PMI PMP Project Management Professional – Define Project Management Foundations

1. Section Overview: Project Management Foundations

Welcome to Section Five where we’re going to talk about the project management foundations. In this section we’re going to really look at the big picture of project management. This is a really important section to build a strong foundation on how the Pimbok guide addresses project management and what project is and what a project is not. We’re going to talk about the temporary nature of projects, how that also means the temporary nature of teams. But what about the deliverables, the things that projects create? We know that our projects create unique products or services or results. But what about the temporary nature of those? Is that something that we consider as a project manager or all those things temporary? So we’ll take a look at that. In this section, we’re also going to talk about a new term, really important term called business value. So I need to watch for that.

Talking about business value and how that affects project management, we’re going to look at why projects are created and how projects are selected and how does that relate to business value. A really important topic. We’re going to define project management, just a clear understanding of what is project management so that we have a common understanding as we move through the remainder of the course and as you prepare to pass the PMP. So we need to be on the same page about what project management is. We’re going to look at the project management application areas, the different fields of discipline where project management works, works everywhere. And then we’ll talk about the project life cycle as opposed to the project management life cycle. So you want to pay attention to that. Let’s hop in here and knock it out. And talking about these project management foundations.

2. Projects are Temporary

As I mentioned a little bit in the last lecture that projects are a temporary endeavor. Just because they’re temporary does not mean that it’s a short term duration. Often in projects we know that it’s going to end at some point. So that’s the idea that it’s temporary, it’s not ongoing. And I said often in projects, it’s always in projects that are temporary. If there’s no end in sight, you want to question am I doing operations? Projects have a definite beginning and a definite ending when we create the project charter, one of the things that we put into the charter are one of the success criteria. How do I know I’m done when these things are true? So that’s my goal, that when I create these things I know the project is done. So that’s the definite ending, that projects are temporary, projects are done or the projects end when you meet those objectives.

Now, objectives doesn’t have to be just the scope. We could also have objectives like you have this much time, there’s a deadline and if you don’t hit that deadline, there’s no reason for the project to continue. So for example, you have a trade show. You have to get this project done by this particular date in order to be at the trade show. Well, if you missed the trade show date, there’s no reason for the project to go on and on. Projects might also have an objective where there is a cost. We have a limited amount of funds, so we do the most important things first and then we do the least important things second. So we’re going to do as much as we can with the money that we have. And when we run out of money, then the project is done. Typically we think of scope driven, but it could be time or cost and we’ll talk about an inverted triangle in an agile environment.

So we’ll talk about that coming up. Just a little hint there, keep you excited. There might be a need no longer exists. So it could be that the project is no longer needed. I’m rolling out version one, two of a piece of software and here comes version 20 right in the middle of my project. So my current project needs to go away because we have a better technology now, so it’s no longer needed. We’ll go to project 2. 0 or there’s an opportunity in the marketplace and that opportunity is gone. So the project is no longer needed would be a reason that projects could be canceled. Resources may no longer be available. So you might have a particular team member or skill set that you need. And if that individual were to leave your organization, then that puts your project in a lurch.

Could also be that it’s a material that you’re using, a very specialized type of material. And if you’re having trouble getting that material, then maybe your project is so dependent on that it would no longer need to exist. If you can’t get that resource, a physical resource, you might have some legalities. So there could be a new law or regulation that would cause your project to end, because it would be out of regulation or out of sync with a new law. Could also be just for convenience. That all right, this project has gone on long enough. We’re done with it. We’re going to end the project. So these are all characteristics of why a project is temporary. Really important to know, because we want to be able to recognize is this operations that it’s ongoing or is it temporary? We know it’s going to end at some point, and often we’re thankful that it’s going to end at some point. All right, good job.

3. Project Create Unique Products, Services, Or Results

We know that projects are a temporary endeavor to create a unique product, service, condition, or result. Projects also have a characteristic, and that is they drive change. That projects are changing the current state to a desired future state, that projects are moving from where we are now, all to a desired state of what our goals are, where we want to be. So projects are always doing really one of four activities. When we’re driving change, we’re moving something, we’re adding something, we’re changing something or deleting something. And yes, you have to do those hand motions when you talk about moving, adding, changing, deleting. So there you go. Not really. You don’t have to do that, but that’ll help you remember those. So you’re moving, adding, changing, deleting, sometimes called MACD. All right, now, it’s important to recognize this. It’s a quick test of are you really doing a project? Are you changing? So projects are about change.

So you’re moving from your current state to that desired future state. Now, it’s possible, often likely, especially in it, that there’s a transition state, a transition period, as you’re making this move. So imagine that we are on Windows X, whatever version is popular. Now we’re on Windows X, and here comes a new version of Microsoft Windows, Windows Y, which I’ve often have asked that question. All right, so we’re moving from X to Y. We’ve got thousands of people in our network that we support that we’re going to have to go from X to Y so we can’t flip the switch all at once.

What we do is kind of a rolling release by department by department. So our transition state would be some people are going to be on Windows Y that we’ve made the transition for them, but other people are still on Windows X. So now we have dual support. So that introduces some issues and some risk and maybe some resource constraints that we have to consider in our project, this transition state. And then as more and more people come over to Windows Y, then it’s less and less of an issue and a risk. But we still have to plan for this operational transfer. A transition state can also be that I’m giving the product to someone else’s support, I’m putting it into production. Doesn’t have to be it. It could be a new piece of equipment or a new solution or even a building. So there’s some type of a warranty or a support period that as we’re putting this new piece of equipment into place, we just don’t plug it in and walk away. That there’s a transition where we support that, maintain it, and help people ramp up on that new solution we’ve created for them. So that’s also a transition state. All right, great job. See you in the next lecture.

4. Projects Enable Business Value Creation

Why does an organization do a project? Well, that question is called the project initiation context. We’ll see it again. Coming up, the reason why projects are generally selected, why an organization does a project is there’s some business value for initiating that project, for investment, investing the time and the money and the resources into the effort to create that unique product, service, condition, or result? Well, that value is called business value. A business value describes the benefits for the organization or the stakeholders or the customers of the project. So organizations do projects because projects enable business value. There are two types of business value. We have tangible business value and, of course, intangible. Tangible is easy to see. We’re talking about things.

So you get new fixtures or equipment or hardware or software money. You get a profit from the project. You get market share. Your stakeholders get some equity. So it’s all those good things you can touch and feel, and there’s utility to that money or to that equity or what have you. So those are tangible. Now, intangible business value are things like goodwill and reputation in the community or in the marketplace. Brand recognition, there’s a public benefit.

So it’s like a not for profit or a project that was done for the community. So there’s a public benefit. Could be trademarks or strategic alignment. So those are intangible. It’s hard to quantify the value of brand recognition, but you could do a project to increase your brand recognition. But that’s business value. We’ll see business value a couple of times throughout the course. Generally, business value is described in a document called the business case. The business case, of course, describes why do we want to do this project, why do we want to invest in it? So what is the return on investment? And that’s where we describe business value, the worth that your project creates for the organization. All right, great job. Keep moving forward.

5. Project Initiation Context – Why Projects are Created

In the last lecture, I hinted at this term called the project initiation context. Basically, why are projects created? But we know that projects are created. Why? Because they create, and I hope you said it at least in your mind, business value that we’re doing a project to generate some benefit. That’s the only reason why we do a project. Now, you might say, well, we have to do a project because of the law. Well, the benefit is you do the project because of the law, so you don’t go to jail or fines or regulations. So there are benefits by even adhering to the law, even if you don’t want to do the project, it’s better to do the project than usually then they have to pay a fine or break the law. I say usually, not to get off on a tangent here, but sometimes it’s easier and better to pay a fine than have to adhere to regulation. Not saying always. I was saying something we want to do, and certainly we can’t continue to do that, but there are those instances. All right, that’s an aside.

Let’s get back on our main thought here of the project initiation context, that projects create business value. So there are four things that we need to know about the business value and projects. First off, we do it because I just mentioned regulatory, legal, or social requirements that we are obligated to do the project. But there’s still business value, as you know, in that obligation stakeholder request, the customer asks us to create something for them. So that was a good example of those organizations that they do projects for others for profit.

So we get a stakeholder request. Could be internal. Where a stakeholder comes to your department, the It department, and they want you to do an update or to swap out their laptops or whatever the case may be. Technological advances. So you’re on Windows X and you really feel like Windows Y is a better software or operating system to be on, and that that is something you want to implement as a project. So there’s an advance in technology.

Now, technological advances for our exam doesn’t mean just hardware, software, data network. We could be talking about a technological advance in a piece of equipment in a manufacturing environment or a construction environment, or a new advanced in a type of material that you use in your discipline. So it’s not always just hardware, software. It’s the technology and the improvement. Step number four, or the fourth option, not really a step about why a project is created is you’re going to create, improve, or fix existing products, processes, or services.

So remember our MACD move ad change delete. So you are creating, improving, or fixing a process or service, something that’s existing, moving from that current state to the desired future state. So this puts it in context of why are we doing this project? Put it in context. Put it in light of regulations. It’s a stakeholder request. It’s an advance in technology. Or we’re creating some new product, service or solution. All right, great job. I’ll see you in the next lecture.

6. Defining Project Management

Welcome back. So you completed an assignment on defining what is a project. We’ve talked about what a project is, and probably based on your experience, you already have a great idea on what a project is. But now let’s talk about the other part of that equation. If we have projects, we need project management. So what is project management? You ever find yourself at Harding and someone says, oh, so what do you do? And then you say, Project manager. And they’re like, what? It sounded like you said you’re a project manager. Or they’re like, okay, so what does that mean? You’re a project manager? What does that mean? That’s my favorite one.

Like, what is that? So a project manager is an individual who manages projects. Well, duh. A project manager is an individual who manages the change in organizations that it manages, the change from moving from the current state to that desired future state, and all the logistics and all the different parts of that organization that are touched by that change. That’s how I always describe it for your exam. Project management is the application of the knowledge, the skills, the tools and techniques to meet the project requirements. So people still don’t get it sometimes what our project manager is. So I say, okay, you’re going to build a house, right? So we’re going to build a house, and you’ve got this vision of a house. Well, I have to extract the requirements from you. I have to really have your vision. We have to be in sync with that vision of what you want me to create. So that’s the first part. I have to understand what you want. Now, as the PM, I have to do all the logistics. So you think about all of the permits and the blueprints and the laborers that have that skill set to do the foundation and the framing, electrical and so on, and all those moving parts that have to sync up.

And work together to be cost effective, to help us create a profit and to create exactly the thing that you want as a result of the project. There are 49 49 project management processes that I would utilize in that scenario. So there are things I would do in initiating the processes. From planning, I have to execute. Obviously, we’re going to monitor and control, and then at some point, we’re going to close out that project and your house is done. So that’s a clean way to describe what a project manager does. So project management utilizes all of those processes as needed. Do you have to use every single process in the Pin box? Do you have to use all 49 processes? No, you don’t? If I’m not buying anything in my project, I sure don’t need to do procurement.

If I have a low priority project, I may not have to do quantitative risk analysis. I only do the processes that are needed in that project. So we’ll talk more about that coming up. Typical project management is when we’re talking about identifying requirements. So I want to build a house for you, or you’ve hired my company to build a house. I need to gather requirements. I need to really understand what you want us to create. Then I have to as the projects in motion, address your needs and concerns and also expectations. So you might have a vision that I don’t quite understand, or the expectation is, okay, we’re going to build a swimming pool, but we’re not paying to fill with water. You’re going to have to get somebody to do that. So kind of a mismatch there.

So we aren’t clear. We have to set up and maintain and carry out communications. Bulk of a PM’s job is communicating, managing stakeholders. Like in that house project, the stakeholders, they’re more than just the homeowner that we’re building the house for. It’s also the project team, the contractors, the vendors, the city inspectors, maybe even the neighbors around the house project. So they’re all stakeholders. Anyone that can affect the project or is affected by the project is a stakeholder. And then we have to balance competing project constraints. And the big ones you have scope, quality, schedule, the cost or the budget, the resources, physical and human, and risk. So those are competing project constraints. Typically we think of the iron triangle, though, that you think of time, cost, and scope. Those are the three big constraints.

But we also have to think about quality can be affected and the resources. And then risk is one that we have to balance because they can certainly affect the other constraints. A term you should be familiar with, and really I’ve described it in this house project is progressive elaboration. Progressive elaboration is where I start very broad, like deductive reasoning, I start very broad and I get more and more and more information until I’m very specific. So in that house project, the homeowner says, well, what’s this going to cost me? That’s their first question, right? Like any stakeholder, well, I can give a guess, a swag, if you will, a wild guess. And so they ask and I say, well, it’s probably going to be around $500,000. And they say, well, probably, how much is that? And of course we can get more specific later in the course. So I said, Well, I need more information.

What type of floors do you want? What type of cabinets do you want? What type of appliances, what type of material? And so as I get more and more information, I can give an estimate with much more confidence. Now we’ll talk more about cost estimating going on, and we get to chapter seven of the Pinbuck. Just giving an idea of progressive elaboration that I can start with an idea or a concept, begin to formulate the idea through requirements gathering. Maybe I need a business case. Why we’re investing. Is this what’s the value that’s created. Do I need to do a feasibility study? Study, and then I get to the project. But that’s an example of progressive Elaboration. Anytime I start broad and get more and more specific, I’m elaborating as I have more information to elaborate upon. All right, great job. Keep moving forward. I’ll see you in the next lecture.

7. Project Management Application areas

We have thousands of people in this course from all over the world. And among these thousands of people that are in this course, we could do a survey of what industry do you work in? Now, a lot of people may say they’re in the It field, the It industry industry. But I know we have health care, we have manufacturing, we have construction, probably even industries that I know very little about. Like a lot of things in life I know very little about. But these different industries, though, are application areas. So let’s think about that. We have people, you and others, that are from It or construction or health care or whatever that may be.

How can project management be applied to all of these different areas? Because a project is a project, whether we’re talking about building the pyramids way back in time, or we’re talking about building a skyscraper in your city three years from now, a project is a project. The principles of project management can span all application areas. An application area is just a way of describing your industry. So construction, healthcare, It manufacturing, government, whatever the case may be. A project is a project, regardless of the discipline that you operate in. So it’s a really important concept here that we might have some nuances and some variance between how you manage a project in It and how you do it in health care. But the generally accepted practices are universal that in It or a government project or health care or construction.

We always do initiation. We always plan, we execute, we monitor and control, and we close. I think that’s one of the beautiful things about project management is that it’s a universal approach, that it allows us to speak with the same terminology and the concepts are the same, even though the underlying application area is obviously different. I know very little about construction, and I know I use that as an example a lot. And some of you construction people out there laughing at me, or maybe others are laughing at me too, but I know that much about construction. But the concepts the same in construction or in It or healthcare.

So the concepts are what we’re focused on in this course, not the application area. So when you go to pass your exam, they’re not going to ask you questions about you’re doing a project in It. So how would you address an It risk? I don’t need to know anything about It to answer the concept of project management, that the concepts are universal. And so when it comes to application areas on your exam, don’t get caught up on that. Don’t let that worry you, regardless of what discipline you’re from. The concepts are universal with all of us that are project managers. All right? So be confident. Keep moving forward. I’ll see you in the next slide.

8. Reviewing a Project Life Cycle

For your PMI exam, there are two terms you need to be familiar with the project management lifecycle and the project lifecycle. The project management lifecycle describes the initiation, the planning, the executing, monitoring, controlling, and closing. It’s the common process groups that we all use as project managers. The project lifecycle, though, is unique to each type of project. So it describes the phases of the project. So if you think about in construction that we have the prebuild phase, the permits and the surveys and all the paperwork and so on, then we have the foundation phase, then framing and electrical, then plumbing, then finishing that each phase makes up that project lifecycle.

The project management lifecycle is always initiating, planning, executing, monitoring, controlling, and closing. So we talked about application areas a moment ago. The project lifecycle is unique to the type of work you’re doing. In other words, we won’t have the same project lifecycle in a manufacturing project, as an It project, as a construction project, that those are unique to that applicationary, to the type of work that’s being done. In fact, some projects may have their own unique lifecycle as well, their own unique phases.

So you might not always have a framing phase or a plumbing phase or whatever the case may be in a construction project because maybe you aren’t framing, you’re remodeling or doing a drywall or whatever the case may be in your construction project. The point I’m trying to make is that the project lifecycle is always unique. Each phase describes the work and the deliverable that that phase is creating. So if we have a phase called foundation, we all can relate to, well, that’s creating the foundation in that phase. Or if we have a phase called framing, we’re talking about the skeleton of the house, the framing, the structure. So it’s just a quick way of describing what type of work takes place in that phase, and then the end of that phase creates that deliverable.

So we’re going to see this concept of phases a lot, that the end of one phase allows the next phase to begin. And the end of a phase often creates a milestone. So a milestone is a significant accomplishment in the project. So the end of the foundation phase would create the milestone of the foundation. So it describes what works taking place and what does it create. All right, so that’s the project lifecycle. All right, good job. Keep moving forward.

9. PMP Coach: Don’t Think too Much

I’ve been teaching PMP exam preps for a long time, and I’ve taught this all over the US, all over the world and online. And I’ve noticed a common theme among PMI candidates, among PNP candidates, and they often have a tendency to overthink the questions because they want to be so certain to pass this exam. And they want to be so certain that they’re right, that often they look at a question and they begin to legitimize answers rather than just taking the question at face value. So you can’t read too much into a question. You just answer the question.

So don’t think too much. Don’t overthink this. Although on that same line, I’ve noticed that people who often fail the exam and there have been some folks that don’t pass on the first attempt, they tend to be just really dreading the exam and putting it off and putting it off, and they take a long time to prepare. So I’ve really come to the conclusion that the longer you take to prepare, at some point you have a drop off. So I think for most people, about four to six weeks. Is it that you need to have an intense study time, about four to six weeks. But if you take beyond that, I believe there’s a risk that your retention and interest will really begin to fade and drop off.

Because you’ve got life, you’ve got work, you’ve got other things you’re interested in, and the longer you take to study, you’re just going to lose touch with things that happen early in the course and early in your study efforts. I find that if most people, they can compact it to about four to six weeks. I know that seems like a lot, but it’s really not too bad, four to six weeks of intense studying.

And I know you have other commitments and you’ve got work and so on, so that may not be realistic for everyone, but I would not take a year to study to pass this test. I would encourage people, try to compact your schedule and then don’t overthink answers. But I want you to have confidence that you can do this. Don’t be afraid of this. I think afraid robs more people of success than failure ever does. So don’t fear this. It’s just something you can do. It’s just a test, and it’s a test that’s that I have confidence you can pass. So have that confidence. Don’t overthink compact your efforts and get it done. All right? Keep moving forward. I’ll see you in the next lecture.

10. Section Wrap: Define Project Management Foundations

Great job finishing this section on project management foundations. I know we covered a lot of material in this section, but this is some really important material. Really sets a good foundation or a cornerstone for the remainder of the course as we work towards you passing the PMP. So in this section, we talked about what is a project and what a project is not. Then how does that affect organizations when they go about selecting projects? Is this operations or is it a project? We talked about the temporary nature of projects, that projects are temporary, teams are temporary. And sometimes what projects create the unique product service or result that that can be temporary as well. So we looked at just the temporary nature of projects. We talked about a very important term that we’ll see a few more times throughout the course is business value. That projects create business value. Very important for your exam. Business value. Have a clear understanding about that.

We talked about why projects are even created so the project initiation context why projects are selected and initiated and funded in an organization. We looked at the project management application areas, and we even defined well, what is project management having a clear understanding of what’s project management, how can it work in all of these different application areas? How can it work in construction and healthcare? And it that it’s a set of principles. It’s a framework. It’s the generally accepted practices, and then we can tailor those practices for what’s appropriate in our organization or in our discipline. We looked at reviewing the project lifecycle and then compared that to the project management lifecycle. All right, a lot of information. I know we have a lot yet to COVID We’re just getting going here in our course. You’ve got some good momentum. Keep it up. I want you to keep moving forward. I’ll see you in the next lecture.