Project Management Body of Knowledge
(PMBOK)
Lecture # 3
Project Management Principles
• Principles for a profession serve as foundational guidelines for
strategy, decision making, and problem solving
• Professional standards and methodologies are often based on
principles
• In some professions, principles serve as laws or rules, and are
therefore prescriptive in nature
Project Management Principles
• The principles of project management are not prescriptive in nature.
They are intended to guide the behavior of people involved in
projects
• They are broadly based so there are many ways individuals and
organizations can maintain alignment with the principles
• Principles can, but do not necessarily, reflect morals. A code of ethics
is related to morals. A code of ethics for a profession can be adopted
by an individual or profession to establish expectations for moral
conduct
Project Management Principles
• The PMI Code of Ethics and Professional Conduct [2] is based on four
values that were identified as most important to the project
management community:
Responsibility Respect Fairness Honesty
Project Management Principles
• The 12 principles of project management are aligned with the values
identified in the PMI Code of Ethics and Professional Conduct. They do
not follow the same format, and they are not duplicative, rather the
principles and the Code of Ethics are complementary
• The principles of project management were identified and developed
by engaging a global community of project practitioners. The
practitioners represent different industries, cultural backgrounds, and
organizations in different roles and with experience in various types
of projects. Multiple rounds of feedback resulted in 12 principles that
provide guidance for effective project management.
Project Management Principles
• Principles of project management can also have areas of overlap with
general management principles
12 Principles of Project Management
▶ Be a diligent, respectful, and caring steward (see Section 3.1)
▶ Create a collaborative project team environment (see Section 3.2).
▶ Effectively engage with stakeholders (see Section 3.3).
▶ Focus on value (see Section 3.4).
▶ Recognize, evaluate, and respond to system interactions (see Section 3.5).
▶ Demonstrate leadership behaviors (see Section 3.6).
▶ Tailor based on context (see Section 3.7).
▶ Build quality into processes and deliverables (see Section 3.8).
▶ Navigate complexity (see Section 3.9).
▶ Optimize risk responses (see Section 3.10).
▶ Embrace adaptability and resiliency (see Section 3.11).
▶ Enable change to achieve the envisioned future state (see Section 3.12)
1st Principle: BE A DILIGENT, RESPECTFUL,
AND CARING STEWARD
• Who is a Steward ?
1st Principle: BE A DILIGENT, RESPECTFUL,
AND CARING STEWARD
1st Principle: BE A DILIGENT, RESPECTFUL,
AND CARING STEWARD
• Stewardship has slightly different meanings and applications in
different contexts. One aspect of stewardship involves being
entrusted with the care of something
• Another aspect focuses on the responsible planning, use, and
management of resources. Yet another aspect means upholding
values and ethics
1st Principle: BE A DILIGENT, RESPECTFUL,
AND CARING STEWARD
• Stewardship
encompasses Stewardship
Within
responsibilities Organization
both within and
external to the
organization
Stewardship
Outside
Organization
Stewardship within Organization
Operating in alignment with the organization, its objectives, strategy,
vision, mission, and sustainment of its long-term value;
Commitment to and respectful engagement of project team
members, including their compensation, access to opportunity, and
fair treatment;
Diligent oversight of organizational finances, materials, and other
resources used within a project; and
Understanding the appropriate use of authority, accountability, and
responsibility, particularly in leadership positions.
Stewardship outside the organization includes
responsibilities in areas such as:
Environmental sustainability and the organization’s use of materials
and natural resources;
Organization’s relationship with external stakeholders such as its
partners and channels;
Impact of the organization or project on the market, social
community, and regions in which it operates; and
Advancing the state of practice in professional industries.
1st Principle: BE A DILIGENT, RESPECTFUL,
AND CARING STEWARD
• Stewardship reflects understanding and acceptance of trust as well as
actions and decisions that engender and sustain that trust. Stewards
also adhere to both implicit and explicit duties. These can include the
following:
Integrity Care Trustworthiness Compliance
Integrity:
• Stewards behave honestly and ethically in all engagements and
communications. Stewards hold themselves to the highest standards
and reflect the values, principles, and behaviors expected of those in
their organization. Stewards serve as role models, building trust by
living and demonstrating personal and organizational values in their
engagements, work activities, and decisions. In the project
management context, this duty often requires stewards to challenge
team members, peers, and other stakeholders to consider their
words and actions; and to be empathetic, self-reflective, and open
to feedback
Care
• Stewards are fiduciaries of the organizational matters in their charge,
and they diligently oversee them. Higher-performing projects feature
professionals who diligently oversee those matters, beyond the
confines of strictly defined responsibilities. Stewards pay close
attention and exercise the same level of care over those matters as
they would for their personal matters. Care relates to the internal
business affairs of the organization. Care for the environment,
sustainable use of natural resources, and concern for the conditions
of people across the planet should be reflected in the organizational
policies and principles
Care
• Care includes creating a transparent working environment, open
communication channels, and opportunities for stakeholders to raise
concerns without penalty or fear of retribution.
Trustworthiness
• Stewards represent themselves, their roles, their project team, and
their authority accurately, both inside and outside of the organization.
This behavior allows people to understand the degree to which an
individual can commit resources, make decisions, or approve
something. Trustworthiness also entails individuals proactively
identifying conflicts between their personal interests and those of
their organization or clients. Such conflicts can undermine trust and
confidence, result in unethical or illegal behaviors, create confusion,
or contribute to suboptimal outcomes. Stewards protect projects
from such breaches of trust.
Compliance
• Stewards comply with laws, rules, regulations, and requirements that
are properly authorized within or outside of their organization.
However, high-performing projects seek ways to integrate compliance
more fully into the project culture, creating more alignment with
diverse and potentially conflicting guidelines. Stewards strive for
compliance with guidelines intended to protect them, their
organization, their stakeholders, and the public at large. In instances
where stewards face conflicting guidelines or questions regarding
whether or not actions or plans align with established guidelines,
stewards seek appropriate counsel and direction
2nd Principle: CREATE A COLLABORATIVE
PROJECT TEAM ENVIRONMENT
Team Agreements
• Team agreements represent a set of behavioral parameters and
working norms established by the project team and upheld through
individual and project team commitment. The team agreement
should be created at the beginning of a project and will evolve over
time as the project team continues to work together and identify
norms and behaviors that are necessary in order to continue to work
together successfully.
Organizational structures
• Project teams use, tailor, and implement structures that help
coordinate the individual effort associated with project work.
Organizational structures are any arrangement of or relation between
the elements of project work and organizational processes. These
structures can be based on roles, functions, or authority. They can be
defined as being external to the project, tailored to fit the project
context, or newly designed to meet a unique project need. An
authority figure may formally impose a structure, or project team
members may contribute to its design in alignment with
organizational structures.
Organizational structures
• Examples of organizational structures that can improve collaboration
include, but are not
• limited to:
Definitions of roles and responsibilities,
Allocation of employees and vendors into project teams,
Formal committees tasked with a specific objective, and
Standing meetings that regularly review a given topic.
Organizational Structures
Organizational Structures (Functional
Organizational)
• In a functional organization, staff members are grouped by specialty
(like Engineering, Sales, Accounting, Manufacturing, etc.); specialties
may be further sub-divided (for example, sales function may further
be sub-divided into customer service and marketing).
• Each department will do its project work independently of other
departments.
• Functional manager manages the project budget.
• Project manager’s role is only part-time.
Organizational Structures (Functional
Organizational)
Organizational Structures (Functional
Organizational)
• Advantages of functional organization:
Each employee has one clear superior
Clearly defined career paths for employees
• Disadvantages of functional organization:
The project manager has little or no authority
Employees are interested in functional work and may not be loyal to the
project
Long communication channels as all communications have to be routed
through the functional managers
Matrix Organization
• It is a blend of functional and project-oriented organizations.
• Matrix organizations are classified as weak matrix, balanced matrix
and strong matrix depending on the power and influence of the
project manager.
Matrix Organization
• Advantages of matrix organizations
Clearly defined career paths for employees
Better communication channels
Improved authority to the project manager, compared to functional
organization
• Disadvantages of matrix organizations
The main disadvantage of matrix organization is that the project staff is
expected to report to “two bosses”, the functional manager and the project
manager.
Weak Matrix Organization
• Weak matrix maintains many of the characteristics of a functional
organization.
• Functional manager manages the project budget.
• Project manager’s role is only part-time.
• Here, the role of the project manager is limited to a Project
Coordinator or Project Expediter.
• A project expediter works as staff assistant and communications
coordinator. He cannot personally make or enforce decisions.
• Project Coordinators have power to make some decisions and have
some authority.
Weak Matrix Organization
Balanced Matrix Organization
• While functional organization and weak matrix does not have a full-
time project manager, balanced matrix recognizes the need for a
project manager.
• The project manager is a full-time role with more authority in
balanced matrix. But, it does not provide the project manager with
the full authority over the project and project funding.
• As the name (Balanced) indicates, a balance is maintained between
the functional manager and the project manager. Project decisions
and budget responsibilities are shared between the functional
manager and the project manager.
Balanced Matrix Organization
Strong Matrix Organization
• Strong matrix maintains many of the characteristics of a project-
oriented organization.
• Strong matrix has full-time project managers with considerable
authority.
• Project manager’s role is full-time.
• The project manager has more authority over the project than the
functional manager. The functional manager is more concerned with
making sure the team members’ professional development and
organizational needs are met.
• Project manager manages the project budget.
Strong Matrix Organization
Projectized Organization
• Most of the organization’s resources are involved in the project work.
• Project manager’s role is full-time.
• Project managers have a great deal of independence and authority.
• Project manager manages the project budget
Projectized Organization
• Advantages of project-oriented organization
Team members are loyal to the project.
More effective communication.
• Disadvantages of project-oriented organization
Demotivation among the team members, especially towards the end of the
project, as their services may be terminated after the project.
Might lead to duplication of resources
Projectized Organization
Processes
• Project teams define processes that enable completion of tasks and
work assignments. For example, project teams may agree to a
decomposition process using a work breakdown structure (WBS),
backlog, or task board.
• Project teams are influenced by the culture of the organizations
involved in the project, the nature of the project, and the
environment in which they operate. Within these influences, project
teams establish their own team cultures. Project teams can tailor
their structure to best accomplish the project objective. By fostering
inclusive and collaborative environments, knowledge and expertise
are more freely exchanged, which in turn enable better project
outcomes.
Processes
• Clarity on roles and responsibilities can improve team cultures. Within
project teams, specific tasks may be delegated to individuals or
selected by project team members themselves. This includes the
authority, accountability, and responsibility related to tasks:
Authority: The condition of having the right, within a given context, to make
relevant decisions, establish or improve procedures, apply project resources,
expend funds, or give approvals. Authority is conferred from one entity to
another, whether done explicitly or implicitly
Accountability: The condition of being answerable for an outcome.
Accountability is not shared
Responsibility: The condition of being obligated to do or fulfill something.
Responsibility can be shared
3rd Principle: CREATE A COLLABORATIVE
PROJECT TEAM ENVIRONMENT
Stakeholders
• Stakeholders can be individuals, groups, or organizations that may
affect, be affected by, or perceive themselves to be affected by a
decision, activity, or outcome of a portfolio, program, or project.
Stakeholders also directly or indirectly influence a project, its
performance, or outcome in either a positive or negative way.
Stakeholders
• Stakeholders can affect many aspects of a project, including but not
limited to:
Scope/requirements, by revealing the need to add, adjust, or remove
elements of the scope and/or project requirements;
Schedule, by offering ideas to accelerate delivery or by slowing down or stop
delivery of key project activities;
Cost, by helping to reduce or eliminate planned expenditures or by adding
steps, requirements, or restrictions that increase cost or require additional
resources;
Project team, by restricting or enabling access to people with the skills,
knowledge, and experience needed to deliver the intended outcomes, and
promote a learning culture;
Stakeholders
Plans, by providing information for plans or by advocating for changes to agreed
activities and work;
Outcomes, by enabling or blocking work required for the desired outcomes;
Culture, by establishing or influencing—or even defining—the level and
character of engagement of the project team and broader organization;
Benefits realization, by generating and identifying long-term goals so that the
project delivers the intended identified value;
Risk, by defining the risk thresholds of the project, as well as participating in
subsequent risk management activities;
Quality, by identifying and requiring quality requirements; and
Success, by defining success factors and participating in the evaluation of
success.
Stakeholders
• Effective and efficient engagement and communication include
determining how, when, how often, and under what circumstances
stakeholders want to be—and should be—engaged. Communication
is a key part of engagement; however, engagement delves deeper to
include awareness of the ideas of others, assimilation of other
perspectives, and collective shaping of a shared solution. Engagement
includes building and maintaining solid relationships through
frequent, two way communication. It encourages collaboration
through interactive meetings, face-to-face meetings, informal
dialogue, and knowledge-sharing activities.
Stakeholders
• Stakeholder engagement relies heavily on interpersonal skills,
including taking initiative, integrity, honesty, collaboration, respect,
empathy, and confidence. These skills and attitudes can help
everyone adapt to the work and to each other, increasing the
likelihood of success.
• Engagement helps project teams detect, collect, and evaluate
information, data, and opinions. This creates shared understanding
and alignment, which enables project outcomes. Additionally, these
activities help the project team to tailor the project to identify, adjust,
and respond to changing circumstances.