Tips for leading a successful kick-off

meeting
In the previous video, you learned what a project kick-off meeting is and what it
involves. As a reminder, a kick-off meeting is the first meeting among the project
team, stakeholders, and the project sponsor at the start of a new project or new
project phase. The purpose of a kick-off meeting is to ground everyone in a shared
vision, ensure they understand the project’s goals and scope, and make sure that
they are all on the same page about their roles and responsibilities on the project.
The kick-off meeting is critical to a project’s overall success. It gets the team together
to align on goals and visions for the project and sets the project up for success.

This reading will provide you with some tips for running an effective kick-off meeting.

Kick-off meeting best practices

 Set the right time. Choose a meeting time that works for everyone. Be
mindful of time zone differences.
 Set the right length. Choose an appropriate meeting length—no more
than one hour. You don’t want to waste people’s time, but you also don’t want to
run out of time. Kick-off meetings work best when you first share key information
and then spend any additional time on questions and team building.
 Invite the right people. Be strategic about including the appropriate
people. The goal is to invite attendees who play a role in the development and
execution of the project, such as all team members, stakeholders, and the
project sponsor. You don’t want to leave anyone out, but you also don’t want to
invite people who shouldn’t be there.
 Designate a notetaker. The discussion that takes place during the
meeting is important. It is critical that you document any feedback, changes, or
questions asked by attendees. If you are leading the meeting, designate
someone else to take notes before the meeting starts. You can also use tools
like Chorus Notetaker, Google Keep, Google Docs, or Microsoft OneNote.
 Set the agenda. To recap what we discussed in the video, a kick-off
meeting agenda should generally include: introductions, the project background
and purpose, project goals and scope, roles and responsibilities, the
collaboration process and project tools, what comes next (expectations and
action items), and time for questions and discussion.
 Share the agenda. Prior to the meeting, share the agenda with attendees
via email and identify speakers for each topic. By sending the agenda in
advance, everyone will have an idea of what to expect, time to prepare for
anything they may need to present or discuss, and time to generate questions or
ideas.
 Stick to the agenda. During meetings, discussions can sometimes go off
topic or take longer than expected. As a project manager, it is your job to keep
the meeting on track by redirecting discussions to the items on the agenda.
 Follow up after the meeting. After the meeting, make sure to send out a
meeting summary featuring the meeting notes and any action items.
Setting milestones: Best practices
You have learned what milestones and tasks are and when, where, and how you will
use them as a project manager. In this reading, we will explore best practices for
setting milestones. But first, let’s revisit the definitions of tasks and milestones.

 A project task is an activity that needs to be accomplished within a set period

of time and is assigned to one or more individuals for completion. The work of a
project is broken down into many different project tasks.
 A project milestone is an important point within the project schedule that
usually signifies the completion of a major deliverable. Milestones are significant
checkpoints in your project, and keeping track of them helps ensure that your
project is on schedule to m eet its goals.
Set tasks to identify milestones

Setting tasks can help you clearly define milestones. You can do this in two ways:

1. Top-down scheduling: In this approach, the project manager lays out the
higher-level milestones, then works to break down the effort into project tasks.
The project manager works with their team to ensure that all tasks are captured.
2. Bottom-up scheduling: In this approach, the project manager looks at all
of the individual tasks that need to be completed and then rolls those tasks into
manageable chunks that lead to a milestone.
Most projects have many tasks that lead to milestones. For instance, if your
milestone is to receive approval on the first draft of an article that you are writing, you
might complete tasks such as “develop outline,” “write first draft,” and “send to the
editor.” Then, you may have another set of tasks to achieve before reaching the
milestone of revising the article. Milestones serve as check-in points along your
project to make sure that you are headed in the right direction toward the end goal.
Milestones also make projects more manageable.

Integrate milestones into your project schedule

There is not a consistent number of milestones in every project. Some projects will
have a few milestones, while others may have dozens. Rather than aiming to hit a
certain number of milestones, try to set milestones for the most important events in
your project. Review your project schedule and identify important moments or
checkpoints. In other words, pinpoint where in your project you will achieve major
goals and make those points your milestones.

Milestone-setting pitfalls

Here are some things to avoid when setting milestones:

 Don’t set too many milestones. When there are too many milestones,
their importance is downplayed. And, if milestones are too small or too specific,
 you may end up with too many, making the project look much bigger than it
really is to your team and stakeholders.
 Don’t mistake tasks for milestones. Remember that milestones should
represent moments in time, and in order to map out how you will get to those
moments, you need to assign smaller tasks to each milestone.
 Don’t list your milestones and tasks separately. Make sure that
tasks and milestones can be visualized together in one place, such as a project
plan. This will help ensure that you are hitting your deadlines and milestones.

Key takeaways

Your approach to setting milestones may differ from project to project, but most
projects will have at least one milestone and several smaller tasks associated with
each milestone. Setting clearly-defined, distinct tasks, and milestones, integrating
them into your project schedule, and using a tool that visualizes them together will
help organize your project and drive it forward.
Putting together the pieces of a project
plan
Every project plan is a living artifact that serves as your team’s roadmap throughout
the project. We have covered some common elements of project plans, including
tasks, milestones, people, documentation, and time. Let’s look at how these
elements intersect with other important components to create a comprehensive plan
for your project.

How project plan components are connected

You have learned that at the center of the project plan is the project schedule, which
helps you estimate the amount of time it will take to complete the project and
provides the team with a way to track the project’s progress against your goals. In
addition to the schedule, you should also include the following components in your
project plan:

 Scope and goals

 Work Breakdown Structure (WBS)
 Budget
 Management plans

Project scope and goals

Both the project scope and goals will be captured initially in your project charter,
the document that clearly defines the key details of your project. You can link your
project charter in your project plan. Having details about the project’s scope and
goals easily accessible can help remind your team of the objectives they are trying to
accomplish and if anything is asked of them that goes beyond what was initially
agreed upon in order to achieve those objectives.

Work Breakdown Structure (WBS)

As a reminder, a Work Breakdown Structure is a tool that sorts the

milestones and tasks of a project in a hierarchy, in the order they need to be
completed. The WBS is key to your project plan since it breaks the work down into
more manageable pieces. In your project plan, the tasks should be visible in one
place with clear descriptions, owners, and due dates. This will allow you and your
team to understand who is responsible for which tasks and when each task is
supposed to be completed. Your project plan should also contain detailed milestones
and statuses related to these tasks, which will help you and your team members
visualize project progress.

In addition to the WBS, further documentation—such as a RACI chart—will help

define roles and responsibilities and would be useful to add to your project plan.
Keeping this documentation stored or linked in one place is a best practice for
transparency and effective communication.

Budget

Throughout the life cycle of your project, the budget will need to be managed and
monitored. The project budget is often linked to the project plan because it is heavily
dependent on key elements of the project. Linking these components allows for
smoother management and visibility.

Depending on the size of your project and your organization, you may not be the
primary person responsible for managing the project budget. For instance, if your
project is at a large organization and the funds are managed by another department,
you may not have as much autonomy or insight into all of the budget elements. As a
result, you may not be able to monitor the budget closely. If someone in another
department is managing the budget, make sure to have regular check-ins with them
to ensure that you are aware of how you are tracking.

Management plans

Management plans—such as the change management plan, risk management plan,

and communication plan—are all integral to keeping a project organized and on track
and should be linked in your project plan. These plans will be discussed in detail in
the coming lessons of this course.

Key takeaway

Project scope and goals, the Work Breakdown Structure (WBS), the budget, and
management plans are all important components of your project plan. They help
define how basic project plan elements—including tasks, milestones, people,
documentation, and time—will be structured and utilized in your project. However, no
one project plan will be the same. At Google, we work with a variety of different tools
and templates to create and manage project plans. It is important to know your end
goals and what is essential to you and your team in order to pull the relevant pieces
of the project together.

Breaking down the work breakdown

structure
In the previous video, you were introduced to a major component of the planning
phase: the creation of a work breakdown structure (WBS). A WBS is a
deliverable-oriented breakdown of a project into smaller components. It’s a tool that
sorts the milestones and tasks of a project into a hierarchy, in the order they need to
be completed.

A thorough WBS gives you a visual representation of a project and the tasks
required to deliver each milestone. It makes it easier to understand all of the
essential project tasks, such as estimating costs, developing a schedule, assigning
roles and responsibilities, and tracking progress. Think of each piece of information
as part of the overall project puzzle—you can’t successfully navigate through the
tasks without understanding how they all fit together. For instance, many smaller
tasks may ladder up to a larger task or milestone.
Steps to build a WBS

As a reminder, here are three main steps to follow when creating a WBS:

 Start with the high-level, overarching project picture.

Brainstorm with your team to list the major deliverables and
milestones. Example: Imagine you are planning a company event. Your
major milestones might include categories like “secure venue,” “finalize guest
logistics,” and “establish agenda.”
 Identify the tasks that need to be performed in order to meet
those milestones. Example: You could break a milestone like “secure
venue” down into tasks like “research venues,” “tour and decorate space,”
“make down payment,” and so on.
 Examine those tasks and break them down further into sub-
tasks. Example: You could break down a task like “tour and decorate space”
further into sub-tasks like “organize decorating committee,” “purchase
decorations,” “assign decorating responsibilities,” and so on.
Further reading

For further learning on best practices for developing a WBS, check out this article:

 How to Create a Work Breakdown Structure and Why You Should

Activity: Use a WBS to create milestones and project tasks - Part 1

Total points 1

1.
Question 1

To pass this practice quiz, you must receive 100%, or 1 out of 1 point, by completing the activity
below. You can learn more about the graded and practice items in the Course Overview.

Activity Overview
In this activity, you will identify a project’s major milestones, break them into smaller tasks, and
complete a Work Breakdown Structure (WBS) brainstorm diagram. Then, in Part 2 of this activity,
you will build on this scenario to complete a WBS spreadsheet.

Setting tasks and milestones gives you a clear understanding of the amount of work your project
will require, so you can keep your project on track. Milestones also serve as great check-in points
to highlight the project’s progress for your team and stakeholders.

Be sure to complete this activity before moving on. The next course item will provide you with a
completed exemplar to compare to your own work. You will not be able to access the exemplar
until you have completed this activity.

Scenario

Review the scenario below. Then complete the step-by-step instructions.

As a project manager for Office Green, your job includes working with the operations team to
develop and implement an Operations and Training plan. Your team will use this plan for ongoing
maintenance of the Plant Pals service. It will take six months to fully implement all protocols,
including setting up operational tools, putting delivery processes in place, and training
employees. The project will begin before the Plant Pals launch and extend beyond it.

The Operations team is responsible for managing the organization’s day-to-day business so that
it continues to run smoothly. Operations provides resources to other departments, ensures
consistency, and maintains the company’s profitability. The Chief Operations Officer (COO)
 typically leads the Operations team and works closely with other divisions, such as Sales, Client
Services, Human Resources, Information Technology (IT), as well as the project manager.

Developing the Operations and Training plan marks a new stage of the project, with its own set
of goals and deliverables. After assessing the requirements for the plan you determine three
major milestones:

 Establish a plant delivery and logistics plan

 Select and install supply chain management software and equipment
 Develop and launch an employee training program

For each milestone, you divide the work into three separate tasks. Each task has its own owner,
duration, and details. The tasks associated with your milestones include:

 Establish a plant delivery and logistics plan: Team members will need to source materials
for packaging and hire delivery drivers. They are also responsible for calculating the delivery
fees.
 Select and install supply chain software and equipment: Team members will supervise
vendor setup of inventory management and fulfillment software. They must also supervise
vendor installation of fulfillment equipment and determine internal safety protocols for the
equipment.
 Develop and launch an employee training program: Team members will need to develop
training sessions, train employees to use the software and equipment, and monitor progress
and improve training processes.

Assessment of Exemplar

Compare the exemplar to your completed WBS Brainstorm diagram. Review your
work using each of the criteria in the exemplar. What did you do well? Where can
you improve? Use your answers to these questions to guide you as you continue to
progress through the course.

Let’s review the brainstorm diagram:

The exemplar includes the title “Operations and Training Plan.” It also includes three
different milestones and three tasks for each milestone (nine tasks in total):

 Establish a plant delivery and logistics plan: 1) Source packaging

materials, 2) Hire delivery drivers, 3) Calculate delivery fees
 Select and install supply chain software and equipment: 1)
Supervise vendor setup of inventory management and fulfillment software, 2)
Supervise vendor installation of fulfillment equipment, 3) Determine internal
safety protocols for the equipment
  Develop and launch an employee training program: 1) Develop
training sessions, 2) Train employees to use software and equipment, 3) Monitor
employee progress and improve training processes
Activity: Use a WBS to create milestones and project tasks - Part 2
Total points 5

1.
Question 1

To pass this practice quiz, you must receive 80%, or 4 out of 5 points, by completing the activity
below. You can learn more about the graded and practice items in the Course Overview.

Activity Overview
In the last activity, Use a WBS to create project tasks and milestones - Part 1, you filled out a
WBS brainstorm diagram with tasks and milestones. In this activity, you will use that diagram to
complete a WBS spreadsheet. You will use this spreadsheet to assign tasks owners and sort
milestones and tasks into sequential order.

Be sure to complete this activity before moving on. The next course item will provide you with a
completed exemplar to compare to your own work. You will not be able to access the exemplar
until you have completed this activity.

Scenario

Review the scenario below. Then complete the step-by-step instructions.

As a project manager for Office Green, you are developing an Operations and Training plan for
the new Plant Pals service. It will take six months to fully implement all protocols, including
setting up operational tools, putting delivery processes in place, and training employees. You
have already added milestones and tasks for this project to a WBS brainstorm diagram. Here are
the milestones and their associated tasks:

 Establish a plant delivery and logistics plan: Team members will need to source materials
for packaging and hire delivery drivers. They are also responsible for calculating the delivery
fees.
 Select and install supply chain software and equipment: Team members will supervise
vendor setup of inventory management and fulfillment software. They must also supervise
vendor installation of fulfillment equipment and determine internal safety protocols for the
equipment.
 Develop and launch an employee training program: Team members will need to develop
training sessions, train employees to use the software and equipment, and monitor employee
progress and improve training processes.
 Now you will add those tasks and milestones to a WBS spreadsheet. You will also use the sheet
to record task owners and any notes about the tasks and their owners. The project sponsor for
the Operations and Training plan, the Director of Operations, has put together a team for the
operations launch. You can select task owners from among the following team:

 A Financial Analyst, who tracks and calculates costs and revenue

 A Fulfillment Director, who sources materials, ensures equipment is functional, and confirms
fulfillment processes are correctly implemented
 An Inventory Manager, who maintains inventory and oversees software installation
 A Human Resources Specialist, who manages hiring and develops training protocols (with the
help of the Training Manager)
 A Training Manager, who reports to the HR Specialist, runs the training program on the
established protocols, and refines training processes
 A Quality Assurance Tester, who ensures product quality and determines safety protocols
and best practices

Step 5 (Optional): Add tasks to Asana

Many organizations use work management tools like Asana in addition to standard
spreadsheets. Hiring managers might even ask you about your experience with work
management software in interviews. That’s why we recommend recreating your WBS in Asana.

First, create an Asana account (if you don’t already have one). Then, create a project within
Asana. Finally, add milestones for each assignment and add tasks to the milestones.

For more detailed instructions on how to create an account, project, or milestone, click the links
below:

 Create an account
 Create a project
 Create a milestone (a premium Asana feature)

You can also import task data into Asana using a .CSV file. Click the links below to learn more
about the CSV importer.

 CSV importer - Asana

 Tips to organize your data in a spreadsheet for uploading
 Steps to import a spreadsheet into Asana

Assessment of Exemplar

Compare the exemplar to your completed WBS spreadsheet. Review your work
using each of the criteria in the exemplar. What did you do well? Where can you
improve? Use your answers to these questions to guide you as you continue to
progress through the course.

Let’s review the WBS spreadsheet:

There are three milestones from the brainstorm diagram in the Milestones column
and three tasks for each milestone (nine tasks in total). The project tasks correspond
to the correct milestone ID number. The tasks are the same ones listed in the
brainstorm diagram.

Each task has an appropriate owner, with corresponding notes for why the owner
was assigned to the task:

Establish a plant delivery and logistics plan

1. Source materials for packaging: The Fulfillment Director sources

materials.
2. Hire delivery drivers: The Human Resources Specialist oversees hiring.
3. Calculate delivery fees: The Financial Analyst tracks costs and revenue.
Select and install supply chain software and equipment

1. Supervise vendor setup of inventory management and fulfillment software: The

Inventory Manager ensures software is installed and set up properly.
2. Supervise vendor installation of fulfillment equipment: The Fulfillment
Director ensures equipment is functional with the help of the Quality
Assurance Tester.
3. Determine internal safety protocols for the equipment: The Quality
Assurance Tester determines safety protocols and best practices.
Develop and launch employee training program

1. Develop training sessions: The Human Resources Specialist develops

the training sessions with the help of the Training Manager.
2. Train employees to use the software and equipment: The Training Manager
runs the training program on the established protocols.
3. Monitor employee progress and improve training processes: The Training
Manager refines the training process.
Scheduling

Case study: Run fast, pay later

Time estimation is used to predict the amount of time that will be required to
complete a task. We have talked about how a central part of being a project
manager involves planning. Carefully performing key steps of your planning process,
such as time estimation, can have a big impact on the success of your project.
Conversely, flawed time estimation is the root cause of many failed projects. That
means many projects fail because project managers and teams fail to accurately
estimate the time that it will take to complete tasks.
Let’s discuss the following case study, which discusses how inaccurate time
estimation can affect a project.

Run fast, pay later: A case study on time estimation

Kendra just scored a project manager role on a new project. It was a highly
competitive bid, and the company and Kendra are eager to do a great job.

Kendra realized immediately that the timeline for the project would be almost
impossible to execute. However, this was the first big project she was asked to
manage. Therefore, instead of letting management know about the project’s
impossible timeline, Kendra kept quiet and was determined to make it work. She
rushed through the planning phase to get the team moving since time was ticking
towards the project completion date. Kendra created all of the planning documents
without input from her team or other stakeholders, with the sole intention of reaching
the deadline.

During the team meeting, Kendra presented her project plan to the team. Right
away, team members expressed their concerns with the timeline. They felt like there
wasn’t enough time to complete their work, and they worried that the timeline didn’t
incorporate enough time for reviews. Kendra documented the team’s concerns, but
instructed them to simply work faster and make it happen.

As the project went on, the project faced schedule delays and other issues due to
rework, previously unaccounted for tasks, stressed team members, and concerned
stakeholders. Ultimately, the project missed its deadline. Later, the company did a
retrospective to determine where things went wrong, and Kendra learned a lot of
important lessons.

Analysis of the case study

Let’s break down the project planning process Kendra took and identify any missteps
and corrective actions that would have helped set her team up for success.

Escalating concerns

Kendra sensed the project timeline was problematic right from the start of the
project. Instead of gathering information to support her concerns and sharing it with
management, she decided to keep the issue to herself. She moved faster towards
the goal instead of slowing down and planning the project thoroughly.

Working carefully

If Kendra had taken the time to work carefully through the planning process, she may
have been able to build a more realistic project plan to deliver the best product to the
customer. She might also have identified potential time-saving activities that could
have helped her team meet the project deadline. Thorough and careful planning with
her team could have helped Kendra identify problems and solutions in advance,
such as:
  Elimination of tasks. It is possible that all of the tasks initially listed didn’t
need to be completed. There may have been unnecessary work added in, and
the team could have completed the project without it.
 Increased team size. Kendra could have addressed the potential schedule
risk by requesting more resources early on in the project rather than trying to
execute without the necessary resources.
 Streamlining of activities. There may have been some tasks that could
have been done in parallel, or at least not in sequential order.

Gathering input from the team

Kendra should have brought together team members, peers, and management to
help build and review her project plan, especially given the challenges of meeting the
proposed project timeline. Kendra also didn’t take action to address the concerns of
the team members who were responsible for completing the tasks within the
estimated time.

In this case study, the project manager faced the repercussions of careless time
estimates that resulted in rework and unplanned work. Most times, you can take a
pain point in a project—like concerns about timelines—and turn it into an opportunity
to be flexible and modify the plan to steer the project in a better direction.

Key takeaway

Be realistic when estimating time and effort for a project. Take the time to carefully
evaluate potential risks and the impact on the work, and talk to your team members
about these challenges. Don’t be afraid to escalate potential concerns to
management. Optimism is a trait of a great project manager and leader, but it can
adversely affect your projects when it comes to time estimation.

Overcoming the planning fallacy

It is human nature to underestimate the amount of time and effort it takes to
complete a task—from anything as simple as walking the dog to something as
complex as completing a project. People generally want to remain hopeful about a
positive outcome, and this is a great quality to have as a person. But as a project
manager, this kind of optimism can also be a deficiency, especially during the
planning phase of a project. Let’s examine a theory known as the planning
fallacy to better understand how to set yourself up for success in the planning
phase.
The planning fallacy and optimism bias

The idea of the planning fallacy was first introduced in a 1977 paper written by
Daniel Kahneman and Amos Tversky, two foundational figures in the field of
behavioral economics. The planning fallacy describes our tendency to underestimate
the amount of time it will take to complete a task, as well as the costs and risks
associated with that task, due to optimism bias. Optimism bias is when a person
believes that they are less likely to experience a negative event. For example, when
you are planning to walk your dog in between meetings, you might think that you can
do it faster than you actually can. Optimism bias is what tells you that you are going
to be able to walk your dog without being late for your next meeting. If you don’t
consider things that might affect the time it will take you to walk your dog—the
weather, the chance of them running into another dog and wanting to play, or the
fact that they frequently get distracted while sniffing around—you might be late for
your next meeting, or you might miss it altogether!

The planning fallacy can happen to anyone, regardless of whether or not they have
experience completing similar tasks. Whether this is your first time walking your dog
or your hundredth, you still have to consider the different factors that can affect how
long it will take you to complete the walk. This same principle applies in project
management. You may be brand new to this kind of project or you may have
managed tons of similar projects before; either way, you still need to be careful not to
underestimate the time it will take to complete each task on this particular project. As
a project manager, you should aim to balance being aware of the planning fallacy
with keeping an optimistic attitude about the project, even as things change. Be
optimistically realistic: Push for the best outcomes while planning for the proper time
it may take to accomplish each task.

Avoiding the planning fallacy: A case study

Think about the planning fallacy in relation to yourself as a project manager. If you
have planned massive efforts in your project plan with an optimism bias, this
planning fallacy could have a major impact on your project execution. You could set
your team up for failure by not giving them enough time to complete their tasks,
causing work to have to be redone or missing opportunities to execute the project
more efficiently.

Let’s examine how this happens. David is a project manager responsible for a home
construction project. Let’s check out his Work Breakdown Structure (WBS):
Working through his plan, David knows that certain things need to happen for the
house to be completed. He has to order materials, the materials have to be
delivered, the contractor has to actually build the house, and there needs to be time
for completing finishing touches and adjustments. The time estimations for those
major tasks might break down like this:

Task Estimated Duration

Foundation 2 weeks
Construction 4 weeks
Adjustments 4 weeks
After creating a WBS and a time estimation chart, David estimates that the
construction project will take a total of ten weeks. This sounds perfect because it
meets his delivery requirement. If David is unaware of the planning fallacy, he may
think his plan is solid and that his team is on their way to building the house within
the target timeline!

Fortunately, David is mindful of the planning fallacy. He examines the time estimates
more carefully. He considers risks like weather delays or crew members calling out
sick, which could set the project’s completion date back. He meets with his team
members and other stakeholders to help him uncover other possible risks that could
affect the project timeline. After carefully gathering information, he adjusts the time
estimates, adding task buffers to some of the project tasks to account for the
potential risks.
Key takeaways

Being on the lookout for “what-ifs” is a key project management skill. Considering
situations that could affect whether or not the project is completed on time can help
you overcome the planning fallacy. Also, you will always have a project team in your
corner, so make sure you use them as resources to help uncover possible risks.
Remember to be “optimistically realistic” and push for the best outcome while still
planning for the proper time to accomplish each task.

Creating a critical path

As you’ve just learned, the critical path refers to the list of required project
milestones you must reach to complete the project schedule, as well as the
mandatory tasks that contribute to the completion of each milestone. You can think
of the critical path as a framework that tells you, the project manager, where you are,
where you are headed, and when you will get there.

Why the critical path is critical

The critical path helps you determine the essential tasks that need to be completed
on your project to meet your end goal and how long each task will take. The critical
path also provides a quick reference for critical tasks by revealing which tasks will
impact your project completion date negatively if their scheduled finish dates are late
or missed. A critical path can help you define the resources you need, your project
baselines, and any flexibility you have in the schedule.

How to create a critical path

Each project you work on will be different, but there are some general steps for
creating a critical path that are applicable to most projects.

Step 1: Capture all tasks

When you first start working on your project schedule, you will capture all of the
tasks associated with the completion of the effort. Remember to use the key
planning documents you have created to get you to this point, such as your work
breakdown structure (WBS). The main goal in this step is to make sure that
you aren’t missing a key piece of work that is required to complete your project.
When creating a critical path, focus on the essential, “need to do” tasks, rather than
the “nice to do” tasks that aren’t essential for the completion of the project. Here is
an example of critical tasks for building the structure of a house:
 Task
A) Excavation
B) Foundation
C) Framing
D) Roof
E) Plumbing
F) Heating, ventilation, and air conditioning (HVAC)
G) Electrical
H) Insulation
I) Drywall + Paint
J) Flooring

Step 2: Set dependencies

Now that you have captured all of your critical tasks in list form, arrange those tasks
in order of completion by identifying dependencies. To determine dependencies,
figure out which tasks must be completed before other tasks can start. For example,
you can’t paint the outside of a house before the house is built, so the task of framing
the walls must come before the task of painting them. Identifying dependencies is
key to a successful project schedule.

To figure out dependencies for each task, ask:

 Which task needs to take place before this task?

 Which task can be finished at the same time as this task?
 Which task needs to happen right after this task?
Once you have answered these questions, you can list these dependencies next to
your list of tasks:

Task Dependency
A) Excavation
B) Foundation A) Excavation
C) Framing B) Foundation
D) Roof C) Framing
E) Plumbing C) Framing
F) HVAC C) Framing
G) Electrical C) Framing
H) Insulation E) Plumbing, F) HVAC, G) Electrical
 Task Dependency
I) Drywall + Paint H) Insulation
J) Flooring I) Drywall + Paint

Step 3: Create a network diagram

One common way to visualize the critical path is by creating a network diagram.
Network diagrams, like the example below, sequence tasks in the order in which
they need to be completed, based on their dependencies. These diagrams help
visualize:

 The path of the work from the start of the project (excavation) to the end of the
project (flooring)
 Which tasks can be performed in parallel (e.g., HVAC and plumbing) and in
sequence (e.g., plumbing then insulation)
 Which non-essential tasks are NOT on the critical path

Step 4: Make time estimates

After determining tasks and dependencies, consult key stakeholders to get accurate
time estimates for each task. This is a crucial step in determining your critical path. If
your time estimates are significantly off, it may cause the length of your critical path
to change. Time estimates can be reviewed and updated throughout the project, as
necessary.

Task Duration Dependency

A) Excavation 1 Day

B) Foundation 3 Days A) Excavation

C) Framing 15 Days B) Foundation
D) Roof 3 Days C) Framing
E) Plumbing 4 Days C) Framing
F) HVAC 3 Days C) Framing
G) Electrical 3 Days C) Framing
H) Insulation 2 Days E) Plumbing, F) HVAC, G) Electrica
I) Drywall + Paint 15 Days H) Insulation
J) Flooring 7 Days I) Drywall + Paint

Step 5: Find the critical path

Now that you have your estimated durations for each task, add that information to
your network diagram:

If you add up the durations for all of your “essential” tasks and calculate the longest
possible path, you can determine your critical path. In your calculation, only include
the tasks that, if they go unfinished, will impact the project’s finish date. In this
example, if the “non-essential” tasks—like landscaping and driveway pavement—are
not completed, the house structure completion date will not be impacted.

You can also calculate the critical path using two common approaches: the
forward pass and the backward pass. These techniques are useful if you are
asked to identify the earliest and latest start dates (the earliest and latest
dates on which you can begin working on a task) or the slack (the amount of time
that task can be delayed past its earliest start date without delaying the project).

 The forward pass refers to when you start at the beginning of your project
task list and add up the duration of the tasks on the critical path to the end of
your project. When using this approach, start with the first task you have
identified that needs to be completed before anything else can start.
 The backward pass is the opposite—start with the final task or milestone
and move backwards through your schedule to determine the shortest path to
completion. When there is a hard deadline, working backwards can help you
determine which tasks are actually critical. You may be able to cut some tasks—
or complete them later—in order to meet your deadline.
You can read more about each of these concepts and critical path calculation
methods in the following articles:

 How to Use the Critical Path Method for Complete Beginners

 Critical Path Method: A Project Management Essential

Creating a project plan: Tools and

templates
Project plans are critical because they are used to capture the scope and time it
takes to complete a project. The project plan is essentially the project’s blueprint—it
lays out all of the activities and milestones that your team needs to achieve in order
to successfully complete the project. Project plans come in various shapes, sizes,
and forms. Depending on the project you are managing, the template you use may
vary, and some companies even have standard templates they require their project
managers to use.

In the previous videos, you learned about various tools and techniques to create a
project plan. But how do you know which tools and techniques to use and when? As
a general rule, it is best to use a spreadsheet for a simple project and project
management software for a more complex project. Regardless of what tool you use,
be sure to include this key information:

 Task ID numbers or task names: You might end up with dozens,

hundreds, or even thousands of tasks in a project. Assigning a task ID or name
makes it easy to find and reference a task when communicating with team
members and stakeholders.
  Task durations: A task duration is the amount of time you estimate that task
should take. Adding task durations to your project plan helps you organize and
prioritize the tasks in the project to help ensure you hit your goal on time.
 Start and finish dates: Including start and finish dates for each task helps
you track whether you are progressing on time or not.
 Who is responsible for what: Including each team member’s role and
responsibilities helps promote clarity and efficiency. As a best practice, assign
an owner to each task, as well.
Using a spreadsheet to build a project plan

Spreadsheets are an excellent tool to use for project plans, particularly for projects
that are less complex and that have a clear assignment of tasks. Spreadsheets can
require a lot of manual input of information, but as a project manager, you may find
that you like the control that spreadsheets provide. Spreadsheets are also
customizable, so you can tailor them to your project’s needs.

The graphic below shows what a project plan for a website launch might look like in
a simple spreadsheet.

Pro tip: It is important to incorporate your Work Breakdown Structure

(WBS) numbers into your project plan. In this example, the ID numbers directly
relate to the WBS numbers, which is a helpful way to maintain consistency.

Spreadsheet templates

It is helpful to try online tutorials so that you can get used to the different
functionalities and user interfaces of each tool. We have included links to some
project plan templates below:

Smartsheet: Project Plan Templates for Microsoft Word

Smartsheet: Project Plan Templates for Google Sheets

Google Project Plan Timeline Template

Microsoft Gantt Chart Template

Work management tools

There are many work management tool options available for you to utilize when
planning your project. We covered some of these in previous videos, but as a
refresher, it is important to keep in mind that every company, project manager, and
customer has a work management tool preference. You may come across tools like
Smartsheet, Asana, Jira, Trello, and many more. These tools allow for collaboration
and communication at a task level.
Key takeaway

The tool you use to create your project plan should help you collect and track project
details, manage your schedule, and visualize how your project is progressing. A
clear, thorough, and organized project plan can help create the recipe for project
management success.

Introduction to Kanban boards

Kanban boards are a visual tool used to manage tasks and workflows. Kanban
boards can be created on whiteboards, magnetic boards, poster boards, computer
programs, and more. Tasks associated with the project are written on cards. These
cards are placed in columns, which represent the progress made.

Although Kanban boards are useful for all kinds of projects, they are typically most
suitable for project teams working in an Agile project management approach. You
may remember that Agile project management is an iterative approach to managing
projects that focuses on continuous releases and incorporates customer feedback
with every iteration. Once you become a project manager and have created your
project plan, you can decide whether a Kanban board is right for your project.

Purposes of a Kanban board

Kanban boards are used to:

 Give a quick visual understanding of work details and provide critical task
information.
 Facilitate handoffs between stakeholders, such as between development and
testing resources or between team members who work on related tasks.
 Help with capturing metrics and improving workflows.

Using a Kanban board

Before creating a board, it is best practice to gather the necessary information and
lay out key elements, such as tasks, status, dates, and durations. That information is
useful when building your board.

Let’s turn our focus to an example of a Kanban board below. Each colored rectangle
is associated with a task. The tasks are represented horizontally across the effort
timeline. Each column represents where the task is in relation to its completion. So
as a task is started, it will move from to do, to in progress. When the project is almost
ready to be released or complete, it will move to testing, and when it is tested and
approved, it will move to done. Note that this is just one example of a Kanban board,
and depending on the tool you use—such as software or a physical board—you can
customize your board using various columns and cards. The board can also have
rows for resources (team or person), to help visualize who is actively working on
what.
Creating cards

Cards will vary in style—you can even use sticky notes on a whiteboard—but most
cards will contain a few key details about the task that they represent. When using
physical cards, teams often use both sides. Here is what both sides of the card
should include:

Front

 Title and unique identifier: Make sure you have a quick reference for
tasks and ID numbers.
 Description of work: Briefly describe the task to be accomplished.
Remember that this is intended to be captured on something no larger than an
index card.
 Estimation of effort: Estimate the amount of work it will take to complete
the task. For example, you can write “small,” “medium,” or “large” to indicate the
level of effort you think that task will involve.
 Who is assigned to the task: Indicate who is responsible for completing
the task; ideally, one person per card.
Back

 Start date: Include the start date of the task for use in metrics, tracking, and
ensuring that your time estimate is accurate.
 Blocked days: Indicate which days your task may be halted. A task can
become blocked if it can’t continue to be worked on. For example, if you were
supposed to receive a deliverable and it hasn’t been delivered yet, then your
day may be blocked for this particular task.
 Finish date: As with any plan, it is important to track when the task is
supposed to be finished. This allows you to ensure that your project is still on
track to reach the end goal.

Kanban board software

If you opt to use a software tool rather than a physical board, you have a few
options. Asana and Trello are both great software tools to use if you are looking to
introduce Kanban to your project. There are many options, so take the time to
evaluate which is best for you and your project.

Project budgeting 101

A project budget is the estimated monetary resources needed to achieve a
project's goals and objectives. In previous lessons, we covered a wide range of
information related to project budgets. Let’s recap to make sure you have the
information and tools you need to create and manage your project’s budget.

Budgets are created in the initiation phase of your project. As with any other
project management document, you need to continue to review and control the
budget throughout the life cycle of your project. Your budget is more than just how
much it will cost to complete the project—it is a helpful tool to reference when
communicating with stakeholders and can double as a tracker for your project’s
progress. Budgets also help control your costs and act as the baseline for the
financial portion of the project.

Project budgeting best practices

Here are a few tips to consider when creating your project budget:

 Reference historical data: Your project may be similar to a previous

project your organization has worked on. It is important to review how that
project’s budget was handled, find out what went well, and learn from any
previous mistakes.
  Utilize your team, mentors, or manager: Get into the habit of asking
for your team to double check your work to give you additional sets of eyes on
your documents.
 Time-phase your budget: Time-phased budgeting allows you to allocate
costs for project tasks over the projected timeline in which those expenses are
planned to take place. By looking at your tasks against a timeline, you can track
and compare planned versus actual costs over time and manage changes to
your budget as necessary.
 Check, check, and double check: Make sure that your budget is
accurate and error-free. Your budget will likely require approval from another
department, such as finance or senior management, so do your best to ensure
that it is as straightforward to understand as possible and that all of your
calculations are correct.

Categorize different types of costs

There are different types of costs that your project will incur. For example, you may
need to account for both direct costs and indirect costs in your project
budget. Categorize these different types of costs in your budget so that you can
ensure you are meeting the requirements of your organization and customer.

Direct costs

These are costs for items that are necessary in order to complete your project.
These costs can include:

 Wages and salaries of employees and contractors

 Materials costs
 Equipment rental costs
 Software licenses
 Project-related travel and transportation costs
 Staff training

Indirect costs

These are costs for items which do not directly lead to the completion of your project
but are still essential for the project team to do their work. They are also referred to
as overhead costs. These costs can include:

 Administrative costs
 Utilities
 Insurance
 General office equipment
 Security

Develop a baseline budget

A baseline budget is an estimate of project costs that you start with at the
beginning of your project. Once you have created a budget for your project and
gotten it approved, you should publish this baseline and use it to compare against
actual performance progress. This will give you insight into how your project budget
is doing and allow you to make informed adjustments.

It is important to continually monitor your project budget and make changes if

necessary. Be aware that budget updates can require the same approvals as your
initial budget. Also, you should “re-baseline” your budget if you make significant
changes. Re-baselining refers to when you update or modify a project's baseline as
a result of any approved change to the schedule, cost, or deliverable content. For
example, if you have a significant change in your project scope, your budget will
likely be impacted. In this instance, you would need to re-baseline in order to adhere
to a realistic budget.

Key takeaways

Budgeting in the project management world is a complex process involving many

different parties and documentation, but following the best practices described in this
reading can help break it down. Remember to use historical data and time-phasing,
and reach out to your team for support. Make sure you are capturing all of the
components of your budget, including direct and indirect costs. Finally, be sure to
baseline your budget so you know where your money is being used and when.
These tips can help set you up for budget management success.

Helpful budget templates

In the previous lessons, you learned that projects come in all shapes and sizes—and
so do their budgets. Budgets can be created in a simple spreadsheet or with more
complex software programs. Determining which tool is right for you and your project
will require input from your organization and your customer.

Budget spreadsheet templates

Budget templates are a useful tool for helping you estimate, track, and maintain a
project budget. Below, you will find a few different budget templates that you can use
for future projects. Each of these templates is formatted in a digital spreadsheet.
Microsoft Excel Budget Templates

Microsoft Excel Website Budget Template (applicable to any project)

Google Sheets Budget Template (Note: You will need to be signed in to a Google
account in order to make a copy of the template.)

Spreadsheet skills for budgeting

When using a spreadsheet to track a budget, there are basic skills you will need to
learn. Understanding how to use SUM and AVERAGE formulas, tables, and filters
are just a few of the spreadsheet skills that will make your job as a project manager
much easier. Make sure to check the course resources on spreadsheets for an
introduction to these skills.

Overcoming budgeting challenges

As you have learned, effective budgeting can set you up for success as a project
manager. This reading will discuss some of the most common budgeting challenges
you may encounter as a project manager and how to manage them.

Challenge 1: Budget pre-allocation

You may encounter situations where your budget is already set before you even start
the project. This is known as budget pre-allocation. Some organizations follow
strict budgeting cycles, which can lead to cost estimations taking place before the
scope of the project is completely defined.

If you are given a pre-allocated budget, it is important to work with your customer to
set expectations on scope and deliverables within the allocated budget. To deliver a
great product within your allocated budget will require detailed planning.

A pre-allocated budget should also be routinely monitored to ensure the amounts

you have budgeted are sufficient to meet your costs. Be sure to carefully track all
expenses in your budget. Regularly match these expenses against your pre-
allocated budget to ensure you have sufficient funds for the remainder of your
project.

Part of that planning includes making sure that you are tracking fixed and time- and
materials-based expenses. Fixed contracts are usually paid for when certain
milestones are reached. Time and materials contracts are usually paid for
monthly, based on the hours worked and other fees associated with the work, such
as travel and meal expenses.

Challenge 2: Inaccurately calculating TCO

Another budgeting pitfall you should try to avoid is underestimating the total cost
of ownership (TCO) for project resources. TCO takes into account multiple
elements that contribute to the cost of an item. It factors in the expenses associated
with a product or service over its lifetime, rather than just upfront costs.

Let’s relate TCO to something more common, like owning a vehicle. Let’s say you
buy a vehicle for a certain price, but then you also pay for things related to the
vehicle, such as license fees, registration fees, and maintenance. If you add all of
this up, you have your TCO for that vehicle. So now that you know what your TCO is,
you may consider those fees before you buy your next vehicle. For example, you
might opt for a vehicle with fewer maintenance requirements than one that requires
more frequent service, since you know that will save you money overall.

The same concept applies to budgeting on a project. If you have a service

requirement for a software technology that your team is using, for example, then it is
important to budget for the costs of maintenance for that service. Additional types of
costs you may need to account for when calculating TCO include warranties,
supplies, required add-on costs, and upgrade costs.

Challenge 3: Scope creep

Scope creep is when changes, growth, and other factors affect the project’s
scope at any point after the project begins. Scope creep causes additional work that
wasn’t planned for, so scope creep can also impact your budget.

There are several factors that can lead to scope creep, such as:

 A vague Statement of Work (SoW)

  Conversations and agreements about the project that aren’t officially
documented
 Unattainable timeframes and deadlines
 Last-minute asks from priority stakeholders
Addressing these factors as you plan your project can help prevent scope creep from
impacting your budget.

Key takeaway

There can be many challenges to face when planning and managing a budget.
Budget pre-allocation, underestimating the TCO of project resources, and scope
creep are some of the most common. As you continue your career as a project
manager, awareness of these challenges can help you avoid and overcome them.

Scenario

Review the scenario below. Then follow the step-by-step instructions.

As project manager for Office Green, your job includes working with the operations team to
develop and implement an Operations and Training plan for the Plant Pals service. In addition to
identifying the major milestones and associated tasks for this plan, you also need to estimate the
costs and create a budget.

You will use this budget as a baseline throughout the project, but you should monitor spending
throughout the project and make adjustments as needed.

The estimated costs of the milestones and their subtasks are as follows:

Milestone 1: Establish a plant delivery and logistics plan.

 Task 1: Purchase delivery trucks. Purchase two delivery trucks at a cost of $15,000 per truck.
 Task 2: Source packaging materials. Purchase 1,500 boxes at a cost of $2 per box.
 Task 3: Pay delivery drivers. Pay two delivery drivers for ten days (assume eight-hour work
days) at a rate of $15 per hour.

Milestone 2: Select and install supply chain management software and equipment.

 Task 1: Source vendor (includes setup, installation, and deployment of software and equipment
systems): Fixed cost of $15,000.
 Milestone 3: Develop and launch an employee training program.

 Task 1: Develop training sessions. Pay the HR specialist $50 per hour for ten days (assume
eight-hour workdays).
 Task 2: Train employees to use the software and equipment. Pay the Training Manager $25 per
hour for ten days (assume eight-hour workdays).
 Task 3: Monitor employee progress and improve training processes. Pay the Training Manager
$25 per hour for another ten days (assume eight-hour workdays).

Your estimated budget to reach these milestones is $62,000. This amount includes a reserve
buffer of $3,600 to account for unexpected costs. You should generally allow for a buffer of at
least 5%.

Question 1

To pass this practice quiz, you must receive 100%, or 1 out of 1 point, by completing the activity
below. You can learn more about the graded and practice items in the Course Overview.

Activity Overview
In this activity, you will create a project budget to estimate the total cost for developing and
implementing an Operations and Training Plan. Be sure to complete this activity before moving
on. The next course item will provide you with a completed exemplar so you can compare your
work. You will not be able to access the exemplar until you have completed this activity.

Scenario

Review the scenario below. Then follow the step-by-step instructions.

As project manager for Office Green, your job includes working with the operations team to
develop and implement an Operations and Training plan for the Plant Pals service. In addition to
identifying the major milestones and associated tasks for this plan, you also need to estimate the
costs and create a budget.

You will use this budget as a baseline throughout the project, but you should monitor spending
throughout the project and make adjustments as needed.

The estimated costs of the milestones and their subtasks are as follows:

Milestone 1: Establish a plant delivery and logistics plan.

 Task 1: Purchase delivery trucks. Purchase two delivery trucks at a cost of $15,000 per truck.
 Task 2: Source packaging materials. Purchase 1,500 boxes at a cost of $2 per box.
 Task 3: Pay delivery drivers. Pay two delivery drivers for ten days (assume eight-hour work
days) at a rate of $15 per hour.

Milestone 2: Select and install supply chain management software and equipment.

 Task 1: Source vendor (includes setup, installation, and deployment of software and equipment
systems): Fixed cost of $15,000.

Milestone 3: Develop and launch an employee training program.

 Task 1: Develop training sessions. Pay the HR specialist $50 per hour for ten days (assume
eight-hour workdays).
 Task 2: Train employees to use the software and equipment. Pay the Training Manager $25 per
hour for ten days (assume eight-hour workdays).
 Task 3: Monitor employee progress and improve training processes. Pay the Training Manager
$25 per hour for another ten days (assume eight-hour workdays).

Your estimated budget to reach these milestones is $62,000. This amount includes a reserve
buffer of $3,600 to account for unexpected costs. You should generally allow for a buffer of at
least 5%.

Step-By-Step Instructions

Step 1: Access the template

To use the template for this course item, click the link below and select “Use Template.”

Link to template: Project budget

OR

If you don’t have a Google account, you can download the template directly from the attachment
below.

Activity Template_ Project budgetXLSX File

Download file
 Step 2: Add milestones and tasks

Fill in the project milestones and tasks under Milestones & Tasks. Be sure to group each task
with its associated milestone. When you’re finished, your budget should include three milestones
and seven tasks. We’ve filled in the first milestone and task for you.

Step 3: List project employees

For each task associated with particular employees, enter the employee who should be paid for
that task under Employee Details. Some tasks may not have any associated employees, while
others could have two or more (e.g., two delivery drivers).

Note: Your spreadsheet should include the pay rates for hourly employees, like the delivery
drivers. You should only list salaried employees when they work extra hours on special projects
included in the scenario (e.g., the HR Specialist developing the training sessions).

Step 4: List employee hours and rates

Next, calculate the number of hours each employee will spend on each task. Enter this number
under Hours. Now list each employee’s hourly pay rate under Rate. Note that the spreadsheet
calculates the total cost for you.

Step 5: Enter material quantities and costs

Now review the scenario for any materials you need to purchase (e.g., trucks, boxes):

 For materials priced per unit, enter the amount needed under Units. Then record the cost per
unit under $/Unit.
 For fixed-cost materials, record the price under Fixed Cost.

Assessment of Exemplar
Compare the exemplar to your completed budget. Review your work using each of
the criteria in the exemplar. What did you do well? Where can you improve? Use
your answers to these questions to guide you as you continue to progress through
the course.

Let’s review each section of the budget:

 The exemplar includes all three milestones and the seven associated tasks.
 Each task includes the relevant information from the scenario (employee details,
cost of labor or materials, or a fixed fee).
 The completed spreadsheet breaks down the budget by milestone. The total
budget, including a $3,600 buffer, comes to $62,000.

Optional: Introduction to budgeting terms

Now that you have learned how to create a project budget, let’s discuss some of the
common terms you will use when you are estimating, tracking, and maintaining it.

Cash flow

Cash flow is the inflow and outflow of cash on your project. As a project manager,
this is important to understand because you need funding (cash into your project)
to keep your project running.

Cash that comes into your project allows you to maintain and compensate resources
and pay invoices for materials or outside services. In some cases, a project may
start out with all of the cash it will receive until the end. If this is the case, it is
important to monitor your outflow to ensure that you have enough funding to
complete the project.

Monitoring cash flow allows you to have a reference point for your project’s health.
For example, if the cash flow coming into your project is lower than your outflow, you
will need to adjust your budget. Planning and tracking the cash flow for your project
is a key component of budget management.

CAPEX and OPEX

Organizations have a number of different types of expenses, from the wages they
pay their employees to the cost of materials for their products. These expenses can
be organized into different categories. Two of the most common are CAPEX
(capital expenses) and OPEX (operating expenses).

 CAPEX (capital expenses) are an organization's major, long-term, upfront

expenses, such as buildings, equipment, and vehicles. They are generally for
assets that the company will own and keep. The company incurs these
 expenses because they believe they will create a benefit for the company in the
future.
 OPEX (operating expenses) are the short-term expenses that are required for
the day-to-day tasks involved in running the company, such as wages, rent, and
utilities. They are often recurring.
You may need to account for both OPEX and CAPEX on your projects. For example,
a major software acquisition as part of an IT project could be treated by your
organization as a capital expense. The monthly wages paid to a contractor to help
deploy the software would be an operating expense. It’s a good idea to talk to your
finance or accounting department when you start working on your project budget to
see how they determine the difference between OPEX and CAPEX. This will guide
you in properly allocating capital and operating expenses for your projects.

Contingency reserves

Sometimes, a project hits a snag and incurs additional expenses. One way to
prepare for unplanned costs is by using contingency reserves. Contingency
reserves are funds added to the estimated project cost to cover identified risks.
These are also referred to as buffers.

To determine the amount of your contingency reserves, you will need to go through
the risk management process and identify the risks that are most likely to occur. We
will go into more detail on risk management later in the course, but it is important to
understand that risks to your project can have an impact on your budget.

Contingency reserves can also be used to cover areas where actual costs turn out to
be higher than estimated costs. For example, you may estimate a certain amount for
labor costs, but if a contracted worker on your team gets a raise, then the actual
costs will be higher than you estimated.

Management reserves

While contingency reserves are used to cover the costs of identified risks,
management reserves are used to cover the costs of unidentified risks. For
example, if you were managing a construction project and a meteor hit your
machinery, you could use management reserves to cover the costs of the damage.

Contingency reserves are an estimated amount, whereas management reserves are

generally a percentage of the total cost of the project. To determine a project’s
management reserves, you can estimate a percentage of the budget to set aside.
This estimate is typically between 5–10%, but the amount is based on the complexity
of the project. A project with a more complex scope may require higher management
reserves. Note that the project manager will generally need approval from the project
sponsor in order to use management reserves.
Tips for the procurement process
As you have learned, procurement means obtaining all of the materials, services,
and supplies required to complete the project. You have just learned about the
procurement process in project management. To recap, there are five steps in the
typical procurement process:

1. Initiating: planning what you need to meet your project goals

2. Selecting: deciding which supplies and vendors to use
3. Contract writing: developing, reviewing, and signing contracts
4. Controlling: making payments and maintaining and ensuring quality
5. Completing: measuring your success

During each step of the procurement process, there are some tips that can help you
save time and money while ensuring your project’s success.

Tips for initiating

While planning your project, figure out which materials, resources, and supplies you
will need to get the job done. During this step, you will decide which items will be
internally procured and which items will be externally outsourced. Once you’ve
decided which items you need to outsource, compare each of those items
specifications, components, quality measurements, standards, and characteristics
with your project’s requirements. You may find that some of the items have features
you don’t need. If you can identify those unnecessary features, you will know exactly
what you want and don’t want in an item, possibly reducing your total cost.
Tips for selecting

Now that you have outlined what you need for your project, you need to determine
vendors to source these items. Research and assess various vendors and suppliers,
and try to find out if your preferred vendors have a reputation for delivering quality
work on time. After you’ve identified your preferred vendors and suppliers, interview
them to learn more about their products and services. If possible, make site visits to
see exactly how each vendor runs their business in person.

Tips for contract writing

Contract writing requires excellent attention to detail, so pay close attention to the
inclusions and exclusions in the vendor’s offer. There may be some items included in
the vendor’s price that you can provide in-house at low or no additional cost. For
example, the vendor’s offer may include charges for storing materials, using certain
equipment, or labor. These are all things that you may be able to provide from your
organization’s resources, so you can opt to save costs with the vendor on those
items by using in-house materials and resources.

Sometimes, the vendor may write the contract. In this case, checking carefully for
clarity and accuracy ensures that you know exactly what you are getting from the
vendor. Whether the contract is written by you or by the vendor, you will almost
always want to consult with a legal and compliance team to ensure that everything in
the contract is ethical and legal.

Tips for controlling

The procurement process isn’t over when the contracts are signed. The next step is
to ensure that the work is being done according to the terms of the contract. You will
need to periodically review the performance and quality of each vendor. When
communicating with vendors, remain professional but firm to ensure that all project
requirements are being fulfilled and that all major milestones are being met on time
and at cost.

Building and maintaining a good relationship with your vendors benefits the team
and the overall project. This relationship will make it easier to make adjustments and
contract revisions if the need arises. Taking certain measures, like conducting
regular check-in meetings, will ensure that the work is being completed according to
plan.

Tips for completing

In the completing step of the procurement process, you will measure the success of
your procurements. Ask yourself:

 Were the materials created good quality?

 Were there any issues with labor contracts?
 How were your relationships with vendors?
 During this step, it is also important to document any lessons learned. It is likely that
you will be involved in another project similar to this one in the future. Take notes
about how the procurement process went so you can use this information on a future
project.

Key takeaways

Procurement is an ongoing process that can be repeated during the life cycle of a
project. You may initiate the procurement process several times over if you need
additional deliverables. To do so, you will likely evaluate your current vendors—or
select new ones if necessary. If you change vendors or contract terms, you will have
to write new contracts. It is important to periodically review the quality of each vendor
during the controlling phase and, once everything is finished, document the lessons
you learned during the completion phase.

Question 1

To pass this practice quiz, you must receive 100%, or 1 out of 1 point, by completing the activity
below. You can learn more about the graded and practice items in the Course Overview.

Activity Overview
In this activity, you will apply what you have learned about procurement value to complete a
Statement of Work (SoW). An SoW is a document that lays out the products and services a
vendor or contractor will provide for the organization. It also describes what the contractor needs
to perform the agreed-upon services. Be sure to complete this activity before moving on. The
next course item will provide you with a completed exemplar to compare to your own work. You
will not be able to access the exemplar until you have completed this activity.

Scenario

Review the scenario below. Then follow the step-by-step instructions.

As part of the Plant Pals Operations and Training plan, you selected a vendor to install supply
chain management software and equipment. In order to ensure the vendor can successfully set
up the proper systems, you need to prepare a Statement of Work (SoW).

For this engagement, the SoW should contain the following elements:

 The vendor will configure inventory and fulfillment tracking software for the Office Green team.
This includes auditing existing Office Green software and developing optimizations.
 The vendor will also install the new software on all Office Green devices and equipment
(laptops, mobile devices, and hard drives).
 The vendor will install fulfillment equipment in Office Green’s warehouses.
 The vendor will create training manuals and a maintenance guide for the software and
equipment.
 The vendor will meet with the Training Manager and the HR Specialist to explain the training
manuals and answer questions.
 The vendor should complete all tasks within two weeks (10 business days).
 The vendor is not responsible for training other employees or ongoing maintenance.
 Office Green will pay the vendor once they have completed all of the work.

Step 2: Title the document

First, write the project name in the page header and under the Office Green logo.

Step 3: Add important stakeholders

Record important stakeholders for the project under the project name. In this case, that includes
the project lead (that’s you, the project manager) and the project sponsor (the Director of
Product).

Note: You won’t fill in the Revision History until you’ve drafted the SoW and shared it with
stakeholders. This is where you will log changes to the SoW, so don’t forget to include it.

Step 4: State the purpose

In the Purpose section, write a sentence or two explaining the desired outcomes for the SoW.
Try to be as specific as possible about your goals for working with the vendor and how they
relate to the larger aims of the Plant Pals project.

Step 5: Define the scope

Next, define the project scope. Enter the major activities the vendor will complete into the Scope
section.

Step 6: Define out-of-scope activities

Record activities that are beyond the contract’s scope in the Out-of-scope activities section.
Defining what's out-of-scope sets expectations and minimizes potential confusion.

Step 7: Define deliverables

Describe the tangible and intangible outcomes of the vendor’s work in the Deliverables section.
Make sure to be specific and consider the overall goals of the Plant Pals project.
 Step 8: Add milestones

Consider the scenario carefully and break down the vendor’s work into at least three milestones.
The milestones should define the major benchmarks the vendor must reach to complete the
work. They are essential to tracking progress and should align with the in-scope activities. Write
them in the Milestones section of the SoW.

Step 9: Estimate time to completion

Use the scenario above to estimate the approximate number of hours the work should take.
Assume eight-hour work days and five-day work weeks.

For example, an assignment that lasts for 20 business days should take 160 hours to complete.
Enter the number in the Estimated hours for completion section.

Step 10: Identify a due date

Select a date by which the vendor must complete all of the work. Calculate this date using the
start date listed in the SoW header (April 12).

Step 11: Set payment terms

It’s important for all parties to agree when the vendor will be paid for their work. Record the terms
from the scenario in the Payment Terms section.

What to Include in Your Response

Be sure to include the following elements in your completed Statement of Work (SOW):

 A purpose statement for the SoW

 A list of in-scope items
 A list of out-of-scope items
 Expected deliverables
 Major milestones
 The estimated hours needed for completion
 An estimated date of completion
Assessment of Exemplar

Compare the exemplar to your completed SOW. Review your work using each of the
criteria in the exemplar. What did you do well? Where can you improve? Use your
answers to these questions to guide you as you continue to progress through the
course.

Let’s review the completed SoW:

 There is a clear and concise purpose statement for the internal stakeholders
and the vendor to review.
 The list of in-scope items is clear and specific.
 The list of out-of-scope items sets expectations up front, acting as a single
source of truth for the project’s boundaries. So, for example, if Office Green
wanted the vendor to continue training employees beyond the contract, they
would need to submit a change request.
 The deliverables are clear and specific.
 The major milestones serve as checkpoints for the project’s progress. The
milestones represent the agreed-upon deliverables that the vendor must meet to
receive payment.
 The estimated hours to completion match the duration of the contract.
 The estimated completion date is ten business days from the contract start date.
 The payment terms are laid out clearly.

Avoiding ethical traps in procurement

Now that you have learned about the importance of ethics when conducting
procurements, let’s talk about some potential ethical traps you might face and how to
navigate them.

Understanding ethical traps

An ethical trap is an ethical dilemma that causes us to make a certain decision

without regard for our ethical principles. You may face ethical traps throughout the
course of a project. However, ethics can be of particular concern when it comes to
procurement. As you have learned, project managers must take precautions to
ensure that they and their suppliers are following ethical principles during the
procurement process.

Common ethical traps

Sometimes, potential ethical issues can be overlooked or can be considered the

necessary cost of doing business. This is a dangerous line of thinking since these
types of assumptions can put your project, company, and career at risk. To review
what we discussed in the video, a few of the most common ethical traps that exist
when conducting procurements are corruption and bribery, sole-supplier sourcing,
and interactions with state-owned agencies.

Corruption and bribery

You may be confronted with different types of corruption when going through the
procurement process. One form of corruption is when a vendor seeks to reduce the
competition for a contract during the bidding process. A company may attempt to
bribe members within the organization to sway their decision into a favorable
outcome for the vendor. Bribes may include things like money, gifts, tickets to
events, and more. Another type of corruption scheme is to offer a certain percentage
of an awarded contract—also known as a kickback—to an official who can ensure
that their company wins the bid.

Sole-supplier sourcing

In some situations, having a vendor who a company is already familiar with smooths
the procurement process and works well for both parties. Ethical issues arise when
other vendors aren’t even allowed to bid for contracts for which they are similarly
qualified. With sole-supplier sourcing, vendors may reach out to buyers before
a bid is even requested. When the buyer’s organization decides to work with that
vendor based on their previously-established relationship, that limits competition
before the bidding has even begun. When this happens, companies and the public
miss out on the advantages of competition, such as reasonable pricing, product
quality standards, or speedy delivery options.

Interactions with state-owned entities

There are some instances in which government agencies require an organization to

adhere to stricter ethical standards than they might have otherwise. Most
government regulatory agencies exist because a company or an entire industry has
ranked profits over their workers or the environment. Governmental agencies such
as the Food and Drug Administration and The Occupational Safety and Health
Administration, for example, keep businesses within legal and ethical standards. If
you are unfamiliar with any governmental restrictions that may affect your industry,
organization, or project, you could unintentionally fall into an ethical trap.

Avoiding ethical traps

Here are some guidelines that will help you avoid falling into ethical traps when it
comes to procurement:

Understand the legal requirements for your procurements.

Every country has regulations to adhere to when conducting business in that

country. Be sure to research the legal and ethical requirements based on your
project and procurement needs, and if your organization has a legal team, make
sure to lean on them for support and advice.

Stick to your ethical codes.

Honesty, responsibility, respect, and fairness are the values that underpin ethical
behavior in the project management profession. The Project Management Institute’s
(PMI) code of ethics provides detailed guidelines to help ensure you maintain
ethical conduct in your projects.

Test your ethics.

When you face an ethical dilemma, ask yourself questions in each of the following
categories:

 Shame: Would you be ashamed if someone knew what you did?

 Community: Would you want your friends to know the decision you made?
 Legal: Would you face legal action if you took this action?
 Situation: Would your actions be justified in this situation?
 Consequence: Would a negative outcome be worth your actions?

Key takeaway

Making a decision when facing an ethical dilemma can be challenging. But learning
the legal requirements for your procurements, sticking to a professional code of
ethics, and testing yourself on the ethics of your decision making can help you avoid
ethical traps and conduct your procurements honestly, responsibly, and fairly.

Phases of risk management

In a previous video, you learned that risk management is the process of
identifying and evaluating potential risks and issues that could impact your project.
Risk management is an ongoing practice throughout the life cycle of your project. It
typically involves some variation of these five steps:

1. Identify the risk.

2. Analyze the risk.
3. Evaluate the risk.
4. Treat the risk.
5. Monitor and control the risk.
6. Let’s break these down:
7. 1. Identify the risk. The first phase of the risk management process is to
identify and define potential project risks with your team. After all, you can
only manage risks if you know what they are.
8. 2. Analyze the risk. After identifying the risks, determine their
likelihood and potential impact to your project. Serious risks with a high
probability of occurring pose the greatest threat.
 9. 3. Evaluate the risk. Next, use the results of your risk analysis to
determine which risks to prioritize.
10. 4. Treat the risk. During this phase, make a plan for how to treat and
manage each risk. You might choose to ignore minor risks, but serious risks
need detailed mitigation plans.
11. 5. Monitor and control the risk. Finally, assign team members to
monitor, track, and mitigate risks if the need arises.
12. In the upcoming videos and activities, you will learn about each of these
phases in more detail and use tools and templates to navigate the risk
management process.

Uncover opportunities using risk

management
When you think about risks, it is likely that you automatically think of potential
negative events. But when identifying risks, it is important to also consider the good
things that could happen, which are considered opportunities. An opportunity is
a potential positive outcome of a risk. It is important to recognize opportunities and to
capitalize on them as they appear so you can reach your project goals faster, more
cheaply, or with less effort. Some examples of opportunities include:

 Completing a milestone ahead of schedule

 Discounted materials
 Availability of additional resources (people, investments, equipment)
How to recognize an opportunity

An opportunity is a potential positive outcome that may bring additional value to

a project. You can use the same tools and techniques that you use in risk
management—identify, analyze, evaluate, treat, and control—to add potential
opportunities to your risk management plan. You need to know what to do if things
go wrong, but you should also make plans to seize opportunities. By using
techniques such as brainstorming and drawing on project history or prior experience,
you can identify potential opportunities and outline how you will take advantage of
them if they occur.

As a project manager, you should always be on the lookout for potential

opportunities when developing your risk management plan. Review the following
article for further information on using risk management strategies to identify and
take advantage of opportunities that may occur during your projects: Effective
strategies for exploiting opportunities

How to create a fishbone diagram

Previously, you learned about some tools to help you identify risks. In this reading,
we will dive deeper into how to create and use one of those tools: the fishbone
diagram.
Fishbone diagrams—also known as Ishikawa diagrams or cause-and-effect
diagrams—were developed by Japanese organizational theorist Kaoru Ishikawa in
the 1960s to measure quality control processes in the shipbuilding industry.
Fishbone diagrams are a visual way to look at cause and effect. They are called
fishbone diagrams because they have a similar shape to a fish skeleton.

Fishbone diagrams help the team to brainstorm potential causes of a problem or risk
and sort them into useful categories. These categories show the areas that you
should focus on to mitigate that risk. Fishbone diagrams are also very helpful in
finding the root cause of a problem. A root cause is the initial cause of a situation
that introduces a problem or risk. The purpose of using fishbone diagrams in risk
management is to identify the root cause of a potential problem for a project or
program.

Case study: Using a fishbone diagram to identify causes of risks

Miguel is a project manager at Office Supply Inc. He is in the planning phase for an
upcoming summer promotion project, which will include free delivery of products.
Unfortunately, in the past, the company has had trouble delivering its products to
downtown office buildings on time. Miguel builds a fishbone diagram to see if he can
identify some of the possible causes of this problem in order to mitigate this risk on
the current project. He follows these steps to build his diagram:

Step 1) Define the problem

First, Miguel clearly defines what the problem entails. In this case, Miguel states the
problem as “trouble delivering products to downtown office buildings on time.” Then
he adds the problem to the head of his fishbone diagram.

Step 2) Identify the categories

In this step, Miguel thinks of the types of categories that could be causing the
problem. These categories will change depending on the type of problem or industry.
Some common examples of categories include “people,” “technology,” “materials,”
“transportation,” “money,” “time,” “environment,” and “procedures.”
For the delivery problem at Office Supply Inc., Miguel lists the categories “people,”
“technology,” “materials,” “transportation,” and “environment” at the top and bottom
of the lists to the left of the problem in his fishbone diagram.

Step 3) Brainstorm the causes

Now that Miguel has identified possible categories that relate to the risk, he
brainstorms areas of concern within each category. He reaches out to his team for
help in identifying these possible causes. Then, Miguel fills in the lists with some of
the causes that could be related to each category.

Pro tip: Brainstorming should be a judgment-free zone. Encourage the flow of

information related to the categories and try not to rule things out. When dealing with
human factors, steer clear of naming individuals; instead, focus solely on behaviors.
Step 4) Analyze the causes

Now that Miguel has discovered several possible causes for the delivery problems to
downtown offices, he analyzes those causes. He needs to identify the root cause of
the existing problem so he can figure out how to mitigate it for the current project.

Note that one cause of a problem isn’t necessarily the root cause. For example,
Miguel has identified that a lack of forklifts is a problem. Having more forklifts would
allow the company to get the products on and off of the trucks more quickly.
However, after calculating the amount of time it takes to unload and load the
products, Miguel realizes that adding more forklifts won’t significantly reduce the
amount of time to get the products from the warehouse to downtown offices.
Therefore, this is one cause of the problem, but it is not the root cause.

On the other hand, Miguel has noticed that there is no set schedule for sending out
deliveries. Since the problem only exists in the city instead of in the suburban areas,
he realizes that traffic must also be playing a role in the late deliveries. Therefore,
changing the schedule so that the delivery times are before the city’s rush hour may
help fix the problem.
Pro tip: Fishbone diagrams are tools that can be useful during any phase of the
project. When you use them in risk planning, you are trying to identify the possible
causes of a problem that may or may not occur. When you use them in the execution
phase, you are trying to find the root cause of an issue that has already occurred.

Key takeaway

Identifying risks and measuring their potential impact on a project can be a complex
task. You can help visualize these issues by creating fishbone diagrams. To recap,
the steps to create a fishbone diagram are:

 Define the problem

 Identify the categories
 Brainstorm the causes
 Analyze the causes
Once you’ve developed a fishbone diagram to help find a problem’s root cause and
measure its potential impact on the project, you can then move on to determining
how to mitigate the risk.

Managing single point of failure risks

Previously, you learned how to use various tools and strategies to identify and
manage risks as you plan your project. In this reading, we will discuss how to
manage risks with the highest potential of impacting your project.

Single point of failure risks

Once you have identified your risks and ranked them, give special attention to the
risks that could have a catastrophic effect on your team’s ability to complete the
project. A single point of failure is a risk that, if it were to materialize, could
cause a significant amount of disruption to your project and could even shut it down.
You should plan for these risks early on in the project.

For example, a lot of projects use subject matter experts (SMEs)—team

members with a deep understanding of a particular job, process, department,
function, technology, machine, material, or type of equipment. SMEs are involved to
advise you throughout the project life cycle. Having only one SME familiar with a
critical system on your team is an example of a single point of failure risk. This SME
will only offer one perspective, and if they are the only person advising on the
system, there is no one to offer another perspective.

Case study: Using mitigation strategies to

manage single point of failure risks
Let’s imagine that Office Green uses plant seeds from a company in South America
for the majority of its offerings. The plants produced by these seeds are in high
demand by Office Green’s customers. However, the local government on the
suppliers’ end just announced that it would be imposing a new tax on the exporting
of seeds and produce. As a result, the price of the seeds suddenly becomes so high
that it is difficult for the company to supply the seeds to Office Green, putting the
project at risk of not having these seeds available to purchase.

Let’s look at how these four risk mitigation strategies can be used for managing
single point of failure risks in the Office Green example:

Avoid
This strategy seeks to sidestep—or avoid—the situation as a whole. In the Office
Green example, the team could avoid this risk entirely by considering using another
seed that is widely available in several locations.

Minimize
Mitigating a risk involves trying to minimize the catastrophic effects that it could have
on the project. The key to minimizing risk starts with realizing that the risk exists.
That is why you will usually hear mitigation strategies referred to as workarounds.
What if the Office Green team decided to use both the original South American
supplier and another supplier from a neighboring country? More than likely, the
change in taxation and regulation wouldn’t affect both companies, and this would
provide Office Green some flexibility without having to completely eliminate their
preferred supplier.

Transfer
The strategy of transferring shifts the responsibility of handling the risk to someone
else. The Office Green team could find a supplier in North America that uses the
seeds from several other South American countries and purchase the seeds from
them instead. This transfers the ownership of South American regulatory risks and
costs to that supplier.

Accept
Lastly, you can accept the risk as the normal cost of doing business. Active
acceptance of risk usually means setting aside extra funds to pay your way out
of trouble. Passive acceptance of risk is the “do nothing” approach. While
passive acceptance may be reasonable for smaller risks, it is not recommended for
most single point of failure risks. It is also important to be proactive and mitigate risks
ahead of time whenever possible, as this may save you from having to accept risks.
In the Office Green scenario, the project manager could schedule a meeting with
project stakeholders to discuss the increase in South American taxes and how it
could impact the project cost. Then, they might decide to actively accept the risk by
setting aside additional funds to source the seeds from another supplier, if
necessary, or to passively accept the risk of not receiving the seeds at all this
season.

Key takeaway
If you have strategies you can rely on for avoiding, minimizing, transferring, and
accepting project risks—including single point of failure risks—you will be in a better
position to protect your project from the possible impact of these risks.

Visualizing dependency relationships

In the video, you learned to identify several types of risks. In this reading, we will be
discussing the different types of dependencies that can play a critical role in our
project’s success.

Types of dependencies
Dependencies are a relationship between two project tasks in which the
completion or the initiation of one is reliant on the completion or initiation of the other.
Let’s explore four common types of dependencies:

Finish to Start (FS)

In this type of relationship between two tasks, Task A must be completed before
Task B can start. This is the most common dependency in project management. It
follows the natural progression from one task to another.
Example: Imagine you are getting ready to have some friends over for dinner. You
can’t start putting on your shoes (Task B) until you’ve finished putting on your socks
(Task A).

Task A: Finish putting on your socks. →Task B: Start putting on your shoes.

Finish to Finish (FF)

In this model, Task A must finish before Task B can finish. (This type of dependency
is not common.)

Example: Earlier in the day, you baked a cake. You can’t finish decorating the
cake (Task B) until you finish making the icing (Task A).

Task A: Finish making the icing. →Task B: Finish decorating the cake.

Start to Start (SS)

In this model, Task A can’t begin until Task B begins. This means Tasks A and B
start at the same time and run in parallel.
Example: For dinner, you are making pasta. You can’t start cooking the pasta
(Task B) until the water starts boiling (Task A).

Task A: Start boiling the water. →Task B: Start cooking the pasta.

Start to Finish (SF)

In this model, Task A must begin before Task B can be completed.

Example: One of your friends calls to tell you he’ll be late. He can’t finish his shift
(Task B) and leave work until his coworker arrives to start her shift (Task A).

Task A: Your friend’s coworker starts her shift. →Task B: Your friend finishes his
shift.

Dependency graphs
As a project manager, you will use these dependencies to visually represent the flow
of work during your project. Let’s examine how to use a dependency graph with an
everyday example.

Imagine you are making peanut butter and jelly sandwiches for the kids who will be
coming to your dinner, and you want to use dependency relationships to map your
activiti
es on a graph.

Let’s break each task down to create your dependency graph:

1. When you start your sandwiches, you need to gather your materials: bread,
knife, jelly, peanut butter, plates, and napkins (Task A).
2. At this point, you can put jelly on one piece of bread (Task B) and peanut butter
on the other piece of bread (Task C).
3. Now you need to put both pieces of bread together (Task D).
4. Finally, you can put the sandwich on a plate and serve it (Task E).
Key takeaways

There are four types of task dependencies:

 Finish to Start
 Finish to Finish
 Start to Start
 Start to Finish
A dependency graph can help you visualize these different dependencies and the
flow of the work that needs to be done on a project. They can also help you identify
any risk associated with them.

Tips for effective communication

In the previous videos, you learned that communication is key to any successful
project. As a project manager, you are central to that communication, which is an
ongoing process throughout the life cycle of a project. A good project manager must
be effective in communicating with all stakeholders and team members through
various mediums.

As the project manager, it is important to develop a communication plan for the

duration of your project. Good communication helps your project run smoothly, leads
to better outcomes, and supports a healthy team culture. You can use these four tips
to foster effective communication within your team:
Recognize and understand individual differences

You can encourage open, inclusive communication by:

 Not making assumptions about your audience’s backgrounds, identities, or

experiences.
 Being mindful of your own biases.
 Using appropriate, professional, and neutral language.
 Including, respecting, and being curious about diverse points of view.
As the project manager, you will undoubtedly work with a diverse group of team
members and stakeholders on each project. You will need to understand each team
member’s background, experiences, perspectives, and biases—as well as your own
—to communicate effectively.

Brainstorm and craft the appropriate message

Communicate the right message by thinking about your intended audience. With
whom are you communicating? In your communications, always be clear about your
reasons for reaching out:

 What channels can your audience use to contact you or the team?
 Are you conveying information?
 Are you asking for input?
 Are you clarifying an issue?
 Are you resolving a problem?
Some team members may require detailed information, while others may only need
an overview of the situation. No matter your audience, you should be sure to identify
the purpose of the message, state the information or request clearly and concisely,
and stay on topic.

Deliver your message

As you craft your message, think about which methods are available and appropriate
for communicating with various members of your team, whether that is in person, in
a video conference, over the phone, via email, or in a meeting. Choosing the right
method is especially important if you have team members or stakeholders in different
regions and time zones. Also, be sure to:

 Avoid including any sensitive or potentially private information.

 Assume everyone at the company will receive the communication.

Obtain feedback and incorporate that feedback going forward

Communication doesn’t end when you deliver your message, so be sure to follow up
with your audience by:

 Checking to make sure your message was clear.

 Asking them for feedback.
  Encouraging open communication.
 Responding to questions quickly.
In this final step, you will obtain feedback from your audience to ensure that your
message was received as you intended.

Key takeaways

You now have the steps to communicate effectively as a project manager! You have
learned how to foster open, inclusive communication by recognizing and
understanding individual differences among your team members. You know how to
craft and deliver an appropriate message and the importance of obtaining and
addressing feedback. Most importantly, make sure your communications are clear,
honest, relevant, and frequent. Following these guidelines will set you up for
successful communication throughout your projects.

Best practices for building a

communication plan
In the previous video, you learned how to develop a basic communication plan. You
also learned how to document who needs to be involved in project communication,
how to communicate with them, why you are communicating, and how often that
communication should occur.

In this reading, we will reinforce the top tips to keep in mind when creating a
communication plan to ensure that it is an effective tool for you and your project
team.

Tips for creating your communication plan

Identify, identify, identify

Before you begin creating the plan, answer these questions to ensure that you have
all of the relevant information:

 Project stakeholders: Have you created a RACI chart or stakeholder map

of all your stakeholders? Who is your audience? Who will need to be informed at
different points during the project life cycle?
 Communication frequency and method: When and how often should
you check in with your stakeholders? What methods of communication do they
prefer? How much detail does each stakeholder need?
  Goals: What is the goal of your communication? Do you need a response? Are
you trying to encourage engagement or simply providing an update?
 Barriers: Are there any time zone limitations? Language barriers? Do some
stakeholders require time to reply or respond (e.g., an executive)? Are there any
privacy or internet access issues?

Document and develop

Choose a tool or template to document all of your communication needs, and begin
developing your plan. Once you understand the basic elements (stakeholders,
communication methods, goals, and barriers), it’s time to work out the details! Here
are some tips:

 Add a column for notes. Project management is not one-size-fits-all, and

there are a lot of pieces that need to be tracked. For instance, if you are
reaching out to a senior leader or executive, do you need to copy anyone else
on the email? If a stakeholder is out of office or unavailable on certain dates, do
you have a backup plan? Add notes to set reminders and any additional relevant
details.
 Use formatting to highlight any key details in the plan. Is there
a launch announcement or an urgent decision needed for the project to move
forward? Highlight these pivotal elements in a different font color or size to
stress their importance.
 Ensure that the team can access your document. Share the plan
with your team. Allowing your team to review the document ensures that they
are aware of the plan and gives them a chance to offer feedback. Sharing the
document also serves as an extra check to make sure you aren’t missing any
crucial pieces.
 Test your plan. If you are sending a team-wide email or link, send a test
email to yourself or a colleague. If you are planning a virtual presentation, be
sure to test the visual, audio, and other technical aspects in advance. That way,
you can minimize any technical problems.

Check in

Once your communication plan is out in the world, check in with your audience about
the effectiveness of your plan. Scheduling routine check-ins will help you understand
what is and is not working so you can improve your plan. You want to ensure that
your communication plan gets the right information to the right stakeholders at the
right time. Additionally, make sure to double check that key stakeholders have not
changed over time.

Evaluate where you may be over- or under-sharing information or missing

stakeholders. You can do this through:

 Anonymous survey forms

 Polls or open feedback sessions during team meetings
 One-on-one conversations and check-ins with key stakeholders
 Keep these tips in mind as you build your next communication plan and you will be
set for communication success!

Scenario

Review the scenario below. Then complete the step-by-step instructions.

As part of the Plant Pals Operations and Training plan, your team will need to organize and host
trainings for employees. You want to make sure that a majority of employees are properly trained
to use the new software and equipment before sending the first round of Plant Pals test batches
to customers. Because your employees will need to learn several different processes, training
sessions will take place over a period of ten days. Your team has just over three weeks to
prepare before the sessions begin.

As the Plant Pals project manager, you will work with your team to plan and execute the
preparations for the training sessions. One of your tasks is to build a communication plan, which
should include:

 What you need to communicate (the goal of the communication)

 Who needs to communicate
 When information-sharing needs to happen
 Why and how to communicate with everyone involved

As you begin planning the training sessions, you identify the key teams and stakeholders who
will need to communicate about the event:

Core Team: Your core project team will lead the planning and task coordination. These tasks
include communicating with stakeholders, preparing the schedule, reserving space and
equipment, training the employees, and more.

The team members who are directly involved in organizing the trainings include:

 An Administrative Coordinator who is responsible for scheduling and communicating with

other Office Green teams (e.g., Facilities)
 A Human Resources Specialist who manages hiring and develops training protocols (with the
help of the Training Manager)
 A Training Manager who reports to the HR Specialist, runs the training program on the
established protocols, and refines training processes

The other members of your core project team (the Financial Analyst, Fulfillment Director,
Quality Assurance Tester, and Inventory Manager) will attend team meetings and are
available to pitch in if you need them.
Additional stakeholders with whom your team needs to communicate include:

Software and Equipment Vendor: Members of your team will need to meet with the vendor to
learn about the software and equipment so they can create an effective training plan for
employees. The team members responsible for creating and running the training program should
organize and attend this meeting. Your team should allow adequate time to learn about new
processes and ask follow-up questions. This meeting must take place before the end of the
vendor’s SoW.

Human Resources: The Human Resources department can help your team as they develop the
training plan. They will also provide support during the training sessions. Your team will want to
communicate with them regularly (but not daily) and on an as-needed basis. The HR Specialist
on your team is the point of contact for the rest of HR.

Facilities: Facilities will reserve and manage the spaces and equipment needed for the training
sessions. They will need to review the schedule and understand your needs for each session
ahead of time. A member of your team needs to keep them updated and informed of any
changes to requirements.

Print Shop: The vendor who will install the software and equipment is also creating training
manuals for your team. One of your team members will need to coordinate with the print shop to
make copies of the manuals for each training.

Office Green employees: You will also need to coordinate with the employees who need to be
trained! A member of your team should tell them where they should arrive, where they should go,
what they need to bring, and communicate other necessary details. The same team member will
also need to conduct the sessions and solicit feedback from employees through a post-training
survey.

Your Office Green Manager: Your manager wants to be kept informed of your team’s progress
but doesn't need to know every detail. They can also be a helpful resource for the planning
process, if necessary. You already communicate with them regularly, so you can update them at
one of your weekly meetings.

Senior Leadership: Your manager asks you to let senior leadership know about the outcome of
the trainings (and to copy them when you do so). The Director of Operations and the Director of
Product (the project sponsor) want to be kept informed but don’t have much time for meetings.

Assessment of Exemplar
Compare the exemplar to your completed deliverable. Review your work using each
of the criteria in the exemplar. What did you do well? Where can you improve? Use
your answers to these questions to guide you as you continue to progress through
the course.

Note: Your communication plan may differ from this exemplar. That’s because
communication types, frequency, and delivery methods can change depending on
the situation, schedules, personal preference, etc. What should always be consistent
is your attention to your stakeholders’ roles, needs, and communication styles.
Learning about your team is crucial to creating an effective communication plan.

Let’s examine how the different parts of the scenario fit into the communication plan

Planning Meetings with the Core Team: Since the core team is directly
involved in planning and executing the trainings, you want to meet with them daily
and in person. The goal is to check in with each member about their progress,
troubleshoot any issues, and make sure everyone stays on track. Your manager can
also be a planning resource, so you make sure to schedule the team meetings later
in the day than your weekly meeting with your manager. You make a note to check
in with your manager with questions and link to the meeting agendas and notes.

Software & Equipment Vendor: Since your HR Specialist and Training

Manager will plan and run the trainings, they will both need to meet with the vendor.
They allow a half-day for this meeting, which will give them time to go over the
training manual and ask follow-up questions. You link to the vendor’s Statement of
Work and make a note to remind the HR Specialist and Training Manager to check in
with relevant team members after the meeting.

Human Resources: Your HR Specialist owns communications with the HR

department, and checks in with them weekly and in-person for project planning
assistance. Since HR will also provide support during trainings, want to send them
reminder emails as well. You note that more communications will likely be necessary
on an as-needed basis.

Planning Check-ins with Facilities: Facilities needs to know the training

schedule and requirements, but does not need daily updates. The Administrative
Coordinator checks in with them weekly over the phone (but could also meet with
them in person). You link to the forms you need to request rooms and equipment for
the training sessions.

Planning Check-ins with the Print Shop: The Print Shop needs to know
the details of the event, but you may not need to check in with them every day. The
initial planning meeting is the most important, after which weekly check-ins (over the
phone or in person) will suffice. Your Administrative Coordinator takes care of these
communications. You link to the printing request forms you will use to order the
training manuals.

Informational Updates for Office Green employees: You want to

communicate with the trainees consistently so they remember when to arrive, where
to go, and what to bring. Your Training Manager sends a group email from an official
Office Green account each week and sends a reminder the day before each group’s
training session. That’s a lot of messages to keep track of, so you make a note for
the Training Manager to automate the reminder emails.

Training for Office Green employees: The Training Manager will also run
the in-person trainings, which are scheduled each day for ten days, beginning at
10:00 AM. You make sure to link to the training schedule, so that it’s easily
accessible.

Survey for Office Green employees: Once the training sessions are
complete, the Training Manager will send the trainees a survey via email (with two
follow-up reminders). You make a note to discuss the results at the next team
meeting.

Status Update with your manager: Since your manager wants to be kept
informed of your progress, you decide to update them at your weekly, in-person
meeting. You make a note to come prepared with a brief update and specific
questions for your manager.

Status Update with Senior Leaders: Since the Director of Operations and
the Director of Product want to know how the trainings went, you send them an email
update (and CC your manager) once they have concluded. You link to the resources
you’ll need to create your report.

Scenario

Review the scenario below. Then complete the step-by-step instructions.

As the project manager for Office Green’s Plant Pals Operations and Training plan launch, you
want to keep all your planning documents organized in a central location. That way, you can
easily share information and track the status of the project’s many moving pieces. Your project
folders and labels should be clearly organized to provide visibility, continuity, and accountability.

A project plan is not only useful for streamlining team communications, it can also help you with
retrospectives and planning for future projects.

Assessment of Exemplar
Compare the exemplar to your completed project plan. Review your work using each
of the criteria in the exemplar. What did you do well? Where can you improve? Use
your answers to these questions to guide you as you continue to progress through
the course.

Project details in the Dashboard tab: The Dashboard includes a project

title, project description, project owner(s), and status. These details help you, your
team, and your stakeholders keep track of the project. The Key Docs may
optionally include hyperlinks to each project resource. Organizing documents in this
way can make it easier to search for important information. It also helps your team
keep track of project deadlines, tasks, and key project goals.

Document description: The Dashboard includes brief, but specific,

descriptions of each document. These descriptions provide context and help team
members navigate the project plan.

Document tabs: The project plan includes tabs for all the main project
documents. These tabs give your team easy access to important project files.

(Optional) Shared folder: The Dashboard tab may link to a shareable folder
that contains all the project documents. This folder acts as a central resource for
your team and important stakeholders.

Accessibility: Team members and stakeholders can access linked documents as

Viewers or Commenters.

Remember, your project plan is a living document. You will update it regularly
through the course of a project. You will add more documents and tabs as needed.
You will also review your project plan regularly to make sure it is well-structured and
organized for your team.

Congratulations on completing your project plan. You’ve demonstrated critical project

management skills by creating effective project documents and organizing them in a
centralized plan. Your work in this course will help you demonstrate your new skills
to potential employers.
OKRs for personal and professional
development
As you prepare for a new career in project management, it’s also a great time to set
some personal OKRs (objectives and key results) to track your progress towards
achieving your own personal goals.

OKR Review
OKR stands for objectives and key results. They combine a goal and a metric to
determine a measurable outcome.

Objective Key Results

Defines what needs to be achieved The measurable outcomes that objectively define when

Describes a desired outcome

Benefits of setting personal OKRs

Many of us set New Year’s resolutions each year, only to find that by February, we
are not much closer to accomplishing those goals than we were on January 1st.
Setting personal OKRs is a strategy that can help you define clear, measurable
goals for yourself and create an action plan for achieving them. Just like with
company- or project-level OKRs, setting personal OKRs can turn vague and
ambiguous goals into quantifiable and measurable metrics. Whether it’s a personal
fitness goal, a desire to spend more time with your family, or a goal to complete this
certificate program, setting personal OKRs for these goals can make it easier to
track their progress and determine when you’ve achieved them.

Write your own OKRs

Follow the steps outlined below to help you craft your own personal OKRs. You can
use this OKR template, or if you don’t have a Google account, you can download the
template directly from the attachment below.

Template_ Personal OKRsDOCX File

Download file
Define your “why”

Before you start on your objectives—your “what”—consider your “why.” This is your
mission. Why are you setting goals? For example, if you have a goal to complete this
course, why is that important to you? Write that down and use it to inspire and focus
your objectives.

Determine your “what”

Brainstorm possible objectives

Now that you have a clear sense of why these goals are important to you, you can
start drafting your objectives. Think about the things you most want or need to
accomplish in the next 30–90 days.

To help you generate a list of possible objectives, consider the following:

 What are the most important things I need to get done?

 What do I need to take action on?
 What do I need to start doing or changing?
 What do I want to improve or work on in my life or career?
Based on your responses to these questions, brainstorm a list of 3–5 possible
objectives that relate to your mission.

Refine your objectives

Review your list of possible objectives and revise them to make sure they meet the
following criteria:

 Aspirational: Is the objective inspiring and motivational? Does it ask you to

challenge yourself and accomplish something you haven’t before?
 Aligned with organizational goals: In this case, YOU are the
organization, so your objectives should align with the mission you defined
earlier. Does the objective help you in achieving your overall goals?
 Action-oriented: Does the objective indicate making a change or taking
action?
 Concrete: Is the objective clearly stated? Would someone else understand
what the objective is hoping to accomplish?
 Significant: Will achieving the objective make a significant impact toward your
personal or professional development?
Mission: Be an ideal candidate for promotion or hire.
Objective: Deliver engaging presentations
Objective: Increase my work pace
Objective: Learn new skills and practices beyond the job description
Develop the “how”

Next, it’s time to add key results, which describe how you’ll achieve your objective.
They also define what it means to successfully meet your objective.

Draft and refine your key results

Working with one objective at a time, brainstorm a list of 2–5 key results. To help you
generate your list, consider the following:

 How would you define success for this objective?

 What metrics would prove that you’ve successfully achieved the objective?
Once you have a few key results, review and revise them so they meet the following
criteria:

 Results-oriented—not a task: Do the key results state the overall outcome,

rather than individual steps to get there?
 Measurable and verifiable: Do the key results include specific, objective
metrics?
 Specific and time-bound: Have you clearly defined what needs to happen
and by when?
 Aggressive yet realistic: Do the stated results stretch you but still account
for potential challenges or unexpected events that could arise?
Key Results:
Attend a public speaking workshop by the end of the 1st quarter.
Watch at least one TEDTalk per week.
Deliver one presentation every two months and collect feedback.
Key Results:
Block out 90 minutes each day to work on top-priority tasks.
Delegate items to other team members to focus my time on higher priority tasks.
Take on one additional project this quarter while maintaining the same number of work hours.
Key Results:
Earn one more relevant additional certifications before the end of the 1st quarter.
Attend three networking events and schedule two coffee or lunch meetings per month with poten
Improve industry knowledge by attending 1 new workshop, conference, or presentation each mon
Creating OKRs can be an empowering way to take ownership of your goals and find
meaning in your personal and professional life. Start by defining your mission, or the
overall reason for creating goals and why they’re important. Then determine your
objectives, or what you want to achieve. Then, develop key results that will make it
clear how and when you’ve made progress and achieved success.

For more on writing and refining your OKRs, check out these resources:

 Using OKRs for Professional Development

 John Doerr’s Ted Talk: Why the secret to success is setting the right goals
 OKRs and SMART goals: What's the difference?