Introduction & Core Concepts
Project – temporary endeavor to produce a unique product, service, or result. Program – coordinated management of related projects for benefits and control. Portfolio – collection of projects/programs aligned to strategy and optimized for value and risk. Operations – ongoing activities that sustain the business.
Business case answers why the project exists; benefits management plan defines how and when value will be realized and measured.
Business Alignment & Value Delivery
Value Types
Tangible (revenue, cost reduction) & Intangible (customer satisfaction, brand, innovation)
Value Delivery System
Portfolio (strategy, priorities) → Program (benefits, integration) → Project (deliverables)
PM’s Role
Maintain alignment to business goals, escalate misalignments, forecast benefits realization risks
Tailoring
Adapt methods to context (EEF/OPA, risk, governance); document rationale
Constraints & Success (Iron Triangle)
Scope, Time, and Cost are interdependent. Quality is the outcome of trade‑offs among them.
Fig 1. Iron Triangle with quality at the center.
If scope increases while time is fixed, options include reducing lower‑priority scope, adding resources (cost), or renegotiating schedule/cost baselines.
Organizational Systems & PMO
Structures influence authority, communication, and resource access.
| Structure | Characteristics | PM Power | Notes |
|---|---|---|---|
| Functional | Silos by discipline; decisions through functional managers | Low | Escalate via functional chain |
| Matrix (Weak/Balanced/Strong) | Share authority between PM and Functional Manager | Low→High | Dual reporting can cause conflict |
| Projectized | Teams organized around projects; PM owns budget/resources | High | Fast decisions; less functional home |
PMO Types
| Type | Control | Services |
|---|---|---|
| Supportive | Low | Templates, best practices, training |
| Controlling | Moderate | Methodology compliance, audits |
| Directive | High | Directly manages projects and PMs |
Enterprise Environmental Factors (EEF) vs Organizational Process Assets (OPA)
EEFs (constraints)
- Culture, geographic distribution, infrastructure
- Market conditions, legal/regulatory requirements
- Industry standards, political climate
OPAs (assets)
- Policies, procedures, governance frameworks
- Templates, checklists, WBS libraries
- Lessons learned repositories
Rule of thumb: EEFs = environment you must adapt to; OPAs = assets you can leverage.
Governance & Compliance
Governance defines roles, decision rights, and escalation paths. Compliance can be mandatory (laws, regulations) or voluntary (standards, internal policy).
Decision Levels
Portfolio (strategy) → Program (benefits) → Project (scope/schedule/cost)
Authority
PM authority depends on structure; RACI clarifies responsibilities
Power Types
Legitimate, Reward, Expert, Referent, Punitive (avoid)
Audits
Compliance audits verify adherence; quality audits improve processes
Business Documents (Case, Benefits Plan)
| Document | Key Contents | Owner |
|---|---|---|
| Business Case | Problem/opportunity, options, expected benefits, costs, risks, recommendation | Sponsor |
| Benefits Mgmt Plan | KPIs, measurement method, timing, roles, sustainment plan | PMO/Benefits Owner |
Exam cue: Business case authorizes the project business need; the project charter authorizes the PM.
Project & Development Life Cycles
Predictive (plan‑driven, scope fixed early), Iterative (refine in cycles), Incremental (deliver usable slices), Agile (adaptive, feedback‑driven), Hybrid (blend).
Fig 2. Development approach spectrum.
Information Flow: WPD → WPI → WPR
Collect Work Performance Data (facts), analyze into Work Performance Information (context/trends), and package as Work Performance Reports for decisions.
Fig 3. Data → Information → Reports.
PMI 12 Principles (PMBOK® 7th)
Fig 4. Principles centered on value.
- Be a diligent, respectful, and caring steward
- Create a collaborative project team environment
- Engage stakeholders proactively
- Focus on value
- Systems thinking
- Demonstrate leadership behaviors
- Tailor based on context
- Build quality in
- Navigate complexity
- Optimize risk responses
- Adaptability & resilience
- Continuous improvement
WBS (Work Breakdown Structure)
Decompose scope into deliverables and work packages. Use a WBS dictionary to describe each package (acceptance criteria, assumptions, owner).
Fig 5. Sample WBS (3 levels).
CPM / Critical Path
Network analysis to determine the longest path of dependent activities. Activities on the critical path have zero total float and drive project duration.
Fig 6. Critical Path highlighted in red.
If a critical activity slips, overall finish date slips unless you crash (add cost) or fast track (add risk).
EVM (Earned Value Management) – Formulas
EVM Formulas
PV = Planned Value EV = Earned Value AC = Actual Cost BAC = Budget at Completion CV = EV - AC (Cost Variance) SV = EV - PV (Schedule Variance) CPI = EV / AC (Cost Performance Index) SPI = EV / PV (Schedule Performance Index) EAC (typical) = BAC / CPI ETC = EAC - AC VAC = BAC - EAC
Stakeholder Types & Models
| Model | Dimensions | Use |
|---|---|---|
| Power / Interest Grid | Power vs Interest | Choose engagement strategy |
| Salience Model | Power, Legitimacy, Urgency | Identify who gets attention first |
| Influence / Impact | Influence vs Impact | Plan communications & change approach |
Engagement Levels
Unaware → Resistant → Neutral → Supportive → Leading
Plan
Stakeholder Engagement Assessment Matrix (SEAM) compares current vs desired states
Risk (Full Coverage)
Risk Attitude
Appetite (broad), Tolerance (range), Threshold (specific limit)
Register
Risks, owners, causes, triggers, responses, residual/secondary risks
Analysis
Qualitative (probability/impact, urgency) → Quantitative (EMV, simulation, decision trees)
Responses
| Threats | Opportunities |
|---|---|
| Avoid, Transfer, Mitigate, Accept (active/passive), Escalate | Exploit, Share, Enhance, Accept, Escalate |
Probability–Impact Heatmap (Qualitative)
| Low | Med | High | |
|---|---|---|---|
| High | M | H | VH |
| Med | L | M | H |
| Low | VL | L | M |
Quantitative examples: EMV = Σ(probability × impact); decision tree chooses the option with highest EMV.
Procurement & Contract Types
| Type | When to Use | Risk to Buyer | Notes |
|---|---|---|---|
| Fixed‑Price (FFP/FPEPA/FPIF) | Clear scope; stable market | Low | Seller bears overruns; economic price adjustment for inflation |
| Cost‑Reimbursable (CPFF/CPIF/CPAF) | Unclear scope, R&D | Higher | Buyer pays allowable costs + fee; incentives align outcomes |
| Time & Materials (T&M) | Staff augmentation | Medium | Set ceiling price, well-defined rate card |
Quality Planning vs Control
Plan Quality
Standards, metrics, acceptance criteria; prevention over inspection
Manage Quality
Process focus: audits, design for X, continuous improvement
Control Quality
Product focus: inspections, checklists, sampling, control charts
Change Control & Baselines
Integrated Change Control evaluates requested changes against the scope, schedule, and cost baselines. Approved changes update the project management plan and baselines.
Change log records requests, decisions, and implementation status. Configuration management tracks product versions.
Communications Planning
Define who needs what information, when, in what medium, and by whom. Consider stakeholder language/time zone, urgency, and sensitivity.
| Artifact | Purpose | Notes |
|---|---|---|
| Stakeholder Register | Identify stakeholders & info needs | Updated continuously |
| Comms Management Plan | Methods, frequency, escalation | Align with governance |
| Meeting Agendas/Minutes | Control information flow | Feed lessons learned |
Glossary (Selected)
| Term | Definition |
|---|---|
| EEF | Enterprise Environmental Factors – conditions not under project control |
| OPA | Organizational Process Assets – internal policies, templates, knowledge bases |
| Baseline | Approved plan version used for comparison |
| Critical Path | Longest path through the network; determines the earliest finish |
| Float | Schedule flexibility (Total/Free) |
Quick Reference / Mnemonics
- P‑I‑I‑A‑H → Predictive, Iterative, Incremental, Agile, Hybrid
- DIR → Data → Information → Reports
- EEF ≠ OPA → environment vs. assets
- RACI → Responsible, Accountable, Consulted, Informed
- Power types → Legitimate, Reward, Expert, Referent, Punitive (avoid)