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Clearing Up Some Misconceptions About the PMBOK Guide

Listening to PMP candidates, project managers, and students of management and project management,  I’ve learned that there are some misconceptions about what the PMBOK Guide is. Some think that it’s intended as a textbook on project management. Others think that it describes some kind of project  management methodology. Yet others have the notion that it’s meant as a study guide for the examination component of the PMP credential. Some even think that the PMP exam is on something called “PMBOK” (whatever that is) and that the Guide to the PMBOK is a study guide or textbook covering the topic of “PMBOK.”

I’d like to clear up some of the misconceptions.

The PMBOK Guide is a standard for the project management profession. Its intention is to serve as a guide to the body of knowledge within the project management community and as practiced by members of the profession. There is no single document that contains the project management body of knowledge. Indeed, some of it is not published at all but, rather, is simply recognized as good practices and norms within the profession. This body of knowledge is growing every day.

The PMBOK Guide is not intended to be used to learn project management or project management concepts. It’s especially not intended to teach or suggest PM techniques or methodologies.

It’s not a “how to” book nor is it a description of a methodology. It’s a standard, not a methodology. PM professionals and the organizations they work for can use the PMBOK Guide as a guide for developing their own methodologies or for creating organization standards.

It’s particularly important to understand that it is not a standard or specification for the examination portion of the PMP certification. For one thing, at least 30% of the material on the examination is not covered by the PMBOK Guide. (There IS an exam on the PMBOK Guide. It’s the CAPM exam, which only covers knowledge of the PMBOK Guide.)

While the PMBOK Guide only changes once every 4 years, the exam component of the PMP credential is constantly changing. Much of the material that showed up in the 4th (2008) edition of the PMBOK Guide has ALREADY been showing up on the PMP exam for several years – e.g., PTA, TCPI, etc. PMBOK Guide 4th edition came out in December, 2008, but these topics have been showing up on the PMP exam as early as 2006. The group at PMI that develops the standards (such the PMBOK Guide, the Standard for Risk Management, etc.) and the group at PMI that develops the the certifications and their corresponding exams (such as PMP, CAPM, PMI-SP, etc.) are two separate groups that DO NOT interface with each other. They are two separate groups. If anything, the standards group looks at the work that the credential group (PMP, CAPM) does and uses it as one of the many inputs for what they put into the standards such as the PMBOK Guide.

A reviewer on Amazon.com observed that there is a widely held notion that PMBOK = Project Management. I disagree with that observation. The false notion he observed is only held by those people who do not know what the PMBOK is. Also “PMBOK” is not the same as “PMBOK Guide.” PMBOK is an acronym for the Project Management Body of Knowledge. As I said, above, there is no single document that contains the project management body of knowledge. It’s simply the body of knowledge that is collectively known among practitioners,  academics and organizations who practice or research project management. The document known as the PMBOK Guide is simply a guide to that massive body of knowledge; an entry-point to further information and a standard for developing protocols, methodologies, techniques and practices within your own organizations and project management practices.

The PMBOK Guide is a reference work, not a text book or a study guide. It’s not meant as an introduction to project management any more than a volume of statutes is meant to be used as an introduction to the practice of law or the Physician’s Desk Reference (PDR) is meant to be used as an introduction to pharmacology for doctors and pharmacists. As with technical references for other professions (such as statute books for lawyers, clinical references for doctors, etc.), non professionals may find the PMBOK Guide difficult to follow and even dry. An experienced and trained project manager should find the PMBOK Guide perfectly understandable and not very difficult to follow. An experienced and professional project manager looking at the PMBOK Guide for the first time may find its format unfamiliar (at first), but he/she should find the material and the concepts in the document familiar (though organized in a way they may not be used to).

On the other hand, an entry-level project manager, or a non-project manager who is thrown into project management tasks may, indeed, find the PMBOK Guide difficult to follow and difficult to understand. This is not unlike a sophomore accounting student opening up a set of GAAP or IFRS guidelines and finding it hard to follow or finding the writing style very didactic and anything but light reading, while this would NOT be the experience of a certified CPA or an experienced accountant or financial professional.

Very important: The PMBOK Guide is not an I.T. text nor should it be considered part of the literature covering the topic of information technology. For some reason, the document is shelved in book stores along with I.T. books. It really should be shelved with books on management. In the same way, PMP examination study guides are also shelved next to I.T. books. The PMP credential is not an I.T. “cert.” In fact, it’s not even in the same class or category of “certifications” as technical and I.T. “certs.” The PMP is a professional credential, in the same category of certifications for other professions, such as accounting, law or medicine. Unlike I.T. “certs”, where the only requirement to earn the certification is the ability to make an appointment at the Prometric center and where the only criteria for earning the certification is the ability to pass a test, the PMP credential has experience, education, continuing education & professional contribution requirements. There is also a requirement to adhere to a professional code of conduct.

Because of the “cert” fever within the I.T. community and among I.T. workers, many non-PMs in the I.T. sector are pressured to add the “PMP” letters to their names. Recruiters are among those who create this pressure. Because they are not experienced project managers, these I.T. people are pressured into lying about their background and skills during the PMP qualification process — and getting friends to lie during the audit and vetting process. This may account for the number of (dishonestly earned) PMPs out there who may have the letters after their name (though they got those letters under false pretenses) but who are not really project managers at all. This is why people see a lot of “PMPs” who have no idea about what they are doing.

Project management is a profession. While there are many professional project managers out there practicing their profession, there are quite a lot of non-project managers who have been thrown into PM responsibilities and roles. While they do, indeed, hold a “job” as a “project manager” and are being asked to perform the tasks of a project manager (and may even have a title called “project manager”), they are not project managers. They’re just people who have been asked to do the work of project managers.

The PMP credential is not for people want to move into project management. It’s for people who ALREADY ARE project managers and have been for several years. The PMP credential verifies that the individual has the education, years of experience, professional training, adherence to a professional code of ethics, commitment to ongoing continuing education and commitment to ongoing contributions to the project management profession. The exam portion of the credential verifies that, in addition to all of the above, the individual has an understanding of the profession he/she has been practicing; that the individual knows that project management is NOT common sense and that he/she is not managing project by seat of his/her pants or via intuition; that the individual understands that sound project management is based on the past experiences of other members of the profession, based on research and sound empirical (scientific) study; that the “art” and practice of project management is based on science, not intuition.

Finally, as to the question “what would be the best alternative book”: there is no alternative. The PMBOK Guide is the accepted global standard and the recognized guide to the project management body of knowledge. That’s all it’s intended to be and it serves that purpose well. It’s not the end to all ends. The members of the project management profession who contributed to the document did not aspire to cover all there is to know about project management. It’s not perfect and it’s constantly changing (every 4 years) as the profession continues to grow and mature.

You can (and should) supplement the PMBOK Guide with other PMI standards and frameworks — e.g., The Standard for Program Management, The Project Manager Comptency Development Framework, The Practice Standard for Work Breakdown Structures, etc. There are supplemental standards and frameworks developed by other professional and academic organizations as well. However, as the GUIDE to the “body of knowledge” within the profession, the PMBOK Guide is the standard. There are other books and sources on other topics of project management, including sources on methodologies, leadership, PM tools, general management, the management of people, budgeting, scheduling, quality management practices, organizational behavior, etc. as well as industry specific literature on project management, such as marketing project management, I.T. project management, construction project management, research & development project management, etc. However, such topics are outside the scope and purpose of the PMBOK Guide. Of course, since anywhere from 60% – 70% of the material in the examination portion of the PMP certification either comes directly from the PMBOK Guide or requires understanding of the concepts in the PMP Guide, a knowledge of the material in the document is important to anyone who is planning to sit for the exam. So, while the PMBOK Guide is NOT a study guide for the exam and is not intended to serve as such, familiarity with it is an important part of both practicing the PM profession as well as earning the profession’s certification.

For more information on the relationship between the PMBOK Guide and the PMP Credential, see:
Is studying the PMBOK Guide enough to pass the PMP certification?

High-level View of Project, Program, and Portfolio Management

In part 1 of this series, we defined the P3MO as an acronym for “Project, Program, and Portfolio Management Office.” It’s based on the concept of a PMO (project management office)  elevated to cover project portfolio management as well as project and program management. In part 2 we will discuss the relationship between the three components of the P3MO: project management, program management and portfolio management.

Project management ensures the successful completion of initiatives and their associated deliverables within the time, scope and cost parameters agreed to by the end-users of the product, service or result. The project manager manages stakeholder expectations and communication between all team members and stakeholders.

P3MO Relationship Venn - Click on image to enlarge

Program management provides overall leadership and vision to the project management process. The program manager is responsible for delivering value to the community of stakeholders.

Portfolio management aligns the portfolio of projects and other work with the objectives of the organization and ensures that the work delivers value to the business.

The relationship between projects, programs and portfolios

Portfolios are made up of projects, programs and other work. (Other work includes on-going operations, ad-hoc activities and other “business as usual” work.)

The diagram, above, represents a typical portfolio structure.

Where needed, sub-portfolios are possible, in which case they would each be consolidated up into the parent portfolio for the purposes of portfolio optimization, strategic alignment and financial control.

Projects that share a common benefit or serve a common business unit or market may be collected into a program. For example, projects supporting an enterprise-wide directive from the board of directors, such as the acquisition of a new operating company, could be managed as a program. Other examples would be a group of projects serving a single market or geographic region; or the collection of projects supporting the roll out of a new product or service.

A good rule of thumb would be, if managing 2 or more projects together would result in benefits and control not available from managing them individually, then these projects should be managed as a program, with one individual (either the function head or an assigned program manager) accountable for its success.

While the nature of initiatives (projects and programs) is time-based with a defined start and end, the portfolio is on going, its mix of initiatives fluid and changing over time.

Coming up in December and January . . .

Part 3 – Realizing value from the P3MO

Part 4 – Implementing P3MO best practices

Part 5 – The three “pillars” of project success

My experience at PMI’s 2009 North America Congress was excellent and, as always, well worth the trip. I met and exchanged ideas with some of the top practitioners, researchers, consultants and authors in the project management industry.

There is no doubt about it. The benefits realized from a sound and well-organized project management methodology based on globally recognized project management standards have been well established. These benefits cannot be overstated. Organizations that make full use of the power of a project-focused environment gain a competitive advantage over those organizations that do not leverage this power. They also gain a competitive advantage over those organizations that publish an “official” project management standard but make little or no attempt to implement it or to make it a part of organizational policy. *

One of the hot project management topics at the Congress was the P3MO (project, program, portfolio management office). Another was that of “value driven project management”, the topic of Harold Kerzner’s closing session speech and the topic of his new book, co-authored with Frank P. Saladis.  An integrated project portfolio management environment (i.e., a P3MO) with a focus on driving business value represents the state-of-the-profession thinking right now. I can personally confirm that this approach is beginning to emerge out in the field. At my most recent client, a global life insurance company doing business on three continents, my colleagues and I recommended exactly this approach and delivered guidelines for achieving this. **

So what, exactly is a “P3MO.”  At first, my colleagues and I were hesitant about using this acronym. It sounds too much like “CP30″ from Star Wars and could be a candidate for a lot of jokes around the water cooler.

As it turns out, just as C3PO represented state-of-the-art “droid” technology, the P3MO, very much, represents  state-of-the-art project portfolio management (PPM).

P3MO is an acronym for “Project, Program, and Portfolio Management Office.” It’s based on the concept of a PMO (project management office), however it is elevated to cover project portfolio management as well as project and program management.

PMO’s are designed to support project managers, including, but not limited to:
• Establishing and maintaining project management guidelines, standards, policies and methodologies
• Monitoring compliance with project management standards and policies
• Managing shared resources across projects
• Guiding and coaching project managers and project team members
• Coordinating communications across projects, including communications with stakeholders and with the business

All PMO’s maintain the following objectives:
• Reduce Delivery Time
• Reduce Project Cost
• Reduce Delivery Risk
• Improve System Quality
• Improve Customer Satisfaction
• Manage Customer Expectations
• Define Standards and Methodologies

The P3MO takes the PMO function to the program and portfolio management level. It shares the objectives of a PMO with the following additional objectives:
• Integrating related projects into programs
• Identifying and delivering the stakeholder and business benefits of programs
• Working with executive management to identify and approve programs and align these programs with the goals and objectives of the business
• Integrating approved programs into one or more business project portfolios
• Providing guidance to the Steering Committee (or other governance body) and assisting them with optimizing portfolios to ensure continued alignment of initiatives and other work with business objectives; modifying the program/project “mix” as business objectives change
• Providing guidance, direction, training and coaching to project managers and program managers
• Maintaining communications with executive management

PMO’s can be categorized into three types:
1) Supporting PMO. Focuses on supporting projects through training, mentoring, administration and reporting. This type of PMO acts in a consultative capacity.
2) Controlling PMO. In addition to providing supportive functions, this type of PMO has a stronger influence on project delivery by offering controlling services, including implementation of standards and policy, and ensuring compliance with those standards and policies. They also conduct project reviews, audits, assessments and project governance.
3) Directive PMO. This type of PMO actually manages projects directly. In a Directive PMO, there is a pool of project managers who report to the PMO Director as their supervisor. This collects all of the project work within an organization to one department.

Part 2 -The relationship between the three components of enterprise project portfolio management.

Part 3 – Realizing value from the P3MO

Part 4 – Implementing P3MO best practices

Part 5 – The three “pillars” of project success

** My thanks to Mario Arlt, Vice President of Client Engagements at ESI International and to Oscar de Lucio of UMT Consulting for their captivating and enlightening presentations at the 2009 PMI Congress in Orlando.

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Project Manager is not just a title — it’s a profession.

With the current financial downturn, organizations are looking for ways to cut costs. In their haste, these organizations may make some mistakes concerning the value of project management.

First of all, many decision-makers mistakenly believe that project management is a luxury, an overhead expense that, in a pinch, can be done without. After all, it’s the team members who do the actual work, right? The PM is just an administrator, coordinator or status report writer.

Not True!!

Proven project management processes and practices can make the difference between the success or failure of an enterprise’s business strategy. Project management is more than just coordinating the work of others and reporting on their progress. Project management has protocols, methodologies and proven professional practices based on experience, consensus and scholarly research. There’s a big difference between being a general manager and being a project manager. Project management is a well-defined specialty within the management domain.

Then there is the very serious, but all too common, mistake of taking one of the more senior team members and giving that person PM responsibilities on top of or in addition to their regular, hands-on responsibilities. This would seem to save money. After all, you’re getting one person to fill two roles so there’s only one salary to pay. In addition, you’re paying the salary of a team member, not the higher salary of a professional project manager.

This is another big mistake!!

Regardless of the title of the person in the role, the role of project manager is a full-time role. Organizations who are looking to fill positions such as “PM/Business Analyst” or “PM/Technical Lead” are kidding themselves. This is like an airline looking to fill the position of “Pilot/Flight Attendant”, perhaps expecting the pilot to put the aircraft on auto-pilot while he serves beverages in the cabin.

The above two mistakes are well documented and pretty much accepted among the knowledgeable members of the professional project management community, so I won’t go into any more detail about them here. Rather, I’d like to point out that, with the pressures of the current financial conditions out in industry, there will be a lot of pressure on middle-management to save money. When you combine this with senior management’’s often very limited understanding of modern project management and the value of sound, proven project management processes, the result can be a reduction or even the elimination of the full-time PM role on projects.

The short-term benefits of this short-minded approach will be more than offset by the negative results in the long-term. Projects will fail and this will prove to be very costly at a time when managing costs is more important than ever.

Middle-managers who are unfamiliar with the necessity of professional project management may see this short-sighted approach as an easy way to comply with cost-cutting requirements. Middle-managers who do, indeed, understand the value of project management, but are worried about their own job prospects, may simply go along with senior management’s short-sightedness in order to preserve their own short-term employment prospects.

Just as having a full-time pilot on a commercial airline flight is essential to a successful flight, management at all levels must recognize that full-time project managers are essential to the successful execution and delivery of projects. Rather than remove pilots from airplanes as a cost cutting tactic, an airline will simply find other areas where they can cut costs — perhaps one less flight attendant. If they cannot find any suitable areas for cost cutting, the airline may simply decide to cut down on the number of flights or routes they will offer.

The same is true of organizations with on-going programs of projects. Removing the full-time PM role will only result in project “crashes.” Rather than going on with the projects without the PMs, the organization should identify other areas of cost cutting — perhaps stretching out projects across a longer schedule or removing non-essential scope. If this cannot be done, then the organization should review their programs and portfolios and identify projects that can be postponed or eliminated.

An airline would hate to have to cut out flights, but doing so is an acceptable way to cut costs. Continuing the flights while eliminating pilots is not!! In this tough financial climate, organizations may need to cut down on their projects. However, they cannot continue with their projects without full-time, experienced, project managers. This is simply reality.

Jerry Bucknoff, MBA, PMP

Welcome to our blog.  “Project manager” is more than just a title or a job description. Successful project managers practice project management as a profession. Our firm, pmbestpractices.com, provides project management consulting services, including project management methodologies, PMO creation and management, project and program management professionals for short to long-term engagement, and Project Management training (including PMP preparation).  Our blog is dedicated to furthering the project management profession.

In addition to our regular postings and articles, we encourage our colleagues in the project management community to contribute to the blog. If there are specific topics you like to see discussed, please drop me a line.

There are two categories of topics here: Main: General discussion about project management, PM best practices, PM maturity, program & portfolio management, project management careers, PM consulting and other PM topics. (The post you are looking at, right now, is in the Main blog category.) Project Management Professional Development: A special discussion category about PM Professional Development. This blog category has a sub-category for general discussion about PM professional development as well as a special sub-category for PMP certification.

So let’s get the conversation going!!!