PM Notebook

PM Notebook
Summarizing Project Management Concepts for the PMP
Exam
Mohammad Elsheimy Road to PMP

PM NOTEBOOK CHAPTER 1 – INTRODUCTION | PROJECT MANAGEMENT
DISCLAIMER: THE MATERIAL INCLUDED IN THIS DOCUMENT IS BASED ON DATA / INFORMATION
GATHERED FROM VARIOUS RELIABLE SOURCES. NONE OF THIS DATA / INFORMATION IS A PROPERTY
OF THE AUTHOR.
1
DISCLAIMER: THE MATERIAL INCLUDED IN THIS DOCUMENT IS
BASED ON DATA/INFORMATION GATHERED FROM VARIOUS
RELIABLE SOURCES. NONE OF THIS DATA/INFORMATION IS A
PROPERTY OF THE AUTHOR. NONE IS INTENDED TO MAKE A
PROFIT IN ANY WAY. THIS IS FOR PERSONAL USE ONLY.

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No great man ever complains of want of opportunity.
Ralph Waldo Emerson

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Table of Contents
Chapter 1 – Introduction ...................................................................................................................................... 13
Project Management........................................................................................................................................ 13
Portfolio, Program, Project and Operations.................................................................................................. 13
Project Initiation Context .................................................................................................................................. 13
Benefits Realization Management (BRM)...................................................................................................... 14
Identify Benefits............................................................................................................................................... 14
Execute Benefits.............................................................................................................................................. 14
Sustain Benefits................................................................................................................................................ 14
Business Documents........................................................................................................................................... 14
Business Case .................................................................................................................................................. 15
Benefit Management Plan ........................................................................................................................... 15
Project Selection Methods ............................................................................................................................... 15
Benefit Measurement Methods (Comparative Approach)................................................................... 16
Constrained Optimization Methods / Mathematical Model................................................................. 20
Non-Financial Considerations ...................................................................................................................... 20
Constraints ........................................................................................................................................................... 20
Theory of Constraints ..................................................................................................................................... 21
Project Lifecycle ................................................................................................................................................. 21
Project Management Methodology (PMM)................................................................................................. 22
Predictive Lifecycle / Plan-Driven / Waterfall ........................................................................................... 22
Iterative and Incremental Lifecycles / Iterations...................................................................................... 22
Adaptive Lifecycle / Change-Driven / Agile............................................................................................ 23
Hybrid Lifecycle / Structured Agile ............................................................................................................. 26
Gates Methodology ...................................................................................................................................... 26
Integrated Project Management (IPM) ..................................................................................................... 26
Projects integration Sustainable Methods (PRiSM)................................................................................... 26
Projects IN Controlled Environments (PRINCE2)........................................................................................ 27
Project Documents ............................................................................................................................................ 27
Additional Terms ................................................................................................................................................. 28
Chapter 2 – Organizations ................................................................................................................................... 30
Enterprise Environmental Factors (EEFs) ......................................................................................................... 30
Project Management Information System (PMIS).................................................................................... 30
Organizational Process Assets (OPAs)............................................................................................................ 31

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Organization System.......................................................................................................................................... 31
Organizational Structure................................................................................................................................... 32
Project-Based Organizations (PBO) ............................................................................................................ 34
Project Expediter vs. Project Coordinator ..................................................................................................... 34
Organizational Hierarchy.................................................................................................................................. 34
Project Management Office (PMO)............................................................................................................... 35
Organizational Project Management (OPM)............................................................................................... 35
Organizational Project Management Maturity Model (OPM3) ............................................................ 35
Capability Maturity Model Integration (CMMI)........................................................................................ 35
Project Environment........................................................................................................................................... 36
Project Complexity............................................................................................................................................. 36
Project Success Factors..................................................................................................................................... 36
Internal Factors ............................................................................................................................................... 36
External Factors............................................................................................................................................... 37
Chapter 3 – The Process Framework .................................................................................................................. 39
Phases................................................................................................................................................................... 39
Phase-to-Phase Relationship........................................................................................................................ 39
Process Groups ................................................................................................................................................... 39
Knowledge Areas............................................................................................................................................... 39
Project Management Plans ............................................................................................................................. 40
Work Performance ............................................................................................................................................. 40
Chapter 4 – Integration Management.............................................................................................................. 42
Key Terms ............................................................................................................................................................. 42
Integration Types ............................................................................................................................................ 42
Changes, Defects, and Corrections........................................................................................................... 42
Processes.............................................................................................................................................................. 42
1 – Develop Project Charter (Initiating) ..................................................................................................... 42
2 – Develop Project Management Plan (Planning)................................................................................. 43
3 – Direct and Manage Project Work (Executing)................................................................................... 44
4 – Manage Project Knowledge (Executing)............................................................................................ 45
5 – Monitoring and Controlling Project Work (Monitoring & Controlling) ............................................ 45
6 – Perform Integrated Change Control (Monitoring & Controlling) ................................................... 46
7 – Closing Project or Phase (Closing) ........................................................................................................ 47

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Statement of Work (SOW) / Scope of Services ............................................................................................ 49
Product Analysis.................................................................................................................................................. 49
Knowledge Types ............................................................................................................................................... 50
Knowledge Management Techniques.......................................................................................................... 50
Configuration Management ........................................................................................................................... 51
Program/Project Evaluation and Review Technique (PERT)...................................................................... 51
PERT Planning .................................................................................................................................................. 52
Chapter 5 – Scope Management...................................................................................................................... 53
Key Terms ............................................................................................................................................................. 53
Scope................................................................................................................................................................ 53
Requirements .................................................................................................................................................. 53
Processes.............................................................................................................................................................. 54
1 – Plan Scope Management (Planning) .................................................................................................. 54
2 – Collect Requirements (Planning) .......................................................................................................... 54
3 – Define Scope Statement (Planning)..................................................................................................... 55
4 – Create Work Breakdown Structure (WBS) (Planning)........................................................................ 56
5 – Validate Project Scope (Monitoring & Controlling)........................................................................... 58
6 – Control Project Scope (Monitoring & Controlling)............................................................................. 59
WBS Quality.......................................................................................................................................................... 59
Quality Principle 1........................................................................................................................................... 60
Quality Principle 2........................................................................................................................................... 60
Scope Creep vs. Gold Plating ......................................................................................................................... 60
Chapter 6 – Schedule Management................................................................................................................. 62
Key Terms ............................................................................................................................................................. 62
Project Work vs. Project Manager Work..................................................................................................... 62
Duration vs. Effort............................................................................................................................................ 62
Dependencies ................................................................................................................................................ 62
Processes.............................................................................................................................................................. 62
1 – Plan Schedule Management (Planning)............................................................................................. 62
2 – Define Activities (Planning)..................................................................................................................... 63
3 – Sequence Activities (Planning).............................................................................................................. 64
4 – Estimate Activity Durations (Planning).................................................................................................. 65
5 – Develop Schedule (Planning)................................................................................................................ 65

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6 – Control Schedule (Monitoring & Controlling) ..................................................................................... 67
Activities ............................................................................................................................................................... 68
Types ................................................................................................................................................................. 68
Relationships.................................................................................................................................................... 69
Critical Path Method (CPM) / Logic-Driven Scheduling............................................................................. 70
Float / Slack ..................................................................................................................................................... 70
Components ................................................................................................................................................... 70
Critical Chain Method (CCM) ......................................................................................................................... 71
Schedule Compression ..................................................................................................................................... 71
Resource Optimization Techniques ................................................................................................................ 72
Chapter 7 – Cost Management.......................................................................................................................... 74
Key Terms ............................................................................................................................................................. 74
Cost Baseline ................................................................................................................................................... 74
Processes.............................................................................................................................................................. 74
1 – Plan Cost Management (Planning)...................................................................................................... 74
2 – Estimate Costs (Planning) ....................................................................................................................... 75
3 – Determine Budget (Planning)................................................................................................................ 76
5 – Control Costs (Monitoring & Controlling)............................................................................................. 77
Cost Types............................................................................................................................................................ 78
Direct / Indirect............................................................................................................................................... 78
Fixed / Variable............................................................................................................................................... 78
Additional Cost Types.................................................................................................................................... 78
Earned Value Management (EVM)................................................................................................................ 79
Techniques....................................................................................................................................................... 79
Performance ................................................................................................................................................... 80
Formulas ........................................................................................................................................................... 80
Chapter 8 – Quality Management..................................................................................................................... 84
Key Terms ............................................................................................................................................................. 84
Responsibility ................................................................................................................................................... 84
Quality Control vs. Quality Assurance ........................................................................................................ 84
Quality Approaches....................................................................................................................................... 85
Precision vs. Accuracy .................................................................................................................................. 85
Quality vs. Grade............................................................................................................................................ 85

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Standards vs. Regulations ............................................................................................................................. 86
Auditing ............................................................................................................................................................ 86
Processes.............................................................................................................................................................. 86
1 – Plan Quality Management (Planning) ................................................................................................. 86
2 – Manage Quality / Quality Assurance (Executing)............................................................................. 87
3 – Control Quality (Monitoring & Controlling).......................................................................................... 88
Quality Theories................................................................................................................................................... 89
Deming’s 14 Points ......................................................................................................................................... 90
David Garvin’s Attributes of Quality ........................................................................................................... 90
Quality Improvement Techniques................................................................................................................... 91
Quality Costs ....................................................................................................................................................... 91
Inspection ............................................................................................................................................................ 92
Testing............................................................................................................................................................... 92
Statistical Sampling ........................................................................................................................................ 92
Design for X.......................................................................................................................................................... 93
Seven Basic Quality Tools (7QL)....................................................................................................................... 93
Variation Causes ................................................................................................................................................ 94
Causes .............................................................................................................................................................. 94
Variation........................................................................................................................................................... 94
Chapter 9 – Resources Management ............................................................................................................... 97
Key Terms ............................................................................................................................................................. 97
Processes.............................................................................................................................................................. 97
1 – Plan Resource Management (Planning) ............................................................................................. 97
2 – Estimate Activity Resources (Planning) ................................................................................................ 98
3 – Acquire Resources (Executing).............................................................................................................. 99
4 – Develop Project Team (Executing).....................................................................................................101
5 – Manage Project Team (Executing) ....................................................................................................101
6 – Control Resources (Monitoring & Controlling) ..................................................................................102
Roles and Responsibilities................................................................................................................................103
Responsibility Matrices.................................................................................................................................103
Organizational Charts..................................................................................................................................104
Roles of Project Sponsor/Initiator...............................................................................................................105
Roles of Project Team ..................................................................................................................................105
Roles of Stakeholders...................................................................................................................................106

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Roles of Financial Manager........................................................................................................................106
Roles of Project Manager ...........................................................................................................................106
Roles of Program Manager ........................................................................................................................107
Roles of Portfolio Manager .........................................................................................................................107
Competency Model........................................................................................................................................107
Basic Social Power ...........................................................................................................................................108
Human Resource Theories ..............................................................................................................................109
Leadership Theories......................................................................................................................................109
Management Systems.................................................................................................................................112
Motivation Theories ......................................................................................................................................113
Tuckman’s Group Development Stages .................................................................................................116
Other Theories ...............................................................................................................................................116
Delegation of Authority...................................................................................................................................117
Delegation Steps ..........................................................................................................................................117
What to Delegate ........................................................................................................................................117
What not to Delegate .................................................................................................................................118
Guidelines for Effective Delegation..........................................................................................................118
Obstacles to Delegation.............................................................................................................................118
Types of Teams..................................................................................................................................................118
Virtual/Distributed Teams ............................................................................................................................119
Team Building Activities...................................................................................................................................119
Rewards and Recognition..............................................................................................................................119
Team Performance Review............................................................................................................................120
Personnel Assessment Tools / Team Performance Assessment ...........................................................120
Project Performance Appraisals................................................................................................................120
Conflict Management ....................................................................................................................................120
Sources of Conflicts......................................................................................................................................121
Conflict Resolving.........................................................................................................................................121
Stress Factors .................................................................................................................................................122
Influence Factors..........................................................................................................................................122
Additional Terms ...............................................................................................................................................122
Chapter 10 – Communication Management................................................................................................123
Key Terms ...........................................................................................................................................................123
Communication Methods/Styles...............................................................................................................123
Communication Model...............................................................................................................................123

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Communication Direction ..........................................................................................................................124
Distribution Methods ....................................................................................................................................124
Communication Types ................................................................................................................................124
Communication Technology .....................................................................................................................124
Communication Flow ..................................................................................................................................124
Processes............................................................................................................................................................125
1 – Plan Communication Management..................................................................................................125
2 – Manage Communications (Executing) .............................................................................................126
3 – Monitor Communications (Monitoring & Controlling).....................................................................126
Aspects of Effective Communication ..........................................................................................................127
Listening..........................................................................................................................................................127
Message Impact...........................................................................................................................................128
5 Cs of Effective Communication .............................................................................................................128
Formulas .............................................................................................................................................................128
Chapter 11 – Risk Management .......................................................................................................................130
Key Terms ...........................................................................................................................................................130
Risk Appetite vs. Risk Tolerance .................................................................................................................130
Risk Levels.......................................................................................................................................................131
Risk Sources....................................................................................................................................................131
Processes............................................................................................................................................................132
1 – Plan Risk Management (Planning)......................................................................................................132
2 – Identify Risks (Planning) .........................................................................................................................133
3 – Perform Qualitative Risk Analysis (Planning)......................................................................................134
4 – Perform Quantitative Risk Analysis (Planning)...................................................................................135
5 – Plan Risk Responses (Planning) ............................................................................................................136
6 – Implement Risk Responses (Executing) ..............................................................................................137
7 – Monitor Risks (Monitoring & Controlling) ............................................................................................138
Perspective Project Examination / Prompt Lists (Identification)..............................................................139
Risk Parameter Assessment (Qualitative).....................................................................................................139
Sensitivity Analysis (Quantitative) ..................................................................................................................140
Expected Monetary Value (Quantitative) ..................................................................................................140
Risk Types............................................................................................................................................................141
Event-Based Risks..........................................................................................................................................141
Nonevent-Based Risks..................................................................................................................................141

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Risk Response Strategies .................................................................................................................................142
Negative Risks (Threats)...............................................................................................................................142
Positive Risks (Opportunities) ......................................................................................................................143
Contingent Response Strategy vs. Fallback Plan ......................................................................................143
Contingency Reserve vs. Management Reserve ......................................................................................143
Scales..................................................................................................................................................................144
Chapter 12 – Procurement Management......................................................................................................145
Key Terms ...........................................................................................................................................................145
Contract Terms..............................................................................................................................................145
Processes............................................................................................................................................................146
1 – Plan Procurement Management (Planning) ....................................................................................146
2 – Conduct Procurements (Executing)...................................................................................................147
3 – Control Procurement (Monitoring & Controlling).............................................................................149
Make-or-Buy Analysis.......................................................................................................................................150
Factors ............................................................................................................................................................150
Formula...........................................................................................................................................................150
Negotiations......................................................................................................................................................151
Factors of Negotiations ...............................................................................................................................151
Agreement Types .............................................................................................................................................151
Procurement Documents ...............................................................................................................................152
Contract Types .................................................................................................................................................153
Fixed Price (FP) / Lump-Sum Contracts....................................................................................................153
Cost Plus (CP) / Cost-Reimbursable (CR) Contracts..............................................................................154
Time and Materials (T&M) / Unit Price Contracts ...................................................................................155
Incentives.......................................................................................................................................................155
Awards............................................................................................................................................................155
Risk...................................................................................................................................................................155
Point of Total Assumption (PTA) / Breakpoint..............................................................................................155
Formula...........................................................................................................................................................155
Example..........................................................................................................................................................156
Notes...............................................................................................................................................................156
Market Conditions............................................................................................................................................156
Handling Changes...........................................................................................................................................156
Centralized/Decentralized Contracting......................................................................................................157

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Breaches ............................................................................................................................................................157
Alternative Dispute Resolution (ADR) .......................................................................................................157
Damages .......................................................................................................................................................158
Termination........................................................................................................................................................158
Chapter 13 – Stakeholder Management........................................................................................................162
Key Terms ...........................................................................................................................................................162
Processes............................................................................................................................................................162
1 – Identify Stakeholders (Initiating) ..........................................................................................................162
2 – Planning Stakeholder Engagement (Planning)................................................................................163
3 – Manage Stakeholder Engagement (Executing)..............................................................................164
4 – Monitor Stakeholder Engagement (Monitoring & Controlling) .....................................................165
Stakeholder Analysis ........................................................................................................................................166
Stakeholder Stakes.......................................................................................................................................166
Stakeholder Influence .................................................................................................................................166
Stakeholder Classifications .........................................................................................................................166
Stakeholder Engagement Grid..................................................................................................................166
Salience Model.............................................................................................................................................167
Stakeholder Cube ........................................................................................................................................169
Stakeholder Influence Mapping................................................................................................................169
Stakeholder Engagement/Assessment Matrix........................................................................................170
Requirements vs. Expectations......................................................................................................................170
Chapter 14 – Professional and Social Responsibility .....................................................................................171
Responsibility .....................................................................................................................................................171
Respect ..............................................................................................................................................................171
Fairness ...............................................................................................................................................................171
Honesty...............................................................................................................................................................171
Appendix A – Data Analysis Techniques .........................................................................................................173
Appendix B – Data Gathering Techniques .....................................................................................................175
Appendix C – Data Representation Tools.......................................................................................................177
Appendix D – Decision-Making Techniques ...................................................................................................185
Appendix E – Estimating Techniques................................................................................................................187
3-Point Estimates...............................................................................................................................................187

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Simple/Triangular Distribution .....................................................................................................................187
Beta Distribution / Weighted Average / PERT (Program/Project Evaluation Review Technique) 187
Other Estimating Techniques .........................................................................................................................188
Appendix F – Forecasting Methods..................................................................................................................190
Causal/Econometric Methods ......................................................................................................................190
Time Series Methods.........................................................................................................................................190
Judgmental Methods......................................................................................................................................191
Other methods..................................................................................................................................................192
Appendix G – Interpersonal/Team/Soft Skills..................................................................................................193
Reactive vs. Proactive.....................................................................................................................................195
Appendix H – Formula Sheet .............................................................................................................................196
Project Selection Methods .............................................................................................................................196
Depreciation .................................................................................................................................................196
Planned Value ..............................................................................................................................................196
Other Methods..............................................................................................................................................197
Schedule Management .................................................................................................................................197
Cost Management ..........................................................................................................................................197
Earned Value Management (EVM)..........................................................................................................197
Communication ...............................................................................................................................................200
Risk Management ............................................................................................................................................200
Procurements....................................................................................................................................................200
Estimates ............................................................................................................................................................201

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Project Management
Project management is the application of knowledge, skills, tools, and techniques to manage
activities to meet the project requirements.
Portfolio, Program, Project and Operations
Portfolio –
 A group of projects, programs, and operations that are linked together by a business goal
to facilitate effective management to meet strategic business objectives.
 Usually the responsibility of senior management.
 Success is measures in terms of aggregate performance of portfolio components.
Program – A group of projects that are closely linked, to the point where managing them together
provides some benefit. Programs usually include an element of ongoing activity.
Project – a temporary endeavor that is progressively elaborated and produces a specific result.
 Tactical – One operational goal. Probably does not entail contributions by most
employees. e.g. Moving to a new building
 Strategic – has a primary goal of gaining the competitive advantage by focusing on the
organization's overall direction.
Operations/Processes –
 Ongoing work to support the business and systems of the organization.
 Permanent endeavors.
 Produce repetitive outputs.
Projects intersect with operations in many cases including –
 At each closeout phase.
 While expanding outputs.
 During the product development process.
 Until the end of the product life cycle.
 When improving operations or the product development lifecycle.
Project Initiation Context
Why projects are created –
1. Regulatory, legal, or social requirements.
2. Stakeholder requests.
3. Technological advances.

PM NOTEBOOK
CHAPTER 1 – INTRODUCTION | BENEFITS REALIZATION MANAGEMENT
(BRM)
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4. Create, improve, or fix products, processes, or services.
Benefits Realization Management (BRM)
Benefits Realization Management (BRM) – provides organizations with a way to measure how
projects and programs add true value to the enterprise.
Identify Benefits
Position the intended business results as criteria for determining the best project and program
investments by –
 Utilizing the appropriate tools, such as a benefits register, benefits realization roadmap, and
benefits breakdown structures.
 Confirming that key stakeholders, sponsors, and customers have reviewed and approved the
benefits realization roadmap.
 Developing meaningful metrics and key performance (KPI) indicators to measure the actual
delivery of benefits versus the planned benefits
Execute Benefits
Prepare to capture and realize both intended and unintended benefits to minimize risks to future
benefits and maximize the opportunity to gain additional benefits by –
 Ensuring the project or program remains aligned with the organization’s strategic objectives.
 Evaluating risks and KPIs related to financials, compliance, quality, safety, and stakeholder
satisfaction, as they might impact the delivery of benefits
 Recording progress and reporting to key stakeholders as directed in the communication plan
 Ensuring key stakeholders and beneficiaries have reviewed, understand, and act in
accordance with identified benefit realization dependencies.
Sustain Benefits
Deliver continuous value from outputs and outcomes once they transition back to the business by –
 Implementing the required change control based on defined level of tolerance, and taking
corrective action.
 Performing a benefits assessment, which includes formally verifying that the benefits have
been delivered and are being realized.
 Sharing crucial information about how the deliverables are contributing to business success.
 Monitoring the continued suitability of the new capability or other change factors.
 Monitoring actual benefit results against targets and managing for variances.
Business Documents
Contains, but not limited to –

PM NOTEBOOK CHAPTER 1 – INTRODUCTION | PROJECT SELECTION METHODS
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Business Case
A document studies why it is worth to spend money on the project (benefits/reasons/financial
validity.) It is the result of Business Case Analysis (BCA), it could be at program level and it is the
responsibility of project sponsor. It tells us the following –
 Identify business needs (business problems, opportunities, stakeholders affected, etc.)
 Project feasibility –
o Market Demand – For example, building more fuel-efficient cars in response to
gasoline shortages.
o Social Need
o Ecological/Environmental Impact
o Organizational Need
o Customer Requests
 Project determination (organization strategies, goals, objectives, known risks, gap analysis,
etc.)
 Analysis of the situation.
 Recommendations for the project.
 Documents high-level strategic and operational assumptions.
 Should be reviewed periodically on multi-phase projects to ensure the project is on track to
deliver the business benefits.
 Critical Success Factors – what constitutes success and the ways you know that you are
project is successful.
 Business value – the value/benefits that your project creates for the organization. It is
generally described in Business Case document.
o Tangible – Like monetary assets and market share.
o Intangible – Like goodwill, reputation and brand recognition.
Benefit Management Plan
Describes how and when the benefits of the deliverables of the project will bring and describes how
to measure the benefits (also including the alignment with organization strategies, assumptions and
risks). Often created by business analyst.
 Target Benefits – Such as expected tangible and intangible value.
 Strategic Alignment – How project benefits align to the business strategies.
 Timeframe – When will benefits be realized (by phase / short-term / long-term / ongoing /
etc.)
 Metrics – The measures to be used to show benefits realized, direct measures, and indirect
measures.
 Assumptions – The factors expected to be in place or to be in evidence.
 Risks – The risks for realization of benefits.
Project Selection Methods
Project Selection is a process to assess each project idea and select the project with the highest
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 Projects are still just suggestions at this stage, so the selection is often made based on only
brief descriptions of the project.
 Any selection technique must be evaluated based on the degree to which it will meet the
organization’s objective for the project.
 The most important criterion for building project selection method is realism.
Benefit Measurement Methods (Comparative Approach)
Depreciation
 Depreciation – A reduction in the value of an asset over time.
 Salvage Value – The estimate resale value of an asset at the end of its useful life.
 Book Value – The asset's cost minus the asset's accumulated depreciation
Straight Line Depreciation – The same amount of depreciation is taken each year.
E.g. A $1000 item with a 10-year useful life and no salvage value would be depreciated at $100
per year.
Accelerated Depreciation – Faster than straight line.
 Double Declining Balance
 Sum of Years Digits (SYD)
Double Declining Balance – Percentage is double the straight line depreciation.
Sum of Years Digits (SYD) –
𝑺𝒀𝑫 =
𝒏 (𝒏 + 𝟏)
𝟐
= 𝟓𝒚𝒆𝒂𝒓𝒔 =
𝟓(𝟓 + 𝟏)
𝟐
= 𝟏𝟓
𝑫𝒆𝒑𝒓𝒆𝒄𝒊𝒂𝒕𝒊𝒐𝒏 𝑬𝒙𝒑𝒆𝒏𝒔𝒆 =
𝑹𝒆𝒎𝒂𝒊𝒏𝒊𝒏𝒈 𝒖𝒔𝒆𝒇𝒖𝒍 𝒍𝒊𝒇𝒆
𝒔𝒖𝒎 𝒐𝒇 𝒚𝒆𝒂𝒓𝒔 𝒅𝒊𝒈𝒊𝒕
∗ 𝑫𝒆𝒑𝒓𝒆𝒄𝒊𝒂𝒃𝒍𝒆 𝑪𝒐𝒔𝒕

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Return on Investment (ROI)
Return on Investment (ROI) –
 Measures the gain or loss generated on an investment relative to the amount of money
invested.
 It defines the cumulated net income from an investment at a given point in time or during a
defined period.
 It includes investment, direct and indirect costs and may include allowances for capital cost,
depreciation, risk of loss, and/or inflation.
 It is most commonly stated as a percentage of the investment or as a dimensionless index
figure.
 It is typically used for personal financial decisions, to compare a company's profitability or to
compare the efficiency of different investments.
𝑹𝑶𝑰 =
𝑵𝒆𝒕 𝑷𝒓𝒐𝒇𝒊𝒕 (𝑹𝒆𝒕𝒖𝒓𝒏)
𝑰𝒏𝒗𝒆𝒔𝒕𝒎𝒆𝒏𝒕 (𝑪𝒐𝒔𝒕)
Future Value (FV)
Future Value (FV) – To determine the future value of present money.
𝑭𝑽 = 𝑷𝑽 (𝟏 + 𝒊) 𝒏
PV = Present value
i = interest rate
n = number of periods
Present Value (PV)
Present Value (PV) – The current worth of a future sum of money given a specific rate of return.
𝑷𝑽 =
𝑭𝑽
(𝟏 + 𝒊) 𝒏
FV = Future value
i = interest rate
n = number of periods
E.g. Receiving $100 at the end of two years with interest rate of 8% = $58 now.

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𝟏𝟎𝟎
(𝟏 + 𝟎. 𝟎𝟖) 𝟐
= 𝟖𝟓. 𝟕
Net Present Value (NPV)
Net Present Value (NPV) / Net Present Worth (NPW) – The difference between the project’s current
value of cash inflow and the current value of cash outflow over many time periods. The NPV must
always be positive. When picking a project, one with a higher NPV is preferred.
To calculate NPV, you need to calculate the PV of both income and cost figures. You then sum the
income PVs and subtract the sum of cost PVs to get the value of NPV.
𝑵𝑷𝑽 = −𝑪 𝟎 + ∑
𝑪𝒕
(𝟏 + 𝒓)𝒕
𝑻
𝒕=𝟏
Simplified –
𝑵𝑷𝑽 = −𝑪 𝟎 +
𝑪 𝟏
𝟏 + 𝒓
+
𝑪 𝟐
(𝟏 + 𝒓) 𝟐
+ ⋯ +
𝑪 𝑻
(𝟏 + 𝒓) 𝑻
-C0 = Initial investment
C = Future cash flow
r = Interest rate
T = Time period
Internal Rate of Return (IRR)
Internal Rate of Return (IRR) – is a method of calculating rate of return. It is a discount rate that
makes the Net Present Value (NPV) of all cash flows from a particular project equal to zero. In other
words, if we computed the present value of future cash flows from a potential project using the
internal rate as the discount rate and subtracted out the original investment, our net present value
of the project would be zero.
 IRR is considered the minimum discount rate that management uses to identify what capital
investments or future projects will yield an acceptable return and be worth pursuing.
 You can think of the internal rate of return as the interest percentage that company has to
achieve in order to break even on its investment in new capital.
 The term “internal” refers to the fact that its calculation does not involve external factors,
such as inflation or the cost of capital.
 The higher the IRR number, the better.
𝑰𝑹𝑹 = 𝟎 = −𝑪 𝟎 +
𝑪 𝟏
𝟏 + 𝒓
+
𝑪 𝟐
(𝟏 + 𝒓) 𝟐
+ ⋯ +
𝑪 𝑻
(𝟏 + 𝒓) 𝑻
-C0 = Initial investment
C = Future cash flow
r = Interest rate
T = Time period

OF THE AUTHOR.
19
Example – Tom is considering purchasing a new machine, but he is unsure if it’s the best use of
company funds at this point in time. With the new $100,000 machine, Tom will be able to take on a
new order that will pay $20,000, $30,000, $40,000, and $40,000 in revenue.
Since it’s difficult to isolate the discount rate unless you use an excel IRR calculator. You can start
with an approximate rate and adjust from there. Let’s start with 8 percent.
As you can see, our ending NPV is not equal to zero. Since it’s a positive number, we need to
increase the estimated internal rate. Let’s increase it to 10 percent and recalculate.
As you can see, Tom’s internal return rate on this project is 10 percent. He can compare this to other
investing opportunities to see if it makes sense to spend $100,000 on this piece of equipment or
investment the money in another venture.
Other Methods
Discounted Cash Flow – future cash flows are estimated and discounted by using cost of capital
to give their present values.
Economic Value Added (EVA) –
 An estimate of economic profit, or the value created in excess of the required return of the
shareholders.
 It is also defined as the net profit after the deduction of taxes, capital expenditure, and
opportunity cost.
 Indicates whether a company s creating or destroying value to its shareholders.
 Example – for a project cost of $100, the estimated return for 1st year is $5, assuming the
same money can be invested to gain 8% per year, then the EVA is $5 – $100 * 8% = -$3.
Murder Board / Scrub-Down – a committee of questioners set up to critically review the project
and to identify as many possible threats to the project.
Opportunity Cost – is the cost that is given up when selecting another project. It is the cost of the
project not selected.
Payback Period / Management Horizon –
 The time necessary for the organization to recover the cost invested before it starts
accumulating profit.
 The project with the shorter period is better.

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 The initial investment in the project will not impact the selection criteria when payback
period is used for project selection.
Peer Reviews – you present the project proposal to the peers in the organization. These peers
review the project and then recommend some best practices adopted in other projects. The
peers also check for the viability of the project.
Scoring Model – the project selection committee lists relevant criteria, weighs them according to
their importance and their priorities, and then adds the weighted values.
Benefit/Cost Ratio (BCR) – the ratio between the Present Value of Inflow (the cost invested in a
project) and the Present Value of Outflow, which is the value of return from the project. Projects
that have a higher Benefit Cost Ratio or lower Cost Benefit Ratio are generally chosen over others.
Constrained Optimization Methods / Mathematical Model
Used for larger projects that require complex and comprehensive mathematical calculations.
 Linear Programming
 Non Linear Programming
 Integer Programming
 Dynamic Programming
 Multiple Objective Programing
Non-Financial Considerations
Other organizational factors. May include political issues, change of management, speculative
purposes, shareholders’ requests, etc.
Constraints
Constraints are factors that limit the team’s options.

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1. Time
2. Cost
3. Scope – What should be included in the project and what should not.
4. Resources – People or material you need for your project.
5. Quality
6. Risk – Whenever you make assumptions about a project, you are introducing risk.
Triple Constraint / Iron Triangle – Time, cost and scope
Theory of Constraints
 Identifying the most important limiting factors, eliminate them, then looking at the next most
important limiting factors.
 Systematically improving that constraint until it is no longer the limiting factors.
 Constraints are often referred to as bottlenecks.
 The Goal by Dr. Eliyahu M. Goldratt
Project Lifecycle
Project Management Lifecycle – Refer to Initiation, Planning, Executing, Monitoring & Controlling,
and Closing (IPECC).
Project Lifecycle –
 Unique to each type of project.
 Refers to methodology and phases of a project within an organization.
 Each phase can consist of any activities from the process groups.
 Have a definite end.
 Phases may repeat.
 Phases are generally sequential but can overlap.
Product Lifecycle / Project Lifecycle Management (PLM) –
 The process of managing the entire lifecycle of a product from its conception, through
design and manufacture, to service and disposal.
 PLM integrates people, data, processes, and business systems to provide a product
information backbone for companies.
 A product can spawn or require many projects over its life and each project has its own
project lifecycle.
 Does not have a definite end.
 Phases occur only once.
 Phases are sequential.
The five stages of a product's life are –
1. Development / Conception – generating ideas and creating the product.
2. Introduction – marketing the product and selling it.
3. Growth – sales increase

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CHAPTER 1 – INTRODUCTION | PROJECT MANAGEMENT METHODOLOGY
(PMM)
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4. Maturity – product is accepted widely and sales are at their peak.
5. Decline / Withdrawal / Retirement – selling out all of your inventory and move on to the
next product.
Project Management Methodology (PMM)
A project management methodology is essentially a set of guiding principles and processes for
managing a project. Your choice of methodology defines how you work and communicate.
Predictive Lifecycle / Plan-Driven / Waterfall
Predictive life cycles are ones in which the project scope, and the time and cost required to deliver
that scope, are determined as early in the project life cycle as practically possible.
 Fixed in scope. Variable in time and cost.
 Divided into discrete stages.
 Sequential, heavily requirements-focused.
 Easy-to-use.
 Implies high risk.
 Best for –
o Short, simple projects.
o Projects with clear and fixed requirements.
Iterative and Incremental Lifecycles / Iterations
 Iterative and incremental life cycles are ones in which project phases intentionally repeat
one or more project activities as the project team’s understanding of the product increases.
 Iterations develop the product through a series of repeated cycles.
 Increments successively add to the functionality of the product.
 For each iteration, you have to collect requirements, define scope, and define the WBS.
 Risk is analyzed before the start of each iteration.
 Work items are documented into a backlog where an accumulation of work waiting to be
done or orders to be fulfilled is available.

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Adaptive Lifecycle / Change-Driven / Agile
Adaptive life cycles are intended to respond to high levels of change and ongoing stakeholder
involvement.
Characteristics
 Adaptive methods are also iterative and incremental, but differ in that iterations are very
rapid (usually with duration of 1 to 4 weeks).
 Fixed in time and cost. Variable in scope.
 Documentation is not considered an added value in agile projects.
 Face-to-face and informal communication.
 Usually fist-to-five (or fist-of-five) voting methods is used in agile projects.
 Team and Management –
o Self-organizing teams.
o PM has a servant leadership approach.
o Team functions with an absence of centralized control.
o Team members are generalists (instead of SMEs), they are local domain experts,
and they determine how plans and components should integrate.
o Collaboration to boost productivity.
 Scope (or Backlog) –
o No new work during the iteration.
o Emerging requirements (also called progressive elaboration).
o Scope is not fully defined at start.
o The team estimate their capacity regarding the items on the backlog.
 Risk –
o More risky.
o Risk is considered when selecting the contents for each iteration.
Agile Release Planning

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 High-level summary of when we expect the product to be released.
 Product roadmap.
 The number of iterations/sprints.
Iteration Burndown Chart
A chart that shows how quickly (rate/velocity) you and your team are burning through your
customer's user stories. It tracks the work remaining, and help analyzing the variance.
Terms
Backlog (Product Scope) – a prioritized list of requirements. Owned by product owner.
Grooming the Backlog / Backlog Refinement / Scrum Artifact – The owner of the product prioritizes
the backlog before each iteration/sprint of the project.

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Timebox – a previously agreed period of time during which a person or a team works steadily
towards completion of some goal.
Story Points – an abstract measure of effort required to implement a user story. The team work
together to agree on estimates in a group setting.
Scrum
 Scrum is a specialized agile method.
 Focuses on project team.
 Involves daily 15-minutes stand-up meeting.
 Can easily lead to scope creep because there’s no fixed end-date.
Sprint – Refers to an iteration or development cycle in Scrum.
Sprint Review – To look back at what worked in that sprint.
Retrospective – the last meeting done in a sprint. The entire team, including both the Scrum Master
and the product owner should participate to determine what could be changed that might
make the next sprint more productive.
Planning Poker / Scrum Poker – a consensus-based, mostly used to estimate effort or relative size
of development goals in software development. In planning poker, members of the group make
estimates by playing numbered cards face-down to the table, instead of speaking them aloud.
The cards are revealed, and the estimates are then discussed. By hiding the figures in this way, the
group can avoid the cognitive bias of anchoring, where the first number spoken aloud sets a
precedent for subsequent estimates.
Extreme Programming (XP)
Extreme programming (XP) is a software development methodology which is intended to improve
software quality and responsiveness to changing customer requirements.
 A type of agile software development.

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26
 Advocates frequent "releases" in short development cycles, which is intended to improve
productivity and introduce checkpoints at which new customer requirements can be
adopted.
 Analysis, design, coding, and testing phases are done everyday.
Hybrid Lifecycle / Structured Agile
A combination of predictive, iterative, incremental, and/or agile approaches is a hybrid approach.
Gates Methodology
Gates methodology is a project management technique in which an initiative or project (e.g., new
product development, process improvement, and business change) is divided into distinct stages or
phases, separated by decision points (known as gates.)
Gate / Tollgate / Phase Gate / Stage Gate / Water Gate / Kill Point / Exit Gate / Phase Exit Review
– a standardized control point where the projects phase is reviewed and/or audited and
approved (or not) to continue with the next phase. The gates allow to verify if the project reaches
the expected performance.
 Called a Kill Point because it is an opportunity to kill the project.
 Funding might occur at phase gates.
 Not necessary to have a phase gate at project closure.
Integrated Project Management (IPM)
 Sometimes called Integrated Project Delivery.
 Emphasizes sharing and standardization of processes across the organization.
 Requires extensive upfront planning to ensure that all processes are well-integrated.
Projects integration Sustainable Methods (PRiSM)
 Developed by Green Project Management (GPM) Global.
 Focuses on accounting for and minimizing adverse environmental impacts of the project.
 Extends beyond the end of the project to maximize sustainability.

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Projects IN Controlled Environments (PRINCE2)
 Official project management methodology of the UK government.
 Requires extensive documentation.
 Based on 7 principles, 7 themes and 7 processes. The 7 PRINCE2 principles, for instance, are –
o Continued business justification
o Learn from experience
o Defined roles and responsibilities
o Manage by stages
o Manage by Exception
o Focus on products
o Tailor to suit the project environment
Project Documents
Refer to any project-related documents that are not part of the project management plan.
Activity Attributes Lessons Learned
Register
Quality Control
Measurements
Risk Report
Activity List Milestone List Quality Metrics Schedule Data
Assumptions Log Physical Resource
Assignments
Quality Reports Schedule Forecasts
Basis of Estimates Project Calendars Requirements
Documentation
Stakeholder Register
Change Log Project
Communications
Requirements
Traceability Matrix
Team Charter

PM NOTEBOOK CHAPTER 1 – INTRODUCTION | ADDITIONAL TERMS
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Cost Estimates Project Schedule Resource Breakdown
Structure
Test and Evaluation
Documents
Cost Forecasts Project Schedule
Network Diagram
Resource Calendars
Duration Estimates Project Scope
Statement
Resource
Requirements
Issue Log Project Team
Assignments
Risk Register
Additional Terms
Application Areas – The areas of expertise, industry, or function where a project is centered. E.g. IT,
healthcare, etc.
Cultural and Social Environment – How a project affects people and how these people may
affect the project. Includes economics, religions, demographics, etc.
MACD – Move, Add, Change, and Delete
Line of Business (LOB) – is a general term which refers to a product or a set of related products
that serve a particular customer transaction or business need.
Management by Exception (Financial) – The practice of examining the financial and operational
results of a business, and only bringing issues to the attention of management if results represent
substantial differences from the budgeted or expected amount.
PMI Talent Triangle –
1. Technical Project Management – enable the PM to effectively apply project
management knowledge. Examples are resource management, tailoring, risk
management, rolling-wave planning, integrated change control, etc.
2. Leadership / Interpersonal – allows PM to guide, motivate, and direct the team. Includes
influencing the organization, sharing power, creating an environment to meet project
objectives, and helping a group of people to bond.
3. Strategic and Business Management – ensure that the PM can see the high-level overview
of the organization and effectively negotiate and implement decisions and actions that
support strategic alignment and innovation.
Progressive Elaboration – Refers to the technique of which the plan for the particular project is
being continuously and constantly modified, detailed, and improved as newer and more
improved sets of information becomes available to the project management team.

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PM NOTEBOOK
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If you want something done right… better hope you are in the right kind of
organization.
Enterprise Environmental Factors (EEFs)
Conditions, not under the control of the project team, that influence, constrain, or direct the project.
It is the way your company is set up, the way people are managed, the processes your team needs
to follow to do their jobs... they all can have a big impact on how you manage your project.
Internal –
 People – Skills and culture.
 Databases
 Standards
 Risk Tolerance
 Resource Availability
 Authorization System – How work is assigned to people. Ensures that every work package is
done at the right time and in the proper sequence.
 Organizational Governance Framework – a structured way to provide control, direction, and
coordination through people, policies, and processes to meet organizational strategic and
operational goals.
o Alignment with organizational mission
o Performance on time, cost, and scope
o Communication with stakeholders
External –
 Weather
 Marketplace Conditions
 Laws and Regulations
 Politics
 Government and Industry Standards
Project Management Information System (PMIS)
Part of EEFs. A computer-driven system to aid in the development of the project. It can calculate
schedules, costs, expectations, and likely results. An example of a PMIS is Microsoft Project. Features
of a PMIS –
Scheduling Tools

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Work Authorization System – For authorizing the start of work packages or activities.
Configuration Management System – It is a tool for establishing and monitoring consistency of a
project performance, functional, and physical attributes. It manages items that require formal
change control. It can store project management plan, risk register, calendars, and other project
documents.
Change Control System (CCS) – Includes standardized forms, reports, processes, procedures, and
software to track and control changes.
 Configuration/Change Control Board (CCB) – A committee that evaluates the worthiness
of proposed changes.
Information Collecting/Distribution System
Organizational Process Assets (OPAs)
Templates, forms, and previous work of the company, stored in corporate knowledge base (KB).
 Templates
 Contracts
 Registers
 Assessment Tools
 Historical Data
 Databases
 Project files
 Lessons Learned
 Corporate/Organizational Knowledge Repository/Base – Where historical data, databases,
and other data are stored.
 Project Governance Framework – The organization’s established criteria, procedures, and
guidelines intended to make sure projects meet organization’s strategic goals.
 Personnel Administration – Includes employee development and training records and
competency frameworks that refer to knowledge sharing behaviors.
 Industry Project Management Body of Knowledge – sets forth guidelines and criteria to tailor
the organization’s processes to satisfy specific needs of the project.
 Change Control Procedures
 Configuration Management Knowledge Base
 Versions
 Baselines
Organization System
 Structure and governance
 Permissions
 Work authorization
 Employee discipline

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 System dynamics
o Relationship between components
o Policies
o Bureaucracy
Organizational Structure
An organizational structure defines how activities such as task allocation, coordination, and
supervision are directed toward the achievement of organizational aims.
During project formation, there is always an element of confusion or lack of clarity regarding the
balance of power between the project manager and the functional manager. If not resolved, such
confusion manifests itself in conflicts regarding technical decisions, resource allocations, and
scheduling later in the project.
Organic/Simple –
 Loosely organized business or organization.
 The project manager likely has little control over the project resources and may not be
called a project manager.
Pre-Bureaucratic –
 Totally centralized.
 Strategic leader makes all key decisions and most communications are done by one on
one conversations.
Functional/Centralized/Bureaucratic/Traditional –
 People who do similar tasks are grouped together based on specialty. Functional
organizations are organized around the functions the organization need to be performed.
 Functions include – HR, IT, Sales, Marketing, Administration, etc.
 The Project Management role will be performed by a team member of a functional area
under the management of a functional manager.
 Resources are controlled and authorized by functional managers.
 The Project Management role would act more like a Project Coordinator or Project
Expediter who do not usually carry the title of Project Manager.
 Project Management is considered a part-time responsibility.
 Authority of the Project Manager is very limited.
 Major difficulties arise when multiple projects need to be managed because of conflicts
over the relative priorities of different projects in competition for limited resources.
Divisional –
 People are grouped into teams based on the products or projects that meet the needs of
a certain customer.

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 An example is a company that runs many brands that each brand acts as an individual
company.
Multidivisional –
 Same characteristics as functional, however, it has duplication of efforts within the
organization, but not within each department or division of the organization.
 Project manager has little authority in this structure and the functional manager controls
the project budget.
 An example, having an IT group within financial and manufacturing departments.
Matrix Organization –
 Groups people into functional departments of specialization, then further separates them
into divisional projects and products.
 They are organizations with structures that carries a blend of the characteristics of
functional and projectized organizations.
 Best for complex projects because of the mix of functional expertise and project
management.
 Matrix organizations can be classified as weak, balanced or strong based on the relative
authority of the Functional Manager and Project Manager.
 Weak Matrix –
o Team has a blend of departmental and project duties.
o The Project Manager is given a role of more like Project Coordinator or Project
Expediter. Team members report to functional manager.
 Strong Matrix –
o The Project Manager is given much more authority on resources and budget
spending.
 The differentiations between Functional Organization vs. Weak Matrix and also Projectized
Organization vs. Strong Matrix are not very clear cut.
 The primary condition leading to conflict in matrix structure is ambiguous jurisdictions that’s
when two or more parties have related responsibilities, but their work boundaries and role
definitions are unclear.
 The dual reporting relationship should be fixed by the project manager.
Project-Oriented/Composite/Hybrid/Projectized – Projectized Organizations are organized around
projects for maximal project management effectiveness.
 The Project Manager is given more authority and resources control.
 The Project Manager is responsible to the Sponsor and/or Senior Management.
 The Project Manager is usually a full-time role.
 Project managers may compete for stockpile resources.
 Team members are usually co-located within the same office / virtually co-located to
maximize communication effectiveness.
 There can be some functional units within organization, however, those units are having a
supportive function only without authority over the project manager

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CHAPTER 2 – ORGANIZATIONS | PROJECT EXPEDITER VS. PROJECT
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 Team members are from several departments and are selected to create a task force to
implement the project.
Virtual –
 An organization involving detached and disseminated entities (from employees to entire
enterprises) and requiring information technology to support their work and
communication.
 Project manager has low authority.
 Single point of contact for each group.
 Communications can be challenging.
Hybrid – A blend of the functional, projectized and matrix organization styles. Project manager’s
power is unique to the structure.
PMO Structure –
 Provides uniform approach to all projects. Can be supportive, controlling, or directive
(highest control).
 Can feel disconnected from project managers, stakeholders, or team.
Flat/Flatarchy Structure – Management is decentralized. Each employee is the boss of themselves.
Project-Based Organizations (PBO)
Project-Based Organizations (PBO) – temporary structures created to facilitate the execution of
projects. PBOs can exist within all forms of organizations. The project staff could be full time or part
time, and they report to the project manager. The project managers report to the manager of
project managers. PBO facilitates project execution by speeding up project based decision making.
Project Expediter vs. Project Coordinator
Project Expediter – A project expediter works as staff assistant and communications coordinator.
The expediter cannot personally make or enforce decisions. He usually collects or reports data to
the project manager.
Project Coordinator – Project coordinators have the power to make some decisions, have some
authority, and report to a higher-level manager.
Organizational Hierarchy
1. Top / Strategic Management – Managers at the highest level. Their job –
 Long-term objectives
 Policies
 Organizing

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2. Middle Management – Implement and control plans of top management. Examples are
factory managers and division heads.
 Departmental objectives
 Assignment of duties
 Coordination
3. Supervisory / Operational / Lower Management – Operate the schedule of actions
desired from the staff. Examples are supervisors, foremen, and inspectors.
 Discipline
 Supervision
 Training
Project Management Office (PMO)
Also called project office and project headquarters. A PMO is the center of excellence for project
management in an organization. It is a central office that oversees all projects within an organization
or within a functional department. A PMO supports the project manager through software, training,
templates, policies, communication, dispute resolution, and other services (audits, resource
management, etc.).
 Supportive – Consultative role, templates, training, etc.
 Controlling Compliance through a framework, governance, templates, etc.
 Directive (highest) –
o Directly manages the project.
o Can set dates for beginning and terminating projects.
o Can select, manage, and deploy resources.
o Can manage shared resources.
o PM is part of PMO.
Organizational Project Management (OPM)
OPM is the systematic coordination and management of projects, programs, and portfolios in
alignment with the achievement of strategic goals. You can think of OPM as a framework for
keeping the organization as a whole focused on the overall strategy. It provides direction for how
portfolios, programs, projects and other organizational work should be prioritized, managed,
executed, and measured to achieve strategic goals.
Organizational Project Management Maturity Model (OPM3)
OPM3 is PMI’s organizational project management maturity model. It is designed to help
organizations determine their level of maturity (process capability) in project management.
Capability Maturity Model Integration (CMMI)
CMMI is a process improvement approach that helps organizations improve their performance. It
can be used to guide process improvement across a project, a division, or an entire organization.
Currently, it addresses three areas of interest –

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 Product and Service Development – CMMI for Development (CMMI-DEV)
 Service Establishment, Management, and Delivery – CMMI for Services (CMMI-SVC)
 Product and Service Acquisition – CMMI for Acquisition (CMMI-ACQ)
Project Environment
 Physical Elements –
o Location of project work
o Working conditions
o Weather
o Constraints
o External EEFs
 Social and Cultural Influences –
o Political climate
o Codes of conduct
o Ethics
o External EEFs
 Organizational Culture and Structure –
o Vision and mission
o Values and beliefs
o Cultural norms
o Hierarchy and authority
o Internal EEFs
 Infrastructure Environmental Factors
o Facilities
o Equipment
o Telecommunication Channels
o Internal EEFs
Project Complexity
Complexity is a characteristic of a program or project or its environment that is difficult to manage
due to (dimensions of complexity) –
 Human Behavior
 System Behavior
 Ambiguity
Project Success Factors
Internal Factors
Those 10 characteristics found to be critical to project implementation success –
1. Project mission – Initial clarity of goals and general directions.
2. Top management support – Willingness of top management to provide the necessary
resources and authority/power for project success.

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