Project Management by ICB4 - IPMA E-Book

Bert Hedeman

• Herausgeber: Van Haren Publishing
• Kategorie: Bildung
• Sprache: Englisch
• Veröffentlichungsjahr: 2023

Seitenzahl: 967

Beschreibung

IPMA observes an increasing number and importance of projects in business, public and people’s lives, also known as ‘projectification’. In the world of globalisation, an increasing number of organisations are working project-based to cope with the challenges of modern times. Especially now, society is on the brink of such significant changes as global warming and artificial intelligence. Projects drive the development of new products and services, expansions, new capabilities, implementation of new strategies and new generations of infrastructure, and major maintenance and upgrade of existing facilities and infrastructure. This book provides a knowledge base for developing individual competencies for managing projects as described in the IPMA Individual Competence Baseline version 4, which encompasses: - Perspective competencies - People competencies - Practice competencies As projects become increasingly important, we must continue to realise that projects begin and end with people and that their competent performance within the broader context of the environment is at the heart of any successful project. In this book, theories and practices for all ICB4 competencies are described. They are logically sequenced, explained and enriched with practical approaches, which can be learned and applied in the daily project management practice. As such, it aligns entirely with IPMA's vision: to strengthen competence across society to enable a world in which all projects succeed. This book also supports obtaining an IPMA certificate as proof of your competence in projects.

Leseprobe

Project Management by ICB4

Project Management by ICB4

First edition, first impression

COLOPHON

Title:

Project Management by ICB4

Authors:

Bert Hedeman (The Netherlands)Roel Riepma (The Netherlands)

Reviewers:

Peter Pürckhauer (Germany)Rebeka Vlahov (Croatia)Kristijan Robert Prebanić (Croatia)

Print:

First edition, first impression, September 2023

Ownership:

IPMA, Zurich - Switzerland

Publisher:

Van Haren Publishing, ‘s-Hertogenbosch - NL

ISBN hardcopy:

978 94 018 1092 0

ISBN e-book pdf:

978 94 018 1093 7

ISBN e-book ePub:

978 94 018 1094 4

Website:

www.shop.IPMA.world, www.vanharen.net

Final editor:

Bert Hedeman (The Netherlands)

Text editor:

Michelle Schuurman-Voorma (The Netherlands)

Editor in chief:

Reinhard Wagner (Germany)

Lay-out and DTP:

S&B IT Services, Amersfoort - NL

Copyright:

© IPMA / Van Haren Publishing, 2023

IPMA ICB®, IPMA OCB®, IPMA Delta® and IPMA Project Excellence Baseline® are registered trademarks of the International Project Management Association (IPMA®).

Belbin® is a trademark of Belbin associates.

COCD-box® is a trademark of School of Creative Thinking.

CoreQuadrants® is a trademark of Core Quality International/Daniel Ofman.

EFQM Excellence Model® is a trademark of the European Foundation for Quality Management.

Planning Poker® is a registered trademark of Mountain Goat Software.

LLC. Situational leadership® is a trademark of The Center for Leadership Studies.

The 7 Habits of Highly Effective People® is a trademark of Franklin Covey Co.

No part of this publication may be reproduced in any form by print, photo print, microfilm or any other means without written permission from the Publisher.

Although this publication has been composed with the utmost care, neither the Authors, Editor, nor Publisher can accept any liability for damage caused by possible errors and or incompleteness in this publication.

PREFACE

This book is intended for project professionals, students, and graduates of project management, and is arranged to reflect tools and methods behind the competences (People, Practice and Perspective) prescribed by the standard IPMA Individual Competence Baseline 4.0 (ICB4). It should be embraced as a guide for practicing project management on different levels of career development and project complexity. It is also intended as a book of knowledge for supporting the IPMA ICB4 when preparing for certification of competence in project management. For project managers, these are: IPMA Level A: Certified Projects Director, IPMA Level B: Certified Senior Project Manager, IPMA Level C: Certified Project Manager and IPMA Level D: Certified Project Management Associate. (more at www.ipma.world)

The book begins by emphasising the importance of the role of project manager, project management, and project setting and promotes project culture in everyday work. Thus it introduces the theoretical and practical components that constitute the field of project management.

Being both academic and practitioner in project management, I often witness project managers becoming so consumed in delivery and technical details that they forget the need to generate value for both clients and the people involved. The authors, Bert Hedeman and Roel Riepma so eloquently remind us of this need that beside technical aspects managers need to focus on their leadership and people skills and deliver value within a contemporary context. This is even more relevant considering the rapidly changing environment we are facing. With fewer resources, uncertain supply chains, less water, more carbon, labour shortage and a rapidly changing climate – project management can only get tougher, and more important.

Formal education and academia can grasp the opportunities to stimulate and inform future generations of project professionals... However, it is the current generation, who frequently have had little formal or systematic training in project management and who will immediately face the challenges and seize the opportunities. Therefore, this book is important for so called self-educated project professionals and ad hoc managers for improving their skills in everyday work.

Whether you are a serious project professional or a student in project management, you will find ‘Project Management by ICB4’ thought-provoking and will keep you willing to test the tools in real life. Reading this book will be enjoyable for anyone interested in the broad field of managing work through projects and is a required reading for those interested in contributing to project management discipline and continuously developing competences in project management.

This book is the product of two partnerships, IPMA and Van Haren Publishing. Many people have helped us to develop the ideas put forward in the book. Of course, the main authors: Bert Hedeman and Roel Riepma, but also the wide team of reviewers: Peter Pürckhauer, Rebeka Danijela Vlahov Golomejić and Kristijan Robert Prebenić and IPMA Publications Review and Editing team led by Reinhard Wagner have made this book a success.

Prof. Dr. Mladen Vukomanović,

Vice President Professional Development

IPMA

International Project Management Association (IPMA) is the oldest non-profit professional organisation dedicated to promoting excellence and professionalism in project, program, and portfolio management. It was founded in 1965. in Switzerland and nowadays operates in more than 70 countries worldwide through its Member Associations, thus providing a global platform for connecting practitioners and organisations, enabling collaboration and cooperation, sharing ideas and benchmarking, as well as advancing practices and competences in the field. Join the IPMA community at: www.ipma.world.

TABLE OF CONTENTS

General Introduction

Purpose

Audiences and uses

Certification scheme

1. Structure of the Book

Order of subjects

Vision and roadmap

Structure of the chapters

2. Competence Development

Purpose of competence development

Practice Competences

3. Project Orientation

What is a project?

What is project management?

Reasons to initiate a project

Position projects

Necessary conditions for a project to exist

Work forms

Staging, controlling, decision making

Projects within the product lifecycle

Projects at different levels

Project output, outcome, benefits and goals

People and perspective context of projects

Agile versus Waterfall

Sustainability

Tailoring

Responsibilities

Advanced

Project Excellence Baseline (advanced)

4. Project Preparation

4.01   Project Preparation Stage

Project preparation stage

Project mandate and project outline

Plan for the project definition stage

Project decision

Sustainability

Tailoring

Responsibilities

4.02   Stakeholders

Stakeholder analysis

Engage stakeholders

Managing expectations

Stakeholder management strategy and Plan

Sustainability

Tailoring

Responsibilities

4.03   Project Organisation

Project governance

Customer-supplier relationship

Separation of technique and management

Project management structure

Project organisation

Roles and responsibilities

Meeting structure and linking-pin principle

Responsibilities matrix (RASCI model)

Sustainability

Tailoring

Responsibilities

4.04   Requirements and Objectives

Project, output, outcome, benefits, and goal

Quality expectations and acceptance criteria

Requirements and requirement specification

Sustainability

Tailoring

Responsibilities

Advanced

Value management (advanced)

Total cost of ownership (advanced)

Product cost management (advanced)

4.05   Risk and Opportunity

Risks and opportunities

Risk management

Risk management strategy and response plan

Risk definitions

Probability, impact and proximity

Risk owner and risk action-holder

Different types of risks

Risk categories

Risk responses

Inherent, residual and secondary risk

Risk techniques

Time and cost contingency reserves

Sustainability

Tailoring

Responsibilities

Advanced

Opportunity responses (advanced)

ISO 31000 Risk management (advanced)

Risk identification techniques (advanced)

Risk assessment techniques (advanced)

5. Project Definition

5.01   Project Definition Stage

Activities project definition stage

Project management plan

Project start-up workshop

Kick-off

Project decision/decision to fund

Sustainability

Tailoring

Responsibilities

Advanced

Setting up a project support (advanced)

5.02   Project Design

Project (management) approach and design

Project success

Project success criteria

Project success factors

Project management success

Project performance management

lessons learned

Sustainability

Tailoring

Responsibilities

Advanced

Diamond model (advanced)

5.03   Scope

Scope

Scope creep

Project breakdown structures

Work Breakdown Structure (WBS)

Product Breakdown Structure (PBS)

Scope (configuration) management

Sustainability

Tailoring

Responsibilities

Advanced

Position sub-projects in a WBS (advanced)

5.04   Quality

Process and product quality

Standard operating procedures

Verification and validation

Quality management

Quality management strategy and plan

Deming cycle

Standards, norms and regulations

Quality review, audit and evaluation

Quality register/test register

Quality tools

Sustainability

Tailoring

Responsibilities

Advanced

Additional quality tools (advanced)

Inspection methods and techniques (advanced)

Testing and test concepts (advanced)

Quality costs (advanced)

5.05   Time

Planning types

Baselines

Project stages and phases

Phasing models

Scheduling methods

Precedence chart

Gantt chart

Shorten the time schedule

Sustainability

Tailoring

Responsibilities

Advanced

Other scheduling restrictions (advanced)

Three-point estimates (advanced)

5.06   Resources

Resource management

Resource utilisation

Resource allocation

Estimating techniques

Sustainability

Tailoring

Responsibilities

Advanced

Critical Chain Method (advanced)

5.07   Finance

Estimating, budgeting and cost control

Cost breakdown structure

Reserves and margins

Cost and budget control

Project and business accounting

Power of attorney

Sustainability

Tailoring

Responsibilities

Advanced

Linking WBS and CBS with the OBS (advanced)

Financial control & cash flow planning (advanced)

Project financing (advanced)

5.08   Business Justification

Characteristics business case

Business case document

Baseline measurement, baseline scenario and delta measurement

The business case in the product lifecycle

Customer and supplier business cases

Sustainability

Tailoring

Responsibilities

6. Project Delivery and Close-out

6.01   Procurement

Make or buy

Procurement process

Selection and award criteria

Best-effort and performance agreements

Contractual terms and conditions

General terms and conditions

Sustainability

Tailoring

Responsibilities

Advanced

Sourcing strategies (advanced)

Supplier development methodologies (advanced)

Procurement strategy and plan (advanced)

Type of contracts (advanced)

RFI, RFS, RFP, RFQ (advanced)

Supply and demand concept (advanced)

Tender procedures and practices (advanced)

Letter of intent and pre-contractual arrangements (advanced)

Securities (advanced)

Contract management (advanced)

Claim management (advanced)

Various partnerships (advanced)

Supply chain management (advanced)

6.02   Change Control

Change control and change management

Three types of issues and other issues

Change control strategy and change register

Off-specifications and off-specification register

Other issues and issue register

Change authority and change budget

Priority and urgency

Sustainability

Tailoring

Responsibilities

Advanced

Configuration management (advanced)

6.03   Information and Documentation

Information versus data

Information versus document management

Information management infrastructure

Information management strategy

Information management plan

Quality and security criteria

Project filing structure

Document tracking matrix

Sustainability

Tailoring

Responsibilities

6.04   Control and Reporting

Control cycle

Management and reporting levels

Management by objectives

Management by Exception

Daily management

Managing stage transition

Escalating exceptions

Project controls

Project management products

Trend analysis

Milestone trend analysis

Sustainability

Tailoring

Responsibilities

Advanced

Earned Value Analysis (advanced)

6.05   Organisational Change and Transformation

Change management

Change management approach

Leading change – Kotter

Sustainability

Tailoring

Responsibilities

Advanced

Kübler-Ross’ Change Curve (advanced)

Diffusion of Innovation – Rogers (advanced)

Learning organisations – Senge (advanced)

Transformational learning – Schein (advanced)

6.06   Project Closure

Handing over the project output

Decommission the project

Project evaluation

Closure and discharge

Sustainability

Tailoring

Responsibilities

People Competences

7 Managing Yourself

7.01   Self-reflection and Self-management

Self-reflection and self-analysis

Emotional intelligence

Johari diagram

Big Five

Core quadrants

Effectiveness theories

Self-motivation

The seven habits of highly effective people

Personal time management

Stress management

Eustress and distress

Triggers and symptoms of distress

Reducing distress

Advanced

Techniques personal time management (advanced)

Rational Emotive Behaviour Therapy (advanced)

Steps in goal setting (advanced)

techniques for reducing distress (advanced)

7.02   Personal Integrity and Reliability

Aspects of reliability

Ethics

Social equity and sustainability principles

Professional ethics and IPMA Code of Ethics

Advanced

Ethics test (advanced)

Personal ethics versus business ethics (advanced)

UN Universal Declaration of Human Rights (advanced)

7.03   Personal Communication

Communication

Levels of communication

Active listening

Asking the right questions

Giving and receiving feedback

Meetings

Facilitated workshops

Written communicating

Presentations

Advanced

Elevator pitch (advanced)

Bad news conversation (advanced)

8 Connecting with Others

8.01   Relationships and Engagement

Aspects, characteristics and policies on openness

Building arguments

Building networks

Motivation theories

Maslow hierarchy of needs

Motivation and hygiene factors

Theory X and Y manager

Advanced

Self-Determination Theory (advanced)

Behavioural patterns/Rose of Leary (advanced)

Spiral Dynamics (advanced)

The role of the project manager as a consultant (advanced)

Creating an open business culture (advanced)

8.02   Leadership

Differences between leadership and management

Styles of Leadership

Contingency theory

Situational leadership

Circle of influence and circle of concern

Assertiveness

Advanced

Role content, interpretation and expectation (advanced)

Coaching (advanced)

Servant leadership (advanced)

Sense-making and sense-giving (advanced)

three levels of leadership (advanced)

Vroom and Yetton decision model (advanced)

8.03   Teamwork

Team development phases

Situational leadership and team development phases

Team interventions at phase transitions

Teambuilding

Dealing with resistance

Advanced

Team composition (advanced)

Developing an Effective project culture (advanced)

Team roles (advanced)

Group thinking (advanced)

Dealing with resistance (advanced)

Managing virtual teams (advanced)

8.04   Resourcefulness

Thinking methods

Analytic problem-solving

Creative problem-solving

Methods of decision-making

Cause identification and analysis techniques

Solution identification techniques

Divergent creativity techniques

Solution assessment techniques

Solution evaluation techniques

Advanced

problem-solving in standardised processes (advanced)

Additional Divergent creativity techniques (advanced)

Convergent creativity techniques (advanced)

Decision-making procedure (advanced)

Innovation processes and techniques (advanced)

organisational innovation (advanced)

8.05   Result Orientation

Efficiency, effectiveness and productivity

Continuous improvement (Kaizen)

Advanced

Entrepreneurship (advanced)

Efficiency improvement techniques (advanced)

Results-orientated project management (advanced)

Political and social sensitivity (advanced)

8.06   Negotiation

Negotiation strategies

Positional negotiation

Best Alternative to a Negotiated Agreement

Principled negotiations

Advanced

Phases in a negotiation process (advanced)

Influential Aspects of negotiation (advanced)

Negotiation tactics (advanced)

8.07   Conflicts and Crises

Functional and dysfunctional conflicts

Types of conflict

Conflict management styles

Phases in a conflict

De-escalation in the different conflict phases

Advanced

various roles in conflicts (advanced)

Crisis and desired style of leadership (advanced)

Crisis plan (advanced)

Perspective Competences

9. Implementing Changes

9.01   Strategy

Align with organisational mission, vision and strategic objectives

Organisational mission, vision, and core values

Strategy and strategic objectives

Benchmarking

SWOT analysis

Responsibilities

Advanced

Ten Schools of Thought (advanced)

Business Model Canvas (advanced)

7S-model van McKinsey (advanced)

Strategic performance management (advanced)

EFQM model (advanced)

Investment calculations (advanced)

Net present value analysis (advanced)

Payback period (advanced)

Break-even point (advanced)

9.02   Programme Management

Programme and programme management

Differences between projects and programmes

Responsibilities

Advanced

Programme organisation (advanced)

Multi-organisation programmes (advanced)

Benefits management (advanced)

Programme lifecycle (advanced)

Core documents (advanced)

9.03   Portfolio Management

Portfolio management

Management by projects

Programme, portfolio management and management by projects

Responsibilities

Advanced

Prioritise projects and programmes (advanced)

Portfolio organisation (advanced)

Portfolio lifecycle (advanced)

9.04   Supporting Functions and implementing PPP management

Purpose and characteristics of a permanent PMO

Added value of a permanent PMO

Responsibilities

Advanced

Implementing a PPP organisation (advanced)

ISO 21502: 2020, Guidance on Project Management (advanced)

IPMA Organisational Competence Baseline (advanced)

Identifying the maturity level (advanced)

9.05   Development Frameworks

Agile

Scrum

Responsibilities

Advanced

Lean Six Sigma (advanced)

Kanban (advanced)

10. Internal Context

10.01   Organisation Theories

Permanent organisation

Interfaces between project and permanent organisation

Organisational models

Responsibilities

Advanced

Systems approach (advanced)

Organisational configurations framework (advanced)

Total Quality Management (advanced)

Theory of Constraint (advanced)

10.02   Personnel Management

Personnel policy and personnel management

Personnel management in projects

Responsibilities

Advanced

Knowledge management (advanced)

Competence management (advanced)

Single-, double-, and triple-loop learning (advanced)

10.03   Financial Administration

Cost classification

Responsibilities

Advanced

Principles of financial accounting (advanced)

Accounting (advanced)

Annual accounts (advanced)

Calculation of net cash flow (advanced)

Valuation of projects (advanced)

Allocation of indirect costs (advanced)

11. External Context

11.01   Health, Safety, Security and Environment

Health and safety legislation

Security

General Data Protection Regulation

Environmental legislation

Responsibilities

11.02   Sustainability

Sustainable development

People, Planet, Profit (3Ps model)

Sustainable development in projects

Corporate Social Responsibilities

The Triple Bottom Line (TBL)

Responsibilities

Advanced

The 10 Principles of the UN Global Compact (advanced)

ISO 26000 Corporate social responsibility (advanced)

11.03   Laws and Legislation

Agreements

Shortcomings in the fulfilment of an agreement

Unlawful act/tort

Regulatory agencies

Responsibility of the project manager in law enforcement

Responsibilities

Advanced

Areas of law (advanced)

Intellectual property law (advanced)

11.04   Power and Interests

Projects related to power and interests

Power and authority

Principles of persuasion

PESTLE analysis

Responsibilities

Advanced

Sources of interest (advanced)

11.05   Culture and Values

Projects related to culture and values

Dimensions of national cultures

Organisational culture model

Responsibilities

Advanced

Organisational culture and decision-making (advanced)

ANNEX

A   Glossary

B   Acronyms

C   Literature

D   Index

GENERAL INTRODUCTION

IPMA observes an increasing number and importance of projects in business, public and people’s lives, also known as ‘projectification’, which is why we need to engage more and more in projects. IPMA stands for International Project Management Association and is a federation of about 70 Member Associations for project management.

This book provides a knowledge base for developing individual competences for managing projects as described in the IPMA Individual Competence Baseline version 4.

IPMA defines a project as a unique, temporary, multidisciplinary and organised endeavour to realise agreed deliverables within predefined requirements and constraints. Projects drive the development of new products and services, expansions, new capabilities, implementation of new strategies and new generations of infrastructure, but also major maintenance and upgrade of existing facilities and infrastructure.

We recognise that projects begin and end with people and that their competent performance is at the heart of every successful project. This textbook describes the processes and steps applied in project management and the relevant knowledge basis for the people and perspective competences.

Please observe that some of this book’s elements may be the subject of patent rights. IPMA shall not be held responsible for identifying such patent rights. Any trade name in this document is information given for users’ convenience and does not constitute an endorsement.

PURPOSE

IPMA realises that no single book can contain the complete knowledge needed to develop project management skills and abilities. No two projects are the same, nor are the people who work on them, nor the stakeholders, nor the context within the project to be implemented. However, this book offers a knowledge base that can be built on further in developing individual competences in project management to make projects succeed.

Theories and practices for all ICB4 competences are described. They are logically sequenced, explained and enriched with practical theories, which can be learned and applied in the daily practice of project management. As such, it is entirely in line with IPMA’s vision: to strengthen competence across society to enable a world in which all projects succeed. This book also supports obtaining an IPMA certificate as proof of your competence in projects.

AUDIENCES AND USES

Like the IPMA ICB4, this book is intended for a wide range of audiences across many uses. It was written with these audiences in mind. The audiences mentioned below are by no means exhaustive.

Project professionals – The primary audience is the project professionals, providing a basis for their professional development, as a reference guide, also as a basis to prepare for their certification. In the context of this book, project professionals are anyone who plays a role in managing the project and those who support them; these are the (sub-)project manager, work package leader, and project support staff. From convenience, we usually address the reader from their role as project manager.

IPMA Member Associations – This book is also intended for the various IPMA Member Associations (MAs), their certification boards, and assessors if they wish to strengthen their knowledge base for certifying project professionals and attract new members. This book may provide a solid foundation for that. Member Associations can add theories for certification on a chapter-by-chapter basis. Future versions of this book may include these theories.

Trainers and educators – Furthermore, this book may be used by trainers and educators as a basis for their curriculum and as a guide for delivering project management training. This applies, in particular, to those certified under the IPMA Education & Training Registration System (REG Partners).

Companies, governments, and not-for-profit organisations – Finally, this book is practical for decision-makers in companies, governments, and not-for-profit organisations to decide how to shape the competence development of project professionals within their organisations with the IPMA ICB4.

CERTIFICATION SCHEME

IPMA has developed a 4-level certification schema for project professionals based on the Individual Competence Baseline. The four levels of individual certification and their titles are described on the website of IPMA World (https://ipma.world).

Level D: Project Management Associate – An IPMA Level D certification requires that the candidate is knowledgeable in all Competence Elements (CEs) related to project management. As such, they possess broad project management knowledge and can work in a project team. No previous experience is required.

Level C: Project Manager – An IPMA Level C certification requires the candidate should have a minimum of three years of experience in the last six years as a project manager within projects of moderate complexity or in a responsible project management role assisting the project manager in complex projects.

Level B: Senior Project Manager – An IPMA Level B certification for project management requires that, in the last eight years, the candidate should have a minimum of five years of experience as a project manager, of which at least three years were in a responsible leadership function managing complex projects.

Level A: Projects Director – An IPMA Level A certification for project management requires that, in the last twelve years, the candidate should have a minimum of five year experience as a project manager in a responsible leadership function managing complex projects, of which a minimum of three years at a strategic level.

For Levels B, C and D, candidates should complete a self-assessment and pass an examination. The self-assessment is designed to provide a clear picture of an individual’s experience in project-related environments. The exam aims to test your level of knowledge as a project professional. The knowledge tested is based on the competences described in the IPMA Individual Competence Baseline. The Certification Bodies of the IPMA Member Associations are responsible for the individual assessments and certification.

1. STRUCTURE OF THE BOOK

For project management, the Individual Competence Baseline version 4 (ICB4) describes 28 competences, subdivided into (see Table 1.01):

» 05 Perspective competences

» 10 People competences

» 13 Practice competences

Table 1.01 ICB4 competence overview

The perspective competences define the contextual competences to navigate projects within and across the broader environment. The people competences define the personal and interpersonal competences required to succeed in projects. The practice competences define the technical aspects of managing projects.

ORDER OF SUBJECTS

To meet the readers’ needs, this book starts with an introduction to projects and project management. Next, the practice competences are described, then the people competences, and finally, the perspective competences.

The practice competences are described in the sequence of the project lifecycle. Starting with the project preparation (Part 4), then project definition (Part 5) and finally, project delivery (Part 6). To do this logically, the ICB4 sequence has been changed, and competences have also been split up, as sections of certain ICB4 competences are particularly relevant for one particular project stage.

The people competences are described in Parts 7 and 8. The chapters in Part 7 focus mainly on managing yourself, and in Part 8, more on the interpersonal competences that connect with others.

The perspective competences are described in Parts 9, 10 and 11. The chapters in Part 9 focus on implementing change, Part 10 on the internal context of the permanent organisation, and Part 11 on the external context of the broader environment. Table 1.02 shows the book’s structure with references to the chapters in the ICB4.

Table 1.02 Structure of the book with reference to the ICB4

VISION AND ROADMAP

In Figure 1.01, the book’s structure has been translated into a roadmap to guide the reader. Central to the roadmap are the Practice chapters (Parts 3, 4, 5, and 6). This central block is carried by Part 7: Managing Yourself and Part 8: Connecting with Others (purple). Project results simply cannot be realised without insight into professional personal action, careful communication, and professional teamwork. This total is once again embedded in its environment (blue). The environment determines which project results are desired, which goals the project should contribute to and within which frameworks the project should be carried out (Parts 9, 10 and 11).

Figure 1.01 Vision and structure scheme of the book (© P. Pürckhauer)

STRUCTURE OF THE CHAPTERS

For each competence element, the book provides an overview of the knowledge, theories and beliefs the project professional can use to do the right things correctly. The chapters in this book, from chapter 3 onwards, have a consistent structure (see Table 1.03).

Chapter layout

Description

Purpose

The purpose of this chapter

Learning objectives

Subjects dealt within this chapter

Definitions

Most important definitions applicable in this chapter

Introduction

Description of the competence covered in this chapter

Positioning

Positioning subjects (except for People chapters)

Basic subjects

Basic knowledge areas

Sustainability

How to apply this competence from a sustainability approach (for Practice chapters)

Tailoring

How to apply this competence within an Agile environment (for Practice chapters)

Responsibilities

Responsibilities of those involved in this subject (for Practice and Perspective chapters)

Advanced subjects

Additional knowledge areas, if applicable

Table 1.03 Chapter layout

Advanced subjects

The basic subjects cover the primary knowledge areas needed for project success. They are also generally required for certification for IPMA D. The advanced subjects cover additional knowledge areas needed for more complex situations and are usually required for certification for IPMA C and or IPMA B.

2. COMPETENCE DEVELOPMENT

This book provides a sound basis for developing the competences of project professional. IPMA defines competence as ‘the application of knowledge, skills and abilities in order to achieve the desired results’.

Following this, this book can be applied by the readers for:

» Knowledge development for passing the IPMA exams;

» Preparation of the self-assessment and project report to prove their skills and ability;

» Preparation for the IPMA assessment to substantiate chosen behaviour in certain circumstances.

Exams are mandatory at IPMA D, C and B levels. By completing them successfully, the candidate demonstrates sufficient knowledge and understanding of these competences at that level.

For the IPMA C certification, after passing the exam, the candidate has to prepare an experience document, an executive management summary and a self-assessment, after which an assessment interview can take place.

For the IPMA B certification, the candidate first has to prepare the experience document, executive management summary and self-assessment. After approval, they need to prepare a project report. After this is approved, they can proceed for the exam and then finally for the assessment interview.

For IPMA A certification, the candidate needs to follow the same procedure as for IPMA B, except an exam is no longer required.

In the self-assessment, the candidate reflects on their performance in all IPMA competences. The candidate can use the STAR technique to give form and content to the reflection for each competence element. STAR stands for:

»Situation – A description of the situation or problem that has occurred;

»Tasks – The tasks for which the candidate was responsible;

»Activities – The initiatives taken by the candidate in the described situation;

»Results – The result of the initiatives taken and their effect on the project.

Example STAR:

Situation – Product-based planning is a prescribed approach for preparing plans within my organisation.

Tasks – Within the project, as the supplier’s project manager, I am responsible for preparing the project plan and having it approved.

Activities – In a workshop with core team members and users, I defined the project and intermediate deliverables and prepared a first draft of the overall project schedule. Based on this, I had individual team members prepare their own timelines, which I then discussed with them. Following this, I prepared the final project plan and approved it by the project board.

Results – By jointly preparing the product-based planning, a high-quality plan was created, which was approved without much discussion, whereby the team members were motivated to deliver the work on schedule. We were able to complete the project without delay.

During the interview, the candidate can expect in-depth questions about their self-assessment. By answering adequately, the candidate demonstrates sufficient knowledge, skills, experience, and personality to lead projects. To prepare thoroughly for this, the candidate may use the content of this book.

PURPOSE OF COMPETENCE DEVELOPMENT

Competent action is expressed in the project professional’s consciously chosen and actual behaviour. This book cannot enforce this behaviour. But by including examples in the text (provided with a blue marking on the left), the project professional can read about and reflect on the actual behaviour of others. Lessons can be learned from this.

Competence development is based on deepening and enriching successive areas of attention. These focus areas form the content of the circle that is visible in Figure 2.01.

Figure 2.01 Focus areas of competence development

This circle can be regarded as the goal aspect of this book. Ultimately, it is about the reader having clear beliefs and values and using a self-conscious personal makeup, skills and behaviour appropriate to their professional environment.

All parts can be read against this background. Each part is ultimately intended:

» To better observe and understand the complex environments in which projects take place;

» To discover constructive beliefs and clear values that positively guide project work;

» To deepen and enrich personal behavioural skills related to project work;

» To gain insight into your personal makeup towards projects;

» To achieve a pure and concise form of attention that supports effective project management behaviour in complex environments.

Because this book is about projects, we begin with a broad introduction to projects.

PRACTICE COMPETENCES

PART 3 PROJECT ORIENTATION

PART 4 PROJECT PREPARATION

PART 5 PROJECT DEFINITION

PART 6 PROJECT DELIVERY AND CLOSE-OUT

3. PROJECT ORIENTATION

PURPOSE

The purpose of this chapter is to enable the individual to determine whether an initiative can best be carried out as a project and apply the principles of project management.

LEARNING OBJECTIVES

• What is a project and what is project management;

• Reasons to initiate a project;

• Prerequisites for and characteristics of a project;

• The different work forms;

• Project lifecycle;

• Staging, controlling and decision-making within projects;

• Control aspects in a project;

• Triple constraint and the iron square;

• Projects within the product lifecycle;

• Project at different levels;

• Project output, outcome, benefits, and goals;

• People and Perspective context of projects;

• Agile versus Waterfall;

• IPMA Project Excellence Baseline (advanced).

DEFINITIONS

Project: A unique, temporary, multidisciplinary, and organised endeavour to realise agreed deliverables within predefined requirements and constraints.

Project deliverable: A tangible or intangible element to be realised by the project.

Project output: The total of the project deliverables that forms the project result.

Project outcome: The result of a change enabled by the project output.

Project goal: The effect the sponsoring organisation or customer wants to achieve with the project output.

Sponsoring organisation: The organisation that commissioned and funds the work and makes the final go/no-go decisions. This can be corporate, programme management or an external client.

Customer: An individual, group or organisation receiving the deliverables.

Project sponsor: The individual accountable for the project’s success to the sponsoring organisation or customer, and owner of the project’s business case.

Project management: All managerial tasks necessary to deliver the project deliverables successfully, This involves planning, organising, monitoring, and controlling all aspects of the project, leading the team, and motivating all people involved.

Project manager: The individual responsible for the daily management of the project to achieve the project deliverables and enable project success.

Project stage: A period within a project, separated from other periods, with a predetermined output, and concluded with a go/no-go decision. Project stages cannot overlap.

Project phase: A period within a project with its own characteristics and with a predetermined output. Project phases can overlap.

Project decision: A decision by the sponsoring organisation or customer to go ahead with the project or not (go/no-go decision).

Decision point: A control point where the project is reviewed to decide whether or not it can proceed and whereby, if so, the budget for the next stage is released (gate).

Milestone: An important event that provides visible evidence of progress.

INTRODUCTION

The chapter lays the foundation for all other chapters, which is why it is so important. The chapter explains what a project is, why it is sometimes better to work on a project basis and sometimes not, what the characteristics and the necessary conditions are, and why working on a project is so different from business as usual. This chapter aims to provide a sound basis to enable you to understand and position the other competences.

POSITIONING

Understanding project management is, of course, essential when managing projects, but it is also vital before starting a project. We need to determine whether an endeavour is best carried out on a project basis or in a different manner. It is not self-evident to manage every endeavour as a project. Each approach has its pros and cons. And, if we opt for a project-based approach, we should be aware that certain conditions should be met before we can start the project. If these conditions are not met, we may encounter problems rapidly.

WHAT IS A PROJECT?

A project is a unique, temporary, multidisciplinary, and organised endeavour to realise agreed deliverables within predefined requirements and constraints. Deliverables are the tangible or intangible elements to be achieved. Projects can be stand-alone, part of a programme or part of a portfolio. However, a project is always a separate challenge for realising deliverables.

A project is a unique, temporary, multidisciplinary, and organised endeavour to realise agreed deliverables within predefined requirements and constraints.

This definition sounds very obvious, but it isn’t. To a great extent, it limits the scope of a project. A project is a temporary organisation to deliver a predefined product or service within predefined requirements and constraints. With these deliverables, the customer can implement the changes and realise the benefits they envision. That is the reason to start a project in the first place. However, it is not up to the project and the project manager to implement these changes and realise these benefits. It is the responsibility of the customer. Clearly, you need to know what they want to use the project output for to deliver one that is fit for purpose, but that’s where the project ends. This should be clear to all stakeholders from the outset to avoid false expectations and prevent others from not taking responsibility for making the project a success.

A requirement is a criterion that a solution should meet to be acceptable. A constraint is a limitation within which the project should be implemented. For example, a requirement may be that the new engine is fully electrically powered. A constraint may be that the primary process should not be interrupted during the project.

WHAT IS PROJECT MANAGEMENT?

Project management is the whole of managerial tasks necessary to deliver the project deliverables successfully, involving planning, organising, monitoring, and controlling all aspects of the project, leading the team, and motivating all individuals involved.

Project management encompasses all managerial tasks necessary to successfully deliver the project deliverables, involving planning, organising, monitoring, and controlling all aspects of the project, leading the team, and motivating all individuals involved.

In short, project management is the management of a project. This includes the management of the project itself, leading the team, and engaging the stakeholders. Project management is not an isolated task for the project manager but also a responsibility for the project sponsor and others, such as the work package leaders. The project sponsor is responsible for directing the project. The project manager is responsible for the daily management of the project to achieve the project deliverables and enable project success. The work package leaders should lead their teams and ensure that the agreed products are developed.

REASONS TO INITIATE A PROJECT

The permanent organisation is more efficient in routine work. A project organisation is often more effective in one-off activities. In the temporary setting of a project, different disciplines from different departments and even other companies can work together more easily to deliver the project output. Communication lines within the business organisation can also be relieved of the intensive coordination required to achieve such a one-off result. Especially since the work often cannot be specified in detail in advance.

Often a project is initiated because:

» The result is a one-off within a given context;

» Multidisciplinary teams need to be involved;

» The result cannot be specified in detail in advance;

» Many stakeholders need to be involved in the decision-making;

» The realisation transcends the individual domains;

» Much management attention is required;

» The work does not fit within ‘business as usual’.

As a result, projects are usually more complex and risky than ordinary activities. But not everything is a project. The development of a new product is preferably carried out as a project. Replacing a plug is ideally done as part of regular maintenance. Transforming the organisation to a new way of working is best done as a programme (see Chapter 9.02 Programme Management).

POSITION PROJECTS

Projects can stand alone and be part of a programme or a portfolio (see Figure 3.01). A programme is a temporary organisation of interrelated projects, and business activities managed in a coordinated way to enable the implementation of change and the realisation of benefits. A portfolio is a set of projects and programmes brought together to provide optimum use of the organisation’s resources to achieve its strategic goals. Both programmes and portfolios consist of projects and contain policies and frameworks within which a project should be implemented. However, the primary conditions and characteristics of a project remain the same.

Figure 3.01 Position projects in the organisation

NECESSARY CONDITIONS FOR A PROJECT TO EXIST

Starting a project requires a conscious decision by the management. Projects cannot be created unilaterally. There should always be an agreement between the project sponsor and the project manager to start a project.

The necessary conditions for a project to exist are:

» A decision to carry out the endeavour as a project;

» A purpose and intended output;

» An agreement between the project sponsor and project manager;

» A defined start and end;

» A temporary organisation;

» A predefined scope and conditions.

The project sponsor and the project manager should first agree on the project outline before there is a project. The project output should be defined at least at key points. There should be an agreement on the scope, approach, and conditions under which the project needs to be implemented. Furthermore, it should be clear why the project should be carried out. Finally, the work should be authorised.

A decision is made to carry out the work on a project basis

It should not only be decided to develop a product or service but this also will be done through a project. Products and services can also be developed within the business as usual. Developing a product or service within ‘business as usual’ provides an entirely different set of tasks, responsibilities, and authorities than developing a product or service via a project. Given the differences in tasks, responsibilities, and authorities between these two approaches, agreeing that the product or service will be realised through a project beforehand is necessary.

There is a purpose and an intended output (product or service)

A project realises deliverables. This can be a product or a service. The purpose is the goal the sponsoring organisation or customer wants to achieve with the project output. We need to know the intended output in order to conclude an agreement to deliver this output. We need to know the purpose in order to design and specify the output during the implementation of the project since we usually do not know all the details of the project output at the start of the project and to adapt the work to changing circumstances.

There is an agreement between the project sponsor and the project manager

A project cannot be started unilaterally. A project does not start until there is an agreement between the project sponsor and the project manager on the project outline. The project manager is responsible for the output and how it will be achieved. If necessary, challenge the project sponsor and others to opt for a different result and or a different approach. Is the approach inclusive, is the project and the output sustainable, et cetera?

There is a defined start and end

A project has a defined start and finish. A project starts when there is an agreement between the project sponsor and the project manager about the assignment, and the sponsor authorises the project manager to start the work. The project ends when the acceptance of the project output is confirmed, or the project has nothing more to contribute, and the sponsor closes the project and officially discharges the project manager.

There is a temporary organisation

In projects, there is always a sponsoring organisation or customer and a supplier. The sponsoring organisation or customer defines the deliverables, requirements, and constraints. The supplier provides the resources and delivers the project output.

In projects, the project sponsor represents the sponsoring organisation or customer. The project manager is responsible for the daily management of the project to enable project success. The project teams will deliver the agreed deliverables. These roles, tasks and responsibilities should be defined and agreed upon before starting the project.

There is a predefined scope and conditions

In order to start a project, the scope and conditions of the project should also be known, as they determine the work to be carried out. Without a predefined scope and conditions, there can be no valid agreement about the project assignment. However, this does not mean that the scope and conditions should be defined in full detail at the start of a project; these just need to be specified in sufficient detail to form a valid basis for this project assignment.

WORK FORMS

There are three primary work forms: improvisation, plan-based work, and routine work (see Figure 3.02), besides all kinds of intermediate forms such as Agile. There is also no strict division between these work forms; they overlap in practice. We can also carry out parts of the work within one work form and other parts of the work on another work form. Within plan-based work, individual activities can be carried out ad hoc and routinely and vice versa. However, all these three forms of work have their own characteristics.

Improvisation – The work is performed ad hoc. This occurs when the work is highly demand-driven. Dependencies are unclear, and people do not work according to fixed procedures or based on a plan. The advantage herein is that there is a high degree of flexibility and that issues are often dealt with creatively. The disadvantage is that there is much uncertainty about whether the result is achieved. The consequences concerning time, money and capacity are also unclear in advance. Improvisation is quite effective as the work to be carried out is, to a large extent, unpredictable.

Routine work – Work is routine if the work is carried out over and over again according to set procedures and instructions. The process is work-orientated rather than change-orientated. A characteristic of routine work is that the same work is repeated over and over again according to a predetermined method. The result is clear in advance, as are the costs, time and resources to be spent. An important advantage is that the work can be performed very efficiently.

Figure 3.02 The three basic work forms (Groote, et al, 2011)

Plan-based work – Plan-based work is based on ‘think first, then act’. Plan-based work is result-orientated. Plan-based work lies somewhere in between improvisation and routine work. The result to be delivered is relatively clear in advance but is not yet fully specified. The result gradually becomes more apparent during the realisation of the work. Risks can be estimated in advance.

Project work is a particular form of plan-based work. Project work is plan-based work for someone else and includes two additional steps. The first extra step is first agreeing on what the assignment is. The second extra step is to hand over the output to the other party upon completion. With that, project work includes the following steps (see Figure 3.03):

» Agree to the assignment

> project preparation stage;

» Plan the assignment

> project definition stage;

» Deliver the assignment

> project delivery stage(s);

» Handing over the output

> project closure at the end of the last delivery stage.

The project preparation stage is not an official part of the project itself, as there is yet no consent between the project sponsor and the project manager. The consent is the result of this stage. A project starts after the completion of the project preparation stage, the project assignment has been agreed upon, and the project sponsor authorises the start of the definition stage. Furthermore, project closure is not a separate stage in a project but only a part of the final delivery stage.

Figure 3.03 Steps in project-based work

Marian is a freelancer. She has been asked to manage a project to set up an online shop. She met with the Sales Director of Xantia to get a clear picture of what they want (agree to the assignment). On assignment, she should first draw up a plan of what needs to be done with an estimate of time and cost (plan the assignment). Marian hopes she gets the assignment and can start the project soon.

STAGING, CONTROLLING, DECISION MAKING

Working according to plan does not mean that the plan is cast in stone. The characteristic of project-based work is that the project output becomes clearer as the project progresses. A project should therefore be designed in such a way that it is manageable but that sufficient room remains to respond to the ever-changing environment and the insights of the parties involved. Staging, controlling, and decision-making are, therefore, essential aspects of a project.

Staging

A project stage is a period within a project, separated from other periods, with a predetermined output, and concluded with a go/no-go decision. Based on the principle ‘think first, act later’, every project consists of at least two stages: the project definition stage and the project delivery stage. In the definition stage, the foundation is laid for the delivery. In the delivery stage, the actual development of the project output takes place. The project delivery stage may be split into successive sub-stages, depending on the control the sponsoring organisation wants to exert.

Each stage concludes with a project decision (go/no-go decision). The project can only continue after the sponsoring organisation has issued explicit authorisation. A decision point (gate) is a (usually) predetermined control point where the project is reviewed to decide whether or not a project can proceed and, if so, the budget for the next stage is released.

Project stages should be distinguished from the technical phases of a project. A project phase is a period within a project with its own characteristics and a predetermined output, such as engineering, tender, and construction. A project phase concludes with a milestone. A milestone is an important event that provides visible evidence of progress.

Project phases can overlap, but project stages do not. Project phases can coincide with project stages, but they don’t have to (see Figure 3.04). The same applies to milestones. A milestone can coincide with a decision point, but it does not have to. Decision points and milestones should be included in the project plan.

Figure 3.04 Project with additional stages and intermediate decision points

Control

Control in a project is necessary to ensure that objectives are met. Controlling involves drawing up a plan (Plan), putting the work into operation (Do), checking that everything is going according to plan (Check) and, if necessary, taking corrective actions (Act), after which the control cycle can be repeated. Part of the Check step is that the next management level is also informed so that they can exercise their own control responsibility. The control cycle should be carried out at each successive management level in the project.

This control cycle should be completed regularly to ensure that work is carried out according to plan, necessary changes are made in a timely manner, and maximum added value is realised. Primary control aspects are time, cost, scope, quality, risk and benefit. Nowadays, many projects include additional control aspects such as health, safety, security and sustainability. These aspects are becoming increasingly important.

Decision-making

Decisions should be made at every management level in the project. At the highest management level in the project (project sponsor/project board), stage transitions (decision points) are the ideal moments to evaluate the project’s status and reconsider the project’s further course. What is the status of the work? What still needs to be done? What is the best option forward? And does the project still provide sufficient added value, or is it better to close it prematurely?

Making choices is an important part of decision-making. Which alternatives are discarded, and with which should we continue? It is wise not to rush when choosing a particular design or approach and to retain freedom of action, but you cannot keep all alternatives open until the end. The latter costs too much time and money, and the team loses focus on the end result. That is why it is good to determine in advance which choices should be made and when to avoid acting in the spur of the moment.

Magic triangle and iron square.

Control aspects are interrelated. A change in one control aspect will affect one or more other control aspects, assuming the work is well planned. Reducing the budget will automatically affect time and or scope and vice versa to deliver a quality product. These are called the triple constraints and are visualised by the magic triangle (see Figure 3.05a). Today, the magic triangle is often replaced by the iron square, in which time, budget, quality, and scope are linked, as the quality to be delivered may also vary (see Figure 3.05b). If you change one aspect, at least one of the other aspects will also change to keep everything in balance. Nowadays we have to assess all control aspects, including health, safety, security and sustainability.

Figure 3.05a Magic triangle

Figure 3.05b Iron square

PROJECTS WITHIN THE PRODUCT LIFECYCLE

Each product also has its own lifecycle. It starts with an initial idea, perhaps followed by a feasibility study to investigate whether the realisation and exploitation of the product are viable. If approved, the product is realised and put into use. Whilst in use, further major maintenance or product updates may be required. Finally, the product is disposed of, destroyed, or reused in another form or application. Every transformation during the product lifecycle can be carried out as a project, such as the feasibility study, the realisation, major maintenance, upgrades and repairs of the product, and the product’s final de-commissioning and or demolition (see Figure 3.06).

Figure 3.06 Projects within the product lifecycle

PROJECTS AT DIFFERENT LEVELS

Projects can be defined at different levels (see Figure 3.07). They are comparable to Matryoshka dolls, whereby one Matryoshka doll fits snugly into another. The same applies to projects. A project at one level could be just a sub-project or a work package at another level.

Figure 3.07 Projects at different levels

For the sponsoring organisation, the project includes the project definition and the project delivery stage. For a supplier, the project is the period from signing the contract to handing over the product to be delivered. This period may include several stages, up to just one work package in one of the stages.

In the context of this textbook, the project is viewed from the perspective of the sponsoring organisation or customer. In doing so, the project starts with authorising the project definition stage and ends with delivering the project output.

PROJECT OUTPUT, OUTCOME, BENEFITS AND GOALS

The project output is the total of the project deliverables that comprise the project result. This is the total of the project deliverables handed over to the customer.

The project output allows the sponsoring organisation or customer to implement the changes and realise the benefits for which the project was initiated in the first place. The project outcome is the result of the change enabled by the project output. Project benefits are the advances that result from the project outcome. The project goals are the effects the sponsoring organisation or customer wants to achieve with the project outcome and, thus, with the project output. The project goals should align with the strategic objectives and vision of the sponsoring organisation or customer.

PEOPLE AND PERSPECTIVE CONTEXT OF PROJECTS

The goal does not justify all means. The project should be legally sound and socially appropriate. In addition, the organisation can consciously opt for Corporate Social Responsibility (CSR) to voluntarily, but not without obligation, take on a social role that goes further than prescribed by law or what is socially appropriate.

Since projects usually are carried out to support changes in organisations, they should be directly aligned with the sustainability vision of the organisations involved. The project may even be initiated to contribute directly to this vision. Corporate social responsibility also draws attention to the beliefs and behaviour of the project manager and the project team regarding respect, transparency, sincerity, fairness, empathy, inclusivity, integrity, et cetera.

AGILE VERSUS WATERFALL

Agile is a conceptual approach to implementing changes iteratively and incrementally (see Chapter 9.05 Development Frameworks). in this context, iterative means that the products are developed cyclically and incremental means the output is delivered in a series of small steps. This contradicts the traditional Waterfall approach in which the output is developed linearly and entirely put into use at the end of the project (see Figure 3.08).

Figure 3.08 Agile versus Waterfall

Agile can be applied in any project where strong collaboration with users is required and incremental delivery is an option. The advantage of Agile projects is that developers and users work closely together from the start. Wherever this is important, an Agile approach delivers benefits. In Agile projects, the change authority is usually delegated to a product owner. The product owner is ultimately responsible for maximising the value of the envisaged product and maintaining the product backlog.

SUSTAINABILITY

Sustainability is one of the most significant challenges of our time. How can prosperity be developed without endangering the lives of future generations? Henceforth, the long-term social and environmental impacts of the project should be considered. The sustainability of the project and the project output to be delivered should be taken into account.

Focus on sustainability starts with recognising the context of the project. It also requires a greater emphasis on the outcome and value of the project than on its outputs and objectives. In other words, a more lifecycle-orientated and outcome-orientated approach rather than an output-orientated one. This affects all aspects of the project and of project management.

TAILORING

In organisations making substantial use of Agile development techniques, a conscious decision should be made whether new deliverables will be realised as part of continuous development or whether a temporary endeavour (project) should be initiated to realise these deliverables. In the latter case, special development teams should be created to realise those deliverables.

Before starting the actual development, we should first define the product vision (project preparation stage), the initial product backlog, and the additional capacity we need to realise the product vision (project definition stage). The project should be terminated when development is complete, has nothing more to contribute, or the regular development teams can do the remaining part (project closure). Within an Agile environment, these steps will often be performed less administratively but still need to be taken. Additional decision points can be scheduled during the delivery/development stage to prevent this special endeavour from going unnoticed. These toll gates may coincide with planned releases.

RESPONSIBILITIES

The project sponsor is ultimately responsible for the project and should ensure the sponsoring organisation and customer that the intended output is delivered with which they can achieve their intended goals. The project manager is responsible for the daily management of the project to achieve the project deliverables and enable project success.

ADVANCEDPROJECT EXCELLENCE BASELINE (ADVANCED)

The IPMA Project Excellence Baseline (IPMA PEB, 2018) promotes project and programme management excellence. The IPMA PEB provides guidelines for assessing a project or programme. The IPMA PEB can be applied in any industry, within any profession and using any project management method.

Basic principles for excellent projects are:

» Excellent is a quality that surpasses ordinary standards;

» Excellent is a continuously moving target that should constantly be pursued;

» Excellent performance can best be achieved through continuous development.

» Achieving excellence is a long-term effort.

Leaders of excellent projects:

» Behave in a socially responsible manner with care for the weak;

» Understand the core elements of the project environment (People, Planet, Profit);

» Recognise the institutions pursuing sustainability as stakeholders of the project.

Sustainability is a core element of the IPMA PEB based on the UN Global Compact’s Ten Principles of Sustainability (see Chapter 11.02 Sustainability).

The IPMA PEB can be used to assess a project or a programme. When assessing a programme, you can choose only to assess the programme management, one or more projects in the programme or a combination of both. The IPMA PEB cannot be used to assess a portfolio as a whole. The three key areas of the model are People & Purpose, Processes & Resources and Project Results (see Figure 3.09).

Figure 3.09 IPMA Project Excellence Baseline (IPMA, 2018)

» People & Purpose – This area includes Leadership & Values (A.1), Objectives & Strategy (A.2), and Project Team, Partners & Suppliers (A.3). It is considered to be the foundation of project excellence. The right people, led and supported by excellent leaders, all sharing a common vision of success, are crucial for driving improvements in a project and helping it achieve more than the set standards.

» Processes & Resources – This area includes Project Management Processes & Resources (B.1) and Management of Other Key Processes & Resources (B.2). It represents practices necessary to enhance excellence through sound processes and adequate resources used efficiently and sustainably.

» Project Results – This area includes Customer Satisfaction (C.1), Project Team Satisfaction (C.2), Other Stakeholder’s Satisfaction (C.3), and Project Results and Impact on Environment (C.4). The project management approach can only be excellent if it leads to outstanding, sustainable results for all key stakeholders.

These areas are closely related to the result areas of the European Foundation for Quality Management model® (EFQM, 2021) often used for assessing organisational excellence (see Chapter 9.01 Strategy). This conscious linkage helps organisations use the EFQM excellence model to extend their excellence efforts into projects while remaining consistent with their organisation-wide initiatives.

Through good interaction between the three core areas of the IPMA PEB, the following elements of a project are secured:

»Performance – People driven by purpose are motivated and strive to achieve results.

»Flexibility – Regular observation of the results influences people’s perception and leads to a better understanding of the project objectives and continuous refinement of its strategy.

»Effectiveness and efficiency – The right processes and resources used by people driven by purpose increase their effectiveness and efficiency.

»Scalability – People driven by purpose seek opportunities to increase their abilities by developing and using the appropriate processes and resources.

»Reliability – Proven processes and adequately managed resources help to secure short- and long-term results.

»Continuous improvement – Conclusions from the analysis of the results drive the development of processes and resources.

The assessment of project excellence enables the project team to understand how to achieve success and identify and use its strengths and improvement potential.

4. PROJECT PREPARATION

The project preparation is intended to arrive at a project assignment supported by the organisation.

Chapter 4.01 – Project Preparation Stage – Describes the different actions that need to be performed to prepare a project outline and obtain authorisation from the project sponsor to carry out the project definition stage.

Chapter 4.02 – Stakeholders – Maps out the different interest groups surrounding the project and discusses how these groups can be effectively involved in the project.

Chapter 4.03 – Project Organisation – Describes how the different interest groups are included in the project organisation, which roles can be distinguished, and the tasks and responsibilities of those different roles.

Chapter 4.04 – Requirements and Objectives – Describes the project goals, results and requirements and how they are related.

Chapter 4.05 – Risk and Opportunity – Describes managing risks and opportunities. Various risk and opportunity techniques are also discussed.