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Project Integra4on Management The Project Management Cer4ficate Program

1 ©2014 Interna4onal Ins4tute for Learning, Inc.

PMP cross-cutting skills have been updated in the PMP Exam Content Outline – June 2015 (PDF of the Examination Content Outline - June 2015 can be found under the Resources Tab).

Learn about why the PMP exam is changing in 2016.

Download the new Exam Content Outline to study cross-cutting skills here:http://www.brainshark.com/pmiorg/2015PMPExamChange

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©2014 Interna4onal Ins4tute for Learning, Inc.

Participant’s Notes:

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Participant’s Notes: Review these learning objec4ves carefully.

The learning content contained within this module is based on these learning objec4ves.

We will cover the key process interac4ons of project charter development, project management plan development, project execu4on, and change control.

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Project Integra4on Management includes the processes and ac4vi4es needed to iden4fy, define, combine, unify, and coordinate the various processes and project management ac4vi4es within the Project Management Process Groups.

PMBOK® Guide -‐ FiQh Edi4on, Glossary

Project Integra4on Management includes processes that combine the knowledge areas. No4ce that this knowledge area deals with documents and processes designed to combine and coordinate informa4on about the project. The documents produced here are used throughout the project as a guide to performing and controlling the en4re project. It includes documents like the charter and the project management plan. It also includes processes like managing and controlling the project work, change control and proper closing of the project. Project Integra4on Management:

•  Provides a systema4c approach to managing the project •  Ensures common focus among stakeholders

•  Aligns resources with project needs and priori4es •  Ensures work on the project is blended into ongoing opera4ons or work within a phase is blended

into work in subsequent phases

Note: The arrow on this slide, and process slides in subsequent modules, does not portray a linear flow of these processes. Many processes will be performed in an itera4ve manner and not necessarily in the order depicted.

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Participant’s Notes: An understanding of one’s role as the project manager and the role of the project sponsor is essen4al to ensure early project integra4on. The project sponsor is the person or group that provides the financial resources, in cash or in kind, and should:

Champion the project

Serve as a spokesperson to higher levels of management to gather support throughout the organiza4on

Promote the benefits the project will deliver to the receiving organiza4on

Lead the engagement and selec4on process, un4l the project is formally authorized

Play a significant role in the development of the ini4al scope and charter

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Project management is extremely itera4ve and requires a high degree of involvement with stakeholders. Tradeoffs are constantly made between compe4ng constraints, which must be managed to ensure project success. Success should also include ensuring that the project is fit for the purpose intended and that rela4onships are built and maintained throughout.

In order for a project to be successful, the project team must:

•  Select appropriate processes Use a defined approach

Communicate and engage with stakeholders

Comply with requirements

Balance the compe4ng constraints

Adapted from PMBOK® Guide – FiQh Edi4on, p. 47

Dr. Harold Kerzner narrows the compe4ng demands to the “triple constraints” that include:

•  Time

•  Cost •  Performance/Technology

If the project is to be accomplished by an outside company, Dr. Kerzner describes a fourth constraint: Good Customer Rela4ons.

Adapted from Project Management: A Systems Approach to Planning, Scheduling, and Controlling, 11th Edi4on, by Harold Kerzner, Ph.D., pp. 6 and 7

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Participant’s Notes: Most organiza4ons work in a mul4-‐project environment requiring good stewardship of resources. The group of projects within a department or organiza4on are oQen referred to as the project porgolio. According to the PMBOK® Guide – FiQh Edi4on, Glossary, a porgolio refers to projects, programs, sub-‐porgolios, and opera4ons managed as a group to achieve strategic objec4ves. What process does your organiza4on follow to select projects for a porgolio?

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Participant’s Notes: During project ini4a4on, high-‐level requirements may be provided by stakeholders that are external to the project. The charter provides authority for the project to move forward, names the project manager and authorizes the project manager to expend resources on behalf of the project. Note that the ini4a4ng process is not only performed at the beginning of the project, but also at the beginning of each phase to validate the charter.

In the ini4a4ng processes the project manager meets with the sponsor, customer and other stakeholders to assess the feasibility of new products or services given assump4ons about the environment, available resources, and other projects within the organiza4on. The project manager should also consider constraints and how constraints can impact the feasibility of the project, such as a limited budget, regulatory requirements, 4ming and so forth.

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•  A business case provides the jus4fica4on for the organiza4on to take on a project. The elements of a business case include, but are not limited to:

•  Business need

•  Feasibility

•  Impact •  Cost savings or growth

Business case is developed in response to:

Market demand. These projects have to do with the core reason the company is in business. They can include product development, providing a new service or adding a new distribu4on channels.

Organiza4onal need. These projects are internally driven. They can include business process improvement, system upgrades or opera4ons improvement.

Customer request. A customer request usually involves either responding to a procurement document (such as a Request for Proposal or Request for Quote), or responding to a sales opportunity.

Technological advance. A technology project can be as simple as an upgrade or as complex as a scien4fic research and development project.

Legal requirement. Some4mes new laws, regula4ons or code requirements drive the need for a new project.

Ecological impacts. Many projects are ini4ated to clean up the environment, or find a “greener” way to conduct business.

Social need. Social needs are the reason for many government projects and programs. Responding to a disaster is also a project that is based on a social need.

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Participant’s Notes: Break-‐even analysis is a profit planning method that determines the point at which the cash ouglows and cash in-‐flow become equal. In business this is a major milestone. The objec4ve here is to determine at what point in 4me the cash ouglows (the expenditures incurred for implemen4ng the product) will equal the cash in-‐flows. If the 4me frame is within the acceptable range for the organiza4on, the project may be selected.

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Participant’s Notes: The payback period is the exact length of 4me needed for a firm to recover its ini4al investment as calculated from cash inflows. Payback period is the least precise of all capital budge4ng methods because the calcula4ons are in dollars and are not adjusted for the -me value of money.

Time value of money …currency today is worth more than it will be one year from now.

Adapted from Project Management: A Systems Approach to Planning, Scheduling, and Controlling, 11th Edi4on, by Harold Kerzner, Ph.D., p. 721-‐722

Compare the result of this method that does not apply the 4me value of money to Net Present Value in the next slide.

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Participant’s Notes: Net present value (NPV) is a capital budge4ng method that equates the discounted cash flow, expressed in terms of the present value (PV) against the ini4al investment. The NPV requires calcula4ng the PVs of the cash in-‐flows for each year of the project. The PVs are added together to produce a sum of the present values, and then the ini4al investment is then subtracted to produce the resul4ng NPV. Ideally, the NPV should be greater than zero. An NPV of less than zero indicates that the investment will actually result in a nega4ve return on the investment.

Present Value (PV) = Future Value (F) x Factor [1 / (1+i)n]

•  i = discount rate per period (cost of capital) •  n = number of periods (may be years)

Refer to page 722 and 723 in Project Management: A Systems Approach to Planning, Scheduling, and Controlling, 11th Edi4on, by Harold Kerzner, Ph.D.

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The PMBOK® Guide – FiQh Edi4on describes the key benefit of this process as “defining the project and formally commitng to it.”

PMBOK® Guide -‐ FiQh Edi4on, p. 66

An idea for a project is developed or a need is discussed, and a project request is prepared for submiual to the body responsible for project selec4on that may be a board, approval team, or project governance board. The originators of the project request will provide sufficient informa4on and the appropriate level of detail that is necessary to determine if the project will be approved.

The informa4on about the project must address the following ques4ons:

•  What is the driving need for the project? For example, the project will improve the turnaround 4me on an order fulfillment process.

•  What is the connec4on to the corporate strategy? For example, the project will posi4on the company for entry into a new market.

•  What problem will it solve or opportunity will it exploit? For example, the project will improve the quality of a product that has resulted in customer dissa4sfac4on.

•  What benefits will be realized? For example, the project will increase revenue or result in substan4al savings.

If there is agreement to select the project, given the benefits presented merit adding the project into the project porgolio, the project charter is the instrument that documents that decision, demonstrates the organiza4on’s commitment to the project, and empowers the project manager to lead the effort.

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Participant’s Notes: The PMBOK® Guide – FiQh Edi4on defines the following for this first Project Integra4on Management process:

Inputs

•  Project statement of work •  Business case

•  Agreements

•  Enterprise environmental factors •  Organiza4onal process assets

Tools & Techniques

•  Expert judgment

•  Facilita4on techniques Outputs

•  Project charter

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Participant’s Notes: Project managers will need to employ effec4ve mee4ng management skills, including conflict resolu4on and problem solving while developing the project charter.

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Participant’s Notes: The primary purpose of the project charter is to:

Authorize the project

Authorize the project manager

Authorize the project manager to expend resources on behalf of the project

The project charter documents not only the informa4on in the bulleted list above, but also includes or references:

•  High-‐level project descrip4on

•  High-‐level requirements (including business and compliance requirements)

•  High-‐level risks

•  Summary milestone schedule

•  Summary budget •  Stakeholder list

•  Assump4ons and constraints •  Project approval requirements

•  Assigned project manager, responsibility and authority level

•  Name and authority of the sponsor or other person(s) authorizing the project charter Adapted from PMBOK® Guide – FiQh Edi4on,

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Participant’s Notes: The PMBOK® Guide – FiQh Edi4on describes the key benefit of this process as having “a central document that defines all project work.”

PMBOK ® Guide -‐ FiQh Edi4on, p. 72

The project management plan defines how the project is executed, monitored and controlled and closed.

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Participant’s Notes: The PMBOK® Guide – FiQh Edi4on defines the following for the second Project Integra4on Management process:

Inputs

•  Project charter •  Outputs from other processes

•  Enterprise environmental factors

•  Organiza4onal process assets Tools & Techniques


•  Facilita4on techniques Outputs

•  Project management plan

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Participant’s Notes: Not everything in the PMBOK® Guide should be used on every project. Nor should it always be applied in the same manner. The project manager, along with the project team, should fit the techniques and rigor to the situa4on. Over-‐applica4on of the processes in the PMBOK® Guide or of an organiza4onal methodology can lead to unnecessary bureaucracy, needless paperwork and wasted effort.

Experience is some4mes the best judge of what will work and not work in applied situa4ons. Remember to always apply your knowledge and understanding in context.

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Participant’s Notes: The project management plan is the document that describes how the project will be executed, monitored, and controlled.

PMBOK® Guide – FiQh Edi4on, Glossary

The project management plan integrates and consolidates all of the subsidiary management plans and baselines from the planning processes. Project baselines include, but are not limited to scope, schedule and cost baselines. For example, in IT projects there may be other baselines that need to be set, such as a “frozen” set of requirements to allow development to move forward. Subsidiary plans are derived from the ten knowledge areas and discuss “how” these elements should be managed.

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Participant’s Notes: When developing the project management plan, expert judgment is u4lized to:

•  Tailor the process to meet project needs

•  Develop technical and management details to be included in the plan

•  Determine resources and skills levels needed to perform the work

•  Define the level of configura4on management to apply on the project

•  Determine requirements and techniques for stakeholder communica4on

•  Determine which project documents will be subject to the formal change control process

Adapted from PMBOK® Guide – FiQh Edi4on, p. 77

Communicate the project management plan to gain approval by the sponsor and other key stakeholders. Communicate to the team with a kick off mee4ng.

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Participant’s Notes: The PMBOK® Guide – FiQh Edi4on describes the key benefit of this process as “providing overall management of the project work.”


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Participant’s Notes: The PMBOK® Guide – FiQh Edi4on defines the following for the third Project Integra4on Management process:

Inputs

•  Project management plan •  Approved change requests

•  Enterprise environmental factors

•  Organiza4onal process assets Tools & Techniques


•  Project management informa4on system •  Mee4ngs

Outputs

•  Deliverables •  Work performance data

•  Change requests •  Project management plan updates

•  Project documents updates

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Participant’s Notes: Direct and Manage Project Work uses expert judgment and a project management informa4on system as the key tools and techniques to implement the process. Expert judgment is used to assess the inputs, and this judgment and exper4se is applied to all technical and management details. The project manager and project team will leverage the project management informa4on system in their efforts to:

•  Produce deliverables

•  Collect and distribute work performance data

•  Manage change The system is comprised of many automated tools, such as a scheduling soQware, configura4on management system, informa4on collec4on and distribu4on system, or web interfaces to other online systems, as well as other project management processes.

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Participant’s Notes: It was once said “ a project without scope changes indicates an unhappy customer”

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Participant’s Notes: The PMBOK® Guide – FiQh Edi4on describes the key benefit of this process as “understanding the current state and the forecasts for the project.”

PMBOK® Guide – FiQh Edi4on, p. 86

When monitoring and controlling project work, the project team is concerned with measuring the work performance against the approved baselines. Any variance noted needs to be summarized into meaningful metrics and reported to the proper stakeholders.

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The PMBOK® Guide – FiQh Edi4on defines the following for the fourth Project Integra4on Management process:

Inputs

•  Project management plan •  Schedule forecasts

•  Cost forecasts

•  Validated changes •  Work performance informa4on


Tools & Techniques

•  Expert judgment •  Analy4cal techniques

•  Project management informa4on system

•  Mee4ngs Outputs

•  Change requests

•  Work performance reports •  Project management plan updates


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Monitoring project work results in gaining insight into the project health when the project team engages in ac4vi4es. The team will use the project management plan, performance reports, enterprise environmental factors, organiza4onal process assets and expert judgment to achieve the desired outcomes.

In many of the Tools and Techniques included in the PMBOK® Guide – FiQh Edi4on you will see references to “Expert Judgment.” This includes thoughts, opinions and experiences inside and outside the project team. For example, there might be an individual within the organiza4on that has specialized knowledge per4nent to the current project. Other than expert judgment, there are various analy4cal methods that include regression analysis and causal analysis…just to name a few.

Once the analysis is complete, a par4cular ac4on might be prescribed or necessary.

In the PMBOK® -‐ FiQh Edi4on, the term control, in many cases, implies monitoring.

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Participant’s Notes: Cost and schedule forecasts are compared to the baselines in the project management plan to calculate variances and determine if the variances are acceptable.

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Participant’s Notes: These techniques provide a way to extrapolate the future based on past experiences and happenings. We will review variance analysis in more detail in the coming slides.

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Participant’s Notes: Here are some examples:

•  Requirements – changes by the customer •  Schedules – slippage of a task

•  Costs – actual cost is different from planned

•  Risk – new risks that may require re-‐planning •  Quality – changes in quality due to poor

control •  Adherence to standards – failure to meet

standards •  Scope (product or service defini4on) –

unauthorized work or scope creep •  Resources (skill level, availability) – untrained

resources

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Participant’s Notes: To manage problems effec4vely, a problem-‐solving and decision-‐making process is needed. The process will keep the team focused on the issues and drive the team to iden4fy solu4ons. There are seven general steps in a problem-‐solving/decision-‐making process.

You cannot determine the true status of a project just by looking at the schedule. Similarly, you cannot determine the status of a project just by looking at the expenditures. Spending 30 percent of the budget does not mean that you have completed 30 percent of the work. Comple4ng 30 percent of the work does not mean that you spent 30 percent of the budget.

To accurately determine status, the project manager must look at the cost and schedule together. For example, assume the schedule variance is favorable, but the cost variance is unfavorable. You are ahead of schedule but over budget. Possible causes are an accelera4on of the work, use of higher salaried labor, use of over4me, adding more resources, or overlapping ac4vi4es. In another example, the schedule variance is unfavorable but, cost variance is favorable. You are behind schedule but under budget. A possible cause for this situa4on might be that there are not enough resources working on the project at the

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Participant’s Notes: The basic and most effec4ve method for iden4fying and managing variances and controlling project ac4vi4es is communica4on. A communica4on plan developed during the project kickoff and ini4a4on process should include informa4on about how change will be managed and how variances will be detected and acted upon. For example, a communica4on plan for repor4ng and managing project performance should include:

•  Iden4fica4on of the people who are responsible for repor4ng performance

•  The stakeholders who will receive these reports

•  The types of reports to be prepared and delivered (status reports, budget reports)

•  Tolerance range for varia4on •  When reports must be prepared and sent

•  How the reports will be sent (e.g., via e-‐mail)

•  Where the reports will be filed

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Participant’s Notes: The PMBOK® Guide – FiQh Edi4on describes the key benefit of this process as “considering all changes in an integrated fashion to reduce risk.”


The Perform Integrated Change Control process is conducted from project incep4on through comple4on.

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Participant’s Notes: The PMBOK® Guide – FiQh Edi4on defines the following for the fiQh Project Integra4on Management process:

Inputs

•  Project management plan •  Work performance reports

•  Change requests


Tools & Techniques


•  Mee4ngs

•  Change control tools Outputs

•  Approved change requests

•  Change log •  Project management plan updates


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Participant’s Notes: Changes may be requested by any stakeholder involved in the project. And the process requires coordina4on of changes across the en4re project, which includes:

•  Review, approving, or denying all recommended and preven4ve ac4ons

•  Documen4ng the complete impact of a change request, e.g. a proposed schedule change will affect the cost baseline.

•  Insuring baseline integrity by upda4ng the project management plan in response to approved changes and communica4ng those approved changes to the team

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Participant’s Notes: Expert judgment and change control mee4ngs are the tools and techniques used to achieve desired outcomes. A configura4on management system with integrated change control provides a standardized, effec4ve, and efficient way to centrally manage approved changes and baselines. Configura4on management is focused on the specifica4on of both the deliverables and the process while change control is focused on iden4fying, documen4ng and controlling changes to the project and product baselines.

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Participant’s Notes: Configura4on iden4fica4on selects and iden4fies the configura4on item provided, which is the basis for the product configura4on, defini4on and verifica4on, labeling of products and documents, management of changes, and maintaining accountability

Configura4on status accoun4ng records and reports on when appropriate data about the configura4on item should be provided. The informa4on that is recorded and reported includes the approved configura4on iden4fica4ons, the statuses of proposed changes to configura4on items, and the implementa4on statuses of approved changes.

Configura4on verifica4on and audit ensures correctness of the composi4on of configura4on items and that corresponding changes are documented, assessed, approved, tracked, and correctly implemented. This enhances the certainty that the func4onal requirements defined in the configura4on documenta4on are sa4sfied.

Adapted from PMBOK® Guide – FiQh Edi4on, pp. 96-‐97

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Participant’s Notes: A change control board is responsible for mee4ng and reviewing the changes requests and approving or rejec4ng those change requests. The roles and responsibili4es of these boards are clearly defined and are agreed upon by appropriate stakeholders. All change control board decisions are documented and communicated to the stakeholders for informa4on and follow-‐up ac4ons.

The desired outcome of Perform Integrated Change Control is to follow the change management plan to appropriately process change requests; maintain the project baseline, by upda4ng the plan and establishing a new baseline, if needed; update other documenta4on, as a result.

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Participant’s Notes: The PMBOK® Guide – FiQh Edi4on describes the key benefit of this process as “providing lessons learned, formally ending the project, and releasing resources.”


One of the most oQen overlooked process, is that of closing a phase or the en4re project. There can be several reasons for closing a project. These include comple4on of requirements and termina4on by stakeholders. The goal of closing a phase or a project is the orderly handoff of deliverables to another performer or end user. If a stakeholder terminates the project for cause, then the goal might include salvaging parts of the project to be reused or recapture/avoid some of the project costs.

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Participant’s Notes: The PMBOK® Guide – FiQh Edi4on defines the following for the sixth Project Integra4on Management process:

Inputs

• Project management plan• Accepted deliverables

• Organiza4onal process assetsTools & Techniques

• Expert judgment

• Analy4cal techniques

• Mee4ngsOutputs

• Final product, service, or result transi4on

• Organiza4onal process assets updates

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Participant’s Notes: Expert judgment is applied when performing administra4ve closure ac4vi4es. These experts ensure Historical informa4on and the lessons learned knowledge base are referenced to achieve the desired outcomes, which are to transi4on the final product, service or result and to update the organiza4onal process assets.

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Participant’s Notes: Projects provide valuable informa4on for improving:

•  Standards

•  Es4ma4ng •  The way business is conducted

Informa4on gained from the lessons learned process becomes an organiza4onal process asset for future phases or projects.

All of this informa4on is intellectual property and must be captured for future use. Lessons learned reviews are the way to obtain this informa4on, and this is achieved by conduc4ng a postmortem analysis mee4ng. The four ques4ons in the bulleted list above should be the focus of the mee4ng and must be addressed. Addi4onally, cri4cal informa4on, i.e. the key performance indicators (KPIs) and the cri4cal success factors (CSFs) should be captured, documented and disseminated.

Adapted from Project Management: A Systems Approach to Planning, Scheduling, and Controlling, 11th Edi4on, by Harold Kerzner, Ph.D., p. 1103

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Participant’s Notes: All product and project deliverables need to be properly transi4oned or archived. Project ar4facts may be stored in paper form, or electronically. The history of the project needs to be indexed and organized so the informa4on is easy to locate for future project or for audi4ng purposes. Many industries have statutes that require the project records be available for many years aQer the project is complete.

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At the end of the project or the end of a project phase the project manager should assess how well the project delivered the stated objec4ves in the charter and the how well it met the perceived cost benefit informa4on from the business case. The ini4al business case should be reviewed and the actual costs and benefits should be entered to determine if the financial business goals were achieved.

Status informa4on on the final schedule and budget should be analyzed to determine the cause of variances and the final project outcome. The project management plan should be reviewed to determine if the approach to the project was appropriate and if it was followed.

In some cases it is appropriate to conduct interviews with team members to provide an robust project review. The project manager can also have a third party conduct a project debrief or lessons learned session. Another technique is to conduct a 360 review of the stakeholders, such as the sponsor, customer, end user, team members, the PMO and any other relevant stakeholders. Informa4on from the 360 can be synthesized to provide a qualita4ve assessment of the project

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RESPONSIBILITY STANDARDS

We make decisions and take ac4ons based on the best interests of society, public safety, and the environment.

We can demonstrate taking ac4ons based on the best interests of society, public safety and the environment when we ini4ate a project for social good. Addi4onally, we can look for ways to contribute to society as we plan the approach for our project.

We accept only those assignments that are consistent with our background, experience, skills, and qualifica4ons.

As project managers, we are assigned to projects. If we don’t feel we are qualified for the project, it is our responsibility to communicate our concern. Where possible, we should endeavor to educate ourselves to uphold and beuer our qualifica4ons for all projects.

We inform ourselves and uphold the policies, rules, regula4ons and laws that govern our work, professional, and volunteer ac4vi4es.

During project ini4a4on, we discover enterprise environmental factors that impact our project, such as regula4ons, standards and policies. It is our responsibility to inform ourselves and our team and uphold those regula4ons.

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Project Integra4on Management

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The Project Management Cer4ficate Program

pmp cross-cutting skills have been updated in the pmp ... about why the pmp exam is changing in...

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