Project Management
CT050-3-3-PRMGT
03: Initiating Projects
Topic & Structure of The
Lesson
Knowledge area Initiating Outputs
process
Project integration Develop project Project charter
management charter
Assumption log
Project stakeholder Identify stakeholders Stakeholder register
management
Change requests
Project management
plan updates
Project documents
updates
CT050-3-3-PRMGT (Project Management) Planning Projects
Learning Objectives
• Describe the five project management process groups, define a
project life cycle, map the process groups to knowledge areas,
discuss other project management methodologies, explain the
concept of agile project management, and understand the
importance of top management commitment and organizational
standards
• Discuss the initiating process, including pre-initiating activities
• Prepare a business case to justify the need for a project
• Identify project stakeholders and perform a stakeholder analysis
• Create a project charter and assumption log
• Describe the importance of holding a good project kick-off
meeting
CT050-3-3-PRMGT (Project Management) Planning Projects 3
Key Terms You Must Be
Able To Use
• If you have mastered this topic, you should be able
to use the following terms correctly in your
assignments and exams:
– Xxxxxx
– xxxxx
CT050-3-3-PRMGT (Project Management) Planning Projects
Project Management Process Groups
• Project management process groups
progress from initiating activities to planning
activities, executing activities, monitoring
and controlling activities, and closing
activities
• A process is a series of actions directed
toward a particular result
CT050-3-3-PRMGT (Project Management) Planning Projects 5
Description of Process Groups
• Initiating processes include actions to begin projects and
project phases
• Planning processes include devising and maintaining a
workable scheme to ensure that the project meets its scope,
time, and cost goals as well as organizational needs
• Executing processes include coordinating people and other
resources to carry out the project plans and produce the
deliverables of the project or phase.
– A deliverable is a product or service produced or provided as
part of a project
• Monitoring and controlling processes measure progress
toward achieving project goals, monitor deviation from plans,
and take corrective action to match progress with plans and
customer expectations
• Closing processes include formalizing acceptance of the
project or phase and bringing it to an orderly end
CT050-3-3-PRMGT (Project Management) Planning Projects 6
Figure 3-1. Example of process group
interactions within a project or phase
Source: Project Management Institute, Inc., A Guide to the Project
Management Body of Knowledge (PMBOK Guide)– Sixth Edition
(2017).
CT050-3-3-PRMGT (Project Management) Planning Projects 7
Figure 3-2. Time Spent on Each
Project Management Process Group
Process Group Alpha Average PM Alpha Difference
PM (%)
Initiating 2% 1% 100% more
Planning 21% 11% 91% more
Executing 69% 82% 16% less
Monitoring & 5% 4% 25% more
Controlling
Closing 3% 2% 50% more
Total 100% 100%
CT050-3-3-PRMGT (Project Management) Planning Projects 8
Characteristics of the Process
Groups
• The level of activity and length of each process group
varies for every project
– Normally, executing tasks require the most resources and
time, followed by planning tasks
– Monitoring and controlling processes are done throughout
the project’s life span
– Initiating and closing tasks are usually the shortest (at the
beginning and end of a project or phase, respectively), and
they require the least amount of resources and time
– However, every project is unique, so there can be
exceptions
• Note that process groups apply to entire projects as well
as to project phases
– A phase is a distinct stage in project development, and most
projects have distinct phases
CT050-3-3-PRMGT (Project Management) Planning Projects 9
Figure 3-3. Project life cycle and phase gates
Source: Project Management Institute, Inc., A Guide to the
Project Management Body of Knowledge (PMBOK
Guide)– Sixth Edition (2017).
CT050-3-3-PRMGT (Project Management) Planning Projects 1
Predictive, Adaptive, and Hybrid
Life Cycles
• A predictive life cycle, also called plan-driven, is
used when the requirements can be well defined
at the beginning of a project.
• An adaptive life cycle is used when
requirements are not well defined up front.
Adaptive approaches can be iterative,
incremental, or agile.
• A hybrid or combination of approaches can be
used when the nature of different deliverables
calls for different approaches.
CT050-3-3-PRMGT (Project Management) Planning Projects 11
Figure 3-4. The continuum of
project life cycles
Source: Project Management Institute, Inc., A Guide to the Project Management
Body of Knowledge (PMBOK Guide)– Sixth Edition (2017).
CT050-3-3-PRMGT (Project Management) Planning Projects 1
Mapping the Process Groups to the
Knowledge Areas
• You can map the five process group into the
ten project management knowledge areas
• Based on the PMBOK® Guide – Sixth
Edition (2017), there are 49 total processes
in project management
• Figure 3-5 provides a big-picture view of the
process groups and knowledge areas
CT050-3-3-PRMGT (Project Management) Planning Projects 13
Figure 3-5. Project management process
group and knowledge area mapping
Source: Project Management
Institute, Inc., A Guide to the
Project Management Body of
Knowledge (PMBOK Guide) –
Sixth Edition (2017).
CT050-3-3-PRMGT (Project Management) Planning Projects 14
Developing a Project Management
Methodology
• The PMBOK® Guide is a standard that
describes best practices for what should
be done to manage a project
• A methodology describes how things
should be done, and different
organizations often have different ways of
doing things
• Successful organizations develop and
follow a customized, formal project
management process
CT050-3-3-PRMGT (Project Management) Planning Projects 15
Other Methodologies
• PRojects IN Controlled Environments (PRINCE2):
Originally developed for IT projects, PRINCE2 was
released in 1996 by the U.K. Office of Government
Commerce – now used in over 50 countries
• Rational Unified Process (RUP) framework: iterative
software development process that focuses on team
productivity and delivers software best practices to all
team members
• Six Sigma: Used to improve quality and processes. Six
Sigma’s target for perfection is the achievement of no
more than 3.4 defects, errors, or mistakes per million
opportunities
• Agile: See following slides
CT050-3-3-PRMGT (Project Management) Planning Projects 16
Agile
• Many software development projects use agile methods,
meaning they use an iterative workflow and incremental
delivery of software in short iterations
• Popular agile approaches include Scrum, extreme
programming, feature driven development, and lean
software development.
• In 2011, PMI introduced a new certification called Agile
Certified Practitioner (ACP) to address the growing interest
in agile project management.
• Note that agile can also be applied to project planning, as
described in Chapter 2, as well as many other areas,
including manufacturing and even education.
CT050-3-3-PRMGT (Project Management) Planning Projects 1
Manifesto for Agile Software Development
(www.agilemanifesto.org)
We are uncovering better ways of
developing
software by doing it and helping others
do it.
Through this work we have come to
value:
Individuals and
interactions over processes and
tools
Working software over
comprehensive documentation
Customer collaboration over
CT050-3-3-PRMGT (Project Management) Planning Projects 1
Scrum
• Scrum is the leading agile development
method for completing projects with a
complex, innovative scope of work
• The term was coined in 1986 in a Harvard
Business Review study that compared
high-performing, cross-functional teams to
the scrum formation used by rugby teams
CT050-3-3-PRMGT (Project Management) Planning Projects 1
Figure 3-6. Scrum Framework
Schwalbe Information Technology Project Management, Revised Seventh Edition,
2014
CT050-3-3-PRMGT (Project Management) Planning Projects 2
Project Management Office (PMO)
• A project management office (PMO) is
an organizational entity created to assist
project managers in achieving project
goals
• A PMO can help development standards
and methodologies, provide career paths
for project managers, and assist project
managers with training and certification
CT050-3-3-PRMGT (Project Management) Planning Projects 21
Possible Goals of a PMO
• Collect, organize, and integrate project data for the entire
organization
• Research, develop, and share best practices in project
management
• Develop and maintain templates, tools, standards, and
methodologies
• Develop or coordinate training in various project management
topics
• Develop and provide a formal career path for project managers
• Provide project management consulting services
• Provide a structure to house project managers while they are
acting in those roles or are between projects
CT050-3-3-PRMGT (Project Management) Planning Projects 2
Figure 3-8. Initiating Process Summary
Senior management work together to: Project managers lead efforts to:
Determine scope, time, and cost constraints Identify and understand
project stakeholders
Identify the project sponsor
Create the project charter
Select the project manager
and assumption log
Develop a business case for the project
Hold a kick-off meeting
Review processes/expectations
Determine if the project should be divided
into two or more smaller projects
CT050-3-3-PRMGT (Project Management) Planning Projects 23
Pre-initiating Processes
• It is good practice to lay the groundwork for a project before it
officially starts
• After a project is approved, senior managers should meet to
accomplish the following tasks:
– Determine the scope, time, and cost constraints for the project
– Identify the project sponsor
– Select the project manager
– Meet with the project manager to review the process and
expectations for managing the project
– Determine if the project should be divided into two or more
smaller projects because it is easier to manage smaller projects
than larger ones
CT050-3-3-PRMGT (Project Management) Planning Projects 24
Business Case for a Project
• A business case is a document that provides financial justification for
investing in a project
• Typical contents:
– Introduction/Background
– Business Objective
– Current Situation and Problem/Opportunity Statement
– Critical Assumptions and Constraints
– Analysis of Options and Recommendations
– Preliminary Project Requirements
– Budget Estimate and Financial Analysis
– Schedule Estimate
– Potential Risks
– Exhibits
•
See Figure 3-10 in the text for a sample (pp. 992-94)
CT050-3-3-PRMGT (Project Management) Planning Projects 25
Initiating Processes
• Identifying project stakeholders
• Creating the project charter
• Creating the assumption log
• Holding a kick-off meeting
CT050-3-3-PRMGT (Project Management) Planning Projects 26
Figure 3-11. Initiating Processes and
Outputs (PMBOK® Guide – Sixth
Edition)
Knowledge area Initiating Outputs
process
Project integration Develop project Project charter
management charter
Assumption log
Project stakeholder Identify stakeholders Stakeholder register
management
Change requests
Project management
plan updates
Project documents
updates
CT050-3-3-PRMGT (Project Management) Planning Projects 27
Identifying Stakeholders
• Project stakeholders are the people
involved in or affected by project activities
– Internal project stakeholders generally include
the project sponsor, project team, support staff,
and internal customers for the project. Other
internal stakeholders include top management,
other functional managers, and other project
managers
– External project stakeholders include the
project’s customers (if they are external to the
organization), competitors, suppliers, and other
external groups that are potentially involved in
or affected by the project, such as government
CT050-3-3-PRMGT (Project Management) Planning Projects 28
Stakeholder Register and
Stakeholder Analysis
• A stakeholder register is a document that includes details
related to the identified project stakeholders -usually
available to many people, so it should not include sensitive
information
• A stakeholder analysis is a technique for analyzing
information to determine which stakeholders’ interests to
focus on and how to increase stakeholder support
throughout the project
CT050-3-3-PRMGT (Project Management) Planning Projects 29
Figure 3-12. Sample Stakeholder Register
Name Position Internal/ Project Contact Information
External Role
Sundby champion
Camerena Director sponsor
Ron Ryan Senior HR Internal Led the [email protected]
staff Phase I
member project
CT050-3-3-PRMGT (Project Management) Planning Projects 30
Figure 3-13. Sample Stakeholder
Analysis Power/Interest Grid
CT050-3-3-PRMGT (Project Management) Planning Projects
Categorizing Engagement Levels
of Stakeholders
• Unaware: Unaware of the project and its potential
impacts on them
• Resistant: Aware of the project yet resistant to
change
• Neutral: Aware of the project yet neither supportive
nor resistant
• Supportive: Aware of the project and supportive of
change
• Leading: Aware of the project and its potential
impacts and actively engaged in helping it succeed
CT050-3-3-PRMGT (Project Management) Planning Projects
Creating a Project Charter and
Assumption Log
• A project charter is a document that formally
recognizes the existence of a project and provides a
summary of the project’s objectives and management
• It authorizes the project manager to use
organizational resources to complete the project
• Ideally, the project manager will play a major role in
developing the project charter
• Instead of project charters, some organizations
initiate projects using a simple letter of agreement or
formal contracts
• A crucial part of the project charter is the sign-off
section
CT050-3-3-PRMGT (Project Management) Planning Projects 33
Contents of a Project Charter
• The project’s title and date of authorization
• The project manager’s name and contact information
• A summary schedule or timeline, including the planned
start and finish dates; if a summary milestone schedule is
available, it should also be included or referenced
• A summary of the project’s estimated cost and budget
allocation
• A brief description of the project objectives, including the
business need or other justification for authorizing the
project
• Project success criteria or approval requirements,
including project approval requirements and who signs off
on the project
CT050-3-3-PRMGT (Project Management) Planning Projects 34
Contents of a Project Charter
(continued)
• A summary of the planned approach for managing the
project, which should describe stakeholder needs and
expectations, overall project risk, important
assumptions and constraints, and should refer to
related documents, such as a communications
management plan, as available
• A roles and responsibilities matrix
• A sign-off section for signatures of key project
stakeholders
• A comments section in which stakeholders can provide
important comments related to the project
CT050-3-3-PRMGT (Project Management) Planning Projects 3
Figure 3-15. Sample Project Charter
Project Title: Just-In-Time Training Project
Project Start Date: July 1 Projected Finish Date: June 30 (one year
later)
Budget Information: The firm has allocated $1,000,000 for this project.
Approximately half of these costs will be for internal labor, while the other half
will be for outsourced labor and training programs.
Project Manager: Kristin Maur, (610) 752-4896,
[email protected] Project Objectives: Develop a new training program that provides just-in-time
training to employees on key topics, including supplier management, negotiating
skills, project management, and software applications (spreadsheets and Web
development). Develop an approach for measuring productivity improvements
from this approach to training on an annual basis.
Success Criteria: This project will be successful if it reduces training cost per
employee by 10% or $100/employee/year. It should also be completed on time,
be run professionally, and meet all of the requirements. The project sponsor will
fill out a customer acceptance/project completion form at the end of the project
and give the project at least a 7 out of 10 overall rating.
CT050-3-3-PRMGT (Project Management) Planning Projects 36
Figure 3-15. Sample Project
Charter (continued)
• Approach section (partial)
– Terminate all internal training courses except the Six
Sigma training once new courses are developed
– Communicate to all employees the plans to improve
internal training and let them know that tuition
reimbursement will continue as is.
• Roles and Responsibilities
• Comments (partial)
– “I want to review all of the information related
to providing the supplier management
training. We need to make something
available quickly.” Tim
CT050-3-3-PRMGT (Project Management) Planning Projects 3
Contents of An Assumptions Log
• An assumption log is a document used to record and track
assumptions and constraints throughout the project life
cycle.
• It aids in communicating information to key stakeholders and
avoids potential confusion.
• Most projects include several assumptions that affect the
scope, time, cost, risk, and other knowledge areas.
• It is important to document and validate these assumptions.
CT050-3-3-PRMGT (Project Management) Planning Projects 38
Figure 3-16. Sample Assumptions
Log
ID Assumption Categor Owner Due Status Actions
Description y Date
108 Supplier Time Kristin Sep. 1 Close Scheduled
management training d first
should be completed
first
122 Employees will take Human Lucy Nov. 1 Open Meet with
some of the training resource dept. heads
during non-work s to discuss
hours
CT050-3-3-PRMGT (Project Management) Planning Projects 3
Holding a Project Kick-off Meeting
• Experienced project managers know that it is crucial to get
projects off to a great start.
• A kick-off meeting is a meeting held at the beginning of a project
so that stakeholders can meet each other, review the goals of the
project, and discuss future plans. Note that the PMBOK® Guide –
Sixth Edition, suggests that the kick-off meeting be held during
the end of the planning or start of the executing process group. In
the author’s experience, it is best hold it earlier.
• The project champion should speak first and introduce the project
sponsor and project manager
• There is often a fair amount of work is done to prepare for the
meeting.
• If it cannot be held face-to-face, try to include audio and/or video
to engage and understand participants.
CT050-3-3-PRMGT (Project Management) Planning Projects 40
Figure 3-17. Sample Kick-Off Meeting Agenda
Just-In-Time Training Project
Kick-off Meeting
July 16
Meeting Objective: Get the project off to an effective start by introducing key
stakeholders, reviewing project goals, and discussing future plans
Agenda:
•Introductions of attendees
•Review of the project background
•Review of project-related documents (i.e., business case, project charter,
assumptions log)
•Discussion of project organizational structure
•Discussion of project scope, time, and cost goals
•Discussion of other important topics
•List of action items from meeting
Action Item
Action Item Assigned To
Assigned To Due Date Due Date
Date and time of next meeting:
CT050-3-3-PRMGT (Project Management) Planning Projects 41
Quick Review Question
CT050-3-3-PRMGT (Project Management) Planning Projects
Summary of Main Teaching Points
• The five project management process groups are
initiating, planning, executing, monitoring and
controlling, and closing. These processes occur at
varying levels of intensity throughout each phase
of a project, and specific outcomes are produced
as a result of each process
• Mapping the main activities of each project
management process group into the ten project
management knowledge areas provides a big
picture of what activities are involved in project
management
CT050-3-3-PRMGT (Project Management) Planning Projects
Summary of Main Teaching Points
• After a project is approved, senior
managers often meet to perform several
pre-initiating tasks
• The main tasks normally involved in
project initiation are the following:
– Identifying and stakeholders
– Creating the project charter and assumptions
log
– Holding a kick-off meeting
CT050-3-3-PRMGT (Project Management) Planning Projects
Question and Answer
Session
Q&A
CT050-3-3-PRMGT (Project Management) Planning Projects
What we will cover next
• 04 Planning Projects Part 1 (Integration &
Scope)
CT050-3-3-PRMGT (Project Management) Planning Projects
