251373086-pgmp-standard-exam-study-notes.docx
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Difference between Project, Program and Portfolio Management (Ch 1, p8)Parameter Project Program Portfolio
Scope Narrow Specific deliverables
Wide May change Benefit expectations of stakeholder
Business scope Changes with strategic goals of
organizationChange Keep to a minimum Expect change Monitor change in broader
environmentSuccess Measured By
Budget Time Specifications (Scope)
ROI Capabilities Benefit Delivery
Aggregate performance of portfolio components
Leadership focus Focus on task delivery Directive
Focus on managing relationships Conflict resolution
Adding value to portfolio decision-making
Manage… Technicians Project Managers Portfolio Management StaffRole Team players who
motivate Leaders providing vision and
leadership Leaders providing insight and
synthesisWork Monitor and control
tasks Monitor projects and ongoing work Monitor aggregate performance and
value indicatorsLifecycle To produce discrete
deliverables To manage outcomes and benefits of
integrated projects Have extended lifecycles
Defining the program (21 questions, 14%)1. Performing a program assessment
a. Define program objectives and requirements from the strategic planb. Establish high-level program mapc. Ensure program aligns with enterprise strategic plan / missiond. Understand the strategic value of proposed business changee. Select the relevant communication tools and techniques
2. Supporting business analysis functionsa. Identifying the marketplace needs and drivers for the programb. Ensuring program viability by performing market analysis and researchc. Completing a high-level cost benefit analysis for the program
3. Developing benefits realization plana. Estimating costs and benefits (ROI) of the programb. Identifying suitable benefits measurement techniquesc. Defining KPIsd. Adapting the benefits realization plan to the organizational environmente. Conducting program feasibility studyf. Identifying funding sources and obtaining funding
4. Performing preliminary stakeholder analysisa. Identifying, analyzing and characterizing program stakeholdersb. Assessing stakeholder positions relative to the programc. Building stakeholder analysis chartsd. Identifying evaluating and consolidating stakeholder requirementse. Creating stakeholder management planf. Building the approach for stakeholder communications
5. Establishing alliances with other departments and organizationsa. Recognizing dependencies with other departments and organizationsb. Considering potential impacts of organizational environment and culturec. Aligning program objectives with alliancesd. Recognizing and analyzing key program dependencies
6. Evaluating organizational capabilitiesa. Consulting with groups involved in program deliveryb. Validating program priority and alignment to strategic objectives
c. Aligning program capabilities with strategic stakeholder needsd. Conducing a gap analysis of program deliverables and benefits against strategic plans and program requirementse. Evaluating program deliverables and benefits by applying lessons learned and financial management principles.
7. Requesting authorization to proceeda. Presenting the program assessment for approval to the governance authorities in order to initiate the programb. Recognizing and understanding the organization and program governance structuresc. Selling the programs vision and expected business benefitsd. Presenting the program assessment for approvale. Requesting authorization to proceed from the governance authoritiesf. Formally initiating the program
Program Management Process Groups
Process GroupsBenefits
ManagementStakeholder Management Program Governance
Initiating (18 questions, 12%) Defining and authorizing the program(s) and/or project(s) within the program.1. Initiate Program
a. Define the scope and benefit expectations of the program
b. Ensure authorization and program initiation are linked to organization’s ongoing work and strategic priorities.
c. Formal acceptance of scope by stakeholdersd. Order of magnitude estimates of scope,
effort and cost (i.e., feasibility studies, concept development)
Program Benefits Statement
Benefits Realization Plan
(Program Business Case and Investment Analysis)
Stakeholder Analysis and Management Plan
Program Charter Program Manager
Identification Program Sponsor
Identification Program Scope
Statement
Process GroupsBenefits
ManagementStakeholder Management Program Governance
2. Authorize Projectsa. Initiate components within the program.b. Timing usually controlled by Program
Management Plan
Project Business Case
Program Reporting Requirements
Communicate Project Related Info to Stakeholders
Project Charters Project Manager
Assigned Project Sponsor
Identified Project Funding
Approved
3. Initiate Teama. Formalize appointment of program managerb. Obtain and organize key personnel (core
program team)
Core Program Team Assignments
Program Manager Assignment
Program Team DirectoryPlanning (30 questions, 20%) Planning the best alternative courses of action to deliver the benefits and scope that the program was undertaken to address. Planning processes are iterative and depending on information generated at the project level.1. Develop Program Management Plan
a. Develop set of plans to be used to guide both program execution and program control (Same subsidiary plans as for projects.)
b. Each planning process results in development of a subsidiary plan
Program Benefits Statement Updates
Expectations management
Program Management Plan (and all subsidiary plans)
2. Interface Planninga. Process of identifying and mapping
interrelationships that exist within a program
b. Describe characteristics of interfacesc. Create plan to ensure interfaces are
established and maintained
Program Schedule Update
Interface Management Plan
Requirements for Program Communications Plan
Program Interfaces
Process GroupsBenefits
ManagementStakeholder Management Program Governance
3. Transition Planninga. Process of identifying and planning for
transitions from program team to recipients of on-going activities that result from the program
b. Purpose: Ensure program benefits are sustained once they are transferred to the organization
c. Formal handoffd. May be multiple transition events
Transition Plan Receiving Organization Plan
Transition Agreement
4. Resource Planninga. Determine people, equipment, materialsb. Optimize resources across the programsc. Determine how common program resources
will be allocated
Resource Management Plan
5. Scope Definitiona. Develop detailed scope statementb. Define approach for developing PWBSc. Develop scope management plan
Detailed scope statement
Scope Management Plan
6. Create Program Work Breakdown Structurea. Decomposition stop at level of control of
Program Managerb. Captures all non-project work
PWBS PWBS Dictionary
Program Mgt Plan Updates
7. Schedule Developmenta. Project managers build detailb. Detail rolled up at the management control
points into program work packages
Program Schedule Resource Requirement Updates
Schedule Management Plan
8. Cost Estimating and Budgetinga. Aggregate cost estimatesb. Develop budgets for all components
Program Budget Cost Management Plan
Process GroupsBenefits
ManagementStakeholder Management Program Governance
9. Quality Planninga. Identify standards relevant to programb. Specifying how standards will be satisfied
Operational Definitions
Quality Checklists Quality
Improvement Objectives and Plans
Quality Management Program Cost of Quality Quality Management
Plan
10. Human Resource Planninga. Identifying, documenting, and assigning
program roles, responsibilities and reporting relationships
Roles and Responsibility Assignments
Organization chart Staffing Management
Plan
11. Communications Planninga. Determining the information and
communication needs of program stakeholders
b. Identifying who needs what information, when they need, how it will be given and by whom.
Communications Management Plan
Communications Technology Requirements Plan
12. Risk Management Plan and Analysisa. Identification of program risksb. Qualitative risk analysisc. Quantitative risk analysisd. Risk response planning
Prioritized risks Risk Response Plan
13. Plan Program Purchases and Acquisitionsa. Determining what to buy whenb. Validating product requirementsc. Developing procurement strategiesd. Make/buy analysis on components of PWBS
May/buy decisions Contract SOW Procurement
Management Plan Program specific
qualified vendor list
Process GroupsBenefits
ManagementStakeholder Management Program Governance
14. Plan Program Contractinga. Identify type and detail of documentation
needed to implement contractsb. Produce foundation and guidelines on which
effective program-level contract administration can be implemented.
Evaluation criteria Procurement documents Contracts Management
Plan
Executing (37 questions, 25%) Integrates the projects, people and other resources to carry out the program management plan and deliver the program’s
benefits. Ensure that benefits management, stakeholder management and program governance are executed.1. Direct and Manage Program Execution
a. Deliver the programs intended benefits.b. Produce cumulative deliverables and other
work productsc. Track progress of workd. Implement approved change requests,
corrective actions and preventative actions.
Work results Expectations Management
Change requests Program termination
requests
2. Develop Program Teama. Building individual and group competencies
to enhance program performanceb. Ongoing process
Performance assessments and improvements based on work results
Training records Team competency
assessments3. Information Distribution
a. Providing timely and accurate information to program stakeholders in useful formats and appropriate media
b. 3 major communication channels: clients, sponsors, component mangers
Formal communications of program information
Informal communications on an as-needed basis
Process GroupsBenefits
ManagementStakeholder Management Program Governance
4. Request Seller Responsesa. Issuing RFIs, RFPs, and RFQs and obtaining
responsesb. Used in early stages of planning to evaluate
“make vs buy” decisions
Seller response to requests
5. Select Sellersa. Reviewing offers, choosing among potential
sellers, negotiating contract terms.
Contracts Selected vendor(s) Updates to procurement
management plan Agreements
Monitoring and Controlling (32 questions, 21%) Monitoring and measuring of program progress against the benefit delivery expectations, identifying from the program
management plan, and taking corrective action. Obtaining and consolidating data on status and progress, interface with program governance structure, performance reporting,
and integrated change control1. Integrated Change Control
a. Coordinating changes including changes to cost, quality and scope
b. Approve/deny change requestsc. Escalate requestsd. Identify when change has occurrede. Influence change factorsf. Ensure changes beneficial and agreed upong. Managed approved changesh. Perform throughout lifecycle
Updates Program mgt plan Scope statement Benefits realization
plan Change requests
decisions Change register Modified project
priorities2. Resource Control
a. Managing/tracking of all program resources and associated cost
b. Analysis of resource expensec. Resource commitments, allocations, and
release
Change requests Expenditure reports Resource releases Utilization reports Cross-charges
Process GroupsBenefits
ManagementStakeholder Management Program Governance
3. Monitor and Control Program Worka. Collecting, measuring and consolidating
performance informationb. Assessing measurements and trends to
generate improvementsc. Analyze reported project resultsd. Similar to risk management – focuses on
performance vs. risk
Forecasts Communications messages
Change requests
4. Issue Management and Controla. Identifying, tracking and closing issues
effectivelyb. Ensure stakeholder expectations are aligned
with program activities and deliverables.c. Carried out in parallel with controlling risk
Change request Escalated issues Issues register Proposed resolutions
5. Scope Controla. Capture requested changesb. Evaluate requestc. Decide on request dispositiond. Communicate decisione. Archive request artifactsf. Initiate activities for approved requests
Change request status information
Change request decisions Program budget updates
6. Schedule Controla. Ensure program will produce required
deliverables on time
Information for stakeholders
Change requests Program schedule
updates7. Cost Control
a. Controlling changes to and producing information from the program budget
b. Analyzing actual cost as incurredc. Addressing unanticipated events; both
positive and negative
Variance reports Change requests Estimate at completion Program budget updates
Process GroupsBenefits
ManagementStakeholder Management Program Governance
8. Perform Quality Managementa. Monitor specific program deliverables,
products and results to ensure they meeting defined requirements
Change requests Quality checklists Inspection/test reports Measurement results Non-conforming work
product9. Communications Control
a. Managing stakeholder communications Updated
communications plan10. Performance Reporting
a. Coordinating performance datab. Provide stakeholders with information about
how resources are being used to deliver program benefits
c. Conveyed via Information Distribution Process
Updated communications plan
11. Risk Monitoring and Controla. Risk Control - Tracking identified program
risksb. Risk Monitoring - Executing risk response
plans and evaluating effectiveness
Change request Risk register
12. Program Contract Administrationa. Managing relationship with buyers and
sellersb. Procurement of shared resources
Program reports Communications
messages
Adjustments to resource accounting
Approved pmt requests Contract changes Change requests
Closing (8 questions, 8%) Formalize acceptance of a product, service or benefit/results and bring program or program component to orderly end.
Process GroupsBenefits
ManagementStakeholder Management Program Governance
1. Close Programa. Formal acceptance of outcome by sponsor
or customerb. Capture / archive records
Certificate of program completion
Final performance reviews
Closure report Program archives Personnel records
updated Lessons learned
2. Component Closurea. Close project or non-project activityb. Validate closurec. Records and communications
Certificate of component completion
Communication messages
Project archives Program archives Resource availability
updates3. Contract Closure
a. Closing contract according to termsb. Product verificationc. Records
Contract completion certification
Contract termination documentation
Knowledge Areas
KNOWLEDGE AREAS INITIATING (12%) PLANNING (20%) EXECUTING (25%) MONITORING/CONTROLLING (21%)
CLOSING (8%)
Integration Management
Initiate Programs
Authorize Projects
Develop program management plan Interface planning Transition
planning Resource planning
Direct and Manage Program Execution
Integrated Change Control
Resource Control Monitor and Control
Program Work Issue Management
and Control
Close Program Component
Closure
Scope Management
Scope Definition Create PWBS
Scope Control
Time Management Schedule Development
Schedule Control
Cost Management Cost Estimating and Budgeting
Cost Control
Quality Management
Quality Planning Quality Assurance
Quality Control
Human Resources Management
Initiate Team Human Resources Planning
Acquire Team Develop Team
Communications Management
Communications Planning
Disseminate Information
Communications Control
Performance Reporting
Risk Management Planning and Analysis
Monitoring and Control
Procurement Management
Plan Purchases and Acquisitions
Plan Contracting
Request Seller Responses
Select Sellers
Program Contract Administration
Contract Closure
3 broad management themes that are the keys to success of a program (Ch1, p9)1. Benefits management – definition and formalization of expected benefits that the program is intended to deliver
a. Benefits realization plan – key output of the Initiating Processb. Activities
i. Assess the value and organization impact of the programs benefitsii. Identify the interdependencies of benefits being delivered among various projects with the program
iii. Assign responsibility and accountability for the actual realization of the benefits from the programc. Critical component of the Initiate Program Processd. Benefits Sustainment – Sixth phase of benefits management occurring after program is transitioned to operations
2. Program stakeholder managementa. Identifying how the program will impact stakeholders and developing a communication strategy to engage the
affected stakeholders, manage their expectations, and improve acceptance of the objectives of the programb. Must understand who the stakeholders are, the position they may take, they way they will exert their influence and
their source of power3. Program governance
a. Process of developing, communication, implementing, monitoring, and assuring the policies, procedures, organizational structures, and practices associating with a given program.
b. Controls the program and therefore bridges the program lifecycle and program management processesc. Result: framework for efficient and effective decision-making and delivery management focused on achieving
program goals in a consistent manner, addressing appropriate risk and stakeholder requirements
Program Lifecycle – with gate after each phase (Ch 2, p18)
Lifecycle Phases Benefits ManagementStakeholder Management Program Governance
1. Pre-Program Setup (Similar to Initiating Phase) Objective: Establish firm foundation of
support and approval for the program
Identify Identify and quantify
business benefits
Identification of stakeholders
Gate: Approval in principle
2. Program Setup (Similar to Planning Phase) Purpose: Build a detailed roadmap that
provides direction on how the program will be managed and defines key deliverables
Analysis Derive and prioritize
components Derive benefits metrics
Analysis of stakeholder interests
Gate: Approval authorizing execution of the program management plan
3. Establishing Program Management and Technical Infrastructure Purpose: Establish the structure in which
work will occur along with the technical infrastructure to facilitate the work
Planning Establish benefits
realization plan Establish benefits
monitoring Map benefits to program
plan
Establish stakeholder management approach, tools, etc.
4. Delivering Incremental Benefits – longest and most costly Purpose: Initiate the component projects
of the program and coordinate the deliverables to create incremental benefits.
Ends when planned benefits are achieved or a decision is made to terminate the program
Realization Monitor components Maintain benefits register Report benefits
Monitor stakeholder list
Manage stakeholder changes
Gate: Approval to close – all program work is completed and benefits are accruing
5. Closing the Program Purpose: controlled closedown of the
program
Transition Consolidate coordinated
benefits Transfer the ongoing
responsibility
Lifecycle Phases Benefits ManagementStakeholder Management Program Governance
Gate Reviews – focus on strategic alignment, investment appraisal, monitoring and control of opportunities and threats, benefit assessment, and monitoring the portfolio outcomesGovernance – monitors the progress of the program and delivery of the coordinated benefits from its component projects.
10 Common Program Management Controls
CONTROL DEFINITION
Standards Widely recognized and accepted standards.Program specific standards including quality, schedule, training, WBS
Policies and Procedures Implement standards, processes and work methods that result in the work required by the program being performed.
Program Plans Formulates and documents the management strategy and approach for the program Cost Communications Procurement Quality Resource Risk Schedule Scope Staffing
Reviews Risk reviews, program management reviews, phase-gate reviewsOversight By an executive board or individual executive. Result in sign-off by the stakeholder to confirm
that requirements are met.Audits Require that information be substantiated, require demonstration that process, alignment
with criteria. Includes control point, financial process, risk response and quality audits.Contracts Contract terms and clauses that are pre-developed and approved for inclusion.Directories and Distribution Lists
Standard lists established and maintained to control the routing and recipients of formal communications and messages sent to program stakeholders.
Documentation Style guides, templates.Regulations Environmental legislation, government regulations and laws, legal opinions, legislative
requirements and restrictions, and organizational legislations.
Formulas Calculating the number of lines of communication in the program stakeholder network
o (n * (n – 1 ) / 2 (n=# of stakeholders NOT including the program manager)
Definitions
Term Definition
Assumptions Factors considered true, real or certain
Process Asset Library (PAL) Organizational process assets
Program Stakeholder Management
Defining the individuals and organizations whose interests may be positively or negatively affected by program outcomes
Program Governance Developing, communicating, implementing, monitoring, and assuring the policies, procedures, organizational structures, and practices associated with a specific program
Program Management Themes Benefits ManagementProgram Stakeholder ManagementProgram Governance
Execution Management Managing the daily flow of forward work progress by the delivery team
Management by Projects Treating aspects of ongoing operations as projects in order to apply project management techniques to them
Metric A quantitative standard of measurement typically used in programs and projects to measure performance and progress
Operations Ongoing, repetitive activities producing the same result or providing the same service
Organization Group of persons organized for some purpose such as performing workInterrelated activities in an organization are grouped either as projects or operations
Performing Organization The enterprise whose personnel are most directly involved in doing the work of the program
Portfolio Collection of components grouped together to facilitate effective management of the work to meet strategic business objectives
Program Group of interrelated projects managed in a coordinated way to obtain benefits and control not available from managing them individually
Project Temporary endeavor undertaken to create a unique product, service or result
Term Definition
Portfolio Management Identify, authorizing, managing and controlling a portfolio to achieve strategic business objectives
Program Management Centralized, coordinated management of a program to achieve the program’s strategic benefits and objectives
Project Management Applying knowledge, skills, tools and techniques to project activities to meet the project requirements
Process A series of actions brining about a results
Program Governance Board Group responsible for ensuring that program goals are achieved and proving support for addressing program risks and issues.
Program Director Individual with executive ownership of the program or programs
Program Manager The individual responsible for managing the program
Program Office The organization that provides support of individual program management teams or program mangers by handling administrative functions centrally
Project Manager Individuals responsible for managing the individual projects within the program
SMART Specific, Measurable, Actual, Realistic, Time-Based
Stakeholder Individuals and organizations whose interest may be positively or negatively affected by program outcomes (directly or indirectly)
Sub-Project Smaller portion of an overall project created when a project is subdivided into more manageable components or pieces.
Technique A defined systematic procedure employed by a human resource to produce a product, result or deliver a service
Tool Something tangible used in performing an activity to produce a project or result
Term Definition
Program Life Cycle Five phases and phase gate reviews with overarching governance1. Pre-Program Setup2. Program Setup3. Establish Program Management and Technical Infrastructure4. Deliver Incremental Benefits5. Closing
Program Governance Process of developing, communicating, implementing, aligning, monitoring and assuring the policies, procedures, organization structures, and practices associated with a given program. Through phase gate reviews, monitors the progress of the program and the delivery of
coordinated benefits from the component projects. Creating and using a framework for efficient and effective decision-making
Pre-Program Set Up Objective is to establish a firm foundation of support and approval for the program. Initiates the program with a mandate or program brief detailing the benefits that the program is expected to deliver. (Program Management Lifecycle Phase 1)
Program Setup Purpose is to build a detailed “roadmap” (program management plan) that provides direction on how the program will be managed and defines the programs key deliverables and components. (Program Management Lifecycle Phase 2)
Establishing Infrastructure Purpose is to establish the program management and technical infrastructure that will support the program and its constituent projects as they deliver the expected benefits for the program. (Program Management Lifecycle Phase 3)
Delivering Incremental Benefits Initiate the component projects of the program and coordinate the deliverables to create incremental benefits. (Program Management Lifecycle Phase 4)
Closing the Program Controlled closedown of the program and transition of the artifacts, benefits monitoring and ongoing operations to other groups. (Program Management Lifecycle Phase 5)
Phase Gate A pre-defined milestone at the end of a phase with predetermined exit criteria.
Phase Gate Review Pre-defined milestones that provide an objective check against exit criteria of a completed phase to determine the readiness to proceed to the next phase in the program lifecycle.
Benefits An outcome of actions and behaviors that provides utility to stakeholders
Term Definition
Benefits Management Defining and formalizing expected benefits a program is intended to deliver. (Lifecycle Theme 1)
Benefits Identification Identify and qualify business benefits
Benefits Analysis Derive and prioritize components Derive benefits metrics
Benefits Planning Establish benefits realization plan Establish benefits monitoring Map benefits into program plan
Benefits Realization Monitor components Maintain benefits register Report benefits
Benefits Transition Consolidate coordinated benefitsTransfer the ongoing responsibility
Milestone A reference point that marks a major event in a project and is used to monitor the project's or program’s progress.
Critical Success Factor The term for an element that is necessary for a program or project to achieve its objectives. It is a critical factor or activity required for ensuring the success.
Program Management Plan Consistent and coherent set of documents that can be used to guide both program execution and control
Artifact Tangible by product produced during the program/project lifecycles and product/deliverable development.
Mandate An obligation handed down by an inter-governmental body.
Process Group Group of processes that are performed as part of a phase. Thirty-nine processes.
Initiating Defines and authorizes the program or a project within the program and produces the program benefits statement and benefits realization plan. Three processes.
Planning Plans the best alternatives courses of action to deliver the benefits and scope that the program was undertaken to address. Twelve processes.
Term Definition
Executing Integrates projects, people, and other resources to carry out the plan for the program and deliver the program’s benefits. Seven processes
Monitoring and Controlling Request that the program and its component projects be monitored against the benefit delivery expectations and that their project be regularly measured to identify variances from plan. Coordinates corrective actions, when necessary, to achieve program benefits.
Closing Formalizes acceptance of a project, service, or benefit/result; brings the program or program components (e.g., project) to an orderly end.
Knowledge Area Key areas of expertise and specialization that are implemented in the program and project management lifecycles by the processes.
Integration Management Identifying, defining, combining, unifying and coordinating program or project management activities.
Scope Management Defining and controlling what is and is not included in the program or project.
Time Management Ensuring timely completion of the program or project.
Cost Management Ensuring that the program or project is completed within the approved budget by planning, estimating, budgeting and controlling costs.
Quality Management Ensuring the program or project satisfies the needs for which it was undertaken
Human Resources Management Organizing and managing the program or project team.
Communication Management Ensuring timely and appropriate generation, collection, dissemination, storage and ultimate disposition of program or project information.
Risk Management Systematically identifying, analyzing and responding to program or project risks.
Performance Management Acquiring or purchasing goods and services to attain program or project scope.
Value Realization Obtaining value from the investment, such as savings in time or money
Value Analysis Optimizing cost performance by identifying required functions, establishing values for those functions, and providing functions at lowest possible costs.
Balanced Scorecard Measuring whether activities are meeting objectives of vision and strategy in four categories: 1) financial, 2) customer, 3) internal business processes and 4) learning/growth
Precision Degree to which repeated measurements under unchanged conditions show the same results.
Term Definition
Accuracy The degree of closeness of measurements of a quantity to the quantity’s actual (true) value.