What is New in the PMBOK Guide 6th Edition?

maxresdefault

– PMP., Founder of PM Study Circle

With permission, retrieved from – pmstudycircle.com

On September 6, 2017 the 6th edition of the PMBOK Guide was published by the PMI. The PMI publishes a new version of the PMBOK Guide every four years. The last time was in December 2012, when the PMI published the 5th edition of the PMBOK Guide.

Though the PMI has made many changes to the PMBOK Guide, first I would like to discuss the two most important changes that you are going to see in the current version of the Guide.

These changes are as follows:

  1. Addition of the Agile framework
  2. Counterfeit Measures

Addition of the Agile Framework

In the past there were some additions, subtractions and expansions of knowledge areas; however, this time it is different. This time the PMI has added a different framework to it: the Agile framework.

Agile methodology is quietly gaining popularity and so the PMI has started the PMI-ACP certification to cater to the needs of this niche. As the PMI did not have any Agile guide in their library, they developed a practice guide for it and named it the Agile Practice Guide. This guide consists of 168 pages and explains the Agile concepts in general.

This was expected as the PMI has acknowledged in the past that there has been a gradual increment in the adoption of Agile methodologies in project management.

The PMI has developed this guide with the Agile Alliance.

The purpose of this guide is to give project management teams a better understanding of agile tools, techniques, and approaches to deliver a better result.

Now you might be wondering how will this impact the PMP exam.

The situation is not yet clear. The PMP Exam Content Guidelines have not been updated yet. The situation will be clearer when they update it.

Until then, sit tight.

The digital version of the PMBOK Guide includes the Agile Practice Guide. If you buy the hard copy, you will only get the PMBOK Guide; if you need to read the Agile Practice Guide, you will have to buy it separately.

If you are a PMI member you can buy both guides for 49 USD after a 50% discount from the PMI store.

Counterfeit Measures

This time PMI used different types of counterfeit measures for the digital and printed version of the PMBOK and Agile Practice Guide.

Counterfeit Measures for the Digital Version

In the digital edition of the PMBOK Guide, PMI inserted a watermark “Not for Distribution, Sale or Reproduction” on each page.

They have done this to avoid duplication and unauthorized distribution.

I find it annoying.

You cannot open the file without your password, and once you open it your name and PMI ID is printed on every page. These measures were enough to discourage unauthorized distribution.

Adding a watermark on each page is irritating.

You are also not allowed to make printouts of the PMBOK Guide. This is again a nuisance as many people prefer reading a hardcover book than reading something on a computer screen. This is a big blow to them.

I strongly believe that the 7th digital version will be online and you will not be able to download it, and the 8th edition will have an OTP feature. Every time you need to access the guide, PMI will send you a code on your mobile to verify your identify.

Anyway, if you prefer reading a hardcover book, buy it from the PMI store or Amazon, because you cannot print the digital edition.

Counterfeit Measures for the Printed Version

I purchased the print version of the PMBOK Guide from the PMI store.

The price was 49 USD after a 50% discount and the Agile guide was free with purchase for PMI members. After receiving the package, as I opened the cover, on the first page I found following notice:

“This book was printed utilizing a potential anti-counterfeit print technology designed to prevent unauthorized reproductions. The paper color is grey instead of white. When the pages of book are copied or scanned a hidden warning message will appear in the background. This security feature is intended to discourage anyone from attempting to illegally reproduce or counterfeit the book.”

I hope you get the idea.

The pages of the book are grey, it looks cheap and reading it was not a good experience.

Anyway, let’s discuss the structure and the changes in the PMBOK Guide 6th edition.

Structure of the PMBOK Guide

The 6th edition of the PMBOK Guide is divided into three sections:

  1.  A Guide to the Project Management Body of Knowledge
  2.  The Standard for Project Management
  3.  Appendix, Glossary, and Index

And lastly, you will find the Agile Practice Guide.

Four new sections have been added to the beginning of each knowledge area. These sections are as follows:

  1. Key Concepts
  2. Trends and Emerging Practices
  3. Tailoring Considerations
  4. Considerations for Agile/Adaptive Environments

The first section explains key concepts for the knowledge area, and the second section explains trends and emerging practices.

The third section explains tailoring conditions you should consider while developing processes for your project; e.g. how much emphasis you should give to each process according to the scope of the project.

The last section helps you consider if agile methodologies can help you achieve your objective.

In this edition the PMI divides the processes into three categories:

  1. Process used once or at predetermined points in the project
  2. Periodically used or as needed processes
  3. Process that are used throughout the project

Moreover, this is the first time, the PMBOK is discussing the benefit management plan.  The benefit management plan begins at an early stage of the project and it describes how and when the project will deliver the benefits and a mechanism to measure those benefits.

This time Net Present Value, IRR, benefit cost ratio, payback period, etc., were placed in the PMBOK Guide.

In this edition the PMI introduces a new section devoted to the environment in which projects operate. Here the PMBOK discusses the enterprise environmental and organizational process assets in detail. New content on governance has also been added.

A new chapter on the role of the project manager has also been added, where PMBOK describes the project manager’s role in the team. This section explains how the Talent Trianglehelps an organization to achieve its objectives efficiently.

In this chapter, the PMBOK explains the sphere of influence of the project manager, the competencies of the project manager, and their performance as an integrator.

The role of the project manager is now aligned with the PMI Talent Triangle concept, which was introduced in 2016.

Now let’s discuss the changes in the PMBOK Guide knowledge areas and processes. Before we move on, please note that this time no new knowledge areas were removed or added.

Changes in Processes

The PMI has made the following changes to processes:

Deleted: Close procurement process.

Added: Manage project knowledge, control resource and implement resource response.

Renamed: Perform quality assurance to manage quality, estimate activity resources is relocated in project resource management knowledge area.

The PMI has also changed the name of two knowledge areas: Project time management to project schedule management and project human resource management to project resource management.

To get a glimpse of all processes and knowledge areas, please refer to the “Project Management Process Group and Knowledge Area Mapping” chart available on page 25.

Changes in Knowledge Areas

Now let’s see what changes have been made to each knowledge area.

Integration Management

A new process “Manage Project Knowledge” was added.

In this process, PMBOK emphasizes using existing knowledge and creating new knowledge to achieve project objectives and contribute to organizational learning.

Schedule Management

It used to be known as the time management knowledge area. Now the PMI realizes that only schedules can be managed, time cannot.

They moved the “Estimate Activity Resources” process to the project resource management knowledge area.

Quality Management

Here the “Perform Quality Assurance” process is renamed “Manage Quality”. This is done to bring consistency to the terminology; moreover, this term is more prominent in quality management.

Resource Management

The “Human Resource Management” process is renamed to “Resource Management”.

This is done because in projects, the project manager has to manage all resources: manpower, machines, and materials. So resource management is more suitable than human resource management.

A new process “Control Resources” has been added here, and as mentioned earlier, estimate activity resources was also moved here from the schedule management knowledge area.

Risk Management

A new process called “Implement Risk Responses” was added here. The control risks process is renamed monitor risks.

A new risk response strategy “Escalate” was added to positive risk response and negative risk response strategies.

Procurement Management

The close procurement process has been deleted.

In summary, the changes to the PMBOK Guide 6th edition are as follows:

  • The total number of process is now 49. The 5th edition has 47 processes.
  • The following table shows old and new names of knowledge areas.

old and new knoledge area

  • The following table shows the newly added and/or deleted processes:

added or deleted processes

  • The name of following processes have been changed:

Before I end this blog post, I will provide answers to a few FAQs.

Review entire article here: https://pmstudycircle.com/2017/11/new-in-the-pmbok-guide-6th-edition/

Assessing Your Risk Management Procedures Effectiveness

Risk-Management-Issues

– Alphius White, Bellevue University MPM Student

The key here is to effectively manage the risks so that those risks that pose a threat to project success are mitigated but also so that those risks that might present new opportunities, such as a better deliverable, quicker or at lower cost, are identified and acted upon.

It’s important to remember too that projects are always liable to change as they progress so the risk management process should be responsive to change and the risks should be re-assessed from time to time if the project is long or complex. Risk management is not a separate discipline but an integral part of project management so should be part of the regular activities of a project manager. One of the most important elements of risk management is complete honesty.  Without an honest approach to the risks involved there will always be unvoiced issues and these can be the biggest risks of all.

So how can you be sure that, once you have (honestly) identified your risks, that your risk management procedures are effective and add value to the project?

 1. Document the risks

Create a risk log listing each risk with a description, stating who is responsible, the likely impact and the mitigating actions that could be taken. It needs enough information to be useful in monitoring and reporting on risks but not so much that it cannot be easily updated. A straightforward, up-to-date risk log will be useful during the whole life of the project.

 2. Prioritize the risks

In order to prioritize effectively you need to understand what factors could make the risk more likely to occur and what impact that would have on cost, timescale and scope/quality of the final deliverable. So prioritize the risks using a combination of a probability rating and an impact rating. Some risks may be very likely to occur but have low impact; others may be less likely to occur but have a major impact so the overall priority needs to take this into account.

 3. Plan the response

For each identified risk decide, firstly, what could be done to minimize the chance of it occurring and, secondly, what action could be taken if the risk does occur. You will then be better prepared to deal with it if you have to (any risks that could not be anticipated are, of course, another matter).

The usual options to mitigate risks that are threats (rather than opportunities) are:

  • Accept
  • Avoid
  • Transfer
  • Reduce

And one other point: risk management can and does help ensure more successful projects and it should be an integral part of the project management process but it should not be so large a task that the effort expended is out of all proportion to the size of the project or the potential impact of the risks. Finally make sure the responses are implemented, without following through on the risk reduction measures then the risk management process will add little value overall.

Reference

Institute of Risk Management. (2017). Risk Performance and Reporting. Retrieved from Professional Standards: https://www.theirm.org/about/professional-standards/strategy-and-performance/risk-performance-and-reporting

Project Management Institute. (2013). A Guide to the Project Management Body of Knowledge (PMBOK Guide) 5th Edition. [Kindle Cloud E-Book Version]. Retrieved from Amazon.com.

Holding All Stakeholders Accountable for Minimizing & Monitoring Project Threats

ef724-social_capital

– By Stephen Lyman, Bellevue University MPM Student

Although a risk officer may contact team members about risk-related tasks that have been ignored or gone overdue, a project manager is ultimately responsible for keeping team members focused on the right activity. For their relationship to work effectively, risk officers and project managers must coordinate the efforts of fellow team members.

Too much time spent on managing risks can cause projects to fall behind schedule. Likewise, an aggressive task schedule that ignores risk completely can result in catastrophe. Therefore, measuring a project’s progress against the resistance posed by risks helps remind leaders to keep activity in balance.

In some cases, a risk can be entirely eliminated or contained during the implementation and monitoring phases of the project cycle. Noting such a change in status can help project managers and risk officers reallocate resources to other risks or to main project tasks.

Some teams like to keep a live risk matrix, using a shared spreadsheet, database, or online tracking tool. Other teams prefer to task the risk officer with coordinating all communication related to risk management, and reporting in meetings or via memos on a regular basis. The severity of the risk and the importance of the project can help determine the right method for tracking risk (Jr., 2015).

If a risk event occurs during project execution, there is a likelihood it was identified sometime earlier, it was analyzed and an appropriate response action was planned to deal with it (captured in the Risk Register). For the most part, Risk Monitoring and Control is the process of putting into action all of the risk planning done earlier in the project life-cycle.

It is important to understand that risk monitoring is intended to be a daily, on-going process across the entire project lifecycle. Project team members and stakeholders should be encouraged to be vigilant in looking for risk symptoms, as well as for new project risks. Newly identified risks and symptoms of previously identified risks should be communicated immediately for evaluation and/or action (Balakian, 2010).

Monitoring the risk metrics and triggering events to ensure the planned risk actions are working are of the utmost importance in this step.

Goals

The goal from this step is threefold:

1.  To monitor the status of your risk action plans, in other words, the progress towards the completion of contingency and mitigation plans

2.  To monitor any project metrics associated with a risk that might trigger a contingency plan

3.  And finally, to provide notification to the project team that a trigger, or triggers, have been exceeded so that a contingency plan can be initiated if needed

Inputs

There are two main inputs that are going to help you achieve the three goals I’ve just mentioned.

1.  Firstly, your risk action forms which contain the specific mitigation and contingency plans you created and which also specify the project metrics and trigger values to be monitored

2.  And secondly, the relevant project status reports that are used to track progress within the standard project management structure

You may need to call on other sources of information depending on the specific project metrics being tracked. For example, you might need to use a project tracking database, or maybe even a human resources management system to provide the tracking data that you and your project team need.

Tracking Activities

In this tracking step of the risk management process, you and your team will execute the action plans in the mitigation plan as part of your overall team activity. Any progress made towards these risk-related action items, or in relation to any trigger values being used, will contribute towards the risk status that will be reported on.

Risk Status Reporting

The reporting element in this step operates at two levels. For your team, regular risk status reports will be very important and should consider four possible risk management situations for each risk:

1.  First, when a risk is resolved, ensure the risk action plan is completed

2.  Secondly, ensure these risk actions are consistent with your overall risk management plan

3.  Third, understand that some risk actions are at variance to the risk management plan, in which case, corrective measures should be defined and implemented

4.  And the final situation is if one or more risks have changed significantly. This usually ends in re-analyzing the risks or re-planning an activity.

For external reporting to stakeholders, you and your project team should report the top risks and then summarize the status of risk management actions. It’s also useful at this stage to show the previous ranking of risks and the number of times each risk has been in the top risk list.

Outputs

Your output from this step should be a detailed status report that clearly communicates any changes in the status of a risk.

Here is some information you might want to include in this report:

1.  Risk name

2.  Risk classification

3.  Risk probability, impact, and exposure from the identification step

4.  Current risk probability, impact and exposure

5.  Risk level, such as low, medium and high

6.  A summary of your mitigation and contingency plans

7.  Status toward completion of mitigation plans

8.  Readiness of contingency plans

9.  Trigger values

10.  Planned actions

11.  Risk owner

And don’t forget to include this report within the project status report that you create and circulate to others involved and interested in the project (O’Donnellan, 2016).

References:

Balakian, W. (2010, September 21). Applying the Risk Monitoring and Control Process . Retrieved from project-management.truesolutions.com: http://project-management.truesolutions.com/2010/09/21/applying-the-risk-monitoring-and-control-process/

Jr., J. T. (2015, May 18). Risk Management: Keeping Track of Risk and Utilizing a Risk Manager. Retrieved from http://www.brighthubpm.com: http://www.brighthubpm.com/risk-management/14026-tracking-risk-in-project-management/

O’Donnellan, R. (2016, April 13). Should You Track & Report on Risks? Retrieved from http://www.brightwork.com: https://www.brightwork.com/blog/should-you-track-report-on-risks#.WfJrseR1q70