Evolution of Project Management
Over the past few years, emerging technology, new approaches, and rapid market changes have disrupted traditional ways of working, driving the project management profession to evolve. Each industry, organization, and project faces unique challenges, requiring team members to adapt their approaches.
Modern Approach
The Seventh Edition takes a deeper look into the fundamental concepts and constructs of the profession, presenting 12 principles of project management and eight project performance domains critical for effectively delivering project outcomes.
Comprehensive Coverage
This edition reflects the full range of development approaches (predictive, traditional, adaptive, agile, hybrid), devotes an entire section to tailoring approaches and processes, and expands the list of tools and techniques.
Key Features of the Seventh Edition
Focus on Outcomes
Emphasizes project outcomes in addition to deliverables, helping teams deliver more value.
PMIstandards+ Integration
Integrates with PMIstandards+, giving users access to content that helps them apply the PMBOK® Guide on the job.
Modern Guide
Enables project team members to be proactive, innovative, and nimble in delivering project outcomes.
Structure of the PMBOK® Guide
The PMBOK® Guide - Seventh Edition contains three main sections beyond the introduction, designed to provide comprehensive guidance for project management professionals.
Project Performance Domains
Identifies and describes eight project performance domains that form an integrated system to enable successful delivery of the project and intended outcomes.
Tailoring
Describes what tailoring is and presents an overview of what to tailor and how to go about tailoring individual projects.
Models, Methods, and Artifacts
Presents descriptions of commonly used models, methods, and artifacts that illustrate the range of options project teams can use.
The Standard for Project Management
The Standard for Project Management identifies project management principles that guide the behaviors and actions of project professionals and other stakeholders who work on or are engaged with projects.
Purpose
Provides a basis for understanding project management and how it enables intended outcomes, regardless of industry, location, size, or delivery approach.
Application
Applies to all projects regardless of industry, location, size, or delivery approach (predictive, hybrid, or adaptive).
Scope
Describes the system within which projects operate, including governance, possible functions, the project environment, and considerations for project and product management relationships.
Key Terms and Concepts
The PMBOK® Guide reflects the progression of the profession, with organizations expecting projects to deliver outcomes in addition to outputs and artifacts. Project managers must deliver projects that create value within the organization's system for value delivery.
Outcome
An end result or consequence of a process or project, focusing on benefits and value rather than just deliverables.
Portfolio
Projects, programs, subsidiary portfolios, and operations managed as a group to achieve strategic objectives.
Product
An artifact that is produced, is quantifiable, and can be either an end item or a component item.
Program
Related projects, subsidiary programs, and program activities managed in a coordinated manner to obtain benefits.
Project
A temporary endeavor undertaken to create a unique product, service, or result.
Value
The worth, importance, or usefulness of something, perceived differently by various stakeholders.
A System for Value Delivery
Projects exist within a larger system, such as a governmental agency, organization, or contractual arrangement. Organizations create value for stakeholders through various components that work together as a system for delivering value.
Value
The ultimate goal of the system
Benefits
Gains realized by the organization
Outcomes
End results of processes or projects
Deliverables
Tangible or intangible outputs
Value Delivery Components
Various components can be used individually and collectively to create value. Working together, these components comprise a system for delivering value that is aligned with the organization's strategy.
Portfolios
Collections of projects, programs, subsidiary portfolios, and operations managed as a group to achieve strategic objectives.
Programs
Related projects, subsidiary programs, and program activities managed in a coordinated manner to obtain benefits not available from managing them individually.
Projects
Temporary endeavors undertaken to create unique products, services, or results that can stand alone or be part of a program or portfolio.
Information Flow in Value Delivery
A value delivery system works most effectively when information and feedback are shared consistently among all components, keeping the system aligned with strategy and attuned to the environment.
Senior Leadership
Shares strategic information with portfolios
Portfolios
Share desired outcomes, benefits, and value with programs and projects
Programs and Projects
Pass deliverables to operations with support and maintenance information
Information also flows in reverse: Operations suggests adjustments to programs and projects; programs and projects provide performance information to portfolios; portfolios provide evaluations to senior leadership; and operations provide information on strategy advancement.
Organizational Governance Systems
The governance system works alongside the value delivery system to enable smooth workflows, manage issues, and support decision making. Governance systems provide a framework with functions and processes that guide activities.
Framework Elements
Governance frameworks can include elements of oversight, control, value assessment, integration among components, and decision-making capabilities.
Integrated Structure
Governance systems provide an integrated structure for evaluating changes, issues, and risks associated with the environment and any component in the value delivery system.
Project Governance
Project governance includes defining the authority to approve changes and make other business decisions related to the project, aligned with program and/or organizational governance.
Functions Associated with Projects
People drive project delivery by fulfilling functions necessary for the project to run effectively and efficiently. Functions related to the project can be fulfilled by one person, by a group of people, or combined into defined roles.
Provide Oversight and Coordination
Help the project team achieve objectives by orchestrating work, monitoring activities, and improving team well-being.
Present Objectives and Feedback
Contribute perspectives, insights, and clear direction from customers and end users regarding requirements and expectations.
Facilitate and Support
Encourage team participation, collaboration, and shared responsibility while coordinating meetings and resolving conflicts.
Perform Work and Contribute Insights
Provide knowledge, skills, and experience necessary to produce products and realize project outcomes.
Additional Project Functions
Beyond the core functions, several other roles contribute to project success by providing specialized expertise, direction, resources, and governance.
Apply Expertise
Provide specialized knowledge, vision, and subject matter expertise to support the project team's learning and work accuracy.
Provide Business Direction
Guide and clarify project direction, prioritize requirements based on business value, and provide feedback to maximize value.
Provide Resources and Direction
Promote the project, communicate vision, secure decisions and resources, and serve as liaison between management and the team.
Maintain Governance
Approve and support team recommendations, monitor progress, and maintain linkages to strategic objectives.
The Project Environment
Projects exist and operate within internal and external environments that have varying degrees of influence on value delivery. These influences can yield favorable, unfavorable, or neutral impacts on project characteristics, stakeholders, or project teams.
Internal Environment
Factors internal to the organization can arise from the organization itself, a portfolio, a program, another project, or a combination of these. They include artifacts, practices, or internal knowledge such as:
- Process assets (tools, methodologies, templates)
- Governance documentation (policies, processes)
- Data and knowledge assets
- Organizational culture and structure
External Environment
Factors external to the organization can enhance, constrain, or have a neutral influence on project outcomes. Examples include:
- Marketplace conditions (competitors, market share)
- Social and cultural influences
- Regulatory environment
- Academic research and industry standards
- Financial considerations and physical environment
Product Management Considerations
The disciplines of portfolio, program, project, and product management are becoming more interlinked. Understanding each discipline and the relationships between them provides useful context for projects whose deliverables are products.
Introduction
Initial product launch or creation
Growth
Expansion of product adoption and features
Maturity
Stable product with optimizations
Retirement
End of product life cycle
Product management may initiate programs or projects at any point in the product life cycle to create or enhance specific components, functions, or capabilities. The initial product may begin as a deliverable of a program or project, with subsequent projects adding or improving specific attributes that create additional value.
Project Management Principles
Principles for a profession serve as foundational guidelines for strategy, decision making, and problem solving. The 12 principles of project management were identified by engaging a global community of project practitioners from different industries, cultural backgrounds, and organizations.
Stewardship
Be a diligent, respectful, and caring steward
Team
Create a collaborative project team environment
Stakeholders
Effectively engage with stakeholders
Value
Focus on value
More Project Management Principles
The principles provide guidance, with their application influenced by the context of the organization, project, deliverables, team, stakeholders, and other factors. They are internally consistent, meaning no principle contradicts any other principle.
Systems
Recognize, evaluate, and respond to system interactions
Leadership
Demonstrate leadership behaviors
Tailoring
Tailor based on context
Quality
Build quality into processes and deliverables
Final Project Management Principles
The remaining principles focus on navigating uncertainty and change, which are inherent in all projects. These principles help teams adapt to changing conditions and deliver successful outcomes despite challenges.
Complexity
Navigate complexity
Risk
Optimize risk responses
Adaptability
Embrace adaptability and resiliency
Change
Enable change to achieve the envisioned future state
Stewardship Principle
Stewards act responsibly to carry out activities with integrity, care, and trustworthiness while maintaining compliance with internal and external guidelines. They demonstrate a broad commitment to financial, social, and environmental impacts of the projects they support.
Integrity
Stewards behave honestly and ethically in all engagements and communications, serving as role models by living and demonstrating personal and organizational values.
Care
Stewards are fiduciaries of organizational matters, diligently overseeing them beyond strictly defined responsibilities and exercising the same level of care as for personal matters.
Trustworthiness
Stewards represent themselves, their roles, their project team, and their authority accurately, both inside and outside of the organization.
Compliance
Stewards comply with laws, rules, regulations, and requirements that are properly authorized within or outside of their organization.
Team Environment Principle
Project teams are made up of individuals with diverse skills, knowledge, and experience. Project teams that work collaboratively can accomplish a shared objective more effectively and efficiently than individuals working on their own.
Team Agreements
Behavioral parameters and working norms established by the team and upheld through commitment
2
Organizational Structures
Arrangements that help coordinate individual effort based on roles, functions, or authority
Processes
Defined approaches that enable completion of tasks and work assignments
By fostering inclusive and collaborative environments, knowledge and expertise are more freely exchanged, which enables better project outcomes. A diverse project team can enrich the project environment by bringing together different perspectives.
Stakeholder Engagement Principle
Stakeholders can be individuals, groups, or organizations that may affect, be affected by, or perceive themselves to be affected by a decision, activity, or outcome of a portfolio, program, or project. They directly or indirectly influence a project, its performance, or outcome.
Stakeholders may come and go throughout the project life cycle. Additionally, their degree of interest, influence, or impact may change over time. Identifying, analyzing, and proactively engaging with stakeholders from start to end helps enable success.
Value Focus Principle
Value, including outcomes from the perspective of the customer or end user, is the ultimate success indicator and driver of projects. Value focuses on the outcome of the deliverables rather than just the deliverables themselves.
100%
Alignment
Projects aligned with business objectives
85%
Evaluation
Projects with regular value assessment
65%
Adaptation
Projects that adjust to maximize value
To support value realization from projects, project teams shift focus from deliverables to the intended outcomes. Doing so allows teams to deliver on the vision or purpose of the project, rather than simply creating a specific deliverable. The value contribution could be a short- or long-term measure.
Systems Thinking Principle
A system is a set of interacting and interdependent components that function as a unified whole. Taking a holistic view, a project is a multifaceted entity that exists in dynamic circumstances, exhibiting the characteristics of a system.
Systems thinking considers timing elements, such as what the project delivers over time. As projects unfold, internal and external conditions continuously change. A single change can create several impacts. With systems thinking, including constant attention to conditions, the project team can navigate changes to keep the project aligned with stakeholders.
Leadership Behaviors Principle
Projects create a unique need for effective leadership. Unlike general business operations, where roles are often established and consistent, projects may involve multiple organizations that don't regularly interact and carry higher stakes and expectations.
Vision Focus
Focusing a project team around agreed goals and articulating a motivating vision for outcomes
Communication
Adapting communication style and messaging to be relevant to the audience
Team Building
Building a cohesive project team that takes responsibility and empowering team members
Empathy
Showing empathy for team and stakeholder perspectives with self-awareness of one's own bias
Leadership is not exclusive to any specific role. High-performing projects may feature multiple people exhibiting effective leadership skills. Anyone working on a project can demonstrate effective leadership traits to help the team perform and deliver results.
Tailoring Principle
Adapting to the unique objectives, stakeholders, and complexity of the environment contributes to project success. Tailoring is the deliberate adaptation of approach, governance, and processes to make them more suitable for the given environment and work at hand.
Examine Project Context
Analyze the unique set of conditions for each project to determine the most appropriate methods for producing desired outcomes.
Select Appropriate Elements
Choose specific processes, development approach, methods, and artifacts needed to deliver project outcomes within authorized boundaries.
Communicate Decisions
Share tailoring decisions with stakeholders associated with the approach so team members are aware of chosen methods and processes.
Tailoring aims to maximize value, manage constraints, and improve performance by using "just enough" processes, methods, templates, and artifacts to achieve the desired outcome from the project.
Quality Principle
Quality is the degree to which a set of inherent characteristics of a product, service, or result fulfills requirements. Quality includes the ability to satisfy the customer's stated or implied needs.
Performance
Does the deliverable function as intended?
Conformity
Is it fit for use and meets specifications?
Reliability
Does it produce consistent metrics?
4
4
Resilience
Can it cope with unforeseen failures?
Satisfaction
Does it elicit positive user feedback?
Uniformity
Does it show parity with similar deliverables?
Complexity Principle
Complexity is a characteristic of a project or its environment that is difficult to manage due to human behavior, system behavior, and ambiguity. The nature and number of interactions determine the degree of complexity in a project.
Sources of Complexity
- Human behavior: The interplay of conduct, demeanors, attitudes, and experience of people
- System behavior: The result of dynamic interdependencies within and among project elements
- Uncertainty and ambiguity: Unclear situations or lack of understanding about issues, events, or solutions
- Technological innovation: New technology and uncertainty about how it will be used
Navigating Complexity
Complexity may emerge and impact the project in any area and at any point in the life cycle. Project teams can identify elements of complexity by continually examining both project components and the project as a whole.
Knowledge of systems thinking, complex adaptive systems, experience from past projects, experimentation, and continuous learning related to system interaction increases the team's ability to navigate complexity when it emerges.
Risk Principle
A risk is an uncertain event or condition that, if it occurs, can have a positive or negative effect on project objectives. Project teams endeavor to identify and evaluate known and emergent risks throughout the life cycle.
100%
Identification
Projects with risk identification processes
78%
Analysis
Projects with regular risk analysis
65%
Response
Projects with optimized risk responses
Project teams seek to maximize positive risks (opportunities) and decrease exposure to negative risks (threats). They also monitor overall project risk, which is the effect of uncertainty on the project as a whole. Effective risk responses should be appropriate to the significance of the risk, cost-effective, realistic within the project context, agreed to by relevant stakeholders, and owned by a responsible person.
Adaptability Principle
Most projects encounter challenges or obstacles. The combined attributes of adaptability and resiliency in the project team's approach help the project accommodate impacts and thrive. Adaptability refers to the ability to respond to changing conditions, while resiliency consists of absorbing impacts and recovering quickly from setbacks.
Capabilities Supporting Adaptability
- Short feedback loops to adapt quickly
- Continuous learning and improvement
- Regular inspection and adaptation
- Diverse teams with broad skill sets
Capabilities Supporting Resiliency
- Open and transparent planning
- Small-scale prototypes and experiments
- Ability to leverage new ways of thinking
- Understanding from past learning
Benefits of Adaptability & Resiliency
- Keeps teams focused on desired outcomes
- Helps recover from setbacks
- Enables learning and improvement
- Supports progress toward delivering value
Change Principle
Remaining relevant in today's business environment requires continually evaluating offerings and rapidly responding to changes. Projects, by their definition, create something new and are agents of change.
Communicate Vision
Share the vision and goals associated with the change early to achieve buy-in
Engage Stakeholders
Use engagement and two-way communication to create an environment where adoption can occur
Manage Pace
Adapt the speed of change to stakeholder appetite, cost, and ability to assimilate change
Reinforce Change
Include activities to reinforce the change after implementation to avoid returning to the initial state