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2 Project Management Life Cycle
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Learning Objectives
By the end of this chapter, you will be able to:
• Explain the importance of project governance.
• Identify the phases in the project management cycle.
• Describe the activities necessary to align and initiate the right
project.
• Discuss how to prepare the project management plan and
baseline documents.
• List the components necessary to execute a project plan.
• Identify the steps needed to monitor and correct work to meet
project objectives.
• Describe the process of closing and assessing a project.
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Introduction
Pretest
1. An organization’s top management, stakeholders, and
customers are involved in
governance of its projects.
a. True
b. False
2. Because no two projects are alike, each passes through a
different number of major
phases during its life cycle.
a. True
b. False

3. The primary goal of the initiation phase of the project life
cycle is to select the right
project to pursue.
a. True
b. False
4. Project teams should always seek to produce the highest
quality deliverable possible.
a. True
b. False
5. Careful attention to detail during the planning phase makes
executing a project easy.
a. True
b. False
6. The monitoring and corrective action phase of the project life
cycle involves looking
forward at the work ahead.
a. True
b. False
7. In the final phase of a project, the project team and manager
perform a financial audit
that accounts for all expenditures and assets.
a. True
b. False
Answers can be found at the end of the chapter.
Introduction
Have you ever been part of a project team that did not know
where it was—or where it was
going? While most projects go through predictable phases
toward completion, sometimes

team members get so involved in their own detailed tasks that
they lose sight of the whole
process. When this happens, projects can suffer because of a
lack of urgency. It seems that
there is no “flow” of work toward an end point, just a lot of
individual tasks getting done.
To avoid this situation, someone must be able to see the big
picture to ensure that tasks
are completed according to schedule and that the project
constantly moves toward its final
H1
sec_n sec_t
bar81677_02_c02_037-080.indd 38 9/9/14 12:52 PM
Section 2.1 Project Governance
deliverables. This process of shepherding the project along as
an integrated effort is called
governance. We will address this function in this chapter, along
with the various phases in
a typical project.
Now that you have an introductory view of the field of project
management, we will focus
on the project management process and its five major phases.
This chapter is an overview of
these broad, sequential phases of project management, each of
which adds value and content
to the project as it moves from initial concept to production and
delivery to the customer.

2.1 Project Governance
The concept of project governance is important because it
designs the system of project
phases and guides projects through the project cycle. Project
governance is the process of
leading and managing a project, including all supporting
processes and support systems to
ensure achievement of project goals. The project cycle is the
complete, sequential process
that projects go through from beginning to end, broken down
into phases. Project phases are
the steps or stages projects go through toward completion,
specifically initiation, planning,
execution, monitoring, and closeout.
Governance implies an enterprise-wide system directed by top
management to structure
processes, decision-making tools, and supporting functions that
serve project managers and
their teams. It is the overseeing function and can include top
management, stakeholders, and
even customers, since they often drive some project decisions
themselves.
Company or agency leadership determines project governance
through policies and pro-
cedures on how projects are to be handled. In more mature,
project-based organizations,
governance is an enterprise-wide activity, and the business of
producing and improving is
accomplished through projects. The organization supports the
project management process
through a support system and culture based on doing work
through projects. Such an organi-
zation would refer to project management as “the way we do

business.”
A project management office (PMO) is associated with
governance-type functions, including:
1. standards for project success;
2. project phase definitions and requirements;
3. guidance for project and phase-gate reviews;
4. procedures to resolve conflicts;
5. quality standards for deliverables;
6. communication and reporting requirements;
7. standards for organizing the project team, including a matrix
framework that relates
functional and project manager responsibilities; and
8. procedures for change orders and other kinds of changes in
project plans.
bar81677_02_c02_037-080.indd 39 9/9/14 12:52 PM
Phase 1
Initiation
Align and
kick off
the project
Phase 2
Planning
Produce

project
plan
Phase 3
Execution
Assign
and direct
work
Phase 4
Monitoring
Track
project
Phase 5
Closeout
Close,
evaluate,
and learn
Section 2.2 Project Management Cycle
The PMO serves top management as
well as project managers and teams.
Support to top management includes
analysis of project data, learning from
past projects, staff support to phase-
gate reviews at the end of each phase,
and keeping up with developments

and software systems in the field.
Phase-gate reviews are stopping points
at the end of each phase when manage-
ment takes a hard look at the progress
of the project and decides whether to
proceed to the next phase. The PMO
serves project managers with project
data, documentation, schedule and
budget updates, staff support to proj-
ect team meetings, and monitoring and
tracking information.
In organizations without a strong project management ethic and
no overall governance sys-
tem, project managers must handle project guidance, structure,
and processes themselves.
Although all the tools and techniques of project management are
available to these managers,
they face more difficult challenges without a supporting system
and culture.
2.2 Project Management Cycle
Figure 2.1 provides a view of the five basic phases: initiation,
planning, execution, monitoring
and controlling, and closeout and outcomes assessment. Before
discussing what goes on in
each phase, we will focus on why these phases are important
and how they add value to the
whole process. Each phase has a principle theme or purpose.
Figure 2.1: The project management cycle
The project management cycle is made up of five phases:
initiation, planning, execution, monitoring,
and closeout..

Phase 1
Initiation
Align and
kick off
the project
Phase 2
Planning
Produce
project
plan
Phase 3
Execution
Assign
and direct
work
Phase 4
Monitoring
Track
project
Phase 5
Closeout

Close,
evaluate,
and learn
Fuse/Thinkstock
Ensuring that products meet a specific standard is
just one form of project governance function.
bar81677_02_c02_037-080.indd 40 9/9/14 12:52 PM
Initiation Planning Executing Monitoring Closeout
Project Monitoring and Corrective Action
The purpose of each phase is as follows:
1. initiation: the early strategic planning and startup phase for
selected projects;
2. planning: the design, work plan, schedule, and budget;
3. executing and assigning the work: the process of authorizing
and carrying out the
work;
4. monitoring and controlling: the process of looking over the
work being accom-
plished, identifying variances from the plan, adjusting to
change, and taking correc-
tive actions; and

5. closeout and evaluation: closing out the project and
evaluating its performance in
terms of goals, planned outputs, and longer-term outcomes and
benefits.
Phase 4, monitoring or tracking project progress, actually
occurs throughout the project from
beginning to end, even though most monitoring occurs during
the execution phase. Figure 2.2
provides another way of showing the role of the monitoring
function.
Transitions from one phase to another focus on making sure the
outcomes of each phase—
marked by phase gates, or project reviews on performance to
date—are consistent with
plans and offer promise for the continuation of the project.
Although not every project will
go through all five phases and some project managers may not
be in charge for all of the
phases, top management typically stresses that no project can be
successful unless it goes
through the whole process.
Although the phases are typically completed in sequence, some
projects may conduct some
phases in parallel. For instance, planning and execution can be
conducted in parallel when it
is possible to implement early stages of the plan while later
stages are still in development.
In a project to design a new sports stadium, the design
architects and construction engineers
would collaborate to design and build parts of the stadium
together. As soon as designs are
drafted on a given portion of the stadium, the construction

engineers will begin to build it. The
execution and monitoring phases can be conducted in parallel so
that key execution tasks and
milestones are monitored as they are completed. When phases
are managed concurrently, it
is critical that there is constant communication between the task
leaders (those assigned to
tasks or in charge of those assigned to tasks) of both phases to
ensure effective coordination
and collaboration.
Figure 2.2: Project monitoring
Monitoring occurs throughout every phase, though a majority of
monitoring occurs during execution.
Initiation Planning Executing Monitoring Closeout
Project Monitoring and Corrective Action
bar81677_02_c02_037-080.indd 41 9/9/14 12:52 PM
Projects are managed through these phases, whether they are
performed by companies, non-
profits, or the public sector.
Phase Activities
Each project phase activity has a purpose tied to its overall
goal, and each is linked to the pre-
vious and subsequent activity. While this sequence is a model of
interdependence and seam-

less handoffs from one activity to another, it provides a wide
view and guiding framework
for actual work. No project will go smoothly through these
phases, but they provide some
structure to guide the process.
State Department of Health and Human Services Public
Sector Case Study
As you recall, Secretary of HHS Robert Mikawa, Performance
Officer Veronica Ramirez,
and Assistant Secretary for Programs Rebecca Dawson have
started the conversation on
how to equip the department with a management system that
will allow them to reduce
costs and control medical costs in their state. They have
determined that the biggest chal-
lenge is to install a cascading system that begins with strategic
objectives at the top and
integrates these objectives through the hierarchy down to
operations and product and
service delivery.
The group has been debating how to define their new system.
Mikawa and Ramirez are
arguing their points.
Ramirez wants to focus on middle management and its ability to
define and transition pro-
grams and projects that are aligned with the agency’s long-
range plans. She stresses the
need to get everyone in their agency on board if they want to
make a change to become an
agency that controls costs within their available budgets,
delivers specific products and
services, works to improve quality and performance

simultaneously, and evaluates pro-
grams and projects in terms of earned value. (Earned value is an
accounting of how much
work is done that is consistent with the original work definition,
cost, and schedule.)
Mikawa argues that they are not a corporation and need to keep
in mind their public expo-
sure. He reminds the group that HHS works through other
agencies and does not produce
anything that reaches customers directly.
Ramirez thinks that this can be managed by using the project
management phases: initia-
tion, planning, execution, monitoring, and closeout, along with
phase-gate reviews for each
phase completion. She wants to mandate this process to all
agencies receiving state and
federal health assistance so that everyone in the network HHS
serves is on the same page.
However, she concedes that it will be difficult with the public
exposure and they will be sub-
ject to criticism by anyone who opposes the project, regardless
of how it is managed.
Question for Discussion
1. Do you feel that using project phases will be helpful to HHS?
Explain your
reasoning.
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These phases follow the framework for project phases in the
Project Management Institute’s
(PMI’s) Project Management Body of Knowledge (PMBOK)
standards. However, this chapter
departs from the standard process by focusing more on the goals
and activities of each phase
and broadening the role of project management in the whole
process through which an orga-
nization plans its portfolios, or its investments in improvement
and growth; its programs, or
its broad sets of projects in each target area; and its specific
project deliverables.
Table 2.1 shows a summary of the phase activities. Note that
each phase has a major pur-
pose and is characterized by several typical activities. Some
projects will go through each
of these activities, but some will perform only those activities
relevant to that project and
its deliverables.
Table 2.1: Phase activities in the project cycle
Phase 1:
initiation
Phase 2:
planning
Phase 3:
execution
Phase 4: mon-
itoring and
controlling

Phase 5:
closeout and
evaluation
Purpose Choose and
shape the
right project to
position it for
success.
Produce a
project plan.
In carrying
out the plan,
build inter-
dependence,
accountability,
and quality into
the effort
Track progress
to make sure
the project is
going accord-
ing to plan
Assess lessons
learned.
Activity 1 Review stra-
tegic plan and
generate ideas
and concepts to
deliver on the

plan.
Define project
objectives,
scope, and
deliverables.
Direct initia-
tion of project
work, make
assignments,
clarify expecta-
tions, and clear
the path for
performance.
Develop proj-
ect tracking
and monitoring
approach.
Obtain
acceptance of
deliverables by
customers.
Activity 2 Generate a
portfolio of
investments,
programs, and
projects to
implement the
strategic plan.
Develop proj-
ect plan and

documents,
including
broad outline
of scope, time,
cost, quality,
communica-
tions, human
resources,
risks, pro-
curement,
information
systems, and
stakeholder
engagement.
Acquire neces-
sary project
resources, both
internal and
contractor.
Use past phase-
gate review
information to
control work.
Review project
budget and cost
information
and prepare for
final audit.
continued
bar81677_02_c02_037-080.indd 43 9/9/14 12:52 PM

Phase 1:
initiation
Phase 2:
planning
Phase 3:
execution
Phase 4: mon-
itoring and
controlling
Phase 5:
closeout and
evaluation
Activity 3 Develop criteria
for selection
and prioritiza-
tion of projects.
Develop work
breakdown
and task
structure.
Clarify project
objectives,
roles, assign-
ments, and
accountability

of the project
team.
Conduct fre-
quent review
meetings, tele-
conferences,
and group
discussions on
progress.
Conduct post-
project reviews
with team,
stakeholders,
and sponsors.
Activity 4 Select and pri-
oritize projects.
Develop inte-
grated project
schedule.
Enable and
empower
project team
to perform
through train-
ing, develop-
ment, and
incentives.
From monitor-
ing effort, iden-
tify changes in

project, orga-
nizational, and
environmental
changes requir-
ing action.
Archive project
data and
documents.
Activity 5 Define a
vision of the
project and
initial scope,
customer, and
business case.
Conduct cost
estimate and
budget.
Oversee
work and
identify gaps
in working
relationships.
Review con-
tingencies,
take corrective
action, focus
team on for-
ward view.
Close out
contract and

procurement
activity.
Activity 6 Select project
manager, team,
and charter.
Conduct risk
assessment
and risk
matrix.
Report on proj-
ect progress
and issues.
Counsel team
members on
performance
issues.
Conduct
lessons-learned
focus groups
and prepare a
report.
Activity 7 Identify stake-
holders and
align expecta-
tions with proj-
ect purpose.
Negotiate with
team and func-
tional leaders

on project
requirements.
Manage team
performance
and problems.
Prepare for
phase-gate
review.
Perform a
team assess-
ment and
identify next
assignments.
Activity 8 Conduct
phase-gate
review.
Conduct
phase-gate
review.
Conduct
phase-gate
review.
Conduct
phase-gate
review.
Tools and Techniques
Various project management tools and techniques are typically

applied in various phases.
For instance, in the initiation phase, projects are selected
through a portfolio process that
uses tools such as a weighted scoring model to compare and
score projects in terms of their
alignment with strategic objectives. A portfolio is a financial
term referring to a company’s
planned investments. A project portfolio process determines
what projects will be approved
and funded by the enterprise, creating a series of projects that
are characterized as the enter-
prise portfolio.
Table 2.1: Phase activities in the project cycle (continued)
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Section 2.3 Phase 1: Aligning and Initiating the Right Project
In the planning phase, a WBS is developed, defining the work
involved in producing the proj-
ect outcome. Also in this phase, a Gantt chart schedule is
typically prepared to serve as the
basic point of departure for executing, adjusting, and
completing sequenced tasks.
In the execution phase, work is actually authorized through a
work authorization process that
enables the team to proceed from task to task and phase to
phase. In the monitoring phase,
earned value calculations are made that measure the variation of
the actual work versus the
planned work in terms of schedule and cost. In the project
closeout phase, a lessons-learned

document is prepared from feedback on what did and did not
work in the project cycle.
2.3 Phase 1: Aligning and Initiating the Right Project
The initiation phase is intended to assure that the right projects
are selected. The underly-
ing assumption in this phase is that if a project does not evolve
out of a strategic planning
and budgeting process driven by the organization’s leadership,
its chances of succeeding are
lower than that of a project that comes from a structured
planning process.
Despite the tight budgeting, scheduling, and quality control
efforts in the project manage-
ment toolbox, ad hoc and unaligned projects—sometimes called
pet projects—face major
obstacles. In other words, the right projects align with the
organization’s plans and capacity
to produce. A project that has been conceived and shaped from
the parent organization’s
planning and phasing process—as well as an assessment of its
core competency and capacity
to perform and a phase-gate review after each phase—will
likely succeed. Good projects typi-
cally result from an analysis of the market or the customers and
clients it is intended to serve.
There are two subphases in phase 1 that ensure the right project
is selected: alignment and
initiation. Alignment activities confirm that projects are in line
with the organization’s plans
and goals, so they are better positioned to succeed. These four
activities include reviewing the
strategic plan; generating the portfolio, programs, and candidate
projects; developing criteria

for project selection; and selecting the project.
Initiation then begins in activity 5, as the project is identified
and fleshed out. This subphase
is when the project manager typically takes charge and where
the definition of the project
initiation phase begins in the PMBOK standard for project
management.
Activity 1: Produce a Strategic Plan and Objectives for the
Enterprise
As the PMI has acknowledged in its standards on portfolio and
program management, projects
should be aligned with the company’s strategic plan. The key
decision to proceed is a budgetary
commitment of the enterprise to fund the project at least
through its first phase, initiation.
bar81677_02_c02_037-080.indd 45 9/9/14 12:52 PM
A strategic plan reflects the results of a strengths, weaknesses,
opportunities, and threats
(SWOT) analysis, and the strategy identifies opportunities for
advancing the company’s goals
and ways to offset its weaknesses. The strategy aims to take
advantage of its opportunities,
addresses its threats and risks, and overcome or improve its
weaknesses.
The strategic plan outlines the longer term approach the
enterprise will take to address its

goals and objectives. Strategic planning identifies how the
organization is positioned within
its market arena to succeed. The plan reflects an understanding
of external and internal
forces that affect its performance and provides guidance to
shorter term, tactical actions,
such as programs and projects, to carry out the strategy
incrementally year-to year.
For instance, as an outcome of its stra-
tegic planning process, the Coca-Cola
Company could establish a goal of
increasing its market share in the
mobile bottle vending machine system
market. Its strategy might be to develop
a variety of new product concepts that
would deliver more variety in vending
options to the customer and in more
locations than the competition. That
strategy would be fleshed out in objec-
tives over several years and would be
funded in the budget system.
Remember that a strategic plan is a
broad look at how to achieve outcomes
that benefit the organization, whereas
individual projects are short-term initia-
tives that produce outputs and services.
The last phase of a project, closeout and
evaluation, focuses on two aspects of
the project: (a) whether the project achieved its goals in terms
of outputs, products, and ser-
vices, on time and within budget; and (b) whether the project
contributed value to the strategic
plan in terms of outcomes.

A project may have been managed well and achieved its
efficiency objectives but still not have
contributed to the organization’s strategic plan. For instance, an
aviation company could pro-
duce new aircraft cockpit instrumentation on time and within
budget, but the instrumenta-
tion could be found unacceptable in commercial aircraft because
of new federal regulations
that were promulgated after the project design.
Jewel Samad/Staff /AFP/Getty Images
The Coca-Cola Company has created very successful
strategic planning—especially in how it distributes
product to the consumer, such as through vending
machines.
bar81677_02_c02_037-080.indd 46 9/9/14 12:52 PM
The Links Corporation Private Sector Case Study
Although the Links Corporation leadership has determined that
the company needed to
move toward a stronger project management system, leadership
had not yet convinced
the workforce of the need to change. CEO Phillip Johnson and
HR VP Sheila Chen discussed
the situation and agreed to begin the strategic planning process
by holding meetings with
the board to get feedback and to design a plan for change that
would be brought to the
workforce.

Some Background
The company had determined the need for change during a top
management planning
process that looked into the future in terms of global markets
and economic developments,
as well as the company’s capacity to respond and stay ahead of
the competition in meeting
new demand.
The company had produced a strategic plan along with
objectives and was in the budgeting
process, selecting and funding major programs and projects for
improving its position in the
market for the 2014–2015 period. A total of $5 million
remained available for projects during
this period.
The company identified five major strategic objectives:
1. Improve its capacity to produce new products in the
transportation field.
2. Increase its profitability in production and manufacturing.
3. Improve its productivity through a focus on new processes.
4. Improve its workforce morale and energy level.
5. Identify new customers in emerging markets.
The company generated five major projects that focused on
moving toward these objec-
tives, but found in the process that there were major questions
about whether the com-
pany was positioned to carry out these funded projects with its
current workforce and key
business processes.

Given its strategic planning and SWOT analysis, the company
saw that it had strong market
share in the production of aviation instrumentation in
compliance with federal regulations
and standards but was weak in innovation and new products. It
had not extended its core
competency in instrumentation to other fields and markets, even
though the opportunity
was there. Company leadership decided to halt funding new
projects until it determined how
capable it was of producing them.
In moving toward a new core competency in project
management, Chen determined that the
process needed to be defined and described. This led to a short
planning effort that produced
a five-phase project life cycle to demonstrate how the company
was going to move new
improvement projects through from initiation to final project
closure and delivery, including
phase-gate reviews. Chen and Johnson then created a
presentation of this life cycle to present
to the board.
Question for Discussion
1. Why do you think the company has determined that its ability
to produce new,
innovative products would be enhanced through the use of
project management and
project teams?
bar81677_02_c02_037-080.indd 47 9/9/14 12:52 PM

Activity 2: Generate a Project Portfolio, Programs,
and Candidate Projects
Programs and projects are shorter term, tactical initiatives that
work in combination to move
the enterprise closer to its strategic objectives. A program is a
broad framework for several
projects that are focused on the same strategic objective.
Once a strategic plan is developed, programs and projects are
generated to implement the
plan. This is accomplished by addressing the strategic
objectives with broad initiatives that
are translated into programs and specific projects.
For example, a program of projects to implement the Coca-Cola
Company’s strategic plan
could include:
1. a market research program aimed at understanding future user
needs, with several
associated projects;
2. a new product development program aimed at developing
three separate, highly
interactive vending systems and projects; and
3. a new hiring program aimed at improving its internal capacity
to engineer and test
new products.
The specific projects in this line of planning are the focus of
this book, but it is important to
see projects as manageable, temporary, and team-based

initiatives that deliver on the goals
and objectives of the enterprise. Projects are short-term,
controlled efforts of work to pro-
duce new products and facilities, improve the way the company
operates, or carry out its
core business. No project operates as an isolated activity in a
project-based organization; it is
connected to other efforts and calls for a high degree of
collaboration and coordination within
the enterprise.
Activity 3: Develop Criteria for Project Prioritization and
Selection
Still in the subphase leading up to selection and initiation of a
project, this activity develops
standards for an organization to use in separating out the
potential projects from those that
have less promise. While the content of this process is highly
specific to a given industry, there
are generic issues involved. Four major standards may apply:
the business case, alignment,
enterprise capacity, and financing.
The Business Case
This standard measures a project in terms of value added, using
an indicator of project-produced
revenues and profitability for a private sector enterprise and
project-produced benefits and
social outcomes for a public nonprofit agency. The business
case must be made for each project
to assure that it contributes value to the goals of the
organization. Measures in the business case
are also used in phase-gate reviews. Business value is analyzed
using revenue and benefit projec-
tions that will be explained in more detail later in this book.

bar81677_02_c02_037-080.indd 48 9/9/14 12:52 PM
Alignment
This standard aligns the project with the organization’s goals
and strategic plans. A project
may have value, but it should be connected to the organization’s
plans to increase its likeli-
hood of success. Alignment is measured by a model that scores
the project compared with
a ranking of strategic objectives. In this case a project is given
a score from 1 to 10 based on
how well it is aligned with the company’s strategic objectives.
If a project does not relate at
all, it receives a score of 0; if it is a critical activity in
achieving the objective, it receives a 10.
Enterprise Capacity
This standard measures the organization’s capacity to
successfully produce the project out-
put and outcomes, given its past history and performance in the
field appropriate to the
intended outcomes.
Financing
If several candidate projects exceed the standard for
implementation but the organization
cannot afford to fund them, then they cannot be selected.
Therefore, a major standard is the
budgeting process that identifies available funds for investing in
projects and establishes a
cutoff point based on financing.

Activity 4: Select and Prioritize the Project
Using these four measures and other measures tailored to the
industry or agency, projects are
selected for implementation. Examples of these additional
measures tailored to a particular
industry might include:
1. government health regulations and extent of risk involved for
a health services project;
2. availability of labor, new building codes and planning or
zoning issues, and availabil-
ity and cost of construction equipment for a construction
project;
3. prospect of security and patent problems, competition, and
business risk for a new
product project; and
4. technical feasibility, government regulations, and data-
security issues for an IT project.
This subphase begins the project initiation process described by
the PMI in its PMBOK stan-
dards, which includes the selection of a project manager and the
creation of the project
team. The assumption is that the designated project manager for
a selected project may
not have been party to the original inception of the project in
subphase 1. In this case the
project manager is expected to review the documentation
generated by the subphase to
gain insight into how and why the project was selected for
execution. Much of this data will
be relevant to how the project is initiated and is useful in

setting project goals (which are
the intended results of a project in terms of quality, cost, and
schedule) and objectives that
align with its history.
bar81677_02_c02_037-080.indd 49 9/9/14 12:52 PM
Activity 5: Develop Project Goals, Vision, Scope, and Charter
This activity may or may not include a project manager and
team, depending on when they
are chosen. But the three elements of this subphase are
important in setting project goals,
boundaries, and expectations of the project.
The project vision is a statement by the organization leadership
about how the project,
through its products and outcomes, is expected to contribute
value to the organization. The
vision is not simply that of the project manager but of the whole
organization.
For example, a project vision for a digital health system project
might be:
This project will produce a new digital health system model and
a set of global
standards to apply to the model that all health agencies can use
to provide a
paperless health records system that would be recognized and
used through-
out the world.

The project charter is top management’s authorization to
proceed; it is the mandate or
“charge” to the project manager and team to accomplish their
goals. The charter gives the
project legitimacy and eligibility for company resources and
process supports. It also pro-
vides the team with a sense of the project’s boundaries.
A project charter for a digital health system project might read
something like:
This digital health system project is a key element in the
company’s strategic
objective to establish itself as the designer and developer of the
first global digi-
tal health records system model. This project therefore is a
pivotal part of the
company’s financial and market goal for the next several years.
The project is to
include the design of a health records information system
framework, includ-
ing all necessary components, platforms, software, and network
connectivity.
The project also includes an installation process that can be
used to install the
system into any compatible health records system at all levels,
such as health
professionals, clinics, hospitals, health insurance companies,
and government
medical offices. The system is to be secure, meeting the
standards of the national
cybersecurity task force recommended criteria for broad health
systems.
The project scope of work describes the work to be done to

complete the project. It defines
the project tasks, activities, phases, and deliverables and
defines the requirements for cus-
tomer approval. The purpose of the scope is to define the work
expected to produce the
required deliverables within schedule and budget constraints. In
defining the work, the scope
also draws the boundaries of the project so that it is clear when
work actually being done on
the project will exceed the work included in the scope. When
work exceeds the scope and
risks cost overrun, it is called scope creep.
A project scope might read something like:
This project will include all health records of all patients
covered by any kind
of insurance system but will not include patients without such
insurance.
The latter patient record system will be established as follow-on
activity to
bar81677_02_c02_037-080.indd 50 9/9/14 12:52 PM
this project but is not included in this project. The scope of
work includes all
developmental and design activity to produce and install
prototype hardware
platforms, software, network accessibility, and electronic
systems necessary
to support a global network. The scope does not include any
work to design,

develop, or install digital health record systems for institutions
or for health
professionals who are uncertified by the American Medical
Association and
the U.S. Department of Health and Human Services.
The statement of work provides details on the work to be
accomplished to meet customer
requirements. It is typically designed for contractors as a
contractual document. Contractors
are responsible for performing the statement of work that is
made part of the contract.
A project statement of work might read something like:
The contractor will design and develop a network system to
facilitate exchange
of information on a digital health records system, including but
not limited to
all platform, broadband, software, hardware, satellite, cable,
and connection
equipment to serve mobile phone, business system, and
residential personal
computers and tablets.
Activity 6: Select a Project Manager and Team
Recall the qualities of a good project manager from Chapter 1.
They include:
• leadership: vision, interpersonal skills, and the capacity to
influence behaviors and
work performance;
• motivation: understanding motivation and the ways that
individuals can be

motivated;
• understanding organizational culture: understanding that the
values inherent in
what is acceptable behavior in the organization drive
performance to a certain
extent;
• understanding values: the beliefs and standards held by the
individuals in the orga-
nization. Project managers must instill in their project teams the
values of project
management, discipline, control, predictability, open
communication, efficiency,
quality, agility, and interdependence;
• experience in job design: focusing on real tasks, not artificial
job descriptions;
• resolving conflict: the ability to address conflict; and
• good communication: the ability and willingness to
communicate honestly.
Companies and agencies will vary in determining at what point
in the project cycle a project
manager is selected. Typically, a project manager is not selected
until the early stages of phase 1,
initiation. Most project managers are not active parties in the
early strategic planning and analy-
sis that ideates and generates the project, although they may be.
The project manager should
have the following credentials:
1. practical experience leading and managing a project team;
2. technical familiarity with the project processes and outputs;
3. strong leadership, interpersonal, and problem-solving skills;

bar81677_02_c02_037-080.indd 51 9/9/14 12:52 PM
4. working knowledge of basic project management tools,
including application of
database packages such as Microsoft Project® or another
project management soft-
ware program; and
5. demonstrated capacity to control project work and focus on
producing project deliv-
erables on time, within budget, and in line with customer
requirements and quality
standards.
Project managers should not simply be
technical experts; they must have the
capacity to lead and manage people
and processes.
The project team is typically selected
after the project manager is chosen.
The process of selecting members of
the team starts with a high-level WBS
and description of the project process
tailored to the target products and ser-
vices in the project. The work itself is
broken down first in order to popu-
late the team with specialists, techni-
cians, professionals, and support staff
capable of doing the technical work
inherent in the project and their task
assignment.

Activity 7: Identify and Engage Stakeholders
Stakeholders are the key clients of the project; those people and
institutions with a stake or
investment in the success of the project. The network of
stakeholders in a complex project
can be formidable. For instance, for a major building
construction project, the stakeholders
might include:
• suppliers of construction materials,
• current and prospective owners of the facility under
construction,
• local and state building code officers and personnel,
• investors in the company managing the project,
• unions and employee associations involved,
• trade associations promoting specific materials in the
construction process,
• construction safety officers and government safety
organizations,
• land-use and zoning interests associated with the location and
setting of the facility,
• emergency responders in the local fire station serving the
facility, and
• representatives from Americans with Disabilities Act interests
targeting handi-
capped accessibility.
This initial listing shows that there are many interests in any
project, all of which have a direct
interest in how and when this project is completed and who will
actively voice their opinions
throughout the process.

mediaphotos/iStock/Thinkstock
A project manager should have the technical skills
to understand the project, such as the ability to read
and comprehend building plans.
bar81677_02_c02_037-080.indd 52 9/9/14 12:52 PM
Section 2.4 Phase 2: Planning
Activity 8: Conduct Phase-Gate Review of Phase 1 Outcomes
As indicated previously, every project should incorporate a
checkpoint at the end of each
phase to enable an enterprise-wide view of how things are going
and whether to proceed to
the next phase. This checkpoint is typically called a phase gate,
or sometimes a stage gate. It
requires a formal assessment conducted by the project manager
and top management offi-
cials, including the project sponsor.
In preparation for the review, the project documentation is
completed for phase 1 and made
available to all participants in the phase-gate review. Important
input documents for this
review are project vision, scope, charter, and an assessment of
the project team capacity to
proceed to planning.
Changes in the agency strategic planning and scanning are
reviewed. The major function of
this phase-gate review is not the performance of phase 1 as
much as the extent to which the

project is still aligned with the external factors inherent in the
strategic plan. This means that
the effort to align, select, and initiate the project in phase 1 was
based on the strategic plan
and objectives that were generated by the SWOT analysis. Have
those forces changed or did
new developments in the external world or internal to the
organization occur during phase 1
that might change the basis for the phase 1 process?
Other questions in the review include:
• Did the project identify the right project; is it aligned with the
organization’s strategic
plan and long-term goals?
• Did the project produce a project vision, charter, and scope?
• Were the project manager and team composition determined?
• Did the project identify the project stakeholders?
• Does the project appear to have value to the organization; will
it help sustain and
develop the organization based on its vision, charter, and scope?
• Finally, should the project be authorized and funded to
proceed to the planning phase?
In sum, the initiation phase prepares a project for detailed
planning and execution by making
sure it is aligned and consistent with the business plan and has
the potential for success. This
is also where projects are terminated because they are not
aligned, not well thought out, or
cannot be funded.
2.4 Phase 2: Planning
This phase involves the preparation of two kinds of plans: (a) a

project management plan
that outlines how the project will be managed, and (b) the actual
project plan and baseline
documents that guide the team, including the definition of
requirements, outputs and deliver-
ables, WBS, schedule, budget, risk management plan, and other
content documents.
The project management plan addresses how the project will be
managed and delivered. It
includes all plans and baselines, or the basic core activities in
the project. Its main audience is
the project team, functional managers in the organization whose
support is required, and the
bar81677_02_c02_037-080.indd 53 9/9/14 12:52 PM
company’s top management, and it explains how they are to
collaborate in order to complete
the project. The plan includes the process of producing the
project goals, charter, scope of
work, requirements, schedule, cost estimate, quality control,
risk assessment, procurement
and contracting, and stakeholder communication. It also covers
the review and change man-
agement process, team assignments, and how documentation
will be handled.
The baseline documents address the content, or the actual
project plans to be included in the
project management plan:

1. The scope of work
2. The work breakdown structure
3. The project schedule
4. The cost estimate
5. The risk assessment
6. Change management procedures
The project plan includes the substance of the work, or the key
deliverables, how the deliver-
ables will meet customer functional and quality requirements,
how the project work will be
accomplished technically, and how the work will be integrated,
tested, and delivered.
Activity 1: Define Project Objectives, Scope, Risks, and
Deliverables
The project objectives are derived from the alignment of the
project to the organization’s
strategic plan. Objectives are stated in terms of how the project
will measure success or what
criteria will govern assessment of the project.
For instance, in a construction project, the project objectives
might read something like:
The objective of this project is to design and build a four-story
office building
that meets customer requirements and is consistent with the
final design and
engineering drawings and metrics for the project and that meets
or exceeds
applicable building and land-use zoning codes. The facility is to
be completed
in 30 months at a cost of $55 million. The final building will
house a variety

of technical organizations and will meet the requirements of
each in terms of
space, wiring, ventilation, decor, and general functionality.
Scope
The scope developed in phase 1, activity 5, is outlined in more
detail in this stage and incorpo-
rated into the project plan. The scope will then be disseminated
to the team, top management,
and key stakeholders to get consensus on the boundaries of the
project and what work will
be done.
Risk Management Plan
The risk management plan is prepared to describe the process
used to assess risks. It covers
the process of documenting project risks and producing plan
elements, including a qualitative
bar81677_02_c02_037-080.indd 54 9/9/14 12:52 PM
risk analysis (a prioritized listing of risks based on severity and
probability for more in-depth
analysis), a quantitative risk analysis (a numerical analysis of
the impact of the risks identi-
fied), and a plan for controlling risks (actions to track, reduce,
and evaluate risks and threats).
Risks are to be identified, assessed, and organized in a risk
matrix, or risk register. The risk
matrix is a handy tool to sum up the results of risk analysis. It
identifies all project tasks

that pose a potential risk, or a possibility of failure, then
describes the risk associated with
each task, the probability that it will occur, its impact on the
project, its severity in terms of
its potential damage to the project, and finally a series of
preventive actions or contingency
actions to mitigate the risk. The actions are fed back into the
scheduling activity as contingent
tasks to assure that they are included should the issue occur.
Deliverables
Deliverables are project outputs, such as documents, services,
physical products, plans, and
specifications, inherent in the customer’s requirements. These
are the key outputs of the proj-
ect that create value for the customer and are typically
identified in the project schedule as
key milestones and final outcomes.
Activity 2: Develop a Project Management Plan
This activity creates a project management plan that defines the
project process and the
expectation for how the team is to collaborate to complete the
work. This plan provides the
standard of excellence for the project team and its functional
staff. Its focus is management,
including project administration, schedule, resources and costs,
company or agency pro-
cesses, information system support, task integration and
handoff, team performance, change
procedures, meetings and information exchange, and product
quality.
The plan is a living computer file, not a static hard-copy plan. It
is a series of files in a project

folder that are available to all team members in a network
environment. As a digital file or
series of files, the project plan is flexible and provides a
procedure for change requests that
can be initiated by any team member.
Project Administration
This file includes procedures for addressing job and task
descriptions, performance appraisal
and feedback, budget, procurement, scheduling, and employee
support and recognition. It
identifies how team members are expected to perform in terms
of their jobs and their interac-
tion with other team members, applicable human resource
policies and procedures that will
apply to the project, and budget and scheduling requirements.
Schedule
The final project schedule is a separate file, typically in
Microsoft Project® or a similar project
management software program, that can be accessed by team
members, along with a feed-
back process to allow team members to identify schedule
changes and impacts.
bar81677_02_c02_037-080.indd 55 9/9/14 12:52 PM
Resources and Costs
Final budgets are integrated into the schedule, so that each team
member can see all costs asso-
ciated with their tasks in the cost estimate and how variances in
those costs can be recorded.

Processes
The plan addresses how company processes such as test
systems, network systems, and pro-
curement processes are to be handled.
Task Integration and Handoff
Here the plan addresses the importance of team performance.
Each team member must keep
other colleagues informed of how work is progressing and make
them aware of any changes
in due dates and handoffs from one task to another in the
sequence of interdependence built
into the schedule.
Information System Support
This section addresses how and where data and information will
be accessed, as well as asso-
ciated network issues such as access from mobile devices and
tablets. This process involves
making sure all team members have access to all relevant
project data but also that the data
is secured through a computer security system.
Team Performance, Meetings, and Information Exchange
Here the plan addresses how teams will communicate through
conventional and virtual meet-
ings, teleconferences, and other systems. Ethical codes of
conduct are also included to ensure
that all team members understand the importance of honest
progress reporting as well as
company policy and procedures on proprietary information and
cybersecurity.
Change Procedures
Given the inevitability of change in the dynamic environment of

a complex project, the pro-
cess of change and change requests or orders is addressed. A
process for internal changes and
customer- and contractor-based change orders is provided.
Product and Work Quality
Project team members constantly face difficult decisions on how
much quality to build into
project deliverables. Quality is defined in terms of company
standards and customer require-
ments. Company standards are typically derived from industry
standards on such activities
as software development, electrical engineering, and publishing.
Since the project does not always call for this highest standard
in a given deliverable, but
rather the standard required by the customer, team members are
reminded that achieving
higher-than-necessary quality can be expensive and even lead to
unacceptable deliverables,
given customer expectations (Studer, 2013).
bar81677_02_c02_037-080.indd 56 9/9/14 12:52 PM
Activity 3: Develop a Detailed Project Plan, Including WBS,
Task
List, and Schedule
Project organization includes many of the traditional project
planning and control steps, sim-
plified for practical use. While this procedure can be handled by
project management soft-

ware, it is useful to go through the process by hand to
understand how it can be useful in
thinking through the project in the planning phase.
Organizing a project from scratch involves five basic steps:
1. Work breakdown structure
2. Task list with estimated durations, linkages, and resource
assumptions
3. Network diagram
4. Time-based network diagram
5. Gantt chart schedule, which will be discussed in Activity 4
Work Breakdown Structure
First level. The first step in defining the work necessary to
produce the deliverable is to com-
plete a WBS from the top (the deliverable) down to the third or
fourth level of tasks. Microsoft
Project® and other project management software programs
provide a convenient template
for building the WBS, which translates to the project work
outline in the Gantt chart. The top
of the WBS is the first level of this organization chart of the
work. It is the final product or
service of the project, up and running and accepted by the
sponsor, client, or user.
Second level. The second level across the organization chart of
the deliverable includes the
five or six basic chunks of high-level work that serve as the
basic components of the project;
the summary tasks that are integrated at the end of the project to
complete the job. For a soft-
ware project, these chunks might include hardware platform,
software, interfaces, training
program, and financing. For a building project, these chunks of

work might include the basic
blueprint, foundation, wood supplies and carpentry, ventilation
systems, water, and electrical
systems. For a health management system, they might include
the clinic population, health
information system, medical personnel, space, and equipment.
Third level. The third level breaks down each of the five or six
summary tasks into two or more
subtasks that are necessary to complete to produce the second-
level summary task. For a build-
ing project, under blueprint summary task, this might include
three tasks: Hire an architect,
prepare a preliminary blueprint, and check against the trade
association’s template blueprint.
Fourth level. The fourth level is an extra level of detail on the
third level. For instance, for the
hire an architect task, this might include a number of finer
tuned tasks necessary to accomplish
that objective: Build a list of candidate architects, develop the
criteria for selection, screen can-
didates, interview candidates, conduct reference checks,
compile candidate information, dis-
tribute candidate information, convene a meeting, and conduct
the process of selection.
It is this last level of task that is used to create the task list, or
the work assignments that will
be necessary to identify and schedule before the work can
begin.
Figure 2.3 shows a sample task list, and Figure 2.4 shows a
sample work breakdown structure.
bar81677_02_c02_037-080.indd 57 9/9/14 12:52 PM

50
6
25
30
3
35
3
3
40
100
20
100
50
50
40
50
C
A
E
D

B
F
G
H
A
0
B
A
0
C
F
E, G
Screen candidates
Build candidate list
Reference checks
Interview candidates
Define criteria for selection
Compile information
Distribute information
Conduct selection process
ID Task
Duration
(total estimated

elapsed time) (weeks)
Resource
(percent assigned)
Predecessor
(linkage or
dependencies)
Task List
To document the tasks to be completed in the project, it is
helpful to prepare a task listing and
update the listing each time a new or updated task is identified.
The task list in Figure 2.3
includes tasks that a human resources department found
necessary to complete a high-priority
executive hiring process. The tasks start with a listing of
candidates followed in sequence by all
the tasks necessary to complete the hiring.
Here it may be useful to provide a word about estimating task
durations. The process is not
easy and can complicate a project if not done carefully. Since
the duration of a task is depen-
dent on the resources applied to it, project managers need to
know resource availability and
assignments before they can estimate duration.
The logic of the process is the following: If 4 people can
complete a task in 5 days, then 8 peo-
ple should be able to complete that same task in half the time,
or 2.5 days. However, this logic
does not always work, because it cannot be assumed that
doubling a task staff increases the

productivity of that staff by 100%. This is because each task
staff member will have a different
capacity to do the job and a different pace for completing it.
Also, different combinations of
task members will perform differently as a team.
The key here is that task duration estimates must take into
consideration what resources are
to be applied to that task and who will be assigned to the task;
thus, resources (people and
supplies) must be estimated before a task duration can be
estimated and before the overall
project cost estimate is conducted.
The purpose of the task listing is:
• to serve as the basic definition of the work required of each
task, consistent with the
definition of work in Microsoft Project® (Work = duration ×
resources), or another
project management software program;
• to serve as the basis for the network diagram, each task will be
an arrow in the net-
work diagram; and
• to serve as the first opportunity to identify high-risk tasks.
Figure 2.3: Sample task list
This task list shows all of the steps, in sequence, that a human
resources department will need to take to
fill a position.
50

6
25
30
3
35
3
3
40
100
20
100
50
50
40
50
C
A
E
D
B
F
G
H

A
0
B
A
0
C
F
E, G
Screen candidates
Build candidate list
Reference checks
Interview candidates
Define criteria for selection
Compile information
Distribute information
Conduct selection process
ID Task
Duration
(total estimated
elapsed time) (weeks)
Resource
(percent assigned)

Predecessor
(linkage or
dependencies)
bar81677_02_c02_037-080.indd 58 9/9/14 12:52 PM
Build
candidate
list
Conduct
selection
process
Define
criteria
for
selection
Screen
candidates
Interview
candidates
WBS:
Hire Key
Executive
Reference
checks

Compile
information
Distribute
information
Phone calls
Web search
Review job
List qualifications
Priority list
Meet them
Full interview
Find early jobs
Write evaluations
Get feedback
Send out evaluations
Select and offer
Figure 2.4 is a sample WBS for this project, with two levels of
tasks shown. Note that the
high-level tasks are dependent on the subtasks at the next level

down before moving on to
the next task. For instance, to build a candidate list, you must
first make phone calls, con-
duct a web search, and so on.
Figure 2.4: Sample work breakdown structure
The work breakdown structure shows the lower level tasks a
human resources department must take to
fill a vacancy. See how the subtasks “phone calls” and “web
search,” when completed, “roll up” to the task
called “build candidate list,” leading to the next task, “define
criteria for selection,” that starts with a
lower level task, “review job,” and so on..
Build
candidate
list
Conduct
selection
process
Define
criteria
for
selection
Screen
candidates
Interview
candidates

WBS:
Hire Key
Executive
Reference
checks
Compile
information
Distribute
information
Phone calls
Web search
Review job
List qualifications
Priority list
Meet them
Full interview
Find early jobs
Write evaluations
Get feedback
Send out evaluations

Select and offer
bar81677_02_c02_037-080.indd 59 9/9/14 12:52 PM
Project
initiation
Project
completion
Task A =
6 days
Task C =
50 days
Task D =
30 days
Task B =
3 days
Task E =
25 days
Task F =
35 days
Task G =
3 days
Task H =
3 days

Network Diagram
After identifying the basics of this summary task, a network
diagram of the summary task is
created. A network diagram is done with arrows and shows how
each task is connected to the
one that precedes it and that follows it. This linkage of tasks is
called a task dependency. The dia-
gram shows each task as a line, connected to the next task that
follows it, and so on. The length
of the lines is not related to the duration of the task. When tasks
are linked together through the
project, the whole sequence of tasks is called a path. There may
be several paths in a project.
In Figure 2.5, you can see that task A and task B start the
project off at the same time. Task A
is followed by task C, then F, then G, then H. The path is
described by the tasks linked in it; for
example, A, C, F, G, H. Other paths in the project are A, D, G,
H and B, E, H.
Project Paths
Of all the paths in a project, one will be critical; that is, all the
tasks in that path must be completed
on time or the project will be late. The critical path will have
the longest string of linked tasks
in the project. Project managers try to avoid delaying any tasks
on the critical path because any
delay in those tasks endangers the project’s ability to produce
its products or services on time.
Paths that are not critical have slack; that is, tasks in that path
can be delayed without exceed-
ing the duration of the critical path. Thus, there is some

flexibility—or slack—in the dates
tasks in that path are finished. In order to calculate the critical
path, you need to know the
Figure 2.5: Network diagram
The network diagram shows each project task as a continuous
line or arrow, connected to tasks that
precede it and follow it. The diagram helps show what tasks are
dependent on what other tasks before
they can start. This figure illustrates the possible paths to a
project’s completion. Note that the dummy
activity does not produce progress toward the project’s
completion..
Project
initiation
Project
completion
Task A =
6 days
Task C =
50 days
Task D =
30 days
Task B =
3 days
Task E =
25 days

Task F =
35 days
Task G =
3 days
Task H =
3 days
bar81677_02_c02_037-080.indd 60 9/9/14 12:52 PM
24
A G H
B
C F
D
E
Weeks
48 72 96
durations of each task in each path. Below are the durations of
each task so that the paths can
be added up to find the critical path.
A = 6 days
B = 3 days

C = 50 days
D = 30 days
E = 25 days
F = 35 days
G = 3 days
H = 3 days
In this project the critical path is A, C, F, G, H because the
combined duration in that path,
97 days, exceeds the other two paths, 42 and 31.
A, C, F, G, H = 6 + 50 + 35 + 3 + 3 = 97 (critical path)
A, D, G, H = 6 + 30 + 3 + 3 = 42
B, E, H = 3 + 25 + 3 = 31
If you place the lines in a network diagram against a calendar,
then the length of the line does
coincide with the duration of the task. The result is a time-based
network shown below. This
figure shows the critical path as a continuous line, while the
other two paths show dotted lines
to represent the slack they have regarding when tasks are done.
The value of this kind of figure
is that it not only shows the critical path, but also the slack in
each of the other paths (Figure 2.6).
Figure 2.6: Time-based network diagram
The time-based network compares the network diagram to a
calendar to show, based on the relative
length of each line, how long a task will take. This diagram also
shows the slack in those paths that are
not critical by a dotted line..
24

A G H
B
C F
D
E
Weeks
48 72 96
bar81677_02_c02_037-080.indd 61 9/9/14 12:52 PM
Build a
Candidate List
Define Criteria
for Selection
Screen
Candidates
Interview
Candidates
Reference
Checks
Q1
Task Name
Q4 Q2 Q3

JulMay JunAprFeb MarJanNov DecOct
Compile
Information
Distribute
Information
Conduct
Selection Process
Build a Candidate List
Define Criteria for Selection
Screen Candidates
Interview Candidates
Reference Checks
Compile Information
Distribute Information
Conduct Selection Process
Start
Date
10/07
10/07
10/07

10/15
12/24
02/04
03/11
04/29
04/29
10/14
05/01
10/09
12/23
02/03
03/10
04/28
05/01
05/01
End
Date
Duration
6

149
3
50
30
25
35
3
3
Predecessor
2
4
5
6
7
7
Select Candidate
Select
Candidate

Activity 4: Develop an Integrated Project Schedule: The Gantt
Chart
The schedule is built from the WBS, first with entries of all
tasks, then by estimating task
durations and predecessors. Microsoft Project® or a similar
project management software
program will display a Gantt chart reflecting the
interdependence of tasks and the impact on
project and milestone due dates, as shown in Figure 2.7. This
schedule is updated and fleshed
out until there is team agreement, then a baseline schedule is
made part of the project man-
agement plan.
The Gantt chart combines the task list with information on task
duration, start and finish
dates, predecessors (tasks that must be completed before a given
task can begin), and a bar
chart showing calendar dates for each task and the project as a
whole. We will go into more
detail in Chapter 7 regarding how the Gantt chart is populated
and applied in project manage-
ment software.
Again, the purpose of the steps—going through the WBS, the
task list, the network diagram,
the time-based diagram, and finally the Gantt chart—is to show
how the Gantt chart schedule
is developed. Using modern project management software, these
calculations are made auto-
matically from entry data, but there is value in seeing how the
schedule and task interdepen-
dencies are built through these manual tools as well. Now we
will see how the cost estimate

is developed.
Figure 2.7: Gantt chart
The Gantt chart is a key project management tool because it
shows each task in sequence, with durations,
start and finish dates, and predecessors (tasks that precede each
task). It also shows the tasks in a
calendar bar chart to pin down exact dates for start and finish
for each task, and shows dependencies
with an arrow to the next task.
Adapted from Smartsheet.com.
Build a
Candidate List
Define Criteria
for Selection
Screen
Candidates
Interview
Candidates
Reference
Checks
Q1
Task Name
Q4 Q2 Q3
JulMay JunAprFeb MarJanNov DecOct
Compile

Information
Distribute
Information
Conduct
Selection Process
Build a Candidate List
Define Criteria for Selection
Screen Candidates
Interview Candidates
Reference Checks
Compile Information
Distribute Information
Conduct Selection Process
Start
Date
10/07
10/07
10/07
10/15
12/24

02/04
03/11
04/29
04/29
10/14
05/01
10/09
12/23
02/03
03/10
04/28
05/01
05/01
End
Date
Duration
6
149

3
50
30
25
35
3
3
Predecessor
2
4
5
6
7
7
Select Candidate
Select
Candidate
bar81677_02_c02_037-080.indd 62 9/9/14 12:52 PM

Activity 5: Prepare a Cost Estimate and Budget
The budget is typically provided to the project manager based
on a project cost estimate and
a budget decision on how the company will fund the project.
The project manager and team
build the cost estimate by associating resources with each task,
entering unit costs, and assur-
ing that all labor and material costs, plus overhead and
administrative costs, are entered into
the schedule. Thus, the scheduling effort creates a cost estimate
that is a direct reflection of
the sum of all tasks and resource needs.
For example, if a project includes three main tasks—design
product, produce test product, and
test product—costs for each task are estimated by the team
members assigned to those tasks.
They will review the work and duration and then estimate
resources and costs in the following
categories for their task and enter them into project management
software (if appropriate):
1. direct labor: all personnel costs for the duration of the task;
2. indirect labor: all support costs;
3. equipment and supplies;
4. overhead: the percentage of costs that a company or agency
incurs to support the
project, determined by audit;
5. administrative costs: the costs of management involvement in
the project; and
6. other costs.

When all task costs are entered, a total project cost estimate is
calculated and submitted
to management for budget decisions. If the budget allocated to
the project is different than
the cost estimate, adjustments are made in the project to ensure
that it can be completed
within budget.
Activity 6: Conduct a Risk Assessment and Prepare
a Detailed Risk Matrix
During this activity, the detailed risk matrix is prepared,
consistent with the project manage-
ment plan. Table 2.2 shows a detailed example for an
organization that is creating a new airline.
Table 2.2: Risk matrix sample
Task Risk Probability Impact Severity
Contingency
plan
File U.S.
Department
of Transporta-
tion (DOT)
application
Application
incomplete
or missing
required
information
25% Delay in
projected

commence-
ment date
Showstopper Resubmit
application
with DOT.
Pass DOT
fitness test
part 1
Sufficient
business
and aviation
experience
25% Delay in
projected
commence-
ment date
Showstopper Ensure man-
agement team
is experienced.
continued
bar81677_02_c02_037-080.indd 63 9/9/14 12:52 PM
Task Risk Probability Impact Severity
Contingency
plan

Pass DOT
fitness test
part 2
Review of
operating and
financial plans
25% Delay in
projected
commence-
ment date
Showstopper Ensure seed
and bridge
funding
(backup fund-
ing programs)
are in progress
or completed.
Pass DOT
fitness test
part 3
Applicant’s
history of
compliance
record with
DOT rules and
regulations
10% Delay in
projected
commence-

ment date
Very high;
would have
to realign
management
team.
Should
not pose a
problem with
intensive
background
check of man-
agement staff.
File Federal
Aviation
Administra-
tion (FAA)
preapplication
statement of
intent
FAA preap-
plication not
on file before
DOT reviews
application
20% Delay in
certification
Medium Ensure that
this applica-
tion is filed

first.
Complete DOT
application
form
Markets
served,
frequency of
flights, aircraft
type inconsis-
tent with first-
year revenues
and expenses
30% Delay in
certification
Showstopper;
will cause
DOT to reject
application.
Ensure that
application
is in align-
ment with
financials.
Potential impacts of risks are identified to enable the project
manager and team to anticipate
how a particular risk or risk event will affect project
performance. For instance, if a contractor
does not deliver a required component for a deliverable that
meets requirements on time, it
may delay not only the next task but also the whole project.

Activity 7: Negotiate With Team and Organization Functional
Leaders on Project Requirements
This activity involves presenting the project plan, including
early versions of the WBS, sched-
ule, and risk assessment, to the team and getting their
investment in the process so that they
can contribute and take ownership of the process. The ultimate
goal is to arrive at total con-
sensus on the plan and to encourage all team members to
incorporate it into their profes-
sional planning and personal scheduling. Team members should
have a unified view of the
project so that they enter into the execution phase with a shared
view of project success.
Table 2.2: Risk matrix sample (continued)
bar81677_02_c02_037-080.indd 64 9/9/14 12:52 PM
Section 2.5 Phase 3: Execution
Activity 8: Conduct a Phase-Gate Review of Phase 2 Outcomes
Since the project is about to enter the most expensive and time-
consuming phase, execution,
it is important that the phase-gate review includes the right
project team members and man-
ager, top managers and sponsors, and selected stakeholders.
The following are questions that should be asked during the
phase-gate review:

• Have the final project plan, including objectives, final scope
and statement of work,
schedule, budget, and risk assessment been thoroughly analyzed
and are they sup-
ported by quality data?
• Are the planning documents integrated or consistent with each
other? For instance,
does the project schedule align with the customer’s key
milestones and final deliver-
able due date?
• Will the required project resources, including key team
members and functional
support staff, as well as materials and supplies, be available
when required in the
project schedule?
• Have the key milestones been identified so that the project
manager and team can
assess progress using them?
• Is the project cost estimate consistent with the available
funding for the project, and
if not, should the project be adjusted or downsized to align with
available resources?
When the planning phase is completed, the project plan is
documented and the work kicked
off to start the execution phase. Although all the planning tools
help guide the project as it
is implemented in execution, the project manager cannot simply
rely on the plan. Execution
requires the project manager to get things started and keep them
going to meet scheduled
milestones and deliverables, so customers and stakeholders are

satisfied.
2.5 Phase 3: Execution
Execution is the phase that delivers value—the process of
carrying out the project work out-
lined in planning documents. If the deliverable is a new public
park, this is where it is planned
and implemented. If the project deliverable is a magazine, this
is where it is written, edited,
and published. The goal of this phase is to carry out the plan.
Execution involves work assignments that engage the experts
and supporting staff on the
project team, working together to produce the project
deliverables. This is a tricky phase
because all of the planning in the world cannot guarantee that
the team will collaborate, meet
quality goals in their work, or perform according to schedule.
Activity 1: Create an Expectation of Team Accountability
and Interdependence and Direct Project Kickoff
This is where the project manager kicks off the project and sets
the tone for the project team
as it begins to carry out the project plan. This activity includes
a kickoff meeting that includes
bar81677_02_c02_037-080.indd 65 9/9/14 12:52 PM
a representative of top management and project sponsors. In this
meeting, the value of the
project is presented to assure project team members of the

priority and critical contribution
that a successful project will make to company performance.
Project work is formally authorized in this phase so that all
project team members know the
project has started and initial work is expected to begin on
schedule. Although not all team
members will have work that is covered by the project budget
and therefore “authorized” in
the initial weeks of the project, they need to know the project is
underway and begin to plan
for their participation. Project managers like to keep their
project teams on work in the plan
and schedule and to avoid work that was not included in the
scope of work.
Activity 2: Acquire Necessary Resources, Internal and
Contractor
At this stage of the process, the project manager ensures that
the necessary resources—
including materials, supplies, facilities, team members, and
functional and support staff—are
acquired and committed to the project. This is when the project
manager identifies the neces-
sary contract work and provides the basis for the procurement
of contractor services, includ-
ing writing statements of work and participating in the selection
of contractors.
Activity 3: Clarify Project Assumptions, Objectives, Team
Roles,
Review Processes, Assignments, and Accountability
An important role of the project manager is working closely
with each team member. This

is an extension of activity 2 but with more emphasis on working
with each team member to
clarify assignments, review tasks and roles, assumptions behind
the project and their partici-
pation, and how performance will be reviewed, as well as to
emphasize the interdependence
and accountability built into the project plans.
This is an important step in the project because although team
members and support staff
may be assigned to this project, they also have other duties and
responsibilities, some to
other projects. Therefore, it becomes important that they see
this project as a high-priority
commitment, requiring them to plan their schedules and
anticipate their task function well
ahead of time.
Activity 4: Enable and Empower Team Members to Perform
Through Training and Development, Information, and Guidance
This activity identifies gaps in team member competencies in
light of project tasks, provides
for closing those gaps through training, development, or
contractor support, and ensures that
team members have access to all key documents and files. An
important by-product of this
activity is the process of uncovering gaps in capacity that might
not have been apparent in
bar81677_02_c02_037-080.indd 66 9/9/14 12:52 PM

selecting the team member in the first
place. For instance, a software engi-
neer may have been identified for the
project based on a database and cod-
ing capacity, but the project calls for a
strong iterative function—developing
software gradually through trial and
error instead of all at once—that the
team member has never experienced.
Activity 5: Oversee
Work and Identify
Performance Issues
Overseeing the work is a sensitive but
necessary leadership function. This
function requires the project manager
to review task work in terms of quality and timeliness without
micromanaging those doing
the work. The manager is also looking to the team to identify
performance issues early and
assuring them that performance problems will be addressed.
Activity 6: Report on Project Progress and Issues
Reports on project progress are made in face-to-face or virtual
meetings. Reports by
exception—reports that communicate variations or diversions
from the plan—should be
the rule. Subjects or tasks that are not on the expectation report
are assumed to be going
well and according to plan. Reports should focus on what is not
going as planned, on what
adjustments are necessary, and on keeping top management,
project sponsors, and stake-
holders informed.

Activity 7: Manage Team Performance and Problems
Problem solving requires a capacity to identify issues and
resolve them without exacerbat-
ing interpersonal issues. This activity focuses on conflicts that
typically arise in the execution
phase regarding quality of work, handoff problems, individual
performance problems, and
lack of facility or functional process support. The project
manager uses negotiation and com-
munication skills to identify problems early and facilitate
problem solving if the issue can be
addressed through overt action.
For instance, if a team member is having difficulty getting
access to required company test-
ing or other functional support, the project manager will
intervene and work with the func-
tional manager to make the support available or will acquire it
some other way, such as
through contracting.
In the case of interpersonal or performance issues, the project
manager may have to make
difficult decisions to replace a team member who is not
performing well.
©InStock/Image Source/Corbis
Offering employee training is one of the best ways
to ensure team members can perform their tasks
efficiently.
bar81677_02_c02_037-080.indd 67 9/9/14 12:52 PM

Section 2.6 Phase 4: Monitoring and Corrective Action
Activity 8: Conduct a Phase-Gate Review of Phase 3 Outcomes
This phase-gate review targets cost and schedule variances, new
developments, and team
performance. Here, top management and the project
management team identify areas for
corrective action, like changing the project content and WBS,
schedule, deliverable defini-
tions, or standards.
Cost and Schedule Variance
If the project has negative variance, it is costing more than
anticipated, given the work per-
formed; or if the project is late—or unusually ahead of
schedule—the phase-gate review will
target the situation and identify the problem.
New Developments
This phase involves any changes that might have taken place
since the planning phase. Ques-
tions are asked, such as have there been new developments in
execution, is the feasibility of
completing certain complex tasks in question, are there
developing contractor performance
problems, or have outside factors such as competition or
regulations changed?
Team Performance
Team performance must be evaluated as well. It must be asked
if the team is performing well
in executing the project and if not, what corrective actions are
suggested for the next phase.

While project execution is underway, the project is monitored
so that the project manager
and team know whether things are going as planned. This means
that the next phase, moni-
toring and corrective action, is proceeding during execution
rather than after execution is
completed. It is considered a separate phase even though it goes
on in parallel with the others
as a tracking action.
2.6 Phase 4: Monitoring and Corrective Action
Monitoring and corrective action is the phase that occurs in
parallel with execution. Its pur-
pose is to track actual work and to adjust and make corrections
as needed to meet project
objectives. Monitoring requires the selection of indicators and
performance measures used
to evaluate progress. As the work is executed, the tendency in
this phase is to look back, to
assess cost, schedule, and quality variance from the original
plan using earned value tools.
Once variances and problems are identified, the project manager
takes corrective actions.
However, sometimes it is more important to point the team
toward the remaining work
and outcomes rather than concentrating on staying the course,
especially if there have been
changes and forces that require revisiting the original plan.
bar81677_02_c02_037-080.indd 68 9/9/14 12:52 PM

Activity 1: Develop a Tracking and Monitoring System
The tracking and monitoring system has two basic goals: (a) to
track variances from the
plan, and (b) to look forward to remaining work, given current
variances, and take corrective
actions such as rescheduling the project. Project managers track
measures of project prog-
ress that are most important to project success, and these differ
depending on the customer
and the project.
In most projects, the core measures that are monitored are
schedule, cost, quality, and cus-
tomer satisfaction. Based on the design of the project
monitoring system, data and informa-
tion on each of these measures are collected regularly to make
sure the project is progressing
as planned. In addition, monitoring data suggesting major
variations from the plan may
require a completely new plan and baseline. The focus then
shifts to how the remaining work
can be completed on time and within budget, given the changes
that have occurred.
While all phases of the project are monitored, monitoring is
typically focused on the phase
where most of the resources are consumed and the actual work
accomplished—the execu-
tion phase.
Activity 2: Use Past Phase-Gate Review Outcomes to Anticipate
Issues
The phase-gate reviews from phases 1 and 2 will be useful to

anticipate issues in the execu-
tion and monitoring phases. For instance, if the phase-gate
review from phase 2 identified
some risks for which the assessment of probabilities and
impacts was tentative or lacked
supporting data, those risks become major focal points for
monitoring and corrective action.
Since the phase-gate review is at the end point of each phase, it
uses monitoring data and
information to determine how the project is doing. This review
differs from the regular proj-
ect reviews during each phase because top management and the
project sponsor are usually
involved in the phase-gate reviews, so it is important that the
right measures were tracked
and the information is accurate.
Activity 3: Conduct Frequent Review Meetings,
Teleconferences,
and Group Discussions on Project Performance
Review meetings during each phase and especially during
execution, all leading up to phase-
gate review, should focus on the following agenda items:
• project updates: individual reports;
• project issues and problems;
• data and information;
• corrective actions; and
• team member performance.
bar81677_02_c02_037-080.indd 69 9/9/14 12:52 PM

The focus for these regular project
reviews is to track variance from the
plan. Usually a variance of 10% or
more from the budget or schedule will
receive special attention by the project
manager, who will try to understand
what changes or events have prompted
the variance. Sometimes the issue is
bad estimates, but occasionally the
data will expose major change factors
unanticipated in the project planning
process. Review meetings are short
and sweet, with follow-up with partic-
ular members of the team depending
on the issue.
A major value of these regular meet-
ings held every 2 weeks or so is to get
early indications of problems, either in
the work itself or in team, contractor, or customer relationships.
Reviews are typically docu-
mented and used to report progress and prepare for the phase-
gate review. Project managers
typically try to avoid long meetings with the whole team, since
time is at a premium in most
projects and team members can become anxious when the issues
being reviewed do not per-
tain to them.
Activity 4: Identify Necessary Adjustments, Changes,
and Unanticipated Forces
At this stage, the project manager is looking at changes, new

factors, and events
or forces on the project that were not anticipated or reflected in
the plan. For
instance, in a business marketing project, the monitoring
process could indicate that the
schedule for the production of the market research plan was late
by several days, threaten-
ing the timeline for the whole project. In pursuing the schedule
slippage with the marketing
specialist on the team, the project manager may find that the
information on product per-
formance was not made available in time to prepare the
marketing plan. It turns out that the
product development engineer was on time with product
performance and testing data but
did not make it available to marketing.
This is a typical handoff problem that occurs in projects when
one task leader completes an
assignment but does not make the effort to communicate
progress and handoff to the next
task leader. This kind of problem is internal to the project and
can be addressed by a short
meeting with the parties involved.
Sometimes, more critical outside forces are discovered in
monitoring. For instance, in an IT
project, monitoring data might suggest that all is well on project
performance in terms of
schedule and cost. However, in scanning the environment, the
project manager might find that
a competitor is marketing a product that performs better and
more reliably than the project
deliverable will, given its requirements and design. In this case,
the project manager might flag
this information and report it to top management or hold it for

the phase-gate review.
BananaStock/Thinkstock
What is the benefit of conducting review meetings
as a project manager?
bar81677_02_c02_037-080.indd 70 9/9/14 12:52 PM
Activity 5: Review Contingencies and Take Appropriate
Corrective Action
In this activity the project manager reviews the risk assessments
and assesses various pre-
ventive and corrective actions from the risk management plan.
While it is one thing to pick
up indicators of project problems in these reviews, it is quite
another to figure out what to do
about them. This is where the project manager’s judgment
comes into play.
If the corrective action is not timed well, it may not be
successful and can even undermine a
project team. For instance, in a construction project one risk
that was highlighted in planning
was the potential for quality problems in required construction
supplies and material. The con-
tingency action for that risk was to terminate the contract and
rebid the project. While this
action might be effective, a project manager has to weigh
whether improvements can be made
in the current contract to address the supply quality problems

and avoid the process of rebid-
ding the work, which poses the risk that another contractor
might have the same problems.
In any case, it is useful for a project manager to anticipate risks
and problems and identify con-
tingencies and corrective actions, if only to provide a starting
point in the event of a risk event.
Activity 6: Counsel Team Members With Performance Feedback
and Guidance
One of the benefits of regular project reviews is to assess the
performance of the project team
and to anticipate any issues in team relationships and work
quality. During the reviews, the
project manager can pick up indicators of problems such as
interpersonal issues in the team,
disruptions or delays in handing off work outputs from one team
member to another, and
individual performance issues. If there are personnel issues, the
project manager does not
pursue them in the team meetings or project reviews, but rather
takes the time to have indi-
vidual discussions with team members who are having
problems.
In project management organizations, project managers try to
have performance reviews
follow project reviews so that the discussions are timely and
revolve around recent project
work. This gives a sense of urgency and reality to the
discussions and allows the project man-
ager to counsel and guide team members using real examples
and gives team members time
to respond to feedback during the project process.

Activity 7: Prepare for the Phase-Gate Review
Preparation for the phase-gate review involves using cost and
schedule variance and perfor-
mance measures and indicator data. Monitoring data is useful in
preparing for phase-gate
reviews, particularly information on schedule and cost variance.
Project managers also look for
new, outside economic, social, and market forces that might
influence the success of the project.
For instance, in a new product development project in the
execution phase, the project man-
ager may find that schedule slippage and cost overruns are due
to difficulties the team is
having in producing new products for testing that meet
requirements. This would be a major
agenda item for a phase-gate review. Or the manager may see
evidence of new competition in
bar81677_02_c02_037-080.indd 71 9/9/14 12:52 PM
Section 2.7 Phase 5: Project Closure and Assessment
the field that could render the product uncompetitive—in other
words, the product will not
sell. Lastly, the project manager may be receiving feedback
from the customer that deserves
special attention in a review.
Activity 8: Conduct a Phase-Gate Review at the End of Phase 4
A phase-gate review is a special, in-depth review conducted at

the end of each phase of a proj-
ect. Its purpose is to review progress and decide whether the
project should continue to the
next phase or be terminated. Top management participates in the
phase-gate review because
future funding of the project is in question. The reason these
reviews are conducted is that
research had found that many projects, especially those working
on new products, should
have been stopped after an early phase but were not, despite
evidence that the project was
failing. (See Cooper, Edgett, & Kleinschmidt, 2001.)
Project managers prepare for phase-gate reviews by determining
what data and information
to monitor and collect, how to interpret the data, and how to
present the data to top man-
agement and key stakeholders. This typically includes
information on project performance,
issues and problems, objectives, schedule, budget, risks,
process, and potential changes, all
focused on whether the project has value and should be
continued. When a phase-gate review
is conducted, the project manager and team collect key
information on the project and pres-
ent it to top management and stakeholders, including the project
sponsor.
In sum, monitoring and corrective action involves collecting
data and information on project
progress in order to make necessary adjustments in planning or
executing the project. Regu-
lar reviews help the project manager and team keep up with
progress and critical develop-
ments in the project. Phase-gate reviews help top management
decide whether to continue

investing in the project into the next phase.
2.7 Phase 5: Project Closure and Assessment
This phase covers the process of achieving closure on the
project and obtaining customer
acceptance of the deliverables, and making sure finances are
covered and closed out. But
it also includes assessment—the process of evaluating the
project in terms of its goals,
objectives, and plans—and identifying lessons learned so that
the organization benefits
from the experience.
Activity 1: Obtain Customer Acceptance of Project Deliverables
The project manager seeks customer acceptance of deliverables
in this phase to enable project
closure and evaluation. This is accomplished by a formal
documentation of customer accep-
tance in writing. The project manager requests the customer to
accept the deliverable(s) so
that the project can be closed out. For instance, in a
construction project, the customer is
requested to accept the final building and to certify that it meets
requirements. In a proj-
ect involving the development and installation of a new
computer system, the customer is
requested to certify that the new system works as planned and
meets system requirements.
bar81677_02_c02_037-080.indd 72 9/9/14 12:52 PM

Activity 2: Review Project Budget and Cost Information
During project closeout, the financial performance of the
project is reviewed. This involves how
well the project stayed within its budget. The process involves
reviewing financial documents
and making sure all costs attributed to the project are
documented. Any variances from the
budget are analyzed and documented to help future project
managers estimate similar cost
items in their budgets. The review helps determine how well the
project team managed finan-
cial resources and documentation, as well as how profitable the
project was for the enterprise.
This process sometimes also includes a formal audit that
accounts for all project expenditures
and project assets carried out by a separate audit team.
Activity 3: Conduct a Postproject Review With Team,
Stakeholders,
Top Management, and Sponsors
Here the project manager meets with stakeholders, top
management, and sponsors to obtain
feedback on project performance. The purpose of these meetings
is to review the whole proj-
ect process to identify what went well and what did not go well.
Sometimes the problems that
were experienced in the project are analyzed to find root causes.
This postproject review is
conducted with the team, stakeholders, top management, and the
project sponsor to ensure
that all possible perspectives on the project are considered.
Activity 4: Archive Project Data and Information

The project manager must ensure that all project files are
backed up and saved in a company
database for future reference. Electronic project files are backed
up in this activity and stored
for future reference in financial and project management
software. The purpose of archiving
documents is to be ready for a possible audit, a review of
lessons learned, and possible con-
tract claims and issues related to contractor expenses and
charges.
Activity 5: Contract Closeout
and Procurement Activity
Contract closeout requires a check of
all contractor activity and performance
and closing contracts out by accounting
for all invoices and payments. Because
contractors are often involved in proj-
ects, the closeout process also typically
includes closing out contracts, paying
all remaining eligible costs claimed
by the contractor, and addressing any
contractor concerns or issues. It is at
this point that contractors will invoice
costs for work that may not be eligible
for reimbursement or work that is not
AndreyPopov/IStock/Thinkstock
Confirming all invoices have been paid is a way to
ensure the project—and the money—is closed.
bar81677_02_c02_037-080.indd 73 9/9/14 12:52 PM

covered in the contract but that the contractor contends was
necessary to complete the work. If
there is no agreement on these costs, the enterprise and
contractor may enter into arbitration
to resolve the problem or even settle in the courts.
Activity 6: Conduct Lessons-Learned Focus Groups and Prepare
a Report
In this activity the project team meets to discuss lessons learned
so that future project teams
can benefit from the team feedback on this project.
Documentation from postproject reviews
is made available to the team for a lessons-learned meeting.
During that meeting the follow-
ing questions are raised and discussed:
1. What information resulted from the postproject review that
will be useful to future
project managers?
2. What project processes went well and according to plan?
3. What project processes did not go well and why?
4. What fixes or adjustments to project processes need to be
made to address the prob-
lems identified in this process?
The lessons-learned report is prepared by the project manager
and summarizes the key les-
sons from the project. The report is sent to top management and
other project managers for

their use in planning and managing new projects. Sometimes
there are recommendations in
the report that are discussed with top management if they
involve new resources or changes
in key business processes.
Activity 7: Perform a Team Assessment and Identify Next
Assignments and Career Implications
The project manager is responsible for providing feedback on
team and individual performance
and ensuring with top management that team members are
reassigned to other projects or
related work. The process aims to avoid costs that are
attributable to project team members
charging to the project because they have no new chargeable
work. This is a common problem
in projects because team members are expected to be doing
“value added” work that is covered
by approved project budgets. If they are not assigned to
approved, funded projects during this
process, there is a tendency for some team members to keep
charging to a project that is being
closed out. To avoid this problem, team members must be
reassigned to other project work.
Activity 8: Conduct a Final Project Assessment
An overall project assessment focuses on the project process,
the quality of the work, project
costs and financial performance, schedule management, and
customer satisfaction. This pro-
cess can result in a project report to stakeholders on the
project’s outcomes and benefits. If
bar81677_02_c02_037-080.indd 74 9/9/14 12:52 PM

Summary and Resources
the project is being financed by a customer, then it is common
practice after this assessment
to propose follow-on work with the customer to carry the
project to another level or to do
related work through a new contract.
The project closeout phase involves not only closing the books
on the project and making
sure the team is reassigned to other projects, but also assessing
lessons learned and making
recommendations for changes in project processes if
appropriate.
Summary and Resources
Chapter Summary
• Most projects go through phases that help define a logical
sequence of work neces-
sary to complete the project. These phases include:
• initiation: including the selection of the project and kicking it
off;
• planning: preparing the project management plan and defining
the project goals,
scope of work, deliverables, risks, budget, and schedule;
• execution: assigning work and implementing tasks according
to the schedule;
• monitoring: tracking the work and team performance to ensure
the project is

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