PROJECT MANAGEMENT PROCESS GROUPS

 
A Project Management Process Group is a logical grouping of project management processes
to achieve specific project objectives. Process Groups are independent of project phases. Project
management processes are grouped into the following five Project Management Process
Groups:

 Initiating Process Group. Those processes performed to define a new project or a

new phase of an existing project by obtaining authorization to start the project or phase.
 Planning Process Group. Those processes required to establish the scope of the project,
refine the objectives, and define the course of action required to attain the objectives
that the project was undertaken to achieve.
 Executing Process Group. Those processes performed to complete the work
defined in the project management plan to satisfy the project requirements.
 Monitoring and Controlling Process Group. Those processes required to track,
review, and regulate the progress and performance of the project; identify any areas in
which changes to the plan are required; and initiate the corresponding changes.
 Closing Process Group. Those processes performed to formally complete or close the
project, phase, or contract.

Process flow diagrams are used throughout this guide. The project management processes are
linked by specific inputs and outputs where the result or outcome of one process may become the
input to another process that is not necessarily in the same Process Group. Note that Process
Groups are not the same as project phases
 
PROJECT MANAGEMENT KNOWLEDGE AREAS
In addition to Process Groups, processes are also categorized by Knowledge Areas. A
Knowledge Area is an identified area of project management defined by its knowledge
requirements and described in terms of its component processes, practices, inputs, outputs, tools,
and techniques.
Although the Knowledge Areas are interrelated, they are defined separately from the project
management perspective.
 
The ten Knowledge Areas identified in this guide are used in most projects most of the time. This
includes:
 Project Integration Management. Includes the processes and activities to identify,
define, combine, unify, and coordinate the various processes and project management
activities within the Project Management Process Groups.
  Project Scope Management. Includes the processes required to ensure the project
includes all the work required, and only the work required, to complete the project
successfully.
 Project Schedule Management. Includes the processes required to manage the timely
completion of the project.
 Project Cost Management. Includes the processes involved in planning, estimating,
budgeting, financing, funding, managing, and controlling costs so the project can be
completed within the approved budget.
 Project Quality Management. Includes the processes for incorporating the
organization’s quality policy regarding planning, managing, and controlling project and
product quality requirements, in order to meet stakeholders’ expectations.
 Project Resource Management. Includes the processes to identify, acquire, and manage
the resources needed for the successful completion of the project.
 Project Communications Management. Includes the processes required to ensure
timely and appropriate planning, collection, creation, distribution, storage, retrieval,
management, control, monitoring, and ultimate disposition of project information.
 Project Risk Management. Includes the processes of conducting risk management
planning, identification, analysis, response planning, response implementation, and
monitoring risk on a            
 Project Procurement Management. Includes the processes necessary to purchase or
acquire products, services, or results needed from outside the project team.
 Project Stakeholder Management. Includes the processes required to identify the
people, groups, or organizations that could impact or be impacted by the project, to
analyze stakeholder expectations and their impact on the project, and to develop
appropriate management strategies for effectively engaging stakeholders in project
decisions and execution.
The needs of a specific project may require one or more additional Knowledge Areas, for
example, construction may require financial management or safety and health management.
 
PROJECT MANAGEMENT DATA AND INFORMATION
Throughout the life cycle of a project, a significant amount of data is collected, analyzed, and
transformed. Project data are collected as a result of various processes and are shared within the
project team. The collected data are analyzed in context, aggregated, and transformed to become
project information during various processes. Information is communicated verbally or stored
and distributed in various formats as reports.
 
Project data are regularly collected and analyzed throughout the project life cycle. The
following definitions identify key terminology regarding project data and information:
 Work performance data. The raw observations and measurements identified during
activities performed to carry out the project work. Examples include reported percent of
 work physically completed, quality and technical performance measures, start and finish
dates of schedule activities, number of change requests, number of defects, actual costs,
actual durations, etc. Project data are usually recorded in a Project Management
Information System (PMIS).
 Work performance information. The performance data collected from various
controlling processes, analyzed in context and integrated based on relationships across
areas. Examples of performance information are status of deliverables, implementation
status for change requests, and forecast estimates to complete.
 Work performance reports. The physical or electronic representation of work
performance information compiled in project documents, which is intended to generate
decisions or raise issues, actions, or awareness. Examples include status reports, memos,
justifications, information notes, electronic dashboards, recommendations, and updates.
 
Figure 1-7 shows the flow of project information across the various processes used in
managing the project.

TAILORING
Usually, project managers apply a project management methodology to their work. A
methodology is a system of practices, techniques, procedures, and rules used by those who work
in a discipline. This definition makes it clear that this guide itself is not a methodology.
 
This guide is recommended references for tailoring, because these standard documents identify
the subset of the project management body of knowledge that is generally recognized as good
practice. “Good practice” does not mean that the knowledge described should always be applied
uniformly to all projects. Specific methodology recommendations are outside the scope of this
guide.
 
Project management methodologies may be:
 Developed by experts within the organization,
 Purchased from vendors,
 Obtained from professional associations, or
 Acquired from government agencies.

The appropriate project management processes, inputs, tools, techniques, outputs, and life
cycle phases should be selected to manage a project. This selection activity is known as tailoring
project management to the project. The project manager collaborates with the project team,
sponsor, organizational management, or some combination thereof, in the tailoring. In some
cases, the organization may require specific project management methodologies be used.

Tailoring is necessary because each project is unique; not every process, tool, technique,
input, or output identified is required on every project. Tailoring should address the competing
constraints of scope, schedule, cost, resources, quality, and risk. The importance of each
constraint is different for each project, and the project manager tailors the approach for managing
these constraints based on the project environment, organizational culture, stakeholder needs,
and other variables.
 
In tailoring project management, the project manager should also consider the varying levels
of governance that may be required and within which the project will operate, as well as
considering the culture of the organization. In addition, consideration of whether the customer of
the project is internal or external to the organization may affect project management tailoring
decisions. Sound project management methodologies take into account the unique nature of
projects and allow tailoring, to some extent, by the project manager. However, the tailoring that
is included in the methodology may still require additional tailoring for a given project.
 
PROJECT MANAGEMENT BUSINESS DOCUMENTS
The project manager needs to ensure that the project management approach captures the intent of
business documents. These documents are defined in Table 1-5. These two documents are
interdependent and iteratively developed and maintained throughout the life cycle of the project.

The project sponsor is generally accountable for the development and maintenance of the
project business case document. The project manager is responsible for providing
recommendations and oversight to keep the project business case, project management plan,
project charter, and project benefits management plan success measures in alignment with one
another and with the goals and objectives of the organization.
 
Project managers should appropriately tailor the noted project management documents
for their projects. In some organizations, the business case and benefits management plan are
maintained at the program level. Project managers should work with the appropriate program
managers to ensure the project management documents are aligned with the program documents.
Figure 1-8 illustrates the interrelationship of these critical project management business
documents and the needs assessment. Figure 1-8 shows an approximation of the life cycle of
these various documents against the project life cycle.
PROJECT BUSINESS CASE
The project business case is a documented economic feasibility study used to establish
the validity of the benefits of a selected component lacking sufficient definition and that is used
as a basis for the authorization of further project management activities. The business case lists
the objectives and reasons for project initiation. It helps measure the project success at the end of
the project against the project objectives. The business case is a project business document that is
used throughout the project life cycle. The business case may be used before the project initiation
and may result in a go/no-go decision for the project.
A needs assessment often precedes the business case. The needs assessment involves
understanding business goals and objectives, issues, and opportunities and recommending
proposals to address them. The results of the needs assessment may be summarized in the
business case document
The process of defining the business need, analyzing the situation, making
recommendations, and defining evaluation criteria is applicable to any organization’s projects. A
business case may include but is not limited to documenting the following:
 
Business needs:
o Determination of what is prompting the need for action;
o Situational statement documenting the business problem or opportunity to be
addressed including the value to be delivered to the organization;
 o Identification of stakeholders affected; and
o Identification of the scope.
Analysis of the situation:
o Identification of organizational strategies, goals, and objectives;
o Identification of root cause(s) of the problem or main contributors of an
opportunity;
o Gap analysis of capabilities needed for the project versus existing capabilities of
the organization;
o Identification of known risks;
o Identification of critical success factors;
o Identification of decision criteria by which the various courses of action may be
assessed;
Examples of criteria categories used for analysis of a situation are:
o This is a criterion that is “required” to be fulfilled to address the problem or
opportunity.
o This is a criterion that is “desired” to be fulfilled to address the problem or
opportunity.
o This is a criterion that is not essential. Fulfilment of this criterion may become a
differentiator between alternative courses of action.
 
Identification of a set of options to be considered for addressing the business problem or
opportunity. Options are alternative courses of action that may be taken by the organization.
Options may also be described as business scenarios. For example, a business case could present
the following three options:
 Do nothing. This is also referred to as the “business as usual” option. Selection of this
option results in the project not being authorized.
 Do the minimum work possible to address the problem or opportunity.  The minimum
may be established by identifying the set of documented criteria that are key in
addressing the problem or opportunity.
 Do more than the minimum work possible to address the problem or opportunity. This
option meets the minimum set of criteria and some or all of the other documented criteria.
There may be more than one of these options documented in the business case.
 
Recommendation:
A statement of the recommended option to pursue in the project;

o Items to include in the statement may include but are not limited to:
 o Analysis results for the potential option;
o Constraints, assumptions, risks, and dependencies for the potential options; and
o Success measures
 
An implementation approach that may include but is not limited to:

o Milestones,
o Dependencies, and
o Roles and responsibilities.
 
Evaluation:
Statement describing the plan for measuring benefits the project will deliver. This should include
any ongoing operational aspects of the recommended option beyond initial implementation.
 
The business case document provides the basis to measure success and progress throughout the
project life cycle by comparing the results with the objectives and the identified success criteria.
 
PROJECT BENEFITS MANAGEMENT PLAN
 
The project benefits management plan is the document that describes how and when the
benefits of the project will be delivered, and describes the mechanisms that should be in place to
measure those benefits. 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. Development of the benefits management plan begins early in
the project life cycle with the definition of the target benefits to be realized. The benefits
management plan describes key elements of the benefits and may include but is not limited to
documenting the following
 Target benefits (e.g., the expected tangible and intangible value to be gained by the
implementation of the project; financial value is expressed as net present value);
 Strategic alignment (e.g., how well the project benefits align to the business strategies of
the organization);
 Timeframe for realizing benefits (e.g., benefits by phase, short-term, long-term, and
ongoing);
 Benefits owner (e.g., the accountable person to monitor, record, and report realized
benefits throughout the timeframe established in the plan);
 Metrics (e.g., the measures to be used to show benefits realized, direct measures, and
indirect measures);
  Assumptions (e.g., factors expected to be in place or to be in evidence); and
 Risks (e.g., risks for realization of benefits).
Developing the benefits management plan makes use of the data and information
documented in the business case and needs assessment. For example, the cost-benefit analyses
recorded in the documents illustrate the estimate of costs compared to the value of the benefits
realized by the project. The benefits management plan and the project management plan include
a description of how the business value resulting from the project becomes part of the
organization’s ongoing operations, including the metrics to be used. The metrics provide
verification of the business value and validation of the project’s success.

Development and maintenance of the project benefits management plan is an iterative

activity. This document complements the business case, project charter, and project management
plan. The project manager works with the sponsor to ensure that the project charter, project
management plan, and the benefits management plan remain in alignment throughout the life
cycle of the project.
 
PROJECT CHARTER AND PROJECT MANAGEMENT PLAN
The project charter is defined as a document issued by the project sponsor that formally
authorizes the existence of a project and provides the project manager with the authority to apply
organizational resources to project activities.

Project Management Plan - is defined as the document that describes how the
project will be executed, monitored, and controlled.

PROJECT SUCCESS MEASURES

One of the most common challenges in project management is determining whether or
not a project is successful.
Traditionally, the project management metrics of time, cost, scope, and quality have been
the most important factors in defining the success of a project. More recently, practitioners and
scholars have determined that project success should also be measured with consideration toward
achievement of the project objectives.
Project stakeholders may have different ideas as to what the successful completion of a
project will look like and which factors are the most important. It is critical to clearly document
the project objectives and to select objectives that are measurable. Three questions that the key
stakeholders and the project manager should answer are:
 What does success look like for this project?
 How will success be measured?
 What factors may impact success?
 The answer to these questions should be documented and agreed upon by the key
stakeholders and the project manager.
 
Project success may include additional criteria linked to the organizational strategy and to the
delivery of business results. These project objectives may include but are not limited to:
-Completing the project benefits management plan;
-Meeting the agreed-upon financial measures documented in the business case. These
financial measures may include but are not limited to:
o Net present value (NPV),
o Return on investment (ROI),
o Internal rate of return (IRR),
o Payback period (PBP), and
o Benefit-cost ratio (BCR).
-Meeting business case nonfinancial objectives;
o Completing movement of an organization from its current state to the desired
future state;
o Fulfilling contract terms and conditions;
o Meeting organizational strategy, goals, and objectives;
o Achieving stakeholder satisfaction;
o Acceptable customer/end-user adoption;
o Integration of deliverables into the organization’s operating environment;
o Achieving agreed-upon quality of delivery;
o Meeting governance criteria; and
o Achieving other agreed-upon success measures or criteria (e.g., process
throughput).
 The project team needs to be able to assess the project situation, balance the demands, and
maintain proactive communication with stakeholders in order to deliver a successful project.
 When the business alignment for a project is constant, the chance for project success greatly
increases because the project remains aligned with the strategic direction of the organization.
 It is possible for a project to be successful from a scope/schedule/budget viewpoint, and to be
unsuccessful from a business viewpoint. This can occur when there is a change in the business
needs or the market environment before the project is completed.