strategic. However, understanding  and applying the knowledge, tools, and techniques that are recognized as good practice are not sufficient for  effective project management. In addition to any area-specific skills and general management proficiencies  required for the project, effective project management requires that the project manager possess the following  competencies: •  Knowledge—Refers to what the project manager knows about project management. •  Performance—Refers to what the project manager is able to do or accomplish while applying his or her  project management knowledge. •  Personal—Refers to how the project manager behaves when performing the project or related activity.  Personal effectiveness encompasses attitudes, core personality characteristics, and leadership, which  provides the ability to guide the project team while achieving project objectives and balancing the project  constraints. 1.7.2 Interpersonal Skills of a Project Manager Project managers accomplish work through the project team and other stakeholders. Effective project managers  require a balance of ethical, interpersonal, and conceptual skills that help them analyze situations and interact  appropriately. Appendix X3 on Interpersonal Skills describes important interpersonal skills, such as: ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK 17 ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.1 - INTRODUCTION •  Leadership, •  Team building, •  Motivation, •  Communication, •  Influencing, •  Decision making, •  Political and cultural awareness, •  Negotiation, •  Trust building, •  Conflict management, and •  Coaching. 1.8 Project Management Body of Knowledge The PMBOK® Guide contains the standard for managing most projects most of the time across many types of  industries. The standard, included in Annex A1, describes the project management processes used to manage a  project toward a more successful outcome. This standard is unique to the project management field and has interrelationships to other project management  disciplines such as program management and portfolio management. Project management standards do not address all details of every topic. This standard is limited to individual  projects and the project management processes that are generally recognized as good practice. Other standards  may be consulted for additional information on the broader context in which projects are accomplished, such as: •  The Standard for Program Management [3] addresses the management of programs, •  The Standard for Portfolio Management [4] addresses the management of portfolios, •  Organizational Project Management Maturity Model (OPM3®) [5] examines an enterprise’s project  management process capabilities. 18 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE 22 2 ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE Projects and project management take place in an environment that is broader than that of the project itself.  Understanding this broader context helps ensure that work is carried out in alignment with the organization’s  goals and managed in accordance with the organization’s established practices. This section describes how  organizational influences affect the methods used for staffing, managing, and executing the project. It discusses  the influence of stakeholders on the project and its governance, the project team’s structure and membership, and  different approaches to the phasing and relationship of activities within the project’s life cycle. The following major  sections are addressed: 2.1 Organizational Influences on Project Management 2.2 Project Stakeholders and Governance 2.3 Project Team 2.4 Project Life Cycle ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK 19 ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE 2.1 Organizational Influences on Project Management An organization’s culture, style, and structure influence how its projects are performed. The organization’s level  of project management maturity and its project management systems can also influence the project. When a project  involves external entities such as those that are part of a joint venture or partnering agreement, the project will be  influenced by more than one organization. The following sections describe organizational characteristics, factors, and  assets within an enterprise that are likely to influence the project. 2.1.1 Organizational Cultures and Styles Organizations are systematic arrangements of entities (persons and/or departments) aimed at accomplishing  a purpose, which may involve undertaking projects. An organization’s culture and style affect how it conducts projects.  Cultures and styles are group phenomena known as cultural norms, which develop over time. The norms include  established approaches to initiating and planning projects, the means considered acceptable for getting the work  done, and recognized authorities who make or influence decisions. Organizational culture is shaped by the common experiences of members of the organization and most organizations  have developed unique cultures over time by practice and common usage. Common experiences include, but are not  limited to: •  Shared visions, mission, values, beliefs, and expectations; •  Regulations, policies, methods, and procedures; •  Motivation and reward systems; •  Risk tolerance; •  View of leadership, hierarchy, and authority relationships; •  Code of conduct, work ethic, and work hours; and •  Operating environments. 20 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE The organization’s culture is an enterprise environmental factor, as described in Section 2.1.5. Cultures and  styles are learned and shared and may have a strong influence on a project’s ability to meet its objectives. A  project manager should therefore understand the different organizational styles and cultures that may affect a  2 project. The project manager needs to know which individuals in the organization are the decision makers or  influencers and work with them to increase the probability of project success. In light of globalization, understanding the impact of cultural influences is critical in projects involving diverse  organizations and locations around the world. Culture becomes a critical factor in defining project success, and multi cultural competence becomes critical for the project manager. 2.1.2 Organizational Communications Project management success in an organization is highly dependent on an effective organizational communication  style, especially in the face of globalization of the project management profession. Organizational communications  capabilities have great influence on how projects are conducted. As a consequence, project managers in distant  locations are able to more effectively communicate with all relevant stakeholders within the organizational structure to  facilitate decision making. Stakeholders and project team members can also use electronic communications (including  e-mail, texting, instant messaging, social media, video and web conferencing, and other forms of electronic media) to  communicate with the project manager formally or informally. 2.1.3 Organizational Structures Organizational structure is an enterprise environmental factor, which can affect the availability of resources and  influence how projects are conducted (see also Section 2.1.5). Organizational structures range from functional to  projectized, with a variety of matrix structures in between. Table 2-1 shows key project-related characteristics of the  major types of organizational structures. ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK 21 ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE Table 2-1. Influence of Organizational Structures on Projects Project Organization StructureFunctional Matrix Projectized Characteristics Weak Matrix Balanced Matrix Strong Matrix Project Manager's  Authority Resource Availability Little or None Little or None Low Low Low to  Moderate Low to  Moderate Moderate to High Moderate to High High to Almost Total High to Almost Total Who manages the  project budget Functional Manager Manager Mixed Project Functional Manager Project Manager Project Manager's  Role Project Management Administrative Staff Part-time Part-time Full-time Full-time Full-time Part-time Part-time Part-time Full-time Full-time The classic functional organization, shown in Figure 2-1, is a hierarchy where each employee has one clear  superior. Staff members are grouped by specialty, such as production, marketing, engineering, and accounting  at the top level. Specialties may be further subdivided into focused functional units, such as mechanical and  electrical engineering. Each department in a functional organization will do its project work independently of other  departments. Chief Executive Project Coordination Functional Functional Manager ManagerFunctional Manager Staff Staff Staff Staff Staff Staff Staff Staff Staff (Gray boxes represent staff engaged in project activities) Figure 2-1. Functional Organization 22 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE Matrix organizations, as shown in Figures 2-2 through 2-4, reflect a blend of functional and projectized  characteristics. Matrix organizations can be classified as weak, balanced, or strong depending on the relative level  of power and influence between functional and project managers. Weak matrix organizations maintain many of the  2 characteristics of a functional organization, and the role of the project manager is more of a coordinator or expediter.  A project expediter works as staff assistant and communications coordinator. The expediter cannot personally  make or enforce decisions. Project coordinators have power to make some decisions, have some authority, and  report to a higher-level manager. Strong matrix organizations have many of the characteristics of the projectized  organization, and have full-time project managers with considerable authority and full-time project administrative  staff. While the balanced matrix organization recognizes the need for a project manager, it does not provide the  project manager with the full authority over the project and project funding. Table 2-1 provides additional details of  the various matrix organizational structures. Chief Executive Functional Functional Manager ManagerFunctional Manager Staff Staff Staff Staff Staff Staff Staff Staff Staff Project (Gray boxes represent staff engaged in project activities) Coordination Figure 2-2. Weak Matrix Organization ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK 23 ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE Chief Executive Functional  Manager Staff Functional  ManagerFunctional  Manager Staff Staff Staff Staff Staff Project Manager Staff Staff Project Coordination (Gray boxes represent staff engaged in project activities) Figure 2-3. Balanced Matrix Organization Chief Executive Functional  ManagerFunctional  ManagerFunctional  ManagerManager of  Project Managers Staff Staff Staff Project Manager Staff Staff Staff Staff Staff Staff Staff Project Manager Project Manager (Gray boxes represent staff engaged in project activities) Project Coordination Figure 2-4. Strong Matrix Organization 24 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE At the opposite end of the spectrum to the functional organization is the projectized organization, shown in  Figure 2-5. In a projectized organization, team members are often colocated. Most of the organization’s resources  are involved in project work, and project managers have a great deal of independence and authority. Virtual  2 collaboration techniques are often used to accomplish the benefits of colocated teams. Projectized organizations  often have organizational units called departments, but they can either report directly to the project manager or  provide support services to the various projects. Project Coordination Chief Executive ManagerProject Project Manager Staff Staff Staff Project Staff Staff Staff (Gray boxes represent staff engaged in project activities) Figure 2-5. Projectized Organization Manager Staff Staff Staff Many organizations involve all these structures at various levels, often referred to as a composite organization,  as shown in Figure 2-6. For example, even a fundamentally functional organization may create a special project  team to handle a critical project. Such a team may have many of the characteristics of a project team in a projectized  organization. The team may include full-time staff from different functional departments, may develop its own set  of operating procedures, and may even operate outside of the standard, formalized reporting structure during the  project. Also, an organization may manage most of its projects in a strong matrix, but allow small projects to be  managed by functional departments. ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK 25 ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE Chief Executive Functional  ManagerFunctional  ManagerFunctional  ManagerManager of  Project Managers Staff Staff Staff Project Manager Staff Staff Staff Staff Staff Staff Staff Project Manager Project Manager Project B Coordination Project A Coordination (Gray boxes represent staff engaged in project activities) Figure 2-6. Composite Organization Many organizational structures include strategic, middle management, and operational levels. The project  manager may interact with all three levels depending on factors such as: •  Strategic importance of the project, •  Capacity of stakeholders to exert influence on the project, •  Degree of project management maturity, •  Project management systems, and •  Organizational communications. This interaction determines project characteristics such as: •  Project manager’s level of authority, •  Resource availability and management, •  Entity controlling the project budget, •  Project manager’s role, and •  Project team composition. 26 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE 2.1.4 Organizational Process Assets Organizational process assets are the plans, processes, policies, procedures, and knowledge bases specific  2 to and used by the performing organization. They include any artifact, practice, or knowledge from any or all of  the organizations involved in the project that can be used to perform or govern the project. These process assets  include formal and informal plans, processes, policies, procedures, and knowledge bases, specific to and used by the  performing organization. The process assets also include the organization’s knowledge bases such as lessons learned  and historical information. Organizational process assets may include completed schedules, risk data, and earned  value data. Organizational process assets are inputs to most planning processes. Throughout the project, the project  team members may update and add to the organizational process assets as necessary. Organizational process assets  may be grouped into two categories: (1) processes and procedures, and (2) corporate knowledge base. 2.1.4.1 Processes and Procedures The organization’s processes and procedures for conducting project work include, but are not limited to: •  Initiating and Planning: ○ Guidelines and criteria for tailoring the organization’s set of standard processes and procedures  to satisfy the specific needs of the project; ○ Specific organizational standards such as policies (e.g., human resources policies, health and  safety policies, ethics policies, and project management policies), product and project life cycles,  and quality policies and procedures (e.g., process audits, improvement targets, checklists, and  standardized process definitions for use in the organization); and ○ Templates (e.g., risk register, work breakdown structure, project schedule network diagram, and  contract templates). •  Executing, Monitoring and Controlling: ○ Change control procedures, including the steps by which performing organization standards,  policies, plans, and procedures or any project documents will be modified, and how any changes  will be approved and validated; ○ Financial controls procedures (e.g., time reporting, required expenditure and disbursement  reviews, accounting codes, and standard contract provisions); ○ Issue and defect management procedures defining issue and defect controls, issue and defect  identification and resolution, and action item tracking; ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK 27 ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE ○ Organizational communication requirements (e.g., specific communication technology available,  authorized communication media, record retention policies, and security requirements); ○ Procedures for prioritizing, approving, and issuing work authorizations; ○ Risk control procedures, including risk categories, risk statement templates, probability and  impact definitions, and probability and impact matrix; and ○ Standardized guidelines, work instructions, proposal evaluation criteria, and performance  measurement criteria. •  Closing: ○ Project closure guidelines or requirements (e.g., lessons learned, final project audits, project  evaluations, product validations, and acceptance criteria). 2.1.4.2 Corporate Knowledge Base The organizational knowledge base for storing and retrieving information includes, but is not limited to: •  Configuration management knowledge bases containing the versions and baselines of all performing  organization standards, policies, procedures, and any project documents; •  Financial databases containing information such as labor hours, incurred costs, budgets, and any project  cost overruns; •  Historical information and lessons learned knowledge bases (e.g., project records and documents,  all project closure information and documentation, information regarding both the results of previous  project selection decisions and previous project performance information, and information from risk  management activities); •  Issue and defect management databases containing issue and defect status, control information, issue  and defect resolution, and action item results; •  Process measurement databases used to collect and make available measurement data on processes  and products; and •  Project files from previous projects (e.g., scope, cost, schedule, and performance measurement baselines,  project calendars, project schedule network diagrams, risk registers, planned response actions, and  defined risk impact). 28 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE 2.1.5 Enterprise Environmental Factors Enterprise environmental factors refer to conditions, not under the control of the project team, that influence,  2 constrain, or direct the project. Enterprise environmental factors are considered inputs to most planning processes,  may enhance or constrain project management options, and may have a positive or negative influence on the  outcome. Enterprise environmental factors vary widely in type or nature. Enterprise environmental factors include, but are  not limited to: •  Organizational culture, structure, and governance; •  Geographic distribution of facilities and resources; •  Government or industry standards (e.g., regulatory agency regulations, codes of conduct, product  standards, quality standards, and workmanship standards); •  Infrastructure (e.g., existing facilities and capital equipment); •  Existing human resources (e.g., skills, disciplines, and knowledge, such as design, development, legal,  contracting, and purchasing); •  Personnel administration (e.g., staffing and retention guidelines, employee performance reviews and  training records, reward and overtime policy, and time tracking); •  Company work authorization systems; •  Marketplace conditions; •  Stakeholder risk tolerances; •  Political climate; •  Organization’s established communications channels; •  Commercial databases (e.g., standardized cost estimating data, industry risk study information, and risk  databases); and •  Project management information system (e.g., an automated tool, such as a scheduling software tool,  a configuration management system, an information collection and distribution system, or web interfaces  to other online automated systems). ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK 29 ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE 2.2 Project Stakeholders and Governance A stakeholder is an individual, group, or organization who may affect, be affected by, or perceive itself to be  affected by a decision, activity, or outcome of a project. Stakeholders may be actively involved in the project or have  interests that may be positively or negatively affected by the performance or completion of the project. Different  stakeholders may have competing expectations that might create conflicts within the project. Stakeholders may  also exert influence over the project, its deliverables, and the project team in order to achieve a set of outcomes  that satisfy strategic business objectives or other needs. Project governance—the alignment of the project with  stakeholders’ needs or objectives—is critical to the successful management of stakeholder engagement and  the achievement of organizational objectives. Project governance enables organizations to consistently manage  projects and maximize the value of project outcomes and align the projects with business strategy. It provides a  framework in which the project manager and sponsors can make decisions that satisfy both stakeholder needs  and expectations and organizational strategic objectives or address circumstances where these may not be in  alignment. 2.2.1 Project Stakeholders Stakeholders include all members of the project team as well as all interested entities that are internal or  external to the organization. The project team identifies internal and external, positive and negative, and performing  and advising stakeholders in order to determine the project requirements and the expectations of all parties  involved. The project manager should manage the influences of these various stakeholders in relation to the project  requirements to ensure a successful outcome. Figure 2-7 illustrates the relationship between the project, the  project team, and various stakeholders. 30 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE Project Life Cycle and Organization 2 Project Stakeholders Portfolio Manager Program Other Stakeholders Sponsor Project Team Project Manage Other Project Operations Management Functional Managers Sellers/ Manager ment Team Project Manage ment Office Project Manager The Project Team Members Business Partners Customers/ Users Figure 2-7. The Relationship Between Stakeholders and the Project Stakeholders have varying levels of responsibility and authority when participating on a project. This level can  change over the course of the project’s life cycle. Their involvement may range from occasional contributions in  surveys and focus groups to full project sponsorship which includes providing financial, political, or other support.  Some stakeholders may also detract from the success of the project, either passively or actively. These stakeholders  require the project manager’s attention throughout the project’s life cycle, as well as planning to address any issues  they may raise. Stakeholder identification is a continuous process throughout the entire project life cycle. Identifying stakeholders,  understanding their relative degree of influence on a project, and balancing their demands, needs, and expectations  are critical to the success of the project. Failure to do so can lead to delays, cost increases, unexpected issues,  and other negative consequences including project cancellation. An example is late recognition that the legal  department is a significant stakeholder, which results in delays and increased expenses due to legal requirements  that are required to be met before the project can be completed or the product scope is delivered. ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK 31 ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE Just as stakeholders can positively or adversely impact a project’s objectives, a project can be perceived by  the stakeholders as having positive or negative results. For example, business leaders from a community who will  benefit from an industrial expansion project will see positive economic benefits to the community in the form of  additional jobs, supporting infrastructure, and taxes. In the case of stakeholders with positive expectations for the  project, their interests are best served by making the project successful. In contrast, the interests of negatively  affected stakeholders, such as nearby homeowners or small business owners who may lose property, be forced  to relocate, or accept unwanted changes in the local environment, are served by impeding the project’s progress.  Overlooking negative stakeholder interests can result in an increased likelihood of failures, delays, or other negative  consequences to the project. An important part of a project manager’s responsibility is to manage stakeholder expectations, which can be  difficult because stakeholders often have very different or conflicting objectives. Part of the project manager’s  responsibility is to balance these interests and ensure that the project team interacts with stakeholders in a  professional and cooperative manner. Project managers may involve the project’s sponsor or other team members  from different locations to identify and manage stakeholders that could be dispersed around the world. The following are some examples of project stakeholders: •  Sponsor. A sponsor is the person or group who provides resources and support for the project and is  accountable for enabling success. The sponsor may be external or internal to the project manager’s  organization. From initial conception through project closure, the sponsor promotes the project. This  includes serving as spokesperson to higher levels of management to gather support throughout the  organization and promoting the benefits the project brings. The sponsor leads the project through the  initiating processes until formally authorized, and plays a significant role in the development of the initial  scope and charter. For issues that are beyond the control of the project manager, the sponsor serves  as an escalation path. The sponsor may also be involved in other important issues such as authorizing  changes in scope, phase-end reviews, and go/no-go decisions when risks are particularly high. The  sponsor also ensures a smooth transfer of the project’s deliverables into the business of the requesting  organization after project closure. •  Customers and users. Customers are the persons or organizations who will approve and manage the  project’s product, service, or result. Users are the persons or organizations who will use the project’s  product, service, or result. Customers and users may be internal or external to the performing organization  and may also exist in multiple layers. For example, the customers for a new pharmaceutical product  could include the doctors who prescribe it, the patients who use it and the insurers who pay for it. In some  application areas, customers and users are synonymous, while in others, customers refer to the entity  acquiring the project’s product, and users refer to those who will directly utilize the project’s product. 32 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE •  Sellers. Sellers, also called vendors, suppliers, or contractors, are external companies that enter into a  contractual agreement to provide components or services necessary for the project. •  Business partners. Business partners are external organizations that have a special relationship with  2 the enterprise, sometimes attained through a certification process. Business partners provide specialized  expertise or fill a specified role such as installation, customization, training, or support. •  Organizational groups. Organizational groups are internal stakeholders who are affected by the activities  of the project team. Examples of various business elements of an organization that may be affected by  the project include marketing and sales, human resources, legal, finance, operations, manufacturing, and  customer service. These groups support the business environment where projects are executed, and  are therefore affected by the activities of the project. As a result, there is generally a significant amount  of interaction between the various business elements of an organization and the project team as they  work together to achieve project goals. These groups may provide input to requirements and accept  deliverables necessary for a smooth transition to production or related operations. •  Functional managers. Functional managers are key individuals who play a management role within  an administrative or functional area of the business, such as human resources, finance, accounting, or  procurement. They are assigned their own permanent staff to carry out the ongoing work, and they have  a clear directive to manage all tasks within their functional area of responsibility. The functional manager  may provide subject matter expertise or their function may provide services to the project. •  Other stakeholders. Additional stakeholders, such as procurement entities, financial institutions,  government regulators, subject matter experts, consultants, and others, may have a financial interest in  the project, contribute inputs to the project, or have an interest in the outcome of the project. Project stakeholders and stakeholder engagement are further defined in Section 13 on Project Stakeholder  Management. ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK 33 ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE 2.2.2 Project Governance Project governance is an oversight function that is aligned with the organization’s governance model and that  encompasses the project life cycle. Project governance framework provides the project manager and team with  structure, processes, decision-making models and tools for managing the project, while supporting and controlling  the project for successful delivery. Project governance is a critical element of any project, especially on complex and  risky projects. It provides a comprehensive, consistent method of controlling the project and ensuring its success  by defining and documenting and communicating reliable, repeatable project practices. It includes a framework  for making project decisions; defines roles, responsibilities, and accountabilities for the success of the project; and  determines the effectiveness of the project manager. A project’s governance is defined by and fits within the larger  context of the portfolio, program, or organization sponsoring it but is separate from organizational governance. For project governance, the PMO may also play some decisive role. Project governance involves stakeholders  as well as documented policies, procedures, and standards; responsibilities; and authorities. Examples of the  elements of a project governance framework include: •  Project success and deliverable acceptance criteria; •  Process to identify, escalate, and resolve issues that arise during the project; •  Relationship among the project team, organizational groups, and external stakeholders; •  Project organization chart that identifies project roles; •  Processes and procedures for the communication of information; •  Project decision-making processes; •  Guidelines for aligning project governance and organizational strategy; •  Project life cycle approach; •  Process for stage gate or phase reviews; •  Process for review and approval for changes to budget, scope, quality, and schedule which are beyond  the authority of the project manager; and •  Process to align internal stakeholders with project process requirements. 34 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE Within those constraints, as well as the additional limitations of time and budget, it is up to the project manager  and the project team to determine the most appropriate method of carrying out the project. While project governance  is the framework in which the project team performs, the team is still responsible for planning, executing, controlling,  2 and closing the project. The project governance approach should be described in the project management plan.  Decisions are made regarding who will be involved, the escalation procedures, what resources are necessary, and  the general approach to completing the work. Another important consideration is whether more than one phase will  be involved and, if so, the specific life cycle for the individual project. 2.2.3 Project Success Since projects are temporary in nature, the success of the project should be measured in terms of completing  the project within the constraints of scope, time, cost, quality, resources, and risk as approved between the project  managers and senior management. To ensure realization of benefits for the undertaken project, a test period (such  as soft launch in services) can be part of the total project time before handing it over to the permanent operations.  Project success should be referred to the last baselines approved by the authorized stakeholders. The project manager is responsible and accountable for setting realistic and achievable boundaries for the  project and to accomplish the project within the approved baselines. 2.3 Project Team The project team includes the project manager and the group of individuals who act together in performing the  work of the project to achieve its objectives. The project team includes the project manager, project management  staff, and other team members who carry out the work but who are not necessarily involved with management of  the project. This team is comprised of individuals from different groups with specific subject matter knowledge or  with a specific skill set to carry out the work of the project. The structure and characteristics of a project team can  vary widely, but one constant is the project manager’s role as the leader of the team, regardless of what authority  the project manager may have over its members. ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK 35 ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE Project teams include roles such as: •  Project management staff. The members of the team who perform project management activities such  as scheduling, budgeting, reporting and control, communications, risk management and administrative  support. This role may be performed or supported by a project management office (PMO). •  Project staff. The members of the team who carry out the work of creating the project deliverables. •  Supporting experts. Supporting experts perform activities required to develop or execute the project  management plan. These can include such roles as contracting, financial management, logistics, legal,  safety, engineering, test, or quality control. Depending on the size of the project and level of support  required, supporting experts may be assigned to work full time or may just participate on the team when  their particular skills are required. •  User or Customer Representatives. Members of the organization who will accept the deliverables or  products of the project may be assigned to act as representatives or liaisons to ensure proper coordination,  advise on requirements, or validate the acceptability of the project’s results. •  Sellers. Sellers, also called vendors, suppliers, or contractors, are external companies that enter into  a contractual agreement to provide components or services necessary for the project. The project team  is often assigned the responsibility to oversee the performance and acceptance of sellers’ deliverables  or services. If the sellers bear a large share of the risk for delivering the project’s results, they may play  a significant role on the project team. •  Business partner members. Members of business partners’ organizations may be assigned as members  of the project team to ensure proper coordination. •  Business partners. Business partners are also external companies, but they have a special relationship  with the enterprise, sometimes attained through a certification process. Business partners provide  specialized expertise or fill a specified role such as installation, customization, training, or support. 36 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE 2.3.1 Composition of Project Teams The composition of project teams varies based on factors such as organizational culture, scope, and location.  2 The relationship between the project manager and the team varies depending on the authority of the project  manager. In some cases, a project manager may be the team’s line manager, with full authority over its members.  In other cases, a project manager may have little or no direct organizational authority over the team members and  may have been brought in to lead the project on a part-time basis or under contract. The following are examples  of basic project team compositions: •  Dedicated. In a dedicated team, all or a majority of the project team members are assigned to work  full-time on the project. The project team may be colocated or virtual and usually reports directly to the  project manager. This is the simplest structure for a project manager, as the lines of authority are clear  and team members can focus on the project’s objectives. •  Part-Time. Some projects are established as temporary additional work, with the project manager and  team members working on the project while remaining in their existing organizations and continuing to  carry out their normal functions. The functional managers maintain control over the team members and  the resources allocated to the project, and the project manager is likely to continue performing other  management duties. Part-time team members may also be assigned to more than one project at a time. Dedicated and part-time project team compositions may exist in any of the organizational structures. Dedicated  project teams are often seen in projectized organizations, where most of the organization’s resources are involved  in project work and project managers have a great deal of independence and authority. Part-time project teams  are common within functional organizations, and matrix organizations use both dedicated and part-time project  teams. Other members who have limited involvement at various stages of a project can be thought of as part-time  project team members. Project team composition may also vary based on organizational structure. An example of this is a partnership based project. A project may be established as a partnership, joint venture, consortium, or alliance among several  organizations through contracts or agreements. In this structure, one organization takes the lead and assigns a  project manager to coordinate the efforts among the partners. Partnership-based projects can offer flexibility at  lower cost. These advantages may be offset by the project manager’s lower degree of control over team members  and the need for strong mechanisms for communication and monitoring progress. Partnership projects may be set  up to exploit industrial synergies, to undertake ventures that one partner could not afford alone, or for other political  and strategic reasons. ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK 37 ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE Project team composition may also vary based on the geographic location of its members. An example of this is  virtual project teams. Communication technologies allow team members in different locations or countries to work  as virtual teams. Virtual teams rely on collaborative tools, such as shared online workspaces and video conferences,  to coordinate their activities and exchange information about the project. A virtual team can exist with any type  of organizational structure and team composition. Virtual teams are often necessary for projects where resources  are located onsite or offsite or both, depending on the project activities. A project manager who is leading a virtual  team needs to accommodate differences in the culture, working hours, time zones, local conditions, and languages. 2.4 Project Life Cycle A project life cycle is the series of phases that a project passes through from its initiation to its closure. The  phases are generally sequential, and their names and numbers are determined by the management and control  needs of the organization or organizations involved in the project, the nature of the project itself, and its area of  application. The phases can be broken down by functional or partial objectives, intermediate results or deliverables,  specific milestones within the overall scope of work, or financial availability. Phases are generally time bounded,  with a start and ending or control point. A life cycle can be documented within a methodology. The project life  cycle can be determined or shaped by the unique aspects of the organization, industry, or technology employed.  While every project has a definite start and a definite end, the specific deliverables and activities that take place  in between will vary widely with the project. The life cycle provides the basic framework for managing the project,  regardless of the specific work involved. Project life cycles can range along a continuum from predictive or plan-driven approaches at one end to adaptive  or change-driven approaches at the other. In a predictive life cycle (Section 2.4.2.2), the product and deliverables  are defined at the beginning of the project and any changes to scope are carefully managed. In an adaptive life  cycle (Section 2.4.2.4), the product is developed over multiple iterations and detailed scope is defined for each  iteration only as the iteration begins. 2.4.1 Characteristics of the Project Life Cycle Projects vary in size and complexity. All projects can be mapped to the following generic life cycle structure (see  Figure 2-8): 38 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE •  Starting the project, •  Organizing and preparing, •  Carrying out the project work, and 2 •  Closing the project. This generic life cycle structure is often referred to when communicating with upper management or other  entities less familiar with the details of the project. It should not be confused with the Project Management Process  Groups, because the processes in a Process Group consist of activities that may be performed and recur within  each phase of a project as well as for the project as a whole. The project life cycle is independent from the life cycle  of the product produced by or modified by the project. However, the project should take the current life-cycle phase  of the product into consideration. This high-level view can provide a common frame of reference for comparing  projects—even if they are dissimilar in nature. Starting the project l eveL gniffatS dna tsoCOrganizing and preparing Carrying out the work Closing the project Project Management Outputs Project Charter Project Management Plan Time Accepted Deliverables Archived Project Documents Figure 2-8. Typical Cost and Staffing Levels Across a Generic Project Life Cycle Structure ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK 39 ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE The generic life cycle structure generally displays the following characteristics: •  Cost and staffing levels are low at the start, peak as the work is carried out, and drop rapidly as the  project draws to a close. Figure 2-8 illustrates this typical pattern. •  The typical cost and staffing curve above may not apply to all projects. A project may require significant  expenditures to secure needed resources early in its life cycle, for instance, or be fully staffed from a point  very early in its life cycle. •  Risk and uncertainty (as illustrated in Figure 2-9) are greatest at the start of the project. These factors  decrease over the life of the project as decisions are reached and as deliverables are accepted. •  The ability to influence the final characteristics of the project’s product, without significantly impacting  cost, is highest at the start of the project and decreases as the project progresses towards completion.  Figure 2-9 illustrates the idea that the cost of making changes and correcting errors typically increases  substantially as the project approaches completion. While these characteristics remain present to some extent in almost all project life cycles, they are not always  present to the same degree. Adaptive life cycles, in particular, are developed with the intent of keeping stakeholder  influences higher and the costs of changes lower throughout the life cycle than in predictive life cycles. Highe ergeDLow Risk and uncertainty Cost of changes Project Time Figure 2-9. Impact of Variable Based on Project Time 40 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE Within the context of the generic life cycle structure, a project manager may determine the need for more  effective control over certain deliverables or that certain deliverables are required to be completed before the  project scope can be completely defined. Large and complex projects in particular may require this additional  2 level of control. In such instances, the work carried out to complete the project’s objective may benefit from being  formally divided into phases. 2.4.2 Project Phases A project may be divided into any number of phases. A project phase is a collection of logically related project  activities that culminates in the completion of one or more deliverables. Project phases are used when the nature  of the work to be performed is unique to a portion of the project, and are typically linked to the development of  a specific major deliverable. A phase may emphasize processes from a particular Project Management Process  Group, but it is likely that most or all processes will be executed in some form in each phase. Project phases  typically are completed sequentially, but can overlap in some project situations. Different phases typically have a  different duration or effort. The high-level nature of project phases makes them an element of the project life cycle. The phase structure allows the project to be segmented into logical subsets for ease of management, planning,  and control. The number of phases, the need for phases, and the degree of control applied depend on the size,  complexity, and potential impact of the project. Regardless of the number of phases comprising a project, all  phases have similar characteristics: •  The work has a distinct focus that differs from any other phase. This often involves different organizations,  locations, and skill sets. •  Achieving the primary deliverable or objective of the phase requires controls or processes unique to the  phase or its activities. The repetition of processes across all five Process Groups, as described in Section  3, provides an additional degree of control and defines the boundaries of the phase. •  The closure of a phase ends with some form of transfer or hand-off of the work product produced as the  phase deliverable. This phase end represents a natural point to reassess the activities underway and to  change or terminate the project if necessary. This point may be referred to as a stage gate, milestone,  phase review, phase gate or kill point. In many cases, the closure of a phase is required to be approved  in some form before it can be considered closed. ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK 41 ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE There is no single ideal structure that will apply to all projects. Although industry common practices will often  lead to the use of a preferred structure, projects in the same industry—or even in the same organization—may  have significant variation. Some will have only one phase, as shown in Figure 2-10. Other projects may have two  or more phases. One Approach to Managing the Installation of a Telecommunications Network Monitoring and Controlling Processes Initiating Processes Planning Processes Closing Processes Executing Processes Figure 2-10. Example of a Single-Phase Project Some organizations have established policies that standardize all projects, while others allow the project team  to choose and tailor the most appropriate approach for their individual project. For instance, one organization  may treat a feasibility study as routine pre-project work, another may treat it as the first phase of a project, and  a third may treat the feasibility study as a separate, stand-alone project. Likewise, one project team may divide a  project into two phases whereas another project team may choose to manage all the work as a single phase. Much  depends on the nature of the specific project and the style of the project team or organization. 2.4.2.1 Phase-to-Phase Relationships When projects have more than one phase, the phases are part of a generally sequential process designed to  ensure proper control of the project and attain the desired product, service, or result. However, there are situations  when a project might benefit from overlapping or concurrent phases. There are two basic types of phase-to-phase relationships: •  Sequential relationship. In a sequential relationship, a phase starts only when the previous phase is  complete. Figure 2-11 shows an example of a project with three entirely sequential phases. The step by-step nature of this approach reduces uncertainty, but may eliminate options for reducing the overall  schedule. 42 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE One Approach to Cleaning Up a Hazardous Waste Site Facility Decommissioning Monitoring and Controlling Processes Processes Planning Processes Initiating Waste Removal/Cleanup Monitoring and Controlling Processes Landscaping Monitoring and Controlling Processes 2 Executing Closing Processes Planning Processes Initiating Executing Closing Processes Planning Processes Initiating Processes Processes Processes Processes Processes Executing Processes Closing Figure 2-11. Example of a Three-Phase Project •  Overlapping relationship. In an overlapping relationship, a phase starts prior to completion of the previous  one (see Figure 2-12). This can sometimes be applied as an example of the schedule compression  technique called fast tracking. Overlapping phases may require additional resources to allow work to be  done in parallel, may increase risk, and can result in rework if a subsequent phase progresses before  accurate information is available from the previous phase. Potential Approach to Building a New Factory Design Phase Monitoring and Controlling Processes Construction Phase Monitoring and Controlling Processes Processes Planning Processes Initiating Processes Executing Processes Closing Processes Planning Processes Initiating Processes Executing Processes Closing Figure 2-12. Example of a Project with Overlapping Phases ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK 43 ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE For projects with more than one phase, there may be different relationships (overlapping, sequential, parallel)  between individual phases. Considerations such as level of control required, effectiveness, and degree of uncertainty  determine the relationship to be applied between phases. Based on those considerations, both relationships could  occur between different phases of a single project. 2.4.2.2 Predictive Life Cycles Predictive life cycles (also known as fully plan-driven) are ones in which the project scope, and the time and  cost required to deliver that scope, are determined as early in the project life cycle as practically possible. As shown  in Figure 2-13, these projects proceed through a series of sequential or overlapping phases, with each phase  generally focusing on a subset of project activities and project management processes. The work performed in  each phase is usually different in nature to that in the preceding and subsequent phases, therefore, the makeup  and skills required of the project team may vary from phase to phase. Requirements Feasibility Planning Design Construct Test Turnover Figure 2-13. Example of Predictive Life Cycle 44 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE When the project is initiated, the project team will focus on defining the overall scope for the product and  project, develop a plan to deliver the product (and any associated deliverables), and then proceed through phases  to execute the plan within that scope. Changes to the project scope are carefully managed and require re planning  2 and formal acceptance of the new scope. Predictive life cycles are generally preferred when the product to be delivered is well understood, there is  a substantial base of industry practice, or where a product is required to be delivered in full to have value to  stakeholder groups. Even projects with predictive life cycles may use the concept of rolling wave planning, where a more general,  high-level plan is available and more detailed planning is executed for appropriate time windows, as new work  activities are approaching and resources are to be assigned. 2.4.2.3 Iterative and Incremental Life Cycles Iterative and incremental life cycles are ones in which project phases (also called iterations) intentionally repeat  one or more project activities as the project team’s understanding of the product increases. Iterations develop the  product through a series of repeated cycles, while increments successively add to the functionality of the product.  These life cycles develop the product both iteratively and incrementally. Iterative and incremental projects may proceed in phases, and the iterations themselves will be performed in a  sequential or overlapping fashion. During an iteration, activities from all Project Management Process Groups will  be performed. At the end of each iteration, a deliverable or set of deliverables will be completed. Future iterations  may enhance those deliverables or create new ones. Each iteration incrementally builds the deliverables until the  exit criteria for the phase are met, allowing the project team to incorporate feedback. In most iterative life cycles, a high-level vision will be developed for the overall undertaking, but the detailed  scope is elaborated one iteration at a time. Often the planning for the next iteration is carried out as work progresses  on the current iteration’s scope and deliverables. The work required for a given set of deliverables may vary in  duration and effort, and the project team may change between or during iterations. Those deliverables that are not  addressed within the scope of the current iteration are typically scoped at a high level only and may be tentatively  assigned to a specific future iteration. Changes to the scope of an iteration are carefully managed once work begins. ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK 45 ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE Iterative and incremental life cycles are generally preferred when an organization needs to manage changing  objectives and scope, to reduce the complexity of a project, or when the partial delivery of a product is beneficial  and provides value for one or more stakeholder groups without impact to the final deliverable or set of deliverables.  Large and complex projects are frequently executed in an iterative fashion to reduce risk by allowing the team to  incorporate feedback and lessons learned between iterations. 2.4.2.4 Adaptive Life Cycles Adaptive life cycles (also known as change-driven or agile methods) are intended to respond to high levels  of change and ongoing stakeholder involvement. Adaptive methods are also iterative and incremental, but differ  in that iterations are very rapid (usually with a duration of 2 to 4 weeks) and are fixed in time and cost. Adaptive  projects generally perform several processes in each iteration, although early iterations may concentrate more on  planning activities. The overall scope of the project will be decomposed into a set of requirements and work to be performed,  sometimes referred to as a product backlog. At the beginning of an iteration, the team will work to determine  how many of the highest priority items on the backlog list can be delivered within the next iteration. At the end of  each iteration, the product should be ready for review by the customer. This does not mean that the customer is  required to accept delivery, just that the product should not include unfinished, incomplete, or unusable features.  The sponsor and customer representatives should be continuously engaged with the project to provide feedback  on deliverables as they are created and to ensure that the product backlog reflects their current needs. Adaptive methods are generally preferred when dealing with a rapidly changing environment, when requirements  and scope are difficult to define in advance, and when it is possible to define small incremental improvements that  will deliver value to stakeholders. 46 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.3 - PROJECT MANAGEMENT PROCESSES 33 3 PROJECT MANAGEMENT PROCESSES Project management is the application of knowledge, skills, tools, and techniques to project activities to meet the  project requirements. This application of knowledge requires the effective management of the project management  processes. A process is a set of interrelated actions and activities performed to create a pre-specified product, service, or  result. Each process is characterized by its inputs, the tools and techniques that can be applied, and the resulting  outputs. As explained in Section 2, the project manager needs to consider organizational process assets and  enterprise environmental factors. These should be taken into account for every process, even if they are not  explicitly listed as inputs in the process specification. Organizational process assets provide guidelines and criteria  for tailoring the organization’s processes to the specific needs of the project. Enterprise environmental factors may  constrain the project management options. In order for a project to be successful, the project team should: •  Select appropriate processes required to meet the project objectives; •  Use a defined approach that can be adapted to meet requirements; •  Establish and maintain appropriate communication and engagement with stakeholders; •  Comply with requirements to meet stakeholder needs and expectations; and •  Balance the competing constraints of scope, schedule, budget, quality, resources, and risk to produce the  specified product, service, or result. The project processes are performed by the project team with stakeholder interaction and generally fall into one  of two major categories: •  Project management processes. These processes ensure the effective flow of the project throughout  its life cycle. These processes encompass the tools and techniques involved in applying the skills and  capabilities described in the Knowledge Areas (Sections 4 through 13). •  Product-oriented processes. These processes specify and create the project’s product. Product oriented processes are typically defined by the project life cycle (as discussed in Section 2.4) and vary  by application area as well as the phase of the product life cycle. The scope of the project cannot be  defined without some basic understanding of how to create the specified product. For example, various  construction techniques and tools need to be considered when determining the overall complexity of the  house to be built. ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK 47 ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.3 - PROJECT MANAGEMENT PROCESSES The PMBOK® Guide describes only the project management processes. Although product-oriented processes  are outside the scope of this document, they should not be ignored by the project manager and project team. Project  management processes and product-oriented processes overlap and interact throughout the life of a project. Project management processes apply globally and across industry groups. Good practice means there is general  agreement that the application of project management processes has been shown to enhance the chances of  success over a wide range of projects. Good practice does not mean that the knowledge, skills, and processes  described should always be applied uniformly on all projects. For any given project, the project manager, in  collaboration with the project team, is always responsible for determining which processes are appropriate, and  the appropriate degree of rigor for each process. Project managers and their teams should carefully address each process and its inputs and outputs and  determine which are applicable to the project they are working on. The PMBOK® Guide may be used as a resource  in managing a project while considering the overall approach and methodology to be followed for the project. This  effort is known as tailoring. Project management is an integrative undertaking that requires each project and product process to be  appropriately aligned and connected with the other processes to facilitate coordination. Actions taken during one  process typically affect that process and other related processes. For example, a scope change typically affects  project cost, but it may not affect the communications management plan or level of risk. These process interactions  often require tradeoffs among project requirements and objectives, and the specific performance tradeoffs will vary  from project to project and organization to organization. Successful project management includes actively managing  these interactions to meet sponsor, customer, and other stakeholder requirements. In some circumstances, a  process or set of processes will need to be iterated several times in order to achieve the required outcome. Projects exist within an organization and do not operate as a closed system. They require input data from the  organization and beyond, and deliver capabilities back to the organization. The project processes may generate  information to improve the management of future projects and organizational process assets. The PMBOK® Guide describes the nature of project management processes in terms of the integration between  the processes, their interactions, and the purposes they serve. Project management processes are grouped into five  categories known as Project Management Process Groups (or Process Groups): 48 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.3 - PROJECT MANAGEMENT PROCESSES •  Initiating Process Group. Those processes performed to define a new project or a new phase of an  existing project by obtaining authorization to start the project or phase. •  Planning Process Group. Those processes required to establish the scope of the project, refine the  objectives, and define the course of action required to attain the objectives that the project was undertaken  3 to achieve. •  Executing Process Group. Those processes performed to complete the work defined in the project  management plan to satisfy the project specifications. •  Monitoring and Controlling Process Group. Those processes required to track, review, and regulate the  progress and performance of the project; identify any areas in which changes to the plan are required;  and initiate the corresponding changes. •  Closing Process Group. Those processes performed to finalize all activities across all Process Groups to  formally close the project or phase. The remainder of this section provides information for project management of a single project organized as  a network of interlinked processes, details the project management processes, and includes the following major  sections: 3.1 Common Project Management Process Interactions 3.2 Project Management Process Groups 3.3 Initiating Process Group 3.4 Planning Process Group 3.5 Executing Process Group 3.6 Monitoring and Controlling Process Group 3.7 Closing Process Group 3.8 Project Information 3.9 Role of the Knowledge Areas 3.10 The Standard for Project Management of a Project ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK 49 ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.3 - PROJECT MANAGEMENT PROCESSES 3.1 Common Project Management Process Interactions 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 in this document. Most experienced  project management practitioners recognize there is more than one way to manage a project. The required Process  Groups and their processes are guides for applying appropriate project management knowledge and skills during  the project. The application of the project management processes is iterative, and many processes are repeated  during the project. The integrative nature of project management requires the Monitoring and Controlling Process Group to interact  with the other Process Groups, as shown in Figure 3-1. Monitoring and Controlling processes occur at the same  time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured  as a “background” Process Group for the other four Process Groups shown in Figure 3-1. Monitoring & Controlling Processes Planning  Processes ProcessesClosing Enter Phase/ Start project Executing Processes Initiating ProcessesExit Phase/ End project Figure 3-1. Project Management Process Groups 50 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.3 - PROJECT MANAGEMENT PROCESSES Project Management Process Groups are linked by the outputs which are produced. The Process Groups are  seldom either discrete or one-time events; they are overlapping activities that occur throughout the project. The  output of one process generally becomes an input to another process or is a deliverable of the project, subproject, or  project phase. Deliverables at the subproject or project level may be called incremental deliverables. The Planning  Process Group provides the Executing Process Group with the project management plan and project documents,  3 and, as the project progresses, it often creates updates to the project management plan and the project documents.  Figure 3-2 illustrates how the Process Groups interact and shows the level of overlap at various times. If the project  is divided into phases, the Process Groups interact within each phase. Level of Process Interaction Initiating Process  Group Planning Process  Group Executing Process  Group Monitoring and Controlling Process Group Closing  Process  Group Start Finish TIME Figure 3-2. Process Groups Interact in a Phase or Project An example of this interaction is the exit of a design phase, which requires sponsor acceptance of the design  document. Once it is available, the design document provides the product description for the Planning and Executing  Process Groups in one or more subsequent phases. When a project is divided into phases, the Process Groups are  used, as appropriate, to effectively drive the project to completion in a controlled manner. In multiphase projects,  processes are repeated within each phase until the criteria for phase completion have been satisfied. Additional  information on project organization, life cycles, and project phases is provided in Section 2. ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK 51 ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.3 - PROJECT MANAGEMENT PROCESSES 3.2 Project Management Process Groups The following sections identify and describe the five Project Management Process Groups required for any  project. These five Process Groups have clear dependencies and are typically performed in each project and  highly interact with one another. These five Process Groups are independent of application areas or industry focus.  Individual Process Groups and individual processes are often iterated prior to completing the project and can have  interactions within a Process Group and among Process Groups. The nature of these interactions varies from project  to project and may or may not be performed in a particular order. The process flow diagram, Figure 3-3, provides an overall summary of the basic flow and interactions  among Process Groups and specific stakeholders. The project management processes are linked by specific  inputs and outputs where the result or outcome of one process becomes the input to another process but not  necessarily in the same Process Group. The Process Groups are not project life cycle phases. In fact, it is  possible that all Process Groups could be conducted within a phase. As projects are separated into distinct phases  or subcomponents, such as concept development feasibility study, design, prototype, build, or test, etc., all of the  Process Groups would normally be repeated for each phase or subcomponent along the lines explained previously  and illustrated in Figure 3-2. The project management processes are shown in the Process Group in which most of the related activities takes  place. For example, a process that normally takes place in the planning phase is put into the Planning Process  Group. When this process is updated by an Executing Process Group process or activity, it is not considered a new  process within the Executing Process Group but is still a Planning Process Group process or activity. The iterative  nature of project management means that processes from any group may be reused throughout the project life  cycle. For example, in response to a risk event, executing a risk response may trigger further analysis, which leads  to another iteration of the Identify Risks process and the associated Perform Quantitative Risk Analysis and Perform  Quantitative Risk Analysis processes to evaluate the impact. 52 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.3 - PROJECT MANAGEMENT PROCESSES • Project statement of work • Business case Project Initiator or Sponsor • Organizational  process assets • Enterprise   environmental   factors Enterprise/ Organization • Agreements • Stakeholder   register • Stakeholder   management   strategy • Resource  Initiating Process Group • Project  charter Planning Process Group Project Documents • Procurement   documents • Project   management   plan • Make-or-buy   decisions  Monitoring and Controlling Process Group 3 Customer • Teaming   agreements • Requirements • Seller   proposals  calendars Executing Process Group • Source selection   criteria • Approved change   requests • Quality control  measurements • Performance reports • Final product,  service or result Sellers • Procurement  contract award  Closing Process Group • Deliverables • Change requests • Work performance information • Selected sellers • Accepted deliverables • Procurement documentation NOTE: The darker dotted lines represent relationships between Process Groups; the lighter dotted lines are external to the Process Groups. Figure 3-3. Project Management Process Interactions ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK 53 ® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.3 - PROJECT MANAGEMENT PROCESSES 3.3 Initiating Process Group The Initiating Process Group consists of those processes performed to define a new project or a new phase  of an existing project by obtaining authorization to start the project or phase. Within the Initiating processes, the  initial scope is defined and initial financial resources are committed. Internal and external stakeholders who  will interact and influence the overall outcome of the project are identified. If not already assigned, the project  manager will be selected. This information is captured in the project charter and stakeholder register. When the  project charter is approved, the project becomes officially authorized. Although the project management team may  help write the project charter, this standard assumes that business case assessment, approval, and funding are  handled externally to the project boundaries (Figure 3-4). A project boundary is defined as the point in time that  a project or project phase is authorized to its completion. The key purpose of this Process Group is to align the  stakeholders’ expectations with the project’s purpose, give them visibility about the scope and objectives, show  how their participation in the project and it associated phases can ensure that their expectations are achieved.  These processes help set the vision of the project—what is needed to be accomplished. Project  Boundaries Monitoring & Project Initiator/ Project Controlling Processes Planning  Processes Processes Closing Project Deliverables End Users Sponsor Inputs Initiating Processes Executing Processes Project Records Process Assets Figure 3-4. Project Boundaries Large complex projects should be divided into separate phases. In such projects, the Initiating processes are  carried out during subsequent phases to validate the decisions made during the original Develop Project Charter  and Identify Stakeholders processes. Performing the Initiating processes at the start of each phase helps to keep  the project focused on the business need that the project was undertaken to address. The success criteria are  verified, and the influence, drivers and objectives of the project stakeholders are reviewed. A decision is then  made as to whether the project should be continued, delayed, or discontinued. 54 ©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition  Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction.

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