Connecting Performance Based Project Management with PMI PMBOK

1. PERFORMANCE–BASED
PROJECT MANAGEMENT®
The Principles and Practices needed to increase the
Probability of Program Success (PoPS).
V1.0
9/14/2013
Niwot Ridge, LLC

2. 5 Principles of Project Success
What does done look like?
How do we get there?
Are there enough resources?
What are progress impediments?
How do we measure progress?
Performance-Based Project Management℠, Copyright ® Niwot Ridge Consulting, LLC, 2012

3. Deliver capabilities for stakeholders defined through Scenarios and Use
Cases, assessed with Measures of Effectiveness (MoE) for each
deliverable, that fulfills the mission or business case. Capabilities state
what Done looks like in units meaningful to the end user.
Define a Master Plan and Master Schedule that periodically assesses the
increasing maturity of the project through Measures of Effectiveness (MoE).
Schedules describe the sequence of work assessed using Measures of
Performance (MoP).
Define and allocate staff, facilities, materials, and external dependencies
for each deliverable. All conflicts are identified and mitigation plans put in
place. Periodic assessments of these dependencies, the probability of
future conflicts, and their mitigations are shown in the master schedule.
Embed risk management in all activities to identify the probability of
occurrence; probabilistic consequences; impacts on cost, schedule, and
technical performance; handling plans and residual risk handling; and
overall probability of project success is part of the business rhythm.
Measure physical percent complete with tangible evidence of progress to
plan. Measures of Effectiveness (MoE), Measures of Performance (MoP),
Technical Performance Measures (TPM), and compliance with cost and
schedule plans define the probability of success. Performance Based Management(sm), Copyright ® Glen B. Alleman, 2012

4. Identify
Needed
Capabilities
Identify
Baseline
Requirements
Establish
Performance
Measurement
Baseline
Execute
Performance
Measurement
Baseline
Perform Continuous Risk Management (CRM)
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5 Practices That Increase the Probability of
Project Success (PoPS)
Performance-Based Project Management℠, Copyright ® Niwot Ridge Consulting, LLC, 2012

5. Identify the Capabilities needed to achieve a project objective or end
state. Define these capabilities through scenarios or Use Cases from the
customers Point of View. The success of these capabilities are defined
through Measures of Effectiveness (MoE) for the business.
Identify both technical and operational requirements that fulfill the
needed capabilities at the planned time, for the planned cost, with the
planned performance. Assure each requirement is traceable to the needed
capability and each capability has a defined requirement.
Develop the Performance Measurement Baseline (PMB) showing the
sequence of work, the planned budget for that work, the outcomes from
the work effort, the risk reduction activities for each outcome. Measure
these activities in Measures of Performance (MoP).
Execute the PMB in the planned order, assuring all work is completed
before moving the next step in the plan. During execution measure project
performance with adherence to cost, schedule, and Technical Performance
Measures (TPM) and their Key Performance Parameters (KPP)
Perform Continuous Risk Management during all steps by Identifying Risks
that impede success, analyze them for their impact, make plans to handle
the risks, track the effectiveness of these plans, control the work of the
handling efforts, and Communicate with everyone on the project.Performance-Based Project Management℠, Copyright ® Niwot Ridge Consulting, LLC, 2012

6. 5 Processes Needed to Implement the
Principles and Practices
Organizing
Budgeting &Scheduling
Project Accounting
Performance Analysis
Change Control
Performance-Based Project Management℠, Copyright ® Niwot Ridge Consulting, LLC, 2012

7. Describe the work performed during the project, the functional
organizations executing this work and how they are related. Define the
authorized work, identify resources needed to deliver this work, and how
integration of the work delivers value to the customer.
Use tools and processes to create the schedule and the budget for the
work, so it can be performed in the planned sequence. Identify significant
interdependencies required to meet the physical delivery requirements to
the customer and the risk handling processes needed for success.
Define, track, report, and adjust funding, budgeting, and staff to assure
the project maintains its planned production of value to the customer.
Capture all costs to match the budget and identify the variances between
plan and actual cost and project performance.
Measure progress to plan in terms of cost, schedule, and technical
performance by comparing planned expenditures to actual expenditures,
planned schedule to actual schedule, and planned technical performance
to actual technical performance. All three are needed for success.
Identify variances, take corrective actions to close gaps. Record these
corrective actions in the Performance Measurement Baseline and use these
to forecast future cost, schedule, and technical performance.
Performance-Based Project Management℠, Copyright ® Niwot Ridge Consulting, LLC, 2012

8. Connecting Performance-Based Project Management®
with the 9 Knowledge Areas of PMI PMBOK®
The 9 Knowledge Areas
of PMBOK®
Capabilities Based
Planning
Requirements
Baseline
Performance
Measurement
Baseline
PMB
Execution
Continuous Risk
Management
1 Integration Management
Concept of
Operations
IPT dependencies
SE interface
management
Interface
Management
2 Scope Management Capability flow down
Requirements
Flowdown Tree
WBS/TPM
Integration
REQ
Management
Growth Control
3 Time Management Capability need date
SA/AC Delivery
Dates
Integrated
Master Schedule
Schedule
Variance
EAC Control
4 Cost Management
Traceability
Matrix
Integrated
Master Schedule
Cost Variance EAC Control
5 Quality Management
Quality Mgmt
Impact Matrix
Integrated
Master Schedule
TPM Variance
Variance
Management
6
Human Resource
Management
Responsibility
Assignment
Matrix
Resource Loaded
Schedule
Resource
Management
Plan
FTE Management
7
Communications
Management
Requirements
Traceability
Performance Risk Messaging
9 Risk Management
Risk Management
Plan
Risk Register IMS / Risk Risk Buy Down RM Processes
9
Procurement
Management
Supply Chain
Management
SCM Channels SCM Activities
SCM
Performance
SK Management
ChapterX
8

9. Connecting Performance-Based Project Management®
with the 5 Process Groups of PMI PMBOK®
Performance-Based Project Management® Process Areas
The 5 Process
Groups of PMBOK®
Capabilities
Baseline
Requirements
Baseline
Performance
Measurement
Baseline
PMB
Execution
Continuous
Risk
Management
1 Initiating
Concept of
Operations
2 Planning
Integrated
Master Plan
Integrated
Master
Schedule
Plan Risks
3 Executing
Work
Package
Sequencing
Work
Authorization
Measure Risks
4
Monitoring and
Control
Integrated
Master
Schedule
Performance
Based Earned
Value
Monitor Risks
5 Closing
Integrated
Master
Schedule
Integrated
Master
Schedule
Retire Risks
ChapterX
9
Performance-Based Project Management®, Copyright © Glen B. Alleman, 2012, 2013