Module 1 Business Environment

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LESSON 1
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BUSINESS
ENVIRONMENT
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• Foundation
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• Strategic Alignment
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• Project Benefits and Value
• Organizational Culture and D
Change Management
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• Project Governance
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• Project Compliance
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Copyright 2023© Project Management Institute, Inc. All rights reserved.

Version 3.1 | 2023 Release This material is being provided as part of a PMI® course.
Licensed For Use Only By: Mushunoori Bharani Krishna Murthy 6781292 Jul 2 2023 3:39AM
Learning Objectives
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• Define ‘project’ and how it relates to the • Discuss strategic alignment and its
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larger discussion of project management. elements.
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• Discuss the different types of • Explain the impact of business factors
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organizational structures and how on strategic alignment.
or
they relate to your project’s
• Determine how projects align with
management.
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business strategy.
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• Discuss the principles of project
• Identify types of business value.
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management.
• Describe change management theory and
• Discuss the principles of agile and
up
its relation to organizational change.
how they relate to your project’s
management.
D • Define and discuss project governance.
• Explain project compliance and its
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importance.
N
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Copyright 2023© Project Management Institute, Inc. All rights reserved. 2

This material is being provided as part of a PMI® course.
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Foundation
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TOPIC A
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3
Project
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A project:
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• Creates a unique product, service or result
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• Is time-limited
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• Drives change
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• Enables value creation for a business or organization
or
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Project success depends on:
at
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• Organizational project maturity
• Project manager effectiveness
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• Funding and resource availability
D• Team member skill levels
• Collaboration and communication within the team and with key
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stakeholders
• Understanding of the core problem and related needs
N
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The Evolution ca. 1969 – PMI founded
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of Project
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The application of
Management
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knowledge, skills, tools and
techniques to project
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activities to meet the project
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requirements
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or
Can you describe, in
your own words, how
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project management has
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changed during this
2022 - Toward a systems view
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time?
“Projects do not simply produce outputs, but more
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importantly, enable those outputs to drive
D outcomes that ultimately deliver value to the
organization and its stakeholders.”
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- PMBOK® Guide - Seventh edition

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Copyright 2023
© Project Management Institute, Inc. All rights reserved.
5
Project Management Life Cycles and Development Approaches
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Description Key Roles Value Delivery Proposition
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Plan-based approach: • Project sponsor • Deliverables transitioned to
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• Activities completed in authorizes project customer at completion
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a distinct or linear
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fashion • Team led by project • Value realized in both short
• New phase begins only manager and long term
or
when the previous
phase is completed
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Change-based approach: • Product owner controls • Iterative or incremental
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• Agile, incremental or value proposition delivery to customer during
iterative development • Project team delivers work life cycle
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• Timeboxed cadence • Process roles include team • Regular customer feedback
(iterations/sprints) or
D lead, scrum master, agile cycle enables continuous
continuous flow coach, facilitator development of value
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toward a ”final” product
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Any combination of the above

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Project
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Management
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PMOs can be:
Office (PMO)*
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Agile Centers of Excellence
Supportive (ACoEs)
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• Develop best practices, aka Value Delivery Office (VDO)
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methodologies, standards and
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templates ACoEs enable, rather than
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• Coach, mentor, train, guide manage, project efforts:
Many large and project managers
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established project- • Coach teams
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oriented organizations Controlling • Build agile mindset, skills and
have a PMO, but PMOs
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are not a requirement for • Monitor compliance with project capabilities throughout the
project management management standards, organization
up
practice. policies, procedures and • Mentor sponsors and product
templates via project audits
D owners
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Directive
• Manage shared resources
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• Coordinate communication
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across projects
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7
OPM: Organizational project management (OPM) – strategy execution framework
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that coordinates project, program, portfolio and operations management, and
A System for which enables organizations to deliver on strategy
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Value Delivery
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External Environment
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Internal Environment
or
System for Value Delivery
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Program
Portfolio A Portfolio B B.1
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Program Program Program
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Projects
A.1 A.2 B.1
Projects
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Projects
Projects Projects
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Operations
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Projects,
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Programs, Collection of projects, programs,
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Portfolio subsidiary portfolios and operations Aligns with
Portfolios Management managed in a group to achieve business strategies
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strategic objectives
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Group of related projects,
or
subsidiary programs and program Controls
Program activities managed in a coordinated components and
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Management manner to obtain benefits not interdependencies
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available from managing them to realize benefits
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individually
up
D Enables
achievement of
Project Part of a broader program, portfolio
organizational
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Management or both
goals and
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objectives
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This material is being provided as part of a PMI® course. 9
Organizational
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Structures
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• Functional Organizational structure and governance affects/determines:
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• Matrix
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• How organizational groups and individuals interrelate
• Project-oriented
• How much authority the project manager has
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• Composite • What resources will be available
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• How the project will be conducted
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10
Relative Authority in Organizational Structures
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Functional Matrix Project-oriented
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Team member Functional
Conflicted loyalty Project
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loyalty department
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Both functional
Team member
or
Functional manager manager and project Project manager
reporting
manager
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Project manager Coordinator to full Full-time and
Seldom identified
role project manager responsible
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Full-time on project
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Team member role Part-time on project Part-time on project
(preferred)
Control of project
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Nonexistent Medium – shared with
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manager over team (functional manager functional High
members controls) manager/sponsor
N
o
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Interactive/Activity
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Think of your current or a recent
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project. Can you identify the
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organizational structure type and
describe how it affects your
or
project in the following ways?
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• How organizational groups and
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individuals interrelate
• The project manager’s authority
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• Resource availability
• How the project is conducted
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12
Project
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Management
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a. Be a diligent, respectful and caring steward
Principles
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b. Recognize, evaluate and respond to system interactions
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Guidance for All c. Navigate complexity
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Project
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d. Create a collaborative project team environment
Practitioners
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e. Demonstrate leadership behaviors
f. Optimize risk responses
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g. Effectively engage with stakeholders
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h. Tailor based on context
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i. Embrace adaptability and resiliency
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j. Focus on value
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k. Build quality into processes and deliverables
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l. Enable change to achieve the envisioned future state

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From Principles to Performance Domains
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Stakeholders
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Use the 12
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principles to
Uncertainty Team
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guide
behavior in
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the 8 project
performance
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Development
domains
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Measurement Principles Approach and
Life Cycle
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up
D Delivery Planning
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Project Work
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Agile
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Derived from:
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• Four values from the Agile Manifesto
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• 12 principles
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There are more than 50 known agile
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practices and methods in use!
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up
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Copyright 2022©
2023© Project Management Institute, Inc. All rights reserved. 15
15
The Agile
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Manifesto for
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“We are uncovering better ways of developing software by doing it and
Software
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helping others do it.
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Development
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Through this work we have come to value:
D
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Individuals and interaction over Process and tools
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Comprehensive
Working software over
documentation
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Customer collaboration over Contract negotiation
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Responding to change
D over Following a plan
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That is, while there is value in the items on the right, we value the items
on the left more.”
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-2001
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Principles
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Behind the
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Agile
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Manifesto 1. Our highest priority is to satisfy the customer through early and
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continuous delivery of valuable software.
1 to 6
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2. Welcome changing requirements, even late in development. Agile
processes harness change for the customer’s competitive advantage.
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3. Deliver working software frequently, from a couple of weeks to a
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couple of months, with a preference to the shorter timescale.
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4. Businesspeople and developers must work together daily throughout
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the project.
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5. Build projects around motivated individuals. Give them the
environment and support they need and trust them to get the job
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done.
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6. The most efficient and effective method of conveying information to

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and within a development team is face-to-face conversation.

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Principles
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Behind the
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Agile
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7. Working software is the primary measure of progress.
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Manifesto
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8. Agile processes promote sustainable development. The sponsors,
7 to 12
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developers, and users should be able to maintain a constant pace
indefinitely.
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9. Continuous attention to technical excellence and good design
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enhances agility.
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10. Simplicity – the art of maximizing the amount of work not done – is
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essential.
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11. The best architectures, requirements, and designs emerge from self-
Dorganizing teams.
12. At regular intervals, the team reflects on how to become more
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effective, then tunes and adjusts its behavior accordingly.

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Agile:
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The “Far Side” of “Doing Agile vs. Being Agile”
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Adaptive
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Approaches
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Agile means:
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• Iterations are likely to be shorter
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• Product is more likely to evolve based on stakeholder feedback
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Still used for software development, and agile principles have been
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applied to other kinds of development projects, vis-à-vis the agile
mindset.
up
• Adopt a flexible, change-friendly way of thinking and behaving
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• Understand the purpose of these practices
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• Select and implement appropriate practices based on context

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• Internalize agile values, mindset and behavior

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Tailor*
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Projects to
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Contexts
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Because each project is unique, we adapt methods to the unique
project context to determine the most appropriate ways of working to
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produce the desired outcomes.
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Tailor iteratively and continuously throughout the project
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up
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Tailor Hybrid
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Approaches,
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Processes,
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Practices and
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Apply product knowledge, delivery cadence and awareness of the
Methods
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available options to select the most appropriate development
approach
or
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Tailor processes for the selected life cycle and development
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approach; include determining which portions or elements should be
added, modified, removed, blended, and/or aligned
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up
Tailor practices and methods to the environment and culture
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ot
N
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Topics Covered
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D
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• Foundational project management concepts
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• Project management principles
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• The Agile mindset
• Tailoring – hybrid approaches, processes and
up
practices in project management D
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N
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22
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Strategic Alignment
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TOPIC B
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PMI Talent
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Triangle®
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The PMI Talent Triangle® reflects the skills needed by today’s project
professionals and changemakers as they navigate the evolving world of
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project management.
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Ways of Working
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Mastering diverse and creative ways (predictive, adaptive, design
thinking) to get any job done
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Power Skills
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The critical interpersonal skills required to apply influence, inspire
change and build relationships
up
Business Acumen
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Effective decision-making and understanding of how projects align with
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the big picture of broader organizational strategy and global trends
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24
Strategic
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Alignment and
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Do you:
Business
ib
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Management • Know your organization’s strategic plan?
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Skills • Understand how project goals matter to an organization's long-term
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vision and mission?
• See a high-level overview of the organization?
or
• Have a working knowledge of business functions?
• Have pertinent product and industry expertise?
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Can you:
lic
up
• Explain the essential business aspects of a project?
• Work with SMEs and a sponsor to develop an appropriate project
D
delivery strategy?
• Implement strategy to maximize the business value of project?
ot
N
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Strategic Management Elements and Frameworks
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Some agile projects use a goal-
or
setting framework such as OKRs
(Objectives and Key Results) that
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describes the organization’s
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objectives and desired key results.
lic
up
ongoing
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N
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Note: From PMI’s Standard for Portfolio Management

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Organizational
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Influences
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Influences
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tr
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Enterprise Environmental Factors Refers to all the implicit input or
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Conditions outside the
assets on processes used by
(EEFs) immediate control of the
or
Internal and External an organization in operating a
Internal
team, and that influence,
• Internal and external to the EEFs business. This may include, but
OPAs
constrain, or direct the
(Click to show definition) is not(Click
limited to, business
to show definition)plans,
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organization project, program, or
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processes, policies, protocols,
portfolio.
and knowledge.
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Organizational Process Assets (OPAs)
• Project policies, procedures and
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templates D Process, Corporate
• Historical project information External Internal Policies and Knowledge
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Procedures Base
N
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Get to Know
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the External
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Use frameworks or prompts to understand external factors that can introduce
Business
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risk, uncertainty, or provide opportunities and affect the value and desired
outcomes of a project:
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Environment • PESTLE: Political, economic, socio-cultural, technical, legal,
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environmental
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• TECOP: Technical, environmental, commercial, operational, political
or
• VUCA: Volatility, uncertainty, complexity, ambiguity
e
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In addition, review:
lic
• Comparative advantage analysis
• Feasibility studies
up
D• SWOT (strengths, weaknesses, opportunities and threats) analysis
• Assumption analysis
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• Historical information analysis
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• Risk alignment with organizational strategy

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Internal Business
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Environment Factors
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ib
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• Organizational changes can
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dramatically impact scope
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• The project manager, project sponsor
or
or product owner need to be familiar
with business plans, reorganizations,
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process changes and other internal
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activities
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• Internal business changes might cause:
up
• Need for new deliverables
• Reprioritization of value, including
D
removal of existing deliverables
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N
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D

OPAs and
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EEFs
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OPAs EEFs
ib
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Processes, policies and Internal
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procedures
D
Examples—
• Resource capabilities
or
Examples—
• Organizational charts • Organizational culture
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• Procurement rules • IT software
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• Hiring and onboarding procedures • Distribution of facilities
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Organizational knowledge bases External
up
Examples— Examples—
D
• Engineering wikis • Marketplace conditions
ot
• Libraries or archives • Laws, regulations and standards
• Lessons learned repositories • Operating conditions
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• Social and cultural influences

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Activity:
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Project name: Shawpe Lifestyle Centre
Identify OPAs and
ib
EEFs
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List of EEFs and OPAs:
is
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a. Economic demand for a new shopping area
or
b. Historical society (conservation) building regulations
e
c. Local neighborhood demand for a better town center
at
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d. Archive of past large infrastructure projects
e. Approved vendor and contractors list
up
D f. Tenant selection process
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Which are EEFs? Which are OPAs?

N
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Topics Covered
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tr
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D
or
• Define strategic alignment and business
acumen
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• Follow guidelines for effective business
at
decision-making
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• Explore organizational influences on projects
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• Explain how projects align with broader
D
organizational strategy and global trends
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N
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Project Benefits and Value
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TOPIC C
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up
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Business Value
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• The net quantifiable benefit (tangible
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and/or intangible) identified from a
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business endeavor
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• Part of the objectives or description of
or
the project in the initiating agreements
• Benefits realization is based on declared
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business value
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up
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N
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Copyright 2022©
Examine
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Business
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Value
ib
tr
• Communicate with stakeholders, do the research and use expert
is
knowledge
• Examine, evaluate and confirm to determine exactly what is or can be
D
of value!
or
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Look especially at:
at
lic
• Shareholder value (publicly traded companies) or
up
business growth (private)
• Customer value
D
• Employee knowledge
• Channel or business partner value
ot
N
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D

Types of
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Business
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Value
ib
tr
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Financial New Social
D
Gain Customers Benefit
or
e
at
lic
up
First to Improvement Regularization
D Market Technological, Alignment or
process, etc. compliance with
standards and
ot
regulations
N
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Needs
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Assessment
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• Usually performed by a business analyst
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Obtain Data for
• Precedes the business case
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the Project
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• Involves understanding of:
D
• Business goals and objectives
or
• Issues and opportunities
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• Recommends proposals to address:
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• What should be done
up
• Constraints, assumptions, risks and dependencies
Note: From Business
D • Success measures
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Analysis for
Practitioners: A Practice • Implementation approach
N
Guide
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Copyright 2023
37
Business
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Documents
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ib
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• Are developed prior to project start (usually by a business analyst or
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key project stakeholder)
D
or
• Contain information about the project’s objectives and contribution to
the business goals
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• Help the business to determine whether a project is worth the
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required investment of time, money, and resources
up Review the business documents periodically

D
ot
N
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Business Business case: justifies project and establishes boundaries
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Documents
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• Cost-benefit analysis
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• Business need
Business Case
• Quality specifications
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and Benefits • Schedule or cost constraints
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Management
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Plan Acceptance of the business case usually leads to creation of the
or
project charter.
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Benefits management plan should include:
• Processes for creating, maximizing and sustaining project
lic
benefits
up
• Time frame for short- and long-term benefits realization
D • Benefits owner or accountable person
• Metrics
ot
• Assumptions, constraints and risks

N
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This is a business document, not part of the project

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management plan. Copyright 2023© Project Management Institute, Inc. All rights reserved. 39
Benefit
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Measurement
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Cost-benefit analysis: How businesses justify the selection
(authorization) of a project
Methods
ib
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Business - “smaller is better”
is
• Estimate payback period — Smallest number (duration) chosen
• Assess opportunity cost — What if we didn’t undertake the
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project?
or
Financial - largest number (profit) chosen - “bigger is better”
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• Time value of money
at
• Present value (PV)
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• Future value (FV)
up
• Net present value (NPV)
D • Internal rate of return (IRR)
• Return on investment (ROI)
ot
You will not need to calculate any of these for the exam.
N
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Project
e
PV applies to projects that span several time periods when the value
Selection
ut
of money might change – e.g., inflation
Using Present
ib
Factors to determine PV include:
tr
Value (PV) and • Future value
is
Net Present • Interest rate
D
• Number of periods
Value
or
(NPV) Net present value (NPV):
• Is used for capital budgeting
e
at
• Accounts for inflation and macro-economic change (discount rate)
• Compares the value of a currency unit today to the value of the
lic
same currency unit in the future
up
Year 0 1 2 3 4
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Net Cash Flows -1200 +400 +800 +600 +1200
ot
Factor 1 .91 .83 .75 .68
N
Net Present Value -1200 +364 +664 +450 +816

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How OKRs
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Help Deliver • Start with organizational objectives
ib
Business • Decide key desired results
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Value • Refine further with objectives and key results (OKRs):
is
• Objectives are goals and intents
D
• Key results are time-bound and measurable milestones under
or
these goals and intents
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at
OKR best practices:
lic
• Support each objective with between 3-5 measurable key results
up
• Aim for 70% success rate to encourage competitive goal-making. A
100% success rate should be re-evaluated as not challenging
D
enough
ot
• Write OKRs that are action-oriented and inspirational and include
N
concrete, measurable outcomes

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Incremental
e
Value Delivery
ut
ib
tr
is
D
An incremental development approach can:
or
• Enable value delivery sooner
• Attain higher customer value and increased market share
e
at
• Allow partial delivery (or previews) to customers
lic
• Enable early feedback, allowing for adjustments to the direction,
up
priorities and quality of the product
D
ot
N
o
D

ECO Coverage
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ut
ib
tr
is
3.2 Evaluate and deliver project benefits
and value
D
• Investigate that benefits are identified
or
(3.2.1)
e
• Evaluate delivery options to deliver value
at
(3.2.4)
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2.1 Execute project with the urgency
up
required to deliver business value D
• Assess opportunities to deliver value
ot
incrementally (2.1.1)
N
o
D
44
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ut
ib
tr
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D
or
Organizational Culture and Change
e
Management
at
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TOPIC D
up
D
ot
N
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D
45
Change Management*
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ut
ib
tr
• Organizations embrace change as a
is
strategy.
D
• PMOs build and sustain alignment
between projects and the organization.
or
• Whether your organization has a PMO
or not, you are a “changemaker”!
e
at
• Tailor a strategy to
circumstances, people and timing
lic
• Use a robust approach
up
D
ot
N
o
D

Manage
e
Organizational
ut
Change
ib
tr
Impacts on
is
Projects
D
• Assess organizational culture
• Evaluate impact of organizational change to project and determine
or
required actions
e
• Recommend options for changes to project
at
• Continually monitor external business environment for impacts to
lic
project scope/backlog
up
D
ot
N
o
D

Get to Know
e
Organizational Cultures
ut
and Styles
ib
tr
is
D
• View of leadership, hierarchy and
authority
or
• Shared vision, beliefs and expectations
e
• Diversity, equity and inclusion practices
at
• Risk tolerance
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• Regulations, policies and procedures
up
• Code of conduct
• Operating environments
D
• Motivation and reward systems
ot
N
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Copyright 2022©
Risk, Culture
e
and Change in
ut
Organizations
ib
tr
is
Risk threshold and appetite are shaped by diverse values of:
D
• Country/region
or
• Industry/sector
• Leadership
e
• Project team
at
lic
These must be understood with care to:
up
• Establish effective approaches for initiating and planning projects
D
• Identify the accepted means for getting work done
ot
N
o
D

Change
e
Management
ut
Framework
ib
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“Organizational change requires individual change”
is
D
The ADKAR® model names five milestones an individual must achieve
or
in order to change successfully:
• A – Awareness of the need for change
e
at
• D – Desire to support the change
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• K – Knowledge of how to change
• A – Ability to demonstrate new skills and behaviors
up
• R – Reinforcement to make the change stick
D
ot
N
o
D

Actions to
e
Support
ut
Change
ib
DO DON’T
tr
is
• Coach co-workers to support the • Force changes – Involve and
D
business — patience and consult; aim to secure buy-in to
or
compassionate mentoring are key the reasons for change
e
• Enable an agile operating • Alienate resisters – Change can
at
system - Coach team members in breed conflict, so proceed
lic
agile to facilitate adoption of a carefully
change-centered mindset
up
• Keep knowledge current –
D
Continuously improve processes
ot
and knowledge
N
o
D

Plan for Change
e
ut
ib
tr
Define the knowledge transfer, training and
is
readiness activities required to implement
the change brought by the project
D
or
• Include an attitudinal survey to find out
how people are feeling
e
• Create an informational campaign to
at
familiarize people with changes
lic
• Be open and transparent about potential
up
effects of the changes
• Consider creating a rollout plan D
ot
The rollout plan is not a project
management plan component.
N
o
D

Organizational Transformation
e
for Project Practitioners
ut
ib
tr
• A North Star statement articulates the
is
vision and strategic objectives
Brightline® - a
D
PMI initiative
• Customer insights and global
or
megatrends The Brightline
Transformation
e
• A flat, adaptable cross-functional
at
Compass and five
transformation operating system building blocks of
lic
transformation - an
• Internal volunteer champions (not
up
enterprise-level
external consultants) change management
D framework
• Inside-Out Employee Transformation
ot
(similar to ADKAR)
N
o
D

ECO Coverage
e
ut
ib
tr
is
3.4 Support organizational change
D
• Assess organizational culture (3.4.1)
or
• Evaluate impact of organization change
e
to project, and determine required
at
actions (3.4.2)
lic
• Evaluate impact of the project to the
up
organization and determine required
actions (3.4.3) D
ot
N
o
D
54
e
ut
ib
tr
is
D
or
Project Governance
e
at
TOPIC E
lic
up
D
ot
N
o
D
55
Project Governance
e
ut
ib
tr
The framework, functions, and processes
is
that guide project management activities to
D
create a unique product, service, or result
to meet organizational, strategic, and
or
operational goals.
e
at
Key benefits:
lic
• Offers a single point of accountability
• Encompasses the project life cycle
up
Governance type differs among
D
ot
organizations and projects.
N
o
D

56
Project Too much governance can annoy stakeholders, while relaxed
e
governance can lead to a lack of stakeholder engagement or
Governance
ut
accountability.
ib
What Kind and
tr
How Much?
is
Governance:
D
• Is typically already in place – established by a PMO or aligned with
or
organizational policies
e
• Depends on strategic importance of project, constraints or oversight
at
requirements
lic
up
• Critical for managing internal or external business environment
D change and deviations in budget, scope, schedule, resources or
quality
ot
• Budget management oversight is a key governance area.
N
o
D

Project Governance: Components
e
ut
Processes for:
ib
tr
• Change • Stage gate or phase reviews
is
• Communication • Guidelines for aligning project governance
D
• Documentation — i.e., project and organizational strategy
or
management plan • Project life cycle and development
e
• Decision-making approach
at
• project • Project organization chart with roles
lic
Internal stakeholder alignment with
process requirements • Project success and deliverable acceptance
up
• Review and approval of changes above criteria
D
project manager authority level • Relationship among project team,
ot
• Risk and issue identification, escalation organizational groups and external

N
and resolution stakeholders

o
D

Governance in
e
Adaptive
ut
Projects
ib
tr
Can:
is
• Document outputs and expectations
D
• Provide a clear view of project status from:
or
• Defined iteration/sprint expectations and outputs
• Releases tied to specific dates
e
at
• “Real-time” monitoring of project output through daily standups
lic
up
Iterative approaches enable quicker and less costly identification of
value-based outputs than predictive
D
ot
N
o
D

Governance
e
Board
ut
ib
aka Project Board
tr
or Steering • Provides project oversight
is
Committee • May include project sponsor, senior managers and PMO resources
D
• May be responsible for:
or
• Reviewing key deliverables
• Providing guidance for project decisions
e
at
lic
Does anyone have Projects that use Scrum or SAFe® use intermediary governance
up
experience with a project boards to liaise between the project and organizational
governance board? D governance
Describe how it works
ot
with your project.
N
o
D
Copyright 2023
60
Governance For problems outside a project’s thresholds or tolerance levels:
e
Defines
ut
• Escalate to the responsible stakeholder who is authorized to take
Escalation
ib
action;
tr
Procedures
is
• But if an issue is within the threshold, then work with the team to
find a resolution.
D
or
e
at
lic
AUTHORITY
up
Responsible
Stakeholders
D
TOLERANCE
ot
Project
Team
N
PROBLEM
o
D

Governance
e
and Life
ut
Cycles
ib
tr
A Systems View Governance system works alongside the value delivery system — the
is
project life cycle.
D
or
Why? To enable smooth workflows, manage issues and support
decision making.
e
Remember the project
at
management principle -
lic
Recognize,
evaluate and respond
up
to system interactions
D Value delivery as Value delivery
product of life cycle embedded in life
ot
cycle
N
o
D
Copyright 2023
62
Governance Checkpoints: Phase Gates and Iterations
e
ut
ib
Predictive Adaptive
tr
is
Split work into phases Split work into releases
D
or
Review results at a phase gate – aka,
Review results at end of iterations
governance gate, kill point, or tollgate
e
at
Decide:
lic
• Continue to the next phase Gather feedback and take action to improve
up
• Continue with modifications, or value in next iteration
• End a project or program D
ot
Continue until customer’s acceptance criteria –
e.g. definition of done or MVP – is satisfied or
N
project ends
o
D

Project Phases
e
ut
Relationships
ib
tr
Phases produce one or more deliverables; outputs from one phase are
is
generally inputs to the next phase.
D
They can have sequential or overlapping relationships.
or
e
at
PHASE GATE
lic
PHASE 3
up
PHASE 1 PHASE 2
D
ot
0 6 12 18 24 30 36
N
o
D

Apply
e
Governance
ut
to Predictive
ib
PHASE 3
tr
Project PHASE 1 PHASE 2
is
Phases
D
or
At the • Verify and validate project assumptions
e
beginning of a • Analyze risks
at
phase: • Provide detailed explanation of phase deliverables
lic
up
• Key deliverables produced
At the end:
D • Review to ensure completeness and acceptance
ot
If huge risks are encountered, deliverables are no longer

N
needed or requirements change, a phase or project will be

o
terminated.
D

ECO Coverage
e
ut
ib
tr
is
D
or
2.14 Establish project governance structure
• Determine appropriate governance for a
e
at
project (e.g., replicate organization
governance) (2.14.1)
lic
• Define escalation paths and thresholds
up
(2.14.2) D
ot
N
o
D
66
e
ut
ib
tr
is
D
or
Project Compliance
e
at
TOPIC F
lic
up
D
ot
N
o
D
67
Compliance
e
ut
ib
tr
• Internal and external standards include:
is
• Government regulations
D
• Corporate policies
or
• Product and project quality
e
• Project risk
at
• PMO monitors compliance at organizational level
lic
• Project team is also responsible for project activity-related compliance,
up
including:
• Quality of processes and deliverables/products
D
• Procurement and work by vendors
ot
N
o
D

Compliance Requirements
e
ut
ib
tr
is
Legal or regulatory constraints include:
D
• Requirements for specific practices
or
• Standards
• Privacy laws
e
at
• Handling of sensitive information
lic
up
Quality: Tailor to your project — How much
process rigor and quality control is D
relevant?
ot
N
o
D
Copyright 2022©
Compliance
e
Categories
ut
Classification
ib
tr
• Environmental risks
is
• Workplace health and safety
D
• Ethical/non-corrupt practices
or
• Social responsibility
• Quality
e
at
• Process risks
lic
up
Categories vary based on:
• Industry and solution scope
D
• Unique legal and regulatory exposure
ot
N
o
D

Compliance
e
Threats
ut
ib
How to
tr
Investigate
is
D
• Where/who in the organization handles compliance?
or
• What legal or regulatory requirements impact the organization? e.g.
workplace safety, data protection, requirements for professional
e
memberships
at
• What is the organization’s quality policy?
lic
• Are the team and stakeholders aware of compliance matters?
up
D
ot
N
o
D

Treat
e
Compliance as • Proactively track and manage risks for compliance requirements
ut
a Project
ib
• Be prepared to perform quality audits
tr
Objective • Continuously validate legal and regulatory compliance for
is
deliverables
D
• Check compliance before the end of the project to avoid transferring
or
issues
• In a risk or dedicated compliance register, include:
e
at
o The identified risk
lic
o A responsible risk owner
up
o Impact of a realized risk
o Risk responses
D
ot
Larger organizations or those in highly regulated industries

N
typically have a compliance department or officer.

o
D

Compliance
e
ut
Five Best
ib
Practices
tr
is
D
• Documentation: Updated compliance needs and risks
or
• Risk planning: Prioritize compliance in risk planning
• Compliance council: Includes quality/audit specialists and relevant
e
legal/technical specialists
at
• Compliance audit: Formal process
lic
• Compliance stewardship: It’s your responsibility!
up
D
ot
N
o
D

Interactive/Activity
e
ut
ib
tr
is
D
or
Let’s talk about compliance.
e
• Does your organization have a quality
at
policy?
lic
• Do you know where to find the quality
up
policy or standards for your projects?
• What kinds of compliance activities are
D
you involved with?
ot
N
o
D

74
ECO Coverage
e
ut
ib
tr
is
D
or
3.1 Plan and manage project compliance
• Confirm project compliance requirements
e
at
(e.g., security, health and safety,
regulatory compliance (3.1.1)
lic
• Classify compliance categories (3.1.2)
up
• Analyze the consequences of non- D
compliance (3.1.5)
ot
N
o
D
75
e
ut
ib
tr
is
D
or
e
End of Lesson 1
at
lic
up
D
ot
N
o
D
76

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e

Copyright 2023© Project Management Institute, Inc. All rights reserved.

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- PMBOK® Guide - Seventh edition

Any combination of the above

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l. Enable change to achieve the envisioned future state

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6. The most efficient and effective method of conveying information to

and within a development team is face-to-face conversation.

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effective, then tunes and adjusts its behavior accordingly.

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• Select and implement appropriate practices based on context

• Internalize agile values, mindset and behavior

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Note: From PMI’s Standard for Portfolio Management

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• Risk alignment with organizational strategy

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• Social and cultural influences

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Which are EEFs? Which are OPAs?

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up Review the business documents periodically

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• Assumptions, constraints and risks

This is a business document, not part of the project

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Net Present Value -1200 +364 +664 +450 +816

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concrete, measurable outcomes

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• Risk and issue identification, escalation organizational groups and external

and resolution stakeholders