PMBOK Guide Third Edition Updates from PMBOK Guide

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition PMBOK Guide – Third Edition Focus on Changes May 2005 Long Island Chapter - PMI 1

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition Introduction • • History of PMBOK Update Project Review of PMBOK Section I and II Updates Section III Updates: Knowledge Areas Additional Changes Impacts to PMILIC and Members May 2005 Long Island Chapter - PMI 2

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition History of the PMBOK • 20 years in the making • The PMBOK Guide is the only PMI project management standard accredited by the American National Standards Institute (ANSI) • Standards are continually kept up-to-date as the profession changes at an accelerated pace May 2005 Long Island Chapter - PMI 3

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition PMBOK Update Project – Team Charter • Place more emphasis on the Project Management Process Groups • Create a more expansive treatment of Integration management • Expand the treatment of the Initiation Process Group at the front end of the project and at the start of each phase • Expand the index and glossary May 2005 Long Island Chapter - PMI 4

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition PMBOK Update Project – Development Team • Development team composed of volunteers led by Dennis Bolles, PMP and Darrell Hubbard, P. E. • International and multi-industry team composition: 28 countries over 7 continents and 52 industries • 27 months to draft the new standard • 5 months for review and evaluation of draft (3, 000 recommendations from 140 reviewers) May 2005 Long Island Chapter - PMI 5

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition PMBOK Update Project – Focus of Team • • Maintain a single project focus Maintain approximately the current size Expand focus/information on process groups Expand treatment of integration processes Expand treatment of initiation processes Improve content consistency Expand improve the glossary May 2005 Long Island Chapter - PMI 6

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition PMBOK Update Project – Results: Structural Changes • Emphasized the importance of the Project Management Process Groups • Renamed Chapter 3 to “Project Management Processes for a Project” • Moved Chapter 3 to a new Section II • Named the new Section II “The Standard for Project Management of a Project” • Revised Chapter 3 to clearly indicate that the processes, inputs and outputs are the basis of the standard for project management of a single project May 2005 Long Island Chapter - PMI 7

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition PMBOK Update Project – Results: Process Name Changes • Seven processes added, 13 renamed and two deleted (net gain of five processes) • Uniform style to be adopted emphasizing the activities (processes) are preferable • Most new processes have been renamed using a verb-object format May 2005 Long Island Chapter - PMI 8

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition PMBOK Update Project – Results: Process Designations • The terms “Facilitating Processes” and “Core Processes” no longer used to emphasize that all the processes have the same level of performance • Processes are still grouped within the Project Management Process Groups: Initiating; Planning; Executing; Monitoring and Controlling; and Closing Process groups • The 44 project management processes are mapped to both the Knowledge Areas and The Project Management Process Groups May 2005 Long Island Chapter - PMI 9

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition Review - PMBOK Sections 2000 Third Edition Section I: The Project Management Framework Section II: The Project Management Section II: The Standard for Project Knowledge Areas Management of a Project Section III: Appendices Section III: The Project Management Knowledge Areas Section IV: Glossary and Index Section IV: Appendices Section V: Glossary and Index May 2005 Long Island Chapter - PMI 10

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition Updates: Chapter 1 - Introduction • Clarifies the differences between a project and operations • Consolidates the areas of management expertise and interpersonal skills into one section • Provides standard definitions for program and program management and for portfolio and portfolio management • Adds more detailed discussion of project management office variations May 2005 Long Island Chapter - PMI 11

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition Updates: Chapter 2 - Project Life Cycle and Organization • Clarifies the distinction between project life cycles and product life cycles • Defines stakeholders in relation to the project team • Defines the project management office’s role and responsibility in the organization • Introduces the concept of a project management system • Moved general management skills to Chapter 1 May 2005 Long Island Chapter - PMI 12

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition Updates: Chapter 3 - Project Management Processes for a Project • Completely rewritten • Expanded to focus on the Project Management Process Groups and processes • Moved to its own Section – new Section II – The Standard for Project Management of a Project • Includes new diagrams defining process flows and deliverables overall and within each of the project management processes May 2005 Long Island Chapter - PMI 13

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition Updates: Section III – The Project Management Knowledge Areas • Seven New Processes • Renamed 13 Processes for greater clarity • Tightly integrated and consistently placed Inputs, Tools & Techniques, and Outputs • Added new process flow diagrams to better illustrate the relationships among the Project Management Processes • Added an introduction to Section III describing the Process Flow Diagrams and Major project deliverables May 2005 Long Island Chapter - PMI 14

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition Updates: Chapter 4 - Project Integration Management - Processes 2 0 0 0 T h i r d E d it i o n 4. 1 Project Plan Development 4. 1 Develop Project Charter 4. 4 Direct and Manage Project Execution May 2005 4. 2 Project Plan Execution 4. 2 Develop Preliminary Project Scope Statement 4. 5 Monitor and Control Project Work 4. 6 Integrated Change Control Long Island Chapter - PMI 4. 3 Integrated Change Control 4. 3 Develop Project Management Plan 4. 7 Close Project 15

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition Updates: Chapter 4 - Project Integration Management - Highlights • Describes integration from the Project Management Process Groups’ perspective • Adds 4 new processes: – Develop Project Charter formally authorizes a project – Develop Preliminary Project Scope Statement (highlevel narrative of project scope) • Monitor and Control Project Work – Close Project • Renames 2 processes: Develop Project Plan and Direct and Manage Project Execution May 2005 Long Island Chapter - PMI 16

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition Updates: Chapter 5 - Project Scope Management - Processes 5. 1 Initiation 2 0 0 0 5. 2 Scope Planning 5. 1 Scope Planning 5. 3 Scope Definition 5. 2 Scope Definition 5. 3 Create WBS 5. 4 Scope Verification 5. 5 Scope Change Control May 2005 Third Edition Long Island Chapter - PMI 5. 5 Scope Control 17

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition Updates: Chapter 5 - Project Scope Management - Highlights • Clarifies the role of the project scope management plan in developing the project scope • Expands the discussion and clarifies the importance of a work breakdown structure • Includes a new section on creating the WBS • Deletes Initiation as a process with much of that information from the PMBOK 2000 going into Chapter 4 • Expands the Scope Management Plan to cover planning for scope definition, creating the WBS, verifying and controlling the scope and making this the output of scope planning May 2005 Long Island Chapter - PMI 18

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition Updates: Chapter 6 - Project Time Management - Processes 6. 1 Activity Definition 6. 3 now 6. 4 Activity Duration Estimating May 2005 6. 2 Activity Sequencing 6. 4 now 6. 5 Schedule Development Long Island Chapter - PMI 6. 3 Activity Resource Estimating 6. 5 now 6. 6 Schedule Control 19

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition Updates: Chapter 6 - Project Time Management - Highlights • Moved and renamed Resource Planning process into Chapter 6 (Activity Resource Estimating) • Emphasizes the need for a schedule management plan • Adds new information on project cost estimates, resource leveling and progress reporting • Updated figures and diagrams: – Deleted PERT – Improved PDMs and ADMs – Added Milestone, Summary and Detailed Schedules May 2005 Long Island Chapter - PMI 20

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition Updates: Chapter 7 - Project Cost Management - Processes Time Management 7. 1 Resource Planning 2 0 0 0 7. 1 Cost Estimating 7. 2 Cost Budgeting 7. 3 Cost Control 7. 4 Cost Control May 2005 Long Island Chapter - PMI T h i r d E d i t i o n 21

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition Updates: Chapter 7 - Project Cost Management - Highlights • Expanded to integrate project budget directly with the WBS and to cover controlling costs • Focuses Bottom-up cost estimating on the work packages or individual activities • Makes significant structural changes to the inputs, tools and techniques • Contains the majority of the Third Edition’s content on Earned Value Management (EVM) • Emphasizes the need for a cost management plan May 2005 Long Island Chapter - PMI 22

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition Updates: Chapter 8 - Project Quality Management - Processes 2000 8. 1 Quality Planning 8. 2 Quality Assurance 8. 2 Perform Quality Assurance 8. 3 Quality Control 8. 3 Perform Quality Control Third Edition May 2005 Long Island Chapter - PMI 23

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition Updates: Chapter 8 - Project Quality Management - Highlights • Strengthens the distinction between project and product quality • Adds Continuous Process Improvement as an element of Perform Quality Assurance and Perform Quality Control • Integrates quality activities with the overall Monitoring and Controlling processes as defined in Chapter 4 May 2005 Long Island Chapter - PMI 24

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition Updates: Chapter 9 - Project Human Resource Management - Processes 2000 9. 1 Organizational Planning 9. 2 Staff Acquisition 9. 1 Human Resource Planning 9. 2 Acquire Project Team 9. 3 Team Development 9. 3 Develop Project Team 9. 4 Manage Project Team Third Edition May 2005 Long Island Chapter - PMI 25

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition Updates: Chapter 9 - Project Human Resource Management - Highlights • Renamed processes and added one new one to better identify the aspects of human resource and staffing management planning • Moved non-team stakeholder issues to Chapters 2 and 10 • Added key explanations (organizational charts and position descriptions) • Revised figures to reflect current techniques, including networking, virtual teams, ground rules, conflict management, observation and conversation, project performance appraisals, and issues log May 2005 Long Island Chapter - PMI 26

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition Updates: Chapter 10 - Project Communications Management - Processes 10. 1 Communications Planning 2 0 0 0 T h i r d 10. 1 Communications Planning 10. 2 Information Distribution 10. 3 Performance Reporting 10. 4 Manage Stakeholders 10. 4 Administrative Closure new E d i t i o n out May 2005 Long Island Chapter - PMI 27

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition Updates: Chapter 10 - Project Communications Management - Highlights • Moved out the Administrative Closure process • Added the Manage Stakeholders process to explain how to manage communications to satisfy the needs of project stakeholders and resolve issues among them May 2005 Long Island Chapter - PMI 28

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition Updates: Chapter 11 Project Risk Management - Processes 11. 1 RISK MANAGEMENT PLANNING 11. 4 QUANTITATIVE RISK ANALYSIS 11. 2 RISK IDENTIFICATION 11. 5 RISK RESPONSE PLANNING 11. 3 QUALITATIVE RISK ANALYSIS 11. 6 RISK MONITORING AND CONTROL No Changes in Process Names May 2005 Long Island Chapter - PMI 29

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition Updates: Chapter 11 - Project Risk Management - Highlights • No process name changes BUT updates have been made to all six processes • Increases the focus on opportunities (versus threats) • Includes options based on project complexity • Enhances Risk Management Planning activities in terms of risk categories, definitions of probability and impact • Adds a risk register • Provides better integration with other processes May 2005 Long Island Chapter - PMI 30

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition Updates: Chapter 12 - Project Procurement Management - Processes 2 0 0 0 12. 1 Procurement Planning 12. 1 Plan Purchases and Acquisitions 12. 2 Solicitation Planning 12. 2 Plan Contracting 12. 3 Solicitation 12. 4 Source Selection 12. 3 Request Seller Responses 12. 4 Select Sellers 12. 5 Contract Administration 12. 6 Contract Closeout 12. 6 Contract Closure May 2005 Long Island Chapter - PMI T h i r d E d i t i o n 31

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition Updates: Chapter 12 - Project Procurement Management - Processes • Renamed processes to recognize the negative cultural connotations of certain words in various areas around the world • Improved consistency in the use of the terms “buyer” and “seller” • Clarified the difference between the project team as a buyer of products and services and as the seller of products and services • Includes information on seller performance evaluation • Clarified various inputs, tools & techniques and outputs as identified by project management practitioners May 2005 Long Island Chapter - PMI 32

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition Additional Changes • Changes to the Glossary • Smooth Coordination of the development of the PMBOK Guide – Third Edition with project stakeholders – i. e. Manage the Update May 2005 Long Island Chapter - PMI 33

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition Glossary Changes • Included terminology definitions to support the Third Edition’s contents • Clarified meaning and improved the quality and accuracy of translations • Eliminated terms not used in the standard May 2005 Long Island Chapter - PMI 34

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition Management of the PMBOK Update • Facilitated the handoff of the final draft standard to the Publishing Department • Interfaced with other PMI standards (e. g. Earned Value Management) and the Brand Development Department • Expedited 11 official translations to market with the English version • Supported and accelerated updates to the PMP and other exam products • Assisted PMI Components and REPs to speed development of updated training materials • Met release date of October 31, 2004 and mailed with the PM Journal in November/December May 2005 Long Island Chapter - PMI 35

PMBOK Guide – Third Edition: Updates from PMBOK Guide – 2000 Edition Impacts to PMILIC and Members • PMP Testing Dates: – Aug 29, 2005: Last application date for test on PMBOK 2000 – Sep 24, 2005: Final test day for PMP test based on PMBOK 2000 (called 2004 Examination) – Sep 30, 2005: First test day for PMP test based on PMBOK Third Edition (called 2005 Examination) • Availability of Materials: – Updated materials provided to REPs for courses’ material updates • Updates to PMILIC PMP Prep Course – Committees needed to update the PMILIC course sessions for September 2005 PMP Prep Course – Last PMILIC PMP Prep course offering for PMBOK 2000 testing will be May 17 – June 23, with 2 sessions per week May 2005 Long Island Chapter - PMI 36