INTERNATIONAL PROJECT MANAGEMENT COMMISSION ™

__________________________________________

Office of PM Knowledge Management

Official Guide and Notes for IWNC Approved Project Management Certification with Relevant Coverage of IT Information Technology Project Management and Risk Management

Project Management Guide

Executive Study Manual

Produced by:

Prof. G. Mentz, JD, MBA, MPM

Prof. Brett King, MBA, MPM, CIPM

Prof. Carl Thong, MBA, MPM, CIPM

Dr. Demitri Leo, MPM, CIPM

Dr. Michael Mataev, MD, MPM, CIPM, CEC

International Project Management Commission ™

Project Management Guide for Master Project Managers, Organizations and Various Administrative Information Technicians (VAIT)

November 18, 2005

TABLE OF CONTENTS

EXECUTIVE SUMMARY 5

PROJECT MANAGEMENT 7

INTRODUCTION 7

USING THIS GUIDE 7

INTRODUCTION TO PM 8

WHAT IS A PROJECT? 8

WHAT IS A PROJECT FOR? 8

WHAT IS PROJECT MANAGEMENT? 9

WHAT IS PMTOP 9

O THE PROJECT MANAGEMENT KNOWLEDGE AREAS 9

O PROJECT MODELS 11

WHAT IS PRINCE 2 12

PRINCE 2 12

ISO 9000:2000 13

WHAT IS ISO 9000? 14

HOW TO DEVELOP A QUALITY MANAGEMENT SYSTEM (QMS) ? 14

AUTHORITY AND ACCOUNTABILITY 15

OVERVIEW OF PRODUCT DEVELOPMENT STRATEGY AND METHODOLOGY 16

USE IT AS THE PROVEN, LOW-COST BASIS FOR YOUR COMPANY’S METHODOLOGY 20

PROJECT PHASES AND THE PROJECT LIFE CYCLE 20

PROJECT PHASES AND THE PROJECT LIFE CYCLE 20

20

STAKEHOLDERS 20

ORGANIZATIONAL STRUCTURE 21

SOCIAL-ECONOMIC-ENVIRONMENTAL INFLUENCES 22

O STANDARDS AND REGULATIONS 23

PROJECT MANAGEMENT PROCESSES 23

IPECC 23

PROJECT VERSUS PROGRAM 24

PROJECT MANAGEMENT LIFE CYCLE 25

PROJECT MANAGEMENT IS AN ITERATIVE PROCESS 26

Initiating 27

Planning 28

Executing 30

Controlling 31

Closing 33

MANAGING IT PROJECTS WITHIN THE ORGANIZATION 34

PROGRAM (INVESTMENT) LIFE CYCLE 35

SYSTEM DEVELOPMENT LIFE CYCLE 35

IPMC PROJECT MANAGEMENT FRAMEWORK 36

PROJECT MANAGEMENT TOOLS 38

MILESTONE REVIEW PROCESS 39

Milestone Decision Memo 40

IN-PROCESS REVIEWS 40

MONTHLY PERFORMANCE REVIEW 40

ROLES AND RESPONSIBILITIES 42

THE PROJECT TEAM AND STAKEHOLDERS 42

ORGANIZATIONAL MANAGEMENT 43

Management Roles and Responsibilities 43

PROJECT SPONSOR / BUSINESS SPONSOR 44

Sponsor Roles and Responsibilities 44

PROGRAM MANAGER 45

Program Manager Roles and Responsibilities 46

PROJECT MANAGER 47

Project Manager Roles and Responsibilities 47

PROJECT TEAM 49

Project Team Roles and Responsibilities 49

CUSTOMER 50

Customer Roles and Responsibilities 50

MAKING PROJECTS WORK 51

Processes 54

CONCEPT DEFINITION 55

STEP 0: CONCEPT DEFINITION 55

MILESTONE 0: PROJECT INITIATION APPROVAL 56

PROJECT MANAGER SELECTION 57

ONE EA/ENTERPRISE ARCHITECTURE 58

IT OPERATIONS CONSIDERATIONS 58

SIGNIFICANT PROJECT MANAGEMENT ACTIVITIES 58

RESPONSIBILITY ASSIGNMENT MATRIX 58

CONCEPT DEVELOPMENT 60

STEP 1: CONCEPT DEVELOPMENT 60

MILESTONE I: PROTOTYPE DEVELOPMENT APPROVAL 61

IT SECURITY 62

PRIVACY IMPACT ASSESSMENT 63

ONE ENTERPRISE ARCHITECTURE 64

IT OPERATIONS CONSIDERATIONS 64

STEP 1: SIGNIFICANT PROJECT MANAGEMENT ACTIVITIES 65

STEP 1: RESPONSIBILITY ASSIGNMENT MATRIX 65

SYSTEM DESIGN AND PROTOTYPE 74

STEP 2: SYSTEM DESIGN AND PROTOTYPE 74

MILESTONE II: SYSTEM DEVELOPMENT APPROVAL 75

IT SECURITY 75

ORGANIZATIONAL ENTERPRISE ARCHITECTURE 75

IT OPERATIONS CONSIDERATIONS 76

STEP 2: SIGNIFICANT PROJECT MANAGEMENT ACTIVITIES 76

STEP 2: RESPONSIBILITY ASSIGNMENT MATRIX 77

SYSTEM DEVELOPMENT AND TESTING 79

STEP 3: SYSTEM DEVELOPMENT AND TESTING 79

MILESTONE III: SYSTEM DEPLOYMENT APPROVAL 80

COMPLETE SYSTEM AND TECHNICAL DESIGN 80

IT SECURITY 80

ONE ENTERPRISE ARCHITECTURE 80

IT OPERATIONS CONSIDERATIONS 80

STEP 3: SIGNIFICANT PROJECT MANAGEMENT ACTIVITIES 81

STEP 3: RESPONSIBILITY ASSIGNMENT MATRIX 82

SYSTEM DEPLOYMENT 84

STEP 4: SYSTEM DEPLOYMENT 84

IT SECURITY 85

STEP 4: SIGNIFICANT PROJECT MANAGEMENT ACTIVITIES 85

STEP 4: RESPONSIBILITY ASSIGNMENT MATRIX 85

SYSTEM OPERATION 87

STEPS 5: SYSTEM OPERATION 87

MILESTONE IV: POST IMPLEMENTATION REVIEW 88

IT SECURITY 88

ONE ENTERPRISE ARCHITECTURE 88

IT OPERATIONS CONSIDERATIONS 88

STEP 5: SIGNIFICANT PROJECT MANAGEMENT ACTIVITIES 89

STEP 5: RESPONSIBILITY ASSIGNMENT MATRIX 89

ABOUT THIS IPMC EXECUTIVE SUMMARY 92

SUMMARY OF PM 94

MPM MASTER PROJECT MANAGER – CORE REQUIREMENTS 102

MPM MASTER PROJECT MANAGER- SAMPLE CERTIFICATION TEST 103

SAMPLE MULTIPLE CHOICE QUIZ 103

LIST OF FIGURES

Figure 1.1: Project Process Flow 4

Figure 1.2: Project Management Knowledge Areas 6

Figure 1.3: Initiation Process Flow 7

Figure 1.4: Project Initiation Phase 8

Figure 1.5: Project Planning Process Phase Activities 9

Figure 1.6: Project Execution Phase Processes 11

Figure 1.7: Project Control Phase Processes 12

Figure 1.8: Project Closeout Phase Processes 13

Figure 1.9: IPMC Project Management Framework 16

EXECUTIVE SUMMARY

The IPMC Commission considers effective project management a fundamental management responsibility and vital to achieving the Department’s overall mission and objectives. Agency officials and organizational managers must understand the current status of and risks associated with their programs in order to make informed decisions. Risks must be appropriately mitigated with sufficient controls in place such as to insure that projects are completed on-time, within budget, and aligned with the business case in order to achieve the mission of the VA.

As distinguished from ongoing operations and maintenance, a project is defined as a related set of activities having a discreet beginning and end and resulting in the delivery of a specific product or service. Therefore this guide applies to projects defined, approved and funded in order to:

The project management and system development processes, plans, and other outputs identified and described in this guide are based on the existing ORGANIZATIONAL project management practices, incorporate other best practices from throughout the Federal IT sector as well as those of the International Project Management Commission’s Guide to the Project Management Treatise of Protocol (PMTOP ™ Guide 2005).

The guide is divided into chapters which describe the project management activities and deliverables for each step of the IPMC Project Management Framework. Project management forms for outputs identified in each step are provided in the appendix.

The intended audience for this guide is primarily the project and program managers responsible for managing OMB Exhibit 300 level projects. However, the practices documented in the guide are scaleable and are thus applicable to projects which may not be identified as an OMB Exhibit 300-level investment project.

Specifically, the following individuals and groups will benefit from the utilization of this guide:

The IPMC Project Management Framework depicts the processes of the Milestone Reviews, the System Development Life Cycle steps, the Project Management Life Cycle, and the resulting IPMC outputs. This Framework, when incorporated with the IPMC Project Management Life Cycle, covers the initiating, planning, executing, controlling, and closing phases.

The Framework addresses an effective, consistent management methodology that will provide the with useful, accurate and timely project information for achieving the successful delivery of project initiatives. The Framework represents the collection and recommended application of project management best practices throughout the organization. These project management processes will be transitioned to and aligned with the organizational environment and current processes.

It is the vision of the IPMC Commission is that Project Managers incorporate this guide as a tool to aid in their responsibilities to deliver projects on time, on budget, and within the scope and alignment with the mission of your organization.

PROJECT MANAGEMENT

Introduction

Prior to discussing the various phases, processes and standards involved in applying this guide to project management, the guide defines what project management is and the roles involved. Upon acceptance of the definition of project management internally, organizations can develop an infrastructure to provide the knowledge, skill, tools and techniques necessary to support projects, Project Managers and project teams.

The guide provides the foundation that enables the organization to conduct projects in a disciplined, well-managed, and consistent manner so that quality products are completed on time and within budget. Throughout the guide reference will be made to the International Project Management Commission (IPMC) and the Project Management Executive Protocol Guide (PMEPG). IPMC has established the industry standards for project management and the PMEPG embodies those standards.

Chapter 1 is an introduction to Project Management Best Practices as embodied in the PMEPG as well as other best practices used in both industry and government and describes how those are integrated into the framework to create a holistic approach to managing projects. The guide does not simply restate the standards and processes defined by IPMC’s PMEPG but establishes an application of those standards to the Project Management Framework. The guide provides the methods addressing “what needs to be done” and “how it is to be done” in the execution and management of projects.

Large, complex projects require a more rigorous application of management processes than small, non-complex projects with readily achievable goals. The Project Manager assesses the project characteristics to determine how to tailor the information in the guide to that specific project and determine which project management processes will be required. This “tailoring” effort is reflected in the Project Management Plan and its associated documentation.

Additionally, the guide should be evaluated and refined over time (continuous improvement) in order to maintain the applicability, usability and acceptability of the processes and techniques defined. As the guide is implemented, lessons learned from its use will become invaluable to the continuous improvement effort.

Using this Guide

Chapter 1 provides background information and sets the context for understanding project management within the organization. Chapter 1 defines project management, discusses the difference between project and program management, and describes the IT Project Management Framework. The remaining chapters lead the reader through the IT Project Management Framework by devoting a chapter to each major step in the organizational project management process.

The guide appendices include project management forms a Project Manager would use to initiate, plan, execute, control, and close out their projects. A basis and collection of best practices for project management as defined in the PMEPG is located in the appendix as a reference.

There is also an organizational specific reference information, such as a glossary of project management terms within the context of the institution and the project management organizational governance structure, located in the appendix.

INTRODUCTION TO PM

The power of the Project Management Commission

WHAT IS A PROJECT?

WHAT IS A PROJECT FOR?

Key to Success:

Guaranteed by a PROJECT MANAGEMENT

WHAT IS PROJECT MANAGEMENT?

Project management is the application of knowledge, skills, tools, and techniques
to project activities to meet project requirements

WHAT IS PMTOP

The Project Management Treatise of Protocol (PMTOP) is the sum of knowledge within the profession of project management, which is generally accepted

Generally accepted means that the knowledge and practices described are applicable to most projects most of the time, and that there is widespread consensus about their value and usefulness

Generally accepted does not mean that the knowledge and practices described are or should be applied uniformly on all projects

The project management team is always responsible for determining what is appropriate for any given project

Traditional Model

Plan-Design-Build

Adaptive Development (AD)

Speculate-Collaborate-Learn

WHAT IS PRINCE 2

PRINCE 2

“Projects IN Controlled Environments”

PRINCE2 is comprised of 8 elements or “components”

Business Case: The existence of a viable Business Case is the main control condition for a PRINCE2 project. The Business Case is verified by the Project Board before a project begins and at every major decision point throughout the project. The project should be stopped if the viability of the Business Case disappears for any reason.

Organization: Since the Project Manager often has to direct staff who report to another management structure, some senior management oversight organization is needed to assure that those diverse resources are committed to the project. In addition, viability decisions need to made by management with an investment in the project, and an accountability for delivering it through the Project Manager. In PRINCE2 this oversight is the Project Board.

ISO 9000:2000

• ISO is the International Organization for Standardization. It is located in Switzerland and was established in 1947 to develop common international standards in many areas. Its members come from over 120 national standards bodies.

• ISO 9000 applies to all types of organizations. It doesn’t matter what size they are or what they do. It can help both product and service oriented organizations achieve standards of quality that are recognized and respected throughout the world.

What is ISO 9000?

ISO first published its quality standards in 1987, revised them in 1994, and then republished an updated version in 2000. These new standards are referred to as the “ISO 9000 2000 Standards“

ISO 9001:2000 presents requirements, while ISO 9000:2000 present guidelines

The quality management system must meet ISO’s requirements, not its guidelines. 

ISO 9000 is sweeping the world, is rapidly becoming the most important quality standard.

• It saves money

• Customers expect it

• Competitors use it

How to develop a quality management system (QMS) ?

• Develop a QMS Development Plan which conforms to ISO 9001 2000 requirements.

• QMS Development Plan should use a process approach.

• Organizations must identify and manage the
processes that make up their quality management systems.

22 QMS processes:

1.  Quality Management Process
2.  Resource Management Process
3.  Regulatory Research Process
4.  Market Research Process
5.  Product Design Process
6.  Purchasing Process
7.  Production Process
8.  Service Provision Process
9.  Product Protection Process
10.  Customer Needs Assessment
11.  Customer Communications Process
12.  Internal Communications Process
13.  Document Control Process
14.  Record Keeping Process
15.  Planning Process
16.  Training Process
17.  Internal Audit Process
18.  Management Review Process
19.  Monitoring and Measuring Process
20.  Nonconformance Management Process
21.  Continual Improvement Process
22.  General Systemic Process

Following each of these 22 Steps/Plans, you will end up with
a complete quality management system, one that meets all of the
ISO 9001 2000 requirements!

Authority and Accountability

In most projects, “authority” is separated from “accountability” (consequences of success or failure), senior management has authority (but often not held accountable for success or failure of the project), while the project manager is held accountable (with insufficient authority over the resources to ensure completion of work).

PRINCE2 calls for an accountable Project Board to own the project, helping to ensure their commitment to getting the work completed. At the same time, the Project Board grants authority to the Project Manger by explicitly committing resources as the project progresses.

The PMBOK suggests this will happen under certain organizational structures; PRINCE2 believes it can be implemented in most environments.

Plans: Plans are the backbone of the management information system required for any project, and require the approval and commitment of the appropriate levels of the project organization

Controls: Control is about decision making: its purpose is to ensure that the project

Management of Risk: Risks is an essential part of project management. To contain risks during the project, they must be managed in a disciplined manner, through risk analysis and risk management (as in the PMBOK)

Quality in a Project Environment: Quality management ensures that the quality expected by the customer is achieved through a quality system (similar to the PMBOK). Quality requirements of the project’s deliverables are based in Product Descriptions, prepared by the Project Manager and approved by the Project Board

Configuration Management: Configuration Management gives the project management team control over the project’s assets (the products that it develops), and is vital to any quality system. It provides mechanisms for tracking and controlling the project’s deliverables, and a system for tracking project Issues

Change Control is a required part of any complete (ISO 9001-certified) quality management system

Change Control: Controlling scope change means assessing the impact of potential changes, their importance, cost, impact on the Business Case, and a decision by management on whether or not to include them

Issue Management: Tracking and managing the issues is a vital activity for any project, No project methodology could qualify for “maturity” without an Issue Management process in place

PRINCE2 is not meant to stand on its own and needs experience and the depth of PMBOK

OVERVIEW OF PRODUCT DEVELOPMENT STRATEGY AND METHODOLOGY

For R&D departments

USE IT AS THE PROVEN, LOW-COST BASIS FOR YOUR COMPANY’S METHODOLOGY

PROJECT PHASES AND THE PROJECT LIFE CYCLE

PROJECT PHASES AND THE PROJECT LIFE CYCLE

STAKEHOLDERS

Project stakeholders are individuals and organizations that are actively involved in the project, or whose interests may be positively or negatively affected as a result of project execution or project completion

The project management team must identify the stakeholders, determine their requirements, and then manage and influence those requirements to ensure a successful project

Stakeholder identification is often especially difficult.

Key stakeholders on every project include:

Managing stakeholder expectations is difficult because stakeholders often have very different objectives that may come into conflict. For example:

The manager of a department that has requested a new management information system may desire low cost, the system architect may emphasize technical excellence, and the programming contractor may be most interested in maximizing its profit.

ORGANIZATIONAL STRUCTURE

SOCIAL-ECONOMIC-ENVIRONMENTAL INFLUENCES

A standard is a document approved by a recognized body, that provides, for common and repeated use, rules, guidelines, or characteristics for products, processes or services with which compliance is not mandatory!

A regulation is a document, which lays down product, process or service characteristics, including the applicable administrative provisions, with which compliance is mandatory!

Time-zone differences, national holidays, travel requirements, etc

Demographic, educational, ethical, religious and other areas of practice

Organizations are increasingly accountable for impacts resulting from a project’s outcome.

PROJECT MANAGEMENT PROCESSES

IPECC

Project management processes can be organized into five groups of one or more processes each:

Closing processes—formalizing acceptance of the project or phase and bringing it to an orderly end.

Project Versus Program

According to the MPM and IPMC:

A project is a temporary endeavor undertaken to create a unique product or service.

A project exists only after a decision has been made to address a specific business need, either internal or external (customer need) to the organization, funding is available to support its execution, and measurable goals and objectives are well defined. Without knowing the expected results, quality level or capability of the end product, a project is difficult to plan, execute or conclude.

A project is temporary in that there is a defined start (the decision to proceed) and a defined end (the achievement of the goals and objectives). Ongoing business or maintenance operations are not projects. Process improvement efforts that result in better business processes or more efficient operations can be defined as projects.

Figure 0.1 depicts the process flow of a project.

Figure 0.1: Project Process Flow

In most organizations, there is a descending hierarchy of endeavors ranging from the strategic plan to programs, projects, and subprojects. According to the PMEPG:

A program is a group of projects managed in a coordinated way to obtain benefits not available from managing them individually.

A program should consist of several associated projects contributing to the achievement of the strategic plan. Programs may also contain elements of ongoing operations.

Another means of grouping programs/projects for better management visibility and more effective decision-making is through Project Portfolio Management. This refers to the selection and support of projects from an enterprise perspective based on how they relate to the Strategic Plan. Programs/projects are ranked based on their return on investment (ROI) and their contribution to the achievement of the Strategic Plan.

Project Management Life Cycle

Project management processes are organized into five process groups. Each process group either interacts with the other process groups within a system development phase or across phases. These process groups are known as initiating, planning, executing, controlling, and closing. As depicted in Figure 1.9, IPMC Project Management Framework, these processes may be repeated during any of the steps of the life cycle. For example, repeating the planning process during each phase helps to keep the project focused on the business need and cost, schedule, and performance objectives. The project management processes are not discrete, one-time events; they are overlapping activities that occur at varying levels of intensity throughout each phase of the project.

These process groups and their relationship are depicted in Figure 0.2. Also identified are nine areas of knowledge that could be applied to a given project.

Figure 0.2: Project Management Knowledge Areas

Project Management is an Iterative Process

The application of project management is an iterative process. For example, within the Planning Phase, several iterations of planning may occur as the team develops the optimal product solution for a customer. Identified solutions may require refinements to the schedule, the cost estimates, the quality requirements and/or the risk planning. As changes occur, the impact to other areas must be determined. Over time, the iterations should become smaller in magnitude and more defined as more detailed information is developed

After the initial Planning Phase has been completed, feedback from the Execution Phase (identified through the Controlling Phase) may results in adjustments to the project plan. Adjustments due to feedback typify the project management process. Project Management is a dynamic effort and requires a continual process of evaluation. Evaluation activities, such as oversight, quality control, and executive review are ongoing activities and affect every phase of the project.

Initiating

Initiating is the conceptual element of project management—the basic processes that should be performed to get the project started. This starting point is critical because those who will deliver the project, those who will use the project, and those who have a stake in the project need to reach an agreement on its initiation. Involving all stakeholders in the project phases generally improves the probability of satisfying customer requirements by garnering the buy-in and shared ownership of the project by the stakeholders. The basic processes for the initiation phase are: