LESSON 1

• Foundation
• Strategic Alignment
• Project Benefits and Value
• Organizational Culture and
Change Management
• Project Governance
• Project Compliance

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• Define ‘project’ and how it relates to the • Discuss strategic alignment and its
larger discussion of project management. elements.
• Discuss the different types of • Explain the impact of business
organizational structures and how factors on strategic alignment.
they relate to your project’s
• Determine how projects align with
management.
business strategy.
• Discuss the principles of project
• Identify types of business value.
management.
• Describe change management theory and
• Discuss the principles of agile and
its relation to organizational change.
how they relate to your project’s
management. • Define and discuss project governance.
• Explain project compliance and its
importance.

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TOPIC A

3
A project:

• Creates a unique product, service or result

• Is time-limited
• Drives change
• Enables value creation for a business or organization

Project success depends on:

• Organizational project maturity

• Project manager effectiveness
• Funding and resource availability
• Team member skill levels
• Collaboration and communication within the team and with key
stakeholders
• Understanding of the core problem and related needs

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 ca. 1969 – PMI founded

The application of
knowledge, skills, tools and
techniques to project
activities to meet the
project requirements

Can you describe, in your

own words, how project
management has
changed during this time?
2022 - Toward a systems view

“Projects do not simply produce outputs, but more

importantly, enable those outputs to drive
outcomes that ultimately deliver value to the
organization and its stakeholders.”

- PMBOK® Guide - Seventh edition

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 Description Key Roles Value Delivery Proposition
Plan-based approach: • Project sponsor authorizes • Deliverables transitioned to
• Activities completed in project customer at completion
a distinct or linear
fashion • Team led by project • Value realized in both short
• New phase begins only manager and long term
when the previous
phase is completed

Change-based approach: • Product owner controls • Iterative or incremental

• Agile, incremental or value proposition delivery to customer during
iterative development • Project team delivers work life cycle
• Timeboxed cadence • Process roles include team • Regular customer feedback
(iterations/sprints) or lead, scrum master, agile cycle enables continuous
continuous flow coach, facilitator development of value
toward a ”final” product

Any combination of the above

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 PMOs can be:
Agile Centers of Excellence
Supportive (ACoEs)
• Develop best practices, aka Value Delivery Office (VDO)
methodologies, standards and
templates​ ACoEs enable, rather than
• Coach, mentor, train, guide manage, project efforts:
Many large and project managers​
established project- • Coach teams
oriented organizations Controlling​ • Build agile mindset, skills and
have a PMO, but PMOs
are not a requirement for • Monitor compliance with capabilities throughout the
project management project management standards, organization
practice. policies, procedures and • Mentor sponsors and product
templates via project audits​ owners

Directive​
• Manage shared resources​
• Coordinate communication
across projects
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Organizational project management (OPM) – strategy execution framework
that coordinates project, program, portfolio and operations management, and
which enables organizations to deliver on strategy

External Environment

Internal Environment

System for Value Delivery

Portfolio A Portfolio B Program B.1

Program A.1 Program A.2 Program B.1 Projects

Projects Projects

Projects Projects

Operations

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 Collection of projects, programs,
Portfolio subsidiary portfolios and operations Aligns with
Management managed in a group to achieve business strategies
strategic objectives

Group of related projects,

subsidiary programs and program Controls
Program activities managed in a coordinated components and
Management manner to obtain benefits not interdependencies
available from managing them to realize benefits
individually

Enables
achievement of
Project Part of a broader program, portfolio
organizational
Management or both
goals and
objectives

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• Functional Organizational structure and governance affects/determines:
• Matrix
• Project-oriented • How organizational groups and individuals interrelate
• How much authority the project manager has
• Composite • What resources will be available
• How the project will be conducted

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 Functional Matrix Project-oriented

Functional
Team member loyalty Conflicted loyalty Project
department
Both functional
Team member
Functional manager manager and project Project manager
reporting
manager

Coordinator to full Full-time and

Project manager role Seldom identified
project manager responsible

Full-time on project
Team member role Part-time on project Part-time on project
(preferred)

Control of project Nonexistent Medium – shared

manager over team (functional manager with functional High
members controls) manager/sponsor

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 Think of your current or a recent
project. Can you identify the
organizational structure type and
describe how it affects your project
in the following ways?

• How organizational groups and

individuals interrelate
• The project manager’s authority
• Resource availability
• How the project is conducted

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12
a. Be a diligent, respectful and caring steward (Stewardship)
b. Recognize, evaluate and respond to system interactions (System Thinking)
c. Navigate complexity (Complexity)
d. Create a collaborative project team environment (Team)
e. Demonstrate leadership behaviors (Leadership)
f. Optimize risk responses (Risk)
g. Effectively engage with stakeholders (Stakeholders)
h. Tailor based on context (Tailoring)
i. Embrace adaptability and resiliency (Adaptability and Resiliency)
j. Focus on value (Value)
k. Build quality into processes and deliverables (Quality)
l. Enable change to achieve the envisioned future state (Change)

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 Stakeholders
Use the 12
principles to
Uncertainty Team
guide
behavior in
the 8 project
performance
Development
domains Measurement Principles Approach and
Life Cycle

Delivery Planning

Project Work

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Derived from:
• Four values from the Agile Manifesto
• 12 principles

There are more than 50 known agile

practices and methods in use!

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15
“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 interaction over Process and tools

Working software over Comprehensive documentation

Customer collaboration over Contract negotiation

Responding to change over Following a plan

That is, while there is value in the items on the right, we value the items
on the left more.”
2001
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1. Our highest priority is to satisfy the customer through early and
continuous delivery of valuable software.
2. Welcome changing requirements, even late in development. Agile
processes harness change for the customer’s competitive advantage.
3. Deliver working software frequently, from a couple of weeks to a
couple of months, with a preference to the shorter timescale.
4. Businesspeople and developers must work together daily throughout
the project.
5. Build projects around motivated individuals. Give them the
environment and support they need and trust them to get the job done.
6. The most efficient and effective method of conveying information to
and within a development team is face-to-face conversation.

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7. Working software is the primary measure of progress. (measured by
results)
8. Agile processes promote sustainable development. The sponsors,
developers, and users should be able to maintain a constant pace
indefinitely.
9. Continuous attention to technical excellence and good design enhances
agility.
10. Simplicity – the art of maximizing the amount of work not done – is
essential. (*Lean-eliminate anything that does not provide value)
11. The best architectures, requirements, and designs emerge from self-
organizing teams.
12. At regular intervals, the team reflects on how to become more effective,
then tunes and adjusts its behavior accordingly.

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“Doing Agile vs. Being Agile”

Agile means:
• Iterations are likely to be shorter
• Product is more likely to evolve based on stakeholder feedback

Still used for software development, and agile principles have been
applied to other kinds of development projects, vis-à-vis the agile mindset.
• Adopt a flexible, change-friendly way of thinking and behaving
• Understand the purpose of these practices
• Select and implement appropriate practices based on context
• Internalize agile values, mindset and behavior

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Because each project is unique, we adapt methods to the unique
project context to determine the most appropriate ways of working
to produce the desired outcomes.

Tailor iteratively and continuously throughout the project

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Apply product knowledge, delivery cadence and awareness of the
available options to select the most appropriate development
approach

Tailor processes for the selected life cycle and development

approach; include determining which portions or elements should be
added, modified, removed, blended, and/or aligned

Tailor practices and methods to the environment and culture

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• Foundational project management concepts
• Project management principles
• The Agile mindset
• Tailoring – hybrid approaches, processes and
practices in project management

22
TOPIC B

23
The PMI Talent Triangle® reflects the skills needed by today’s project
professionals and changemakers as they navigate the evolving world of
project management.

Ways of Working
Mastering diverse and creative ways (predictive, adaptive, design
thinking) to get any job done

Power Skills
The critical interpersonal skills required to apply influence, inspire
change and build relationships

Business Acumen
Effective decision-making and understanding of how projects align with
the big picture of broader organizational strategy and global trends

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Do you:

• Know your organization’s strategic plan?

• Understand how project goals matter to an organization's long-term
vision and mission?
• See a high-level overview of the organization?
• Have a working knowledge of business functions?
• Have pertinent product and industry expertise?

Can you:

• Explain the essential business aspects of a project?

• Work with SMEs and a sponsor to develop an appropriate project
delivery strategy?
• Implement strategy to maximize the business value of project?

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 Some agile projects use a goal-
setting framework such as OKRs
(Objectives and Key Results) that
describes the organization’s
objectives and desired key results.

ongoing

Note: From PMI’s Standard for Portfolio Management

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 Influences

Enterprise Environmental Factors (EEFs) Refers to all the implicit input or

Conditions outside the
assets on processes used by an
• Internal and external to the immediate control of the
Internal and External organizationInternal
in operating a
team, and that influence,
organization EEFs business. This may include, but
OPAs
constrain, or direct the
(Click to show definition) is not(Click
limited to, business
to show definition)plans,
project, program, or
processes, policies, protocols,
Organizational Process Assets (OPAs) portfolio.
and knowledge.
• Project policies, procedures and
templates
• Historical project information
Process, Corporate
External Internal Policies and Knowledge
Procedures Base

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Use frameworks or prompts to understand external factors that can
introduce risk, uncertainty, or provide opportunities and affect the value and
desired outcomes of a project:
• PESTLE: Political, economic, socio-cultural, technical, legal,
environmental
• TECOP: Technical, environmental, commercial, operational, political
• VUCA: Volatility, uncertainty, complexity, ambiguity

In addition, review:​
• Comparative advantage analysis​
• Feasibility studies​
• SWOT (strengths, weaknesses, opportunities and threats) analysis​
• Assumption analysis​
• Historical information analysis​
• Risk alignment with organizational strategy

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Pressure from outside your team
• Organizational changes can
dramatically impact scope
• The project manager, project sponsor
or product owner need to be familiar
with business plans, reorganizations,
process changes and other internal
activities
• Internal business changes might cause:
• Need for new deliverables
• Reprioritization of value, including
removal of existing deliverables

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OPAs EEFs

Processes, policies and procedures Internal

Examples— Examples—
• Organizational charts • Resource capabilities
• Procurement rules • Organizational culture
• Hiring and onboarding procedures • IT software
• Distribution of facilities
Organizational knowledge bases
External
Examples—
• Engineering wikis Examples—
• Libraries or archives • Marketplace conditions
• Lessons learned repositories • Laws, regulations and standards
• Operating conditions
• Social and cultural influences
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Project name: Shawpe Lifestyle Centre

List of EEFs and OPAs:

a. Economic demand for a new shopping area

b. Historical society (conservation) building regulations
c. Local neighborhood demand for a better town center
d. Archive of past large infrastructure projects
e. Approved vendor and contractors list
f. Tenant selection process

Which are EEFs? Which are OPAs?

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• Define strategic alignment and business
acumen
• Follow guidelines for effective business
decision-making
• Explore organizational influences on projects
• Explain how projects align with broader
organizational strategy and global trends

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TOPIC C

33
• The net quantifiable benefit (tangible
and/or intangible) identified from a
business endeavor
• Part of the objectives or description of
the project in the initiating agreements
• Benefits realization is based on declared
business value

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• Communicate with stakeholders, do the research and use expert
knowledge
• Examine, evaluate and confirm to determine exactly what is or can be
of value!

Look especially at:

• Shareholder value (publicly traded companies) or

business growth (private)
• Customer value
• Employee knowledge
• Channel or business partner value

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Financial New Social
Gain Customers Benefit

First to Improvement Regularization

Market Technological, Alignment or
process, etc. compliance with
standards and
regulations

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 • Usually performed by a business analyst
• Precedes the business case
• Involves understanding of:
• Business goals and objectives
• Issues and opportunities

• Recommends proposals to address:

• What should be done
• Constraints, assumptions, risks and dependencies
Note: From Business • Success measures
Analysis for Practitioners:
A Practice Guide • Implementation approach

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• Are developed prior to project start (usually by a business analyst or
key project stakeholder) ​

• Contain information about the project’s objectives and contribution

to the business goals​

• Help the business to determine whether a project is worth the

required investment of time, money, and resources

Review the business documents periodically

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Business case:​ justifies project and establishes boundaries
• Cost-benefit analysis
• Business need
• Quality specifications
• Schedule or cost constraints

Acceptance of the business case usually leads to creation of the

project charter.

Benefits management plan​ should include:

• Processes for creating, maximizing and sustaining project
benefits
• Time frame for short- and long-term benefits realization
• Benefits owner or accountable person
• Metrics
• Assumptions, constraints and risks

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 Cost-benefit analysis: How businesses justify the selection
(authorization) of a project

Business - “smaller is better”

• Estimate payback period — Smallest number (duration) chosen
• Assess opportunity cost — What if we didn’t undertake the
project?

Financial - largest number (profit) chosen - “bigger is better”

• Time value of money
• Present value (PV)
• Future value (FV)
• Net present value (NPV)
• Internal rate of return (IRR)
• Return on investment (ROI)

You will not need to calculate any of these for the exam. ​

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PV applies to projects that span several time periods when the value
of money might change – e.g., inflation

Factors to determine PV include:

• Future value (FV)
• Interest rate (r)
• Number of periods (n)

Net present value (NPV):

• Is used for capital budgeting
• Accounts for inflation and macro-economic change (discount rate)
• Compares the value of a currency unit today to the value of the
same currency unit in the future
Year 0 1 2 3 4

Net Cash Flows -1200 +400 +800 +600 +1200

Factor 1 .91 .83 .75 .68

Net Present Value -1200 +364 +664 +450 +816

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• Start with organizational objectives
• Decide key desired results
• Refine further with objectives and key results (OKRs):
• Objectives are goals and intents
• Key results are time-bound and measurable milestones under
these goals and intents

OKR best practices:

• Support each objective with between 3-5 measurable key results
• Aim for 70% success rate to encourage competitive goal-making. A
100% success rate should be re-evaluated as not challenging
enough
• Write OKRs that are action-oriented and inspirational and include
concrete, measurable outcomes

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An incremental development approach can:
• Enable value delivery sooner
• Attain higher customer value and increased market share
• Allow partial delivery (or previews) to customers
• Enable early feedback, allowing for adjustments to the direction,
priorities and quality of the product

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3.2 Evaluate and deliver project benefits and
value
• Investigate that benefits are identified
(3.2.1)
• Evaluate delivery options to deliver value
(3.2.4)
2.1 Execute project with the urgency required
to deliver business value
• Assess opportunities to deliver value
incrementally (2.1.1)

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TOPIC D

45
• Organizations embrace change as a
strategy.
• PMOs build and sustain alignment
between projects and the organization.
• Whether your organization has a PMO or
not, you are a “changemaker”!
• Tailor a strategy to
circumstances, people and timing
• Use a robust approach

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• Assess organizational culture
• Evaluate impact of organizational change to project and determine
required actions
• Recommend options for changes to project
• Continually monitor external business environment for impacts to
project scope/backlog

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• View of leadership, hierarchy and
authority
• Shared vision, beliefs and expectations
• Diversity, equity and inclusion practices
• Risk tolerance
• Regulations, policies and procedures
• Code of conduct
• Operating environments
• Motivation and reward systems

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Risk threshold and appetite are shaped by diverse values of:
• Country/region
• Industry/sector
• Leadership
• Project team

These must be understood with care to:

• Establish effective approaches for initiating and planning projects
• Identify the accepted means for getting work done

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“Organizational change requires individual change”

The ADKAR® model names five milestones an individual must achieve in

order to change successfully:
• A – Awareness of the need for change
• D – Desire to support the change
• K – Knowledge of how to change
• A – Ability to demonstrate new skills and behaviors
• R – Reinforcement to make the change stick

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 DO DON’T

• Coach co-workers to support the • Force changes – Involve and

business — patience and consult; aim to secure buy-in to
compassionate mentoring are key the reasons for change

• Enable an agile operating system - • Alienate resisters – Change can

Coach team members in agile to breed conflict, so proceed
facilitate adoption of a change- carefully
centered mindset

• Keep knowledge current –

Continuously improve processes
and knowledge

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Define the knowledge transfer, training and
readiness activities required to implement
the change brought by the project

• Include an attitudinal survey to find out

how people are feeling
• Create an informational campaign to
familiarize people with changes
• Be open and transparent about potential
effects of the changes
• Consider creating a rollout plan

The rollout plan is not a project

management plan component.

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• A North Star statement articulates the
vision and strategic objectives
Brightline® - a
PMI initiative
• Customer insights and global
megatrends The Brightline
Transformation
• A flat, adaptable cross-functional Compass and five
transformation operating system building blocks of
transformation - an
• Internal volunteer champions (not enterprise-level
external consultants) change management
framework
• Inside-Out Employee Transformation
(similar to ADKAR)

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3.4 Support organizational change
• Assess organizational culture (3.4.1)
• Evaluate impact of organization change
to project, and determine required
actions (3.4.2)
• Evaluate impact of the project to the
organization and determine required
actions (3.4.3)

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TOPIC E

55
The framework, functions, and processes
that guide project management activities to
create a unique product, service, or result
to meet organizational, strategic, and
operational goals.

Key benefits:
• Offers a single point of accountability
• Encompasses the project life cycle

Governance type differs among

organizations and projects.

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56
 Too much governance can annoy stakeholders, while relaxed
governance can lead to a lack of stakeholder engagement or
accountability.

Governance:
• Is typically already in place – established by a PMO or aligned with
organizational policies
• Depends on strategic importance of project, constraints or oversight
requirements

• Critical for managing internal or external business environment

change and deviations in budget, scope, schedule, resources or
quality
• Budget management oversight is a key governance area.

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Processes for:

• Change • Stage gate or phase reviews

• Communication • Guidelines for aligning project governance
• Documentation — i.e., project and organizational strategy
management plan • Project life cycle and development
• Decision-making approach

• Internal stakeholder alignment with • Project organization chart with roles

project process requirements • Project success and deliverable acceptance
• Review and approval of changes above criteria
project manager authority level • Relationship among project team,
• Risk and issue identification, escalation organizational groups and external
and resolution stakeholders

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Can:
• Document outputs and expectations
• Provide a clear view of project status from:
• Defined iteration/sprint expectations and outputs
• Releases tied to specific dates
• “Real-time” monitoring of project output through daily standups

Iterative approaches enable quicker and less costly identification of

value-based outputs than predictive

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 • Provides project oversight
• May include project sponsor, senior managers and PMO resources
• May be responsible for:
• Reviewing key deliverables
• Providing guidance for project decisions

Does anyone have Projects that use Scrum or SAFe® use intermediary governance
experience with a project boards to liaise between the project and organizational
governance board? governance
Describe how it works
with your project.

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For problems outside a project’s thresholds or tolerance levels:

• Escalate to the responsible stakeholder who is authorized to take

action;

• But if an issue is within the threshold, then work with the team to
find a resolution.

AUTHORITY
Responsible
Stakeholders

Project
TOLERANCE
Team

PROBLEM

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 Governance system works alongside the value delivery system — the
project life cycle.

Why? To enable smooth workflows, manage issues and support

decision making.
Remember the project
management principle -
Recognize, evaluate and
respond
to system interactions
Value delivery as Value delivery
product of life cycle embedded in life cycle

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 Predictive Adaptive

Split work into phases Split work into releases

Review results at a phase gate – aka,

Review results at end of iterations
governance gate, kill point, or tollgate

Decide:
• Continue to the next phase Gather feedback and take action to improve
• Continue with modifications, or value in next iteration
• End a project or program

Continue until customer’s acceptance criteria –

e.g. definition of done or MVP – is satisfied or
project ends

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Phases produce one or more deliverables; outputs from one phase are
generally inputs to the next phase.
They can have sequential or overlapping relationships.

PHASE GATE

PHASE 3
PHASE 1 PHASE 2

0 6 12 18 24 30 36

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 PHASE 3
PHASE 1 PHASE 2

At the • Verify and validate project assumptions

beginning of a • Analyze risks
phase: • Provide detailed explanation of phase deliverables

• Key deliverables produced

At the end:
• Review to ensure completeness and acceptance

If huge risks are encountered, deliverables are no longer

needed or requirements change, a phase or project will be
terminated.
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2.14 Establish project governance structure
• Determine appropriate governance for a
project (e.g., replicate organization
governance) (2.14.1)
• Define escalation paths and thresholds
(2.14.2)

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TOPIC F

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• Internal and external standards include:
• Government regulations
• Corporate policies
• Product and project quality
• Project risk
• PMO monitors compliance at organizational level
• Project team is also responsible for project activity-related compliance,
including:
• Quality of processes and deliverables/products
• Procurement and work by vendors

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Legal or regulatory constraints include:
• Requirements for specific practices
• Standards
• Privacy laws
• Handling of sensitive information

Quality: Tailor to your project — How much

process rigor and quality control is
relevant?

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• Environmental risks
• Workplace health and safety
• Ethical/non-corrupt practices
• Social responsibility
• Quality
• Process risks

Categories vary based on:

• Industry and solution scope
• Unique legal and regulatory exposure

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• Where/who in the organization handles compliance?
• What legal or regulatory requirements impact the organization? e.g.
workplace safety, data protection, requirements for professional
memberships
• What is the organization’s quality policy?
• Are the team and stakeholders aware of compliance matters?

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• Proactively track and manage risks for compliance requirements
• Be prepared to perform quality audits
• Continuously validate legal and regulatory compliance for
deliverables
• Check compliance before the end of the project to avoid transferring
issues
• In a risk or dedicated compliance register, include:
o The identified risk
o A responsible risk owner
o Impact of a realized risk
o Risk responses

Larger organizations or those in highly regulated industries

typically have a compliance department or officer.

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• Documentation: Updated compliance needs and risks
• Risk planning: Prioritize compliance in risk planning
• Compliance council: Includes quality/audit specialists and relevant
legal/technical specialists
• Compliance audit: Formal process
• Compliance stewardship: It’s your responsibility!

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 Let’s talk about compliance.

• Does your organization have a quality

policy?
• Do you know where to find the quality
policy or standards for your projects?
• What kinds of compliance activities are
you involved with?

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3.1 Plan and manage project compliance
• Confirm project compliance requirements
(e.g., security, health and safety,
regulatory compliance (3.1.1)
• Classify compliance categories (3.1.2)
• Analyze the consequences of non-
compliance (3.1.5)

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