The Project Management Answer Book

Jeff Furman PMP

• Publisher: Berrett-Koehler Publishers
• Year: 2014
• ISBN:
  9781567264678
• Edition: 2
• Topic: Business
• Subtopic: Project Management
• Index: Business

If it's essential to project management... it's in here! The first edition of The Project Management Answer Book addressed all the key principles of project management that every project manager needs to know. With a new chapter on scrum agile, updates throughout, and many new PMP® test tips, this new edition builds on that solid foundation.The structure of this update maps closely to the PMBOK® Guide, Fifth Edition, and is designed to assist anyone studying for the PMP® and other certification exams. Helpful sections cover: • Networking and social media tips for PMs, including the best professional organizations, virtual groups, and podcast resources
• The formulas PMs need to know, plus a template to help certification candidates prepare and self-test for their exams
• Quick study sheet for the processes covered on the PMP® exam
• Key changes in PMBOK® Guide, Fifth Edition, for readers familiar with earlier versions who want “the skinny” on the new version.
PMs at every level will find real gold in the information nuggets provided in this new edition. Those new to project management will find the comprehensive coverage and the depth of the answers especially valuable, and will like the easy-to-read style and Q&A format. For experienced managers looking for new tools and skills to help them pass their PMP® or other certification exams, this is a must-have resource.

CHAPTER 1
Project Management Basics

The job of a project manager is to plan and manage projects. Later chapters will cover the many advanced aspects of project management.

Before we dive into the many facets of planning and managing projects, there are several key concepts, definitions, and resources that project managers (PMs) need to know about. Here are a few quick Q&As to give you the basics.

PROJECTS, PMS, PROJECT MANAGEMENT, AND PROGRAMS

Q1. What is the formal definition of project?

A1. A project is a temporary and unique work effort with a beginning date and an end date that creates a product, service, or result. Here’s a little more detail on the key pieces of this definition:

• Temporary, with a beginning date and an end date. A project is planned to start on a certain date and complete on a deadline, unlike maintenance or operations work, which is ongoing or perpetual.

• Unique work effort. A team is assembled and commits to work on a specific goal, often under a contract.

• Creates a product, service, or result. The purpose of the project is to create something that didn’t exist before, often called the deliverable, which is turned over at completion to the customer (internal or external to the organization) who initiated the project.

Q2. How do you define the terms project management and project manager?

A2. Project management, performed by a project manager, is planning, organizing, and supervising a project (i.e., a work effort that fulfills the definition in Q&A 1). Every project is unique, and there is room for creativity in how each PM manages. But there also are many established methods, tools, and techniques that PMs use the world over.

PMs often are either consultants or full-time employees of the company executing the project for the client (i.e., the providing organization or service provider). Often, there is a PM on the client side as well, and the client’s PM is a counterpart to the PM running the project on behalf of the providing organization.

It is assumed that a PM is, to some extent, following the formal discipline of leading a project and working from a standard set of documents, especially the project plan and schedule, and using tools common to the field, such as scheduling tools and communication software.

Q3. What are a few good examples of projects?

A3. Here are six examples of projects in the business world.

In IT

• Creating a new software application or system

• Assembling a help desk from scratch to support such an application.

In a Pharmaceutical Company

• Creating a new drug

• Putting together a marketing plan and rolling out the new drug on the world marketplace.

In Construction

• Building a house

• Building a new stretch of road.

Q4. What’s the difference between a project and a program?

A4. Constructing a single house is a basic example of a project. By contrast, designing an entire housing complex and building all the houses, plus all of the peripherals that might be part of the complex (e.g., a parking garage or health club) would be an example of a program, which is defined as a group of related projects.

PROJECT INITIATION DOCUMENTS

Q5. What is the document that starts off a project?

A5. The charter is the first document created on a project. It is typically created by the PM at the request and direction of the sponsor, who is the “money person” financing the project (see Q&A 17 for more about the formal role of the sponsor).

Q6. What does the project charter do?

A6. The charter provides a clear statement of what the project is supposed to accomplish, including a high-level (i.e., nondetailed) description of its goals and intended deliverables. This lays the groundwork for effective requirements gathering and, later, for properly defining the scope of the project, from which the schedule will ultimately be created.

Usually the name of the PM assigned to the project appears in the charter along with the sponsor’s name and sometimes his or her signature. The sponsor’s signature is valuable, because it authorizes the project and officially permits people in the performing organization to work on the project. It also empowers the PM, helping him or her obtain the resources needed to succeed in leading the project’s activities.

TOP 20

ELEMENTS IN THE PROJECT CHARTER

1. High-level description of the project

2. Goals and deliverables of the project

3. Business case for the project (Why are we doing it? How will this project help the customer or organization?)

4. Name of the PM (making it official who’ll be running the project, authorizing the PM to get needed resources)

5. Name and signature of the sponsor

6. Names of key stakeholders

7. Key milestones (identified early on)

8. Budget estimates or caps (identified early on)

9. Other constraints (e.g., a new car design must average 50 mpg)

10. Metrics for success (How will this project be judged as successful? How will customer satisfaction be measured?)

11. Risks that could jeopardize the project’s success (e.g., if the project is not completed before a competing product hits the market)

12. Assumptions (e.g., ten technicians will be provided for the project)

13. Dependencies (on other projects or activities, on pending legislation, on market conditions, or other external factors)

14. Key products, licenses, and permits the project will require

15. Make or buy (Which deliverables will the team be building versus procuring?)

16. Contracts (For the procurements on this project, have the legal documents been created? If so, what is their status?)

17. Templates (Which blank documents or documents from prior projects will we be using to model the documents we’ll be creating for the current project?)

18. Gap analysis or required training (Are there knowledge areas team members will need training on to perform their duties or other gaps that need addressing?)

19. What is not part of this project (Are there deliverables or services that should be documented as not part of the scope of this project?)

20. Agile or waterfall? (Has the formal approach been determined yet for managing this project?).

Q7. Why do project managers need a formal project charter?

A7. The project charter is more than a recommendation—it’s a necessity. The charter documents that a project exists. Many organizations even have the policy, “If there’s no charter, there’s no project.” This is because when projects are launched without a charter, serious problems can (and often do) arise. Here are some examples that may sound familiar to the experienced PM:

• Did you ever work on a project where the PM had trouble getting resources or claiming his or her authority? Having your name on the charter as the PM empowers you and helps you get the resources and respect you need, which is especially helpful in situations in which the power of the PM is limited.

• Were you ever on a project that you thought was a go but was never greenlighted? Making a project official by documenting it in an authorized charter and getting the required signoffs is a way of putting the pedal to the metal and getting things going the right way.

• Did you ever work on a project where the goals or priorities were not all clearly communicated? Getting the key elements down in writing in the charter clarifies them for all of the many people who will need to know about them.

THE PMBOK^® GUIDE AND PMI

Q8. What are some of the ways the Project Management Institute (PMI) can help me in my career?

A8. PMs have a large and robust support organization behind them in the Project Management Institute. PMI is a nonprofit, member-driven organization made up of project managers helping other project managers. It is based in the United States in Newtown Square, Pennsylvania, near Philadelphia. It is by far the world’s largest organization for project managers, offering leading-edge certifications and many other benefits for members.

BENEFITS OF PMI MEMBERSHIP

• Educational seminars and networking events for members

• Free downloadable copies of the PMBOK^® Guide, including new versions as they come out

• Free leading-edge monthly and quarterly project management magazines published by PMI and available to members in paper or digital form

• CoPs (Communities of Practice) for specialized areas of project management knowledge such as risk management, IT, energy, and human resources

• Volunteer project management opportunities and other ways to get involved in a chapter, including officerships

• Annual conferences, including PMINAC (PMI North American Global Congress) and others around the world

• Career websites

• Mentoring programs

• Free study groups for the PMP^® Exam, and more.

There are other organizations and certifying bodies for PMs (see Chapter 15), but PMI is a truly global organization, with local chapters supporting members worldwide, from Nova Scotia to Rio de Janeiro and San Isidro, and from Porto Salvo to Moscow and Mumbai. This is also good news for job seekers. Because PMI’s certification and exam process is identical in every location, certification by PMI makes PMs marketable for positions all over the globe.

Q9. What is the PMBOK^® Guide, and how can it help me as a project manager?

A9. PMBOK^® is an acronym for The Project Management Body of Knowledge. PMI publishes The PMBOK^®—A Guide to the Project Management Body of Knowledge in both paper and digital formats. It’s th...