THE PMP® EXAM CONTENT FROM THE INITIATING THE PROJECT PERFORMANCE DOMAIN COVERED IN THIS CHAPTER INCLUDES THE FOLLOWING:
Initiating is the first of the five project management process groups as defined by the Project Management Institute. Initiating acknowledges that a new project (or the next phase within a project) should begin. This process group culminates in the publication of a project charter and a stakeholder register.
Before diving into the Initiating process group, we’ll provide a high-level review of the ten Project Management Knowledge Areas, which is another way of classifying the project management processes. This review offers a high-level look at the Knowledge Areas and insight as to how they are tied into the five process groups.
The Initiating process group accounts for 13 percent of the questions on the PMP® exam.
Throughout the project life cycle, a project utilizes a collection of processes that can be classified by the five process groups mentioned in Chapter 1, “Project Foundation.” They are Initiating, Planning, Executing, Monitoring and Controlling, and Closing. Processes can also be classified into ten categories called the Project Management Knowledge Areas, which bring together processes that have characteristics in common. According to the PMBOK® Guide, the ten Knowledge Areas are as follows:
Processes within the Knowledge Areas are grouped by commonalities, whereas processes within the project management process groups are grouped in more or less the order in which you perform them. Once again, these are two ways of classifying the same set of project management processes. Processes interact with other processes outside of their own Knowledge Area and, in many cases, are repeated multiple times as needed.
The Project Integration Management Knowledge Area consists of seven processes. Table 2.1 lists the processes and the process group for each. The Project Integration Management Knowledge Area involves identifying and defining the work of the project and combining, unifying, and integrating the appropriate processes. This is the only Knowledge Area that contains processes across all five of the project management process groups. The processes within Project Integration are tightly linked because they occur continually throughout the project, meaning that they are iterative in nature.
TABLE 2.1 Project Integration Management
Process Name | Project Management Process Group |
Develop Project Charter | Initiating |
Develop Project Management Plan | Planning |
Direct and Manage Project Work | Executing |
Manage Project Knowledge | Executing |
Monitor and Control Project Work | Monitoring and Controlling |
Perform Integrated Change Control | Monitoring and Controlling |
Close Project or Phase | Closing |
The Project Integration Management Knowledge Area involves the following:
The following tasks are typical of those performed during work covered by the Project Integration Management Knowledge Area:
Figure 2.1 shows the highlights of the Knowledge Area’s purpose.
The Project Scope Management Knowledge Area consists of six processes. Table 2.2 lists the processes and the process group for each. These processes are interactive and define and control what is strategically included versus intentionally excluded from the project scope.
TABLE 2.2 Project Scope Management
Process Name | Project Management Process Group |
Plan Scope Management | Planning |
Collect Requirements | Planning |
Define Scope | Planning |
Create WBS | Planning |
Validate Scope | Monitoring and Controlling |
Control Scope | Monitoring and Controlling |
The Project Scope Management Knowledge Area encompasses the following:
Project Scope According to the PMBOK® Guide, project scope identifies the work that needs to be accomplished to deliver a product, service, or result with the specified features and functionality. This is typically measured against the project management plan.
Product Scope Product scope addresses the features and functionality that characterize the product, service, or result of the project. This is measured against the product specifications to determine successful completion or fulfillment. Product scope entails the following:
The following tasks are typical of those performed during work covered by the Project Scope Management Knowledge Area:
Keep in mind that the Project Scope Management Knowledge Area is concerned with making sure the project includes all the work required to complete the project—and only the work required to complete the project successfully.
Figure 2.2 shows the highlights of the Knowledge Area’s purpose.
The Project Schedule Management Knowledge Area consists of six processes. Table 2.3 lists the processes and the process group for each. On small projects, the Sequence Activities, Estimate Activity Durations, and Develop Schedule processes are completed as one activity.
TABLE 2.3 Project Schedule Management
Process Name | Project Management Process Group |
Plan Schedule Management | Planning |
Define Activities | Planning |
Sequence Activities | Planning |
Estimate Activity Durations | Planning |
Develop Schedule | Planning |
Control Schedule | Monitoring and Controlling |
The Project Schedule Management Knowledge Area involves the following:
The flow of the Project Schedule Management Knowledge Area is very intuitive. First, the project activities are identified and put into the order in which they will occur. Next, duration of activities is estimated. Finally, the project schedule is developed and controlled as the project work moves forward.
Figure 2.3 shows the highlights of the Knowledge Area’s purpose.
The Project Cost Management Knowledge Area consists of four processes. Table 2.4 lists the processes and the process group for each. For small projects, the Estimate Costs process and Determine Budget process may be combined into a single process. Remember that your ability to influence cost is greatest at the beginning of the project. Minimal resources have been used, in comparison with other stages. Therefore, changes made during these processes have a greater impact on cost reduction, and your opportunities to effect change decline as you move deeper into the project.
TABLE 2.4 Project Cost Management
Process Name | Project Management Process Group |
Plan Cost Management | Planning |
Estimate Costs | Planning |
Determine Budget | Planning |
Control Costs | Monitoring and Controlling |
The Project Cost Management Knowledge Area involves the following:
Life-cycle costing and value engineering are used to improve deliverables. The following is a brief overview of these two techniques:
Life-Cycle Costing Life-cycle costing is an economic evaluation technique that determines the total cost of not only the project (temporary costs) but also owning, maintaining, and operating something from an operational standpoint after the project is completed and turned over.
Value Engineering Value engineering is a technique that looks for alternative product ideas to make certain the team is applying the lowest cost for the same or better-quality results. So, for example, if the original engineer suggests a custom part for a step of the production process, a value engineering review might suggest an alternative that can use a readily available, lower-cost standard part that will produce the same output for a better value.
These are typical tasks performed during work covered by the Project Cost Management Knowledge Area:
Figure 2.4 shows the highlights of the Knowledge Area’s purpose.
The Project Quality Management Knowledge Area consists of three processes. Table 2.5 lists the processes and the process group for each.
TABLE 2.5 Project Quality Management
Process Name | Project Management Process Group |
Plan Quality Management | Planning |
Manage Quality | Executing |
Control Quality | Monitoring and Controlling |
The Project Quality Management Knowledge Area involves the following:
The following tasks are typical of those performed during work covered by the Project Quality Management Knowledge Area:
Figure 2.5 shows the highlights of the Knowledge Area’s purpose.
The Project Resource Management Knowledge Area consists of six processes. These processes identify, help acquire, and manage the resources needed for project success. Table 2.6 lists the processes and the process group for each. In addition to other resources, developing the project team is a key aspect of this Knowledge Area. Because the makeup of each team is different and the stakeholders involved in the various stages of the project might change, project managers use different techniques at different times throughout the project to manage these processes.
TABLE 2.6 Project Resource Management
Process Name | Project Management Process Group |
Plan Resource Management | Planning |
Estimate Activity Resources | Planning |
Acquire Resources | Executing |
Develop Team | Executing |
Manage Team | Executing |
Control Resources | Monitoring and Controlling |
The Project Resource Management Knowledge Area involves the following:
The Project Resource Management Knowledge Area also includes enhancing the skill and efficiency of the project team, which, in turn, improves project performance.
Keep in mind that the project management team and project team are different. The project management team is the group of individuals responsible for planning, controlling, and closing activities. They are considered to be the leadership team of the project. The project team is made up of all the individuals that have assigned roles and responsibilities for completing the project. They are also referred to as the project staff.
Physical resource management focuses on assigning and utilizing materials, equipment, and supplies that are needed for successful completion of the project. It is important for organizations to have data on demands, configuration, and supply of resources.
Figure 2.6 shows the highlights of the Knowledge Area’s purpose.
The Project Communications Management Knowledge Area consists of three processes. Together, these processes connect people and information for successful communication throughout the project. Table 2.7 lists the processes and the process group for each.
TABLE 2.7 Project Communications Management
Process Name | Project Management Process Group |
Plan Communications Management | Planning |
Manage Communications | Executing |
Monitor Communications | Monitoring and Controlling |
The Project Communications Management Knowledge Area involves the following:
As mentioned in Chapter 1 of this book, a good project manager spends up to 90 percent of their time communicating. Overall, much of the project manager’s work involves managing project communication.
Figure 2.7 shows the highlights of the Knowledge Area’s purpose.
The Project Risk Management Knowledge Area consists of seven processes, some of which may be combined into one step. Table 2.8 lists the processes and the process group for each. Risks include both threats to and opportunities within the project.
TABLE 2.8 Project Risk Management
Process Name | Project Management Process Group |
Plan Risk Management | Planning |
Identify Risks | Planning |
Perform Qualitative Risk Analysis | Planning |
Perform Quantitative Risk Analysis | Planning |
Plan Risk Responses | Planning |
Implement Risk Responses | Executing |
Monitor Risks | Monitoring and Controlling |
The Project Risk Management Knowledge Area involves the following:
According to the PMBOK® Guide, a risk is an uncertain event or condition that has a positive or negative effect on one or more project objectives. Every project has some level of uncertainty and, therefore, some level of risk. Keep in mind that a risk is different from an issue. A risk may or may not occur. But when a negative risk materializes and impacts the project, it becomes an issue that must be handled.
Figure 2.8 shows the highlights of the Knowledge Area’s purpose.
The Project Procurement Management Knowledge Area consists of three processes. Table 2.9 lists the processes and the process group for each. While reviewing the procurement processes, remember that you are viewing the process from the perspective of the buyer and that sellers are external to the project team. Together, these three processes allow you to manage the purchasing activities of the project and the life cycle of the procurement contracts.
TABLE 2.9 Project Procurement Management
Process Name | Project Management Process Group |
Plan Procurement Management | Planning |
Conduct Procurements | Executing |
Control Procurements | Monitoring and Controlling |
The Project Procurement Management Knowledge Area involves purchasing goods or services from vendors, contractors, suppliers, and others outside the project team.
Keep in mind that a contract can be simple or complex; contracts can be tailored to the needs of the project. The PMBOK® Guide defines a contract as an agreement that binds the seller to provide the specified products or services; it also obligates the buyer to compensate the seller as specified.
Figure 2.9 shows the highlights of the Knowledge Area’s purpose.
The Project Stakeholder Management Knowledge Area consists of four processes. Table 2.10 lists the processes and the process group for each. This Knowledge Area is concerned with both internal and external stakeholders.
TABLE 2.10 Project Stakeholder Management
Process Name | Project Management Process Group |
Identify Stakeholders | Initiating |
Plan Stakeholder Engagement | Planning |
Manage Stakeholder Engagement | Executing |
Monitor Stakeholder Engagement | Monitoring and Controlling |
The Project Stakeholder Management Knowledge Area is concerned with identifying all of the stakeholders of the project. These processes also assess stakeholder needs, expectations and involvement on the project.
According to the PMBOK® Guide, stakeholder engagement and satisfaction should be managed as a key project objective.
Figure 2.10 shows the highlights of the Knowledge Area’s purpose.
Before an organization decides to embark on a project, several considerations must take place, such as an assessment of the various potential projects. As part of performing a project assessment, management will need to evaluate existing needs and demands, perform feasibility studies, and use project selection methods to help in making good decisions.
Project assessment should entail a careful evaluation of information carried out through meetings with the sponsor, customer, and other subject matter experts. This group of key individuals will then determine whether the new products or services are feasible under the existing assumptions and constraints.
Project initiation is the formal recognition that a new project, or the next phase in an existing project, should begin and resources may be committed to the project. A project may come about as a result of a need, demand, opportunity, or problem. Once those needs and demands are identified, the next logical step may include performing a feasibility study to determine the viability of the project.
Needs and demands represent opportunities, business requirements, or problems that need to be solved. Management must decide how to respond to these needs and demands, which will, more often than not, initiate new projects. According to the PMBOK® Guide, projects come about as a result of one of the following 13 needs or demands:
Market Demand The demands of the marketplace can drive the need for a project. Some companies must initiate projects in order to take advantage of temporary and long-term market changes.
Strategic Opportunity / Business Need An organization may respond to an internal need that could eventually affect the bottom line. For example, this may include addressing company growth or even the need to downsize.
Customer Request A new project may emerge as a result of internal or external customer requests.
Stakeholder Demands Stakeholders may require that a new output be produced by an organization.
Technological Advance New technology often requires companies to revamp their products as a way of taking advantage of the latest technology.
Business Process Improvement The organization conducts a value streaming exercise in conjunction with a practice like Lean Six Sigma.
Competitive Forces Industry pressures like price reductions on a product may lead to the need for an organization to reduce production costs to keep competitive.
Material Issues A sinkhole in a highly used freeway might result in a project that corrects any problems and restores the road to safe operation.
Legal Requirement Both private industry and government agencies generate new projects as a result of laws passed during a legislative season.
Environmental Consideration Many organizations are undergoing greening efforts to reduce energy consumption, save fuel, reduce their carbon footprint, and so on.
Political Changes A changing of the guard for elected officials brings new priorities and changes in funding.
Economic Changes Positive or negative changes in the economy can result in the initiation of a project.
Social Need Projects arise out of social needs, such as a developing country that offers medical supplies and vaccination in response to a fast-spreading disease.
Some organizations require that a feasibility study take place prior to making a final decision about starting a project. Feasibility studies may be conducted as separate projects, as subprojects, or as the first phase of a project.
When evaluating the feasibility of new products or services, it’s generally a good idea to meet with the sponsor, customer, and other subject matter experts. Here are some of the reasons that a feasibility study may be undertaken:
As shown in Figure 2.11 , there are a variety of selection methods an organization may choose to utilize. Selection methods help organizations decide among alternative projects and determine the tangible benefits to the company of choosing or not choosing a project. Project selection methods are also used to evaluate and choose between alternative ways to implement the project.
Depending on the organization, a steering committee may be responsible for project review, selection, and prioritization. A steering committee is a group comprising senior managers and, sometimes, midlevel managers who represent each of the functional areas in the organization.
There are generally two categories of selection methods:
For the exam, simply know that mathematical models, also known as constrained optimization methods, use the following in the form of algorithms:
Benefit measurement methods, also known as decision models, employ various forms of analysis and comparative approaches to make project decisions. These methods include comparative approaches, such as these:
Let’s take a closer look at the benefit measurement methods.
Cost-benefit analysis, also known as cost analysis or benefit analysis, compares the cost to produce the product, service, or result of the project with the benefit that the organization will receive as a result of executing the project.
For weighted scoring models, the project selection committee decides on the criteria that will be used on the scoring model. Each of these criteria is then assigned a weight depending on its importance to the project committee. More-important criteria should carry a higher weight than less-important criteria. Each project is then rated on a numerical scale, with the higher number being the more desirable outcome to the company and the lower number having the opposite effect. This rating is then multiplied by the weight of the criteria factor and added to other weighted criteria scores for a total weighted score. The project with the highest overall weighted score is the best choice.
For example, if Project A contains a weighted score of 31, Project B contains a weighted score of 42, and Project C contains a weighted score of 40, which project would you choose? The correct answer is Project B, since it has the highest weighted score.
The final benefit measurement methods involve a variety of cash flow analysis techniques:
Figure 2.12 provides an overview of the cash flow analysis techniques.
Let’s take a closer look at these techniques.
The payback period is the length of time it takes the company to recoup the initial costs of producing the product, service, or result of the project. This method compares the initial investment to the cash inflows expected over the life of the product, service, or result.
Money received in the future is worth less than money received today. Therefore, you can calculate what the value of funds will be in the future by using the following formula:
FV = PV (1 + i)n
This formula says that the future value (FV) of the investment equals the present value (PV) times (1 plus the interest rate) raised to the value of the number of time periods (n) the interest is paid.
The discounted cash flow technique compares the value of the future cash flows of the project to today’s dollars. It is literally the reverse of the FV formula. To calculate discounted cash flows, you need to know the value of the investment in today’s terms, or the present value (PV). PV is calculated using the following formula:
PV = FV ÷ (1 + i)n
To calculate discounted cash flow for the projects you are comparing for selection purposes, apply the PV formula, and then compare the discounted cash flows of all the projects against each other to make a selection.
Net present value (NPV) allows you to calculate an accurate value for the project in today’s dollars. NPV works like discounted cash flows in that you bring the value of future monies received into today’s dollars. With NPV, you evaluate the cash inflows using the discounted cash flow technique applied to each period in which the inflows are expected instead of in one sum. The total present value of the cash flows is then deducted from your initial investment to determine NPV. NPV assumes that cash inflows are reinvested at the cost of capital.
Here are some important notes on NPV calculations:
Internal rate of return (IRR) is the discount rate when the present value of the cash inflows equals the original investment. When choosing between projects or when choosing alternative methods of doing a project, projects with higher IRR values are generally considered better than projects with low IRR values.
Keep the following in mind:
During the Initiating process group, the high-level project scope is defined and documented. As the project moves into the Planning process group, the high-level scope is further elaborated and defined. This is typically based on the business and compliance requirements and is documented to meet the customer’s expectations. According to the PMBOK® Guide, the high-level project scope is contained within the project charter.
The Initiating process group focuses on documenting not only the high-level project scope, as mentioned previously, but also high-level risks, assumptions, and constraints. This information will be documented within the project charter and will be largely based on the existing environment, historical information, and expert judgment.
As you may have noticed, this process group is concerned with setting a foundation and common understanding of what the project is setting out to achieve. The Planning process group will later expand on this high-level information by working out the granular details.
Creating the project charter is an important initial step to beginning any project because it formally initiates the project within an organization and gives authorization for resources to be committed to the project. The creation of this document involves gathering and analyzing stakeholder requirements, which will lead the way for properly identifying and documenting the project and product scope, milestones, and deliverables.
The project charter document is created out of the first process within the Project Integration Management Knowledge Area, called Develop Project Charter. This document attempts to not only formally recognize the project but also identify project limitations and propose an implementation approach. Until the project charter is created and formally approved, many organizations do not recognize the project.
The project charter documents the name of the project manager and gives that person the authority to assign organizational resources to the project. It also documents the business need, justification, and impact; describes the customer’s requirements; sets stakeholder expectations; and ties the project to the ongoing work of the organization. The project is officially authorized when the project charter is signed.
Figure 2.13 shows the inputs, tools and techniques, and outputs of the Develop Project Charter process.
For the exam, you should know the following inputs of the Develop Project Charter process:
Let’s look at each of these inputs more closely.
Business Documents Business documents describe the project’s objectives and how the project will contribute to the business’s goals and include documents such as the business case and the benefits management plan. The business case describes the product, service, or result the project was undertaken to complete from a business perspective. The project benefits management plan describes the positive aspects that the project will create and for whom.
Business Case The purpose of a business case is to understand the business need for the project and determine whether the investment in the project is worthwhile. Performing an economic feasibility study is a great first step in establishing the validity of the benefits and is used as the foundation for authorization of project activities. This document is typically created prior to project initiation and is used throughout the project lifecycle. Most business case documents contain the following items:
Project Benefits Management Plan Where the business case describes the need for a project, the purpose of the project benefits management plan is to describe how and when the benefits of the project can be obtained. According to the PMBOK® Guide, a project benefit is defined as an outcome of actions, behaviors, products, services, or results that provide value to the sponsoring organization as well as to the project’s intended beneficiaries. This document is typically created early in the project life cycle. Most project benefits management plans contain the following items:
Agreements The agreements input is applicable only when the organization you are working for is performing a project for a customer external to the organization. The agreement is used as an input to this process because it typically documents the conditions under which the project will be executed, the time frame, and a description of the work.
Enterprise Environmental Factors Enterprise environmental factors refer to the factors outside the project that may have significant influence on the success of the project. According to the PMBOK® Guide, the environmental factors, in relation to this process, include but are not limited to the following items:
Organizational Process Assets Organizational process assets are the organization’s policies, guidelines, procedures, plans, approaches, or standards for conducting work, including project work.
These assets include a wide range of elements that might affect several aspects of the project. In relation to this process, organizational process assets refer to the following items:
The Develop Project Charter process has four tools and techniques that you should be familiar with:
Let’s look at each element more closely:
Expert Judgment The concept behind expert judgment is to rely on individuals, or groups of individuals, who have training, specialized knowledge, or skills in the areas you’re assessing. These individuals may be stakeholders, consultants, other experts in the organization, subject matter experts, the project management office (PMO), industry experts, or technical or professional organizations.
Data Gathering There are several data-gathering techniques that can be used, and the PMBOK® Guide lists three: brainstorming, focus groups, and interviews.
Interpersonal and Team Skills Project managers rely on people skills to help bring results to the project. This technique focuses on the interpersonal and team skills needed for project success. This may include, but isn’t limited to, the following skills:
Meetings During the creation of the charter, meetings are a key activity for identifying objectives, success criteria, deliverables, requirements, milestones, and other information as needed.
In addition, you should be familiar with who is considered to be a key stakeholder. Key project stakeholders include the following individuals:
Project Manager The project manager is the person who assumes responsibility for the success of the project. The project manager should be identified as early as possible in the project and ideally should participate in writing the project charter. The following are examples of what the role of project manager entails:
Project Sponsor The project sponsor is usually an executive in the organization who has the power and authority to make decisions and settle disputes or conflicts regarding the project. The sponsor takes the project into the limelight, gets to call the shots regarding project outcomes, and funds the project. The project sponsor should be named in the project charter and identified as the final authority and decision maker for project issues.
Project Champion The project champion is usually someone with a great deal of technical expertise or industry knowledge regarding the project who helps focus attention on the project from a technical perspective. Unlike the sponsor, the project champion doesn’t necessarily have a lot of authority or executive powers.
Functional Managers Project managers must work with and gain the support of functional managers in order to complete the project. Functional managers fulfill the administrative duties of the organization, provide and assign staff members to projects, and conduct performance reviews for their staff.
The Develop Project Charter process results in two outputs: the project charter and assumption log.
Project Charter According to the PMBOK® Guide, a useful and well-documented project charter should include at least these elements:
Assumption Log The business case typically identifies high-level assumptions, both at a strategic and at an operational level. The assumption log is a tool used to record all assumptions and constraints throughout the project life cycle, especially as they evolve to more lower-level activity and task assumptions.
The project charter isn’t complete until sign-off has been received from the project sponsor, senior management, and key stakeholders. Sign-off indicates that the document has been read by those signing it and that they agree with the contents and are on board with the project. The signature signifies the formal authorization of the project. Acceptance of the charter is also important to formalize the assignment of the project manager and their level of authority.
The last step in this process is publishing the charter. Publishing, in this case, simply means distributing a copy of the project charter to the key stakeholders, the customer, the management team, and others who might be involved with the project. Publication can take several forms, including printed format or electronic format distributed via the company email system or the company intranet.
Identifying stakeholders and performing analysis on key stakeholders is an important part of setting the stage for a successful project outcome. Stakeholder analysis is carried out through the Identify Stakeholders process and involves the use of brainstorming, interviewing, and several data-gathering techniques.
By performing stakeholder identification and analysis, the project manager can better document stakeholder expectations and ensure that the expectations are aligned with the project objectives. It also serves as a way of gaining project support.
Identify Stakeholders is the first process of the Project Stakeholder Management Knowledge Area and part of the Initiating process group. This process involves identifying and documenting all the stakeholders on the project, including their interests, impact, and potential negative influences on the project. Stakeholder identification should occur as early as possible in the project and continue throughout its life cycle.
Figure 2.14 shows the inputs, tools and techniques, and outputs of the Identify Stakeholders process.
There are seven inputs within the Identify Stakeholders process:
Project Charter Within this process, the project charter provides the list of stakeholders along with other individuals or organizations that are affected by the project.
Business Documents The benefits management plan and business case help inform about who are project stakeholders.
Project Management Plan While the project management plan is not available during initial stakeholder identification, once the project management plan is developed, it can be helpful for this process, specifically the communications management plan and the stakeholder engagement plan.
Project Documents Since stakeholder identification occurs throughout the project, project documents like the change and issue log can be an input to this process.
Agreements The parties to any agreement can be stakeholders, and therefore, agreements serve as an input to this process.
Enterprise Environmental Factors The following enterprise environmental factors are utilized within this process:
Organizational Process Assets The following organizational process assets pertain to this process:
The tools and techniques of Identify Stakeholders are expert judgment, data gathering, data analysis, data representation, and meetings.
Expert Judgment Expert judgment is used in combination with stakeholder analysis to ensure that stakeholder identification is comprehensive. This may involve interviewing key stakeholders that are already identified and senior management, subject matter experts, or other project managers.
Data Gathering Data gathering for this process would focus on, but is not limited to, the use of questionnaires, surveys, and brainstorming.
Data Analysis Data analysis techniques used for this process include but are not limited to the following:
Stakeholder Analysis During stakeholder analysis, you’ll want to identify the influences stakeholders have in regard to the project and understand their expectations, needs, and desires. From there, you’ll derive more specifics regarding the project goals and deliverables. Stakeholders are often concerned with their own interests and what they have to gain or lose from the project.
According to the PMBOK® Guide, two steps are involved in stakeholder analysis:
Document Analysis Document analysis assesses available project documentation, as well as lessons learned from previous projects, to help inform potential project stakeholders.
Data Representation This technique may be used in the Identify Stakeholder process and includes, but is not limited to, stakeholder mapping and representation, identifying the potential impact or support each stakeholder may have on the project, and then classifying them according to impact so that you can devise a strategy to deal with them. The PMBOK® Guide lists four classification models for classifying the power and influence of each stakeholder on a simple four-square grid:
Meetings Meetings are often used as a mechanism for performing stakeholder analysis. Project managers often gather and analyze information on roles, positions, and interests of stakeholders through meetings.
The Identify Stakeholders process has four outputs: stakeholder register, change requests, project management plan updates, and project documents updates.
Stakeholder Register A stakeholder register captures all of the information about the stakeholders in one place. This general information includes things like the department they work in, contact information, knowledge levels, and influence levels. In addition, the stakeholder register contains at least the following:
Change Requests Early in the project there aren’t likely to be any change requests. However, as the project progresses and stakeholder identification continues, new information about stakeholders may result in a change request to the product, project management plan, or project documents.
Project Management Plan Updates Similar to change requests, there are not likely to be any updates at the beginning of the project. As stakeholder identification continues throughout the project, updates to the project management plan documents are likely, including to the following documents:
Project Documents Updates This process may result in updating project documents such as the following:
As a recap, the Initiating process group kicks off the project and results in the creation of the project charter and the stakeholder register. This phase acknowledges that a new project or phase should begin.
But before a project formally exists, several scenarios may unfold:
After a project is selected, a project charter is created (using the Develop Project Charter process) and signed, formally authorizing the project. By the end of the Develop Project Charter process, the project charter contains several documented elements, including the justification for the project, high-level requirements and description, summary milestone schedule and budget, and the sponsor and project manager (if already selected).
Once the project charter is generated, project stakeholders can be identified. This occurs in the Identify Stakeholders process. You learned that stakeholders, along with their interests and levels of influence, are important to identify and define early on within the project. As a result, a stakeholder register, which identifies, assesses, and classifies the individual stakeholders, is created.
Figure 2.15 shows the potential path of a new project, from its inception and through the initiating phase.
In this chapter, we also covered the ten Project Management Knowledge Areas, which are summarized in Table 2.11.
TABLE 2.11 Project Management Knowledge Areas summary
Knowledge Area | Description |
Project Integration Management | Concerned with coordinating all the aspects of the project management plan to accomplish the project objectives |
Project Scope Management | Concerned with managing the project scope and defining and controlling what is (and isn’t) included within the project |
Project Time Management | Concerned with completing the project on time |
Project Schedule Management | Concerned with completing the project within budget |
Project Quality Management | Concerned with ensuring that the project satisfies the needs for which it was undertaken |
Project Resource Management | Concerned with organizing, developing, and managing the project team and physical resources |
Project Communications Management | Concerned with connecting people and information together to result in successful communications throughout the project |
Project Risk Management | Concerned with increasing the probability and impact of positive events and decreasing the probability and impact of adverse events |
Project Procurement Management | Concerned with managing the purchasing activities of the project and the life cycle of the procurement contracts |
Project Stakeholder Management | Concerned with identifying project stakeholders, assessing their needs and expectations, and managing their engagement |
With the initiating phase taken care of, we are ready to move into the next phase of the project’s life cycle: Planning.
Identify Stakeholders, Plan Stakeholder Engagement, and Monitor Stakeholder Engagement are all processes of which Knowledge Area?
Ron is the project manager of a pharmaceutical company that develops multiple products to help fight diseases affecting children. There are currently two new drugs that the company is planning to develop within the next two years. Ron has been tasked with determining which of the two drugs has the greatest opportunity for success in today’s marketplace. This is an example of:
Your manager has recently given you the responsibility of selecting the next project, which you will manage as the project manager. There are currently three projects on hold to choose from. Using the weighted scoring models method, you determine that Project A has a weighted score of 16, Project B has a weighted score of 14, and Project C has a weighted score of 17. Which project do you choose?
What type of project selection method is multi-objective programming?
What is $5,525 four years from now worth today given a 10 percent interest rate?
Which of the following best describes the characteristics of the product, service, or result of the project?
All of the following are inputs to the Develop Project Charter process except:
Maryann has just wrapped up the final draft of the project charter and emailed a copy to the appropriate individuals. A kick-off meeting in two days has already been scheduled to complete the project charter, with all those involved having accepted the meeting invitation. What will Maryann need done during the kick-off meeting to complete the project charter?
All of the following are inputs to the Identify Stakeholders process except:
The stakeholder register can best be described as:
Polly is a project manager tasked with leading a project that will establish business continuity management practices for a major retail coffee chain. With the guidance of the sponsor, she drafts a document that authorizes her to begin assigning resources to the project once signed. What process will Polly likely perform next?
Power/interest grid, salience model, and influence/impact grid are all examples of which of the following techniques?
All of the following are processes of the Project Scope Management Knowledge Area except:
Beans by the Dozen is a company that ships precooked beans to restaurants in the Western United States. Recently, the company has decided to expand their operation to the northern regions of the country. A business case was developed, citing market demand, and a project manager informally assigned to formalize and kick off the project. What is the project manager likely to do first?
Which of the following options best defines project scope?
Product scope is measured against the product specifications whereas project scope is measured against:
Beans by the Dozen is a company that ships precooked beans to restaurants in the Western United States. June is the project manager assigned to lead the expansion of the company’s operation. As part of performing stakeholder analysis, she lists out all of the known stakeholders and includes various notes about each within a register. What is June likely to do next?
Life-cycle costing is defined as:
Which of the following Knowledge Areas is responsible for linking the processes across the project management process groups?
Polly is a project manager tasked with leading a project that will establish business continuity management practices for a major retail coffee chain. With the guidance of the sponsor, she drafts a document that authorizes her to begin assigning resources to the project once signed. What process is Polly performing?
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