A Guide to the Project Management Body of Knowledge (PMBOK Guide) – Seventh Edition
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THE STANDARD FOR PROJECT MANAGEMENT AND A GUIDE TO THE PROJECT MANAGEMENT BODY OF KNOWLEDGE
Table of Contents
THE STANDARD FOR PROJECT MANAGEMENT
1 INTRODUCTION
1.1 Purpose of The Standard for Project Management
1.2 Key Terms and Concepts
1.3 Audience for this Standard
2 A SYSTEM FOR VALUE DELIVERY
2.1 Creating Value
2.1.1 Value Delivery Components
2.1.2 Information Flow
2.2 Organizational Governance Systems
2.3 Functions Associated with Projects
2.3.1 Provide Oversight and Coordination
2.3.2 Present Objectives and Feedback
2.3.3 Facilitate and Support
2.3.4 Perform Work and Contribute Insights
2.3.5 Apply Expertise
2.3.6 Provide Business Direction and Insight
2.3.7 Provide Resources and Direction
2.3.8 Maintain Governance
2.4 The Project Environment
172.4.1 Internal Environment
2.4.2 External Environment
2.5 Product Management Considerations
3 PROJECT MANAGEMENT PRINCIPLES
3.1 Be a Diligent, Respectful, and Caring Steward
3.2 Create a Collaborative Project Team Environment
3.3 Effectively Engage with Stakeholders
3.4 Focus on Value
3.5 Recognize, Evaluate, and Respond to System
Interactions
3.6 Demonstrate Leadership Behaviors
3.7 Tailor Based on Context
3.8 Build Quality into Processes and Deliverables
3.9 Navigate Complexity
3.10 Optimize Risk Responses
3.11 Embrace Adaptability and Resiliency
3.12 Enable Change to Achieve the Envisioned Future State
References
18A GUIDE TO THE PROJECT MANAGEMENT BODY OF
KNOWLEDGE (PMBOK® GUIDE)
- INTRODUCTION
1.1 Structure of the PMBOK® Guide
1.2 Relationship of the PMBOK® Guide and The Standard
for Project Management
1.3 Changes to the PMBOK® Guide
1.4 Relationship to PMIstandards+ - PROJECT PERFORMANCE DOMAINS
2.1 Stakeholder Performance Domain
2.1.1 Stakeholder Engagement
2.1.2 Interactions with Other Performance Domains
2.1.3 Checking Results
2.2 Team Performance Domain
2.2.1 Project Team Management and Leadership
2.2.2 Project Team Culture
2.2.3 High-Performing Project Teams
2.2.4 Leadership Skills
2.2.5 Tailoring Leadership Styles
2.2.6 Interactions with Other Performance Domains
2.2.7 Checking Results
2.3 Development Approach and Life Cycle Performance
Domain
2.3.1 Development, Cadence, and Life Cycle
Relationship
2.3.2 Delivery Cadence
192.3.3 Development Approaches
2.3.4 Considerations for Selecting a Development
Approach
2.3.5 Life Cycle and Phase Definitions
2.3.6 Aligning of Delivery Cadence, Development
Approach, and Life Cycle
2.3.7 Interactions with Other Performance Domains
2.3.8 Measuring Outcomes
2.4 Planning Performance Domain
2.4.1 Planning Overview
2.4.2 Planning Variables
2.4.3 Project Team Composition and Structure
2.4.4 Communication
2.4.5 Physical Resources
2.4.6 Procurement
2.4.7 Changes
2.4.8 Metrics
2.4.9 Alignment
2.4.10 Interactions with Other Performance Domains
2.4.11 Checking Results
2.5 Project Work Performance Domain
2.5.1 Project Processes
2.5.2 Balancing Competing Constraints
2.5.3 Maintaining Project Team Focus
2.5.4 Project Communications and Engagement
2.5.5 Managing Physical Resources
2.5.6 Working with Procurements
2.5.7 Monitoring New Work and Changes
202.5.8 Learning throughout the Project
2.5.9 Interactions with Other Performance Domains
2.5.10 Checking Results
2.6 Delivery Performance Domain
2.6.1 Delivery of Value
2.6.2 Deliverables
2.6.3 Quality
2.6.4 Suboptimal Outcomes
2.6.5 Interactions with Other Performance Domains
2.6.6 Checking Results
2.7 Measurement Performance Domain
2.7.1 Establishing Effective Measures
2.7.2 What to Measure
2.7.3 Presenting Information
2.7.4 Measurement Pitfalls
2.7.5 Troubleshooting Performance
2.7.6 Growing and Improving
2.7.7 Interactions with Other Performance Domains
2.7.8 Checking Results
2.8 Uncertainty Performance Domain
2.8.1 General Uncertainty
2.8.2 Ambiguity
2.8.3 Complexity
2.8.4 Volatility
2.8.5 Risk
2.8.6 Interactions with Other Performance Domains
2.8.7 Checking Results - TAILORING
3.1 Overview
3.2 Why Tailor?
3.3 What to Tailor
3.3.1 Life Cycle and Development Approach Selection
3.3.2 Processes
3.3.3 Engagement
3.3.4 Tools
3.3.5 Methods and Artifacts
3.4 The Tailoring Process
3.4.1 Select Initial Development Approach
3.4.2 Tailor for the Organization
3.4.3 Tailor for the Project
3.5 Tailoring the Performance Domains
3.5.1 Stakeholders
3.5.2 Project Team
3.5.3 Development Approach and Life Cycle
3.5.4 Planning
3.5.5 Project Work
3.5.6 Delivery
3.5.7 Uncertainty
3.5.8 Measurement
3.6 Diagnostics
3.7 Summary - MODELS, METHODS, AND ARTIFACTS
4.1 Overview
4.2 Commonly Used Models
224.2.1 Situational Leadership Models
4.2.2 Communication Models
4.2.3 Motivation Models
4.2.4 Change Models
4.2.5 Complexity Models
4.2.6 Project Team Development Models
4.2.7 Other Models
4.3 Models Applied Across Performance Domains
4.4 Commonly Used Methods
4.4.1 Data Gathering and Analysis
4.4.2 Estimating
4.4.3 Meetings and Events
4.4.4 Other Methods
4.5 Methods Applied Across Performance Domains
4.6 Commonly Used Artifacts
4.6.1 Strategy Artifacts
4.6.2 Logs and Registers
4.6.3 Plans
4.6.4 Hierarchy Charts
4.6.5 Baselines
4.6.6 Visual Data and Information
4.6.7 Reports
4.6.8 Agreements and Contracts
4.6.9 Other Artifacts
4.7 Artifacts Applied Across Performance Domains
References
APPENDIX X1
23CONTRIBUTORS AND REVIEWERS OF THE STANDARD
FOR PROJECT MANAGEMENT AND A GUIDE TO THE
PROJECT MANAGEMENT BODY OF KNOWLEDGE –
SEVENTH EDITION
X1.1 Contributors
X1.2 PMI Staff
APPENDIX X2
SPONSOR
X2.1 Introduction
X2.2 The Sponsor Role
X2.3 Lack of Engagement
X2.4 Sponsor Behaviors
X2.5 Conclusion
X2.6 Suggested Resources
APPENDIX X3
THE PROJECT MANAGEMENT OFFICE
X3.1 Introduction
X3.2 The PMO Value Proposition—Why Have One?
X3.3 Key PMO Capabilities
X3.4 Evolving for Stronger Benefits Realization
X3.5 Learn More about PMOs
X3.6 Suggested Resources
APPENDIX X4
PRODUCT
X4.1 Introduction
X4.2 Global Market Shifts
X4.3 Impact on Project Delivery Practices
24X4.4 Organizational Considerations for Product
Management
X4.5 Summary
X4.6 Suggested Resources
APPENDIX X5
RESEARCH AND DEVELOPMENT FOR THE STANDARD
FOR PROJECT MANAGEMENT
X5.1 Introduction
X5.2 The Move to a Principle-Based Standard
X5.3 Research for The Standard for Project Management
X5.4 Standard Development Process
X5.5 Validating the Standard
X5.6 Summary
GLOSSARY - Inclusions and Exclusions
- Common Acronyms
- Definitions
25List of Figures and Tables
THE STANDARD FOR PROJECT MANAGEMENT
Figure 2-1. Example of a System for Value Delivery
Figure 2-2. Components of a Sample System for Value
Delivery
Figure 2-3. Example of Information Flow
Figure 2-4. Sample Product Life Cycle
Figure 3-1. Overlap of Project Management and General
Management Principles
Figure 3-2. Be a Diligent, Respectful, and Caring
Steward
Figure 3-3. Create a Collaborative Project Team
Environment
Figure 3-4. Effectively Engage with Stakeholders
Figure 3-5. Focus on Value
Figure 3-6. Recognize, Evaluate, and Respond to System
Interactions
Figure 3-7. Demonstrate Leadership Behaviors
Figure 3-8. Tailor Based on Context
Figure 3-9. Build Quality into Processes and
Deliverables
Figure 3-10. Navigate Complexity
26Figure 3-11. Optimize Risk Responses
Figure 3-12. Embrace Adaptability and Resiliency
Figure 3-13. Enable Change to Achieve the Envisioned
Future State
27A GUIDE TO THE PROJECT MANAGEMENT BODY OF
KNOWLEDGE (PMBOK® GUIDE)
Figure 1-1. Relationship between Project Management
Principles and Project Performance Domains
Figure 2-1. Stakeholder Performance Domain
Figure 2-2. Examples of Project Stakeholders
Figure 2-3. Navigating Effective Stakeholder
Engagement
Figure 2-4. Team Performance Domain
Figure 2-5. Components of Emotional Intelligence
Figure 2-6. Development Approach and Life Cycle
Performance Domain
Figure 2-7. Development Approaches
Figure 2-8. Iterative and Incremental Development
Figure 2-9. Sample Predictive Life Cycle
Figure 2-10. Life Cycle with an Incremental Development
Approach
Figure 2-11. Life Cycle with Adaptive Development
Approach
Figure 2-12. Community Center Life Cycle
Figure 2-13. Planning Performance Domain
Figure 2-14. Estimate Range Decreases over Time
Figure 2-15. Low Accuracy, High Precision
Figure 2-16. Fast Tracking Examples
Figure 2-17. Release and Iteration Plan
Figure 2-18. Budget Build Up
28Figure 2-19. Project Work Performance Domain
Figure 2-20. Delivery Performance Domain
Figure 2-21. Scenario for Developing a Smart Watch
Figure 2-22. Cost of Change Curve
Figure 2-23. Measurement Performance Domain
Figure 2-24. Earned Value Analysis Showing Schedule
and Cost Variance
Figure 2-25. Mood Board
Figure 2-26. Forecast of Estimate at Completion and
Estimate to Complete
Figure 2-27. Dashboard Example
Figure 2-28. Information Radiator
Figure 2-29. Task Board or Kanban Board
Figure 2-30. Burnup Chart
Figure 2-31. Planned and Actual Spend Rates
Figure 2-32. Uncertainty Performance Domain
Figure 2-33. Risk Reduction over Time
Figure 2-34. Risk-Adjusted ROI Curve
Figure 3-1. Details of the Steps in the Tailoring Process
Figure 3-2. Selecting the Initial Development Approach
Figure 3-3. Tailoring the Approach for the Organization
Figure 3-4. Assessing the Organizational and Project
Factors When Tailoring
Figure 3-5. Tailoring the Approach for the Project
Figure 3-6. Implement Ongoing Improvement
Figure 3-7. The Tailoring Process
29Figure 3-8. Tailoring to Fit the Project Context
Figure 4-1. Tailoring to Fit the Project Context and
Environment
Figure X4-1. Global Business Trends Influencing the
Management of Products
Figure X4-2. The Changing Relationship Between an
Organization and Its Customers
Figure X4-3. Supporting Strategies for Continuous Value
Delivery
Table 2-1. Types of Communication
Table 2-2. Checking Outcomes—Stakeholder
Performance Domain
Table 2-3. Checking Outcomes—Team Performance
Domain
Table 2-4. Delivery Cadence and Development
Approach
Table 2-5. Checking Outcomes—Development
Approach and Life Cycle Performance
Domain
Table 2-6. Checking Outcomes—Planning Performance
Domain
Table 2-7. Checking Outcomes—Project Work
Performance Domain
Table 2-8. Checking Outcomes—Delivery Performance
Domain
Table 2-9. Checking Outcomes—Measurement
Performance Domain
Table 2-10. Checking Outcomes—Uncertainty
Performance Domain
30Table 3-1. Common Situations and Tailoring
Suggestions
Table 4-1. Mapping of Models Likely to Be Used in
Each Performance Domain
Table 4-2. Mapping of Methods Likely to Be Used in
Each Performance Domain
Table 4-3. Mapping of Artifacts Likely to Be Used in
Each Performance Domain
Table X4-1. Views of Project and Product Management
Table X4-2. Unique Characteristics of Projects,
Programs, and Products
Glossary- INCLUSIONS AND EXCLUSIONS
This combined glossary includes definitions of terms and acronyms from the
following:
The Standard for Project Management
A Guide to the Project Management Body of Knowledge (PMBOK® Guide) –
Seventh Edition
This glossary includes terms that are:
Unique or nearly unique to project management (e.g., minimum viable
product, work breakdown structure, Gantt chart), and
Not unique to project management but used differently or with a narrower
meaning in project management than in general everyday usage (e.g., release
planning, contingency reserve).
This glossary generally does not include:
Application-area-specific terms,
Terms used in project management that do not differ in any material way from
everyday use (e.g., calendar day, delay),
Compound terms whose meanings are clear from the meanings of the
component parts,
Variants when the meaning of the variant is clear from the base term, and
Terms that are used only once and are not critical to understanding the point of
the sentence. This can include a list of examples that would not have each term
defined in the glossary.
- INCLUSIONS AND EXCLUSIONS
- COMMON ACRONYMS
AC actual cost
BAC budget at completion
CCB change control board
CFD cumulative flow diagram
COQ cost of quality
CPAF cost plus award fee
CPFF cost plus fixed fee
CPI cost performance index
CPIF cost plus incentive fee
CPM critical path method
CV cost variance
DoD definition of done
EAC estimate at completion
EEF enterprise environmental factors
EMV expected monetary value
ETC estimate to complete
EV earned value
EVA earned value analysis
FFP firm fixed price
FPEPA fixed price with economic price adjustment
FPIF fixed price incentive fee
IDIQ indefinite delivery indefinite quantity
LCA life cycle assessment
MVP minimum viable product
NPS® Net Promotor Score®
OBS organizational breakdown structure
OPA organizational process assets
PMB performance measurement baseline
PMBOK Project Management Body of Knowledge
PMO project management office
PV planned value
RAM responsibility assignment matrix
RBS risk breakdown structure
SOW statement of work
SPI schedule performance index
304SV schedule variance
SWOT strengths, weaknesses, opportunities, and threats
T&M time and materials contract
VAC variance at completion
VDO value delivery office
WBS work breakdown structure - DEFINITIONS
Many of the words defined here have broader, and in some cases, different
dictionary definitions. In some cases, a single glossary term consists of multiple words
(e.g., root cause analysis).
Acceptance Criteria. A set of conditions that is required to be met before
deliverables are accepted.
Accuracy. Within the quality management system, accuracy is an assessment of
correctness.
Activity List. A documented tabulation of schedule activities that shows the activity
description, activity identifier, and a sufficiently detailed scope of work description so
project team members understand what work is to be performed.
Actual Cost (AC). The realized cost incurred for the work performed on an activity
during a specific time period.
Adaptive Approach. A development approach in which the requirements are subject
to a high level of uncertainty and volatility and are likely to change throughout the
project.
Affinity Diagram. A diagram that shows large numbers of ideas classified into
groups for review and analysis.
Affinity Grouping. The process of classifying items into similar categories or
collections on the basis of their likeness.
Agile. A term used to describe a mindset of values and principles as set forth in the
Agile Manifesto.
Alternatives Analysis. A method used to evaluate identified options in order to select
the options or approaches to use to perform the work of the project.
Ambiguity. A state of being unclear, having difficulty in identifying the cause of
events, or having multiple options from which to choose.
305Analogous Estimating. A method for estimating the duration or cost of an activity or
a project using historical data from a similar activity or project.
Artifact. A template, document, output, or project deliverable.
Assumption. A factor in the planning process that is considered to be true, real, or
certain, without proof or demonstration.
Assumption and Constraint Analysis. An assessment that ensures assumptions and
constraints are integrated into the project plans and documents, and that there is
consistency among them.
Assumption Log. A project document used to record all assumptions and constraints
throughout the project.
Authority. The right to apply project resources, expend funds, make decisions, or
give approvals.
Backlog. An ordered list of work to be done.
Backlog Refinement. Progressive elaboration of the content in the backlog and
(re)prioritization of it to identify the work that can be accomplished in an upcoming
iteration.
Baseline. The approved version of a work product, used as a basis for comparison to
actual results.
Basis of Estimates. Supporting documentation outlining the details used in
establishing project estimates such as assumptions, constraints, level of detail, ranges,
and confidence levels.
Benchmarking. The comparison of actual or planned products, processes, and
practices to those of comparable organizations to identify best practices, generate
ideas for improvement, and provide a basis for measuring performance.
Benefits Management Plan. The documented explanation defining the processes for
creating, maximizing, and sustaining the benefits provided by a project or program.
Bid Documents. All documents used to solicit information, quotations, or proposals
from prospective sellers.
Bidder Conference. The meetings with prospective sellers prior to the preparation of
a bid or proposal to ensure all prospective vendors have a clear and common
understanding of the procurement. Also known as contractor conferences, vendor
conferences, or pre-bid conferences.
Blocker. See impediment.
306Budget. The approved estimate for the project or any work breakdown structure
(WBS) component or any schedule activity.
Budget at Completion (BAC). The sum of all budgets established for the work to be
performed.
Burn Chart. A graphical representation of the work remaining in a timebox or the
work completed toward the release of a product or project deliverable.
Business Case. A value proposition for a proposed project that may include financial
and nonfinancial benefits.
Business Model Canvas. A one-page, visual summary that describes the value
proposition, infrastructure, customers, and finances. These are often used in Lean
Startup situations.
Business Value. The net quantifiable benefit derived from a business endeavor that
may be tangible, intangible, or both.
Cadence. A rhythm of activities conducted throughout the project.
Cause-and-Effect Diagram. A visual representation that helps trace an undesirable
effect back to its root cause.
Change. A modification to any formally controlled deliverable, project management
plan component, or project document.
Change Control. A process whereby modifications to documents, deliverables, or
baselines associated with the project are identified, documented, approved, or
rejected.
Change Control Board (CCB). A formally chartered group responsible for
reviewing, evaluating, approving, delaying, or rejecting changes to the project, and for
recording and communicating such decisions.
Change Control Plan. A component of the project management plan that establishes
the change control board, documents the extent of its authority, and describes how the
change control system will be implemented.
Change Control System. A set of procedures that describes how modifications to the
project deliverables and documentation are managed and controlled.
Change Log. A comprehensive list of changes submitted during the project and their
current status.
Change Management. A comprehensive, cyclic, and structured approach for
transitioning individuals, groups, and organizations from a current state to a future
state with intended business benefits.
307Change Request. A formal proposal to modify a document, deliverable, or baseline.
Charter. See project charter.
Check Sheet. A tally sheet that can be used as a checklist when gathering data.
Closing Process Group. The process(es) performed to formally complete or close a
project, phase, or contract.
Communications Management Plan. A component of the project, program, or
portfolio management plan that describes how, when, and by whom information about
the project will be administered and disseminated.
Complexity. A characteristic of a program or project or its environment that is
difficult to manage due to human behavior, system behavior, and ambiguity.
Confirmation Bias. A type of cognitive bias that confirms preexisting beliefs or
hypotheses.
Conformance. The degree to which the results meet the set quality requirements.
Constraint. A limiting factor that affects the execution of a project, program,
portfolio, or process.
Contingency. An event or occurrence that could affect the execution of the project,
which may be accounted for with a reserve.
Contingency Reserve. Time or money allocated in the schedule or cost baseline for
known risks with active response strategies.
Continuous Delivery. The practice of delivering feature increments immediately to
customers, often through the use of small batches of work and automation technology.
Contract. A mutually binding agreement that obligates the seller to provide the
specified product, service, or result and obligates the buyer to pay for it.
Control. The process of comparing actual performance with planned performance,
analyzing variances, assessing trends to effect process improvements, evaluating
possible alternatives, and recommending appropriate corrective action as needed.
Control Chart. A graphic display of process data over time and against established
control limits, which has a centerline that assists in detecting a trend of plotted values
toward either control limit.
Cost Baseline. The approved version of the time-phased project budget, excluding
any management reserves, which can be changed only through formal change control
procedures and is used as a basis for comparison to actual results.
Cost-Benefit Analysis. A financial analysis method used to determine the benefits
308provided by a project against its costs.
Cost Management Plan. A component of a project or program management plan that
describes how costs will be planned, structured, and controlled.
Cost of Quality (COQ). All costs incurred over the life of the product by investment
in preventing nonconformance to requirements, appraisal of the product or service for
conformance to requirements, and failure to meet requirements.
Cost Performance Index (CPI). A measure of the cost efficiency of budgeted
resources expressed as the ratio of earned value to actual cost.
Cost Plus Award Fee Contract (CPAF). A category of contract that involves
payments to the seller for all legitimate actual costs incurred for completed work, plus
an award fee representing seller profit.
Cost Plus Fixed Fee Contract (CPFF). A type of cost-reimbursable contract where
the buyer reimburses the seller for the seller’s allowable costs (allowable costs are
defined by the contract) plus a fixed amount of profit (fee).
Cost Plus Incentive Fee Contract (CPIF). A type of cost-reimbursable contract
where the buyer reimburses the seller for the seller’s allowable costs (allowable costs
are defined by the contract), and the seller earns its profit if it meets defined
performance criteria.
Cost-Reimbursable Contract. A type of contract involving payment to the seller for
the seller’s actual costs, plus a fee typically representing the seller’s profit.
Cost Variance (CV). The amount of budget deficit or surplus at a given point in time,
expressed as the difference between the earned value and the actual cost.
Crashing. A method used to shorten the schedule duration for the least incremental
cost by adding resources.
Criteria. Standards, rules, or tests on which a judgment or decision can be based or
by which a product, service, result, or process can be evaluated.
Critical Path. The sequence of activities that represents the longest path through a
project, which determines the shortest possible duration.
Critical Path Method (CPM). A method used to estimate the minimum project
duration and determine the amount of schedule flexibility on the logical network paths
within the schedule model.
Cumulative Flow Diagram (CFD). A chart indicating features completed over time,
features in other states of development, and those in the backlog.
Cycle Time. The total elapsed time from the start of a particular activity or work item
309to its completion.
Cycle Time Chart. A diagram that shows the average cycle time of the work items
completed over time.
Daily Standup. A brief, daily collaboration meeting in which the team reviews
progress from the previous day, declares intentions for the current day, and highlights
any obstacles encountered or anticipated.
Dashboard. A set of charts and graphs showing progress or performance against
important measures of the project.
Data Gathering and Analysis Methods. Methods used to collect, assess, and
evaluate data and information to gain a deeper understanding of a situation.
Decision Tree Analysis. A diagramming and calculation method for evaluating the
implications of a chain of multiple options in the presence of uncertainty.
Decomposition. A method used for dividing and subdividing the project scope and
project deliverables into smaller, more manageable parts.
Definition of Done (DoD). A checklist of all the criteria required to be met so that a
deliverable can be considered ready for customer use.
Deliverable. Any unique and verifiable product, result, or capability to perform a
service that is required to be produced to complete a process, phase, or project.
Delivery Performance Domain. The performance domain that addresses activities
and functions associated with delivering the scope and quality that the project was
undertaken to achieve.
Development Approach. A method used to create and evolve the product, service, or
result during the project life cycle, such as a predictive, iterative, incremental, agile, or
hybrid method.
Development Approach and Life Cycle Performance Domain. The performance
domain that addresses activities and functions associated with the development
approach, cadence, and life cycle phases of the project.
DevOps. A collection of practices for creating a smooth flow of deliveries by
improving collaboration between development and operations staff.
Digital Product. A product or service that is delivered, used, and stored in an
electronic format.
Discretionary Dependency. A relationship that is based on best practices or project
preferences.
310Duration. The total number of work periods required to complete an activity or work
breakdown structure component, expressed in hours, days, or weeks. Contrast with
effort.
Earned Value (EV). The measure of work performed expressed in terms of the
budget authorized for that work.
Earned Value Analysis (EVA). An analysis method that uses a set of measures
associated with scope, schedule, and cost to determine the cost and schedule
performance of a project.
Effort. The number of labor units required to complete a schedule activity or work
breakdown structure component, often expressed in hours, days, or weeks. Contrast
with duration.
Emotional Intelligence. The ability to identify, assess, and manage the personal
emotions of oneself and other people, as well as the collective emotions of groups of
people.
Enterprise Environmental Factors (EEF). Conditions, not under the immediate
control of the team, that influence, constrain, or direct the project, program, or
portfolio.
Epic. A large, related body of work intended to hierarchically organize a set of
requirements and deliver specific business outcomes.
Estimate. A quantitative assessment of the likely amount or outcome of a variable,
such as project costs, resources, effort, or durations.
Estimate at Completion (EAC). The expected total cost of completing all work
expressed as the sum of the actual cost to date and the estimate to complete.
Estimate to Complete (ETC). The expected cost to finish all the remaining project
work.
Estimating Methods. Methods used to develop an approximation of work, time, or
cost on a project.
Executing Process Group. Those processes performed to complete the work defined
in the project management plan to satisfy the project requirements.
Expected Monetary Value (EMV). The estimated value of an outcome expressed in
monetary terms.
Explicit Knowledge. Knowledge that can be codified using symbols such as words,
numbers, and pictures.
External Dependency. A relationship between project activities and non-project
311activities.
Fast Tracking. A schedule compression method in which activities or phases
normally done in sequence are performed in parallel for at least a portion of their
duration.
Feature. A set of related requirements or functionalities that provides value to an
organization.
Firm Fixed Price Contract (FFP). A type of fixed-price contract where the buyer
pays the seller a set amount (as defined by the contract), regardless of the seller’s
costs.
Fixed Duration. A type of activity where the length of time required to complete the
activity remains constant regardless of the number of people or resources assigned to
the activity.
Fixed-Price Contract. An agreement that sets the fee that will be paid for a defined
scope of work regardless of the cost or effort to deliver it.
Fixed Price Incentive Fee Contract (FPIF). A type of contract where the buyer pays
the seller a set amount (as defined by the contract), and the seller can earn an
additional amount if the seller meets defined performance criteria.
Fixed Price with Economic Price Adjustment Contract (FPEPA). A fixed-price
contract, but with a special provision allowing for predefined final adjustments to the
contract price due to changed conditions, such as inflation changes, or cost increases
(or decreases) for specific commodities.
Flow. The measure of how efficiently work moves through a given process or
framework.
Flowchart. The depiction in a diagram format of the inputs, process actions, and
outputs of one or more processes within a system.
Forecast. An estimate or prediction of conditions and events in the project’s future
based on information and knowledge available at the time of the forecast.
Function Point. An estimate of the amount of business functionality in an
information system, used to calculate the functional size measurement of a software
system.
Gantt Chart. A bar chart of schedule information where activities are listed on the
vertical axis, dates are shown on the horizontal axis, and activity durations are shown
as horizontal bars placed according to start and finish dates.
Governance. The framework for directing and enabling an organization through its
312established policies, practices, and other relevant documentation.
Grade. A category or rank used to distinguish items that have the same functional use
but do not share the same requirements for quality.
Hierarchy Chart. A chart that begins with high-level information that is
progressively decomposed into lower levels of detail.
Histogram. A bar chart that shows the graphical representation of numerical data.
Hybrid Approach. A combination of two or more agile and nonagile elements,
having a nonagile end result.
Impact Mapping. A strategic planning method that serves as a visual roadmap for the
organization during product development.
Impediment. An obstacle that prevents the team from achieving its objectives. Also
known as a blocker.
Incremental Approach. An adaptive development approach in which the deliverable
is produced successively, adding functionality until the deliverable contains the
necessary and sufficient capability to be considered complete.
Indefinite Delivery Indefinite Quantity (IDIQ). A contract that provides for an
indefinite quantity of goods or services, with a stated lower and upper limit, within a
fixed time period.
Influence Diagram. A graphical representation of situations showing causal
influences, time ordering of events, and other relationships among variables and
outcomes.
Information Radiator. A visible, physical display that provides information to the
rest of the organization, enabling timely knowledge sharing.
Initiating Process Group. Those processes performed to define a new project or a
new phase of an existing project by obtaining authorization to start the project or
phase.
Internal Dependency. A relationship between two or more project activities.
Interpersonal Skills. Skills used to establish and maintain relationships with other
people.
Issue. A current condition or situation that may have an impact on the project
objectives.
Issue Log. A project document where information about issues is recorded and
monitored.
313Iteration. A timeboxed cycle of development on a product or deliverable in which all
of the work that is needed to deliver value is performed.
Iteration Plan. A detailed plan for the current iteration.
Iteration Planning. A meeting to clarify the details of the backlog items, acceptance
criteria, and work effort required to meet an upcoming iteration commitment.
Iteration Review. A meeting held at the end of an iteration to demonstrate the work
that was accomplished during the iteration.
Iterative Approach. A development approach that focuses on an initial, simplified
implementation then progressively elaborates adding to the feature set until the final
deliverable is complete.
Kanban Board. A visualization tool that shows work in progress to help identify
bottlenecks and overcommitments, thereby allowing the team to optimize the
workflow.
Kickoff Meeting. A gathering of team members and other key stakeholders at the
outset of a project to formally set expectations, gain a common understanding, and
commence work.
Knowledge. A mixture of experience, values and beliefs, contextual information,
intuition, and insight that people use to make sense of new experiences and
information.
Lag. The amount of time whereby a successor activity will be delayed with respect to
a predecessor activity.
Last Responsible Moment. The concept of deferring a decision to allow the team to
consider multiple options until the cost of further delay would exceed the benefit.
Lead. The amount of time whereby a successor activity can be advanced with respect
to a predecessor activity.
Lead Time. The time between a customer request and the actual delivery.
Lead Time Chart. A diagram showing the trend over time of the average lead time of
the items completed in work.
Lean Startup Canvas. A one-page template designed to communicate a business
plan with key stakeholders in an efficient and effective manner.
Lessons Learned. The knowledge gained during a project, which shows how project
events were addressed or should be addressed in the future, for the purpose of
improving future performance.
314Lessons Learned Register. A project document used to record knowledge gained
during a project, phase, or iteration so that it can be used to improve future
performance for the team and the organization.
Life Cycle. See project life cycle.
Life Cycle Assessment (LCA). A tool used to evaluate the total environmental
impact of a product, process, or system.
Log. A document used to record and describe or denote selected items identified
during execution of a process or activity. Usually used with a modifier, such as issue,
change, or assumption.
Make-or-Buy Analysis. The process of gathering and organizing data about product
requirements and analyzing them against available alternatives including the purchase
or internal manufacture of the product.
Management Reserve. An amount of the project budget or project schedule held
outside of the performance measurement baseline for management control purposes
that is reserved for unforeseen work that is within the project scope.
Mandatory Dependency. A relationship that is contractually required or inherent in
the nature of the work.
Measurement Performance Domain. The performance domain that addresses
activities and functions associated with assessing project performance and taking
appropriate actions to maintain acceptable performance.
Measures of Performance. Measures that characterize physical or functional
attributes relating to system operation.
Method. A means for achieving an outcome, output, result, or project deliverable.
Methodology. A system of practices, techniques, procedures, and rules used by those
who work in a discipline.
Metric. A description of a project or product attribute and how to measure it.
Milestone. A significant point or event in a project, program, or portfolio.
Milestone Schedule. A type of schedule that presents milestones with planned dates.
Minimum Viable Product (MVP). A concept used to define the scope of the first
release of a solution to customers by identifying the fewest number of features or
requirements that would deliver value.
Modeling. Creating simplified representations of systems, solutions, or deliverables,
such as prototypes, diagrams, or storyboards.
315Monitor. Collect project performance data, produce performance measures, and
report and disseminate performance information.
Monitoring and Controlling Process Group. Those processes required to track,
review, and regulate the progress and performance of the project; identify any areas in
which changes to the plan are required; and initiate corresponding changes.
Monte Carlo Simulation. A method of identifying the potential impacts of risk and
uncertainty using multiple iterations of a computer model to develop a probability
distribution of a range of outcomes that could result from a decision or course of
action.
Mood Chart. A visualization chart for tracking moods or reactions to identify areas
for improvement.
Multipoint Estimating. A method used to estimate cost or duration by applying an
average or weighted average of optimistic, pessimistic, and most likely estimates
when there is uncertainty with the individual activity estimates.
Net Promoter Score®. An index that measures the willingness of customers to
recommend an organization’s products or services to others.
Network Path. A sequence of activities connected by logical relationships in a
project schedule network diagram.
Objective. Something toward which work is to be directed, a strategic position to be
attained, a purpose to be achieved, a result to be obtained, a product to be produced, or
a service to be performed.
Opportunity. A risk that would have a positive effect on one or more project
objectives.
Organizational Breakdown Structure (OBS). A hierarchical representation of the
project organization, which illustrates the relationship between project activities and
the organizational units that will perform those activities.
Organizational Process Assets (OPA). Plans, processes, policies, procedures, and
knowledge bases that are specific to and used by the performing organization.
Osmotic Communication. Means of receiving information without direct
communication by overhearing and through nonverbal cues.
Outcome. An end result or consequence of a process or project.
Parametric Estimating. An estimating method in which an algorithm is used to
calculate cost or duration based on historical data and project parameters.
Performance Measurement Baseline (PMB). Integrated scope, schedule, and cost
316baselines used for comparison to manage, measure, and control project execution.
Phase Gate. A review at the end of a phase in which a decision is made to continue to
the next phase, to continue with modification, or to end a project or program.
Plan. A proposed means of accomplishing something.
Planned Value (PV). The authorized budget assigned to scheduled work.
Planning Performance Domain. The performance domain that addresses activities
and functions associated with the initial, ongoing, and evolving organization and
coordination necessary for delivering project deliverables and results.
Planning Process Group. Those processes required to establish the scope of the
project, refine the objectives, and define the course of action required to attain the
objectives that the project was undertaken to achieve.
Portfolio. Projects, programs, subsidiary portfolios, and operations managed as a
group to achieve strategic objectives.
Portfolio Management. The centralized management of one or more portfolios to
achieve strategic objectives.
Precision. Within the quality management system, precision is an assessment of
exactness.
Predictive Approach. A development approach in which the project scope, time, and
cost are determined in the early phases of the life cycle.
Prioritization Matrix. A scatter diagram that plots effort against value so as to
classify items by priority.
Prioritization Schema. Methods used to prioritize portfolio, program, or project
components, as well as requirements, risks, features, or other product information.
Probabilistic Estimating. A method used to develop a range of estimates along with
the associated probabilities within that range.
Probability and Impact Matrix. A grid for mapping the probability of occurrence of
each risk and its impact on project objectives if that risk occurs.
Procurement Management Plan. A component of the project or program
management plan that describes how a project team will acquire goods and services
from outside of the performing organization.
Product. An artifact that is produced, is quantifiable, and can be either an end item in
itself or a component item.
Product Breakdown Structure. A hierarchical structure reflecting a product’s
317components and deliverables.
Product Life Cycle. A series of phases that represent the evolution of a product, from
concept through delivery, growth, maturity, and to retirement.
Product Management. The integration of people, data, processes, and business
systems to create, maintain, and evolve a product or service throughout its life cycle.
Product Owner. A person responsible for maximizing the value of the product and
accountable for the end product.
Product Scope. The features and functions that characterize a product, service, or
result.
Program. Related projects, subsidiary programs, and program activities that are
managed in a coordinated manner to obtain benefits not available from managing
them individually.
Program Management. The application of knowledge, skills, and principles to a
program to achieve the program objectives and obtain benefits and control not
available by managing program components individually.
Progressive Elaboration. The iterative process of increasing the level of detail in a
project management plan as greater amounts of information and more accurate
estimates become available.
Project. A temporary endeavor undertaken to create a unique product, service, or
result.
Project Brief. A high-level overview of the goals, deliverables, and processes for the
project.
Project Calendar. A calendar that identifies working days and shifts that are
available for scheduled activities.
Project Charter. A document issued by the project initiator or sponsor that formally
authorizes the existence of a project and provides the project manager with the
authority to apply organizational resources to project activities.
Project Governance. The framework, functions, and processes that guide project
management activities in order to create a unique product, service, or result to meet
organizational, strategic, and operational goals.
Project Lead. A person who helps the project team to achieve the project objectives,
typically by orchestrating the work of the project. See also project manager.
Project Life Cycle. The series of phases that a project passes through from its start to
its completion.
318Project Management. The application of knowledge, skills, tools, and techniques to
project activities to meet the project requirements.
Project Management Body of Knowledge (PMBOK). A term that describes the
knowledge within the profession of project management.
Project Management Office (PMO). A management structure that standardizes the
project-related governance processes and facilitates the sharing of resources,
methodologies, tools, and techniques.
Project Management Plan. The document that describes how the project will be
executed, monitored and controlled, and closed.
Project Management Process Group. A logical grouping of project management
inputs, tools and techniques, and outputs. The Project Management Process Groups
include Initiating processes, Planning processes, Executing processes, Monitoring and
Controlling processes, and Closing processes.
Project Management Team. The members of the project team who are directly
involved in project management activities.
Project Manager. The person assigned by the performing organization to lead the
team that is responsible for achieving the project objectives. See also project lead.
Project Phase. A collection of logically related project activities that culminates in
the completion of one or more deliverables.
Project Review. An event at the end of a phase or project to assess the status,
evaluate the value delivered, and determine if the project is ready to move to the next
phase or transition to operations.
Project Schedule. An output of a schedule model that presents linked activities with
planned dates, durations, milestones, and resources.
Project Schedule Network Diagram. A graphical representation of the logical
relationships among the project schedule activities.
Project Scope. The work performed to deliver a product, service, or result with the
specified features and functions.
Project Scope Statement. The description of the project scope, major deliverables,
and exclusions.
Project Team. A set of individuals performing the work of the project to achieve its
objectives.
Project Vision Statement. A concise, high-level description of the project that states
the purpose and inspires the team to contribute to the project.
319Project Work Performance Domain. The performance domain that addresses
activities and functions associated with establishing project processes, managing
physical resources, and fostering a learning environment.
Prototype. A working model used to obtain early feedback on the expected product
before actually building it.
Quality. The degree to which a set of inherent characteristics fulfills requirements.
Quality Management Plan. A component of the project or program management
plan that describes how applicable policies, procedures, and guidelines will be
implemented to achieve the quality objectives.
Quality Metrics. A description of a project or product attribute and how to measure
it.
Quality Policy. The basic principles that should govern the organization’s actions as it
implements its system for quality management.
Quality Report. A project document that includes quality management issues,
recommendations for corrective actions, and a summary of findings from quality
control activities and may include recommendations for process, project, and product
improvements.
Register. A written record of regular entries for evolving aspects of a project, such as
risks, stakeholders, or defects.
Regression Analysis. An analytical method where a series of input variables are
examined in relation to their corresponding output results in order to develop a
mathematical or statistical relationship.
Regulations. Requirements imposed by a governmental body. These requirements
can establish product, process, or service characteristics, including applicable
administrative provisions that have government-mandated compliance.
Relative Estimating. A method for creating estimates that are derived from
performing a comparison against a similar body of work, taking effort, complexity,
and uncertainty into consideration.
Release. One or more components of one or more products, which are intended to be
put into production at the same time.
Release Plan. The plan that sets expectations for the dates, features, and/or outcomes
expected to be delivered over the course of multiple iterations.
Release Planning. The process of identifying a high-level plan for releasing or
transitioning a product, deliverable, or increment of value.
320Report. A formal record or summary of information.
Requirement. A condition or capability that is necessary to be present in a product,
service, or result to satisfy a business need.
Requirements Documentation. A record of product requirements and other product
information, along with whatever is recorded to manage it.
Requirements Management Plan. A component of the project or program
management plan that describes how requirements will be analyzed, documented, and
managed.
Requirements Traceability Matrix. A grid that links product requirements from
their origin to the deliverables that satisfy them.
Reserve. A provision in the project management plan to mitigate cost and/or schedule
risk, often used with a modifier (e.g., management reserve, contingency reserve) to
provide further detail on what types of risk are meant to be mitigated.
Reserve Analysis. A method used to evaluate the amount of risk on the project and
the amount of schedule and budget reserve to determine whether the reserve is
sufficient for the remaining risk.
Resource Breakdown Structure. A hierarchical representation of resources by
category and type.
Resource Management Plan. A component of the project management plan that
describes how project resources are acquired, allocated, monitored, and controlled.
Responsibility. An assignment that can be delegated within a project management
plan such that the assigned resource incurs a duty to perform the requirements of the
assignment.
Responsibility Assignment Matrix (RAM). A grid that shows the project resources
assigned to each work package.
Result. An output from performing project management processes and activities. See
also deliverable.
Retrospective. A regularly occurring workshop in which participants explore their
work and results in order to improve both the process and product.
Rework. Action taken to bring a defective or nonconforming component into
compliance with requirements or specifications.
Risk. An uncertain event or condition that, if it occurs, has a positive or negative
effect on one or more project objectives.
321Risk Acceptance. A risk response strategy whereby the project team decides to
acknowledge the risk and not take any action unless the risk occurs.
Risk-Adjusted Backlog. A backlog that includes product work and actions to address
threats and opportunities.
Risk Appetite. The degree of uncertainty an organization or individual is willing to
accept in anticipation of a reward.
Risk Avoidance. A risk response strategy whereby the project team acts to eliminate
the threat or protect the project from its impact.
Risk Breakdown Structure (RBS). A hierarchical representation of potential sources
of risks.
Risk Enhancement. A risk response strategy whereby the project team acts to
increase the probability of occurrence or impact of an opportunity.
Risk Escalation. A risk response strategy whereby the team acknowledges that a risk
is outside of its sphere of influence and shifts the ownership of the risk to a higher
level of the organization where it is more effectively managed.
Risk Exploiting. A risk response strategy whereby the project team acts to ensure that
an opportunity occurs.
Risk Exposure. An aggregate measure of the potential impact of all risks at any given
point in time in a project, program, or portfolio.
Risk Management Plan. A component of the project, program, or portfolio
management plan that describes how risk management activities will be structured
and performed.
Risk Mitigation. A risk response strategy whereby the project team acts to decrease
the probability of occurrence or impact of a threat.
Risk Register. A repository in which outputs of risk management processes are
recorded.
Risk Report. A project document that summarizes information on individual project
risks and the level of overall project risk.
Risk Review. The process of analyzing the status of existing risks and identifying
new risks. May also be known as risk reassessment.
Risk Sharing. A risk response strategy whereby the project team allocates ownership
of an opportunity to a third party who is best able to capture the benefit of that
opportunity.
322Risk Threshold. The measure of acceptable variation around an objective that reflects
the risk appetite of the organization and stakeholders. See also risk appetite.
Risk Transference. A risk response strategy whereby the project team shifts the
impact of a threat to a third party, together with ownership of the response.
Roadmap. A high-level time line that depicts such things as milestones, significant
events, reviews, and decision points.
Role. A defined function to be performed by a project team member, such as testing,
filing, inspecting, or coding.
Rolling Wave Planning. An iterative planning method in which the work to be
accomplished in the near term is planned in detail, while the work in the future is
planned at a higher level.
Root Cause Analysis. An analytical method used to determine the basic underlying
reason that causes a variance or a defect or a risk.
Scatter Diagram. A graph that shows the relationship between two variables.
Schedule. See project schedule.
Schedule Baseline. The approved version of a schedule model that can be changed
using formal change control procedures and is used as the basis for comparison to
actual results.
Schedule Compression. A method used to shorten the schedule duration without
reducing the project scope.
Schedule Forecasts. Estimates or predictions of conditions and events in the project’s
future based on information and knowledge available at the time the schedule is
calculated.
Schedule Management Plan. A component of the project or program management
plan that establishes the criteria and the activities for developing, monitoring, and
controlling the schedule.
Schedule Model. A representation of the plan for executing the project’s activities
including durations, dependencies, and other planning information, used to produce a
project schedule along with other scheduling artifacts.
Schedule Performance Index (SPI). A measure of schedule efficiency expressed as
the ratio of earned value to planned value.
Schedule Variance (SV). A measure of schedule performance expressed as the
difference between the earned value and the planned value.
323Scope. The sum of the products, services, and results to be provided as a project. See
also project scope and product scope.
Scope Baseline. The approved version of a scope statement, work breakdown
structure (WBS), and its associated WBS dictionary that can be changed using formal
change control procedures and is used as the basis for comparison to actual results.
Scope Creep. The uncontrolled expansion to product or project scope without
adjustments to time, cost, and resources.
Scope Management Plan. A component of the project or program management plan
that describes how the scope will be defined, developed, monitored, controlled, and
validated.
S-Curve. A graph that displays cumulative costs over a specified period of time.
Self-Organizing Team. A cross-functional team in which people assume leadership
as needed to achieve the team’s objectives.
Sensitivity Analysis. An analysis method to determine which individual project risks
or other sources of uncertainty have the most potential impact on project outcomes by
correlating variations in project outcomes with variations in elements of a quantitative
risk analysis model.
Servant Leadership. The practice of leading the team by focusing on understanding
and addressing the needs and development of team members in order to enable the
highest possible team performance.
Simulation. An analytical method that models the combined effect of uncertainties to
evaluate their potential impact on objectives.
Single-Point Estimating. An estimating method that involves using data to calculate
a single value which reflects a best guess estimate.
Specification. A precise statement of the needs to be satisfied and the essential
characteristics that are required.
Sponsor. A person or group who provides resources and support for the project,
program, or portfolio and is accountable for enabling success.
Sprint. A short time interval within a project during which a usable and potentially
releasable increment of the product is created. See also iteration.
Stakeholder. An individual, group, or organization that may affect, be affected by, or
perceive itself to be affected by a decision, activity, or outcome of a project, program,
or portfolio.
Stakeholder Analysis. A method of systematically gathering and analyzing
324quantitative and qualitative information to determine whose interests should be taken
into account throughout the project.
Stakeholder Engagement Assessment Matrix. A matrix that compares current and
desired stakeholder engagement levels.
Stakeholder Engagement Plan. A component of the project management plan that
identifies the strategies and actions required to promote productive involvement of
stakeholders in project or program decision making and execution.
Stakeholder Performance Domain. The performance domain that addresses
activities and functions associated with stakeholders.
Stakeholder Register. A project document that includes information about project
stakeholders including an assessment and classification of project stakeholders.
Standard. A document established by an authority, custom, or general consent as a
model or example.
Statement of Work (SOW). A narrative description of products, services, or results
to be delivered by the project.
Status Meeting. A regularly scheduled meeting to exchange and analyze information
about the current progress of the project and its performance.
Status Report. A report on the current status of the project.
Steering Committee. An advisory body of senior stakeholders who provide direction
and support for the project team and make decisions outside the project team’s
authority.
Story Map. A visual model of all the features and functionality desired for a given
product, created to give the team a holistic view of what they are building and why.
Story Point. A unit used to estimate the relative level of effort needed to implement a
user story.
Strategic Plan. A high-level document that explains an organization’s vision and
mission plus the approach that will be adopted to achieve this mission and vision,
including the specific goals and objectives to be achieved during the period covered
by the document.
Strategy Artifacts. Documents created prior to or at the start of the project that
address strategic, business, or high-level information about the project.
Swarm. A method in which multiple team members focus collectively on resolving a
specific problem or task.
325SWOT Analysis. Analysis of strengths, weaknesses, opportunities, and threats of an
organization, project, or option.
Tacit Knowledge. Personal knowledge that can be difficult to articulate and share
such as beliefs, experience, and insights.
Tailoring. The deliberate adaptation of approach, governance, and processes to make
them more suitable for the given environment and the work at hand.
Task Board. A visual representation of the progress of the planned work that allows
everyone to see the status of the tasks.
Team Charter. A document that records the team values, agreements, and operating
guidelines, as well as establishes clear expectations regarding acceptable behavior by
project team members.
Team Performance Domain. The performance domain that addresses activities and
functions associated with the people who are responsible for producing project
deliverables that realize business outcomes.
Technical Performance Measures. Quantifiable measures of technical performance
that are used to ensure system components meet the technical requirements.
Template. A partially complete document in a predefined format that provides a
defined structure for collecting, organizing, and presenting information and data.
Test Plan. A document describing deliverables that will be tested, tests that will be
conducted, and the processes that will be used in testing.
Threat. A risk that would have a negative effect on one or more project objectives.
Threshold. A predetermined value of a measurable project variable that represents a
limit that requires action to be taken if it is reached.
Throughput. The number of items passing through a process.
Throughput Chart. A diagram that shows the accepted deliverables over time.
Time and Materials Contract (T&M). A type of contract that is a hybrid contractual
arrangement containing aspects of both cost-reimbursable and fixed-price contracts.
Timebox. A short, fixed period of time in which work is to be completed.
Tolerance. The quantified description of acceptable variation for a quality
requirement.
Trend Analysis. An analytical method that uses mathematical models to forecast
future outcomes based on historical results.
326Triple Bottom Line. A framework for considering the full cost of doing business by
evaluating a company’s bottom line from the perspective of profit, people, and the
planet.
Uncertainty. A lack of understanding and awareness of issues, events, path to follow,
or solutions to pursue.
Uncertainty Domain. The performance domain that addresses activities and
functions associated with risk and uncertainty.
Use Case. An artifact for describing and exploring how a user interacts with a system
to achieve a specific goal.
User Story. A brief description of an outcome for a specific user, which is a promise
for a conversation to clarify details.
Validation. The assurance that a product, service, or result meets the needs of the
customer and other identified stakeholders. See also verification.
Value. The worth, importance, or usefulness of something.
Value Delivery Office (VDO). A project delivery support structure that focuses on
coaching teams; building agile skills and capabilities throughout the organization; and
mentoring sponsors and product owners to be more effective in those roles.
Value Delivery System. A collection of strategic business activities aimed at
building, sustaining, and/or advancing an organization.
Value Proposition. The value of a product or service that an organization
communicates to its customers.
Value Stream Map. A display of the critical steps in a process and the time taken in
each step used to identify waste.
Value Stream Mapping. A lean enterprise method used to document, analyze, and
improve the flow of information or materials required to produce a product or service
for a customer.
Vanity Metric. A measure that appears to show some result but does not provide
useful information for making decisions.
Variance. A quantifiable deviation, departure, or divergence away from a known
baseline or expected value.
Variance Analysis. A method for determining the cause and degree of difference
between the baseline and actual performance.
Variance at Completion (VAC). A projection of the amount of budget deficit or
327surplus, expressed as the difference between the budget at completion and the
estimate at completion.
Velocity. A measure of a team’s productivity rate at which the deliverables are
produced, validated, and accepted within a predefined interval.
Velocity Chart. A chart that tracks the rate at which the deliverables are produced,
validated, and accepted within a predefined interval.
Verification. The evaluation of whether or not a product, service, or result complies
with a regulation, requirement, specification, or imposed condition. See also
validation.
Virtual Team. A group of people with a shared goal who work in different locations
and who engage with each other primarily through phone and other electronic
communications.
Vision Statement. A summarized, high-level description about the expectations for a
product such as target market, users, major benefits, and what differentiates the
product from others in the market.
Visual Data and Information. Artifacts that organize and present data and
information in a visual format, such as charts, graphs, matrices, and diagrams.
Voice of the Customer. A planning method used to provide products, services, and
results that truly reflect customer requirements by translating those customer
requirements into the appropriate technical requirements for each phase of project or
product development.
Volatility. The possibility for rapid and unpredictable change.
Waste. Activities that consume resources and/or time without adding value.
WBS Dictionary. A document that provides detailed deliverable, activity, and
scheduling information about each component in the work breakdown structure.
What-If-Scenario Analysis. The process of evaluating scenarios in order to predict
their effect on project objectives.
Wideband Delphi. An estimating method in which subject matter experts go through
multiple rounds of producing estimates individually, with a team discussion after each
round, until a consensus is achieved.
Work Breakdown Structure (WBS). A hierarchical decomposition of the total scope
of work to be carried out by the project team to accomplish the project objectives and
create the required deliverables.
Work Package. The work defined at the lowest level of the work breakdown
328structure for which cost and duration are estimated and managed.
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