PMP® EXAM PREP

BOOTCAMP
(2021 UPDATE)
Session 6
Instructor: Barb Waters, MBA, PMP
Class will begin at 11am EST
PMP® Exam Prep
This course will assist learners in preparing
for PMI’s PMP Exam (2021 Update)
If you are watching on replay, this slide deck
may have been modified to correct typos or
to make minor adjustments. If you notice a
difference it is intentional and not an
indication of exam changes.
TOPIC B:
SUPPORT TEAM
PERFORMANCE

2
Enablers

• Appraise team performance against key performance indicators. (ECO 1.3.1)

• Support and recognize team growth and development. (ECO 1.3.2)
• Determine appropriate feedback approach. (ECO 1.3.3)
• Verify team member performance improvements. (ECO 1.3.4)
• Support team task accountability. (ECO 1.4.2)

3
Deliverables and Tools

Deliverables Tools

RACI matrix RACI matrix

Management by Objectives Task boards

Benchmarking Performance tracking tools

Performance reports Information Radiators

Burnup charts

Earned Value

Throughput metrics

Cycle time

Value stream map

4
 MONITORING AND CONTROLLING PROJECT WORK

• Monitoring and Controlling includes:

• Determining whether deliverables meet requirements
and adhere to product acceptance criteria
• Collecting, measuring, and inspecting
• Identifying variance from the three baselines
• Scope
• Schedule
• Budget
• Assessing trends
• Reporting performance information
• Realigning performance to the plan, or adjusting the plan
WORK PERFORMANCE DATA
• Raw observations and measurements identified during activities being performed.

Number of completed activities 8

Actual costs $12,500

Number of defects 3

Stakeholder issues 6
 WORK PERFORMANCE INFORMATION

Actual Plan Variance Requirements

Number of
completed 8 7 +1 Met
activities

Actual costs $12,500 $11,000 +$1,500 Not met

Number of defects 3 5 -2 Met

Stakeholder issues 6 3 +3 Not met

WORK PERFORMANCE REPORTS

Effective performance reporting

• Accurate
• Complete
• Timely
• Easy to understand
CONTROL SCHEDULE
• Compare plan against actual
• Earned value management
• Manage changes to the schedule baseline
• Look for variances
• Determine corrective or preventative actions
• Recognize trends
CONTROL COSTS
Earned Value Management

• Compare actual performance to the

plan (baselines)
• Identify variance
• Make adjustments to realign
performance to the plan
 A technique for measuring project
performance

Project Budget = $100,000

“Budget at Completion (BAC)”

EARNED VALUE Project Schedule = 1 year

MANAGEMENT
(EVM)
Earned Value Management (EVM)

EVM* A methodology that combines scope, schedule, and resource measurements to

assess project performance and progress.
• Important to understand the monetary value of work contribution.

PV
AC
EV

Schedule and Cost

Variance
These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Project Management
12
Institute Inc., 2017.
Budget at Completion, or BAC, is the total planned
cost for the project. It is the total approved budget
for completing all scheduled activities.
BUDGET AT
COMPLETION
(BAC)
EXAMPLE
Project Schedule = 1 year

Project Budget = $100,000

Planned Value, or PV, is the amount of the
budget allocated to the work that was
planned to be completed by a specific point
in time. It is the Budget at Completion
multiplied by the percentage of time that
has passed in the project schedule.

Planned Value (PV) = Budget at Completion (BAC) * Percent of Time Passed

EXAMPLE 3 months = 25% = $25,000
Project Schedule = 1 year 6 months = 50% = $50,000
Project Budget = $100,000 9 months = 75% = $75,000

Planned Value (PV) = Budget at Completion (BAC) * Percent of Time Passed

The actual value of the work that has
been completed so far, based on the
budgeted funds assigned to that work. It
is the Budget at Completion multiplied
by the percentage of work actually
completed.

Earned Value (EV) = BAC * Percent of Work Completed

 Project Schedule = 1 year
EXAMPLE
Project Budget = $100,000

After 4 months, you have completed 60% of the work.

What is the earned value?

$100,000 x 60% = $60,000

Earned Value (EV) = Budget at Completion (BAC) * Percent of Work Completed
 Project Schedule = 1 year
EXAMPLE
Project Budget = $100,000

After 6 months, you have completed 40% of the work.

What is the earned value?

$100,000 x 40% = $40,000

Earned Value (EV) = Budget at Completion (BAC) * Percent of Work Completed
Planned Value

PV* The authorized budget assigned to scheduled work.

400

300

$ (K)
200

100

Planned Value (PV) 0

Earned Value (EV) 1 2 3 4 5 6 7 8 9 10 11 12
Actual Cost (AC)
Time (months)

These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Project Management
19
Institute Inc., 2017.
Earned Value

EV* The measure of work performed expressed in terms of the budget authorized for
that work. EV = % work complete to date x budgeted cost

400

300

$ (K)
200

100

Planned Value (PV) 0

Earned Value (EV) 1 2 3 4 5 6 7 8 9 10 11 12
Actual Cost (AC)
Time (months)

These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Project Management
20
Institute Inc., 2017.
Schedule Variance (SV) = Earned Value (EV) – Planned Value (PV)

Compare Earned Value (EV) to Planned Value (PV)

✓ No variance means “on time”

✓ Positive variance means “early”, or ahead of schedule
× Negative variance means “late”, or behind schedule

LATE
 Project Schedule = 1 year Project Budget = $100,000

Time Passed Earned Value Planned Value Schedule Variance

3 Months $22,500 $25,000 -$2,500 LATE

EXAMPLE 6 Months $55,500 $50,000 $5,500 EARLY
9 Months $73,000 $75,000 -$2,000 LATE

Schedule Variance (SV) = Earned Value (EV) – Planned Value (PV)

 Schedule Performance Index (SPI) = Earned Value (EV)/Planned Value (PV)

✓ SPI = 1 means “on time”

✓ SPI > 1 means “early”
× SPI < 1 means “late” 1.2 = $60,000/$50,000

EXAMPLE EV = $60,000 An SPI of 1.2 means “early”

PV = $50,000
Note: An SPI value greater than one indicates that a project is ahead of schedule. A value less than one indicates
the project is behind schedule. For example, an SPI of 1.2 indicates that a project is 20% ahead of schedule.
EVM Measures for Schedule Control

Schedule Variance* is a measure of Schedule Performance Index* is a

schedule performance expressed as the measure of schedule efficiency
difference between the earned value expressed as the ratio of earned value
and the planned value. to planned value.

(SV = EV - PV) (SPI = EV / PV)

• A positive SV indicates that the • An SPI number greater than 1.0
project is ahead of schedule. indicates that the project is ahead of
• A zero SV indicates that the project schedule.
is on schedule. • An SPI of 1.0 means the project is on
• A negative SV indicates that the schedule.
project is currently behind schedule. • An SPI number less than 1.0
indicates that the project is behind
schedule.
These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Project Management
24
Institute Inc., 2017.
ACTUAL COST (AC)
Actual cost, or AC, is the total cost incurred up
to a specific time
Actual Cost

AC* The realized cost incurred for the work performed on an activity during a specific
time period.
400

300

$ (K)
200

100

Planned Value (PV) 0

Earned Value (EV) 1 2 3 4 5 6 7 8 9 10 11 12
Actual Cost (AC)
Time (months)

These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Project Management
26
Institute Inc., 2017.
Cost Variance, or CV, is the difference between what a project has earned
to date and what it has cost. It is the earned value minus the actual cost.
This tells you how well the project is performing in terms of costs.

Cost Variance (CV) = Earned Value (EV) – Actual Cost (AC)

✓ No variance means “on budget”
✓ Positive variance means “under budget”
× Negative variance means “over budget”

Note: a negative CV shows that the project has earned less than has been spent. A positive
value means the project's cost performance is better than expected – for each dollar of value
earned, less than a dollar was spent.
 Project Schedule = 1 year Project Budget = $100,000

EXAMPLE

Time Passed Earned Value Actual Cost Cost Variance

3 Months $22,500 $22,500 0 “on budget”

6 Months $55,000 $50,000 $5,000

9 Months $72,500 $77,500 - $5,000

Cost Variance (CV) = Earned Value (EV) – Actual Cost (AC)

 COST PERFORMANCE INDEX (CPI)

EV = $75,000
AC = $70,000

Cost Performance Index (CPI) = Earned Value (EV)/Actual Cost (AC)

✓ CPI = 1 means “on budget” 1.07 = $75,000/$70,000

✓ CPI > 1 means “under budget”
× CPI < 1 means “over budget”
A CPI of 1.07 means “under budget”
EVM Measures for Cost Control

Cost Variance* is the amount of budget Cost Performance Index* is a measure

deficit or surplus at a given point in time, of the cost efficiency of budgeted
expressed as the difference between the resources expressed as the ratio of
earned value and the actual cost. earned value to actual cost.

(CV = EV - AC) (CPI = EV / AC)

• A positive CV indicates that the • A CPI number greater than 1.0
project is performing under budget. indicates that the project is under
• A zero CV indicates that the project is budget.
on budget. • A CPI of 1.0 means the project is on

• A negative CV indicates that the budget.

project is performing over budget. • A CPI number less than 1.0 indicates
that the project is over budget.

These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Project Management
30
Institute Inc., 2017.
 DETERMINING PROJECT PERFORMANCE (EXAMPLE 1)

You have a budget of $20,000 to hire and train 10 new employees. Your schedule baseline is eight weeks. Four weeks
have passed and you have completely onboarded 4 employees. You have $13,500 left of your original budget.

BAC = $20,000 Is the project:

EV = $20,000 * .40 = $8,000 a) Ahead of schedule, under budget
PV = $20,000 * .50 = $10,000 b) Ahead of schedule, over budget
c) Behind schedule, under budget
AC = $6,500 d) Behind schedule, over budget
SV = $8,000 - $10,000 = -$2,000
SPI = $8,000
= .80
$10,000
CV = $8,000 - $6,500 = $1,500

$8,000 c) Behind schedule, under budget

CPI = = 1.23
$6,500
 Determining Project Performance (Example 2)
You have $10,000 left of your budget of $14,000 for the creation of a new employee handbook and video. The employee
handbook will be 25 pages. You have completed 25% of the work and 20% of your scheduled time has passed.

BAC = $14,000 Is the project:

EV = $14,000 * .25 = $3,500 a) Ahead of schedule, under budget
PV = b) Ahead of schedule, over budget
$14,000 * .20 = $2,800
c) Behind schedule, under budget
AC = $4,000
d) Behind schedule, over budget
SV = $3,500 - $2,800 = $700
SPI = $3,500
= 1.25
$2,800
CV = $3,500 - $4,000 = - $500

$3,500 b) Ahead schedule, over budget

CPI = = .88
$4,000
SCENARIOS AND SOLUTIONS

ON TIME! Early!

No Change Resource Optimization: Smoothing or Levelling

LATE! LATE!

Schedule Compression: Crashing or Fast Tracking Re-evaluate viability of the project

Possibly reduce the scope
ESTIMATE AT
What if our original BAC was flawed?

COMPLETION (EAC)
What if an EEF change affects many of our work packages?
What if we experience an unexpected risk event?

Budget at Completion (BAC) = The planned project budget

Estimate at Completion (EAC) = The new forecasted budget

Forecasting – As the project progresses, the project team

may develop a forecast for the Estimate at Completion (EAC)
which may differ from the Budget at Completion (BAC) based
on the project performance.
EAC = AC + Estimate to Complete (ETC)
Employee Retention Project
= $5,000 + $6,000 $10,000

= $11,000
+
Surveys Focus Groups
$2,500 $7,500

+ +
Survey Creation Survey Analysis Meetings
$1,000 $1,500 $7,500

SME + Printing + Data Analysis + Facilitator + Venue

Estimated Estimated Actual Actual Estimated
=$500 =$500 =$2,000 =$3,000 =$5,000
We are pretty close to our
cost estimates. Earned Value = $750,000
I think we can assume this Actual Cost = $700,000
CPI = 1.07
will continue.

ESTIMATE AT
COMPLETION
Project Budget $1,000,000
Project Schedule = 1 year
 Scenario: Assumes the same rate of spending will continue.
Budget = $1,000,000
Schedule = 1 year
CPI = 1.07

Budget at Completion (BAC)

Estimate at Completion (EAC) =
Cost Performance Index (CPI)

$1,000,000
$934,579 =
1.07

What if the CPI had been .89 instead?

 Scenario: Assumes the same rate of spending will continue.
Budget = $1,000,000
Schedule = 1 year
CPI = .89

Budget at Completion (BAC)

Estimate at Completion (EAC) =
Cost Performance Index (CPI)

$1,000,000
$1,123,596 =
.89
Earned Value = $625,000
Actual Cost = $700,000 It’s too bad about that hurricane. If it
CPI = 0.89 wasn’t for the extra supply costs we
would be on budget. Good thing we are
back on track now.

ESTIMATE AT
COMPLETION
Project Budget $1,000,000
Project Schedule = 1 year
 Scenario: Assumes we deviated from the budget, but it was an isolated
incident and now we are back to normal spending.
Budget = $1,000,000 Event: Hurricane
Schedule = 1 year Schedule = 1 year
Cost Variance = -$75,000
CPI = .89

Estimate at Completion (EAC) = AC + (BAC – EV)

Estimate at Completion (EAC) = BAC – CV
$1,075,000 = $1,000,000 – (-$75,000)
Uh-Oh CPI = 0.79
It’s a tough situation. We
have no hope of meeting SPI = 0.92
our original budget and AC = $700,000
the deadline is firm. EV = $550,000

ESTIMATE AT
COMPLETION
Project Budget $1,000,000
Project Schedule = 1 year
 Scenario: Assumes poor cost performance and a firm completion deadline

Budget = $1,000,000
Schedule = 1 year
Estimate at Completion (EAC) = AC +
{ (BAC - EV)
(CPI * SPI) }
CPI = .79
SPI = .92
AC = $700,000
$1,319,152 = $700,000 +
{ ($1,000,000 - $550,000)

(0.79 * 0.92)
}
EV = $550,000

BAC – EV can also be described as “Work Left”

EAC FLOW CHART
Was the original BAC flawed? Yes EAC = AC + ETC

No

Do you expect this rate of spending to Yes EAC = BAC/CPI

continue?

No

Was any deviation from baseline an Yes

EAC = AC + (BAC – EV)
isolated incident? EAC = BAC - CV

No

Is your deadline firm? Yes EAC = AC + { (BAC – EV)

(CPI * SPI) }
Estimate at Completion Analysis

EAC: The current projected final cost of the project.

• Based on the current spending efficiency (the CPI).

• Calculated from the following formula, where BAC is the projected budget at
completion:

44
 ESTIMATE TO COMPLETE (ETC)
Estimate to Complete (ETC) – The expected cost to finish all the remaining project work.
What information can we use to determine the ETC?

1. Project
360
Phase 1.1. 1.2. 1.3.
270

Story 180 Deliverable 1.2.1. 1.2.2. 1.2.3.

Points
90 Sub-Deliverable 1.2.2.1. 1.2.2.2. 1.2.2.3.

0 Work package 1.2.2.2.1. 1.2.2.2.2. 1.2.2.2.3.

0 1 2 3 4 5 6
Sprints

In Agile projects, a burndown chart is used to show the remaining work.

ESTIMATE TO COMPLETE (ETC)

EAC = $934,579
AC = $700,000

Estimate to Complete (ETC) = EAC - AC

$234,579 = $934,579 - $700,000

Estimate to Complete Analysis

ETC: The amount of money needed to complete the project.

• Based on the current spending efficiency of the project.

• Calculated from the following formula:

47
 BURN RATE

The burn rate is the rate at which you are spending money. This can
help you determine if you will stay within your budget.

Example = You have a 10-month

project with a $25,000 budget. Your
burn rate is $3,000 per month.
What does this mean?
VARIANCE AT COMPLETION (VAC)

BAC = $1,000,000
EAC = $934,579

Variance at Completion (VAC) = BAC - EAC

$65,421 = $1,000,000 - $934,579

A positive variance at completion means the project will come in under budget
TO COMPLETE PERFORMANCE INDEX (TCPI)
Scenario #1 Original budget can be achieved.

BAC = $1,000,000
EV = $750,000
AC = $700,000

(BAC – EV) “work left”

To Complete Performance Index (TCPI) =
(BAC – AC) “money left”

> 1 is bad = 1 is on budget < 1 is good

WORK work work
money money MONEY

Greater than one means you will have to spend more efficiently going forward
TO COMPLETE PERFORMANCE INDEX (TCPI)
Scenario #1 Original budget can be achieved.

BAC = $1,000,000
EV = $750,000
AC = $700,000

(BAC – EV) “work left”

To Complete Performance Index (TCPI) =
(BAC – AC) “money left”
< 1 is good
($1,000,000 – $750,000)

✓
.83 = work
($1,000,000 – $700,000)
MONEY

Greater than one means you will have to spend more efficiently going forward
TO COMPLETE PERFORMANCE INDEX (TCPI)
Scenario #2 Assumes original budget cannot be achieved.
BAC = $1,000,000
EAC = $1,075,000
EV = $700,000
AC = $775,000
(BAC – EV) “work left”
To Complete Performance Index (TCPI) =
(EAC – AC) “money left”

> 1 is bad = 1 is on budget < 1 is good

WORK work work
money money MONEY
TO COMPLETE PERFORMANCE INDEX (TCPI)
Scenario #2 Assumes original budget cannot be achieved.
BAC = $1,000,000
EAC = $1,075,000
EV = $700,000
AC = $775,000
(BAC – EV) “work left”
To Complete Performance Index (TCPI) =
(EAC – AC) “money left”

($1,000,000 – $700,000)
1=
($1,075,000 – $775,000)
ACTIVITY: USING
EARNED VALUE
MANAGEMENT

54
 Page 214 of PMP Exam Prep Student PDF.
Activity 4-2:
Using Earned
Value
Management.
 Page 215 of PMP Exam Prep Student PDF.
Activity 4-2:
Using Earned
Value
Management.
TOPIC G:
MANAGE PROJECT
ISSUES

59
Enablers

• Recognize when a risk becomes an issue. (ECO 2.15.1)

• Attack the issue with the optimal action to achieve project success. (ECO 2.15.2)
• Collaborate with relevant stakeholders on the approach to resolve the issues.
(ECO 2.15.3)

60
Deliverables and Tools

Deliverables Tools

No specific deliverables No specific tools

61
Issues

Issue: A current condition or situation that may have an impact on the project
objectives. In other words, it is an action item that the project team must address.

Common areas include:

• Scope change control
• Schedule control
• Cost control
• Project variance analysis
• Quality
• Risk
• Procurement
• Communications
62
Risks and Issues
Risks Issues
• Focused on the future • Focused on the present
• Can be positive or negative • Will always be negative
• Is documented in the Risk Register • Is documented in the Issue Log
• Response is called a “risk response” • Response is called a “workaround”

63
Issue Log

Issue log: A document where information about issues is recorded and monitored. It
is used to track problems, inconsistencies, or conflicts that occur during the life of the
project and require investigation in order to work toward a resolution.

ID Description Opened Due Date Priority Owner Response Status Comments

Tasks are on the

25 Truck strike 10/15/20xx 11/01/20xx High R. Smith TBD Open
critical path

64
Issue Resolution

• As issues arise, promptly add them to the issue log.

• Each issue should have an owner who is responsible for tracking the progress of
the workaround and reporting back to the project manager.
• The due date should be realistic and every reasonable attempt should be made to
meet it.
• Issues should be a regular topic of every status meeting, with the goal to keep the
number of open issues to a manageable number.
• Don’t hesitate to escalate an issue to the project sponsor if it begins to have a
major effect on the project.

65
Guidelines to Resolving Issues

• Use your organization’s Issue Log template, or in the absence of one, create an
Issue Log.
• Train project team members to promptly report potential issues to the project
manager, who will determine if they belong in the Issue Log.
• Enter the issue into the Issue Log and assign an owner and a due date.
• Monitor progress and discuss each open issue at every project status meeting.
• Develop a response (also known as a workaround) to the issue.
• Assess the impact of the response.
• Approve the response.
• Close the issue.

66
ACTIVITY: MANAGING
PROJECT ISSUES

67
 Page 191 of PMP Exam Prep Student PDF.
Activity 3-8:
Managing
Project Issues.
Guidelines to Recommend, Plan, and Facilitate Change

• Establish a single way changes are requested with a description of the proposed
change, the business value of the change, any risk and risk mitigation
recommendations, and the likely cost of the change.
• Ensure that a CCB can assess the change cost, risk, and value, other potential
impacts to the project, and make recommendations.
• The size of the change and the project’s tolerances will determine if the project
manager can approve the change or is required to escalate the change for review
and approval to the project’s governing board.
• Follow organizational change management best practices, including build a
compelling case for change, get buy-in and commitment of key stakeholders,
communicate the change vision, and enable other stakeholders to engage.
• Ensure changes are properly aligned and updates to other project artifacts, such as
the project plan, training plans, training artifacts, and software configurations or
demonstrations.
70
TOPIC H:
ENSURE KNOWLEDGE
TRANSFER FOR
PROJECT CONTINUITY
71
Enablers

• Maintain team and knowledge transfer. (ECO 1.6.4)

• Discuss project responsibilities within team. (ECO 2.16.1)
• Outline expectations for working environment. (ECO 2.16.2)
• Confirm approach for knowledge transfers. (ECO 2.16.3)

72
Deliverables and Tools

Deliverables Tools

No specific deliverables No specific tools

73
 MANAGE PROJECT KNOWLEDGE
Purpose
• Leverage knowledge
• Improve project outcomes
• Share knowledge
Types of Knowledge
• Explicit
• easy to share
• obtained through words, pictures, or numbers
• examples: a math formula, or step-by-step instructions for doing something
• Tacit
• difficult to share
• obtained through unique experiences, expertise, thoughts, and insights
• Examples: learning to drive or learning to play an instrument
Types of Knowledge

Explicit knowledge* Knowledge that can be codified using symbols such as words,
numbers, and pictures.
• This type of knowledge can be documented and shared with others.

Tacit knowledge* Personal knowledge that can be difficult to articulate and share
such as beliefs, experience, and insights.

• This type of knowledge is essential to provide the context of the explicit knowledge.

These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Project Management
75
Institute Inc., 2017.
 LESSONS LEARNED
Knowledge gained during the project which is used during the current project and stored
for use in future projects.

Lessons Learned Register: used to record knowledge during the current project

Lessons Learned Repository: historical information that records knowledge from past
projects and is updated for use in future projects

Lessons Learned Lessons Learned Repository

Lessons Learned Register
Repository (future projects and
(current project)
(past projects) organizational learning)
Lessons Learned

• Knowledge gained during a project can be useful to subsequent phases of a project

and to other projects.
• Both positive and negative experiences that occur throughout the project life cycle.
• Reinventing the wheel is both time-consuming and costly.
• The amount of time and effort on documenting lessons learned can pay big
dividends in the future.

77
Lessons-Learned Register

Lessons-learned register* A project document used to record knowledge gained

during a project so that it can be used in the current project and entered into the
lessons-learned repository.

• Considerations:
• Scheduling lessons learned

• Conflict management lessons learned

• Sellers lessons learned

• Customer lessons learned

• Strategic lessons learned

• Tactical lessons learned

• Any other aspects of lessons learned

These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Project Management
78
Institute Inc., 2017.
Knowledge Management

Lessons-learned repository* A store of historical information about lessons learned

in projects.

• Knowledge management during project or phase closure consists of finalizing the

lessons-learned register, which is compiled throughout the project life cycle.
• This document should then be added to the lessons-learned repository, which is a
database of lessons learned from multiple projects.

These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Project Management
79
Institute Inc., 2017.
Considerations of Lessons Learned

• Scheduling lessons learned

• Conflict management lessons learned
• Vendor lessons learned
• Customer lessons learned
• Strategic lessons learned
• Tactical lessons learned
• Other aspects of lessons learned

80
Lessons-Learned Register

Lessons-learned register* A project document used to record knowledge gained

during a project so that it can be used in the current project and entered into the
lessons-learned repository.
Lessons-learned repository* A store of historical information about lessons learned
in projects.

Project A

Project B
Project A

Project C
Lessons-Learned Register Lessons-Learned Repository

These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Project Management
81
Institute Inc., 2017.
Project Responsibilities Within the Team

• Leadership to communicate the organization’s vision and inspire the project team
to focus on the goals of the project.
• Facilitation to effectively guide a group to a successful solution to a problem.
• Political awareness to keep the project manager aware of the organization’s
political environment.
• Networking to facilitate relations among project stakeholders so that knowledge is
shared at all levels.

82
Knowledge Management

Level Description
• Each team member needs to know how to perform their work in accordance with each
assigned task’s scope, schedule, and cost.
• Required knowledge can be acquired by:
Individual
• Research
• Collaborating with team members
• Examining the project’s or organization’s knowledge repository
• The focus is on achieving the goals of the current project.
• Project manager solicits knowledge about other projects that can be applied to the current
project.
Project
• Project Management Office (PMO) is an excellent source of knowledge, as it exists for the
purpose of defining and maintaining standards for project management within an
organization.
• The focus is on managing programs or portfolios.
Organization • The program manager or portfolio manager seeks information from peers who manage
other programs or portfolios, in an effort to adapt this knowledge to their specific need.

83
Working Environment Expectations

• Knowledge is not constant: what we knew yesterday can change based on what we did
today.
• Continuously evaluate the project environment for new risks and follow the risk
management plan to proactively address them before they become issues that will affect
the project objectives.
• Don't hoard knowledge; follow the communications management plan and inform
stakeholders of changes affecting their work.
• Use appropriate tools to share knowledge with stakeholders:
• Face-to-face during formal meetings
• Face-to-face during informal meetings and discussions
• Telephone
• Email
• Wikis
• Intranet
• Printed documents
84
Knowledge Transfer Approach

• Knowledge transfer consists of connecting individuals, in person or virtually, to

share tacit knowledge and collaborate together.
• Techniques include:
• Networking.

• Facilitating special interest groups.

• Meetings, seminars, and various other types of in-person and virtual events that
encourage people to interact and exchange ideas and knowledge.
• Training that involves interaction between attendees.

• Work shadowing and reverse shadowing provide a more individualized method to

the exchange of specialized knowledge.

85
Guidelines to Maintain Team and Knowledge Transfer

• If your organization has a Project Management Office, follow its guidelines on

documenting new knowledge.
• Be alert to new sources of project knowledge and follow the communications
management plan to convey that knowledge to stakeholders.
• Proactively seek new knowledge.
• Compile a lessons-learned register throughout the project’s lifecycle and add it to a
lessons-learned repository with registers from other projects.

86
ACTIVITY: ENSURING
KNOWLEDGE
TRANSFER FOR
PROJECT CONTINUITY
87
 Page 197 of PMP Exam Prep Student PDF.
Activity 3-9:
Ensuring
Knowledge
Transfer for
Project
Continuity.
TOPIC D:
SUPPORT
ORGANIZATIONAL
CHANGE
90
Enablers

• Assess organizational culture. (ECO 3.4.1)

• Evaluate impact of organizational change to determine required actions. (ECO 3.4.2)
• Evaluate impact of the project to the organization and determine required actions.
(ECO 3.4.3)
• Recommend, plan and facilitate the changes.

91
Deliverables and Tools

Deliverables Tools

Change Management Plan Project Management Plan updates

Roll Out Plan EEFs

Training Plan OPAs

Training Artifacts Demos

PM / PMO org structures

92
Change Management Plan

• Organizational culture directly

influences how organization manages
changes to a project.
• An organization in a highly regulated
environment tends to have a formal,
rigid culture.

93
 CHANGES TO THE ORGANIZATION

“Enterprise”
• Inside the organization
• Organizational structure
• Organizational policies Human Resources Organizational
Culture or Structure
• Technology

• Reorganization of organizational • New strategic goals

structure • New needs
• Change of leadership • Reprioritization of project
• Process changes deliverables
TYPES OF
ORGANIZATIONAL
CHANGES
• Business merger/acquisition
• Business demerger/split
• Business process change
• Internal reorganization
• Relocation
• Outsourcing
CHANGES TO THE
ENVIRONMENT

“Environment” 100%
VERIFIED
100%
VERIFIED

• Outside the organization Commercial Industry Standards Government

Databases Standards
• Government or industry
standards
• Marketplace conditions
• Economy
Marketplace Political Climate
• Socio-political situation Conditions
 REEVALUATE THE BUSINESS CASE
Charter
Business Case
• Justification
• Value
• Feasibility
• Cost/benefit analysis
EEFs
• Processes and procedures
• Lines of authority
• Personnel and administrative policies Do the project objectives still make sense?
• Resources
• Technology Will the project still create value?
• Databases
What is the impact, and how do we need to
• Scheduling software pivot?
ACTIVITY:
DISCUSSING
ORGANIZATIONAL
INFLUENCES ON
PROJECTS
98
 Page 279 of PMP Exam Prep Student PDF.
Activity 5-4:
Discussing
Organizational
Influences on
Projects.
 Page 280 of PMP Exam Prep Student PDF.
Activity 5-4:
Discussing
Organizational
Influences on
Projects.
TOPIC F:
MANAGE PROJECT
CHANGES

103
Enablers

• Anticipate and embrace the need for change. (ECO 2.10.1)

• Determine strategy to handle change. (ECO 2.10.2)
• Execute change management strategy according to the methodology. (ECO 2.10.3)
• Determine a change response to move the project forward. (ECO 2.10.4)

104
Deliverables and Tools

Deliverables Tools

Issues Log Manage and update Issues Log

Risk Register PMIS

Stakeholders Register Communicate with stakeholders

Updated Issues Log Negotiate with stakeholders

105
Change Management Plan
Change Management Plan* A component of the project management plan that
establishes the change control board, documents the extent of its authority, and
describes how the change control system will be implemented.
Answers the following questions:
• Who can propose a change?
• What exactly constitutes a change?
• What is the impact of the change on the project's objectives?
• What steps are necessary to evaluate the change request before approving or
rejecting it?
• When a change request is approved, what project documents must be amended to
record the actions necessary to effect the change?
• How will these actions be monitored to confirm that they have been completed
satisfactorily?
These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Project Management
106
Institute Inc., 2017.
UNCONTROLLED
CHANGES AND RISK
Change requests may affect:
• Project documents
• Deliverables
• Baselines
• Project management plan
SCOPE CREEP
• Uncontrolled increase
in scope
Project scope
• Some changes seem boundary
minor

• Over time, they add up

Uncontrolled changes
 Can you complete the
project a month ahead
of schedule?

Project Manager Customer

INFORMAL
CHANGE I found a way to reduce
We need more help to

REQUESTS
complete this activity on
the number of defects.
time. Can we hire more
Check out this idea.
people?

Project Team Members

 I need you to make these
changes right away. We don’t
have time for a change
request.

CHANGE
REQUESTS
FROM
LEADERSHIP
Project Manager Sponsor
 CHANGE REQUESTS
May originate from
New rules and regulations
Organizational changes
Customer request
Project team request
Project needs Time

• May affect Cost

• Project management plan or subsidiary plans
• Resources
• Addition of members
• Replacement of members
• Outsourcing
• Budget, schedule, or scope baselines Scope
• Quality metrics or standards
• Management reserves
CHANGE REQUEST FORM
Section A of change request form – to be filled in Section B – to be filled in by the project manager
by the requestor
Work Required Startup and login process must be reprogrammed.
Date August 19
Resource required 1 FT programmer
Project name Network upgrade
Expected duration One week
Requester Jill Thomas
Dependencies Availability of original programming team.
Project Tyrone Oswald
manager Additional cost $3,500

Request Though initial specifications called for Contract affected Network upgrade contract.
description security codes four characters in length,
these codes must be at least seven Risks Some current data on system may be lost if user
characters in length for security reasons. profiles are changed.

Reason for Current security settings are too easily Triple constraints This will add to the duration and therefore the costs of
request cracked. impacted the project. However, this is necessary to ensure the
quality of the final product.
Risks, if not The information on our computer
implemented systems could be stolen if we do not Project manager’s Proceed
tighten security. recommendation

Priority of Low Medium High Critical Signature x

request
Date August 21
Causes of Project Changes

Inaccurate initial estimates

Specification changes

New regulations

Missed requirements

113
CHANGE CONTROL PROCESS
• Set a standard for changes
• Benchmark best practices
• Utilize subject matter experts
• Document and track changes
• Communicate with stakeholders
Change Control Systems

Change control system* A set of procedures that describes how modifications to the
project deliverables and documentation are managed and controlled.

Change control systems can include:

• Forms
• Tracking methods
• Processes
• Approval levels required for authorizing or rejecting requested changes

Change Control Board (CCB)* A formally chartered group responsible for reviewing,
evaluating, approving, delaying, or rejecting changes to the project, and for recording
and communicating such decisions.

These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Project Management
115
Institute Inc., 2017.
EXPERT JUDGMENT/MEETINGS

Change Control Board

• A formally chartered group responsible for:
• Reviewing
• Evaluating
• Approving
• Delaying
• Rejecting changes
• Recording and communicating decisions
• Members can include:
• Stakeholders
• Experts
Change Control Strategy

Analyzing the
Change Change Course of Updating
impact of the
identification documentation action related plans
change

117
Approved Change Requests

Approved change requests: Requests that have been received and approved in
accordance with the integrated change control plan and are ready to be scheduled for
implementation.

• Approved changes can include:

• Corrective action—adjusts the performance of the project work with the project
management plan.
• Preventive action—ensures future performance of the project work with the project
management plan.
• Defect repair—modifies a non-conformance within the project.
• Update—modifies a project document or plan.

118
CHANGE LOG

• Document approved and rejected

changes
• Impacts on project
Roll Out Plan

• Once a change is approved and built, the project manager needs to plan for its
successful implementation.
• Roll out plans enable the project manager to define the knowledge transfer,
training, and readiness activities required to implement the change.
• Depending on the size, scope, and nature of the change, the plan details might
include:
• Project team and the affected customer and user stakeholders

• Training and support activities

120
Training Plan

• Changes to the project plan will likely impact the training plan.
• Changes might include:
• Scope of the training and knowledge transfer required

• Roles and responsibilities of the stakeholders

• Training timelines

121
Training Artifacts

Changes to the plan and deliverable set necessitates changes to the training
artifacts, including:
• Changes to training courseware
• Changes to lab configurations and exercises
• Changes to knowledge requirements and potentially to credentials if certification of
skills is expected
• Training updates for the trainers to gain the necessary knowledge transfer required
to deliver the updated training

122
Project Management Plan Updates

• Based on the scope of changes, the project management plan may need
substantial updates.
• Updates might include:
• Scope

• Timelines

• Work packages

• Team member assignments

• In agile projects, lower-value deliverables might be moved out of scope to make

room for the adopted change.

123
PRINCIPLES FOR EFFECTIVE
Change Request
CHANGE CONTROL

Review and assess change requests Evaluate the

IMPACT
• Who initiated the request?
• What type of change are they asking for?
• What led to the request? Explore the
• What would be the impact? ALTERNATIVES
• Are there alternatives?
• Should the change be approved?
Obtain
APPROVAL
Flow Chart Integrated Change Control
Responsibility of Project Manager and/or Change Control Board
Has a change request been Instruct the requester to
completed? No submit a change request.

Yes

Is the IMPACT on other project

initiatives (time, cost, resources)
acceptable? No
Yes

Are there any ALTERNATIVES that Yes

may be more ideal? Reject change request.
No No

Do you have sponsor approval? No

Yes Approve change request.

Expert Judgment
Update change log.
Yes Meetings
Do you have customer approval? Update Project Management
Change Control
Plan.
Tools
Update project documents.
Change Management Process Flowchart
Change Change initiators PM logs change request Send rejection notice
Request Form

Change
request Rejected
passes
filter?

Accepted

Deliverable No
affected?

Yes

PM prepares impact statement

for change request

Minor impact PM Moderate impact PM & Major impact PM, sponsor, &
reviews stakeholder review stakeholder review
Rebalance the project

Build & communicate Yes Change No

Execute the change
the change authorized?
126
INTEGRATED CHANGE CONTROL
Reviewing

• Initiated by change requests

• Even small changes impact scope,

budget, and schedule

• Principles of effective Change Control Change

• Develop method to identify changes

• Address and manage changes Managing Approving

promptly

• Document impact of changes

Updates From Integrated Change Control
PM Plan Updates
Project Documents Updates
• All changes whether
Change Change approved or rejected are
Request Log added to the Change Log

PM Plan
Monitor and Perform • Changes to Baselines
Control Project Integrated
Work Baselines should only show changes
Change Control
from the current time
forward
• Past performance cannot be
changed
• This protects the integrity of
the baselines and the
historical data of past
Direct and
Manage Project performance
Work
 We may have to use some reserve funds. What
decisions require approval? When do I have to
make a change request? When do I have to go
to my sponsor? What does the Change Control
plan indicate?

Project Manager

PROJECT
Management
Reserve
Budget
MANAGER’S
Baseline
AUTHORITY
Cost Contingency
Baseline Reserve
Work Package
Cost
Estimates
Validating Changes
Did the change do what it was supposed to?

Change Request
(iterate integrated

X
change control)

Change

Approved Change Requests Verified Deliverables

✓
Validate Scope
(inspection by project team)
Show the customer!
COST OF CHANGES
Increases over time
More backtracking necessary CHANGE
REQUEST
Agile reduces cost traditional
• Stakeholder engagement

Cost of Changes
• Development methodologies find
defects early
• Verify and validate often

agile

Time
Guidelines to Manage Project Changes

• Make sure your change control system is cost effective.

• Establish or make use of an existing CCB composed of project stakeholders to evaluate change
requests.
• Document the effect the changes have on the applicable project baselines.
• Obtain approval from the appropriate parties for all change requests before implementing the
change.
• Use configuration management to document and control changes to original product characteristics.
• Coordinate changes across knowledge areas as appropriate. For example, does a proposed
schedule change affect cost, risk, quality, and/or staffing?
• Use performance reports to measure project performance.
• Identify corrective action necessary to bring expected performance in line with the project plan.
• Update the project plan to reflect changes made that affect performance baselines.
• Document the causes of variances, the steps taken to correct performance problems, and the
rationale behind the decision-making process.
132
ACTIVITY: MANAGING
PROJECT CHANGES

133
 Page 187 of PMP Exam Prep Student PDF.
Activity 3-7:
Managing
Project
Changes.
TOPIC I:
PLAN AND MANAGE
PROJECT / PHASE
CLOSURE
136
Enablers

• Determine criteria to successfully close the project or phase. (ECO 2.17.1)

• Develop transition planning artifacts.
• Validate readiness for transition (e.g., to operations team or next phase).
(ECO 2.17.2)
• Conclude activities to close out project or phase. (ECO 2.17.3)

137
Deliverables and Tools

Deliverables Tools

Definition of Done No specific tools

Validate work

138
 CLOSING THE PROJECT OR PHASE

Close Project or Phase

Hand off completed product and satisfy

completion or exit criteria
Performing Customer
Organization
Delivered
Solicit feedback from the customer

Complete Final performance reporting and

update lessons learned, release resources
 CLOSING THE PROJECT OR PHASE
OPA Updates
• Project documents
• Operational and support documents
• Necessary to maintain or support the deliverable
• Project or phase closure documents
• Confirm completion of the project
• Customer acceptance documentation
• Reasons for termination if project not completed
• Lessons learned repository
• For use by future projects

Contract

@
Contracts Invoices Archived communications Schedules Past project documents
FINAL REPORT
Summary of project or phase
Project objectives
• Criteria used for evaluation
• Verification that criteria were met
• Evaluation of unmet criteria
Confirmation that deliverables achieved the business
needs or will meet needs in the future
Summary of risks encountered during the project
 ETHICS IN CLOSING
• Ensure deliverables have been completed based on documented and agreed-
upon requirements
• Protect the organization from additional costs or charges after completion
• Communicate transparently with stakeholders regarding lessons learned in
final project report
• Contribute to the development and growth of other project professionals
through the capture of comprehensive lessons learned EEF and OPA updates
• Evaluate customer and end-user satisfaction and enhance future relationships
• Formally close the project or phase
Close Project or Phase

Several important activities occur during closeout:

• The planned work is completed.
• Project or phase information is archived.
• Project team resources are released to pursue other endeavors.

143
Close Project or Phase Criteria

• Any one of the following events can result in closure:

• The project or phase successfully met its completion objectives.

• The requirements changed during execution to the point where the project is no
longer feasible.
• Adequate funding is no longer available to complete the requirements.

• Significant risks are encountered that make the successful completion of the
project impossible.
• The organization no longer needs the project deliverables.

• External factors arise that do away with the need for the project. Examples of these
factors include:
• Change in laws or regulations.

• Merger or acquisition that affects the organization.

• Global or national economic changes.

144
Transition Planning Artifacts

• Coordination and strategy about how to best deliver and transition the product and
other deliverables is needed.
• Releasing and deploying deliverables in the most suitable manner ensures end-
user awareness and increases the proper usages and adoption of outputs.
• Preparation of artifacts includes:
• Training

• Documentation

• Communication

• Support

145
Transition Readiness

• Releasing, delivering, and deploying the project’s work into an environment that is
not ready may negate its value.
• Project teams must examine the readiness of all parties and prepare them for
delivery, including:
• End users
• The business
• The physical resources
• The project team
• Most critical in situations where there is an upgrade or improvement to an existing
product or service.
• Assess the readiness of all parties, implement the transition plans accordingly, and
capture lessons learned for the next release or project.

146
Close-Out Meetings

• Sessions held at end of project or phase

• Involve:
• Discussing the work

• Reviewing lessons learned

• May include stakeholders, team members, project resources, and customers

147
Guidelines to Close a Project or Phase

• Review the project management plan.

• If applicable, use a project termination checklist.
• Gather and organize performance measurement documentation, product documentation, and other
relevant project records.
• Confirm project's products meet compliance requirements.
• Release project resources.
• Update records to ensure that they reflect final specifications.
• Be sure to update the resource pool database to reflect new skills and increased levels of
proficiency.
• Analyze project success and effectiveness and document lessons learned.
• Prepare lessons-learned reports and a final project report.
• Obtain project approval and formal project acceptance.
• Archive a complete set of indexed project records.
• Celebrate the success of the project with the team and other stakeholders.
148
ACTIVITY: CLOSING A
PROJECT OR PHASE

149
 Page 144 of PMP Exam Prep Student PDF.
Activity 2-11:
Closing a
Project or
Phase.
 DAILY BOOTCAMP SURVEY

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