ABOUT THE AUTHOR Joseph Phillips, PMP, PMI-ACP, ITIL, Project+, CTT+, is the Director of Education for Instructing.com, LLC He has managed and consulted on projects for industries including technical, pharmaceutical, manufacturing, and architectural, among others Joseph has served as a project management consultant for organizations creating project offices, maturity models, and best-practice standardization As a leader in adult education, Joseph has taught organizations how to successfully implement project management methodologies, adaptive project management, information technology project management, risk management, and other courses He has taught at Columbia College, University of Chicago, Ball State University, and for corporate clients such as IU Health, the State of Indiana, and Lawrence Berkeley National Laboratories A Certified Technical Trainer, Joseph has taught more than 50,000 professionals and has contributed as an author or editor to more than 35 books on technology, careers, and project management Joseph is a member of the Project Management Institute (PMI) and is active in local project management chapters He has spoken on project management, project management certifications, and project methodologies at numerous trade shows, PMI chapter meetings, and employee conferences in the United States and in Europe When not writing, teaching, or consulting, Joseph can be found behind a camera or on the working end of a fly rod You can contact him through www.instructing.com About the Technical Editor Karen Fox’s career in project management has spanned more than 30 years She has managed IT projects initially utilizing the traditional waterfall methodology and then utilizing a blending of waterfall and agile in recent years She has worked in industries both in the private and New York City government sectors and has provided project leadership to cross-functional teams including IT staff, business users, and consultants Karen acquired her PMP certification in 2004 Karen has enjoyed a volunteer career spanning more than 15 years with PMI New York City Chapter (PMINYC) She has held a broad spectrum of positions contributing to the leadership of PMINYC, including Vice President of Programs (2006–2008), President Elect (2009, 2017), President (2010), Director of Marketing (2013–2014), and Director of Governance (2016) Presently serving as President Elect, she will become Chapter President January 2018 In 2011 she was selected by PMI to join the 2012 Leadership Institute Master Class and served on the PMI Chapter Awards Review Committee from 2013 to 2014 In 2014, PMINYC presented Karen with a Lifetime Achievement Award Copyright © 2018 by McGraw-Hill Education All rights reserved Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher, with the exception that the program listings may be entered, stored, and executed in a computer system, but they may not be reproduced for publication ISBN: 978-1-25-986159-8 MHID: 1-25-986159-7 The material in this eBook also appears in the print version of this title: ISBN: 978-1-25-986162-8, MHID: 1-25-986162-7 eBook conversion by codeMantra Version 1.0 All trademarks are trademarks of their respective owners Rather than put a trademark symbol after every occurrence of a trademarked name, we use names in an editorial fashion only, and to the benefit of the trademark owner, with no intention of infringement of the trademark Where such designations appear in this book, they have been printed with initial caps McGraw-Hill Education eBooks are available at special quantity discounts to use as premiums and sales promotions or for use in corporate training programs To contact a representative, please visit the Contact Us page at www.mhprofessional.com TERMS OF USE This is a copyrighted work and McGraw-Hill Education and its licensors reserve all rights in and to the work Use of this work is subject to these terms Except as permitted under the Copyright Act of 1976 and the right to store and retrieve one copy of the work, you may not decompile, disassemble, reverse engineer, reproduce, modify, create derivative works based upon, transmit, distribute, disseminate, sell, publish or sublicense the work or any part of it without McGraw-Hill Education’s prior consent You may use the work for your own noncommercial and personal use; any other use of the work is strictly prohibited Your right to use the work may be terminated if you fail to comply with these terms THE WORK IS PROVIDED “AS IS.” McGRAW-HILL EDUCATION AND ITS LICENSORS MAKE NO GUARANTEES OR WARRANTIES AS TO THE ACCURACY, ADEQUACY OR COMPLETENESS OF OR RESULTS TO BE OBTAINED FROM USING THE WORK, INCLUDING ANY INFORMATION THAT CAN BE ACCESSED THROUGH THE WORK VIA HYPERLINK OR OTHERWISE, AND EXPRESSLY DISCLAIM ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE McGraw-Hill Education and its licensors not warrant or guarantee that the functions contained in the work will meet your requirements or that its operation will be uninterrupted or error free Neither McGraw-Hill Education nor its licensors shall be liable to you or anyone else for any inaccuracy, error or omission, regardless of cause, in the work or for any damages resulting therefrom McGraw-Hill Education has no responsibility for the content of any information accessed through the work Under no circumstances shall McGraw-Hill Education and/or its licensors be liable for any indirect, incidental, special, punitive, consequential or similar damages that result from the use of or inability to use the work, even if any of them has been advised of the possibility of such damages This limitation of liability shall apply to any claim or cause whatsoever whether such claim or cause arises in contract, tort or otherwise In memory of my brother, Steve Phillips: a great brother, teacher, and friend I miss him dearly CONTENTS AT A GLANCE Part I Project Management Foundation Chapter Preparing for the Exam Chapter Managing a Project in Different Environments Chapter Working as a Project Manager Part II Project Management Professional Testing Areas Chapter Managing Project Integration Chapter Managing Project Scope Chapter Managing Project Schedule Chapter Managing Project Costs Chapter Managing Project Quality Chapter Managing Project Resources Chapter 10 Managing Project Communications Chapter 11 Managing Project Risks Chapter 12 Managing Project Procurement Chapter 13 Managing Project Stakeholders Chapter 14 Understanding the Code of Ethics and Professional Conduct Part III Appendixes Appendix A Project Management Documents Appendix B Passing the CAPM and the PMP Exams Appendix C About the Download Glossary Index CONTENTS Acknowledgments Introduction Part I Chapter Project Management Foundation Preparing for the Exam All About the PMP Exam All About the CAPM Exam Money and Your Exam Passing the Exam Creating Your Study Strategy What Your Exam Is Based On What Is a Project? Temping a Project Defining a Project’s Uniqueness Changing the Organization Creating Business Value Progressively Elaborating a Project Why Do Projects? Creating Project Management Business Documents What Is Project Management? Back to the PMBOK Guide Being a Project Expert Using the Project Management Body of Knowledge Working with Your Application Area Examining the Project Management Context Opening Your Portfolio Working with Programs Working with Subprojects Working with Project Management Offices Considering Projects and Operations Identifying the Project Life Cycle Examining a Project Life Cycle Comparing Project Life Cycles and Product Life Cycles Working with Project Management Processes Exploring the Project Management Processes Examining the Process Group Interactions Choosing the Appropriate Processes Working with Process Groups Gathering Project Management Data and Information Gathering Work Performance Data Creating Work Performance Information Communicating Through Work Performance Reports Chapter Summary Key Terms Questions Questions and Answers Chapter Managing a Project in Different Environments Working with Enterprise Environmental Factors Working with Internal Enterprise Environmental Factors Considering External Enterprise Environmental Factors Leveraging Organizational Process Assets Adhering to Processes, Policies, and Procedures Leveraging Organizational Knowledge Repositories Working Within an Organizational System Working in a System Operating Within Governance Framework Identifying the Organizational Influences Completing Projects in Different Organizational Structures Recognizing Organizational Structures Managing Project Teams Working with a PMO Chapter Summary Key Terms Case Study Managing Projects from Start to Completion Examining the Project Deliverables Examining the Project Phases Controlling Project Changes Questions Questions and Answers Chapter Working as a Project Manager Exploring the Project Manager Role Leading the Project Team Communicating Project Information Negotiating Project Terms and Conditions Active Problem-Solving Identifying the Project Manager Influence Influencing the Project Influencing the Organization Considering Social, Economic, and Environmental Project Influences Considering International Influences Considering Cultural and Industry Influences Building Project Management Skills Enhancing Skills and Competencies Introducing the PMI Talent Triangle Managing Politics in Projects Serving as a Leader and Manager Learning Leadership Styles Creating a Leadership Persona Performing Project Integration Integrating Processes Building Your Cognitive-Level Integration Examining Context-Level Integration Chapter Summary Key Terms Questions Questions and Answers Part II Chapter Project Management Professional Testing Areas Managing Project Integration Developing the Project Charter Preparing to Create the Project Charter Choosing a Project to Charter Knowing the Project Management Methodology Creating the Charter—Finally Creating the Assumptions Log Developing the Project Management Plan Creating the Project Management Plan Hosting the Project Kickoff Meeting Directing and Managing the Project Work Creating the Project Deliverables Creating an Issue Log Responding to Project Conditions Managing Project Knowledge Preparing to Manage Knowledge Reviewing Knowledge Management Tools and Techniques ambiguity, 423 avoiding, 446 categories of, 426–427, 434, 440 defined, 458 event-based, 422 identifying, 427–434 justifying reduction of, 449 mitigating, 447 monitoring, 451–455 negative, 446–447 non-event, 422–423 planning for, 422–427 positive, 447–448 probability/impact of, 436–437 responses to, 195, 445–451 root causes of, 434 transferring, 446–447 variability, 423 risk scores, 437, 439, 459 risk tolerance, 421–422 ROI (return on investment), 133 roles defined, 376 identifying, 352 project manager, 87–88, 100 risk management, 426 rolling wave planning, 249 activity list creation and, 218, 219 deliverables decomposition and, 190 root-cause analysis, 91, 148, 316 root-cause identification, 418, 459 rough order of magnitude (ROM), 266, 294 RTM See requirements traceability matrix Rule of Seven, 323, 329 rules contract, 476–477 EVM formula, 290–291, 584 project team, 362 run charts, 324, 325, 329, 576 S safety people’s need for, 367 policies related to, 348 salience model, 516, 591 sampling, statistical, 325 scatter diagrams, 317, 321, 324, 329, 576 schedule activities, 217, 576 schedule baseline, 140, 159, 240, 349, 372, 429, 576 schedule comparison bar charts, 576 schedule compression, 30, 237–238 schedule control, 242–245 schedule development, 233–242 coding structure and, 239–240 float calculations and, 233–236 mathematical analysis and, 233 outputs related to, 240–242 project management software for, 239 project simulations and, 238–239 resource-leveling heuristics and, 239 schedule compression and, 237–238 schedule management, 213–261 activity lists for, 217–220 controlling the schedule, 242–245 defining project activities, 216–222 developing the schedule, 233–242 documenting activity attributes, 220–221 duration estimates and, 227–232 formal vs informal plans for, 241–242 key terms related to, 246–249 milestone lists for, 221 on-demand approach to, 215–216 planning, 214–216 practice questions, 249–254 presentation formats and, 241 questions and answers, 254–261 quick facts about, 586 resource requirements and, 242 sequencing of activities and, 222–226 summary of, 245–246 schedule management plan activity sequencing and, 222 creating, 214 defined, 159, 249 duration estimates and, 227 formal vs informal, 241–242 information documented in, 215 project management plan and, 139 resource planning and, 348 risk identification and, 428 schedule milestones, 199 schedule network templates, 576 schedule performance index (SPI), 286, 294 schedules controlling, 242–245 cost estimates and, 269 developing, 233–242 formats for presenting, 241 just-in-time, 225 planning to manage, 214–216 PMI exam questions on, 236–237 risk management process, 426 trend analysis of, 326 updating, 244 variances in, 243, 284 schedule variance (SV), 243, 284, 285, 295 scope controlling, 193–196 defined, 199 project vs product, 182–183 quick facts about, 585–586 validating, 191–192 scope baseline components of, 191 cost estimates and, 268 defined, 159, 576 project management plan and, 140 risk identification and, 429 scope creep, 193, 199 scope management, 173–212 change control and, 194–196 collecting project requirements, 177–182 completed projects and, 192 controlling project scope, 193–196 explanatory overview of, 173–174 key terms related to, 197–200 planning, 174–177 practice questions, 200–205 project vs product, 182–183 questions and answers, 205–212 scope statement, 183–188 summary of, 196–197 validation process, 191–192 video about, 173 WBS creation, 188–191 scope management plan change control in, 194 creating, 175–176 defined, 158, 199, 573 project management plan and, 139 resource planning and, 348 scope statement, 183–188 alternatives generation for, 186 components of, 187–188 cost estimates using, 268 creating, 183–188 defined, 573–574 product analysis for, 184–186 quality requirements in, 307 stakeholder analysis for, 186 scope validation, 191–192, 199 scoring models, 131, 159 screening system, 487, 495 secondary risks, 448, 459 security policies, 348 selection committees, 131 self-actualization, 367 self-organizing teams, 346 seller rating systems, 487, 495 sellers advertising for, 485 contracts with, 487 list of qualified, 485 proposals from, 485 rating system for, 487 selecting, 486–489, 498 sender, 392, 409 sender-receiver models, 89, 107, 391, 409 sensitivity analysis, 442, 459 sequencing activities See activity sequencing servant leadership, 98, 101, 107 seven basic quality tools, 320–321, 329 sharing positive risks, 448, 459, 590 sigma values, 323 simple averaging, 230 simple structure, 62, 68 simulations See project simulations single source, 269, 270, 295 situational power, 99, 107 skills communication, 400–401 interpersonal, 360–361, 523–524 project management, 96–100, 524 slack, 233, 586 smoothing, 366, 376 social and cultural environment, 38, 55 social computing, 391 social influences, 94 social needs, 367 soft logic, 225, 226, 249 soft skills, 360 software make-or-buy decisions for, 480–481 PMIS, 141, 150–152, 239 project management, 141, 239, 274–275 sole source, 269, 270, 295 solving problems See problem solving source selection criteria, 144 special interest groups, 145 speculative risks, 428 sponsors project charter backed by, 126 as stakeholders, 92 spreadsheets EV Worksheet, 291 Exam Scores, 13 sprints, 174 staff acquiring, 356–359 developing, 359–363 managing, 363–367 preassigned, 357 procurement of, 357–358 See also human resources staffing pool, 356–357 stakeholder analysis defined, 199, 529 scope statement and, 186 steps in process of, 514–515 stakeholder classification models, 515–517, 530 stakeholder cube model, 516 stakeholder engagement defined, 530 levels of, 520 managing, 521–525 monitoring, 525–527 preparing for, 522–523 project quality and, 308 reviewing results of, 524–525, 527 skills for, 523–524 stakeholder engagement plan communications management and, 394 creating, 520 defined, 530 examining, 521 project management plan and, 140 stakeholder engagement planning, 530 stakeholder identification, 512–518 analyzing stakeholders, 514–515 classifying stakeholders, 515–517 communication planning and, 514 defined, 530 finalizing the process of, 517 launching the process of, 514 preparing for, 512–514 stakeholder register and, 517–518 stakeholder management, 511–542 defined, 530 identifying stakeholders for, 512–518 key terms related to, 528–530 overview of, 511–512 planning process for, 518–521 practice questions, 530–534 questions and answers, 535–542 quick facts about, 591 stakeholder engagement and, 521–527 summary of, 528 video about, 511 stakeholder management planning, 518–521 inputs required for, 519 stakeholder engagement and, 520–521 stakeholder notifications, 409 stakeholder register communications planning and, 394–395 creating, 517–518 defined, 530, 576 knowledge management and, 144 procurement process and, 476, 489 quality planning and, 310 requirements collection and, 178 resource planning and, 350 risk management and, 424 stakeholder management and, 519 stakeholders analysis of, 186, 514–515 classification of, 515–517 collecting requirements from, 178–181 communicating with, 390–391, 399, 404 defined, 529 identifying for projects, 93, 512–518 influence of project managers on, 91–93 interviewing for risk analysis, 441 managing engagement of, 521–525 planning to manage, 518–521 Standard for Project Management, The, 17 standards, 26, 55 fairness, 548–549 honesty, 549–550 respect, 547–548 responsibility, 546–547 See also Code of Ethics and Professional Conduct Stanford, Thomas, 69 start-to-finish (SF) relationship, 225, 249 start-to-start (SS) relationship, 224, 249, 586 statement of objectives (SOO), 482 statement of work (SOW), 482, 574 statistical sampling, 325, 329 status review meetings, 409 steering committees, 92, 131 Steinberg, Jan, 69 storming phase, 361, 376 story points, 174 storytelling, 146 strategic and business management skills, 98 strategic plan, 576 strengths, 431 strong matrix structure, 64, 69 structure of organizations See organizational structures study strategies, 13–16 styles communication, 89, 107 leadership, 101 subject matter experts (SMEs), 135 subnets, 225, 249 subnetwork template, 576 subprojects, 28, 40 summary budget, 576 summary milestone schedule, 576 sunk costs, 278, 295 suppliers, 92 supportive PMOs, 67 supportive stakeholders, 520, 530 surveys, 179 SWOT analysis, 431, 459 system behavior, 103 system engineering, 185, 200 system flowcharts, 322, 329 systems, definition of, 58–59 See also organizational systems systems analysis, 185, 200 T tacit knowledge, 144, 159 tailoring projects, 33 Talent Triangle, 97–99, 107 task relationships, 224–225 team-building activities, 361–362 team charter, 352, 576 teaming agreement, 577 team management plan, 577 team skills, 136, 405, 450–451 teams, project See project teams technical interfaces, 376 technical performance, 326, 453 technical project management skills, 98 technical risks, 426, 459 technical support information, 595 technologies communication, 398–399, 402 risks related to, 426 TECOP prompt list, 432, 459 templates activity list, 218 cost-estimating, 270 defined, 249 network, 225 resource planning, 348 WBS, 189 temporary nature of projects, 18–19 terms of reference (TOR), 482, 496 tests (PMP/CAPM) See exams text-oriented charts, 351 text-oriented responsibility format, 577 theories of constraints, 345 human resource, 367–370, 588 threats, 431 Three Needs Theory, 370 three-point estimates activity durations and, 230 cost determinations and, 273 defined, 249, 577 time and materials (T&M) contracts, 478, 479, 496, 577, 590–591 time management See schedule management time reporting system, 409 time value of money, 132, 134, 265 to-complete performance index (TCPI), 290, 295 tornado diagrams, 442 total float, 233, 249, 586 total productive maintenance, 345 Total Tester Premium test engine, 13–14, 594 training events, 145 transactional leadership, 101, 107 transferring negative risks, 446–447, 459, 589 transformational leadership, 101, 107 transparency, 474 tree diagrams, 329, 577 trend analysis defined, 329 project data, 148 quality control, 325–326 resource control, 371 risk-related, 440, 445 triggers, risk, 434 Triple Constraints of Project Management, 23, 40, 213 trustworthiness, 523 Tuckman, Bruce, 361 typical variances, 287 U unanimous decisions, 179, 200 unaware stakeholders, 520, 530 uncertainty in projects, 103 undocumented change requests, 195 uniqueness of projects, 19 unit price (UP) contracts, 478, 479 unknowable-unknowns, 423 unofficial communications, 390 updates change requests and, 149–150, 196 project charter, 128 quality management plan, 315, 326 resource requirement, 242 schedule, 244 WBS, 221–222 upper control limits (UCLs), 322 urgency of information, 398 user stories, 174 utility function, 421 V validating project scope, 191–192 value-added changes, 195 value analysis, 185, 200 value engineering, 185, 200 variability risks, 423, 459 variable costs, 273, 295, 587 variance analysis, 148 variance at completion (VAC), 290, 295 variance reports, 280 variances analyzing, 405–406, 453 cost, 280, 284 definition of, 295 ETC and EAC, 287–289 finding with EVM, 283–284 range of, 267 risks related to, 453 schedule, 243, 284, 285 scope, 195 vendors case example of selecting, 498 examining responses from, 486 See also sellers verbal communications, 401 verified deliverables, 192, 326 video resources, 13, 594 accessing, 593 on communications management, 389 on earned value management, 263 on finding float, 234 on human resource theories, 343 on make-or-buy decisions, 480 on passing your exam, on PMI Code of Ethics and Professional Conduct, 544 on project environments, 53 on project integration management, 125 on project life cycles, 61 on quality management, 308 on risk management, 421 on role of the project manager, 100 on scope management, 173 on stakeholder management, 511 on time value of money, 132 virtual structure, 64–65, 69 virtual teams, 66, 346, 358 Vroom’s Expectancy Theory, 370, 376, 588 VUCA prompt list, 432, 459 W Walton, Mary B., 308 waterfall approach, 174 WBS (work breakdown structure) activity lists and, 219–220 control accounts in, 219, 266 cost estimates and, 268 creating, 188–191 defined, 200, 577 deliverables in, 188, 190 dictionary, 190–191 quick facts about, 585 scope management and, 174, 188–191 templates, 189 updating, 221–222 work packages in, 188 WBS dictionary, 190–191, 200, 577 WBS template, 189, 200, 577 weak matrix structure, 63, 69 weaknesses, 431 weighting system, 486–487, 496 what-if scenarios, 238, 239 why-why diagrams See cause-and-effect diagrams win-lose awards, 362 withdrawal/avoidance, 366, 376 work breakdown structure See WBS work packages decomposing, 217–218 defined, 200, 249, 577 in WBS, 188 work performance data, 36, 40, 281, 320, 452, 577 work performance information communication monitoring and, 406 creating, 36–37 defined, 40, 200, 329, 577 preparing for inspection, 192 procurement control and, 491 quality control and, 326 risk monitoring/control and, 454 scope control and, 193 stakeholder engagement and, 526, 527 work performance reports communicating through, 37, 403 creation of, 148 defined, 40, 577 risk monitoring/control and, 452 team management and, 364 See also performance reports work shadowing, 145 writing style, 392 written communications, 390 X X and Y Theory, 369 Z Z Theory, 369–370 zero-sum awards, 362 ... Cost Management Plan Examining the Project Cost Management Plan Determining the Project Costs Estimating the Project Costs Creating the Cost Estimate Examining the Cost Estimate Budgeting the Project. .. Managing Project Scope Planning the Project Scope Management Creating the Project Scope Management Plan Creating the Requirements Management Plan Collecting the Project Requirements Working with Project. .. Project Management? Back to the PMBOK Guide Being a Project Expert Using the Project Management Body of Knowledge Working with Your Application Area Examining the Project Management Context Opening