Project Management Introduction (PMBOK® Guide Sixth Edition) Transcript 27/05/20, 6:46 PM

Project Management Introduction (PMBOK®

Guide Sixth Edition)
If you're responsible for managing projects, understanding the project basics is essential. Project
management is affected at every stage by the organization, the social environment, the project
stakeholders, and many other aspects of the context in which the project is carried out. This training helps
you understand what you need to know before planning begins. This course covers key project
management concepts and terms, and provides information about the variables that can influence project
outcomes.

This course will assist learners in preparing for the PMI® PMP® and CAPM® certification exam.

Table of Contents
1. Project Management Introduction (PMBOK® Guide Sixth Edition)
2. Project Characteristics
3. Project Manager Responsibilities
4. Project Management Competencies
5. Portfolios and Programs
6. Project Stakeholder Roles
7. Stakeholders within the Organization
8. Organizational Culture Influence
9. Environmental Influences and Process Assets
10. Organizational Structure Types
11. Agile Considerations

Project Management Introduction (PMBOK® Guide Sixth

Edition)
[Course title: Project Management Introduction (PMBOK® Sixth Edition). The presenter is Barbara
Waters | PMP. Materials in this course are based on the text A Guide to the Project Management Body of
Knowledge (PMBOK® Guide)-Sixth Edition, Project Management Institute, Inc., 2017. PMBOK, PMI,
PMP, CAPM are registered trademarks of the Project Management Institute, Inc.] Project-based
operations have become the norm in today's business world. And it's crucial to choose a good and proven
method for managing projects. Every aspect of project management is affected by the organization, the
social environment, the project stakeholders, both internal and external, and many other aspects of the
context in which the project is carried out. Understanding this context is critical to good planning and
good decision making as the project progresses toward achieving its objectives.

Project Characteristics
[Topic title: Project Characteristics. Materials in this course are based on the text A Guide to the Project
Management Body of Knowledge (PMBOK® Guide)-Sixth Edition, Project Management Institute, Inc.,
2017. PMBOK, PMI, PMP, CAPM are registered trademarks of the Project Management Institute, Inc.]

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Project Management Introduction (PMBOK® Guide Sixth Edition) Transcript 27/05/20, 6:46 PM

Projects make up almost half of the work that most organizations do. Organizations use projects to help
meet their strategic goals. In terms of strategic goals, projects may help an organization meet changes in
market demands, customer requests, or organizational requirements. They may also help an organization
make the most of technological advances or meet legal requirements. So projects form an important role
in organizations. But what exactly is a project, and how is it any different from other types of work? First,
a project is work that produces a unique product, service, or result. Second, a project has a temporary
duration. It has a definite beginning and an end. Although projects are temporary, they are not necessarily
short lived. A project's life span can vary from a few days to several years. The key is that a project has a
set beginning and an end point. Progressive elaboration is a characteristic of a project. When a project
starts, you're unlikely to know all the details required for its success. However, you will have an idea of
the required end result. Progressive elaboration involves clarifying and refining a project over time.

Project teams continuously improve and adjust project plans as more information becomes available. As a
project manager, you need to understand how these adjustments affect project timelines and budgets. This
knowledge assists with decision making for the project. Progressive elaboration should not be confused
with scope creep. Scope creep happens when there are unwanted and uncontrolled changes to a project.
Uncontrolled means they are made without addressing the effects of the changes on other aspects of the
project, such as resource use or customer expectations. The same issues that might trigger scope creep,
such as customer requests and resource changes, actually trigger progressive elaboration when a project is
properly managed. Project managers must be on the lookout for issues and new information that must
result in updates to plans. Almost any change to the scope of a project affects its budget and schedule. So
the project team and the customer need to discuss and agree on changes before they take any action. The
work that organizations do on a day-to-day basis is either operational work or project work. You need to
be able to distinguish between these types of work. As I mentioned, project work is temporary, unique,
and finished when specific objectives have been met. For example, when you develop training material to
update supervisor skills, you are undertaking project work.

The creation of the Hoover Dam and the discovery of the polio vaccine were the results of projects. Other
examples of projects are restructuring an organization, writing a specific grant proposal, running a
campaign for the mayor's office, or designing a new space shuttle. Operational work is ongoing and
repetitive. Its purpose is to keep a business going. The objectives for this type of work may change
frequently. An example of operational work is submitting a monthly expense report. The objectives for
each report differ, but the report submission itself is repeated each month for an indefinite period. Other
examples include a candy manufacturer's continual production of licorice flavored hard candies, an
accountant's maintenance of balance sheets, and a supervisor's development of daily work plans.
Operational work is as necessary as project work. It ensures organizations can thrive and last. Without
operations, organizations cannot function. And projects are critical because they allow the organization to
meet specific strategic goals.

Project Manager Responsibilities

[Topic title: Project Manager Responsibilities. Materials in this course are based on the text A Guide to
the Project Management Body of Knowledge (PMBOK® Guide)-Sixth Edition, Project Management
Institute, Inc., 2017. PMBOK, PMI, PMP, CAPM are registered trademarks of the Project Management
Institute, Inc.] Project management is an important skill in business today. But what does it take to
manage a project? To be successful and meet a project's requirements, you need to apply knowledge,
tools, skills, and techniques. Here are few of your fundamental duties as a project manager.

[Accomplish a Project's Objectives] Projects aim to achieve specific objectives in order to produce a
unique product, service, or result. You want to accomplish a project's objectives within budget and on

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Project Management Introduction (PMBOK® Guide Sixth Edition) Transcript 27/05/20, 6:46 PM

schedule.

[Balance Stakeholders' Expectations] As a project manager, you're responsible to your stakeholders.

You're also responsible for ensuring a project meets its objectives. You can do both only when you
balance expectations with objectives. You need to keep expectations realistic and in line with a project's
objectives.

You update project plans throughout a project as part of progressive elaboration. As you gather more
accurate estimates and information, you need to adjust project plans to include these details.

You need to balance the competing demands of the budget, schedule, quality, and scope. A change in one
of these interdependent factors impacts the others. For example, if the budget is cut, a project is likely to
take longer. And you may need to compromise on the level of quality or reduce its scope.

I'm going to use an example to illustrate. Say you're a project manager for a cosmetics company. Your
company is planning to provide its salespeople with remote access to sales order and customer
information. Your primary role is to ensure that the objective is met, that your salespeople can access sales
order and customer information by the end of the project. You need to achieve this on time and within
budget. So you keep these objectives in mind as you make daily decisions. You oversee each aspect of the
project, from ensuring that the databases can handle the expected traffic to ensuring that the training that
you are developing is adequate. One day last week, the sales manager informed you that he expects 100%
server availability, and for all orders to be processed on the same day they are made. You need to explain
to him why this isn't possible.

This kind of chat is always a delicate task. Because you have to bring stakeholders' expectations in line
with what is really possible without causing them to lose confidence in the real benefits of the project.
And then today, you discover that developing the training material for the sales force would take two
weeks longer than you'd expected. Now you need to rework plans to accommodate this without allowing
the delay to have too much of an impact on the budget. Things like that happens all the time during
projects. So maybe when you try to balance the impact of this delay on other training criteria, you find
that you can reduce the scope of the training. This has an impact on quality. But it is an acceptable
compromise given the cost of the delay. This also shows you how progressive elaboration looks in real
life. As information becomes available, you need to make changes and adapt your plans. Hopefully, this
little scenario gives you a bit of a glimpse into the daily life and responsibilities of a project manager.

So in summary, as a project manager, your responsibility is to meet project objectives, balance

stakeholders' expectations, update project plans. And balance the changing demands of a project's budget,
schedule, quality, and scope.

Project Management Competencies

[Topic title: Project Management Competencies. Materials in this course are based on the text A Guide to
the Project Management Body of Knowledge (PMBOK® Guide)-Sixth Edition, Project Management
Institute, Inc., 2017. PMBOK, PMI, PMP, CAPM are registered trademarks of the Project Management
Institute, Inc.] Corporate performance relies heavily on the success of projects. So executives are
beginning to focus more closely on hiring project managers who have the required competencies and
personal attributes that will make them successful. As a project manager, your value is assessed in terms
of what you know, what you can do, and what you are like. From this, you can infer three types of
competencies, knowledge-based, performance-based, and personal competency. Project management
knowledge competency includes knowing project management techniques, processes, and standards. The

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Project Management Introduction (PMBOK® Guide Sixth Edition) Transcript 27/05/20, 6:46 PM

Guide to the Project Management Body of Knowledge, abbreviated as the PMBOK® Guide, is the most
widely distributed source of knowledge about project management. The Project Management Institute,
also known as PMI®, uses the PMBOK® Guide as a global standard for the project management
profession. The PMBOK® Guide is also a significant resource for those seeking a Project Management
Professional, or PMP®, certification. The PMBOK® Guide provides information on ten knowledge areas
for project management.

The knowledge areas relate to the management of project integration, scope, schedule, cost, quality,
resources, communications, risk, procurement, and stakeholders. As a project manager, you need to know
what the stages of a project are and the best practices for applying each knowledge area. For example, you
need to know how to document and distribute information about the project, how to procure materials
effectively, and how to manage schedules and quality. You also need to know about cost and risk
management and the best practices for managing stakeholders within a project environment. Finally, you
need to know how to use project management tools such as budgets, risk analyses, Pareto diagrams, and
schedules. Project management performance competencies include your qualifications for the job and
your experience. They are based on skills that you bring to the table as a project manager. The usual
reference for determining a project manager's qualifications and experience is a resume. Employers
generally look for experience on similar projects in similar organizations, and are interested in the success
of those projects.

In terms of performance-based competencies, employers need to consider the types of things a project
manager is able to do. For example, are you able to develop a project budget? Schedule project resources
properly? Perform a risk assessment and effectively mitigate risk? In other words, performance-based
competency depends on how you can put what you know into practice. Who you are affects how you
perform, which brings us to personal competencies. This area of competency is about things like your
motives, attitude, values, and self-concept. Each personal competency relates to aspects of your character
that affect how you apply your knowledge and skills. People with different personality traits may apply
knowledge and practices differently, but still achieve similar results. However, there are specific personal
competencies that a project manager should have. Successful project managers can manage changes as a
project develops. Because they're innovative and willing to take calculated risks. You need to find creative
solutions for problems that arise as a project develops. You also need to find flexible ways of responding
to unexpected changes, even when this involves some risk. Another personal quality of a good project
manager is the ability to get things done. This means you should be able to ensure that effort is sustained
from the start of a project to its end. You need to be able to put plans in motion.

Then, you must make sure that people remain motivated so that plans are carried out effectively. To be
able to do this, you need to move between focusing on details to focusing on the big picture. People skills
are a third personal competency. You need leadership ability, good communication skills, and the ability
to negotiate and to persuade. As a project manager, you communicate with and motivate your team. You
negotiate with the suppliers during the procurement phase. You also persuade stakeholders to approve
budgets and to accept changes to project plans and scope. So in summary, successful project managers are
generally those who have detailed knowledge of project processes, tools, and requirements. They also
have relevant experience and know how to perform the tasks required in a project. These managers can
use their leadership and communication skills to ensure that everyone remains on board.

Portfolios and Programs

[Topic title: Portfolios and Programs. Materials in this course are based on the text A Guide to the
Project Management Body of Knowledge (PMBOK® Guide)-Sixth Edition, Project Management Institute,
Inc., 2017. PMBOK, PMI, PMP, CAPM are registered trademarks of the Project Management Institute,

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Project Management Introduction (PMBOK® Guide Sixth Edition) Transcript 27/05/20, 6:46 PM

Inc.] To really understand how a project works, you need to understand the project within its context in an
organization. Organizations group work in ways that enable them to manage it more efficiently. Typically
groups of work are classified as portfolios, programs and projects. This context affects everything that
happens in a project, from the nature of the product, to how the work is planned, to how resources are
applied. A portfolio is a collection of projects, programs and ongoing work. They're created to make it
easier to manage work in a way that ensures strategic business objectives are met. Portfolio managers are
expected to identify, authorize, manage, prioritize, and control projects and programs within their
portfolios. Organizations run portfolios based on their strategic goals. For example, if a company has a
strategic objective of increasing its reputation as ecologically friendly, it may have a portfolio to reflect
this.

A program is essentially a group of related projects and ongoing work that is centrally managed.
Managers use this structure to obtain additional benefits and control. Placing related projects and ongoing
work in a single program enables better management of schedules, priorities and shared resources. It
ensures more consolidated control of related work. Programs increase management control because
projects also feed back to programs. You can identify a change to one project and then adjust all affected
projects and ongoing work accordingly. Projects contribute to consolidated program benefits, as well as
generating discrete benefits. For example, a project to create the next generation of cellphone could
generate the discrete benefit of increased sales. Together with marketing and the creation of another type
of product, the project could also contribute to the consolidated benefit of increasing market share for a
company.

Project Stakeholder Roles

[Topic title: Project Stakeholder Roles. Materials in this course are based on the text A Guide to the
Project Management Body of Knowledge (PMBOK® Guide)-Sixth Edition, Project Management Institute,
Inc., 2017. PMBOK, PMI, PMP, CAPM are registered trademarks of the Project Management Institute,
Inc.] Managing a project isn't just about managing work. It's also about managing work in relation to
people's expectations. All projects involve people with interests and priorities in the project. These people
are known as stakeholders. A stakeholder is a person or organization that is affected by a project or that
influences the project. Examples of stakeholders are the project sponsor, vendors or business partners, the
project manager and team, and customers or end users. The stakeholders outside your project team whom
you'll need to work with most closely are customers or users, the project sponsor, vendors or business
partners, and operational stakeholders. To do this well, you need to understand these stakeholders'
responsibilities. Customers or users provide key information about what the scope and result of a project
should be. They may also be involved in testing the product or service. Because ultimately, a project aims
to create something that will please the customer or user. The feedback from customers can identify
potential risks and problems. Customers are also often expected to respond to issues that arise during the
project life cycle. The project sponsor champions a project at its outset, develops the initial project scope
and charter, and authorizes the start of the project.

The sponsor also provides project resources, including financial resources. The project sponsor bears
ultimate responsibility for the project's success. This means that the sponsor may be expected to remove
roadblocks, provide guidance and feedback, encourage the team, authorize major changes in scope, and
have the final say in high risk decisions. Sponsors are also typically responsible for communicating with
senior management on behalf of the project manager. Vendors, also called sellers, carry out all contracts
and duties as subcontractors according to agreed levels of quality and professionalism. Business partners
provide specialized expertise or services such as installation, customization, training, or after-sales
support. Both groups may interact with the project team and customer or user groups. Operational
stakeholders include any employees who perform or manage business operations, but who may be

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involved in or impacted by the project. Examples include plant operators, help desk staff, customer
service representatives, salespeople, maintenance workers, call center personnel, line managers, and
training officers. Suppose you're managing an internal project where the product will be used by someone
within your organization. Who is your customer then?

Say it's a project to provide the sales team with remote access to customer information and sales records.
The customers in this case are the members of the internal sales team. The vendor would be a software
development company that is customizing remote software for the sales team. Its role is to provide the
software on time and within specifications. The project sponsor is your company's VP of sales. Initially,
his role is to champion the project, define its initial scope, and provide sufficient resources and funds to
carry out the project. There are several operational stakeholders in this project. First of all, there are the
training officers who will train salespeople on using the new program. There are also quality specialists
who will test the new product throughout development, and other administrations personnel. The project
manager and team have the most hands-on roles in a project. So it's vital that they have a clear and
accurate understanding of their roles and responsibilities. The role of team members is to work and
communicate well together. They need to accept and work with the strengths and weaknesses of each
member. They should also be aware of how their work affects others on the team. The team needs to
commit to producing quality work while meeting project deadlines. A project manager's role is a high-
profile one that changes over the course of a project. From planner to overseeing execution of the work,
measuring, monitoring and reporting, you act as the interface between all stakeholders for the project. So
you need excellent communications skills as well as the ability to motivate, persuade, and negotiate. As a
project manager, you are in charge of all aspects of a project and are responsible for its success. In
summary, project stakeholders within and outside an organization can have a major impact on a project
and its potential for success. Key stakeholders include the project sponsor, customers and users, vendors,
business partners, operational stakeholders, and the project manager and team.

Stakeholders within the Organization

[Topic title: Stakeholders within the Organization. Materials in this course are based on the text A Guide
to the Project Management Body of Knowledge (PMBOK® Guide)-Sixth Edition, Project Management
Institute, Inc., 2017. PMBOK, PMI, PMP, CAPM are registered trademarks of the Project Management
Institute, Inc.] In this topic, we're going to look at a few types of stakeholders you may encounter within
your organization. Some of these people and groups who operate from within your organization may
contribute to or threaten your project. At the executive level, your company may have a Project
Management Office, also known as the PMO. The responsibilities of a PMO can range from providing
project management support functions to directly managing a project. Generally, a PMO is responsible for
managing and coordinating shared resources, risks, policies, and documentation among projects. It may
audit a project to monitor its compliance with project management standard policies, procedures, and
templates. The Portfolio Review Board provides additional support for project selection and prioritization.
The board reviews projects in terms of their value, risks, and likely return on investment. In addition, the
board often responds to external opportunities, such as tenders or requests for proposals. A portfolio
manager is responsible for the overall management and control of a group of projects and programs. A
sponsor can be both a project and an organizational stakeholder.

As a member of the project team and of upper management, the sponsor can act as a liaison between the
two. The project sponsor is particularly interested in project governance. Which is the alignment of the
project's objectives with those of stakeholders and the organization. It ensures that the decisions made by
the project manager will satisfy both stakeholder expectations and organizational strategic objectives.
Program managers are responsible for managing and controlling groups of related projects. These
managers provide support and guidance to project managers. But a program manager's main interest is

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achieving program benefits, rather than individual project benefits. Unlike project managers, functional
and operational managers are responsible for ongoing work and permanent teams. However, they interact
closely with project managers and their teams. Functional managers oversee administrative functions
rather than the core operational work of a business. They're responsible for providing services directly to
project teams. They generally have no interaction with other project stakeholders. The services a
functional manager provides depend on the manager's functional area. For example, HR managers provide
human resource services and finance managers provide financial services. Operational managers oversee
the divisions of the company that directly produce and maintain products or services. They generally
provide a project with skilled employees who possess the required technical experience or knowledge for
the project.

Organizational Culture Influence

[Topic title: Organizational Culture Influence. Materials in this course are based on the text A Guide to
the Project Management Body of Knowledge (PMBOK® Guide)-Sixth Edition, Project Management
Institute, Inc., 2017. PMBOK, PMI, PMP, CAPM are registered trademarks of the Project Management
Institute, Inc.] Projects do not occur in isolation. They are created and run within the context of an
organization. One of the key factors within an organization that you need to be aware of as a project
manager is organizational culture. Organizational culture can be difficult to define. To understand it better,
you need to know its elements. The values of an organization filter down from its vision and mission
statements, the publicly announced principles and values that it aims to achieve. Examples of these are
friendly service, product quality or product innovation, and price leadership. These values affect how
project work is done because they set underlying priorities for the work. As groups work together,
employees develop a set of implied or unwritten rules, values, and standards about how things should be
done. A particular language or way of communicating also develops. These beliefs and practices are
known as company norms. Norms can vary from a shared idea that employees bring cake to the office on
their birthdays to the shared idea that employees will work all night at the office to meet a deadline.
Newcomers need to learn these rules before they are fully accepted as members of the organization.

Beliefs are the shared meanings developed by a group working together. They include both habits of
thinking and of speaking. So an organization may use particular jargon when talking about work, and may
share the belief that quality work is rewarded. How a group characterizes itself and its beliefs about the
world and the working environment can deeply affect how tasks are performed. It also affects how people
within the team prefer to be managed. Informal policies and procedures are those unwritten rules that the
members of an organization are expected to follow. You won't find them in the new employee orientation
manual.

They include the broad ideological principles that guide how a group interacts with employees, customers,
and other stakeholders. Then there are the rules about how to really get things done around here. Some
procedures may be explicit, while others are implicit. For example, it may be common knowledge that to
get something approved, you need to go to a particular senior manager first, rather than to the person
outlined in the organizational chart. How an organization or project team views authority will affect
communication between upper management, the project manager, and the project team. For example, if
members of the project team respect the project manager's authority, it becomes easier to ensure work is
done on time and according to specifications. Getting timely feedback on how the project is going helps
the project manager to be aware of issues that threaten the success of the project. Here's an example of
how things can go south in a hurry if you're not aware of the culture. A hospital requires a hospital
management information system to automate its day-to-day activities. Tracy is hired as the project
manager.

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The decision to hire outside of the organization was an unpopular one. And the project team actively
resists Tracy's authority. Because the members of the project team don't respect Tracy's authority, she's
likely to find it difficult to get the work done on time and to specification. Then, the resistance results in
communication problems. Tracy first notices a problem when she doesn't get timely feedback on how the
project is going. As a result, she is unaware of project issues that could jeopardize the success of the
project. And because of the lack of communication, nobody is telling Tracy about the unwritten rules. One
of the organizational norms that Tracy is not aware of is the rule about flex time. To try to gain some
control, she enforces a strict nine-to-five schedule. And this further damages team morale, which
negatively impacts the project. Culture arises from the accumulated shared learning of a group.

So coming in from the outside can be difficult. If you are assigned to manage an existing team, the first
thing you need to do is get a handle on the culture. And if you're already a part of the organization and its
culture, your beliefs and ways of doing things may be so ingrained that they are difficult to define or
communicate. Be aware of this fact as you welcome new members on board. The aspects of
organizational culture that will influence a project include values, norms, and beliefs, informal policies
and procedures, and organizational views of authority.

Environmental Influences and Process Assets

[Topic title: Environmental Influences and Process Assets. Materials in this course are based on the text A
Guide to the Project Management Body of Knowledge (PMBOK® Guide)-Sixth Edition, Project
Management Institute, Inc., 2017. PMBOK, PMI, PMP, CAPM are registered trademarks of the Project
Management Institute, Inc.] Project managers and members of project teams must understand the factors
or conditions that may affect project outcomes. In addition to organizational culture, there are two other
items that contribute to a project and how it's managed. In this topic, I'm going to talk about enterprise
environmental factors and organizational process assets. These two terms might seem like a mouthful
now. But you will become very familiar with them as you learned about all the project management
knowledge areas. Since they are often listed as two of the inputs to the project management processes.
Enterprise environmental factors are almost always outside the control of the project team. That is why
being aware is essential to identifying potential risks and requirements. The term enterprise environmental
factors conveys the two directions from which these factors originate. First of all, they can be from within
the enterprise or organization.

Examples include the organizational structure with its lines of authority, personnel and administrative
policies, technology use to manage projects such as databases and scheduling software. Influencing
factors may also originate from the external environment. Examples include government or industry
standards, conditions in the marketplace that determine consumer attitudes and competition, the economy,
and the sociopolitical situation of the area in which the project will be carried out. An organization's
history determines its structure and culture. It also determines the available process assets that can
contribute to the success of a project. Processes and procedures are one category of process assets. This
category includes, plans created for the project as a whole, as well as specialized plans such as budget and
risk-response plans. Standard processes including company policies and processes for product and project
life cycles.

Standard procedures including guidelines, work instructions, proposal evaluations, and performance
criteria. Templates including general project tools such as risk templates, work breakdown structures, and
schedule network diagrams. The corporate knowledge base is made up of historical data on projects
completed in the past. Organizations often have information stores containing past measurements related
to processes, products, and finances. These are generally held in project files and records. They also store
information on past project issues and defects, in what are known as lessons learned knowledge bases.

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Project Management Introduction (PMBOK® Guide Sixth Edition) Transcript 27/05/20, 6:46 PM

Organizational Structure Types

[Topic title: Organizational Structure Types. Materials in this course are based on the text A Guide to the
Project Management Body of Knowledge (PMBOK® Guide)-Sixth Edition, Project Management Institute,
Inc., 2017. PMBOK, PMI, PMP, CAPM are registered trademarks of the Project Management Institute,
Inc.] Organizational structure is one of the key influences on a project. Lines of a authority and reporting
structures impact everything from how decisions are made to loyalty team members feel to the project
manager. Two basic organizational structures are projectized and functional. [Two organizational
structures display, which are Functional and Projectized. The Functional organizational structure is
displayed on the left-hand side of the screen wherein the chief executive has three functional managers
under him and each functional manager has three staff members under him. The Projectized
organizational structure is displayed on the right-hand side of the screen wherein the chief executive has
three project managers under him and each project manager has three staff members under him. The
figure is captioned as Figure 2-1: Functional Organization (left), Figure 2-5: Projectized organization
(right) Project Management Institute, A Guide to the Project Management Body of Knowledge,
(PMBOK® Guide) - Sixth Edition, Project Management Institute Inc., 2017, Pages 22 and 25.] In a
classic projectized organization, project team members are typically located in the same office. Project
managers tend to have high levels of independence and authority. And a majority of the organization's
resources are involved in project work. These organizations may have units termed departments that
provide centralized administrative support. However, these generally report directly to the project
manager. In a classic functional organization, each employee has one clear superior to report to.
Employees are divided according to their specializations. For example, marketing, engineering, or finance.
Each functional department works separately from the other departments and completes its project tasks
independently. A range of project characteristics are directly affected by the organizational structure. [A
table displays. It contains ten rows and six columns. The ten row headers are Organic or Simple,
Functional (centralized), Multi-divisional (may replicate function for each division with little
centralization), Matrix- strong, Matrix - weak, Matrix - balanced, Project-oriented (composite, hybrid),
Virtual, Hybrid, and PMO*. The table is captioned as Table 2-1: Influences of Organizational Structures
on Projects Project Management Institute, A Guide to the Project Management Body of Knowledge,
(PMBOK® Guide) - Sixth Edition, Project Management Institute Inc., 2017, Page 47.] Project managers
have very little authority in functional structures and almost complete authority in projectized structures.
In functional organizations, project managers must work through the functional manager in order to
achieve project objectives.

This slows decision making for the project. Project resources are readily available in projectized structures
but availability in functional structures is very low. This is because all resources need to be approved via
functional managers first. This limits the scope of the project and adds bureaucracy to recourse requests.
In functional organizations, the functional manager is in charge of the budget. Whereas in projectized
structures, this control is in the hands of the project manager. When the project manager is in charge of the
budget, the project is able to access resources more quickly. The project manager's role is typically part-
time in functional organizations. And full-time in projectized organizations. This is largely due to the
amount of responsibility and accountability that project managers have in either of these structures. Part-
time managers can achieve less and take longer to do so. Administrative staff tend to be part-time in
functional and full-time in projectized organizations. Because of different workload distribution. Part-time
staff limits support for project management. The optimal organizational structure is one that combines the
functional and projectized structures. [An optimal organizational structure displays. The Chief Executive
is divided into a Project manager and a Functional Manager. Both the managers are sub-divided into
Project staff, Shared staff, and Staff.] This is called a matrix structure. This blend minimizes the problems
and maximizes the benefits of both structures. There are three types of matrix structures. [A Weak Matrix
Organization structure displays. The Chief Executive is divided into three functional managers. All of the

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three functional managers are further sub-divided into three staff members each. The last staff member
under each manager is considered weak.The figure is captioned as Figure 2-2: Weak Matrix Organization
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK®
Guide) - Sixth Edition, Project Management Institute Inc., 2017, Page 23.] A weak matrix organization is
still very similar to a functional structure, but allows for some degree of project coordination and a use of
personnel from various departments to staff projects. A balanced matrix organization is also very similar
to a functional organization. [A Balanced Matrix Organization structure displays. The Chief Executive is
divided into three functional managers. One of the functional manager is sub-divided into two staff
members and one project manager. The other two functional managers are sub-divided into three staff
members each. The last staff member under two managers and the project manager under the third
manager are considered balanced. The figure is captioned as Figure 2-3: Balanced Matrix Organization
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK®
Guide) - Sixth Edition, Project Management Institute Inc., 2017, Page 24.]

This organization allows for project managers, however, they report to functional managers. This greatly
limits the project manager's decision making authority and control over funding. The strong matrix
organization is most similar to the projectized structure. [A strong matrix organization structure displays.
The Chief Executive is divided into three Functional Managers and one Manager of Project Managers.
Each of the three Functional Managers is sub-divided into three staff members each. The Manager of
Project Managers is sub-divided into three Project managers. The last staff member under each
functional manager and the last project manager under manager of project managers are considered
strong. The figure is captioned as Figure 2-4: Strong Matrix Organization Project Management Institute,
A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Sixth Edition, Project
Management Institute Inc., 2017, Page 24.] There are still functional managers with staff, but there are
also full-time project managers with a direct reporting line to upper executives. In most cases,
organizations involve a blend of organizational structures at various levels and at various times. A range
of project characteristics are directly affected by whether an organization is a weak, balanced, or strong
matrix. [The Influences of Organizational Structures on Projects table displays.The following three rows
are displayed: Matrix - strong, Matrix - weak, and Matrix - balanced. The table is captioned as Table 2-1:
Influences of Organizational Structures on Projects Project Management Institute, A Guide to the Project
Management Body of Knowledge, (PMBOK® Guide) - Sixth Edition, Project Management Institute Inc.,
2017, Page 47.] Project managers have limited authority in weak matrix structures. However, the
authority level rises as you move to a strong matrix structure. Project managers have limited to moderate
access to resources in weak and balanced matrix structures. This is because all resources need to be
approved via functional managers first. In a strong matrix, project managers may have high access to
resources. In weak matrix organizations, the functional manager is in charge of the budget. Whereas in
strong matrix structures, this control is in the hands of the project manager. In a balanced matrix, the
control is shared. The project manager's role is typically part-time in weak matrix organizations and full-
time in strong matrix organizations. Administrative staff tend to be part-time in weak and balanced, and
full-time in strong matrix organizations, because of different workload distribution. Part time staff limits
support for project management. In summary, the ideal organizational structure is a matrix organization.
Which is a combination of functional and projectized. The project manager's role, authority, and access to
resources depends on which structure is used.

Agile Considerations
[Topic title: Agile Considerations. Materials in this course are based on the text A Guide to the Project
Management Body of Knowledge (PMBOK® Guide)-Sixth Edition, Project Management Institute, Inc.,
2017. PMBOK, PMI, PMP, CAPM are registered trademarks of the Project Management Institute, Inc.]
Many organizations are adapting agile project methodologies. Agile has characteristics that are unique in

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Project Management Introduction (PMBOK® Guide Sixth Edition) Transcript 27/05/20, 6:46 PM

terms of how projects can be managed. In traditional project management, the phase to phase relationship
is sequential. One phase is fully completed before the next phase starts. Predictive life cycles are plan-
driven. And change is not encouraged except as a way to prevent defects or correct nonconforming project
work. Agile projects on the other hand, are characterized by iterative and incremental life cycles. The
phases overlap with one phase starting before the previous phase finishes. This can speed up the project,
but may also result in rework if issues are encountered. The scope is tentatively determined early in the
project. And then clarified as the project proceeds. This is called Rolling Wave Planning. When you think
about the differences between traditional and agile methodologies, think about trying to hit a target. The
bullseye of the target is a product that perfectly meets requirements and satisfies the customer. In
traditional project management, we take careful aim, planning thoroughly before we release the arrow. If
we miss the target, we revisit our plan to see what went wrong. Changes can add time and cost to our
project and we consider them an exception. In agile project management, we don't take any more time
planning than is necessary. We shoot the arrow quickly. Based on where the arrow hits, we make
adjustments and quickly try again. And if our customer decides that they would like to move the target,
we welcome that change and adjust to it. Because it will satisfy the customer in the end. These are two
very different ways of thinking. And each is appropriate for different types of projects. For instance, in
construction projects, a traditional approach is ideal. We certainly don't want to start digging a foundation
or pouring cement only to learn it wasn't what the customer envisioned. That would get expensive.
However, in knowledge-based or innovative projects, it may be harder to visualize the end product. Agile
methodologies can help bridge that gap by delivering incremental value quickly and reducing waste
through constant change.

In February 2001, 17 software development leaders who used a variety of different project management
methodologies, met to discuss a set of values and principles for software development projects. Together,
they published the Manifesto for Agile Software Development and identified four values. Individuals and
interactions over processes and tools. Working software over comprehensive documentation. Customer
collaboration over contract negotiation. And responding to change over following a plan. As part of the
Agile Manifesto, the group also outlined 12 principles. Number one, our highest priority is to satisfy the
customer through early and continuous delivery of valuable software. Number two, welcome changing
requirements even late in development. Agile processes harness change for the customer's competitive
advantage. Number three, deliver working software frequently from a couple of weeks to a couple of
months with a preference to the shorter time scale. Number four, business people and developers must
work together daily throughout the project. Number five, build projects around motivated individuals.
Give them the environment and support they need, and trust them to get the job done. Number six, the
most efficient and effective method of conveying information to and within a development team is face-
to-face conversation. Number seven, working software is the primary measure of progress. Number eight,
agile processes promote sustainable development. The sponsors, developers, and users should be able to
maintain a constant pace indefinitely.

Number nine, continuous attention to technical excellence and good design enhances agility. Number ten,
simplicity. The art of maximizing the amount of work not done is essential. Number 11, the best
architectures, requirements and designs emerge from self-organizing teams. And number 12, at regular
intervals, the team reflects on how to become more effective, then tunes and adjusts its behavior
accordingly. Just as agile methodologies differ from traditional project management, agile teams are also
structured in a unique way. Perhaps you've heard the term scrum. In rugby, scrum is when the players
pack closely together with their arms interlocked and their heads down in order to gain possession of the
ball. Similar to a rugby team, a scrum team works very closely and collaboratively. Scrum relies on co-
location, where teams are physically located together to maximize face-to-face communication. Scrum
teams are also self-directed and self-organized. Teams manage their own responsibilities and assignments
without oversight from managers. The ideal size of a scrum team is about seven members. Teams that
grow too large can lose efficiency and the effectiveness of co-location. The scrum roles include the

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product owner, who acts as the voice of the customer. The product owner creates what is called the
product backlog. The backlog is ordered by priority, and the focus is on delivering the highest value items
first. The Scrum Master is a servant leader. They facilitate the scrum process by removing impediments
and acting as a buffer between the team and any distracting influences. They often encourage the team and
ensure that the scrum framework is being followed. The Scrum Master may also be part of the
development team. The Development Team is the group responsible for doing the actual work in creating
the deliverables during each work increment or sprint. Depending on your project, or your organization,
you may adapt elements of agile for your project. Agile elements can be integrated very successfully
depending on the needs of your project and organizational readiness.

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