LESSON 6

CLOSE THE PROJECT / PHASE

LESSON 5
SUPPORT PROJECT TEAM PERFORMANCE

LESSON 3 LESSON 4
PLAN THE PROJECT LEAD THE PROJECT

LESSON 2
START THE PROJECT

LESSON 1
BUSINESS ENVIRONMENT 1
 C
O
N
C
E
LESSON 1 P
T
S
BUSINESS
ENVIRONMENT &
• Foundation B
• Strategic Alignment U
S
• Project Benefits and I
Value N
E
• Organizational Culture S
and Change S
Management
A
• Project Governance R
• Project Compliance E Copyright 2023© Project Management Institute, Inc. All rights reserved.
Version 3.0 | 2023 Release A This material is being provided as part of a PMI® course.

S
Foundation
LESSON 1: TOPIC A

3
Topics Covered 4

• Foundational project
ORGANIZATIONAL
management concepts PROJECT
MANAGEMENT
• Business Environment PROJECT PROJECT LIFE
• Project CHALLENGES CYCLE
• Project Management
• Organizational Project
Management

• Project management principles

• The Agile mindset
• Tailoring – hybrid approaches,
processes and practices in REQUIREMENTS TO BE MET
project management
The Evolution ca. 1969 – PMI founded
of Project
Management The application of knowledge,
skills, tools and techniques to
project activities to meet the project
requirements

2022 - Toward a systems view

“Projects do not simply produce outputs,

but more importantly, enable those
outputs to drive outcomes that ultimately
deliver value to the organization and its
stakeholders.”

- PMBOK® Guide - Seventh edition

Copyright 2023
© Project Management Institute, Inc. All rights reserved.
5
This material is being provided as part of a PMI® course.
Project
A project:
Successful project
management • Creates a unique product, service or result
includes • Is time-limited
understanding
Adapt & Apply
project management
concepts and being
able to adapt and
apply them to the
individual project.

Understand Adapt Apply

Project Management Concepts

Copyright 2023© Project Management Institute, Inc. All rights reserved. 6

This material is being provided as part of a PMI® course.
Applying and adapting project
management concepts to create a
unique product or service Output

REQUIREMENTS
PROJECT MANAGEMENT TEAM

7
Project
A project:

Successful project • Creates a unique product, service or result

management
includes
• Is time-limited
understanding • Drives change
project • Enables value creation for a business or
management organization
concepts and being
able to adapt and Adapt & Apply
apply them to the
individual project.

Copyright 2023© Project Management Institute, Inc. All rights reserved. 8

This material is being provided as part of a PMI® course.
Project Management Concepts
 Enable value creation by leveraging on
opportunities or minimizing threats
Outcome

Applying and adapting project

management concepts to create a
unique product or service

Output

9
Projects Drive Change and Enables Value Creation
Where the company wants to be

Sales

ere Quality
th
ets Expertise
g
any
p
m
co
e
th Cost
w
Ho E Time
A NG
C H
Where the company is Effort
E
IV
DR
Outcome

10
 BUSINESS
ENVIRONMENT
STABLE
TURBULENT
COMPETITOR REGULATOR

PROVIDER PRODUCT / SERVICE Sales

CONSUMER
Quality
Adapt TECHNOLOGY
Expertise

ns
FIXED

io
at
Re

ct
qu

pe
ire
me Cost

Ex
nts
EVOLVING
INDUSTRIES Time

Effort

Fastest growing
company brand
with a 275% boost
in brand value
PEOPLE AND PROCESS prior to earlier
year
 BUSINESS
ENVIRONMENT
STABLE

COMPETITOR REGULATOR
TURBULENT
Outcome
PROVIDER
PRODUCT / SERVICE CONSUMER Sales

T
Quality

EN
N

TECHNOLOGY
TIO

FIXED Expertise

NM
ns
io
TA

Re

at

IG
qu

ct
ire Cost

pe
AP

me EVOLVING

AL
Ex
nts
AD

Time

Effort

Output

12
 Sales
Quality
Expertise

Cost
RIGHT Time
FOCUS Effort
 BUSINESS
ENVIRONMENT
STABLE

COMPETITOR REGULATOR
N
TURBULENT Sales
TIO

PROVIDER Quality
PRODUCT / SERVICE CONSUMER
TA

T
Expertise

EN
AP

TECHNOLOGY

NM
AD

FIXED Cost

IG
ns
io
Re Time

AL
at
qu

ct
ire

pe
me EVOLVING Effort

Ex
nts

Sales
Quality
Expertise
ORGANIZATIONAL INFLUENCE
Cost
RIGHT Time
FOCUS Effort FUNCTIONAL ORGANIZATIONAL
PROJECTIZED
STRUCTURE

MATRIX

AUTHORIZATION 14
Project Example:
Shawpe Lifestyle Centre
(SLC)
A project:
• Creates a unique product, service or
result
• Develop and build a “lifestyle center” in the historic
• Is time-limited
Oasestown district
• Drives change • Design and occupancy of retail and community spaces
• Enables value creation for a business or • Use the new commercial for the community (C4C)
organization business model
• Funding partner: Oasestown Municipality
• Development partner: Oases Architects
• US $7 million initial capital budget
• 36-month timeline

Copyright 2022© Project Management Institute, Inc. All rights reserved. 15

This material is being provided as part of a PMI® course.
 OUTPUT OUTCOME

Ø Increase revenue
Lifestyle Center
Ø Achieve first mover
36 month timeline advantage

Ø Acquire expertise in
developing Artificial
Intelligence required to link
commercial and community
USD 7 Million center

Community Retail
Space Space

Oasestown district
 ENABLE UNIQUE FULFILL UNIQUE
OUTPUTS TO DRIVE REQUIREMENTS
OUTCOMES
DEVELOP UNIQUE
OUTPUTS

FACE UNIQUE CHALLENGES

Authority to decide on Coordination with Compatibility with

resource availability other projects Business Environment
Organizational
Structures Organizational structure and governance
affects/determines:

• How organizational groups and individuals interrelate?

• Functional
• How much authority the project manager has?
• Matrix • What resources will be available?
• Project- • How the project will be conducted?
oriented
Auth
• Composite or
reso ity to det
u e
and rce avail rmine
proje a
Establishes ct ap bility
proa
ch
• Roles
• Responsibilities
• Reporting relationships
• Required Skills Copyright 2023
© Project Management Institute, Inc. All rights reserved.
18
This material is being provided as part of a PMI® course.
 Functional
Functional
DELAY
Team member Functional
loyalty department

Team member
Functional manager
reporting

Project manager
Seldom identified
role
Engineer
Team member role Part-time on project
QC

Control of project Nonexistent

manager over team (functional manager
members controls)

19
 Projectized

Project-oriented

Team member
Project
loyalty

Team member
Project manager
reporting

Project manager Full-time and

role responsible Engineer

Full-time on project Production

Team member role
(preferred)
QC
Control of project
manager over team High
members

20
 Balanced Matrix

Matrix

Team member loyalty Conflicted loyalty

Both functional manager

Team member reporting
and project manager

Coordinator to full
Project manager role
project manager

Team member role Part-time on project

Control of project Medium – shared with

manager over team functional
members manager/sponsor Conflicting loyalty

21
Strong and Weak Matrix

• Expeditor role of PM
22
• Coordinator role of PM
Composite Organization

Project to
improve
procurement
process in
procurement
department

Project to design, develop, deliver and maintain machinery equipment

23
Relative Authority in Organizational Structures

Functional Matrix Project-oriented

Team member Functional

Conflicted loyalty Project
loyalty department

Both functional
Team member
Functional manager manager and project Project manager
reporting
manager

Project manager Coordinator to full Full-time and

Seldom identified
role project manager responsible

Full-time on project
Team member role Part-time on project Part-time on project
(preferred)

Control of project Nonexistent Medium – shared with

manager over team (functional manager functional High
members controls) manager/sponsor

Copyright 2023© Project Management Institute, Inc. All rights reserved. 24

This material is being provided as part of a PMI® course.
 ENABLE UNIQUE FULFILL UNIQUE
OUTPUTS TO DRIVE REQUIREMENTS
OUTCOMES
DEVELOP UNIQUE
OUTPUTS

FACE UNIQUE CHALLENGES

Authority to decide on Coordination with Compatibility with

resource availability other projects Business Environment
 Oasestown district
Lifestyle Center

OUTPUT OUTCOME

Ø Increase revenue

Ø Achieve first mover

advantage
36 month timeline
Ø Acquire expertise in
TO ACHIEVE developing Artificial
Intelligence required to link
commercial and community
USD 7 Million center

Cybersecurity Artificial Intelligence Construction Retail Coordination with

Project Project Project Project other projects
Example: Example:
Construct a Develop
condominium security patch

27
Example: Example:
Develop a Community Upgrade IT
Center Support

28
 PROGRAM
Quality
MANAGEMENT
Quality Quality
Expertise
Expertise Expertise
Cost
Cost Cost
RIGHT Time
Effort RIGHT Time RIGHT Time
FOCUS Effort Effort
FOCUS FOCUS

PROJECT PROJECT PROJECT

MANAGEMENT
Example: Example:
Property Residential Division Cybersecurity division seeking to
seeking to achieve sales target upload IT architecture into the cloud

30
12/5/23
Coordination of interrelated projects by the PMO

Project B Project A

Project Management Program Management

32
Project
Management PMOs can be:
Office (PMO)*
Supportive
• Develop best practices,
methodologies, standards and
templates
• Coach, mentor, train, guide
Many large and project managers
established project-
oriented organizations Controlling
have a PMO, but PMOs
are not a requirement for • Monitor compliance with project
project management management standards,
practice. policies, procedures and
templates via project audits

Directive
• Manage shared resources
• Coordinate communication
across projects
Copyright 2023
© Project Management Institute, Inc. All rights reserved.
33
This material is being provided as part of a PMI® course.
 Organizational project management (OPM) – strategy
execution framework that coordinates project, program,
portfolio and operations management, and which
OPM: enables organizations to deliver on strategy
A System for
Value Delivery External Environment

Internal Environment

OPM includes System for Value Delivery

decisions for Portfolio A Portfolio B Program

investment and
B.1

Program Program Program

approval of efforts B.1 Projects

A.1 A.2

at the portfolio level Projects Projects

Projects Projects

Operations

Copyright 2023© Project Management Institute, Inc. All rights reserved. 34

This material is being provided as part of a PMI® course.
12/5/23

Programs

TNB
Portfolios
35
 Organizational Project
Management
Energy efficiency solutions,
Electric vehicle charging
infrastructure,
Retailer of Choice Renewable energy participation
for Electricity and from customers.
Beyond Retail Division USD 5 Billion

Retail Co
 ENABLE UNIQUE FULFILL UNIQUE
OUTPUTS TO DRIVE REQUIREMENTS
OUTCOMES
DEVELOP UNIQUE
OUTPUTS

FACE UNIQUE CHALLENGES

Authority to decide on Coordination with Compatibility with

resource availability other projects Business Environment
 BUSINESS ENVIRONMENT
STABLE TURBULENT

12/5/23

COMPETITOR REGULATOR

T
PROVIDER

EN
PRODUCT / SERVICE CONSUMER

NM
N
TIO

TECHNOLOGY

IG
TA

AL
ns
Re FIXED

io
qu
AP

at
ire

ct
me

pe
AD

nts
EVOLVING

Ex
PROJECT APPROACH
12/5/23

Stable Turbulent
Strategic Alignment

PLAN CHANGE
BASED HYBRID BASED
APPROACH APPROACH APPROACH
 Project Life Cycle

PRODUCT
OWNER

PROJECT
SPONSOR

PLAN BASED
CHANGE BASED SCRUM MASTER
DEVELOPMENT
TEAM

• PROJECT • Activities completed in a

MANAGER • Agile, incremental or
distinct or linear fashion iterative development
• New phase begins only • Timeboxed cadence
when the previous phase (iterations/sprints) or
is completed continuous flow

41
• PROJECT
TEAM
Development Life Cycle within a Project Life Cycle

Distinct phases the

project progresses, from
initiation to close

Project
Life Cycle
How the project is delivered

Development
Life cycle

Predictive Can utilize different models Iterative

including
• Predictive
• Adaptive
– Iterative
42
– Incremental
 Value Delivery Proposition

Value
Transition to
Delivered customer at
the end –
Stable
Environment

Iterative /
Incremental
Adjustment made Adjustment made Adjustment made delivery -
Turbulent
Environment
Sales
Quality
Expertise

Cost
Time 44
Value Delivered Value Delivered Value Delivered Value Delivered
Effort
Topics Covered

• Foundational project
management concepts
ET
M
• Project management principles BE
TO
• The Agile mindset N T S
E
EM
• Tailoring – hybrid approaches, U I R
Q
processes and practices in R E

project management

45
Project
Management a. Be a diligent, respectful and caring steward
Principles b. Recognize, evaluate and respond to system interactions
Guidance for All c. Navigate complexity
Project d. Create a collaborative project team environment
Practitioners e. Demonstrate leadership behaviors
Basis for
f. Optimize risk responses
g. Effectively engage with stakeholders
h. Tailor based on context
i. Embrace adaptability and resiliency
j. Focus on value
k. Build quality into processes and deliverables
l. Enable change to achieve the envisioned future state

Copyright 2023© Project Management Institute, Inc. All rights reserved. 46

This material is being provided as part of a PMI® course.
• Effectively engage with • Tailor based on context
stakeholders
• Optimize risk responses
• Recognize, evaluate and
respond • Focus on Value
to system interactions
• Navigate complexity
Seek to understand Be Proactive

PROJECT MANAGEMENT PRINCIPLES

• Enable change to achieve the • Demonstrate Leadership
envisioned future state Behaviors
• Create a collaborative project • Embrace adaptability and
team environment resiliency
• Build quality into processes • Be a diligent,
and deliverables respectful and caring
Improve Continually Take action steward 47
Underlying
Principles of
Project
Management

Seek to understand Be Proactive

Continual Improvement Take action

Copyright 2023
© Project Management Institute, Inc. All rights reserved.
This material is being provided as part of a PMI® course.
 PEOPLE PROCESS

Interactive

CRITICAL SUCCESS FACTORS

Interrelated

PRODUCT POSSIBILITIES
Interdependent

A Project Performance Domain is defined as a group of related activities that

are critical for the effective delivery of project outcomes.

Interactive, Interrelated and Interdependent management capabilities that 50

work in unison
 MEASUREMENT UNCERTAINTY
PROJECT WORK
AND DELIVERY
Project
Performance
Domains

LIFECYCLE

PLANNING STAKEHOLDER
TEAM
Topics Covered

• Foundational project
management concepts
ET
M
• Project management principles BE
TO
• The Agile mindset N T S
E
EM
• Tailoring – hybrid approaches, U I R
Q
processes and practices in R E

project management

52
 Agile

• “The ability to sense, create and respond to change

in order to profit in a turbulent business environment.
It is the ability to balance flexibility and stability”

Evolving Requirements
 Agile Mindset

What are our What will benefit

existing the customer the
constraints most

Is this something
achievable based
How can we
on existing
overcome our
technology
constraints

How can this

benefit the What do we have
organization to focus on to add
as well as the value
customer
 Agile Manifesto (Agile Values)

We value We value working

individuals and software over
interactions comprehensive
over process documentation.
and tools.

We value
We value customer responding to
collaboration over change over
contract following a plan.
negotiation.
 Agile Manifesto (Agile Values)
Leverage on Improve Too much focus
on internal Focussed on Too
Knowledge Process / what adds focussed on
Systems processes rather
than being value to the non-value
customer client added tasks
focused

Better Engage with Lack engagement Being responsive to Being fixated on

collaboration Stakeholders with other department change – following a plan –
opportunities / customer Embracing Change Resisting Change
 Customers competitive Business owners
Early and continuous Shorter time scale and developers
advantage
delivery

Build projects around Effective information Primary measure of Maintain constant pace
motivated individuals sharing Progress indefinitely

Maximizing the Best architectures, To tune and adjust its

Technical excellence and behavior
amount of work not requirements and
good design
 Agile Mindset

How the mind What is Why it is done What is being done

thinks when deemed to be that way
dealing with important
work issues
Topics Covered

• Foundational project
management concepts
ET
M
• Project management principles BE
TO
• The Agile mindset N T S
E
EM
• Tailoring – hybrid approaches, U I R
Q
processes and practices in R E

project management

59
 Because each project is unique, we adapt methods to
Tailor* the unique project context to determine the most
Projects to appropriate ways of working to produce the desired
Contexts outcomes.
TAILORING - the
deliberate adaptation of the
project management Tailor iteratively and continuously throughout the
approach, governance, and
processes to make them project
Organizational Business
more suitable for the given
environment and the work Policy Environment
at hand.
Stakeholder Technological
Preference Evolution

Copyright 2023© Project Management Institute, Inc. All rights reserved. 60

This material is being provided as part of a PMI® course.
 Apply product knowledge, delivery
Tailor Hybrid CHANGE BASED
cadence and awareness of the available VS
Approaches, options to select the most appropriate PLAN BASED
APPROACH
Processes, development approach
Practices and
Methods Tailor processes for the selected life
ITERATIVE
cycle and development approach; VS
include determining which portions or INCREMENTAL
elements should be added, modified,
removed, blended, and/or aligned

Tailor practices and methods to the

environment and culture

Copyright 2023© Project Management Institute, Inc. All rights reserved. 61

This material is being provided as part of a PMI® course.
Disciplined Agile

A hybrid tool kit that harnesses hundreds of agile practices—

agile, lean, and traditional sources—to guide you to the best
62

DEFINITION way of working for your team or organization.

12/5/23

DISCUSSION

Why Is It Necessary To Adopt An Agile Mindset In Order To

Tailor Projects Appropriately To Changing Business
Environments?
63
12/5/23
Key Takeaways
• Projects deliver unique outputs and create value for the organization and client within a business
environment
• Business Environment affects and is affected by people and process associated with delivering the project
output
• Professional project managers remain focused creating value through their projects

• Organizational Project Management aims to ensure all projects and programs within a portfolio collectively
contribute towards value creation
• Adapting to changing business environment is required to remain aligned towards creating value
• The authority to decide by project manager enables adaptation and alignment
• An agile mindset is required for timely adaptation within a business environment to occur

• Project performance domains are critical success factors in a project

• Understanding and proactively managing them prevents them from becoming core source of failure

64
Organizational
Structures

At Shawpe Industries, team members have been allocated to the SLC

project from all over the organization. During the project, the team
members will report primarily to the project manager, Ang Fen, but they
will also continue to report to their department managers. The project
manager reports directly to the project sponsor, Eugene Lowe, and the
executive stakeholders. Team members are expected to spend at least
70% of their working time on the SLC project.

Which type of organizational structure is described in this scenario?

a. Functional
b. Matrix
c. Project-oriented
d. Composite

Copyright 2023© Project Management Institute, Inc. All rights reserved. 65

This material is being provided as part of a PMI® course.
PMOs by Type

Earlier in his career, Ang Fen worked in a very large aerospace

company, as a project coordinator. The primary purpose of that
organization’s PMO was ensuring that projects received the
guidance needed to deliver successful project outcomes and
followed governance standards. Because the aerospace industry
is highly regulated, the PMO also ensured compliance with several
internal and external processes.

Which type of PMO was this?

a. Supportive
b. Directive
c. Controlling
d. Agile Center of Excellence
Copyright 2023© Project Management Institute, Inc. All rights reserved. 66
This material is being provided as part of a PMI® course.
Predictive or Adaptive?

A - “We want to be able to pivot and change

plans, even late in development.”

B - “I will carefully plan for all possible risks.”

C - “We should build the project around the

people at Shawpe who are the most
motivated.”
D - “Eugene’s (the project sponsor) point of view
is probably the most important one to
follow.”

E - “We need to have a full scope of work

decided before we can begin.”

Copyright 2023© Project Management Institute, Inc. All rights reserved.

This material is being provided as part of a PMI® course.
Project Compliance
LESSON 1: TOPIC F

68
12/5/23
STABLE
BUSINESS ENVIRONMENT TURBULENT

COMPETITOR REGULATOR

T
PROVIDER CONSUMER

EN
PRODUCT / SERVICE
N

NM
TIO

TECHNOLOGY

IG
TA

AL
ns
Re FIXED
AP

io
qu

at
ire

ct
me
AD

pe
nts
EVOLVING

Ex
ORGANIZATIONAL INFLUENCE
SET DIRECTION
ORGANIZATIONAL GOVERNANCE STRATEGIC
MAKE DECISIONS COMPLIANCE
CHANGE ALIGNMENT
PROVIDE OVERSIGHT

FUNCTIONAL ORGANIZATIONAL
STRUCTURE PROJECTIZED
MATRIX 69

AUTHORIZATION
ECO Coverage

3.1 Plan and manage project compliance

• Confirm project compliance requirements
(e.g., security, health and safety,
regulatory compliance (3.1.1)
• Classify compliance categories (3.1.2)
• Analyze the consequences of non-
compliance (3.1.5)

70
 Compliance is related to project quality and to
Compliance the political, business and industrial contexts
of your project’s product or service.

• Internal and external standards include:

• Government regulations
• Corporate policies
W
• Product and project quality H
• Project risk A
T
• Quality of processes and deliverables/products
• Procurement and work by vendors

• PMO monitors compliance at organizational level H

• Project team is also responsible for project activity-related O
compliance W

Copyright 2023© Project Management Institute, Inc. All rights reserved. 71

This material is being provided as part of a PMI® course.
Compliance Requirements Example: Compliance for Commercial
Unit within Schawpe Lifestyle Centre

Legal or regulatory constraints include:

The labelling for all commercial services
• Requirements for specific practices shall adhere to these general requirements:
• Standards
• Privacy laws - ISO 13485
• Handling of sensitive information - Privacy law
- Confidentiality and privacy of Personal
Data
Quality: Tailor to your project — How much
process rigor and quality control is
relevant?

Copyright 2022©
2023© Project Management Institute, Inc. All rights reserved. 72
This material is being provided as part of a PMI® course. 72
Potential Threats to Compliance

Lack of awareness of compliance requirements.

Identification of new vulnerabilities.

RANSOMWARE

Changes in legal or regulatory requirements.

Errors in testing and validation to confirm

compliance.
Errors or bugs in deliverables.
 Compliance Requirements
• Most projects have aspects of their
solutions that are subject to legal,
regulatory as well as corporate policy
constraints.

• The requirements for compliance

must be identified, tracked, and
managed throughout the project.

• Might include requirements for

specific practices, privacy laws,
handling of sensitive information, and
many other areas. 74
Change in fire safety Change in exterior wall
requirement cladding requirement
 Compliance is related to project quality and to
Compliance the political, business and industrial contexts
of your project’s product or service.

• Internal and external standards include:

• Government regulations
• Corporate policies
W
• Product and project quality H
A
• Project risk T
• Quality of processes and deliverables/products
• Procurement and work by vendors
• PMO monitors compliance at organizational level
H
• Project team is also responsible for project activity- O
related compliance, including: W

Copyright 2023© Project Management Institute, Inc. All rights reserved. 75

This material is being provided as part of a PMI® course.
 PMO Monitors
Compliance at
Organizational Level

Quality of Project Team responsible for project Procurement and

76
Processes related compliance activities Work by Vendors
 Guidelines to Measure Project Compliance
Establish a clear Quality
Management Plan and act
on it continuously
PROJECT QUALITY

Leverage effective Establish where

quality tools and external audit teams
techniques to assess Establish project tolerances and can confirm and
quality deliverables either initiate corrective actions validate use of
or escalate noncompliance appropriate processes
PRODUCT QUALITY
beyond the tolerances PROCESS QUALITY 77
ECO Coverage
Workplace
Environmental Health and
Risk Safety

Corrupt Social
Practices Responsibility

Quality Process Risks

3.1 Plan and manage project compliance

• Confirm project compliance requirements
(e.g., security, health and safety,
regulatory compliance (3.1.1)
• Classify compliance categories (3.1.2)
• Analyze the consequences of non-
compliance (3.1.5)

78
Compliance
Categories Environmental
Workplace
Classification Health and
Risk
Safety
• Environmental risks
• Workplace health and safety
• Ethical/non-corrupt practices Corrupt Social
• Social responsibility Practices Responsibility
• Quality
• Process risks

Quality Process Risks

Categories vary based on:
• Industry and solution scope
• Unique legal and regulatory exposure

Copyright 2023© Project Management Institute, Inc. All rights reserved. 79

This material is being provided as part of a PMI® course.
 How to Investigate Compliance Threats

Where/who in the
organization What is the
handles organization’s
compliance? quality policy?

Are the team and

stakeholders aware of
What legal or regulatory compliance matters?
requirements impact the
organization? 80
Treat • Proactively track and manage risks for compliance
Compliance as requirements
a Project • Be prepared to perform quality audits
Objective
• Continuously validate legal and regulatory
compliance for deliverables
• Check compliance before the end of the project to
avoid transferring issues
• In a risk or dedicated compliance register, include:
o The identified risk
o A responsible risk owner
o Impact of a realized risk
o Risk responses
Larger organizations or those in highly regulated industries
typically have a compliance department or officer.
Copyright 2023© Project Management Institute, Inc. All rights reserved.
This material is being provided as part of a PMI® course. 81
ECO Coverage
Workplace
Environmental Health and
Risk Safety

Corrupt Social
Practices Responsibility

Quality Process Risks

3.1 Plan and manage project compliance

• Confirm project compliance requirements
(e.g., security, health and safety,
regulatory compliance (3.1.1)
• Classify compliance categories (3.1.2)
• Analyze the consequences of non-
compliance (3.1.5)

82
 DO WE KNOW WHAT COMPLIANCE REQUIREMENTS ARE?

Project involves installing exterior wall cladding for the exterior construction of the Life Style
Project that needs to comply with new compliance requirements
ARE WE IN COMPLIANCE NOW?
CAN WE MEET THEM?

WHAT DO WE HAVE TO DO? WHAT IF WE DON’T?

Increase scope Avoid Response Fine Stop Work Order

 Compliance
Five Best
Practices

• Documentation: Updated compliance needs and risks

• Risk planning: Compliance is the highest priority risk
• Compliance council: Includes quality/audit specialists and
relevant legal/technical specialists
• Compliance audit: Formal process
Collapse of • Compliance stewardship: It’s your responsibility!
Construction Crane
due to not following
best practices
Copyright 2023© Project Management Institute, Inc. All rights reserved. 84
This material is being provided as part of a PMI® course.
Project Compliance
Environmental Workplace
Risk Health and
Safety

Corrupt Social Know what they Determine Potential Analyze Determine

Practices Responsibility Impact necessary
are Threats
actions

Quality Process Risks

12/5/23
Key Takeaways

• Compliance to business environment requirements is a prerequisite for

delivering value
• Compliance to requires ensures continuity in value creation
• PMO oversees and facilitates compliance to requirements
• Compliance is to be considered a project objective
• Project managers are accountable for identifying, tracking and managing
project compliance requirements

87
Compliance

A SLC project stakeholder, Oasestown Municipality, is also a

project partner, providing partial funding for the historical
Audit procedures and restoration work. Ang Fen meets with them about
quality plans are essential compliance requirements.
to comply with standards
and regulations. Which three of the following compliance actions will the
project manager likely take during or as a result of this
Building codes and
insurance are common meeting? (Choose three)
requirements with which
construction and other a. Inquire about the government’s budget for the project
projects or activities need b. Create audit procedures and a quality management plan
to comply. c. Assess how rising local tax rates will affect the project
d. Ask about building code regulations
A and C are not related to
compliance, but instead e. Check Shawpe’s insurance coverage
to budget/financial Copyright 2023© Project Management Institute, Inc. All rights reserved. 88
concerns.
This material is being provided as part of a PMI® course.
A medical charity organization operates in disaster emergency zones worldwide. At headquarters, the leadership wants to
ensure that their practitioners’ professional licenses are compliant with governing bodies both in the practitioner’s home
and in their working locations. This is a condition set by their board of directors and the charity’s legal team.

In order to facilitate the new measures, which three actions should be taken? (Choose three) (X00261)

A. Conduct an impact assessment and audit.

B. Create and use an internal standard based on the most common international compliance standards.
C. Evaluate the existing compliance status of all practitioners
D. Ensure signoff on compliance requirements from the board of directors and the legal team.
E. Place the compliance risks in the risk register and mark them as low priority.

89
Project Governance
LESSON 1: TOPIC E

90
12/5/23
STABLE
BUSINESS ENVIRONMENT TURBULENT

COMPETITOR REGULATOR

T
PROVIDER CONSUMER

EN
PRODUCT / SERVICE
N

NM
TIO

TECHNOLOGY

IG
TA

AL
ns
Re FIXED
AP

io
qu

at
ire

ct
me
AD

pe
nts
EVOLVING

Ex
ORGANIZATIONAL INFLUENCE
SET DIRECTION
ORGANIZATIONAL GOVERNANCE STRATEGIC
MAKE DECISIONS COMPLIANCE
CHANGE ALIGNMENT
PROVIDE OVERSIGHT

FUNCTIONAL ORGANIZATIONAL
STRUCTURE PROJECTIZED
MATRIX 91

AUTHORIZATION
ECO Coverage

2.14 Establish project governance structure

• Determine appropriate governance for a
project (e.g., replicate organization
governance) (2.14.1)
• Define escalation paths and thresholds
(2.14.2)

92
Project Governance

The framework, functions, and processes

that guide project management activities to
create a unique product, service, or result
to meet organizational, strategic, and
operational goals.

Key benefits:
• Offers a single point of accountability
• Encompasses the project life cycle

Governance type differs among

organizations and projects.

Copyright 2023© Project Management Institute, Inc. All rights reserved.

This material is being provided as part of a PMI® course.
93
Project Governance

• Metrics for risk

and issues
• Stakeholder
Communication

Requirements for
project closure

• Stakeholder
Engagement
• Meeting
• Reporting

• What to monitor
94
• When to monitor
• How to monitor
 Framework, functions, and processes
that guide project management
activities to meet strategic goals

Governance Guidelines Organizational Governance Guidelines used

used to establish Governance to establish

Strategic Direction Performance Parameters

• Revitalization of Intermediary • Achieves minimum 80 %
Governance
downtown area occupancy within 1
month of launch
• Profitable
community • Meets expectations of
partnership with potential tenants in line
Oasestown with the commercial for
community partnership 95
Project Governance Roles

Profitable community In accordance with guidelines Extent to which expectations of the

partnership with listed for commercial for potential tenants are being met
Oasestown community partnership during design, development and 96
construction
PLAN BASED CHANGE BASED
APPROACH APPROACH

Construction of
lifestyle center
building
 Too much governance can annoy
Project stakeholders, while relaxed governance
Governance can lead to a lack of stakeholder
What Kind and engagement or accountability.
How Much?

Governance:
Is typically already in place—established by PMO or
aligned with organizational policies
Depends on strategic importance of project,
constraints or oversight requirements

• Critical for managing internal or external business environment change

and deviations in budget, scope, schedule, resources or quality
• Provides budget management oversight – a key governance area

Predictive Copyright 2023© Project Management Institute, Inc. All rights reserved. 98
This material is being provided as part of a PMI® course.
PROJECT GOVERNANCE PROVIDES SUPPORT FOR PROJECTS

Communication Documentation

Provides reliable processes and frameworks for

Review and Approval of Risk and Issue

Decision Making
Changes Identification
PLAN BASED CHANGE BASED
APPROACH APPROACH

Development of Artificial Intelligence system to

integrate community requirement with
commercial availability
Governance in
Agile projects:
Adaptive
Projects • Document outputs and expectations

• Provide a clear view of project status from:

Clearly Defined
• Defined iteration/sprint expectations and outputs and
outputs expectations

• Releases tied to specific dates

• “Real-time” monitoring of project
output through daily stand-ups

Iterative approaches enable quicker and less

Governance
costly identification of value-based outputs through real
than predictive time monitoring
Adaptive Copyright 2023© Project Management Institute, Inc. All rights reserved. 101
This material is being provided as part of a PMI® course.
 Real time
monitoring
during standup

Sprint
outputs
clearly
defined
Release 1

AI Capability
to forecast
community
Identify value-based
requirement for outputs more quickly
commercial
with less cost
enterprise
planning

Releases tied to specific dates, giving clear roadmap

ECO Coverage

2.14 Establish project governance structure

• Determine appropriate governance for a
project (e.g., replicate organization
governance) (2.14.1)
• Define escalation paths and thresholds
(2.14.2)

103
Governance
Board
aka Project Board • Provides project oversight
or Steering • May include project
Committee sponsor, senior managers
and PMO resources
• May be responsible for:
• Reviewing key
deliverables
• Providing guidance for
project decisions

Projects that use Scrum or SAFe® use intermediary

governance boards to liaise between the project and Copyright 2023
104
organizational governance © Project Management Institute, Inc. All rights reserved.
This material is being provided as part of a PMI® course.
Project Governance – Structure

105
 Project Governance Roles – Governance Board

Provide
Reviewing
Guidance for
Key
Project
Deliverables
Decisions
Governance For problems outside a project’s thresholds or tolerance levels:
Defines
• Escalate to the responsible stakeholder who is authorized to take
Escalation action;
Procedures
• But if an issue is within the threshold, then work with the team to
find a resolution.

Responsible
Stakeholders
AUTHORITY

TDS range
250 – 850 mg / Litre

Project
TOLERANCE
Team

Copyright 2023© Project Management Institute, Inc. All rights reserved.

PROBLEM This material is being provided as part of a PMI® course.
 PROJECT LIFE CYCLE
Governance The series of phases that a project passes through from its
and Life start to its completion.
Cycles
A Systems View Governance system works alongside the value delivery
system — the project life cycle.

Why? To enable smooth workflows, manage issues and

Remember the project support decision making.
management principle -
Recognize,
evaluate and respond
to system interactions

Value delivery Value delivery

as product of life embedded in life
cycle cycle Copyright 2023
108
© Project Management Institute, Inc. All rights reserved.
This material is being provided as part of a PMI® course.
Value Delivery System and Governance System

Identification Definition of Ontime Optimization of

of changing Items to be delivery of space and
community stocked up in products maximization of
requirement the required for sales for the
commercial community commercial outlets
outlets
The system by which a business provides and
communicates its value proposition to its customers
 VALUE IS DELIVERED BY
Value Delivery System and Governance System ADHERING TO CONTROLS
Identification Definition of Ontime delivery of IMPOSED BY GOVERNANCE
of shifting Items to be products required
Value SYSTEM IN PLACE
community stocked up for community
Delivery requirement
System

Done in accordance Done in accordance

Done in accordance
with Non-Disclosure with Environmental and
with Personal Data
Agreements? Safety Regulations?
Protection Act?

Governance the system by which an organisation is controlled and operates, Framework, functions, and
System and the mechanisms by which it, and its people, are held to processes that guide project
account. management activities for
ensuring value is delivered
Governance Checkpoints: Phase Gates and Iterations

Predictive Adaptive

Split work into phases Split work into releases

Review results at a phase gate – aka,

Review results at end of iterations
governance gate, kill point, or tollgate

Decide:
• Continue to the next phase Gather feedback and take action to improve
• Continue with modifications, or value in next iteration
• End a project or program

Continue until customer’s acceptance criteria –

e.g. definition of done or MVP – is satisfied or
project ends

Copyright 2023© Project Management Institute, Inc. All rights reserved. 111
This material is being provided as part of a PMI® course.
 Project Phases
Relationships
SEQUENTIAL
Phases produce one or more deliverables; outputs from one phase are
RELATIONSHIP generally inputs to the next phase.
Consecutive relationship
between phases; phases They can have sequential or overlapping relationships.
occur in procession and
without overlap.
Technical design
Product Development Phase
OVERLAPPING phase PHASE GATE
RELATIONSHIP
Phases that start prior to PHASE 3
the ending of the previous PHASE 1 PHASE 2
phase. Therefore, Overlapping
activities in different
0 6 12 18 24 30 36
phases run concurrently
with one another.
Sequential
Copyright 2023© Project Management Institute, Inc. All rights reserved. 112
This material is being provided as part of a PMI® course.
 Product Development Phase
Apply • Assumptions that no changes were made during technical
Governance •
design was met within timeline set
Low probability but high impact on development if client
to Predictive expectations change during development – keep client
engaged throughout development PHASE 3
Project PHASE 1 PHASE 2
Phases • Development target met if all acceptance criteria met
within 6 weeks from start date and within a budget of USD
20,000

At the • Verify and validate project assumptions

beginning of a • Analyze risks
phase: • Provide detailed explanation of phase deliverables

• Key deliverables produced

At the end:
• Review to ensure completeness and acceptance

If huge risks are encountered, deliverables are no longer

needed or requirements change, a phase or project will be
terminated.
Copyright 2023© Project Management Institute, Inc. All rights reserved. 113
This material is being provided as part of a PMI® course.
 SENIOR MANAGEMENT

OVERRIDING
RIGHT FOCUS
PURPOSE

PROJECT GOVERNANCE

• BUSINESS
ENVIRONMENT
RIGHT • PEOPLE
APPROACH • PROCESS PROJECT MANAGEMENT TEAM

Seek to Be
understand Proactive PROJECT TEAM STAKEHOLDERS
• Requirement • Identification
• Composition • Categorization
UNDERLYING Continual Take
• Formation • Engagement
PRINCIPLES Improvement Action
RIGHT BASIS • Contribution
12/5/23
Key Takeaways

• Project governance sustains alignment to value creation

• It is established by PMO or is aligned with organizational policies
• Governance is managed by a governance board that functions within a
project governance structure
• It sets direction, provides oversight and guides decision making at the project
level
• It establishes escalation procedures
• Governance in adaptive projects occurs through real time monitoring

115
Project N is a business merger in a highly regulated industry. The project
sponsor and a high-level executive have asked for changes that appear to
disregard legal requirements. [#15-2]

What should be the first step in the project manager's response?

A. Immediately schedule a meeting with the stakeholders to review the

situation.

B. Send the change control board (CCB) a change request.

C. Check with the organization's relevant legal practitioner for guidance.

D. Review the organization's lessons learned database for precedents and

direction.
A large project includes functional groups in four countries, a steering committee, and a
project sponsor. As the project approaches completion, the project manager must
prepare the closeout documents.
How should the project manager obtain appropriate signoff on the acceptance of project
deliverables? [#73-2]

A. The project sponsor should be asked to sign off.

B. The steering committee should be asked to sign off.

C. The director of the project manager’s business unit should be asked to sign off.

D. All of the parties involved should be asked to sign off

Organizational Culture and Change
Management
LESSON 1: TOPIC D

118
12/5/23
STABLE
BUSINESS ENVIRONMENT TURBULENT

COMPETITOR REGULATOR

T
PROVIDER CONSUMER

EN
PRODUCT / SERVICE
N

NM
TIO

TECHNOLOGY

IG
TA

AL
ns
Re FIXED
AP

io
qu

at
ire

ct
me
AD

pe
nts
EVOLVING

Ex
ORGANIZATIONAL INFLUENCE
SET DIRECTION
ORGANIZATIONAL GOVERNANCE STRATEGIC
MAKE DECISIONS COMPLIANCE
CHANGE ALIGNMENT
PROVIDE OVERSIGHT

FUNCTIONAL ORGANIZATIONAL
STRUCTURE PROJECTIZED
MATRIX 119

AUTHORIZATION
 Outcome
Organizational

ign
Culture and Change

Al
Management Adapt

Output

120
ECO Coverage
3.4 Support organizational change
• Assess organizational culture
(3.4.1)
• Evaluate impact of organization
change to project, and
determine required actions
(3.4.2)
• Evaluate impact of the project
to the organization and
determine required actions
(3.4.3)
121
Assess Organizational Culture
ECO Coverage
3.4 Support organizational change
• Assess organizational culture
(3.4.1)
• Evaluate impact of organization
change to project, and
determine required actions
(3.4.2)
• Evaluate impact of the project
to the organization and
determine required actions
(3.4.3)
123
Change Management

• Organizations embrace
change as a strategy.
• PMOs build and sustain
alignment between projects Change in Business
Environment
Change in Organizational
Strategy
and the organization.
POWER
• Whether your organization SKILLS!
has a PMO or not, you are a Change Management at
“changemaker”! PMO level undertaken
to ensure projects are
• Tailor a strategy to executed in accordance
with changing
circumstances, people and environment
timing
• Use a robust approach
Copyright 2023© Project Management Institute, Inc. All rights reserved. 124
This material is being provided as part of a PMI® course.
 Examples of Organizational Change

Organizational Restructuring
Mattel
Onboarding
New Leaders
Banks Twitter
Merger and
undertaking agile Acquisition
projects to Digi/Celcom
support digital
transformation of
their operations

Adoption of Innovative
Digital Transformation Products / Services

HSBC IBM
Manage
Organizational
Change Impacts
HSBC
on Projects Digi/Celcom Twitter Mattel
IBM

• Assess organizational culture

• Evaluate impact of organizational change to project
and determine required actions
• Recommend options for changes to project
• Continually monitor external business environment
for impacts to project scope/backlog

Actions required of project managers to

manage organizational change impacts on
projects.
Copyright 2023© Project Management Institute, Inc. All rights reserved. 126
This material is being provided as part of a PMI® course.
ECO Coverage

3.4 Support organizational change

• Assess organizational culture (3.4.1)
• Evaluate impact of organization change
to project, and determine required
actions (3.4.2)
• Evaluate impact of the project to the
organization and determine required
actions (3.4.3)

127
Get to Know
Organizational Cultures
and Styles
• View of leadership, hierarchy and
authority
• Shared vision, beliefs and Strong
expectations influence
on the
• Diversity, equity and inclusion project’s
practices ability to
• Risk tolerance meet its
• Regulations, policies and procedures objectives
• Code of conduct
• Operating environments
• Motivation and reward systems

Copyright2023©
Copyright 2022 Project Management Institute, Inc. All rights
rights reserved. 128
Different organization have unique This material
This is is
material being provided
being asas
provided part ofofa aPMI
part Workshop.
PMI® course.
cultural norms that affect the above
Risk, Culture
and Change in
Organizations
Risk threshold and appetite are shaped by diverse values
of:
• Country/region
• Industry/sector
• Leadership
• Project team

These must be understood with care to:

• Establish effective approaches for initiating and planning
projects
• Identify the acceptedCopyright
means for getting work done
2023© Project Management Institute, Inc. All rights reserved. 129
This material is being provided as part of a PMI® course.
Change
Management
Framework
“Organizational change requires individual change”

The ADKAR® model names five milestones an individual

must achieve in order to change successfully:
• A – Awareness of the need for change
• D – Desire to support the change
• K – Knowledge of how to change
• A – Ability to demonstrate new skills and behaviors
• R – Reinforcement to make the change stick

Copyright 2023© Project Management Institute, Inc. All rights reserved. 130
This material is being provided as part of a PMI® course.
 The project organization, the business and the world are
Actions to constantly changing and evolving.
Support DON’T
DO
Change
• Coach co-workers to support the • Force changes – Involve and
business — patience and consult; aim to secure buy-in
compassionate mentoring are key to the reasons for change

• Enable an agile operating • Alienate resisters – Change

system - Coach team members in can breed conflict, so proceed
agile to facilitate adoption of a carefully
change-centered mindset

• Keep knowledge current –

Continuously improve processes
and knowledge

Enables a change-centered culture to 132

emerge
Copyright 2023© Project Management Institute, Inc. All rights reserved.
This material is being provided as part of a PMI® course.
Plan for Change

Define the knowledge transfer, training

and readiness activities required to
implement the change brought by the
project

• Include an attitudinal survey to find out

how people are feeling
• Create an informational campaign to
familiarize people with changes
• Be open and transparent about
potential effects of the changes
• Consider creating a rollout plan

The rollout plan is not a project

management plan component. Copyright 2023© Project Management Institute, Inc. All rights reserved.
This material is being provided as part of a PMI® course.
133
Organizational Change
Management
12/5/23
Key Takeaways

• Organizational culture can either impede or facilitate organizational change

• Organizations change as they adapt to changes in business environment
• These organizational changes can affect the way projects are managed within
the organization
• Risk thresholds and risk appetites influences initiation and planning of
projects
• Positive changes in projects are potential improvement opportunities for the
organization
• ADKAR model is a model that describes the stages of individual change in
organizations

136
Strategic Alignment
LESSON 1: TOPIC B

13
7
12/5/23

Stable Turbulent
Strategic Alignment Compliance
Compliance

Governance
Governance

Organizational Organizational and Delivering 138

Structure Culture Change Value

12/5/23
STABLE
BUSINESS ENVIRONMENT TURBULENT

COMPETITOR REGULATOR

T
PROVIDER CONSUMER

EN
PRODUCT / SERVICE
N

NM
TIO

TECHNOLOGY

IG
TA

AL
ns
Re FIXED
AP

io
qu

at
ire

ct
me
AD

pe
nts
EVOLVING

Ex
ORGANIZATIONAL INFLUENCE
SET DIRECTION
ORGANIZATIONAL GOVERNANCE STRATEGIC
MAKE DECISIONS COMPLIANCE
CHANGE ALIGNMENT
PROVIDE OVERSIGHT

FUNCTIONAL ORGANIZATIONAL
STRUCTURE PROJECTIZED
MATRIX 139

AUTHORIZATION
 Projects

Power Skills Ways of working Business Acumen

140

Requirements for strategic alignment of project to organizational goals

Once project resources are established, will have an
internal discussion to align with the project team and to
also establish initial communication plan, etc before
project kick-off meeting with stakeholders, etc.
 Ways of Working Power Skills
The PMI • Technical project • Collaborative leadership
Talent
management • Communication
Triangle®
• The right tools • Innovative mindset
at the right time • For-purpose orientation
PROCESS • Empathy
EXPERTISE PEOPLE
Mastering the many EXPERTISE
diverse and creative
Critical interpersonal
ways to get a job
skills that professionals at
done
every level can leverage
Business Acumen to apply influence, inspire
change, and build
• Strategic and business management relationships.

• Cultivate effective decision-making

ENVIRONMENTAL EXPERTISE
Ability to make good judgments and quick decisions, while
understanding the many factors of influence across an
organization or industry.
Strategic
Alignment and
Business Do you:

Management • Know your organization’s strategic plan?

Skills • Understand how project goals matter to an organization's long-term
vision and mission?
STRATEGIC PLAN • See a high-level overview of the organization?
• Have a working knowledge of business functions?
A high-level business • Have pertinent product and industry expertise?
document that explains
an organization’s vision Can you:
and mission plus the
approach that will be • Explain the essential business aspects of a project?
adopted to achieve this • Work with SMEs and a sponsor to develop an appropriate project
mission and vision, delivery strategy?
including the specific • Implement strategy to maximize the business value of project?
goals and objectives to
be achieved during the
period covered by the
document. Copyright 2023© Project Management Institute, Inc. All rights reserved. 144
This material is being provided as part of a PMI® course.
EEFs Can support or limit OPA
project management
Enterprise Organizational
Environmental Factors Process Assets
(EEFs) (OPAs)

Conditions, not under Plans, processes,

the immediate control policies, procedures,
of the team, that can and knowledge bases
influence, constrain, or that are specific to and
used by the performing
direct the project, organization.
program, or portfolio.

INFLUENCES
146
These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Project Management
Institute Inc., 2017.
Examples of
OPAs and OPAs EEFs
EEFs
Processes, policies and Internal
procedures
Examples—
Examples— • Resource capabilities
• Organizational charts • Organizational culture
• Procurement rules • IT software
• Hiring and onboarding procedures • Distribution of facilities

Organizational knowledge bases External

Examples— Examples—
• Engineering wikis • Marketplace conditions
• Libraries or archives • Laws, regulations and standards
• Lessons learned repositories • Operating conditions
• Social and cultural influences
Copyright 2023© Project Management Institute, Inc. All rights reserved. 147
This material is being provided as part of a PMI® course.
Get to Know
the External
Business
Environment

PESTLE,
VUCA &
TECOP

Copyright 2023© Project Management Institute, Inc. All rights reserved. 149
This material is being provided as part of a PMI® course.
Internal Business
Environment Factors

• Organizational changes can

dramatically impact scope
• The project manager, project sponsor
or product owner need to be familiar
with business plans, reorganizations,
process changes and other internal
activities
• Internal business changes might cause:
• Need for new deliverables
• Reprioritization of value, including
removal of existing deliverables

Copyright 2023© Project Management Institute, Inc. All rights reserved. 150
This material is being provided as part of a PMI® course.
12/5/23
Key Takeaways

• Maintaining strategic alignment in a changing business environment is a

major challenge
• It requires project managers to have talents associated with
• Business acumen
• Power skills

• Ways of working

• It requires consideration of
• Enterprise Environmental Factors

• Organizational Process Assets

151
Activity:
Project name: Shawpe Lifestyle Centre
Identify OPAs and
EEFs
List of EEFs and OPAs:

a. Economic demand for a new shopping area

b. Historical society (conservation) building regulations
c. Local neighborhood demand for a better town center
d. Archive of past large infrastructure projects
e. Approved vendor and contractors list
f. Tenant selection process

Which are EEFs? Which are OPAs?

Copyright 2023© Project Management Institute, Inc. All rights reserved. 152
This material is being provided as part of a PMI® course.
Project Benefits and Value
LESSON 1: TOPIC C

15
3
12/5/23
STABLE
BUSINESS ENVIRONMENT TURBULENT

COMPETITOR REGULATOR

T
PROVIDER CONSUMER

EN
PRODUCT / SERVICE
N

NM
TIO

TECHNOLOGY

IG
TA

AL
ns
Re FIXED
AP

io
qu

at
ire

ct
me
AD

pe
nts
EVOLVING

Ex
ORGANIZATIONAL INFLUENCE
SET DIRECTION
ORGANIZATIONAL GOVERNANCE STRATEGIC
MAKE DECISIONS COMPLIANCE
CHANGE ALIGNMENT
PROVIDE OVERSIGHT

FUNCTIONAL ORGANIZATIONAL
STRUCTURE PROJECTIZED
MATRIX 154

AUTHORIZATION
ECO Coverage

3.2 Evaluate and deliver project benefits and

value
• Investigate that benefits are identified
(3.2.1) What benefits can we expect?
• Evaluate delivery options to deliver value
(3.2.4) How can value be realized?
2.1 Execute project with the urgency required to
deliver business value
• Assess opportunities to deliver value
incrementally (2.1.1)
How can value be delivered incrementally?

155
Business Value
• An informal term that goes beyond economic value. Sales

Quality
• Components include: Expertise
T
A
• Shareholder value N
G Cost
I
B Time
• Customer value L
E Effort

• Employee knowledge I
N
T
A

• Channel partner value N

G
I
B
156
L
E
Business Value

USD 20 mil sales

• The net quantifiable within 12 months
of launch of
benefit (tangible and/or “lifestyle center” in
intangible) identified from the historic
a business endeavor Oasestown district

• Part of the objectives or

Integrated
description of the project Township
in the initiating comprising both
agreements commercial center
and residential
• Benefits realization is community based
on smart
based on declared partnership
business value
Copyright 2022©
2023© Project Management Institute, Inc. All rights reserved. 157
This material is being provided as part of a PMI® course.
Examine
Business
Value • Communicate with stakeholders, do the research
and use expert knowledge
• Examine, evaluate and confirm to determine exactly
what is or can be of value!

Look especially at:

• Shareholder value (publicly traded companies) or

business growth (private)
• Customer value
• Employee knowledge
• Channel or business partner value
Copyright 2023© Project Management Institute, Inc. All rights reserved. 158
This material is being provided as part of a PMI® course.
Types of
Business
Value
Financial New Social
Gain Customers Benefit

First to Improvement Regularization

Market Technological, Alignment or
process, etc. compliance with
standards and
regulations

Short term, Long term,

financial non financial

Copyright 2023© Project Management Institute, Inc. All rights reserved. 159
This material is being provided as part of a PMI® course.
Example Financial gain Rental income, commercial asset creation
Think About
New customers Expansion in the commercial retail market
Business Value
Social benefit Revitalization of Oasestown for the local community
Development of
Pilot the “commercial for the community” (C4C)
Lifestyle Centre First to market concept to build better spaces for businesses and
families

Improvement
• Experience in conservation projects
(technological,
• Skill building for this project team
process, etc.)
Regularization
(alignment or
• Align assets with building codes
compliance with
• Get certified in conservation area development
standards and
regulations)

Copyright 2023
© Project Management Institute, Inc. All rights reserved.
160
This material is being provided as part of a PMI® course.
ECO Coverage

3.2 Evaluate and deliver project benefits and

value
• Investigate that benefits are identified
(3.2.1)
• Evaluate delivery options to deliver value
(3.2.4)
2.1 Execute project with the urgency required to
deliver business value
• Assess opportunities to deliver value
incrementally (2.1.1)

161
Needs GOALS / OBJECTIVES

Assessment • Usually performed by a business analyst

Data for the • Precedes the business case
Project • Involves understanding of:
• Business goals and objectives
ISSUES /
• Issues and opportunities OPPORTUNITIES

• Recommends proposals to address:

• What should be done
Note: From Business • Constraints, assumptions, risks and
Analysis for
Practitioners: A Practice
dependencies
Guide
• Success measures
• Implementation approach Copyright 2023
© Project Management Institute, Inc. All rights reserved.
162
This material is being provided as part of a PMI® course.
Needs
Assessment

Copyright 2023
© Project Management Institute, Inc. All rights reserved.
163
This material is being provided as part of a PMI® course.
Business
Documents
• Are developed prior to project start (usually by a
business analyst or key project stakeholder) Project Worth
required
investment?
• Contain information about the project’s objectives
and contribution to the business goals

• Help the business to determine whether a project

is worth the required investment of time, money,
and resources

Project Business
Document
Review the business documents periodically

Copyright 2023© Project Management Institute, Inc. All rights reserved. 164
This material is being provided as part of a PMI® course.
 Business case: justifies project and establishes boundaries
Business • Cost-benefit analysis
Documents • Business need
Business Case • Quality specifications
• Schedule or cost constraints
and Benefits
Management Acceptance of the business case usually leads to creation of the project
Plan charter.

Benefits management plan should include:

• Processes for creating, maximizing and sustaining project benefits
• Time frame for short- and long-term benefits realization
• Benefits owner or accountable person
• Metrics
• Assumptions, constraints and risks

This is a business document, not part of the project management plan.

Issues with finalizing benefits management plan for management team that fail to
agree on benefits as well as acceptance criteria expected for the project
Copyright 2023© Project Management Institute, Inc. All rights reserved. 165
This material is being provided as part of a PMI® course.
 Cost-benefit analysis: How businesses justify the selection
Benefit (authorization) of a project
Measurement Business - “smaller is better”
Methods • Estimate payback period — Smallest number (duration) chosen
• Assess opportunity cost — What if we didn’t undertake the
COST-BENEFIT ANALYSIS
project?
Is one method of measuring or
evaluating a project’s benefit Financial - largest number (profit) chosen - “bigger is better”
and value. • Time value of money
• Present value (PV)
OPPORTUNITY COST • Future value (FV)
• Net present value (NPV)
A concept applied to quantify
the missed opportunity when • Internal rate of return (IRR)
deciding to use a resource (e.g. • Return on investment (ROI)
investment dollars) for one Smaller
purpose versus another. It is Bigger
the opportunity (potential
return) that will not be realized
when one project is selected You will not need to calculate any of these for the exam.
over another.
Copyright 2023© Project Management Institute, Inc. All rights reserved. 166
This material is being provided as part of a PMI® course.
Net Present Value
Net present value is the present value of the cash flows at the required rate of return of your project
compared to your initial investment
ECO Coverage

3.2 Evaluate and deliver project benefits and

value
• Investigate that benefits are identified
(3.2.1)
• Evaluate delivery options to deliver value
(3.2.4)
2.1 Execute project with the urgency required to
deliver business value
• Assess opportunities to deliver value
incrementally (2.1.1)

169
 • Start with organizational objectives
How OKRs
• Decide key desired results
Help Deliver
• Refine further with objectives and key results (OKRs):
Business
• Objectives are goals and intents
Value
• Key results are time-bound and measurable milestones under
these goals and intents

OKR best practices:

• Support each objective with between 3-5 measurable key results
• Aim for 70% success rate to encourage competitive goal-making. A
100% success rate should be re-evaluated as not challenging
enough
• Write OKRs that are action-oriented and inspirational and include
concrete, measurable outcomes

Copyright 2023© Project Management Institute, Inc. All rights reserved. 170
This material is being provided as part of a PMI® course.
 Deliver consistent Develop steering
Organizational Projects
increase in committee to
Level completed within
returns to provide
timelines and cost
shareholders governance to
budgets
project team

Project Project delivers Project Success Monitor ad Control

Level value to clients Criteria for Scope, Project Schedule,
and organization Cost and Time Cost and Quality
met
Incremental
Value Delivery

An incremental development approach can speed and accrue value

delivery and:
• Enable value delivery sooner
• Attain higher customer value and increased market share
• Allow partial delivery (or previews) to customers
• Enable early feedback, allowing for adjustments to the direction,
priorities, and quality of the product

Copyright 2023© Project Management Institute, Inc. All rights reserved. 172
This material is being provided as part of a PMI® course.
Incremental Delivery – Enable early feedback Delivery
Sooner Than Later

Value
Delivered

Adjustment made Adjustment made Adjustment made

Value Delivered 173

Value Delivered Value Delivered Value Delivered
12/5/23
Key Takeaways

• Tangible and intangible business values targeted need to be established at

the beginning of a project
• These are established through a process of needs assessment
• Options to achieve these values at the organizational and project level are
identified, agreed upon and documented
• Business values are achieved when project are executed with a sense of
urgency required
• Incremental value delivery approach enables early feedback to enable value
to be delivered sooner

175
An agile team is deployed to create a workable solution for helping a region with contaminated water supply. They are
working with the government, contractors, and local residents to find the right technology to solve the problem. The
product owner is trying to determine the urgency of the problem.

How can the team help the product owner? (#A00322 )

A. Research the market and make a list of available technologies.

B. Work with the local stakeholders to find out how much they are affected.

C. Determine the cost of a few solutions.

D. Find out how many people are affected.

176
A company is losing market share to disruptive competitors with new business models. A cross-functional agile team
has been formed to recommend ways to recover market share.

How can the team increase their chance of producing successful recommendations? (#A00034)

A. Gain a deep understanding of why customers are disappointed by the company's products.

B. Focus on enabling profitable delivery of unique, high-quality, and innovative products.

C. Understand how the competitors' business models can reach more consumers at a lower cost.

D. Focus on understanding the value consumers seek and the value competitors offer.

112
LESSON 2

START THE
PROJECT
• Determine Project Approach
• Form the Team
• Identify and Engage
Stakeholders
• Build Shared Understanding

Version 3.0 | 2023 Release Copyright 2023© Project Management Institute, Inc. All rights reserved.
This material is being provided as part of a PMI® course.
12/5/23
LESSON 6
CLOSE THE PROJECT / PHASE

LESSON 5
SUPPORT PROJECT TEAM PERFORMANCE

LESSON 3 LESSON 4
PLAN THE PROJECT LEAD THE PROJECT TEAM

LESSON 2
START THE PROJECT

LESSON 1
BUSINESS ENVIRONMENT 179
Project Approach
LESSON 2: TOPIC D

181
12/5/23

Stable Turbulent
Strategic Alignment

PLAN CHANGE
BASED HYBRID BASED
APPROACH APPROACH APPROACH
 Identify and Engage Build a Shared
Stakeholders Understanding

Determine Project Approach

Form a Team Start the Project

First, Understand How and
Why Approaches Differ
• Changing perceptions of value —
e.g., sustainability, customer-
centricity
• Dynamic and perpetual global
change
• Increasing complexity and risk
• Need to innovate and be dynamic

Copyright2022©
Copyright 2023 Project Management Institute, Inc. All rights
rights reserved. 184
184
184
This material
This is is
material being provided
being asas
provided part ofofa aPMI
part Workshop.
PMI® course.
 The product life cycle is the series of phases that represent the
evolution of a product, from concept through delivery, growth,
Project or maturity, and to retirement.
Product? Project to modify
the product

A product is part of a

Project Usage, Sales, Impact

project; products have Project 3
Project 4
(Additions)
their own life cycles. Project to add (Revisions)
Project to Initial
features to the
Product management creation of the Project 5
product (Revisions)
represents a key product Project 2
integration point within (More Features)
Project 6
program and project (Revisions)
Project 1
management. (Initial Creation) Project 7
(Retirement)
Product owners are
responsible for
maximizing the value of Time
the product and Product
Life Cycle Introduction Growth Maturity Decline/Retirement
accountable for the end Phases
product. It begins when a It is then Growth in sales, The product is
product is introduced to which matures a typically
conceived, and the market. sales peak withdrawn from
development is the market
started Copyright 2023
© Project Management Institute, Inc. All rights reserved.
185
This material is being provided as part of a PMI® course.
Life Cycle and A project life cycle is a progression through a series of
Development developmental stages.
Approach

RT
A
ST
Which type of life cycle is

ES
BL
depicted here?

RA
VE
LI
DE
The project life cycle is based on the industry in which the
project is being conducted, the organization’s preferences
and the development approach, e.g., predictive, adaptive
or hybrid.

Copyright 2023
© Project Management Institute, Inc. All rights reserved.
186
This material is being provided as part of a PMI® course.
Project Life Cycle Types

•
Predictive
•
Adaptive
–Iterative
–Incremental
–Agile

•
Hybrid
187
 Predictive Life Cycles
A form of project life cycle in which the project scope, time, and cost are
determined in the early phases of the life cycle.

Types Characteristics

Predictive • Fixed requirements

• Activities performed once per project
Scope, Cost and Time
• Single delivery
Determined in early
phase of project

These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Seventh Edition, Project 188
Management Institute Inc., 2021
 A predictive life cycle takes advantage of things that are known and
proven. Detailed requirements and plans are created at the
Predictive Life beginning of the project. Each phase is completed fully before
Cycle starting the next.
FEASIBILITY
Visual
DESIGN

BUILD

TEST

DEVELOPMENT DEPLOY

• Predictive life cycles are very good when you have fixed
CLOSE
requirements and fixed expectations of those requirements.
There is a high element of control — and thus, predictability
— in projects that follow a predictive life cycle.
Copyright 2023© Project Management Institute, Inc. All rights reserved.
189
This material is being provided as part of a PMI® course.
Case Study

Copyright 2023© Project Management Institute, Inc. All rights reserved. 190
This material is being provided as part of a PMI® course.
Project Life Cycle Types

•
Predictive
•
Adaptive
–Iterative
–Incremental
–Agile

•
Hybrid
191
 Iterative Life Cycles
A project life cycle where the project scope is generally determined early in
the project life cycle, but time and cost estimates are routinely modified
as the project team's understanding of the product increases.

Types Characteristics

Adaptive Iterative • Dynamic requirements

• Scope determined • Activities repeated until correct
early • Single delivery
• Cost and Time
Routinely modified Example
Designing the AI software
for identifying community
requirements in the SLC
project

192
These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Seventh Edition, Project
Management Institute Inc., 2021
Iterative Life Cycles

An iterative life cycle allows feedback to improve and

modify unfinished product or result through several
iterations. It is optimized for learning.
Project scope determined early but time and cost estimates routinely modified 193
Iterative Life Cycles – for complex problems

Client requirements change with

time

Problems are Unknown +

Unfamiliar Creative Critical
Thinking Thinking
Problems Cannot Be Broken
Down Into Components

Problem Components Are

Interdependent + Require
Interdisciplinary Collaboration

Client
Development
Team 194
 ITERATIVE DEVELOPMENT
Redesign Customization
based on Vertical lift
feedback off capability
requirement
What is required Developed item/functionality
deployed to customers
How to develop

Ideas refined
based on Guided
feedback navigation
meeting
requirement
Customers provide
feedback
Changing requirements /
feedback fed into development Infra red
capability
meeting
requirement

195

Military Drone
Iterative Life
Cycle Initial Project and
Product Vision Military Drone
Example

ITERATION 1 ITERATION 2 ITERATION 3

Product /
Service
Delivered
Feedback Feedback
Backlog Backlog
Prioritization Prioritization

Vertical lift Guided Infra red

off capability navigation capability
meeting meeting meeting
requirement requirement of requirement of
of client client client

Copyright 2023
© Project Management Institute, Inc. All rights reserved.
196
This material is being provided as part of a PMI® course.
Project Life Cycle Types

•
Predictive
•
Adaptive
–Iterative
–Incremental
–Agile

•
Hybrid
197
Incremental Life Cycle
Iteration

Features are the “tools” you use within a system to

Functionality complete a set of tasks or actions. - online
purchase option

Deliverable Functionality of something is its usefulness, or

how well it does the job it's meant to do. – how the
option benefits the user
198
INCREMENTAL DEVELOPMENT

iPhone 12

iPhone 13

iPhone 14

199
INCREMENTAL DEVELOPMENT

Deliver
many
times

ITERATIVE DEVELOPMENT

Do
many
times

200
Project Life Cycle Types

•
Predictive
•
Adaptive
–Iterative
–Incremental
–Agile

•
Hybrid
201
 Agile Life Cycle [Adaptive]

An agile life cycle is both iterative and incremental. It has early

and continuous delivery of a valuable product, and allows
feedback and adaption to high degrees of change.
202
Requirements for Change Do
AND
Deliver
many times

Deliver BOTH FREQUENT DELIVERY AND HIGH

many times CHANGE REQUIREMENT TO BE MET

Do
many times
Case Study

Copyright 2023© Project Management Institute, Inc. All rights reserved. 204
This material is being provided as part of a PMI® course.
 Adaptive Approaches

Time-boxed: Requirements
Scrum (user stories) are batched
into releases and then those
releases are developed and
delivered within a set time
frame.

Continuous flow:
Requirements are prioritized
Kanban on the product backlog and
the team works on them
individually until they are
completed and handed to
the customer.
Copyright 2023© Project Management Institute, Inc. All rights reserved. 205
This material is being provided as part of a PMI® course.
 Single Delivery
Cadence A construction project to deliver a shed
Multiple Delivery
A project to develop a new drug may have
Refers to the timing and frequency of multiple deliveries, such as preclinical
delivery of project deliverables. submissions, Phase 1 trial results, Phase 2
• Single: One delivery at the end of the trial results, registration and then launch
project
• Multiple: Delivery separated into parts, Periodic Delivery
not necessarily sequentially A new software application may have
• Periodic: Like multiple deliveries, but on internal deliveries every two weeks, and then
a fixed schedule — e.g., monthly or periodically release the deliveries into the
bimonthly market.

Copyright 2022© Project Management Institute, Inc. All rights reserved. 206
This material is being provided as part of a PMI® course.
Scrum

• This is a commonly used agile framework that

offers suggestions for how work can be organized to
maximize value to the end user.
• Scrum is implemented at a product development
team level.
• Roles include a scrum master/senior scrum master
who facilitates ceremonies (meetings); iterations are
called sprints.
Remember that Agile frameworks focus on influencing the entire
organization, including leadership and company culture.
Copyright 2023© Project Management Institute, Inc. All rights reserved.
207
This material is being provided as part of a PMI® course.
 ROLES Scrum Framework
RULES

ARTEFACTS CEREMONIES ARTEFACTS

The Scrum Core Team
COMMUNICATES FULFILL REQUIREMENTS
REQUIREMENTS OF OF CUSTOMER /END
CUSTOMER/END USER USER

PRODUCT PROCESS DEVELOPMENT

FOCUS FOCUS FOCUS
Tasks of a Product Owner
Tasks of a Scrum Master

MAINTAIN FOCUS

COMMUNICATION

ADMINISTRATION
Tasks of Development Team
Development Team
 ROLES Scrum Framework
RULES

ARTEFACTS CEREMONIES ARTEFACTS

 What has been
done so far?
What problems
are we facing ?

What do we
need to plan
for in this
sprint

Have we met
How can
the
we improve
acceptance
in the next
criteria for
sprint?
the product ?
Sprint Planning

What do we need to plan for

in this sprint:
Tasks to be performed,
estimates for performing
these task
Daily Sprint

During the meeting, these questions

are answered by the development team
members daily at the same time and
place :
• What has been done since the last
meeting?
• What needs to be done before the next
meeting?
• What does anyone need help with?
Sprint Review

During the meeting, the Product Owner

and Development team establish
whether the acceptance criteria for the
product has been met
Sprint Retrospective

During the meeting, the

Development team retrospect
how to improve in the next
iteration
Sprint Retrospect
How can we improve in the next sprint?

Process Being Used

Knowledge Transfer on how to improve

Project Life Cycle Types

•
Predictive
•
Adaptive
–Iterative
–Incremental
–Agile

•
Hybrid
223
Hybrid Life Cycle
and
Development
Approach
• Accomplished by tailoring
• Combines adaptive and predictive life cycles
and/or development approaches
• Useful when requirements are uncertain or risky
• Also useful when deliverables can be
modularized, or when deliverables can be
developed by different project teams
• Uses iterative and incremental development
Copyright 2023© Project Management Institute, Inc. All rights reserved.
224
This material is being provided as part of a PMI® course.
 Hybrid Life Cycle Approach
[Combination of Predictive and Adaptive Life
Cycle]

Agile Agile Agile Predictive Predictive Predictive

DEVELOPMENT ROLL OUT

Design of layout for the lifestyle

center based on changing Construction of the lifestyle center
requirements of the community based on the design
and commercial tenants

• A combination of different types of life cycles to achieve certain goals

• Early process utilizes agile development life cycle, followed by a predictive roll out phase
• Used when faced with high degree of uncertainty, complexity and risk in the development
portion of the project followed by a defined, repeatable rollout phase 225
Combined Agile and Predictive Approach
SHORT DAILY STAND-UPS
Agile ITERATIONS FOR Agile Agile
EACH PHASE

Predictive Predictive Predictive

Gradual introduction of agile practices during the construction of the lifestyle

center based on the design

• A combination of both predictive and agile approaches may be used in the same project
• Occurs when a team is transitioning to agile using some approach such as short iterations,
daily standups etc.
• Using both predictive and agile approach is a common scenario
226
 Predominantly Predictive with some Agile
Components

TESTING ROOFING MATERIAL

Agile. Agile. Agile

Predictive Predictive Predictive

Testing suitability of roofing materials to conform with changing compliance-

based requirements – Use of agile or iterative within a predictive framework

• Majority of the project routine and predictable but some small element may be tackled
in an agile way
• Example testing of a new roofing material in an infrastructure project using different 227
installation trials
Largely Agile Approach with Predictive Component

INSTALLATION OF HARDWARE

Agile Agile Agile

Predictive Predictive

Design and development of AI based system configuration to analyze and meet

community requirements on an ongoing basis except for installation of hardware
upon purchase - Use of predictive within an adaptive lifecycle

• Largely agile approach with a predictive component

• May be used when a particular element is non negotiable or not executable
using an agile approach such as procurement process for hardware
228
Hybrid Project
Approaches:
Examples

Layout Design for Installation of hardware

community center before release

• Use agile or iterative practices within a predictive framework

• Use predictive artifacts or processes within an adaptive life cycle
• Business analysis techniques assist with requirements
management
Continuous
• New tools help identify complex elements in projects Knowledge Improveme
Transfer nt
• Organizational change management methods prepare for
transitioning project outputs into the organization Change
Management
Copyright 2023© Project Management Institute, Inc. All rights reserved.
229
This material is being provided as part of a PMI® course.
 • Support dynamic work environments
Tailored
Development • Discover value delivery requirements early

Approaches • Put stakeholders and the team in close collaboration

Advantages:
• Provide better feature or capability assessment — continuous
improvement and quality
• Improve organizational tolerance for change

Dynamic Work Environment

Focus on the output and key deliverables of an individual rather than the
number of hours spent at work.

Value delivery requirements

Business set up to deliver value to its customers
Servant leaders influence projects and encourage
the organization to think differently.
Copyright 2023© Project Management Institute, Inc. All rights reserved.
230
This material is being provided as part of a PMI® course.
 Project Elements to be tailored to create a hybrid project
What Can Be How will the work be
How will the people on
the project work
Tailored? performed? Does the
team need a lot of or
together? What kind of
management
continuous customer
approaches and team
feedback to develop
relationships should
the product?
evolve or be set?

Project Life Development Life Way of Working

Cycle Cycle How can the team
ensure a collaborative
How will the working environment and
team approach manage the knowledge
changes to asset for the project?
project work,
requirements? • Where will project
Knowledge Management governance be located—
inside the project? Is the
Project Management
Office (PMO) involved?
Change Will the team establish a
Who is responsible,
Management how is it measured governance board?
and how and when is Which committees or
all of this decided? Project stakeholders should be
involved?
Governance
Copyright 2023© Project Management Institute, Inc. All rights reserved.
Benefits This material is being provided as part of a PMI® course.
231

Management
 Summary: Project Management Development Approaches

Certainty About
Characteristics Change and Risk
Requirements

• Plan-driven
• Change possible, but
• Linear sequence of
controlled
activities, in phases High, from beginning
• Risks carefully studied
• Phase completion governed
and managed
Predictive by phase gates

• Change-driven • Built on assumption of

• Iterative or incremental Unclear or customer- high degree of change
• Timeboxed cadence driven, so needs further • High tolerance of risk
(iterations/sprints) or discovery with guardrails for risk
Adaptive continuous flow management

Tailored development approach, combining these elements

Hybrid
Copyright 2023© Project Management Institute, Inc. All rights reserved. 232
This material is being provided as part of a PMI® course.
Determining
Development Which development approach
Approaches to use for the project ??
What is required How is it developed
Guidance and • Deliverable type and the development approach influence the number and
Probing cadence for project deliveries.
Questions • The development approach and the desired delivery cadence determine
the project life cycle and its phases.

• How much unplanned work?

• How does the team prefer to work?
• What cadence suits our work?
• What does the customer want? Is incremental value delivery even
important to them?
• What’s our schedule? Do we want a steadier, building approach or a faster
pace?
• What’s our risk appetite/threshold?
• Are sprints helpful? Copyright 2023© Project Management Institute, Inc. All rights reserved.
233
This material is being provided as part of a PMI® course.
Assess
Complexity: Far from
agreement
The Stacey CHAOS
Fundamentally
Complexity risky
Model
-Ralph D. Stacey COMPLEX

Requirements
Adaptive
approaches
COMPLICATED work well here

Linear
SIMPLE approaches
Close to work well here
agreement
Close to Far from
certainty Technical Capability
certainty

Copyright 2023© Project Management Institute, Inc. All rights reserved.

234
This material is being provided as part of a PMI® course.
Factors to
Consider
When
Choosing an
Approach

Copyright 2023© Project Management Institute, Inc. All rights reserved. 235
This material is being provided as part of a PMI® course.
 The radar chart contains segments for Team Characteristics,
Organizational Culture and Project Characteristics
Suitability
Filter: is completed by answering questions about each of the 9 sub
domain topics. The questions are scored on a continuum from a
A Diagnostic good agile fit to better suited for plan driven approach. Scores in
Visual Based on the middle indicate a hybrid approach should be considered
Survey Data Is the team of a
suitable size to be
successful in adopting
agile?
Do its members have
the necessary
experience and access Is there a supportive
to business environment with
representatives to be buy-in for the
successful? approach and trust
in the team?
Are there high rates of
change?
Is incremental delivery
possible?
Copyright 2023© Project Management Institute, Inc. All rights reserved.
How critical is the This material is being provided as part of a PMI® course.

project?
Examples of Suitability Filter Assessments

237
12/5/23

Stable Turbulent
Strategic Alignment

PLAN
BASED HYBRID APPROACH
APPROACH CHANGE BASED
APPROACH
12/5/23
Key Takeaways – Determine Project Approach

• A product is part of a project; products have their own life cycles

• Product management represents a key integration point within program and
project management.
• A predictive life cycle is associated with requirements that are known and
proven
• An adaptive life cycle is associated with requirements that are evolving and
unproven
• Adaptive life cycle types include
- Iterative: activities repeated until correct, single delivery
- Incremental: quick delivery required, many deliveries
- Agile: combination of iterative and incremental delivery
240
12/5/23
Key Takeaways – Determine Project Approach

• Project Life Cycle Types – Predictive, Adaptive and Hybrid

• Adaptive approaches include but not limited to:
- Scrum: requirements batched into releases delivered within a set time
- Kanban: requirements delivered continually after being prioritized
• Scrum Ceremonies
– Sprint Planning
– Daily Scrum
– Sprint Review
– Sprint Retrospective
• Scrum Roles
– Product Owner
– Scrum Master
241

– Development Team
Development
Approach and Project professionals use a _______________________ or method, which can be
Life Cycle predictive, iterative, incremental, adaptive, or hybrid, to create and evolve a
Terminology ___________, which is a unique and verifiable product, result, or capability to
Quiz perform a service.

• Deliverable
• Development A project passes through a series of logically related activities, called _______
approach from its start to its completion. This entire process is called a _________.
• Phases
• Life cycle
Acceptance of a ___________ is required to complete a process, phase, or
project.

Copyright 2023
© Project Management Institute, Inc. All rights reserved.
242
This material is being provided as part of a PMI® course.
It is necessary to ensure minimum changes are made to the scope and high
stakeholder alignment for some projects. Such projects are characterized by
having [Q36]

A. Adaptive life cycles

B. Detailed upfront planning

C. High-level plans for the initial requirements that are progressively

elaborated to meet different stakeholder requirements

D. A well-defined and detailed monitoring and control mechanism

Company P’s IT transformation project has three (3) deliverables, and they have the following
characteristics, according to the project team:

- Deliverable 2 has strictly scheduled milestones, with no expected variation in the timeline.
- Requirements for deliverables 1 and 3 will change quickly during development.

Which project lifecycle should the project manager use for this project? [#154-2]

A. Select a fully agile project model, with a common user story and three-week sprints.

B. Select a waterfall project model for deliverables, with firm milestones and change
control procedures.

C. Select a hybrid project model; position deliverable 2 as a single agile sprint embedded in an
overall waterfall project.

D. Select a hybrid project model; position deliverable 2 as a single waterfall phase

embedded in an overall agile project.
A worldwide product launch will likely be delayed by the lengthy analysis
needed to assess impact of new European Union (EU)
regulations. Perishable ingredients and factory bookings would be lost. The
executive committee decides to postpone the launch in the EU, but maintain
launch dates in all non-EU countries.
How should the project manager re-plan the project to support both
launches? (7)

a. Use the contingency budget to cover sunken costs for the EU launch and adjust plans
for the non-EU launch

b. Re-plan the project as a fully agile set of iterations and ensure that fixed milestones are
documented on the burn-down chart.

c. Plan analysis activities and tollgates for the EU launch and crash the schedule for the
non-EU launch

d. Embed a set of iterations to analyze and develop the EU product, while maintaining
dates for the non-EU launch
A project manager is using a suitability assessment tool to find the right project approach
for a new project. The tool ranks on the following criteria:

- Change: rate of change to requirements

- Criticality: Criticality of product, processes and impact of defects
- Buy-in: Executive support for adaptive methods
- Team size: Number of members in project team
- Team skill: Project team experience
- Access: Direct collaboration/feedback with clients/sponsors

Which combination of these factors would be best suited to a fully agile project
approach? (#57)

(a). (b). (c). (d).

Change: medium Change: high Change: low Change: low
Criticality: high Criticality: low Criticality: medium Criticality: low
Buy-in: medium Buy-in: high Buy-in: high Buy-in: high
Team size: medium Team size: low Team size: low Team size: medium
Team skill: high Team skill: high Team skill: medium Team skill: high
Access: high Access: medium Access: high Access: high
An emergency vaccine roll-out project should deploy vaccination centres as
soon as confirmed locations are booked. Factors such as delayed batch
shipments, safety protocols, and target age groups may block the deployment
at the last minute. However, the deployment process does not vary after
passing the tollgate to begin setup at a new location.
Which project approach would best support the goal to maximize the
number of centres deployed? (#4)

(a) A fully predictive life cycle where each centre deployment is a phase subject to
dependencies.

(b) A set of agile deployment iterations embedded in a predictive set of processes.

(c) A set of predictive deployment sequences embedded in an agile set of

processes.
(d) A fully agile life cycle where dependencies and deployments are combined
in each iteration
Sharma Management International
DEVELOPMENT LIFE CYCLE
WHAT IS A PROJECT?

WHAT IS A PROGRAM? PROJECT LIFE CYCLE

WHAT IS A PORTFOLIO? PRODUCT LIFE CYCLE

WHAT IS INVOLVED IN A
PROJECT?

REQUIREMENTS FOR
STRATEGIC ALIGNMENT
OVERRIDING PURPOSE – ADD VALUE HOW TO SUSTAIN EFFORTS
ENVIRONMENT TO ADD VALUE?
CONSIDERATIONS GOVERNANCE
FRAMEWORKS
STATIC PLAN BASED
CONSIDERATIONS COMPLIANCE
CHANGE BASED
DYNAMIC
ORGANIZATIONAL 248
HYBRID BASED STRUCTURE
UNDERLYING PRINCIPLES COMBINATION TYPES
 Sales
Quality CREATE VALUE
Expertise

Cost
SUSTAIN VALUE CREATED
RIGHT Time
FOCUS Effort
ALIGNMENT TO OUTCOME

GOVERNANCE COMPLIANCE

RIGHT APPROACH
ADAPTATION TO
BUSINESS ENVIRONMENT

AUTHORIZATION FOR
DECISION MAKING
Seek to Be
understand Proactive

APPROPRIATE PROJECT
APPROACH
RIGHT BASIS Continual Take
Improvement