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APM Body of Knowledge

Seventh edition

Association for Project Management

Association for Project Management Ibis House, Regent Park Summerleys Road, Princes Risborough Buckinghamshire HP27 9LE

Seventh edition 2019. Revised with minor corrections 2020. Sixth edition 2012 Fifth edition 2006 Fourth edition 2000 Third edition 1996 Second edition 1994 First edition 1992

All rights reserved. No part of this public a tion may be repro duced, stored in a retrieval system, or trans mit ted, in any form or by any means, without the express permis sion in writing of the Association for Project Management. Within the UK excep tions are allowed in respect of any fair dealing for the purposes of research or private study, or criti cism or review, as permit ted under the Copyright, Designs and Patents Act, 1988, or in the case of repro graphic repro duc tion in accord ance with the terms of the licenses issued by the Copyright Licensing Agency. Enquiries concern ing repro duc tion outside these terms and in other coun tries should be sent to the Rights Department, Association for Project Management at the address above. All registered trade marks are hereby acknow ledged and the publisher makes no claim to these trade marks.

British Library Cataloguing in Publication Data is avail able.

Paperback: ISBN: 9781903494820

Typeset in 10/12pt Foundry Sans by RefineCatch Limited, Bungay, Suffolk Cover design by Fountainhead Creative Consultants

Contents

List of figures ix

Foreword xii

Acknowledgements xiii

List of contrib ut ors xiv

Introduction xv

Chapter 1 Setting up for success

Section 1.1 Implementing strategy

1.1.1 Organisational envir on ment 4

1.1.2 Strategic imple ment a tion 6

1.1.3 Organisational change 8

1.1.4 Benefits to the organ isa tion 10

1.1.5 Structural choices 12

Section 1.2 Life cycle options and choices

1.2.1 Life cycle philo sophy 16

1.2.2 Linear life cycles 18

1.2.3 Iterative life cycles 20

1.2.4 Hybrid life cycles 22

1.2.5 Extended life cycles 24

1.2.6 Product life cycles 26

Section 1.3 Establishing governance and over sight

1.3.1 Governance prin ciples 32

1.3.2 Assurance prin ciples 34

1.3.3 Sustainability 36

1.3.4 Strategic sourcing 38

1.3.5 Sponsorship 40

1.3.6 Investment decisions 42

1.3.7 Business case 44

Contents

1.3.8 Temporary struc tures 46

1.3.9 Talent manage ment 48

1.3.10 Governance boards 50

Chapter 2 Preparing for change

Section 2.1 Shaping the early life cycle

2.1.1 Project shaping 58

2.1.2 Programme shaping 60

2.1.3 Portfolio shaping 62

2.1.4 Procurement strategy 64

2.1.5 Operational adjust ments 66

Section 2.2 Assurance, learn ing and matur ity

2.2.1 The PMO 70

2.2.2 Decision gates 72

2.2.3 Information manage ment 74

2.2.4 Audits and assur ance 76

2.2.5 Knowledge manage ment 78

2.2.6 Communities of prac tice 80

2.2.7 Maturity of prac tice 82

Section 2.3 Transition into use

2.3.1 Business read i ness 88

2.3.2 Transition of project outputs 90

2.3.3 Adoption and bene fits real isa tion 92

2.3.4 Unplanned project endings 94

2.3.5 Administrative closure of projects 96

2.3.6 Closing programmes and port fo lios 98

Chapter 3 People and beha viours

Section 3.1 Engaging stake hold ers

3.1.1 Stakeholders 106

3.1.2 Social context 108

3.1.3 Engagement and influ ence 110

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Contents

3.1.4 Facilitation 112

3.1.5 Conflict resol u tion 114

Section 3.2 Leading teams

3.2.1 Teams 118

3.2.2 Virtual teams 120

3.2.3 Team devel op ment 122

3.2.4 Leadership 124

3.2.5 Organisational culture 126

3.2.6 Diversity and inclu sion 128

3.2.7 Workplace stress 130

Section 3.3 Working profes sion ally

3.3.1 Communication 136

3.3.2 Negotiation 138

3.3.3 Time manage ment 140

3.3.4 Regulatory envir on ment 142

3.3.5 Ethics and stand ards 144

3.3.6 Continuing profes sional devel op ment (CPD) 146

Chapter 4 Planning and managing deploy ment

Section 4.1 Defining outputs

4.1.1 Success and bene fits 154

4.1.2 Objectives and require ments 156

4.1.3 Options and solu tions 158

4.1.4 Scope defin i tion 160

4.1.5 Quality plan ning 162

Section 4.2 Integrated plan ning

4.2.1 Contract award 166

4.2.2 Risk iden ti fic a tion 168

4.2.3 Risk analysis 170

4.2.4 Estimation 172

4.2.5 Scheduling – crit ical path 174

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Contents

4.2.6 Scheduling – crit ical chain 176

4.2.7 Resource optim isa tion 178

4.2.8 Cost plan ning 180

4.2.9 Contingency plan ning 182

4.2.10 Deployment baseline 184

Section 4.3 Controlling deploy ment

4.3.1 Progress monitoring and report ing 190

4.3.2 Contract manage ment 192

4.3.3 Risk manage ment 194

4.3.4 Contingency manage ment 196

4.3.5 Issue manage ment 198

4.3.6 Change control 200

4.3.7 Configuration manage ment 202

4.3.8 Quality control 204

Glossary 209

Index 219

List of figures

1.1.1 Sources of uncer tainty 5

1.1.2 Hierarchy of stra tegic intent 7

1.1.3 Outcomes of change efforts 9

1.1.4 Change of emphasis 11

1.1.5 Projects, programmes and port fo lios 13

1.2.1 Selecting a life cycle 17

1.2.2 Linear project life cycle 19

1.2.3 Iterative devel op ment in a dynamic, agile context 21

1.2.4 Hybrid programme life cycle 23

1.2.5 Extended life cycle 25

1.2.6 Product life cycle 27

1.3.1 Interaction of different levels of governance 33

1.3.2 The three lines of defence model for assur ance 35

1.3.3 Sustainability as balan cing differ ent concerns 37

1.3.4 Supplierbased segmentation using a matrix 39

1.3.5 The scope of project spon sor ship 41

1.3.6 Comparing options to invest capital 43

1.3.7 Five dimen sions included in a busi ness case 45

1.3.8 Relationship between the perman ent and tempor ary organ isa tions 47

1.3.9 Steps to build ing and retain ing project managementtalent 49

1.3.10 Generic project governance struc ture 51

2.1.1 Trading the triple constraints of time, cost and quality 59

2.1.2 Increasing organ isa tional capab il ity through programme manage ment 61

2.1.3 Portfolio manage ment key processes 63

2.1.4 What sort of contract ing strategy 65

2.1.5 Temporary oper a tional adjust ments during projectbased working 67

2.2.1 Different forms of PMO 71

2.2.2 Typical decision gates and other reviews in a linear, product life cycle 73

2.2.3 Scope of inform a tion manage ment 75

2.2.4 Adopting a riskbased approach to plan ning assur ance 77

2.2.5 Nature of work and the working environment 79

2.2.6 Single community of prac tice showing poten tial bene fits/func tions 81

2.2.7 Five stages of matur ity 83

List of figures

2.3.1 Enabling progress ive commit ment over time 89

2.3.2 Activities involved in project transition 91

2.3.3 The bene fits real isa tion cycle 93

2.3.4 Closing projects when they are no longer justi fied is good practice 95

2.3.5 Key elements of project closure 97

2.3.6 Programme closure activ it ies 99

3.1.1 An approach to captur ing analysis of stake hold ers 107

3.1.2 An example social network diagram 109

3.1.3 Matching engagement approach to stakeholder need 111

3.1.4 An approach to contract ing with parti cipants of facil it ated sessions 113

3.1.5 A common model to consider approaches to dealing with conflict 115

3.2.1 All projects need at least these roles 119

3.2.2 Steps in devel op ment of virtual lead er ship 121

3.2.3 From groups of indi vidu als to a team 123

3.2.4 Leadership focus on goals, team and stakeholders 125

3.2.5 The visible and hidden aspects of organ isa tional culture 127

3.2.6 Diversity leads to higher perform ance 129

3.2.7 The balance between perform ance and level of arousal 131

3.3.1 Considering the medium and the message 137

3.3.2 The concept of a best altern at ive to a nego ti ated agree ment (BATNA) 139

3.3.3 Prioritising import ant and urgent tasks 141

3.3.4 A hier archy of legal and regu lat ory influ ences 143

3.3.5 The scope of ethics 145

3.3.6 A typical continual professional development (CPD) cycle 147

4.1.1 Benefit mapping process 155

4.1.2 An example ‘V’ depic tion of a project life cycle 157

4.1.3 Comparing multiple options using a spider plot 159

4.1.4 Relationship between break down struc tures 161

4.1.5 Quality plan ning in the context of wider quality manage ment 163

4.2.1 Essential steps in contract award 167

4.2.2 Describing risks using a defined structure 169

4.2.3 Example prob ab il ity/impact grid to qual it at ively prior it ise risk events 171

4.2.4 Multiple estimation as a source for confidence 173

4.2.5 Precedent relationships in critical path analysis 175

4.2.6 Comparing schedul ing approaches 177

4.2.7 Resource level ling and smooth ing options 179

4.2.8 Fixed and vari able cost for linear and iter at ive life cycle approaches 181

4.2.9 Provision for known and unknown risk 183

List of figures

4.2.10 The project manage ment plan as the baseline for managed deploy ment 185

4.3.1 Insights avail able through earned value analysis 191

4.3.2 Controls that support contract manage ment 193

4.3.3 Generic response strategies for threats and oppor tun it ies 195

4.3.4 Process flow for contin gency draw down 197

4.3.5 Key aspects of issue resol u tion 199

4.3.6 A change control process 201

4.3.7 Essential activ it ies to verify the config ur a tion of an output 203

4.3.8 Proactive management of projects delivers quality and value 205

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Foreword

The Association for Project Management (APM) was awarded its Royal Charter in 2017 and has quickly established itself as the chartered body for project professionals in the UK and overseas. In support of chartered, the APM Body of Knowledge has taken on greater significance, providing an authoritative statement on project management and the foundation on which the profession is built. The APM Body of Knowledge represents our core beliefs – an ethos – upon which we believe projects can not only be delivered successfully, but also to the benefit of society, the economy and the environment. The seventh edition is the foundation for the successful delivery of projects, programmes and portfolios across all sectors and industries. It forms the basis for qualification syllabuses and a common language which strengthens the concept of a progressive career path for project professionals. As a taxonomy, it acts as a common framework for debate allowing our profession to develop as the demands on us change and grow. For some, the APM Body of Knowledge is a starting point providing knowledge and understanding of key concepts, for more experienced professionals it serves as a valuable reference and a method to share the language of project management more widely among teams and key stakeholders. The APM Body of Knowledge will play a key role as we evolve as a chartered profession. It reflects emerging and established ideas – a common bond across all project types. From governance and organisational cultures to the realisation of benefits and concepts of control and agility, the book weaves a thoughtful narrative that brings together all these elements. The launch of the seventh edition provides an opportunity to take stock and reaffirm our position both in the profession and consider our role in society. We ask you not only to engage with it, but to challenge it, expand on it, bring your experience, knowledge and ideas as we support the profession in realising our longterm vision of ‘a world in which all projects succeed, and project management is a life skill for all’.

John McGlynn APM Chair

xiii

Acknowledgements

The APM Body of Knowledge 7th edition has been shaped by a large number of people through 2018. The editor and writing team are extremely grate ful to the hundreds of people who parti cip ated in the online consulta tions for all their help in shaping ideas and chal len ging early versions of the struc ture and content. Of the many volun teers who gave their time and advice, we are grate ful to those members of specific interest groups (SIGs), who reviewed and chal lenged the struc ture and story boards at SIG clinics in September. We extend partic u lar thanks to Steve Barron, Roy Millard, Judy Payne, Penny Pullan and Amerjit Walia who helped to craft some addi tional topics follow ing the SIG clinics, and to Sarah Coleman, who provided advice on Chapter 3, ‘People and Behaviours’. Finally, we thank the various review ers of the final text for this book. In a project like this, it is impossible to satisfy all the people, all the time. We have listened to what you have to say and endeav oured to repres ent the major ity view in this latest version of our profes sion’s found a tional know ledge resource.

xiv

Contributors

Dr Ruth Murray-Webster (editor) Ruth is a risk and change practitioner and advisor, currently a partner with Beyond the Deal LLP, director of Potentiality UK and a Teaching Fellow at Warwick Business School. Her previous roles have included director, change portfolio and group head of risk for Associated British Ports and director of KPMG LLP’s Risk in the Boardroom practice. Ruth was awarded Honorary Fellowship of the Association for Project Management in 2013.

Professor Darren Dalcher (editor) Darren holds a Chair in Strategic Project Management at Lancaster University Management School. He is the founder and director of the National Centre for Project Management (NCPM). He has designed and developed the UK’s first professional doctorate in project management, alongside a suite of executive and professional masters programmes and diplomas. He is an Honorary Fellow of the Association for Project Management and a Chartered Fellow of the British Computer Society.

Writing team

Philip Bradbury is a project manager and engineer. He established a PMO for TfL’s Estates Management function and was a key lead in designing and implementing its organisation wide project and programme methodology.

Tayyab Jamil is a partner at Firewood. He helped develop the International Project Management Association (IPMA) Agile Leadership competence framework and certification. He is a guest lecturer at Birkbeck, University of London.

Charles Mills is an experienced project manager with 40 years’ experience working in the petrochemical and power generation and, more recently, rail sectors. He is currently programme director at CPC Project Services.

Dale Shermon is a ACostE Fellow, Chartered Engineer and chair at the Society for Cost Analysis and Forecasting. Dale has over 30 years’ experience in cost estimating and risk analysis in both industry and government.

Introduction

A body of know ledge is a set of concepts, terms and activ it ies that make up a profes sional domain. The Association for Project Management Body of Knowledge has expan ded over time to reflect the role of projectbased working in achiev ing object ives for change at stra tegic and oper a tional levels, involving the devel op ment of new or amended products, processes or other capab il it ies and across private, public and third sectors. In this seventh edition, we use the term ‘projectbased working’ (or the ‘manage ment of projects’) to refer collect ively to projects, programmes and port fo lios, and we deal with aspects of projects, programmes and port fo lios across the text, although acknow ledging that not all aspects of projectbased working apply to projects, programmes and port fo lios equally. We have used the term project profes sional to refer to anyone working in a defined role within a project, programme or port fo lio. A central tenet of projectbased work is the need to balance multiple compet ing object ives and chal lenges within a defined set of time, cost and quality constraints in order to achieve bene fi cial change. This makes the concept of the triple constraint or ‘iron triangle’ as relev ant today as when it was first intro duced. However, contem por ary manage ment by projects is a more developed field than ever before and this gives the organ isa tional leader a wider range of options about how to organ ise and govern a partic u lar change initi at ive. In this version of the APM Body of Knowledge, we expli citly acknow ledge the ability to choose between multiple forms of life cycle – from one designed to guide the manage ment of delib er ate change in a linear fashion to one designed to guide the shaping of emer gent change in an incre mental, iter at ive or evol u tion ary way. Avoiding any simpli fic a tion of this matter by refer ring to ‘water fall vs agile’, we outline the choices that leaders can make and acknow ledge the reality that many projectbased endeav ours now adopt some sort of hybrid linear/iter at ive life cycle approach. The APM Body of Knowledge is written for anyone inter ested in under stand ing more about achiev ing bene fi cial change through projectbased working, however the struc ture of this APM Body of Knowledge is designed so that each chapter is written with a primary audi ence in mind.

Chapter 1 Setting Up for Success: Is written primar ily for those leaders within organ isa tions who have decisions to make about the role of projects, programmes and port fo lios in imple ment ing strategy. Leaders may be in the ‘client’ or invest ing organ isa tion, or in a supplier organ isa tion that exists to deliver projectbased work for clients. The ideas in this chapter apply in both scen arios.

Chapter 2 Preparing for Change: Is written primar ily for those people charged with leading any project, programme or port fo lio, of any size and complex ity. It addresses early life cycle shaping and late life cycle trans ition into use for projects, programmes and port fo lios, as well as matters of assur ance, learn ing and matur ity.

Chapter 3 People and Behaviours: Is written for anyone involved in projects, programmes and port fo lios. Influencing and enga ging stake hold ers, forming, build ing and leading teams, and the generic skills and respons ib il it ies of being a project profes sional are addressed with the object ive of making it clear that all projectbased work relies funda ment ally on the ability of people to work together.

xvi

Introduction

Chapter 4 Planning and Managing Deployment: Is written primar ily for those involved in the endtoend process of deliv er ing a project, whether a stan dalone project or one that is part of a programme and/or port fo lio, and regard less of the life cycle approach taken. Although the profes sional domain has expan ded, the detailed matters asso ci ated with defin ing outputs, integ rated plan ning and controlling deploy ment remain.

It is tempt ing and desir able in a body of know ledge to be defin it ive about termin o logy used, and, indeed, the Glossary is provided for this purpose. However, projectbased working, as exper i enced by prac ti tion ers, is increas ingly performed in a context that is volat ile, uncer tain, complex and ambigu ous. As a result, we feel strongly that it does not serve the profes sion to over sim plify import ant aspects of projectbased working and, in some cases, we use terms inter change ably, for example:

� Businessasusual – Operations – Steady state

� Client – Owner – Investing organ isa tion

� Outputs – Deliverables – Products

Unlike other bodies of know ledge or guides to the manage ment of projects, APM chooses not to describe ‘howto’ in terms of methods, tools and tech niques in the APM Body of Knowledge, but rather uses it as a found a tional know ledge resource, and a pointer to other sources of inform a tion. Within each of the four chapters, we have three distinct sections and each section contains discrete topics (80 in all). Within each topic, there is a set of care fully curated recom men ded reading that profes sion als can use to expand their know ledge and prac tice. Guides written by APM Specific Interest Groups (SIGs) are included in these recommended reading sections along side other sugges ted books and papers. The APM Body of Knowledge 7th edition is the first version of these editions to be published since the award of chartered status. As a found a tional resource, written by the profes sion for the profes sion, we hope you find the content inform at ive and useful in guiding your endeav ours to deliver bene fi cial change through the manage ment of projects, programmes and port fo lios.

1 Setting up for success

This chapter is written primar ily for those leaders within organ isa tions who have decisions to make about the role of projects, programmes and port fo lios in imple ment ing strategy. We assume that in most situ ations, there is a choice to be made about how best to struc ture project based work in order to achieve unique and specific object ives for change. The main focus of the chapter is on the avail able options and the stra tegic decisions required to under pin and enable bene fi cial organ isa tional change. Beneficial change results from the stra tegic intent, ambi tions and needs of an organ isa tion. Organisations operate in increas ingly uncer tain contexts. They identify stra tegic prior it ies and set out to bring about mean ing ful and bene fi cial change that is described and real ised through a set of bene fits that justify the invest ment. The purpose of the invest ment there fore is to deliver valu able returns. The invest ing organ isa tion can use stra tegic port fo lios and programmes, incor por at ing change activ it ies with businessasusual, and a variety of project mech an isms to struc ture and pace the invest ment. The required speed of deploy ment, exist ing know ledge about the nature of the work that needs to be accom plished and the nature of the poten tial solu tion, all play a part in determ in ing the most suit able approach to create and embed the new capab il it ies, systems and struc tures. The choice of approach determ ines the life cycle that will be used to realise and deploy the change. Recognising the stra tegic nature of change is import ant in foster ing a longerterm approach that is cognis ant of the need to adopt the proposed change and realise the inten ded bene fits. An exten ded perspect ive as promoted through out this work is also crit ical to dischar ging the respons ib il ity to consider decom mis sion ing and disposal along side the wholelife costs of assets, and the longterm envir on mental and social implic a tions of our actions. Choices and pref er ences need to be scru tin ised and examined. Governance and over sight mech an isms are estab lished to deal with proced ural and cultural aspects that need to be in place to improve the effect ive ness of the imple ment a tion of proposed change initi at ives and to under pin the real isa tion of the stra tegic invest ments. Projects, programmes and port fo lios need to be compat ible with the over arch ing strategy of the organ isa tion and with the dayto day oper a tion charged with realising the bene fits. A struc tured approach to change manage ment ensures that bene fi cial changes are embed ded within the organ isa tion’s oper a tional approach and closely aligned in order to ensure its longterm success ful and impact ful real isa tion. The chapter is composed of three parts:

1.1 Implementing strategy

1.2 Life cycle options and choices

1.3 Establishing governance and over sight

Chapter 1 Setting up for success

1.1 Implementing strategy

Organisations operate in a dynamic context, full of uncer tainty, novelty and turbu lence. Projects, programmes and port fo lios are intro duced in order to enhance perform ance, bring about change and enable organ isa tions to adapt, improve and grow. Projectwork there fore repres ents inten tional invest ment in devel op ment, enhance ment and improve ment. The need for invest ment emerges from the aspir a tional plans and an over arch ing purpose that tran spire from the stra tegic intent of an organ isa tion. Projectwork encom passes stra tegic invest ments that enable assets, struc tures, systems, activ it ies and capab il it ies to be formed, main tained or enhanced so that the organ isa tional plans and ambi tions can be real ised. In the public sector, this strategic intent may be discussed in terms of policy and policy implementation. Organisational change is intro duced through projects, programmes and port fo lios in order to deliver busi ness value. The busi ness value is accrued through the real isa tion of bene fits that result from projectwork. Benefits are part of ensur ing that invest ments are made to deliver value to the organ isa tion. This normally applies even when the project is being done by a supplier or contracting organ isa tion, or if the work is needed to main tain current capab il ity or in order to conform to new regu la tions or direct ives so that smooth busi ness oper a tions can be allowed to proceed. The success ful deployment of change, the support of new beha viours and the util isa tion of new capab il ity, result ing in the real isa tion of bene fits, involves enga ging with, promot ing and working with diverse communit ies and groups. To ensure that value is created and sustained, organ isa tions need to consider and address the full invest ment life cycle ensur ing that fore casted benefits materialise. Delivering strategy is enabled through the use of projects, programmes and port fo lios. Portfolios struc ture invest ments in line with stra tegic object ives, whilst balan cing, align ing and scru tin ising capa city and resources. Programmes combine businessasusual with projects and steady state activ ity dictated by stra tegic prior it ies. Projects are tran si ent endeav ours that bring about change and achieve planned object ives. Together, they combine to deliver the bene fi cial change required to imple ment, enable and satisfy the stra tegic intent of the organ isa tion. This section will be of partic u lar interest to senior leaders and managers in organ isa tions and to project profes sion als as it addresses:

1.1.1 Organisational envir on ment: Organisations in context

1.1.2 Strategic imple ment a tion: Making strategy happen

1.1.3 Organisational change: Enabling bene fi cial change

1.1.4 Benefits to the organ isa tion: Putting it all together

1.1.5 Structural choices: Projects, programmes and port fo lios

APM Body of Knowledge 7th edition

1.1.1 Organisational envir on ment

Organisations in context

In many contexts, projectwork engages with novelty and uncer tainty extend ing into an unknown future. Projects and programmes there fore entail manage ment under uncer tain condi tions. Yet, it is widely recog nised that tradi tional busi ness models, focused on effi ciency, topdown control and desired predict ab il ity, only address a small propor tion of a rather complex, uncer tain and inter con nec ted land scape. Uncertainty arises from many sources (Figure 1.1.1). Leaders increas ingly face new chal lenges, includ ing the emer gence of new markets, inter con nec ted global compet i tion, new sources of innov a tion, rising customer expect a tions, disrupt ive tech no lo gies, the gig economy and the growing diver si fic a tion of the work force. Stable and predict able contexts are hard to find and the models and approaches used for managing need to be updated to reflect a world char ac ter ised by uncer tainty, turbu lence, novelty, ambi gu ity and complex ity. Moreover, the combin a tion of economic unknowns with polit ical, social and envir on mental concerns regard ing the proposed actions and their longerterm implic a tions requires new ways of enga ging with uncer tainty. The US milit ary coined the term VUCA to reflect the ‘volat il ity, uncer tainty, complex ity and ambi gu ity’ of general condi tions and situ ations asso ci ated with a multi lat eral world follow ing the end of the Cold War. The term has been widely adopted to repres ent increas ingly vulner able and unpre dict able contexts. The key implic a tion of VUCA condi tions is that there is an inher ent uncer tainty that makes it diffi cult to predict and plan with great accur acy. The rigid ity that comes from expect ing full and perfect know ledge is unsus tain able and unat tain able in turbu lent contexts. Uncertainty defies anti cip a tion and detailed plan ning. Enforcing detailed plan ning and fixedprice contract ing on an uncer tain future can be coun ter pro duct ive and businessdamaging. Change is natural and ongoing as managers learn more about the context they are oper at ing in, enabling them to identify emer ging oppor tun it ies, respond to new condi tions and address short falls and differ ences in outcomes. Embracing and managing uncer tainty lie at the heart of good project manage ment and insist ence on certainty may unwit tingly result in mismatches between plans, models and reality, trans lat ing into poor project perform ance. Addressing uncer tainty entails devel op ing organ isa tional capab il it ies for dealing with change and foster ing read i ness to exploit new oppor tun it ies, respond and adapt. This is frequently trans lated into stra tegic flex ib il ity, corpor ate resi li ence or organ isa tional agility. Flexible plans, iter a tions (see 1.2.3), and proto typ ing offer vehicles for the exper i ment a tion and adapt a tion needed to inform, adjust and exploit uncer tain contexts. These can comple ment open collab or a tion approaches and enhanced abil it ies to innov ate and move rapidly and flex ibly in order to shape oppor tun it ies, change stra tegic direc tions and build on adversity in uncer tain settings. Organisations that invest in flex ible plan ning, options eval u ation and scen ario plan ning are already better prepared to respond to emer gent condi tions and such prepar a tion needs to be reflec ted in projectwork.

Chapter 1 Setting up for success

Recommended reading

� Managing the Unknown: A New Approach to Managing High Uncertainty and Risk in Projects (2006) offers a way of looking at managing projects in novel and unknown envir on ments. The authors propose a combin a tion of trialanderror learn ing, with multiple inde pend ent trials to identify the best options in novel projects.

� Managing Project Uncertainty (2016) focuses on the impacts of novelty in the uncer tain world that projects inhabit, provid ing ways of identi fy ing the symp toms of uncer tainty and devel op ing strategies to deal with it. The book offers senior managers ways to improve project and programme strategy by expos ing new ideas and concepts that can be harnessed to tackle uncer tainty in its many guises.

� Managing in a VUCA World (2015) is an edited collec tion focused on defin ing VUCA and uncov er ing the wider impacts on manage ment. It makes the case for broader know ledge and the applic a tion of new concepts and frame works to deal with unpre dict able and rapidly chan ging situ ations.

Figure 1.1.1 Sources of uncer tainty

APM Body of Knowledge 7th edition

1.1.2 Strategic imple ment a tion

Making strategy happen

‘Strategic intent’ is a term used to describe the aspir a tional plans, over arch ing purpose or the inten ded direc tion of travel needed to reach an organ isa tional vision (Figure 1.2.2). Strategic intent provides the basis for the scru tiny of the continu ous align ment of the port fo lio of project work against organ isa tional ambi tion. While the stra tegic intent describes the align ment between ambi tion and resources, it can become a constraint on growth. Recognising the inher ent uncer tainty, as well as the emer ging oppor tun it ies and threats, is useful to develop a more dynamic basis for balan cing evolving ambi tion with emer ging reality. Strategy imple ment a tion, often recog nised as the hardest part of the strategy process, is delivered through the execu tion of stra tegic projects and programmes and the realisation of their targeted bene fits. From an exec ut ive perspect ive, projectwork is an essen tial part of making stra tegic invest ment work. The key focus is on the creation of value through projects that will enable mean ing ful execu tion of both delib er ate and emer gent strategies. This implies extend ing the scope of interest around projects and programmes to incor por ate the real isa tion of bene fits that will justify the invest ment and fulfil the criteria outlined in the busi ness case (see 1.3.7). Life cycles play an import ant role in ensur ing that the inten ded bene fits and value are delivered. Investment in change is one effect ive way of imple ment ing strategy. Projects, programmes and port fo lios tend to flow out of stra tegic decisions made by the organ isa tion and can there fore be viewed as stra tegic invest ments that enable other activ it ies and capab il it ies to be developed. This implies that projectwork is concerned with the ability to enact the organ isa tional strategy by enabling bene fits to be real ised so that the inten ded value can be accrued. Senior leaders within the organ isa tion are able to demon strate how each project or programme that they fund contrib utes to the overall strategy. Where projects or programmes cannot be justi fied or aligned with the organ isa tional strategy, their contin ued oper a tion and purpose can be ques tioned. It is worth noting that supplier organ isa tions managing projects for their clients on a commer cial basis may have a differ ent stra tegic justi fic a tion for conduct ing commer cial work. Projectwork may also be needed as an enabler to main tain exist ing capab il it ies or assets, ensure compli ance with newly intro duced legis la tion or satisfy other profes sional require ments or busi ness imper at ives. Corporate leaders are account able for demon strat ing profi t ab il ity and return on invest ment (ROI), and there fore view projectwork as a crit ical part of deliv er ing that invest ment and contrib ut ing to the overall benefit of the organ isa tion. Portfolios play an import ant part in main tain ing the align ment between projectwork and stra tegic object ives and in enabling the real isa tion of the bene fits that under pin the success ful capture of the inten ded value and secur ing the return on invest ment.

Chapter 1 Setting up for success

Recommended reading

� Strategic intent (2005) revis its and updates the original concept of stra tegic intent estab lished by the same team of authors 16 years previ ously. In this contri bu tion, the authors compare Western compan ies to Japanese corpor a tions encour aging a rethink ing of strategy and a repos i tion ing of stra tegic intent.

� Introduction to Managing Change (2017), developed by the APM Enabling Change Specific Interest Group, intro duces the import ance of managing change and spon sor ing such efforts. It makes the case for align ing change projects to the organ isa tional busi ness strategy, and support ing the strategy by artic u lat ing welldefined bene fits.

� The Evolution of Project Management Practice: From Programmes and Contracts to Benefits and Change (2018) is an edited volume that makes the case for shift ing the focus from the staged deliv ery of arte facts towards consid er a tion of stake hold ers, bene fits, value and complex ity. The authors offer new perspect ives on plan ning, busi ness cases, bene fits, collab or a tion, spon sor ship, strategy execu tion and overall perform ance.

Figure 1.1.2 Hierarchy of stra tegic intent

APM Body of Knowledge 7th edition

1.1.3 Organisational change

Enabling bene fi cial change

Change is an estab lished part of life, espe cially in modern organ isa tional contexts, and is often needed to ensure contin ued survival or busi ness relev ance. Avoiding stag na tion and main tain ing the relev ance of strategies, approaches and capab il it ies often requires processes of renewal and update. Combining change manage ment with the manage ment of projectwork offers the best poten tial for deliv er ing new results and capab il it ies, success fully embed ding the change and enabling the required bene fits. Change manage ment is the over arch ing approach taken in an organ isa tion to move from the current to a future desir able state, using a coordin ated and struc tured approach in collab or a tion with stake hold ers. The change manage ment process links strategy with execu tion, and deployment with oper a tion and the ulti mate real isa tion of the expec ted bene fits. Organisational change is typic ally intro duced and imple men ted into corpor ate settings through projectwork, however that is only the begin ning of the process of embed ding change and making it the new normal state for the organ isa tion. Strategic intent (see 1.1.2) drives organ isa tions to main tain compet it ive advant age or seek a new one (i.e. change). The stra tegic intent leads to the devel op ment of specific change initi at ives within a port fo lio struc ture. Specific initi at ives, aligned to the stra tegic intent, are selec ted on the basis of avail able capab il it ies and resources that can be deployed. Projects and programmes are designed and imple men ted in order to deploy new assets, func tions, capab il it ies, processes, struc tures and systems. However, these are devised to facil it ate or enable some change: change manage ment activ it ies are integ rated with project working. Only once the deliv er ables are adopted and used as inten ded, can the bene fits be real ised. Organisational change encom passes the new beha viours that are enabled through projectwork, and change manage ment is the facil it at ing discip line that makes it possible to embed change, achieve buyin, bring people along and thereby derive and accrue the new bene fits that result from such actions in order to satisfy a busi ness case. Given that success ful change manage ment requires changes to beha viours, there is a signi fic ant focus on people, culture and beha viours needed to prepare the organ isa tion, demon strate the change, encour age buyin and embed new beha vi oural norms and expect a tions around the altered condi tions. Organisations respond to change in many differ ent ways. Organisational change manage ment begins and ends with the indi vidu als involved, requir ing an under stand ing of resist ance, organ isa tional defence routines, pervad ing cultures and the engage ment processes required to bring people along. One of the biggest barri ers to change is know ledge bound ar ies of various types – includ ing conflicts of interest that (for example) wipe out users’ motiv a tion to absorb know ledge about project outputs. A good way of embed ding change and achiev ing buyin from concerned stake hold ers is by explor ing the proposed impacts through a series of proto types, allow ing stake hold ers to shape and influ ence the change situ ation through a series of mean ing ful iter a tions.

Chapter 1 Setting up for success

Recommended reading

� Introduction to Managing Change (2017) developed by the APM Enabling Change Specific Interest Group, offers a dedic ated resource focused on the manage ment of change. The book provides a rationale for change manage ment, a list of key factors for success ful change, a further distil la tion of key factors in select ing a change approach as well as a summary of many of the key approaches to change manage ment.

� Exploring Strategic Change (2016) engages with the process of deliv er ing stra tegic and organ isa tional change, offer ing detailed guidelines, specific strategies, theor et ical insights and prac tical solu tions.

� Managing Projects in a World of People, Strategy and Change (2019) proposes a rethink ing of some of the methods util ised in initi at ing, managing and govern ing projects, programmes and change initi at ives. The book posi tions change as an oppor tun ity to reflect and offers new perspect ives on ethics, stra tegic initi at ives, governance and change as well as new ideas focused on anti fra gil ity, commer cial manage ment and ethics.

Figure 1.1.3 Outcomes of change efforts

Source: Introduction to Managing Change (2017)

APM Body of Knowledge 7th edition

1.1.4 Benefits to the organ isa tion

Putting it all together

Delivering bene fits is the primary reason why organ isa tions under take change. Given limited resources, there is a need to develop an improved under stand ing of poten tial invest ments and the reasons for under tak ing them. Making change work for the organ isa tion entails identi fy ing a viable set of poten tial bene fits and deliv er ing value by real ising the prom ised bene fits. A benefit is a posit ive and meas ur able impact of change. However, in some cases, there may be unavoid able meas ur able declines or negat ive impacts of change that are accept able in the context of greater bene fits. These are called ‘disbe ne fits’ and are treated in the same way as bene fits. The inten ded bene fits are driven by the stra tegic intent. In a supplier organisation, bene fits are likely to be derived from the revenue, profit, oppor tun it ies, rela tion ships, gained expert ise or market posi tion related to under tak ing the work. Benefits can be tangible (e.g. money saved, jobs created) or intan gible (e.g. corpor ate repu ta tion, capa city for change). They may, or may not, also be quan ti fi able in cash terms (e.g. reduced costs or greater customer satis fac tion). Benefitsdriven change requires proact ive manage ment through out the entire life cycle. An organ isa tion iden ti fies the bene fits it needs and initi ates changes that are fore cast to deliver bene fits. Projects and programmes are imple men ted in order to enable new outputs, capabil ities and outcomes to be util ised so that the bene fits described in the busi ness case can be fully real ised. During the change, the organ isa tion needs to monitor perform ance indic at ors that can reli ably predict bene fits realisation. Benefits demon strate the value created by invest ments. To ensure that value is created and sustained from organ isa tional change initi at ives, bene fits have to be managed through out the entire invest ment life cycle. In order to maxim ise the value from partic u lar invest ments and avoid value erosion, it is essen tial to ask if the proposed invest ments will realise the prom ised bene fits at an accept able cost over the full economic life cycle of the invest ment (see 1.2.6). The fore cast bene fits of a programme or project are the basis of its busi ness case. It is there fore import ant to engender a shift from a culture of deliv ery towards an ethos of value. It is only when the output, capab il ity or outcome is used as a result of a compre hens ive change programme that bene fits are real ised, result ing in delivered value. Benefitsdriven projects and programmes support the invest ment cycle, with port fo lios and governance struc tures util ised to monitor the results and ques tion the continu ing align ment with strategy and the real isa tion of expec ted and emer ging bene fits. The sponsor owns the busi ness case and is ulti mately account able for the real isa tion of the bene fits. Governance boards and spon sors have a crucial role in emphas ising and accen tu at ing the import ance of secur ing and sustain ing bene fits.

Chapter 1 Setting up for success

Figure 1.1.4 Change of emphasis

Recommended reading

� Guide for Effective Benefits Management in Major Projects (2017) pulls together insights and lessons from signi fic ant major projects. The report synthes ises the key prin ciples and activ it ies required to success fully deliver bene fits in such projects and offers advice and guid ance on extend ing the life cycle.

� A Guide to Using a Benefits Management Framework (2019) was compiled by the APM Benefits Management Specific Interest Group. The guide devel ops an under stand ing of the need for bene fits real isa tion, offer ing a frame work for address ing contex tual factors and devel op ing the capab il ity to realise bene fits.

� The Information Paradox: Realizing the Business Benefits of Information Technology (2007) is a classic, offer ing the first detailed treat ment of bene fits. The book was first published in 1998 and still provides fresh ideas, concrete advice and thought ful reflec tion on the role of bene fits in projectwork and the wider issues regard ing a shift towards valuebased focus.

APM Body of Knowledge 7th edition

1.1.5 Structural choices

Projects, programmes and port fo lios

There are multiple options for deliv er ing change and bene fits, depend ing on the purpose and overall desire. The scale, signi fic ance and complex ity of the proposed under tak ing play a part in determ in ing which approach to use. Another distin guish ing factor is related to the nature of the object ives, which can be defined in terms of outputs (such as deliv er ing a build ing), outcomes (such as staff being relo cated from multiple loca tions to a new HQ), bene fits (such as reduced travel and facil it ies costs) or stra tegic object ives (such as doub ling the organ isa tion’s share price in three years). The choice of how to struc ture invest ments encom passes projects, programmes and port folios (Figure 1.1.5):

Projects are unique, tran si ent endeav ours, under taken to bring about change and achieve planned object ives, which can be defined in terms of outputs, outcomes or bene fits. A project is usually deemed to be a success if it achieves the object ives accord ing to their accept ance criteria, normally within an agreed times cale and budget. Projectwork is conduc ted across normal organ isa tional func tional areas, setting up a tempor ary organ i sa tion, drawing on the skills, expert ise and know ledge of the organ isa tion, as well as third parties, where appro pri ate. Projects normally use capital expendit ure to acquire, upgrade and main tain assets, services, products and capab il ity. Projects need to take into account the ulti mate require ments for decom mis sion ing and disposal. In some settings, it is possible to find arrange ments involving multiple projects running in paral lel, or related to one another, to provide support or to build addi tional capab il it ies. Multiple concur rent projects may require prior it isa tion in terms of sched uled deployment, import ance of primary deliv er ables or the avail ab il ity of key resources, skills, or indi vidu als.

Programmes are unique and tran si ent stra tegic endeav ours, under taken to achieve a defined set of object ives, incor por at ing a group of related projects and change manage ment activ it ies. They can be defined as coordin ated projects and change manage ment activ it ies combined to achieve bene fi cial change. The distinc tion between projects and programmes depends on context and the guiding criteria between them often relates to the complex ity of scope and the addi tion of change activ it ies. The need for signi fic ant improve ment will be consist ent with the organ isa tion’s strategy, and programmes will help to deliver elements of that strategy. Programmes typic ally combine new deployment with some elements of businessas usual. Consequently, they utilise capital expendit ure to acquire assets, services, products and capab il ity, along side oper at ing expense incurred as a result of perform ing normal busi ness oper a tions. Programmes are often defined as deliv er ing change, and would typic ally incor porate the full util isa tion of bene fits to satisfy the busi ness case. The overall measure of success will be determ ined by the actual realisation of the expec ted bene fits, which frequently involves the use of capab il it ies or facil it ies created by the programme in an ongoing, ‘businessasusual’ manner.

Chapter 1 Setting up for success

Figure 1.1.5 Projects, programmes and port fo lios

Portfolios are used to select, prior it ise and control an organ isa tion’s programmes and projects, in line with its stra tegic object ives and capa city to deliver. Their goal is to balance the imple ment a tion of change initi at ives and the main ten ance of businessasusual, while optim ising return on invest ment.

Portfolios are used to struc ture invest ments. They can be managed at an organ isa tional or func tional level (e.g. includ ing all IT initi at ives) to optim ise stra tegic bene fits or oper a tional effi ciency, respect ively. They address a number of major ques tions:

� Are these the projects and programmes needed to deliver the stra tegic object ives, subject to risk, resource constraints and afford ab il ity?

� Is the organ isa tion deliv er ing them effect ively and effi ciently?

� Are the full poten tial bene fits from the organ isa tion’s invest ment being real ised?

Portfolios are partic u larly concerned with the inter de pend en cies between projects and programmes, in terms of:

� scarce or limited resources;

� balance within the port fo lio (e.g. between risks and returns);

� align ment with the stra tegic intent and main prior it ies;

� timing;

� capa city bottle necks.

Portfolio success relates to the sound ness of the invest ment and depends on the ability to address the above concerns and ques tions. The manage ment of a struc tured port fo lio involves constant review of the balance of invest ment and benefit, creat ing and closing projects and programmes as required. Project profes sion als get to choose between the differ ent ways of struc tur ing project work by using projects, programmes and port fo lios. Governance, assur ance and over sight struc tures will match the approach selec ted for organ ising the work.

APM Body of Knowledge 7th edition

Full refer ences for Section 1.1

1.1.1 Cleden, D. (2016) Managing Project Uncertainty. Abingdon: Routledge.

Loch, C. H., DeMeyer, A. and Pich, M. (2006) Managing the Unknown: A New Approach to Managing High Uncertainty and Risk in Projects. New Jersey: John Wiley.

Mack, O., Khare, A., Krämer, A. and Burgartz, T. (eds) (2015) Managing in a VUCA World. Heidelberg: Springer.

1.1.2 APM Enabling Change Specific Interest Group (2017) Introduction to Managing Change. Princes Risborough: Association for Project Management.

Dalcher, D. (2018) The Evolution of Project Management Practice: From Programmes and Contracts to Benefits and Change. Abingdon: Routledge.

Hamel, G. and Prahalad, C. K. (2005) Strategic intent. Harvard Business Review, 83(7), 148–161.

1.1.3 APM Enabling Change Specific Interest Group (2017) Introduction to Managing Change. Princes Risborough: Association for Project Management.

Balogun, J., Hope Hailey, V. and Gustafsson, S. (2016) Exploring Strategic Change. Harlow: Pearson Education.

Dalcher, D. (2019) Managing Projects in a World of People, Strategy and Change. Abingdon: Routledge.

1.1.4 Association for Project Management Benefits Management Specific Interest Group (2019) A Guide to Using a Benefits Management Framework. Princes Risborough: Association for Project Management.

Infrastructure and Projects Authority (2017) Guide for Effective Benefits Management in Major Projects. London: Infrastructure and Project Authority.

Thorp, J. (2007) The Information Paradox: Realizing the Business Benefits of Information Technology. New York: McGrawHill Ryerson.

1.1.5 Bartlett, J. (2017) The Essentials of Managing Programmes, 6th edition. Abingdon: Routledge.

Rayner, P., Reiss, G. and MacNichol, D. (2011) Portfolio and Programme Management Demystified. Abingdon: Routledge.

Thiry, M. (2015) Program Management, 2nd edition. Farnham: Gower Publications.

Chapter 1 Setting up for success

1.2 Life cycle options and choices

There are many differ ent ways of struc tur ing and organ ising projectwork. One of the more import ant shaping decisions revolves around the choice of an approach and the asso ci ated life cycle that matches that philo sophy. This section is concerned with clari fy ing the differ ent options and high light ing their implic a tions. When organ isa tions decide to deliver bene fi cial change through projectwork, they have a diversity of poten tial approaches, ranging from highly predict ive methods that assume that know ledge regard ing the context is well estab lished and stable, all the way to highly adapt ive situ ations, replete with volat il ity, uncer tainty, ambi gu ity and turbu lence that require more dynamic ways of enga ging with the envir on ment and continu ously involving inter ested stake hold ers. The choice of approach will determ ine the way projects, programmes and port fo lios operate and play a vital part in determ in ing their success. Each life cycle also requires differ ent manage ment capab il it ies, team skills, know ledge manage ment approaches and governance style. Professionals are expec ted to make informed choices and select approaches that match their specific context. This section aims to intro duce the rich ness and diversity of possib il it ies avail able to decisionmakers. It begins by intro du cing some of the main philo soph ical posi tions and key perspect ives, before delving into the differ ent types of life cycles on offer and recog nising that given the many comprom ises, managers unsur pris ingly opt for prag matic hybrid choices, combin ing the best features from differ ent arrange ments. Projectwork is often said to emphas ise a shortterm perspect ive through an intense focus on imple ment a tion. However, projects are increas ingly called upon to deliver bene fits, address sustain ab il ity consid er a tions and trans form organ isa tions. Such expect a tions imply a need to extend the tradi tional focus to address more stra tegic aspects and global concerns. This section offers a glimpse of the funda mental decisions and tradeoffs avail able to decisionmakers who need to under stand the diversity of options they increas ingly find at their disposal. This section will be of partic u lar interest to senior leaders in organ isa tions as well as to managers and project profes sion als as it addresses:

1.2.1 Life cycle philo sophy: Making sense of life cycles

1.2.2 Linear life cycles: Following a delib er ate sequence

1.2.3 Iterative life cycles: Filling in the detail

1.2.4 Hybrid life cycles: Finding the right balance

1.2.5 Extended life cycles: Bringing in the bene fits

1.2.6 Product life cycles: Considering usage, evol u tion and disposal

APM Body of Knowledge 7th edition

1.2.1 Life cycle philo sophy

Making sense of life cycles

Life cycles are funda mental to the manage ment of projectwork: Different approaches can be util ised for deployment, depend ing on the desired outputs, bene fits and outcomes and the expec ted uncer tainty, novelty and risk appet ite. The choice of deployment approach will play a key part in select ing the most suit able form of life cycle, and thereby determ ine the stages involved in organ ising projectwork and indic ate how they are inter re lated and sequenced. A life cycle is a frame work compris ing a series of distinct highlevel stages required to trans form an idea or concept into reality in an orderly and effi cient manner. It offers a system atic and organ ised way to under take projectbased work and can be viewed as the struc ture under pin ning deployment. The life cycle acts as an import ant manage ment tool, focus ing on the alloc a tion of resources, the integ ra tion of activ it ies, the avail ab il ity of key indi vidu als, the support of timely decisionmaking, the mitig a tion of risk and the provi sion of control and governance mech an isms match ing the life cycle struc ture. Consequently, it is import ant that spon sors and exec ut ives under stand the char ac ter ist ics and specific features of the selec ted approach. Approaches to deployment range between highly predict ive and highly adapt ive settings and can be depic ted along a spec trum (Figure 1.2.1). The choice between predict ive and adapt ive philo sophies is largely influ enced by the avail ab il ity of know ledge. More predict ive approaches tend to rely on know ledge known at the start, allow ing work to proceed in a sequen tial manner, whilst adapt ive contexts imply that new know ledge is created as the work progresses, which is then used to inform and guide the remain ing effort. Adaptive approaches allow more key stake hold ers to contrib ute and shape the devel op ment process. Specific philo sophies for deployment include:

� Linear: Where the initi at ive progresses through a sequen tial series of steps. In a programme, each step would provide only partial capab il ity until the final desired state is reached. This is suit able for stable, lowrisk envir on ments.

� Incremental: Where the target state is achieved through a staged series of smaller steps. This can be used to deliver ‘quick wins’, conserve scarce resources or deliver early bene fits. It fits with the idea of deliv er ing tranches in programmes.

� Iterative: Where proto types, time boxes or paral lel activ it ies are util ised to acquire new insights, obtain feed back or explore highrisk options. The scope of this activ ity depends on the level of uncer tainty and the organ isa tional risk appet ite. The dura tion may extend through out deployment.

� Evolutionary: Where deployment entails a number of major trans itions, each based on user feed back from the preced ing trans ition. This may be applied in innov at ive or timecritical entry to new markets.

There is no univer sal best approach. Project profes sion als select the most suit able arrange ment for their context, most often combin ing features from any of the above into a hybrid life cycle (see 1.2.4).

Chapter 1 Setting up for success

Figure 1.2.1 Selecting a life cycle

Recommended reading

� The UK’s National Standard BS 6079 Project Management – Principles and Guidance for the Management of Projects (2019) considers the role of life cycles in the manage ment of projects and offers guid ance on the compon ents of a project life cycle.

� APM Introduction to Programme Management (2016) offers explan a tions of the various life cycle philo sophies in the context of managing programmes and change efforts, address ing some of the major implic a tions of making life cycle choices. It also covers governance issues and provides detailed guidelines related to the major stages included in the programme life cycle.

� Managing Knowledge in Project Environments (2019) builds from the assump tion that the choice of life cycle is based on what is known. It explains the role of know ledge and uncer tainty in select ing differ ent life cycles and approaches. The book offers a know ledge manage ment perspect ive on projectwork, paying partic u lar atten tion to the implic a tions of select ing specific life cycles and approaches.

APM Body of Knowledge 7th edition

1.2.2 Linear life cycles

Following a delib er ate sequence

Linear life cycles refer to the comple tion of projectwork within a single pass through the cycle (Figure 1.2.2). Projects are thus sequenced into a set of distinct phases, which are completed seri ally and typic ally span from the devel op ment of the initial concept to the deployment of an ulti mate outcome, output or bene fits. This is partic u larly useful where there is a need to coordin ate large teams of people working across compan ies and depart ments. Projectwork can be divided into phases that must be accom plished in order to achieve the project goal. Division into phases and inter me di ate deliv er ables is useful in plan ning as it provides a frame work for budget ing, schedul ing, alloc at ing resources and appro pri ately assign ing team members and experts, as well as a mech an ism for arran ging mile stones and project reviews. This leads to greater effi ciency and enhanced organ isa tion, resource alloc a tion and cost control. In linear life cycles, progress is carried out in sequence, enabling the passing of control and inform a tion to the next phase when predefined mile stones are reached and accom plished. This approach aims to be highly struc tured, predict able and stable, provid ing a trans par ent format for managing contracts and allow ing maximum control and governance over the process. It works partic u larly well for the deployment of wellunderstood and clearly defined outputs trading time, cost and risk to achieve the right scope and quality. On the other hand, it assumes the avail ab il ity of relat ively perfect know ledge upfront, whilst being resist ant to change and inflex ible in terms of correc tions and rework. It also implies a long sequence, culmin at ing in the ulti mate handover. Urgent or emer gent change can only be addressed by excep tion, requir ing major modi fic a tions and reor gan isa tion of the cycle. Dividing know ledge into distinct phases can create silos and know ledge barri ers between the phases. A typical linear life cycle encom passes multiple phases:

� Concept: Development of an initial idea through initial studies and highlevel require ments manage ment, and assess ment of viab il ity, includ ing an outline busi ness case.

� Definition: Development of a detailed defin i tion, plans and state ment of require ments that include a full justi fic a tion for the work.

� Deployment: Implementation of plans and veri fic a tion of perform ance through testing and assur ance to realise inten ded outputs, outcomes and bene fits.

� Transition: Handover, commis sion ing and accept ance of outputs to the sponsor and wider users, culmin at ing in formal closure.

Life cycles vary accord ing to the nature, purpose and expec ted use. The basic life cycle can be adjus ted to reflect differ ent contexts and local vari ations, includ ing altern at ive phase names preval ent within specific indus tries and busi ness sectors. Smaller projects may apply a shorter cycle, as required. In some circum stances, the deliv ery of bene fits (benefit real isa tion) can also be incor por ated as an addi tional step at the end of the sequence (see also 1.2.5).

Chapter 1 Setting up for success

Recommended reading

� The Project Workout: Directing and Managing Business-Led Projects (2019) provides a guide to struc tur ing projects, combin ing useful advice with prac tical tech niques. The resource iden ti fies many of the key activ it ies required to utilise the ‘staged’ frame work with an exten ded focus on governance, monit or ing and control, inform a tion manage ment and the relev ant stand ards.

� APM Introduction to Programme Management (2016) offers guidelines on the applic a tion of life cycles in the context of programmes. It provides detailed guid ance on the key activ it ies related to each of the major stages and on the governance of programme life cycles.

� Guide to Life Cycles and Life Cycle Models (2017) covers a pleth ora of life cycles and approaches iden ti fied by a joint task force involving members from the International Council for Systems Engineering (INCOSE) and APM. The cover age includes project and product life cycles with vari ations from many sectors and discip lines.

Figure 1.2.2 Linear project life cycle

APM Body of Knowledge 7th edition

1.2.3 Iterative life cycles

Filling in the detail

Iterative life cycles are composed of several iter a tions allow ing the deployment of initial capab il ity, followed by success ive deliv er ies of further value. They are based on the idea of concur rency, or simul tan eous engin eer ing, where differ ent devel op ment steps are allowed to be performed in paral lel (Figure 1.2.3). Iterative life cycles repeat one or more of the phases before proceed ing to the next one, and manage uncer tainty regard ing the scope by allow ing the object ives to evolve through out the life cycle as learn ing and discov ery take place. Recognising that change is pervas ive, iter at ive life cycles begin by devel op ing a high level vision, with the finer detail uncovered during the cycles of iter a tion. Allowing the specific a tion and design to run in paral lel ‘fast tracks’ the deployment. Iterations are thus used to progress ively elab or ate and improve under stand ing based on client inter ac tion with learn ing between the iter a tions. Iterations are applied when the goals are clear but the means of achiev ing them are not. The rapid deployment of smaller, partial solu tions becomes the basis for gaining fast feed back and new insights about what needs to be done. Iterations are often conduc ted through working proto types which stake hold ers utilise as the basis for adapt a tion and improve ment. Iterative work prior it ises collab or a tion and cocreation to address social and polit ical complex ity. Iterative approaches address change, innov a tion, new domains or pion eer ing tech no lo gies as they accen tu ate velo city and adapt ab il ity and reduce uncer tainty and know ledge bound ar ies. However, iter at ive approaches can only proceed when user feed back is avail able to be used as the basis for initi at ing new cycles of devel op ment, refine ment and improve ment. They depend on colocation or regular avail ab il ity of users to inter act with the system and build buy in. They also encour age users to develop and enhance the proposed solu tion continu ously, and thereby amend the required scope and rearrange the iden ti fied needs whilst redu cing the overall risk levels. Iterative ideas are often linked with incre mental concepts. Incremental think ing combines elements of linear and paral lel life cycles to apply linear sequences in a staggered fashion over time. The overall design or require ments can then become the basis for the deployment of incre ments to the users at regular inter vals as calen dar time progresses. Agile devel op ment projects combine the two concepts by includ ing a series of iter a tions prior to the formal release of a product. Many agile methods also apply the idea of time box ing, an iter a tion with a fixed end date that is not allowed to change, thereby adjust ing the scope and quality to deliver on time and to cost. Multiple timebox iter a tions are likely to be employed in paral lel to develop differ ent aspects of the system. Overall, using iter a tions allows earlier return on some of the bene fits that have already been imple men ted whilst valid at ing the concepts and enga ging users. Similar notions can be explored in the context of struc tur ing and managing programmes, where iter a tions can also accom mod ate tranches and chunks of business asusual.

Chapter 1 Setting up for success

Recommended reading

� The Project Workout: Directing and Managing Business-Led Projects (2019) covers concur rent engin eer ing and other life cycle vari ations in the context of projects. It also offers some guid ance on the rela tion ship between agile deployment and project manage ment.

� Guidelines on life cycles related to the manage ment of programmes is covered in APM Introduction to Programme Management (2016). This touches on the idea of incre mental devel op ment and deployment suppor ted through a set of tranches. It also considers the rela tion ship between projects and programmes as implied by the deployment struc ture. This resource offers useful guidelines related to the use of incre ments and time boxes in agile settings.

� Agile PM: Agile Project Management Handbook, Vol. 2 (2014) describes the project life cycle in an agile setting. The text explores agile philos dophy, high light ing how and where project manage ment can be repres en ted through out an agile or iter at ive life cycle.

Figure 1.2.3 Iterative devel op ment in a dynamic, agile context

Source: The DSDM Agile Project Framework (2014 Onwards)

Figure 1.2.3 ‘Iterative development in a dynamic, agile context’ from The DSDM Agile Project Framework Handbook, 2014, https://www.agilebusiness.org. Reproduced with permission of the Agile Business Consortium.

APM Body of Knowledge 7th edition

1.2.4 Hybrid life cycles

Finding the right balance

Context matters: there is no univer sally applic able onesizefitsall life cycle. The choice often hinges on what the organ isa tion is trying to achieve and what is import ant. Managers regu larly utilise progress ive elab or a tion, where detail is filled in as devel op ment progresses using proto types and other iter at ive elements. Engagement with poten tial users uncov ers unex pec ted new details, hinting at the blend ing of approaches as a poten tial way of progress ing work effect ively. Moreover, given the complex ity and uncer tainty of many contexts, there is no need to apply any partic u lar approach for the complete dura tion of a project or programme. Hybrid life cycles enable a prag matic mix of philo sophies, typic ally fusing together elements from predict ive and adapt ive perspect ives to create a new model or approach. An obvious example is in util ising iter at ive or agile methods for early require ments gath er ing, where the uncer tainty is greatest, and follow ing it up with incre mental or sequen tial processes to form al ise deploy ment. The use of proto typ ing, time box ing or iter at ive think ing offers tested methods for exper i ment a tion and risk reduc tion. The tail or ing of life cycles allows for predict ive aspects to be integ rated into adapt ive methods, and also for the borrow ing of agile concepts and tools to: augment and strengthen predict ive deployment; focus on the most useful interim deliv er ables; and speed up the deploy ment and real isa tion of bene fits, espe cially in increas ingly uncer tain contexts. Adding iter at ive elements to ‘predict ive’ projects can enhance deploy ment in stages, support the gener a tion of insights, under pin the real isa tion of an early benefit stream and valid ate some of the ideas much earlier within the cycle. Iterative and agile approaches have developed a discip line of enhan cing visib il ity, determ in ing progress and respond ing adapt ively to enhance the poten tial deliv er able value which is not normally found in linear think ing. Similarly, earlier return on invest ment on some aspects of a delivered system can be encour aged when sequen tial constraints are relaxed. Utilising prior it isa tion and track ing methods borrowed from incre mental and iter at ive deployment and the applic a tion of governance approaches adopted from sequen tial life cycles to agile projects can offer syner gistic bene fits and allow prac ti tion ers in either camp to borrow, over come tradi tional limit a tions and improve current prac tice. However, it also requires great skills and clarity when involving two differ ent systems of working. Blending, merging or mashing of life cycles, ideas, prin ciples, prac tices and methods applies equally to programmes and port fo lios. Building agile working into a project or programme invest ment life cycle can be extremely useful for predict ive organ isa tions finding them selves oper at ing in uncer tain contexts because it offers sizing for effi ciency and flex ib il ity. Transformation and major change efforts can be speeded up through incre mental deploy ment approaches and improved tranche reviews, while agile concepts can also be util ised in categor ising, blend ing and balan cing port fo lios to make them more flex ible and dynamic (Figure 1.2.4).

Chapter 1 Setting up for success

Recommended reading

� A Guide to Assurance of Agile Delivery (2017) was developed by the APM Assurance SIG to add assur ance consid er a tions to projects char ac ter ised by agile deployment forms. The guide incor por ates aspects related to agile projects into the assur ance activ it ies offer ing some specific guid ance for hybrid projects, remind ing assur ance special ists to consider the differ ent constitu ent parts of the project.

� Directing Agile Change (2016) aims to propose guid ance in rela tion to over see ing the deploy ment of agile projects. The resource was created by the APM Governance SIG. It iden ti fies the distinc tions between linear and iter at ive modes of deploy ment and acknow ledges the implic a tions of util ising hybrid combin a tions that draw on both perspect ives.

� Agile-stage-gate-hybrids: The next stage for product devel op ment (2016) was written by a product devel op ment and innov a tion expert. The article makes the case for integ rat ing elements of agile product devel op ment into tradi tional gating processes leading to faster phys ical product releases, better responses to chan ging require ments and improved team commu nic a tion.

Figure 1.2.4 Hybrid programme life cycle

APM Body of Knowledge 7th edition

1.2.5 Extended life cycles

Bringing in the bene fits

The typical project land scape is rather diverse. As a result, the scope of a project life cycle can take various forms. Some projects will be part of a programme and will only be concerned with deliv er ing outputs. Some projects will work as stan dalone projects and would be primar ily concerned with deliv er ing outputs. Other projects will be expec ted to incor por ate the manage ment of change and the real isa tion of bene fits and hence require a greatly exten ded life cycle (Figure 1.2.5). Where a contractor is working for a client, the contractor’s ‘project’ may simply be the deployment and transition phases of the client’s project that will include bene fits real isa tion. In these circumstances the client is responsible for operating the outcomes in order to deliver the benefits. Extended life cycles ensure that account ab il ity and governance of the invest ment stays with the change teams until the change is fully embed ded by offer ing the missing connec tion to benefit real isa tion, whilst prevent ing the form a tion of know ledge bound ar ies between project teams and oper a tions. Recognising that many projects are initi ated in order to deliver change and bene fi cial outcomes to organ isa tions, life cycles incor por ate a further phase named ‘bene fits real isa tion’ that may proceed up to the achieve ment of the busi ness case. An addi tional under pin ning phase is also required in order to realise bene fits as new outputs need to be made avail able and access ible to poten tial users. This may need to be enabled and oper ated separ ately. Note that programmes will often include bene fits real isa tion as a core part of their defin i tion and scope. The addi tional activ it ies included in the exten ded life cycle, encom pass:

� Adoption: Operations and sustain ment required to utilise the new project and enable the accept ance and use of the bene fits.

� Benefits real isa tion: Realisation of the required busi ness bene fits.

The prin cipal implic a tion of extend ing the end of the life cycle to incor por ate bene fits real isa tion is that there is a need to start upfront, plan for the supple mental activ it ies and incor por ate addi tional consid er a tions during the concept and defin i tion phases. There are income and oper a tional costs connec ted to the addi tional activ it ies as well as spend ing capex consid er a tions which will be addressed during the concept and defin i tion phases. Projects that include bene fits real isa tion will have an exten ded scope that goes beyond the defin i tion of outputs. Thinking about bene fits begins before the project has been scoped. Project require ments need to be expressed in terms of bene fits and outcomes to enable benefit real isa tion to proceed. If there are multiple areas of bene fits, a programme may be better suited to deliver the differ ent streams of bene fits (the scope of programmes typic ally include bene fits real isa tion). In order to facil it ate bene fits real isa tion during the exten ded project dura tion, bene fits manage ment (incor por at ing iden ti fic a tion, defin i tion, quan ti fic a tion, plan ning, execu tion, track ing, monit or ing and review ing) is needed as an addi tional activ ity required to trans late require ments that have been expressed in terms of bene fits and manage them to success ful deploy ment and real isa tion.

Chapter 1 Setting up for success

Recommended reading

� Benefits Realisation Management: A Practical Guide to Achieving Benefits through Change (2010) is a prac tical guide to imple ment ing benefit real isa tion in organ isa tions. The book explains the processes required to support benefit real isa tion prac tice, identi fy ing the key addi tions required to supple ment projects and programmes and embed bene fits real isa tion prac tice as a measure of success.

Figure 1.2.5 Extended life cycle

APM Body of Knowledge 7th edition

1.2.6 Product life cycles

Considering usage, evol u tion and disposal

The product life cycle takes a broader view of the full product life span from initial idea, through devel op ment, evol u tion and upgrades to removal from service and ulti mate dismant ling (Figure 1.2.6). Whilst such consid er a tions extend beyond the tradi tional project bound ary, issues regard ing oper a tion, upgrade, decom mis sion ing and disposal are likely to be raised during the early defin i tional activ it ies and be reflec ted in the require ments for the product and initial project. Project managers should be aware of these expect a tions and needs, and develop their projects in ways that will not under mine or contra dict the longterm plans for the product and its inten ded use and disposal. Whilst some projects are designed to operate the outcomes for another project, longerterm or multiple consid er a tions can be accom mo dated through programmes to provide greater flex ib il ity in struc tur ing and organ ising such activ it ies. To enable systems and products to be util ised and perform in accord ance with the agreed busi ness case, systems and initi at ives need to be adequately suppor ted, main tained, upgraded and improved so that the bene fits can continue to accrue. Some applic a tions such as ‘whole life costing’ will consider the full product life cycle and the exten ded life cycle covers the full oper a tion of the service. Additional phases added to the full product life cycle include:

� Operation: Ensuring avail ab il ity and continu ing support and main ten ance (of the project deliv er ables and the poten tial outcomes and bene fits).

� Termination: Decommissioning and disposal at the end of the product’s useful life.

Utilising the product cycle requires addi tional upfront prepar a tion: during the defin i tion phase, it is essen tial to estab lish the sustain ab il ity and envir on mental impacts of the proposed solu tion, outputs and outcomes through an assess ment of the whole life cycle of the products, includ ing oper a tional, decom mis sion ing and disposal consid er a tions. Many of the decisions made during the early stages may impact not just the oper a tion phase, but also the choice of mater i als or retire ment options that will need to be considered. Experts can be employed to identify, advise, mitig ate and plan for the risks asso ci ated with future actions. Decisions about the future of the product or system are incor por ated into the require ments manage ment activ it ies so they can be recor ded and feed into subsequent activ it ies and tradeoffs. Disposal require ments, codi fied during the concept phase, are increas ingly expec ted to be included in the formal docu ment a tion. The product life cycle helps in making sustain able choices and embraces the prin ciples of product stew ard ship, advoc at ing that every one who bene fits commer cially from a product has a shared respons ib il ity to minim ise its envir on mental impacts. Adopting a whole life cycle or a full product life cycle perspect ive enables exec ut ives and managers to respons ibly engage with the longterm future implic a tions of their projectrelated actions, and discharge their increas ingly emer ging respons ib il ity for proper endoflife disposal of systems and assets in a respons ible, afford able and effect ive manner.

Chapter 1 Setting up for success

Recommended reading

� Product Lifecycle Management: The Executive Summary (2018) is concerned with products and their manage ment through an effect ive life cycle. The book makes the case for under stand ing the full envir on ment within which products are developed, manu fac tured and suppor ted from cradle to grave, and combines theory, prac tical applic a tions through examples and case studies that cover recent devel op ments and trends.

� Guide to Life Cycles and Life Cycle Models (2017) explores differ ent aspects of life cycles from a project manage ment and systems engin eer ing perspect ive. The report compares product life cycle (referred to as ‘product span’) and the project life cycle, explor ing the common al it ies and differ ences between the two.

� Product Stewardship in Action: The Business Case for Life Cycle Thinking (2017) makes a power ful case for exten ded produ cer respons ib il ity as a busi ness strategy rather than a phil an thropic exer cise. It high lights the benefit from achiev ing public and commer cial shared value by respond ing effect ively to stake holder concerns regard ing the envir on ment.

Figure 1.2.6 Product life cycle

APM Body of Knowledge 7th edition

Full refer ences for Section 1.2

1.2.1 APM Programme Management Specific Interest Group (2016) APM Introduction to Programme Management, 2nd edition. Princes Risborough: Association for Project Management.

British Standards Institution (BSI) (2019) BS 6079 Project Management – Principles and Guidance for the Management of Projects. London: British Standards Institution.

Payne, J., Roden, E. and Simister, S. (2019) Managing Knowledge in Project Environments. Abingdon: Routledge.

1.2.2 APM Programme Management Specific Interest Group (2016) APM Introduction to Programme Management, 2nd edition. Princes Risborough: Association for Project Management.

Buttrick, R. (2019) The Project Workout: Directing and Managing Business-Led Projects, 5th edition. Abingdon: Routledge.

INCOSE and APM Systems Thinking Specific Interest Group (2017) Guide to Life Cycles and Life Cycle Models. London: International Council for Systems Engineering.

1.2.3 Agile Business Consortium (2014) Agile PM: Agile Project Management Handbook, Vol. 2. London: Agile Business Consortium.

APM Programme Management Specific Interest Group (2016) APM Introduction to Programme Management, 2nd edition. Princes Risborough: Association for Project Management.

Buttrick, R. (2019) The Project Workout: Directing and Managing Business-Led Projects, 5th edition. Abingdon: Routledge.

1.2.4 APM Assurance Specific Interest Group (2017) A Guide to Assurance of Agile Delivery. Princes Risborough: Association for Project Management.

APM Governance Specific Interest Group (2016) Directing Agile Change. Princes Risborough: Association for Project Management.

Cooper, R. G. (2016) Agilestagegatehybrids: The next stage for product devel op ment. Research Technology Management, 59(1), 21–29.

1.2.5 Association for Project Management Benefits Management Specific Interest Group (2019) A Guide to Using a Benefits Management Framework. Princes Risborough: Association for Project Management.

Bradley, G. (2010) Benefits Realisation Management: A Practical Guide to Achieving Benefits through Change, 2nd edition. Farnham: Gower.

Infrastructure and Projects Authority (2017) Guide for Effective Benefits Management in Major Projects. London: Infrastructure and Project Authority.

Chapter 1 Setting up for success

1.2.6 INCOSE and APM Systems Thinking Specific Interest Group (2017) Guide to Life Cycles and Life Cycle Models. London: International Council for Systems Engineering.

Lewis, H. (2017) Product Stewardship in Action: The Business Case for Life Cycle Thinking. Abingdon: Routledge.

Stark, J. (2018) Product Lifecycle Management: The Executive Summary. New York: Springer.

Chapter 1 Setting up for success

1.3 Establishing governance and over sight

Having iden ti fied the approaches for devel op ing and deploy ing the new assets, capab il it ies and systems that can address stra tegic needs, it is essen tial to create governance, assur ance and over sight mech an isms, systems and frame works to under pin and enable the achieve ment and support the realisation of meas ur able bene fi cial change. The estab lish ment of busi ness value depends on the arrange ments and meas ures that support and enhance the deploy ment of the assets and capab il it ies, their util isa tion and the ulti mate real isa tion of the busi ness case. Sound governance and assur ance are exten ded to change projects, programmes and invest ments to guar an tee their outcomes, align achieve ment with strategy and enable the real isa tion of bene fits and the creation of value that will deliver return on invest ment. Success depends on the capab il it ies to effect ively sponsor and cham pion change and lever age and optim ise supply chains, eval u ate the expec ted return on invest ment, develop busi ness cases that support the change, create dedic ated tempor ary organ isa tions and struc tures, utilise talent manage ment systems and involve and empower governance boards to sustain and enhance the change initi at ives. This section will be of partic u lar interest to senior leaders in organ isa tions as it addresses:

1.3.1 Governance prin ciples: Establishing control of deployment of projects, programmes and port fo lios

1.3.2 Assurance prin ciples: Providing confid ence to stake hold ers

1.3.3 Sustainability: Environmental, social, economic and admin is trat ive consid er a tions

1.3.4 Strategic sourcing: Choosing strategies for obtain ing bestvalue from supply chains

1.3.5 Sponsorship: Championing the work to ensure inten ded bene fits and value are achieved

1.3.6 Investment decisions: Evaluating the return on invest ment

1.3.7 Business case: Justifying invest ment in a project, programme or port fo lio

1.3.8 Temporary struc tures: Aligning and balan cing tempor ary and perman ent organ isa tional struc tures

1.3.9 Talent manage ment: Attracting, deploy ing, support ing and retain ing talen ted people

1.3.10 Governance boards: Putting governance prin ciples into prac tice

APM Body of Knowledge 7th edition

1.3.1 Governance prin ciples

Establishing control of deployment of projects, programmes and port fo lios

Governance comprises the frame work of author ity and account ab il ity that defines and controls the outputs, outcomes and bene fits from projects, programmes and port fo lios. It is the mech an ism whereby the invest ing organ isa tion exerts finan cial and tech nical control over the deploy ment of the work and the real isa tion of value. Governance for projectbased working informs corpor ate governance and, when effect ive, provides confid ence to the board of direct ors/trust ees that invest ments in projects, programmes and port fo lios are being well managed. Good governance calls for the roles and respons ib il it ies of the team and wider stake hold ers to be clearly defined. This is typic ally achieved through the use of a respons ib il ity assign ment matrix that clari fies the roles that are account able and respons ible for activ it ies and decisions, those that need to be consul ted during decisionmaking and those that need to be informed of the outcome. The bene fits of estab lish ing a respons ib il ity assign ment matrix early and main tain ing this through out the life cycle are to enable governance to take respons ib il ity for:

� confirm ing that decisionmaking is being effi cient and effect ive; and

� ensur ing that the invest ing organ isa tion main tains the right capa city and capab il ity to deliver the work.

Governance empowers project profes sion als to execute their respons ib il it ies by defin ing deleg ated limits of author ity and estab lish ing effect ive escal a tion routes for issues and change requests. Projects and programmes are delivered through a chosen and defined life cycle (see Section 1.2). Governance ensures that all the require ments of a preced ing phase of the chosen life cycle are met before work progresses to the next phase. The decision points between life cycle phases are commonly known as decision gates (see 2.2.2) and rely on assur ance of the work carried out so far (see 1.3.2 and 2.2.4) and compet ent integ rated plans and report ing for the work to come (see Section 4.2). Adopting these governance prin ciples ensures that:

� project profes sion als deliver the outcomes and value defined by the sponsor; and

� imple ment a tion of the work adheres to legal, regu lat ory, corpor ate, ethical and profes sional stand ards.

When governance is working well, it provides suffi cient report ing and control activ it ies to ensure that the sponsor (see 1.3.5) and other senior leaders/stake hold ers are kept informed of relev ant progress (see 3.1.1) and are provided with the inform a tion they need to make decisions about future invest ment in the project, programme or port fo lio. Where projectbased work has multiple organ isa tional owners, governance is designed to offer each investor/stake holder an appro pri ate level of influ ence in line with their stake, and a route to resol u tion of any disputes.

Chapter 1 Setting up for success

Recommended reading

The APM Governance Specific Interest Group has published a compre hens ive suite of guides on a range of governance prin ciples:

� Directing Change (2018) provides advice to those with corpor ate governance roles on how to adopt solid prac tices for the governance of complex change. It also links change with businessasusual and corpor ate governance activ it ies.

� Directing Agile Change (2016) explains how good governance of projects that adopt iter at ive/agile approaches is enabled and suggests collab or at ive beha viours that can be applied at any level of lead er ship in the organ isa tion, from the main board/chief exec ut ive level down wards.

� Governance of Co-owned Projects (2017) offers a succinct guide for boards and their advisors, provid ing a set of under ly ing prin ciples that can be assessed and applied when there are multiple organ isa tions invest ing in a project.

Figure 1.3.1 Interaction of different levels of governance

Source: Adapted from Directing Change (2018)

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1.3.2 Assurance prin ciples

Providing confid ence to stake hold ers

The assur ance process provides confid ence to the governance board that the project, or wider programme or port fo lio is on track to deliver the inten ded bene fits. Effective assur ance is object ive and inde pend ent, working in part ner ship with governance and risk manage ment. Governance relies on assur ance to support sound decisionmaking and change control. Risk analysis provides guid ance to assur ance on where the greatest vulner ab il it ies lie (see 4.2.3). Evidence from assur ance improves risk assess ment as well as inform ing decisionmaking at decision gates (see 2.2.2) and increas ing the prob ab il ity of projects, programmes and port fo lios meeting their object ives. Governance, assur ance and risk manage ment work together because any weak ness in one discip line damages all three. When setting up governance, the sponsor agrees an approach to assur ance with other stake hold ers. This may be docu mented in a formal assur ance strategy to be applied across a programme or port fo lio. Where a project exists inde pend ently of a programme or port fo lio, the assur ance approach/ strategy and plans are developed by the sponsor from first prin ciples. The project manager and sponsor agree with the owner that the assur ance planned will provide the neces sary confid ence for the outputs of the project to be accep ted into use. The main ques tions to address when devel op ing an assur ance approach/strategy are:

� Who are the stake hold ers, and what are their roles in provid ing and receiv ing assur ance?

� What are the governance arrange ments of the organ isa tion/programme/project?

� What are the organ isa tion’s project life cycles? (See Section 1.2.)

� How will appro pri ate levels of inde pend ence be ensured?

An assur ance plan is considered to be effect ive if it meets these criteria:

� Assurance is inde pend ent, object ive and propor tion ate to the work.

� Assurance is targeted where the greatest risks exist.

� There are clear account ab il it ies for assur ance arrange ments, activ it ies and outputs.

� Timings and cycles of assur ance activ it ies are planned and coordin ated.

� The governance route for report ing outcomes and resolv ing issues is clear.

In a large project or programme, there may be several differ ent assur ance providers, for example internal audit, or external consultantled reviews. In such cases, the sponsor coordin ates the activ it ies of the separ ate providers and ensures that there are no gaps in the cover age and that the team is motiv ated to cooper ate. The term integ rated assur ance is often used in such situ ations and reflects the three lines of defence model that is popular in corpor ate governance as shown in Figure 1.3.2.

Chapter 1 Setting up for success

Recommended reading

The APM Assurance Specific Interest Group has published a compre hens ive suite of guides on assur ance which offer prac tical advice to providers and receiv ers of assur ance in any industry sector:

� A Guide to Project Auditing (2018) is inten ded for the use of audit ors in devel op ing an approach to review and assur ance.

� A Guide to Assurance of Agile Delivery (2017) addresses the differ ent approaches required for agile approaches, where obser va tion, as opposed to docu ment a tion, plays a larger role in assur ance.

� A Guide to Integrated Assurance (2014) explains the bene fits of the integ rated approach and provides guid ance on how to imple ment an integ rated assur ance model.

Figure 1.3.2 The three lines of defence model for assur ance

Source: A Guide to Integrated Assurance (2014). Used with permission of Roy Millard.

APM Body of Knowledge 7th edition

1.3.3 Sustainability

Environmental, social, economic and admin is trat ive consid er a tions

Sustainability is concerned with balan cing the envir on mental, social, economic and admin is trat ive aspects of projectbased work to meet the current needs of stake hold ers without comprom ising or over bur den ing future gener a tions (Figure 1.3.3). Sustainability involves both indi vidual and organ isa tional respons ib il ity to ensure that outputs, outcomes and bene fits are sustain able over their life cycles and during their creation, disposal and deco mis sion ing (see 1.2.6). The last decade has also seen the emer gence of climate change as an urgent global issue. Project profes sion als have a respons ib il ity to ensure that their work minim ises, or ideally posit ively affects, ongoing sustain ab il ity. When working sustain ably, bene fits emphas ise build ing lasting outputs and outcomes that are afford able to main tain and relat ively straight for ward to decom mis sion. Assessment of sustain ab il ity aspects is clearer and more iden ti fi able in some domains: largescale engin eer ing and construc tion projects will often have an imme di ate impact on the envir on ment. These are closely monitored and will often be subject to legis lat ive require ments. Another example, focused on the social aspects, is the build ing of a resid en tial complex that must include social housing for the local community and its key workers. Social impact is often an import ant benefit measure for local govern ment projects and programmes in the UK. In projects where the outputs and outcomes are not phys ical struc tures, for example, soft ware developed to enable organ isa tional change, there is no imme di ate envir on mental impact. However, largescale IT programmes do have an admin is trat ive and cost burden that features in a sustain ab il ity assess ment, and may include unfore seen social and soci etal impacts. Many organ isa tions recog nise that the envir on mental, social and economic dimen sions of their busi ness activ ity need to be factored into their manage ment strategies. This is some times referred to as the ‘triple bottom line’. Even minor players in a projectbased team can have an influ ence, however small, on sustain ab il ity and may there fore be expec ted to think creat ively and act respons ibly in their daytoday work. This may be some thing as simple as redu cing unne ces sary travel or the use of paper. Sponsors and stake hold ers, espe cially those with seni or ity, can put in place mech an isms to identify, monitor and reward working prac tices that support sustain ab il ity. They can also influ ence wider stake hold ers and chal lenge aspects of sustain ab il ity. Project profes sion als seek and follow the envir on mental guidelines of the commis sion ing organ isa tion. Once they under stand the require ments, they monitor and report team adher ence and ensure that their risk strategy incor por ates impacts to sustain ab il ity. Sustainability is relev ant across all areas of projectbased working. For example, the procure ment team seeking oppor tun it ies to buy from sustain able sources and to make the supply chain more effi cient. Programme and port fo lio profes sion als need to play a part in analys ing and select ing projects to meet sustain ab il ity object ives wherever possible. Project profes sion als provide inform a tion and confid ence to spon sors and organ isa tional boards to ensure that envir on mental, social, economic and admin is trat ive prac tices are as respons ible and sustain able as prac tic able.

Chapter 1 Setting up for success

Recommended reading

� Social Partnerships and Responsible Business (2014) is a hand book relev ant for those who are looking to develop and sustain part ner ships for the social good. It provides local, national and global perspect ives on the import ance and impact that crosssector collab or a tion can have on chal lenges such as climate change, educa tion and health.

� Sustainability in Project Management (2012) explores the ques tions surround ing the integ ra tion of the concepts of sustain ab il ity in projectwork encom passing economic, social and envir on mental concerns. It also emphas ises the role of respons ib il ity, account ab il ity and values in terms of ethics, fair ness and equal ity to enable profes sion als to ‘do the right things right’.

� Sustainability Interventions – For Managers of Projects and Programmes (2011) is aimed at project prac ti tion ers to aid them in bring ing their expert ise to bear on sustain ab il ity themes and provide lead er ship to the other respec ted team members and stake hold ers who have their own interests, oblig a tions, respons ib il it ies and contri bu tions on such matters.

� Climate change and what the project management profession should be doing about it - a UK perspective (2017) is an essay that argues project management has a potentially significant role to play in reducing the causes and consequences of climate change. This includes managing projects that will deliver new forms of mitigation.

Figure 1.3.3 Sustainability as balan cing differ ent concerns

APM Body of Knowledge 7th edition

1.3.4 Strategic sourcing

Choosing strategies for obtain ing best-value from supply chains

Before enga ging with the market to acquire goods or services, analysis is needed to under stand:

� the require ments of the inten ded outputs;

� the capa city and capab il ity of the market to meet the require ments.

This analysis results in an under stand ing of buying strengths and weak nesses and helps the organ isa tion invest ing in projectbased work to develop strategies to maxim ise buying advant ages and respond to the risk of supply disrup tion. The Kraljic matrix (see Figure 1.3.4) is a widely adopted tool used to assist in this process. Based on the outcome of the analysis, the sourcing strategy for a partic u lar item or service might vary from the simple trans ac tional, ‘overthecounter’type arrange ment for routine commod it ies, to longterm part ner ing or alli an cing arrange ments for highrisk items for examples requir ing hightechnology equip ment or special ist design services. In all stra tegic sourcing decisions, there is a balance to strike between multiple criteria, includ ing the long term sustain ab il ity of the supply chain and its ability to support ongoing oper a tions once the project is complete, partic u larly where the organ isa tional context is one of fastmoving soci etal or tech no lo gical change. Choices are also required about the will ing ness to work closely with the supply chain. Many organ isa tions choose to engage a prin cipal contractor or consult ant that they can work with on a onetoone basis, who will manage other suppli ers on their behalf. Suppliers who are managed through a prin cipal contractor are often referred to as second or third‘tier’ suppli ers. This decision impacts on the demand for skilled internal resources and the advant ages of hiringin capable subcon tract ors always needs to be balanced with the ability of the organ isa tion to grow its own talent. At programme or port fo lio level, this decision process would include consid er ing the option of a partner to provide a fluc tu at ing level of tech nical support through out the life of the work. Project profes sion als balance the compet it ive advant age gained from frequent tender ing against the bene fits of longterm rela tion ships, typic ally suppor ted by commer cial/procure ment special ists in the organ isa tion. A marginal costsaving may be easily outweighed by the advant age gained from working with a supplier who has grown to under stand the organ isa tion and has struc tured their oper a tion to align with the project’s demands. This consid er a tion is partic u larly relev ant at programme or port fo lio level, where there is the oppor tun ity to consol id ate indi vidual project demands. In this way, advant age can be gained also by offer ing the supplychain continu ity, gener at ing effi cien cies that can be shared. Any project or programme needs to be cognis ant of the organ isa tion’s corpor ate procure ment policies and proced ures, where they may be able to take advant age of exist ing frame works or, conversely, be constrained by pref er en tial lists. The outputs of the activ it ies described here will inform procure ment strategy (see 2.1.4).

Chapter 1 Setting up for success

Recommended reading

� The APM Guide to Contracts and Procurement (2017) is an access ible and compre hens ive manual for all procure ment activ ity. Section 4, ‘Package Contacting Strategy’, is partic u larly relev ant to this topic.

� Improving Infrastructure Delivery: Project Initiation Route-Map (2016) is an aid to stra tegic decisionmaking that, although written specific ally from an infrastructuredeployment perspect ive, contains univer sal project prin ciples. Section 3, ‘Assess Market Capability’, includes a useful tool to support stra tegic sourcing decisions.

� Strategic Sourcing Management: Structural and Operational Decision-Making (2016) exam ines procure ment and supply manage ment in detail, cover ing the three dimen sions of compet it ive ness, effect ive ness and effi ciency. The book is organ ised in four parts: stra tegic decisions; oper a tional manage ment of procure ment and related supplychain; manage ment of human resources; and dedic ated inform a tion systems to support procure ment.

Figure 1.3.4 Supplier-based segment a tion using a matrix

Source: Based on the Kraljic Matrix (1983)

APM Body of Knowledge 7th edition

1.3.5 Sponsorship

Championing the work to ensure inten ded bene fits and value are achieved

The sponsor is the person account able for ensur ing that the work is governed effect ively and deliv ers the object ives to meet iden ti fied needs (Figure 1.3.5). Sponsors are busi ness leaders who play a key role in promot ing, advoc at ing and shaping projectwork. The sponsor over sees the project and programme manage ment func tions and remains account able for ensur ing the real isa tion of the specified bene fits over time. It is a crucial role and spon sors need the status and author ity within the busi ness to enable them to assert appro pri ate influ ence over the deploy ment of the project or programme. They also need to secure for them selves clear and offi cial briefi ng from the invest ing organ isa tion. The sponsor’s involve ment is continu ous through out the life cycle, although the extent of their engage ment will tend to fluc tu ate, with peaks at the initial and final stages of the project. At the start, the sponsor leads to identify needs, set require ments, estab lish the busi ness case and secure funding. In the closing stages, the sponsor takes respons ib il ity for ensur ing the work is prop erly closed out, handing over outputs to oper a tions and ensur ing bene fits are real ised as planned. The sponsor’s role in the life cycle there fore precedes and super sedes that of the project or programme manager. It is the role that is the inter face between the busi ness and the project or programme. The sponsor plays a central role in governance, account able for the continu ing valid ity of the busi ness case. As part of governance, the sponsor leads decisionmaking processes, partic u larly in rela tion to the purpose of the project, the appoint ment of project and programme managers and the avail ab il ity of toplevel contin gency provi sion, and is the first point of escal a tion for the project or programme manager regard ing issues or change requests. In addi tion to the governance account ab il it ies, effect ive spon sors also estab lish support ive working rela tion ships with the relev ant project profes sional and the wider team and it is through this working rela tion ship that the sponsor can add great value, for example, in support ing stake holder engage ment or motiv at ing the team through diffi cult times. A success ful sponsor is:

� A leader and decisionmaker who is able to work across corpor ate and func tional bound aries within the organ isa tion.

� A cred ible influ en cer of stake hold ers with the deleg ated author ity to act on behalf of the invest ing organ isa tion.

� An enthu si astic advoc ate of the work and the change it brings about.

� Prepared to commit suffi cient time and support to under take the role.

� Sufficiently aware of the prac tices under pin ning projectbased working to be able to make informed decisions as to whether the work is being managed effect ively, respons ibly and sustain ably (see 1.3.3), whether the busi ness case (see 1.3.7) is being real ised and to chal lenge project profes sion als appro pri ately.

Chapter 1 Setting up for success

Recommended reading

� Building Sponsors: Future Project Leadership (2018) is an APM report based on outputs from a spon sors summit explor ing the key themes of the sponsor’s role. The event and the report focused on realworld exper i ences from a wide range of sectors and lay out key themes that drew a broad consensus.

� Sponsoring Change: A Guide to the Governance Aspects of Project Sponsorship (2018) by the APM Governance Specific Interest Group, covers areas such as: why projects need spon sors; how the board’s support is import ant for sponsor and project success; the attrib utes of effect ive spon sors; what spon sors do for the busi ness; what spon sors do for the project manager; and gives some useful point ers on choos ing and select ing spon sors.

� Project Sponsorship: An Essential Guide for Those Sponsoring Projects within Their Organizations (2016) offers support for spon sors, with partic u lar emphasis on the busi ness case, governance, assur ance and skills needed for effect ive spon sor ship.

Figure 1.3.5 The scope of project spon sor ship

Source: Sponsoring Change (2018)

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1.3.6 Investment decisions

Evaluating the return on invest ment

Investment decisions are import ant as they provide the rationale and justi fic a tion for spend ing limited resources. Whether the invest ment is being made in the public, private or char it ies sector, there is a choice about how to invest funds and capab il it ies to deliver value and the sponsor makes the case of how best value can be real ised by deploy ing capital, oper a tional expendit ure and staff time to projectbased endeav ours. Investment decisions balance a number of elements includ ing:

� Affordability: Can the bene fits be delivered within the avail able funds of the organ isa tion when viewed as part of the wider port fo lio of oper a tional and change activ it ies?

� Return on invest ment (ROI): Does the invest ment deliver a suit able return, given the fore cas ted capital and oper a tional costs and bene fits over the economic life of the product. Is this the best way to get a return on the invest ment of funds?

� Portfolio effect: Does the invest ment fit along side the wider set of invest ments in oper a tional and change activ it ies?

Organisations have a choice of finan cial indic at ors to eval u ate and compare invest ment decisions, includ ing abso lute monet ary values such as net present value (NPV) and relat ive indic at ors such as the internal rate of return (IRR) or the weighted average cost of capital (WACC). Organisations typic ally have defined hurdle rates in percent age terms for invest ments that repres ent the minimum target return on invest ment. These concepts are part of what is typic ally referred to in corpor ate finance as capital budget ing (Figure 1.3.6). Private organ isa tions almost always make their invest ment decisions based on finan cial consid er a tion due to the require ments for finan cial selfsufficiency. Public organ isa tions and char it ies are often concerned with valueformoney service, afford ab il ity, nonfinancial consid er a tions or maxim ising the bene fits for a set budget, with the funding derived either from govern ment or dona tions. Sponsors also need to repres ent nonfinancial consid er a tions in the invest ment decision. These can include:

� Practicality: Can the project be delivered tech nic ally and/or in line with regu lat ory stand ards and organ isa tional values?

� Maturity of defin i tion: Is the scope and require ments of the work defined in enough detail to have confid ence that all costs and bene fits have been captured?

� Decision bias: Are there psycho lo gical biases or blind spots influ en cing estim ates and the ulti mate decision? Is this a ‘pet project’? Are estim ates optim istic to make the case seem more obvious than it should be?

The sponsor brings together finan cial and nonfinancial consid er a tions, with a risk analysis for the invest ment that enables decisionmakers to have an indic a tion of the confid ence they have

Chapter 1 Setting up for success

in the projec ted returns and the finan cial contin gency it would be prudent to hold. Assurance is often provided for governance via an inde pend ent review and scru tiny of the invest ment case. Mature governance would recog nise a range of possible outcomes, not a single point, espe cially early in the life cycle.

Recommended reading

� Net Present Value and Risk Modelling for Projects (2016) explores NPV in detail, suggest ing how it can be used during the early stages of projectwork to improve fore casts when uncer tainty is at its highest and the oppor tun it ies to influ ence are at their greatest.

� Delusions of success: How optim ism under mines exec ut ives’ decisions (2003) exam ines how exec ut ives fall victim to what psycho lo gists term ‘plan ning fallacy’ when fore cast ing the outcomes of risky projects. Executive spin scen arios of success while over look ing the poten tial for mistakes and miscal cu la tions. As a result, managers pursue initi at ives that are ever unlikely to deliver the expec ted returns.

� The hidden traps in decision making (2006) proclaims that, although making decisions is the most import ant job that exec ut ives under take, it is also the toughest and the riski est. Bad decisions can be traced back to the way decisions were conceived and considered – and some times the fault lies not in the decisionmaking process but rather in the mind of the decisionmaker.

Figure 1.3.6 Comparing options to invest capital

APM Body of Knowledge 7th edition

1.3.7 Business case

Justifying invest ment in a project, programme or port fo lio

The busi ness case provides justi fic a tion for under tak ing a project, programme or port fo lio. It eval u ates the benefit, cost and risk of altern at ive options offer ing a rationale for the preferred solu tion. The busi ness case brings together the invest ment appraisal for the project, programme or port fo lio, with a wider evidencebased narrat ive of how the invest ment is inten ded to lead to real isa tion of the inten ded qual it at ive and quant it at ive bene fits. The inform a tion presen ted in the busi ness case results from work conduc ted in the early phases of the chosen life cycle. A common way of think ing about a busi ness case is using these five dimen sions (Figure 1.3.7):

� Strategic context: The compel ling case for change.

� Economic analysis: Return on invest ment based on invest ment appraisal of options.

� Commercial approach: Derived from the sourcing strategy (see 1.3.4) and procure ment strategy.

� Financial case: Affordability to the organ isa tion in the time frame.

� Management approach: Roles, governance struc ture, life cycle choice, etc.

The busi ness case is reviewed and revised at decision gates as more mature estim ates and inform a tion become avail able. This enables the peri odic reas sess ment of the viab il ity of the invest ment and provides a formal input to revis it ing plans at key decision points. The sponsor is account able for the busi ness case through out the chosen life cycle, although prepar a tion of the busi ness case is often deleg ated to other project profes sion als who gather the data to enable the analysis of the tradeoffs between wholelife costs, bene fits and risks to be made. There are advant ages to the active involve ment of the project/programme/port fo lio manager in prepar a tion and main ten ance of the busi ness case, primar ily in having full and shared appre ci ation with the sponsor and governance struc tures about what is developed and the agreed condi tions for success. The approved busi ness case provides a record of the decisions made by governance about how to achieve the required return on invest ment from the work. As the busi ness case is required early in the life cycle, in early iter a tions many assump tions are made about what is possible to achieve, in what time frame and for what cost. Sponsors docu ment assump tions made in the busi ness case and these provide a crit ical input to subsequent risk analysis and contin gency determ in a tion (see 4.2.3 and 4.2.9). Many organ isa tions obtain inde pend ent assur ance of the busi ness case prior to the full review, appraisal and eval u ation by governance. Project profes sion als not involved in the work conduct the busi ness case review to provide a neutral chal lenge and to avoid any conflict of interest. The present a tion of the busi ness case, if approved, results in the formal startup of the project, programme or port fo lio. A goodquality busi ness case is essen tial as this is the baseline to take into detailed plan ning and deployment of any project, programme or port fo lio.

Chapter 1 Setting up for success

Recommended reading

� The APM Benefits Management Specific Interest Group has produced A guide to using a benefits management framework (2019). The resource includes an insight into the invest ment decision from the perspect ive of bene fits real isa tion.

� The Green Book: Central Government Guidance on Appraisal and Evaluation (2018) contains uptodate advice from HM Treasury on public sector invest ments. The advice has many univer sal concepts that apply equally across private and char it able sectors.

� Making the Business Case: Proposals that Succeed for Projects that Work (2009) is a straight for ward guide to writing effect ive busi ness cases. It offers prac tical examples and reflect ive exer cises, with advice cover ing the journey from strategy to options consid er a tion and detailed content related to identi fy ing and defin ing the bene fits, costs and achievab il ity.

Figure 1.3.7 Five dimen sions included in a busi ness case

Source: Adapted from HM Treasury (2018)

Figure 1.3.7 Adapted from ‘Box 3. The Five Case Model’, The Green Book, Central Government Guidance on Appraisal and Evaluation. HM Treasury, © Crown copyright 2018. This publication is licensed under the terms of the Open Government Licence v3.0.

APM Body of Knowledge 7th edition

1.3.8 Temporary struc tures

Aligning and balan cing tempor ary and perman ent organ isa tional struc tures

Organisational struc tures define how roles, respons ib il it ies and power are assigned and controlled to achieve stra tegic object ives, and how inform a tion flows between differ ent levels of manage ment. For routine/oper a tional work, the chosen ‘perman ent’ organ isa tional struc ture provides a relat ively stable envir on ment to support decisionmaking and the flow of inform a tion across the organ isa tion. Most organ isa tions adopt a matrixtype struc ture, with indi vidual oper a tional units suppor ted by func tions that set policy and manage controls across each part of the oper a tion. Projects are tempor ary endeav ours and there fore, by defin i tion, have a tempor ary struc ture estab lished by the people in the perman ent organ isa tion to manage activ it ies and resources to deliver specific object ives within prede ter mined time frames. Temporary struc tures adopted for projects, programmes or port fo lios typic ally do not adopt the same struc ture as the per manent organ isa tion, but need to be coordin ated. Some organ isa tions refer to perman ent struc tures as ‘run’, as in running the busi ness, and tempor ary struc tures as ‘change’, as in chan ging the busi ness. Project profes sion als work across both struc tures and the ease or diffi culty with which this occurs is influ enced by the way the organ isa tion aligns and balances its organ isa tional struc tures and resourcing strategy. Organisations have func tional depart ments such as finance, inform a tion tech no logy, product devel op ment and human resources. These func tions provide a struc ture within which resources, processes and tech no lo gies are brought together to perform work. An organ isa tion may also have a specific func tion that is respons ible for managing a port fo lio of change initi at ives. This func tion can consist of port fo lio managers who work with senior stake hold ers across the organ isa tion to prior it ise change, ensure align ment to strategy and track the inten ded bene fits delivered by the initi at ives. An organ isa tional resourcing strategy iden ti fies how perman ent staff are balanced with contract ors or other third parties to run and change the busi ness. The resourcing strategy is linked to talent manage ment within the organ isa tion (see 1.3.9). This means using the right resource for the right role and giving oppor tun ity to staff for profes sional devel op ment. In some organ isa tions, for example, a highly complex project can only be managed by a project manager who demon strates the know ledge, exper i ence and beha viours required to manage such a project and this person may not exist on the perman ent staff. As projectbased working spans func tions, it is vital that the account ab il ity of both perman ent and tempor ary struc tures is clearly commu nic ated. The sponsor plays a key role in managing the inter face between perman ent and tempor ary struc tures, ensur ing that (Figure 1.3.8):

� projects have access to suit ably skilled and exper i enced people without redu cing oper a tional perform ance; and

� any tensions across the bound ary between the tempor ary and perman ent or ganisa tions are managed.

Chapter 1 Setting up for success

Recommended reading

� Managing and Working in Project Society: Institutional Challenges of Temporary Organisations (2015) offers an exam in a tion of the chal lenges asso ci ated with tempor ary project organ isa tions in a perman ent society. The authors make a strong case for renew ing instituions to ensure that they are able to meet the imper at ive for and chal lenges of increas ing and accel er at ing projec ti fic a tion.

� Advancing Research on Projects and Temporary Organizations (2014) is an edited volume, bring ing together multiple contri bu tions focused on the rela tion ship between modern organ isa tions and project manage ment. The book provides an excel lent researchoriented over view of tempor ary organ isa tions and the import ance of under stand ing projectwork as a social process.

� Temporary organ iz ing: Promises, processes, prob lems (2016) is the intro duc tion to a special edition of Organisation Science, a leading manage ment journal, and discusses key chal lenges and oppor tun it ies in the study of tempor ary organ ising, includ ing meth od o lo gical issues, how to theor ise time and how to relate the tempor ary to the more perman ent.

Figure 1.3.8 Relationship between the perman ent and tempor ary organ isa tions

APM Body of Knowledge 7th edition

1.3.9 Talent manage ment

Attracting, deploy ing, support ing and retain ing talen ted people

Talent manage ment is the ability to attract, motiv ate and retain highquality people to deliver the stra tegic goals and object ives of the organ isa tion. Successful organ isa tions manage key rela tion ships between corpor ate busi ness strategies and those of differ ent resourcing strategies such as talent (human resources), tech no logy, finance or inform a tion. Proactive manage ment of talent has a demon strable effect on the success ful deployment of projectbased work. Given the constant levels of uncer tainty and change in project envir on ments, prior it ies are also shift ing, which does not always allow for effect ive resource manage ment. Given that people are one of the most import ant and costly resources in projects, effect ive talent plan ning is both neces sary and import ant. Taking a resourcebased view of organ isa tions, talent manage ment is about effect ively exploit ing and devel op ing the know ledge of people by invest ing in the organ isa tion’s core compet en cies and build ing capab il ity through effect ive talent plan ning and resourcing strategies. Early conscious mana gerial and lead er ship atten tion to talent prin ciples can enhance and drive the organ isa tion’s talentmanagement strategy. Such bene fits include:

� gaining project skills, know ledge and prac tices;

� encour aging crossfunctional working and strength en ing wider rela tion ships;

� gener at ing greater busi ness aware ness;

� support ing continu ous improve ment and devel op ment;

� trans fer ring newly acquired skills sets and know ledge back to their oper a tional roles and func tions;

� enabling succes sion plan ning and future talent pools;

� helping to build greater organ isa tional capab il ity and project matur ity.

Project profes sion als map the work programme and under stand clearly the differ ent role profiles, team struc tures and compet en cies required to deliver the goals and object ives of the project. This becomes more complex when applied to a port fo lio of projects, where career paths need to motiv ate and retain talent for the organ isa tion’s well being and longterm success. By deploy ing talent manage ment prac tices, the project profes sional (Figure 1.3.9):

� Attracts the best talent with the appro pri ate skills sets and compet en cies required for the role (talent audit).

� Deploys people in the right team struc tures with the relev ant compet en cies (resourcing high-performing teams).

� Applies perform ance manage ment processes for assess ing effect ive perform ance and commit ment (monit or ing and control).

Chapter 1 Setting up for success

� Provides effect ive learn ing and devel op ment and know ledge trans fer for nurtur ing and build ing future talent for the organ isa tion (continu ous improve ment and know ledge manage ment).

� Rewards people accord ing to perform ance (talent motiv a tion, commit ment and reten tion).

� Assists succes sion plan ning to build project matur ity in organ isa tions (build ing capab il ity and lead er ship).

In Chapter 3, we explore specific people and beha vi oural aspects of projectbased working, includ ing all topics relev ant to deploy ing and devel op ing skilled people who can influ ence stake hold ers, build teams and conduct them selves as project profes sion als.

Recommended reading

� Resourcing and Talent Management (2014) offers good depth of cover age of resourcing and talentmanagement issues for organ isa tions. The human resource manage ment perspect ive is enlight en ing to anyone with an interest in resource manage ment.

� People Resourcing and Talent Planning (2010) is enga ging and provides good examples of resourcing and talentplanning issues in organ isa tions. This book also considers the chal lenges facing organ isa tions in imple ment ing talentmanagement strategies.

� Strategic Human Resource Management (2007) is a heavy weight text book that provides an indepth analysis of stra tegic talentmanagement issues from a global perspect ive. This is partic u larly import ant to global project teams collab or at ing on a range of project port fo lios.

Figure 1.3.9 Steps to build ing and retain ing project-management talent

APM Body of Knowledge 7th edition

1.3.10 Governance boards

Putting governance prin ciples into prac tice

Governance boards comprise repres ent at ives of the func tions and depart ments within the organ isa tion who are invest ing in, or being impacted by the project, programme or port fo lio. The members of the governance board have respons ib il ity for over see ing deployment and making decisions through out the chosen life cycle in a way that is commen sur ate with the size and complex ity of the work being under taken. Governance boards have a variety of titles, includ ing steer ing commit tee, steer ing group, project board, programme boards, etc. The extent and limit of a governance board’s author ity is defined by a term of refer ence or a board charter, typic ally developed by the sponsor (see 1.3.5). Terms of refer ence make the author ity level of the governance board clear, includ ing escal a tion routes for resol u tion of issues, or other decisions where the board does not have the deleg ated author ity of the invest ing organ isa tion(s). It is import ant that the member ship is suffi ciently qual i fied to discharge the func tion of the group as set out in its charter. Where projects are coowned there is repres ent a tion from each owner, propor tion ate to their stake. Wider stake holder repres ent a tion on the board may be bene fi cial to promote engagement and the manage ment of their expect a tions. The extent of their parti cip a tion is a matter for the board to decide. If neces sary, their attend ance can be sched uled to exclude them from confid en tial discus sions. The sponsor plays a key role in estab lish ing not only the struc ture of the board, but also its culture and working prac tices. Sponsors often chair governance boards (Figure 1.3.10). In most organ isa tions, governance boards are form ally conduc ted in a manner consist ent with overall corpor ate governance, includ ing:

� papers being submit ted in advance; and

� minutes and actions taken and form ally reviewed through to comple tion.

The governance board discharges its respons ib il ity for the perform ance of the project, programme or port fo lio by:

� Monitoring progress through reports provided, and wider assur ance.

� Measuring progress using metrics that enable accur ate scru tiny.

� Agreeing remedial meas ures if a devi ation from planned or fore cas ted perform ance threatens the deliv ery of any defined benefit.

� Agreeing changes that are judged to provide an oppor tun ity for the invest ing organ isa tion(s) to protect or secure addi tional value (finan cial, social, envir on mental, legal, ethical, etc.) or escal at ing the change request to a higher author ity where required.

� Ensuring that stat utory oblig a tions and appro pri ate profes sional and ethical stand ards are imple men ted.

� Making formal go–no/go decisions at defined decision gates (see 2.2.2).

Chapter 1 Setting up for success

Recommended reading

� Project Governance: A Practical Guide to Effective Project Decision Making (2009) intro duces the prin ciples of account ab il ity and effect ive project governance before provid ing detailed guid ance on build ing a projectgovernance model. The project board is prom in ently featured, with detailed advice on how to build and popu late it. There is also detailed cover age on integ rated project deployment and the governance rela tion ship between programmes and projects.

� Project Governance (2009) focuses on the structures required for effect ive governance. The projectsteering group and its role are explored in detail, allow ing readers to engage with two main approaches to governance (namely, trans ac tion and agency perspect ives).

� The Handbook of Board Governance: A Comprehensive Guide for Public, Private and Not- for-Profit Board Members (2016) is an excel lent resource for members of all governance boards. The edited collec tion offers compre hens ive insights, address ing many crit ical aspects relev ant to projects and complex projects and some of the issues that need address ing.

Figure 1.3.10 Generic project governance struc ture

Source: Sponsoring Change (2018)

APM Body of Knowledge 7th edition

Full refer ences for Section 1.3

1.3.1 APM Governance Specific Interest Group (2016) Directing Agile Change. Princes Risborough: Association for Project Management.

APM Governance Specific Interest Group (2017) Governance of Co-owned Projects. Princes Risborough: Association for Project Management.

APM Governance Specific Interest Group (2018) Directing Change, 3rd edition. Princes Risborough: Association for Project Management.

1.3.2 APM Assurance Specific Interest Group (2014) A Guide to Integrated Assurance. Princes Risborough: Association for Project Management.

APM Assurance Specific Interest Group (2017) A Guide to Assurance of Agile Delivery. Princes Risborough: Association for Project Management.

APM Assurance Specific Interest Group (2018) A Guide to Project Auditing. Princes Risborough: Association for Project Management.

1.3.3 Seitanidi, M. and Crane, A. (2014) Social Partnerships and Responsible Business: A Research Handbook. Abingdon: Routledge.

Silvius, G., Schipper, R., Planko, J., van den Brink, J. and Kohler, A. (2012) Sustainability in Project Management. Abingdon: Routledge.

Taylor, T. (2011) Sustainability Interventions – For Managers of Projects and Programmes. London: Dashdot Publications.

Morris, P.W.G. (2017) Climate change and what the project management profession should be doing about it a UK perspective. Princes Risborough: Association for Project Management.

1.3.4 Kraljic, P. (1983) Purchasing Must Become Supply Management. Harvard Business Review, September

APM Contracts and Procurement Specific Interest Group (2017) APM Guide to Contracts and Procurement. Princes Risborough: Association for Project Management.

Bruel, O. (2016) Strategic Sourcing Management: Structural and Operational Decision-Making. London: Kogan Page.

HM Government Infrastructure & Projects Authority (2016) Improving Infrastructure Delivery: Project Initiation Route-Map. London: The Stationery Office.

Chapter 1 Setting up for success

1.3.5 APM Governance Specific Interest Group (2018) Sponsoring Change: A Guide to the Governance Aspects of Project Sponsorship, 2nd edition. Princes Risborough: Association for Project Management.

Association for Project Management (2018) Building Sponsors: Future Project Leadership. Available at: www.apm.org.uk/media/15103/aguidetoprojectsponsorship.pdf (accessed 22 January 2019). Princes Risborough: Association for Project Management.

West, D. (2016) Project Sponsorship: An Essential Guide for Those Sponsoring Projects within Their Organizations. Abingdon: Routledge.

1.3.6 Hammond, J., Keeney, R. and Raiffa, H. (2006) The hidden traps in decision making. Harvard Business Review, January.

Hopkinson, M. (2016) Net Present Value and Risk Modelling for Projects. Abingdon: Routledge.

Lovallo, D. and Kahneman, D. (2003) Delusions of success: How optim ism under mines exec ut ives’ decisions. Harvard Business Review, July.

1.3.7 Association for Project Management Benefits Management Specific Interest Group (2019) A Guide to Using a Benefits Management Framework. Princes Risborough: Association for Project Management.

Gambles, I. (2009) Making the Business Case: Proposals that Succeed for Projects that Work. Farnham: Gower.

HM Treasury (2018) The Green Book: Central Government Guidance on Appraisal and Evaluation. London: The Stationery Office.

1.3.8 Bakker, R., DeFillippi, R., Schwab, A. and Sydow, J. (2016) Temporary organ iz ing: Promises, processes, prob lems. Organisation Science, 37(12), 1703–1719.

Lundin, R. A. and Hallgren, M. (2014) Advancing Research on Projects and Temporary Organizations. Copenhagen: Copenhagen Business School Press.

Lundin, R. A., Arvidsson, N., Brady, T., Ekstedt, E., Midler, C. and Sydow, J. (2015) Managing and Working in Project Society: Institutional Challenges of Temporary Organisations. Cambridge: Cambridge University Press.

1.3.9 Pilbeam, S. and Corbridge, C. (2010) People Resourcing and Talent Planning, 4th edition. London: Financial Times Prentice Hall.

Schuler, R. and Jackson, S. (2007) Strategic Human Resource Management. Oxford: Blackwell Publishing.

Taylor, S. (2014) Resourcing and Talent Management. London: Chartered Institute of Personnel and Development.

APM Body of Knowledge 7th edition

1.3.10 Garland, R. (2009) Project Governance: A Practical Guide to Effective Project Decision Making. London: Kogan Page.

Leblanc, R. (2016) The Handbook of Board Governance: A Comprehensive Guide for Public, Private and Not-for-Profit Board Members. Hoboken: Wiley.

Muller, R. (2009) Project Governance. Farnham: Gower.

2 Preparing for change

This chapter is written primar ily for those people charged with leading any project, programme or port fo lio, of any size or complex ity. The focus of the chapter is prepar ing for change, in partic u lar to consider in advance the prac tices that are import ant in early life cycle shaping, midlife cycle assur ance, learn ing and matur ity, and late life cycle trans ition into use – whether leading a stan dalone project, or a programme or port fo lio. Translating stra tegic prior it ies into a justi fied busi ness case for an invest ment in planned change leads to decisions about how to shape the partic u lar project, programme or port fo lio. Focusing on stake holder needs and the organ isa tion’s appet ite for risk, early decisions can be made to inform detailed plan ning. In partic u lar, procure ment strategy and consid er a tions of oper a tional adjust ments that may be needed during deploy ment are import ant topics to consider early as they will influ ence the scope of subsequent work. There are some aspects of projectbased working that apply in all circum stances and inform the abilty of an organ isa tion to improve their capab il ity to deliver change success fully – project by project. All teams involved in projectbased working need to make informed decisions and to provide assur ance to differ ent stake hold ers. Effective projectbased organ isa tions are profi cient in creat ing and using know ledge to continu ously improve their prac tices and enhance their matur ity. In organ isa tions where the ability to deliver bene fi cial change reli ably and at scale is import ant, build ing effect ive withinproject and crossproject support through a project, programme or port fo lio manage ment office (PMO) is crit ical to success. Ultimately, the organ isa tional return on invest ment from projectbased working is accom plished when the partic u lar outputs of projects are trans formed into organ isa tional outcomes of benefit to stake hold ers. The approach adopted for trans ition of projectbased outcomes into use in businessasusual is closely linked to the chosen life cycle, so many vari ants are possible. In all cases, the ability of a tempor ary change team to influ ence the recip i ents of change in the perman ent organ isa tion so that new processes, products, systems or ways of working are adopted, is para mount. And because projects and programmes are tran si ent endeav ours, the managed closure of the work – whether as planned or earlier – is an expli cit and crucial part of the work to be done. The chapter is composed of three parts:

2.1 Shaping the early life cycle

2.2 Assurance, learn ing and matur ity

2.3 Transition into use

Chapter 2 Preparing for change

2.1 Shaping the early life cycle

Shaping projects, programmes or port fo lios during the early life cycle depends on expressed and implied needs of stake hold ers and the extent of the will ing ness of the invest ing organ isa tion(s) to take risk with innov at ive product devel op ment, ambi tious times cales or novel ways of working. There is no ‘correct’ way but the rigour put into the first steps in setting up the work has value as plans develop and are deployed. Emerging insights into how to manage differ ent complex it ies effect ively in projectbased working point to the need for the sponsor and manager/leader to come to a common view on how to approach the work in order to minim ise down side risk and be in a posi tion to seize the upside bene fits of any emer gent change. In most organ isa tions, a depend ence on suppli ers of goods or services in the supply chain to support projectbased working is a reality. Many corpor ate members of APM and readers of this body of know ledge will work for organ isa tions whose main product is the provi sion of projectbased services to their clients. Following a stra tegic review of the market, procure ment strategies need to be devised so that the invest ing organ isa tion can deliver their object ives within the constraints of the supply chain and their inhouse organ isa tional capab il ity. Supplier organ isa tions will be more success ful when they under stand the stra tegic or tactical benefit to the client. Businessasusual work, of course, does not stop while projectbased work is being planned and deployed. In circum stances where the project is designed to make changes to an exist ing oper a tion, spon sors and their colleagues in the busi ness need to make decisions about the best place to manage ongoing work, and how to admin is ter the inter faces between ‘change’ and ‘run’ work. Operational adjust ments are often needed. Shaping the early life cycle requires riskbased decisions to be made that repres ent a trade off between object ives and risk. This works best when spon sors operate in part ner ship with the managers tasked with deliv er ing the project, programme or port fo lio. This section will be of partic u lar interest to project, programme and port fo lio leaders think ing about early life cycle phases as it addresses:

2.1.1 Project shaping: Setting up projects of all sizes for success

2.1.2 Programme shaping: Setting up programmes to deliver the desired bene fi cial change

2.1.3 Portfolio shaping: Setting up port fo lios to ensure effi cient deliv ery of object ives

2.1.4 Procurement strategy: Matching supplychain engage ment to needs

2.1.5 Operational adjust ments: Ensuring oper a tional and projectbased work is coordin ated

APM Body of Knowledge 7th edition

2.1.1 Project shaping

Setting up projects of all sizes for success

This topic is about ‘stan dalone’ projects, not those that are constitu ent parts of programmes and port fo lios. Typically, a project’s object ive is to deliver outputs, for example a soft ware solu tion, a build ing, a process or a service. The project team transitions the outputs to an internal or external client to deliver the desired outcomes and bene fits. Sometimes, the project also includes the work required to deliver outcomes and bene fits. In such cases, the project team leads more of the work to deliver the changes required by the client to realise the project’s inten ded bene fits. To shape the project – to identify its inten ded outputs or outcomes – the sponsor ensures the rationale for the invest ment is defined and docu mented early in the project’s life cycle. Different names for this rationale in common usage include ‘problem state ment’, ‘project brief’ and ‘project charter’. When the client is external, the state ment of the project rationale is often in the form of a formal or informal invit a tion to bid that reflects some or all of the project’s scope. In such cases, the supplier endeav ours to under stand as much of the client’s problem as possible to respond appro pri ately. The sponsor, or project manager on the sponsor’s behalf, facil it ates the creation of the project rationale to capture:

� the highlevel needs of the client and other key stake hold ers and their assump tions; and

� how much risk investors are willing to toler ate in achiev ing their object ives (risk appet ite).

In many organ isa tions, the project rationale is an input to an assess ment of the project’s complex ity, for example the degree of tech nical novelty, stake holder polit ics or volat ile external condi tions. This assess ment provides guid ance to the sponsor and their team about the approach and controls that are likely to be needed to reduce complex ity as far as possible. A clear rationale for the work is also needed as an input to project scoping and plan ning and is the start ing point for governance to approve the initial invest ment, so the project can be further defined. All projects trade the triple constraints of time, cost and quality in achiev ing the defined scope of the project within the defined toler ance for risk (Figure 2.1.1). An under stand ing of the relat ive prior it ies of time, cost and quality is a vital prerequis ite to choos ing the life cycle approach (see Section 1.2), for example whether to use a product life cycle and a focus on wholelife costs, or whether an iter at ive life cycle is optimal to enable agility and rapid devel op ment and deploy ment of solu tions. Funding for stan dalone projects may be via a single source or through multiple investors. The governance of the project will vary to meet the needs of the investors in the project and the life cycle option chosen.

Chapter 2 Preparing for change

Recommended reading

� The APM Planning, Monitoring and Control Specific Interest Group (SIG) guide on Planning, Scheduling, Monitoring and Control (2015) describes the ‘defin i tion’ phase of a project to balance the compet ing constraints of scope, quality, time and cost, using a risk based approach.

� A Short Guide to Risk Appetite (2012) provides prac tical guid ance on under stand ing risk appet ite and how this is expressed by investors and decisionmakers.

� Understand, reduce, respond: project complex ity manage ment theory and prac tice (2017) describes a method for determ in ing struc tural, soci opol it ical and emer gent complex it ies for a project and suggests differ ent approaches for address ing those complex it ies. The method is relev ant to any type of project.

Figure 2.1.1 Trading the triple constraints of time, cost and quality

APM Body of Knowledge 7th edition

2.1.2 Programme shaping

Setting up programmes to deliver the desired bene fi cial change

This topic is about programmes that are stan dalone, or poten tially part of a wider port fo lio of work. Shaping and funding a change initi at ive as a programme assumes that there are greater bene fits to be achieved through programme manage ment than would be the case if the constitu ent projects in the programmes were managed inde pend ently. Programmes are groups of related projects and businessasusual (or steady state) activ it ies that together achieve bene fi cial change for an organ isa tion. Shaping programmes requires the selec tion and framing of projects and other work in businessasusual into a struc ture where bene fits can be delivered incre ment ally over time. To shape a programme, the sponsor works with stake hold ers as early as possible to estab lish:

� a clear under stand ing of the desired future state – typic ally described as a ‘programme vision’;

� how much risk investors are willing to toler ate in achiev ing their object ives (risk appet ite).

This applies whether programmes are stan dalone or managed as part of stra tegic port fo lios (see 1.1.5 and 2.1.3). Shaping the programme to accom plish the vision requires the sponsor and programme manager to select and organ ise projects and other businessasusual activ it ies into tranches that achieve incre mental deliv ery of bene fits. Each tranche is designed to achieve a step change in capab il ity and bene fits real isa tion (Figure 2.1.2). Programme plan ning is always benefitsled – answer ing the ques tion ‘What is the best work to do next to deliver outcomes and bene fits effect ively?’ rather than ‘What would be the best work to do next to deliver outputs/products effi ciently?’ A programme deploy ment approach and life cycle are char ac ter ist ic ally iter at ive (see 1.2.3), to facil it ate decisions about the optimal next steps to deliver the vision. In programme governance, the sponsor advises key stake hold ers on the deploy ment of constitu ent projects within the programme but decisionmaking is focused on decid ing whether the programme as a whole needs to be reshaped based on progress to date with deploy ment of the work and the attain ment of bene fits. Sometimes, governance of projects within programmes is set up inde pend ently to programme governance. Where this is the case project spon sors are part of the programme governance struc ture to ensure a continual focus on programme bene fits and the align ment of prior it ies. Funding for programmes may be via a single client organ isa tion, or through multiple parties. Where there are multiple investors, the sponsor and programme manager need to stay close to stake hold ers to keep the shape of the programme focused on optimal attain ment of benefit for all parties.

Chapter 2 Preparing for change

Recommended reading

� The APM Programme Management Specific Interest Group guide APM Introduction to Programme Management (2016) describes a ‘defin i tion’ phase of a programme and the things that are import ant to do to set up programmes for success.

� Program Management (2015) provides a compre hens ive guide to shaping programmes as a link between strategy and projects. It refer ences inter na tional stand ards and guides and provides a prac tical way to think about the iter at ive programme life cycle over time.

� Thinking and Acting as a Great Programme Manager (2008) provides an indepth, yet prac tical way of consid er ing change from a programme rather than a project perspect ive. It is a very useful tool in the train ing and devel op ment of programme managers.

Figure 2.1.2 Increasing organ isa tional capab il ity through programme manage ment

Source: APM Introduction to Programme Management (2016)

APM Body of Knowledge 7th edition

2.1.3 Portfolio shaping

Setting up port fo lios to ensure effi cient deliv ery of object ives

Portfolios are group ings of projects and/or programmes managed at an organ isa tional or func tional level in order to select, prior it ise and control deployment in line with stra tegic object ives and the capa city to deliver (Figure 2.1.3). The goal of port fo lio manage ment is to balance change initi at ives and businessasusual while optim ising return on invest ment (ROI). The rationale for a port fo lio is funda ment ally differ ent to that of a project or programme. Where projects and programmes are focused on deployment of outputs, and outcomes and bene fits, respect ively, port fo lios exist as coordin at ing struc tures to support deployment by ensur ing the optimal prior it isa tion of resources to align with stra tegic intent and achieve best value. It is common for port fo lios to exist as a mech an ism for ensur ing deliv ery of organ isa tional strategy when this relies on the deployment of programmes and projects in multiple func tions and busi ness units. To shape the port fo lio, the sponsor and port fo lio manager seek out visib il ity of plans of the constitu ent projects and programmes agree how to reshape those constitu ent parts depend ing on:

� The organ isa tion’s ability to resource the whole port fo lio.

� Any changes to stra tegic direc tion or pace of stra tegic imple ment a tion.

Achieving optimal prior it isa tion of work in a port fo lio is a complex task. Portfolio profes sionals typic ally are balan cing:

� the relat ive prior ity of corpor ate goals;

� quant it at ive and qual it at ive bene fits;

� shortterm gains vs longterm gains;

� chan ging external require ments, for example regu lat ory or tech no lo gical;

� avail ab il ity of key resources or the alloc a tion of people;

� the risk profile of each project or programme in the port fo lio.

Portfolios can also exist at lower levels in the organ isa tion, for example to coordin ate the deployment of multiple projects in one depart ment where there are scarce resources that need to be prior it ised so they are focused on the most urgent and import ant work. Occasionally, funding for such port fo lios is justi fied on an annu al ised basis. In a stra tegic port fo lio, governance may be aligned entirely with corpor ate governance. Where this is not the case, it is vital to estab lish clear under stand ing and buyin to the port fo lio prior it isa tion process from the exec ut ive team. In a port fo lio, it is normal for spon sors of projects, who are senior leaders in their own right, to be required to sacri fice their project prior it ies for the benefit of the wider port fo lio. When beha viours and incent ives are aligned with the object ives and value of port fo lio manage ment and the organ isa tion’s stra tegic intent, this works well. Funding for port fo lios is most likely to be within a single client organ isa tion, where the object ive is deliv ery of strategy in the optimal way. In some organ isa tions, a port fo lio will have its own

Chapter 2 Preparing for change

busi ness case. In others, busi ness cases will exist for the programmes or projects making up the port fo lio and the port fo lio itself acts as a coordin at ing mech an ism, poten tially funded through oper a tional budgets.

Recommended reading

� The APM Portfolio Management Specific Interest Group’s Portfolio Management: A Practical Guide (2019) includes many example templates and tools that the prac ti tioner can use to manage the chal len ging task of align ing deployment of projects and programmes with organ isa tional strategy.

� Portfolio and Programme Management Demystified (2011) is a useful guide that compares the manage ment of multiple projects through port fo lios and programmes. It brings together complex topics into one place and discusses them in an approach able and enter tain ing way.

� The Handbook of Project Portfolio Management (2019) is a large edited collec tion of contri bu tions, address ing many aspects related to the use of port fo lio manage ment in prac tice. Topics range from differ ent types of port fo lios and port fo lio compon ents to explor ing the use of port fo lios in differ ent sectors and cover ing the prerequis ites for using portoflios, managing port fo lios and devel op ing the relev ant capab il it ies.

Figure 2.1.3 Portfolio manage ment key processes

Source: Portfolio Management (2019)

APM Body of Knowledge 7th edition

2.1.4 Procurement strategy

Matching supply-chain engage ment to needs

The procure ment strategy sets out the highlevel approach for secur ing the goods and services required from external suppli ers to satisfy project, programme or port fo lio needs (Figure 2.1.4). It is informed by decisions made on stra tegic sourcing (see 1.3.4) and leads to the devel op ment of the procure ment element of an integ rated project manage ment plan (PMP). Decisions to make on ques tions with the sponsor and wider governance are:

� How much risk to retain in the project or programme and how much to share with suppli ers in the supply chain?

� On a continuum from trans ac tional to collab or at ive, what type of rela tion ship is desired with differ ent suppli ers, and why?

The complex ity of the work, the capab il ity of the team, the client/owner’s appet ite for risk and the life cycle approach chosen inform these decisions, as does the analysis of the market in the sourcing strategy. Where risk is retained in the client organ isa tion, the project profes sional ensures there is capab il ity to manage expos ure to a toler able level. For example, a project might seek to pass on the risk of activ ity coordin a tion to a supplier for a price; on the other hand, if activ ity coordin a tion remains with the project, appro pri ately qual i fied resources are needed to manage each contractor and the inter faces between them. In agree ing the procure ment strategy, it is import ant for the project profes sional to be real istic that the price paid to share risk in the supply chain is worth it. Competitive commer cial manage ment can result in a supplier avoid ing oblig a tions that the purchaser assumed it had imposed. The best outcome is most likely to be achieved if risk is alloc ated to the party that is best equipped to manage it. Payment mech an isms are a means of achiev ing the appro pri ate alloc a tion of risk and of motiv at ing the supplier to perform. Options range from a ‘lump sum’ or fixed price for a defined scope, where all the cost risk is with the supplier through to reim burs able contracts where the project pays the supplier on an emer ging cost basis. Intermediate arrange ments include ‘target cost’ contracts, where over spend or under spend is shared in a preor dained propor tion between parties, or ‘bill of quant ity’ contracts, where actual quant it ies delivered are meas ured and valued against agreed unit rates. Penalties and bonus incent ives are often used to motiv ate perform ance in such arrange ments. Some projects or programmes lend them selves to a procure ment strategy whereby the supplier finances the devel op ment of a product in return for receiv ing a fee for its oper a tion for a set period of time. An example would be a contractor build ing a bridge and collect ing the tolls for a fixed period in payment. For longterm projects, programmes or port fo lios, part ner ships, or alli ances such as joint ventures, are procure ment approaches where mutual bene fits can be real ised through longer term, collab or at ive rela tion ships.

Chapter 2 Preparing for change

Recommended reading

� The APM Guide to Contracts and Procurement (2017) is an access ible and compre hens ive manual for all procure ment activ ity. Chapter 3, ‘Project Procurement Strategy’, and chapter 4, ‘Package Contracting Strategy’, offer stepbystep guid ance on devel op ing these crucial plans, and subsec tion 4.4.3 contains concise descrip tions of the various generic contract ing arrange ments.

� Project 13 Commercial Handbook (2018) is a guide for devel op ing a commer cial strategy. It seeks to develop a new busi ness model – based on an enter prise, not on tradi tional trans ac tional arrange ments – to boost certainty and productiv ity in deployment, improve whole life outcomes in oper a tion and support a more sustain able, innov at ive, highly skilled industry. Although targeted at the construc tion industry, much of the content has univer sal procure ment relev ance.

� Procuring Successful Mega-Projects (2015) is a mentor’s guide for project direct ors that distils prac tical advice on how to set up, develop and nego ti ate effect ive major govern ment contracts.

Figure 2.1.4 Choice of contract ing strategy

Source: APM Guide to Contracts and Procurement (2017)

APM Body of Knowledge 7th edition

2.1.5 Operational adjust ments

Ensuring oper a tional and project-based work is coordin ated

When an organ isa tion initi ates a project there are often oper a tional adjust ments to make in advance, during or after the project has been completed. This applies to stan dalone projects as well as projects in programmes and port fo lios. An example of this would be a tempor ary cessa tion of main ten ance activ it ies on an asset, or addi tional controls in place to manage simul tan eous project and oper a tional work going on in the same phys ical space. To ensure that the project envir on ment is set up for success, spon sors and project profes sion als estab lish governance and resourcing arrange ments. This enables the changerelated work to run smoothly, with minimal disrup tion to businessasusual activ it ies while ensur ing that the organ isa tion is ready to accept the outputs of the project and realise the inten ded bene fits. Making decisions about whether work is best managed as a project or part of businessas usual can be prob lem atic. Some pack ages of work, for example planned main ten ance, may meet the defin i tion of a project in being a unique, tempor ary endeav our, but be more easily managed as a compon ent of oper a tions manage ment (Figure 2.1.5). Programmes and port fo lios that are imple ment ing busi ness change may conversely have to tempor ar ily encom pass some aspects of businessasusual such as setting up some customer service activ it ies to minim ise impact on the organ isa tion and its custom ers. Project profes sion als work with oper a tions to deliver change that provides new or enhanced products and services that are managed by routine activ ity. Some consid er a tions before a project starts include:

� Which people are seconded to the tempor ary team and how these are backfilled in the short term.

� Whether some activ it ies need to be ceased tempor ar ily, for example on a refur bish ment project some facil it ies may become unus able, so workarounds are estab lished.

� How oper a tional budget ing processes and policies are managed while the project is in progress.

Throughout a project or programme life cycle, project profes sion als and key stake hold ers from the spon sor ing organ isa tion work closely together to ensure a balance between object ives and oper a tional impacts. A stake holder engage ment strategy iden ti fies the needs of key groups and the sponsor plays a vital role in ensur ing those busi ness needs are met. For example, if a new finance system is being imple men ted, the programme ensures that:

� There is a robust testing approach as part of a transition plan (see 2.3.2).

� Staff are allowed the addi tional time from their routine work to attend briefi ng and train ing events before the system is launched – and are suppor ted once the new system is launched.

� Changes to organ isa tional struc tures and roles are clearly commu nic ated and managed with support from senior manage ment.

Chapter 2 Preparing for change

� Initial defi cien cies in the new system can be handled, for example by dual running of both old and new finance systems for a set period.

Recommended reading

� The APM Planning, Monitoring and Control Specific Interest Group guide on Planning, Scheduling, Monitoring and Control (2015) contains a specific section on the handover of projects. It offers prac tical guid ance on plan ning handovers based on best prac tices.

� The APM Programme Management Specific Interest Group APM Introduction to Programme Management (2016) describes how programmes deliver bene fits to the organ isa tion, the typical chal lenges faced and how a change programme inter acts with businessasusual activ it ies.

� Operational Readiness & Assurance (OR&A): A Guide for Practitioners (2012) offers a gentle intro duc tion to the area of oper a tional read i ness and assur ance, with examples based on oil and gas projects. The book is concerned with build ing a readytooperate capab il ity and the specific activ it ies required to enable such capab il ity.

Figure 2.1.5 Temporary oper a tional adjust ments during project-based working

APM Body of Knowledge 7th edition

Full refer ences for section 2.1

2.1.1 APM Planning, Monitoring and Control Specific Interest Group (2015) Planning, Scheduling, Monitoring and Control: The Practical Project Management of Time, Cost and Risk. Princes Risborough: Association for Project Management.

Hillson, D. and MurrayWebster, R. (2012) A Short Guide to Risk Appetite. Farnham: Gower.

Maylor, H. and Turner, N. (2017) Understand, reduce, respond: Project complex ity manage ment theory and prac tice. International Journal of Operations and Production Management, 37(8), 1076–1093.

2.1.2 APM Programme Management Specific Interest Group (2016) APM Introduction to Programme Management, 2nd edition. Princes Risborough: Association for Project Management.

Pellegrinelli, S. (2008) Thinking and Acting as a Great Programme Manager. London: Palgrave Macmillan.

Thiry, M. (2015) Program Management, 2nd edition. Farnham: Gower Publications.

2.1.3 APM Portfolio Management Specific Interest Group (2019) Portfolio Management: A Practical Guide. Princes Risborough: Association for Project Management.

Lock, D. and Wagner, R. (2019) The Handbook of Project Portfolio Management. Abingdon: Routledge.

Rayner, P., Reiss, G. and MacNichol, D. (2011) Portfolio and Programme Management Demystified. Abingdon: Routledge.

2.1.4 APM Contracts and Procurement Specific Interest Group (2017) Guide to Contracts and Procurement. Princes Risborough: Association for Project Management.

Hart, L. (2015) Procuring Successful Mega-Projects: How to Establish Major Government Contracts without Ending up in Court. Abingdon: Routledge.

Institution of Cost Engineers (2018) Project 13 Commercial Handbook. London: Institution of Cost Engineers.

2.1.5 APM Planning, Monitoring and Control Specific Interest Group (2015) Planning, Scheduling, Monitoring and Control. Princes Risborough: Association for Project Management.

APM Programme Management Specific Interest Group (2016) APM Introduction to Programme Management, 2nd edition. Princes Risborough: Association for Project Management.

Powell, D. (2012) Operational Readiness & Assurance (OR&A): A Guide for Practitioners. Morrisville, NC: Lulu Press.

Chapter 2 Preparing for change

2.2 Assurance, learn ing and matur ity

There are some aspects of projectbased working that apply in all circum stances and inform the abilty of an organ isa tion to improve their capab il ity to deliver bene fi cial change success fully. All teams involved in projectbased working need to make informed decisions and to provide assur ance to differ ent stake hold ers. Whatever life cycle approach is chosen, a managed progres sion through that life cycle is needed. The use of decision gates (altern at ively called ‘stage gates’) is a crit ical part of governance of projectbased working, where the sponsor and wider governance body make decisions about whether to continue the invest ment in a project, programme or port fo lio. The ability to provide assur ance to support such decisions relies on having reli able, trace able inform a tion and other evid ence on which to base judge ments. Effective projectbased organ isa tions are profi cient in creat ing and using know ledge to continu ously improve their prac tices and matur ity. In the past, the idea of ‘lessons learned’ in projectbased working was popular but all too many organ isa tions report that although lessons may be docu mented, they are not reli ably learned and prac tices adjus ted to capit al ise on the learn ing. Learning – the creation and use of know ledge – is a peoplebased prac tice. One effect ive way of people coming together to share know ledge, chal lenge percep tions and create new know ledge is through a community of prac tice. Learning also enables matur ity of prac tice in projectbased working and some organ isa tions choose to bench mark their matur ity, or use a matur ity model, as the basis for an assur ance review. In organ isa tions where the ability to deliver bene fi cial change reli ably and at scale is import ant, build ing effect ive withinproject and crossproject support through a project, programme or port fo lio manage ment office (PMO) is crit ical to success. PMOs come in differ ent shapes and sizes, and serve differ ent purposes. They are increas ingly seen as an effi cient way to provide leading think ing and prac tice across a wide range of projectbased work. This section will be of partic u lar interest to project, programme and port fo lio leaders think ing about how to manage perform ance within the context of the organ isa tional capab il it ies and matur ity. It addresses:

2.2.1 The PMO: Support struc tures for projects, programmes and port fo lios

2.2.2 Decision gates: Managed progres sion through the life cycle

2.2.3 Information manage ment: Capturing evid ence to support buyin, learn ing and assur ance

2.2.4 Audits and assur ance: Ensuring decisions are based on evid ence

2.2.5 Knowledge manage ment: Connecting people to create insight and use know ledge to improve outcomes

2.2.6 Communities of prac tice: Investing in people and know ledge

2.2.7 Maturity of prac tice: Investing in the predict ab il ity of deliv er ing results

APM Body of Knowledge 7th edition

2.2.1 The PMO

Support struc tures for projects, programmes and port fo lios

Many differ ent names are given to the part of the organ isa tional struc ture that provides support for projects, programmes and port fo lios but there is a growing consensus about the term PMO. The PMO may be a project manage ment office, programme manage ment office or port fo lio manage ment office, depend ing on what is being suppor ted. Whether projects, programmes or port fo lios are being suppor ted, a PMO brings three main bene fits to any projectbased organ isa tion: deployment support, process improve ment and resource flex ib il ity. Administrative work, for example, diary and travel arrange ments for the team, and secre tariat services for governance, needs to be resourced on all projects, programmes and port folios, and this is often offered by a PMO. In addi tion, PMOs can provide access to services that might never be justi fied for a single project, for example:

� Controls and report ing: Collecting, analys ing and present ing progress inform a tion and managing inter de pend en cies.

� Assurance: Audits, health checks and reviews to support decision gates and change control.

� Centre of excel lence: Improving processes, tools and tech niques; embed ding through train ing and support; and meas ur ing capab il it ies to review progress and target higher levels of matur ity.

� Specialist support: Provision of special ist skills such as risk; quality, plan ning or finance resources as role models to other project profes sion als.

� Information manage ment: Document manage ment and access to inform a tion, tools and services.

There are three typical ways that PMOs are organ ised and funded (Figure 2.2.1):

� Embedded PMO: Where the major ity of PMO func tions are delivered under the control of the project/programme/port fo lio manager, with only organisationwide elements such as processes defined at a higher level. Effective on large projects that need lots of support and can justify the investment.

� Central PMO: Where the major ity of PMO func tions sit outside of the teams, provid ing a service to multiple projects. Effective when there is a port fo lio of small projects, where flex ib il ity is valued more than manage ment control.

� Hub-and-spoke PMO: A hybrid form with a central enterprise or portfolio PMO linked to satellite PMOs within individual projects and/or programmes. Effective when there are clear roles and respons ib il it ies between managers and the PMO to ensure processes and inform a tion are managed effect ively.

Chapter 2 Preparing for change

Depending on the type of PMO that is adopted, differ ent special ist skills are needed in the PMO team, however there are generic skills that would be useful to have in all PMOs in order to deliver value. These include data analysis skills to support insight ful report ing; facil it a tion skills to support creativ ity, problemsolving and collab or a tion; train ing and coach ing skills to help teams develop; and audit ing skills to confirm compli ance or to chal lenge and thereby drive improve ment.

Recommended reading

� The Complete Project Management Office Handbook (2013) is a detailed hand book offer ing insights and prac tical advice on how to utilise PMOs to enable the three essen tial aspects of improved over sight, control and support. The author views the PMO as a busi ness integ rator, capable of influ en cing both project and busi ness outcomes.

� Leading Successful PMOs: How to Build the Best Project Management Office for Your Business (2011) outlines the basics of setting up a PMO and clearly explains how to ensure it will do exactly what you need it to do – the right things, in the right way, in the right order, with the right team.

� The Strategic Project Office (2010) lever ages research to rein force the use of a Strategic PMO as a ‘strategy manage ment centre’ to align corpor ate strategy with the project port fo lio. It is a ‘howto’ guide, focused on getting the benefit from a PMO at port fo lio level.

Figure 2.2.1 Different forms of PMO

APM Body of Knowledge 7th edition

2.2.2 Decision gates

Managed progres sion through the life cycle

The purpose of decision gates is to review and confirm viab il ity of the work across the chosen life cycle (see Section 1.2). In a linear life cycle, decision gates are eventdriven, at the end of a phase of work (Figure 2.2.2). In the case of an iter at ive life cycle, they are timebound. Many projects or programmes adopt a hybrid life cycle with a combin a tion of main decision gates at the end of major phases of work, supple men ted by interim review points to reflect the iter at ive nature of the devel op ment. In all cases, the sponsor and the wider governance board is account able for the decision to continue the work. Reviews in advance of decision gates ask four key ques tions:

� What has been achieved?

� What is required for the next stage?

� What are the key decisions to be made?

� Is the busi ness case still viable, i.e. can the desired bene fits be achieved for an accept able level of cost and risk?

Within a stan dalone project, the decision gate is dealing only with the contin ued viab il ity of that project’s busi ness case. In programmes and port fo lios, decisions will include whether to rephase or termin ate exist ing or initi ate new projects. Project profes sion als also use decision gates to request relev ant author it ies for the work, such as a finan cial or procure ment author ity. Between decision gates, the sponsor is account able for ensur ing author it ies are in place to prevent the team working out of compli ance and at risk. Additionally, decision gates provide a key commu nic a tions oppor tun ity to high light achieve ments, influ ence stake hold ers, seek support for risk responses or issue resol u tion, or gener ally gain renewed support by being on the ‘radar’ of senior stake hold ers. In iter at ive project struc tures, they provide early oppor tun it ies to engage, influ ence, valid ate bene fits, achieve buyin and mitig ate risks. The project, programme or port fo lio manager has the lead respons ib il ity to ensure read i ness for a decision gate. This includes making sure the relev ant docu ment a tion is in place and is circu lated on time, suppor ted by evid ence from assur ance reviews that have taken place. Although it is under stand able that the focus on prepar ing for decision gates is to get a ‘go’ decision, the respons ib il ity of the sponsor is to make the right decision for the organ isa tion. This may be to pause, replan or termin ate the work. All gates are inten ded to be go–nogo decision points, although in some cases a provi sional or condi tional ‘go’ will be given based on a set of condi tions that need to be fulfilled within a set time frame. The timing of the next gate is usually the last decision to be reviewed and confirmed. It is import ant the governance board under stand this in order to ensure all the relev ant decisions for the next stage have been taken and recor ded.

Chapter 2 Preparing for change

Figure 2.2.2 Typical decision gates and other reviews in a linear, product life cycle

Recommended reading

� The Project Workout: Directing and Managing Business-Led Projects (2019) outlines how to identify and over come common chal lenges, measure crit ical success factors in projects and master a staged frame work for managing a project, incor por at ing decision gates.

� Agile-stage-gate-hybrids: The next stage for product devel op ment (2016) explores the role of stage gates between phases, offer ing a partic u lar emphasis on hybrid struc tures involving linear and iter at ive combin a tions in the context of innov a tion projects. The article advoc ates that combin ing stage gates with more iter at ive or agile work methods can offer direct bene fits in terms of the process and the result ing outcomes.

� Measures for Assuring Projects (2016) was developed by the APM Assurance Specific Interest Group and offers a good set of ques tions and checks which can inform topics and areas for review at key decision gates.

APM Body of Knowledge 7th edition

2.2.3 Information manage ment

Capturing evid ence to support buy-in, learn ing and assur ance

Information manage ment is the collec tion, storage, cura tion, dissem in a tion, archiv ing and destruc tion of docu ments, images, draw ings and other sources of inform a tion (Figure 2.2.3). Projectbased working relies on accur ate and timely inform a tion for teams and stake hold ers to make informed decisions and fulfil their role in a costefficient and effect ive way. The manage ment of projects, in its simplest form, is about saying what you are going to do (plan ning) and then doing what you said you would (execut ing the plan) in a controlled way. However, project, programme or port fo lio docu ment a tion provides wider bene fits than just a tool to artic u late plans. Project profes sion als need reli able inform a tion to commu nic ate with the team and wider stake hold ers and to provide docu ment ary evid ence for assur ance. Defining inform a tion manage ment processes and respons ib il it ies is a key setup activ ity. Many organ isa tions have stand ard forms and tools to use, poten tially suppor ted by a PMO (see 2.2.1). Standard templates are useful to help the creator of the docu ment to cover all the key points, and to make it easier for review ers and those involved in assur ance and process improve ment. Project profes sion als can adapt stand ard ways of working but adapted approaches need to be docu mented in the inform a tion manage ment section of the project manage ment plan and approved by governance. As docu ments and other inform a tion are created and subsequently updated, version control is estab lished to ensure that time and money are not wasted with people working with super seded versions. Project profes sion als also:

� Establish a mech an ism for commu nic at ing changes to docu ments to relev ant stake hold ers. Where a stand ard system for docu ment control is not in place, the project profes sional creates their own way of ensur ing that stake hold ers are consul ted or informed.

� Design inform a tion storage and retrieval with access ib il ity in mind. Information that cannot be found is of no value. Establishing access rights for all project inform a tion is crit ical to uphold require ments for data protec tion and to help people access the inform a tion they need effi ciently.

� Archive inform a tion when it is super seded. Archived inform a tion provides an audit trail of changes. Information that is no longer required will even tu ally be destroyed, subject to stat utory require ments or organ isa tional policy.

The actual inform a tion required to be produced by any project, programme and port fo lio will vary accord ing to para met ers such as the purpose and complex ity of the work, stand ard processes in the invest ing organ isa tion or the life cycle and deploy ment option chosen. Iterative projects place greater emphasis on the discov ery and record ing of emer gent inform a tion rather than reli ance on preapproved plans and are likely to employ dynamic modes of captur ing such new inform a tion. Where projects are within programmes and port fo lios, a reduced admin is trat ive burden for projects may exist because inform a tion manage ment controls are imple men ted at the level of the coordin at ing frame work.

Chapter 2 Preparing for change

Recommended reading

� Essentials of Management Information Systems (2016) is a book that sets out why infor mation systems are one of the major tools avail able to project profes sion als for achiev ing oper a tional excel lence, devel op ing new products and services, improv ing decisionmaking and achiev ing compet it ive advant age.

� Ethical Data and Information Management: Concepts, Tools and Methods (2018) is concerned with how inform a tion is managed, processed and governed in a sens it ive and ethical fashion. The book offers prac tical, action able methods and tools for imple ment ing inform a tion manage ment within organ isa tions. The ethical perspect ive which frames the concepts and methods on offer is both timely and unique.

� Records and Information Management (2018) is an extens ive guide to using records and inform a tion manage ment (RIM). The key prin ciples advoc ate a focus on artic u lat ing the useful life of inform a tion and getting rid of it as soon as there is no longer a legit im ate reason to hold on to it.

Figure 2.2.3 Scope of inform a tion manage ment

APM Body of Knowledge 7th edition

2.2.4 Audits and assur ance

Ensuring decisions are based on evid ence

Assurance is the process of provid ing confid ence to stake hold ers that projects, programmes and port fo lios will achieve their object ives and realise their bene fits. Assurance focuses on ensur ing that the governance, processes and controls that are planned are fit for purpose, and that they are imple men ted as planned. Assurance is a comple ment ary prac tice along side quality plan ning to control and assure that project outputs meet require ments (see 4.1.2 and 4.1.5). Assurance is most effect ive when a riskbased approach is taken, with the riski est aspects of the manage ment processes and envir on ment being subject to the most rigor ous assur ance processes (Figure 2.2.4). For example, assur ance may be required to valid ate that the project manager and team have the right exper i ence, or that the organ isa tion has appro pri ate systems in place to provide the neces sary manage ment inform a tion for investors. An import ant tool to provide assur ance is audit. A key prin ciple is that the auditor is inde pend ent of the area being audited. Auditors are commonly deployed from a project, programme or port fo lio manage ment office (PMO), from a wider organ isa tional internal audit func tion or from a thirdparty provider (typic ally, a consultancy or an accred it a tion body). Agreeing the scope of the audit with relev ant stake hold ers is crit ical before work commences. The auditee is the person who will have respons ib il ity for respond ing to audit find ings. Thereafter, audit ors seek evid ence of compli ance with the planned arrange ments that are in scope. Findings may include major or minor devi ations from plan, obser va tions of proced ural irreg u lar it ies or obser va tions that the auditor believes will help the audit ees to perform more effect ively in future. Typically, organ isa tions will have a way of report ing audit find ings by grading the sever ity of devi ation from planned arrange ments. Reporting systems based loosely on traffic lights are commonly used with major nonconformances classed as red, inter me di ate as amber, minor as green and, some times, obser va tions as blue. Audit find ings are docu mented and agreed with the auditee, who commits to respond to agreed find ings within an agreed times cale. Assurance is not a decisionmaking func tion in its own right. Actions may include replan ning the work, putting in place new controls or adjust ing the team. Followup audits to confirm suit able action has been taken is typical prior to clos eout of the audit. Assurance can also involve reviews that are not classed as formal audits, but that gather inform a tion to inform decision gates (see 2.2.2) such as a design review, or other require ments of the relev ant governance board (see 1.3.10). The prin ciple of using inde pend ent review ers remains. To achieve this, many organ isa tions deploy teams of review ers that are peers of the deliv ery team, for example a project manager or a cost estim ator from a differ ent project or depart ment.

Chapter 2 Preparing for change

Recommended reading

� Measures for Assuring Projects (2016) is a toolkit developed by the APM Assurance Specific Interest Group. It is designed as a refer ence for assur ance prac ti tion ers. It provides a generic basis for the assur ance of projects, programmes and port fo lios.

� Project Performance Review: Capturing the Value of Audit, Oversight and Compliance for Project Success (2018) devel ops a new approach for conduct ing effect ive perform ance reviews and audits. The approach is concerned with identi fy ing import ant improve ment oppor tun it ies, shaping the envir on ment by stake hold ers and the tech nical team and leading project and organ isa tional manage ment prac tices in order to give stake hold ers confid ence in the control and deploy ment of their projects.

� Auditing agile projects can intro duce new chal lenges. Agile Governance and Audit: An Overview for Auditors and Agile Teams (2014) attempts to bridge the gap offer ing prac tical audit able sugges tions related to each major phase in agile devel op ment projects, includ ing initi ation, require ments, build ing and testing, handover to busi ness and governance.

Figure 2.2.4 Adopting a risk-based approach to plan ning assur ance

Source: A Guide to Integrated Assurance (2014)

APM Body of Knowledge 7th edition

2.2.5 Knowledge management

Connecting people to create insight and use knowledge to improve outcomes

Knowledge management is a holistic, crossfunctional discipline and set of practices concerned with the way organisations create and use knowledge to improve outcomes (Figure 2.2.5). It can be applied within and between projects, programmes, portfolios and organisations and across extended and product life cycles. Working with knowledge, project professionals can add value by, for example:

� anticipating, understanding and responding to changing conditions;

� avoiding repetition of mistakes;

� generating options and solutions;

� supporting decisionmaking processes;

� enabling benefit realisation.

To use knowledge successfully to improve outcomes, there are some principles that are important for project professionals to remember:

� Knowledge is intangible and complex and encompasses much more than documents or information. It exists in people and can be tacit and difficult to express (e.g. insights) or explicit and easy to express (e.g. formulae).

� Because knowledge is intangible, it cannot be managed directly. Knowledge management focuses on supporting people to share what they know, learn from others and contribute ideas.

� It is important to be clear about the objective of knowledge management interventions, and to determine whether the focus is on creating new or using existing knowledge. Both involve sharing knowledge, but each is enacted and managed in different ways.

� Knowledge creation requires an environment of shared purpose, trust and autonomy.

� The use of existing knowledge works best in an ordered and controlled environment. Codifying knowledge is rarely enough to create shared understanding.

� There is no onesizefitsall knowledge management solution. Knowledge management is tailored to the needs and contexts of specific projects, programmes, portfolios and organisations.

� Although knowledge management needs to be planned throughout project and programme life cycles, it is also an iterative, evolutionary and adaptive process driven by feedback.

� Technology can support and enhance interactions between people. This implies active use of technology to enrich interactions rather than passively collecting lessons learned in databases.

Chapter 2 Preparing for change

� A supportive culture in which knowledge and learning are valued is essential for effective knowledge management. Leadership, diversity, structure and governance all affect this culture. Knowledge management benefits from tangible and explicit support. Although knowledge management is everyone’s responsibility, it is most effective when actively championed by the sponsor and supported by a PMO.

These principles highlight that knowledge management is reliant on connecting people, sometimes with the support of documents and other information. Methods include peer ‘assists’ or reviews, facilitated problemsolving workshops, ideas generation sessions and communities of practice (see 2.2.6).

Recommended reading

� BS ISO 30401:2018 Knowledge management systems. Requirements (2018) is the international standard for knowledge management. It sets requirements and provides guidelines for establishing, implementing, maintaining, reviewing and improving an effective management system for knowledge.

� Managing knowledge in project environments (2019) is a definitive short guide to knowledge management in projects, programmes and portfolios. The book presents knowledge management as a series of principles, choices and contextual factors – providing readers with a framework for understanding and thinking about what knowledge management means for their context, projects and working environment.

� Managing knowledge work and innovation (2009) is a comprehensive, fairly academic guide to knowledge work. It connects knowledge and knowledge management theories to work practices, using multiple perspectives and case studies. Good for readers who want to understand the complexity and theoretical underpinning of knowledge management.

Figure 2.2.5 Nature of work and the working environment

Source: Managing Knowledge in Project Environments (2019)

Figure 2.2.5 ‘Nature of work and the working environment’ from Managing Knowledge in Project Environments by Judy Payne, Eileen Roden & Steve Simister, Routledge, 2019. Reproduced with permission of The Licensor through PLSclear.

APM Body of Knowledge 7th edition

2.2.6 Communities of prac tice

Investing in people and know ledge

Communities of prac tice are a type of learn ing network, widely used within and between organ isa tions to main tain, develop and share know ledge (Figure 2.2.6). As they both create and support the use of know ledge, they are often considered to be the most effect ive know ledge manage ment method. Three char ac ter ist ics distin guish communit ies of prac tice from work teams, networks and other types of community. In a community of prac tice:

� There is a focus on know ledge in a specific domain, for example risk manage ment or thin film solar panels.

� Members form a community through regular inter ac tion that builds rela tion ships that provide the social basis for learn ing, and for creat ing and sharing know ledge, includ ing tacit know ledge.

� Members are active prac ti tion ers in the domain. They have a shared prac tice: shared exper i ences, shared language, shared stories and shared approaches to solving prob lems.

Shared prac tice distin guishes communit ies of prac tice from communit ies of interest, where it is not neces sary for members to be active prac ti tion ers. Regular inter ac tion and strong rela tion ships distin guish communit ies of prac tice from looser networks. Communities of prac tice member ship typic ally spans organ isa tional bound ar ies, hier arch ies and other organ isa tional struc tures. They can be formal or informal, emer gent or planned and of any size. Some communit ies of prac tice have spon sors, object ives and targets; others are left to their own devices. In most communit ies of prac tice, members fill defined lead er ship, manage ment, coordin a tion and tech nical roles. Facilitation and lead er ship are key to communit ies of prac tice success. In projectbased working, communit ies of prac tice bring continu ity and stabil ity across and between tempor ary teams. This doesn’t mean their know ledge or member ship is stable: both are dynamic, but because communit ies of prac tice know ledge is collect ive (it exists in the network of rela tion ships), the communit y of prac tice is a resource for tempor ary teams to draw from. Examples of the way in which project profes sion als can contrib ute to and use communit ies of prac tice are:

� as guard i ans or stew ards of domain know ledge;

� as a hub mech an ism for sharing know ledge between projects and programmes;

� to prevent know ledge loss when project teams are disban ded or people leave the organ isa tion;

� as a source of advice and guid ance for project and programme teams;

� to solve prob lems, includ ing troubleshoot ing and resolv ing issues;

� to manage knowledgerelated risks, such as unfore seen know ledge gaps;

� to develop and improve project manage ment processes;

Chapter 2 Preparing for change

� process and product innov a tion;

� as a source of motiv a tion and profes sional satis fac tion and continu ing profes sional devel op ment (CPD) for members (see 3.3.6).

Communities of prac tice are an invest ment in know ledge. Support ing and encour aging them is a good invest ment in the success and matur ity of projectbased working. As a result, time alloc ated for members to manage and engage in communit ies of prac tice activ it ies and for people to use communit ies of prac tice resources is a good invest ment.

Recommended reading

� Introduction to Communities of Practice (2015) is a compre hens ive and access ible intro duc tion coauthored by Etienne Wenger, the origin ator of the term ‘communit ies of prac tice’. It includes examples, answers to frequently asked ques tions, links to addi tional resources and a further reading list of Wenger’s highly respec ted books and articles.

� Harnessing your staff’s informal networks (2010) summar ises the way communit ies of prac tice have developed from informal, unstruc tured groups into a formal mech an ism for coordin at ing work across organ isa tional bound ar ies. A good, quick read, with examples and prac tical tips.

� Buzzing Communities: How to Build Bigger, Better, and More Active Online Communities (2012) is a detailed, prac tical guide based on exper i ence and research. Although the book is about managing online communit ies of all types, many of the prin ciples and concepts also apply to facetoface communit ies. Good for community managers.

Figure 2.2.6 Single community of prac tice showing poten tial bene fits/func tions

Source: Created by Judy Payne for the APM Body of Knowledge.

APM Body of Knowledge 7th edition

2.2.7 Maturity of prac tice

Investing in the predict ab il ity of deliv er ing results

Organisations that invest heavily in projectbased working to create value want all their invest ments to succeed. The reality is that some projects fail to meet some or all of the inten ded object ives and bene fits. Developing projectbased matur ity is about under stand ing current capab il it ies, processes and beha viours and identi fy ing a struc tured path to increase the effi ciency, effect ive ness and predict ab il ity of success. An assess ment of matur ity typic ally involves the use of a bench mark in the shape of a matur ity model. Most models are based on the Capability Maturity Model (CMM®) origin ally developed at Carnegie Mellon University for meas ur ing supplier capab il ity and assum ing that processes for projectbased working can be defined and controlled (Figure 2.2.7):

Level 1 – Initial: The deploy ment of capab il ity is ad hoc and occa sion ally chaotic. Few processes are defined and success depends on indi vidual effort and heroics.

Level 2 – Repeatable: Basic processes are estab lished and the neces sary discip line is in place to repeat earlier successes.

Level 3 – Defined: Processes are docu mented and stand ard ised. All projects, programmes or port fo lios use an approved, tailored version of the docu mented processes.

Level 4 – Managed: Metrics are gathered on process perform ance and used to control future perform ance.

Level 5 – Optimising: Continuous process improve ment is enabled by quant it at ive feed back from the process and from pilot ing innov at ive ideas and tech no lo gies.

An organ isa tion’s matur ity can be defined separ ately for projects, programmes and port folios. For example, an organ isa tion may be at Level 3 for the manage ment of projects but only at Level 2 for the manage ment of programmes. To get a richer assess ment of matur ity, prac tices can be further divided into key process areas, or perspect ives, such as risk, bene fits, stake holder engage ment, project culture, schedul ing, etc. Each perspect ive will have its own attrib utes that are indic at ive of a partic u lar matur ity level. Focusing on address ing partic u lar prac tices can be a good way of driving improve ment in a manage able way, for example to move risk manage ment from a bureau cratic and ‘tickbox’ exer cise to one that contrib utes directly to decisionmaking. Organisations that aspire to deliver projects, programmes and port fo lios effect ively and effi ciently tend to aim to achieve and sustain Level 3 as a minimum. Achieving higher levels of matur ity requires signi fic ant invest ment in time, resource and form al isa tion of process, so a formal invest ment decision to eval u ate the cost/risk/benefit tradeoff of higher levels of matur ity is warran ted in most organ isa tions. Often, the decision to invest in increas ing matur ity tends to be driven by compet it ive demands. Many matur ity models on the market enable bench mark ing across sectors. Continuously improv ing matur ity of prac tice requires spon sor ship and commit ment from senior leaders and is usefully managed as a project or programme in its own right.

Chapter 2 Preparing for change

Recommended reading

� Models to Improve the Management of Projects (2007) compiled by APM provides a short guide to the history and bene fits of matur ity models and offers point ers to a number of altern at ive approaches that organ isa tions can take.

� CMMI® Development, V2.0 Driving Performance through Capability (2018) describes prac tices that help organ isa tions to improve their processes and busi ness capab il ity. This tech nical report and matur ity model developed by the Software Engineering Institute (SEI) based at Carnegie Mellon University provides a compre hens ive integ rated set of good prac tices required to improve capab il it ies, products and processes in order to drive busi ness results and optim ise busi ness perform ance in an increas ingly demand ing busi ness setting.

� Chapter 38 of the Gower Handbook of Programme Management (2016) is dedic ated to assess ing and improv ing programme manage ment matur ity. It offers a sixlevel indic a tion of matur ity across differ ent aspects of programme manage ment includ ing stra tegic align ment, sponsor’s and project manager’s compet ence, bene fits, stake hold ers and governance.

Figure 2.2.7 Five stages of matur ity

APM Body of Knowledge 7th edition

Full refer ences for Section 2.2

2.2.1 Crawford, J. K. and CabarisBrewin, J. (2010) The Strategic Project Office, 2nd edition. Boca Raton, FL: CRC Press.

Hill, G. M. (2013) The Complete Project Management Office Handbook, 3rd edition. Boca Raton, FL: CRC Press.

Taylor, P. (2011) Leading Successful PMOs: How to Build the Best Project Management Office for Your Business. Farnham: Gower Publications.

2.2.2 APM Assurance Specific Interest Group (2016) Measures for Assuring Projects. Princes Risborough: Association for Project Management.

Buttrick, R. (2019) The Project Workout: Directing and Managing Business-Led Projects, 5th edition. Abingdon: Routledge.

Cooper, R. G. (2016) Agilestagegatehybrids: The next stage for product devel op ment. Research Technology Management, 59(1), 21–29.

2.2.3 Franks, P. C. (2018) Records and Information Management, 2nd edition. Chicago, IL: American Library Association.

Laudon, K. and Laudon, J. (2016) Essentials of Management Information Systems, 12th edition. London: Pearson.

O’Keefe, K. and Brien, D. O. (2018) Ethical Data and Information Management: Concepts, Tools and Methods. London: Kogan Page.

2.2.4 APM Assurance Specific Interest Group (2016) Measures for Assuring Projects. Princes Risborough: Association for Project Management.

Nalewaik, A. and Mills, A. (2017) Project Performance Review: Capturing the Value of Audit, Oversight and Compliance for Project Success. Abingdon: Routledge.

Wright, C. (2014) Agile Governance and Audit: An Overview for Auditors and Agile Teams. Ely: IT Governance Publishing.

2.2.5 British Standards Institute (2018) BS ISO 30401: 2018 Knowledge management systems. Requirements. London: BSI.

Newell, S., Robertson, M., Scarbrough, H. and Swan, J. (2009) Managing Knowledge Work and Innovation. Basingstoke: Palgrave Macmillan.

Chapter 2 Preparing for change

Payne, J., Roden, E. and Simister, S. (2019) Managing Knowledge in Project Environments. Abingdon: Routledge.

2.2.6 McDermott, R. and Archibald, D. (2010) Harnessing your staff’s informal networks. Harvard Business Review, March.

Millington, R. (2012) Buzzing Communities: How to Build Bigger, Better, and More Active Online Communities. London: FeverBee.

WengerTrayner, E. and WengerTrayner, T. (2015) Introduction to Communities of Practice. Available at: http://wengertrayner.com/introductiontocommunitiesofpractice (accessed 22 January 2019).

2.2.7 Association for Project Management (2007) Models to Improve the Management of Projects. Princes Risborough: Association for Project Management.

Lock, D. and Wagner, R. (2016) Gower Handbook of Programme Management, 2nd edition. Abingdon: Routledge.

Software Engineering Institute (2018) CMMI® Development, V2.0 Driving Performance through Capability. Carnegie Mellon University.

Chapter 2 Preparing for change

2.3 Transition into use

Ultimately, the organ isa tional return on invest ment from projectbased working is accom plished when the partic u lar outputs of projects are trans formed into organ isa tional outcomes of benefit to stake hold ers. The approach adopted for trans ition of projectbased outcomes into use in businessasusual is closely linked to the chosen life cycle, so many vari ants are possible. In all cases, the temporary change team is challenged to influence the recipients of change in the permanent organisation so that new processes, products, systems or ways of working are adopted. People, either within the projectbased organisation, or in a businessasusual role, work throughout the life cycle to prepare the ground for successful handover of project outputs and adoption of those outputs to realise benefits. Sometimes, projectwork does not end as planned. Early closure of projects, rather than being viewed as bad, is more suit ably considered as a good organ isa tional decision to prevent further invest ment into work that is unlikely to yield the desired bene fits. In some sectors, this is vital and a posit ive organ isa tional capab il ity. Other unplanned endings are also possible and need to be managed creat ively. And because projects and programmes are tran si ent endeav ours, the managed closure of the work – whether as planned or earlier – is work to be done to bring the invest ment to a tidy close. This admin is trat ive aspect of bring ing projects, programmes or port fo lios to a managed ending is work of funda mental import ance for a whole range of reasons from future learn ing to talent manage ment to the avoid ance of ongoing contract claims or conflict in the supply chain. This section will be of partic u lar interest to project, programme and port fo lio leaders think ing about how to manage the end of projects and trans ition from the tempor ary team to the perman ent organ isa tion. It addresses:

2.3.1 Business read i ness: Preparing the ground for success ful handover and adop tion

2.3.2 Transition of project outputs: Ensuring that outputs enable the inten ded bene fits

2.3.3 Adoption and bene fits real isa tion: Creating the ‘new normal’ in line with the busi ness case

2.3.4 Unplanned project endings: Knowing when closure of the original project is the right busi ness decision

2.3.5 Administrative closure of projects: Shut down of all deployment activ ity and corpor ate accept ance of comple tion

2.3.6 Closing programmes and port fo lios: Retiring coordin at ing frame works for projects when they cease to add value

APM Body of Knowledge 7th edition

2.3.1 Business read i ness

Preparing the ground for success ful handover and adop tion

All projects and programmes, whether managed within port fo lios or not, have a singu lar purpose of bring ing about changed capab il it ies within one or many organ isa tions, or across wider society. Where a project is posi tioned in a supplier organ isa tion, its purpose, nonethe less, is to deliver bene fits to the invest ing organ isa tion/client. Although there are differ ences in the amount of busi ness change that is needed to deliver the bene fits defined in the busi ness case, busi ness read i ness is applic able in most cases. Business read i ness is best thought of as a continu ous activ ity through the chosen life cycle – not a phase near the end. This is because the recip i ents of change, the people who the organ isa tion wants to ‘receive’ and use the project outputs, and do things differ ently to realise bene fits, can make or break an other wise ‘success ful’ project or programme. A change impact analysis is there fore a useful exer cise for project profes sion als to start in early life cycle, ideally before the major invest ment decision point, where funds are commit ted, and expect a tions of value are set (Figure 2.3.1). Business read i ness activ it ies are some times carried out from within the project team. More often they are carried out from within a programme team or by business asusual people. Such people may be referred to as the ‘busi ness change lead/manager’. Techniques such as change impact analysis are used to under stand:

� phys ical or process impacts of the project on the wider system;

� gaps in know ledge and skill that needs to be addressed;

� feel ings about the change in oper a tion.

One of the distinct advant ages of an iter at ive life cycle is to build stake holder buyin on an ongoing basis, whether this be collab or at ive input to a design or ideas from businessasusual about the imple ment a tion sched ule. Assessing and improv ing the read i ness of people in the busi ness for change requires project profes sion als to:

� proact ively engage with people to under stand the processes and routines performed in businessasusual;

� listen to and appre ci ate the perspect ives of dissent ing voices – not react ing to perceived ‘resist ance’ to change as if it is illo gical or ille git im ate;

� identify, empower and motiv ate cham pi ons for the ‘new normal’ – ideally, people with highly developed skills of engage ment and influ en cing, facil it a tion and conflict resol u tion (see 3.1.3, 3.1.4, 3.1.5).

The rela tion ship between the people respons ible for deployment of new capab il it ies and those respons ible for busi ness read i ness and adop tion in businessasusual is care fully managed as part of governance to ensure both sets of activ it ies are aligned in order to secure the prom ised bene fits. The sponsor is a key cham pion of this work to align the tempor ary project/programme team and the func tional and oper a tional teams in the busi ness.

Chapter 2 Preparing for change

Recommended reading

� The APMs Enabling Change Specific Interest Group guide Introduction to Managing Change (2017) includes specific advice on busi ness read i ness. Inside, readers will find key prin ciples and prac tices, as well as guid ance on the appro pri ate applic a tion of differ ent change manage ment meth od o lo gies.

� Leading Change (2012) is the exten ded version of John Kotter’s classic work, first published in Harvard Business Review in 1995. It is both a vision ary guide and prac tical toolkit on how to how to approach the diffi cult, yet crucial work of leading change in any type of organ isa tion.

� Change Ready: How to Transform Change Resistance to Change Readiness: A Manager’s Guide to Managing and Sustaining Change in the 21st-Century Workplace (2011) provides managers with a prac tical stepbystep guide to imple ment ing and sustain ing change. Readers will gain insight into the personal reac tions that cause resist ance to change and learn what to do to minim ise resist ance, maxim ise read i ness and create a change ready culture.

Figure 2.3.1 Enabling progress ive commit ment over time

Source: Introduction to Managing Change (2017)

APM Body of Knowledge 7th edition

2.3.2 Transition of project outputs

Ensuring that outputs enable the inten ded bene fits

The transition of project outputs happens when the project team have delivered what they were supposed to, and the sponsor and busi ness users are ready to accept those deliv er ables (Figure 2.3.2). This typic ally occurs in the final phase of a linear project life cycle. In an iter at ive life cycle, the handover of outputs can occur as and when they are deemed accept able by the sponsor or product owner. In all cases, transition trig gers the begin ning of adop tion, use and benefit real isa tion (see 2.3.3). Transition plan ning starts at the begin ning of a project. Information provided by the invest ing organ isa tion is used to shape solu tions and plans, includ ing details of what needs to be ‘handed back’ to the organ isa tion at the point of trans ition. Information provided to the project team could include arte facts such as user manuals, oper at ing proced ures, asset registers and archi tec tural draw ings that will be changed as part of the project before return ing to oper a tional use. As part of the transition process, the deliv er ables, with assur ance evid ence (see 1.3.2 and 2.2.4) are prepared for passing over to the sponsor and the user. The project manager organ ises testing of compon ent deliv er ables as part of imple ment a tion in a safe, nonoperational mode. These tests may be of phys ical items, soft ware, docu ment a tion or less tangible deliv er ables such as coach ing for the businessasusual team to help them adopt changed beha viours. Following success ful offline testing, the complete set of deliv er ables is carried out in an oper a tional mode, usually with the people involved in the businessasusual activ it ies. If the deliv er ables meet the accept ance criteria, the project outputs are form ally accep ted by the sponsor. The sponsor may want to adopt differ ent transition strategies, depend ing on the project output, situ ational context, stra tegic prior ity and the capa city of the organ isa tion to accept the transition. For example, there could be a phased adop tion of a new IT system that requires signi fic ant train ing, know ledge trans fer and changes to job roles. In all cases, plans for accept ance and transition are prepared and agreed in the project manage ment plan. The transition process may also include:

� accept ance of all pertin ent docu ment a tion (contain ing all prescribed inform a tion related to the deliv er ables, includ ing guar an tees and warranties);

� accept ance certi fic ate(s) signed by the sponsor;

� trans fer of respons ib il ity for the deliv er ables from the project team to the sponsor or users;

� formal trans fer of owner ship.

On highrisk projects, the project team and sponsor also develop contin gency plans, in case the initial transition does not proceed as expec ted. Contingency could form part of a post implementation support or warranty arrange ment between the project team and sponsor organ isa tion, or as part of a wider programme or port fo lio. As outputs are handed over success fully, it may be a while before the full bene fits are real ised. Work to monitor and track bene fits real isa tion through to comple tion is owned by the sponsor.

Chapter 2 Preparing for change

Recommended reading

� The APM Governance Specific Interest Group guide on Sponsoring Change (2018) explains the import ance of the role of the sponsor and their account ab il ity for the real isa tion of desired outcomes and bene fits from any invest ment.

� The APM Specific Interest Group for Planning, Monitoring and Control guide on Planning, Scheduling, Monitoring and Control (2015) contains a specific section on the transition of projects. It offers prac tical guid ance on plan ning transitions based on best prac tices.

� The APM Earned Value Management Specific Interest Group Earned Value Management Handbook (2013) describes some of the issues in the manage ment of transition of project deliv er ables.

Figure 2.3.2 Activities involved in project transition

Source: Adapted from Planning, Scheduling, Monitoring and Control (2015)

APM Body of Knowledge 7th edition

2.3.3 Adoption and bene fits real isa tion

Creating the ‘new normal’ in line with the busi ness case

Every project, whether managed alone or as part of a programme or port fo lio, reaches a point where the outputs have been handed over or transitioned into businessasusual, and these need to be used to realise the bene fits that the organ isa tion inves ted in (Figure 2.3.3). This may be at the end of the work, or during the work in the case of projects and programmes that use an iter at ive life cycle and are able to deliver inter me di ate bene fits early and incre ment ally, poten tially by concen trat ing on creat ing a minimum viable product. Adoption is depend ent on the recip i ents of the change being ready to accept and use the outputs in the inten ded way (see 2.3.1). Ongoing support is usually also needed to ensure that new routines are estab lished that use the new process/system/product/ways of working in the inten ded way. Some organ isa tions manage this work through their normal busi ness oper a tions. Others choose an ‘exten ded life cycle’ deployment approach for a single project or programme that ensures that account ab il ity and governance of the invest ment stays with the change team until fully embed ded. Organisations that are commit ted to driving through the real isa tion of bene fits devise methods for track ing and meas ur ing the bene fits that were prom ised at the last decision gate and included in the busi ness case. It is at the point of adop tion that any failure to keep the busi ness case up to date in the light of changes during the process will be high lighted – the type or quantum of benefit may well change over time and expect a tions need to be managed through governance. Project profes sion als, together with the sponsor, agree what bene fits are tracked and how. This happens in early life cycle to enable the neces sary baseline meas ures to be set up. Some bene fits are tracked using qual it at ive indic at ors, for example customer satis fac tion scores, in addi tion to finan cial or nonfinancial quan ti fic a tion, for example increased reven ues, or percent age increase in propos als that are conver ted into sales. At port fo lio level, the bene fits score card is likely to closely mirror the overall perform ance indic at ors for the organ isa tion, with indi vidual projects or programmes within the port fo lio contrib ut ing indi vidu ally and syner gist ic ally to the overall change in perform ance. For indi vidual projects or programmes, bene fits are likely to be a subset of the organ isa tion’s perform ance indic at ors and it is vital to ensure that the benefit meas ures estab lished do not drive unin ten ded beha viours, for example increas ing oper a tional costs in one area to show a saving that can be attrib uted to a project. The sponsor is account able for ensur ing that bene fits track ing and report ing is effect ive as a part of good governance. This applies irre spect ive of whether bene fits are being real ised as planned or not.

Chapter 2 Preparing for change

Recommended reading

� The APM’s Benefits Management Specific Interest Group guide A Guide to Using a Benefits Management Framework (2019) shares prac tical ways to manage bene fits manage ment from end to end.

� Managing Successful Programmes (2011) includes useful advice on the full bene fits manage ment process set in the context of managing programmes of projects and business asusual activ it ies.

� Harvard Business Review 10 Must-Reads on Change Management (2011) is a compen dium of 10 leading articles on the manage ment of change published in Harvard Business Review over the past years. It includes a number of differ ent researchled perspect ives on why organ isa tions find it diffi cult to adopt change, with sugges tions about how to address these.

Figure 2.3.3 The bene fits real isa tion cycle

Source: Adapted from Managing Benefits (2012)

Figure 2.3.3 ‘The benefits realisation cycle’ adapted from Managing Benefits by Stephen Jenner, APMG International, 2012. Reproduced with permission.

APM Body of Knowledge 7th edition

2.3.4 Unplanned project endings

Knowing when closure of the original project is the right busi ness decision

If projects exist to bring about planned object ives, then it follows that as circum stances change over time, not all projects are able to achieve those organ isa tional object ives. In such a situ ation, it is logical to close the project early to divert invest ment away from some thing that is no longer a prior ity, towards a more useful oppor tun ity (Figure 2.3.4). The use of decision gates (see 2.2.2) is one way in which the governance process ensures that invest ment does not continue if there is no longer a viable busi ness case. However, for governance to be effect ive, the culture of the organ isa tion needs to be one where early project closure is seen as a posit ive decision, not a failure. Many sectors under stand this and the concept of ‘failing fast’ is built into plan ning and decisionmaking processes, for example in drug devel op ment where many prom ising compounds will enter the port fo lio but those that will not make it through full clin ical trials and come to market are stopped as early as possible. Many projects may look prom ising but cease to become so when more inform a tion is known. It is not wrong to start some thing when the outcome is uncer tain. It is wrong to continue when the evid ence is that suffi cient value cannot be created. Sponsors of projects, programmes and port fo lios are respons ible for devel op ing governance approaches that help the decision to close projects early. To enable spon sors and project profes sion als to do the right thing, senior organ isa tional leaders can:

� create incent ives and ‘safety nets’ for teams;

� cham pion the sharing of know ledge;

� look for ways for other teams (in projects or oper a tions) to benefit from the people or other nonhuman resources that become avail able unex pec tedly;

� provide support for managing stake holder rela tion ships in key suppli ers who are affected;

� give their name to internal commu nic a tions, explain ing what has happened and why.

Within a programme or port fo lio struc ture, projects may be replanned to facil it ate wider object ives and bene fits, for example:

� to bring forward a capab il ity to build early commit ment to change in the busi ness;

� to resched ule a project to a time where it can be resourced.

In a programme or port fo lio, closing projects needs to be seen within the context of the overall change and bene fits sought and should not be viewed as failure but as an oppor tun ity for better util isa tion of resources. For this to be success ful, indi vidual perform ance object ives for spon sors and managers need to reflect where projects have been closed early in order to support wider organ isa tional object ives.

Chapter 2 Preparing for change

Conversely, some projects, espe cially devel op ment projects util ising exten ded life cycles or posi tioned as part of a stra tegic port fo lio, may require funded exten sions or newly defined sub projects to respond to oppor tun it ies, develop new features or extend the scope of inten ded work.

Recommended reading

� Project Management (2013) covers most aspects related to managing projects. Chapter 28 focuses on project closure, includ ing consid er a tion of differ ent reasons and rationales for closing projects and the need for asbuilt data records for projects termin ated prema turely, in case custom ers subsequently decide to resur rect them.

� Managing Project Ending (2009) is dedic ated to explor ing the differ ent scen arios for project ending, emphas ising that ending entails more than simply closing the effort. While the book is focused on devel op ing a project ending as a strategy and a compet ence, it explores prema ture termin a tion, late termin a tion and nontermination, in addi tion to planned termin a tion.

� Enforcing stra tegic fit of project port fo lios by project termin a tion: An empir ical study on senior manage ment involve ment (2012) is a research paper assert ing that senior managers should termin ate projects no longer conform ing to corpor ate strategy to ensure stra tegic fit and indic at ing that such involve ment can affect their new construct of project termin a tion quality.

Figure 2.3.4 Closing projects when they are no longer justi fied is good prac tice

APM Body of Knowledge 7th edition

2.3.5 Administrative closure of projects

Shut down of all deployment activ ity and corpor ate accept ance of comple tion

As the project team disperses after the deployment activ ity is completed, it is vital that the sponsor ensures that admin is trat ive closure of each project happens effect ively. Administrative closure typic ally takes the form of a project clos eout report that will be endorsed by governance through a final decision gate approval (Figure 2.3.5). The sponsor is account able for the report but work to produce the report is often commis sioned from a project, programme or port fo lio manage ment office (PMO). A typical project clos eout report contains:

� evid ence that the project has delivered its inten ded outputs and has been accep ted by the relev ant part of businessasusual;

� a state ment from the sponsor that bene fits in the last approved busi ness case have been real ised or there is a plan in place to do so;

� evid ence that any contracts have been completed;

� inform a tion about any resid ual matters that need to be picked up by corpor ate governance or future busi ness plan ning.

Document archiv ing require ments are defined through a combin a tion of the project manage ment plan, corpor ate policy and stat utory require ments (see 3.3.4). The sponsor ensures that these require ments are satis fied and that archiv ing arrange ments stip u late reten tion periods and disposal require ments. As the project approaches closure, staff need to be reas signed. During their time on the project, team members may have acquired new skills and project profes sion als facil it ate discus sions to help indi vidual staff members to update their personal records and to work through how to use their learn ing in future. Some staff members may be redund ant and their exit from the organ isa tion is planned and imple men ted by project profes sion als working with human resource colleagues in advance. Where a project exists within a wider programme or port fo lio, the respons ible manager is made aware of the oppor tun ity to utilise skills trans fer ring out of closing projects. Where a project is stan dalone, the wider busi ness (through the human resources/talent manage ment func tion) needs to be advised of the avail able trans fer ring skills (see 1.3.9). An essen tial part of admin is trat ive closure is the final isa tion of all supplier contracts. It is the respons ib il ity of the project profes sional to obtain any postdeployment tech nical docu ment a tion and asbuilt data that is a require ment of each supplier’s contract and to ensure that it is distrib uted as required within the owner organ isa tion. Formal closure of contracts in the supply chain also needs to be facil it ated. This comprises formal confirm a tion, in accord ance with the prevail ing governance arrange ments, that all the suppli ers’ oblig a tions have been met and that the final accounts have been agreed. Any ongoing disputes that prevent final account agree ment may be passed to a commer cial or legal team outside the project struc ture in order that project closure is not unne ces sar ily protrac ted.

Chapter 2 Preparing for change

When all project liab il it ies have been discharged, the sponsor closes the project accounts and returns any surplus funding to the busi ness.

Recommended reading

� APM’s Planning, Monitoring and Control Specific Interest Group guide Planning, Scheduling, Monitoring and Control (2015), describes handover and clos eout activ ity in section 30 and usefully differ en ti ates between the separ ate but closely related nature of handover and clos eout.

� Praxis Framework (2015), published by APM, part 3, deals with compet en cies for the manage ment of projects. In this section, there is specific consid er a tion of the compet en cies required for project and programme closure, which includes proposed perform ance criteria and requis ite support ing know ledge.

� Project Management (2013), chapter 28, offers advice and guid ance regard ing project closure, includ ing cost cutoff, disposal of surplus mater i als, author ising of postproject expendit ure, project closure docu ment, final project cost records and other docu ment a tion. It also addresses asbuilt condi tion of a multiple manu fac tur ing project, secur ity and the manage ment of files and archives.

Figure 2.3.5 Key elements of project closure

Source: Planning, Scheduling, Monitoring and Control (2015)

APM Body of Knowledge 7th edition

2.3.6 Closing programmes and port fo lios

Retiring coordin at ing frame works for projects when they cease to add value

As described in 1.1.5, programmes and port fo lios have distinct object ives as coordin at ing frame works for collec tions of projects and other organ isa tional activ it ies. Closure of a programme is justi fied if:

� all the outcomes required are delivered;

� the busi ness case is no longer viable;

� resid ual work would be better delivered as part of another project or programme in the port fo lio.

In cases where all outcomes are delivered and the programme has fulfilled its inten ded func tion, the admin is trat ive arrange ments for closure are similar to those for admin is trat ive closure of a project as described in topic 2.3.5, includ ing a formal review of achieve ments and organ isa tional learn ing (Figure 2.3.6). In organ isa tions where a stra tegic port fo lio approach is used in the deployment of change, it would not be typical to close the port fo lio, rather the constitu ent parts of the port fo lio would continue to change over time. There are occa sions when a port fo lio may close, for example, where an organ isa tion has pursued a period of change under one leader and decides to pause to think about the next phases of its devel op ment. Alternative situ ations exist where the utility of main tain ing a programme or port fo lio struc ture will dimin ish as their constitu ent projects reduce in number having achieved comple tion. A point is reached where the costs of main tain ing a manage ment and admin is trat ive struc ture at programme/port fo lio will outweigh the bene fits. When this point is reached, the struc ture is disban ded. Assessing when this point has been reached is the respons ib il ity of the sponsor, poten tially suppor ted by the PMO. Together, they advise governance, to the author ity level empowered, to make the decision to disband on behalf of the busi ness. The governance and admin is trat ive arrange ments relat ing to any continu ing projects within the closed programme or port fo lio are then recon figured. Arrangements to consider are:

� Rationalisation of the governance plan to reas sign the roles and respons ib il it ies to other elements of the busi ness.

� Reconfirmation of spon sor ship or altern at ive spon sor ship arrange ments recog nising that closing a programme is poten tially disrupt ive to continu ing projects so main tain ing sponsor continu ity might have bene fits.

� Replication of any func tional support provided by the programme or port fo lio to projects, e.g. commer cial or finance.

� Stakeholder briefi ngs to advise of the organ isa tional changes that affect them.

Chapter 2 Preparing for change

Such trans ition arrange ments are simpli fied if the option exists within the busi ness to trans fer still active projects to an altern at ive, active programme or port fo lio. However, the fit of the trans fer ring projects with the incum bents of the programme need to be considered from a tech nical, process and human perspect ive. Such changes can be unset tling to indi vidu als and the teams of the continu ing projects need to be compre hens ively briefed on the new arrange ments and given honest advice on the risks and oppor tun it ies to their career that the changes repres ent.

Recommended reading

� An Introduction to Programme Management (2016) is the APM Programme Management Specific Interest Group guide. Section 2.7 covers programme closure and has prac tical guid ance about how to achieve this.

� Program Management (2015) includes detailed cover age of programme manage ment activ it ies and processes. Chapter 11 is dedic ated to programme closure and includes value real isa tion assess ment; managing programme comple tion, includ ing the trans fer of assets, resid uals and resources to the busi ness and closure report; and final isa tion of lessons learned.

Figure 2.3.6 Programme closure activ it ies

Source: APM Introduction to Programme Management (2016)

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Full refer ences for section 2.3

2.3.1 APM Enabling Change Specific Interest Group (2017) Introduction to Managing Change. Princes Risborough: Association for Project Management.

BurgettMartell, R. (2011) Change Ready: How to Transform Change Resistance to Change Readiness: A Manager’s Guide to Managing and Sustaining Change in the 21st-Century Workplace. CreateSpace Independent Publishing.

Kotter, J. (2012) Leading Change. Boston, MA: Harvard University Press.

2.3.2 APM Earned Value Management Specific Interest Group (2013) Earned Value Management Handbook. Princes Risborough: Association for Project Management.

APM Governance Specific Interest Group (2018) Sponsoring Change: A Guide to the Governance Aspects of Project Sponsorship, 2nd edition. Princes Risborough: Association for Project Management.

APM Planning, Monitoring and Control Specific Interest Group (2015) Planning, Scheduling, Monitoring and Control: Practical Project Management of Time, Cost and Risk. Princes Risborough: Association for Project Management.

2.3.3 Association for Project Management Benefits Management Specific Interest Group (2019) A Guide to Using a Benefits Management Framework. Princes Risborough: Association for Project Management.

Harvard Business Review (2011) Harvard Business Review 10 Must-Reads on Change Management. Boston, MA: Harvard University Press.

Sowden, R. and Cabinet Office (2011) Managing Successful Programmes, 4th edition. London: The Stationery Office.

Jenner, S. (2012) Managing Benefits. APMG International

2.3.4 Havila, V. and Salmi, A. (2009) Managing Project Ending. Abingdon: Routledge.

Lock, D. (2013) Project Management, 10th edition. Farnham: Gower.

Unger, B. N., Kock, A., Gemünden, H. G. and Jonas, D. (2012) Enforcing stra tegic fit of project port fo lios by project termin a tion: An empir ical study on senior manage ment involve ment. International Journal of Project Management, 30(6), 675–685.

2.3.5 APM Planning, Monitoring and Control Specific Interest Group (2015) Planning, Scheduling, Monitoring and Control. Princes Risborough: Association for Project Management.

Dooley, A. (2015) Praxis Framework. Princes Risborough: Association for Project Management.

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Lock, D. (2013) Project Management, 10th edition. Farnham: Gower.

2.3.6 APM Programme Management Specific Interest Group (2016) An Introduction to Programme Management, 2nd edition. Princes Risborough: Association for Project Management.

Dooley, A. (2015) Praxis Framework. Princes Risborough: Association for Project Management.

Thiry, M. (2015) Program Management, 2nd edition. Farnham: Gower.

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3 People and beha viours

This chapter is written for anyone involved in projects, programmes and port fo lios. Engaging and influ en cing stake hold ers, forming, build ing and leading teams, and the generic skills and respons ib il it ies of being a project profes sional are addressed with the object ive of making it clear that all projectbased work relies funda ment ally on the ability of people to work together. Stakeholders, those indi vidu als or groups who have an interest or role in the project, programme or port fo lio, or are impacted by it, cannot by defin i tion be ‘managed’. Rather, depend ing on their stake, and the role that ideally they will play, the people involved in the work, from sponsor to team member, are part of the effort to keep the stake holder appro pri ately engaged and influ enced to do the right things. This is not easy work and bene fits from a facil it at ive approach rather than assum ing that ‘commandandcontrol’ approaches will be effect ive. Conflicts may well arise and the resol u tion of these, or contain ment if resol u tion is not possible, is essen tial for all involved parties. Groups of people with a common aim are called a ‘team’ on the assump tion that the people will not only cooper ate with each other but also collab or ate to innov ate and perform. Effective projectbased working relies on effect ive team work, often carried out in a context where teams are tempor ary, multidiscip lin ary and, occa sion ally, also geograph ic ally dispersed. Leading a group of people so they can become a highperforming team is skilled work and some would argue that it is the most import ant skill that a project profes sional needs to develop. Beyond working with stake hold ers and teams, there are other aspects of any role involved in projectbased working (from sponsor to team member) that is about managing self and working in a profes sional manner. There are some generic skills that apply to every one, includ ing effect ive commu nic a tion and the ability to manage ones’ own time and work load. Project profes sion als also operate within frame works designed to uphold the law and profes sional stand ards. Doing this ethic ally and with a focus on continual profes sional devel op ment is a vital part of working as a profes sional in any field. This chapter is composed of three parts:

Section 3.1 Engaging stake hold ers

Section 3.2 Leading teams

Section 3.3 Working profes sion ally

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3.1 Engaging stake hold ers

There is wide agree ment that under stand ing stake hold ers – those influ en tial, inter ested indi vidu als and groups who are affected by projects, programmes or port fo lios – is crit ical work. However, over the past decades, ‘stake holder manage ment’ has become a frequently used term. The term implies that stake holder beha viours and actions can, indeed, be managed, i.e. predicted, planned and controlled. This section chal lenges the posi tion that stake hold ers can be ‘managed’ and suggests the need to think instead about how we under stand, engage and influ ence stake hold ers. Identifying and under stand ing stake hold ers is the start ing point, but going beyond initial assump tions or gener al isa tions is key, as is under stand ing stake holder rela tion ships with each other, as well as with the project, programme or port fo lio. Deeper under stand ing, includ ing of organ isa tional power and polit ics, is the basis for effect ive engage ment – an oppor tun ity to build enough of a rela tion ship with stake hold ers to influ ence their perspect ives and beha viour. Influencing stake hold ers, usually without any posi tion power, is ongoing work for the project profes sional. This work is often aided by adopt ing a facil it at ive approach. Sometimes, conflict needs to be resolved, or at least managed in order to balance the needs of the project with the needs and expect a tions of the people involved. This section, written for anyone involved in projectbased working, addresses the follow ing topics:

3.1.1 Stakeholders: Understanding who needs to be engaged and influ enced

3.1.2 Social context: Navigating soci opol it ical complex ity

3.1.3 Engagement and influ ence: Working with people to build support to achieve inten ded outcomes

3.1.4 Facilitation: Making it easy to collab or ate and solve prob lems

3.1.5 Conflict resol u tion: Facilitating winwin solu tions where possible.

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3.1.1 Stakeholders

Understanding who needs to be engaged and influ enced

‘Stakeholder’ is the term used in most instances to refer to indi vidu als or groups who have an interest or role in the project, programme or port fo lio, or are impacted by it. Stakeholder theory emerged in the 1960s as a chal lenge to the idea that share (stock) holders are the only group to whom managers need be respons ive. Stakeholder theory focuses on rela tion ships to get the best tradeoff of economic and social value. In projectbased working, this is the tradeoff between effi cient creation of a solu tion or change, and people’s support for the design and use of those outputs. Stakeholders typic ally exist both within and outside the organ isa tion that is invest ing in the project, programme or port fo lio. Some organ isa tions will include the team who plan and deliver the work as stake hold ers; others separ ate their think ing about stake hold ers and how to engage and influ ence them from their think ing about the team and how to lead them to success. Both approaches are valid. Identifying stake hold ers is import ant because any person or organ isa tion who is likely to take a keen interest in the design, deployment and impact of the work can be a help (a backer) or a hindrance (a blocker). It is usual for project profes sion als to identify stake hold ers and then analyse the degree to which they may become a help or hindrance by consid er ing a number of criteria, includ ing (Figure 3.1.1):

� the relat ive power of the stake holder to change how things are done;

� the degree of interest that the stake holder is likely to demon strate actively;

� the like li hood of the stake holder to support the project.

These dimen sions are not static and stake holder analysis is a dynamic process through the life of the project, programme or port fo lio to ensure that changes to initial assump tions are valid ated or updated as more becomes known about the context and its rela tion ship to the people involved and affected. Where the social context for projectbased working is complex, more advanced approaches to stake holder analysis are needed to under stand issues such as polit ics, alli ances and shift ing sources of power (see 3.1.2). Stakeholder analysis is of great value when it is used to shape how the work is planned, delivered and governed. The compos i tion of governance boards, the processes for gaining agree ment of solu tions and bene fits, general commu nic a tion strategies and the risk manage ment process are just some of the aspects of projectbased working that need to be designed in the specific know ledge of the stake holder land scape. The skills required to engage and influ ence stake hold ers are covered in 3.1.3.

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Recommended reading

� Stakeholder Relationship Management: A Maturity Model for Organisational Implementation (2016) is primar ily a ‘howto’ book, provid ing the funda mental processes and prac tices for improv ing stake holder manage ment in projectbased endeav ours. It is also a guide book for assess ing current matur ity in imple ment a tion of stake holder rela tion ship manage ment with a series of guidelines and mile stones for achiev ing the chosen level of matur ity.

� Advising Upwards: A Framework for Understanding and Engaging Senior Management Stakeholders (2011) brings together a collec tion of ideas for enga ging senior stake hold ers and case studies and stories that illus trate approaches to enable the project profes sional to ‘be heard’ at senior levels.

� A Practical Guide to Dealing with Difficult Stakeholders (2015) tackles the reality of address ing stake holder with differ ent needs, object ives, respons ib il it ies and prior it ies. The book offers detailed guid ance for dealing with differ ent types of spon sors, includ ing project spon sors, project team and team members, clients and contract ors and internal custom ers and gate keep ers.

Figure 3.1.1 An approach to captur ing analysis of stake hold ers

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3.1.2 Social context

Navigating soci opol it ical complex ity

At its heart, projectbased working requires an ability for people to work together to develop solu tions and solve prob lems in a constrained envir on ment. Success factors include the ability to clearly define roles and respons ib il it ies for team members, the creation of a coher ent project culture and the influ ence of the sponsor and other stake hold ers who have a common and support ive view of the project. Sometimes, it is relat ively easy to estab lish these success factors. Often, it is not because there are many complex it ies to navig ate in the organ isa tional context, for example, multiple organ isa tions, differ ing percep tions of prior it ies and/or differ ent cultural norms and expect a tions. On many occa sions, the complex ity relates directly to people and beha viours and can mani fest itself in power struggles, misaligned commu nic a tion and conflict. In projects, programmes and port fo lios where the rela tion ships between stake hold ers and the team are complex, it can be useful to build an under stand ing of the social system at play, i.e. the network of rela tion ships and how the influ ences between actors work together as a whole (Figure 3.1.2). Social systems recog nise that inter con nec ted entit ies often produce beha viour that cannot be predicted by analys ing the system’s parts in isol a tion. Systems are more than the sum of their parts. In analys ing a social system, the project profes sional needs to go beyond simple ideas of whether a stake holder has high or low power, for example, and to under stand and influ ence sources of power. In most situ ations, project profes sion als do not have posi tion or hier arch ical power with respect to stake hold ers and need to influ ence through their personal char ac ter ist ics and skills. They require as much inform a tion as possible in order to work out how to accom plish this. Organisational polit ics is also a factor to under stand alli ances, expli cit and hidden agenda and align ment of personal object ives with project object ives. The consid er a tion of the network of rela tion ships and interests is vital to craft appro pri ate engage ment and commu nic a tion strategies. Mapping interests and influences in a social network diagram (alternatively called a soft systems diagram in systems thinking) can be a good way for the team to visu al ise multiple complex rela tion ships and to make sense of who needs to be engaged and influ enced and how. Such a tech nique can also be really useful to identify people and behaviourbased risks. Where projectbased working is socially and polit ic ally complex, some of the tradi tional ideas of plan ning and control using a linear life cycle are not so effect ive because there is a low chance of accur ately anti cip at ing what is required and when. Iterative approaches that prior it ise collab or a tion between stake hold ers and cocreation of solu tions can be far more effect ive because they balance the need for pace and progress with resolv ing the uncer tainty asso ci ated with complex social contexts.

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Recommended reading

� Systems Thinking: How is it Used in Project Management? (2018) is the output of an APM Research Fund project conduc ted by the APM Systems Thinking Specific Interest Group, in collab or a tion with University College London. It provides broad inform a tion about systems think ing in general (not just about social systems) applied specific ally to project based manage ment.

� Social Network Analysis (2017) is a classic text, now in its fourth edition, that helps people involved in analys ing social contexts to under stand how to map and under stand rela tion ships between people and groups.

� The Hidden Power of Social Networks: Understanding How Work Really Gets Done in Organizations (2004) intro duces a visual frame work to help project profes sion als discover how commu nic a tion and collab or a tion works within a social network of rela tion ships. This text includes analysis of a large number of inform a tion employee networks in differ ent compan ies to illus trate how influ ence can be achieved through nontraditional chan nels.

Figure 3.1.2 An example social network diagram

Source: APM/ INCOSEUK ST SIG

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3.1.3 Engagement and influ ence

Working with people to build support to achieve inten ded outcomes

Project profes sion als inter act with a range of indi vidu als, teams and organ isa tions, whose support they need to achieve desired outcomes. In many cases, the project profes sional will not have the formal author ity to direct staff and stake hold ers who have an interest and who are influ en tial to the project’s success. As a result, success ful accom plish ment of object ives is reliant on the ability to engage and influ ence stake hold ers without posi tion power (Figure 3.1.3). Effective engage ment improves the chance of achiev ing object ives by having a posit ive influ ence on stake hold ers’ beha viours to:

� use and sustain posit ive interest; or

� minim ise or remove negat ive interest.

Effective engage ment requires the project profes sional to focus on under stand ing stake holder perspect ives and to address these in order to achieve the inten ded outcomes. Putting in effort to explore stake holder points of view has the dual benefit of build ing under stand ing of the issues and build ing rela tion ships. Influence relies on rela tion ships being built and main tained. Relationships depend on factors such as respect, shared values and trust. To estab lish the best possible condi tions to be influ en tial, project profes sion als need:

� Contextual aware ness: The ability to select the appro pri ate time, place and contrib ut ors.

� Cultural aware ness: Understanding the back ground and values of both the organ isa tion and the people involved (see 3.2.5 and 3.2.6).

� Communication skills: Flexibility of medium used and clarity in message (see 3.3.1).

� Conflict resol u tion skills: The ability to chal lenge in a neutral and fair manner, persuade and find mutu ally accept able posi tions (see 3.1.5).

Influence can also be achieved through an under stand ing of rela tion ships between stake hold ers and the polit ics that shapes those alli ances. Stakeholders who support the project can be used to influ ence stake hold ers who do not. Influence can be attemp ted form ally and/or overtly, through direct commu nic a tion and action, or may be achieved through more informal and/or covert and subtle beha viour and action, for example by includ ing an influ en tial but scep tical stake holder in governance and decisionmaking activ it ies. Engagement and influ ence of stake hold ers must be coordin ated across projects within programmes and port fo lios. A partic u lar stake holder may only be concerned with one project within a programme, but the influ ence of the stake holder on that project may have programme consequences. Where a stake holder is affected by multiple projects, the programme manager will ensure that engage ment and influ ence of that stake holder is coordin ated across the

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multiple projects. Stakeholder influ ence at port fo lio level typic ally requires the involve ment and support of senior leaders. The skills required by the project profes sional to engage and influ ence are many and varied. A facil it at ive approach is often useful to demon strate commit ment to attend ing to the stated needs and inferred expect a tions of stake hold ers (see 3.1.4).

Recommended reading

� The APM People Specific Interest Group guide The Lens Collective (2010) provides a suite of tools that encour ages project managers to reflect and consider altern at ive courses of beha viour. It prompts indi vidu als to expand their under stand ing and analysis of project chal lenges or contexts, provoke dialogue, promote creat ive problemsolving and enable collab or at ive team work.

� Practical People Engagement: Leading Change through the Power of Relationships (2013) provides a rich source of prac tices and tech niques that help the reader get better results from the change they are trying to lead. The book distils the prin ciples of people engage ment from the obser va tion of high performers. Different forms of engage ment are explored, includ ing those that are effect ive in support ing agile approaches.

� Influencing: Skills and Techniques for Business Success (2006) describes how people can review and reflect upon how they perform as an influ en cer. This book helps the reader address their own discus sion and review skills, influ en cing styles, approaches and techniques.

Figure 3.1.3 Matching engagement approach to stakeholder need

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3.1.4 Facilitation

Making it easy to collab or ate and solve prob lems

At times within projects, programmes and port fo lios, it makes sense for project profes sion als to be direct ive, leading from the front, espe cially at timecritical periods or in crisis. At other times, espe cially when the aim is to involve, motiv ate and engage stake hold ers to take owner ship, it makes much more sense for them to act as facil it at ors. This means taking a more neutral stance, encour aging collab or a tion and encour aging people towards their agreedupon object ives in a way that fosters parti cip a tion, owner ship and creativ ity. When adopt ing a facil it at ive approach, the project profes sional’s role becomes a supporter and encour ager, helping every one to do their best work. A facil it at ive lead er ship style suits many team members better than command and control and is more effect ive in projects that are managed virtu ally, where the project profes sional has to work harder to make sure every one is ‘heard’. As a facil it at ive leader, a project manager makes it easy for people to be involved, for a variety of views to be heard and under stood, and for appro pri ate stake hold ers to make decisions together. For the project profes sional, this means step ping back from the content of the discus sion and focus ing instead on the processes that people will follow to get to the results. Sometimes, project profes sion als find that they are person ally too close to the details or that they have a stake in decisionmaking, and there fore it is not appro pri ate for them to facil it ate a work shop as part of their project or programme. In this case, neutral facil it at ors are worth the invest ment so that every one can parti cip ate equally. Facilitation is partic u larly useful in these scen arios:

� Portfolio level: Exploring how to execute strategy with a facil it ated work shop to explore risk profiles of differ ent options before moving ahead.

� Programme level: Bringing together a range of stake hold ers with differ ent needs and perspect ives to come up with an agreed common vision for the programme.

� Project level: Using a facil it at ive style of lead er ship through out the project to keep team members motiv ated, engaged and deliv er ing.

A whole body of useful skills, tools and tech niques exists around facil it a tion and these are invalu able for project profes sion als. One success factor for effect ive facil it a tion is careful contract ing with stake hold ers and spon sors before facil it at ing work shops (Figure 3.1.4). Another is the import ance of mindset when facil it at ing. Often, people feel in a ‘meta phor ical spot light’ when leading a group, which can cause the build up of stress. By ensur ing that the focus of the spot light remains on the group, a facil it ator can reduce their stress levels and stay effect ive as they serve the group.

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Recommended reading

� A Facilitator’s Guide to Participatory Decision-Making (2014) covers decisionmaking with groups when aiming at consensus. It explores how to come to a sustain able agree ment and intro duces the idea of the ‘groan zone’, which groups often get stuck in before they’ve reached true consensus.

� A Short Guide to Facilitating Risk Management: Engaging People to Identify, Own and Manage Risk (2011) looks at the whole risk manage ment process from the point of view of facil it a tion. It intro duces the concept of a risk facil it ator and discusses where to focus at each step of the risk manage ment process.

� Visual Meetings: How Graphics, Sticky Notes & Idea Mapping Can Transform Group Productivity (2010) explores visual facil it a tion tech niques that work very well for both in theroomtogether and virtual projects. It discusses how to balance the areas of atten tion, energy, inform a tion and oper a tions when facil it at ing.

Figure 3.1.4 An approach to contract ing with parti cipants of facil it ated sessions

Source: Used with permis sion of Penny Pullan.

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3.1.5 Conflict resol u tion

Facilitating win-win solu tions where possible

Conflict arises when there are differ ing opin ions and/or oppos ing interests between stake hold ers that matter to the people involved and are not easily recon ciled. Conflict may be asso ci ated with the task being under taken, the process used to perform the task or rela tion ships between people. Outside of the work place, people have a choice whether to ignore a conflict or address it. Project profes sion als do not have the same choices at work as they have in their personal lives. Usually, ignor ing the conflict and the people involved is not an accept able way of safe guard ing the success of the project, programme or port fo lio. There are choices that can be made whether to ‘manage’ a conflict, i.e. prevent it from being an ongoing issue but typic ally requir ing one or other party to lose some thing of value to them, or to ‘resolve’ a conflict, i.e. enable a winwin solu tion. Taking a conflict resol u tion perspect ive, rather than conflict being perceived as negat ive – an unwanted struggle – conflict is an oppor tun ity to add value, using an ‘everyonecanwin’ approach. A common model to use when consid er ing approaches to the manage ment or resol u tion of conflict is the one depic ted in Figure 3.1.5. This model encour ages people to think about conflict using two dimen sions:

� the desire to achieve own object ives;

� the desire to achieve others’ object ives.

Investing the time neces sary to achieve both one’s own and others’ object ives is not always the right thing to do – it depends on how much resolv ing the conflict matters to achiev ing the object ives and bene fits, and the degree to which it is import ant to build/preserve longterm rela tion ships between the parties involved. Where a winwin is neces sary, the project profes sional needs a high level of skill in facil it a tion to be able to under stand and creat ively align goals. Other skills are import ant, depend ing on the conflict manage ment/resol u tion mode that is desired, e.g.:

� Assertiveness skills: To stand up for the project and what is required for success.

� Listening skills: To under stand the perspect ives of the people involved.

� Personal resi li ence: When the project context is highly charged with many conflicts to manage.

Sometimes, it is neces sary to involve other parties to resolve a conflict, e.g. the project sponsor/ other stake hold ers as part of governance, a neutral medi ator (from inside or outside of the organ isa tion) or an arbit ra tion service to prevent the conflict escal at ing into litig a tion or indus trial action. Projects need clear proto cols for escal at ing conflicts either to project governance, or to the relev ant programme or port fo lio level and for decid ing when the organ isa tion needs to go straight to litig a tion, or to altern at ive dispute resol u tion in order to deescalate the conflict.

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Recommended reading

� The Thomas Kilmann Conflict Mode Instrument™ is a frequently used model to explore the options for manage ment or resol u tion of a conflict. Kilmann’s website provides access to reading mater i als and the selfdiagnosis instru ment to help develop skills in dealing with conflict.

� Everyone Can Win: Responding to Conflict Constructively (2007) is a prac tical book that provides the essen tials for hand ling personal and work place diffi culties with emotional intel li gence includ ing hand ling clashes of values and toxic power issues.

� A Practical Approach to Alternative Dispute Resolution (2018) is a compre hens ive and digest ible comment ary on the ways to resolve conflicts out of court. This is very relev ant to some projects where conflicts within the organ isa tion or in the supply chain/between part ners cannot be resolved easily.

Figure 3.1.5 A common model to consider approaches to dealing with conflict

Source: Adapted from the Thomas Kilmann Conflict Mode Instrument.

Figure 3.1.5 ‘Conflict Situations’ based on Dr Ralph Kilmann’s version of the TKI Conflict Model, www.kilmanndiagnostics.com/ overviewthomaskilmannconflictmodeinstrumenttki, copyright © 2009–2018 by Kilmann Diagnostics. All rights reserved. (Accessed 8 August 2018.)

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Full refer ences for section 3.1

3.1.1 Bourne, L. (2016) Stakeholder Relationship Management: A Maturity Model for Organisational Implementation, 2nd edition. Abingdon: Routledge.

Bourne, L. (ed.) (2011) Advising Upwards: A Framework for Understanding and Engaging Senior Management Stakeholders. Farnham: Gower Publications.

Holloway, J., Bryde, D. and Joby, R. (2015) A Practical Guide to Dealing with Difficult Stakeholders (2015) Farnham: Gower.

3.1.2 Cross, R. L., Parker, A. and Cross, R. (2004) The Hidden Power of Social Networks: Understanding How Work Really Gets Done in Organizations. Cambridge, MA: Harvard Business Publishing.

Emes, M. and Griffiths, W. (2018) Systems Thinking: How is it Used in Project Management? Princes Risborough: Association for Project Management.

Scott, J. (2017) Social Network Analysis, 4th edition. London: Sage Publications.

3.1.3 Association for Project Management People Specific Interest Group (2010) The Lens Collective. Princes Risborough: Association for Project Management.

Dent, F. and Brent, M. (2006) Influencing: Skills and Techniques for Business Success. Basingstoke: Palgrave MacMillan.

Mayfield, P. M. (2013) Practical People Engagement: Leading Change through the Power of Relationships. Abingdon: Elbereth Publishing.

3.1.4 Kaner, S. (2014) A Facilitator’s Guide to Participatory Decision-Making, 3rd edition. New York: JosseyBass.

Pullan, P. and MurrayWebster, R. (2011) A Short Guide to Facilitating Risk Management: Engaging People to Identify, Own and Manage Risk. Farnham: Gower Publications.

Sibbet, D. (2010) Visual Meetings: How Graphics, Sticky Notes & Idea Mapping Can Transform Group Productivity. Hoboken, NJ: Wiley.

3.1.5 Blake, S., Browne, J. and Sime, S. (2018) A Practical Approach to Alternative Dispute Resolution, 4th edition. Oxford: Oxford University Press.

Cornelius, H. and Faire, S. (2007) Everyone Can Win: Responding to Conflict Constructively, 2nd edition. Pymble, NSW: Simon and Schuster.

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3.2 Leading teams

Projectbased working involves people coming together from differ ent func tions, discip lines and organ isa tions to work with a common purpose to deliver some thing of value to the invest ing organ isa tion. Groups of people with a common aim are called a team on the assump tion that the people will not only cooper ate with each other but also collab or ate to innov ate and perform. Leading a group of people so they can become a high perform ing team is skilled work and some would argue the most import ant skill that a project profes sional needs to develop. This section explores the concept of teams and the complic a tions and bene fits posed by teams separ ated by geography. Teams do not develop merely by working together – the right context needs to be created for teams to do their best work, and this is not a onetime effort as team members leave or new ones start, requir ing constant atten tion to ensure that things are going well. Team leaders in this respect can emerge from all parts of the organ isa tion. People are differ ent – they have differ ent exper i ences, back grounds, values and skills. Understanding people as indi vidu als and embra cing differ ence is a prerequis ite for devel op ing a highperformance team, and for treat ing every one with respect and dignity. Projectbased working is typic ally excit ing, fastpaced and full of pres sure to deliver good work on time and budget. Sometimes the pres sure that was motiv at ing and ‘healthy’ for people, becomes unbear able with the over load leading to negat ive stress. Having plans in place for safe guard ing self and the team from the effects of unsus tain able pres sure is a key part of being a profes sional. This section, written for anyone involved in projectbased working, addresses the follow ing topics:

3.2.1 Teams: Establishing teams for projects, programmes and port fo lios

3.2.2 Virtual teams: Working with people in differ ent places and time zones

3.2.3 Team devel op ment: Creating the right context for teams to perform

3.2.4 Leadership: Providing vision, direc tion, feed back and support so people can do their best work

3.2.5 Organisational culture: Understanding how things get done within the organ isa tion

3.2.6 Diversity and inclu sion: The bene fits and respons ib il it ies of embra cing diversity

3.2.7 Workplace stress: Safeguarding self and the team from the effects of unsus tain able pres sure

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3.2.1 Teams

Establishing teams for projects, programmes and port fo lios

A team is a group of people working together in collab or a tion or cooper a tion towards a common goal. Teams in projects, programmes and port fo lios are tempor ary, formed for the specific purpose of deliv er ing defined outputs and outcomes. Their trans it ory nature brings chal lenges not exper i enced in businessasusual teams. Projectbased working relies on the form a tion of multi func tional, skilled, tempor ary teams, and also on the ability of such teams to work with ‘businessasusual’ teams to deliver the required capab il it ies, bene fits and organ isa tional value. A key aspect of success ful projectbased working is to be able to bring busi ness expert ise into tempor ary teams and then return those people to the busi ness with enhanced skills and exper i ence, and without losing out in terms of perform ance review or succes sion plan ning. A partic u lar chal lenge for the project or programme manager is the respons ib il ity for deliv er ing the inten ded outputs and outcomes when they may have had little say about who joins the team and whether the chosen team members have the right skills and attrib utes. This makes the ability of the project profes sional to develop and lead teams of vital import ance. The simplest project has people who take on the roles of sponsor, project manager and team members – even if they are parttime roles as part of a wider job. Iterative and agile projects may involve small dedic ated teams includ ing a product owner or onsite customer. As projects get larger, the project manager role is typic ally suppor ted by special ists in aspects of projectbased working, for example, sched ulers, cost estim at ors, risk facil it at ors, commu nic a tion special ists or busi ness change leaders. Some organ isa tions have depart ments that are the home for such special ists (project services, or project controls are two depart mental names often used). A project (or programme or port fo lio) manage ment office (PMO) (see 2.2.1) is also often used and can perform a wide variety of support roles, from monit or ing and report ing to being the custodi ans of profes sional prac tice and devel op ment. Programme and port fo lio teams have similar options. Larger projects and programmes are also more likely to have team members that span multiple organ isa tions, for example suppli ers, part ners or customer/client staff as members of the deployment team. Additional skills to develop and lead the team across organ isa tional and cultural bound ar ies are needed in this situ ation. Some teams are colocated in the same geographic area. Where this is possible there are distinct bene fits from the ability to share a phys ical space where plans and progress can be visu al ised and close working rela tion ships can be developed. However, virtual team work ing is increas ingly preval ent. The partic u lar features and chal lenges of forming and working with virtual teams is covered in topic 3.2.2. Topic 1.3.9 addresses some of the organ isa tional level oppor tun it ies to develop talent through projectbased working.

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Recommended reading

� Creating High Performance Teams (2015) is an access ible new academic resource dedic ated to teams and how they operate. The text book combines theor et ical concepts with prac tical tools, realworld examples and case studies to address the working of teams, the chal lenges they face and their poten tial for high perform ance.

� Chapter 6 of Managing Projects in a World of People, Strategy and Change (2018) addresses issues related to teams and their effect ive ness. The discus sion encom passes project teams, high perform ance teams, and the power of emer gence teams able to excel under VUCA condi tions, whilst also cover ing team conver sa tions, crowd sourcing and decisionmaking in teams.

� Leading the Project Revolution: Reframing the Human Dynamics of Successful Projects (2019) is a curated collec tion of contri bu tions focused on topics related to lead er ship, perspect ive, teams, culture, strategy, complex ity, shadow working, imple ment a tion and connect ing. Chapter 3 is focused on team dynam ics, agree ment in teams and the ability of teams to work together effect ively.

Figure 3.2.1 All projects need at least these roles

Figure 3.2.1 ‘The Project Organization Chart’ by Bernie Roseke, P.Eng., PMP, 14/02/2017, https://www.projectengineer.net. Reproduced with kind permission.

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3.2.2 Virtual teams

Working with people in differ ent places and time zones

One of the strengths of projectbased working is being able to access the best people with the most appro pri ate skills. Achieving this can pose chal lenges when the best people for the team are in differ ent places and separ ated by time zones. Widespread access to virtual commu nic a tions tech no logy has led to a prolif er a tion in the number of virtual teams, often with virtual stake hold ers. It is becom ing the norm in many teams to have at least one person who is remote from the others. Even when most team members are colocated, it makes sense to treat this as a virtual team, so that all have the same access and oppor tun it ies as far as possible. While virtual teams can work really well, there are chal lenges too. It is more diffi cult to build deep rela tion ships and trust virtu ally than inperson. It is much harder to detect the first signs of conflict devel op ing, and then to resolve the conflict. It is harder to gel as a team if members cannot see each other and do not have the sort of informal conver sa tions that happen natur ally over coffee or by the watercoolers. All of these are harder, but not impossible. Project profes sion als leading virtual teams need to consider all of these factors and work out how to over come them. To be effect ive, a success ful virtual team will need more than reli able tech no logy. Figure 3.2.2 shows aspects of virtual lead er ship devel op ment. The model starts in the centre, devel op ing a facil it at ive, virtual lead er ship mindset, approach and lead er ship style, then estab lish ing how best to work with remote team colleagues and stake hold ers. What are their pref er ences? What are their skills? How can you quickly build up and main tain trust through out the project or programme? It is import ant to agree norms for commu nic a tion, taking every one’s pref er ences into account. After these steps, tech no logy is relev ant. The project profes sional needs to know the pros and cons of audio and video, along with the use of shared screens, so that they can choose appro pri ately for project meet ings. Collaboration tools, chosen to suit all of the virtual team, help with work outside of meet ings. Virtual meet ings benefit from a facil it at ive approach (see 3.1.4) and ensur ing that the meeting starts off with every one clear about how the virtual process will work in prac tice. The final stage in devel op ing virtual lead er ship is to master the complex it ies of virtual teams, for example, working across wide time zones and diversity of culture, mother tongue and gener a tion (see 3.2.6). As ever, under stand ing the perspect ive of and listen ing to each member of the team bears dividends.

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Recommended reading

� Virtual Leadership: Practical Strategies for Getting the Best out of Virtual Work and Virtual Teams (2016) addresses how virtual working in a fastpaced world requires a new set of skills and a facil it at ive lead er ship approach from all team members, to avoid isol a tion, disen gage ment, inef fect ive commu nic a tion and coun ter pro duct ive activ ity. The book contains numer ous hints and tips that a project team can apply and stories from those who have put it into prac tice success fully.

� Leading Effective Virtual Teams: Overcoming Time and Distance to Achieve Exceptional Results (2013) contains prac tical steps for each part of running a virtual team, from setting up commu nic a tions for collab or a tion, to troubleshoot ing tips and managing perform ance virtu ally.

� The Long-Distance Leader: Rules for Remarkable Remote Leadership (2018) rein forces the import ance of virtual lead er ship start ing with self. It is espe cially useful for leaders who are trans ition ing from purely colocated teams to work virtu ally for the first time.

Figure 3.2.2 Steps in devel op ment of virtual lead er ship

Source: Virtual Leadership (2016)

Figure 3.2.2 ‘Steps in development of virtual leadership’ from Virtual Leadership: Practical strategies for getting the best out of virtual work and virtual teams by Penny Pullan, Kogan Page, 2016, Figure 0.2, p.7. Reproduced with permission of The Licensor through PLSclear.

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3.2.3 Team devel op ment

Creating the right context for teams to perform

The success of projectbased working relies on teams working together effect ively, whether they are colocated in the same time and place, or working virtu ally in differ ent places, possibly in differ ent time zones. For teams to be effect ive it is import ant that team members are under stood as indi vidu als in terms of their capab il it ies, their pref er ences, their cultural norms and expect a tions as well as the social dynam ics between team members. By paying atten tion to team devel op ment project profes sion als can create posit ive working cultures that enable high perform ance of the team and an increased chance of success. A team will typic ally go through differ ent stages of matur ity over time. The team leader has a key role in helping the team move through these stages as effect ively as possible and re addressing stages as new team members join or others leave:

� Being clear about goals and object ives and creat ing an inclus ive and coordin ated envir on ment.

� Enabling differ ences to be aired and conflict resolved in a posit ive way.

� Providing process, clear roles and respons ib il it ies and timely feed back.

� Promoting openness, honesty and the devel op ment of trust ing rela tion ships so the team can perform.

� Ensuring that team members are transitioned back into the busi ness or their organ isa tion (see 2.3.5).

Project profes sion als need to get the best out of their teams within time, cost and quality constraints. This may involve ensur ing that team members perform roles that play to their strengths or assign ing them respons ib il it ies where people can learn new skills to provide support or cover for another team member. There is always work to be done that is not excit ing or devel op mental, but ensur ing that roles have variety and oppor tun it ies for learn ing helps build and main tain a posit ive and effect ive envir on ment. One way the project profes sional can provide role variety and also build skills and flex ib il ity within the team is to think about the balance between ‘process’ and ‘tech nical’ work in the team. For example, giving oppor tun it ies for a busi ness analyst working on require ments capture to also play a role in facil it at ing the risk analysis and manage ment process for the project. This helps build a team that appre ci ates all the work that needs to be done to be success ful. When teams are perform ing well, they are likely to be focused on their own devel op ment, seeking out ways to be collab or at ive, innov at ive and product ive. In such highperforming teams, the role of a single team leader becomes less import ant with the team moving into a self managed mode which can be highly motiv at ing and effect ive.

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Recommended reading

� Team Development: A Practical Guide to Understanding Team Development (2018) is a short, focused book that explores the Tuckman and Hackman models for team devel op ment. It addresses the ways to ensure team dynam ics remain posit ive and product ive and how the leader can modify their level of involve ment depend ing on the stage of team devel op ment.

� Creating High Performance Teams: Applied Strategies and Tools for Managers and Team Members (2015) provides a firm ground ing in key concepts and the prac tical tools to become success ful team managers and members. Built on a solid found a tion of the most up to date research and theory, chapters are packed with case studies, realworld examples, tasks and discus sion ques tions.

� Everyone Leads: Building Leadership from the Community Up (2011) explores distrib uted and plur al istic lead er ship of teams – relev ant partic u larly in projects and programmes adopt ing agile ways of working and when there is a need to engage with and mobil ise communit ies.

Figure 3.2.3 From groups of indi vidu als to a team

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3.2.4 Leadership

Providing vision, direc tion, feed back and support so people can do their best work

Beyond the skills to bring people together to form a team and to develop them so they perform together, the project profes sional needs to be able to lead the team in an envir on ment of change and uncer tainty. New members join exist ing teams, teams expand to deal with a change in scope or reduce to achieve the same work over a longer timeframe. Through such change, the team leader sustains a focus on the vision and provides the direc tion and motiv a tion for people to do their best work. Leadership is needed at all levels within a projectbased setting. The sponsor commu nic ates the vision to the project team, sets highlevel expect a tions, involves team members in decisions and provides action able feed back. The project or programme manager under stands how to get the best out of each person and provides direc tion and support for them. Team members share respons ib il it ies and work collab or at ively. Leaders provide timely and construct ive feed back and are recept ive to their own feed back provided by members of the team. Leaders need to adapt their style and approach to the needs of the team and the work that needs to be accom plished, this is called situ ational lead er ship. There are some situ ations when the leader needs to be direct ive, for example, to address an issue that threatens the achieve ment of object ives. A ment or ing or coach ing style is appro pri ate when there is time to focus on devel op ment of the team as well as goal achieve ment. For much of the time when the team is estab lished and working well, the leader deleg ates respons ib il ity for achiev ing activ it ies to team members, only inter ven ing if evid ence arises to suggest that perform ance is not to agreed expect a tions. Leadership in a project context is usually performed with limits on the leader’s posi tion power requir ing them to adopt a style that builds team and wider stake holder commit ment. Current think ing encour ages project profes sion als to embrace the social and ethical aspects of their role. This puts a focus on the need for leaders to put effort into under stand ing what differ ent people need in order to perform effect ively and to provide the support required. The lead er ship role is increas ingly under stood through an authen tic, emotion ally intel li gent, collab or at ive and ‘servant’ lens. Programmes typic ally involve higher levels of emer gent change than projects and require leaders to be able to deal with ambi gu ity, and to lead larger teams in a context where it is more diffi cult to plan with certainty. People who need to be led in a programme setting are likely to be leaders (of projects or other teams) them selves putting the onus on the whole team to perform as effect ive team members.

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Recommended reading

� Leaders Eat Last: Why Some Teams Pull Together and Others Don’t (2017) illus trates leaders putting the needs of others first and creat ing loyalty and commit ment to achiev ing the vision and goals. Real life examples are provided from the milit ary to manu fac tur ing, from govern ment to invest ment banking.

� Project Leadership (2015) focuses on build ing personal and organ iz a tional project lead er ship capab il ity includ ing models, tools and diagnostics drawing on exper i ences of working with projects and organ iz a tions from multiple sectors and across the globe.

� The Power of Project Leadership: 7 Keys to Help You Transform from Project Manager to Project Leader (2015) encour ages a shift in mindset from one mainly concerned with manage ment, towards inspir a tion, motiv a tion and influ ence.The book describes what good project lead er ship looks like and explains how to make the trans ition by using concrete tools and strategies.

Figure 3.2.4 Leadership focus on goals, team and stakeholders

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3.2.5 Organisational culture

Understanding how things get done within the organ isa tion

Culture exists at multiple levels – wider society, coun tries, industry sectors, organ isa tions, func tions, port fo lios, programmes and projects. In this topic we focus on organ isa tional culture and its impact on projectbased working. Organisational culture can be defined as the way things are done in an organ isa tion, the unwrit ten rules that influ ence indi vidual and group beha viour and atti tudes. Factors that influ ence organ isa tional culture include:

� values, tradi tions, stories and organ isa tional memory;

� organ isa tional struc ture, systems and processes;

� manage ment and lead er ship styles;

� beha viours demon strated at all levels of the organ isa tion.

Some aspects of culture are observ able or visible – the things that people do, for example, the prevail ing style of commu nic a tion or decisionmaking. Most aspects of culture are hidden from view – the things that people value, feel or believe to be true yet have influ ence in shaping ‘the ways things are done’. Taking time to try to under stand the prevail ing culture in an organ isa tion is an import ant part of stake holder analysis and of team lead er ship. If the project, programme or port fo lio is contained within one organ isa tion, or one part of a large distrib uted organ isa tion, the values, beha viours and norms may be tacitly under stood. Where multiple organ isa tions are involved, the impact of any cultural differ ences will need to be under stood and managed from both the perspect ive of the deployment team, and the people affected by the change. As a result of their work to under stand organ isa tional culture(s), project profes sion als may need to adapt their approach to maxim ise their impact on the project or programme and reduce the risk of alien at ing them selves. However, project profes sion als should not rely on hearsay, or first impres sions to assess culture. Reviewing arte facts, processes, speak ing with people and observing beha viour closely is import ant to build an informed assess ment. It is common in large projects or programmes for the lead er ship to talk about creat ing a culture for the project or programme being managed. This can be useful when the team is drawn from differ ent organ isa tions – devel op ing an envir on ment where partic u lar beha viours and char ac ter ist ics are encour aged can be a useful way of build ing team cohe sion and perform ance. Additional complex it ies arise where stake hold ers or members of the team are from differ ent national cultural back grounds. Behaviours that are taken for granted in one place may be alien to others. At best this can cause confu sion and delays; at worst offence and the break down of rela tion ships. Further explor a tion of national cultural differ ences is included in 3.2.6.

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Recommended reading

� Organizational Culture and Leadership (2016), an estab lished classic, analyses how culture begins, thrives, or dies with lead er ship, how to manage cultural change effect ively, and the leader’s role in managing dispar ate groups.

� How the Way We Talk Can Change the Way We Work: Seven Languages for Transformation (2001) is a prac tical and effect ive guide that provides change prac ti tion ers with the tools to plug gaps between what we intend and what we are able to accom plish.

� Understanding Organisations (2005) argues that the key to success ful organ isa tions lies in a better under stand ing of the needs and motiv a tions of the people within them. This fourth edition of the classic manage ment text offers an exten ded ‘diction ary’ of the key concepts of culture and motiv a tions in organ isa tions.

Figure 3.2.5 The visible and hidden aspects of organ isa tional culture

Source: Adapted from Ekvall (1996); French & Bell (1984); Johnson & Scholes (1998). Reproduced with permission of Sarah Coleman.

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3.2.6 Diversity and inclu sion

The bene fits and respons ib il it ies of embra cing diversity

Workplace envir on ments are increas ingly made up of indi vidu als with differ ent back grounds, abil it ies and ways of working. In the projectbased context, chal lenges arise when tempor ary teams need to come together and perform quickly. These tempor ary teams are increas ingly inter na tional, bring diverse skillsets and perspect ives, and can be located across coun tries and contin ents. National cultures have been developed over centur ies with influ ences like reli gion, wars and geographic loca tion all having an effect in build ing strong values and intrinsic beliefs about how to behave. These are influ en tial in shaping beha viours in projectbased working. As part of stake holder analysis the project profes sional may research the drivers under pin ning national culture to gain clues about typical beha viours in that culture, but this is not a substi tute for getting to know the people involved as indi vidu als. Academic and empir ical evid ence supports the view that value is created from differ ence and diverse teams can bring about higher perform ance. This is because indi vidu als from differ ent back grounds and cultures are likely to have had differ ent exper i ences and perspect ives they can bring to the team. There can also be a strong sense of inclu sion and community that is fostered when people of differ ent back grounds and abil it ies come together for a common purpose. The project profes sional has an oppor tun ity to improve outcomes by harness ing the diversity of the people avail able. Despite the known bene fits of diversity and inclu sion, human nature is often to favour the people and the things they do that are ‘like us’ rather than ‘differ ent from’ us. This can lead to uncon scious or conscious bias. Unconscious bias refers to the atti tudes or stereo types that affect our under stand ing, actions, and decisions in an impli cit manner. These biases may encom pass both posit ive and negat ive assess ments of people and are triggered without an indi vidual’s aware ness or inten tion. These biases are differ ent from conscious, or known, biases that indi vidu als know they have and may try to conceal. Even when people are working in the same organ isa tion and from the same cultural back ground, the project profes sional has the oppor tun ity to embrace the diversity and capab il it ies of their team. A posit ive working envir on ment happens when:

� people feel they can be them selves at work;

� ideas and respect ful chal lenge is encour aged;

� differ ences are under stood and welcomed.

In many coun tries, it is illegal to discrim in ate on the basis of age, disab il ity, gender identification, gender reas sign ment, marriage and civil part ner ship, preg nancy and mater nity, race, reli gion or belief, sex or sexual orient a tion. If unsure in any way, it is import ant that project profes sion als seek advice on how to treat people fairly.

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Recommended reading

� Riding the Waves of Culture: Understanding Diversity in Global Business (2016) is a guide to crosscultural manage ment that takes readers beyond crosscultural aware ness and on to issues to help profes sion als take stra tegic advant age of cultural differ ences in the busi ness envir on ment.

� The Value of Difference: Eliminating Bias in the Workplace (2009) aims to build appre ci ation of what drives human beha viour and explores topics that are very rarely discussed in organ isa tions but are ever present because they are part of our makeup as humans, i.e. preju dice, bias, priv ilege and power. The book provides prac tical guid ance to organ isa tions on how these complex issues can be addressed in our organ isa tional prior it ies.

� Equality and Discrimination: Understand the Basics (2017) outlines the funda ment als of what employ ers, and employ ees and their repres ent at ives need to know, and do to make their work places a fair envir on ment and comply with equal ity law in the UK.

Figure 3.2.6 Diversity leads to higher perform ance

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3.2.7 Workplace stress

Safeguarding self and the team from the effects of unsus tain able pres sure

For many project profes sion als, working in a highly pres sured envir on ment with specific object ives to deliver new capab il it ies and organ isa tional bene fits within time, cost and quality, makes work highly motiv at ing and enjoy able. Many thrive on the uncer tainty, variety and constant change that comes with projectbased working. Pressure arises when people have work of signi fic ance to them to deliver and they perceive they don’t have enough time, capab il ity or support to achieve the goal. Most people will have an optimum posi tion where the pres sure matches their ability to respond at that time. Many things can affect this balance – from the phys ical and psycho lo gical state of the person involved, to the type of pres sure that the work demands; for example, juggling multiple projects at the same time or working on a project for an exten ded period. Using the UK Health and Safety Executive defin i tion, work place stress is the adverse reac tion that people have to excess ive pres sure or other types of demand placed upon them. Situations that can lead to excess ive pres sure include:

� percep tion of having little control of a situ ation;

� volume of work to complete at a partic u lar time;

� rela tions with others in the team, or wider stake hold ers;

� concerns about job secur ity, or oppor tun it ies for advance ment;

� the culture of the organ isa tion clash ing with personal values or beliefs;

� commit ments outside work.

Projectbased working will inev it ably result in situ ations where indi vidu als feel stressed and it is a crucial skill for the project profes sional to be able to notice signs of their own stress and have coping strategies, and to be alert to the signs of stress in the team. Everyone is differ ent, so atten tion needs to be on indi vidu als and their ability to func tion and cope. Workplace stress is a growing hazard and area of concern for many organ isa tions. Regulatory bodies in many coun tries publish stand ards and guid ance for identi fy ing hazards and managing the effects. Project profes sion als under stand that it is normal for people to feel excess ive pres sure from time to time. No one is immune from this, but every one can build personal resi li ence with support. Project profes sion als combine know ledge of the team and the work sched ule to manage expect a tions about pres sured time periods and build in contin gency should members of the team be strug gling. In addi tion to the profes sional being aware of the risk of work place stress and how to mitig ate this, a wider focus on well being of people at work is a prior ity in many organ isa tions. Promoting the bene fits of a healthy life style and well being is one way that organ isa tions support people to be in the best possible shape to deal with work pres sures and to avoid negat ive stress.

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Recommended reading

� Getting Things Done: The Art of Stress-Free Productivity (2015) is a bestselling book and set of linked products that helps people approach personal and profes sional tasks.

� Managing the Causes of Work-Related Stress: A Step-by-Step Approach (2007) is the UK Health and Safety Executive’s guide to using the manage ment stand ards to tackle the six under ly ing risk factors asso ci ated with work place stress, i.e. the demands of your job; your control over your work; the support you receive from managers and colleagues; your rela tion ships at work; your role in the organ isa tion; change and how it is managed.

� Causes and Management of Stress at Work (2002) is an article that looks at the causes and signs of stress at work, tech niques for managing stress and organ isa tional stress manage ment. The article was published in a scientific journal and is avail able for free down load.

Figure 3.2.7 The balance between perform ance and level of arousal

Source: Yerkes-Dodson law, 1908

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Full refer ences for section 3.2

3.2.1 Aldag, R. J. and Kuzuhara, L. W. (2015) Creating High Performance Teams: Applied Strategies and Tools for Managers and Team Members. Abingdon: Routledge.

Dalcher, D. (2018) Managing Projects in a World of People, Strategy and Change. Abingdon: Routledge.

Dalcher, D. (2019) Leading the Project Revolution: Reframing the Human Dynamics of Successful Projects. Abingdon: Routledge.

3.2.2 Eikenbeery, K. and Turmel, W. (2018) The Long-Distance Leader: Rules for Remarkable Remote Leadership. Oakland, CA: BerrettKoehler Publishers.

Pullan, P. (2016) Virtual Leadership: Practical Strategies for Getting the Best out of Virtual Work and Virtual Teams. London: Kogan Page.

SettleMurphy, N. (2013) Leading Effective Virtual Teams: Overcoming Time and Distance to Achieve Exceptional Results. Boca Raton, FL: Taylor and Francis Group.

3.2.3 Aldag, R. and Kuzuhara, L. (2015) Creating High Performance Teams: Applied Strategies and Tools for Managers and Team Members. Abingdon: Routledge.

Moon, K. (2018) Team Development: A Practical Guide to Understanding Team Development. CreateSpace Independent Publishing Platform.

Schmitz, P. (2011) Everyone Leads: Building Leadership from the Community Up. New York: JosseyBass.

3.2.4 Coleman, S. and MacNicol, D. (2015) Project Leadership, 3rd edition. Farnham: Gower Publications.

Madsen, S. (2015) The Power of Project Leadership: 7 Keys to Help You Transform from Project Manager to Project Leader. London: Kogan Page.

Sinek, S. (2017) Leaders Eat Last: Why Some Teams Pull Together and Others Don’t. New York: Penguin Random House.

3.2.5 Handy, C. (2005) Understanding Organisations, 4th edition. London: Penguin Books.

Kegan, R. and Lahey, L. L. (2001) How the Way We Talk Can Change the Way We Work: Seven Languages for Transformation. New York: JosseyBass.

Ekvall, G. (1996) “Organizational climate for creativity and innovation.” European Journal of Work and Organizational Psychology, 5 (1), 10512

French, WL., Bell, CH. (1998) Behavioral Science Interventions for Organization Improvement (6th Edition), Pearson

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Johnson, G., Scholes, K., Whittington, R. (2011) Exploring Strategy (9th edition), Prentice Hall

Schein, E. (2016) Organizational Culture and Leadership, 5th edition. New York: JosseyBass.

3.2.6 Advisory, Conciliation and Arbitration Service (ACAS) (2017) Equality and Discrimination: Understand the Basics. Available at: http://m.acas.org.uk/media/pdf/1/0/Equality_discrim_under stand_basics_ Nov.pdf (accessed 3 November 2018).

Kandola, B. (2009) The Value of Difference: Eliminating Bias in the Workplace. Oxford: Pearn Kanola Publishing.

Trompenaars, F. and HampdenTurner, C. (2016) Riding the Waves of Culture: Understanding Diversity in Global Business, 3rd edition. London: Nicholas Bealey.

3.2.7 Allen, D. (2015) Getting Things Done: The Art of Stress-Free Productivity. London: Penguin Books.

Health and Safety Executive (2007) Managing the Causes of Work-Related Stress: A Step-by-Step Approach Using the Management Standards HSG218, 2nd edition. London: HSE Books. avail able at: www.hse.gov.uk/pubns/indg424.pdf (accessed 3 November 2018).

Michie, S. (2002) Causes and manage ment of stress at work. Occupational and Environmental Medicine, 59, 67–72.

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3.3 Working profes sion ally

Beyond the know ledge and skill to be able to influ ence stake hold ers and lead teams there are other aspects of being a project profes sional that span all the topics in the previ ous two sections. Communication, nego ti ation and time manage ment are basic manage ment skills that apply univer sally, not just in projectbased working – but they have a partic u lar focus in projects, programmes and port fo lios that warrants their inclu sion. The tempor ary and constrained nature of deliv er ing bene fi cial change through projectbased working puts partic u lar pres sures on these core skills. The commu nic a tion of relev ant inform a tion is with people who are not part of the businessasusual team. Negotiation is not only formal, with suppli ers and part ners, but also informal, for example to release scarce resource for projectwork. Time manage ment becomes partic u larly pres sured when one is juggling multiple urgent and import ant prior it ies for differ ent bosses or clients. As a chartered profes sion, projectbased working requires high stand ards in terms of ethics, and compli ance with all relev ant laws and regu la tions. Where projects are managed across differ ent legal or ethical contexts, the project profes sional is wise to seek help from special ists who can help them navig ate the terrain. In a context where popular views are that the major ity of projects and programmes fail to deliver prom ises, the role of continu ing profes sional devel op ment has a major role to play in build ing the profes sion. Continuing profes sional devel op ment is vital for project profes sion als – not only to keep up to date and enhance their own compet ence over time, but also to advance the stand ing of the profes sion and the trust that society puts into the ability for projectbased working to deliver value. This section, written for anyone involved in projectbased working, addresses the follow ing topics:

3.3.1 Communication: Ensuring the exchange of relev ant inform a tion

3.3.2 Negotiation: Planning, conduct ing and followup on agree ments

3.3.3 Time manage ment: Managing personal time to achieve prior it ies

3.3.4 Regulatory envir on ment: Navigating the legal and regu lat ory envir on ment

3.3.5 Ethics and stand ards: Maintaining a trusted profes sion

3.3.6 Continuing profes sional devel op ment (CPD): Continual devel op ment of compet ence

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3.3.1 Communication

Ensuring the exchange of relev ant inform a tion

The ability to commu nic ate is a core skill for people working in projects, programmes and port fo lios to ensure object ives and require ments are under stood, plans and bene fits are shared, stake hold ers are aligned, teams are motiv ated and know ledge is embed ded. Communication takes many forms and effect ive commu nic at ors consider not only the message they want to pass on, but also the method (medium) for commu nic at ing the message. Decisions about commu nic a tion methods are made in the context of the target audi ence, the inten ded impact and the risks/poten tial unin ten ded consequences of the approach (Figure 3.3.1). Many factors affect the success of commu nic a tion, from cultural influ ences to the ‘mood’ in the team to the method of commu nic a tion chosen and the language used. Project profes sion als have choices to use written words and symbols, voice and nonverbal signals (body language) when commu nic at ing. In ‘facetoface’ commu nic a tion (includ ing video and vlogs), nonverbal commu nic a tion can have more of an impact than the words used, so being able to control non verbal signals and create a coher ent message is vital. Where facetoface commu nic a tion is not possible there are advant ages and disad vant ages. For example, it can be advant age ous to be on a confer ence call if the group is working through feed back in a docu ment as more focus can be given to the words used and the format of the written inform a tion without worry ing about visual clues. Disadvantages are that virtual commu nic a tion runs the risk of the senti ment under pin ning what is said being misun der stood. Project profes sion als working with virtual teams need partic u lar skills to ensure that commu nic a tion between team members is effi cient and effect ive, for example the ability to include every one on a virtual call (see 3.2.2). Choosing the most appro pri ate media for deliv ery of a message is both helped and poten tially hindered by the wide range of elec tronic methods for trans mis sion and collab or a tion. Evidence suggests that eforms of commu nic a tion are increas ingly relied upon too much, often leading to misun der stand ings and conflicts. All projects, programmes and port fo lios have commu nic a tion plans that build from stake holder analysis and outline the who, what, when, why and how of twoway commu nic a tion between the team and the wider stake holder envir on ment. Effective commu nic a tion plans include ways to receive feed back and measure effect ive ness so that plans can be adjus ted to have maximum impact. Protocols and stand ards for commu nic a tion are developed in many organ isa tions and sectors. Adherence to these can be import ant to commu nic ate effect ively and to reach agree ments on time, for example, to get a busi ness case approved by a governance board or to include a project update on the company intranet. If in doubt, project profes sion als should take time to find out the commu nic a tion ‘norms’ in the partic u lar organ isa tion to circum vent avoid able errors and poten tial conflict.

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Recommended reading

� Current Practices and Trends in Technical and Professional Communication (2017) is a prac tical book, cover ing the tools and processes we can use to resolve some of the commu nic a tion issues we encounter. Changes in tech no logy are described, and ways of harness ing that tech no logy are iden ti fied, includ ing both current and future possib il it ies such as arti fi cial intel li gence.

� The Silent Language of Leaders: How Body Language Can Help – or Hurt – How You Lead (2011) is a useful book focused on effect ive nonverbal commu nic a tion as a leader in an organ isa tional context. It has prac tical advice on how to use the body for maximum effect when leading.

� Communicating Projects: An End-to-End Guide to Planning, Implementing and Evaluating Effective Communication (2013) gives project and programme commu nic at ors a compre hens ive frame work for devel op ing an effect ive strategy that addresses multiple commu ni c a tion aspects in detail and with examples, such as employee engage ment, commu nic a tion theory and persua sion.

Figure 3.3.1 Considering the medium and the message

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3.3.2 Negotiation

Planning, conduct ing and follow-up on agree ments

There are many situ ations in projectbased working where ‘deals’ need to be made – from agree ing the release of a func tional expert to support the project, to nego ti at ing large contracts with suppli ers and everything in between. The prin ciples of nego ti ation and the skills needed to make lasting agree ments apply to all these situ ations. In this topic, we focus on nego ti at ing and gaining formal agree ment as a partic u lar prac tice and skill that is distinct from the more generic skill set of influ en cing. Planning is vital in nego ti ation. The project profes sional needs object ive criteria for what they want to achieve and an under stand ing of their best altern at ive to a nego ti ated agree ment. A best altern at ive to a nego ti ated agree ment (BATNA) is not the same as what you want. It is import ant in nego ti ation that people do not bargain over valuebased posi tions (for example, we have never paid more than x for this service before) and instead under stand the price that it would be rational to pay for the service being offered. Also, where the nego ti ation has implic a tions for the wider organ isa tion (or programme/port fo lio), the bargain ing posi tion reflects this to avoid shortterm or local ‘good’ deals having wider negat ive consequences. As shown in Figure 3.3.2, under stand ing the BATNA of the seller and buyer defines the zone of possible agree ment (ZOPA). The actual nego ti ation may be done facetoface or in writing. In the past, the nego ti at ing skills that were valued were asso ci ated with ‘driving a hard bargain’ and tactics to put pres sure on the other party and ‘win over the oppos i tion’ were seen as valu able. It is more normal now to see nego ti ation through a ‘winwin’ lens. This does not mean that organ isa tions do not seek a compet it ive price for a service, but the price of the service is balanced with an under stand ing of the value that is likely to be achieved. For example, the ability of the supplier to offer things of value to the purchaser such as storage of goods on the supplier’s site until needed. Some procure ment exer cises are also facil it ated by an online bidding process, although, depend ing on the agree ment you are trying to nego ti ate, it may be import ant actu ally to meet the people whom you are seeking to contract with. Followup is also vital in order to progress actions agreed and to put in place docu ment a tion that will make it clear to all parties of the deal that has been nego ti ated. This is import ant to try to minim ise future conflict. Where nego ti ation has been between two legal entit ies, a suit able commer cial contract is needed. The project profes sional seeks support from their procure ment or legal special ists to ensure that nego ti ated agree ments with third parties are defend able in law as well as best value for the invest ing organ isa tion.

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Recommended reading

� Getting to Yes: Negotiating an Agreement without Giving in (2011) is a best selling text that has helped millions of people secure agree ments by provid ing a simple but highly effect ive frame work for nego ti ation. The original source of the idea of BATNA and ZOPA.

� Successful Contract Negotiation (1993) is a classic, compre hens ive and wellestablished manual on the nego ti ation of busi ness contracts. It includes not just the process of nego ti ation but also the content (prices, payments, warranties, liab il it ies and claims), looking at the sellers’ and buyers’ view points.

� 3D Negotiation: Powerful Tools to Change the Game in Your Most Important Deals (2006) outlines an approach to align setup, deal design and tactics to achieve super ior results. It contains prac tical steps and enga ging examples.

Figure 3.3.2 The concept of a best altern at ive to a nego ti ated agree ment (BATNA)

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3.3.3 Time manage ment

Managing personal time to achieve prior it ies

Most project profes sion als are juggling multiple prior it ies at any one time. This may be within one large project or programme, where the scope of work and number of team members and stake hold ers involved creates a lot of work. Many people working in the profes sion are deployed to multiple projects simul tan eously and this can make the prior it isa tion chal lenge even greater. The ability to manage their own personal time and to prior it ise work, balan cing what is most import ant with what is most urgent, is a vital skill for any project profes sional (Figure 3.3.3). Some people may be able to hold all the things they need to do in their head, and to prior it ise accord ingly without forget ting things and missing dead lines. Most people need some sort of personal aidememoir system for keeping track of actions. It is normal for people in busi ness to use elec tronic diary manage ment systems. One chal lenge for the modernday project profes sional is that their diary becomes full of ‘backtoback’ meet ings, so the only time they have to progress other actions on their ‘todo’ list is out of normal office hours. This leads to long working hours and excess ive pres sure. Leaders have the oppor tun ity to be a role model for a posit ive working culture on the project with ‘outofhours’ work being the excep tion to support the achievement of key mile stones. Strategies the project profes sional can utilise include:

� Building in time in the day to progress personal actions.

� Understanding what part of the day they do their best work, making sure that this part of the day is avail able for activ it ies that need the most thought.

� Avoiding multi task ing whenever possible, so start ing and finish ing a task without being inter rup ted.

� Being clear about what tasks are done each day, and which can wait if neces sary.

� Sharing inform a tion in advance of meet ings to ensure meeting time can focus on decision making.

Risk manage ment is focused on anti cip at ing what might not go to plan and putting in place actions to reduce uncer tainty to a toler able level. In a projectbased setting, this discip line is crit ical to avoid the project profes sional’s day being over taken with managing unanti cip ated prob lems. Although crisis manage ment can be motiv at ing and satis fy ing for some, project object ives are typic ally best achieved by not leaving things to chance. There is good evid ence that it is motiv at ing to develop a personal plan and to achieve that plan. Having a real istic action list for each day is a good way to build confid ence and self efficacy. Emergent change and issues will always happen but whether working within a linear or iter at ive life cycle, the project profes sional can become more effect ive by having a clear way of prior it ising their effort.

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Recommended reading

� Make Time: How to Focus on What Matters Every Day (2018) is written by the creat ors of Google Ventures’ ‘Design Sprint’. They have pack aged the most effect ive tactics into a fourstep daily frame work that anyone can use to system at ic ally design their days.

� Time Mastery: Banish Time Management Forever (2017) helps in under stand ing how pref er ences, style and interests impact how time is organ ised and used. Whether you want to get more done at work, deleg ate better, manage the prior it ies at home or just spend more time doing things that bring you joy, this book will help you develop an approach to time that is effi cient and fits with your unique person al ity.

� Time Management (2014) is a pocketsized guide, designed to reveal 21 estab lished time manage ment solu tions that can be used to handle inter rup tions, batch similar tasks together, over come procras tin a tion, determ ine what to deleg ate and use plan ning tech niques to ensure the most import ant goals are addressed.

Figure 3.3.3 Prioritising import ant and urgent tasks

Source: Adapted from the Eisenhower matrix.

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3.3.4 Regulatory envir on ment

Navigating the legal and regu lat ory envir on ment

All projectbased work oper ates within a legal and regu lat ory frame work relev ant to the industry and coun tries where the work is performed (Figure 3.3.4). The project profes sional is respons ible for under stand ing the regu lat ory envir on ment. In law, ignor ance is never a defence. Acts of Parliament and asso ci ated regu la tions change over time and a mech an ism for monit or ing changes is required. Access to suit ably qual i fied and exper i enced experts is a neces sity. Some of these people will be found in organ isa tional func tions and will have an advis ory role for the project; for example, contract law special ists in procure ment. Others may be part of the core project team, for example a health and safety manager as part of a construc tion project. Ad hoc consultancy advice may also be required where the regu lat ory envir on ment is chan ging and there are no suit ably qual i fied inhouse people to advise. Regulations gener ally fall into two categor ies:

� Regulations that set out specific action that must be taken, e.g. those relat ing to the control of substances hazard ous to health.

� Regulations that help employ ers set goals but leave them free to decide how to control the risks that they identify, e.g. manual handing oper a tions.

Many regu la tions are specific to the type of work being under taken by the project, for example those relat ing to construc tion design and manage ment. Many other regu la tions are relev ant to all work, for example those cover ing data privacy or safe guard ing of people at work. In some organ isa tions, compli ance with an International Standard is sought as a means of putting a focus on both regu lat ory compli ance and continu ous improve ment, for example ISO14001:2015 to improve envir on mental perform ance. The regu lat ory envir on ment influ ences a number of project processes, includ ing:

� require ments capture, quality plan ning and integ rated plan ning;

� risk analysis and manage ment;

� issue manage ment and change control;

� assur ance arrange ments.

Failure to comply with any regu la tion can result in advised correct ive action through to fines and/or custodial sentences for both indi vidu als and organ isa tions. The sever ity of sanc tion will depend on the extent and impact of the noncompliance and whether the failure was due to indi vidual actions or a more systemic organ isa tional failure. Sponsors and the wider governance board (see 1.3.5 and 1.3.10) provide support for project profes sion als, ensur ing legal support is avail able where needed. Although most organ isa tions set out to achieve minimum compli ance with all the relev ant regu la tions, some go further and aim to achieve the spirit of the law as well as minimum stand ards. Many organ isa tions have specific object ives and defined appet ite for risk relat ing to areas of compli ance, a common example being a focus on ‘doing no harm’.

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Where projects are being delivered across borders and geograph ical loca tions, there may be many conflict ing regu la tions and stand ards in play. Where this is the case, the relev ant governance struc ture decides what stand ards to align with, seeking special ist advice if in doubt.

Recommended reading

� Understanding Regulation: Theory, Strategy and Practice (2013) is an indepth and multidiscip lin ary discus sion of an area of public policy crucial to modern govern ment. It is a clear and concise intro duc tion to key issues in regu la tion and deals with both the theor ies and prac tice of regu la tion.

� Essentials of Business Law (2018) deliv ers a succinct expos i tion of the core aspects of busi ness law for those seeking an under stand ing of the legal prin ciples and regu la tions that apply to busi ness. Topics covered include contracts, misrep res ent a tion, sales of goods, agency, negli gence, nuis ance, crim inal law, employ ment, part ner ships and company related matters.

� The Paradox of Regulation: What Regulation Can Achieve and What it Cannot (2012) takes a deeper and ques tion ing look at the role of regu la tion and its capa city to reduce risk and enable new activ it ies. Industrial, finan cial and social risks are handled through regu la tions but their use opens up new ques tions about the complex inter play between risk and regu la tion.

Figure 3.3.4 A hier archy of legal and regu lat ory influ ences

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3.3.5 Ethics and stand ards

Maintaining a trusted profes sion

A key require ment of any profes sion is that indi vidual members act ethic ally. Trust and respect are vital to the success of anyone who wants to be regarded as a profes sional. Trust is gained by working consist ently in a moral, legal and socially respons ible manner. It is rein forced by a commit ment to act in accord ance with organ isa tional and profes sional codes of conduct. All leading profes sional bodies, includ ing the Association for Project Management, have a code of conduct to set stand ards, guide profes sion als and raise the level of trust and con fid ence in the profes sion. Professionalism is a demon strable aware ness and applic a tion of compet ences and qual it ies, includ ing know ledge, and appro pri ate skills. The APM FIVE Dimensions of Professionalism provides a frame work to set stand ards and guide the devel op ment of project profes sion als, this includes:

� Breadth: Covered by the APM Body of Knowledge and defines the know ledge needed to manage any kind of project.

� Depth: The APM Competence Framework provides a guide to project, programme and port fo lio manage ment compet ences, mapping levels of know ledge and exper i ence to help progress skills and abil it ies.

� Achievement: Gaining APM recog nised qual i fic a tions.

� Commitment: Continuing profes sional devel op ment (CPD) helps develop project manage ment prac tice.

� Accountability: The APM Code of Professional Conduct outlines the ethical prac tice expec ted of a profes sional.

Accountability and commit ment to the APM Code of Professional Conduct ensures that situ ations such as abuse of a posi tion of trust, loss incurred by clients and/or patterns of poor conduct, compet ence or regu lat ory fail ings do not arise. Where the stand ards for ethical conduct are not being met, project profes sion als have a duty as part of their profes sional stand ards to report any wrong doing. This will not only be to their profes sional body but may have wider legal implic a tions. There is also a respons ib il ity for every one to ‘speak up’ (some times called ‘whis tleblow ing’) and report when any form of wrong do ing is iden ti fied. Organisations are required to have a policy and process to enable indi vidu als to ‘speak up’. Many coun tries also have legis la tion that protects people who report cases of perceived wrong do ing by indi vidu als, for example fraud u lent prac tices, or by compan ies, for example failure to safe guard people’s health and safety. Protection for people who do ‘speak up’ extends to situ ations in the past, happen ing now or poten tially in the future based on evid ence now. It also applies to ‘speak ing up’ about a situ ation in an employee’s own company, or in another company that is part of the project or programme or supply chain.

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Recommended reading

� APM Code of Professional Conduct (2018) outlines the stand ards of profes sional conduct and ethics for all project profes sion als. All indi vidual APM members commit to the APM Code of Professional Conduct, which sets out the stand ards of conduct expec ted by those working in the profes sion.

� Managing Business Ethics: Straight Talk about How to Do it Right (2017) describes how to manage busi ness ethics at indi vidual, mana gerial and organ isa tional levels, promot ing an under stand ing of complex influ ences on beha viour that may be present in the organ isa tional context and/or culture.

� The Public Interest Disclosure Act 1998 is the UK legis la tion requir ing employ ers to put in place a ‘speakup’/whis tleblow ing policy and process, and for employ ees to use it to report perceived wrong do ing.

Figure 3.3.5 The scope of ethics

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3.3.6 Continuing profes sional devel op ment

Continual devel op ment of compet ence

Competence is the combined know ledge, skill and beha viour that a person needs to perform prop erly in a job or work role. Continuing profes sional devel op ment (CPD) is the term used to describe the require ment for any profes sional to continu ally develop their compet ence (Figure 3.3.6). Ongoing CPD involves:

� identi fy ing current and future needs;

� setting specific learn ing object ives and targets;

� plan ning activ it ies to support devel op ment;

� record ing activ it ies and achieve ments.

In order for profes sion als to meet require ments for CPD, they need to take respons ib il ity for identi fy ing their own compet ence gaps and pursu ing learn ing or oppor tun it ies to widen exper i ence to fill those gaps. For employ ees, the employer also has a respons ib il ity to provide support for CPD activ it ies. This may include funded train ing or paid time off to pursue profes sional devel op ment activ it ies, but the respons ib il ity rests primar ily with the indi vidual profes sional to do what is neces sary to meet the CPD require ments of their profes sional body. Qualifications and accred it a tions are one import ant part of a project profes sional’s CPD. APM offer their own qual i fic a tions and accred it a tions. Many other award ing bodies offer qual i fic a tions in project, programme and port fo lio manage ment, includ ing most further educa tion and higher educa tion insti tu tions and some other profes sional bodies. It is often the case that project profes sion als will be accred ited by more than one profes sional body or academic insti tu tion. The Chartered Project Professional (ChPP) stand ard is a profes sional bench mark that demon strates attain ment of a defined level of tech nical know ledge, profes sional prac tice and ethical beha viour. People who attain ChPP status are included on the Register of Chartered Project Professionals. Learning is more effect ive if it is wider ranging than formal courses and qual i fic a tions. This can be done through various formal and informal public a tions and inform a tion sources. Papers in academic journ als, for example the International Journal of Project Management, high light the latest research find ings. Articles in a prac ti tioner magazine, for example Project, explore the profes sion in prac tice. Conferences are good plat forms for both sharing and learn ing. Informal inform a tion sources such as blogs or post ings on social media are a good way of keeping up with current trends and chal lenges of being a project manage ment profes sional. Social media is also a good way of build ing contacts with others in the profes sion. The term ‘reflect ive prac ti tioner’ is used within profes sions to describe people who take time to actively reflect on specific exper i ences and to engage in the process of continu ous learn ing and devel op ment result ing from those exper i ences. Reflective prac ti tion ers do not wait for diges ted know ledge to be presen ted to them, for example on a course, but instead engage with learn ing oppor tun it ies that emerge from mismatches, unre solved issues, daily exper i ences and prac tices.

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Recommended reading

� The Chartered Institute of Personnel and Development’s Competence and Competency Frameworks (2018) exam ines the history, prin ciples and current prac tice around compet ence and compet ency frame works.

� APM’s Road to Chartered series, Paper 4, The Growing Significance of CPD: Ensuring Professionalism in a Dynamic and Changing Workplace (2017), outlines the growing signi fic ance of contin ued profes sional devel op ment within multiple profes sional bodies and provides insights into the import ance of this.

� Reflective Practice: Writing and Professional Development (2018) is a popular resource used by profes sion als in many discip lines to enhance their reflect ive writing skills and to examine their own prac tice in greater crit ical depth in order to improve effect ive ness and selfawareness. The fifth edition includes prac tical tools, examples, case studies and online resources required to facil it ate deeper learn ing and a better informed level of problem solving in a prac tice setting.

Figure 3.3.6 A typical continual professional development (CPD) cycle

Source: Continuing Professional Development (2012)

Figure 3.3.6 ‘A typical continuous professional development cycle’ adapted from Continuing Professional Development by Andrew L. Friedman, Figure 1.2, copyright © 2012, Routledge. Reproduced by permission of Taylor & Francis Books Ltd

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Full refer ences for Section 3.3

3.3.1 Crabbe, S. (2017) Current Practices and Trends in Technical and Professional Communication. London: Institute of Scientific and Technical Communication.

Goman, C. K. (2011) The Silent Language of Leaders: How Body Language Can Help – or Hurt – How You Lead. New York: JosseyBass.

Pilkington, A. (2013) Communicating Projects: An End-to-End Guide to Planning, Implementing and Evaluating Effective Communication. Abingdon: Routledge.

3.3.2 Boyce, T. (1993) Successful Contract Negotiation. London: Thoroughgood.

Fisher, R., Ury, W. and Patton, B. (2011) Getting to Yes: Negotiating an Agreement without Giving in, 3rd edition. London: Penguin Books.

Lax, D. and Sebenius, J. (2006) 3D Negotiation: Powerful Tools to Change the Game in Your Most Important Deals. Boston, MA: Harvard Business School Press.

3.3.3 Knapp, J. and Zeratsky, J. (2018) Make Time: How to Focus on What Matters Every Day. London: Bantam Press.

McLaughlin, J. and Meager, K. (2017) Time Mastery: Banish Time Management Forever. St Albans: Panoma Press.

Tracy, B. (2014) Time Management. New York: American Management Association.

3.3.4 Baldwin, R., Cave, M. and Lodge, M. (2013) Understanding Regulation: Theory, Strategy and Practice, 2nd edition. Oxford: Oxford University Press.

Haines, F. (2012) The Paradox of Regulation: What Regulation Can Achieve and What it Cannot. Cheltenham: Edward Elgar.

Macintyre, E. (2018) Essentials of Business Law, 6th edition. Harlow: Pearson.

3.3.5 Association for Project Management (2018) APM Code of Professional Conduct. Princes Risborough: Association for Project Management. Available at: www.apm.org.uk/media/19286/codeofprofessional conduct.pdf (accessed January 2019).

HM Government (1998) Public Interest Disclosure Act 1998, Chapter 23. London: The Stationery Office.

Trevino, L. and Nelson, K. (2017) Managing Business Ethics: Straight Talk about How to Do it Right. Wiley: Chichester.

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3.3.6 Bolton, G. and Delderfield, R. (2018) Reflective Practice: Writing and Professional Development, 5th edition. London: Sage.

Chartered Institute of Personnel and Development (2018) Competence and Competency Frameworks. Available at: www.cipd.co.uk/know ledge/funda ment als/people/perform ance/competencyfactsheet (accessed 13 November 2018).

Friedman, A. (2017) The Growing Significance of CPD: Ensuring Professionalism in a Dynamic and Changing Workplace. Princes Risborough: Association for Project Management. Available at: www.apm. org.uk/media/6144/charteredreport4_2017_final.pdf (accessed January 2019).

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4 Planning and managing

deploy ment

This chapter is written primar ily for those involved in the endtoend process of deliv er ing a project, whether a stan dalone project or one that is part of a programme and/or port fo lio, and regard less of the life cycle approach taken. Although the profes sional domain has expan ded, as described in many parts of the earlier chapters, the detailed matters asso ci ated with defin ing outputs, integ rated plan ning and controlling deploy ment remain. However, the context for this work is chan ging, with pres sure to respond to an increas ing need for agility and flex ib il ity. As a result, many projects adopt iterat ive rather than linear approaches for at least some part of the life cycle. Moving from highlevel expres sions of stake holder vision or need through to a detailed state ment of work for the chosen solu tion involves a number of steps of refine ment: explor ing object ives; detailed require ments; success criteria; meas ur able bene fits; best value options; scope defin i tion and accept ance criteria for each element of that scope. This work builds a firm found a tion for detailed plan ning. Taking forward the defin i tion of outputs into detailed plan ning requires a focus on multiple areas, and the integ ra tion of those areas into the baseline project manage ment plan. Depending on partic u lar project object ives and the life cycle chosen, differ ent approaches to plan ning time, resources and cost, in the context of risk can be adopted. Controlling deploy ment requires a detailed focus on monit or ing and report ing as well as a commit ment to manage risk, issues and change/vari ations in a discip lined way. The imper at ive to provide audit trails for assur ance, and the oppor tun ity for indi vidual team members and the wider organ isa tions involved to reflect, learn and improve, is an organ isa tional reality for all who work in a compet it ive envir on ment. The chapter is composed of three parts:

4.1 Defining outputs

4.2 Integrated plan ning

4.3 Controlling deploy ment

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4.1 Defining outputs

Moving from highlevel expres sions of stake holder vision or need through to a detailed state ment of work for the chosen solu tion involves a number of steps of refine ment explor ing success criteria, meas ur able bene fits, detailed object ives and require ments, best value options, scope defin i tion and accept ance criteria for each element of that scope. This work builds a firm found a tion for detailed plan ning. The linear progres sion from highlevel expres sions of need and benefit in an early busi ness case through to the specific a tion of detailed require ments, scope and accept ance criteria is well under stood. For many projects, this remains a valuecreating process, espe cially for large scale, highly tech nical projects, where rework is expens ive and does not justify an iter at ive approach. The emer gence and growing popular ity of iter at ive approaches requires us to think about defin ing outputs in a differ ent, more adapt ive way. The danger, however, is to assume that the approaches designed to build in agility and flex ib il ity do not require the discip line to define some things clearly, for example bene fits that justify the invest ment or the accept ance criteria for deliv er ables. Understanding the differ ent options and main tain ing a balance are always import ant. This section, written for all people working to plan and deliver either stan dalone projects or projects within programmes and port fo lios, addresses the follow ing topics:

4.1.1 Success and bene fits: Understanding what success means for differ ent stake hold ers

4.1.2 Objectives and require ments: Comprehensive and meas ur able require ments are crit ical to project success

4.1.3 Options and solu tions: Exploring multiple options until a preferred solu tion is iden ti fied

4.1.4 Scope defin i tion: The trans la tion of require ments into outputs for the chosen solu tion

4.1.5 Quality plan ning: Ensuring outputs are delivered in accord ance with require ments

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4.1.1 Success and bene fits

Understanding what success means for differ ent stake hold ers

Project success is the satis fac tion of stake holder needs and is meas ured by the success criteria agreed at the start of a project. All projects are designed to bring bene fits to the invest ing organ isa tion, but the success criteria for many projects excludes benefit real isa tion as this is handled by another part of the organ isa tion. Benefits there fore are differ ent to success criteria. They are the quan ti fi able and meas ur able improve ments result ing from comple tion of deliv er ables that are accep ted, util ised and perceived as posit ive by a stake holder. Benefits typic ally have a tangible value, ideally expressed in monet ary terms to justify the invest ment. History tells us, however, that it is possible to have a project that fails to deliver the inten ded bene fits but is, never the less, perceived as success ful, or a project that deliv ers signi fic ant bene fits but is considered a failure. Further, differ ent stake hold ers may have differ ing views of success. We can conclude, there fore, that success is a relat ive concept, judged by stake hold ers and the role of the project profes sional is to:

� explore percep tion of success and bene fits;

� facil it ate an agreed posi tion, as far as possible.

Success criteria are agreed with stake hold ers as early as possible but can be changed at any time in the project life cycle, subject to approval through change control (see 4.3.6). In an iter at ive working envir on ment, the team may find it easier to respond to chan ging success criteria as they deliver and regu larly test outputs with end users, allow ing for gradual learn ing and adapt a tion. Achievement of project manage ment success criteria is known at project handover (see 2.3.2) and account ab il ity for achiev ing the project success criteria rests with the project manager. Benefits are often real ised some time after trans ition into use (see 2.3.3), hence account ab il ity for bene fits real isa tion resting with the sponsor. Benefits manage ment involves identi fy ing and agree ing the bene fits and how they will be meas ured, monitored and managed through out the project until they are real ised. A project that is only respons ible for deliv er ing outputs inter faces with the entity respons ible for deliv er ing the bene fits. This may be a programme, port fo lio or businessasusual organ isa tion. The invest ment appraisal and busi ness case for the project or programme depends on attri bu tion of bene fits at the right level – to avoid things being missed, or ‘doublecounted’. To facil it ate this, stake holder consulta tion and bene fits mapping can be an iter at ive process, requir ing good busi ness analysis skills and an ability to influ ence stake hold ers (Figure 4.1.1). A consist ent approach to bene fits iden ti fic a tion and meas ure ment across a programme helps to assess its collect ive impact on busi ness perform ance across the organ isa tion. Similarly, the mapping of stra tegic ally aligned bene fits in a port fo lio ensures that invest ment decisions and the scope of each project and programme, are driven by the contri bu tion of bene fits to achiev ing the oper a tional, organ isa tional or busi ness strategy.

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Recommended reading

� A Guide to Using a Benefits Management Framework (2019) explains what is involved in intro du cing bene fits manage ment as a discip line into an organ isa tion or a large change port fo lio. The guide can also help those who are looking to improve their overall organ isa tional bene fits manage ment capab il ity.

� Sponsoring Change (2018) guides board members and senior managers to adopt good prac tices regard ing spon sor ship of change projects. The guide explains why a sponsor needs to be account able for project success and how they can reduce risks to the organ isa tion and maxim ise the bene fits real ised from projects and programmes.

� Benefit Realisation Management (2010) includes a stepbystep bene fits real isa tion process, explain ing along the way how to: define your projects and programmes by mapping the bene fits; produce a convin cing busi ness case; commu nic ate and get stake holder support; agree the meas ures to monitor progress; and assess the ulti mate success of the project or programme.

Figure 4.1.1 Benefit mapping process

Source: Benefits Capability (2019)

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4.1.2 Objectives and require ments

Comprehensive and meas ur able require ments are crit ical to project success

In many cases, the object ives and needs of a project are derived from the stra tegic aims of a programme or port fo lio. In the case of a stan dalone project, object ives may relate directly to an organ isa tional strategy or to a subset of a strategy defined by the invest ing organ isa tion. In all cases, specific project object ives and require ments are informed by the success criteria and bene fits desired by stake hold ers (see 4.1.1). Project profes sion als ensure that:

� there is a clear linkage between bene fits, project success criteria, project object ives and project require ments; and

� require ments are clear, unam bigu ous and expressed as simply as possible.

A good test is to check that require ments are ‘SMART’, i.e. Specific, Measurable, Achievable, Relevant and Timebased. The sponsor artic u lates object ives with the assist ance and facil it a tion of project profes sion als (e.g. busi ness analysts or systems engin eers) and tech nical staff. Detailing require ments (e.g. ship speed), together with meas ures (e.g. greater than 12 knots), enables accept ance of deliv er ables during trans ition to users. Sometimes, more require ments are reques ted than it is feas ible to deliver, so a prior it isa tion exer cise is needed to high light the most essen tial require ments. A common prior it isa tion tech nique is the MoSCoW approach:

� Must have

� Should have

� Could have

� Won’t have

Some require ments are easier to measure than others. The bene fits desired by the sponsor may lead to require ments that cannot easily be meas ured, for example work to be delivered within a specified ethical or valuesbased frame work. The defin i tion of require ments leads logic ally to design of test and eval u ation criteria to determ ine accept ab il ity. Often, a depic tion of the chosen life cycle as a V, an approach derived from systems engin eer ing, helps this (see Figure 4.1.2). The relev ant staff (ideally, includ ing the project manager) facil it ate the process to gather, analyse, justify and baseline require ments. The motiv a tion is to ensure that essen tial require ments are under stood as an input to the work to select the optimal solu tion and then define the detailed scope of work to be delivered with accept ance criteria. This level of rigour mitig ates the risk that in later life cycle there is dispute between the project and the wider programme, port fo lio or organ isa tion about comple tion and trans ition of the deliv er ables into use. For projects delivered as part of a commer cial contract, this is partic u larly import ant to safe guard both the invest ing and supplier organ isa tion.

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In iter at ive life cycles, require ments can be iden ti fied and elab or ated through cycles of discov ery to reach agree ment and refine the under stand ing of what needs to be done. Some methods express each require ment as a user story, a descrip tion of the specific features reques ted by stake hold ers, captured in natural language and contain ing just enough inform a tion to enable a simple estim ate of the devel op ment effort.

Recommended reading

� Business Analysis and Leadership: Influencing Change (2013) provides prac tical guid ance to people involved in enga ging stake hold ers to agree object ives and require ments. The book includes case studies, prac tical advice and contri bu tions from leading prac ti tion ers and thinkers.

� Requirements Engineering (2017) is a commonly used refer ence and general text in require ments writing. The book gives useful hints to prac ti tion ers on how to write and struc ture effect ive require ments and offers a good under stand ing of the requiremnents process.

� Scrum: How to Leverage User Stories for Better Requirements Definition (2015) has some good hits and tips, together with a selec tion of samples and examples for apply ing an iter at ive life cycle. Scrum is one of the few approaches that make use of the concept of user stories. User stories utilise text narrat ives to describe how a user inter acts with the system and can poten tially be applied to other types of projects.

Figure 4.1.2 An example ‘V’ depic tion of a project life cycle

Source: Planning, Scheduling, Monitoring and Control (2015)

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4.1.3 Options and solu tions

Exploring multiple options until a preferred solu tion is iden ti fied

A key object ive of early life cycle projectwork is to identify the optimal solu tion to satisfy the agreed project require ments. Often, feas ib il ity studies are funded to explore multiple, poten tial options that could satisfy the sponsor’s require ments (Figure 4.1.3). The business case documents the options considered and it is normal practice to include the ‘donothing’ option as a reference. Through this approach, the business case becomes a record of the recommended option with rationale and evidence to support the decision. An optioneering approach requires creativ ity and lateral think ing as well as a process that does not become irra tion ally biased by stake holder pres sure to adopt their preferred (poten tially nonoptimal) option. To avoid decision bias, it is import ant to main tain a broad selec tion of options and to explore the fit of each option with the previ ously agreed bene fits, success criteria, object ives and require ments. Through such a process, recom mend a tions that are evidencebased can be proposed. Depending on the project, there can be many criteria to consider when defin ing options, for example:

� Technical: Process, mater ial, soft ware, future

� Social: People, inter ac tions, needs, rela tion ships

� Procurement: Lease, buy, make, service, part ner ship

� Management: Life cycle, governance

� Transition: Phased, ‘big bang’

Once a compre hens ive set of work able options has been iden ti fied, they can be prior it ised. It is normal to compare options using an invest ment appraisal that considers the tradeoff between wholelife costs, bene fits and deploy ment risks to determ ine the best value for money option. Other criteria may also be used, for example stake holder commit ment to the solu tion, or the fit of the option with the stra tegic analysis of the market for supply of mater i als or services. In the case of linear life cycle projects, there is a need for early analysis of options and the selec tion of a preferred optimum solu tion with scope. In projects where an iter at ive life cycle has been chosen, there is the oppor tun ity to main tain the options space for longer. The iter at ive approach can allow differ ent design options to explored while the needs are being invest ig ated in another cycle. Iterative devel op ment can provide a manage ment envir on ment where the solu tion is released in incre ments provid ing the oppor tun ity of progress ive user feed back and gradual unfold ing of require ments. The prin ciples and prac tices of value manage ment are very useful when option eer ing, putting a focus on increas ing the propor tion of satis fied require ments for the resources to be used. Following the invest ment decision, the preferred option/solu tion is confirmed. Any changes there after are progressed through formal change control (see 4.2.7).

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Recommended reading

� The Green Book (2018) includes a refer ence for the appraisal of options and economic consid er a tion of projects, whether the project is public or private.

� Directing Agile Change (2016) provides an explan a tion of the differ ences between predict ive and adapt ive life cycles.

� Decision Quality: Value Creation from Better Business Decisions (2016) provides a model for assess ing the fit of decisions with require ments, using a mix of quant it at ive and qual it at ive criteria.

� Lateral Thinking: A Textbook of Creativity (2016) is an updated version of a found a tional text address ing tech niques for creat ively and lateral think ing when option eer ing.

Figure 4.1.3 Comparing multiple options using a spider plot

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4.1.4 Scope defin i tion

The trans la tion of require ments into outputs for the chosen solu tion

‘Scope’ is the term used in the manage ment of projects to refer to the total ity of the outputs, outcomes and bene fits and the work required to produce them. Scope manage ment is the process for identi fy ing, defin ing and controlling scope. A highlevel scope is typic ally recor ded in the busi ness case (see 1.3.7) in support of the chosen option and its invest ment appraisal. In defin ing scope, it is import ant to be clear about the bound ar ies and inter faces with adja cent projects. This is crit ical to avoid duplic a tion, conflicts or omis sion of work within a programme or port fo lio, or between other stan dalone projects or businessasusual work. The detailed scope of work emerges from the decom pos i tion of chosen option to meet the spon sors require ments. Following the categor isa tion of the require ments, the project manager is able to direct those categor ies of require ments to the most suit able tech nical resource for detailed scope defin i tion. During the scoping process, assump tions are docu mented, in partic u lar to clarify work that is not in scope but may have been assumed to be, for example:

� business change activities that will be resourced by businessasusual not the project;

� custom isa tion of the report ing func tion al ity of a soft ware imple ment a tion; or

� provi sion of underfloor heating in a build ing refur bish ment.

Clearly defin ing what is in and out of scope prevents the risk of misun der stand ing at a later point in the project that may lead to emer ging issues and change requests. Incomplete scope defin i tion is a common cause of time delays, cost growth and benefit reduc tion. In projects with a linear life cycle, the baseline scope of work is defined through a break down struc ture to define the activ it ies which will be sched uled and resourced to meet all the require ments and bene fits. Typical break down struc tures used are (Figure 4.1.4):

� Product (or service) break down struc ture – What will be delivered

� Work break down struc ture – Activities to be completed

� Cost (or organ isa tion) break down struc ture – The labour or nonlabour resources needed to complete the work

Scope defin i tion in linear life cycle projects is assumed to be fixed. Time, cost and quality to meet the scope is defined in the remainder of the project plan ning process. In projects using an iter at ive life cycle, it is equally import ant to struc ture the scope of work and record the assump tions. The differ ence in this scen ario is that the ‘musthave’ require ments are prior it ised in user stories and these are trans lated into a target scope of work to be achieved within a fixed time window with defined resources. Subsequent iter a tions may alter the scope based on accu mu lated exper i ence, acquired insights and emer ging prior it ies.

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Recommended reading

� APM’s Planning, Monitoring and Control Specific Interest Group guide, Planning, Scheduling, Monitoring and Control (2015), provides a detailed explan a tion of scope defin i tion and how various break down struc tures relate to each other. This is import ant to ensure that the lowest level of scope defin i tion enables effect ive monit or ing of time, cost and quality.

� APM’s Earned Value Management Specific Interest Group guide, Earned Value Management Handbook (2013), provides addi tional inform a tion regard ing the break down struc tures and the estab lish ment of the control accounts if earned value approaches are being used.

� User Stories Applied: For Agile Software Development (2004) remains the classic goto book on using user stories in agile soft ware devel op ment. The book explains what user stories are and how they can be used, before provid ing a detailed blue print for how to use user stories and how to weave them into the soft ware devel op ment life cycle.

Figure 4.1.4 Relationship between break down struc tures

Source: Planning, Scheduling, Monitoring and Control (2015)

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4.1.5 Quality plan ning

Ensuring outputs are delivered in accord ance with require ments

‘Quality’ is defined as the fitness for purpose or the degree of conform ance of the outputs of a process, or the process itself to require ments. Quality plan ning takes the defined scope of the project (or the next phase or time period in an iter at ive life cycle) and specifies the criteria to be used to valid ate that the outputs are fit for purpose and accept able to the sponsor (Figure 4.1.5). In 1.3.2 (assur ance prin ciples) and 2.2.4 (audits and assur ance), the approach to assur ing the overall governance and manage ment of a project, programme or port fo lio was outlined. Quality plan ning is focused on the specific outputs of a project to enable quality control during deploy ment (see 4.3.8). The quality plan sets out the desired attrib utes of work in scope and how these are to be assessed. To do this, it refer ences applic able regu la tions, stand ards, specific a tions and, in some cases, values of the invest ing organ isa tion. Statements in quality plans, often called ‘accept ance criteria’, provide guid ance to the team about the require ments and essen tial condi tions for the deliv er able that they are working on. They also guide the plan ning of quality control and other assur ance activ it ies that are performed to check that outputs meet require ments. It is import ant to do this after scope defin i tion and before any further plan ning as quality control and assur ance activ it ies take time and consume resources that need to be sched uled and costed. The quality plan docu ments:

� methods of veri fy ing that the outputs meet require ments;

� pass/fail criteria for each method;

� frequency of the tests, checks or audits that will be carried out;

� require ments for resources required, for example partic u lar test equip ment; suit ably qual i fied and exper i enced staff who may be provided by the deliv ery organ isa tion or a part of the supply chain; stake holder approvals.

Obtaining stake holder agree ment facil it ates the handover of the project’s outputs on comple tion and plan ning early how this will be done is a key success factor for project manage ment. When using an iter at ive life cycle, target accept ance criteria for outputs along side the ‘must have’ require ments for scope are defined and delivered within the defined time period. Although quality control and assur ance are built into an iter at ive devel op ment process, the over arch ing accept ance criteria for the final product still need to be defined and approved by the sponsor, for example that the final product will conform to certain regu lat ory stand ards. The quality plan is agreed with the sponsor and wider governance board as a key part of the integ rated project manage ment plan. Where a project is part of a programme, some of the over arch ing quality require ments may be planned and controlled at programme level, with projects follow ing the stand ard defined by the programme for its constitu ent projects.

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Recommended reading

� The Essence of Managing Quality for Projects and Programmes (2017) addresses quality from a project and programme perspect ive.This brief and handy resource addresses the quality defin i tion process as the initial task before linking it to quality plan ning and follow ing the link to execu tion. It also offers guid ance on setting expect a tions and quality roles.

� Project Quality Management: Why, What and How (2014) is a detailed guide, cover ing most aspects of quality manage ment related to projectwork. The section on quality plan ning addresses prior it isa tion, require ments and stand ards and the specific links between quality plan ning and project plan ning.

� Managing Quality in Projects (2012) offers a broad and balanced intro duc tion to the topic of quality in project prac tice. The book traces key concepts and applied prin ciples and frame works. A key emphasis is on examin ing how quality should be defined and meas ured and how good prac tice can be applied to deliver project excel lence.

Figure 4.1.5 Quality plan ning in the context of wider quality manage ment

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Full refer ences for Section 4.1

4.1.1 APM Benefits Management Specific Interest Group (2019) A Guide to Using a Benefits Management Framework. Princes Risborough: Association for Project Management.

APM Governance Specific Interest Group (2018) Sponsoring Change: A Guide to the Governance Aspects of Project Sponsorship, 2nd edition. Princes Risborough: Association for Project Management.

Bradley, G. (2010) Benefit Realisation Management: A Practical Guide to Achieving Benefits through Change, 2nd edition. Abingdon: Routledge.

4.1.2 Dick, J., Hull, E. and Jackson, K. (2017) Requirements Engineering, 4th edition. New York: Springer.

Hanley, J. (2015) Scrum: How to Leverage User Stories for Better Requirements Definition, Vol. 2. CreateSpace Independent Publishing Platform.

Pullan, P. (2013) Business Analysis and Leadership: Influencing Change. London: Kogan Page.

4.1.3 De Bono, E. (2016) Lateral Thinking: A Textbook of Creativity. London: Penguin Books.

HM Treasury (2018) The Green Book: Central Government Guidance on Appraisal and Evaluation. London: The Stationery Office.

Spetzler, C., Winter, H. and Meyer, J. (2016) Decision Quality: Value Creation from Better Business Decisions. New Jersey: J. Wiley & Sons.

Wernham, B., Pyne, A., Garrini, R. and Samphire, M. and APM Governance Specific Interest Group (2016) Directing Agile Change. Princes Risborough: Association for Project Management.

4.1.4 APM Earned Value Management Specific Interest Group (2013) Earned Value Management Handbook. Princes Risborough: Association for Project Management.

APM Planning, Monitoring and Control Specific Interest Group (2015) Planning, Scheduling, Monitoring and Control. Princes Risborough: Association for Project Management.

Cohn, M. (2004) User Stories Applied: For Agile Software Development. Boston, MA: Addison Wesley.

4.1.5 Bartlett, J. (2017) The Essence of Managing Quality for Projects and Programmes, 2nd edition. Abingdon: Routledge.

Basu, R. (2012) Managing Quality in Projects. Abingdon: Routledge.

Rose, K. (2014) Project Quality Management: Why, What and How, 2nd edition. Plantation, FL: J. Ross Publishing.

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4.2 Integrated plan ning

Taking forward the defin i tion of outputs into detailed plan ning requires a focus on multiple areas, and the integ ra tion of those areas into the baseline project manage ment plan. Depending on partic u lar project object ives and the life cycle chosen, differ ent approaches to plan ning time, resources and cost, in the context of risk can be adopted. When using a linear life cycle approach, the assump tion under pin ning integ rated plan ning is that all the work can be defined, estim ated, sched uled, risked, resourced and costed – maybe to differ ent levels of gran u lar ity in the near term than the long term – never the less, that a baseline can be estab lished from which deploy ment can be managed and controlled. Unexpected issues will inev it ably arise during deploy ment, but this does not negate the need for the best plan possible before work starts. For many projects, this is an appro pri ate approach to take and the topics in this section cover the differ ent elements that come together to create the deploy ment baseline. When using an iter at ive life cycle approach, a baseline plan is still required, but the assump tions under pin ning the plan are differ ent, with flex ib il ity and agility built into the think ing. Guidance on applic a tion of the topics in this section to iter at ive life cycle approaches is provided, although we recog nise that there are many differ ent meth od o lo gies that exist for iter at ive or agile devel op ment. The language through the section used is inten ded to be generic and not favour any partic u lar bespoke method. As previ ously discussed in 1.2.4 and 2.2.2, many organ isa tions use a hybrid linear/iter at ive approach to projects and programmes most of the time. The chal lenge is to plan in the most effect ive way to give the invest ing organ isa tion(s) the best possible chance of achiev ing the object ives and bene fits described in the busi ness case. This section, written for all people working to plan and deliver either stan dalone projects or projects within programmes and port fo lios, addresses the follow ing topics:

4.2.1 Contract award: Selecting suppli ers and setting up contracts for success

4.2.2 Risk iden ti fic a tion: Ensuring know able risks are under stood

4.2.3 Risk analysis: Ensuring project plans take account of vari ab il ity and risk events

4.2.4 Estimation: Prediction of time and resources required to complete the scope of work

4.2.5 Scheduling – crit ical path: Timebased plan ning with an emphasis on activ it ies

4.2.6 Scheduling – crit ical chain: Timebased plan ning with an emphasis on resources

4.2.7 Resource optim isa tion: Managing scope, quality, time and cost in a constrained system

4.2.8 Cost plan ning: Understanding where costs fall over time

4.2.9 Contingency plan ning: Ensuring plans reflect required confid ence levels

4.2.10 Deployment baseline: Agreeing the integ rated plan to enable managed deploy ment

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4.2.1 Contract award

Selecting suppli ers and setting up contracts for success

The award of a contract is the culmin a tion of the stra tegic effort spent on sourcing and procure ment (see 1.3.4 and 2.1.4) to match the object ives and require ments of the chosen solu tion for the project. Typically, contracts are awarded through a process of decid ing between compet ing suppli ers (Figure 4.2.1). To select the parti cipants in a compet it ive tender, a prequal i fic a tion process is usually under taken, whereby a broad selec tion of invit ees is narrowed down to a shorter list of tender ers through a sifting of capab il it ies. This process might result in only one qual i fy ing tenderer, or, indeed, the project may have already decided to procure from a single source. In this case, the project can enter into a nego ti ation process to agree terms. Where multiple parties have prequalified, the next stage is the invit a tion to tender. Here, short l is ted candid ates are reques ted to submit their best offers against a common state ment of deliv er ables and in accord ance with set contract condi tions. A tender dead line is set. Good prac tice dictates that late bids are disqual i fied. It is good prac tice for all bids to be opened simul tan eously after the dead line even if any were submit ted early. The project profes sional devel ops the criteria for judging the tender compet i tion with the sponsor. This may be form ally rati fied by the governance board. The follow ing consid er a tions apply:

� How will relat ive prior it ies of time, cost and quality (for the defined scope) be reflec ted? Best value is not always repres en ted by the lower cost. A scoring system is often devised, assign ing relat ive values to the elements of contract scope and it is good prac tice to commu nic ate this to tender ers when the invit a tion to tender is issued.

� Who will assess tenders? It is typical for a tender assess ment panel to be appoin ted, includ ing tech nical and commer cial experts as well as the sponsor and other stake hold ers repres ent ing the invest ing organ isa tion.

� How will confid en ti al ity be assured? To main tain the compet it ive nature of the process, as well as for ethical reasons, confid en ti al ity between bidders is main tained.

� Is there specific legis la tion govern ing contract award? The project profes sional needs to be aware of such regu la tion and ensure compli ance. Award irreg u lar ity discovered at a later date might negate the terms of the contract or leave the invest ing organ isa tion open to legal penal ties.

Having assessed the tenders, it is usual to select a short l ist of contract ors to invite for bid clari fic a tion discus sions. When a preferred bidder is selec ted, a further engage ment stage might be entered into to final ise the deal. It is good prac tice for a backup candid ate to be iden ti fied to call upon in the event that nego ti ations or rela tion ships with the preferred bidder break down.

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Recommended reading

� The Project Manager’s Guide to Purchasing: Contracting for Goods and Services (2010) is a prac tical guide to the process of contract ing. The book focuses on the steps between select ing a tender to placing a contract. Chapter 8 is dedic ated to select ing the tender ers, chapter 9 to the enquiry process and chapter 11 is concerned with eval u at ing the tenders.

� Section 5 of Guide to Contracts and Procurement (2017) looks at prepar ing the contract terms and require ments, while section 6 is concerned with select ing the provider and award ing the contract. Developed by APM Contracts and Procurement Specific Interest Group, the guide covers each step in detail, util ising an input, activ ity and output struc ture.

� Bids, Tenders and Proposals: Winning Business through Best Practice (2015) adopts the supplier perspect ive, offer ing guid ance on struc tur ing bids and tenders. After explain ing how to write and struc ture the docu ments and the process, chapter 23 explains how clients eval u ate tenders.

Figure 4.2.1 Essential steps in contract award

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4.2.2 Risk iden ti fic a tion

Ensuring know able risks are under stood

Uncertainty and risk are everpresent features of projectbased work. Organisations are better prepared to be success ful when the governance board and team under stand those uncer tain ties with the poten tial to mater i ally impact on the achieve ment of object ives, either posit ively (upside oppor tun it ies) or negat ively (down side threats). The first essen tial step in risk iden ti fic a tion is to be clear about the object ives that are ‘at risk’. The overall appet ite for risk of the invest ing organ isa tion is trans lated into a set of calib rated impact scales that repres ent the object ives at risk, and the size of impact that would be toler able and intol er able. For example, is a high impact on project cost a 5 per cent vari ance to budget, 10 per cent vari ance or greater? Once impact scales have been defined, the project profes sional can facil it ate the process to identify specific risk events. Different people have differ ent percep tions of what is risky and why. Because risk analysis is funda ment ally perceptionbased, it is import ant for the project profes sional to engage stake hold ers early to identify risks. The object ive of risk iden ti fic a tion is to draw out all know able risks to project object ives. Risk iden ti fic a tion is a creat ive, diver gent process that bene fits from the input of a wide range of people using a method that does not restrict or bias their think ing. Working with stake hold ers and the team to discuss risk is one area that requires a facil it at ive approach and a means of provid ing neutral chal lenge to address any decision bias (see 3.1.4). Workshops are often used for this purpose, although altern at ive approaches that enable indi vidu als to contrib ute without any chance of group bias can be more useful. To make sense of differ ing percep tions, it is import ant to describe risk events clearly, separ at ing causes (facts now or stable plan ning assump tions), from risk events (situ ations that may occur), from effects (that have an impact on one or more of the project specific scales already defined). This enables subsequent analysis and manage ment of risks. It is also vital that the correct risk owner is defined for each risk event at this stage in the risk manage ment process. Risk owners are indi vidu als or groups who are best placed to assess and manage the specific risk. Working with the risk owner, the project profes sional ensures that risks are clearly described in the risk register before moving on to the risk analysis step of the risk manage ment process. When working in an iter at ive life cycle, or an adapt ive phase in a hybrid life cycle, risk iden ti fic a tion remains relev ant but has a differ ent focus. A riskbased approach is important as an embedded mindset. This mindset influences the design of each iteration and ensures a continual focus during deployment on what is risky and why, and what can be done about it.

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Recommended reading

� APM’s Risk Management Specific Interest Group Project Risk Analysis and Management (PRAM) Guide (2010) contains a detailed explan a tion of why it is import ant to identify risk events and how to do this in a way that is as unbiased as possible.

� A Short Guide to Facilitating Risk Management: Engaging People to Identify, Own and Manage Risk (2011) is a prac tical and easytoread book that addresses the many pitfalls asso ci ated with making risk manage ment work in prac tice, includ ing many tips regard ing the risk iden ti fic a tion step in the overall risk manage ment process.

� Managing Risk in Projects (2009) places risk manage ment in its proper context in the world of project manage ment, and emphas ises the central concepts that are essen tial to under stand why and how risk manage ment should be imple men ted. The book compares differ ent stand ards and perspect ives, showing the role and posi tion ing of risk iden ti fic a tion.

Figure 4.2.2 Describing risks using a defined structure

Source: PRAM Guide (2010)

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4.2.3 Risk analysis

Ensuring project plans take account of vari ab il ity and risk events

Risk analysis is the assess ment and synthesis of estim at ing uncer tainty and specific risk events to gain under stand ing of their indi vidual signi fic ance and/or their combined impact on object ives (Figure 4.2.3). It is normal in projects to refer to qual it at ive analysis of specific risk events which is a prior it isa tion process, and to quant it at ive analysis. Quantitative analysis can be focused on specific riskbased decisions using tech niques like decisiontrees or sens it iv ity analysis, or to look at the combined effects of estim at ing uncer tainty and specific risk events on the overall achieve ment of object ives to determ ine overall project risk. The project profes sional works with risk owners to carry out basic qual it at ive analysis as a minimum to identify and prior it ise risk events based on as assess ment of the:

� prob ab il ity/like li hood of occur rence; and

� size of impact on sched ule, cost, bene fits and poten tially other object ives.

For qual it at ive risk analysis to be as useful as possible, it is import ant to focus on the object ives at risk and then calib rate project specific impact scales, as described in 4.2.2. Calibrating projectspecific impact scales enables mean ing ful qual it at ive risk prior it isa tion and eval u tion of the cost–benefit of risk responses (see 4.3.3). Many organ isa tions only require a qual it at ive risk analysis to be conduc ted. Others require a qual it at ive risk analysis for all projects and a more soph ist ic ated assess ment of overall project risk for larger or more complex projects and in support of the invest ment decision. Where an assess ment of overall project risk is required, this typic ally happens using a prob ab il istic risk analysis approach using Monte Carlo simu la tion. Inputs to a prob ab il istic risk analysis are:

� The baseline sched ule and finan cial model of costs and bene fits.

� Assessment of the range of uncer tainty in estim ates (e.g. productiv ity may vary by –5 per cent and +15 per cent; see also 4.2.4).

� The impact of each specific risk event expressed as a range, with a mostlikely impact where this is relev ant (see also 4.2.4).

� Mapping of estim ates of uncer tainty and risk events to specific parts of the sched ule and/ or cost/benefit model.

� An under stand ing of how line items in the sched ule and cost/benefit model are correl ated (e.g. where a risk event would impact on more that one area to a similar extent).

Outputs from a prob ab il istic risk analysis help the project profes sional to: � Understand the prob ab il ity of achiev ing partic u lar outturn dates, costs or bene fits.

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� Inform and influ ence decisionmaking about the chances of achiev ing the busi ness case and plan.

� Agree the level of contin gency to provide the required level of confid ence (see 4.2.9).

All risk analysis relies on a good under stand ing of stake holder percep tion of risks, so com petent qual it at ive analysis is a neces sary input to all busi ness cases and plans at project or programme levels, regard less of the life cycle approach chosen.

Recommended reading

� APM’s Risk Management Specific Interest Group has three relev ant guides on the analysis of risk: Project Risk Analysis and Management (PRAM) Guide (2010), Project Risk Analysis and Management Mini Guide (2018) and Prioritising Project Risks (2008). These guides summar ise current think ing on tools and tech niques for qualitative and quant it at ive risk analysis.

� Practical Project Risk Management: The ATOM Methodology (2012) provides a stepby step guide to how to imple ment a risk manage ment process for any project. This includes detailed advice on how to make a qual it at ive risk analysis process as object ive as possible as well as prac tical advice on build ing risk models for Monte Carlo simu la tion.

Figure 4.2.3 Example prob ab il ity/impact grid to qual it at ively prior it ise risk events

Source: PRAM Guide (2010)

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4.2.4 Estimation

Prediction of time and resources required to complete the scope of work

Estimation in a project context is the approx im a tion of time and cost required to complete the scope of work to the defined quality require ments. Depending on the life cycle adopted, estim ates may be to deliver the project to the point of trans ition into use or may be for the planned working life of the product/service. As time progresses, it is assumed that more is known and there fore estim ates become more accur ate. Estimates have multiple purposes:

� to conduct economic analysis for invest ment apprais als and option selec tion to support judge ments about value for money (see 1.3.6 and 1.3.7);

� as an essen tial input for creat ing a resourced sched ule (see 4.2.5, 4.2.6 and 4.2.7);

� to enable budget setting and consid er a tions of afford ab il ity (see 4.2.8);

� as the start ing point for risk analysis and contin gency determ in a tion (see 4.2.3 and 4.2.9).

Estimates can be made using topdown or bottomup methods (Figure 4.2.4). Topdown estim ates are useful in early life cycle, when detailed inform a tion is not avail able. Methods include:

� Parametric: Uses a stat ist ical rela tion ship between historic data and other vari ables to calcu late an estim ate.

� Analogous: The compar ison with similar histor ical projects to determ ine the likely outturn time and cost.

Bottomup estim ates are typic ally used to valid ate topdown estim ates before a final invest ment decision. Methods include:

� Analytical: The addi tion of detailed estim ates for labour and nonlabour resources to complete the activ it ies in scope.

� Delphi: The gener a tion of a cost through team consensus.

All estim ates are predic tions of the future and so are funda ment ally educated guesses. Project profes sion als work to make estim ates as real istic as possible. External inform a tion from sup pliers may be used where the supplier is best placed to provide estim ates of time and cost. It is also vital to docu ment assump tions under pin ning an estim ate to ensure the basis of estim ates are under stood and as a vital input to risk analysis and contin gency determ in a tion. Project profes sion als often use threepoint estim ates, to commu nic ate the range of poten tial dura tion, cost or benefit and to make a judge ment about any mostlikely point in that range. Threepoint estim ates are super ior to singlepoint estim ates that hide the assump tions under pin ning the estim ate.

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Iterative life cycle estim at ing requires the same level of data, docu ment a tion and rigour as adopted for linear life cycles. An overall estim ate of a project or programme with an iter at ive life cycle will be required for the busi ness case. Estimating within an iter a tion focuses on aggreg at ing the expec ted dura tion of indi vidual tasks or using story points to obtain an indic a tion of overall progres sion towards a user story. Estimating is not a oneoff activ ity util ised for the invest ment appraisal and busi ness case only, but a continu ous process used for the adjust ment of the integ rated project manage ment plan as the project progresses through the life cycle.

Recommended reading

� The APM/Association of Cost Engineers (ACostE) Estimating Guide (2019) is a prac tical docu ment for project manage ment on approach ing estim at ing, types of estim ates and the process.

� Working Guides to Estimating and Forecasting, Vols 1–5 (2018) is a more detailed academic, yet humor ous, guide to estim at ing, with a large body of work dealing with the theor ies essen tial to estim at ing.

� Systems Cost Engineering (2009) provides a number of prac tical applic a tions for the use of para met ric cost models within projects, includ ing supplier assess ment, tech no logy inser tion and soft ware estim at ing.

Figure 4.2.4 Multiple estimation as a source for confidence

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4.2.5 Scheduling – crit ical path

Time-based plan ning with an emphasis on activ it ies

Time schedul ing is a collec tion of tech niques used to develop and present sched ules that show when work within a project is planned to be performed. A project sched ule can reside within a programme or port fo lio sched ule and have depend en cies on the comple tion of other projects. There are prin cip ally two types of schedul ing: crit ical path and crit ical chain (see 4.2.6). The crit ical path approach places the emphasis on the activ it ies in a project and under stand ing the shortest time to complete all activ it ies in a logical order. To do this, inter de pend en cies (altern at ively called preced ence rela tion ships) between each activ ity that forms the scope of work to be completed need to be agreed. Establishing the logic between the activ it ies enables a preced ence network to be determ ined. Then estim ates of dura tion (based on the effort required) can be made. Ideally, threepoint estim ates of dura tion are made for each activ ity, i.e. best and worst cases and the mostlikely point in that range. If the estim ated dura tion is predicted by the project profes sion als within a team, it is more likely to be accep ted, rather than having a sched ule imposed by one person or from the programme level. Critical path analysis is now almost exclus ively performed using desktop schedul ing soft ware, although it is a key skill for project profes sion als to under stand how this is done so they can verify that the project sched ule is built on complete and defens ible logic (Figure 4.2.5). For prac tical reasons, a rolling wave plan ning approach to schedul ing is useful, with near term activ it ies considered in detail and later stages of the project considered at a more abstract level. Within a large project, there can be a number of indi vidual sched ules to deal with differ ent aspects of the project. The master sched ule combines, coordin ates and keeps track of all subor din ate sched ules within the project scope. When using an iter at ive life cycle, rather than consid er ing scope and quality as fixed and estim at ing time (and cost), a timebox approach is used – a fixed period of time with determ ined resources, during which scope is completed to quality as effi ciently as possible. Timeboxes in projects are often sized for a few weeks and some methods refer to these time boxes as ‘sprints’. Timeboxes and an iter at ive life cycle approach are commonly used to manage tech no logically novel or risky projects. The project is repeatedly tasked with satis fy ing require ments, iter at ively moving the solu tion towards a satis fact ory conclu sion in short, set periods of time. In programmes, defined periods of time that are planned to achieve a step change in capab il ity and bene fits real isa tion are usually referred to as ‘tranches’. The results of all these tech niques are usually presen ted using a visu al isa tion that shows activ it ies as bars on a timeline, known as a Gantt chart.

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Recommended reading

� APM’s Planning, Monitoring and Control Specific Interest Group guide, Planning, Scheduling, Monitoring and Control (2015) explains in section 6.1 how to sched ule projects in detail, with definitons of key terms related to the crit ical path method.

� The Scheduling Maturity Model (2012) provides insight into the prac tices needed to build a fitforpurpose project sched ule.

� APM Introduction to Programme Management (2016) provides the rela tion ship between the project sched ule and the master sched ule and programme.

Figure 4.2.5 Precedent relationships in critical path analysis

Source: Planning, Scheduling, Monitoring and Control (2015)

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4.2.6 Scheduling – crit ical chain

Time-based plan ning with an emphasis on resources

Section 4.2.5 described schedul ing using the crit ical path method. This section focuses on the crit ical chain method, altern at ively called ‘resource crit ical path’ because it places the emphasis on the resources (labour and nonlabour) in a project, while the crit ical path emphas ises the activ it ies. The crit ical chain approach attempts to keep resources at a constant util isa tion, avoid ing common working prac tices such as:

� multi task ing between activ it ies;

� not start ing planned work at the earli est start date and commit ing time until it is finished.

Both these prac tices result in any float (time contin gency) in the estim ate being lost to the overall project. Using the crit ical chain method, estim ates are optim istic (the best case in a threepoint estim ate or a percentage of a singlepoint estimate) and rather than holding time contin gency within the estim ate, it is stripped out and included as a buffer for a (crit ical) chain of activ it ies (Figure 4.2.6). For this method to work, people and other resources need to be avail able at the time when an activ ity can start, and achiev ing this requires the team and wider stake hold ers who may need the same resources for other work to agree on how this will be achieved. Critical chain depends on a culture being created within the project, where it is accep ted that best case estim ates will rarely be achieved but on the under stand ing that all work will be completed as soon as possible and that the buffer for the chain is avail able to protect the whole. Using this approach, once resources (people or equip ment) are alloc ated, they focus solely on complet ing the activ ity to the required quality stand ard as quickly as possible. The aim is to over come the tempta tion to delay activ it ies or to do extra work when there seems to be enough time. Rather than monit or ing start and end dates the focus is on encour aging resources to act as quickly as possible, regard less of dates. The rate of consump tion of the buffer is used to control the project sched ule and subsequent finan cial perform ance (see 4.3.1). In projects where time is crit ical, there is empir ical evid ence that outoftheordinary results can be achieved. The purpose of crit ical chain is the same as crit ical path analysis, i.e. to:

� enable analysis of the work to be conduc ted;

� determ ine the start and end dates for the work;

� use scarce resource effi ciently.

If resources were unlim ited and always avail able, then the crit ical path and crit ical chain method for schedul ing would give the same result.

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Recommended reading

� Critical Chain (1997) is an access ible busi ness novel and the first public a tion to intro duce crit ical chain as a way of managing projects, with the main emphasis on the resources required to execute project tasks. The book dismisses the ideas of the engin eer ing estim ate and the project mile stone and offers new altern at ive concepts such as project buffers and multi task ing to replace them, suppor ted by the theory of constraints.

� Critical Chain Project Management (2005) offers detailed cover age of all aspect of the crit ical chain schedul ing approach, includ ing meas ur ing, control, risk manage ment, multiple project selec tion, crit ical chain networks and the applic a tion of lean and six sigma tech niques.

� The Executive Guide to Breakthrough Project Management: Capital & Construction Projects; On-Time in Less Time; On-Budget at Lower Cost; Without Compromise (2016) is primar ily focused on construc tion and capex projects but presents crit ical chain think ing as a way of redu cing the risk, cost and dura tion of projects.

Figure 4.2.6 Comparing schedul ing approaches

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4.2.7 Resource optim isa tion

Managing scope, quality, time and cost in a constrained system

Project profes sion als appre ci ate that projects reside within larger organ isa tional struc tures. In a stan dalone project, the sponsor defines the relat ive prior it ies of scope, quality, time, cost and bene fits real isa tion. Where projects are within programmes and/or port fo lios, further constraints are imposed. As a result, project profes sion als are not able to make decisions alone that would result in:

� changes to scope;

� differ ent accept ance criteria (quality) of outputs;

� deliv er ing outputs, outcomes and bene fits later than prom ised.

Instead, this requires them to use scarce resources optim ally. Beyond the crit ical chain approach (see 4.2.6), there are two basic options avail able to the project profes sional: resource level ling and resource smooth ing. Resource level ling answers the ques tion: ‘With the resources avail able, when will the work be finished?’ Project profes sion als use level ling when projects are depend ent upon limited resources, for example test pilots or special ist testing equip ment. Using a linear life cycle, fitting the scope of work into any resource cap and holding the quality results in delay to planned comple tion dates of activ it ies and an overall increased dura tion. Projects using an iter at ive life cycle ensure require ments are prior it ised and imple men ted within the preallocated resources, varying the scope and quality achieved within the timebox, if needed. However, if all the scope is needed to the specified quality, addi tional time is inev it ably needed, so specific features may be sched uled for a subsequent iter a tion. Resource smooth ing is used when scope and quality are not nego ti able, and time is relat ively more import ant than cost. This involves adding resources, for example more people, the same number of people working longer hours, or addi tional equip ment and then trying to get a ‘smooth’ usage of resources, avoid ing peaks and troughs of resource demand. To achieve a smoothed resource profile may require some redefin i tion of the order of some of the work, where the logic used origin ally was discre tion ary not mandat ory, for example where work could be done in paral lel rather than in sequence. Achieving the optim ally resourced sched ule can be a creat ive process requir ing multiple iter a tions to get the best result possible. There is, of course, a finite limit to the resource that can be put into some tasks due to constraints on phys ical space, organ isa tion or the time taken for a process to complete. If resource really is finite, there are no more hours avail able from skilled people or no more equip ment avail able, then there is no option but to extend dura tions and the overall project time to accom mod ate this (Figure 4.2.7). The result of resource optim ising, whether involving the crit ical chain approach or resource level ling or smooth ing of a crit ical pathbased sched ule, is a curve that shows the planned deploy ment of resource (and there fore cost) to complete the scope and quality over time. This idea is expan ded further in 4.2.8.

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Recommended reading

� APM’s Planning, Monitoring and Control Specific Interest Group guide Planning, Scheduling, Monitoring and Control (2015) explains in detail in section 16.3 how to perform resource level ling and resource smooth ing.

� Project Management (2013) covers most aspects of project manage ment, with two chapters dedic ated to schedul ing resources. Chapter 15 covers the basic prin ciples, explain ing resourcelimited and timelimited schedul ing, whilst chapter 16 offers prac tical advice on which resources to optim ise.

� The Handbook of Project-Based Management: Leading Strategic Change in Organizations (2014) looks at deliv er ing bene fi cial projects. The chapter on perform ance also looks at resources, offer ing altern at ive views of resource smooth ing for a project sched uled by early start and late start, and for smooth ing focused on prior it ising differ ent types of resources.

� The Resource Management and Capacity Planning Handbook (2014) is a dedic ated guide for prac ti tion ers. The book begins by explor ing the current state of affairs in resource plan ning, while chapter 3 addresses things that cause havoc with resource effi ciency and suggests approaches for dealing with the issues.

Figure 4.2.7 Resource level ling and smooth ing options

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4.2.8 Cost plan ning

Understanding where costs fall over time

Cost plan ning is an essen tial part of the project manage ment process, the creation of a justi fied and cred ible cost for a project is a good start; however, the fore cas ted cost alone is not enough to enable project control. In addi tion, project managers need to under stand where costs fall in their sched ule to manage resource demand, supplier’s payments and funding requests. The resource optim ised sched ule (see 4.2.6 and 4.2.7) is the essen tial input to cost plan ning – to build up a picture of the cost of the planned resources over time. In some organ isa tions, all resources that will consume costs will be included in the sched ule, e.g. volume of mater i als to be used, or phasing of purchas ing of new hard ware to support soft ware devel op ment. Other organ isa tions only sched ule labour and enter nonlabour costs directly into the cost model. Where subcontracted resources are provided and committed contractually to provide as much labour or other resource as needed to meet the agreed timescales, the budgeted amount is the fixed price of the contract and remains at this level irrespective of actual resource used by the supplier. Bringing labour and nonlabour costs together, the cost profile for the resource optim ised sched ule is known as the planned value or budgeted cost of work sched uled (BCWS). The BCWS is the cost profile against which the project is judged in terms of progress (see 4.3.1). There are addi tional cost plan ning aspects that the project profes sional takes into account during integ rated plan ning includ ing (Figure 4.2.8):

� The rela tion ship between fixed and vari able costs: Fixed or nonrecurring costs happen once in a project life and contrib ute a single cost, for example machine setup, site activ a tion, research and devel op ment, etc.; while vari able or recur ring costs occur peri od ic ally as an event in a project and contrib ute multiple costs with a cumu lat ive effect, for example compon ent machin ing, main ten ance at failure events, produc tion line tasks, etc.

� Likely peri od icity of funding release by the sponsor and governance board: In an iter at ive project life cycle, the release of funds may be more frequent due to the close inter ac tion with the sponsor as work is completed in short inter vals; whereas in a linear life cycle, funds may only be released at decision gates, when the costs spent to date are under stood and costs fore cas ted for the future are approved through the updated busi ness case.

The level of detail required is dictated by the project phase, more detail is typic ally neces sary in the near term, while later phases of work can be main tained at a higher level of gran u lar ity.

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Recommended reading

� APM’s Planning, Monitoring and Control Specific Interest Group guide, Planning, Scheduling, Monitoring and Control (2015), explains in section 12 how to construct the planned value (budgeted cost of work sched uled) fore cast.

� NASA, Integrated Baseline Review (IBR) Handbook (2016), is a prac tical guide to conduct ing an IBR, includ ing prepar a tion, conduct of the IBR and clos eout in the review.

� APM’s Earned Value Management Specific Interest Group guide, Earned Value Management Guidelines (2008), has an explan a tion of cost plan ning and setting the planned value (budgeted cost of work sched uled) fore cast.

Figure 4.2.8 Fixed and vari able cost for linear and iter at ive life cycle approaches

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4.2.9 Contingency plan ning

Ensuring plans reflect required confid ence levels

It is import ant for the project profes sional, via the sponsor and governance board, to agree the desired confid ence levels in estim ates and plans. It is fine to have an optim istic plan – this can be motiv at ing for the team and can drive good results – but it is wrong to have a plan that is optim istic but that some stake hold ers believe is easily achiev able. Contingency is resource set aside for respond ing to iden ti fied risks. Contingency is needed to match the gap between the ‘unrisked’ (determ in istic) plan and the desired level of confid ence. In addi tion to contin gency for known risks (some times referred to as the risk budget), some organ isa tions also hold a manage ment reserve to make provi sion for uniden ti fied risks (some times referred to as ‘unknown unknowns’) or for those iden ti fied risks that have very low like li hood of occur rence but would have a very high impact if they did occur (Figure 4.2.9). Contingency is most typic ally expressed as:

� Monetary value: An allow ance for dealing with impacts on cost or finan cial benefit.

� Time: An allow ance for dealing with impacts on sched ule.

When using an iter at ive life cycle and time boxes, it may be relev ant to think of contin gency in terms of scope/quality, i.e. resource set aside to complete outputs to the desired specific a tion. Timeboxes may also incor por ate lower prior ity items that can be sacri ficed to secure emer ging prior it ies. If it is normal in an organ isa tion to perform prob ab il istic risk analysis using Monte Carlo simu la tion, then confid ence levels in plans will typic ally be expressed in terms of prob ab il it ies. For example, the P90 cost (the outturn cost of the project with a 90 per cent confid ence level based on the uncer tainty and risk considered), or the P50 sched ule (the enddate that the analysis predicts there is a 50/50 chance of achiev ing). In other organ isa tions, the qual it at ive risk analysis can be used to predict confid ence levels with lower preci sion, for example by looking at the expec ted value of the risks in the risk register or making an experiencebased judge ment. In all cases, contin gency is clearly iden ti fied, for example as an iden ti fied line item in a budget, an addi tional time boxed iter a tion in a sched ule or as a buffer to protect a crit ical chain of activ ity. Contingency is not ‘hidden’ extra time or money to deliver planned scope. It is normal for contin gency to be held at differ ent levels to deal with differ ent sorts of risk and to support manage ment of the contin gent funds/time. Most organ isa tions will propor tion the contin gency between the project manager, project sponsor or programme manager and the governance board. Allocation of contin gency reflects the level of control desired. The manage ment of contin gency and its links to risk manage ment, issue manage ment and change control is covered in 4.3.4.

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Recommended reading

� APM’s Risk Management Specific Interest Group Prioritising Project Risks (2008) covers a wide range of tech niques for analys ing overall project risk as an input to contin gency determ in a tion. It also refer ences other specific texts.

� Practical Schedule Risk Analysis (2009) provides detailed guid ance on how to build a compet ent risk model and perform a project sched ule risk analysis using Monte Carlo simu la tion so that sched ule contin gency can be determ ined.

� Why Can’t You Just Give Me the Number? An Executive’s Guide to Using Probabilistic Thinking to Manage Risk and to Make Better Decisions (2014) covers the science behind quant it at ive risk analysis in an access ible way, address ing the chal lenges of decision bias and commu nic at ing outputs to stake hold ers in ways that they can be under stood to make contin gency plans.

Figure 4.2.9 Provision for known and unknown risk

Source: Adapted from Interfacing Risk and Earned Value Management (2008)

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4.2.10 Deployment baseline

Agreeing the integ rated plan to enable managed deploy ment

The culmin a tion of all the work described in the 13 topics in 4.1.1 to 4.2.9 is the deploy ment baseline, docu mented in the integ rated project manage ment plan (PMP) (Figure 4.2.10). The deploy ment baseline and PMP are approved at the decision gate asso ci ated with the approval of signi fic ant costs on the project. Some projects may have an integ rated baseline review to provide assur ance prior to approval. The deploy ment baseline is the start ing point for progress monitoring (see 4.3.1) and imple ment a tion of change control (see 4.3.6). When using a linear project life cycle, the baseline (scope, quality, resourced sched ule and asso ci ated cost) is set for the whole project and the planned value curve is under stood for the whole project. In an iter at ive project life cycle, the baseline resources and sched ule are determ ined, but the achieve ment of scope and quality may vary from the plan as teams may have autonomy to reprioritise and act on new know ledge. Any work not achieved in the timebox is returned to the backlog. Linear life cycles treat scope and quality as the driver and calcu late the consequen tial consumed time and cost. Iterative projects commit to set resources over limited periods to deliver products that are developed over success ive cycles. The approval of the deploy ment baseline is a good time to recon firm the bound ar ies of the project – both what is in and out of scope, and how the project inter faces with other projects or businessasusual activ it ies in a programme or stra tegic port fo lio. Any lack of ‘fit’ would require rework of the integ rated plan prior to approval – either to adjust scope or to make provi sion for a differ ent amount of cost contin gency to take account of expos ure to risks, and to fund risk responses that are not built into core scope. If the project is using the crit ical chain approach to schedul ing, then the buffer sizes are approved and frozen in the deploy ment baseline to enable the monit or ing of perform ance. It is likely that the version of the busi ness case approved at the previ ous decision gate contained many assump tions. At the point of agree ing the deploy ment baseline, these assump tions need to be clari fied or replaced with defin ite plans. It is good prac tice for an integ rated baseline review to be conduc ted by an inde pend ent reviewer. An integ rated baseline review is a riskbased review conduc ted by project profes sion als to gain a mutual under stand ing between all parties on the risk inher ent in the baseline costing and to ensure it is real istic for accom plish ment of the baseline scope of work within the sched ule and budget. Once created, under stood by the governance board and project team, and approved, the deploy ment baseline and PMP provide the start ing point for success ful deployment.

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Recommended reading

� APM’s Planning, Monitoring and Control Specific Interest Group guide, Introduction to Project Control (2010), provides the what, why, when, who and how of project controls cover ing scope, quality, time, resource and cost plan ning and the creation of the project baseline.

� APM’s Planning, Monitoring and Control Specific Interest Group guide, A Guide to Conducting Integrated Baseline Reviews (2016), has a detailed stepbystep approach to integ rated baseline reviews and provides insight into the timing, roles and respons ib il it ies.

� APM’s Earned Value Management Specific Interest Group guide, Earned Value Management Handbook (2013), explains the relev ance of the deploy ment baseline to earned value manage ment.

� APM’s Planning, Monitoring and Control Specific Interest Group White Paper on Agile and Earned Value (2013) provides an explan a tion of the applic a tion of earned value when adopt ing an iter at ive life cycle.

Figure 4.2.10 The project manage ment plan as the baseline for managed deploy ment

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Full refer ences for Section 4.2

4.2.1 APM Contracts and Procurement Specific Interest Group (2017) Guide to Contracts and Procurement. Princes Risborough: Association for Project Management.

Lewis, H. (2015) Bids, Tenders and Proposals: Winning Business through Best Practice. London: Kogan Page.

Ward, G. (2008) The Project Manager’s Guide to Purchasing: Contracting for Goods and Services. Abingdon: Gower.

4.2.2 APM Risk Management Specific Interest Group (2010) Project Risk Analysis and Management (PRAM) Guide, 2nd edition. Princes Risborough: Association for Project Management.

Hillson, D. (2009) Managing Risk in Projects. Farnham: Gower.

Pullan, P. and MurrayWebster, R. (2011) A Short Guide to Facilitating Risk Management: Engaging People to Identify, Own and Manage Risk. Farnham: Gower.

4.2.3 APM Risk Management Specific Interest Group (2010) Project Risk Analysis and Management (PRAM) Guide, 2nd edition. Princes Risborough: Association for Project Management.

Hillson, D. and Simon, P. (2012) Practical Project Risk Management: The ATOM Methodology, 2nd edition. New York: Management Concepts Press.

Risk Prioritisation Group of the APM Risk Management Specific Interest Group (2008) Prioritising Project Risks. Princes Risborough: Association for Project Management.

APM Risk Management Specific Interest Group (2018) Project Risk Analysis and Management Mini Guide. Princes Risborough: Association for Project Management. Available at: www.apm.org.uk/ media/10466/pram_web.pdf (accessed 3 January 2019).

4.2.4 APM – Association of Cost Engineers (ACostE) (2019) Estimating Guide. Princes Risborough: Association for Project Management.

Jones, A. (2018) Working Guides to Estimating and Forecasting, Vols 1–5. Abingdon: Routledge.

Shermon, D. (2009) Systems Cost Engineering. Farnham: Gower.

4.2.5 APM Planning, Monitoring and Control Specific Interest Group (2015) Planning, Scheduling, Monitoring and Control. Princes Risborough: Association for Project Management.

APM Planning, Monitoring and Control Specific Interest Group (2012) The Scheduling Maturity Model. Princes Risborough: Association for Project Management.

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APM Programme Management Specific Interest Group (2016) APM Introduction to Programme Management. Princes Risborough: Association for Project Management.

4.2.6 Goldratt, E. (1997) Critical Chain. Abingdon: Routledge.

Heptinstall, I. and Bolton, R. (2016) The Executive Guide to Breakthrough Project Management: Capital & Construction Projects; On-Time in Less Time; On-Budget at Lower Cost; Without Compromise. Northwich: Denehurst Publishing.

Leach, L. (2005) Critical Chain Project Management, 2nd edition. London: Artech House.

4.2.7 APM Planning, Monitoring and Control Specific Interest Group (2015) Planning, Scheduling, Monitoring and Control. Princes Risborough: Association for Project Management.

Lock, D. (2013) Project Management, 3rd edition. Farnham: Gower.

Manas, J. (2014) The Resource Management and Capacity Planning Handbook. New York: McGrawHill Education.

Turner, J. R. (2014) The Handbook of Project-Based Management: Leading Strategic Change in Organizations, 4th edition. New York: McGrawHill.

4.2.8 APM Earned Value Management Specific Interest Group (2008) Earned Value Management Guidelines. Princes Risborough: Association for Project Management.

APM Planning, Monitoring and Control Specific Interest Group (2016) A Guide to Conducting Integrated Baseline Reviews. Princes Risborough: Association for Project Management.

APM Planning, Monitoring and Control Specific Interest Group (2015) Planning, Scheduling, Monitoring and Control. Princes Risborough: Association for Project Management.

National Aeronautics and Space Administration (NASA) (2016) Integrated Baseline Review (IBR) Handbook. NASA/SP20163406.

4.2.9 APM Risk and APM Earned Value Specific Interest Groups (2008) Interfacing Risk and Earned Value Management. Princes Risborough: Association for Project Management.

Hulett, D. (2009) Practical Schedule Risk Analysis. New York: Management Concepts Press.

Leach, P. (2014) Why Can’t You Just Give Me the Number? An Executive’s Guide to Using Probabilistic Thinking to Manage Risk and to Make Better Decisions, 2nd edition. Houston, TX: Probabilistic Publishing.

Risk Prioritisation Group of the APM Risk Management Specific Interest Group (2008) Prioritising Project Risks. Princes Risborough: Association for Project Management.

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4.2.10 APM Planning, Monitoring and Control Specific Interest Group (2016) A Guide to Conducting Integrated Baseline Reviews. Princes Risborough: Association for Project Management.

APM Planning, Monitoring and Control Special Interest Group (2013) Agile and Earned Value: A White Paper. Princes Risborough: Association for Project Management.

APM Planning, Monitoring and Control Special Interest Group (2010) Introduction to Project Control. Princes Risborough: Association for Project Management.

APM Planning, Monitoring and Control Special Interest Group (2013) Earned Value Management Handbook. Princes Risborough: Association for Project Management.

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4.3 Controlling deploy ment

It may seem strange that the work that takes up the major ity of time in any project, programme or port fo lio endeav our is contained in one section at the end of the APM Body of Knowledge but readers will recog nise that controlling deploy ment is depend ent on a huge amount of upfront work, as described in the previ ous 72 topics. Controlling deploy ment, in part, is about ensur ing there is good inform a tion about progress and perform ance. This informs correc tion action and decisionmaking to ensure that the busi ness case is delivered as well as possible. It is also about rigour in the areas of issue manage ment, change control, config ur a tion manage ment and quality control – to ensure that good work put into early life cycle plan ning is not squandered by a lack of atten tion to detail in imple ment a tion. Controlling deploy ment is also very much about people and rela tion ships: in the supply chain, to ensure that contract manage ment is effect ive, and in the wider team and stake holder context, to ensure that conver sa tions about risk and reward are alive and adding value. In the final analysis, people deliver projects and strong rela tion ships with people under pin the admin is trat ive and bureau cratic discip lines required during deploy ment. This section, written for all people working to plan and deliver either stan dalone projects or projects within programmes and port fo lios, addresses the follow ing topics:

4.3.1 Progress monitoring and report ing: Tracking perform ance against the deploy ment baseline

4.3.2 Contract manage ment: Monitoring and managing supplier perform ance

4.3.3 Risk manage ment: Being ready to respond to minim ise threats and maxim ise oppor tun it ies

4.3.4 Contingency manage ment: Controlled release of manage ment reserves

4.3.5 Issue manage ment: Adapting the plan to resolve issues

4.3.6 Change control: Managing vari ations and change requests in a controlled way

4.3.7 Configuration manage ment: Ensuring the continual fit of config ur a tion items

4.3.8 Quality control: Safeguarding the conform ance of outputs and outcomes to require ments

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4.3.1 Progress monitoring and report ing

Tracking perform ance against the deploy ment baseline

There are three elements required for any perform ance meas ure ment: a baseline to measure against (see 4.2.10); data on actual perform ance; and an assess ment of the implic a tions of the perform ance to date. Progress monitoring enables mean ing ful reports to be presen ted to the sponsor and governance board to enable appro pri ate decisions to be made to improve perform ance. Effective progress monitoring encom passes many differ ent approaches. The project profes sional and sponsor agree and estab lish methods appro pri ate to the work to monitor all aspects of the project, includ ing:

� achieve ment of planned scope to the required quality;

� motiv a tion and satis fac tion of team members;

� perform ance of contract ors and the health of the rela tion ships in the supply chain;

� commit ted costs and cashflow;

� changes to the risk profile and impact on time buffers or cost contin gency;

� effect ive ness of commu nic a tion with stake hold ers.

Methods used are often determ ined at programme, port fo lio or organ isa tional level. Earned value analysis is the optimal way of track ing actual spend and actual work achieved using the same units (Figure 4.3.1). Earned value analysis is super ior to separ ate track ing of spend or work achieved as it provides oppor tun it ies to look at effi ciency of spend through the cost perform ance index (CPI) and productiv ity through the sched ule perform ance index (SPI). Primary progress and perform ance track ing is best done by those respons ible for the work although in many organ isa tions with estab lished project controls, monit or ing of progress in terms of time, cost and risk is performed in a project manage ment office (PMO). This does not absolve the project manager and team from monit or ing progress in other, nonquantifiable, areas of the project, for example stake holder and team mood and satis fac tion. Frequency of monit or ing and any subsequent report ing depends on the circum stances and is agreed with the sponsor. Monthly monit or ing and report ing of time, cost, risk and earned value is appro pri ate for many projects, but some, for example turn around main ten ance on a crit ical asset may warrant weekly, or daily track ing. The outputs of progress monitoring are typic ally presen ted quant it ively and use ‘trafficlight’ approaches to flag areas that are in control or out of control to varying degrees. Individual elements of the plan may be repor ted indi vidu ally or in a dash board format cover ing multiple areas of perform ance. The import ant thing is that the progress is clearly iden ti fied and in enough gran u lar ity to pinpoint any issues and address them. Iterative and time box ing approaches utilise burndown charts to track comple tion and measure progress against their fore casts. These used to calcu late the velo city of the team in order to improve future estim ates.

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Where progress monitoring and report ing high lights issues that cannot be recovered, replan ning is required to estab lish an amended baseline. Formal governance of this process is estab lished, with close links to all remain ing topics in this section.

Recommended reading

� APM’s Planning, Monitoring and Control Specific Interest Group, Guide to Planning, Scheduling, Monitoring and Control (2015), includes in section 22 a compre hens ive guide to the use of multiple perform ance meas ur ing methods and how to report using them.

� APM’s Earned Value Management Specific Interest Group, Earned Value Management Handbook (2013), provides a detail account of how to estab lish a commit ment to use of earned value manage ment and how to estab lish monit or ing and report ing of the data.

� While chapter 25 of Project Management (2013) is dedic ated to earned value analysis and cost report ing, includ ing the predic tion of final project costs, chapter 22 is concerned with managing progress. Coverage includes collect ing progress inform a tion, managing sub contract ors, correct ive meas ures, imme di ate action orders, progress meet ings, as well as internal progress reports for manage ment and external progress reports for clients.

Figure 4.3.1 Insights avail able through earned value analysis

Source: Earned Value Management: APM Guidelines (2008)

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4.3.2 Contract manage ment

Monitoring and managing supplier perform ance

Following contract award, project profes sion als set up arrange ments to monitor and manage supplier perform ance in line with the contract (Figure 4.3.2). The extent of this activ ity is tailored to the size of the contract and its signi fic ance in enabling success of the overall project or wider programme or port fo lio. However, there are some import ant controls relev ant to all contracts that project profes sion als put in place:

� Understanding of the contract oblig a tions: Regardless of who was involved in contract award, postaward it is useful to hold an early meeting to make sure that the people involved in deliv er ing the contract from the supplier and the people involved in managing the contract from the client share an under stand ing of their respect ive oblig a tions and expect a tions. Differences can be resolved early and amic ably.

� Planned meet ings to review progress: Technical and commer cial matters are likely to be discussed through out the contract and differ ent people may be involved in differ ent discus sions. Regular reviews between relev ant parties support trans par ency and the early iden ti fic a tion of any issues.

� Formalised report ing, commu nic a tion and escal a tion routes: Standard report ing tools, conven tions and tech niques ensure there is clarity of under stand ing between both parties. Where monit or ing of the work gives early warning of issues with the contract (from either the supplier or client side), an escal a tion route that has been agreed in advance saves time and prevents conflict (see also 4.3.4 and 4.3.5). The monit or ing approach is designed to ensure visib il ity of risks or issues, with a direct impact on contrac tual clauses such as mile stone payments or any bonus or penalty provi sions. The contract may also contain provi sions that bind the client to respond ing to contractor notices within set times cales so it is import ant that there is an under stand ing of who reviews and eval u ates contractor claims, and how and when responses and any payments are made.

� A route to sharing percep tions of risk with the work: The degree to which risks are shared may be impacted by the method of remu ner a tion in the contract, for example which party is carry ing cost risk, but it is highly desir able that the people involved in the work are open in sharing risks and to putting in place effect ive responses (see 4.3.3).

In addi tion, it is highly bene fi cial for all parties to agree a beha vi oural charter cover ing client and supplier staff involved in the project. This is a useful way of build ing a coher ent project culture and for support ing the devel op ment of a highperforming team (see 3.2.3).

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Recommended reading

� APM’s Contract and Procurement Specific Interest Group, Guide to Contracts and Procurement (2017), details the steps and consid er a tions to be made when managing a previ ously agreed contract in chapter 7.

� Contract and Commercial Management: The Operational Guide (2011) addresses most aspects of managing contracts from a prac tical perspect ive. This useful resource is written specific ally for noncontracting profes sion als and includes case studies and check lists. Chapter 16–18 address the manage ment aspects of contracts includ ing trans ition to a new contract, managing perform ance and managing changes and disputes.

� Contract Management: Core Business Competence (2017) is a cred ible and author it at ive resource which adopts an industrialcommercial perspect ive. Specific chapters address mobil isa tion and getting started, decid ing what to do when things go wrong and managing for success, which encom passes a discus sion of the traits of a good contract manager, staying on top of detail and plan ning for exit.

Figure 4.3.2 Controls that support contract manage ment

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4.3.3 Risk manage ment

Being ready to respond to minim ise threats and maxim ise oppor tun it ies

The risk owner uses inform a tion collec ted during risk iden ti fic a tion (see 4.2.2) and risk analysis (see 4.2.3) to determ ine whether it makes sense to proact ively invest previ ously unplanned time and money to bring the expos ure to risk within toler able levels. Deciding when to take the risk or invest in increas ing certainty is influ enced by the appet ite for risk of the investors. If there is a justi fic a tion for invest ing time and money proact ively to increase certainty, the risk owner makes provi sion to imple ment the planned responses (time, resource, cost) and updates the integ rated project plan (deploy ment baseline) accord ingly. There are two main types of response to threats and oppor tun it ies – a proact ive response and a react ive response (Figure 4.3.3):

� Proactive response: A planned and imple men ted response under taken to address the like li hood of the risk occur ring or the size of the impact if it did occur. Responses include avoid ing or redu cing a threat, or exploit ing or enhan cing an oppor tun ity. Responses ideally focus on the cause of the risk. Sharing risk in the supply chain is also a type of proact ive response. Cost risk may be trans ferred to another party, for example an insurer, but risks to sched ule cannot be trans ferred.

� Reactive response: A provi sion for a course of action that will only be imple men ted if the risk mater i al ises. Such responses accept the risk but with a contin gent response ready to go. Some react ive responses may require funding to be built into the integ rated plan because they are designed to monitor the risk and detect changes early.

Risk is a future construct and differ ent people perceive risk in differ ent ways. The conscious or subcon scious choices that invidu als or groups make on how to respond to a risky situ ation is based on their percep tion and risk atti tude. There are many conscious, subcon scious or affect ive factors that influ ence percep tion of risk and risk atti tude and the project profes sional works with the team and wider stake hold ers to under stand these as far as possible and to chal lenge in order to address any systemic bias. Keeping the risk conver sa tion alive is crucial to the ongoing deliv ery of any project. The risk manage ment process is iter at ive to reflect the dynamic nature of projectwork, captur ing and managing emer ging risks and reflect ing new know ledge in exist ing risk analyses and estim ates of contin gency required. A risk register is used to docu ment risks, analysis and responses, and to assign clear owner ship of actions. Information on prior ity risks is escal ated to governance boards to manage stake holder expect a tions, enable quality conver sa tions and evidencebased decisions. The final part of the manage ment process is to ensure that all risks are closed when they have occurred, or that there is no possib il ity of them occur ring.

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Recommended reading

� APM’s Risk Management Specific Interest Group, Project Risk Analysis and Management (PRAM) Guide (2010), contains a detailed explan a tion of how to respond to risks effi ciently and effect ively, and the import ance of estab lish ing a culture, whereby the risk conver sa tion is kept alive through the life of the project or programme.

� Practical Project Risk Management: The ATOM Methodology (2012) provides a detailed guide to the applic a tion of a risk manage ment process to a project.

� Understanding and Managing Risk Attitude (2007) brings together leadingedge think ing on risk atti tude and emotional liter acy to guide those wishing to move from a processonly concep tion of risk manage ment to one that addresses the influ ences of people in the process.

Figure 4.3.3 Generic response strategies for threats and oppor tun it ies

Source: PRAM Guide (2010)

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4.3.4 Contingency manage ment

Controlled release of manage ment reserves

Section 4.2.9 covered the plan ning of contin gency as part of overall integ rated plan ning to estab lish the deploy ment baseline for the work. Contingency is clearly iden ti fied in integ rated plans, for example as an iden ti fied line item in a budget, an addi tional sprint/time boxed iter a tion in a sched ule or as a buffer to protect a crit ical chain of activ ity. Contingency is not ‘hidden’ extra time or money to deliver planned scope. Contingency is also typic ally held at differ ent levels to deal with differ ent sorts of risk. Allocating all the contin gency to the project manager requires high levels of trust and confid ence from the sponsor and governance board that the addi tional resource is not used unless abso lutely neces sary. Also, some risks are not best managed at project level, e.g. currency risk, and so arrange ments to deal with this are managed else where in the invest ing organ isa tion. During deploy ment, the project consumes resources over time, incur ring costs. Monitoring activ it ies high light when the project is about to, or actu ally is devi at ing from plan because:

� an identified risk has occurred;

� an unidentified risk has occurred.

Where risk was iden ti fied and analysed effect ively, the planned contin gency (funds or sched ule float/buffer) has provi sion to deal with the devi ation. The project manager requests author ity to use the contin gency – often known as ‘contin gency draw down’ (Figure 4.3.4). Where previ ously uniden ti fied and analysed risks occur, contin gent time will not be avail able. Some manage ment reserve may have been put aside for uniden ti fied risk but this may be insuf fi cient. The project manager raises a change request (see 4.3.6) to seek approval of a mile stone slip page and/or addi tional funds to manage the situ ation. Where the project is part of a programme, contin gency may be held at this level and is reques ted via a change request. If risk analysis and contin gency plan ning is effect ive, the planned time and/or contin gency would be expec ted to be used. Unused contin gency is most likely caused by over es tim a tion, luck or the effi cient manage ment of risk. Insufficient contin gency is most likely caused by optim istic estim a tion, bad luck or inef fi cient manage ment of risk. Where the project is using an iter at ive life cycle approach, with fixed time, resources and cost, contin gency relates to scope and quality. During their work, the team proceeds through a series of time boxes, autonom ously amend ing the content of a forth com ing timebox. However, there may come a point where the agreed number of iter a tions have been used and the solu tion is developed to a minimum viable level, but without address ing some of the ‘shouldhave’ require ments. Here, the team may raise a change request to vary the scope and quality from the plan. In such a situ ation, the sponsor and governance board may author ise the use of further time and resource to imple ment more func tion al ity through further incre ments.

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Recommended reading

� APM’s Risk Specific Interest Group, Project Risk Analysis and Management (PRAM) Guide (2004), explains how governance can monitor and control the use of contin gency.

� APM’s Programme Management Specific Interest Group guide, Introduction to Programme Management (2016), has a good descrip tion of the programme level risk manage ment reserves approach and its rela tion ship to project reserves.

� Practical Cost Control Handbook for Project Managers: A Practical Guide to Enable Consistent and Predictable Forecasting for Large, Complex Projects (2014) is a prac tical hand book for managing large, complex projects. It addresses the traps of cost control and fore cast ing to support decisionmaking. Addresses contin gency through the lens of fore cast ing.

Figure 4.3.4 Process flow for contin gency draw down

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4.3.5 Issue manage ment

Adapting the plan to resolve issues

In project manage ment, an issue occurs when the toler ances of deleg ated work have been, or will defin itely be exceeded. Issues are differ en ti ated from prob lems that are dealt with on a daytoday basis by the project manager and team. Issues require support from the sponsor to agree a resol u tion (Figure 4.3.5). There is often a tend ency to mix up the iden ti fic a tion, analysis and manage ment of risks with issues. They are related but are not the same thing. Issues may develop when partic u lar risks or groups of risks actu ally occur. Issues happen ing now may also be causes of new risks, or result in assess ment of risk like li hood and/or size of impact to change. It is under stand able that project profes sion als prior it ise the manage ment of issues (prob lems now) over the manage ment of risks (poten tial prob lems or oppor tun it ies), but a project where this is continu ally the case would suggest an under ly ing concern with project plans and controls. Irrespective of the source of an issue, the process used to manage the issue is the same. The project profes sional ensures that:

� When an issue is detec ted, it is logged in an issue register and analysis is performed quickly to under stand the nature of the issue, its causes and impacts if it is not resolved. The prior it isa tion of issues is based on the success criteria and bene fits for the work taking into account the relat ive prior it ies of scope, quality, time, cost and bene fits in the busi ness case.

� Issues are escal ated to the sponsor, who may, in turn, escal ate them to the governance board for resol u tion.

� Actions are assigned to the person or group who is best placed to address the issue and identify and imple ment a resol u tion in a timely manner.

� Issues that result in changes to scope or any other part of the baseline plan are progressed through change control. As part of integ rated plan ning, the limits of deleg ated author ity are estab lished and formal change control is required when these toler ances are breached (see 4.3.6).

� The manage ment of issues is tracked from iden ti fic a tion through to resol u tion, includ ing any change control and replan ning the deploy ment baseline and project manage ment plan.

The issue manage ment process is a simple concept. However, there are barri ers to effect ive adop tion that range from a lack of time or reluct ance from project profes sion als to identify and escal ate issues early, to an inab il ity of the governance board to make an informed decision that addresses the root cause of the issue rather than treat ing the symp toms. Issue manage ment is an import ant project control and effect ive imple ment a tion can be enhanced by enga ging members of a project manage ment office (PMO) to help facil it ate the neces sary resol u tion.

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Recommended reading

� APM’s Planning, Monitoring and Control Specific Interest Group, Introduction to Project Controls Guide (2015), demon strates how issue manage ment fits into the wider suite of project controls.

� The Project Workout: The Ultimate Guide to Directing and Managing Business-Led Projects (2019) dedic ates a chapter to the discus sion of what went wrong, includ ing proced ures for dealing with isssues and advice for managing the issue log (register).

� Decision Making & Problem Solving: Break through Barriers and Banish Uncertainty at Work (2019) offers a set of tech niques and insights for resolv ing prob lems in the work place. The book includes prac tical exer cises, templates and advice on how to gener ate ideas, solve prob lems and inspire confid ence within a team.

Figure 4.3.5 Key aspects of issue resol u tion

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4.3.6 Change control

Managing vari ations and change requests in a controlled way

Change control is the process through which all requests to change the baseline of a project, programme or port fo lio are iden ti fied, eval u ated and approved, rejec ted or deferred (Figure 4.3.6). Change requests may arise as a result of issues that arise in the manage ment of the work, or from external sources such as new stake holder require ments, new regu la tions or changes in the context that result in the original plans being no longer viable. Managing requests for change effect ively is a proven success factor in project manage ment, the altern at ive being a poten tial escal a tion of prob lems as changes are adopted without analysis of their impact on other parts of the solu tion or deliv er ables. It is of partic u lar import ance when the project is part of a larger programme or port fo lio because the consequen tial effects of unman aged change may be farreaching within the planned change envir on ment and to businessasusual activ it ies. Managing change requests in a controlled way enables the sponsor and other stake hold ers to:

� under stand the implic a tions of vari ations on the fore cas ted outcomes of the work;

� influ ence the decision of how to respond in the context of their object ives and appet ite for risk.

The project profes sional imple ments the follow ing steps to control change: � Log change request: A change register (or log) records all changes iden ti fied or reques ted

from whatever source and whatever their status.

� Initial eval u ation: The change is reviewed to consider if it is worth while eval u at ing in detail or should be rejec ted.

� Detailed eval u ation: Considering the impact on baseline success criteria, bene fits, scope, quality, time, resources, costs, risks, stake holder engage ment or any other criteria import ant to achiev ing the busi ness case.

� Recommendation: Is made to the sponsor and/or wider governance board to approve, reject or defer the change. The sponsor is account able for ensur ing a decision is made and commu nic ated.

� Update plans: If a change is approved, plans are updated to reflect the change.

� Implement: The neces sary actions and monitor through to comple tion.

In scen arios where change is imple men ted without formal author isa tion, the project profes sional adopts a retro spect ive process. Rather than being seen as unne ces sary bureau cracy, this is needed to enable real istic fore casts. In certain circum stances, it is appro pri ate to imple ment a change freeze on a project where no further changes are considered, as to do so would jeop ard ise the achieve ment of the project object ives.

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It is import ant to differ en ti ate change control from the wider discip line of change manage ment. Change manage ment is a struc tured approach to move an organ isa tion from a current state to a future desired state. Projectbased working is used to achieve this. Change control is a subset of overall change manage ment and it is useful to not mix up the language.

Recommended reading

� APM’s Planning, Monitoring and Control Specific Interest Group, Introduction to Project Controls Guide (2015), demon strates how change control fits into the wider suite of project controls.

� APM’s Planning, Monitoring and Control Specific Interest Group guide, Planning, Scheduling, Monitoring and Control (2015) includes in section 25 a compre hens ive guide to a change control process.

� The Project Workout: The Ultimate Guide to Directing and Managing Business-Led Projects (2019) dedic ates a chapter to the consid er a tion of change control, with a partic u lar emphasis on controlling change, account ab il it ies for change decisions, change control process and advice regard ing the change request form.

Figure 4.3.6 A change control process

Source: Planning, Scheduling, Monitoring and Control (2015)

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4.3.7 Configuration manage ment

Ensuring continual fit of config ur a tion items

Configuration manage ment encom passes the tech nical and admin is trat ive activ it ies concerned with the creation, main ten ance, controlled change and quality control of the scope of work. A config ur a tion is the func tional and phys ical char ac ter ist ics of the final deliv er able as defined in tech nical docu ments and achieved in the execu tion of project manage ment plans (Figure 4.3.7). At its simplest, config ur a tion manage ment involves version control of docu ments and inform a tion (see also 2.2.3), but the discip line of config ur a tion manage ment is a more complex endeav our in projects where the design of the solu tion is multi fa ceted, combin ing multiple tech nical discip lines and a wide range of asset types. As a result, in some envir on ments, config ur a tion manage ment can be regarded as an asset control and it is essen tial whether one or more versions of a deliv er able is created. It links to and is informed by wider asset manage ment strategies. In these situ ations, the config ur a tion also captures any organ isa tional or regu lat ory stand ards to be met. The discip line known as busi ness inform a tion model ling (BIM) is related to this topic. BIM involves the gener a tion and manage ment of digital repres ent a tions of phys ical and func tional char ac ter ist ics of build ings and places. Building inform a tion models are digital files (often, but not always in propri et ary formats and contain ing propri et ary data) which can be extrac ted, exchanged or networked to support decisionmaking regard ing a build ing or other built asset. Current BIM soft ware is used to plan, design, construct, operate and main tain diverse phys ical infra struc tures. It used to provide a digital record of specific a tion and config ur a tions of items and assets. To imple ment config ur a tion manage ment, the project profes sional resources the follow ing five activ it ies:

� Configuration manage ment plan ning: A config ur a tion manage ment plan describes any project specific proced ures and the extent of their applic a tion. The plan also iden ti fies roles and respons ib il it ies for carry ing out config ur a tion manage ment.

� Configuration iden ti fic a tion: Involves break ing down the project into config ur a tion items, and creat ing a unique number ing or refer en cing system for each item.

� Configuration control: Ensures that all changes to config ur a tion items are controlled. It is import ant to identify the inter re la tion ships between config ur a tion items to enable this.

� Configuration status account ing: Provides records and reports that relate to a deliv er able and its config ur a tion inform a tion. It enables trace ab il ity of config ur a tion items through out their devel op ment.

� Configuration veri fic a tion audit: Is used to determ ine whether a deliv er able conforms to its require ments and config ur a tion inform a tion. Typically, a veri fic a tion audit is under taken at the end of a life cycle phase, when a deliv er able is finished or at the point of trans ition ing the output into use.

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The key output of a wellcontrolled config ur a tion manage ment process is:

� confid ence that the current version of any config ur a tion item is known, be that a docu ment, drawing, soft ware or any other asset; and

� docu mented trace ab il ity between versions of each config ur a tion item.

Recommended reading

� Project Management (2010) describes how config ur a tion manage ment is an essen tial project manage ment tool to ensure that only the current specific a tions and designs are being used through out the project and how it links to change control and quality manage ment.

� APM’s Planning, Monitoring and Control Specific Interest Group, Introduction to Project Controls Guide (2015), demon strates how config ur a tion control fits into the wider suite of project controls.

� BIM Handbook: A Guide to Building Information Modeling for Owners, Managers, Designers, Engineers and Contractors (2018) is an estab lished resource which aims to provide an indepth under stand ing of BIM tech no lo gies, as well as the busi ness and organ isa tional issues asso ci ated with its imple ment a tion. The new edition incor por ates cover age of BIM stand ards and a number of useful case studies.

Figure 4.3.7 Essential activ it ies to verify the config ur a tion of an output

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4.3.8 Quality control

Safeguarding the conform ance of outputs and outcomes to require ments

Quality control consists of inspec tion, meas ure ment and testing to verify that the project outputs meet the accept ance criteria defined during quality plan ning (see 4.1.5). While quality assur ance attempts to build in quality through the use of consist ent use of stand ard processes and proced ures, suppor ted by train ing and feed back, quality control is focused on prevent ing prob lems being passed on to the internal or external customer. For quality control to be effect ive, config ur a tion control (see 4.3.7) of specific a tions and test plans is vital so that any modi fic a tions are form ally author ised, coordin ated and commu nic ated. As part of quality plan ning test plans will have been agreed. These include aspects such as:

� Sample size of tests, for example the whole item or a percent age chosen at random.

� Test proto cols, includ ing resources required – people, equip ment – thirdparty expert ise or facil it ies.

� Independent perform ance or witness ing of tests, by a regu lator or process owner from businessasusual.

There are many project scen arios where the project outputs are highly complex and tech nical and where the the work to verify conform ance of outputs to specific a tions is extens ive. Testing is well estab lished and under stood in these scen arios. It is easy to over look that all projects need to deliver outputs and outcomes that are fit for purpose and quality control applies equally to interim or final outputs such as reports, commu nic a tion mater i als or finan cial models. In all quality control activ it ies, decisions need to be made about the degree of conform ance of the output (or sample of outputs) tested to the specific a tion and accept ance criteria, and what action to take in the event of nonconformance. There will be some projects, for example where safety crit ical products are being built where continu ing to use a noncompliant item is unac cept able and rework will be neces sary, trig ger ing a change to the plan. In other scen arios, for example in user accept ance testing of a system, some devi ations from require ments may be toler able in initial use and the decision may be to press ahead to ‘golive’ with known issues, picking up remedial work at a later point, and driven by the perman ent organ isa tion. Projects deliver a huge variety of outputs and are consequently subject to many forms of quality control depend ing on the tech nical nature of the work and the partic u lar require ments of indi vidual indus tries. The project profes sional agrees the quality control regime for the project drawing on input from relev ant tech nical experts rather than by refer ence to generic processes. Safeguarding the conform ance of outputs and outcomes to require ments in the pursuit of bene fi cial change cannot rely on quality control – it is the final appraisal. Investments in stake holder rela tion ships, plan ning and control as described in this APM Body of Knowledge deliver quality and value (Figure 4.3.8).

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Recommended reading

� The Essentials of Managing Quality for Projects and Programmes (2017) dedic ates chapter 6 to the topic of controlling quality. It offers advice on using the quality plan to main tain control, meas ur ing project quality and issues of governance.

� Project Quality Management: Why, What and How (2014) includes a signi fic ant discus sion of project quality control and continu ous improve ment issues in chapter 6. The discus sion includes a detailed case with lessons learned.

� Agile Testing: A Practical Guide for Testers and Agile Teams (2008) is an import ant essen tial source which attempts to repos i tion the role of testing in the context of agile projects. The book defines agile testing and illus trates the tester’s role, using prac tical examples, showing how to complete testing activ it ies within short iter a tions and how to use tests to guide devel op ment.

Figure 4.3.8 Proactive management of projects delivers quality and value

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Full refer ences for Section 4.3

4.3.1 APM Earned Value Management Specific Interest Group (2008) Earned Value Management Guidelines. Princes Risborough: Association for Project Management.

APM Planning Monitoring and Control Specific Interest Group, (2015) Planning, Scheduling, Monitoring and Control: The Practical Project Management of Time, Cost and Risk. Princes Risborough: Association for Project Management.

APM Earned Value Management Specific Interest Group (2013) Earned Value Management Handbook. Princes Risborough: Association for Project Management.

Lock, D. (2013) Project Management, 10th edition. Farnham: Gower.

4.3.2 APM Contracts and Procurement Specific Interest Group (2017) Guide to Contracts and Procurement. Princes Risborough: Association for Project Management.

International Association for Contract and Commercial Management (2011) Contract and Commercial Management: The Operational Guide. Hertogenbosch: Van Haren Publishing.

Sammons P. (2017) Contract Management: Core Business Competence. London: Kogan Page.

4.3.3 APM Risk Management Specific Interest Group (2010) Project Risk Analysis and Management (PRAM) Guide, 2nd edition. Princes Risborough: Association for Project Management.

Hillson, D. and MurrayWebster, R. (2007) Understanding and Managing Risk Attitude, 2nd edition. Farnham: Gower.

Hillson, D. and Simon, P. (2012) Practical Project Risk Management: The ATOM Methodology, 2nd edition. New York: Management Concepts Press.

4.3.4 APM Risk Specific Interest Group (2004) Project Risk Analysis and Management (PRAM) Guide, 2nd edition. Princes Risborough: Association for Project Management.

Association for Project Management Programme Management Specific Interest Group (2016) APM Introduction to Programme Management, 2nd edition. Princes Risborough: Association for Project Management.

Averous, J. (2014) Practical Cost Control Handbook for Project Managers: A Practical Guide to Enable Consistent and Predictable Forecasting for Large, Complex Projects. Singapore: Fourth Revolution Publishing.

4.3.5 Adair, J. (2019) Decision Making & Problem Solving: Break through Barriers and Banish Uncertainty at Work. London: Kogan Page.

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APM Planning, Monitoring and Control Specific Interest Group (2015) Introduction to Project Controls Guide. Princes Risborough: Association for Project Management.

Buttrick, R. (2019) The Project Workout: The Ultimate Guide to Directing and Managing Business-Led Projects. Abingdon: Routledge.

4.3.6 APM Planning, Monitoring and Control Specific Interest Group (2015) Introduction to Project Controls Guide. Princes Risborough: Association for Project Management.

APM Planning Monitoring and Control Specific Interest Group (2015) Planning, Scheduling, Monitoring and Control: The Practical Project Management of Time, Cost and Risk. Princes Risborough: Association for Project Management.

Buttrick,R. (2019) The Project Workout: The Ultimate Guide to Directing and Managing Business-Led Projects. Abingdon: Routledge.

4.3.7 APM Planning, Monitoring and Control Specific Interest Group (2015) Introduction to Project Controls Guide. Princes Risborough: Association for Project Management.

Sacks, R., Eastman, C., Lee, G. and Teicholz, P. (2018) BIM Handbook: A Guide to Building Information Modeling for Owners, Managers, Designers, Engineers and Contractors, 3rd edition. Hoboken, NJ: John Wiley & Sons.

Maylor, H. (2010) Project Management, 4th edition. London: Financial Times PrenticeHall.

4.3.8 Bartlett, J. (2017) The Essentials of Managing Quality for Projects and Programmes, 2nd edition. Abingdon: Routledge.

Rose, K. (2014) Project Quality Management: Why, What and How, 2nd edition. Plantation, FL: J Ross Publishing.

Crispin, L. & Gregory, J. (2008) Agile Testing: A Practical Guide for Testers and Agile Teams. Boston, MA: Addison Wesley.

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Glossary

This glossary is made up of terms used in the seventh edition of the APM Body of Knowledge only. Definitions are provided where terms used are unique to the profession, or have a unique meaning in the profession.

Acceptance criteria The requirements and essential conditions that have to be achieved before a deliverable is accepted.

Activity (1). A task, job, operation or process consuming time and possibly other resources. (2). The smallest selfcontained unit of work in a project.

Adoption The optional additional phase in a linear life cycle that facilitates the use of project outputs to enable the acceptance and use of benefits.

Agile A family of development methodologies where requirements and solutions are developed iteratively and incrementally throughout the life cycle.

Analogous estimating An estimating technique based on the comparison with, and factoring from, the cost of similar, previous work. Also known as comparative estimating.

Analytical estimating An estimating technique that uses detailed specifications to estimate time and cost for each product or activity. Also known as bottomup estimating.

Assurance The process of providing confidence to stakeholders that projects, programmes and portfolios will achieve their objectives for beneficial change.

Baseline The reference levels against which a project, programme or portfolio is monitored and controlled.

Benefit A positive and measurable impact of change.

Benefits management The identification, definition, planning, tracking and realisation of benefits.

Benefits realisation The practice of ensuring that benefits are derived from outputs and outcomes.

Bottom-up estimating An estimating technique that uses detailed specifications to estimate time and cost for each product or activity. Also known as analytical estimating.

Breakdown structure A hierarchical structure by which project elements are decomposed. Examples include: cost breakdown structure (CBS), organisational breakdown structure (OBS), product breakdown structure (PBS) and work breakdown structure (WBS).

Buffer A term used in critical chain for the centralised management of schedule contingencies.

Business-as-usual An organisation’s normal daytoday operations. Also referred to as steadystate.

Business case Provides justification for undertaking a project, programme or portfolio. It evaluates the benefit, cost and risk of alternative options and provides a rationale for the preferred solution.

Business information modelling (BIM) involves the generation and management of digital representations of physical and functional characteristics of buildings and places. Building information models are digital files (often but not always in proprietary formats and containing

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Glossary

proprietary data) which can be extracted, exchanged or networked to support decisionmaking regarding a building or other built asset. Related to configuration management.

Business readiness is a continuous concern and activity through the life of a project or programme that seeks to understand attitudes to change and any barriers so that people are ready to accept outputs and adopt new ways of working to realise benefit.

Change control The process through which all requests to change the approved baseline of a project, programme or portfolio are captured, evaluated and then approved, rejected or deferred.

Change freeze A point after which no further changes to scope will be considered.

Change management The overarching approach taken in an organisation to move from the current to a future desirable state using a coordinated and structured approach in collaboration with stakeholders.

Change register (or log) A record of all proposed changes to scope.

Change request A request to obtain formal approval for changes to the approved baseline.

Closure The formal end point of a project, programme or portfolio; either because planned work has been completed or because it has been terminated early.

Communication The process of exchanging information and confirming there is shared understanding.

Communities of practice are a type of learning network used within and between organisations to maintain, develop and share knowledge.

Comparative estimating An estimating technique based on the comparison with,

and factoring from, the cost of similar, previous work. Also known as analogous estimating.

Complexity Relates to the degree of interaction of all the elements that make up a project, programme or portfolio and is dependent on such factors as the level of uncertainty, interaction between stakeholders and degree of innovation.

Concept The first phase in a linear life cycle that develops an initial idea through initial studies and highlevel requirements management and assessment of viability including an outline business case.

Configuration The functional and physical characteristics of a product as defined in its specification and achieved through the deployment of project management plans.

Configuration management Configuration management encompasses the technical and administrative activities concerned with the creation, maintenance, controlled change and quality control of the scope of work.

Conflict resolution The process of identifying and addressing differences that if left unmanaged would affect successful completion of objectives.

Context A collective term for the societal and/or organisational setting of a project, programme or portfolio. Also known as environment.

Contingency Provision of additional time or money to deal with the occurrence of risks should they occur. See also risk budget and management reserve.

Continuing professional development (CPD) is the term used to describe the requirement for any professional to continually develop their competence.

Contract An agreement made between two or more parties that creates legally binding obligations between them. The contract sets

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out those obligations and the actions that can be taken if they are not met.

Control Tracking performance against agreed plans and taking the corrective action required to meet defined objectives.

Cost of capital A term used in investment appraisal to reflect the percentage return an investment must deliver to satisfy lenders. Value is only created when the return is greater than the cost of capital. See also weighted average cost of capital (WACC).

Cost planning and control The estimation of costs, the setting of an agreed budget, and management of actual and forecast costs against that budget.

Critical chain A resourcebased approach to scheduling, useful when time is critical and derived from the critical path, that protects critical chains of activities with buffers.

Critical path A sequence of activities through a precedence network from start to finish, the sum of whose durations determines the overall duration.

Critical path analysis An activitybased scheduling technique that determines the overall duration of the identified work based on estimates and logical dependencies. The method of determining the critical path.

Decision bias Psychological biases affecting individuals and groups when making riskbased decisions.

Decision gate A point in the life cycle between phases that is used to review and confirm viability of the work in line with the business case. Alternatively called stage gates or gates.

Delphi technique the generation of an estimate through individual expert judgement followed by facilitated team consensus.

Earned value A measure of progress that expresses costs committed and work achieved in the same units.

Earned value management A project control process based on a structured approach to planning, cost collection and performance measurement. It facilitates the integration of project scope, time and cost objectives and the establishment of a baseline plan of performance measurement.

Emergent change Unplanned change that is managed by an organisation through incremental, iterative or evolutionary approaches.

Environment A collective term for the societal and/or organisational setting of a project, programme or portfolio. Also known as context.

Escalation The process by which issues are drawn to the attention of a higher level of management.

Estimate A forecast of the probable time or cost of completing work.

Estimating The use of a range of tools and techniques to produce forecasts of the probable time or cost of completing work.

Event-driven Control actions or reports that are triggered by a specific event.

Extended life cycle A life cycle approach that adds an adoption phase to a linear or iterative life cycle with the purpose of ensuring the accountability and governance of the investment stays with the change teams until change is fully embedded. It provides the missing connection to benefit realisation in a linear life cycle and facilitates cooperation and knowledge sharing between change and businessasusual teams.

Facilitation An approach to working with groups in a collaborative way to create energy and make it easy for the group to solve problems.

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Fixed or non-recurring cost A resource and associated cost that is not influenced by volume of business or quantity, for example a oneoff capital cost.

Float A term used to describe the flexibility with which an activity may be rescheduled. There are various types of float, such as total float and free float.

Forecast A prediction of a defined future state, typically related to the duration and outturn cost of a project or programme.

Funding The means by which the money required to undertake a project, programme or portfolio is secured and then made available as required.

Gantt chart A graphical representation of activity against time.

Governance The framework of authority and accountability that defines and controls the outputs, outcomes and benefits from projects, programmes and portfolios. The mechanism whereby the investing organisation exerts financial and technical control over the deployment of the work and the realisation of value.

Governance board A body that provides sponsorship to a project, programme or portfolio. The board will represent financial, provider and user interests. Members of a governance board oversee deployment and make decisions through the chosen life cycle. Alternatively called steering committee, steering group, project board, programme board, etc.

Handover The point as part of the transition phase of a linear life cycle, where deliverables are commissioned and handed over to the permanent organisation to adopt.

Host organisation The organisation that provides the strategic direction of the project, programme or portfolio and is the primary investor and recipient of benefits.

Used interchangeably with investing organisation and client organisation.

Hybrid life cycle A pragmatic approach to achieving beneficial change that combines a linear life cycle for some phases or activities with an iterative life cycle for others.

Influencing The act of affecting the behaviours and actions of others.

Information management The collection, storage, curation, dissemination, archiving and destruction of documents, images, drawings and others sources of information.

Integrated assurance The coordination of assurance activities where there are a number of assurance providers. It can follow a Three lines of defence model from corporate governance.

Integrated planning The application of management processes that bring together the planning of benefits, success criteria, scope, quality, time, resources, cost, risk, communications, etc. to create the project management plan.

Internal rate of return (IRR) Used to determine the profitability of a potential investment. It is the discount rate that makes the net present value zero.

Investment appraisal The analysis done to consider the profitability of an investment over the life of an asset alongside considerations of affordability and strategic fit. An input to the investment decision.

Investment decision The decision made by the sponsor and governance board that justifies the investment in a project, programme or portfolio. Investment decisions rely on robust investment appraisal.

Issue A problem that is now breaching, or is about to breach, delegated tolerances for work on a project or programme. Issues require support from the sponsor to agree a resolution.

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Iterative life cycle A life cycle that repeats one or more of the phases of a project or programme before proceeding to the next one with the objective of managing uncertainty of scope by allowing objectives to evolve as learning and discovery takes place.

Knowledge management The holistic, crossfunctional discipline and set of practices concerned with the way organisations create and use knowledge to improve outcomes.

Leadership The ability to establish vision and direction, to influence and align others towards a common purpose, and to empower and inspire people to achieve success.

Life cycle A framework comprising a set of distinct highlevel stages required to transform an idea of concept into reality in an orderly and efficient manner. Life cycles offer a systematic and organised way to undertake projectbased work and can be viewed as the structure underpinning deployment.

Linear life cycle A life cycle that aims to complete a project within a single pass through a set of distinct phases that are completed serially and span from the development of the initial concept to the deployment of an ultimate output, outcome or benefits.

Management plan A plan that sets out how an aspect of a project, programme or portfolio will be delivered, for example, a configuration management plan. Individual management plans are component parts of the overall project management plan (PMP) that is the output of integrated planning.

Management reserve A sum of money that is part of overall cost contingency to cover the cost impact of unidentified risks, and potentially some already identified very lowprobability, very highimpact risks. See also risk budget and contingency.

Maturity model An approach to understand the current capabilities, processes and

behaviours deployed in the management of projects and to identify a structured path to increase the predictability of success.

Milestone A key event selected for its importance in the schedule commonly associated with tangible acceptance of deliverables.

Minimum viable product A product with just enough features to satisfy early users and to provide feedback for future product development.

Monte Carlo simulation A technique often used in the estimation of overall risk for a project, programme or portfolio that enables the combined effect of estimating uncertainty and specific risk events to be predicted.

Net present value (NPV) is the difference between the present value of cash inflow and the present value of cash outflow over a period of time. It is the monetary value used to judge the value of an investment at a particular discount rate.

Network diagram A model of activities and their dependencies used in scheduling. Also known as a Precedence network.

Objectives A generic term for predetermined results towards which effort is directed. Objectives may be defined in terms of outputs, outcomes and/or benefits.

Opportunity A positive risk event that, if it occurs, will have an upside/ beneficial effect on the achievement of one or more objectives.

Optioneering An approach to exploring multiple options to optimally satisfy stakeholders’ needs, requiring creativity and lateral thinking.

Organisational culture the unwritten rules that influence individual and group behaviour and attitudes. Applicable at multiple levels of organisation, including national culture or project culture.

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Outcome The changed circumstances or behaviour that results from the use of an output and leads to realisation of benefits.

Output The tangible or intangible product typically delivered by a project. Used interchangeably with deliverable and product.

Parametric estimating An estimating technique that uses a statistical relationship between historic data and other variables to calculate an estimate.

Phase The major subdivision of a life cycle.

Planned value The cost profile of a resourceoptimised schedule used as the baseline to monitor actual spend and earned value. Alternatively called the Budgeted Cost of Work Scheduled (BCWS).

Portfolio A collection of projects and/or programmes used to structure and manage investments at an organisational or functional level to optimise strategic benefits or operational efficiency.

Portfolio management The selection, prioritisation and control of an organisation’s projects and programmes in line with its strategic objectives and capacity to deliver.

Precedence network A model of activities and their dependencies used in scheduling. Also known as a network diagram.

Procurement strategy The highlevel approach for securing the goods and services required from external suppliers to satisfy project, programme and portfolio needs. See also strategic sourcing.

Product A tangible or intangible component of a project’s output. Used interchangeably with deliverable and output.

Product life cycle A life cycle approach that adds operation and termination phases to a linear life cycle to reflect the whole life of an asset. Enabling a full asset life cycle

perspective encourages engagement with longterm future implications of project related actions.

Professionalism The application of expert and specialised knowledge within a specific field and the acceptance of standards relating to that profession.

Programme A unique, transient strategic endeavour undertaken to achieve beneficial change and incorporating a group of related projects and businessasusual (steadystate) activities.

Programme management The coordinated management of projects and businessas usual (steadystate) activities to achieve beneficial change.

Project A unique, transient endeavour undertaken to bring about change and to achieve planned objectives.

Project-based working A collective term for project, programme and portfolio management. Used interchangeably with management of projects.

Project management The application of processes, methods, knowledge, skills and experience to achieve specific objectives for change.

Project (programme or portfolio) management office (PMO) An organisational structure that provides support for projects, programmes and/or portfolios.

Project management plan (PMP) The output of process of integrated planning for a project or programme.

Project professional The term used to describe those people in roles associated with the management of projects, programmes or portfolios.

Quality The fitness for purpose or the degree of conformance of the outputs of a process or the process itself to requirements.

Glossary

215

Quality control consists of inspection, measurement and testing to verify that the project outputs meet acceptance criteria defined during quality planning.

Quality planning takes the defined scope and specifies the acceptance criteria used to validate that the outputs are fit for purpose to the sponsor.

Reports (1). The presentation of information in an appropriate format (e.g. management report). (2). A written record or summary, a detailed account or statement, or a verbal account. (3). A term used to refer to a role that is subordinate to another role in an organisation structure.

Requirements the stakeholders’ wants and needs clearly defined with acceptance criteria.

Requirements management The process of capturing, assessing and justifying stakeholders’ wants and needs.

Resource allocation The process by which labour and nonlabour resources are attributed to activities.

Resource levelling An approach used during resource optimisation that delays activities such that resource usage is kept below specified limits. Also known as resource limited scheduling.

Resource management The acquisition and deployment of the internal and external resources required to deliver the project, programme or portfolio.

Resource optimisation A collective term used to describe the methods for ensuring that labour and nonlabour resources are matched to the schedule. See also resource levelling and resource smoothing.

Resource smoothing An approach used as part of resource optimisation that involves utilising float, or increasing or decreasing the resources required for specific activities,

such that any peaks and troughs of resource usage are smoothed out avoiding extension of the duration where possible. Also known as time limited resource scheduling.

Resources All the labour and nonlabour items required to undertake the scope of work to the required quality.

Responsibility assignment matrix A diagram or chart showing assigned responsibilities for elements of work. It is created by combining the work breakdown structure with the organisational breakdown structure.

Return on investment (ROI) An expression of the value of an investment in change based on the gain in benefit relative to the cost.

Risk The potential of a situation or event to impact on the achievement of specific objectives.

Risk analysis An assessment and synthesis of estimating uncertainty and/or specific risk events to gain an understanding of their individual significance and/or their combined impact on objectives.

Risk analysis and management A process that allows individual risk events and overall risk to be understood and managed proactively, optimising success by minimising threats and maximising opportunities.

Risk appetite How much risk investors are willing to tolerate in achieving their objectives. Expressed as risk thresholds or tolerances.

Risk attitude The perception driven choice of a person or group about an individual risk, or overall riskiness of a project, programme or portfolio.

Risk budget A sum of money that is part of overall cost contingency to cover the cost impact of identified risks. See also management reserve and contingency.

216

Glossary

Risk event An uncertain event or set of circumstances that would, if it occurred, have an effect on the achievement of one or more objectives.

Risk owner the individual or group best placed to assess and manage a risk.

Risk register A document listing identified risk events and their corresponding planned responses. Used interchangeably with risk log or risk repository.

Risk response An action or set of actions to reduce the probability or impact of a threat, or to increase the probability or impact of an opportunity.

Rolling wave planning The process whereby shortterm work is planned in detail and longerterm work is planned in outline only.

Scenario planning A method used to anticipate potential future scenarios that is useful in preparing to deal with emergent change.

Schedule A timetable showing the forecast start and finish dates for activities or events within a project, programme or portfolio.

Scope The totality of the outputs, outcomes and benefits and the work required to produce them.

Scope management The process whereby outputs, outcomes and benefits are identified, defined and controlled.

Share A risk management response to an opportunity that increases its probability, impact or both by sharing the risk with a third party.

Social system The network of relationships between people (actors) involved in the project, programme or portfolio and how the influences between actors work as a whole.

Sponsor A critical role as part of the governance board of any project, programme or portfolio. The sponsor is accountable for ensuring that the work is governed effectively and delivers the objectives that meet identified needs.

Stakeholder Individuals or groups who have an interest or role in the project, programme or portfolio, or are impacted by it.

Stakeholder engagement The systematic identification, analysis, planning and implementation of actions designed to influence stakeholders.

Statement of work An annex to the main body of a contract that defines the detail of deliverables, timescales and management procedures relevant to the contract.

Story point A method of estimating the completion/forecasting work yet to complete on a user story when using an iterative life cycle.

Strategic intent The term used to describe the aspirational plans, overarching purpose or intended direction of travel needed to reach an organisational vision.

Strategic sourcing An analysis of the buying strengths and weaknesses of an organisation that enables procurement strategies to maximise buying advantages and respond to risks of supply disruption.

Success criteria The satisfaction of stakeholder needs for the deployment of a project. Note this is a different performance measure to benefits, which are focused on the strategic intent and delivering beneficial change.

Sustainability An approach to business that balances the environmental, social, economic and administrative aspects of projectbased working to meet the current needs of stakeholders without compromising or overburdening future generations.

Glossary

217

Talent management The ability to attract, motivate and retain high quality people to deliver the strategic goals and objectives of the organisation.

Team A group of people working in collaboration or by cooperation towards a common goal.

Temporary organisation (team) A generic term used to describe a specific project, programme or portfolio team brought together specifically to implement projectbased work. Used to contrast the organisational structure for project based work from the permanent organisation.

Threat A negative risk event; a risk event that if it occurs will have a downside/ detrimental effect on one or more objectives.

Three-point estimate An estimate in which optimistic best case, pessimistic worst case and most likely values are given.

Time scheduling A collection of techniques used to develop and present schedules that show when work will be performed.

Timebox A generic term used in iterative life cycle approaches to refer to an iteration with a fixed end date that is not allowed to change, thereby adjusting the scope and quality to deliver on time and to cost.

Tolerance A level of delegated permission to vary performance from specified parameters.

Tranche A subdivision of the deployment phase of a programme designed to enable an incremental approach to development of outputs, outcomes and benefits.

Transition The fourth phase in a linear cycle where results are handed over, commissioned and accepted by the sponsor, culminating in formal closure.

Triple constraint A way of describing the fundamental tradeoff between time, cost and quality in delivering the scope of a project. Often also called the iron triangle.

User story An informal, simple language description of one or more features of a system or tool. User stories are often written from the perspective of an end user or user of a system.

Users The group of people who are intended to work with deliverables to enable beneficial change to be realised.

V life cycle A graphical representation of a life cycle where horizontal lines connect related front and backend phases, useful specifically in verifying how requirements will be checked during deployment.

Value A standard, principle or quality considered worthwhile or desirable. In value management terms, value is defined as the ratio of ‘satisfaction of requirements’ over ‘use of resources’.

Value management A structured approach to defining what value means to the organisation. It is a framework that allows needs, problems or opportunities to be defined and then enables review of whether these can be improved to determine the optimal approach and solution.

Variable or recurring cost A resource and associated cost that is influenced by volume of business or quantity, for example a recurring operational cost.

Virtual team A team where the people are separated by geography and potentially time zone.

VUCA conditions (volatility, uncertainty, complexity and ambiguity) A phrase used to describe an organisational context where there is inherent uncertainty that makes it

218

Glossary

difficult to predict and plan with great accuracy.

Weighted average cost of capital (WACC) The minimum average return that an organisation must earn on an existing asset base to satisfy its capital providers (creditors, owners, etc.). See also cost of capital.

Whole-life costs The fixed and variable capital and operational costs required to develop, use and terminate a product or asset.

Workplace stress The adverse reaction that people have to excessive pressure or other types of demand placed upon them.

219

Index

acceptance criteria 162, 209

accountability

extended life cycles and 24

of project workers 144

of sponsors 40

accreditations 146

adoption

and benefits realisation 92–3

extended life cycles and 24

preparing the ground for 88–9

term 209

Advancing Research on Projects and Temporary Organizations 47

Advising Upwards: A Framework for Understanding and Engaging Senior Management Stakeholders 107

affordability, of benefits 42

Agile and Earned Value 185

Agile Governance and Audit: An Overview for Auditors and Agile Teams 77

agile methods 20, 22–3

Agile PM: Agile Project Management Handbook, Vol. 2 21

‘Agilestagegatehybrids: The next stage for product development’ 23, 73

agile, term 209

Agile Testing: A Practical Guide for Testers and Agile Teams 205

agility, organisational 4

analogous/analytical estimates 172, 209

APM (Association for Project Management) 144

APM Code of Professional Conduct 145

APM FIVE Dimensions of Professionalism 144, 145

APM Introduction to Programme Management 17, 19, 21, 61, 67, 175

archives 74, 96

assertiveness skills 114

asset management 202

assurance

assurance principles 34–5

audits and 76–7

information management and 74–5

integrated assurance 34–5, 212

quality planning and 162

reviews 69, 70, 76

term 209

audits 76–7, 202

authority, delegated 198

bargaining positions 138

baseline, term 209

behaviours, people and 103, 108

benchmarking, maturity models and 82

Benefit Realisation Management 155

benefits

affordability of 42

benefit mapping process 155

benefits management 24, 154–5, 209

change and 10–11

realisation of 24, 40, 90, 92–3, 209

term 209

tracking of 92

Benefits Realisation Management: A Practical Guide to Achieving Benefits through Change 25

best alternative to a negotiated agreement (BATNA) 138, 139

bestvalue, from supply chains 38

220

Index

bias

decision bias 42, 158, 168, 211

unconscious/conscious 128

Bids, Tenders and Proposals: Winning Business through Best Practice 167

BIM Handbook: A Guide to Building Information Modelling for Owners, Managers, Designers, Engineers and Contractors 203

bottomup estimates 172, 209

breakdown structures 160–1, 209

budgeted cost of work scheduled (BCWS) 180

buffers 176, 209

Building Sponsors: Future Project Leadership 41

Business Analysis and Leadership: Influencing Change 157

businessasusual 209

business cases

adoption and benefits realisation and 92

defined 209

governance and 44–5

implementing strategy and 3

options/solutions and 158, 160

sponsors and 10, 44

business information modelling (BIM) 202, 209–10

business readiness 88–9, 210

business value 3

buyin 74

Buzzing Communities: How to Build Bigger, Better, and More Active Online Communities 81

Capability Maturity Model (CMM®) 82, 83

capital budgeting 42

Causes and Management of Stress at Work 131

champions, for change 88

change

barriers to 8

benefitsdriven 10–11

business value and 3

champions for 88

change control 34, 198, 200–1, 210

change freezes 200, 210

change impact analysis 88

change management 8–9, 201, 210

change register (or log) 200, 210

change requests 32, 196, 200, 210

embedding 92

emergent change 211

investment in 6

organisational culture and 126

preparing for 55

strategic nature of 1

transition into use 87–99

Change Ready: How to Transform Change Resistance to Change Readiness: A Manager’s Guide to Managing and Sustaining Change in the 21st-Century Workplace 89

Chartered Project Professional (ChPP) standard 146

climate change 36

closure 18, 210

CMMI® Development, V2.0 Driving Performance through Capability 83

coaching 124

codes of conduct 144

collaboration 112–13

Communicating Projects: An End-to-End Guide to Planning, Implementing and Evaluating Effective Communication 137

communication(s)

communication skills 110

contract management and 192

decision gates and 72

defined 210

information management and 74, 136–7

social media 146

virtual/facetoface/nonverbal 136

virtual teams and 120

working professionally and 136–7

communities of interest 80

communities of practice 80–1, 210

comparative estimating 210

Index

221

Competence and Competency Frameworks 147

competence, continual development of 146–7

competitive tendering 166

The Complete Project Management Office Handbook 71

complexity 57, 108–9, 210

compliance

audits and 76

legal and regulatory environments and 142

concept 210

conferences 146

confidence levels, planning and 182

confidentiality, tendering and 166

configuration

configuration control and quality control 204

configuration management 202–3, 210

defined 210

conflict resolution 88, 110, 114–15, 120, 122, 210

consultancy advice 142

context

contextual awareness 110

defined 210

life cycles and 22

contingency

contingency drawdown 196, 197

contingency management 196–7

contingency planning 90, 172, 182–3, 184, 196

contingency provision 40

defined 210

continuing professional development (CPD) 81, 103, 144, 146–7, 210

continuous improvement 49 (see also quality)

Contract and Commercial Management: The Operational Guide 193

Contract Management: Core Business Competence 193

contracts

awarding of 166–7

bill of quantity/target cost 64

contract management 192–3

defined 210–11

facilitation and contracting 112–13

negotiation and 138–9

what sort of contracting strategy 65

controls

change control 34, 198, 200–1, 210

configuration control 202

cost control 18, 211

defined 211

supporting contract management 193

coordinating frameworks, retiring of 98

coordination, of operational and projectbased work 66

corporate governance 50, 62, 96 (see also governance)

cost(s)

cost control 18, 211

cost of capital 211

cost performance index (CPI) 190

cost planning 180–1, 211

fixed or nonrecurring costs 180, 181, 212

of quality 205

variable costs 180, 181, 217

wholelife costs 26, 218

Creating High Performance Teams: Applied Strategies and Tools for Managers and Team Members 119, 123

Critical Chain 177

critical chain analysis 176–7

critical chain, defined 211

Critical Chain Project Management 177

critical path analysis 174–5, 176, 211

critical path, defined 211

culture(s)

cultural awareness 110

national cultural differences 126, 128

organisational 94, 126–7, 130, 213

scheduling and 176

supportive 78–9

team working and 122

Current Practices and Trends in Technical and Professional Communication 137

222

Index

decision making

decision bias 42, 158, 168, 211

decision gates 32, 34, 44, 69, 72–3, 94, 184, 211

evidence based 76

investment decisions 42–3, 212

riskbased 57, 60

Decision Making & Problem Solving: Break through Barriers and Banish Uncertainty at Work 199

Decision Quality: Value Creation from Better Business Decisions 159

delegated authority 198

delegation, team working and 124

Delphi technique 172, 211

‘Delusions of success: How optimism undermines executives’ decisions’ 43

deployment

change control and 200–1

configuration management 202–3

contingency management and 196–7

contract management and 192–3

controlling 189

deployment baseline 184–5, 198

integrated planning and 165

issue management 198–9

planning and managing of 151–63

progress monitoring and reporting 190–1

quality control 204–5

risk management and 194–5

development

of teams 122–3

virtual leadership and 120, 121

difference, and the creation of value 128

Directing Agile Change 23, 33, 159

Directing Change 33

disbenefits 10

discrimination 128

diversity, team working and 128–9

earned value

defined 211

earned value analysis 190, 191

earned value approaches 161

earned value management 211

Earned Value Management Guidelines 181

Earned Value Management Handbook 91, 161, 185, 191

emergent change 211

‘Enforcing strategic fit of project portfolios by project termination: An empirical study on senior management involvement’ 95

engagement

of stakeholders 40, 66, 105–15, 216

of users 22

Equality and Discrimination: Understand the Basics 129

escalation routes 32, 50, 192, 198, 211

The Essence of Managing Quality for Projects and Programmes 163, 205

Essentials of Business Law 143

Essentials of Management Information Systems 75

Estimating Guide 173

estimation 172–3, 209, 210, 211

Ethical Data and Information Management: Concepts, Tools and Methods 75

ethics

standards and 144–5

team working and 124

evaluation

evaluation criteria 156

of return on investment 42

eventdriven 211

Everyone Can Win: Responding to Conflict Constructively 115

Everyone Leads: Building Leadership from the Community Up 123

evidence based decision making 76

evidencebased recommendations 158

The Evolution of Project Management Practice: From Programmes and Contracts to Benefits and Change 7

Index

223

The Executive Guide to Breakthrough Project Management: Capital & Construction Projects; On-Time in Less Time; On-Budget at Lower Cost; Without Compromise 177

Exploring Strategic Change 9

extended life cycles 24–5, 95, 211

facilitation 71, 112–13, 120, 211

A Facilitator’s Guide to Participatory Decision-Making 113

failing fast 94

feasibility studies 158

feedback

team working and 122, 124

user 20, 158

financial indicators 42

fixed or nonrecurring costs 180, 181, 212

flexibility, strategic 4

floats 176, 212

forecasts 212

funding

defined 212

portfolio management offices (PMOs) and 70

for portfolios 62–3

for projects 58

the release of funds 180

Gantt charts 174, 212

Getting Things Done: The Art of Stress-Free Productivity 131

Getting to Yes: Negotiating an Agreement without Giving in 138

governance

assurance principles 34–5

business cases and 44–5

on closure of a project 98

conflicts and 114

corporate governance 50, 62, 96

decision gates and 69, 94

defined 212

extended life cycles and 24

generic project governance structure 51

governance boards 10, 50–1, 212

governance principles 32–51

investment decisions 42–3

legal and regulatory environments and 142

portfolios and 62

programmes 60

progress monitoring, reporting and 191

risk identification 168

sponsorship 40–1

stakeholders and 34, 36

strategic sourcing 38–9

sustainability 36–7

talent management 48–9

temporary structures 46–7

tendering and 166

term 32

unplanned project endings and 94

Governance of Co-owned Projects 33

Gower Handbook of Programme Management 83

The Green Book: Central Government Guidance on Appraisal and Evaluation 45, 159

The Growing Significance of CPD: Ensuring Professionalism in a Dynamic and Changing Workplace 147

Guide for Effective Benefits Management in Major Projects 11, 25

A Guide to Assurance of Agile Delivery 23, 35

A Guide to Conducting Integrated Baseline Reviews 185

Guide to Contracts and Procurement 65, 167, 192

A Guide to Integrated Assurance 35

Guide to Life Cycles and Life Cycle Models 19, 27

Guide to Planning, Scheduling, Monitoring and Control 191

A Guide to Project Auditing 35

A Guide to Using a Benefits Management Framework 11, 25, 45, 93, 155

224

Index

The Handbook of Board Governance: A Comprehensive Guide for Public, Private and Not-for-Profit Board Members 51

The Handbook of Project-Based Management: Leading Strategic Change in Organizations 179

The Handbook of Project Portfolio Management 63

handover

defined 212

linear life cycles and 18

preparing the ground for 88–9

‘Harnessing your staff’s informal networks’ 81

health, stress and 130–1

The Hidden Power of Social Networks: Understanding How Work Really Gets Done in Organizations 109

‘The hidden traps in decision making’ 43

host organisations 212

How the Way We Talk Can Change the Way We Work: Seven Languages for Transformation 127

human resources (see also continuing professional development (CPD)

rewarding people 49

staff issues on project closure 96

talent management 48–9, 217

hybrid life cycles 22–3, 72, 168, 212

impact scales 168, 170, 171

Improving Infrastructure Delivery: Project Initiation Route-Map 39

inclusion, team working and 128–9

incremental life cycles 16, 20

influence, relationships and 110–11 (see also negotiation)

influencing 212

Influencing: Skills and Techniques for Business Success 111

information management 70, 74–5, 136–7, 202, 212

The Information Paradox: Realizing the Business Benefits of Information Technology 11

integrated assurance 34–5, 212

Integrated Baseline Review (IBR) Handbook 181

integrated planning 165, 180, 184, 198, 212

internal rate of return (IRR) 42, 212

International Journal of Project Management 146

International Standards 142

Introduction to Communities of Practice 81

Introduction to Managing Change 7, 9, 89

An Introduction to Programme Management 97, 99, 197

Introduction to Project Controls Guide 184, 199, 201, 203

investment(s)

appetite for risk and 194

in change 6

investment appraisal 44, 158, 159, 212

investment decisions 42–3, 212

justifying 44

in people and knowledge 80

portfolios and 13

projectwork and 3

return on investment (ROI) 6, 42, 62, 215

value created by 10

ISO 30401: Knowledge Management Systems: Requirements 79

issue management 198–9

issues 212

iterative life cycles

agility, flexibility and 151

contingency management and 196

contingency planning and 182

decision gates and 72

defined 213

defining outputs and 153

deployment and 22

the deployment baseline and 184

estimates and 172–3

explained 16

Index

225

fixed and variable cost for 181

identification of requirements 157

incremental concepts and 20–1

integrated planning and 165

options, solutions and 158

progress monitoring and reporting 190

quality planning and 162

resource optimisation and 178

risk identification and 168

scope definition in 160

stakeholder buyin and 88

timeboxing and 174

transition of outputs and 90–1

journals 146

knowledge management 15, 16, 18, 49, 69, 78–9, 80, 213

knowledge, tacit 78

Kraljic matrix 38, 39

Lateral Thinking: A Textbook of Creativity 159

law(s)

legal and regulatory frameworks 142–3

procurement and 138

Public Interest Disclosure Act 1998 145

tendering and 166

Leaders Eat Last: Why Some Teams Pull Together and Others Don’t 124

leadership

defined 213

facilitation 112–13

leading teams 124–5

situational 124

sponsorship and 40–1

virtual teams and 120, 121

Leading Change 89

Leading Effective Virtual Teams: Overcoming Time and Distance to Achieve Exceptional Results 121

Leading Successful PMOs: How to Build the Best Project Management Office for Your Business 71

Leading the Project Revolution: Reframing the Human Dynamics of Successful Projects 119

learning

communities of practice and 80–1

continuing professional development (CPD) 81, 103, 144, 146–7, 210

information management and 74–5

reflective practitioners 146

use of knowledge 69

legal and regulatory frameworks 142–3 (see also law(s))

The Lens Collective 111

levelling, resources 178–9

life cycles

benefits and value delivery and 6

business cases and 44

context and 22

decision gates and 72

defined 213

estimation and 172–3

evolutionary 16

extended life cycles 24–5, 95, 211

hybrid 22–3, 72, 168, 212

incremental 16, 20

iterative. See iterative life cycles

life cycle options and choices 15–27

life cycle phases 32

life cycle philosophy 16–17

linear. See linear life cycles

product life cycles 26–7, 214

shaping the early life cycle 57–67

sponsor’s role in the 40

V life cycles 157, 217

linear life cycles

decision gates and 72, 73

defined 213

226

Index

defining outputs and 153

the deployment baseline and 184

estimates and 172

explained 16

fixed and variable cost for 181

integrated planning and 165

options, solutions and 158

phases of 18–19

resource optimisation and 178

scope definition in 160

transition of outputs and 90

listening skills 114

The Long-Distance Leader: Rules for Remarkable Remote Leadership 121

Make Time: How to Focus on What Matters Every Day 141

Making the Business Case: Proposals that Succeed for Projects that Work 45

management

of benefits 24, 154–5, 209

change management 8–9, 201, 210

configuration management 202–3, 210

contingency management 196–7

contract management 192–3

earned value management 211

issue management 198–9

management plans 213

management reserves 182, 196–7, 213

performance management 48

portfolio management 63, 214

programme management 40, 214

project management 4, 214

quality management 163

requirements management 18, 215

resource management 48, 215

risk management 140, 142, 194–5, 216

scope management 160, 216

selfmanagement in teams 122

talent management 48–9, 217

time management 140–1

value management 158, 217

Managing and Working in Project Society: Institutional Challenges of Temporary Organisations 47

Managing Business Ethics: Straight Talk about How to Do it Right 145

Managing in a VUCA World 5

Managing Knowledge in Project Environments 17, 79

Managing Knowledge Work and Innovation 79

Managing Project Ending 95

Managing Project Uncertainty 5

Managing Projects in a World of People, Strategy and Change 9, 119

Managing Quality in Projects 163

Managing Risk in Projects 169

Managing Successful Programmes 93

Managing the Causes of Work-Related Stress: A Step-by-Step Approach 131

Managing the Unknown: A New Approach to Managing High Uncertainty and Risk in Projects 5

maturity models 69, 82–3, 213

maturity of practice 82–3

Measures for Assuring Projects 73, 77

meetings, virtual 120

mentoring 124

milestones 18, 213

minimum viable product 92, 213

Models to Improve the Management of Projects 83

monitoring, of performance 190–1

Monte Carlo simulation 170–1, 182, 213

MoSCoW approach 156

negotiation 138–9

Net Present Value and Risk Modelling for Projects 43

net present value (NPV) 42, 213

network diagram 213

nonrecurring or fixed costs 180, 181, 212

Index

227

objectives

defined 213

portfolio shaping and 62

and requirements of projects 156–7

risk identification and 168

operational adjustments, projects 66–7

Operational Readiness & Assurance (OR&A): A Guide for Practitioners 67

opportunities

defined 213

response to 194, 195

optioneering 213

options, solutions and 158–9

Organisation Science 47

organisations

in context 4–5

host organisations 212

maturity of 82–3

organisational agility 4

organisational change 8–9

organisational culture 94, 126–7, 130, 213

organisational politics 108

organisational structures 46–7

strategic intent of 1, 6, 7, 8, 10, 216

Organizational Culture and Leadership 127

outcomes

of change efforts 9

the conformance of to requirements 204–5

defined 214

knowledge management and 78–9

working with people to achieve 110–11

outputs

the conformance of to requirements 204–5

defining 153–64

ensuring delivery of 162–3

term 214

transition of 90–1

translation of requirements into 160–1

verifying the configuration of 203

The Paradox of Regulation: What Regulation Can Achieve and What it Cannot 143

parametric estimates 172, 214

payment mechanisms, risk and 64

people, behaviours and 103, 108

People Resourcing and Talent Planning 49

performance

arousal and 131

the deployment baseline and 190–1

monitoring/managing supplier performance 192–3

monitoring of 190–1

performance indicators 10, 92

performance management 48

of teams 122

personal plans 140

phases 18, 32, 214

planning

contingency planning 90, 172, 182–3, 184, 196

cost planning 180–1, 211

deployment and 151–63

integrated 165, 180, 184, 198, 212

management plans 213

negotiation and 138

planned value 180, 214

quality control and 205

quality planning 76, 142, 162–3, 204, 215

rolling wave planning 174, 216

scenario planning 4, 216

succession planning 49

timebased 174–7

Planning, Scheduling, Monitoring and Control 59, 67, 91, 161, 175, 179, 181, 201

politics, organisational 108

Portfolio and Programme Management Demystified 63

228

Index

Portfolio Management: A Practical Guide 63

portfolios

benefits scorecard 92

the closing of 98–9

decision gates and 72

defined 214

explained 13

facilitation of 112

funding for 62–3

governance and 62

investments and 10

justifying investment in 44–5

life cycles and 22

portfolio effect 42

portfolio management 63, 214

portfolio shaping 62–3

project (programme or portfolio) management office (PMO) 55, 69, 70–1, 76, 79, 118, 190, 214

stakeholder influence and 111

as strategic investments 6

support structures for 70

The Power of Project Leadership: 7 Keys to Help You Transform from Project Manager to Project Leader 125

A Practical Approach to Alternative Dispute Resolution 115

Practical Cost Control Handbook for Project Managers: A Practical Guide to Enable Consistent and Predictable Forecasting for Large, Complex Projects 197

A Practical Guide to Dealing with Difficult Stakeholders 107

Practical People Engagement: Leading Change through the Power of Relationships 111

Practical Project Risk Management: The ATOM Methodology 171, 195

Practical Schedule Risk Analysis 183

Praxis Framework 97, 99

precedence network 174, 214

Prioritising Project Risks 171, 183

probabilistic risk analysis 170–1, 182

procurement agreements 138

procurement strategies 38, 64–5, 214

Procuring Successful Mega-Projects 65

product life cycles 26–7, 214

Product Lifecycle Management: The Executive Summary 27

Product Stewardship in Action: The Business Case for Life Cycle Thinking 27

products 214

professionalism

APM FIVE Dimensions of Professionalism 144, 145

defined 214

of project workers 135–47

Program Management 61, 99

programmes

assurance approach/strategies 34

the closing of 87, 98–9

decision gates and 72

defined 214

explained 12–13

facilitation of 112

forecast benefits of 10

governance 60

justifying investment in 44–5

life cycles and 22

programme management 40, 214

programme shaping 60–1

project (programme or portfolio) management office (PMO) 55, 118, 190, 214

quality planning and 162

support structures for 70

progress monitoring, the deployment baseline and 184, 190–1

Project 146

Project 13

Commercial Handbook 65

Project Governance: A Practical Guide to Effective Project Decision Making 51

Project Leadership 125

Project Management 95, 97, 179, 191, 203

Index

229

The Project Manager’s Guide to Purchasing: Contracting for Goods and Services 167

Project Performance Review: Capturing the Value of Audit, Oversight and Compliance for Project Success 77

Project Quality Management: Why, What and How 163, 205

Project Risk Analysis and Management Mini Guide 171

Project Risk Analysis and Management (PRAM) Guide 169, 171, 195, 197

Project Sponsorship: An Essential Guide for Those Sponsoring Projects within Their Organizations 41

projectwork (see also continuing professional development (CPD); projects)

accountability of project workers 144

assurance approach/strategies 34

assurance, learning and maturity 69–83

change control and 200

change management and 8

communities of practice and 80

defined 214

facilitation 112–13

life cycles and 16, 18

maturity of practice 82–3

personal resilience 114, 130

professionalism and 135–47

project professionals 214

reflective practitioners 146

sponsorship and 40–1

strategic intent and 3, 6

stress and 130–1

talent management 48–9

teams and. See teams

uncertainty and 4

The Project Workout: Directing and Managing Business-Led Projects 19, 21, 73

The Project Workout: The Ultimate Guide to Directing and Managing Business-Led Projects 199, 201

projects (see also projectwork)

closure of 87, 96–7

decision gates and 72

defined 214

explained 12–13

forecast benefits of 10

funding for 58

generic project governance structure 51

highrisk 90

justifying investment in 44–5

objectives and requirements of 156–7

operational adjustments 66–7

project closeout reports 96

project management 4, 214

project management plans (PMPs) 64, 74, 184, 185, 198, 202, 214

project (programme or portfolio) management office (PMO) 55, 118, 190, 198, 214

project rationale 58

project shaping 58–9

scope of 58, 178, 184

social context of 108–9

strategy implementation and 3

success of 154, 156

support structures for 70

transition into use 87–8

unplanned project endings 94–5

Public Interest Disclosure Act 1998 145

publications 146

qualifications 146

qualitative indicators, tracking of benefits 92

qualitative risk analysis 170

quality

continuous improvement 49

cost performance index (CPI) 190

costs of 205

defined 162, 214

International Standards 142

performance indicators 10, 92

quality assurance 204

230

Index

quality control 162, 204–5, 215

quality management 163

quality planning 76, 142, 162–3, 204, 215

resource optimisation and 178

schedule performance index (SPI) 190

quick wins 16

readiness for change, assessing 88

Records and Information Management 75

Reflective Practice: Writing and Professional Development 147

reflective practitioners 146

regulation

the legal and regulatory environment 142–3

quality planning and 162

tendering and 166

relationships

conflict resolution 88, 110, 114–15, 120, 122, 210

creating shared understanding 78

delivery partners 38

deployment and 189

influence and 110–11

sponsorship and 40

with suppliers 38–9, 64

team working and 122

virtual teams and 120

reporting

audits and 76

contract management and 192

deployment and 190–1

reports defined 215

requirements

defined 215

and objectives of projects 156–7

requirements management 18, 215

Requirements Engineering 157

resilience, personal 114, 130

resistance, to change 88

resource critical path method. See critical chain analysis

The Resource Management and Capacity Planning Handbook 179

resources

cost planning 180–1, 211

defined 215

estimation and 172–3

resource allocation 18, 215

resource levelling/resource smoothing 178–9, 215

resource management 48, 215

resource optimisation 178–9, 180, 215

resource strategies 46

subcontracted 180

Resourcing and Talent Management 49

respect 144

responsibility assignment matrix 32, 215

return on investment (ROI) 6, 42, 62, 215

reviews

assurance and 69, 70, 76

decision gates and 72

rewarding people 49

Riding the Waves of Culture: Understanding Diversity in Global Business 129

risk(s)

assurance and 76, 77

contingency and 182, 196

contract management and 192

defined 215

deployment and risk management 194–5

the deployment baseline and 184

describing risks using a defined ‘metalanguage’ 169

investment decisions 42–3, 212

issues and 198

risk analysis 34, 170–1, 172, 182, 194, 215, 216

risk appetite 16, 194, 215

Index

231

risk attitude 194, 215

risk budgets 215

risk events 215

risk identification 168–9, 194

risk management 140, 142, 194–5, 216

risk owners/risk registers 168, 216

risk responses 72, 216

supply chains and 64

of supply disruption 38

sustainability and risk strategies 36

tolerance for 58

rolling wave planning 174, 216

scenario planning 4, 216

scheduling

comparing scheduling approaches 177

critical chain 176–7

critical path 174–5

culture and 176

schedule performance index (SPI) 190

schedules defined 216

The Scheduling Maturity Model 175

scope

configuration management and 202

of projects 58, 178, 184

scope definition 160–1

scope management 160, 216

term 216

Scrum: How to Leverage User Stories for Better Requirements Definition 157

selfmanagement, in teams 122

share 216

A Short Guide to Facilitating Risk Management: Engaging People to Identify, Own and Manage Risk 113, 169

A Short Guide to Risk Appetite 59

The Silent Language of Leaders: How Body Language Can Help – or Hurt – How You Lead 137

situational leadership 124

skills, portfolio management offices (PMOs) and 70–1

SMART objectives 156

smoothing, resources 178–9

social aspects, of team working 124

social context, of projects 108–9

social impacts 36

social media 146

Social Network Analysis 109

social network diagram 108, 109

Social Partnerships and Responsible Business 37

social systems 108, 216

software

business information modelling (BIM) 202

scheduling 174

solutions, options and 158–9

sourcing, strategic 216

sourcing strategies 38

‘speaking up’ 144

specialist advice 142, 143

specialists, in teams 118, 122

Sponsoring Change: A Guide to the Governance Aspects of Project Sponsorship 41, 91, 155