Project Management Body of Knowledge

(PMBOK)
Lecture # 4
12 Principles of Project Management
▶ Be a diligent, respectful, and caring steward (see Section 3.1)
▶ Create a collaborative project team environment (see Section 3.2).
▶ Effectively engage with stakeholders (see Section 3.3).
▶ Focus on value (see Section 3.4).
▶ Recognize, evaluate, and respond to system interactions (see Section 3.5).
▶ Demonstrate leadership behaviors (see Section 3.6).
▶ Tailor based on context (see Section 3.7).
▶ Build quality into processes and deliverables (see Section 3.8).
▶ Navigate complexity (see Section 3.9).
▶ Optimize risk responses (see Section 3.10).
▶ Embrace adaptability and resiliency (see Section 3.11).
▶ Enable change to achieve the envisioned future state (see Section 3.12)
4 th Principle: Focus on Value
Value
• Value, including outcomes from the perspective of the customer or
end user, is the ultimate success indicator and driver of projects.
Value focuses on the outcome of the deliverables. The value of a
project may be expressed as a financial contribution to the
sponsoring or receiving organization. Value may be a measure of
public good achieved, for example, social benefit or the customer’s
perceived benefit from the project result. When the project is a
component of a program, the project’s contribution to program
outcomes can represent value.
Value
• Many projects, though not all, are initiated based on a business case.
Projects may be initiated due to any identified need to deliver or
modify a process, product, or service, such as contracts, statements
of work, or other documents. In all cases, the project intent is to
provide the desired outcome that addresses the need with a valued
solution. A business case can contain information about strategic
alignment, assessment of risk exposure, economic feasibility study,
return on investments, expected key performance measures,
evaluations, and alternative approaches. The business case may state
the intended value contribution of the project outcome in qualitative
or quantitative terms, or both. A business case contains at least these
supporting and interrelated elements:
Business Case
• A business case contains at least these supporting and interrelated elements:
• ▶ Business need. Business provides the rationale for the project, explaining why the
project is undertaken. It originates with the preliminary business requirements, which
are reflected in the project charter or other authorizing document. It provides details
about the business goals and objectives. The business need may be intended for the
performing organization, a client organization, a partnership of organizations, or public
welfare. A clear statement of the business need helps the project team understand the
business drivers for the future state and allows the project team to identify opportunities
or problems to increase the potential value from the project outcome.
• ▶ Project justification. Project justification is connected to business need. It explains why
the business need is worth the investment and why it should be addressed at this time.
The project justification is accompanied by a cost-benefit analysis and assumptions.
• ▶ Business strategy. Business strategy is the reason for the project and all needs are
related to the strategy to achieve the value.
Value
• Value is the worth, importance, or usefulness of something. Value is
subjective, in the sense that the same concept can have different
values for different people and organizations. This occurs because
what is considered a benefit depends on organizational strategies,
ranging from short-term financial gains, long-term gains, and even
nonfinancial elements. Because all projects have a range of
stakeholders, different values generated for each group of
stakeholders have to be considered and balanced with the whole,
while placing a priority on the customer perspective.
Value Engineering
• Within the context of some projects, there may be different forms of
value engineering that maximize value to the customer, to the
performing organization, or other stakeholders. An example of this
includes delivering the required functionality and level of quality with
an acceptable risk exposure, while using as few resources as possible,
and by avoiding waste. Sometimes, especially in adaptive projects
that do not have a fixed, up-front scope, the project team can
optimize value by working with the customer to determine which
features are worth investment and which may not be valuable
enough to be added to the output.
Value Realization
• To support value realization from projects, project teams shift focus from
deliverables to the intended outcomes. Doing so allows project teams to
deliver on the vision or purpose of the project, rather than simply creating
a specific deliverable. While the deliverable may support the intended
project outcome, it may not fully achieve the vision or purpose of the
project. For example, customers may want a specific software solution
because they think that the solution resolves the business need for higher
productivity. The software is the output of the project, but the software
itself does not enable the productivity outcome that is intended. In this
case, adding a new deliverable of training and coaching on the use of the
software can enable a better productivity outcome. If the project’s output
fails to enable higher productivity, stakeholders may feel that the project
has failed. Thus, project teams and other stakeholders understand both the
deliverable and the intended outcome from the deliverable.
Value Contribution
• The value contribution of project work could be a short- or long-term
measure. Because value contribution may be mixed with contributions
from operational activities, it may be difficult to isolate. When the project
is a component of a program, evaluation of value at the program level may
also be necessary to properly direct the project. A reliable evaluation of
value should consider the whole context and the entire life cycle of the
project’s output. While value is realized over time, effective processes can
enable early benefit realization. With efficient and effective
implementation, project teams may demonstrate or achieve such
outcomes as prioritized delivery, better customer service, or an improved
work environment. By working with organizational leaders who are
responsible for putting project deliverables into use, project leaders can
make sure that the deliverables are positioned to realize the planned
outcomes
5th Principle: RECOGNIZE, EVALUATE, AND
RESPOND TO SYSTEM
INTERACTIONS
System
• A system is a set of interacting and interdependent components that
function as a unified whole. Taking a holistic view, a project is a
multifaceted entity that exists in dynamic circumstances, exhibiting
the characteristics of a system. Project teams should acknowledge
this holistic view of a project, seeing the project as a system with its
own working parts.
• A project works within other larger systems, and a project deliverable
may become part of a larger system to realize benefits. For example,
projects may be part of a program which, in turn, may also be part of
a portfolio. These interconnected structures are known as a system of
systems. Project teams balance inside/out and outside/in
perspectives to support alignment across the system of systems.
System
• The project may also have subsystems that are required to integrate
effectively to deliver the intended outcome. For example, when
individual project teams develop separate components of a
deliverable, all components should integrate effectively. This requires
project teams to interact and align subsystem work on a regular basis.
Systems
• Systems thinking also considers timing elements of systems, such as what the
project delivers or enables over time. For example, if project deliverables are
released incrementally, each increment expands the cumulative outcomes or
capabilities of previous versions. Project teams should think beyond the end of
the project to the operational state of the project’s deliverable, so that intended
outcomes are realized.
• As projects unfold, internal and external conditions are continuously changing. A
single change can create several impacts. For example, on a large construction
project, a change in requirements can cause contractual changes with the
primary contractor, subcontractors, suppliers, or others. In turn, those changes
can create an impact on project cost, schedule, scope, and performance.
Subsequently, these changes could invoke a change control protocol for obtaining
approvals from entities in external systems, such as the service providers,
regulators, financiers, and government authorities.
Systems
• Systems thinking also applies to how the project team views itself and
its interactions within the project system. The project system often
brings together a diverse project team engaged in working for a
common objective. This diversity brings value to project teams, but
they need to consider how to leverage those differences effectively,
so that the project team works cohesively. For example, if a
government agency contracts with a private company for
development of a new technology, the development team may
consist of project team members from both organizations.
Systems
• The following skills support a systems view of the project:
 Empathy with the business areas;
 Critical thinking with a big picture focus;
 Challenging of assumptions and mental models;
 Seeking external review and advice;
 Use of integrated methods, artifacts, and practices so there is a common
understanding of project work, deliverables, and outcomes;
 Use of modeling and scenarios to envision how system dynamics may
interact and react; and
 Proactive management of the integration to help achieve business outcomes.
System
• Recognizing, evaluating, and responding to system interactions can lead to
the following positive outcomes:
 Early consideration of uncertainty and risk within the project, exploration
of alternatives, and consideration of unintended consequences;
 Ability to adjust assumptions and plans throughout the project life cycle;
 Provision of ongoing information and insights that inform planning and
delivery;
 Clear communication of plans, progress, and projections to relevant
stakeholders;
 Alignment of project goals and objectives to the customer organization’s
goals, objectives, and vision;
System
 Ability to adjust to the changing needs of the end user, sponsor, or
customer of the project deliverables;
 Ability to see synergies and savings between aligned projects or
initiatives;
 Ability to exploit opportunities not otherwise captured or see threats
posed to or by other projects or initiatives;
 Clarity regarding the best project performance measurement and
their influence on the behavior of the people involved in the project;
 Decisions that benefit the organization as a whole; and
 More comprehensive and informed identification of risks.
6th Principle: Demonstrate Leadership
Behaviors
Leadership
• Projects create a unique need for effective leadership. Unlike general
business operations, where roles and responsibilities are often
established and consistent, projects often involve multiple
organizations, departments, functions, or vendors that do not interact
on a regular basis. Moreover, projects may carry higher stakes and
expectations than regular operational functions. As a result, a broader
array of managers, executives, senior contributors, and other
stakeholders attempt to influence a project. This often creates higher
degrees of confusion and conflict. Consequently, higher performing
projects demonstrate effective leadership behaviors more frequently,
and from more people than most projects.
Leadership
• A project environment that prioritizes vision, creativity, motivation,
enthusiasm, encouragement, and empathy can support better
outcomes. These traits are often associated with leadership.
• Leadership comprises the attitude, talent, character, and behaviors to
influence individuals within and outside the project team toward the
desired outcomes.
Leadership
• Leadership is not exclusive to any specific role. High-performing
projects may feature multiple people exhibiting effective leadership
skills, for example, the project manager, sponsors, stakeholders,
senior management, or even project team members. Anyone working
on a project can demonstrate effective leadership traits, styles, and
skills to help the project team perform and deliver the required
results.
Leadership
• It is important to note that more conflict and confusion can emerge
when too many participants attempt to exert project influence in
multiple, misaligned directions. However, higher-performing projects
show a paradoxical combination of more influencers, each
contributing more leadership skills in a complementary fashion.
Leadership
• Leadership should not be confused with authority, which is the
position of control given to individuals within an organization to foster
overall effective and efficient function. Authority is the right to
exercise power. Authority is usually delegated to a person by formal
means such as a charter document or designated title.
Leadership Styles

Laissez-faire

Transactional

Servant leader

Transformational

Charismatic

Interactional
Note: Of all these, no single leadership style has proven to be the universally best or recommended approach. Instead,
effective leadership is shown when it best fits a given situation.
Leadership styles
• Laissez-faire (e.g., allowing the team to make their own decisions and
establish their own goals, also referred to as taking a hands-off style);
Leadership styles
• Transactional (e.g., focus on goals, feedback, and accomplishment to
determine rewards; management by exception);
Leadership styles
• Servant leader (e.g., demonstrates commitment to serve and put
other people first; focuses on other people’s growth, learning,
development, autonomy, and well-being; concentrates on
relationships, community and collaboration; leadership is secondary
and emerges after service);
Leadership styles
• Transformational (e.g., empowering followers through idealized
attributes and behaviors, inspirational motivation, encouragement for
innovation and creativity, and individual consideration);
Leadership styles
• Charismatic (e.g., able to inspire; is high-energy, enthusiastic, self-
confident; holds strong convictions);
Leadership styles
• Interactional (e.g., a combination of transactional, transformational,
and charismatic).
Leadership Styles
Few applications of correct leadership styles

▶ In moments of chaos, directive action creates more clarity and

momentum than collaborative problem solving.
▶ For environments with highly competent and engaged staff, empowered
delegation elicits more productivity than centralized coordination.
• When senior managers suffer conflict over priorities, neutral facilitation
helps more than detailed recommendations. Effective leadership skill is
grown. It can be learned and developed so that it becomes a professional
asset to the individual, as well as a benefit to the project and its
stakeholders.
Leadership styles
• Personal character matters in a leader. A person may have strong
ability in leadership skills but then have their influence undermined
by the perception of being self-serving or untrustworthy. Effective
leaders seek to be a role model in areas of honesty, integrity, and
ethical conduct. Effective leaders focus on being transparent, behave
unselfishly, and are able to ask for help. Effective leaders understand
that project team members scrutinize and emulate the values, ethics,
and behaviors that leaders exhibit. Therefore, leaders have an
additional responsibility to demonstrate expected behaviors through
their actions.