251373086-PgMP-Standard-Exam-Study-Notes.docx

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



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



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



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



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



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



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



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.



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.

251373086-PgMP-Standard-Exam-Study-Notes.docx

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