The PMP Exam: How to Pass on Your First Try

By Andy Crowe

This book has been fully updated for the Jan 2021 PMP exam, including the all-important agile content. The PMP Exam: How to Pass on Your First Try provides all the information project managers need to thoroughly prepare for & pass the test. This comprehensive study resource includes: Coverage of predictive, agile, and hybrid approaches, as well as all the processes, inputs, tools, and outputs to be tested, and insider secrets. A complete guide for the PMP certification exam also includes test tricks and tips, links to more than 60 videos with explanations of concepts, 475 practice exam questions including end of chapter quizzes, a simulated final exam, and trial access to InSite (Velociteach's e-learning portal) with an extra 100 simulated practice exam questions. As the most complete, concise, and up-to-date study resource, Andy's book cuts down on the difficulty of obtaining the PMP certification and helps candidates pass the exam on the first try.

• Language: English
• Publisher: Velociteach
• Release date: Oct 15, 2021
• ISBN: 9781732055742

Book preview

1

The Exam

This chapter will explore the PMP certification exam, what it is like, and the material it covers. It will clarify exactly what the test is, how it is structured, and an overview of the contents. Specific strategies on how to pass the exam will be discussed in Chapter 14 – How to Pass the PMP on Your First Try.

WHAT THE EXAM TESTS:

Before we discuss what the PMP certification exam does test, let’s clear up a few misconceptions about the exam.

The PMP certification exam does not test:

Your project management experience or competence

Your common sense

Your knowledge of industry practices

Your knowledge of how to use software tools

What you learned in management school

Your intelligence

The PMP certification exam does test:

Your knowledge of PMI’s processes

Your understanding of the many terms that are used to describe the processes

Your ability to apply those processes in a variety of situations

Your ability to apply key formulas to scheduling, costing, estimating, and other problems

A PASSING GRADE:

Not to scare you right away, but the cold, hard truth is that many who take the PMP Exam do not pass. Those who do not pass come from a broad cross-section of people, ranging from those who have approached the exam with extensive preparation, including books and training classes, to those who have barely expended any effort. By using this book, you are tilting the scales decidedly in your favor!

Although PMI no longer discloses the exact score you will need to pass, it is estimated that you need to correctly answer at least 106 questions out of the 175 graded questions on the test (more on graded questions later). That translates to 61%, and if your first reaction to the 61% mark is that it does not sound very impressive, consider that this exam revision is tougher. 61% is a great score, and each year, tens of thousands of project managers do not pass.

Some people find it very difficult to understand why they cannot study and make a perfect score on the PMP. It is a good thing to want to do well on the exam, but considering the incredible breadth of material, simply passing it is a terrific accomplishment! Experts disagree over some of the questions, and there will be some that you will feel absolutely certain you got right that you likely missed. This has more to do with the way the questions are constructed and worded than it does with the study effort you put in, your intellectual powers, or your test-taking abilities.

Your goal in taking the PMP should be to do your absolute best and to make sure that your best effort falls within PMI’s passing score limits.

A Passing Grade

Chapter Notes:

THE EXAM MATERIAL:

Your PMP Exam will be made up of more than 180 questions, covering a broad variety of material, but only 175 of those questions will count toward your score. The other 5 questions are considered experimental questions that PMI is evaluating for use on future exams. The good news is that these 5 questions do not count toward your grade. The bad news is that you will never know which questions count and which do not since they are scattered randomly throughout the exam.

PMI does provide some guidelines as to how the material will be presented. This guidance is found in PMI’s Exam Content Outline which serves as a blueprint to the PMP Exam. The exam was significantly updated January 2, 2021. The exam includes approach questions about predictive, or traditional waterfall projects, agile projects, as well as hybrid projects—the combination of predictive and agile approaches. The exam is also categorized by the domains of process, people, and business environment. The above diagram references the ratios of exam coverage by these two topical views of the question types. The numerical breakdown of questions is shown in the tables below.

The approaches shown (predictive, agile, and hybrid) will be dispersed throughout the test in the domains shown (process, people, and business environment). The questions by approach will not be isolated to a specific domain.

This fact shocks many people preparing for the exam:

The PMBOK® Guide (pronounced pim’-bock), which stands for a Guide to the Project Management Body of Knowledge, is not a single study source for the PMP® exam.

The current PMBOK® Guide does not provide information in the topical views shown above for the exam question breakdown. The information presented is an excellent definition and presentation of the project management processes, knowledge areas, and associated process groups, but it does not give you much help in knowing how that material will translate to the exam. Many of those who do not pass the PMP® Exam tried to use the PMBOK® Guide as their study guide and were surprised that there were questions, terms, and concepts on the exam that were not in the PMBOK® Guide. Additionally, agile and hybrid concepts, which make up 50% of the updated exam, are dealt with very lightly in the current PMBOK® Guide.

The chapters in the book are organized by the process framework—knowledge areas and process groups. The process group terms—initiating, planning, executing, monitoring and controlling, and closing—will be explained in Chapter 3 – Process Framework. Information about agile projects and approaches is interspersed throughout the book to highlight differences for exam preparation. Additionally, each knowledge area chapter concludes with a section on agile perspectives.

The Exam Material

Chapter Notes:

GETTING TO THE TEST (APPLICATION)

It is highly recommended that you join the Project Management Institute prior to signing up to take the test. At publication time, the new member fee was $139.00 ($129.00 membership + $10.00 new member activation fee). Application may be made online at www.pmi.org, or you may obtain an application from PMI by calling [phone].

After joining PMI, you will receive a membership number that you can use to receive a $150.00 discount on the exam’s non-member fee, so you instantly save money by joining. The Examination Fee will be $405.00 for a member in good standing. If you elect not to join PMI, it will cost $555.00 to apply to take the test.

In addition to the financial advantage, there are many other benefits that come with joining PMI, including a subscription to PMI’s publications, PM Network and PM Today; discounts on books and PMI-sponsored events; and access to a wealth of information in the field of project management.

When you get ready to apply for eligibility for PMP certification, you can apply online or use printed forms. If at all possible, you should apply online. Depending on the time of year, wait times have been known to stretch out for weeks when using printed forms through the mail, while online applicants usually report turnaround times within one to two weeks. The length of time can vary, depending on the volume of applications that PMI is processing. In any case, you must have your letter of eligibility from PMI to sit for the PMP certification exam.

To be eligible for PMP certification, you will need to demonstrate that you meet certain minimum criteria. The current qualifications that PMI requires are summarized below.

In short, if you hold a university degree, you should apply under the first category. If not, you should apply under the second. See PMI’s official guide, available online at www.pmi.org, for more details on this point.

Minimum Requirements to Apply with a College Diploma

A University Degree

36 months (3 years) of project management experience

35 hours of project management education (note that the online class included on the key card in the back of this book can provide you with eight of those contact hours)

Minimum Requirements to Apply without a College Diploma

A High school diploma or equivalent

60 months (5 years) of project management experience

35 hours of project management education

Getting to the Test (Application)

Chapter Notes:

ONGOING EDUCATION

PMPs are expected to demonstrate not only knowledge and experience but also their ongoing commitment to the field of project management. To promote such commitment, PMI requires that all PMPs maintain their certification status by completing at least 60 Professional Development Units (PDUs) every 36 months. The requirements for PDUs are defined in further detail in the PMI Continuing Certification Requirements Program Handbook given to all PMPs, and these requirements are similar in nature to requirements that legal, medical, and other professions have adopted. In order to maintain the value of this certification, PMI requires its PMPs to maintain a project management focus and a continued commitment to the field of project management.

Ongoing Education

Chapter Notes:

THE TESTING ENVIRONMENT

The PMP certification exam is administered in a formal environment. There is no talking during the exam, and you cannot bring notes, books, paper, cell phones, PDAs, or calculators into the examination room with you. The PMP is considered a high-stakes or high-security exam and is very carefully monitored. Test-takers are constantly observed by the test proctor and are under recorded video and audio surveillance. This can be distracting as well as unnerving, so it is important to be mentally prepared as you walk into the exam.

The test is delivered on a Windows-based PC that runs a secure, proprietary testing application. The computer setup is very straightforward, with a mouse and keyboard and a simple graphical user interface used to display the test. PMI can arrange special accommodations for those test-takers who have special physical needs. To get a feel for how the real PMP Exam looks and feels, use the key found in the back cover of this book to gain access to insite.velociteach.com for simulated PMP Exams and other content.

Though PMI has made provision for test-takers who do not live near a testing center to take a paper version of the exam, they have also provided an online version of the computerized exam to be administered within specific security guidelines. Exam content is the same in each case, and your preparation should not be any different. More information on exam options may be found online at www.pmi.org.

The exam ends either when the 230-minute time limit has been reached or when you choose to end the exam. With the online exam option, two 10-minute breaks are provided, one after each 60 questions have been submitted. Going back to review or change the previous questions after the breaks is not permitted. Once the exam is over, you will know your score within a few seconds, and those results are electronically transmitted to PMI. If you passed, you are immediately a PMP, and you may start using that designation after your name. If you did not pass, you may take the exam up to three times in a calendar year. If you do not pass on your third attempt, you must wait one year from your last attempt to reapply.

The Testing Environment

Chapter Notes:

THE TIME LIMIT

Taking a test while the clock is ticking can be unnerving. The PMP Exam is a long exam, but you are given a significant block of time to complete the test. From the time you begin the exam, you will have 230 minutes to finish. For most people, this is enough time to take the test and review the answers. The allocation works out to about 77 seconds per question. While a few of the more complicated questions will certainly require more than 77 seconds, most will take much less time.

The subject of time management for the exam, along with a suggested strategy for managing your time, is covered later in Chapter 14 - How to Pass the PMP on the First Try.

Time Limit

Chapter Notes:

QUESTION FORMATS

Most exam questions are given in a multiple choice format, with four possible answers, marked A, B, C, and D, and only one of those four answers is correct. New question formats have been introduced, such as multiple-select (select all 4-6 answers that apply), matching, and selecting the correct spot or region on an image. Unlike in some exams, there is no penalty for guessing, so it is to your advantage to answer every question on the PMP Exam, leaving none of them blank.

Many of the questions are quite short in format; however, the PMP Exam is famous (or infamous) for its long, winding questions that are difficult to decipher. To help you prepare, you will see different question styles represented in this book. Going through all the sample questions provided in this volume is an excellent way to prepare for the types of questions you will encounter on the actual exam.

Question Formats

Chapter Notes:

2

Foundational Terms and Concepts

The best place to begin preparing for the PMP Exam is for you to understand exactly what a project is and how it differs from operations, a program, or other activities your organization might undertake. You will also need to understand what a project manager does and how different organizational structures can influence a project manager’s role and power. A solid grasp of these and a few other concepts will help you absorb the rest of the material in this book.

We will start by looking at some fundamental concepts related to predictive projects. Then we will discuss how agile does things differently later in the chapter. Some of the concepts, covered in the next few pages, could be applied on either predictive or agile projects.

Most of the chapters in this book focus on the 49 processes of project management, but this chapter will help you build an important foundation. The concepts in this book will make more sense once you understand this chapter.

PHILOSOPHY:

Projects are carried out by organizations. Sometimes this is referred to as the organizational context. It is important because the type of organization and other environmental factors can greatly influence how the project is carried out.

Every project is going to be unique in its own way. They may have different stakeholders, different team members, or unique goals. An effective project manager must be able to navigate these differences and still get to a successful outcome. Even apparently slight differences between organizations can have disproportionately large impacts on the project. For example, if your senior management strongly supports the project team, that can provide a tremendous advantage over a senior manager that only offers lukewarm support.

IMPORTANCE:

This chapter is foundational to your understanding, so it is highly important.

There will be many questions on your exam that test your understanding of project managers, stakeholders, and sponsors. You will also need to be able to identify the different types of organizations and to recognize the difference between a project and other activities. Take the time to understand the terms in this chapter.

PREPARATION:

There is a lot of material to learn in this chapter, and much of it is marked as important. Memorizing these terms will help, but understanding and applying them will benefit you even more.

ESSENTIAL TERMS:

Let’s begin by mastering a few terms that you will see frequently throughout this book.

Inline-image Process - Most of this book is about the 49 processes of project management, and you will see this term a lot. A process does or creates something necessary and valuable for the project. For example, there is a process we will cover in chapter four named Develop Project Management Plan, and it does exactly what it sounds like. Another process named Identify Risks is the process where the list of risks is created.

Processes consist of only three types of ingredients: inputs, tools and techniques, and outputs. The outputs of one process often become the inputs to one or more other processes. To make it easier, some of the most common inputs, tools and techniques, and outputs are covered in this chapter.

One important thing to understand, and one that trips up many learners, is that every process may be performed more than one time on a single project. In fact, you could conceivably perform most of the processes more than one time within a single phase (don’t worry, phases are covered next). For example, just because you have created the project’s schedule, it does not mean that you will not revisit the process of Develop Schedule if the scope of the project increases or if the budget were changed. In reality, you may perform that process multiple times, and most processes are the same way.

Do not think about these 49 processes happening sequentially or by themselves. Many processes may be carried out in parallel and may be revisited often.

Inline-image Phase - Most larger projects are broken down into units known as phases. These phases may have names like requirements gathering, design, construction, testing, and implementation. When preparing for the exam, it is easiest to think of phases as being carried out one after the other even though they could possibly have some overlap in real practice.

Each phase of a project should produce one or more deliverables, and those deliverables are evaluated to determine whether or not the next phase may be begun. The following illustration shows how deliverables are reviewed to determine whether the project should continue. This decision point is known as an exit gate (sometimes called a stage gate). An exit gate is the point at the end of a phase where the deliverables from that phase will be evaluated to determine whether or not the team completed the phase acceptably and the next phase may be started. This should be performed using exit criteria defined in advance so that the project team is aware of how each phase will be judged.

A kill point is very similar to a phase gate with one key addition: Kill points are points in the project’s life cycle where a team or individual external to the project makes the decision whether to continue the project or to stop (kill) it. Typically these are carried out at the same point as an exit gate and often using the same or similar criteria.

Inline-image Project - As you might guess, the definition of a project is very important for the exam. A project is a temporary (finite) endeavor undertaken to create a unique product, service, or result. You may encounter a question on the exam that describes a situation and asks you whether that situation represents a project. For something to be a project, it needs to have the following characteristics:

A project is time-limited (it has a definite beginning and end). This means that projects do not include operations, since operations may go on perpetually, and projects are finite.

A project is unique (it has not been attempted before by this organization).

Even though projects do not include operations, you should consider operations when you are planning for your project. This means that the project team should understand the needs of the group that takes over operations or maintenance once the project team has delivered its product.

For the sake of space, this book often refers to the project’s result as a product, but it could be any product, service, or result. The point is that projects ultimately create change, and that change can take on many forms. Projects are the means by which organizations get things done, whether or not the changes are visible or tangible.

Inline-image Program - A program is a group of related projects that are coordinated together. Unlike projects, programs may also include operations. Organizations often group projects into programs in order to realize some benefit that could not be achieved if those projects were not undertaken in concert.

For example, building a new airport might be viewed as a program, made up of numerous component projects, and this program would certainly take the ongoing operations into consideration in order to make things run smoothly and to keep ongoing costs under control.

Not every project will necessarily belong to a program, but all programs are made up of projects.

Inline-image Portfolio - A company’s project portfolio represents its entire investment in projects and programs. Project portfolios should always be directly aligned to the organization’s strategic goals. In fact, an organization’s portfolio might be considered the truest expression of its real strategic goals.

Projects contribute to the organization’s portfolio, and ideally, the benefit of project investments should be expressed in how they meet or support the organization’s strategic goals.

Inline-image Progressive Elaboration - The concept of progressive elaboration has always been important for the exam, but it just got a lot more important in the latest updates. The reason has to do with the deeper incorporation of agile methodologies.

The term progressive elaboration simply means that you do not know all of the characteristics of a product when you begin the project. Instead, they may be revisited and refined often. You may gather some requirements, perform some preliminary design, take the results to the stakeholders for feedback, and then return to gather more requirements. The project is accomplished through several iterations, or progressively.

Using progressive elaboration techniques, whenever you can, is highly favored on the exam.

Inline-image Project Management - There is nothing special or tricky about the definition of project management, but you will need to be able to recognize it on the exam. Project management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.

Inline-image Success - The definition of project success is delivering the product and the project within the set boundaries of scope, cost, schedule, quality, and customer satisfaction.

Inline-image Historical Information - Historical information is an important concept that runs throughout the exam, usually under the heading of Organizational Process Assets. Historical information is found in the records within your organization that have been kept on previous projects. These records can be used to help benchmark the current project. They may show previous estimates, what resources were used, and what lessons were learned. More than anything, historical information is used to help predict trends and avoid mistakes for the current project and to evaluate the project’s feasibility.

Because continuous improvement and learning matter so much, historical records are extremely important in project management, and they are used heavily during planning activities. They can provide useful metrics, be used to validate assumptions, and help prevent repeated mistakes.

The term historical information is as old as project management itself, but the term has recently given way to the more comprehensive organizational process assets, covered under common inputs a bit further on in this chapter. You may well see historical information pop up on the exam, but know that it now fits neatly under the broader heading of organizational process assets. That is because any historical information you have is actually an asset for the organization to use on future projects.

Inline-image Baseline - The term baseline is used for certain plans: scope, schedule, cost, performance management, and the project plan itself.

A baseline is simply a version of the plan that exists once the plan is stabilized. While the plan is in its early development, you would not have a baseline, but at some point it is put under control. This means that the plan cannot just be changed at will but that any changes need to be approved and documented through some kind of change control process. Baselining does not mean that the process has to be difficult or bureaucratic.

A plan’s baseline is simply the original plan plus all approved changes. Many people get tripped up on the concept that the baseline includes all approved changes. Baselines are used as tools to measure how performance deviates from the plan, so if changes to the plan are approved, the new plan becomes the baseline.

Suppose you were running a one-mile race. That distance of one mile would be your baseline.

Your plan was to run at a pace of just under eight minutes per mile. Now suppose that the race length was changed to a three-mile race. You ran the race and still finished in a very respectable 26 minutes. Would you want your progress measured against the original distance or the updated one? If you did not update your baseline to three miles, your pace of 26 minutes against the original distance of one mile would not be very impressive to most people. Your performance measurements would only be meaningful if you had an accurate baseline.

Remember that your project’s baseline is defined as the original plan plus all approved changes. Even though the baseline changes as the plan changes, it is a good idea to keep records that show how the plan has progressed and changed over time.

Inline-image Lessons Learned - The key word for you to remember when you think of lessons learned is variances. Lessons learned are gathered at the end of each phase or at the end of the project, and they focus on variances between the plan and the results. The goal is to detail any information that should be shared with future projects. Lessons learned from past projects are another organizational process asset, which is an input into many planning processes. It is important that lessons learned put a special emphasis on what was planned to happen, what actually happened, and what you would have done differently in order to avoid any variances. Lessons learned are collected throughout the project for continuous improvement efforts and for use on future projects.

In a lessons learned meeting, the team essentially asks what would we do differently if we had this project (or part of a project) to do again.

Inline-image Regulation - A regulation is an official document that provides guidelines that must be followed. Compliance with a regulation is mandatory (e.g., in the United States, wheelchair ramps are required for many streets and buildings). Regulations are issued by government agencies or another official organization.

You should expect never to see a question on the exam where the correct answer has you skirt, bend, or break a regulation.

Inline-image Standard - A standard is a document approved by a recognized body that provides guidelines. Compliance with a standard is not necessarily mandatory but may be helpful. For example, the size of copy paper is standardized, and it would probably be a very good idea for paper manufacturers to follow the standard, but there is not a law in most countries requiring that copy paper be made the standard size. The PMBOK® Guide provides a standard for project management.

For the exam, you should view standards as a good thing and as helpful. This means that the correct answers will reflect this perspective.

Inline-image System - There are several instances of systems in this book. A system incorporates all the formal procedures and tools put in place to manage something. The term system does not refer only to computer systems, but to procedures, checks and balances, processes, forms, software, etc. For instance, the project management information system (discussed in Chapter 4 – Project Integration Management) may include a combination of high-tech and low-tech tools such as computer systems, paper forms, policies and procedures, meetings, etc.

Foundational Terms and Concepts

Chapter Notes:

PROJECT ROLES:

Another area of study regarding the project context is that of the roles and responsibilities found on projects. You should be familiar with the following terms related to project roles:

Inline-image Project Manager -The project manager is the person ultimately responsible for the outcome of the project. The project manager is:

Formally empowered to use organizational resources

In control of the project

Authorized to spend the project’s budget

Authorized to make decisions for the project

Project managers are typically found in a matrix or project-oriented organization (more about types of organizations shortly). If they do exist in a functional organization, they will often be only part-time and will have significantly less authority than project managers in other types of organizations.

Because the project manager is in charge of the project, most of the project’s problems and responsibilities belong to him or her. It is typically a bad idea for the project manager to escalate a problem to someone else. The responsibility to manage the project rests with the project manager, and that includes fixing problems.

Inline-image Project Coordinator - In some organizations, project managers do not exist. Instead, these organizations use the role of a project coordinator. The project coordinator is significantly weaker than a project manager. This person may not be allowed to make budget decisions or overall project decisions, but they may have some authority to reassign resources. Project coordinators are usually found in weak matrix or functional organizations.

Inline-image Project Expeditor - The weakest of the three project management roles, an expeditor is a staff assistant who has little or no formal authority. This person reports to the executive who ultimately has responsibility for the project. The expeditor’s primary responsibility lies in making sure things arrive on time and that tasks are completed on time. An expeditor is usually found in a functional organization, and this role may be only part-time in many organizations.

Inline-image Senior Management - For the exam, you can think of senior management as anyone more senior than the project manager. Senior management’s role on the project is to help prioritize projects and make sure the project manager has the proper authority and access to resources. Senior management issues strategic plans and goals and makes sure that the company’s projects are aligned with them. Additionally, senior management may be called upon to resolve conflicts within the organization.

Inline-image Functional Manager - The functional manager is the departmental manager in most organizational structures, such as the manager of engineering, director of marketing, or information technology manager. The functional manager usually owns the resources that are loaned to the project, and has human resources responsibilities for them. Additionally, he or she may be asked to approve the overall project plan. Functional managers can be a rich source of expertise and information available to the project manager and can make a valuable contribution to the project. Be aware that functional managers are the most likely persons with whom project managers experience conflict on a project.

Inline-image Stakeholder - Stakeholders are individuals who are involved in the project or whose interests may be positively or negatively affected as a result of the execution or completion of the project. They may exert influence over the project and its results. This definition can be very broad, and it can include a vast number of people! Often when the term stakeholders appears on the exam, it may be referring to the key stakeholders who are identified as the most important or influential ones on the project.

Inline-image Sponsor - The sponsor is the person paying for the project. They may be internal or external to the company. In some organizations the sponsor is called the project champion. Also, the sponsor and the customer may be the same person, although the usual distinction is that the sponsor is internal to the performing organization and the customer is external.

The sponsor may provide valuable input on the project, such as due dates and other milestones, important product features, and constraints and assumptions. If a serious conflict arises between the project manager and the customer, the sponsor may be called in to help work with the customer and resolve the dispute.

Inline-image Project Office (also referred to as Project Management Office or PMO) - This term refers to a department that can support project managers with methodologies, tools, training, etc., or even ultimately control all of the organization’s projects. Usually the project office serves in a supporting role, defining standards, providing best practices, and auditing projects for conformance.

Inline-image Program Manager - As the title suggests, program managers are responsible for programs. Earlier in this chapter, we covered the fact that a program is multiple projects coordinated together, and the program manager organizes and manages these at a higher level than the project manager does. For instance, the project manager may be responsible for the daily management of a given project, while the program manager is responsible for coordinating several projects at once in order to create a common benefit. For the exam, you should think of it this way: you (the project manager) manage the details of a project and report status and other relevant information to the program manager.

Project Roles

Chapter Notes:

PROJECT CONTEXT

Another area of study for the PMP Exam is the concept of a project context, which is the organizational environment where the project is carried out. A large part of the project context is determined by the organization’s structure or type of organization.

Paying attention to the context is important since projects do not take place in a vacuum. Practically every activity that occurs and every resource that is used will touch the performing organization in some way.

For the exam, your general attitude should be that the project needs to respect and adapt to the performing organization whenever possible. That is true so long as the organization does not pressure you to cut corners, misrepresent the truth, or to sidestep any of the processes covered in this book. The best answers on the exam allow you to do things the right way and in the right order but in such a way that fits with the organization.

Inline-image Types of Organizations - The way in which an organization is structured will have an impact on the way its projects are managed.

The chart that follows summarizes essential information regarding the various types of organizations. You should be very familiar with this information before taking the exam, as you may see several questions that describe a project or situation and require you to identify what type of organization is involved.

Types of Organizations

Chapter Notes:

Inline-image Project Manager’s Power - Once you are comfortable in your understanding of types of organizations and the roles that various types of stakeholders play in a project, you can see that the organizational context in which a project is carried out will have a great deal of influence on that project. One way that the type of organization affects the project manager in particular is in how much power he or she has to carry out decisions, apply resources, and negotiate. The chart below illustrates the relationship between a project manager’s level of empowerment and the type of organization in which he or she works.

Inline-image Project Manager’s Management Skills - Project management includes many other disciplines. Since most projects are performed within an organization, there are other management skills that make up the foundation of project management. The way the project manager uses these skills will probably have a significant effect on the projects. The project manager should have experience in:

Leading - Setting direction, aligning people to that direction, motivating them, and inspiring them to commit and perform.

Communicating - Exchanging information clearly and correctly. Communication skills are important to everyone involved with the project, and they are critical to its success.

Negotiating - Working to reach a mutual agreement. Negotiations may happen with groups or individuals inside and outside the organization. The goal of negotiating is to create a win-win outcome that is sustainable for all parties.

Inline-image Problem-Solving - Defining the problem and dealing with the core factors that contribute to or cause it. Problem-solving is such an important and highly favored skill for project managers that if it appears as one of the choices on the exam, is quite likely the correct answer. At the very least you should give that answer very careful consideration.

Influencing - Accomplishing something without necessarily having formal power. Influencing the organization requires a keen understanding of the way the organization is structured, both formally and informally. Influencing is an important skill, especially in organizations where the project manager does not have a high degree of authority.

Project Governance - Oftentimes there is a group, either within the performing organization or outside of the organization, that looks at how the project work is being performed to ensure that it is being carried out the right way. This typically takes place throughout the entire project life cycle.

Project governance may be used to define processes used across the project and to rate the project manager’s performance.

In some organizations, this may be known as the Project Office or the Project Management Office (PMO). The project manager may formally report to the PMO, or it may exist solely to help and support project managers.

Inline-image Project Life Cycle - The project life cycle is simply the phases that a project typically goes through. These phases are general, but they show the expected flow of activities on a project.

The six phases represented in the following graphic describe the way in which a project typically progresses. It should be noted, however, that this depiction is very general, and different phases and phase names are used by different industries and projects.

The image also shows some other facts about the project life cycle that often appear on the exam in the form of questions. These questions typically focus on the fact that resource and cost levels rise early in the project and drop over time, or how risk and stakeholders’ ability to influence the project is highest early in the project and decreases as the project progresses.

Project Life Cycle

Chapter Notes:

Inline-image The Triple Constraint - Another fundamental topic in project management is commonly referred to as the triple constraint. It is based on the realization that while changes do occur during a project, they do not happen in a vacuum. When the scope of a project is changed, schedule and cost are also affected. Of course, the same is true when changes are made to cost or schedule. Those changes will have some impact on the other two areas.

As many different types of changes will be requested in most projects, it is essential in project management to be mindful of the triple constraint and to help keep others aware of it. The project manager should not simply accept all changes or change requests as valid; rather, the project manager should evaluate how those changes affect the other aspects of the project.

The triple constraint, or as some know it, the iron triangle, is simply the concept that scope, time, and cost are closely interrelated. Just as you cannot modify one side of a triangle without changing one or both of the other lengths, you cannot simply change one part of the triple constraint without affecting the other parts.

However common a practice it may be in some organizations to slash a budget without revisiting the scope or the schedule, the project manager should not simply accept these mandates. The triple constraint is in place whether or not the organization recognizes and accepts it.

Quality and risk are also factors that are linked to the triple constraint.

A good rule is this: whenever change is detected on the project, the project manager should carefully investigate and review the other areas of the project plan that may be affected and consider which components of the plan should be updated.

The Triple Constraint

Chapter Notes:

Inline-image Project Management Methodology - The topic of a project management methodology is important because it underscores something that is vital for you to understand as you prepare for the exam. The PMBOK® Guide does not describe a methodology. And, PMIstandards+™ describes 49 processes used to manage a project. These processes are used by an organization’s project management methodology, but they are not the methodology.

To illustrate the difference between the 49 project management processes and a project management methodology, consider the analogy of two baseball teams. The Atlanta Braves and the New York Mets both have the same set of rules when they play, but they likely have very different strategies of how they will capitalize on those strengths and use those rules to their advantages. In this analogy, the rules would equate to the processes, and the strategy to methodology.

Different organizations will employ different project management methodologies, while they will all adhere to the 49 processes. And just as a team’s strategy may be more nuanced and rich than the simple rules on which it is based, an organization’s methodology may be a very rich and detailed implementation of the project management processes.

Methodology

Chapter Notes:

Inline-image Work Authorization System (WAS) - This concept is very important, even though it is not a formal part of any process. The Work Authorization System (WAS) is part of the overall project management information system (PMIS). The WAS is used to ensure that work gets performed at the right time and in the right sequence. It may be an informal e-mail sent by the project manager to a functional manager or a formal system used to get an assigned resource released to complete scheduled work.

Project Context

Chapter Notes:

COMMON INPUTS, TOOLS, TECHNIQUES, AND OUTPUTS

Throughout this book, several inputs, tools and techniques, and outputs of the 49 project management processes are referenced repeatedly. Since there are 1444 inputs, tools and techniques, and outputs (including their sub-points), the decision was made to discuss the most frequently used of these in the following paragraphs rather than repeat explanations time and again throughout the book. This section should serve as a reference as you encounter them, and spending extra time here should help improve your overall understanding of the material.

In fact, this section is so important that you should read it now, and then come back to reread it after you have read chapters 4–13.

Inline-image Project Management Plan - The project management plan is likely the most important document discussed in this book. It may be thought of as the culmination of all the planning processes. It is crucial that you understand what it is, where it comes from, and how it is used.

For the purpose of the exam, the definition of the project management plan is a single approved document that guides execution, monitoring and control, and closure. The use of the word single in this definition is a bit unusual, since the project management plan is actually made up of several documents; however, once these component documents become approved as the project management plan, they become fused together as one document. Don’t assume that the project management plan is always overly formal or detailed. The project management plan should be appropriate for the project. That means that it may be documented at a summary level, or it may be very detailed.

Following is a list of the components that make up the project management plan. The project management plan is covered in more detail in Chapter 4 - Integration Management under Develop Project Management Plan. Additionally, each of these components is covered in later chapters of this book.

Scope management plan

Requirements management plan

Schedule management plan

Cost management plan

Quality management plan

Resource management plan

Communications management plan

Risk management plan

Procurement management plan

Stakeholder engagement plan

Change management plan

Configuration management plan

Development approach

Scope baseline

Schedule baseline

Cost baseline

Performance measurement baseline

Project life cycle description

Management reviews

Inline-image Organizational Process Assets - What information, tools, documents, or knowledge does your organization possess that could help you plan for your project? Some of these might be quite obvious, such as the project plan from a previous, similar project performed by your organization, while some may be more difficult to grasp at first, such as company policy. Consider, however, that both of these assets will help you as you plan. For instance, company policy adds structure and lets you know the limits your project can safely operate within, so you do not have to waste time or resources discovering these on your own. Organizational process assets are typically divided into the categories of processes, procedures, and corporate knowledge.

A few examples of organizational process assets are:

Templates for common project documents

Examples from a previous project plan

Organizational policies, procedures, and guidelines for any area (risk, financial, reporting, change control, etc.)

Software tools

Databases of project information

Estimating data for budget or schedule components

Historical information

Lessons learned

Knowledge bases

Special corporate competencies

For the exam, consider anything that your organization owns or has developed that can help you on a current or future project to be an organizational process asset. An important part of your job on the project is to contribute to these assets wherever possible on your project.

Inline-image Project Documents - Almost all projects regularly produce and update documentation. Even though project documents shows up throughout the PMBOK® Guide, it is not particularly important for the exam (remember – the exam tries to exploit your knowledge and understanding, and project documents is not an area where that is particularly easy to do in a fair way). For your preparation, review and understand this list, but do not try to memorize it.

Project documents includes any and all of the following:

Activity attributes

Activity list

Assumption log

Basis of estimates

Change log

Cost estimates

Cost forecasts

Duration estimates

Issue log

Lessons learned register

Milestone list

Project calendars

Project communications

Project schedule

Project schedule network diagram

Project scope statement

Project team assignments

Quality control measurements

Quality metrics

Quality report

Requirements documentation

Requirements traceability matrix

Physical resource assignments

Resource breakdown structure

Resource calendars

Resource requirements

Risk register

Risk report

Schedule data

Schedule forecasts

Stakeholder register

Team charter

Test and evaluation documents

Inline-image Enterprise Environmental Factors - This input can cover a lot of ground, and it appears as an input into many planning processes. In fact, it is used so frequently that you may be tempted to just skim right over it, but be careful! Enterprise environmental factors are important to your understanding of the exam material, and you should make sure you have a solid grasp of why they are used so commonly.

Consider the things that impact your project that are not part of the project itself. Just a few of these include:

Your company’s organizational structure

The corporate culture

Your organization’s values and work ethic

Laws and regulations where the work is being performed or where the product will be used

The characteristics of your project’s stakeholders (e.g., their expectations and willingness to accept risk)

The overall state of the marketplace for your project

Your organization’s infrastructure

The stakeholder or organization’s appetite for risk

In fact, enterprise environmental factors can be anything external to your project that affects your project. That is why it is so important to consider these factors when planning your project and to explore how they will influence your project.

Inline-image Project Charter - The charter is the project’s official birth certificate. It is an important document and one that you will use many times throughout its life cycle. The charter documents much of what is known at the time the project is initiated, particularly if that information informs the reasons why certain decisions are being made. For example, some requirements will certainly be known, and a summary budget or key milestone dates may already be specified.

The project charter is created once an organization has selected a project or a contract is signed to perform a project. Following are the key facts you need to remember about the project charter.

The Project Charter:

It is created during the Develop Project Charter process.

It is created based on some need, and it should explain that need.

It is usually written by the sponsor and/or customer, but the project manager who will be working on the project may assist in developing it in some cases.

It is signed by the performing organization’s sponsor or other senior management.

It names the project manager and gives him or her the authority to spend money and to allocate resources to accomplish project goals.

It should document risk as it is understood at this point.

It should include the high-level project requirements.

It often includes a high-level milestone view of the project schedule.

It is a high-level document that does not include project details; the specifics of project activities will be developed later.

It includes a summary-level preliminary project budget.

Inline-image Agreements - For purposes of the exam, you should equate agreements to contracts.

Think of agreements as miniature project plans that are binding. They specify what is important (similar to a project plan). In addition to these project plan-like components, agreements will also often include formal specifications for how the agreement may be amended or terminated, specific quality targets, how much things will cost, how and when payments will be made, as well as any insurance or bonding requirements.

For purposes of the exam, you want to follow agreements in all circumstances. You will never want to choose an answer that has you break an agreement even if it benefits the project.

Inline-image Work Performance Data - There is a general flow in this book that will help you. It starts with (raw) data, which is processed into information and eventually becomes reports.

Think of work performance data as raw data gathered as project work is completed. It may include data about the work itself or about how the work was performed such as the actual hours or costs it took to complete items, any problems that the team encountered, or key performance indicators (KPIs).

Work performance data is an output of the executing process, Direct and Manage Project Work, and it is a common input to 10 monitoring and controlling processes where it is refined into the more useful and understandable form of work performance information.

Common Inputs

Chapter Notes:

Inline-image Expert Judgment - If in doubt, ask someone who knows! The tool of expert judgment is used time and again throughout this material. The tool is exactly what it sounds like, and the reason it is so common is that it can be used whenever the project team and the project manager do not have sufficient expertise. For the exam, you do not need to worry about whether the experts come from inside the organization or outside, whether they are paid consultants or offer free advice. The most important things to remember are that this tool is highly favored and is very commonly used in planning processes.

Inline-image Data Analysis - There is a saying that nothing speaks louder than data. Data analysis is a tool used in monitoring and controlling processes to help you make sense of the work that has been carried out.

Data analysis is a versatile tool that is used in about two thirds of all processes. It is used in initiating, planning, executing, and monitoring and controlling processes.

Do not fall into the trap of making this tool unnecessarily complicated. Think of data analysis as simply carefully reviewing information in order to make a decision, and as you will discover in this book, taking regular time to review and analyze is a good mindset to carry into the exam.

Inline-image Meetings - Like it or not, meetings play an important part in the management of a project, and this tool appears frequently in the 49 processes. These meetings may be colocated or virtual in nature, and they are almost unrestricted in terms of what is discussed and who attends.

Meetings do not automatically solve things by themselves, but they do give the project manager and the team time to get input from stakeholders and experts on various aspects of the project.

Inline-image Interpersonal and Team Skills - The concept of interpersonal skills and team skills, commonly referred to as soft skills, has become increasingly more important in the field of project management. These skills include team leadership, communications and language, and persuasive ability.

Soft skills generally correlate to overall emotional intelligence (abbreviated as EI or EQ).

For the exam purposes, soft skills most generally refer to the project manager’s building productive relationships with team members and other stakeholders and persuading others to the benefit of the project.

Inline-image Data Gathering - When it comes to data gathering, keep two points in mind:

Data gathering is a preferred technique since it feeds into the contemplative, evaluative approach that is so favored on the exam. You cannot fully consider something that you do not fully understand, so getting more data is almost always a good choice.

Data gathering includes brainstorming, focus groups, interviews, and checklists, but do not worry about memorizing this list for the exam. Data gathering includes any technique used to get more information about something.

The technique of data gathering is used across initiating, planning, executing, and monitoring and controlling processes.

Inline-image Decision Making - It has been pointed out earlier in this chapter (and it will be stressed many times throughout this book) that you should favor a contemplative approach on the exam. This means that gathering data or thinking about a problem is a preferred option, but at some point after the experts have been consulted, the data have been gathered, and the meetings have concluded, it is time to make a decision and take action.

Inline-image Project Management Information System (PMIS) - The Project Management Information System (abbreviated PMIS) is an important tool to know for the exam. It is an automated system to support the project manager by optimizing the schedule and helping collect and distribute information. It is your system that helps you produce and keep track of the documents and deliverables. For example, a PMIS might help your organization produce the project charter by having you fill in a few fields on a computer screen. It might then create the project charter and set up project billing codes with accounting. While the PMIS usually consists primarily of software, it will often interface with manual systems.

Another important element of the PMIS is that it will contain the configuration management system, which also contains a change control system.

The point of a configuration management system is to manage different configurations of a product. Typically, a product will be baselined at a point, and different configurations, versions, products, or branches, are managed from that point.

For example, a software company may create a base package that must be implemented for each customer. The configuration management system is used to ensure that new base functionality does not break existing custom features and that changes are evaluated across all relevant versions of the product.

The PMIS can be considered to be an enterprise environmental factor, since it is part of the environment in which the project is performed.

Common Tools

Chapter Notes:

Inline-image Updates (All Categories) - Various updates as process outputs occur so often that it makes it very difficult for the test-taker to keep it all straight. For purposes of the exam, know that updates to plans come out of planning, executing, and monitoring and controlling processes. Most of these are common sense, and rather than take up valuable brain space looking at each individual one, the concept is addressed here and referenced throughout the book.

You may reasonably update most of the documents throughout the life of the project. This is not only acceptable; it is encouraged. The team’s understanding of nearly everything will grow and change as the project progresses. Documenting that evolving understanding is a good thing.

Inline-image Change Requests - As work is performed, it is common for changes to be requested. These changes can take on many forms. For instance, there may be change requests to increase the scope of the project or to cut it down in size. There may be change requests to deliver the product earlier or later, to increase or decrease the budget, or to alter the quality standards.

Change requests occur frequently for most projects as work is executed or monitored and controlled. Like the previous example, all requested changes are brought into