- PMP
- The Project Management Professional certification from PMI, validating the ability to lead and direct projects.
- PMI
- The Project Management Institute, the body that issues the PMP and publishes the PMBOK Guide.
- PMBOK Guide
- PMI's A Guide to the Project Management Body of Knowledge; the 7th edition is principle-based.
- Agile Practice Guide
- A PMI/Agile Alliance guide to agile and hybrid approaches, referenced by the PMP.
- PMP exam domains
- People (42%), Process (50%), and Business Environment (8%) on the current exam.
- PMP exam length
- 180 questions in 230 minutes with one optional 10-minute break (current exam).
- PMP content mix
- About half the questions are agile or hybrid; the other half are predictive.
- PMP passing standard
- Pass/fail set by an expert panel; no fixed % cut score; per-domain ratings are reported.
- PMP score ratings
- Above Target, Target, Below Target, and Needs Improvement, reported per domain.
- PMP eligibility
- 35 contact hours plus either a 4-year degree + 36 months or a HS/associate + 60 months leading projects.
- PMP validity & renewal
- Valid for 3 years; renew with 60 PDUs in PMI's Talent Triangle.
- New PMP exam (July 2026)
- Rebalances weights to People 33%, Process 41%, Business Environment 26%; same three domains.
- PMI mindset
- Be proactive, serve and empower the team, deliver value, and confront problems collaboratively.
- 12 PMBOK 7 principles
- Stewardship, team, stakeholders, value, systems thinking, leadership, tailoring, quality, complexity, risk, adaptability & resilience, change.
- 8 performance domains
- Stakeholders, team, development approach & life cycle, planning, project work, delivery, measurement, uncertainty.
- Tailoring
- Deliberately adapting the approach, processes, and artifacts to fit the specific project context.
- Project life cycle
- The phases a project moves through from start to close; can be predictive, iterative, incremental, or adaptive.
- Sponsor
- The person or group that funds and champions the project and is accountable for enabling its success.
- Triple constraint
- The balance among scope, schedule, and cost (with quality at the center).
- Process groups (predictive)
- Initiating, planning, executing, monitoring & controlling, and closing.
- Knowledge areas (PMBOK 6)
- Integration, scope, schedule, cost, quality, resource, communications, risk, procurement, and stakeholders.
- Talent Triangle
- PMI's skill model: Ways of Working, Power Skills, and Business Acumen.
- PDU
- A Professional Development Unit; 60 are needed every three years to maintain the PMP.
- Agile vs. predictive scope
- Agile flexes scope and fixes time/cost; predictive fixes scope and flexes time/cost.
- Servant leadership
- A leadership style where the project manager serves the team — removing impediments, providing what they need, and developing people — to enable a self-organizing, high-performing team.
- Tuckman ladder
- The team-development model: forming, storming, norming, performing, and adjourning.
- Forming (Tuckman)
- The first team stage: members come together, polite and uncertain; the leader provides direction.
- Storming (Tuckman)
- The stage where conflict surfaces as members assert ideas; the leader coaches and resolves conflict.
- Norming (Tuckman)
- The stage where norms and trust form and the team begins to work effectively together.
- Performing (Tuckman)
- The stage where the team is high-performing and largely self-organizing; the leader delegates.
- Adjourning (Tuckman)
- The final stage where work completes and the team disbands; recognize and release members.
- Emotional intelligence
- The ability to recognize and manage your own emotions and to read and influence others' emotions; the basis of leading people.
- Components of emotional intelligence
- Self-awareness, self-regulation, motivation, empathy, and social skill.
- RACI chart
- A responsibility assignment matrix marking who is Responsible, Accountable, Consulted, and Informed for each task.
- Responsible (RACI)
- The person who does the work to complete the task.
- Accountable (RACI)
- The single person who owns the outcome and signs off — exactly one per task.
- Consulted (RACI)
- Subject-matter experts whose two-way input is sought before a decision.
- Informed (RACI)
- People kept up to date one-way on progress and decisions.
- Conflict-resolution modes
- Collaborate, compromise, smooth (accommodate), force (direct), and withdraw (avoid).
- Collaborating / problem-solving
- Working together to a win-win that addresses everyone's needs — the most effective, durable conflict mode and the usual PMP answer.
- Compromising
- Each party gives up something for a partial win — a lose-lose middle ground.
- Smoothing / accommodating
- Emphasizing agreement over differences and conceding your position; a temporary fix.
- Forcing / directing
- Pushing one viewpoint at others' expense — a fast win-lose outcome that breeds resentment.
- Withdrawing / avoiding
- Retreating from or postponing a conflict, leaving it unresolved; can buy a cooling-off period.
- Best conflict mode on the PMP
- Collaborating (problem-solving / confronting) — address the root cause and build a win-win.
- Stakeholder
- Any individual, group, or organization that can affect, be affected by, or perceive itself affected by the project.
- Stakeholder engagement steps
- Identify stakeholders, analyze (power/interest/influence), plan engagement, then manage and monitor engagement.
- Power/interest grid
- A tool classifying stakeholders by power and interest to decide how closely to engage each one.
- Manage closely (power/interest)
- High power, high interest — partner with and actively involve them.
- Keep satisfied (power/interest)
- High power, low interest — meet their needs without overloading them.
- Keep informed (power/interest)
- Low power, high interest — communicate often; they care about the project.
- Monitor (power/interest)
- Low power, low interest — minimal effort.
- Team charter
- A document the team creates defining its values, agreements, ground rules, and how it will operate.
- Ground rules
- Explicit, team-agreed expectations for behavior and collaboration, enforced by the whole team.
- Self-organizing team
- A team that decides internally how to accomplish its work rather than being directed task-by-task.
- Virtual team
- A team whose members work from different locations; needs extra-clear communication and tools.
- Motivation theory: Maslow
- Maslow's hierarchy: physiological, safety, social, esteem, and self-actualization needs.
- Motivation theory: Herzberg
- Hygiene factors (e.g., pay, conditions) prevent dissatisfaction; motivators (e.g., achievement, recognition) drive satisfaction.
- Theory X vs. Theory Y
- Theory X assumes people dislike work and need control; Theory Y assumes people are self-motivated and seek responsibility.
- Coaching vs. mentoring
- Coaching builds specific skills/performance now; mentoring is a longer-term relationship developing the whole person.
- Negotiation (project agreements)
- Reaching agreement through good-faith discussion; aim for win-win outcomes that preserve the relationship.
- Active listening
- Fully concentrating on, understanding, and responding to a speaker to build shared understanding and trust.
- Empowering the team
- Delegating authority and decisions to the team so members own outcomes — central to servant leadership.
- Removing impediments
- A servant-leader duty: clearing blockers and obstacles so the team can keep delivering value.
- Building shared understanding
- Ensuring stakeholders and the team have a common view of goals, scope, and success.
- Leadership vs. management
- Leadership inspires and aligns people toward a vision; management organizes and controls work and resources.
- Halo effect
- Assuming someone good at one thing will be good at another (e.g., promoting a strong engineer to manager).
- Servant-leader behaviors
- Listen, empathize, coach, facilitate, remove impediments, and develop the team's autonomy.
- Team performance via EI
- Use emotional intelligence to read morale, defuse tension, and motivate the team.
- Source of most conflict
- Schedules, priorities, and resources cause more project conflict than personality clashes.
- When to escalate conflict
- Only after collaborative resolution genuinely fails or the issue is beyond your authority.
- Delegation
- Entrusting authority and decisions to a capable team while staying available to remove blockers.
- Brainstorming
- A group technique to generate many ideas without early judgment, used in planning and risk ID.
- Nominal group technique
- Brainstorming plus voting to rank ideas by priority.
- Delphi technique
- Anonymous rounds of expert input with feedback to build consensus and reduce bias.
- Multicriteria decision analysis
- Scoring options against weighted criteria to choose objectively.
- Conflict is...
- Inevitable and can be healthy when managed openly; the PM addresses it early.
- Recognition and rewards
- Reinforce desired behavior; should be timely, fair, and valued by the recipient.
- Co-location
- Placing the team in one physical space (e.g., a war room) to boost communication.
- Tight matrix
- Co-location of project team members; unrelated to organizational structure type.
- Stakeholder register
- A document listing stakeholders with their interests, influence, and engagement needs.
- Salience model
- Classifies stakeholders by power, urgency, and legitimacy.
- Engagement assessment matrix
- Compares current vs. desired stakeholder engagement (unaware → leading).
- Forming the team charter
- The team itself creates it, which builds buy-in and ownership of the rules.
- Building trust
- Be transparent, consistent, and reliable; trust is the foundation of a high-performing team.
- Negotiation BATNA
- Best Alternative To a Negotiated Agreement — your fallback if talks fail; strengthens your position.
- Project
- A temporary endeavor undertaken to create a unique product, service, or result, with a definite start and end.
- Operations vs. project
- Operations are ongoing and repetitive; a project is temporary and produces a unique result.
- Program
- A group of related projects managed together to gain benefits not available from managing them separately.
- Portfolio
- A collection of projects, programs, and operations managed as a group to meet strategic objectives.
- Project charter
- The document that formally authorizes the project, names the PM, and grants authority to use resources.
- Integration management
- The PM's unique work of coordinating all the subsidiary plans and processes into one coherent whole.
- Project management plan
- The approved, integrated document defining how the project is executed, monitored, and closed.
- Work breakdown structure (WBS)
- A hierarchical decomposition of the total project scope into deliverables and work packages.
- Work package
- The lowest level of the WBS — the unit you estimate, schedule, and assign.
- 100% rule (WBS)
- The WBS captures all the project work and only the project work; nothing outside it is in scope.
- Scope baseline
- The approved scope statement, WBS, and WBS dictionary used to measure scope performance.
- Scope creep
- Uncontrolled changes or additions to scope without going through change control.
- Gold plating
- Adding features or work the customer didn't request — wasted effort and added risk.
- Progressive elaboration
- Adding detail to plans as more is known; healthy, unlike uncontrolled scope change.
- Requirements traceability matrix
- A grid linking each requirement to its origin and deliverable to ensure all are met.
- Integrated change control
- The single process for reviewing, approving, and managing changes across the project.
- Change control board (CCB)
- A chartered group that reviews and approves or rejects requested changes.
- Change request
- A formal proposal to modify a document, deliverable, or baseline; routed through change control.
- Baseline
- An approved version of scope, schedule, or cost against which performance is measured; changed only via change control.
- Critical path
- The longest path of dependent activities through the schedule; the shortest time to finish the project.
- Float / slack
- How long an activity can be delayed without delaying a later milestone.
- Total float
- Delay an activity can absorb without delaying the project end date.
- Free float
- Delay an activity can absorb without delaying the next (successor) activity.
- Critical-path activities float
- Zero total float — any delay delays the whole project.
- Crashing
- Compressing the schedule by adding resources to critical-path activities; increases cost.
- Fast tracking
- Compressing the schedule by running activities in parallel that were sequential; increases risk.
- Lead
- An overlap that lets a successor activity start before its predecessor finishes.
- Lag
- A required delay between a predecessor and a successor activity.
- Milestone
- A significant point or event in the project with zero duration.
- Schedule network diagram
- A visual of activities and their logical dependencies used to find the critical path.
- Cost baseline
- The approved, time-phased budget (excluding management reserve) used to measure cost performance.
- Management reserve
- Budget held for unknown-unknowns; not in the cost baseline; needs management approval to use.
- Contingency reserve
- Budget for identified (known) risks; part of the cost baseline.
- Earned value management (EVM)
- An integrated method combining scope, schedule, and cost to measure and forecast performance.
- Planned value (PV)
- The authorized budget for the work scheduled to be done by a given date.
- Earned value (EV)
- The budgeted cost of the work actually completed by a given date.
- Actual cost (AC)
- The real cost incurred for the work completed by a given date.
- Budget at completion (BAC)
- The total authorized budget for the project's planned work.
- Cost variance (CV)
- CV = EV − AC. Negative means over budget; positive means under budget.
- Schedule variance (SV)
- SV = EV − PV. Negative means behind schedule; positive means ahead.
- Cost performance index (CPI)
- CPI = EV ÷ AC. Greater than 1 is under budget; less than 1 is over budget.
- Schedule performance index (SPI)
- SPI = EV ÷ PV. Greater than 1 is ahead of schedule; less than 1 is behind.
- Estimate at completion (EAC)
- Forecast total cost. When current performance continues, EAC = BAC ÷ CPI.
- Estimate to complete (ETC)
- The expected cost to finish the remaining work; ETC = EAC − AC.
- Variance at completion (VAC)
- How far off budget the project will finish; VAC = BAC − EAC.
- To-complete performance index (TCPI)
- The cost efficiency needed on remaining work to hit the budget; TCPI = (BAC − EV) ÷ (BAC − AC).
- Reading CPI / SPI
- A value above 1 is favorable; exactly 1 is on plan; below 1 is unfavorable.
- EVM memory aid
- Every formula starts with EV; divide for an index (CPI, SPI), subtract for a variance (CV, SV).
- Quality vs. grade
- Quality is conformance to requirements; grade is a category of features. Low quality is always a problem; low grade may be acceptable.
- Quality assurance (manage quality)
- Process-focused activities that build confidence the project will meet quality requirements.
- Quality control (control quality)
- Product-focused activities that verify deliverables meet requirements.
- Cost of quality (COQ)
- The total cost of conformance (prevention, appraisal) plus non-conformance (failure) costs.
- Prevention vs. inspection
- Quality is built in (prevention), not inspected in; prevention is cheaper than fixing defects later.
- Cause-and-effect (Ishikawa) diagram
- A fishbone diagram that traces a problem to its potential root causes.
- Pareto chart
- A bar chart ordering causes by frequency — the 80/20 rule highlights the vital few.
- Control chart
- A chart tracking a process over time against control limits to detect out-of-control variation.
- Risk
- An uncertain event or condition that, if it occurs, affects a project objective.
- Risk management process
- Plan, identify, perform qualitative analysis, perform quantitative analysis, plan responses, implement & monitor.
- Risk register
- The artifact recording identified risks with probability, impact, owner, and planned responses.
- Qualitative risk analysis
- Prioritizing risks by probability and impact, usually with a probability-and-impact matrix.
- Quantitative risk analysis
- Numerically modeling the combined effect of top risks on cost and schedule.
- Threat responses
- Avoid, transfer, mitigate, accept, or escalate.
- Opportunity responses
- Exploit, share, enhance, accept, or escalate.
- Avoid (threat)
- Eliminate the threat entirely, e.g., by changing the plan.
- Transfer (threat)
- Shift the threat's impact to a third party, e.g., insurance or a contract.
- Mitigate (threat)
- Reduce the probability or impact of the threat.
- Exploit (opportunity)
- Take action to make the opportunity certain to happen.
- Enhance (opportunity)
- Increase the probability or impact of an opportunity.
- Share (opportunity)
- Partner with a third party best able to capture the opportunity.
- Accept (risk)
- Take no proactive action; for threats, often hold a contingency reserve.
- Escalate (risk)
- Raise a risk outside the project's authority to the right level to own it.
- Secondary risk
- A new risk created by implementing a risk response.
- Residual risk
- The risk that remains after responses have been applied.
- Procurement
- Obtaining goods or services from outside the project team, governed by contracts.
- Fixed-price contract
- A set price for the work; the seller carries most of the cost risk.
- Cost-reimbursable contract
- Pays the seller's allowable costs plus a fee; the buyer carries more cost risk.
- Time and materials (T&M) contract
- Pays hourly/unit rates with no fixed total; cost risk is shared.
- Statement of work (SOW)
- A description of the procurement item detailed enough for sellers to bid and deliver.
- Make-or-buy decision
- Deciding whether to produce a deliverable in-house or procure it externally.
- Communications management
- Planning, creating, distributing, and managing project information to the right people.
- Communication channels formula
- Number of channels = n × (n − 1) ÷ 2, where n is the number of people.
- Push vs. pull communication
- Push sends info to recipients (email, reports); pull lets recipients retrieve it (portals, wikis).
- Lessons learned
- Knowledge gained during the project, recorded so future projects benefit; part of OPAs.
- Project closure
- Finalizing all activities, getting acceptance, releasing resources, and archiving documents.
- Methodology selection
- Choosing predictive, agile, or hybrid based on the project's certainty, change rate, and context.
- Project governance
- The framework of rules, roles, and decision rights guiding how a project is directed and controlled.
- Issue log
- A record of current problems (issues) that need resolution, with owners and status.
- Decision tree analysis
- A quantitative technique comparing options' expected monetary value under uncertainty.
- Expected monetary value (EMV)
- EMV = probability × impact; used to compare risky options.
- Three-point estimate (PERT)
- Estimate = (optimistic + 4 × most likely + pessimistic) ÷ 6, smoothing estimation uncertainty.
- Validate scope
- The buyer/customer formally accepts completed deliverables; about acceptance, not correctness.
- Control scope vs. validate scope
- Control scope monitors and manages scope changes; validate scope gets formal acceptance.
- Rolling wave planning
- Plan near-term work in detail and later work at a higher level, refining as you go.
- Analogous estimating
- Estimating using a similar past project; fast but less accurate (top-down).
- Parametric estimating
- Estimating using a statistical relationship (e.g., cost per unit) and known quantities.
- Bottom-up estimating
- Estimating each work package and rolling them up; accurate but time-consuming.
- Reserve analysis
- Determining contingency and management reserves for schedule and cost.
- Schedule compression
- Crashing (add resources, more cost) or fast-tracking (parallelize, more risk).
- Resource leveling
- Adjusting start/finish dates to balance resource demand; can extend the schedule.
- Resource smoothing
- Adjusting within float so resource use stays under a limit without changing the critical path.
- Finish-to-start (FS)
- The most common dependency: a successor can't start until its predecessor finishes.
- Mandatory dependency
- A hard logic dependency inherent to the work (e.g., build walls before roof).
- Discretionary dependency
- A preferred (soft) sequence based on best practice, not a hard requirement.
- Earned value: SV in time
- SV in dollars; SPI shows schedule efficiency as a ratio (EV ÷ PV).
- Quality audit
- A structured review to confirm the project follows quality policies and processes.
- Inspection
- Examining a deliverable to verify it conforms to requirements (a QC activity).
- Checklist
- A structured tool listing items to verify during quality control or risk identification.
- Histogram
- A bar chart showing the distribution of data, used in quality analysis.
- Scatter diagram
- A chart plotting two variables to reveal a relationship or correlation.
- Flowchart
- A diagram of process steps used to find quality problems or improvement points.
- Probability and impact matrix
- A grid ranking risks by their likelihood and effect to prioritize them.
- Risk categories (RBS)
- A risk breakdown structure groups risks (technical, external, organizational, PM).
- Risk owner
- The person accountable for monitoring a risk and carrying out its response.
- Watchlist
- Low-priority risks recorded for periodic review rather than active response.
- Trigger / warning sign
- An indicator that a risk is about to occur or has occurred.
- Sensitivity analysis (tornado)
- Shows which risks have the most potential impact on the objective.
- Monte Carlo simulation
- A quantitative technique modeling many outcomes to assess overall project risk.
- Bid documents
- RFP, RFQ, and IFB used to solicit seller proposals or quotes.
- Source selection criteria
- The factors used to evaluate and choose a seller (price, capability, etc.).
- Contract closure
- Confirming all contract work and terms are complete and formally closing the agreement.
- Force majeure
- A contract clause excusing performance due to extraordinary events beyond control.
- Communication methods
- Interactive (meetings/calls), push (email/reports), and pull (portals/wikis).
- Communication model
- Sender encodes, transmits through a medium with noise, receiver decodes and acknowledges.
- Stakeholder notification
- Keeping affected parties informed of decisions, issues, and resolutions.
- Project artifacts
- Documents and deliverables produced by the project (plans, logs, reports, registers).
- Knowledge transfer
- Sharing tacit and explicit knowledge across the team and into the organization.
- Phase gate / kill point
- A review at a phase boundary to decide whether to continue, change, or end the project.
- Configuration management
- Controlling versions of deliverables and documents to ensure consistency.
- Issue vs. risk
- A risk is a future uncertainty; an issue is a current problem already happening.
- Cost baseline excludes
- Management reserve (which is added for unknown-unknowns and needs approval to use).
- Agile
- An iterative, change-driven approach that fixes time and cost and flexes scope by priority to deliver value early.
- Predictive (waterfall)
- A plan-driven approach that fixes scope up front; best for stable, well-understood work.
- Hybrid approach
- A delivery approach blending predictive and agile elements, tailored to the project.
- When agile fits
- High uncertainty, fast-changing requirements, and a need for early, frequent feedback.
- When predictive fits
- Stable, well-defined requirements with fixed scope and low expected change.
- Agile Manifesto values
- Individuals & interactions, working software, customer collaboration, and responding to change.
- Iteration / sprint
- A short, fixed-length timebox (often 1–4 weeks) producing a usable increment.
- Scrum
- An agile framework delivering work in sprints with set roles and ceremonies.
- Scrum roles
- Product owner, scrum master, and developers (the development team).
- Product owner
- Owns and orders the product backlog to maximize value; the voice of the customer.
- Scrum master
- A servant leader who facilitates Scrum, coaches the team, and removes impediments.
- Developers (Scrum)
- The cross-functional team members who build the increment each sprint.
- Scrum ceremonies
- Sprint planning, daily standup, sprint review, and sprint retrospective.
- Sprint planning
- The team selects backlog items it can complete and sets a sprint goal.
- Daily standup
- A short daily sync covering progress, plan, and impediments.
- Sprint review
- Demonstrating the increment to stakeholders to gather feedback.
- Sprint retrospective
- The team inspects how it worked and commits to improvements.
- Product backlog
- An ordered, evolving list of everything that might be needed in the product, owned by the product owner.
- Sprint backlog
- The set of backlog items the team commits to deliver in the current sprint.
- User story
- A short, user-centered requirement: 'As a [role], I want [goal] so that [benefit].'
- Definition of done
- The team's shared, explicit criteria for an increment to be considered complete.
- Velocity
- The amount of work a team completes per iteration, used to forecast future capacity.
- Story points
- A relative estimate of effort/complexity for a backlog item, not a time estimate.
- Minimum viable product (MVP)
- The smallest releasable product that delivers value and enables learning.
- Kanban
- An agile method that visualizes work and limits work in progress (WIP) to improve flow.
- WIP limit
- A cap on how many items can be in a workflow stage at once, to improve flow and surface bottlenecks.
- Kanban board
- A visual board showing work items moving through workflow columns.
- Scrum vs. Kanban
- Scrum is cadence- and commitment-based (sprints); Kanban is flow- and WIP-limit-based (continuous).
- Burndown chart
- A chart showing remaining work over time within a sprint or release.
- Burnup chart
- A chart showing completed work climbing toward total scope over time.
- Information radiator
- A highly visible display (e.g., board, charts) that broadcasts project status to everyone.
- Servant leader in agile
- The scrum master/PM facilitates and removes impediments rather than directing the team's tasks.
- Backlog refinement
- Ongoing work to add detail, estimates, and order to backlog items.
- Timeboxing
- Fixing a maximum duration for an activity to focus effort and force prioritization.
- Incremental delivery
- Releasing usable pieces of the product over time so value and feedback come early.
- Retrospective purpose
- Continuous improvement — the team identifies what to keep, drop, and try next.
- Iterative vs. incremental
- Iterative refines through repeated cycles; incremental delivers in usable pieces; agile uses both.
- Empirical process control
- Decisions based on observation and experimentation (transparency, inspection, adaptation).
- Three pillars of Scrum
- Transparency, inspection, and adaptation.
- Spike (agile)
- A timeboxed investigation to reduce uncertainty about an approach or estimate.
- Epic
- A large body of work that can be broken down into multiple user stories.
- Theme
- A group of related epics or stories aligned to a goal.
- Acceptance criteria
- Conditions a user story must meet to be accepted as done.
- INVEST (user stories)
- Good stories are Independent, Negotiable, Valuable, Estimable, Small, and Testable.
- Planning poker
- A consensus estimating game using relative story-point cards.
- Release planning
- Mapping which features/increments will be delivered over upcoming iterations.
- Servant leadership in retro
- Facilitate openly and safely so the team owns its improvements.
- Cumulative flow diagram
- An agile chart showing work in each state over time to reveal bottlenecks.
- Lead time vs. cycle time
- Lead time spans request to delivery; cycle time spans work start to finish.
- Daily standup three questions
- What did I do, what will I do, and what's blocking me?
- Product vision
- A clear, shared statement of the product's purpose guiding backlog priorities.
- Agile coaching
- Helping teams and organizations adopt agile mindsets and practices effectively.
- Business environment domain
- Connects the project to the wider organization: compliance, value/benefits delivery, and organizational change.
- Business case
- The documented justification for a project — its need, options, costs, and expected benefits.
- Benefits realization
- Confirming a project's intended value and benefits are actually achieved, often after it closes.
- Benefits management plan
- The plan describing how and when a project's benefits will be delivered and measured.
- Value delivery
- Producing outcomes that meet stakeholder needs and create value, not just deliverables.
- Net present value (NPV)
- Future cash flows discounted to today minus the investment; a positive, higher NPV is better.
- Return on investment (ROI)
- The percentage gain from a project relative to its cost; higher is better.
- Payback period
- The time for a project's cumulative inflows to recover the initial investment; shorter is better.
- Benefit-cost ratio (BCR)
- Benefits divided by costs; greater than 1 means benefits exceed costs.
- Internal rate of return (IRR)
- The discount rate at which a project's NPV is zero; higher IRR is generally better.
- Choosing by NPV
- When projects cost the same, the higher NPV is the stronger financial choice.
- Compliance management
- Planning and managing adherence to laws, regulations, standards, and organizational policy.
- Treating compliance as risk
- Potential non-compliance is identified and handled like any other project risk.
- External environment changes
- New regulations, market shifts, or technology that the PM monitors and responds to via change control.
- Enterprise environmental factors (EEFs)
- Conditions outside the team's control — culture, market, regulations — that influence the project.
- Organizational process assets (OPAs)
- The organization's own plans, processes, policies, templates, and knowledge bases used on projects.
- EEFs vs. OPAs
- EEFs are external conditions you adapt to; OPAs are internal assets you use and add to.
- Organizational change management
- Preparing and supporting people to adopt a new way of working so project benefits stick.
- Project vs. product success
- A project can finish on time and on budget yet fail if the intended value never materializes.
- Strategic alignment
- Ensuring the project supports the organization's strategy and goals; reason to start or stop it.
- Organizational structures
- Functional, matrix (weak/balanced/strong), and projectized — they set the PM's authority level.
- PM authority by structure
- Lowest in functional, highest in projectized; matrix is in between by type.
- Project management office (PMO)
- An organizational body that standardizes and supports project governance; supportive, controlling, or directive.
- Regulatory compliance example
- A healthcare data project must meet privacy rules (e.g., HIPAA); compliance gaps are risks to address early.
- Compliance categories
- Legal/regulatory, safety, quality/standards, and organizational policy.
- Sustainability / ESG
- Considering environmental, social, and governance impacts in project decisions.
- Market & competitive changes
- External shifts the PM must assess for impact on scope, value, and viability.
- Continued business justification
- Periodically confirming the project still delivers value; if not, recommend stopping it.
- Value vs. output
- Delivering value means achieving outcomes and benefits, not merely producing deliverables.
- Benefits owner
- Often a business sponsor, accountable for realizing benefits after the project ends.
- Functional organization
- Staff grouped by specialty; the functional manager has authority, the PM little.
- Projectized organization
- The whole organization is structured around projects; the PM has high authority.
- Matrix organization
- Shares authority between functional and project managers (weak, balanced, or strong).
- Supportive PMO
- Provides templates, training, and lessons learned; low control.
- Controlling PMO
- Requires compliance with frameworks and methodologies; moderate control.
- Directive PMO
- Directly manages projects; high control.