PMBOK® 7e Update for CPM 4e Chapter 1 Introduction to Project

Management

About every four- or five-years PMI updates their Standard for Project
Management and their Guide to the Project Management Body of
Knowledge (PMBOK® Guide).
These 2021 documents vary dramatically from those of 2017. The
previous ones were very prescriptive, describing specific processes by their
inputs and outputs. Those processes were grouped in the Standard for
Project Management in process groups of initiating, planning, executing,
monitoring and controlling, and closing. Those same processes were
grouped in the PMBOK® Guide in eight knowledge areas of managing
integration, scope, schedule, cost, quality, resource, communication, risk,
and stakeholder.
The Standard for Project Management is the officially recognized
document approved by the American National Standards Institute (ANSI).
The new version describes twelve principles that provide broad guidance
for understanding project management.
The PMBOK® Guide 7e (the 2021 document) operationalizes those
principles by describing eight performance domains that more directly give
guidance demonstrating how to plan and manage projects. It also includes
a section on tailoring projects that provides more guidance.
The seventh edition of these documents was released in July 2021. In
this introductory chapter, we will define briefly the twelve principles from
the Standard for Project Management along with the eight performance
domains and tailoring section from the PMBOK® Guide. Since the
PMBOK® Guide is meant to help apply the principles from the Standard, in
the remainder of this textbook, we will focus our coverage on the PMBOK®
Guide. A visual of the two documents is below.
 One final note is that the new version of both documents specifically
states that everything in the old documents is still valid. For that reason,
we will continue to use the flowcharts depicting the old PMBOK® Guide
and Standard, but we will point out in each chapter the impact the new
PMBOK® Guide 7e has.

Standard for Project Management ANSI/PMI 99-001-2021

The first major section describes a system for value delivery. This states
that projects are to create value for stakeholders. This is amplified later,
but the idea here is merely creating deliverables is not enough. The
purpose of projects is to create value by helping to solve problems and
achieve desired outcomes.

The remaining portion of the standard describes the twelve principles that
provide general guidance for behavior on projects. They do not provide
detailed, specific direction. The twelve principles are aligned with the PMI
Codes of Ethics and Professional Responsibility that stresses responsibility,
respect, fairness, and honesty. No principle violates another, but they may
overlap.

The twelve principles from section 3 are:

3.1 Be a diligent, respectful, and caring steward displaying integrity, care,
trustworthiness, and compliance.

3.2 Create a collaborative project team environment by means of team

agreements, organizational structures, processes, authority, accountability,
and responsibility.

3.3 Effectively engage with stakeholders using a proactive, two-way

engagement to improve project results and satisfaction.

3.4 Focus on value as understood by a successful outcome, solution to a

need, or satisfaction of a business case. Value can be assessed in terms of
worth, alignment, or delivering functionality and quality within risk and
resource levels.

3.5 Recognize, evaluate, and respond to system interactions in a holistic and

dynamic manner, integrating parts to create cumulative capabilities.
Harness a diverse team for a common objective.

3.6 Demonstrate leadership behaviors by creating a desired environment

and leading with vision. Use personal character, influence, motivation, role
modelling, transparency, and multiple leadership styles to continuously
improve. Foster shared responsibility and recognize that all people can
display leadership.

3.7 Tailor your delivery approach based on context using just enough
process, adapt to stakeholders, objectives, team, and environment.

3.8 Build quality into process and deliverables using both conformance to
acceptance criteria and fitness for use. Improve quality of deliverables and
processes, maximize the probability of desired outcome with little waste,
focus on detection and prevention.

3.9 Navigate complexity whether it comes from human behavior, system

behavior, ambiguity, uncertainty, interactions, or technological innovation.
Project teams may modify activities to address complexity impacts.

3.10 Optimize risk responses. Risk can be positive or negative, risk appetite
is the degree an organization is willing to accept, while the risk threshold is
a measure. Responses should be timely, cost effective, realistic, agreed to,
and owned.

3.11 Embrace adaptability and resiliency. Be adaptable to changing

conditions, resilient to setbacks or failure, and focus on outcomes. Use
change control, short feedback loops, continuous learning, transparent and
engaged planning, test ideas and approaches, and defer decision making.

3.12 Enable change to achieve the envisioned future state. Continually

evaluate benefits to stakeholders and engage them, enable users and
others, use motivational strategy rather than force, consider speed of
change, and reinforce change after implementation.

PMBOK® Guide 7e

1.0 Introduction
The introduction makes clear three major changes to the PMBOK® Guide.
First, the focus is on delivering successful outcomes, not merely creating
agreed-upon deliverables. This encourages project managers and teams to
use a relationship approach rather than a transaction approach to their
clients. Second, the structure describes project performance domains
which are groups of critical, related, even overlapping activities that are
needed on all projects throughout their life. Third, tailoring is the
thoughtful adaptation of approach, governance, and processes that should
be considered on all projects.
2.0 Project Performance Domains
2.1. Stakeholder Performance Domain
Desired outcomes include productive working relationship, agreement
on objectives, supportive and satisfied stakeholders, and ensuring that
opposition does not negatively impact the project. To achieve these desired
outcomes: create alignment and engagement; ID, understand, analyze,
prioritize, and engage stakeholders; and monitor their feelings, emotions,
beliefs, and values.

2.2. Team Performance Domain

Desired outcomes include shared ownership, a high-performing team,
leadership by all.
To achieve these outcomes: determine the appropriate amount of
centralized or distributed management and leadership, facilitation, and
servant leadership. Develop the project team by defining vision, objectives,
roles, team operations, growth, transparency, integrity, and respect. Use a
range of leadership skills, appropriate to the situation.

2.3. Development Approach and Life Cycle Performance Domain

Desired outcomes include the development approach, life cycle, and
phases to deliver value. To achieve these outcomes choose a predictive,
hybrid (iterative or incremental), or adaptive development approach based
upon the desired product, service, or result; project; and organization.
Phases should have exit criteria. If primary risk is from regulations use a
predictive approach, but if primary risk is from stakeholder acceptance use
an adaptive approach.

2.4. Planning Performance Domain

Desired outcomes include the project progresses as planned, a holistic
approach is used, evolving information is elaborated, an appropriate
amount of planning is used, stakeholder expectations are met, and there is a
process to adapt. To achieve these outcomes iterative or incremental
projects use epics, features, stories, and backlogs while predictive projects
use
estimating, scheduling, fast-tracking, and crashing, dependencies, leads,
lags, and budgets.

2.5. Project Work Performance Domain

Desired outcomes include efficient and effective performance and
appropriate processes to manage stakeholder engagement, physical
resources, procurement, change, and improvement. To achieve these
outcomes, establish and tailor processes; use audits to make them efficient
and effective; balance constraints and team and project needs; monitor and
integrate new work, changes, and risk; and capture and share both explicit
and tacit knowledge.
2.6. Delivery Performance Domain
Desired outcomes include projects contributing to business objectives,
realizing intended outcomes and benefits at an appropriate time frame,
team having a clear understanding of requirements, stakeholders accepting
and being satisfied with deliverables. To achieve these outcomes, define
business value and determine where and how it can be measured;
decompose scope; assure completion of deliverables; use quality costs; and
monitor moving targets.

2.7. Measurement Performance Domain

Desired outcomes include a reliable understanding of project status,
actionable data for decision-making, actions to keep performance on track,
achieving targets and generating business value. To achieve these
outcomes, use leading and lagging indicators. Metric types include
deliverable, delivery, baseline performance, resources, business value,
stakeholders, and forecast metrics. Adaptive projects also use throughput,
dashboards, information radiators, and visual controls. Metrics should have
thresholds beyond which corrective action is taken.

2.8. Uncertainty Performance Domain

Desired outcomes include environmental awareness, proactive
responses to uncertainty, awareness of interdependencies, ability to
anticipate risks, delivery with little negative impact, realized opportunities,
and reserves used wisely. To achieve these outcomes, consider and manage
uncertainty, ambiguity, complexity, volatility, and risk. Gather information,
prepare for multiple outcomes, investigate alternative designs, and build-in
resilience. Deal with complexity by decoupling, simulating, viewing from
diverse perspectives, balancing data used, iterating, engaging, and building
in redundancy. Deal with threats (negative risk) by avoidance, escalation,
transfer, mitigation, or acceptance. Deal with opportunity (positive risk) by
exploiting, escalating, sharing, enhancing, or accepting.

3.0 Tailoring
While the larger part of PMBOK® Guide 7e describes performance
domains, one other key section describes tailoring. A project team should
first select the developmental approach they wish to use and then tailor it
for both the organization and project. Then the team should implement
ongoing improvement. Tailoring can include a mix of agile and predictive
approaches. Process tailoring includes adding, modifying, removing,
blending, and aligning.
Engagement tailoring includes people, empowerment, and integration.
Tools, methods, and artifacts can also be tailored. Tailoring should consider
deliverables to be produced, project team, and culture. Each performance
domain can be tailored.

4.0 Models, Methods, and Artifacts (MMA)

4.1 Overview – This section demonstrates much of the “how to” of project
management and may be a useful reference.
A model is a thinking strategy.
A method is a means.
An artifact is a template, document, output, or deliverable (an output).
Avoid using any MMA that is duplicative, not useful, or misleading.
4.2 Commonly used models
Categories include situational leadership, communication, motivation,
change, complexity, team development, conflict, negotiation, planning,
process groups, and salience.
4.3 Mapping models to performance domains
4.4 Commonly use methods
Categories include data gathering and analysis, estimating, meetings
and events, prioritization, and other.
4.5 Mapping methods to performance domains
4.6 Commonly used artifacts
Categories include strategy, logs and registers, plans, hierarchy
charts, baselines, visual data and information, reports, agreements and
contracts, activity lists, bid documents, metrics, project calendar,
requirements documents, project team charter, and user stories.
4.7 Mapping artifacts to performance domains

While there is not one single, easy way to exactly map the new Standard for
Project Management and PMBOK® Guide, an approximate approach is
shown below. Stakeholders, risk, and tailoring match very well. Team and
leadership principles map to the team performance domain. A few of the
other principles seem to cluster in related groups. Stewardship, value, and
quality can form one cluster. Interactions and complexity form a second
cluster. Change and adaptability form a third cluster. On the PMBOK®
Guide, the five domains of approach, planning, work, delivery, and
measurement are all closely related with one generally flowing into the
next. All three clusters of principles from the Standard for Project
Management are partially operationalized by all five of the related domains.
The visual below shows these relationships.

Standard for Project Management PMBOK® Guide

7e
Principle Domains (plus Tailoring)
3.3 Stakeholders ------------------------------------------------- 2.1 Stakeholders

3.2 Team
3.6 Leadership --------------------------------------------------- 2.2 Team

3.10 Risk ----------------------------------------------------------- 2.8 Uncertainty

3.7 Tailor ---------------------------------------------------------- 3.0 Tailoring

3.1 Steward
3.4 Value --------------------------------------------------- 2.3 Approach
3.8 Quality
2.4 Planning
3.5 Interactions
3.9 Complexity ----------------------------------------------- 2.5 Work

3.12 Change 2.6 Delivery

3.11 Adaptability ---------------------------------------------
2.7 Measurement