Introduction to Course 3

Hello! Welcome to this course called "Planning: Putting It All Together." If you've already completed
our previous courses, then you have a great foundation for what it takes to initiate a project and kick
off the planning phase. Before we get started, let me introduce myself. My name is Rowena, and I'll
be your instructor for this course. I work as a senior program manager in Google Cloud on a variety
of projects. I mostly focus on systems and productivity enhancements for my team, which consists of
around 100 full time employees and more than 300 contractors around the world. Some of the
largest-scale projects that I work on impact Google Cloud sales and global sales support teams,
which are made up of a thousands of people. But I didn't start out building solutions for thousands
of people at a global company. I left school at the age of 17 with no college degree and no real plan.
Before Google, I worked in retail, hospitality, and even in the airline industry as a crew member.
When I joined the corporate world, I noticed something. The processes were just as messy as the
stock rooms of the retail stores where I'd worked. There was so much room to improve. I came to
realize that every business is complicated and that there's always room to create order. So I started
thinking about ways to automate my day-to-day tasks. I was emailing ideas to my manager and
colleagues, working with teams across the company, brainstorming solutions to problems,
coordinating training for my coworkers, and so much more. That's when it became clear— I was
project managing. I transferred into a role focused entirely on program management at Google's
headquarters in Mountain View, California. In my job interview, I focused on examples of how I
applied these transferable skills from my previous roles, and how I could leverage the knowledge I
gained from my experience. Four years later, I'm here and I'm so excited to be partnering with you
on this learning journey. From the outside, big, global companies can seem as though they have it all
figured out. But there's always room for new processes, and you likely have the skills and insights
from your previous experiences that can be useful. So keep going— you're heading in the right
direction. This course is focused on the planning phase. I'll share the tools and techniques to
complete this phase. First up, I'll demonstrate how to kick off the planning phase. Then we'll explore
the importance of setting and reaching milestones. For every milestone, there'll be a set of tasks to
complete, so I'll teach you some tips for breaking down and distributing the workload. Later, we'll
discuss the budget and how the overall budgeting process works. We'll learn about people or
companies outside of your organization that may play a role in determining the budget, and we'll
discuss the importance of sufficiently documenting your budget. Then we'll discuss the various risks
and the possible impact those risks can have on the project. Nothing ever goes quite as planned, but
risk management is a great way to make sure you know what could go wrong and how you'll address
it. This includes communicating possible risks to your stakeholders, creating a mitigation plan, and
then keeping an eye on those risks to make sure they don't stall your projects. Last but not least,
documentation ties it all together. Keeping all your project plans documented and organized not
only helps you, but it also helps those involved knowing their responsibilities. Documentation also
provides stakeholders with a window into the development of the project. It has always been
important to the success of my own projects at Google, and I'm excited to explore this topic with
you. Ready to get started? Meet you in the next video.

Course 3 overview
Hello! Welcome to the third of the six courses in the Google Project Management
Certificate program.
This course will explore how to map out a project in the second phase of the project life
cycle: the project planning phase. You will examine the key components of a project plan,
how to make accurate time estimates, and how to set milestones. Next, you will learn how
to build and manage a budget and how the procurement processes work. Then, you will
discover tools that can help you identify and manage different types of risk and how to use
a risk management plan to communicate and resolve risks. Finally, you will explore how to
draft and manage a communication plan and how to organize project documentation.
Current Google project managers will continue to instruct and provide you with hands-on
approaches for accomplishing these tasks while showing you the best project
management tools and resources for the job.

In this reading, you will learn about the Project Management Certificate program structure
and course functionality. If you already read this in the last course and don't need a
refresher, feel free to skip it. If you’re new to the program, welcome! We’ve specifically
designed the program you’re about to explore to help every type of learner successfully
finish the certificate and get ready for a role in project management. No previous
experience is required.

Become job-ready

In this Google Project Management Certificate program, you will learn the foundations of
traditional project management and gain insight into Agile project management.
According to the Project Management Institute, the project management labor force in
seven project-oriented sectors is expected to grow by 33 percent, or nearly 22 million new
jobs, by 2027.* We are excited to join you on this journey as you learn the skills to begin a
career in one of today’s most in-demand professions.

Course 3 covers five weeks of material. Each week includes a series of lessons with many
types of learning opportunities, such as:

 Videos with a Google employee as your instructor. 

 Readings to introduce new ideas and case studies and to build on the concepts
from the videos. 
 Discussion forums to explore course topics for better understanding and chat with
peers in the program. 
 In-video questions that will pop up from time to time. They’re designed for you to
check your learning as you go! 
  Practice quizzes to check your understanding and give you valuable feedback.
Practice activities will provide you with a hands-on opportunity to apply skills you
are working to master. You will assess your work by answering quiz questions
about it or by comparing it to an exemplar built by our course team. Note: these
will not count towards your final course grade, but you are strongly encouraged to
complete them as they will help prepare you for the graded quizzes and peer
reviews.
 Graded quizzes on video and reading content to measure your progress. 
 Ungraded peer-review activities on video and reading content  that provide you
the opportunity to practice applying skills you are working to master. Other
learners in your course will see the work you submit and give you feedback based
on a rubric. 
Everyone learns differently, so we designed this program to let you work at your own
pace. Although your personalized deadlines start when you enroll, they’re just a guide.
Feel free to move through the program however it works best for you. Keep in mind, you
can always reset your deadlines by clicking the blue reset my deadlines button. There’s no
penalty for late assignments. To earn your certificate, all you have to do is complete all of
the work.

Tips

 We strongly recommend you take all six courses—and complete the items in each
lesson—in the order they appear, as new information and concepts build on
previous ones. 
 Make the most of the readings and additional resources throughout the program.
They’re designed to support your learning. 
 If something is confusing, don’t hesitate to rewatch a video, go through a reading
again, or ask your classmates for advice in the discussion forum. 
 Take part in all learning opportunities to gain as much knowledge and experience
possible. 
Congratulations on choosing to take this first step toward becoming a part of the
wonderful world of project management. Enjoy the journey!

*Source: PMI (2017). Project Management Job Growth and Talent Gap 2017–2027.

Helpful resources to get started

The Google Project Management Certificate will provide you with new lessons every week.
As you’ve learned, each lesson includes a series of videos, readings, activities, in-video
questions, practice quizzes, and graded quizzes. In this reading, you’ll learn about
providing feedback on course content, obtaining the Google Project Management
Certificate, and acquiring helpful habits for successfully completing this certificate
program. 
Providing feedback on course content

Please remember to give feedback on videos, readings, and materials. Just open the
resource and look for the thumbs-up and thumbs-down symbols. 

 Click thumbs-up for materials that are helpful. 

 Click thumbs-down for materials that are not helpful.
If you want to flag a specific issue with the item, click the flag icon, select a category, and
then optionally type an explanation in the text box.

This feedback goes to the course developers, not other learners, and helps create even
better programs in the future. 

For technical help, visit the Learner Help Center. 

Obtaining the Google Project Management Certificate

You can review videos, readings, discussion forums, in-video questions, and practice
quizzes in the program for free. However, to access graded assignments and be eligible to
receive your official Google Project Management Certificate, you must:

 Pay the Course Certificate fee, or apply and be approved for a scholarship.
AND

 Pass all graded assignments in all six courses or meet the course-passing
threshold. Each graded assignment is part of a cumulative graded score for the
course, and the passing grade for each course is 80%. 

Helpful habits to successfully complete the certificate

As a learner, you’re bringing all of your past experiences and best learning practices to this
program. The designers of this course have also put together a list of helpful habits that
they believe will help you to be successful: 

1. Plan your time: Setting regular study times and sticking with them each week can
help you make learning a part of your routine. Use a calendar or timetable to
create a schedule, and list what you plan to do each day in order to break your
work down into achievable goals. Create a quiet place to watch the videos, review
the readings, and complete the activities so you can really focus on the material.
2. Be curious: If you find an idea that gets you excited, act on it! Ask questions,
search for more details online, check out the links that interest you, and take notes
on your discoveries. The little things you do to support your learning along the way
will take your knowledge even further, open more doors in this high-growth field,
and help you qualify for jobs. 
3. Take notes: Notes are useful-to-remember information that you think might be
important in the future, especially as you’re preparing to enter a new job field. In
 addition, taking notes is an effective way to make connections between topics and
gain a better understanding of those topics.
4. Chat (responsibly) with other learners: If you have a question, chances are, you’re
not alone. Reach out in the discussion forums to ask for help from other learners
taking this program. You can also visit Coursera’s Global Online Community. Other
important things to know while you’re making friends can be found in the Coursera
Honor Code and Code of Conduct.
5. Update your profile: Consider updating your profile on Coursera. This link appears
in the menu when you click on your name at the top-right corner of this screen.
When classmates find you in the discussion forums, they can click on your name to
view your profile and get to know you more.

Finding more information

Throughout this course, you will learn the basics of project management. We will provide
a lot of information through videos and readings. But sometimes, you may need to look
things up on your own for additional learning. Things change fast in this growing field, so
it is critical to do your own research so you can stay up-to-date on what is new. 

Here are some helpful project management resources available online:

 The Project Management Institute is the leading association for those in project,
program, or portfolio management professions. Their website provides guides,
industry standards, articles, templates, job boards, certifications, and more to help
support professionals in these careers.
 The Scrum Guide defines Scrum, a technique used in Agile project management.
You’ll learn about the framework later in this program. This guide describes
Scrum’s roles, events, artifacts, and the rules that bind them together. You can also
find hundreds of free resources to learn more about Scrum at Scrum.org
Resources.

Digital documents, spreadsheets, and presentations 

You will complete activities using a variety of digital documents, spreadsheets, and
presentation templates. These templates align with the document types that project
managers often use to create, edit, and collaborate with their team and organization.
Digital documents make it easy to collaborate in real time and stay organized.

If you’re not familiar with these types of tools, check out the course Resources. 

Glossary

This course will cover a lot of terms and concepts, some of which you may already know
and some of which will be new. To remind yourself about what a term means, refer to this
Glossary.
Accessibility guidelines

When you create written or visual content or plan a meeting or event, follow these
Accessibility Tips to make it more accessible to everyone, including people with
disabilities.

The benefits of project planning

Hi again. In the previous course, you learned about the initiation phase. During the initiation phase,
the project manager is gathering all of the necessary preliminary information needed to get
stakeholder approval and plan the project. A few key things need to happen during this time. First,
the project manager gets assigned—that's you! Then, the goals of the project have to be approved,
as well as the scope of the project and its deliverables. A number of people will need to be assigned
to the project, and you'll have a good sense of their individual roles and responsibilities. You'll also
need stakeholder sign off on your project charter. If all of these criteria have been met, then you're
set to begin planning. Planning is a significant part of ensuring a project's success, so let's take some
time to discuss why it's so important. Planning is important for any project, large or small. While
planning your project, you and other members of the team will determine the processes and
workflows needed to meet your goals and put together ideas about how to make the project a
success. While planning, you might draw from previous project experience, but don't be afraid to
think of new ways to get results. Every project is different, so new and different approaches may be
just the thing you need. Planning has many benefits. As we've discussed, planning helps you map out
the full project. It helps you understand the work needed to achieve your goals. Planning also helps
coordinate efforts and timelines with other teams, contractors, and vendors. Another huge benefit
of planning is that it gives you time to identify and prepare for risks that could impact your project.
Those might include things like a delay in the timeline, the departure of a critical team member, or a
change in project direction from a primary stakeholder. Planning also gives you the chance to
brainstorm ways to mitigate or address those risks. There are less obvious benefits too. For example,
the planning phase can help you get "buy-in" from key members of the project team. Getting buy-in
means that you've gained their support for your plans. Planning also demonstrates to stakeholders
that the team is taking care to start the project with a detailed plan. But one of the most significant
benefits of planning is teamwork, which will help you push your project across the finish line. By
working together in the planning phase, individuals assigned to the project can become a strong
team by the time the planning is done and the work is about to start. Planning together creates a
shared understanding among all parties involved in the project. So to recap, planning has many
benefits from helping the team to understand the work needed to achieve their goals, to providing
project plans to the stakeholders. Now that you know a bit more about planning, we'll learn how to
launch the planning phase. Meet you in the next video.

Launching the planning phase

Hello again. In the last video, we discussed the importance of planning. Now let's get into the details
of how to launch the planning phase. As you learned earlier, the planning phase is the second phase
of a project's life cycle. This can be a challenging time for a project manager because there's so much
to consider. But it's important to know that project plans don't have to be perfect the very first time.
And, even if you do a great job with your plans the first time around, it's likely that the plan will
change as the project evolves. The planning phase may differ from project to project, but generally
three big things are worked out during this stage: the schedule, the budget, and the risk
management plan. We'll discuss each of these in greater detail later on in the course. But for now,
here's some general information so you can understand why these three elements are so crucial to
planning. Let's start with the schedule. The schedule is basically a timeline of the project. It includes
the start date, the end date, and the dates for things that will happen in between. You will use time
estimation techniques to determine these dates. Let's imagine scheduling in our example project at
Office Green. As a reminder, you are the lead project manager for project Plant Pals, a new service
that will provide top clients with desk-friendly plants. You want to launch the service by the end of
the year, so the planning phase for this effort should include a number of key dates. Those dates
might include when you'll request proposals from plant vendors. They might also include the date
you'll kick off with the web designers and developers who are creating a new website for the service.
It should also include important dates during the project execution phase, like when the plants need
to be ready for delivery or when the new webpage design needs to be approved, and you'll need to
include the target date for the launch of the service. Another part of the planning phase is setting
the budget. The budget will account for the total cost to complete the project. The total cost needs
to be broken down to determine how much has to be spent on different elements of the project. For
project Plant Pals, the budget will need to include items like the cost of designing and launching a
webpage, the cost of hiring your plant vendor, and much more. The third component of the planning
phase is risk management, which means searching for possible problems and planning ahead to
mitigate these risks. Let's face it, risk is inevitable in every project. What's not inevitable is how the
risk impacts your project. Good project planning means searching for places where trouble might
occur. Where might the schedule get off track? Where might the budget exceed your estimates?
You'll work with your team to consider answers to these questions and prepare a risk management
plan based on whatever you discover. Let's go back to the Office Green example. While putting
together the initial schedule, you may realize that your estimates from your developers put you way
beyond your launch date. To manage that risk, you might try to reduce or adjust the project's scope
to still meet your deadline or even negotiate a new launch date with your stakeholders. These are
two simple examples of how you might mitigate a scheduling risk. So to recap, you'll spend the
planning phase building your schedule, setting your budget, and preparing your risk management
plan, but first you need to get the whole team on board. Next, we'll discuss the project kick-off
meeting, which is where the project really gets going. Meet you there.

Reflection: Project planning considerations

Total points 4

1.
Question 1

In this exercise, you will read a scenario and answer questions about a project's schedule, budget, and
potential risks. Start by reading the scenario:

Imagine that you’re a project manager helping a restaurant owner launch an updated menu with a few
new food items at 15 locations. The owner would like you to oversee the redesign of the menu and
distribution to all locations. 

You're preparing for your project’s eventual kickoff meeting. Right now, you’re thinking through the
three main planning activities: building the schedule, assessing the budget, and considering potential
risks. 

Have you read the scenario?

1 / 1 point

I have!
Correct

Great! Now, compare your answers to the feedback below.

2.
Question 2

Write 2-3 sentences addressing what you should consider when forming the tentative project schedule.
1 / 1 point

The schedule is basically a timeline of the project. It includes the start date, the end date, and the
dates for things that will happen in between.

Correct

Did you consider these ideas in your schedule? When working through a potential schedule for a
project, you should include several key dates. The dates may include important constraints from
vendors, kickoffs dates, and when to complete certain tasks. Make sure to include a target date for the
product (menu) launch, and validate that with the client. Remember, the schedule isn’t permanent.
While you would like to stick to the schedule as closely as possible, it may change.
3.
Question 3

Write 2-3 sentences about what you should consider when creating a project budget.
1 / 1 point

The budget will account for the total cost to complete the project. The total cost needs to be
broken down to determine how much has to be spent on different elements of the project

Correct

Did you consider these ideas in your budget? Call vendors and get quotes of items you may need to
purchase. Include any pay for teammates or fees for outside consultants or service-based vendors.
Include any software costs you may need to help you organize and manage your project. What if the
project is delayed—are any fees associated with the delay?
4.
Question 4

Write 2-3 sentences on what you should consider when listing potential risks.
1 / 1 point

risk is inevitable in every project. What's not inevitable is how the risk impacts your project. Good
project planning means searching for places where trouble might occur. Where might the
schedule get off track? Where might the budget exceed your estimates?

Correct

Did you consider these ideas in your potential risks? Budget items that are likely to increase in cost.
Think about days off for team members, and consider any holidays or vacation days. What about tasks
and deliverables that could delay the project? Feedback from stakeholders could also cause delays.

Facilitating a project kick-off meeting

What is the purpose of a project kick-off meeting? Select all that apply.

Align on the scope

Correct
A project kick-off meeting is the formal start to project planning. It is the first meeting in
which a project team comes together to establish a shared vision, align on the scope, and
build team rapport.

Build team rapport

Correct
A project kick-off meeting is the formal start to project planning. It is the first meeting in
which a project team comes together to establish a shared vision, align on the scope, and
build team rapport.

Set the budget

Establish a shared vision

Correct
A project kick-off meeting is the formal start to project planning. It is the first meeting in
which a project team comes together to establish a shared vision, align on the scope, and
build team rapport.

Tips for leading a successful kick-off meeting

In the previous video, you learned what a project kick-off meeting is and what it involves.
As a reminder, a kick-off meeting is the first meeting among the project team,
stakeholders, and the project sponsor at the start of a new project or new project phase.
The purpose of a kick-off meeting is to ground everyone in a shared vision, ensure they
understand the project’s goals and scope, and make sure that they are all on the same
page about their roles and responsibilities on the project. The kick-off meeting is critical to
a project’s overall success. It gets the team together to align on goals and visions for the
project and sets the project up for success.

This reading will provide you with some tips for running an effective kick-off meeting. 
Kick-off meeting best practices

 Set the right time. Choose a meeting time that works for everyone. Be mindful of
time zone differences. 
 Set the right length. Choose an appropriate meeting length—no more than one
hour. You don’t want to waste people’s time, but you also don’t want to run out of
time. Kick-off meetings work best when you first share key information and then
spend any additional time on questions and team building.
 Invite the right people. Be strategic about including the appropriate people. The
goal is to invite attendees who play a role in the development and execution of the
project, such as all team members, stakeholders, and the project sponsor. You
don’t want to leave anyone out, but you also don’t want to invite people who
shouldn’t be there.
 Designate a notetaker. The discussion that takes place during the meeting is
important. It is critical that you document any feedback, changes, or questions
asked by attendees. If you are leading the meeting, designate someone else to take
notes before the meeting starts. You can also use tools like Chorus Notetaker,
Google Keep, Google Docs, or Microsoft OneNote.  
 Set the agenda. To recap what we discussed in the video, a kick-off meeting
agenda should generally include: introductions, the project background and
purpose, project goals and scope, roles and responsibilities, the collaboration
process and project tools, what comes next (expectations and action items), and
time for questions and discussion.
 Share the agenda. Prior to the meeting, share the agenda with attendees via email
and identify speakers for each topic. By sending the agenda in advance, everyone
will have an idea of what to expect, time to prepare for anything they may need to
present or discuss, and time to generate questions or ideas.
  Stick to the agenda. During meetings, discussions can sometimes go off topic or
take longer than expected. As a project manager, it is your job to keep the meeting
on track by redirecting discussions to the items on the agenda. 
 Follow up after the meeting. After the meeting, make sure to send out a meeting
summary featuring the meeting notes and any action items.

1.
Question 1

Which three of the following are benefits of project planning?

0.75 / 1 point

It helps you map out the full project.

Correct

Planning helps you understand the work needed to achieve your goals. Planning also helps coordinate
efforts and timelines with other teams, contractors, and vendors. It also gives you time to identify
project risks and create a shared understanding among all parties involved in the project.

It helps you brainstorm preliminary goals for the project.

This should not be selected

All projects should have clear goals, but you should define them during the initiation phase. Some of
the benefits of project planning include helping you map out the project, giving you time to identify
and prepare for risks, and building a strong project team. 

It helps individuals assigned to your project become a strong team by working together.
Correct

Planning together creates a shared understanding among all parties involved in the project. It prepares
everyone for the teamwork that will be necessary when the planning is done and the work starts. It also
helps you map out the full project and gives you time to identify risks.

It gives you time to identify and prepare for risks that could impact your project. 
Correct

Planning can help you identify and prepare for things like a delay in the timeline, the departure of a
critical team member, or a change in project direction from a primary stakeholder. It also gives you the
chance to brainstorm ways to mitigate or address those risks. Additionally, it helps you map out the full
project and helps individuals assigned to the project become a strong team. 
2.
Question 2

What are three major project components that are worked out during the planning phase?
1 / 1 point
Success criteria, stakeholders, and resources

Schedule, budget, and risk management plan

Scope, goals, and deliverables

Project tracking, quality management, and retrospectives 

Correct

During the planning phase, you determine the project’s schedule, budget, and risk management plan.
The schedule is a timeline of the project. The budget accounts for the total cost to complete the
project. And the risk management plan involves searching for possible problems and planning ahead to
mitigate these risks.
3.
Question 3

During the kickoff meeting, which agenda item involves discussing how the project came to be and why
the project matters?
0 / 1 point

Goals and scope

Collaboration

Background

Roles
Incorrect

When you discuss goals and scope, you address what is considered in-scope and out-of-scope for the
project. You also highlight any important milestones. When you discuss the project’s background, you
describe how the project came to be, why it matters, and what key details are important.
4.
Question 4

Which of the following are best practices when you are leading a kickoff meeting? Select all that apply.
1 / 1 point

Set the right time.

Correct

Choose a meeting time that works for everyone. Be mindful of time zone differences. Other best
practices include: Invite the right people; designate a notetaker; set, share, and stick to the agenda;
and follow up after the meeting.
Share the agenda.
Correct

Prior to the meeting, share the agenda with attendees via email and identify speakers for each topic. By
sending the agenda in advance, everyone will have an idea of what to expect, time to prepare for
anything they need to present or discuss, and time to generate questions or ideas. Other best practices
include: Set the right time and length; invite the right people; stick to the agenda; and follow up after
the meeting.

Follow up after the meeting. 

Correct

After the meeting, send out a meeting summary featuring the meeting notes and any action
items. Other best practices include: Set the right time and length; invite the right people; designate a
notetaker; and set, share, and stick to the agenda.

Take your own thorough notes.

Understanding tasks and milestones

Hi again. As we've discussed throughout this program, the project manager is responsible for
assigning work to the team and keeping track of the project's progress. When we discuss assigning
work, we'll use a few key terms, project milestones, and project tasks. Let's break these down. A
project milestone is an important point within the project schedule that indicates progress and
usually signifies the completion of a deliverable or phase of the project.

Play video starting at ::31 and follow transcript0:31

These are significant checkpoints in your project, and keeping track of them helps ensure that your
project is on schedule to meet its goals. For example, a milestone might include completing the first
draft of a report, and the goal may be to ultimately publish the report. Another example of a
milestone is receiving sign off, or approval from your customer on a major deliverable. Let's discuss
how milestones differ from project tasks. A project task is an activity that needs to be accomplished
within a set period of time. The work of a project is broken down into many different tasks. In order
to reach a milestone, you and your team must complete multiple tasks. For example, if a milestone is
completing the first draft of a report, the tasks required to get to that milestone might include hiring
a writer, conducting research, and drafting different sections of the report. Let's imagine milestones
and tasks in the context of Project Plant Pals at Office Green.

Play video starting at :1:36 and follow transcript1:36

One of your project deliverables is to launch a website for your new service, where customers will be
able to place orders and get customer support.

Play video starting at :1:44 and follow transcript1:44

Some of the milestones leading up to that launch will include securing approval on the website
design and implementing feedback from user testing. To achieve those milestones, your team needs
to complete multiple project tasks. For example, in order to reach the design milestone, your
website designer will need to create initial mockups of the proposed website design.
Play video starting at :2:8 and follow transcript2:08

You'll need to review those mockups, and the designer will need to implement your feedback.

Play video starting at :2:13 and follow transcript2:13

Each of these items is a project task, and you won't reach your milestone until they're complete.

Play video starting at :2:20 and follow transcript2:20

To review, milestones are important points within the project schedule, and project tasks are
activities that need to be accomplished within a set period of time to help reach those milestones.
Milestones and project tasks are interconnected. Tasks ladder up to milestones, which are crucial for
project tracking. Now that you know more about milestones, project tasks, and how the two differ,
we'll learn more about the importance of milestones in the next video. I'll meet you there.

The importance of setting milestones

How can setting milestones help you keep your project on track?

When you set a milestone, you assess what went well with the project and what processes
could be improved.

When you set a milestone, you illustrate real progress to your project stakeholders.

When you set a milestone, you assign team members to take ownership of specific tasks.

When you set a milestone, you assign clear deadlines for when certain project deliverables
need to be completed.
Correct
When you set milestones, you assign clear deadlines for certain project deliverables. You
can track these deadlines as your project progresses to ensure it is moving forward at the
right pace. This helps you keep your project on track.
Great to see you again. So you've learned that a milestone is an important point within the project
schedule that highlights progress and usually marks the completion of a deliverable or phase in the
project. But now, let's talk about why setting milestones within your project is so important. While it
might seem tempting to make a quick to-do list and get on with the project, it's really important that
you take the time and effort to break your project down piece by piece. Here's why. First, setting
milestones gives you a clear understanding of the amount of work your project will require. The act
of setting milestones forces you to break your project down into more manageable chunks. The
further you go, the better you'll be able to see how much work will be needed to meet the project
goals. At first glance, it might seem simple to launch a new website, but it might be more work than
you think. If you break that deliverable down into milestones and those milestones into tasks, you
will have a better sense of the true amount of work that needs to be done. This will help you better
manage the project workload. Another reason milestones are so great is that they can help keep
your project on track. When you set a milestone, you assign clear deadlines for when certain project
deliverables need to be completed. Then, as you work through the execution phase, you can look
back at these deadlines to make sure that the project is progressing at the right pace. A third reason
you'll want to set milestones is that they help you uncover areas where you might need to adjust
scope, timelines, or resources to meet your goals. For example, if you realize that reaching a
milestone will require more tasks than you'd anticipated, you might ask a stakeholder for permission
to reduce the scope of the project and cut down on the number of tasks. And finally, there's one
more reason milestones are so important. Actually reaching milestones can seriously motivate your
team and illustrate real progress to your stakeholders. With big projects that go on for months, you'll
want to keep the teams motivation high. A milestone signifies the completion of an important chunk
of work and provides a moment of celebration for the team, even if there's more work ahead.
Milestones also serve as a great check-in point to highlight your progress to stakeholders. It gives
them the opportunity to see the work that's been completed so far and lets them see everything is
on track and up to their standards. It's also important to remember that milestones must be
completed on time and in sequential order because, usually, reaching the next milestone is
dependent on completing a previous milestone. Think about this in terms of Project Plant Pals at
Office Green. As we discussed earlier, in order to launch a website for a new plant service, there are
a few milestones you need to hit, like securing approval of a website design, completing
development of the website, and implementing user feedback. These milestones must happen in
this order. Here's why. The web developer can't build the website if the design hasn't been approved
by stakeholders, and you can't implement feedback from user testing if there's no website to test. So
we know it's important to reach milestones in sequential order, but it's just as important that you
reach them on time. If the team misses the mark to complete a deliverable tied to a specific
milestone, it could set back your project schedule, meaning your team might need to work overtime
or add additional resources to catch up. For example, if you need to secure stakeholder approval on
a website design by Friday but the web designer hasn't completed the design yet, you might have to
wait until after the weekend to secure stakeholder approval. This will delay the start of the
development phase, giving your team less time to build the website. Even worse, this delay could
affect the project budget if completing this deliverable directly ties to a payment from the client. If
you miss the deadline, you will likely delay receipt of that payment. You might even risk losing the
payment altogether. Though deadlines are sometimes flexible, it's important to be extra mindful of
milestones where the deadline is non-negotiable. And that's that! Hopefully, you understand why
milestones are important to any project. Coming up, we'll discuss how to set milestones for your
project. See you there.

How to set milestones

Hi again. Okay, so you know that milestones are pretty important. They help give you a clear picture
of the amount of work required. They help your project stay on track, uncover areas where you
might need additional resources, motivate your teammates, and show progress to your
stakeholders. So now, let's talk about identifying milestones within your project and how you can set
deadlines for each one. The first step to setting a milestone is to evaluate your project as a whole. It
helps to refer back to your project charter to remind yourself of the project goal. Then, make a list of
what your team needs to do to achieve that goal. The big items that indicate progress are your
milestones. These are the key points within the project schedule that signify the completion of a
project deliverable or a phase in the project. Smaller items, like any item that a stakeholder wouldn't
need to review, for example, are tasks. You'll plan for these once you've separated them out from
the milestones. So let's go back to our Office Green example. One of the project deliverables is a new
website. And as we determined earlier, some milestones through our Office Green website scenario
include securing approval of website design, completing development of the website, and
implementing user feedback. Mocking up initial designs or building a landing page are smaller items
on your list, so those are marked as tasks. Try to keep in mind that some projects might have many
milestones, while others might just have two or three. There's no one right number of milestones to
set —the number will vary from project to project. Once you've determined your milestones, the
next step is to assign each one a deadline. Reaching each of your milestones is dependent on the
completion of multiple project tasks. So to make sure you give your team a fair amount of time to
complete each of those tasks, you'll need to space your milestones out accordingly. For a larger,
months-long project like Project Plant Pals, you shouldn't expect to meet multiple milestones in the
span of a week. Mocking up website designs and collecting insights from user testing are big tasks
that take time. You need to space milestones out to give your team room to complete their work. To
get a good sense of timing, you can connect with teammates to discuss the tasks required to reach
each milestone and get their estimates for how long these tasks will take. With those estimates in
mind, you can make an informed decision about reasonable deadlines for each milestone. When you
set deadlines for milestones, you will also want to consider the needs of your stakeholders. Ask
yourself when they'll expect to see a certain project deliverable, and consider the answer when
choosing a deadline. Your stakeholders will want to see regular indications that the team is making
progress, and milestones are a great way to show that progress. So to recap, you set milestones by
looking at your project as a whole and pulling out important checkpoints that show progress. Then
you assign deadlines to each milestone while keeping the needs of your stakeholders top of mind.
Next up, we'll discuss a helpful tool for breaking down the tasks that ladder up to each milestone.
See you there.

Setting milestones: Best practices

You have learned what milestones and tasks are and when, where, and how you will use
them as a project manager. In this reading, we will explore best practices for setting
milestones. But first, let’s revisit the definitions of tasks and milestones. 

 A project task is an activity that needs to be accomplished within a set period of

time and is assigned to one or more individuals for completion. The work of a
project is broken down into many different project tasks. 
 A project milestone is an important point within the project schedule that usually
signifies the completion of a major deliverable. Milestones are significant
checkpoints in your project, and keeping track of them helps ensure that your
project is on schedule to meet its goals.
Set tasks to identify milestones

Setting tasks can help you clearly define milestones. You can do this in two ways:

1. Top-down scheduling: In this approach, the project manager lays out the higher-
level milestones, then works to break down the effort into project tasks. The
project manager works with their team to ensure that all tasks are captured.
2. Bottom-up scheduling: In this approach, the project manager looks at all of the
individual tasks that need to be completed and then rolls those tasks into
manageable chunks that lead to a milestone. 
Most projects have many tasks that lead to milestones. For instance, if your milestone is to
receive approval on the first draft of an article that you are writing, you might complete
tasks such as “develop outline,” “write first draft,” and “send to the editor.” Then, you may
have another set of tasks to achieve before reaching the milestone of revising the article.
Milestones serve as check-in points along your project to make sure that you are headed
in the right direction toward the end goal. Milestones also make projects more
manageable.

Integrate milestones into your project schedule

There is not a consistent number of milestones in every project. Some projects will have a
few milestones, while others may have dozens. Rather than aiming to hit a certain number
of milestones, try to set milestones for the most important events in your project. Review
your project schedule and identify important moments or checkpoints. In other words,
pinpoint where in your project you will achieve major goals and make those points your
milestones. 

Milestone-setting pitfalls

Here are some things to avoid when setting milestones: 

  Don’t set too many milestones. When there are too many milestones, their
importance is downplayed. And, if milestones are too small or too specific, you
may end up with too many, making the project look much bigger than it really is to
your team and stakeholders.  
 Don’t mistake tasks for milestones. Remember that milestones should represent
moments in time, and in order to map out how you will get to those moments, you
need to assign smaller tasks to each milestone.
 Don’t list your milestones and tasks separately. Make sure that tasks and
milestones can be visualized together in one place, such as a project plan. This will
help ensure that you are hitting your deadlines and milestones. 

Key takeaways

Your approach to setting milestones may differ from project to project, but most projects
will have at least one milestone and several smaller tasks associated with each milestone.
Setting clearly-defined, distinct tasks, and milestones, integrating them into your project
schedule, and using a tool that visualizes them together will help organize your project
and drive it forward. 
Creating a work breakdown structure
So we've discussed how to set milestones. Now we'll learn how to account for the many tasks that
ladder up to each milestone. You can do this by creating a work breakdown structure. Let's start with
a definition. A work breakdown structure, often abbreviated to WBS, is a tool that sorts the
milestones and tasks of a project in a hierarchy, in the order they need to be completed. This is a
helpful tool because it helps break down the sometimes intimidating challenges of a project into
more manageable chunks. Big projects like publishing a report or organizing a conference seem a lot
less daunting when the work required to get there is broken down step-by-step with a clear pathway
from the beginning of the project to the end. Let's look at an example of a basic work breakdown
structure. There are lots of different ways to design a work breakdown structure, but one common
way is to create a tree diagram of project tasks. Let's say that we're creating a work breakdown
structure for the Project Plant Pals website launch. At the top of the diagram is the name of the
project. The second level of our diagram breaks the project down into three milestones. These
include securing design approval, developing the site and implementing user feedback. At the third
level of the chart, we can see each of those milestones gets further broken down into a series of
project tasks. For example, tasks listed beneath your design approval milestone include mocking up
designs and collecting feedback. This is a very simple example of a work breakdown structure. Here,
we've only created a work breakdown structure for a new website, which is just one of the Project
Plant Pals deliverables. Keep in mind that in future project management roles, you'll likely create a
WBS that outlines the tasks for an entire project. It's also important to know that while creating a
work breakdown structure is a helpful exercise for visualizing the tasks of the project, you wouldn't
typically include this type of diagram in your official project plan. Instead, you'd input the tasks
identified through this exercise into a spreadsheet or your chosen work management software,
where you can more easily assign owners to each task. Okay. So after completing a work breakdown
structure and organizing those tasks in a spreadsheet, a few things should be clearer to you. First,
you should have a set of discrete project tasks that ladder up to each of your milestones. You and
your teammates will know exactly what needs to happen to reach your first milestone and the
milestones after that. Second, you're now in a good position to assign those tasks to members of the
project team. Each person should have a clear understanding of the tasks they own and the order in
which they need to complete them. Let's break down how to assign tasks. Tasks are typically
assigned according to a person's role in the project. For example, in our Office Green scenario, the
web designer is assigned to the task of mocking up the initial website design, you are assigned to the
task of reviewing that design and providing feedback, and the designer is assigned to the task of
implementing your feedback. A web developer will be assigned to the next task of developing the
site itself. Sometimes, your team will have multiple teammates working in the same type of role. To
assign tasks between two or more team members with the same roles, you might take into
consideration each person's familiarity with the tasks at hand. For example, if you have multiple web
developers working on the new website, you might task one developer with creating the landing
page and task the other developer with creating the "contact us" page. When assigning tasks, you
should also consider each teammate's workload. Think about how much time they're meant to be
spending on the project compared to work outside the project that they may also be responsible for.
It's important to keep everyone's workloads balanced. You'll want to make sure that a single
teammate isn't assigned more work than others. You'll also want to make sure that no one is
assigned more work than they can handle. When people feel overloaded, the quality of their work
may suffer or they might need more time to complete the number of tasks, putting the timeline and
the overall project schedule at risk. As the project manager, you will ensure that your teammates are
clear on their assigned tasks. You can do this by assigning tasks with help from project management
tools like Asana, which I use a lot in my day-to-day role at Google. When you manage a project in
Asana, you'll add tasks to represent actionable pieces of work needed to complete the project. As a
best practice, it's good to start each task with a verb. For example, instead of just typing "website,"
make clear the task is to "mock up the website" or "add images to the website." Another thing to
think about when assigning tasks is timeline. Be sure to add an assignee and a due date to each task
so it's clear who's doing what by when. Finally, be sure to include as much detail surrounding the
task as possible to avoid miscommunication. In Asana, you can click into the task details to add
helpful information. Here, you can add a description, link to corresponding files or attachments, or
even comment on the work related to the task. There's so many benefits to assigning tasks, but the
biggest one is that it frees you up to focus on managing a project. This way, you can feel confident in
the knowledge that your teammates are responsible for specific work. But there's also some less
obvious benefits of assigning tasks. Let's explore these more now. One less obvious benefit of
assigning tasks is that it creates a sense of personal responsibility for members of the team. When
you assign a teammate to a task, you enter into an agreement with that person that they'll own the
task until it's completed. Creating a sense of ownership for members of the team is important
because it makes them feel more invested in the project. It also gives them space for personal
growth. Plus, it supports your own skill-building as a manager who's a supportive delegator. And on
top of that, it keeps your team motivated and invested in completing their work on time. While each
team member should have a sense of responsibility for their assigned task, a complete sense of
ownership might feel overwhelming for some teammates. If that's the case, it's a good idea for a
project manager to encourage teammates to support one another on their tasks. This is also great
for building overall team rapport. Got all that? Great. So to recap, you've learned about work
breakdown structures and how to assign tasks to people on your team. Meet us in the next video for
a recap on what we've covered over the past few videos.
Breaking down the work breakdown
structure
In the previous video, you were introduced to a major component of the planning phase: the creation
of a work breakdown structure (WBS). A WBS is a deliverable-oriented breakdown of a project into
smaller components. It’s a tool that sorts the milestones and tasks of a project into a hierarchy, in the
order they need to be completed. 

A thorough WBS gives you a visual representation of a project and the tasks required to deliver each
milestone. It makes it easier to understand all of the essential project tasks, such as estimating costs,
developing a schedule, assigning roles and responsibilities, and tracking progress. Think of each piece
of information as part of the overall project puzzle—you can’t successfully navigate through the tasks
without understanding how they all fit together. For instance, many smaller tasks may ladder up to a
larger task or milestone.

Steps to build a WBS

As a reminder, here are three main steps to follow when creating a WBS: 

 Start with the high-level, overarching project picture. Brainstorm with your team to list the
major deliverables and milestones. Example: Imagine you are planning a company event. Your
major milestones might include categories like “secure venue,”  “finalize guest logistics,” and
“establish agenda.”
 Identify the tasks that need to be performed in order to meet those milestones. Example: You
could break a milestone like “secure venue” down into tasks like “research venues,” “tour and
decorate space,” “make down payment,” and so on. 
 Examine those tasks and break them down further into sub-tasks. Example: You could break
down a task like “tour and decorate space” further into sub-tasks like “organize decorating
committee,” “purchase decorations,” “assign decorating responsibilities,” and so on. 
Understand the planning phase
Get started on the Plant Pals Operations and Training plan
In the initiation phase, you made a project charter for the Plant Pals Operations and Training
plan. Now you’re ready for the planning phase. You’ll use the charter to create sustainable
fulfilment and delivery protocols and support your customer base.

Identify major milestones and assign task owners

First, you’ll define the work your team needs to do for the plan—like sourcing materials and
training employees. Creating a work breakdown structure (WBS) diagram and spreadsheet
will help you identify and organize major milestones and assign task owners.

Map project schedule and tasks using a Gantt chart

Next, you’ll add those tasks and milestones—along with due dates and durations—to a Gantt
chart. This chart helps you clarify and map out task timelines and dependencies, so your
team knows what to do at each stage.

Estimate costs and create a budget

Once you’ve set your schedule, it’s time to estimate the costs of your milestones and tasks.
Your budget should include both one-time and recurring expenses—as well as a buffer to
cover any overages.

Create a Statement of Work (SoW)

When your team hires a vendor to complete a project milestone, you’ll create a Statement of
Work (SoW). This legal document defines what you need from the vendor (and what they
need from you), so everyone knows what’s expected.

Create a risk management plan

Next, you’ll assess potential risks to the budget and schedule, like staffing shortages or
shipping delays. Identifying, evaluating, and preparing for specific risks helps you keep the
project on track if things go wrong.

Create a communication plan

When it’s time to train employees, you’ll need to manage various communications among
stakeholders. Your communication plan will track senders and recipients, communication
goals, key dates, and other details. That way, everyone gets the right information at the right
time.

Organize the project artifacts

Finally, to keep your project artifacts organized, you’ll create a project plan in a central
location. Your team members and stakeholders can use it to find project documents, and you
can refer to it when you plan future projects.

Activity: Use a WBS to create milestones and project tasks - Part 1

Total points 1

1.
Question 1

To pass this practice quiz, you must receive 100%, or 1 out of 1 point, by completing the activity below.
You can learn more about the graded and practice items in the Course Overview.
Activity Overview

In this activity, you will identify a project’s major milestones, break them into smaller tasks, and
complete a Work Breakdown Structure (WBS) brainstorm diagram. Then, in Part 2 of this activity, you
will build on this scenario to complete a WBS spreadsheet.

Setting tasks and milestones gives you a clear understanding of the amount of work your project will
require, so you can keep your project on track. Milestones also serve as great check-in points to
highlight the project’s progress for your team and stakeholders.

Be sure to complete this activity before moving on. The next course item will provide you with a
completed exemplar to compare to your own work. You will not be able to access the exemplar until
you have completed this activity.

Scenario

Review the scenario below. Then complete the step-by-step instructions.

As a project manager for Office Green, your job includes working with the operations team to develop
and implement an Operations and Training plan. Your team will use this plan for ongoing maintenance
of the Plant Pals service. It will take six months to fully implement all protocols, including setting up
operational tools, putting delivery processes in place, and training employees. The project will begin
before the Plant Pals launch and extend beyond it.

The Operations team is responsible for managing the organization’s day-to-day business so that it
continues to run smoothly. Operations provides resources to other departments, ensures consistency,
and maintains the company’s profitability. The Chief Operations Officer (COO) typically leads the
Operations team and works closely with other divisions, such as Sales, Client Services, Human
Resources, Information Technology (IT), as well as the project manager. 

Developing the Operations and Training plan marks a new stage of the project, with its own set of goals
and deliverables. After assessing the requirements for the plan you determine three major milestones:

 Establish a plant delivery and logistics plan

 Select and install supply chain management software and equipment
 Develop and launch an employee training program
For each milestone, you divide the work into three separate tasks. Each task has its own owner,
duration, and details. The tasks associated with your milestones include: 

 Establish a plant delivery and logistics plan: Team members will need to source materials for
packaging and hire delivery drivers. They are also responsible for calculating the delivery fees. 
 Select and install supply chain software and equipment: Team members will supervise vendor
setup of inventory management and fulfillment software. They must also supervise vendor
installation of fulfillment equipment and determine internal safety protocols for the
equipment.
 Develop and launch an employee training program: Team members will need to develop
training sessions, train employees to use the software and equipment, and monitor progress
and improve training processes.
Step-by-step Instructions

Step 1: Access the template

To use the template for this course item, click the link below and select “Use Template.”

Link to template: WBS Brainstorm Diagram

OR

If you don’t have a Google account, you can download the template directly from the attachment
below.

Activity Template_ WBS Brainstorm Diagram

PPTX File

Step 2: Title your chart

Title your chart “Operations and Training Plan.” Giving your chart a descriptive title helps you focus on
the project’s milestones and tasks.

Step 3: Add milestones

Record the three milestones from the scenario in the boxes labeled Milestone 1, Milestone 2, and
Milestone 3. 

Step 4: Add tasks

Identify the tasks required to reach each milestone. Record three tasks for each milestone in the Task
1, Task 2, and Task 3 boxes. When you finish, you should have nine tasks in your brainstorm diagram—
three for each milestone.

For example, one task that will help you reach the “establish a delivery plan” milestone is “hire delivery
drivers."

Note: In a more detailed WBS, you would break these tasks down into additional subtasks. For example,
the “hire delivery drivers” task might include subtasks like: “writing a job ad,” “interviewing drivers,” and
“onboarding new hires.” For now, you can record the tasks as they are described in the scenario.

Pro Tip: Save the template

Finally, be sure to save a blank copy of the WBS brainstorm diagram template you used to complete
this activity. You can use it for further practice or in your own personal or professional projects. These
templates will be useful as you put together a portfolio of project management artifacts. You can use
them to work through your thought processes as you demonstrate your experience to potential
employers.

What to Include in Your Response

Be sure to address the following points in your completed WBS brainstorm diagram:

 A descriptive title
 Three different milestones
 Nine tasks in total (three for each milestone)

Activity Exemplar: Use a WBS to create

project tasks and milestones - Part 1
Here is a completed exemplar along with an explanation of how the exemplar fulfills the
expectations for the activity.

Completed Exemplar

To use the template for this course item, click the link below and select “Use Template.”

Link to exemplar: WBS Brainstorm Diagram

OR

If you don’t have a Google account, you can download the template directly from the
attachment below.

Activity Exemplar_ WBS Brainstorm Diagram

PPTX File

Assessment of Exemplar

Compare the exemplar to your completed WBS Brainstorm diagram. Review your work
using each of the criteria in the exemplar. What did you do well? Where can you improve?
Use your answers to these questions to guide you as you continue to progress through the
course. 

Let’s review the brainstorm diagram:

The exemplar includes the title “Operations and Training Plan.” It also includes three
different milestones and three tasks for each milestone (nine tasks in total):

 Establish a plant delivery and logistics plan: 1) Source packaging materials, 2)

Hire delivery drivers, 3) Calculate delivery fees
 Select and install supply chain software and equipment: 1) Supervise vendor
setup of inventory management and fulfillment software, 2) Supervise vendor
installation of fulfillment equipment, 3) Determine internal safety protocols for the
equipment
 Develop and launch an employee training program: 1) Develop training sessions,
2) Train employees to use software and equipment, 3) Monitor employee progress
and improve training processes
Activity: Use a WBS to create milestones and project tasks - Part 2
Total points 5

1.
Question 1

To pass this practice quiz, you must receive 80%, or 4 out of 5 points, by completing the activity below.
You can learn more about the graded and practice items in the Course Overview.

Activity Overview

In the last activity, Use a WBS to create project tasks and milestones - Part 1, you filled out a WBS
brainstorm diagram with tasks and milestones. In this activity, you will use that diagram to complete a
WBS spreadsheet. You will use this spreadsheet to assign tasks owners and sort milestones and tasks
into sequential order.

Be sure to complete this activity before moving on. The next course item will provide you with a
completed exemplar to compare to your own work. You will not be able to access the exemplar until
you have completed this activity.

Scenario

Review the scenario below. Then complete the step-by-step instructions.

As a project manager for Office Green, you are developing an Operations and Training plan for the new
Plant Pals service. It will take six months to fully implement all protocols, including setting up
operational tools, putting delivery processes in place, and training employees. You have already added
milestones and tasks for this project to a WBS brainstorm diagram. Here are the milestones and their
associated tasks:
  Establish a plant delivery and logistics plan: Team members will need to source materials for
packaging and hire delivery drivers. They are also responsible for calculating the delivery fees. 
 Select and install supply chain software and equipment: Team members will supervise vendor
setup of inventory management and fulfillment software. They must also supervise vendor
installation of fulfillment equipment and determine internal safety protocols for the
equipment. 
 Develop and launch an employee training program: Team members will need to develop
training sessions, train employees to use the software and equipment, and monitor employee
progress and improve training processes.
Now you will add those tasks and milestones to a WBS spreadsheet. You will also use the sheet to
record task owners and any notes about the tasks and their owners. The project sponsor for the
Operations and Training plan, the Director of Operations, has put together a team for the operations
launch. You can select task owners from among the following team:

 A Financial Analyst, who tracks and calculates costs and revenue

 A Fulfillment Director, who sources materials, ensures equipment is functional, and confirms
fulfillment processes are correctly implemented
 An Inventory Manager, who maintains inventory and oversees software installation 
 A Human Resources Specialist, who manages hiring and develops training protocols (with the
help of the Training Manager)
 A Training Manager, who reports to the HR Specialist, runs the training program on the
established protocols, and refines training processes
 A Quality Assurance Tester, who ensures product quality and determines safety protocols and
best practices

Step-by-step Instructions

Step 1: Access the template

To use the template for this course item, click the link below and select “Use Template.”

Link to template: WBS Spreadsheet

OR

If you don’t have a Google account, you can download the template directly from the attachment
below.

Activity Template_ WBS Spreadsheet

XLSX File

Step 2: Add milestones

First, open your WBS brainstorm diagram. Then record the three milestones from your brainstorm
diagram under the Milestone column of your WBS Spreadsheet.

Step 3: Add tasks

Enter the tasks from your brainstorm diagram under the Task column of your spreadsheet. Write each
task next to the corresponding milestone and task ID number. Assigning each task to an ID number
helps you organize, analyze, and search for particular tasks as the list grows. Task IDs are especially
useful for large or complex projects.

Task ID numbers tell you two things: 1) which milestone each task relates to and 2) the sequence of the
tasks. So, task 1.1 is the ID for the first task of the first milestone. Task 1.2 is the second task of the first
milestone, and so on. 

When you finish, you should have nine tasks in your spreadsheet—three for each milestone.

Step 4: Add task owners and notes

To the right of the Task column are columns for Owner and Notes. Here, you can record important
details that didn’t fit into your WBS diagram.  

First, review the scenario and determine which of your team members should own each task. Then
enter that person’s role next to the task in the Owner column.

Record any helpful details from the scenario in the Notes column. For example, including the
description of the task owner’s role would remind you of each person’s responsibilities.

If you’d like, you can also add your best estimate of how long each task might take in the Duration
column (this is optional). 

Step 5 (Optional): Add tasks to Asana

Many organizations use work management tools like Asana in addition to standard spreadsheets.
Hiring managers might even ask you about your experience with work management software in
interviews. That’s why we recommend recreating your WBS in Asana.

First, create an Asana account (if you don’t already have one). Then, create a project within Asana.
Finally, add milestones for each assignment and add tasks to the milestones. 

For more detailed instructions on how to create an account, project, or milestone, click the links below:

 Create an account
 Create a project
 Create a milestone (a premium Asana feature)
You can also import task data into Asana using a .CSV file. Click the links below to learn more about the
CSV importer.

 CSV importer - Asana

 Tips to organize your data in a spreadsheet for uploading 
 Steps to import a spreadsheet into Asana
Pro Tip: Save the Template
Finally, be sure to save a blank copy of the WBS spreadsheet template you used to complete this
activity. You can use it for further practice or in your own personal or professional projects. These
templates will be useful as you put together a portfolio of project management artifacts. You can use
them to talk through your thought processes as you demonstrate your experience to potential
employers.

What to Include in Your Response

Be sure to address the following points in your completed WBS spreadsheet: 

 The three milestones from your WBS diagram

 The nine tasks from your WBS diagram
 An owner for each task
 Notes about the owner of each task, and any additional information you’d like to include

Did you complete this activity?

1 point

Yes

No
2.
Question 2

How do your WBS diagram and spreadsheet help you to develop and launch the Operations and
Training program for Plant Pals?
1 point

Lay out the project’s costs in detail, so you don’t exceed your budget

Clarify the tasks the team needs to accomplish to achieve project milestones

Help you recruit team members with the right skills for the project

Let customers know what to expect from the new service

3.
Question 3

Which team member did you assign to own the task, “supervise vendor installation of fulfillment
equipment”? 
1 point
The Financial Analyst

The Training Manager

The HR Specialist

The Fulfillment Director

4.
Question 4

Which team member did you assign to own the task, “train employees to use the software and
equipment”?
1 point

The Quality Assurance Tester

The Fulfillment Director

The HR Specialist

The Training Manager

5.
Question 5

Which of the following additional tasks are appropriate for the “establish a plant delivery and logistics
plan” milestone? Select all that apply.
1 point

Source a vendor for additional types of plants

Hire warehouse employees to pack shipments

Purchase delivery trucks

Set customer service protocols

Activity: Use a WBS to create milestones and project tasks - Part 2
Total points 5

1.
Question 1
To pass this practice quiz, you must receive 80%, or 4 out of 5 points, by completing the activity below.
You can learn more about the graded and practice items in the Course Overview.

Activity Overview

In the last activity, Use a WBS to create project tasks and milestones - Part 1, you filled out a WBS
brainstorm diagram with tasks and milestones. In this activity, you will use that diagram to complete a
WBS spreadsheet. You will use this spreadsheet to assign tasks owners and sort milestones and tasks
into sequential order.

Be sure to complete this activity before moving on. The next course item will provide you with a
completed exemplar to compare to your own work. You will not be able to access the exemplar until
you have completed this activity.

Scenario

Review the scenario below. Then complete the step-by-step instructions.

As a project manager for Office Green, you are developing an Operations and Training plan for the new
Plant Pals service. It will take six months to fully implement all protocols, including setting up
operational tools, putting delivery processes in place, and training employees. You have already added
milestones and tasks for this project to a WBS brainstorm diagram. Here are the milestones and their
associated tasks:

 Establish a plant delivery and logistics plan: Team members will need to source materials for
packaging and hire delivery drivers. They are also responsible for calculating the delivery fees. 
 Select and install supply chain software and equipment: Team members will supervise vendor
setup of inventory management and fulfillment software. They must also supervise vendor
installation of fulfillment equipment and determine internal safety protocols for the
equipment. 
 Develop and launch an employee training program: Team members will need to develop
training sessions, train employees to use the software and equipment, and monitor employee
progress and improve training processes.
Now you will add those tasks and milestones to a WBS spreadsheet. You will also use the sheet to
record task owners and any notes about the tasks and their owners. The project sponsor for the
Operations and Training plan, the Director of Operations, has put together a team for the operations
launch. You can select task owners from among the following team:

 A Financial Analyst, who tracks and calculates costs and revenue

 A Fulfillment Director, who sources materials, ensures equipment is functional, and confirms
fulfillment processes are correctly implemented
 An Inventory Manager, who maintains inventory and oversees software installation 
 A Human Resources Specialist, who manages hiring and develops training protocols (with the
help of the Training Manager)
 A Training Manager, who reports to the HR Specialist, runs the training program on the
established protocols, and refines training processes
 A Quality Assurance Tester, who ensures product quality and determines safety protocols and
best practices
Step-by-step Instructions

Step 1: Access the template

To use the template for this course item, click the link below and select “Use Template.”

Link to template: WBS Spreadsheet

OR

If you don’t have a Google account, you can download the template directly from the attachment
below.

Activity Template_ WBS Spreadsheet

XLSX File

Step 2: Add milestones

First, open your WBS brainstorm diagram. Then record the three milestones from your brainstorm
diagram under the Milestone column of your WBS Spreadsheet.

Step 3: Add tasks

Enter the tasks from your brainstorm diagram under the Task column of your spreadsheet. Write each
task next to the corresponding milestone and task ID number. Assigning each task to an ID number
helps you organize, analyze, and search for particular tasks as the list grows. Task IDs are especially
useful for large or complex projects.

Task ID numbers tell you two things: 1) which milestone each task relates to and 2) the sequence of the
tasks. So, task 1.1 is the ID for the first task of the first milestone. Task 1.2 is the second task of the first
milestone, and so on. 

When you finish, you should have nine tasks in your spreadsheet—three for each milestone.

Step 4: Add task owners and notes

To the right of the Task column are columns for Owner and Notes. Here, you can record important
details that didn’t fit into your WBS diagram.  

First, review the scenario and determine which of your team members should own each task. Then
enter that person’s role next to the task in the Owner column.

Record any helpful details from the scenario in the Notes column. For example, including the
description of the task owner’s role would remind you of each person’s responsibilities.
If you’d like, you can also add your best estimate of how long each task might take in the Duration
column (this is optional). 

Step 5 (Optional): Add tasks to Asana

Many organizations use work management tools like Asana in addition to standard spreadsheets.
Hiring managers might even ask you about your experience with work management software in
interviews. That’s why we recommend recreating your WBS in Asana.

First, create an Asana account (if you don’t already have one). Then, create a project within Asana.
Finally, add milestones for each assignment and add tasks to the milestones. 

For more detailed instructions on how to create an account, project, or milestone, click the links below:

 Create an account
 Create a project
 Create a milestone (a premium Asana feature)
You can also import task data into Asana using a .CSV file. Click the links below to learn more about the
CSV importer.

 CSV importer - Asana

 Tips to organize your data in a spreadsheet for uploading 
 Steps to import a spreadsheet into Asana
Pro Tip: Save the Template
Finally, be sure to save a blank copy of the WBS spreadsheet template you used to complete this
activity. You can use it for further practice or in your own personal or professional projects. These
templates will be useful as you put together a portfolio of project management artifacts. You can use
them to talk through your thought processes as you demonstrate your experience to potential
employers.

What to Include in Your Response

Be sure to address the following points in your completed WBS spreadsheet: 

 The three milestones from your WBS diagram

 The nine tasks from your WBS diagram
 An owner for each task
 Notes about the owner of each task, and any additional information you’d like to include

Did you complete this activity?

1 / 1 point

Yes

No
Correct

Thank you for completing this activity! Work Breakdown Structures help project managers to break
down milestones and organize tasks. Review the quiz feedback below to find out how you did. Then go
to the next course item to compare your work to a completed exemplar.
2.
Question 2

How do your WBS diagram and spreadsheet help you to develop and launch the Operations and
Training program for Plant Pals?
1 / 1 point

Lay out the project’s costs in detail, so you don’t exceed your budget

Clarify the tasks the team needs to accomplish to achieve project milestones

Help you recruit team members with the right skills for the project

Let customers know what to expect from the new service

Correct

A WBS diagram and spreadsheet help to break down large milestones into manageable tasks that
individual team members can own.
3.
Question 3

Which team member did you assign to own the task, “supervise vendor installation of fulfillment
equipment”? 
1 / 1 point

The Financial Analyst

The Training Manager

The HR Specialist

The Fulfillment Director

Correct

The Fulfillment Director ensures equipment is functional, so they should supervise the installation.
4.
Question 4
Which team member did you assign to own the task, “train employees to use the software and
equipment”?
1 / 1 point

The Quality Assurance Tester

The Fulfillment Director

The HR Specialist

The Training Manager

Correct

The Training Manager runs the training program on the established protocols.
5.
Question 5

Which of the following additional tasks are appropriate for the “establish a plant delivery and logistics
plan” milestone? Select all that apply.
0.75 / 1 point

Source a vendor for additional types of plants

This should not be selected

Expanding the selection of available plants would not be part of the delivery and logistics plan.
Consider which tasks will help customers get their plants.

Hire warehouse employees to pack shipments

Correct

Warehouse employees package shipments for delivery, so hiring them is an appropriate task.

Purchase delivery trucks

Correct

Since you plan to hire delivery drivers, purchasing trucks is an appropriate task.

Set customer service protocols

Activity Exemplar: Use a WBS to create

project tasks and milestones - Part 2
Here is a completed exemplar along with an explanation of how the exemplar fulfills the expectations
for the activity.

Completed Exemplar

To view the exemplar for this course item, click the link below and select “Use Template.”

Link to exemplar: WBS Spreadsheet

OR

If you don’t have a Google account, you can download the exemplar directly from the attachment
below.

Activity Exemplar_ Use a WBS to create project tasks and milestones - Part 2

XLSX File

Assessment of Exemplar

Compare the exemplar to your completed WBS spreadsheet. Review your work using each of the
criteria in the exemplar. What did you do well? Where can you improve? Use your answers to these
questions to guide you as you continue to progress through the course.

Let’s review the WBS spreadsheet:

There are three milestones from the brainstorm diagram in the Milestones column and three tasks for
each milestone (nine tasks in total). The project tasks correspond to the correct milestone ID number.
The tasks are the same ones listed in the brainstorm diagram.

Each task has an appropriate owner, with corresponding notes for why the owner was assigned to the
task:

Establish a plant delivery and logistics plan

1. Source materials for packaging: The Fulfillment Director sources materials. 

2. Hire delivery drivers: The Human Resources Specialist oversees hiring.
3. Calculate delivery fees: The Financial Analyst tracks costs and revenue.
Select and install supply chain software and equipment

1. Supervise vendor setup of inventory management and fulfillment software: The Inventory
Manager ensures software is installed and set up properly.
 2. Supervise vendor installation of fulfillment equipment: The Fulfillment Director ensures
equipment is functional with the help of the Quality Assurance Tester.
3. Determine internal safety protocols for the equipment: The Quality Assurance Tester
determines safety protocols and best practices. 
Develop and launch employee training program

1. Develop training sessions: The Human Resources Specialist develops the training sessions with
the help of the Training Manager.
2. Train employees to use the software and equipment: The Training Manager runs the training
program on the established protocols. 
3. Monitor employee progress and improve training processes: The Training Manager refines the
training process.

Clennita: How planning creates a sense of

team
Hi. My name's Clennita, and I'm a Senior Engineering Program Manager at Google. So the planning
phase of project management, is essentially the time where you take a step back and you reflect on
what's the scope of the project. So what are the problems that we need to solve? When you look at
planning for projects, it's critical to understanding what you're building, who you're building for, and
how long you have to build it. We look at our risk, to make sure that we know what potentially could
derail the project. And if possible, create mitigation that will circumvent any risk that we may come
in contact with. Or, just be aware of things like scope. We also look at timing. Is there a deadline that
we need to hit? And if so, do we have enough time to hit that deadline? We assess the work that
needs to be done, to understand if the work that needs to be done in order to meet the
requirements fits into the timeline that we have. We also look at testing—what the testing plan
looks like, what is success going to look like—so we know what the target is so that when we hit the
target and we validate it, we already know what metrics we expect to get. I'm a planner—it's just in
my nature. Planning sets a tone for what we're actually doing together. It creates a sense of team.
The planning also aligns everybody, to understand what it is we're all shooting for, what it is our
goals are, what success is going to look like. It really is the place where we come together to ensure
that we're all on the same page, and we're all going in the same direction. When you don't have
that, things get lost. You're not talking to the right people, you have miscommunications, things get
delayed and you don't really understand why, people aren't comfortable communicating what
progress is happening, they really aren't comfortable in communicating when their problem comes
up. So you want to just set a tone of "We're all in this together, we're all going to be successful
together, and we are going to run into roadblocks, we are going to run into problems, but we're
going to work it out and figure it out as a team."

Week2

Introduction: Building a project plan

Hi. Welcome back. In the previous section, we learned more about the planning phase which is the
second phase of the project life cycle. We introduced you to kickoff meetings, which is the first
meeting for the project team. We also discussed milestones, tasks, and how to set these within a
project. Coming up, we'll explain why it is necessary to create and manage a project plan. We'll
discuss the definition of a project plan, and we'll learn what typically goes into one. This includes the
project schedule, which will help guide your team to the finish line. We'll also share how to use time
estimation methods to prevent project failure. We'll introduce you to a few time estimation
techniques which can help you build an accurate project schedule. Finally, we'll examine tools and
best practices you can use to build out a project plan. Ready to get started? Meet me in the next
video.

Components of a project plan

A project plan can be useful for any project, big or small, since it helps you document the scope,
tasks, milestones, and overall activities of the project. At the center of the project plan is the project
schedule. The project schedule can help you estimate the amount of time it'll take to complete the
project, and it can provide the team with a way to track the project's progress against your goals.

Play video starting at ::26 and follow transcript0:26

What goes into a project plan may vary from company to company, but most plans contain these
five basic elements. These are: tasks, milestones, people, documentation, and time. Let's break
those down. A project plan will include tasks and milestones, two topics we discussed before. Tasks
are activities that need to be accomplished within a set period of time. They're assigned to different
members of the team according to their roles and skills. And milestones are important points within
the schedule that indicate progress. They usually signify the completion of a deliverable or phase of
the project.

Play video starting at :1:10 and follow transcript1:10

A project plan will also include the people working on your team and their roles. It's important that
each team member understands their role and the tasks they're responsible for completing.
Ensuring that everyone is clear on their assigned tasks frees you up to focus on managing the project
and creates a sense of personal responsibility for members of the team. A project plan is a good
place to link to relevant documentation. This includes documents like your RACI chart, which helps
to define roles and responsibilities for individuals on your team. You can also link to your charter,
which clearly defines the project and outlines the details needed to reach your goals. Relevant
documentation can also include documents like your budget and risk management plan. We'll
discuss more about those later on in the course. Lastly, a project plan should include the estimated
time that will be spent on the project. This forms the basis of the schedule, which is the anchor of
your project plan.

Play video starting at :2:12 and follow transcript2:12

The estimated time includes dates on which tasks should be started and completed and the dates
when you hope to reach various milestones. It also includes the start and end dates of the project,
which are important in determining which resources you'll need and when you'll need them.

Play video starting at :2:30 and follow transcript2:30

So, how exactly do you estimate how long these things will take? Meet me in the next video to find
out.

Which of the following are relevant documents the project manager may include in the
project plan? Select all that apply.
Project charter
Correct
The project charter defines the project and outlines the details the team needs to reach
the project’s goals.

RACI chart
Correct
The RACI chart helps define roles and responsibilities for individuals on a team.

Retrospective notes

Budget
Correct
The budget is the estimated monetary resources needed to achieve the project’s goals
and objectives.

Putting together the pieces of a project plan

Every project plan is a living artifact that serves as your team’s roadmap throughout the
project. We have covered some common elements of project plans, including tasks,
milestones, people, documentation, and time. Let’s look at how these elements intersect
with other important components to create a comprehensive plan for your project. 

How project plan components are connected

You have learned that at the center of the project plan is the project schedule, which helps
you estimate the amount of time it will take to complete the project and provides the
team with a way to track the project’s progress against your goals. In addition to the
schedule, you should also include the following components in your project plan: 

 Scope and goals

 Work Breakdown Structure (WBS)
 Budget 
 Management plans
Project scope and goals

Both the project scope and goals will be captured initially in your project charter, the
document that clearly defines the key details of your project. You can link your project
charter in your project plan. Having details about the project’s scope and goals easily
accessible can help remind your team of the objectives they are trying to accomplish and
if anything is asked of them that goes beyond what was initially agreed upon in order to
achieve those objectives. 

Work Breakdown Structure (WBS)

As a reminder, a Work Breakdown Structure is a tool that sorts the milestones and tasks
of a project in a hierarchy, in the order they need to be completed. The WBS is key to your
project plan since it breaks the work down into more manageable pieces. In your project
plan, the tasks should be visible in one place with clear descriptions, owners, and due
dates. This will allow you and your team to understand who is responsible for which tasks
and when each task is supposed to be completed. Your project plan should also contain
detailed milestones and statuses related to these tasks, which will help you and your team
members visualize project progress. 

In addition to the WBS, further documentation—such as a RACI chart—will help define

roles and responsibilities and would be useful to add to your project plan. Keeping this
documentation stored or linked in one place is a best practice for transparency and
effective communication.
Budget

Throughout the life cycle of your project, the budget will need to be managed and
monitored. The project budget is often linked to the project plan because it is heavily
dependent on key elements of the project. Linking these components allows for smoother
management and visibility. 

Depending on the size of your project and your organization, you may not be the primary
person responsible for managing the project budget. For instance, if your project is at a
large organization and the funds are managed by another department, you may not have
as much autonomy or insight into all of the budget elements. As a result, you may not be
able to monitor the budget closely. If someone in another department is managing the
budget, make sure to have regular check-ins with them to ensure that you are aware of
how you are tracking.

Management plans

Management plans—such as the change management plan, risk management plan, and
communication plan—are all integral to keeping a project organized and on track and
should be linked in your project plan. These plans will be discussed in detail in the coming
lessons of this course. 

Key takeaway

Project scope and goals, the Work Breakdown Structure (WBS), the budget, and
management plans are all important components of your project plan. They help define
how basic project plan elements—including tasks, milestones, people, documentation,
and time—will be structured and utilized in your project. However, no one project plan
will be the same. At Google, we work with a variety of different tools and templates to
create and manage project plans. It is important to know your end goals and what is
essential to you and your team in order to pull the relevant pieces of the project together. 

Test your knowledge: Getting started with a project plan

Total points 4

1.
Question 1

Which of the following is true of project plans? Select all that apply.
1 / 1 point

They are a living artifact that serves as a roadmap for your team throughout the project.
Correct
A project plan is a living artifact that helps you document the scope, tasks, milestones, and overall
activities of the project. It serves as a roadmap for your team. The schedule is the central piece of a
project plan.

Their central component is a project schedule.

Correct

At the center of the project plan is the project schedule. The project schedule helps you estimate the
amount of time it will take to complete the project and provides the team with a way to track the
project's progress against its goals. A project plan also contains links to all of a project’s
documentation and serves as a roadmap for the team throughout the project.

They contain an explanation of why a project may not meet its goals. 

They are a compilation of a project’s documents that the project team uses to carry out project
activities. 
Correct

A project plan contains links to all of a project’s documentation and serves as a roadmap for the team
throughout the project. The central artifact in a project plan is the project schedule. 
2.
Question 2

What are the basic elements that make up a project plan?

1 / 1 point

Time estimation, effort estimation, buffer, and sub-tasks

Stakeholder information, project proposal, tools, and resources 

Initiation, planning, managing, and execution

Tasks, milestones, people, documentation, and time

Correct

What goes into a project plan may vary from company to company, but most plans contain these five
basic elements.
3.
Question 3

As a project manager, you create a project plan. In the plan are tasks with clear descriptions, owners,
and due dates. In which section of the project plan do these tasks reside?
1 / 1 point
Work breakdown structure (WBS)

Management plans

Budget

Scope and goals

Correct

The WBS allows the project manager and teammates to understand who is responsible for which tasks.
It also indicates when the project manager expects each task to be completed.
4.
Question 4

As a project manager, you create a project plan. In the plan are documents that help keep a project
organized and on track, particularly if a risk arises or a change occurs. In which section of the project
plan are these documents linked?
1 / 1 point

Budget

Work breakdown structure (WBS)

Management plans

Project scope and goals

Correct

These documents, such as the change management plan, risk management plan, and communication
plan, are integral parts of a project plan. They serve as your team’s roadmap throughout the project.

Making realistic time estimates

As the project manager, you aren't responsible for completing every task. What you are responsible
for is identifying and helping assign those tasks, and then estimating how long they'll take to
complete. These estimates come together to determine the overall project schedule. So, how do you
estimate the amount of time a given task will take? You do this with the help of your team. Time
estimation is a prediction of the total amount of time required to complete a task. Effort estimation
is a prediction of the amount and difficulty of active work required to complete a task. Effort
estimation differs from time estimation in that effort quantifies the amount of time it will take a
person to complete work on a task. On the flip side, time refers to the overall duration of the task
from start to finish. That includes inactive time. Here's an example. The effort estimation for painting
a wall might be 30 minutes, but time estimation might be 24 hours. That's because in addition to the
30 minutes of active painting time, there are also 23 and a half hours of inactive drying time. It's
important to understand the difference between time estimation and effort estimation, because it
can help you be more efficient with your available resources. If there's idle time baked into a given
task, your teammate is effectively free to do other things. A painter can do other tasks while the wall
is drying, like painting the mailbox or the window trim. An unrealistic effort estimate can negatively
impact a project schedule. Generally, this happens when you underestimate the amount of time it
will take to complete a task. Often, the culprit for under estimating effort is optimism. And listen,
optimism is a wonderful trait for a project manager to possess. But too much optimism can lead you
to overlook potential risks that could set your plans behind schedule. Though it might be tempting to
make the optimistic assumption that tasks will be executed exactly according to plan, there is always
a possibility that there will be setbacks. So, how do you try to avoid making unrealistic effort
estimates? You can do this by communicating with teammates assigned to each task. Your
teammates will have the most realistic understanding of the amount of work required to complete a
task and should be able to provide you with the best estimate. Let's imagine this scenario in the
context of our Plant Pals project at Office Green.

Play video starting at :2:42 and follow transcript2:42

As a reminder, you're launching a new service to provide top office green customers with small, low-
maintenance plants that they can place on their desks. You might assume that creating a contact list
of top customers is relatively straightforward and can be completed in a single day. But it's
important to really consider certain sub-tasks required to complete work in your planning. Sub-tasks
refer to smaller tasks that are required to complete a larger task. For example, this might include
meeting with the global sales team to identify clients gathering contact information, determining
client language preferences, and building a spreadsheet to house this information. Asking the
teammate assigned to the task for their estimate is likely to yield a more accurate estimation since
they'll have a deeper understanding of the work and the nuances of what's required to complete the
task. You might learn that creating the contact list may take two days to complete, which could be
double the time you originally expected. Of course, you can usually ask follow-up questions, or even
gently push back on their estimate, as needed. Later on, we'll discuss more of the techniques you
can use to get more accurate estimates from your teammates. Now, even though task owners tend
to have the strongest sense of how much time they'll need to complete a task, the fact is that effort
estimates are just that, estimates, meaning that sometimes those estimates won't be accurate. For
example, in our Plant Pals scenario, your teammate estimates that it will take two days to create a
contact list of top customers. But, let's say that the Sales team is out of the office for a team-building
exercise and unable to meet about the client list until after the weekend. This will create a task
delay, and as a result, the original estimate is no longer accurate. Luckily, there's a helpful tool called
a buffer that you can use during the planning phase to protect against inaccurate effort estimates. A
buffer is extra time added to the end of a task or a project to account for unexpected slowdowns or
delays in work progress. Buffers are important because they can provide some leeway, just in case
your time and effort estimates turn out to fall a bit short. With a buffer, you can add extra time into
your schedule, and your project shouldn't fall off track when task delays inevitably arise. There are
two types of buffers you can use when planning your schedule: task buffers and project buffers.
First, we have task buffers, which refer to extra time tacked on to a specific task. Task buffers should
be used primarily for tasks that are out of the project team's control. For example, you might ask a
potential plant vendor to provide you with a cost estimate by Monday. You might assign them this
deadline, knowing that you won't actually need the estimate until Thursday. The time between
Monday and Thursday is your buffer, and it provides your team with extra time just in case the
vendor sends their estimates to you a day or two late. Task buffers should be used more sparingly
for tasks within the project team's control. For example, you might choose to add buffers only to
tasks that are difficult to complete or that have an element of unpredictability, like the length of
time it will take plants to grow.

Play video starting at :6:18 and follow transcript6:18

Adding a buffer to every task could lengthen your project schedule unnecessarily, leaving you, your
team, and your stakeholders with an unrealistic timeline. This is where project buffers come in
handy. Project buffers differ from task buffers in that they provide extra time to the overall project
schedule. Rather than adding a buffer to every task, you can add extra time as a buffer towards the
end of your project schedule. Then you can use that extra time, two to three days, for example, as
needed throughout the project. For instance, if a teammate misses a deadline here and there, the
project buffer gives you space in the overall schedule to make up for lost time. I use buffers often in
my day-to-day role at Google. For example, on a recent project at Google, I was working with a new
hire who was great at coding but kept missing deadlines. I realized they weren't giving themselves
enough buffer time to do testing. I started to ask questions about their current workload and the
complexity of their tasks, and based on their answers to those questions, I was able to gather
insights about their work and determine where I needed to add buffer to their tasks. Ultimately, my
goal is to ensure that I'm setting a realistic timeline for the project. After all, if you hit your project
goal two months later than expected, your organization may not consider the project a success.
Time estimation, effort estimation, and buffers can help you build realistic plans for reaching the
project goal.

Reflection: Time estimation

Total points 2

1.
Question 1

In this exercise you will read a scenario about time estimation, and then reflect upon how critical it is to
a project’s success. Are you ready?
1 / 1 point

I’m ready!
Correct

Great! Now, compare your answer to the feedback below.

2.
Question 2

Consider the following scenario: You are to oversee the project for a new textbook release for the fall
semester. You’ve done something similar before, so you feel confident speaking with the stakeholders,
project sponsor, and faculty director. You assure them the project will meet the 6-month deadline.

Around three months into the project, you notice that your writers consistently miss the writing
deadlines you assign. Then you learn that a printer upgrade may delay printing the text books.
Unfortunately, you forgot to include this delay in your time estimation. Now you have to tell the
stakeholders that the project may not launch in time for fall.

What might you do differently next time to improve the outcome of this situation? Write three to four
sentences.
1 / 1 point
1. If i have done similar kind of project it doesn't mean, i will forgot to check the some measure
things in time estimation. Every project is having different scenarios and preparation so need to
check all points before commit deadline. 2. Always check with key team members and project
participant for all requirements like hardware and software update or upgrade with other
accessories to avoid project failure. 3. After found any delay immediate arrange a meeting with
stakeholders, project sponsor and team members, may be they can suggest new ideas so that
can avoid delay and able to complete project on time.

Correct

Review your response to check if you considered these steps to improve the outcome of the situation:
Before the project launch, the project manager should speak to the writers to more accurately
determine how long it takes to do their tasks.

The project manager might identify the printer technology as a task that is out of the team’s control
and add a task buffer. Additionally, when the project manager first learns about the printer issue, they
should immediately update the time estimation and inform stakeholders.

The project manager can also look towards potential time saving activities, including: eliminate tasks,
increase the team size to get more work done and meet the deadline, and streamline any of the
activities in order to complete them in parallel with other tasks.

All-in-all, it’s important to perform time estimation, effort estimation, and add buffers to build realistic
plans for reaching the project goal and ultimately, success!

Overcoming the planning fallacy

It is human nature to underestimate the amount of time and effort it takes to complete a
task—from anything as simple as walking the dog to something as complex as completing
a project. People generally want to remain hopeful about a positive outcome, and this is a
great quality to have as a person. But as a project manager, this kind of optimism can also
be a deficiency, especially during the planning phase of a project. Let’s examine a theory
known as the planning fallacy to better understand how to set yourself up for success in
the planning phase. 

The planning fallacy and optimism bias

The idea of the planning fallacy was first introduced in a 1977 paper written by Daniel
Kahneman and Amos Tversky, two foundational figures in the field of behavioral
economics. The planning fallacy describes our tendency to underestimate the amount of
time it will take to complete a task, as well as the costs and risks associated with that task,
due to optimism bias. Optimism bias is when a person believes that they are less likely to
experience a negative event. For example, when you are planning to walk your dog in
between meetings, you might think that you can do it faster than you actually can.
Optimism bias is what tells you that you are going to be able to walk your dog without
being late for your next meeting. If you don’t consider things that might affect the time it
will take you to walk your dog—the weather, the chance of them running into another dog
and wanting to play, or the fact that they frequently get distracted while sniffing around—
you might be late for your next meeting, or you might miss it altogether! 
The planning fallacy can happen to anyone, regardless of whether or not they have
experience completing similar tasks. Whether this is your first time walking your dog or
your hundredth, you still have to consider the different factors that can affect how long it
will take you to complete the walk. This same principle applies in project management.
You may be brand new to this kind of project or you may have managed tons of similar
projects before; either way, you still need to be careful not to underestimate the time it
will take to complete each task on this particular project. As a project manager, you
should aim to balance being aware of the planning fallacy with keeping an optimistic
attitude about the project, even as things change. Be optimistically realistic: Push for the
best outcomes while planning for the proper time it may take to accomplish each task.

Avoiding the planning fallacy: A case study

Think about the planning fallacy in relation to yourself as a project manager. If you have
planned massive efforts in your project plan with an optimism bias, this planning fallacy
could have a major impact on your project execution. You could set your team up for
failure by not giving them enough time to complete their tasks, causing work to have to be
redone or missing opportunities to execute the project more efficiently.

Let’s examine how this happens. David is a project manager responsible for a home
construction project. Let’s check out his Work Breakdown Structure (WBS): 

Image of a WBS diagram with tasks and milestones for building a house. Project title 1.0 House
project. Milestone 1.1 Foundation, 1.2 Construction, and 1.2 Finishing. There are tasks underneath
each milestone: 1.1.1 Blueprint, 1.1.2 Labor to dig, 1.2.1 Order materials, 1.2.2 Labor to build
structure, 1.2.3 Labor to build roof. 1.3.1 Plumbing, 1.3.2 Electrical, 1.3.3 Pain, 1.3.4 Landscaping
Working through his plan, David knows that certain things need to happen for the house
to be completed. He has to order materials, the materials have to be delivered, the
contractor has to actually build the house, and there needs to be time for completing
finishing touches and adjustments. The time estimations for those major tasks might
break down like this:

Task Estimated Duration

Foundation 2 weeks
Construction 4 weeks
Adjustments 4 weeks
After creating a WBS and a time estimation chart, David estimates that the construction
project will take a total of ten weeks. This sounds perfect because it meets his delivery
requirement. If David is unaware of the planning fallacy, he may think his plan is solid and
that his team is on their way to building the house within the target timeline!

Fortunately, David is mindful of the planning fallacy. He examines the time estimates
more carefully. He considers risks like weather delays or crew members calling out sick,
which could set the project’s completion date back. He meets with his team members and
other stakeholders to help him uncover other possible risks that could affect the project
timeline. After carefully gathering information, he adjusts the time estimates, adding task
buffers to some of the project tasks to account for the potential risks.

Key takeaways

Being on the lookout for “what-ifs” is a key project management skill. Considering
situations that could affect whether or not the project is completed on time can help you
overcome the planning fallacy. Also, you will always have a project team in your corner, so
make sure you use them as resources to help uncover possible risks. Remember to be
“optimistically realistic” and push for the best outcome while still planning for the proper
time to accomplish each task.

Capacity planning and the critical path

Hi again. Okay, so we've discussed time estimation, which is a prediction of the total
amount of time that will be required to complete a task. And we've also discussed effort
estimation, which is a prediction of the amount, and difficulty of active work required to
complete a task. These techniques can help you estimate the length of time it will take to
complete a task. Once you have that information you'll need to determine, if you have the
right number of people to get the work done. To figure this out you can use a technique
called capacity planning. First, let's define capacity. Capacity refers to the amount of work
that the people or resources assigned to the project can reasonably complete in a set
period of time.

Play video starting at ::51 and follow transcript0:51

A person can only do so much, and it's important to keep in mind each person's capacity
when assigning work. This is where capacity planning comes in. Capacity planning refers
to the act of allocating people, and resources to project tasks. And determining whether
or not you have the necessary resources required to complete the work on time. During
this process, you might find that you need more resources to speed up the project
timeline, like a second web developer, or a third writer. Let's imagine capacity planning in
the context of our Plant Pals project at Office Green. If you know that you'll need to deliver
plants to 100 customers over a period of five days. Then you'll need to determine if you've
hired enough delivery drivers to meet that deadline. If one driver averages four deliveries
within an eight-hour workday, then you know you'll need to hire at least five drivers to
complete the work on time. Even if a person on your project team is spending 100% of
their time at work on your project, they'll have limited capacity for the amount of work
they should be expected to complete each day. Between meetings, unexpected urgent
tasks, and other elements of a typical work day, there's only so much each person can
complete. So how do you decide where a teammate should focus their priorities, and
make the most of their capacity? You can prioritize their time by plotting the critical path
of your project timeline. The critical path refers to the list of project milestones that you
must reach in order to meet the project goal on schedule. As well as the mandatory tasks
that contribute to the completion of each milestone. Anything else is considered off the
critical path. For example, tasks on the critical path for launching Project Plant Pals might
include hiring plant vendors, developing a new website, and fulfilling deliveries. A task like
adding flowers to your product lineup, is nice to have, but might not have much impact on
the overall success of your project, because this task isn't crucial to your launch. These
tasks aren't part of the critical path. To summarize, your critical path includes the bare
minimum number of tasks and milestones you need to reach your project goal. If your
team is unable to complete any of those tasks on time, that might result in a project delay.
To determine the critical path of a project, you'd start by listing all the tasks required to
complete the project and the milestones they feed into. This is a perfect time to think back
to your work breakdown structure, or WBS, which is a chart that sorts all the milestones,
and tasks of a project into a hierarchy according to the order in which they need to be
completed. This includes a detailed overview of every project task. Then, you determine
which tasks on the list absolutely can't begin until another task is complete. This is called
a dependency, and we'll discuss this topic in more detail later on. Next, you'll work with
your team to make time estimates for each task, and map each task from start to finish.
The longest path is your critical path. There are a few factors that can impact capacity,
and capacity planning. First you need to be able to identify which task can happen in
parallel, which means they can happen at the same time as other tasks. You will also need
to identify which task can happen sequentially, meaning they must happen in a specific
order. When you identify which task can happen in parallel, it helps you create efficiencies
within your project schedule, by demonstrating where you can complete multiple tasks at
the same time. Identifying sequential tasks, helps you identify the tasks that you need to
prioritize early on in the project. For example, a sequential task for your Plant Pals project
may include needing budget approval before hiring a vendor. And two parallel tasks might
include hiring delivery drivers, and the development of a website. These tasks have no
relationship to one another, as they focus on different portions of the project, and can be
completed by different members of the team. That means that one task can begin even if
the other task hasn't been completed. And so the work to complete these tasks can
happen at the same time. You also need to determine which project tasks have a fixed
start date. A fixed start date refers to the date on which you must start work on your task
in order to achieve your goal. Identifying whether or not your tasks have a fixed start dates
can help with capacity planning. Because it helps ensure that you'll have the right number
of people available to complete tasks on time.

Play video starting at :5:46 and follow transcript5:46

For example, let's imagine that your contract says you'll need to deliver 100 plants on a
specific date. That means that the task of picking up those plants has a fixed start day of
one day prior to delivery. Alternatively, some tasks might have an earliest start date. An
earliest start date refers to the earliest date in which you can begin working on a task.
Identifying an earlier start date can set accurate expectations for when vendors, and team
members will be up and running on the project. This can help you plan your work, and
prioritize your work accordingly. For example, if you're working with a new vendor, you
need to wait until contracts are signed, and the purchase order is approved, and created
before the vendor can start. Let's say that at Office Green this process can take about
three weeks. Based on this information, you can determine that the earliest start date for
your vendor will be three weeks from the kick off meeting with your vendor. Another best
practice for capacity planning, and creating a critical path includes identifying if a task has
float, also sometimes known as slack. Float refers to the amount of time you can wait to
begin a task before it impacts the project schedule, and threatens the project outcome.
These are high priority tasks that have low to no wiggle room. This helps reinforce what is,
and what is not on your critical path. For instance, tasks on the critical path should have
zero float, meaning there is no room for delays. And tasks that do have float are not a part
of the critical path. For example, the shipment of plants to a priority customer who has
requested their delivery on a specific date is a task that has zero float. Great, you've now
learned a bit more about how to define capacity, capacity planning, and critical path. We
also discussed the techniques used to identify critical path in a project, and the various
factors that can impact capacity, and capacity planning. In the next video, we'll continue
learning how to create viable estimates in a project plan. You will also find out how your
soft skills can help the effectiveness of your team. Meet you there.

Creating a critical path

As you’ve just learned, the critical path refers to the list of required project milestones you
must reach to complete the project schedule, as well as the mandatory tasks that
contribute to the completion of each milestone. You can think of the critical path as a
framework that tells you, the project manager, where you are, where you are headed, and
when you will get there. 

Why the critical path is critical

The critical path helps you determine the essential tasks that need to be completed on
your project to meet your end goal and how long each task will take. The critical path also
provides a quick reference for critical tasks by revealing which tasks will impact your
project completion date negatively if their scheduled finish dates are late or missed. A
critical path can help you define the resources you need, your project baselines, and any
flexibility you have in the schedule. 

How to create a critical path

Each project you work on will be different, but there are some general steps for creating a
critical path that are applicable to most projects.

Step 1: Capture all tasks 

When you first start working on your project schedule, you will capture all of the tasks
associated with the completion of the effort. Remember to use the key planning
documents you have created to get you to this point, such as your work breakdown
structure (WBS). The main goal in this step is to make sure that you aren’t missing a key
piece of work that is required to complete your project. When creating a critical path,
focus on the essential, “need to do” tasks, rather than the “nice to do” tasks that aren’t
essential for the completion of the project. Here is an example of critical tasks for building
the structure of a house:

Task
A) Excavation
B) Foundation
C) Framing
D) Roof
E) Plumbing
F) Heating, ventilation, and air conditioning (HVAC)
G) Electrical 
H) Insulation
I) Drywall + Paint
J) Flooring

Step 2: Set dependencies 

Now that you have captured all of your critical tasks in list form, arrange those tasks in
order of completion by identifying dependencies. To determine dependencies, figure out
which tasks must be completed before other tasks can start. For example, you can’t paint
the outside of a house before the house is built, so the task of framing the walls must
come before the task of painting them. Identifying dependencies is key to a successful
project schedule. 

To figure out dependencies for each task, ask:

  Which task needs to take place before this task?
 Which task can be finished at the same time as this task?
 Which task needs to happen right after this task?
Once you have answered these questions, you can list these dependencies next to your list
of tasks:

Task Dependency

A) Excavation

B) Foundation A) Excavation
C) Framing B) Foundation
D) Roof C) Framing
E) Plumbing C) Framing
F) HVAC C) Framing
G) Electrical  C) Framing
H) Insulation E) Plumbing, F) HVAC, G) Electrical
I) Drywall + Paint H) Insulation
J) Flooring I) Drywall + Paint

Step 3: Create a network diagram

One common way to visualize the critical path is by creating a network diagram. Network
diagrams, like the example below, sequence tasks in the order in which they need to be
completed, based on their dependencies. These diagrams help visualize:

 The path of the work from the start of the project (excavation) to the end of the
project (flooring)
 Which tasks can be performed in parallel (e.g., HVAC and plumbing) and in
sequence (e.g., plumbing then insulation)
 Which non-essential tasks are NOT on the critical path

Step 4: Make time estimates

After determining tasks and dependencies, consult key stakeholders to get accurate time
estimates for each task. This is a crucial step in determining your critical path. If your time
estimates are significantly off, it may cause the length of your critical path to change. Time
estimates can be reviewed and updated throughout the project, as necessary. 

Task Duration Dependency

A) Excavation 1 Day
 Task Duration Dependency
B) Foundation 3 Days A) Excavation
C) Framing 15 Days B) Foundation
D) Roof 3 Days C) Framing
E) Plumbing 4 Days C) Framing
F) HVAC 3 Days C) Framing
G) Electrical  3 Days C) Framing
H) Insulation 2 Days E) Plumbing, F) HVAC, G) Electrical
I) Drywall + Paint 15 Days H) Insulation
J) Flooring 7 Days I) Drywall + Paint

Step 5: Find the critical path 

Now that you have your estimated durations for each task, add that information to your
network diagram:

If you add up the durations for all of your “essential” tasks and calculate the longest
possible path, you can determine your critical path. In your calculation, only include the
tasks that, if they go unfinished, will impact the project’s finish date. In this example, if the
“non-essential” tasks—like landscaping and driveway pavement—are not completed, the
house structure completion date will not be impacted. 

You can also calculate the critical path using two common approaches: the forward pass
and the backward pass. These techniques are useful if you are asked to identify the
earliest and latest start dates (the earliest and latest dates on which you can begin
working on a task) or the slack (the amount of time that task can be delayed past its
earliest start date without delaying the project).

 The forward pass refers to when you start at the beginning of your project task list
and add up the duration of the tasks on the critical path to the end of your project.
When using this approach, start with the first task you have identified that needs to
be completed before anything else can start. 
 The backward pass is the opposite—start with the final task or milestone and
move backwards through your schedule to determine the shortest path to
completion. When there is a hard deadline, working backwards can help you
determine which tasks are actually critical. You may be able to cut some tasks—or
complete them later—in order to meet your deadline.  
You can read more about each of these concepts and critical path calculation methods in
the following articles:

 How to Use the Critical Path Method for Complete Beginners

 Critical Path Method: A Project Management Essential
Capacity planning allocates people and resources to project tasks and determines whether
you have the resources to complete the work on

Task buffers build extra time into the schedule to allow for potential delays—usually ones
that are outside of the team’s control.

A project buffer is extra time that you build onto the end of a project to allow for potential
delays.
A network diagram often looks like a chart with boxes and arrows and is a graphical
representation of project tasks, responsibilities, and workflow

Planning fallacy refers to faulty

predictions about how much time you
need to complete a task.

Critical path refers to the list of project

milestones that you must reach in
order to complete the project on time.
A forward pass is when you move
forward through your network diagram
to identify early start and early finish
dates

A backward pass is when you count

back from an end result to identify late
start dates and late finish dates.
Getting accurate time estimates from your
team
Hi again. Ready to get back into it? Let's go. Time estimation, effort estimation, and capacity
planning are all helpful techniques for creating your project schedule. At the center of all this
planning is your team. Throughout the schedule-planning process, you're working with teammates
to gather estimates, and you're taking into account each person's capacity when building the project
schedule. It makes sense to involve your teammates at this stage. After all, the person assigned to
the given task is likely to have the best sense of how long it will take to complete that task. They'll
also have the best sense of their own capacity for taking on the work. But these conversations are a
two-way discussion, and you'll need to tap into your soft skills to get the most accurate estimate
from your team. Soft skills are personal characteristics that help people work effectively with others.
These include crucial communication and interpersonal skills we've discussed over the course of this
program. Soft skills can be important when trying to understand what might be blocking someone's
ability to do their best work. Let's go over three ways to use soft skills and gather accurate estimates
from your teammates. These are asking the right questions, negotiating effectively, and practicing
empathy. Let's start with asking the right questions. Think of conversations around the time
estimation as a kind of interview. You're connecting with your teammates to learn more about how
they work on specific tasks, and you'll use this information to build your schedule. To aim to get the
most relevant information from these conversations, you'll want to be certain that you're asking
effective, open-ended questions that lead to the answers you're seeking. An open-ended question is
a question that cannot be answered with a yes or a no. The answer provides the relevant details of
what you need to know. Let's imagine this in the context of your project at Office Green. You've
discussed the design of the new website with your web designer, and you'd like to know how long it
will take them to mock up designs for your review. Now let's say you start the conversation by asking
a question like, can you complete the mock-ups in one week? This is a closed-ended question and
might elicit a simple yes or no answer, which doesn't tell you much about the task of designing a
website or about your teammate's working style. Now, imagine if you had started this conversation
with an open-ended question. For example, you might ask the web designer something like, how
long does it typically take you to mock up a website design like this one? This is an open-ended
question and is more likely to elicit a more detailed response. From there, you can ask follow up
questions like, how complex are the steps to complete this task? What are the risks associated with
this task? And, when do you think you can have this ready? By asking your teammates effective,
open-ended questions about their assigned tasks, you can learn more about how they work and
what they do. As you have more of these conversations, you will develop a better sense of your
teammates roles and their tasks, and you will be able to rely less on your team to make accurate
estimates. Another way to use soft skills to gather estimates from teammates is to negotiate
effectively. Part of your job as the project manager is to bridge the gap between high-level goals of
the project and the day-to-day perspective of your team. While your project might be your number
one priority, it's possible that people on your project team have competing priorities on other teams
to keep track of, as well. Negotiating effectively can help you influence a team member to make your
project their priority, by collaborating to find an outcome that works for everyone. For example, let's
imagine that the website designer estimates it will take them two weeks to mock up the website
design for review. But perhaps you were hoping that the estimate might be closer to one week. To
arrive at an estimate that works for both you and the designer, you might gently challenge the
estimate by asking follow-up questions. Perhaps you'd ask if their estimate includes mocking up
designs for multiple pages. If so, you might ask if the designer is able to share one or two pages with
you sooner than their proposed deadline. By asking questions, you can determine if their estimate is
flexible, or if you need to bring in an additional designer to support the schedule. By negotiating
effectively with your teammates, you can create a sense of shared ownership over the project
outcomes and create a schedule that aligns with everyone's workload. Now let's discuss the value of
practicing empathy. Empathy refers to a person's ability to relate to the thoughts and feelings of
others. Practicing empathy at work can be a very effective way to build trust with your team. Your
teammates are humans, and each person can only do so much. When you're discussing estimates
with the team, you might practice empathy by asking each person about their workload, including
work outside of your project and the overall work-life balance. You might also ask if they've
scheduled vacation or leave during the duration of the project, or if there are crucial holidays in
which they won't be working. This can help you avoid assigning tasks when teammates are unable to
complete them on time. For example, the web designer might tell you that they're also designing a
website for another team at Office Green, and that the timeline for both projects overlap. So, to
avoid overloading your designer with work, you might work with the other project manager to
balance workloads across the teams. People like to feel their work is valued, so part of empathy is
remembering to always be appreciative of the work, collaboration, and support that you're getting
from the team. So, to recap, asking the right questions, negotiating effectively, and practicing
empathy can help you get viable, accurate estimates from your teammates about project tasks.
Coming up, we will discuss putting these estimates to good use in the project plan.

This is a poll-based question. After you submit your response, you will know which options
are most common among your peers.

Reflect on a project or an activity you recently did with a team. Which of the following did
you find challenging?
Knowing how to negotiate with teammates
42.17%
Knowing when to use open-ended versus closed-ended questions with your team
26.59%
Having empathy for your team and their workloads
17.59%
Knowing when to use active listening with your team
13.64%
76,675 responses

Angel: The value of interpersonal skills in

time estimation
Hi, my name is Angel, and I'm a Program Manager at Google. I'm a mechanical engineer by degree.
My first boss out of school said, "You're an okay engineer, but your people skills are off the charts."
Having a technical background and having really good people skills is hard to find. Soft skills to me
have a lot to do with emotional intelligence—being able to read other people and then ultimately
really knowing yourself—and being able to read the team, read what they need, but then at the
same time, what am I doing? Either influencing the team in a good way, in a bad way, or just a
different way. Just asking, sometimes, people that don't usually raise their hand to give input goes a
long way, because a lot of times the folks that are maybe a little more quiet are genuinely thinking
about the problem and may have a lot of insights that if you didn't catch on that or ask them, you
could miss out. And so, to me, soft skills just means, just really understanding the emotional needs of
the team. That can really help with, whether it's estimations or costs, whether it be labor or dollar-
wise, get the full view from the team of what that might look like. When it comes to task estimation
and time estimations, the other thing is just asking good questions. Not just, "I need you to go
faster," but really saying, "Hey, how much faster could you go if I gave you this? What is stopping
you from going faster? What teams would you need to get involved to help this?" or "Hey, we have
an issue, are there similar issues in other parts of this project, and do we need to get together in a
larger group to bring that together?" I think as a Program Manager that's really your role is to see
patterns in a project and see where things are either slowing down or at a complete stop, and having
those soft skills to be able to bring the team together to solve that problem, and to even just see it.
Just to acknowledge that there is a problem, and instead of blaming is really just digging in, and how
do we learn from this? How do we fix this? How do we move on? Some of the things that also help is
just relating to your team members. If you've either been in a similar situation or just trying to
understand what their process is. Sometimes just having people walk through the estimate out loud
can sometimes come up with realizations of, we can save more time or could improve this just by
talking it out. I've been a Project Manager for machines that make labels to locomotive engines to
how you make plywood. Project management skills don't necessarily need to be all about the field
that you're in. It's really more about the method and the process and how you structure a team and
get people to work together.

Developing a project schedule

Hi again. In the previous videos, we took you through a few different time estimation methods. Now
you can relate how to use time estimation methods to prevent project failure.

Play video starting at ::13 and follow transcript0:13

Let's discuss how to pull all of this information into a project plan to help you and your team stay on
track to meet your goals. Even the simplest projects can benefit from a clear plan, and an anchor of a
good project plan is a clear schedule containing all the tasks of a project, their owners, and when
they need to be completed. Once you have your project schedule, you can build a solid plan around
that schedule using tools like spreadsheets and Asana.

Play video starting at ::42 and follow transcript0:42

We'll explain these tools in a few moments. But first, let's discuss building a project schedule.

Play video starting at ::48 and follow transcript0:48

There are many helpful tools that you can use to create a project schedule, but let's focus on one
that we sometimes use here at Google called a Gantt chart. A Gantt chart is a horizontal bar chart
that maps out a project schedule. Fun fact: the chart gets its name from American engineer, Henry
Gantt, who helped popularize the chart in the early 1900s. So, why did people working in project
management find this chart useful? Well, it's a highly visual representation of a projects tasks with
clear breakdowns of who's responsible for the work and when those tasks are due. For many people,
a visual aid that builds upon written directions can be a helpful way to understand and synthesize
the work they need to do, when they need to complete it, and how their individual tasks connect to
the other tasks in a project. Gantt charts are almost like calendars. They feature the start and end
dates of each task, and the bars align with how much time is devoted to each of those tasks. For
example, let's say that your teammate, Leon, is tasked with creating a project charter and another
teammate, Kylie, is tasks with reviewing and editing the charter when Leon is finished.
Play video starting at :2:5 and follow transcript2:05

Using a Gantt chart, you'll use colored bars to illustrate the days that they'll be working on these
tasks. With this method, you and the rest of your team can determine that Leon has Friday, Monday,
and Tuesday to work on the chart, and Kylie has Wednesday to complete any revisions.

Play video starting at :2:24 and follow transcript2:24

The bars cascade down to illustrate the passing of time and the blocks of time in which the tasks are
completed. Gantt charts can be a helpful tool for tracking schedules, but what kinds of tools can you
use to make a Gantt chart?

Play video starting at :2:41 and follow transcript2:41

There are a few options, but we're going to focus on a straightforward spreadsheet.

Play video starting at :2:46 and follow transcript2:46

Creating a Gantt chart in a spreadsheet is pretty simple. You can organize your left columns by items
like task title, task owner, start date, due date, duration, and percent of task complete. This is a great
place to list the tasks and milestones previously identified in a work breakdown structure. You'll
include relevant information in the rows below, organized by start date.

Play video starting at :3:14 and follow transcript3:14

On the right side of your sheet, you'll order your columns by the weeks estimated to complete the
project from start to finish. In the rows below that, you'll include bars representing the dates when
certain tasks will take place. Kind of neat, right? Spreadsheets are helpful here, because they can
hold more information than just the Gantt chart.

Play video starting at :3:35 and follow transcript3:35

Though the project schedule serves as the central component of the project plan, you can use
separate tabs on your spreadsheet to house or link to other documents you want to include in your
plan, like a RACI chart or a project charter. You may also opt to include your plans for risk
management and communication here too.

Play video starting at :3:55 and follow transcript3:55

With a spreadsheet, you can simply add a tab for your documents. Keeping every document for the
project in one spreadsheet saves time, helps everyone stay organized, and reduces the burden of
having to search through emails for information.

Play video starting at :4:10 and follow transcript4:10

Alternatively, you can also opt to use a digital document to link out all the relevant documents.

Play video starting at :4:17 and follow transcript4:17

While Gantt charts are a useful tool, they are far from the only option for your project plan, and
there are plenty of reasons why this form of documentation might not work for you or your project
team.

Play video starting at :4:28 and follow transcript4:28

For a simple project, you might find that your team responds better to a digital document that
features a list of tables or tasks, their owners, due dates, and links to other relevant planning
documents. Or perhaps your team works best with Kanban boards, which uses cards to track and
visualize the progress of your tasks.

Play video starting at :4:48 and follow transcript4:48

Regardless of your chosen tool, if your plan includes the project's goals, its tasks, owners, start and
end dates, and relevant planning documentation, then you'll be able to keep everyone on the same
page.

Play video starting at :5:3 and follow transcript5:03

Now you know a bit more about the tools that can be used to create a project schedule. Up next,
we'll discuss best practices for building a project plan. Meet you in the next video.

Question
Why do people working in project management find a Gantt chart useful? Select all that
apply.

It uses a series of linked documents to centralize components of the project plan.

It uses cards to track and visualize the progress of a project’s tasks.

It offers a highly visual representation of project tasks.

Correct
A Gantt chart is a horizontal bar chart that maps out a project schedule. Gantt charts
display a highly visual representation of project tasks, who is responsible for what work,
and when tasks are due.

It presents clear breakdowns of who is responsible for work and when those tasks are due.
Correct
A Gantt chart is a horizontal bar chart that offers an overview of the project schedule. This
visual format makes it easy to understand what team members need to do and when. It
also helps clarify how an individual team member’s tasks connect to other project tasks.

Peer-graded Assignment: Activity: Estimate a

project plan in a Gantt chart
i

It looks like this is your first peer-graded assignment.  Learn more

Ready for the assignment?

You will find instructions below to submit.

1. Instructions
2. My submission
3. Discussions
Activity Overview

In this activity, you will practice estimating a project plan by creating a Gantt chart. Gantt charts
are especially helpful for visually mapping out project schedules and tasks. They are useful for
complex projects because they clearly show project tasks, task owners, when tasks are being
worked on, and when those tasks are due. 

This activity expands on the Office Green operations launch scenario you used to create your
WBS. 

After you submit your work, review and respond to at least two of your classmates’ assignments.

Scenario
less 

Review the scenario below. Then complete the step-by-step instructions.

In the previous activity, Activity: Use a WBS to create project tasks and milestones - Part 1, you
began a new stage of the Plant Pals project for Office Green. This part of the project involves
working with the operations team to develop and implement an Operations and Training plan for
the new service. 

As a reminder, here is a review of the Operations and Training plan:

 Your team will use the plan for ongoing maintenance of the Plant Pals service.
 It will take six months to fully implement all protocols, including setting up
operational tools, putting delivery processes in place, and training employees.
 The project will begin before the Plant Pals launch and extend beyond it.

Your team for this stage of the project includes the following roles:

 A Financial Analyst, who tracks and calculates costs and revenue

 A Fulfillment Director, who sources materials, confirms fulfillment processes are
correctly implemented, and ensures equipment is functional (with the help of the
Quality Assurance Tester)
 An Inventory Manager, who maintains inventory and oversees software installation 
  A Human Resources Specialist, who manages hiring and develops training
protocols (with the help of the Training Manager)
 A Training Manager, who reports to the HR Specialist, runs the training program on
the established protocols, and refines training processes
 A Quality Assurance Tester, who ensures product quality and determines safety
protocols and best practices  

There are three major milestones and associated tasks for the Operations and Training plan:

Milestone 1: Establish a plant delivery and logistics plan

 Source packaging materials. This task will take 10 business days (March 1st to
March 12th).
 Hire delivery drivers. This process will also take ten business days (March 15th to
March 26th).
 Calculate the delivery fees. This task will also take 10 business days (March 29th to
April 9th). 

Milestone 2: Select and install supply chain software and equipment

 Supervise vendor setup of inventory management and fulfillment software. This

process will take three business days (April 12th to April 14th). 
 Supervise vendor installation of the fulfillment equipment from April 15th to April
16th (two business days). 
 Determine internal safety protocols for the equipment from April 19th to April 30th
(10 business days). 

Milestone 3: Develop and launch an employee training program

 Develop training sessions. This task will take 10 business days (May 3rd to May
14th).
 Train employees to use the software and equipment. The training sessions will take
place over 10 business days (May 17th to May 28th). 
 Monitor employee progress and improve training processes. This process will last
for 10 business days (May 31st to June 11th).

Your goal is to put all of this information into a Gantt chart, so your team can tell who owns what
tasks, when each task is due, and how long the overall project will take.

Step-By-Step Assignment Instructions

less 

Step 1: Access the template

To use the template for this course item, click the link below and select “Use Template.”
Link to template: Gantt chart

OR

If you don’t have a Google account, you can download the template directly from the attachment
below.

Activity Template_ Gantt chart

XLSX File

Step 2: Add milestones to your Gantt chart

Add your three project milestones to the Gantt chart in sequential order. Enter them in the grey
cells under Milestones & Tasks. We have already added one milestone for you ("Develop and
launch an employee training program").

Step 3. Add tasks to your Gantt chart

Now add the project tasks to the Milestones & Tasks column. Be sure to list each task in
sequential order under the appropriate milestone. Your chart should contain three tasks per
milestone (nine tasks in total). We have already added one task per milestone for you.

Step 4: Assign task owners

Next, determine who should own each task. When selecting task owners, consider how your
team members’ jobs relate to the project’s tasks. Enter each task owner’s role under the Task
Owner column.

Note: While more than one person can work on a task, you should assign only one owner per
task.

Step 5: Set start dates, due dates, and durations

Now review the scenario and write the start date for each task under Start Date. Then enter task
due dates under Due Date. Finally, record each task’s duration under Duration. 

Note: Make sure to exclude weekends when calculating durations.

Step 6: Color code your timeline

On the right side of the chart, under Phase One, Phase Two, and Phase Three, mark the
duration of each task by color-coding the cells below the corresponding dates. 

For example, Task 1.2 runs from March 15th through March 26th. We’ve filled in the boxes that
correspond to those dates in the template. Be sure to use the shade of blue that matches each
project phase in the chart.

Pro Tip: Save the template

Finally, be sure to save a blank copy of the Gantt chart template you used to complete this
activity. You can use it for further practice or in your own personal or professional projects. These
templates will be useful as you put together a portfolio of project management artifacts. You can
use them to work through your thought processes as you demonstrate your experience to
potential employers.

Review criteria
less 

There are a total of 6 points for this activity. At least two of your peers will evaluate your Gantt
chart. Your final grade will be the median of these scores. You must get 5 out of 6 total points to
pass.

Giving Good Feedback

less 

Once you submit your Gantt chart, review at least two of your classmates’ work and give
feedback on their charts. Below, you will find some guidelines to help you leave constructive
comments for your peers. 

When giving feedback, consider:

 Leading with positive feedback

 Providing actionable feedback
 Sticking to information-specific, issue-focused, and observation centered comments

Ready to submit your work? Head to the My Submission

tab at the top of the page.

Project plan best practices

Question
Which strategies can help your team get a realistic sense of how long the project will take?
Select all that apply.
Project retrospective

Capacity planning
Correct
It’s important to assess what the team can and cannot accomplish within a certain time
frame. That’s where effort estimation and capacity planning can help. These strategies
offer the team a sense of how long a project will take and when the team will reach its
milestones.

Stakeholder buy-in

Effort estimation
Correct
When creating a project plan, it’s important to get a sense of how long the project will
take. To do that, project managers use effort estimation and capacity planning. These
strategies help the team understand project duration and when they will reach project
milestones.
SkipContinue

Hi again. Earlier, you learned about creating a project plan based on a project schedule that lists all
of the milestones, tasks, and deadlines for the project and that clearly outlines the people
responsible for each task. You also learned about Gantt charts, which are simple visual ways to
create your schedule. So, how can you help make sure that your plan works for you and your team?
Let's discuss five best practices for building a great project plan that will remain useful throughout
the execution and closing phases of your project. Those include: ensuring careful review of project
deliverables, milestones, and tasks; giving yourself time to plan; recognizing and planning for the
inevitable (things will go wrong); staying curious; and championing your plan. First, you'll want to
ensure that you've carefully reviewed the project's deliverables, milestones, and tasks. During the
initiation phase, you'll recall that you created a project charter with important information regarding
your project, like your goal, scope, and deliverables. When a project enters the planning phase, your
plans become more granular. Let's discuss this in the context of your project at Office Green. In your
plan, you need to break this information down further. You're creating a new website for the service,
so you'll need to break that deliverable down into smaller milestones, like kicking off a meeting with
the web developer and gaining stakeholder approval. And those milestones will break down into
smaller tasks, like mocking up a design of a new website and developing a landing page. Each of
these tasks will be assigned to a teammate and given a start and end date. Now, a new website isn't
the only Project Plant Pals deliverable. You'll need to break down every deliverable into milestones
and tasks to ensure that you and you team have a clear picture of what need to be done to meet
your project's goals. Your plan revolves around completing each and every tiny task, so you should
take your time to get this piece right. This brings me to my second tip: give yourself time to plan.
There's a reason that planning is its own phase of the project life cycle. It's a time-intensive process,
especially for larger projects with multiple deliverables. Planning gives you and your team some time
to think realistically about what your team can and cannot accomplish within a certain time frame.
You're not a machine, and neither are your teammates. There are limits to the amount of work any
one person can do in a given time frame. Using the strategies that we've shared earlier, like effort
estimation and capacity planning, can help you and your team get a realistic sense of how long the
project will take and when you'll be able to hit your milestones. It's also important to allow for buffer
time, since projects rarely go exactly as planned. Later in the project, you'll be grateful that you
initially planned for some built-in flexibility around timing. That leads nicely into my third tip:
recognize and plan for the inevitable—things will go wrong. Even with thorough planning, your
projects will still experience unexpected setbacks and bumps in the road. You can't plan for every
problem, but the team can identify the risks that will most likely occur and create plans to prevent or
mitigate those risks. As we mentioned before, buffer is a helpful tool for mitigating issues related to
slowdowns in progress. You'll learn more about how to create a risk management plan that goes into
your project plan later on in this course. Onto my fourth tip: stay curious. Though you may be the
sole expert on your project overall, it's extremely unlikely that you're an expert on every task of the
project. That's why it's so important to sit down with your teammates during a planning phase and
ask lots and lots of questions. As we mentioned earlier, asking your teammates questions about
their work can give you deeper insights into their tasks for the project. Their input will help you build
a stronger plan, and the back and forth dialogue will help you build trust between you and your
teammates. To keep the project running smoothly, it's also important to understand the
expectations, priorities, risk assessments, and communication styles of your stakeholders and
vendors. For example, you might ask stakeholders how to best keep them in the loop on the
project's plans, and you might ask your vendors about their availability to complete work for the
project. Now onto my fifth tip: champion your plan. While deciding how to organize your plan, you'll
want to ask yourself a few questions. Like, can your teammates use the tool you used to build your
plan? Is the information clear enough for your stakeholders? Will using this plan as a single source of
truth save your team and stakeholders the time and energy when they need to find information on
the project? If the answer to each of these questions is a strong yes, then you're on the right track.
To achieve buy-in from your teammates and stakeholders on your project plan, champion it! Tell
your team why it benefits them to stay on top of the plan. By doing so, you may influence your
teammates to stay on track and update the plan regularly. So to recap, you can set your project plan
up for success if you review your deliverables, milestones, and tasks; give yourself time to plan;
prepare for things to go wrong; stay curious; and champion your plan once it's finalized. Coming up,
we'll recap what you've learned over the past few videos. See you there.

Creating a project plan: Tools and templates

Project plans are critical because they are used to capture the scope and time it takes to
complete a project. The project plan is essentially the project’s blueprint—it lays out all of
the activities and milestones that your team needs to achieve in order to successfully
complete the project. Project plans come in various shapes, sizes, and forms. Depending
on the project you are managing, the template you use may vary, and some companies
even have standard templates they require their project managers to use. 

In the previous videos, you learned about various tools and techniques to create a project
plan. But how do you know which tools and techniques to use and when? As a general
rule, it is best to use a spreadsheet for a simple project and project management software
for a more complex project. Regardless of what tool you use, be sure to include this key
information: 
  Task ID numbers or task names: You might end up with dozens, hundreds, or even
thousands of tasks in a project. Assigning a task ID or name makes it easy to find
and reference a task when communicating with team members and stakeholders. 
 Task durations: A task duration is the amount of time you estimate that task
should take. Adding task durations to your project plan helps you organize and
prioritize the tasks in the project to help ensure you hit your goal on time. 
 Start and finish dates: Including start and finish dates for each task helps you
track whether you are progressing on time or not. 
 Who is responsible for what: Including each team member’s role and
responsibilities helps promote clarity and efficiency. As a best practice, assign an
owner to each task, as well.
Using a spreadsheet to build a project plan

Spreadsheets are an excellent tool to use for project plans, particularly for projects that
are less complex and that have a clear assignment of tasks. Spreadsheets can require a lot
of manual input of information, but as a project manager, you may find that you like the
control that spreadsheets provide. Spreadsheets are also customizable, so you can tailor
them to your project’s needs. 

The graphic below shows what a project plan for a website launch might look like in a
simple spreadsheet.
Pro tip: It is important to incorporate your Work Breakdown Structure (WBS) numbers
into your project plan. In this example, the ID numbers directly relate to the WBS numbers,
which is a helpful way to maintain consistency. 

Spreadsheet templates

It is helpful to try online tutorials so that you can get used to the different functionalities
and user interfaces of each tool. We have included links to some project plan templates
below:

Smartsheet: Project Plan Templates for Microsoft Word

Smartsheet: Project Plan Templates for Google Sheets

Google Project Plan Timeline Template

Microsoft Gantt Chart Template

Work management tools

There are many work management tool options available for you to utilize when planning
your project. We covered some of these in previous videos, but as a refresher, it is
important to keep in mind that every company, project manager, and customer has a
work management tool preference. You may come across tools like Smartsheet, Asana,
Jira, Trello, and many more. These tools allow for collaboration and communication at a
task level. 

Key takeaway

The tool you use to create your project plan should help you collect and track project
details, manage your schedule, and visualize how your project is progressing. A clear,
thorough, and organized project plan can help create the recipe for project management
success.

Introduction to Kanban boards

Kanban boards are a visual tool used to manage tasks and workflows. Kanban boards can be created
on whiteboards, magnetic boards, poster boards, computer programs, and more. Tasks associated
with the project are written on cards. These cards are placed in columns, which represent the progress
made. 

Although Kanban boards are useful for all kinds of projects, they are typically most suitable for project
teams working in an Agile project management approach. You may remember that Agile project
management is an iterative approach to managing projects that focuses on continuous releases and
incorporates customer feedback with every iteration. Once you become a project manager and have
created your project plan, you can decide whether a Kanban board is right for your project. 
Purposes of a Kanban board

Kanban boards are used to:

 Give a quick visual understanding of work details and provide critical task information.
 Facilitate handoffs between stakeholders, such as between development and testing resources
or between team members who work on related tasks.
 Help with capturing metrics and improving workflows.

Using a Kanban board

Before creating a board, it is best practice to gather the necessary information and lay out key
elements, such as tasks, status, dates, and durations. That information is useful when building your
board. 

Let’s turn our focus to an example of a Kanban board below. Each colored rectangle is associated with
a task. The tasks are represented horizontally across the effort timeline. Each column represents where
the task is in relation to its completion. So as a task is started, it will move from to do, to in progress.
When the project is almost ready to be released or complete, it will move to testing, and when it is
tested and approved, it will move to done. Note that this is just one example of a Kanban board, and
depending on the tool you use—such as software or a physical board—you can customize your board
using various columns and cards. The board can also have rows for resources (team or person), to help
visualize who is actively working on what.
Creating cards

Cards will vary in style—you can even use sticky notes on a whiteboard—but most cards will contain a
few key details about the task that they represent. When using physical cards, teams often use both
sides. Here is what both sides of the card should include:

Front
 Title and unique identifier: Make sure you have a quick reference for tasks and ID numbers.
 Description of work: Briefly describe the task to be accomplished. Remember that this is
intended to be captured on something no larger than an index card.
 Estimation of effort: Estimate the amount of work it will take to complete the task. For
example, you can write “small,” “medium,” or “large” to indicate the level of effort you think
that task will involve. 
 Who is assigned to the task: Indicate who is responsible for completing the task; ideally, one
person per card.

Back 
 Start date: Include the start date of the task for use in metrics, tracking, and ensuring that your
time estimate is accurate.
 Blocked days: Indicate which days your task may be halted. A task can become blocked if it
can’t continue to be worked on. For example, if you were supposed to receive a deliverable and
it hasn’t been delivered yet, then your day may be blocked for this particular task.
 Finish date: As with any plan, it is important to track when the task is supposed to be finished.
This allows you to ensure that your project is still on track to reach the end goal.

Kanban board software

If you opt to use a software tool rather than a physical board, you have a few options. Asana and Trello
are both great software tools to use if you are looking to introduce Kanban to your project. There are
many options, so take the time to evaluate which is best for you and your project.

Completed
Test your knowledge: Utilizing tools to build a project plan
Total points 4

1.
Question 1

Gantt charts give project teams a visual representation of project tasks. What else do Gantt charts
include?
1 / 1 point

Resources, deliverables, and success metrics

Stakeholder contact information and budget items

Due dates, durations, and milestones

Roles and responsibilities

Correct

A Gantt chart provides a visual breakdown of project requirements and project completion dates.
2.
Question 2

What tool can a project manager use for organizing all aspects of a complex project?
1 / 1 point

A calendar

Email

A digital document

Work management software

Correct

Work management software like Asana and JIRA allow collaboration and communication at the task
level. These tools help streamline management of complex projects. 
3.
Question 3

Which project management tool uses cards to track and visualize task progress?
1 / 1 point

A Gantt chart

A Kanban board

A spreadsheet

Smartsheet
Correct

Kanban boards are used to manage tasks and workflows. Project managers can create Kanban boards
on whiteboards, magnetic boards, poster boards, and computer programs. 
4.
Question 4

When creating cards for a Kanban board, which items should go on the front of the card? Select all that
apply.
1 / 1 point

Blocked days

Who is assigned to the task

Correct

This indicates who is responsible for completing the task; ideally, one person per card. The front of the
card should also contain a title and unique identifier, a description of the work, and an estimation of
the effort required to complete it.

Title and unique identifier

Correct

These enable you to have a quick reference for tasks and ID numbers. The front of the card should also
contain a description of the work, an estimation of the effort required to complete it, and who is
assigned to the task.

Description of work
Correct

This briefly describes the task to be accomplished. The front of the card should also contain a title and
unique identifier, an estimation of the effort required to complete the task, and the person assigned to
it.

Weekly Challenge 2
Latest Submission Grade 97.5%

1.
Question 1

Which of the following are relevant project documents you should link to in your project plan? Select all
that apply.
1 / 1 point

The organization chart that depicts everyone who works in the company with their contact information

Daily review emails and messages between the stakeholders, project manager, and project team

The project charter that defines the project and outlines project goal details
Correct

RACI charts that define roles and responsibilities for individuals on a team
Correct

2.
Question 2

Fill in the blank: The main difference between effort estimation and time estimation is that time
estimation includes _____.
1 / 1 point

marketing time

vendor time

stakeholder time

inactive time
Correct

3.
Question 3

A project manager is leading an initiative that includes changing an organization's logo and slogan.
What mandatory tasks should be part of the critical path? Select all that apply.
0.75 / 1 point

Get employees to respond positively in a survey

This should not be selected

Please review the video on capacity planning and critical path.

Set a budget
Correct

Determine a new slogan

Correct

Receive sponsor approval

Correct
4.
Question 4

Which of the following scenarios exemplify how a project manager can use interpersonal skills? Select
all that apply.
1 / 1 point

The web designer on your project tells you that they’re not sure they can meet the deadline for all the
mock up pages. You ask the designer some questions about the project, such as what amount of time
they need for each page mock so you can help prioritize what is feasible.
Correct

The timeline is set for the Office Green project. You tell the web designer on Wednesday that you’ll need
a complete mock up for the site by Friday.

The person on your team in charge of contracts now needs to split their work time with another team.
You request a meeting with that team’s project manager to identify if any of their project deliverable
dates are competing with your project’s timeline.
Correct

You’re managing a project with team members who are on multiple projects. You asked the team
members to prioritize your project because you know there are many overlapping due dates.
5.
Question 5

Which of the following should you include in a project plan that are essential for project success? Select
all that apply.
1 / 1 point

Links to tasks in previously successful projects

A timeline of when the team will complete the tasks

Correct

Specifically who are completing what tasks

Correct

All project tasks

Correct
6.
Question 6

Imagine you’re a project manager helping a car company with a new vehicle launch. Your project goal
is to ensure vehicle delivery to dealerships. To achieve this, you speak with stakeholders and subject
matter experts to understand the granular details of the project. This information helps you know what
steps to take to best achieve the project goal. This example includes which project plan best practice?
1 / 1 point

Carefully understand project deliverables, milestones, and tasks.

Recognize and plan for the inevitable.

Achieve buy-in from your team members for your plan.

Give yourself time to plan.

Correct

7.
Question 7

As a project manager, you realize that with the current timeline, it’s unlikely you will meet the project
deadline. Which of the following strategies could help you meet the deadline? Select all that apply.
1 / 1 point

Revise the project schedule without stakeholder approval.

Eliminate any unnecessary tasks.

Correct

Request more resources, such as an additional team member.

Correct

Identify tasks that can be done in parallel.

Correct

8.
Question 8

Fill in the blank: The _____ is the tendency to underestimate the amount of time it will take to
complete a task.
1 / 1 point
anchoring bias

planning fallacy

feedback fallacy

confirmation bias
Correct

9.
Question 9

When creating a critical path, what does a network diagram help visualize? Select all that apply.
1 / 1 point

Which skilled teammate can work on each task

The path of work from the start to the end of the project
Correct

Which non-essential tasks are not on the critical path

Correct

The tasks that can be performed in parallel

Correct

10.
Question 10

Which of the following is a visual tool a project manager can use to manage tasks and workflows?
1 / 1 point

RACI chart

Kanban board

Project charter
Stakeholder power grid
Correct

Week:3

Introduction: Managing budgeting and procurement

Question
Who creates estimates for the project budget?

Project sponsor

Team representative

Chief Financial Officer (CFO)

Project manager
Correct
The project manager also collaborates with other people on the project to create the
estimates.

The importance of budget setting

Let's get back to budgeting. You may already set a budget to help you stay on track with your
monthly expenses in your personal life. Many people do because it allows them to feel prepared and
in control of their finances. The same is true about project budgeting. Project budgeting is a little
more complex than your personal budget. We'll help you understand and go a little deeper into what
a project budget entails. A project budget is the estimated monetary resources needed to achieve
the project's goals and objectives. When reviewing a project budget, you need to consider all of the
potential and projected costs needed to complete the project.

Play video starting at ::41 and follow transcript0:41

You break the budget down by milestones, which are important points within the project schedule
that indicate progress and usually signifies the completion of a deliverable or phase of the project,
and list activities and tasks alongside their associated costs.

Play video starting at ::57 and follow transcript0:57

This ensures that you calculate the correct expenses for a particular period of time. This is
considered a forecast. A forecast for your project budget is a cost estimate or a prediction over a
period of time. You'll frequently review your project budget and it will evolve throughout the project
life cycle. These budgets usually contain items such as labor, operating costs and costs associated
with obtaining necessary materials like hardware, software, or equipment. The importance of a
project budget focuses on more than just saving money. In project management, a budget is
considered a deliverable. It is a success metric. The project budget is a tool to communicate exactly
what is needed and when it is needed with stakeholders.

Play video starting at :1:45 and follow transcript1:45

The budget will have a direct effect on the company's financial viability. So, as you can probably tell
by now, it's an integral part of project management. Budget creation takes place in the initiation
phase of your project. Keep in mind that the budget will be adjusted as needed throughout the
lifecycle of the project. Depending on your role in the company, you won't always be the sole
creator of the budget.

Play video starting at :2:11 and follow transcript2:11

Your ownership over things like budget and vendor relationship may vary depending on factors such
as size of the company or support team or the team organizational chart. Although you may not
always manage the budget from start to finish, budget and milestones go hand in hand. So it's
important for you to know the ins and outs of the budget throughout the project. As a project
manager, you may be tasked with obtaining approvals for spending. Most companies have a signing
or spending policy. This usually outlines who has the authority to commit resources or incur costs or
other obligations on behalf of the company.

Play video starting at :2:51 and follow transcript2:51

This is important because you won't be able to continue with some of your deliverables or action
items, if you don't know how much certain activities will cost, and whether you have the necessary
funds available. It wouldn't make any sense to rent a property without checking on the rental cost
first, right? That's especially true if the rental price is higher than your budget. The same thinking is
applicable for your project budgeting. The budgeting process usually happens in conjunction with
the scheduling process because the steps of the scheduling process are highly dependent on the
costs. The project manager will collaborate with people on the project to create their estimations.
For the most part, after the cost estimating process has been completed, it's common for the project
sponsor or another key stakeholder to review and approve estimation costs. And if necessary adjust
and reallocate funds for the project, this could mean that either the CEO or the COO are the ones
giving the okay or the final sign-off. For example, in our Office Green project, the director of product
has sign-off approval. As we mentioned before, the project manager will most likely need some kind
of sign-off from the finance department. This may vary from company to company. So just make
sure you're aware of your company's processes. Project budgeting is never a one-size-fits-all
operation. As the project manager, you will have to prioritize where you allocate funds within the
project to ensure maximum output.

Play video starting at :4:20 and follow transcript4:20

Ultimately, most projects are created to improve workforce productivity, increase revenue, or
attempt to save costs within an organization. Budgeting is one of the most important aspects of
project management, and when you start, to stay on budget is one of the trickiest tasks. It's
important not to go over budget and cost the company extra money, and it's equally important not
to be under budget either since that might affect the company's budget for the next year. When it
comes to high-profile businesses, such as publicly traded companies like Google, or public sector
organizations such as your local education department, they may have a requirement to report on
their financial performance to shareholders or auditors. Going too far over or under budget will
change the way the company budgets for the next year, potentially leaving you with less money to
work with in the future. In other words, a project manager must show the requested amount of
money was used in order to secure enough budget for future projects. For smaller businesses, there
may be a tighter budget, in which case it's especially critical to be careful about spending too much
money on a project than initially allocated. It's really helpful to your overall success as a project
manager to understand budgeting. So in the next video, we're going to learn the specific ins and outs
of what's included in a budget. See you soon.

Question
What should a project manager account for when project budgeting? Select all that apply.

Competitor prices

Stakeholder needs
Correct
It’s important to know exactly what stakeholders expect from the project.

Reforecasting throughout the project

Correct
A project manager may need to create a separate, revised budget based upon how the
project is tracking.

Surprise expenses
Correct
By budgeting for surprises, the project manager is less likely to go over budget.

Key components of a project budget

Now that you have an understanding of what a budget is, let's discuss some specific components in a
budget. There are so many things to factor into project budgeting. Unfortunately, it's not quite as
simple as a company saying, "We have $5,000, so that's our budget." When you go to the grocery
store, in the same way that you don't determine how much apples will cost, businesses can't just
decide that they want to spend $200 on a project if the market rate for a project of the same caliber
is $2,000. Instead, project managers must account for understanding stakeholder needs, budgeting
for surprise expenses, maintaining adaptability, and reviewing and reforecasting throughout the
entire project. These are only some examples of what you need to take into account. Let's imagine
some of these factors in our Office Green project. In terms of understanding stakeholder needs, it's
important to know exactly what stakeholders expect from this project in order to deliver. As a
company, the ultimate goal is typically to make a profit and to save money and time. The project
sponsor—the Director of Product, in this case—needs the project to come in at a certain cost in
order to make profit. As the project manager, you will also need to budget for surprise expenses.
Let's say several planters arrive from the vendor broken and cracked. Maybe the planter is cracked
during delivery process, and it isn't the vendor's fault. In that case, you will have to order some
additional planters to fulfill orders, and that may be an added cost. As your project continues along,
you'll have to review your budget and sometimes reforecast, which means creating a separate
revised budget based on how your project is tracking. Keeping on top of the budget will help you
stay organized, and reforecasting is a way to recalibrate the budget, if necessary. As the project
manager Office Green, you might find that you need to shift costs to different resources and
categories within your project budget. Maybe you initially overestimated the cost of plants from the
vendor and underestimated the costs of marketing your new launch. You can reallocate these dollars
as necessary. That's a great example of how to review and reforecast. There are several factors to
consider when creating a budget, including resource cost rates, reserve analysis, contingency
budget, and cost of quality. You'll need to determine resource cost rates. Resource cost rates are
exactly what they sound like, the cost of a resource. Some examples of resources are labor, tools,
equipment, materials, and software. You'll want to ask yourself, how much will each of these
resources cost the company? Sometimes a project can be derailed because the project manager
didn't adequately include funds for reserves or buffers. Performing a reserve analysis will help you
account for any buffer funds you may need. A reserve analysis is a method to check for remaining
project resources. In performing a reserve analysis, you'll review all potential risks to your project
and determine if you need to add buffer funds. These funds are necessary because new costs that
you didn't originally foresee will arise. This is also known as contingency budget. Contingency budget
in the context of project management, is money that is included to cover potentially unforeseen
events that aren't accounted for in a cost estimate. The purpose is to compensate for the
uncertainty that occurs in cost and time estimates, as well as unpredictable risk exposure. The cost
of quality refers to all of the costs that are incurred to prevent issues with products, processes, or
tasks. The cost of quality includes prevention costs, appraisal costs, internal failure costs, and
external failure costs. Once you've applied these factors, resource cost rates, reserve analysis,
contingency budget, and the cost of quality into your budget, you can estimate what your project
might cost. Remember, your budget will most likely change, starting with an initial estimate is one
way to ensure that you're at least on track and it's okay if your budget does change, that's why we
review and reforecast. Hopefully, you're starting to notice the framework for creating a budget. In
the next lesson, we'll begin to piece a budget together. Let's put all of your notes and newly acquired
knowledge to use. See you soon.

Project budgeting 101

A project budget is the estimated monetary resources needed to achieve a project's goals and
objectives. In previous lessons, we covered a wide range of information related to project budgets.
Let’s recap to make sure you have the information and tools you need to create and manage your
project’s budget.

Budgets are typically created in the initiation and planning phases of your project. As with any other
project management document, you need to continue to review and control the budget throughout
the life cycle of your project. Your budget is more than just how much it will cost to complete the
project—it is a helpful tool to reference when communicating with stakeholders and can double as a
tracker for your project’s progress. Budgets also help control your costs and act as the baseline for the
financial portion of the project. 
Project budgeting best practices

Here are a few tips to consider when creating your project budget:

 Reference historical data: Your project may be similar to a previous project your organization
has worked on. It is important to review how that project’s budget was handled, find out what
went well, and learn from any previous mistakes.
 Utilize your team, mentors, or manager: Get into the habit of asking for your team to double
check your work to give you additional sets of eyes on your documents.
 Time-phase your budget: Time-phased budgeting allows you to allocate costs for project tasks
over the projected timeline in which those expenses are planned to take place. By looking at
your tasks against a timeline, you can track and compare planned versus actual costs over
time and manage changes to your budget as necessary.
 Check, check, and double check: Make sure that your budget is accurate and error-free. Your
budget will likely require approval from another department, such as finance or senior
management, so do your best to ensure that it is as straightforward to understand as possible
and that all of your calculations are correct.

Categorize different types of costs

There are different types of costs that your project will incur. For example, you may need to account for
both direct costs and indirect costs in your project budget. Categorize these different types of costs in
your budget so that you can ensure you are meeting the requirements of your organization and
customer. 

Direct costs
These are costs for items that are necessary in order to complete your project. These costs can include:

 Wages and salaries of employees and contractors 

 Materials costs
 Equipment rental costs
  Software licenses 
 Project-related travel and transportation costs
 Staff training

Indirect costs
These are costs for items which do not directly lead to the completion of your project but are still
essential for the project team to do their work. They are also referred to as overhead costs. These costs
can include:

 Administrative costs
 Utilities
 Insurance 
 General office equipment 
 Security

Develop a baseline budget

A baseline budget is an estimate of project costs that you start with at the beginning of your project.
Once you have created a budget for your project and gotten it approved, you should publish this
baseline and use it to compare against actual performance progress. This will give you insight into how
your project budget is doing and allow you to make informed adjustments.

It is important to continually monitor your project budget and make changes if necessary. Be aware
that budget updates can require the same approvals as your initial budget. Also, you should “re-
baseline” your budget if you make significant changes. Re-baselining refers to when you update or
modify a project's baseline as a result of any approved change to the schedule, cost, or deliverable
content. For example, if you have a significant change in your project scope, your budget will likely be
impacted. In this instance, you would need to re-baseline in order to adhere to a realistic budget.

Key takeaways

Budgeting in the project management world is a complex process involving many different parties and
documentation, but following the best practices described in this reading can help break it down.
Remember to use historical data and time-phasing, and reach out to your team for support. Make sure
you are capturing all of the components of your budget, including direct and indirect costs. Finally, be
sure to baseline your budget so you know where your money is being used and when. These tips can
help set you up for budget management success.

Completed

Creating a project budget

Now that we've learned about budgeting, let's find out how it all works together. By now, we know
that project budgets helped to control costs throughout the duration of the project. They help
project managers establish the main objectives of their project and keep them within a reasonable
framework to ensure that the project makes financial sense for the company. What's the best way to
start making a project budget? You'll find that as you get further along in the process, there are
various resources and tactics that you can use to make sure you aren't overestimating or
underestimating. You'll use techniques like researching historical data, leveraging experts, the
bottom-up approach, confirming accuracy, and setting your baseline. For starters, you can always
review past projects that are similar to yours to get an idea of what your project could entail. We
refer to that as referring to historical data. This way, you can find out what past project managers
did right and wrong. The more experienced you become as a project manager, the more historical
data you will have to draw upon, and the better your estimations will be. In a similar vein, you can
leverage experts in the field. To leverage something means to use it to its maximum advantage.
Leveraging experts means gathering their insights to do something more effectively. Reaching out to
colleagues who worked on a similar project in the past will be a great resource for you as an entry-
level project manager. If you're asking someone outside of your company for advice, be sure to
avoid sharing any confidential company information with them. Another approach to take is the
bottom-up approach. This means thinking about all the parts of a project from the beginning to the
end, including making a list of every material, resource, contract worker, or anything that comes
with an associated cost, and adding all of that together. You should also ask the vendors you are
thinking of working with for quotes, so you can get a rough estimate of how much their work will
cost. After you've created your budget with these resources, you'll want to double-check everything
to confirm accuracy. Of course, the work doesn't stop once you've created the budget. Next, you'll
have to set the baseline. Your baseline is the dollar amount that you'll use to measure against, to
find out if you're on track or not, and to measure the success of your project. Once you've set your
baseline, you'll have to revisit that number and adjust it to match where the project is currently.
Making adjustments in real-time is something you have to do a lot as a project manager. The size of
the project and company will determine how often you should re-examine and update the budget.
Creating a thorough budget is important to the success of your project. With Project Plant Pals, we
suggest breaking the project down into tasks. That's the bottom-up approach. From there, we
estimate the cost of each item, add those estimates together, add contingency and tax, and seek
overall approval on our budget from our key stakeholders. Since we're creating a new service, we'll
need to hire designers and developers to build out the website and develop the app for our
customers. Once these tasks are laid out, you'll have to negotiate employee allocations, contractor
rates, and shop around for vendors and delivery services. This will help you assign cost estimates to
each task. Now that the tasks have been broken down and assigned, you'll need to account for
material costs. Do your team members and stakeholders need equipment? Maybe an employee with
a disability requires modifications to accommodate or enhance their workplace. Maybe some
remote workers need the hardware and accessories necessary to work from home. This is where you
will include everything from computers to software related to the launch. Will you need storage
space for miscellaneous plants or supplies? "Miscellaneous" is a term that we use to represent
additional items that are not included in any of the other areas. Usually, they are minor items or
items where there are only one or two of them, and that they are not a major budget line. Be sure to
add these items to your expenses. You will also need a few more line items. Start with the fixed cost
that won't change over the course of the project. Let's say you're paying to advertise the web
developer role to a job board. It may cost you about $50 to post that job description. That's an
example of a fixed, one-time cost. Next, you'll need a line item for things like travel expenses and
meals. Finally, we want to account for buffers and reserves. You'll need to factor in unexpected costs
that may come up later on. Be sure to leave yourself with some buffer room. We've chosen to
account for five percent of the overall project budget as our buffer. This is a standard practice and
depending upon how much detail you know about the project already, you can raise or lower your
percentage for reserves. The client needs to be aware of this buffer in case spending starts to
become excessive. In which case, you need to problem-solve with the client and agree to adjust the
scope. You'll want to include a planned cost versus actual cost column too. This way, you can keep
track of your cost every step of the way. We'll provide you with concrete budget templates in the
readings associated with this section so you can fully immerse yourself in the process. Remember,
every project will have an estimated cost and a final cost. Your goal is to get your estimated cost as
close to the final cost as possible. You may have to recalibrate your estimations during the project.
That's when the estimated cost to complete the project comes in. The final cost of your project
differs from the forecasted or estimated cost if you weren't exactly on target with your budget.
Remember, while your goal is to get as close to the original estimate as possible, that won't always
be the case. Each time you're placed on a new project, it will be helpful to look back on the final
costs of previous projects and see how close you came to your goal. Now you know the best way to
create a project budget. Up next, we're going to talk about maintaining a budget. See you there.

Helpful budget templates

In the previous lessons, you learned that projects come in all shapes and sizes—and so do
their budgets. Budgets can be created in a simple spreadsheet or with more complex
software programs. Determining which tool is right for you and your project will require
input from your organization and your customer.  

Budget spreadsheet templates

Budget templates are a useful tool for helping you estimate, track, and maintain a project
budget. Below, you will find a few different budget templates that you can use for future
projects. Each of these templates is formatted in a digital spreadsheet. 

Microsoft Excel Budget Templates 

Microsoft Excel Website Budget Template (applicable to any project)

Google Sheets Budget Template (Note: You will need to be signed in to a Google account in
order to make a copy of the template.)

Spreadsheet skills for budgeting

When using a spreadsheet to track a budget, there are basic skills you will need to learn.
Understanding how to use SUM and AVERAGE formulas, tables, and filters are just a few of
the spreadsheet skills that will make your job as a project manager much easier. Make
sure to check the course resources on spreadsheets for an introduction to these skills.

Maintaining a project budget

Now that you have an idea of how to create a budget, we're going to discuss how you'll manage that
budget and explore some challenges that you might face, like being under or over budget. As
mentioned previously, you'll want to check in on your budget regularly, but what exactly does that
mean? What are you checking for? How can you tell if you're staying within your budget or not?
Monitoring the budget is crucial for a project manager to enforce accountability in terms of
spending.

Play video starting at ::31 and follow transcript0:31

By monitoring your budget regularly, you'll be able to tell if the plans you set into action are actually
being implemented on both a financial and operational level. As you may recall from a previous
video, a milestone is an important point within the project schedule that indicates progress and
usually signifies the completion of a deliverable or phase of the project. Milestones are a metric for
tracking progress in the project. Milestones are a great opportunity to re-review the budget to
identify if anything needs to be reset or revisited throughout the project. That said, milestones can
act as a checkpoint for budget management and payment. You may have agreed in your contract
that you get paid at certain milestones rather than at the end of the project. Fixed contracts are
usually paid for when certain milestones are reached, whereas time and materials' contracts are
usually paid for monthly based on the hours worked and other fees associated with the work, like
travel and meals. As you monitor your budget, you'll want to be on top of cost control. Cost control
is a practice where a project manager identifies factors that might impact their budget and then
creates effective actions to minimize variances.

Play video starting at :1:48 and follow transcript1:48

Think of it this way: it's proactive budget management. It is much better to be proactive with your
budget than to be reactive with your budget. If you are reacting instead of anticipating, then you
may already have some kind of problem with the budget. In order to control costs, you should
establish a sign-off plan and inform the appropriate stakeholders of any changes that occur.

Play video starting at :2:11 and follow transcript2:11

You'll have to ask yourself which stakeholders or sponsor will be approving the contractor or vendor
time sheets. What about invoices? You'll also need to make sure any changes within the project
budget are agreed upon. For example, you shouldn't approve a new cost or item if it hasn't been
agreed upon or if it isn't within the scope, and you shouldn't be spending money if it's not pre-
approved by your stakeholder or project sponsor.

Play video starting at :2:36 and follow transcript2:36

It is also important to make sure there's good business case before bringing it to the stakeholder.
You'll also need to manage changes as they're made. This involves updating forecasts or estimates
and tracking everything. You never want to be surprised by budget changes, and you don't want to
have to keep asking stakeholders for more money. You can prevent that by revisiting these numbers
on a regular basis. You'll also want to accept that budget misses will happen. It's your job to bring
the expected cost overruns within acceptable limits. Before the project starts, collaborate with the
project sponsors and key stakeholders to determine an acceptable limit. Is it 1%, 10%? You'll decide
together. In a previous video, we talked briefly about what happens when a project goes over or
under budget. Having a project go over budget may mean that the company will have less funds for
other areas within the business, so let's dig a little deeper into the effects on a company when a
project goes under budget. Even though it seems like going under budget would be a project
manager's dream, it actually isn't. If you go under budget, it's an indicator of less than satisfactory
project management. Going under budget indicates that you may not have done a good job at
initially estimating. Going under budget could also indicate that you could have spent more money
on the project, meaning that you could have possibly had extra resources or better quality output,
and it may mean that the budget for future projects will be slashed. The company may figure that
since you did this project under budget, you'll be able to do future projects under budget too, so
that's not a totally desirable situation to be in either. The best option is to adequately account for,
adapt, and manage your budget with that risk in mind. Later on, we'll cover other strategies more in
depth that you could use to save the company money and time. You will also learn the ins and outs
of identifying and managing risks a little later on in the course. In the next lesson, we'll learn about
procurement. See you in a bit.

When is a good time to review the project budget and identify if you need to make any
changes?

After the initiation phase

After you meet a milestone

After speaking with the project sponsor

After a retrospective
Correct
Milestones can act as checkpoints for budget management and payment.

Overcoming budgeting challenges

As you have learned, effective budgeting can set you up for success as a project manager.
This reading will discuss some of the most common budgeting challenges you may
encounter as a project manager and how to manage them.

Challenge 1: Budget pre-allocation

You may encounter situations where your budget is already set before you even start the
project. This is known as budget pre-allocation. Some organizations follow strict
budgeting cycles, which can lead to cost estimations taking place before the scope of the
project is completely defined.  

If you are given a pre-allocated budget, it is important to work with your customer to set
expectations on scope and deliverables within the allocated budget. To deliver a great
product within your allocated budget will require detailed planning.

A pre-allocated budget should also be routinely monitored to ensure the amounts you
have budgeted are sufficient to meet your costs. Be sure to carefully track all expenses in
your budget. Regularly match these expenses against your pre-allocated budget to ensure
you have sufficient funds for the remainder of your project.

Part of that planning includes making sure that you are tracking fixed and time- and
materials-based expenses. Fixed contracts are usually paid for when certain milestones
are reached. Time and materials contracts are usually paid for monthly, based on the
hours worked and other fees associated with the work, such as travel and meal expenses. 

Challenge 2: Inaccurately calculating TCO

Another budgeting pitfall you should try to avoid is underestimating the total cost of
ownership (TCO) for project resources. TCO takes into account multiple elements that
contribute to the cost of an item. It factors in the expenses associated with a product or
service over its lifetime, rather than just upfront costs. 

Let’s relate TCO to something more common, like owning a vehicle. Let’s say you buy a
vehicle for a certain price, but then you also pay for things related to the vehicle, such as
license fees, registration fees, and maintenance. If you add all of this up, you have your
TCO for that vehicle. So now that you know what your TCO is, you may consider those fees
before you buy your next vehicle. For example, you might opt for a vehicle with fewer
maintenance requirements than one that requires more frequent service, since you know
that will save you money overall. 

The same concept applies to budgeting on a project. If you have a service requirement for
a software technology that your team is using, for example, then it is important to budget
for the costs of maintenance for that service. Additional types of costs you may need to
account for when calculating TCO include warranties, supplies, required add-on costs,
and upgrade costs.
Challenge 3: Scope creep

Scope creep is when changes, growth, and other factors affect the project’s scope at any
point after the project begins. Scope creep causes additional work that wasn’t planned
for, so scope creep can also impact your budget. 

There are several factors that can lead to scope creep, such as: 

A vague Statement of Work (SoW)

Conversations and agreements about the project that aren’t officially documented
 Unattainable timeframes and deadlines
 Last-minute asks from priority stakeholders
Addressing these factors as you plan your project can help prevent scope creep from
impacting your budget.

Key takeaway

There can be many challenges to face when planning and managing a budget. Budget pre-
allocation, underestimating the TCO of project resources, and scope creep are some of the
most common. As you continue your career as a project manager, awareness of these
challenges can help you avoid and overcome them.

Activity: Develop a project budget

Total points 1

1.
Question 1

To pass this practice quiz, you must receive 100%, or 1 out of 1 point, by completing the activity below.
You can learn more about the graded and practice items in the Course Overview.

Activity Overview

In this activity, you will create a project budget to estimate the total cost for developing and
implementing an Operations and Training Plan. Be sure to complete this activity before moving on. The
next course item will provide you with a completed exemplar so you can compare your work. You will
not be able to access the exemplar until you have completed this activity.

Scenario

Review the scenario below. Then follow the step-by-step instructions.

As project manager for Office Green, your job includes working with the operations team to develop
and implement an Operations and Training plan for the Plant Pals service. In addition to identifying the
major milestones and associated tasks for this plan, you also need to estimate the costs and create a
budget.
You will use this budget as a baseline throughout the project, but you should monitor spending
throughout the project and make adjustments as needed.

The estimated costs of the milestones and their subtasks are as follows:

Milestone 1: Establish a plant delivery and logistics plan.

 Task 1: Purchase delivery trucks. Purchase two delivery trucks at a cost of $15,000 per truck.
 Task 2: Source packaging materials. Purchase 1,500 boxes at a cost of $2 per box. 
 Task 3: Pay delivery drivers. Pay two delivery drivers for ten days (assume eight-hour work
days) at a rate of $15 per hour.
Milestone 2: Select and install supply chain management software and equipment.

 Task 1: Source vendor (includes setup, installation, and deployment of software and
equipment systems): Fixed cost of $15,000.
Milestone 3: Develop and launch an employee training program.

 Task 1: Develop training sessions. Pay the HR specialist $50 per hour for ten days (assume
eight-hour workdays).
 Task 2: Train employees to use the software and equipment. Pay the Training Manager $25 per
hour for ten days (assume eight-hour workdays).
 Task 3: Monitor employee progress and improve training processes. Pay the Training Manager
$25 per hour for another ten days (assume eight-hour workdays).
Your estimated budget to reach these milestones is $62,000. This amount includes a reserve buffer of
$3,600 to account for unexpected costs. You should generally allow for a buffer of at least 5%.

Step-By-Step Instructions

Step 1: Access the template

To use the template for this course item, click the link below and select “Use Template.”

Link to template: Project budget

OR

If you don’t have a Google account, you can download the template directly from the attachment
below.

Activity Template_ Project budget

XLSX File

Step 2: Add milestones and tasks

Fill in the project milestones and tasks under Milestones & Tasks. Be sure to group each task with its
associated milestone. When you’re finished, your budget should include three milestones and seven
tasks. We’ve filled in the first milestone and task for you.

Step 3: List project employees

For each task associated with particular employees, enter the employee who should be paid for that
task under Employee Details. Some tasks may not have any associated employees, while others could
have two or more (e.g., two delivery drivers).

Note: Your spreadsheet should include the pay rates for hourly employees, like the delivery drivers. You
should only list salaried employees when they work extra hours on special projects included in the
scenario (e.g., the HR Specialist developing the training sessions).

Step 4: List employee hours and rates

Next, calculate the number of hours each employee will spend on each task. Enter this number under
Hours. Now list each employee’s hourly pay rate under Rate. Note that the spreadsheet calculates the
total cost for you.

Step 5: Enter material quantities and costs

Now review the scenario for any materials you need to purchase (e.g., trucks, boxes):

 For materials priced per unit, enter the amount needed under Units. Then record the cost per
unit under $/Unit. 
 For fixed-cost materials, record the price under Fixed Cost.
Pro Tip: Save the template
Finally, be sure to save a blank copy of the project budget template you used to complete this activity.
You can use it for further practice or in your own personal or professional projects. These templates will
be useful as you put together a portfolio of project management artifacts. You can use them to talk
through your thought processes as you demonstrate your experience to potential employers.

What to Include in Your Response

Be sure to address the following points in your completed budget:

 Three milestones and seven tasks

 Employees responsible for tasks
 Employee hours and pay rates
 Materials and costs
Test your knowledge: Creating a project budget
Total points 4

1.
Question 1

As a project manager setting a budget, you factor in unexpected costs that may arise during the
project. What budgeting strategy does this refer to?
1 / 1 point
Adding a buffer and reserves

Leveraging experts

Setting a baseline

Bottom-up approach
Correct

When budgeting for a project, you’ll want to leave room for costs that exceed estimations.
2.
Question 2

As a project manager, what three things should you do to control costs and reduce changes to the
budget? Select all that apply.
0.5 / 1 point

Establish a sign-off plan and inform stakeholders of any expense changes that occur.
Correct

You should get appropriate stakeholders to agree to any additional costs before they are incurred. You
should also manage changes as they are made and ensure the changes are within scope. 

Ensure budget changes are within scope.

Correct

You should ensure that any additional costs or changes to the budget are within the project
boundaries. You should also get stakeholder sign-off on any changes and manage changes as they are
made. 

Manage changes as they’re made.

Request stakeholder approval on additional costs only after they are incurred
This should not be selected

Getting approval from key stakeholders after additional costs have already been incurred isn’t effective
for controlling changes in costs. Rather, you should establish a sign-off plan and inform stakeholders of
any budget changes that occur. You should also manage changes as they are made and ensure changes
are within scope. 
3.
Question 3

As a project manager, what does going under budget on a project indicate about your approach to
budget management? Select all that apply.
1 / 1 point

That you effectively conserved funds and will likely receive larger budgets for future projects

That your initial estimates were inaccurate

Correct

Going under budget indicates that you may not have done a good job at initially estimating and that
you could have spent more money on the project. It also could result in your budget for future projects
being reduced.

That you could have spent more on the project to provide extra resources
Correct

Going under budget indicates that you could have spent more money on the project. For example, you
could have possibly had extra resources or better quality output. It may also mean that you did not do
a good job at initially estimating and that your budget for future projects could be slashed. 

That you accurately estimated the total cost of ownership (TCO) 

4.
Question 4

What budgeting challenge arises when changes or growth cause additional work the project manager
hadn’t planned for?
1 / 1 point

Inaccurate budget baseline

Inaccurately accounting for total costs

Budget pre-allocation

Scope creep
Correct

Scope creep is when changes, growth, and other factors affect the project’s scope at any point after the
project begins. Scope creep causes additional work that wasn’t planned for, so it can impact your
budget. 

Optional: Introduction to budgeting terms

Now that you have learned how to create a project budget, let’s discuss some of the
common terms you will use when you are estimating, tracking, and maintaining it. 
Cash flow

Cash flow is the inflow and outflow of cash on your project. As a project manager, this is
important to understand because you need funding (cash into your project) to keep your
project running. 

Cash that comes into your project allows you to maintain and compensate resources and
pay invoices for materials or outside services. In some cases, a project may start out with
all of the cash it will receive until the end. If this is the case, it is important to monitor your
outflow to ensure that you have enough funding to complete the project.

Monitoring cash flow allows you to have a reference point for your project’s health. For
example, if the cash flow coming into your project is lower than your outflow, you will
need to adjust your budget. Planning and tracking the cash flow for your project is a key
component of budget management.

CAPEX and OPEX

Organizations have a number of different types of expenses, from the wages they pay their
employees to the cost of materials for their products. These expenses can be organized
into different categories. Two of the most common are CAPEX (capital expenses) and
OPEX (operating expenses).

 CAPEX (capital expenses) are an organization's major, long-term, upfront

expenses, such as buildings, equipment, and vehicles. They are generally for assets
that the company will own and keep. The company incurs these expenses because
they believe they will create a benefit for the company in the future. 
 OPEX (operating expenses) are the short-term expenses that are required for the
day-to-day tasks involved in running the company, such as wages, rent, and
utilities. They are often recurring.  
You may need to account for both OPEX and CAPEX on your projects. For example, a major
software acquisition as part of an IT project could be treated by your organization as a
capital expense. The monthly wages paid to a contractor to help deploy the software
would be an operating expense. It’s a good idea to talk to your finance or accounting
department when you start working on your project budget to see how they determine
the difference between OPEX and CAPEX. This will guide you in properly allocating capital
and operating expenses for your projects.

Contingency reserves

Sometimes, a project hits a snag and incurs additional expenses. One way to prepare for
unplanned costs is by using contingency reserves. Contingency reserves are funds added
to the estimated project cost to cover identified risks. These are also referred to as
buffers.

To determine the amount of your contingency reserves, you will need to go through the
risk management process and identify the risks that are most likely to occur. We will go
into more detail on risk management later in the course, but it is important to understand
that risks to your project can have an impact on your budget.

Contingency reserves can also be used to cover areas where actual costs turn out to be
higher than estimated costs. For example, you may estimate a certain amount for labor
costs, but if a contracted worker on your team gets a raise, then the actual costs will be
higher than you estimated. 

Management reserves

While contingency reserves are used to cover the costs of identified risks, management
reserves are used to cover the costs of unidentified risks. For example, if you were
managing a construction project and a meteor hit your machinery, you could use
management reserves to cover the costs of the damage. 

Contingency reserves are an estimated amount, whereas management reserves are

generally a percentage of the total cost of the project. To determine a project’s
management reserves, you can estimate a percentage of the budget to set aside. This
estimate is typically between 5–10%, but the amount is based on the complexity of the
project. A project with a more complex scope may require higher management reserves.
Note that the project manager will generally need approval from the project sponsor in
order to use management reserves.

Introduction to procurement

Understanding procurement
In the past, we've compared project management to starting a new hobby.

Play video starting at ::6 and follow transcript0:06

Let's say you're trying to take up painting. In order to paint, you'll need to purchase, or in other
words, procure paint supplies and materials. So first, you ask yourself, what supplies will you need?
What kind of paint will you start with? Do you want to try oil paint, watercolor or acrylic?

Play video starting at ::27 and follow transcript0:27

Will you paint on canvas, wood, or paper? You need to research these choices before you procure
your materials. Once your research is done, you can start procuring materials, scheduling courses,
watching tutorials, and voila—you're on your way to becoming the next Frida Kahlo!

Play video starting at ::46 and follow transcript0:46

So as you may have guessed by now, procurement means obtaining all of the materials, services, and
supplies required to complete the project. You'll need to procure vendors as well. Vendors are
individuals or businesses who provide essential goods and services. Therefore, think of vendor
management as procurement for individuals or businesses.

Play video starting at :1:8 and follow transcript1:08

Vendor management covers the activities included in researching and sourcing vendors. Instead of
materials, vendor management is often a matter of sourcing for a specific service or talent and then
managing that relationship. Sourcing talent includes researching and obtaining estimated costs from
different partner companies you may use on a project. You'll typically use vendors when they
provide specialized skills that aren't available within your company. Vendor management entails
sourcing vendors, getting quotes for their work, deciphering which vendors will best fulfill your
needs, negotiating their contracts, setting deadlines for them, evaluating performance, and ensuring
payments are made. It also entails familiarizing yourself with regulations like the Americans with
Disabilities Act, if you're working in the US, for example. And if you were somewhere else, being
aware of similar regulations in that country. Keep in mind that not every project will require vendors
or contractors, and so every project won't require vendor management. Let's revisit the example of
contract workers in the context of Project Plant Pals at Office Green. Like many companies, Office
Green doesn't have a copywriting department, so for the launch of Project Plant Pals, you'll need to
use external resources to supply a contracted copywriter. This person is a necessary team member
on the project because Office Green doesn't have copywriters or internal employee resources
required to finish this task. This contractor or team of contractors will draft copy for the website for
a slated amount of time, and then their work on this particular project will be complete. Awesome.
Now that you know about procurement, in the next video, we'll discuss the different phases of the
procurement process and how procurement differs depending on your approach to project
management. See you

Question
What is the process of obtaining all the materials, services, and supplies a team needs to
complete a project?

Vendor management

Time and materials management

Vendor sourcing

Procurement
Correct
In addition to the materials, services, and supplies, a project manager also needs to
procure essential goods and services through vendors.
Question
Jerome, a program manager at a small, five-person nonprofit company, is responsible for
developing a financial literacy program for middle schools. While he has a lot of expertise
in financial literacy, he realizes that he needs to find an educator to partner with to help
him develop the curriculum.

Which of the following is the best option for Jerome to locate an external resource?

The nonprofit does not have any educators, so Jerome needs to look outside the
nonprofit. By looking outside of the nonprofit, he will find someone with the skill set he
needs to help create the program materials and educational course.

The nonprofit does not have any educators, so he will need to hire one. He puts up a job
posting to hire a new staff member.

The nonprofit does not have any educators, so he finds a college student who is studying
childhood education and gives them an internship to help create the curriculum.
Correct
External resources are people outside the company who can help with tasks, providing
complementary skills to those that exist inside the organization.

The procurement process

While not every single project will require procurement, it's important to be prepared for it if and
when procurement does come up. How do you get started? There are typically five steps that make
up the procurement process. Let's go over them. First is initiating, which is the planning process of
defining what help you may need outside of your current resources to hit the project goals. In this
step, you will also make a case for getting extra resources via the procurement process. Second is
selecting, which entails deciding what supplies you need and which vendors you'll go through. The
third step is contract writing, which is where the contracts are developed, reviewed, and signed. The
fourth step is control, which is when you make payments, set up logistics and requirements to
maintain quality, and ensure the service agreement is being met. The fifth and final step is
completing, which is where you measure the success of the procurement. That's a quick overview of
the procurement process. This high-level cycle of procurement will make more sense as we continue
on through this course. One thing to note is the procurement process can seem a little different
depending on the project management methodology. There are differences in procurement in the
context of Agile versus traditional. Agile procurement management is often more collaborative, with
both the project team and the end supplier than traditional approaches. There is a heavy emphasis
on the relationship between these parties. The whole project team plays a larger role in identifying
what needs to be procured. Rather than featuring contracts that are based on fixed deliverables,
Agile procurement management tends to have a living contract that can be adapted based on the
evaluation of the project. If you think of the word "agility," which means to move easily and quickly,
you'll be able to remember that Agile procurement can change more easily than traditional
procurement methods. In this process, the team reviews the project or deliverables on a reoccurring
basis and consistently addresses feedback. This way of working is important to communicate to your
suppliers so they understand this style of working and agree to maintain flexibility. Again, it is so
important to have a positive relationship with the procurement supplier. This is critical since the
contract may need to be renegotiated at multiple points during the project. On the other hand,
traditional procurement management tends to focus on standard contracts with clear terms and
deliverables. When it comes to traditional approaches, the project manager may be responsible for
end-to-end procurement instead of the entire team providing input. The contracts may feature
lengthy and extensive documentation that includes fixed requirements and comprehensive detail of
the services and deliverables. While this may appear more rigid, the benefit is you've outlined
clearer workstreams and deadlines. This way, you're much more protected from unforeseen
circumstances and may not have to pay for unpredictable changes. In traditional approaches, the
negotiation process can be a little bit trickier. You won't necessarily have the room to renegotiate
contracts if something changes, so you may have to start the whole process over again. That's why
being as detailed as possible and spending more time in the negotiation phase is incredibly
important in a more traditional project management approach. As you may have guessed,
procurement can become pretty complex, but there are some official documents that can help guide
you through the procurement process. In the next video, you'll learn more about those documents
and processes. See you there.

Tips for the procurement process

As you have learned, procurement means obtaining all of the materials, services, and
supplies required to complete the project. You have just learned about the procurement
process in project management. To recap, there are five steps in the typical procurement
process:

1. Initiating: planning what you need to meet your project goals

2. Selecting: deciding which supplies and vendors to use
3. Contract writing: developing, reviewing, and signing contracts
4. Controlling: making payments and maintaining and ensuring qua
5. Completing: measuring your success
During each step of the procurement process, there are some tips that can help you save
time and money while ensuring your project’s success. 

Tips for initiating 

While planning your project, figure out which materials, resources, and supplies you will
need to get the job done. During this step, you will decide which items will be internally
procured and which items will be externally outsourced. Once you’ve decided which items
you need to outsource, compare each of those items specifications, components, quality
measurements, standards, and characteristics with your project’s requirements. You may
find that some of the items have features you don’t need. If you can identify those
unnecessary features, you will know exactly what you want and don’t want in an item,
possibly reducing your total cost. 

Tips for selecting 

Now that you have outlined what you need for your project, you need to determine
vendors to source these items. Research and assess various vendors and suppliers, and try
to find out if your preferred vendors have a reputation for delivering quality work on time.
After you’ve identified your preferred vendors and suppliers, interview them to learn more
about their products and services. If possible, make site visits to see exactly how each
vendor runs their business in person. 
Tips for contract writing

Contract writing requires excellent attention to detail, so pay close attention to the
inclusions and exclusions in the vendor’s offer. There may be some items included in the
vendor’s price that you can provide in-house at low or no additional cost. For example, the
vendor’s offer may include charges for storing materials, using certain equipment, or
labor. These are all things that you may be able to provide from your organization’s
resources, so you can opt to save costs with the vendor on those items by using in-house
materials and resources. 

Sometimes, the vendor may write the contract. In this case, checking carefully for clarity
and accuracy ensures that you know exactly what you are getting from the vendor.
Whether the contract is written by you or by the vendor, you will almost always want to
consult with a legal and compliance team to ensure that everything in the contract is
ethical and legal.

Tips for controlling

The procurement process isn’t over when the contracts are signed. The next step is to
ensure that the work is being done according to the terms of the contract. You will need to
periodically review the performance and quality of each vendor. When communicating
with vendors, remain professional but firm to ensure that all project requirements are
being fulfilled and that all major milestones are being met on time and at cost. 

Building and maintaining a good relationship with your vendors benefits the team and the
overall project. This relationship will make it easier to make adjustments and contract
revisions if the need arises. Taking certain measures, like conducting regular check-in
meetings, will ensure that the work is being completed according to plan. 

Tips for completing

In the completing step of the procurement process, you will measure the success of your
procurements. Ask yourself:

 Were the materials created good quality? 

 Were there any issues with labor contracts? 
 How were your relationships with vendors? 
During this step, it is also important to document any lessons learned. It is likely that you
will be involved in another project similar to this one in the future. Take notes about how
the procurement process went so you can use this information on a future project. 

Key takeaways

Procurement is an ongoing process that can be repeated during the life cycle of a project.
You may initiate the procurement process several times over if you need additional
deliverables. To do so, you will likely evaluate your current vendors—or select new ones if
necessary. If you change vendors or contract terms, you will have to write new contracts.
It is important to periodically review the quality of each vendor during the controlling
phase and, once everything is finished, document the lessons you learned during the
completion phase. 

Common procurement documentation

There are a few important documents that help a project manager navigate through each phase of
procurement. For instance, in the initiating phase, a project manager will create a nondisclosure
agreement, otherwise known as an NDA. In the selecting phase, a project manager creates a request
for proposal, or an RFP. In the contracting phase, a statement of work or an SOW is created. Now
let's learn more about these acronyms and documents. The first important document is a
nondisclosure agreement, also known as an NDA. NDA is a standard within a lot of companies, and
it's best practice to ask external contract workers to sign an NDA. The purpose of an NDA is to keep
confidential information within the organization. So for instance, if a company is using some kind of
proprietary technology on a project or preparing for a sensitive product launch, they want to ensure
that any conversations or information surrounding that technology doesn't leak out to competitors
or to the public before the company is ready to launch. For example, in Project Plant Pals, vendors
might be required to sign an NDA because the project is new to market and hasn't been made public
yet. Then we have a request for proposal or an RFP, a document that outlines the details and
requirements of an organization's project to be passed on to vendors. RFPs are used to solicit bids
from vendors so that you can then select which vendor might be the best for your project. An RFP is
widely used within different departments in a company and across various industries. An RFP
typically includes an overview of the project, the desired outcomes, and goals, budget, deadlines,
milestones, and contact information so each vendor can get back to you with a detailed proposal of
how they plan to tackle the job. When creating an RFP, make sure to add the following headers to
your document. The overview. Treat this section like a general summary. What is the purpose of this
project? What problems will it solve? What new doors will it open for the company? Your goals.
What are some measurable results you can aim to achieve throughout the process? Next is the
scope of work. What are the specifics of the project? How are you going to achieve those goals and
make sure the project launches successfully? Then include milestones. Make sure to highlight the
key milestones your project will include. Lastly, include submission requirements, like, "Please
submit the RFP as a presentation and include three prototypes," as well as the questions you'd like
the vendor to answer as part of the process. This helps you properly assess potential vendors. For
instance, you might want to know what issues a contractor sees up front or how the costs will break
down. After the RFP is sent out, various vendors will review it, and if they feel they can fulfill your
project's needs, they'll provide a proposal. For example, you may create an RFP for Project Plant Pals
to source plant providers. In this case, you want to send out RFPs to all possible plant providers to
ensure that you're getting the best price, quality, and overall value. You may hear RFP being used as
a verb, as in, "Has this been RFP'd yet?" That's really a way of asking if an RFP has been sent out to
vendors yet. It's important to note that both the NDA and the RFP are fixed and remain the same
throughout the process. This means that there's not a lot of room for customization, and it won't be
changed once it's submitted. Lastly, there's a third important document called a Statement of Work,
or an SOW. An SOW is sent after the vendor is selected and evolves as the project goes on. We'll
continue discussing these concepts and further explore the importance of a statement of work in the
next video. I'll see you there.
Creating a Statement of Work
Let's continue learning about the necessary documents required for successful project. After you've
sent a request for proposal to clients and you've selected the vendor, client, or contractor you want
to work with, you will also send them an SoW or Statement of Work. A statement of work is a
document that clearly lays out the products and services a vendor or contractor will provide for the
organization. An SoW also provides a description of the contractor's needs and requirements to
properly perform the agreed-upon services. Although the SoW covers the customer's needs, it's
equally as important to include the organization's needs and the vendor's needs too. It's critical that
all parties involved understand what is expected from each of them in order to deliver the best
possible products or services. The project manager is tasked with developing the SoW but often asks
for input from subject matter experts or SMEs for technical expertise that the project manager may
not have. Your organization's legal advisors will review this document with you and may even be
crafting it alongside you. Let's discuss how to create an SoW in the example of Project Plant Pals.
You'll want to start by including page headers with your company name, project, and creation date
on them. At the top of the page, make sure to include important stakeholders like yourself as the
project manager and the name of the sponsor, which in this case is the Director of Product. Next,
you'll construct a table for revisions. The SoW will likely go through a few rounds of revisions
because several stakeholders may review it and suggest changes. You'll detail those changes in this
box here. Next, you'll create a purpose section where you will go into detail about exactly what the
desired outcomes are. Make sure to include a section regarding your target audience and make sure
it's inclusive of everyone. For instance, in this case, the purpose of the project is to launch a new
service that provides desk plants to offices and commercial businesses. If you have more specific
goals, you can list them here too. Next is the scope section, where you will include what the service
entails. You may write that the service includes providing customers with small, low-maintenance
plants that they can place on their desks. Customers can order plants online or from a print catalog.
Office Green will ship the plants to the customer's work address. The types of plants in scope
includes six-inch leafy ferns, small cacti, and five-inch bonsai trees. Keeping this vendor in mind,
some major activities may be: storing the plants in a warehouse, maintaining the health of the plants
by providing them with water and light, sourcing the vases and ensuring that the vases are in near-
perfect condition upon delivery. You will also want to mention what's out-of-scope, or in other
words, what the project doesn't include. This will eliminate any potential room for confusion and
help set expectations with the vendor. For instance, you may write that the project doesn't include
annual reporting or custom plant orders that are not mentioned in the scope. This helps draw clear
lines and sets the right expectations with the vendor. For deliverables, you'll want a concise
statement about what your project will deliver. For example, your Office Green project deliverables
could include the vendor providing maintenance guides on how to take care of the plants or that the
vendor will be responsible for developing a support page on Office Green's website to address any
questions or concerns. Since milestones are such an integral part of tracking progress, budget, and
scope, they'll need to be included here too. Examples of milestones in Project Plant Pals could be: to
fulfill the first quarter of plant orders, deliver to all of the top customers, launch customer
satisfaction surveys, collect and report on any insights from customer feedback. You'll want to make
it really clear on how many hours are needed for the completion of this project here, and you will
want to designate a particular date that you need their services performed by here. At the bottom,
you'll typically add terms and conditions and any other disclaimers. It's good to have a disclaimer
stating that revisions may take place as the project goes on. This is important to include just in case
the scope changes because of unforeseen issues. It's a good idea to add revisions into the disclaimer
because as project manager, it's best not to over-promise and under-deliver. You always want to be
clear that you intend to stick to the schedule unless circumstances outside of your control intervene.
Another part of your SoW is payment terms. This outlines when your suppliers need to be paid.
Ensuring that supplies are paid on time will promote strong relationships. Generally, good
procurement practice would be to pay your vendors and contractors upon delivery of goods and
service, not before, unless a circumstantial agreement has been made. For instance, if Office Green's
plant provider requested to be paid when each milestone was completed instead of after the entire
project is finished. Great job. Now you know more about SoWs. Next up, we'll discuss the
importance of partnering with your legal team during the procurement process. See you there.

Test your knowledge: Introduction to procurement

Total points 4

1.
Question 1

As a project manager, you’re interested in working with vendors in a way that is collaborative and
places an emphasis on relationships. What procurement management process should you choose?
1 / 1 point

Historical

Agile

Flexible

Traditional
Correct

Agile procurement management is more collaborative with both the project team and the end supplier
than traditional approaches. There is a heavy emphasis on the relationship between these parties.
2.
Question 2

As a project manager, you host weekly meetings to periodically review vendor performance and work
quality. Which procurement process step does this represent?
1 / 1 point

Completing

Controlling

Selecting
Initiating
Correct

During this step, you will periodically check on vendor work to ensure it meets the terms of the
contract.
3.
Question 3

As a project manager selecting a vendor, you first need to outline the details and requirements of your
project in order to solicit bids. Which procurement document helps with this task?
1 / 1 point

A request for proposal (RFP)

A non-disclosure agreement (NDA)

A work breakdown structure (WBS)

A Statement of Work (SOW)

Correct

An RFP is a document you use to solicit bids from vendors. Once you receive several bids, you can
choose the best vendor for your project.
4.
Question 4

As a project manager creating a statement of work (SOW), who do you ask for input and technical
knowledge?
1 / 1 point

Subject matter expert (SME)

Vendors

Project sponsor

Key stakeholders
Correct

An SME is someone at your organization who has necessary experience and technical expertise that
applies to the project.
Activity: Complete a Statement of Work (SoW)
Total points 1
1.
Question 1

To pass this practice quiz, you must receive 100%, or 1 out of 1 point, by completing the activity below.
You can learn more about the graded and practice items in the Course Overview.

Activity Overview

In this activity, you will apply what you have learned about procurement value to complete a
Statement of Work (SoW). An SoW is a document that lays out the products and services a vendor or
contractor will provide for the organization. It also describes what the contractor needs to perform the
agreed-upon services. Be sure to complete this activity before moving on. The next course item will
provide you with a completed exemplar to compare to your own work. You will not be able to access
the exemplar until you have completed this activity.

Scenario

Review the scenario below. Then follow the step-by-step instructions.

As part of the Plant Pals Operations and Training plan, you selected a vendor to install supply chain
management software and equipment. In order to ensure the vendor can successfully set up the proper
systems, you need to prepare a Statement of Work (SoW). 

For this engagement, the SoW should contain the following elements:

 The vendor will configure inventory and fulfillment tracking software for the Office Green team.
This includes auditing existing Office Green software and developing optimizations.
 The vendor will also install the new software on all Office Green devices and equipment
(laptops, mobile devices, and hard drives).
 The vendor will install fulfillment equipment in Office Green’s warehouses.
 The vendor will create training manuals and a maintenance guide for the software and
equipment.
 The vendor will meet with the Training Manager and the HR Specialist to explain the training
manuals and answer questions. 
 The vendor should complete all tasks within two weeks (10 business days).
 The vendor is not responsible for training other employees or ongoing maintenance.
 Office Green will pay the vendor once they have completed all of the work.

Step-By-Step Instructions

Step 1: Access the template

To use the exemplar for this course item, click the link below and select “Use Template.”

Note: This template is an example intended to be used only for this exercise. It should not be relied on
as a legal document.
Link to template: Statement of Work (SoW)

OR

If you don’t have a Google account, you can download the template directly from the attachment
below.

Activity Template_ Statement of Work (SoW)

DOCX File

Step 2: Title the document

First, write the project name in the page header and under the Office Green logo.

Step 3: Add important stakeholders

Record important stakeholders for the project under the project name. In this case, that includes the
project lead (that’s you, the project manager) and the project sponsor (the Director of Product).

Note: You won’t fill in the Revision History until you’ve drafted the SoW and shared it with stakeholders.
This is where you will log changes to the SoW, so don’t forget to include it.

Step 4: State the purpose

In the Purpose section, write a sentence or two explaining the desired outcomes for the SoW. Try to be
as specific as possible about your goals for working with the vendor and how they relate to the larger
aims of the Plant Pals project.

Step 5: Define the scope

Next, define the project scope. Enter the major activities the vendor will complete into the Scope
section.

Step 6: Define out-of-scope activities

Record activities that are beyond the contract’s scope in the Out-of-scope activities section. Defining
what's out-of-scope sets expectations and minimizes potential confusion.

Step 7: Define deliverables

Describe the tangible and intangible outcomes of the vendor’s work in the Deliverables section. Make
sure to be specific and consider the overall goals of the Plant Pals project.

Step 8: Add milestones

Consider the scenario carefully and break down the vendor’s work into at least three milestones. The
milestones should define the major benchmarks the vendor must reach to complete the work. They are
essential to tracking progress and should align with the in-scope activities. Write them in the
Milestones section of the SoW.

Step 9: Estimate time to completion

Use the scenario above to estimate the approximate number of hours the work should take. Assume
eight-hour work days and five-day work weeks.

For example, an assignment that lasts for 20 business days should take 160 hours to complete. Enter
the number in the Estimated hours for completion section.

Step 10: Identify a due date

Select a date by which the vendor must complete all of the work. Calculate this date using the start
date listed in the SoW header (April 12). 

Step 11: Set payment terms

It’s important for all parties to agree when the vendor will be paid for their work. Record the terms from
the scenario in the Payment Terms section.

What to Include in Your Response

Be sure to include the following elements in your completed Statement of Work (SOW):

 A purpose statement for the SoW

 A list of in-scope items
 A list of out-of-scope items
 Expected deliverables
 Major milestones
 The estimated hours needed for completion
 An estimated date of completion

Navigating procurement challenges

Obtaining procurement support

Now that you have a better understanding about NDAs, RFPs and SOWs, let's discuss how you can
get support from other departments and team members as procurement goes forward. The
procurement process doesn't end after you've selected vendors and signed contracts. You'll use
performance trackers and meetings like quarterly business reviews to track and evaluate overall
performance to ensure that both parties are living up to their initial agreement, and when there are
contracts and paperwork with terminology that you may not be familiar with, you will enlist the help
of a legal team. Depending on the company size, the legal situation may vary. Some companies
(usually well-established and larger businesses) will have a legal team. Some businesses may
outsource their legal team. Some startups or smaller companies may not have a legal team, but they
might reach out to legal advisors as needed. Again, this all depends on the company where you
work. Laws surrounding manufacturing products and consumerism will vary from country to country,
Play video starting at :1:8 and follow transcript1:08

but there will nearly always be laws in place that you'll need to follow around topics like fair and
ethical trade. Most companies have a mission or value statement. Sometimes, a team of people in
the ethics and compliance departments are tasked with ensuring that the day to day operations are
adhering to their value statement and governmental policies. These team members will also be
tasked with duties like working to prevent discrimination and making sure that the company is
practicing adequate corporate social responsibility. Also, as a project manager, you need to ensure
that the various stakeholders who are representing the business are adhering to these policies and
processes too.

Play video starting at :1:49 and follow transcript1:49

You'll all need to be aware of any pertinent meetings regarding legal or compliance issues, and you
as a project manager will have to remind the team about when those meetings are being held.
Looping in the appropriate stakeholders is especially critical if there's some kind of necessary
approval since it'll have an impact on the project one way or another. Like most projects for Project
Plant Pals, looping in legal and compliance for review and approvals is really important. For instance,
let's say some of the offices where you're delivering plants are pet-friendly. In your contract with the
supplier, you've specified that you want to offer non-toxic plants only. Unfortunately, the supplier
provided a plant with leaves that are harmful to animals. Office Green could potentially be liable and
in legal trouble because this critical detail was missed. Pretty crucial consideration, right? So,
regardless of your future company's legal team or advisory, having contracts reviewed in some
capacity makes good business sense and should be a priority for you as a project manager. Now
you're on your way to becoming your own lawyer. Only kidding! But you hopefully have a better
grasp of the importance of your legal team and having them review your contracts. Next up, we'll
discuss the importance of checking in with your vendors, and we'll find out what compliance has to
do with the procurement process. We'll see you soon.

Ethics in the procurement process

Welcome back. We've learned a bit about the ins and outs of contracting with vendors, so let's learn
more about the importance of ethics when partnering with vendors. Failing to be mindful when
choosing vendors can lead to significant consequences. If you've seen a company in the news that's
been entangled in a scandal, that usually means that the team probably should have done more
research in the procurement process. What does that entail? There's a lot that can be done to
ensure that businesses are operating in an ethical way. Project managers have a big job when
deciphering whether or not every aspect of their project is sourced ethically. It helps if the project
manager thoroughly oversees the project to make sure the safety, economic, and environmental
ethical risks are mitigated; in other words, doing a lot of research. Monitoring and evaluating
throughout the project is a project manager's job. There are a couple of steps to safeguard ethical
procurement. The first is knowing your business' legal requirements. You'll want to have a deep
understanding of what is required of you legally as a project manager for your business. You can also
seek out the code of ethics for your profession, which in this case is for project managers. For
instance, the Project Management Institute, also known as PMI, has a code of ethics that you can
access as a member or credential holder. This will help you understand some parameters for how to
assess ethical versus unethical procurement. According to the PMI's Code of Ethics, honesty,
responsibility, respect, and fairness are the values that drive ethical conduct for the project
management profession. When you become a project manager, if you aren't totally sure if
something is ethical, first try to use your best judgment based on what you believe those words
mean, and continue to do the required research. If you still aren't sure, don't hesitate to ask a
subject matter expert, such as someone from the legal team. As a starting point, some unethical
issues or risks you may run into may include bribery or corruption. Some regulations in other
countries may not be the same as regulations in your country. For example, you'll want to make sure
laborers involved in production are treated fairly, working in good conditions, and are compensated
adequately for their work. It is a good idea to consult your legal team to ensure that you don't run
into these situations and to be aware of the regulations surrounding your processes. You will also
want to be aware of possible issues with sole-supplier sourcing. In some scenarios, you may need to
perform non-competitive procurement, which is when a company restricts the bidding process to
one supplier. This may be common for companies who are more cautious about exposing trade
secrets. But regardless of your reasoning, you will need to be able to justify exactly why you are
choosing to restrict bidding to one supplier. There's also interaction with state-owned entities. You'll
want to be vigilant when dealing with government agencies and officials. Government agencies may
have tighter restrictions and regulations in regard to sourcing, and you don't want to do anything
unethical without even knowing it. A project manager monitors the project's ethics throughout the
whole process. In the initiating phase, you'll need to decide whether the project is ethical in the first
place. Does it meet your business' Code of Ethics? Does the project meet environmental ethics laid
out by governmental agencies? Is the labor going to be ethically sourced? You'll need to review
government regulations and policies, assess potential risks, and put together a diverse team that you
trust to be ethical. Before the contracts are signed, you'll want to figure out whether the suppliers
you're thinking of hiring are ethical. You'll want to make sure that you're procuring them in an
ethical way and are paying them a fair rate. You'll also want to completely understand the supply
chain if there is one. After the contracts have been signed by your contractors, make sure to carry
out your assurance duties. This may include things like auditing each task and cost, executing quality
control, or even approving invoices. During the production of your service or product, focus on the
day-to-day relationships with vendors to make sure they're aware of and meeting your deliverables
and keeping you informed of any potential road blocks. After you've done all the research that you
possibly can on whether your project is ethical, remember to trust yourself. If something feels
wrong, it probably is. As you know, there's a lot to keep track of as a project manager. By keeping
these ethical principles in mind as you begin your project, you will save yourself and the company
from a lot of headaches later on. Of course, you can usually go to your legal team or key
stakeholders if you ever have a question or need a second opinion. In the next video, we're going to
review and wrap up everything we've just covered. I'll see you there.

1.
Question 1

As a project manager, you are about to hire a new vendor; however, there are terms in the contract you
are unfamiliar with. Who should you contact to better understand the contract?
1 / 1 point

A member of the legal team

Vendor consultant
A subject matter expert (SME)

Another project manager

Correct

Depending on the size of the company you’re working for, there may be an in-house legal team, an
outsourced legal team, or other legal advisors.
2.
Question 2

Which of the following should a project manager do to ensure an ethical procurement?

1 / 1 point

Speak to the press if they inquire about product sourcing methods.

Make sure that various stakeholders adhere to governmental policies and adequate corporate social
responsibility.

Alter vendor contracts based upon what you believe is most ethical for the company.

Work with government officials as long as they seem trustworthy.

Correct

You’ll want to involve the appropriate stakeholders if you need their decision on a tricky ethical
decision. You should also know your company’s business requirements, seek out the code of ethics for
your profession, and if necessary, consult with an SME.
3.
Question 3

What are some potential ethical risks project managers need to be aware of? Select all that apply.
1 / 1 point

Sole-supplier sourcing
Correct

Sole-sourcing keeps outside vendors from bidding on a project. Project managers should also be aware
of the risks of bribery or corruption and inappropriate interaction with state-owned entities.

Bribery or corruption
Correct

One form of corruption is when a vendor seeks to reduce the competition for a contract during the bid
through bribery or other means. Sole-supplier sourcing and inappropriate interaction with state-
owned entities are some other ethical traps to avoid.
Interaction with state owned entities
Correct

Any relationship with a government that is based upon inappropriate relationships that limit
competition is unethical. Project managers should also be careful to avoid ethical traps like bribery,
corruption, or sole-supplier sourcing.

Fraudulent checks
4.
Question 4

Once you sign a contract with a vendor, you audit each task, execute quality control, and approve
invoices. These are examples of what project manager duty?
1 / 1 point

Mentoring

Assurance

Relationship building

Trust-building
Correct

As a project manager, you’ll want to frequently review the work delivered by your vendors.

Avoiding ethical traps in procurement

Now that you have learned about the importance of ethics when conducting
procurements, let’s talk about some potential ethical traps you might face and how to
navigate them. 

Understanding ethical traps 

An ethical trap is an ethical dilemma that causes us to make a certain decision without
regard for our ethical principles. You may face ethical traps throughout the course of a
project. However, ethics can be of particular concern when it comes to procurement. As
you have learned, project managers must take precautions to ensure that they and their
suppliers are following ethical principles during the procurement process. 

Common ethical traps

Sometimes, potential ethical issues can be overlooked or can be considered the necessary
cost of doing business. This is a dangerous line of thinking since these types of
assumptions can put your project, company, and career at risk. To review what we
discussed in the video, a few of the most common ethical traps that exist when
conducting procurements are corruption and bribery, sole-supplier sourcing, and
interactions with state-owned agencies.

Corruption and bribery   

You may be confronted with different types of corruption when going through the
procurement process. One form of corruption is when a vendor seeks to reduce the
competition for a contract during the bidding process. A company may attempt to bribe
members within the organization to sway their decision into a favorable outcome for the
vendor. Bribes may include things like money, gifts, tickets to events, and more. Another
type of corruption scheme is to offer a certain percentage of an awarded contract—also
known as a kickback—to an official who can ensure that their company wins the bid.

Sole-supplier sourcing   

In some situations, having a vendor who a company is already familiar with smooths the
procurement process and works well for both parties. Ethical issues arise when other
vendors aren’t even allowed to bid for contracts for which they are similarly qualified.
With sole-supplier sourcing, vendors may reach out to buyers before a bid is even
requested. When the buyer’s organization decides to work with that vendor based on their
previously-established relationship, that limits competition before the bidding has even
begun. When this happens, companies and the public miss out on the advantages of
competition, such as reasonable pricing, product quality standards, or speedy delivery
options. 

Interactions with state-owned entities

There are some instances in which government agencies require an organization to

adhere to stricter ethical standards than they might have otherwise. Most government
regulatory agencies exist because a company or an entire industry has ranked profits over
their workers or the environment. Governmental agencies such as the Food and Drug
Administration and The Occupational Safety and Health Administration, for example,
keep businesses within legal and ethical standards. If you are unfamiliar with any
governmental restrictions that may affect your industry, organization, or project, you
could unintentionally fall into an ethical trap.

Avoiding ethical traps   

Here are some guidelines that will help you avoid falling into ethical traps when it comes
to procurement:
Understand the legal requirements for your procurements.

Every country has regulations to adhere to when conducting business in that country. Be
sure to research the legal and ethical requirements based on your project and
procurement needs, and if your organization has a legal team, make sure to lean on them
for support and advice.

Stick to your ethical codes.

Honesty, responsibility, respect, and fairness are the values that underpin ethical behavior
in the project management profession. The Project Management Institute’s (PMI) code of
ethics provides detailed guidelines to help ensure you maintain ethical conduct in your
projects. 

Test your ethics.

When you face an ethical dilemma, ask yourself questions in each of the following
categories:

 Shame: Would you be ashamed if someone knew what you did?

 Community: Would you want your friends to know the decision you made? 
 Legal: Would you face legal action if you took this action? 
 Situation: Would your actions be justified in this situation?
 Consequence: Would a negative outcome be worth your actions? 

Key takeaway

Making a decision when facing an ethical dilemma can be challenging. But learning the
legal requirements for your procurements, sticking to a professional code of ethics, and
testing yourself on the ethics of your decision making can help you avoid ethical traps and
conduct your procurements honestly, responsibly, and fairly.  

Reflection: Procurement ethics

Total points 2

1.
Question 1

In this exercise you will read a scenario about ethical procurement, and then reflect upon how you’d
avoid any potential ethical traps. Are you ready?
1 / 1 point

I’m ready!
Correct

Great! Now, compare your answers to the feedback below.

2.
Question 2

As a project manager, you’re sourcing a new vendor. The vendor is located in a country that has a
history of corruption in your industry. You’ve had a great initial discussion with the vendor and you
don’t want to discriminate against it just because of the government’s and other companies’ history of
unethical practices. In 2-3 sentences, describe the steps you should take to avoid any potential ethical
traps.
1 / 1 point

I will propose Anti-bribery and ethical codes with in my organisation that will impose to all
vendors and patterners with organization to avoid any corruption and remain stick to ethical
codes. Make sure bidding for contracts must be fair to avoid Sole-supplier sourcing. As a project
manager i will concern a legal team within organization if available otherwise external legal team
Understand the legal requirements for your procurements.

Correct

Did you consider these strategies?

Seek to understand the legal requirements of your procurements

For the vendor you’re hiring, are you following its country’s regulations? Confirm the regulations with
your legal team or outside counsel.

Stick to your ethical codes

Consider the Project Management Institute's (PMI) code of ethics. Be responsible and respectful to your
buyers, customers, and the public at large. Practice fairness and honesty.

Test your ethics

Ask yourself the following questions: Would you be ashamed if someone knew what you did? Would
you want your friends to know the decision you made? Could you face legal action? Would your action
be justified depending on the situation? Would a negative outcome be worth your actions?

Weekly Challenge 3
Total points 10

1.
Question 1

As a project manager, you review your budget and notice one vendor is costing more than anticipated.
You shift funds and recalibrate the budget to offset this increased vendor cost. What is the budgeting
term for this task?
1 point

Reserve analysis

Contingency budgeting
Setting the baseline

Reforecasting
2.
Question 2

Which of the following is an example of using historical data to develop your project budget?
1 point

Thinking about all the parts of your project from the beginning to the end and adding the costs
together

Getting quotes from potential vendors

Reviewing past projects that are similar to yours to get an idea of what your budget could entail

Reaching out to project managers who worked on past projects at the company
3.
Question 3

As a project manager creating a budget, you proactively identify factors that may impact expenses. You
then take action to minimize the budgetary impact of these factors. What is this task called?
1 point

Baselining the budget

Bottom-up approach

Cost control

Estimating cost
4.
Question 4

As a project manager, you research and source for a specific service. You then have to manage that
relationship. This is known as what type of procurement?
1 point

Performance management
Vendor management

Budget management

Cost management
5.
Question 5

A document that keeps confidential information within the organization is known as what?
1 point

Scope of work (SoW)

Statement of work (SoW)

Request for proposal (RFP)

Non-disclosure agreement (NDA)

6.
Question 6

Which of the following justifies sole-supplier sourcing?

1 point

The company is cautious about exposing trade secrets.

The supplier is easy to work with and offers a discount.

The project sponsor asks to only use one particular supplier.

The supplier provided material for the past three projects.

7.
Question 7

Fill in the blank: A project manager needs to alter their budget after making changes to the project
schedule and costs. This is necessary in order to _____.
1 point
re-baseline the budget to track project progress of costs

baseline the budget to track project progress of costs

re-baseline the budget to track project progress of tasks

baseline the budget to track project progress of reserves

8.
Question 8

At what phase in the procurement process would a project manager review a vendor’s performance
and determine if they are meeting milestones?
1 point

Completing

Controlling

Selecting

Investigating
9.
Question 9

When budgeting a project, you should consider additional expenses such as warranties, supplies, add-
ons, and upgrades. Which budgeting term refers to this concept?
1 point

Top-down approach

Baseline your project

Total cost of ownership

Bottom-up approach
10.
Question 10
Fill in the blank: Typically, a project manager organizes a budget by _____. Then, the project manager
lists tasks alongside each task’s associated costs.
1 point

tools

milestones

teammates

dependencies

Understanding risk management

Introduction: Managing risks effectively

Welcome back. Earlier, we covered managing costs and a project budget. We discussed what the
components of a project budget are, how the budget process works, and how to track and estimate
a budget. You also learned about the procurement process. Coming up, we will discuss risk
management and why it's important to help prevent project failure. Knowing how to anticipate and
alleviate, (commonly known as mitigate) the potential problems is your best bet for keeping a
project on track. You will learn how to define and relate risk management concepts and explain how
risk management can help protect your project from failing. You'll also identify risk types and how to
measure their impact on a project and communicate and resolve identified risks using a mitigation
plan. Ready to get started? Great. Meet me in the next video.

The importance of risk management

Think about a time in your life when you managed a project. Maybe it was a professional project, like
creating an employee schedule, or a personal project, like planning a family celebration. Now ask
yourself this: Did everything go according to plan? If I had to guess, I would bet there was at least
one hurdle you had to deal with. That's because no project goes 100 percent according to plan, even
when they're run by the most experienced project managers. Maybe you planned that employee
schedule perfectly, and then someone caught a cold, forcing you to rearrange the schedule at the
last minute. Or maybe just as family members started arriving for that celebration, you realized you
forgot to buy ice to keep the drinks cold. Hey, these things happen. As we told you earlier, flexibility
is an important skill for managing projects. Due to the nature of the project and really life in general,
it's also important that you identify and plan for risks that could impact your project. Let's discuss
what a risk actually is. A risk is a potential event which can occur and can impact your project. When
you think about risk in the context of project management, you will think about them as
hypothetical. In other words, these aren't events that will definitely happen, but because there's a
possibility that they could happen, it's your responsibility as the project manager to identify and plan
for those risks. Next, let's discuss issues. An issue is a known or real problem that can affect the
ability to complete a task. What's the difference between a risk and an issue? Think of it like this: a
risk is an event that could potentially happen. If the event actually happens, then the risk becomes
an issue. In other words, risks are the big what-ifs and issues are things that currently impact a
project. It is clear that risks and issues can pose a threat to your project. How you manage those risks
is known as risk management. Risk management is the process of identifying and evaluating
potential risks and issues that could impact a project. It's not a one-time exercise; it's something that
you'll need to do regularly to address potential risks. Risk management is a crucial part of the
planning process by giving you an understanding of what could go wrong with your project. It also
tells you who you need to consult about the risk. It helps you determine how the potential risk could
be mitigated. This way, if or when something goes wrong, you'll have a plan prepared and ready to
go. Part of being proactive and planning ahead is identifying potential risks and how to solve for
them. This way, you'll set up your project with better chances for success. Failing to engage in
meaningful risk management can have a few big consequences for your project. First, if you don't
plan ahead, you may put your project at risk of not meeting its project goal, its timelines, or success
criteria. For example, if your goal is to publish a research report and your research analyst quits
halfway through the project, you will likely miss the deadline if you don't have a backup plan ready
to go. Additionally, by failing to plan for risks, you also fail to think through the many different ways
that your project could pivot and still meet its goals. Even if an issue does arise, there often isn't just
one way to meet your project goals and success can come in many forms. Risk management helps
you determine how flexible or rigid your plan is and then make necessary adjustments. For example,
if your project requires a large product shipment, having a backup supplier ready means you could
quickly pivot if a main supply is unable to fulfill your order. Finally, risks can affect projects in a
variety of ways that are difficult to foresee. For example, a supplier you've hired may not have
adequate stock to cover your purchasing needs, or the budget for your project could be cut
unexpectedly. The risk management process helps reduce the impact of unexpected events, freeing
up resources to focus on activities that benefit the project. Let's imagine risk management in the
context of Plant Pals at Office Green, which is a new service that will provide customers with small,
low-maintenance desk plants. One potential project risk is the possibility that the web page for the
new service won't be live in time for the launch. Another potential risk could be a fulfillment
shortage. What would you do if the plant supplier runs low on the cacti and ferns that you need? To
prepare for these potential risks, you will need to think about ways to mitigate these issues before
they happen, or how you will address these issues if they actually occur. Hopefully, these things
won't be a problem, but if they are, you'll be prepared. I also want to stress that issues will come up
throughout the project you did not or could not have planned for, and that's okay. When these
moments arise, it is important to keep calm, figure out the root cause of the problem, and come up
with a solution. Risk management is a really important topic for project managers to understand.
Identifying risks and issues prepares you for the unknown. It also positively impacts you as the
project manager because you'll feel more prepared, less stressed, and more confident in your
approach if an issue does occur. Up next, we will discuss ways that you can identify risks. I'll meet
you there.

Question
When planning for a project, what does risk management provide an understanding of?
Select all that apply.

Who to consult about risks

Correct
Risk management helps a project have a better chance of success. This is because risk
management informs project managers about what could go wrong with a project, how
project risks could be mitigated, and who to consult about each risk.
How project risks could be mitigated
Correct
Planning ahead is key to meeting project goals, and mitigating risk is a key part of
planning. By using risk management, project managers identify what could go wrong with
a project, how project risks could be mitigated, and who to consult about each risk.

When to share project deliverables

What could go wrong with the project

Correct
No project goes 100% according to plan, so if (or when) something goes wrong, it’s
important to have a plan. Risk management helps project managers identify what could
go wrong with a project, how project risks could be mitigated, and who to consult about
each risk.

Stanton: Managing my first project

[MUSIC] Hi, I'm Stanton, and I'm a program manager at YouTube. Thinking back to one of the first
projects I ever worked on, we were actually in charge of building this sports highlight app. But it
wasn't just an app, it was an iOS app, it was an Android app, it was a website. And I remember the
very first meeting I went to, I was just furiously taking down notes and trying to understand what the
heck was going on. And immediately after I thought: okay, this is my first project, I have to get all the
details right. I have to make sure we know every little thing that was going to happen. The launch
date needed to be perfect. We had to get all the bugs down to zero. I was just totally consumed with
getting everything right the first time. I think what I've realized since then is you're probably not
going to get your first project plan correct because there's just so many things that can change. You
might find a bug last minute before launch. Your client might come in and say they want different
requirements like, "The screen needs to be blue instead of red." And then you find out that it's not
really that easy to change from blue to red. If I could go back and tell myself what to do at that point
or what I could have done differently, I would have just told myself: don't worry so much—changes
happen. It's how you react and respond to those changes that's more important. I think one of the
best compliments I've gotten is, "Even throughout all this mess, you're cool, you're calm, and you're
collected." You think through what are the issues that have happened, how do we resolve them, and
you do your program management thing. You're not always going to have the right answer the very
first time; things can change at the last minute. If you're able to stay cool and calm, make sure you
understand everything else that's going on on the project. All these years have taught me that, you
can always reuse some things. You're always going to have to react to some things, but no matter
what, try to think proactively, try to figure out what those issues are going to be, and you'll be the
better for it.

Test your knowledge: Risk management

Total points 4
1.
Question 1

Define a risk as it relates to project management.

1 / 1 point

A risk is a measurement that estimates the impact of known problems.

A risk is a known problem that has already impacted a project.

A risk is a measurement that estimates the potential impact of events that could occur in the future.

A risk is an event that might occur and could impact a project in the future.
Correct

Risks are potential issues that may or may not occur. Project managers should prepare for them, just in
case. 
2.
Question 2

What is the difference between a risk and an issue in project management?

1 / 1 point

Risks and issues are both events that might happen in the future, but they could affect projects to
different degrees.

Risks and issues are both known problems, but they affect projects to different degrees.

A risk is a known problem; an issue is an event that might happen in the future

An issue is a known problem; a risk is an event that might happen in the future
Correct

Issues are problems that have already impacted a project, while risks are the potential problems that
could impact it in the future.
3.
Question 3

Fill in the blank: Risk management is the process of _____.

1 / 1 point

identifying and evaluating potential risks and issues that could impact a project
identifying and initiating projects that have a low potential for risk

identifying and mitigating risks and issues that are already impacting a project

identifying and avoiding projects that have a high potential for risk
Correct

Risk management can help project managers make sure that risks don’t turn into known problems.
4.
Question 4

Which of the following are true of risk management? Select all that apply.
1 / 1 point

It is a one-time exercise at the start of a project.

It reveals what could go wrong with a project.

Correct

Risk management can help project managers avoid delays by pinpointing potential issues. It can also
help you identify who you’ll need to consult about each risk and come up with a plan for how each
potential risk could be mitigated.

It helps identify who a project manager should consult about a potential risk.
Correct

Risk management can help improve communication between you and your stakeholders by informing
them about potential risks before they become known issues. It also helps you avoid delays by
pinpointing potential risks and determining how each potential risk could be mitigated.

It helps determine how to mitigate potential risks.

Correct

Risk management can be helpful in creating a backup plan if something goes wrong. It can also help
you avoid delays by pinpointing potential issues and determine who you’ll need to consult about each
risk.

Phases of risk management

In a previous video, you learned that risk management is the process of identifying and
evaluating potential risks and issues that could impact your project. Risk management is
an ongoing practice throughout the life cycle of your project. It typically involves some
variation of these five steps:
 1. Identify the risk.
2. Analyze the risk.
3. Evaluate the risk.
4. Treat the risk. 
5. Monitor and control the risk.

Let’s break these down:

1. Identify the risk. The first phase of the risk management process is to identify and
define potential project risks with your team. After all, you can only manage risks if you
know what they are. 

2. Analyze the risk. After identifying the risks, determine their likelihood and potential
impact to your project. Serious risks with a high probability of occurring pose the greatest
threat.

3. Evaluate the risk. Next, use the results of your risk analysis to determine which risks to
prioritize.

4. Treat the risk. During this phase, make a plan for how to treat and manage each risk.
You might choose to ignore minor risks, but serious risks need detailed mitigation plans.

5. Monitor and control the risk. Finally, assign team members to monitor, track, and
mitigate risks if the need arises.

In the upcoming videos and activities, you will learn about each of these phases in more
detail and use tools and templates to navigate the risk management process. 
Uncover opportunities using risk
management
When you think about risks, it is likely that you automatically think of potential negative
events. But when identifying risks, it is important to also consider the good things that
could happen, which are considered opportunities. An opportunity is a potential positive
outcome of a risk. It is important to recognize opportunities and to capitalize on them as
they appear so you can reach your project goals faster, more cheaply, or with less effort.
Some examples of opportunities include: 

 Completing a milestone ahead of schedule

 Discounted materials 
 Availability of additional resources (people, investments, equipment) 

How to recognize an opportunity

An opportunity is a potential positive outcome that may bring additional value to a

project. You can use the same tools and techniques that you use in risk management—
identify, analyze, evaluate, treat, and control—to add potential opportunities to your risk
management plan. You need to know what to do if things go wrong, but you should also
make plans to seize opportunities. By using techniques such as brainstorming and
drawing on project history or prior experience, you can identify potential opportunities
and outline how you will take advantage of them if they occur.

As a project manager, you should always be on the lookout for potential opportunities
when developing your risk management plan. Review the following article for further
information on using risk management strategies to identify and take advantage of
opportunities that may occur during your projects:  Effective strategies for exploiting
opportunities

1.
Question 1

Which three of the following scenarios represent possible opportunities that could arise from a risk?
1 / 1 point
Hiring a new supplier of an item required to complete a product shortly before the project closes

Adding two team members from another team to increase productivity and meet the project deadline
Correct

Adding team members could risk the productivity of the team in the short term as they are onboarded,
but long term the team should be able to complete more work.

Completing a milestone ahead of schedule

Correct

While completing tasks and milestones ahead of schedule could disrupt the timeline of the project, it
may free up team members to work on additional tasks. This is a positive outcome of a risk.

Adopting a new spreadsheet software to streamline and simplify tasks in the future
Correct

Learning a new software could be a risk if it initially slows down the team. However, if it benefits the
team long term, it is likely an opportunity.
2.
Question 2

Which of the following scenarios is an example of a project issue? Select all that apply.
1 / 1 point

Team members complete tasks early

Clients do not return the necessary paperwork on time

Correct

Submitting contracts to clients in the wrong format, for example, can lead to issues such as missed
deadlines or legal concerns.

Materials increase in price

Correct

Risks like market fluctuations can lead to project cost issues. 

Workers at a supplier’s production are currently in a labor strike

Correct

A strike at a supplier is an issue that could mean a delay in receiving necessary project materials.
3.
Question 3

Fill in the blank: The risk management process includes five steps: identify, analyze, evaluate, _____,
and monitor and control.
1 / 1 point

mitigate

accept

classify

treat
Correct

When a project manager treats a risk, they make plans for how to respond if the risk becomes an issue.
4.
Question 4

During which phase of the risk management life cycle do you use the information you have gained
about the likelihood and potential impact of risks to prioritize risks?
1 / 1 point

Monitor and control the risk. 

Evaluate the risk. 

Treat the risk. 

Identify the risk.

Analyze the risk. 

Correct

During this phase, you use the results of a risk analysis to determine which risks to prioritize.  

Tools to help identify risks

Hello, and welcome back. Hopefully, you're beginning to notice how important it is to plan for risks.
Even the simplest projects can carry some kind of risks. Remember, those risks shouldn't deter you
from pursuing the project's goals. The key is to be prepared. Let's discuss tools and techniques you
can use to identify risks, including brainstorming and risk assessment. Brainstorming is one of the
most effective techniques for identifying risks with the team because it allows groups to
spontaneously share ideas without judgment. As a project manager, you will be responsible for
bringing a group of people together to imagine potential risks. Have your RACI chart at the ready to
refer to when you decide who to invite to this meeting. Speaking from experience, the best team for
this task is a diverse one, which includes individuals from various roles, backgrounds, and
experiences. Diverse teams bring different perspectives, experiences, and skill sets, and this may
help you to identify risks that you may not have thought of on your own. For example, one member
of your team might have experience working on multiple projects, while another newer team
member, might bring a fresh perspective from their previous experience on other teams. A great
tool that you can use during brainstorming is called a cause-and-effect diagram, also sometimes
known as a fishbone diagram. Cause-and-effect diagrams show the possible causes of an event or
risk and are very useful at risk management. For example, in the diagram seen here, the effect listed
is a supplier missing its deadlines. This is a risk to your project. On the left, you'll brainstorm
potential causes that would lead to the effect, like poor delegation or a lack of tracking tools. In
other words, cause-and-effect diagrams can help identify all the ways that things could go wrong by
identifying a potential risk, known as the effect, and working backwards to consider the potential
causes of that risk. By categorizing and breaking them down into further causes, you are able to
identify areas that could lead to a potential problem, like exceeding your budget or allowing scope
creep to impact your timeline. As a reminder, scope creep refers to changes, growth, and
uncontrolled factors that affect the project's scope at any point after the project begins. During
these brainstorming sessions, you might find that your list of potential risks is quite long, and that's
okay. It is a reality you and your team cannot account for every single problem that can occur during
your project. So how do you decide which risks to focus on? List the outcomes from the brainstorm
in a risk register. A risk register is a table or chart that contains your list of risks. Next, you will adopt
a risk assessment technique. Risk assessment is the stage of risk management where qualities of a
risk are estimated or measured. By qualities, we're mainly referring to how likely the risk is to occur
and its potential impact on a project. We'll come back to this point in a moment. There are a few
ways to assess risks, but one we'll focus on is creating a probability and impact matrix. A probability
and impact matrix is a tool used to prioritize project risks. I personally love this technique and use it
all the time in my role at Google. Earlier, I mentioned that you need to assess the likelihood that a
risk will happen and its potential impact. This matrix will help you do just that. To create a
probability and impact matrix, you will need to think about the level of impact. Impact refers to the
damage a risk could cause if it occurs. Impact is also determined on a scale of high, medium, and
low. High means that if the risk occurs, it will substantially alter the project. Low means if the risk
occurs, it will have a slight impact but it's not likely to derail the project. You will also need to think
about probability. Probability is the likelihood that a risk will occur. We also determine probability on
a scale of high, medium, and low. In this case, high probability means there's a high likelihood of this
happening. Low probability means you've identified a risk that could happen, but it isn't likely that
the risk will occur. These two considerations come together to determine the inherent risk rating.
Inherent risk is the measure of a risk calculated by its probability and impact. Measuring the inherent
risk gives us a method for understanding a risk. Inherent risk is also determined on a high, medium,
and low scale. Basically, if a risk has a low impact and low probability, it has a low inherent risk
rating. These are the types of risks you don't need to worry too much about. But if a risk has a high
impact and a high probability, then it carries a high inherent risk rating. Medium to high risks are the
risks you should focus on and create detailed mitigation plans for. When you're creating a probability
and impact matrix, it's important to ensure you create a matrix that meets accessibility guidelines
and has information and formatting that everyone can easily and quickly understand. One way to do
this is to use both color and distinct shapes or text to communicate levels of risk. You can learn more
about accessibility communication by visiting course resources. The way you view and manage each
risk will be determined based on your organization's risk appetite, which refers to the willingness of
an organization to accept the possible outcomes of a risk. You, your team, and your stakeholders
may have different appetites for each risk. We'll discuss how risk appetite plays into risk mitigation in
just a bit. Certain low-level risks that could result in minor setbacks are much more tolerable than
high-level risks that have the potential to completely derail your project. Once you've completed
your risk assessment, you will update the risk register to include high, medium, and low ratings for
some examples of risks that you've identified for this project. Great. Now that we've covered how to
identify and assess risks, we'll go on to the next video, where we'll discuss some of the types of risks
you'll run into during your role as a project manager. Meet you there.

How to create a fishbone diagram

Previously, you learned about some tools to help you identify risks. In this reading, we will
dive deeper into how to create and use one of those tools: the fishbone diagram.

Fishbone diagrams—also known as Ishikawa diagrams or cause-and-effect diagrams—

were developed by Japanese organizational theorist Kaoru Ishikawa in the 1960s to
measure quality control processes in the shipbuilding industry. Fishbone diagrams are a
visual way to look at cause and effect. They are called fishbone diagrams because they
have a similar shape to a fish skeleton. 

Fishbone diagrams help the team to brainstorm potential causes of a problem or risk and
sort them into useful categories. These categories show the areas that you should focus
on to mitigate that risk. Fishbone diagrams are also very helpful in finding the root cause
of a problem. A root cause is the initial cause of a situation that introduces a problem or
risk. The purpose of using fishbone diagrams in risk management is to identify the root
cause of a potential problem for a project or program.  

Case study: Using a fishbone diagram to identify causes of risks  

Miguel is a project manager at Office Supply Inc. He is in the planning phase for an
upcoming summer promotion project, which will include free delivery of products.
Unfortunately, in the past, the company has had trouble delivering its products to
downtown office buildings on time. Miguel builds a fishbone diagram to see if he can
identify some of the possible causes of this problem in order to mitigate this risk on the
current project. He follows these steps to build his diagram:

Step 1) Define the problem 

First, Miguel clearly defines what the problem entails. In this case, Miguel states the
problem as “trouble delivering products to downtown office buildings on time.” Then he
adds the problem to the head of his fishbone diagram. 
Step 2) Identify the categories 

In this step, Miguel thinks of the types of categories that could be causing the problem.
These categories will change depending on the type of problem or industry. Some
common examples of categories include “people,” “technology,” “materials,”
“transportation,” “money,” “time,” “environment,” and “procedures.” 

For the delivery problem at Office Supply Inc., Miguel lists the categories “people,”
“technology,” “materials,” “transportation,” and “environment” at the top and bottom of
the lists to the left of the problem in his fishbone diagram.
Fishbone diagram with the categories and problem filled out listed in the reading. Categories include
“people,” “technology,” “materials,” “transportation,” “money,” “time,” “environment,” and
“procedures.” 

Step 3) Brainstorm the causes 

Now that Miguel has identified possible categories that relate to the risk, he brainstorms
areas of concern within each category. He reaches out to his team for help in identifying
these possible causes. Then, Miguel fills in the lists with some of the causes that could be
related to each category.

Pro tip: Brainstorming should be a judgment-free zone. Encourage the flow of

information related to the categories and try not to rule things out. When dealing with
human factors, steer clear of naming individuals; instead, focus solely on behaviors.
Fishbone diagram with the categories, possible causes, and problem filled out listed in the reading.
New causes for "people" include lack of training, distractions, lack of people. For "technology"
include overcomplicated and outdated. For "materials" include fragile packaging and lack of forklifts.
For "transportation" includes trucks too small, trucks too big, and lack of trucks. For "environment"
includes city traffic, busy elevators, and long distances.

Step 4) Analyze the causes

Now that Miguel has discovered several possible causes for the delivery problems to
downtown offices, he analyzes those causes. He needs to identify the root cause of the
existing problem so he can figure out how to mitigate it for the current project.

Note that one cause of a problem isn’t necessarily the root cause. For example, Miguel has
identified that a lack of forklifts is a problem. Having more forklifts would allow the
company to get the products on and off of the trucks more quickly. However, after
calculating the amount of time it takes to unload and load the products, Miguel realizes
that adding more forklifts won’t significantly reduce the amount of time to get the
products from the warehouse to downtown offices. Therefore, this is one cause of the
problem, but it is not the root cause.

On the other hand, Miguel has noticed that there is no set schedule for sending out
deliveries. Since the problem only exists in the city instead of in the suburban areas, he
realizes that traffic must also be playing a role in the late deliveries. Therefore, changing
the schedule so that the delivery times are before the city’s rush hour may help fix the
problem.       
Pro tip: Fishbone diagrams are tools that can be useful during any phase of the project.
When you use them in risk planning, you are trying to identify the possible causes of a
problem that may or may not occur. When you use them in the execution phase, you are
trying to find the root cause of an issue that has already occurred. 

Key takeaway

Identifying risks and measuring their potential impact on a project can be a complex task.
You can help visualize these issues by creating fishbone diagrams. To recap, the steps to
create a fishbone diagram are:

 Define the problem

 Identify the categories
 Brainstorm the causes
 Analyze the causes
Once you’ve developed a fishbone diagram to help find a problem’s root cause and
measure its potential impact on the project, you can then move on to determining how to
mitigate the risk. 
Types of risk
Hi again. Let's discuss some common types of risks that you might plan for while managing a project.
Though there are many different types of risks that could impact your project, the big ones that you
want to be aware of are: time risks, budget risks, and scope risks. Let's break those down.

Play video starting at ::20 and follow transcript0:20

First, we have time risks. Time risks refers to the possibility that project tasks will take longer than
anticipated to complete.

Play video starting at ::29 and follow transcript0:29

You'll need to be aware of time risks because time is money. Poor time management may deplete
your budget and upset your stakeholders by causing delays.
Play video starting at ::39 and follow transcript0:39

Next, we have budget risks. Budget risk refers to the possibility that the cost of a project will
increase due to poor planning or expanding the project scope.

Play video starting at ::49 and follow transcript0:49

You need to be aware of budget risk since budgeting provides the basis for project costs control.

Play video starting at ::56 and follow transcript0:56

For example, if you overspend, you might not be able to pay your suppliers. This could result in some
reputational damage for the company.

Play video starting at :1:6 and follow transcript1:06

Then we have scope risk. Scope risk refers to the possibility that a project won't produce the results
outlined in the project goals. You need to be aware of scope risks because the deliverables of your
project might not be acceptable to your stakeholders or customers, and that may defeat the purpose
of the entire project.

Play video starting at :1:26 and follow transcript1:26

While time, budget, and scope risks are very common, there are other types of external risks that
you should be aware of. By external risks, we're referring to risks that result from factors outside of
the company that you have little to no control over.

Play video starting at :1:43 and follow transcript1:43

For example, your project could be impacted by an environmental risk, like a major storm, or a legal
risk, like a change in regulatory requirements.

Play video starting at :1:55 and follow transcript1:55

And it's also important to know that there are endless types of risks.

Play video starting at :2: and follow transcript2:00

There will never be a prescription for how to identify and manage every single possible risk. But if
you have a plan, you'll be better set up to deal with whatever comes your way.

Play video starting at :2:11 and follow transcript2:11

Okay, now let's discuss a certain type of risk known as a single point of failure. A single point of
failure is a risk that has the potential to be catastrophic and halt work across a project.

Play video starting at :2:25 and follow transcript2:25

These are risks that have the power to stop an entire team in its tracks, meaning that no one can
make progress on their tasks until the issue is resolved.

Play video starting at :2:36 and follow transcript2:36

For example, in our Office Green scenario, a single point of failure might be a power outage that
takes down the internal database where every piece of information about the project is stored.

Play video starting at :2:48 and follow transcript2:48

Until the database is back up and running, your team won't have access to any of the information
they need to do their jobs. As a result, your team won't be able to complete any of their assigned
tasks. To mitigate this risk, you might budget for a separate cloud service to serve as your backup for
all of your project documentation and information. As the project manager, you'll need to identify
and monitor potential single points of failure in your project, since they can be detrimental to the
project timeline, budget, and scope.

Play video starting at :3:21 and follow transcript3:21

Another source of risk to be aware of are dependencies. A dependency is a relationship between

two project tasks, where the start or completion of one depends on the start or completion of the
other. In other words, dependencies are like links that connect one project task to another.

Play video starting at :3:41 and follow transcript3:41

A dependency must be addressed before the task can be completed or before another task can
begin. Because dependencies are the links that connect one project task to another, they are often a
huge source of risk to a project.

Play video starting at :3:55 and follow transcript3:55

For example, imagine that you've tasked a teammate with hiring a local plant supplier. Until they've
signed a contract with the supplier, your team can't place any orders. That's a dependency. Now
here's where the risk comes in. If your teammate doesn't meet the hiring deadline and then goes on
vacation for a week, this could delay your project timeline. Not great right? If you don't plan for
dependencies, you might risk and impact your budget schedule or project outcome. To prevent
something like this from happening, you might ask a teammate to share their out-of-office plans
with you at the start of the project. This helps you to stay aware of everyone's schedules, ensuring
that there are backup plans in place to maintain your project schedule.

Play video starting at :4:40 and follow transcript4:40

There are two types of dependencies: internal and external. Internal dependencies refer to
dependencies within the project that you and your team have control over. For example, you'll need
to secure approval on a website design before development can begin. On the other hand, external
dependencies are dependencies that you have no control over. For example, the farm that your
plant vendor works at might have experienced a lighter rain season this year, meaning that they'll
have fewer plants to sell.

Play video starting at :5:13 and follow transcript5:13

There are many different risks that can impact your project, from time risks to budget risks to scope
risks. But remember, no project is risk-free.

Play video starting at :5:23 and follow transcript5:23

And with careful, upfront planning, you can do your best to prevent risks from occurring.

Play video starting at :5:29 and follow transcript5:29

In the next video, we'll discuss how to mitigate risks. I'll meet you there.
1.
Question 1

Which type of risk involves the possibility that a project will not produce the results outlined in the
project goals?
1 / 1 point

Budget risk

Time risk

Environmental risk

Scope risk
Correct

This type of risk involves the possibility that a project won't meet your project goals and could result in
the deliverables of your project not being acceptable to your stakeholders or customers.
2.
Question 2

Imagine you’re a project manager overseeing the development and launch of a new app. Which of the
following problems could be a single point of failure risk in the app’s development?
1 / 1 point

Receiving negative feedback from user testing, which may lead to more work for the developers.

Failing to back up key project documentation, which may result in a complete loss of essential data.

Completing a project milestone behind schedule, which may delay the project timeline.

Lack of communication between the designers and the project lead, which may lead to tension among
team members.
Correct

If the documents become corrupted and the data gets lost, the project can’t move forward until the
team rebuilds them. That makes this a single point of failure risk, which has the potential to be
catastrophic and halt work across the project. 
3.
Question 3

Continuing with the app-development project scenario from the previous question, which three of the
following task relationships demonstrate an internal dependency?
1 / 1 point
Partner agencies must deliver image assets before the app is complete.

Developers must fix bugs before the Quality Assurance team begins testing. 
Correct

Your team is responsible for bug fixes, making this an internal dependency.

Clients must sign off on the design before the official launch.

Designers must complete wireframes before they begin prototyping. 

Correct

Your team is responsible for the app’s design, making this an internal dependency.

Researchers must conduct usability tests before the team can improve the design.
Correct

Your team is responsible for usability testing, making this an internal dependency.
4.
Question 4

Continuing with the app-development project scenario from the previous question, you need to secure
funding to develop the app. You want to write a grant proposal to an investment firm. Which of the
following is an external dependency for this task?
1 / 1 point

Outline your project milestones in the proposal.

Identify team members to write the sections of the proposal that align with their expertise.

Get feedback from the investment firm about the types of projects they are interested in funding.

Appoint a team member to assemble the proposal.

Correct

Your team can’t control what interests the investment firm, making this an external dependency for the
grant-writing task.

Managing single point of failure risks

Previously, you learned how to use various tools and strategies to identify and manage
risks as you plan your project. In this reading, we will discuss how to manage risks with the
highest potential of impacting your project.

Single point of failure risks

Once you have identified your risks and ranked them, give special attention to the risks
that could have a catastrophic effect on your team’s ability to complete the project. A
single point of failure is a risk that, if it were to materialize, could cause a significant
amount of disruption to your project and could even shut it down. You should plan for
these risks early on in the project. 

For example, a lot of projects use subject matter experts (SMEs)—team members with a
deep understanding of a particular job, process, department, function, technology,
machine, material, or type of equipment. SMEs are involved to advise you throughout the
project life cycle. Having only one SME familiar with a critical system on your team is an
example of a single point of failure risk. This SME will only offer one perspective, and if
they are the only person advising on the system, there is no one to offer another
perspective. 

Case study: Using mitigation strategies to manage single point of failure risks

Let’s imagine that Office Green uses plant seeds from a company in South America for the
majority of its offerings. The plants produced by these seeds are in high demand by Office
Green’s customers. However, the local government on the suppliers’ end just announced
that it would be imposing a new tax on the exporting of seeds and produce. As a result, the
price of the seeds suddenly becomes so high that it is difficult for the company to supply
the seeds to Office Green, putting the project at risk of not having these seeds available to
purchase.

Let’s look at how these four risk mitigation strategies can be used for managing single
point of failure risks in the Office Green example:
Avoid  

This strategy seeks to sidestep—or avoid—the situation as a whole. In the Office Green
example, the team could avoid this risk entirely by considering using another seed that is
widely available in several locations.

Minimize  

Mitigating a risk involves trying to minimize the catastrophic effects that it could have on
the project. The key to minimizing risk starts with realizing that the risk exists. That is why
you will usually hear mitigation strategies referred to as workarounds. What if the Office
Green team decided to use both the original South American supplier and another
supplier from a neighboring country? More than likely, the change in taxation and
regulation wouldn’t affect both companies, and this would provide Office Green some
flexibility without having to completely eliminate their preferred supplier.

Transfer 

The strategy of transferring shifts the responsibility of handling the risk to someone else.
The Office Green team could find a supplier in North America that uses the seeds from
several other South American countries and purchase the seeds from them instead. This
transfers the ownership of South American regulatory risks and costs to that supplier.

Accept 

Lastly, you can accept the risk as the normal cost of doing business. Active acceptance of
risk usually means setting aside extra funds to pay your way out of trouble. Passive
acceptance of risk is the “do nothing” approach. While passive acceptance may be
reasonable for smaller risks, it is not recommended for most single point of failure risks. It
is also important to be proactive and mitigate risks ahead of time whenever possible, as
this may save you from having to accept risks. In the Office Green scenario, the project
manager could schedule a meeting with project stakeholders to discuss the increase in
South American taxes and how it could impact the project cost. Then, they might decide
to actively accept the risk by setting aside additional funds to source the seeds from
another supplier, if necessary, or to passively accept the risk of not receiving the seeds at
all this season.

Key takeaway

If you have strategies you can rely on for avoiding, minimizing, transferring, and accepting
project risks—including single point of failure risks—you will be in a better position to
protect your project from the possible impact of these risks.                              

Visualizing dependency relationships

In the video, you learned to identify several types of risks. In this reading, we will be
discussing the different types of dependencies that can play a critical role in our project’s
success. 

Types of dependencies  

Dependencies are a relationship between two project tasks in which the completion or the
initiation of one is reliant on the completion or initiation of the other. Let’s explore four
common types of dependencies:

Finish to Start (FS)

In this type of relationship between two tasks, Task A must be completed before Task B
can start. This is the most common dependency in project management. It follows the
natural progression from one task to another.
Example: Imagine you are getting ready to have some friends over for dinner. You can’t
start putting on your shoes (Task B) until you’ve finished putting on your socks (Task A). 

Task A: Finish putting on your socks. →Task B: Start putting on your shoes.

Finish to Finish (FF)

In this model, Task A must finish before Task B can finish. (This type of dependency is not
common.)

Example: Earlier in the day, you baked a cake. You can’t finish decorating the cake (Task
B) until you finish making the icing (Task A).

Task A: Finish making the icing. →Task B: Finish decorating the cake.

Start to Start (SS)

In this model, Task A can’t begin until Task B begins. This means Tasks A and B start at the
same time and run in parallel.

Example:  You need to take the train home after work. You can’t get on the train (Task B)
until you pay for the train ride (Task A).  
Task A: Start by paying for your train ride. →Task B: Start going home by boarding the
train.

Start to Finish (SF)

In this model, Task A must begin before Task B can be completed.

Example:   One of your friends calls to tell you he’ll be late. He can’t finish his shift (Task B)
and leave work until his coworker arrives to start her shift (Task A). 

Task A: Your friend’s coworker starts her shift. →Task B: Your friend finishes his shift.

Dependency graphs

As a project manager, you will use these dependencies to visually represent the flow of
work during your project. Let’s examine how to use a dependency graph with an everyday
example.

Imagine you are making peanut butter and jelly sandwiches for the kids who will be
coming to your dinner, and you want to use dependency relationships to map your
activities on a graph. 
Activity A: Gather Materials. Relationship: After starting the project Activity B: Put jelly on a piece of
bread. Relationship: After A Activity C: Put peanut butter on a piece of bread. Relationship: After A
Activity D: Put both pieces of bread together. Relationship: After B and C Activity E: Serve to kids.
Relationship: After activity D

Let’s break each task down to create your dependency graph:

1. When you start your sandwiches, you need to gather your materials: bread, knife,
jelly, peanut butter, plates, and napkins (Task A). 
2. At this point, you can put jelly on one piece of bread (Task B) and peanut butter on
the other piece of bread (Task C). 
3. Now you need to put both pieces of bread together (Task D).

4. Finally, you can put the sandwich on a plate and serve it (Task E).
Key takeaways

There are four types of task dependencies:

 Finish to Start
 Finish to Finish
 Start to Start
 Start to Finish
A dependency graph can help you visualize these different dependencies and the flow of
the work that needs to be done on a project. They can also help you identify any risk
associated with them.

Test your knowledge: Identifying and assessing risks

Total points 4

1.
Question 1

Imagine that you’re overseeing a project to construct a new office building for your company, and you
need to determine your task dependencies. Which of the following tasks should come first?
1 / 1 point

Set the project budget.

Get stakeholder input to determine project goals.

Identify the construction site.

Begin construction on the new building.

Correct
Connecting with stakeholders is a critical first step in any new project. Following that, you can set the
project budget, identify the construction site, and begin construction on the new building. 
2.
Question 2

Continuing with the construction project scenario from the previous question, which of the following
tasks should come last in the project? 
1 / 1 point

Plan for risk.

Move equipment to the new office.

Hire an architect.

Order the building materials.

Correct

Moving equipment into the new office comes after planning for risk, hiring an architect, and ordering
materials.
3.
Question 3

Continuing with the construction project scenario from the previous question, imagine that you
underestimated the amount of a particular material needed to complete the new building. You
purchase more of the material at full cost, since you no longer qualify for the bulk, discounted rate.
What risk does this scenario demonstrate?
1 / 1 point

Time risk

Legal risk

Environmental risk

Budget risk
Correct

Unexpected costs due to poor planning can pose a risk to the project budget.
4.
Question 4
Continuing with the construction project scenario from the previous question, the project team
completes the designs (Task A) and then begins construction (Task B). What type of dependency
describes the relationship between Tasks A and B?
1 / 1 point

Start-to-Finish (SF)

Finish-to-Start (FS)

Finish-to-Finish (FF)

Start-to-Start (SS)
Correct

Task A must be completed before Task B can start (the designs must be completed before construction
can begin), making this an example of a Finish-to-Start dependency.

Risk mitigation strategies

Hi, and welcome back. Okay, so you've learned how to identify your project's risks and assess them
using a probability and impact matrix. Now that you know which risks require your attention, how do
you determine what to do about them? This is where risk mitigation planning comes in. Risk
mitigation planning is about finding ways to eliminate or reduce the impact of potential risks to your
project. There are four common ways to mitigate risk. You can avoid it, accept it, reduce or control
it, or transfer it. Let's discuss each option using the Office Green example. Sometimes you can avoid
the risk altogether. For example, if you learn that a certain contractor you've considered working
with on your Office Green project has a poor reputation for meeting deadlines, then you might
choose to avoid that risk by hiring a different contractor. You can also accept the risk, especially ones
that you deem low in probability and impact. In this case, you're accepting the possibility that this
risk can happen. You've agreed to monitor it throughout the project, and you'll ultimately be okay
with the risk if it does happen. For instance, maybe your plant supplier tells you that one of the
planter styles you've requested is back-ordered. The supplier is confident that they'll have time to
restock the planters without delaying your project schedule, but if there is an issue with every stock
shipment, this could delay deliveries to your clients by up to two days. Rather than starting over with
a new supplier, you decide that it makes more sense to accept the risk. It wouldn't be ideal for this
delay to occur, but you're flexible and you know that accepting this risk will save you and your team
the headache of onboarding a new supplier, which could take two weeks. Another way to mitigate a
risk is to reduce or control it. Personally, I like to use a decision tree when building mitigation plans.
A decision tree is a flowchart that helps visualize the wider impact of a decision on the rest of your
project. For example, you decide to hire the contractor with a reputation for missing deadlines
because you know they do great work. In this case, you might create a quick flowchart that visualizes
the risks and potential options for addressing it, like checking in with the contractor daily, either by
email or through meetings. Ultimately, you might then choose to have daily check-in meetings with
the team to ensure that they're staying on top of their tasks. Finally, you can choose to transfer the
risk. For example, you've determined that it's too risky to attempt to grow plants on site at Office
Green due to the possibility that bad weather or pests could negatively impact your product.
Instead, you've made a decision to transfer the risk to another party or parties. By outsourcing plant
production to local suppliers, you have the power to change suppliers if there's an issue with quality.
When you transfer the risk, you don't risk losing out on time, resources, and money. To recap, four
common ways to mitigate a risk are: to avoid it, accept it, reduce or control it, or transfer it. Using
one of these four strategies can help you effectively take control of the risks to your project. Coming
up, we'll discuss how to document these risks in a risk management plan.

Building a risk management plan

Now that you know your options for mitigating potential risks, let's discuss how to document your
risk-planning decisions. As you've been learning throughout this program, documentation is a crucial
part of your role as a project manager. This is especially true when identifying risks and creating a
plan to mitigate them. A risk management plan is a living document that contains information
regarding high-level risks and the mitigation plan for each of those risks. This plan helps ensure that
teammates and stakeholders have a clear understanding of potential problems and a plan to address
them should they occur. Risk management is an ongoing practice that you'll take part in throughout
the planning and execution of a project. Since risk management evolves throughout the project, the
plan should be updated regularly to add newly-identified risks, remove risks that are no longer
relevant, and include any changes in the mitigation plans. Let's review an example of a risk
management plan similar to the one we sometimes use here at Google. At the top of the document,
we include the name of the company, and below it, the name of the project. We also include the
document author so that anyone reviewing the plan knows exactly who to reach out to if they have
any questions. This template also designates a spot for the document status. As you're building your
plan, you can list the status as "in progress." Once the plan is complete, you can change the status to
"final." We've also included helpful details like when the document was created and when it was last
updated. Details like these might seem small, but it's best practice to include them. That's because
being transparent about dates provides stakeholders with a sense of how up-to-date the document
is. Below these details, we have the document objective. Here, we've written that our objective is to
outline mitigation plans for Project Plant Pals. Below that, we've added an executive summary of our
project. Executive summaries should include a brief introduction to the normal conditions of a
project and an outline of the potential risks that could impact the project. Now onto the really
important stuff: the risks and how we'll mitigate them. This document also includes the risk register
you learned about earlier, which is a table or a chart that contains your list of possible risks. Here,
we've outlined one of the potential risks to Project Plant Pals, which is the potential for the vendor
to fall behind on a deadline. We've given this risk a medium inherent risk rating. Remember that
inherent risk is the measure of a risk calculated by its probability and impact. A mitigation plan has
also been included for this risk, which is to hold daily meetings with the vendor to help them stay on
task. Down in the appendix of the document, you'll find the probability and impact charts as well as
the probability and impact matrix that we use to assess our risks. Once you've filled out the risk
management plan, you'll share it with your team and stakeholders to get their input and to ensure
that they are aligned with your plans. Coming up, we'll dig deeper into the topic of communicating
risks to stakeholders. See you there.

Test your knowledge: Mitigating and communicating risks

Total points 4
1.
Question 1

Imagine you have learned that a contractor who has done quality work for your organization in the past
has received some negative reviews recently. You choose to hire another contractor for the current
project. This is an example of mitigating risk by ______.
1 / 1 point

avoiding it

transferring it

accepting it

reducing or controlling it
Correct

By hiring a different contractor, you are mitigating the risk by avoiding it altogether.  
2.
Question 2

Which of the following are basic components of a risk management plan? Select all that apply.
1 / 1 point

A probability and impact matrix

Correct

A probability and impact matrix helps determine the likelihood a risk will occur and the damage a
materialized risk could cause to the project. A risk management plan should also include a risk register
and mitigation plans.

Mitigation plans
Correct

Mitigation plans give teams and stakeholders a clear understanding of potential problems and a plan
to address them. A risk management plan should also include a probability and impact matrix and a
risk register.

A Gantt chart

A risk register
Correct

A risk register contains a list of possible risks to a project, making it easier to avoid or mitigate them. A
risk management plan should also include a probability and impact matrix and mitigation plans.
3.
Question 3

Which of the following tools can help project managers visualize how to mitigate a risk in order to
reduce or control it?
1 / 1 point

A project charter

A power grid

A decision tree

A statement of work
Correct

A decision tree is a flowchart that can help project managers visualize the wider impact of a decision on
the rest of a project.
4.
Question 4

What step should you take after you complete your risk management plan?
1 / 1 point

Share the plan with your team and stakeholders.

Estimate the likelihood and impact of the project risks you have prioritized.

Create a power grid to include in the appendix of your plan.

Implement the individual mitigation plans for the risks you have identified.
Correct

Once you’ve filled out the risk management plan, you should share it with your team and stakeholders
to solicit their input. This will help you confirm alignment with your plan.

Communicating risks to stakeholders

Hello. As you've learned in the past few videos, identifying and assessing risks is a crucial part of the
project planning process. These exercises help clarify the most important risks for you and your team
and ensure that everyone agrees on which risks to plan for. But it's not enough for you and your
teammates to simply be aware of the biggest risks to a project. You also need to communicate these
risks to your project stakeholders, whether through documentation, e-mail, meetings, or other
forms of communication you've deemed appropriate. Your stakeholders need to be aware of the
risks facing a project, because if you don't tell your stakeholders about important risks, they may be
less equipped to help you if an issue does arise. For example, they might not be able to provide you
with more budget should you need it or with more resources should you require them. Even worse,
your stakeholder might be caught off guard by an issue. Unpleasant surprises like these can erode
that trust in you as a leader of the project. They'll likely want to know if you were aware of the
possibility that this risk could occur, and they might wonder why you didn't share this information
with them sooner. That's why it's important to communicate early and often with stakeholders
about medium- and high-level risks. It sets expectations with stakeholders about what to potentially
expect during the project execution phase and demonstrates that you've taken steps to mitigate and
plan for those risks should they come up. It also gives you the opportunity to suggest ways they
might be able to help you if a risk does arise. How do you communicate risks to stakeholders during
the planning phase? Well, that depends on the severity of the identified risk. For low-level risks,
something as simple as an e-mail might suffice. For example, when sending out weekly planning
updates to a project stakeholder, you might list a few low-level risks that are relevant to their
interests and briefly explain how you'll address these risks if they arise. For medium level risks, you
might increase your level of communication to a direct e-mail between yourself and the stakeholder
in which you outline the risk with more specifics and provide a detailed explanation of your plan to
mitigate the risk. You might also link to your risk management plan to provide them with more
information. You might write "urgent" in the subject line to stress the e-mail's importance. The
serious nature of high-level risks requires a thorough and direct level of communication. When
you're meeting with stakeholders to go over the project plan, you might add an agenda item to
present serious risks and your plans to mitigate these risks. You can also use this time to collect
feedback on your risk management plan and ask for insights from stakeholders on how they suggest
handling these high-level risks. Your stakeholders might have prior experience planning for similar
risks and strategies that you hadn't considered before. Risk communication is a big part of my role
here at Google. As a program manager, I'm constantly writing e-mails and delivering presentations
on the status of my projects, often with the goal of sharing known risks and my risk mitigation plans.
In discussing these plans with my stakeholders, we often uncover other risks that I hadn't even
considered. For example, in a recent meeting, I was presenting a potential new product to a
stakeholder on a different team. In the meeting, the stakeholder flagged their concerns that my
solution might create time and resource risks that could have a negative impact on their team. This
discussion gave me deeper insights of my colleagues' potential risks and of the product's users'
needs, which made me realize that I needed to ask my project sponsors for additional budget and
resources. It's always a good idea to discuss your plans with your stakeholders. They may have a
different perspective. To recap, it's important to communicate risks to stakeholders so that they're
better able to help you should one arise, and you should tailor your communication style according
to the severity of the risk. Up next, we'll review and wrap up all that we've covered. Meet me there.

Peer-graded Assignment: Activity: Create a

risk management plan
Ready for the assignment?

You will find instructions below to submit.

1. Instructions
 2. My submission
3. Discussions
Activity Overview

In this activity, you will create a risk management plan to help you identify and prepare for
possible risks for the Plant Pals operations launch. 

After you submit your assignment, review and respond to at least two of your classmates’
assignments.

Scenario
less 

Review the scenario below. Then complete the step-by-step instructions.

As a project manager for Office Green, you are responsible for consulting with team members to
identify potential risks for the Plant Pals operations launch. You determine that there are two
main risks types you need to plan for:

1. Going over the project budget

2. Falling behind the training schedule

Your team identifies three possible risk scenarios for each category:

Budget Risks

Your team’s Fulfillment Director has identified three possible budgetary risks to mitigate:

 Each delivery truck costs $16,000 more than initially quoted. Your team
estimates a 50% chance this risk will occur. If it does, Office Green would pay
$32,000 more than expected for their two delivery trucks. 

 A product vendor charges a higher rate than expected. Your team determines a
20%-25% chance this risk will occur. The budget impact would be approximately
$17,000.
 A product vendor loses a product shipment. Your team estimates only a 5%
chance this risk will occur. A lost shipment would cost over $25,000.

Schedule Risks

Your training team is concerned that they could fall behind schedule when training Office Green’s
employees, and highlighted three possible scheduling risks:
  Your Training Manager gets sick and misses a week of training. Your team
estimates a 5%-10% chance this risk will occur. 
 You cannot hire enough employees in time to train them before launch. Your
team estimates a 20%-30% chance this risk will occur, and it could delay the project
by over a month.
 More than 50% of employees quit after a difficult training process, leaving the
company short-staffed. Your team estimates only a 5% chance this risk will occur.

Step-By-Step Assignment Instructions

less 

Step 1: Access the template

To use the template for this course item, click the link below and select “Use Template.”

Link to template: Risk management plan

OR

If you don’t have a Google account, you can download the template directly from the attachment
below.

Activity Template_ Risk management plan

DOCX File

Step 2: Fill in the document details

At the top of the document, write your name (or simply “project manager”) next to Author. Then
record the status of the plan next to Status (mark it as a draft for now).

Step 3: State the objective

Now consider the purpose of a risk management plan and what it is designed to do. Write a
sentence or two summarizing this purpose under Objective.

Step 4: Write an executive summary

Write a 3-4 sentence introduction outlining the project goals and milestones, and include
potential risks in the tables provided under Executive Summary in the template.
Step 5: List budget risks

Now go to the budgetary risk chart and add the three potential budgetary risks under Scenario.

Step 6. Assess the impact of each budget risk

Next, determine the inherent risk level of each budgetary risk. Remember that inherent risk is the
measure of a risk calculated by its probability and impact. To do this, go to the Appendix section
of the template:

 First, consult the Probability chart to determine whether the risk has a low,
medium, or high chance of occurring.
 Next, use the Impact chart to identify whether each risk poses a low, medium, or
high impact to finances, operations, or people. 
 Finally, use the Probability and Impact Matrix to calculate the inherent risk as low,
medium, or high. 
 Enter the inherent risk rating under Risk to project in the budgetary risk chart. You
can color-code the rating for clarity (green for low, yellow for medium, and red for
high).

For example, in the first budgetary risk scenario the two delivery trucks cost more than initially
estimated:

 Your team estimates a 50% chance this risk will occur. According to the Probability
chart, 50% is a high probability. 
 Your team estimates a $32,000 overage. According to the Impact chart, $32,000 is
a high financial impact.
 Because the probability and impact are both high, according to the Probability and
Impact Matrix, the inherent risk is high.

Step 7: Develop mitigation plans for budget risk scenarios

Now that you’ve calculated inherent risk ratings, consider how to mitigate each risk. Remember,
you can choose to deal with each risk in one of the following ways:

 Avoid
 Accept
 Reduce or control
 Transfer 

Once you’ve decided how to handle each risk, write "avoid," "accept," "reduce or control," or
"transfer" in the Mitigation Plan column. Then explain how you plan to deal with the risk. Be
sure to consider all the options when developing your mitigation plans.

For example, imagine there is a risk that a vendor might not have the right plants in stock
consistently. If the inherent risk level is low you could choose to monitor the situation and
research alternative sources for particular plants. If the inherent risk level is high, you could
choose to avoid it altogether by switching vendors. 

Note: Your mitigation plans will likely differ from those of your fellow learners. That’s okay—there
are a lot of factors to account for and no one right way to deal with them.

Step 8: Develop mitigation plans for schedule risk scenarios

Repeat Steps 5-7 for the three schedule risks. 

Pro Tip: Save the template

Finally, be sure to save a blank copy of the risk management template you used to complete this
activity. You can use it for further practice or in your own personal or professional projects. These
templates will be useful as you put together a portfolio of project management artifacts. You can
use them to work through your thought processes as you demonstrate your experience to
potential employers.

Review criteria
less 

There are a total of 15 points for this activity. At least two of your peers will evaluate your risk
management plan. Your final grade will be the median of these scores. You must get 12 out of 15
total points to pass.

Giving Good Feedback

less 

Once you complete the activity, review and provide constructive feedback for at least two
classmates. Below are some guidelines to help you leave constructive comments for your peers. 

When giving feedback, consider:

 Leading with positive feedback

 Providing a balance of positive and actionable feedback
 Sticking to information-specific, issue-focused, and observation-centered comments

Ready to submit your work? Head to the My Submission

tab at the top of the page.
Introduction: Organizing communication and
documentation
Why communication is critical
Okay. Let's start with an example. Imagine you've planned a surprise party for your best friend's
birthday. You've been working on it for a month, and finally, it's the big day. You show up at the
restaurant where the party is happening, but there's an issue. The host says the reservation was
canceled because no one confirmed. A friend shows up with the birthday cake, but you'd asked them
to bring cupcakes. Another friend texts you saying they're looking forward to seeing everyone
tomorrow night. Tomorrow? And then, in the middle of all the confusion, you look over to see that
your best friend has already been seated on the other side of the restaurant. Not exactly the surprise
party you had in mind. What happened? Poor communication happened. The friend who made the
reservation forgot to tell you to confirm 24 hours in advance. The friend who ordered the cake never
saw your email asking them to get cupcakes, and you assumed everyone in the group text message
got the update that the party was on Friday, not Saturday. Fortunately, your best friend appreciate
the effort and was surprised anyway. But whilst you and your best friend can have a good laugh
about the party-planning breakdown, if something like this happens at work, your boss and
coworkers might not think the same. Communication is very important to every project. I'd even
argue that it's the most important tool in making sure your project runs smoothly. Many times, what
contributes to the success or failure of a project team comes down to whether or not everyone
understands what's happening and how their tasks contribute to the project's goals. As project
manager, you play a big part in making sure everyone knows what their roles and tasks are. You're
also the person that team members come to when they're just in need of a quick answer. Being able
to communicate clearly and effectively is key. It's important to remember that without effective
communication, the project is at risk of missing important opportunities or even failing altogether.
During a project I recently worked on, my stakeholders allocated a few design specialists to work
with me. In the first week of the project, I noticed that one specialist wasn't attending any of the
project meetings. I decided to approach the individual about their absence. When asked, they stated
that they were well over capacity with the current workload and were unable to commit to the short
deadlines I had been assigning. There were a couple of breakdowns in communication here. First,
between a specialist and their manager, and second, between a specialist and me, the project
manager. Ideally, the specialist and their manager would have communicated better with each other
about the specialist's ability to take on the workload. If I had not communicated with the specialist,
their continued absence at meetings could have resulted in lots of lost time, the project being
delayed, or not being able to deliver the project in a satisfactory way. As it turned out, we only
ended up losing a week of work due to the lack of communication. However, since I followed up
quickly, we were able to pivot and assign another specialist to the project. We know communication
is very important, but what is communication exactly? To put it simply, communication is the flow of
information. It includes everything that's shared, how it's shared, and with whom. Good effective
communication is always clear, honest, relevant, and frequent, but not too frequent. There is such a
thing as information overload. Effective communication makes it possible for your project to run on
time and up to the expectations outlined in the project plan. Take full advantage of tools like
meetings, emails, phone calls, written documents, and formal presentations, and make sure they are
accessible by everyone. It's also important to remember that communication is not a one-time event
or one-way route. It needs to happen throughout the entire life cycle of the project, from the project
team and stakeholders, as well as from you. Be sure to clarify goals and client expectations, follow
up on action items, and communicate delays as the project progresses. This will help you avoid
issues and setbacks. As the project manager, you're responsible for creating a consistent flow of
communication throughout the project, setting the tone for team communication and working to
make sure everyone's on the same page, every step of the way, gives your project the best chance to
succeed. Okay. Hopefully, it's clear that communication is incredibly important to manage a project.
Coming up, I'll show you how to make a communication plan that will help you manage all important
communication. See you in a bit.

Tips for effective communication

In the previous videos, you learned that communication is key to any successful project.
As a project manager, you are central to that communication, which is an ongoing process
throughout the life cycle of a project. A good project manager must be effective in
communicating with all stakeholders and team members through various mediums.

As the project manager, it is important to develop a communication plan for the duration
of your project. Good communication helps your project run smoothly, leads to better
outcomes, and supports a healthy team culture. You can use these four tips to foster
effective communication within your team:

Graphic of four tips for effective communication that are listed in reading: 1. Recognize and
understand individual differences 2. Brainstorm and craft the appropriate message 3. Deliver your
message 4. Obtain feedback and incorporate that feedback going forward

Recognize and understand individual differences

You can encourage open, inclusive communication by:

  Not making assumptions about your audience’s backgrounds, identities, or
experiences. 
 Being mindful of your own biases.
 Using appropriate, professional, and neutral language.
 Including, respecting, and being curious about diverse points of view.
As the project manager, you will undoubtedly work with a diverse group of team members
and stakeholders on each project. You will need to understand each team member’s
background, experiences, perspectives, and biases—as well as your own—to 
communicate effectively. 

Brainstorm and craft the appropriate message

Communicate the right message by thinking about your intended audience. With whom
are you communicating? In your communications, always be clear about your reasons for
reaching out:

 What channels can your audience use to contact you or the team? 
 Are you conveying information?
 Are you asking for input?
 Are you clarifying an issue?
 Are you resolving a problem?
Some team members may require detailed information, while others may only need an
overview of the situation. No matter your audience, you should be sure to identify the
purpose of the message, state the information or request clearly and concisely, and stay
on topic. 

Deliver your message

As you craft your message, think about which methods are available and appropriate for
communicating with various members of your team, whether that is in person, in a video
conference, over the phone, via email, or in a meeting. Choosing the right method is
especially important if you have team members or stakeholders in different regions and
time zones. Also, be sure to:

 Avoid including any sensitive or potentially private information. 

 Assume everyone at the company will receive the communication.

Obtain feedback and incorporate that feedback going forward

Communication doesn’t end when you deliver your message, so be sure to follow up with
your audience by:

 Checking to make sure your message was clear.

 Asking them for feedback.
 Encouraging open communication.
  Responding to questions quickly.
In this final step, you will obtain feedback from your audience to ensure that your
message was received as you intended. 

Key takeaways

You now have the steps to communicate effectively as a project manager! You have
learned how to foster open, inclusive communication by recognizing and understanding
individual differences among your team members. You know how to craft and deliver an
appropriate message and the importance of obtaining and addressing feedback. Most
importantly, make sure your communications are clear, honest, relevant, and frequent.
Following these guidelines will set you up for successful communication throughout your
projects.

Starting a communication plan

So far, you've learned some common ways of communicating during a project. Let's take that a step
further by learning how to create a communication plan. That will help you manage all the different
kinds of communication that will happen during a project. Trust me, there's going to be a lot of
communication, so you'll need a plan to help you stay aware of it all and to use as a tool for
communicating effectively. A communication plan organizes and documents the process, types, and
expectations of communication for the project. The size and complexity of your communication plan
will be different for every project, but it is always good to have one. Especially with multiple
stakeholders, different phrases and change management are involved. It will really help you, your
project, and the stakeholders. Just like other plans related to the project, your communication plan
needs to address these questions: what needs to be communicated, who needs to communicate,
when communication needs to happen, why and how to communicate, and where the information
communicated is stored. Let's break down each question with a sample communication plan that
I've created for our Plant Pals project.

Play video starting at :1:24 and follow transcript1:24

First off, your communication plan should include what you're communicating on, or in other words,
the type of communication. This could include things like status updates, issues, feedback from
users, daily check-ins, and other types of project meetings. Then, you need to identify who you
communicate with. These are recipients of the information, like key stakeholders and the core
project team. For each type of communication, record when to communicate. This includes the
frequency, which is how often you'll communicate, and key dates like deadlines or major meetings.

Play video starting at :2:7 and follow transcript2:07

One thing to keep in mind is that not everyone needs to receive the same amount of information at
the same time. Generally speaking, your key stakeholders will get their information less often, like in
a monthly, high-level summary, email, or project review meeting,

Play video starting at :2:23 and follow transcript2:23

but your core project team could receive more detailed info through daily email updates or quick
virtual check-ins.
Play video starting at :2:31 and follow transcript2:31

Next, include how you're communicating or what delivery method you'll use. This could be email, in-
person, or virtual meetings, or a formal presentation.

Play video starting at :2:44 and follow transcript2:44

Your plan also needs to include the goal of communicating. This is your "why." So ask yourself: why
are you communicating?

Play video starting at :2:54 and follow transcript2:54

Is it to give a progress update, identify a risk, and address barriers? Or perhaps you need to figure
out next steps, detailed preparation plans, and reflect on lessons learned. The goal of
communication could be a combination of any of these or some other reason altogether.

Play video starting at :3:13 and follow transcript3:13

In either case, there must be a purpose for communicating, otherwise you risk wasting valuable
time. Finally, include where communication resources are located, along with any other notes. I'll
talk more about best practices for storing information in the next video, but for now, try to
remember that relevant information should be easily accessible. So that you, your stakeholders, and
your team can quickly find the resources they need to make decisions, work on tasks, get caught up,
or provide updates.

Play video starting at :3:48 and follow transcript3:48

One more benefit to an effective communication plan is that it allows for continuity of the project's
operations. If a new project manager comes on to the project and sees the plan, they should be able
to quickly access past meeting notes and documentation, as well as current and upcoming
communications.

Play video starting at :4:7 and follow transcript4:07

The communication plan also helps with effective change management, the process of delivering
your final project and getting it successfully implemented. When others have access to the
communication plan after you leave the project, they'll be able to fix any problems that might come
up, make decisions, or apply similar processes to a new project. Hopefully, by now you're feeling
more familiar with the ways a communication plan can lead your project to success. Keep in mind
this is just a basic plan, and there are lots of other ways to structure one. It all depends on what kind
of project you're working on.

Play video starting at :4:46 and follow transcript4:46

Up next, I'll take you through the details of a communication plan and show you how to use it to
manage project communications effectively and efficiently.

Question
Beyond what needs to be communicated, a communication plan addresses which of the
following questions? Select all that apply.
Why and how to communicate
Correct
A communication plan helps project managers keep aware of the numerous project
communications and organize them effectively. To that end, the communication plan
documents and organizes the process, types, and expectations of project
communications.

When communication needs to happen

Correct
A communication plan helps to manage all the different kinds of communication that will
happen during a project. It covers key questions about project communications, such as
who communicates, what they communicate, why the communication happens, and
more.

Where the information communicated is stored

Correct
A communication plan organizes and documents the process, types, and expectations of
communication for the project. It also tracks where the key information that is
communicated is stored. The size and complexity of the plan differs for each project, but it
is always good to have

When to establish project continuity

Who needs to communicate

Correct
A communication plan documents the process, types, and expectations of project
communication. It also answers questions about who, what, when, why, and how
communication happens and where key information communicated is stored.

Developing a communication plan

Now that you know what a communication plan is and the basic categories that go in it, the next
step is filling in your plan. In this video, you'll learn how to set up a communication plan that works
best for all the different people involved with your project and what kind of information to include in
your plan. Things like: who needs to be involved in the project communication? What's the best way
to communicate? Why are you communicating? How often should you communicate? There are few
key benefits to planning your communications up front. Creating a communication plan helps
improve the overall effectiveness of communication, keeps people engaged and motivated
throughout the project, and gets stakeholders involved in effective conversations. Let's try building a
sample communication plan so you can see how it helps with managing the different aspects of
project communication. We'll continue with the Office Green Plant Pals Project. Here's an example
of a basic communication plan using a spreadsheet. Before anything else, think about what types of
communication you'll be using throughout your project. Feel free to refer back to your RACI chart
and stakeholder map, which are tools that will help you figure out what type of communication
might work best for each person, group, or role. In this example, let's say the stakeholders are busy
senior executives who may not need day-to-day details. Instead of daily meetings, it's better to send
a newsletter that summarizes key milestones and project progress to date. Let's type that in.

Play video starting at :1:48 and follow transcript1:48

The core team, on the other hand, may benefit from a daily stand-up, which is a daily meeting
designed to bring everyone up to date on key information. Here, each team member briefly
describes any completed work and any barriers that stand in their way. This is common in Agile
project management, as it helps the team stay coordinated and move quickly throughout the
project. We will go ahead and enter daily stand-ups in this row. But sometimes daily meetings aren't
possible, given time zone restrictions or other obligations. Don't worry, there are other ways to keep
communication flowing. For example, the project team that created this program had daily email
status updates for the whole team to report which action items were being worked on for the day.
They also used a project tracker for tasks and milestones to make sure everyone is on the same
page. Next up, think about who needs to receive information about your project. These are the
communication recipients. It helps to look back to the stakeholder map and RACI chart again. Ask
yourself, who needs to be heavily involved in the details? Who has high interest in the project? Who
needs only to be informed of major milestones? I already mentioned that key stakeholders would be
receiving a monthly newsletter, so I'll type that in now.

Play video starting at :3:23 and follow transcript3:23

Also, we know that the core team will be participating in daily stand-ups, so I'll add that in as well.
Excellent. We're moving right along. Next up in recipients are the project subgroups for marketing,
procurement, and product development. Let's add separate meetings in for each of those groups in
addition to the core team meetings.

Play video starting at :3:51 and follow transcript3:51

Since those subgroups are not part of the core team, you might only want to meet with them weekly
instead of every day. Let's add weekly check-in to each of these. Great. Another best practice is to
list contact information and time zones in your communication plan. That way, you know when
people are available for communicating. Let's add that in. Feel free to hide this column since it
contains sensitive information about people involved in your project. There are other ways to list
contact information privately and link it for easy reference. I'll teach you how to do that in another
video. If you're having trouble deciding which type of communication to use, one way to help you
choose is by thinking about the frequency. As I mentioned earlier, a senior stakeholder probably
won't be able to attend daily meetings, and they don't need every piece of information. Instead, you
can communicate with a senior stakeholder on a weekly or monthly basis and you can focus on high-
level status updates like overall progress, recent wins, or milestones reached, and current metrics. In
this case, let's send out the project newsletter once a month. If you're unsure, it's always great to ask
senior stakeholders which method of communication works best for them. When you work with
your core team on a project, you need to get into more of the day-to-day details. Check in regularly
and ask how everything is going. How they're doing on tasks? Do they need your help with anything?
Add in a daily meeting for your core team and a weekly meeting for the subgroups. Let's make that
happen. Great. Meeting more frequently can help un-block issues and keep the project on the right
track. This leads us to key dates. Listing key dates and times are important for coordination. For
example, if you're launching a product or new process or giving a presentation, you should list the
key dates. Keep in mind, not every type of communication needs a specific key date listed. For
example, with daily or weekly communications, you might not need to specify the actual date every
week. You could just list every Monday or something like that. Let's add in key dates to our plan. For
the monthly newsletter, let's send that on the first Monday of every month. Let's schedule the daily
stand-ups at noon and the weekly check-ins are on Wednesdays at two, three, and four o'clock.

Play video starting at :6:48 and follow transcript6:48

Wonderful. Now let's talk about delivery methods, like email, in-person and virtual meetings, a
shared document that gets updated regularly, or a progress report that gets presented. Deciding the
best way to communicate is a skill. One thing I continuously need to adapt and work to improve in
my role as project manager is communicating among different teams and levels of authority. A
director or executive may only have five minutes, so I need to be concise and know exactly what I
need from them. Likewise, I might be used to communicating via instant message and video chat
with my core team. However, one of the subgroups on the project might respond better to emails
and in-document comments. Let me add in these methods for our communication plan, starting with
email.

Play video starting at :7:53 and follow transcript7:53

Emails are a very common way to get people in sync, but write too much and you may lose your
audience. After all, no one really wants to read a two-page email. One way to get around this is by
adding a note at the top of your email. This will alert readers that some details of a long email may
not be relevant to them. With this kind of email, lead with key points and action items limited to two
to three sentences. Then include a longer section at the bottom for those who want or need
additional details. The goal of communicating is getting your point across effectively. Think carefully
about what you need to accomplish with each type of communication. For high-level stakeholders in
particular, I'm constantly trying to answer, so what? Why should they care about my project? The
same goes for my core team. What information is going to help make sure they complete tasks on
time and stay motivated? Thinking about these questions helps me focus on the most important bits
of information to share. Let's fill this in in the communication plan. The goal of the monthly
newsletter for stakeholders is to give a status update overview. Great. Goals for the daily stand-ups
with the core team would be to report progress updates, blockers, and determining next steps. Let's
add those in as well. All set. Next, you need to make sure you're able to reach everyone you need to
communicate with. It helps if communication is a team effort, especially on more complex projects.
You shouldn't be the only one communicating. You want to enable other team members to be
involved in communications, based on their expertise in the project. I'll add a column for sender and
owner to indicate who is responsible for each communication. Then highlight the sender or owner
for each of these communication types, starting with the project manager as the sender for the
newsletter.

Play video starting at :10:2 and follow transcript10:02

Great. We are all done. Keep in mind, it's always a good idea to check in with everyone to make sure
communications meet their needs. Everyone absorbs information differently; what works best for
you doesn't always work best for others. Some people are more visual and want to see charts and
graphs. Some people might prefer to listen to information through a presentation or a meeting.
Some people may want to review and analyze information on their own first, and then speak with
someone about what they've read. If you're only presenting information in just one or two ways, you
risk engaging some people but not others. Your goal as project manager is to optimize and
streamline communications. A great way to optimize your communications for everyone on the
team is by sending a brief email or survey that asks three questions. What is working in how we
communicate with you about the project? What is not working or is not effective in our
communications? Where can we improve our communications with you? This will give you plenty of
useful information on how you can adapt the communication style to cater to each team member.
Communication plans contain a lot of important information and there are so many different ways
to set one up, depending on the size of your team and the needs of your project. Whichever system
you choose to use, the most important thing is to make sure your communication plan clearly
identifies who needs to be involved in project communication. What methods are being used to
communicate, why are you communicating, and how often you are communicating? That wraps up
our discussion on how to effectively fill in a communication plan. In the next video, I'll share with you
some best practices for documenting all the information you and your team will be communicating
throughout the project. See you in a bit.

Best practices for building a communication

plan
In the previous video, you learned how to develop a basic communication plan. You also
learned how to document who needs to be involved in project communication, how to
communicate with them, why you are communicating, and how often that
communication should occur. 

In this reading, we will reinforce the top tips to keep in mind when creating a
communication plan to ensure that it is an effective tool for you and your project team.

Tips for creating your communication plan 

Identify, identify, identify

Before you begin creating the plan, answer these questions to ensure that you have all of
the relevant information:

 Project stakeholders: Have you created a RACI chart or stakeholder map of all your
stakeholders? Who is your audience? Who will need to be informed at different
points during the project life cycle? 
 Communication frequency and method: When and how often should you check in
with your stakeholders? What methods of communication do they prefer? How
much detail does each stakeholder need? 
 Goals: What is the goal of your communication? Do you need a response? Are you
trying to encourage engagement or simply providing an update? 
 Barriers: Are there any time zone limitations? Language barriers? Do some
stakeholders require time to reply or respond (e.g., an executive)? Are there any
privacy or internet access issues? 

Document and develop

Choose a tool or template to document all of your communication needs, and begin
developing your plan. Once you understand the basic elements (stakeholders,
communication methods, goals, and barriers), it’s time to work out the details! Here are
some tips:

 Add a column for notes. Project management is not one-size-fits-all, and there are
a lot of pieces that need to be tracked. For instance, if you are reaching out to a
senior leader or executive, do you need to copy anyone else on the email? If a
stakeholder is out of office or unavailable on certain dates, do you have a backup
plan? Add notes to set reminders and any additional relevant details.
 Use formatting to highlight any key details in the plan. Is there a launch
announcement or an urgent decision needed for the project to move forward?
Highlight these pivotal elements in a different font color or size to stress their
importance.
 Ensure that the team can access your document. Share the plan with your team.
Allowing your team to review the document ensures that they are aware of the
plan and gives them a chance to offer feedback. Sharing the document also serves
as an extra check to make sure you aren’t missing any crucial pieces.
 Test your plan. If you are sending a team-wide email or link, send a test email to
yourself or a colleague. If you are planning a virtual presentation, be sure to test
the visual, audio, and other technical aspects in advance. That way, you can
minimize any technical problems.  

Check in

Once your communication plan is out in the world, check in with your audience about the
effectiveness of your plan. Scheduling routine check-ins will help you understand what is
and is not working so you can improve your plan. You want to ensure that your
communication plan gets the right information to the right stakeholders at the right time.
Additionally, make sure to double check that key stakeholders have not changed over
time. 

Evaluate where you may be over- or under-sharing information or missing stakeholders.

You can do this through:

Anonymous survey forms 


 Polls or open feedback sessions during team meetings
 One-on-one conversations and check-ins with key stakeholders
Keep these tips in mind as you build your next communication plan and you will be set for
communication success!

1.
Question 1

Fill in the blank: Effective communication is clear, honest, relevant, and _____.
1 / 1 point

rare
urgent

one-sided

frequent
Correct

Regular communication keeps stakeholders up-to-date, but be mindful of information overload.

2.
Question 2

Imagine that a restaurant is hosting a recruitment day to hire delivery drivers. The project manager
creates a plan to organize stakeholder communication. The plan indicates the following:

 The team lead updates the core hiring team every day for two weeks prior to the event to
report next steps so they each know their daily responsibilities.
 The core hiring team contacts the job candidates the Friday before the event to remind them of
the time and location.
 The project manager contacts the venue and caterers the Monday before the event to confirm
reservations. 
In the above scenario, what three key elements are missing from the communication plan?
0.2 / 1 point

Dependencies
This should not be selected

A communication plan should include what needs to be communicated, who needs to communicate,
and when, why, and how the communication should happen. It also covers where key information is
stored. In this scenario, key elements that are missing from the plan include the type of
communication, delivery methods, and resource links.

Type of communication

Communication risks
This should not be selected

A communication plan should include what needs to be communicated, who needs to communicate,
and when, why, and how the communication should happen. It also covers where key information is
stored. In this scenario, key elements that are missing from the plan include the type of
communication, delivery methods, and resource links.

Resource links

Delivery methods
Correct

While the plan includes details like recipients, dates, and goals, it doesn’t specify how the team will
communicate, such as by email, phone call, or in-person. Other key elements that are missing from the
plan include the type of communication and resource links.
3.
Question 3

Which of the following is a best practice you can use to help ensure that your communication plan is
effective for your team? Select all that apply. 
0.75 / 1 point

Use formatting to highlight any key details. 

Correct

You can highlight key elements in a different font color or size to stress their importance and include a
notes column for any additional relevant details. It’s also important to ensure that your team has
access to your plan and to test your plan ahead of time.

Share your plan with your manager but not your team.
This should not be selected

While you should share your communication plan with your manager, you should also share it with
your team. Allowing your team to review the document gives them a chance to offer feedback. Adding a
column for notes, using formatting to highlight key information, and testing your plan in advance are
also communication plan best practices.

Add a column for notes. 

Correct

You can add notes to your communication plan to include any additional relevant details and to set
reminders. You can also use formatting to highlight key details, share your plan with your team, and
test your plan ahead of time. 

Test your plan

Correct

If you are sending a team-wide email or link, send a test email to yourself or a colleague. If you are
planning a virtual presentation, be sure to test the visual, audio, and other technical aspects in
advance. You should also add a column for notes, use formatting to highlight key details, and share
your plan with your team.
4.
Question 4

How can you recognize individual differences in your communications? Select all that apply.
1 / 1 point

Be mindful of your own biases.

Correct

Everyone has some biases, and you should be aware of yours when communicating with your team
members and stakeholders. You should also avoid making assumptions about your audience’s
background, use professional language, and include diverse points of view when communicating. 

Include and respect diverse points of view.

Correct

As a project manager, you should understand and show respect for each team member’s perspective.
To ensure inclusive communication, you should also avoid making assumptions about your audience’s
background, be conscious of your biases, and use professional language. 

Craft your communications based on what you assume about your audience’s backgrounds, identities,
or experiences. 

Use appropriate, professional, and neutral language.

Correct

Using professional and neutral language will help to keep your communications inclusive. You should
also avoid making assumptions about your audience’s background, be aware of your biases, and
include different perspectives when communicating. 
Activity: Draft a communication plan
Total points 5

Activity: Draft a communication plan

Total points 5
1.
Question 1

To pass this practice quiz, you must receive at least 80%, or 4 out of 5 points, by completing the activity
and answering corresponding quiz questions. You can learn more about the graded and practice items
in the Course Overview.

Activity Overview

In this activity, you will create a communication plan to help you manage all the different kinds of
communication that happen during a project. Communication plans help you organize recipients,
communication frequency, and the types of information you need to share.

Note: When you create a communication plan at the start of a project, don’t feel obligated to follow it
exactly. Communications should be flexible enough to adapt if and when circumstances change.

Be sure to complete this activity before advancing to the next course item, which will provide you with
a completed exemplar to compare to your own work. You will not be able to access the exemplar until
you have completed this activity. 

Scenario

Review the scenario below. Then complete the step-by-step instructions.

As part of the Plant Pals Operations and Training plan, your team will need to organize and host
trainings for employees. You want to make sure that a majority of employees are properly trained to
use the new software and equipment before sending the first round of Plant Pals test batches to
customers. Because your employees will need to learn several different processes, training sessions
will take place over a period of ten days. Your team has just over three weeks to prepare before the
sessions begin.

As the Plant Pals project manager, you will work with your team to plan and execute the preparations
for the training sessions. One of your tasks is to build a communication plan, which should include:

 What you need to communicate (the goal of the communication)

 Who needs to communicate
 When information-sharing needs to happen
 Why and how to communicate with everyone involved
As you begin planning the training sessions, you identify the key teams and stakeholders who will need
to communicate about the event:

Core Team: Your core project team will lead the planning and task coordination. These tasks include
communicating with stakeholders, preparing the schedule, reserving space and equipment, training
the employees, and more.

The team members who are directly involved in organizing the trainings include:

 An Administrative Coordinator who is responsible for scheduling and communicating with

other Office Green teams (e.g., Facilities)
  A Human Resources Specialist who manages hiring and develops training protocols (with the
help of the Training Manager)
 A Training Manager who reports to the HR Specialist, runs the training program on the
established protocols, and refines training processes
The other members of your core project team (the Financial Analyst, Fulfillment Director, Quality
Assurance Tester, and Inventory Manager) will attend team meetings and are available to pitch in if
you need them.

Additional stakeholders with whom your team needs to communicate include:

Software and Equipment Vendor: Members of your team will need to meet with the vendor to learn
about the software and equipment so they can create an effective training plan for employees. The
team members responsible for creating and running the training program should organize and attend
this meeting. Your team should allow adequate time to learn about new processes and ask follow-up
questions. This meeting must take place before the end of the vendor’s SoW.

Human Resources: The Human Resources department can help your team as they develop the training
plan. They will also provide support during the training sessions. Your team will want to communicate
with them regularly (but not daily) and on an as-needed basis. The HR Specialist on your team is the
point of contact for the rest of HR.

Facilities: Facilities will reserve and manage the spaces and equipment needed for the training
sessions. They will need to review the schedule and understand your needs for each session ahead of
time. A member of your team needs to keep them updated and informed of any changes to
requirements.

Print Shop: The vendor who will install the software and equipment is also creating training manuals
for your team. One of your team members will need to coordinate with the print shop to make copies of
the manuals for each training.

Office Green employees: You will also need to coordinate with the employees who need to be trained!
A member of your team should tell them where they should arrive, where they should go, what they
need to bring, and communicate other necessary details. The same team member will also need to
conduct the sessions and solicit feedback from employees through a post-training survey.

Your Office Green Manager: Your manager wants to be kept informed of your team’s progress but
doesn't need to know every detail. They can also be a helpful resource for the planning process, if
necessary. You already communicate with them regularly, so you can update them at one of your
weekly meetings. 

Senior Leadership: Your manager asks you to let senior leadership know about the outcome of the
trainings (and to copy them when you do so). The Director of Operations and the Director of Product
(the project sponsor) want to be kept informed but don’t have much time for meetings.

Step-by-Step Instructions

Step 1: Access the template

To use the template for this course item, click the link below and select “Use Template.”

Link to template: Communication plan

OR

If you don’t have a Google account, you can download the template directly from the attachment
below.

Activity Template_ Communication plan

XLSX File

Step 2: Review the communication goals and recipients

The goal and recipient of each communication is already filled out in the template. Review this
information and consider the people and teams you need to coordinate. Then try to think of some ways
you can effectively communicate about each goal.

Note: The first line of the communication plan has already been filled in. You can reference this
information as you complete the rest of the plan.

Step 3: Determine communication types

How should you communicate about each goal? What type of communication is best for each
recipient? Select one of the following communication types from the drop-down under Type of
Communication:

 Planning Meetings: Standard meetings with team members or stakeholders to plan event
details
 Planning Check-In: Brief meetings with stakeholders and support staff to discuss action items
or check on task progress
 Training: Sessions for employees to learn about jobs or specialized tasks
 Informational update: Key details, instructions, and resources for trainees
 Status Update: Timely project updates for senior stakeholders to get high-level information,
give feedback, and answer questions
Note: You can use drop-down items more than once. For example, you might want to build multiple
planning check-ins into your schedule.

Step 4: Determine the frequency

How often do you need to communicate with each recipient? Consider each stakeholder’s level of
involvement in the project when deciding how often to communicate. Select one of the following
frequencies from the drop-downs under Frequency:

 Daily
 Weekly
 One time
Note: You can treat these frequencies as approximate since you’ll be able make note of other
communications (like day-of reminders) under the Key Dates column in Step 6.

Step 5: Add the sender or owner

Who from the team should share or communicate about this information? Select one of the following
options from the drop-downs under Sender/Owner:

 Project Manager (you)

 Core Team: Administrative Coordinator
 Core Team: HR Specialist
 Core Team: Training Manager
 Core Team: HR Specialist & Training Manager
Step 6: Add the key dates

When should this communication happen? Are there important reminders or deadlines you should
note? Consider how much time you have to plan the event and when it makes sense to communicate
about each goal (e.g., early or late in the day or the week). Enter your selected times under Key Dates.

There are no right answers here, but try to be specific about times and dates—and make sure your
stakeholders don’t need to be in two places at once! 

Note: Your stakeholders’ schedules will vary, and it’s unlikely that they will all be able to make every
scheduled meeting. Sometimes, you will need to decide whether you need to reschedule if a key team
member can’t make it.

Step 7: Determine the delivery method

How will you or your team members share this information? Should you meet in person or over the
phone? Should you send a personal email or is a group message more effective? Select your delivery
methods from the drop-downs under Delivery Method: 

 In person
 Phone call
 Email (from individual address)
 Email (from company address)
Note: The best delivery method for each communication depends on the needs and preferences of
particular stakeholders. For this exercise, you can use your best judgment. 

Step 8 (Optional): Add resources and notes

If you’d like, fill in the Resources and Notes columns. You can consult the scenario for any important
details or come up with your own. 

For example, the template includes a link to the meeting agenda and notes for daily team meetings.
These documents aren’t specifically mentioned in the scenario, but they’re useful for any project
meeting.

You don’t need to complete both of these fields for every communication item. Instead, try to think
about what kinds of resources or information can help you reach your communication goals. 

What to Include in Your Response

Be sure to address the following elements in your completed communication plan:

 The types of communication you need to have with your recipient

  The recipients you need to communicate with
 How often you will communicate with them
 Who will own the communication (you or someone from the team)
 Key dates for communication
 The delivery method for each type of communication

Did you complete this activity?

0 / 1 point

Yes

No
Incorrect

You didn’t select an answer.

2.
Question 2

Fill in the blank: In the communication plan you created, you scheduled _____ to keep your manager
informed and get feedback. 
1 / 1 point

daily updates

weekly updates

a one-time meeting
Correct

Your manager is interested in the trainings, but not directly involved, so weekly updates should be
enough.
3.
Question 3

In your communication plan, how often does your team communicate with Human Resources while
developing the training plan?
1 / 1 point

One time

Daily
Weekly
Correct

Weekly check-ins are appropriate for communicating with Human Resources.

4.
Question 4

In your communication plan, who is the Sender/Owner responsible for communicating the training
schedules, locations, and other details to Office Green employees?
1 / 1 point

The HR Specialist

The Training Manager

You, the Project Manager

The Administrative Coordinator

Correct

The Training Manager is responsible for communicating practical information to trainees.

5.
Question 5

In your communication plan, who coordinates with the Print Shop about printing the training manuals?
1 / 1 point

The Administrative Coordinator

The HR Specialist

You, the Project Manager

The Training Manager

Correct

The Administrative Coordinator communicates with other teams, like the Print Shop and Facilities.

Activity Exemplar: Draft a communication

plan
Here is a completed exemplar along with an explanation of how the exemplar fulfills the
expectations for the activity.

Completed Exemplar

To view the template for this course item, click the link below and select “Use Template.”

Link to exemplar: Communication plan

OR

If you don’t have a Google account, you can download the exemplar directly from the
attachment below.

Activity Exemplar_ Communication plan

XLSX File

Assessment of Exemplar

Compare the exemplar to your completed deliverable. Review your work using each of the
criteria in the exemplar. What did you do well? Where can you improve? Use your answers
to these questions to guide you as you continue to progress through the course. 

Note: Your communication plan may differ from this exemplar. That’s because
communication types, frequency, and delivery methods can change depending on the
situation, schedules, personal preference, etc. What should always be consistent is your
attention to your stakeholders’ roles, needs, and communication styles. Learning about your
team is crucial to creating an effective communication plan.

Let’s examine how the different parts of the scenario fit into the communication plan

Planning Meetings with the Core Team: Since the core team is directly involved in
planning and executing the trainings, you want to meet with them daily and in person.
The goal is to check in with each member about their progress, troubleshoot any issues,
and make sure everyone stays on track. Your manager can also be a planning resource, so
you make sure to schedule the team meetings later in the day than your weekly meeting
with your manager. You make a note to check in with your manager with questions and
link to the meeting agendas and notes.

Software & Equipment Vendor: Since your HR Specialist and Training Manager will plan
and run the trainings, they will both need to meet with the vendor. They allow a half-day
for this meeting, which will give them time to go over the training manual and ask follow-
up questions. You link to the vendor’s Statement of Work and make a note to remind the
HR Specialist and Training Manager to check in with relevant team members after the
meeting.

Human Resources: Your HR Specialist owns communications with the HR department,

and checks in with them weekly and in-person for project planning assistance. Since HR
will also provide support during trainings, want to send them reminder emails as well. You
note that more communications will likely be necessary on an as-needed basis.

Planning Check-ins with Facilities: Facilities needs to know the training schedule and
requirements, but does not need daily updates. The Administrative Coordinator checks in
with them weekly over the phone (but could also meet with them in person). You link to
the forms you need to request rooms and equipment for the training sessions.

Planning Check-ins with the Print Shop: The Print Shop needs to know the details of the
event, but you may not need to check in with them every day. The initial planning meeting
is the most important, after which weekly check-ins (over the phone or in person) will
suffice. Your Administrative Coordinator takes care of these communications. You link to
the printing request forms you will use to order the training manuals.

Informational Updates for Office Green employees: You want to communicate with the
trainees consistently so they remember when to arrive, where to go, and what to bring.
Your Training Manager sends a group email from an official Office Green account each
week and sends a reminder the day before each group’s training session. That’s a lot of
messages to keep track of, so you make a note for the Training Manager to automate the
reminder emails.

Training for Office Green employees: The Training Manager will also run the in-person
trainings, which are scheduled each day for ten days, beginning at 10:00 AM. You make
sure to link to the training schedule, so that it’s easily accessible.

Survey for Office Green employees: Once the training sessions are complete, the Training
Manager will send the trainees a survey via email (with two follow-up reminders). You
make a note to discuss the results at the next team meeting.

Status Update with your manager: Since your manager wants to be kept informed of your
progress, you decide to update them at your weekly, in-person meeting. You make a note
to come prepared with a brief update and specific questions for your manager.

Status Update with Senior Leaders: Since the Director of Operations and the Director of
Product want to know how the trainings went, you send them an email update (and CC
your manager) once they have concluded. You link to the resources you’ll need to create
your report.

The value of project documentation

Great to see you again. Now that you're here, let's talk about the importance of documentation and
how it serves as a form of communication for others to reference and contribute to. I'll share an
example with you. Once I worked on a project that involved several teams from quality assurance,
testing, design, partner engineering, and program managers. Each team was responsible for their
own set of deliverables. To keep all teams on the same page, it was important for everyone to store
their plans and reports in one centralized place. This allowed any team member to quickly find the
documents they needed. Documentation storage and sharing is very important. Having plans in one
place makes communication quicker, easier, and more streamlined because everyone knows where
to find any information they need. Just as important is making sure your files are stored with clear
labels or organized into folders. For example, on my team, we have certain reports stored in one
central place. This makes it easier for teams in different countries to find and share their research
with each other, which optimizes workflow and reduces duplicate work. Documenting and
organizing plans also provides visibility and accountability. Your project plan is a great example of
this. Each task has an owner and a due date. This creates visibility for the members of the project
team and accountability for the task owner. It's common for members of the team and senior
stakeholders to reference your project plan and associated documents when they need a refresher
on timelines or milestones. Having up-to-date plans will help ensure there's no room for
misinterpretation or miscommunication. Once you've created a centralized location for your
documents, it's time to think about managing permissions of your files and folders. If someone isn't
a core part of the project team, you might not want them to have full access to all of the meeting
notes. Instead, summarize the relevant information into a status report for those who need to stay
informed of final outcomes but don't need all background information. There's another big benefit
to setting up your project plans and centralizing them in one place: continuity. As the project
manager, there could be times when you need to suddenly leave the project. Say you got sick,
transferred to another project, or needed to take a leave of absence. Another project manager may
need to step in, and if all the project information is scattered across unorganized personal notes, it's
not very helpful. But if you documented all the plans in one place, the new project manager can find
everything they need and pick up right where you left off. It's always useful to store guides, manuals,
meeting notes, plans, and processes all in a centralized place and clearly labeled. You'll also want to
make sure the people in relevant roles are granted access to those documents. So even if you're not
present, the project can carry on. As project manager, it's your job to ensure that project data can be
accessed in the future by others. Documenting your plans and making them available is part of a
project management best practice called knowledge management. If someone needs to review this
project for making decisions or planning similar projects, they should be able to easily access the
information they need. It also helps set the tone for future projects and future project managers,
which can be incredibly helpful if you happen to be the one jumping onto a new project. For
example, if an architect is working on a kitchen remodel and they want to make a decision about the
design, they can look at the old project plans to understand why the decision was made to put the
sink in a certain location. Or if a new architect comes in halfway through the remodel, they might
want to know why the other architect designed the plumbing a certain way. By looking at the old
plans, they can go back and get the information and context they need to move forward with more
informed decisions. It's also important to determine what kind of information to share with whom
and when. Focus on the key information related to what specific individuals need to know. Think
about this scenario: a project manager who is working with all the VPs at their company decides to
send out daily updates. From a communication standpoint, what could be the potential impact of
the project manager's decision? Well, since VPs get lots of e-mails, they're not likely to read the
updates. That ends up being a waste of time for you. Also, when you send a lot of unnecessary
information, then it's hard to tell what's really important. Figuring out the right information to share
is even more important when you're working on projects that have sensitive data. In those cases,
you need to be very careful of how you share information about your project with stakeholders who
do not have permissions to view sensitive data. For example, financial data or user survey results are
often highly sensitive and should never be made available to unauthorized viewers. Here's another
scenario: let's say your team is working on a high-profile launch of a brand new product, say, an
electric car. Most people don't need to know all of the thinking behind the project or see all the draft
versions, but they do need to know what the final design will look like. The project is legally
sensitive, and you want to avoid leaks and over-sharing classified data. If you share the entire project
folder with everyone who needs to know only the end result, you risk doing just that: revealing
highly sensitive and classified data. If this information gets leaked to the wrong people, project plans
and company data could be made public, ruining the big launch of the electric car. You also risk
violating company policy and damaging your reputation as a trustworthy and responsible project
manager. Only share information on a need-to-know basis. It's your job to present the right
information at the right time to the right people. Let me show you an example. In this sample
communication plan, one of the resources is user feedback surveys. This resource contains raw data
collected from surveys submitted by Plant Pals test users, which means it has personally identifiable
information or PII. PII is anything that possibly reveal someone's identity, like a screen name,
password, phone number, e-mail address, first or last name, anything like that. For that reason, only
share that resource with the members of the project team who are approved to access this level of
information. Then if anyone else tries to open the document, they will be alerted that they need to
request permission to access it. If you need to share results of these surveys, those can be presented
in a graph, chart, or summarized in a report without any PII included. Then you can share that
information with the broader team. Now you have a better understanding of how important
documentation is to project management. Coming up next, we'll learn the best way to put your plan
together and stay organized. See you later.

Question
What are the benefits of keeping project plan documents in one centralized place? Select
all that apply.

Share all parts of the plan with the full project team

Ensure continuity if a new project manager joins the team

Show continuous improvements as the project progresses

 Provide visibility and accountability

Organizing project documentation

Hi again. So far in this course, you filled in or created some different project planning resources, like
the project plan, budget, RACI chart, risk management plan, and now a communications plan. We
also discussed the importance of organizing your communications and having easy and appropriate
access to project plans. Now, I'll show you one way you can organize all your project information in
one centralized place. You'll be able to apply these same general techniques to almost any type of
project management style or system. Organizing your project plans makes everyone's job easier and
eliminates opportunity for confusion. As a project manager, your goal is to have all of your project
resources documented and linked in a way to where you or anyone on the project can access what
they need quickly. A couple of handy ways to get organized are using a shared file drive, like Google
Drive, and creating one resource like a document or spreadsheet that links all of the files and
resources that your project uses. Here's an example of how to organize your files in Google Drive,
but it doesn't matter which shared system your project team uses, you can use the same process for
pretty much all of them. First, create a new folder and label it with the name of your project.

Play video starting at :1:30 and follow transcript1:30

Use this folder to store all your project files.

Play video starting at :1:39 and follow transcript1:39

You can even create sub-folders and store them in the main project folder.

Play video starting at :1:54 and follow transcript1:54

You can also stay organized by creating a centralized planning document that links everything
together. This can serve as a quick reference guide that you can use to find all your frequently
accessed files in one place. Here's an Office Green example that's already been started. One at a
time, select a resource name, then link it.

Play video starting at :2:24 and follow transcript2:24

Now you can access the file directly from the centralized document. If your project uses multiple
spreadsheets and you want to avoid having to open lots of separate files, you can group them within
one sheet like this. This sheet has tabs for all the other sheets that contain project information. You
can add a new sheet at any time. It's helpful to include an overview sheet and link any non-
spreadsheet files. This is also a good place to provide a brief description of the project, instructions
for how to use the sheet, or communication expectations. In this example, the overview sheet is
called the dashboard, which is the same thing. You can decide how to label yours. There you have it.
Now you're organized and ready to show everyone what an awesome project manager you are.

Activity: Organize documents in a project plan

Total points 1

1.
Question 1

To pass this practice quiz, you must receive 100%, or 1 out of 1 point, by completing the activity below.
You can learn more about the graded and practice items in the Course Overview.

Activity Overview

Congratulations! You’ve come a long way and worked hard to complete all of the individual project
planning documents, also known as project artifacts, in this course. In this activity, you will gather
those documents and compile and organize them in one central place—your project plan. Having your
documents in one place makes communication quicker, easier, and more streamlined, so everyone can
find the information they need. 

Be sure to complete this activity before moving on. The next course item will provide you with a
completed exemplar to compare to your own work. You will not be able to access the exemplar until
you have completed this activity.   

Scenario

Review the scenario below. Then complete the step-by-step instructions.

As the project manager for Office Green’s Plant Pals Operations and Training plan launch, you want to
keep all your planning documents organized in a central location. That way, you can easily share
information and track the status of the project’s many moving pieces. Your project folders and labels
should be clearly organized to provide visibility, continuity, and accountability.

A project plan is not only useful for streamlining team communications, it can also help you with
retrospectives and planning for future projects.

Step-by-step Instructions

Step 1: Access the template

To use the template for this course item, click the link below and select “Use Template.”

Link to template: Project plan

OR

If you don’t have a Google account, you can download the template directly from the attachment
below.

Activity Template_ Project plan

XLSX File

Step 2: Add project details

There are four tabs at the bottom of the template: Dashboard, Project Schedule, Budget, and
Communication Plan. First, go to the Dashboard tab. You’ll use this tab to provide a brief overview of
the project and link to key project documents. 
In the topmost section of the Dashboard, fill in the following information as indicated in the template:

 Project name
 Project description
 Project owner (You can use your name, make up a name, or simply write “Project Manager.”)
 Project status (mark the status as Draft for now)
Note: Leave the descriptions of the Key Docs blank for now. You will fill them in once you complete the
rest of the document. 

Step 3: Gather project documents 

Next, gather your main project documents from the activities in this course: 

 Activity: Estimate a project plan in a Gantt chart

 Activity: Develop a project budget
 Activity: Draft a communication plan
 Activity: Complete a Statement of Work (SoW)
 Activity: Create a risk management plan
Optional: Gather your finished documents from the following activities in the previous course, Project
Initiation: Starting a Successful Project:

 Project charter 
 RACI charts
Step 4: Add the documents to their respective tabs

Copy your completed Gantt chart, budget, and communication plan to the following tabs of your
project plan:

 The Gantt chart spreadsheet should become the Project Schedule tab.
 The budget spreadsheet should become the Budget tab.
 The communication plan spreadsheet should become the Communication Plan tab.
If you are using Google Sheets, we recommend using the Copy to > Existing spreadsheet function:

1. Open both your project plan and your source sheet (the spreadsheet you want to copy—e.g.,
your Gantt chart).
2. Copy your project plan URL.
3. Go to your source sheet and find the tab at the bottom (e.g., for your Gantt chart, this is the tab
labeled “Gantt chart”). 
4. Click the down arrow on the tab and select Copy to > Existing spreadsheet.
5. Paste the project plan URL into the bottom of the box that appears.
6. Choose Select to copy the source sheet into your project plan.
7. The copied sheet will appear as a new tab at the bottom of your project plan. You can then
delete the blank tab (“Project schedule,” “Budget,” or “Communication plan”) and rename the
newly copied tab.
For Microsoft Excel or other spreadsheet software, you can drag a spreadsheet tab from one
spreadsheet to another:

1. Arrange your spreadsheets so that both your project plan and your source spreadsheet (e.g.,
your Gantt chart) are side-by-side. (You may need to resize them first.)
2. Click the tab at the bottom of your source spreadsheet and drag it to the tab bar of your project
plan.
 3. The copied sheet will appear as a new tab at the bottom of your project plan. You can then
delete the blank tab (Project schedule, Budget, or Communication plan) and rename the newly
copied tab.
You can also copy all the cells of the source spreadsheet and then paste the content into the relevant
tab in your project plan. 

Step 5: Optional: Add hyperlinks to the Dashboard tab

Next, you can add hyperlinks to your project plan tabs and other documents to the Key Docs section of
the Dashboard tab. Creating links to the main documents in your project plan lets your team access
them quickly and easily.

Note: If your project documents are not in the cloud or online, you won’t be able to link to them, and
are not expected to do this step.

If you’re using Google Drive, follow these steps to hyperlink your Project Schedule, Budget, and
Communication Plan tabs to the Dashboard:

1. Under Key Docs in the Dashboard tab, select the cell with the name of the document you want
to link (e.g. “Schedule”).
2. Go to Insert and select Link (or select the Insert link icon from the toolbar).
3. Choose Sheets in this spreadsheet and select the name of the tab you want to hyperlink.
4. Select Apply to link the tab.
To add hyperlinks to your Statement of Work, risk management plan, project charter, and RACI charts:

1. Copy the URL for the document you want to link.

2. Select the cell that matches the document you want to link (e.g., “Project charter”).
3. Select Insert link and paste the URL.
4. Select Apply to link the document. 
If you want to create a shared folder so you can link to all your files, create a central folder on Google
Drive, or any other file sharing program (e.g., Microsoft, Dropbox or Mac). Then, add the documents to
the shared folder and generate a hyperlink to the Key Docs section of the Dashboard. 

Step 6: Add descriptions

In the Dashboard tab, write a short description of each document under Description. (Do this even if
you haven’t created hyperlinks to your project documents. Your descriptions should be brief, but
specific, so your stakeholders know exactly what each document contains.

Note: Be sure to adjust the sharing settings for your project documents and folders. To learn how to
change sharing settings in Google Drive, visit this resource.

Step 7: Save your project plan

Save your completed project plan to your computer or Google Drive. You'll need it again in the next
course, Project Execution: Running the Project.

Pro Tip: Save the template

Finally, be sure to save a blank copy of the project plan template you used to complete this activity.
You can use it for further practice or in your own personal or professional projects. These templates will
be useful as you put together a portfolio of project management artifacts. You can use them to talk
through your thought processes as you demonstrate your experience to potential employers.
What to Include in Your Response

Be sure to address the following elements in your completed project plan:

 Project details at the top of your Dashboard tab

 Links for all documents listed in the Dashboard
 Tabs for the completed Gantt chart (Project Schedule), Budget, Communication Plan, and if
applicable, RACI chart
 A link to a shareable folder containing all of your project resources