Secrets to Mastering the WBS

WBS

Introduction

If you've managed projects, I am sure that you've experienced issues related to the project scope. These include discussions and arguments with the customers about what is and what isn't inside the scope, change requests, and delays, to name a few. It's common to face situations like the one depicted in Figure I.1 , where the customer requested a house but expected and wanted a castle; a totally different outcome. It's common to have initial scope definitions that don't match the final project scope. In this example, the customer initially requested a house and the project manager planned for it. The customer was not very clear about the scope at the beginning, nor did the project manager do a good job to understand and properly define the scope. As a result, throughout the project the customer requested more and more things, increasing the scope, timeline, and budget. The castle was delivered with delays, and exceeded the initial budget. Does this sound familiar? How can a project manager plan for a house and deliver a castle? How do you manage scope-related issues? How do you ensure a successful definition of the project scope? What are the tools you should use to help you minimize or avoid situations like this one? — This is what this book is all about. It's about helping you make a difference in your projects and sharing the secrets for you to master the scope management through the use of the work breakdown structure (WBS). You need to carefully plan and manage the scope and its changes to ensure a successful delivery.

In this book, you'll find some of the things that nobody else has written about the WBS. It'll change the way you think about and understand the WBS. The WBS is the cornerstone for successful scope and project management. You can learn to master the WBS and start producing better results in your projects. As you walk through the pages of this book, I'll lead you to discover how you can apply key WBS concepts and techniques to turn your project scope management practices from good to great.

WBS is not yet such a popular term in the project management world like the terms cost, risk, and schedule. In A Guide to the Project Management Body of Knowledge (PMBOK® Guide)—Fifth Edition¹ the words risk, cost, and scope are mentioned over 1,000 times, while WBS appears less than 140 times. Perhaps there should be a shift in focus to promote good scope management and effective uses of the WBS to decrease the number of projects that fail or don't meet their goals. In a global research study, PriceWaterhouseCoopers surveyed 200 companies in 30 countries. They found that scope changes are the second most important and frequent reason for project failure, as illustrated in Figure I.2.

The proof of this statement goes beyond research and statistics. You can search over the Internet and you'll easily find studies³ that cite several related reasons for project failure including:

lack of or poor project planning,

changing requirements or specifications, and

inadequately trained or inexperienced project managers.

These reasons lead to missed deadlines, exceeded budgets, poor communications, and an inability to meet project requirements, to name a few.

I've used the WBS in real-world projects, as well as proven its benefits to the project, its stakeholders, and to me, the project manager. You can succeed by using this tool, which is simple, but powerful and versatile. I use the WBS in risky and complex projects as well as low-risk and short-term projects. I use it in my country and when I work across continents. I use it with team members who speak my language and with those project teams that speak different languages. And the value of a WBS remains the same—it's just an incredible tool that makes a positive impact on your projects when you use it correctly.

The WBS still doesn't receive the credit it deserves. It's common to find project managers defining a project from a schedule instead of from a well-defined scope and WBS. Some project managers talk about when to do something when it's still unclear what the project must deliver. You might ask how reliable costs, resources, and time estimates are when the scope is not clear. That would be a valid question.

I presented the Secrets to Mastering the WBS in Real-World Projects at an important project management congress where I met Mauricio, who is a project management consultant and certified with the Project Management Professional (PMP)® credential. Yours is a very important topic because in this country, we don't know how to use the WBS, he said. I smiled. It sounded like a strong comment. I can't say that all the project management professionals in his country don't know how to use the WBS. I know some professionals from that country and other regions of the world who properly use the WBS and obtain positive results in their projects. However, what I believe Mauricio meant to say was that many, or the majority of the project managers still don't know how to properly apply the WBS in real-world projects. Some of them still wonder about its benefits. This is one of the reasons why I wrote this book. If you don't use the WBS, this book will help you learn to master it. If you already use the WBS, you'll discover new tips and valuable information and examples to increase your performance and project results.

This book provides you with the most practical approach to using the WBS in real-world projects. By offering you this practical approach, which is different than that of many other texts, I hope to provide you with a unique learning experience.

The most practical approach of this book is evidenced throughout, as it includes more than 200 examples, figures, screenshots, and comparison charts, as well as dozens of real-world stories and lessons learned. You'll see samples of my WBSs and project documents. Most of this book is written in a simple, questions-and-answers format to keep the discussion at a practical level. You'll learn the 20 key benefits of properly using the WBS and a proven step-by-step approach to creating valuable WBSs. My intention is for you to easily and quickly understand how to create and use a WBS and to help you drastically enhance your project scope management.

I went on a business trip with work mates from the Project Management Institute (PMI) to attend a conference in Argentina. There, the PMI President and Chief Executive Officer (CEO) at that time, Gregory Balestrero, spoke about project management in the region. Mr. Balestrero is recognized globally as a keynote speaker who addresses many types of professionals from CEOs and government officials to project managers and business people. I liked the speech and told Mr. Balestrero that one of the things I liked about it was that he presented it in a simple way. "You know, I like to talk simple because I want everybody to understand what I say," he said. His comment resonated with me. When I decided to write this book, I decided to keep it simple, to use simple words and concepts, because my goal is for you to read this book and right after, start mastering the WBS in your projects. I'm convinced that the WBS is a simple tool. You just need to know a series of concepts and then put them into practice. However, its simplicity doesn't mean it's trivial. The WBS is one of the most outstanding project management tools.

The key differences of this book include:

its simplicity and new material,

its how-to and practical approach,

its alignment with the PMBOK® Guide—Fifth Edition,

its addressing of key current topics like WBS and agile, and global or virtual projects,

its explanation of the differences between the WBS and the list of activities or schedule,

its clarification about typical confusions with the WBS,

the top 20 benefits and a proven step-by-step approach to create a valuable WBS,

the most comprehensive WBS software tools revision,

the role of the project management office (PMO) in the WBS,

first WBS book also available in Spanish,

its explanation of the different baselines that a project manager must manage, and

its ability to help you quickly learn what you need to master the WBS, and more.

In addition to learning WBS fundamentals and principles in the first six chapters, in chapter 7 I'll review several WBS software tools and provide a unique comparison chart of these tools as well as a single source where you can examine about thirty more WBS-related software. Chapter 8 tackles the central topic of managing the project scope, scope changes, and scope baseline using the WBS, as well as the role of requirements in scope management. In chapter 9, you'll learn how to manage the schedule and cost baseline, how to integrate the WBS with the schedule and costs, and the benefits of doing that. You'll see in chapter 10 how you can use and maximize the value of the WBS in project communications, risks, human resources, acquisitions, quality, and how the use of colors and images improves communications.

This book is also geared toward global project managers as chapter 11 addresses the WBS and its fit in global, virtual, and multicultural projects.

Chapter 12 presents a rich discussion about the WBS and scope in agile project management, and the alignment between agile and the PMBOK® Guide.

In my experience, the WBS, more often than not, is the differentiating factor between successful and poor project management. It's a tool for real-world projects, from small to large.

Overall, this book will enrich your knowledge and provide you many new and fresh ideas and tips about how to use the WBS in the context of project, program, and portfolio management.

All you need to know and apply to master the WBS is here. This is the first WBS book aligned with the PMBOK® Guide—Fifth Edition. It's also aligned with the latest editions of PMI's Practice Standard for Work Breakdown Structures and the Practice Standard for Scheduling, and pulls from other top authors and leaders in the profession. The reason for aligning my book with PMI's global standards is not only because I've proven the value of the application of these standards in my real-world projects, but also because they present generally recognized good practices, concepts, tools, and frameworks that are globally applicable to most projects most of the time. These standards are not created by one organization or agency, or used in one country, or in one or a few industries. They gather universal experience and knowledge from project managers with diverse backgrounds from around the globe. In spite of the said alignment, I don't assume that you are familiar with the PMBOK® Guide, so I present the concepts in this book in such a way that you can understand the WBS even if you are not familiar with the PMBOK® Guide.

There are several reasons why I wrote this book. Primarily, I wrote it because I felt the need and demand to focus on the practice of using the WBS so that I could share what I've learned with a remarkable practical approach. Secondly, I didn't find in existing literature responses to several questions I had about the WBS and like many other project managers, I didn't have the time to research the answers. So I wrote this book to fill in the gap on how you can quickly apply and put into practice the WBS. Just read the table of contents and you'll see how many questions are presented and you'll easily find the answers in this book.

After one of my presentations about the WBS in a congress, an attendee congratulated me for the way I portrayed WBS topics and examples. She said that my approach filled the gap and clarified confusions about the WBS. This person was the keynote speaker scheduled to close the congress, Janice Thomas, PhD, one of the authors of the widely known book Researching the Value of Project Management (PMI, 2008) and program director for the MBA in Project Management of the Athabasca University in Canada. This was more confirmation that I had to write this book and share this information with you. I realized there is still much confusion about the WBS and felt compelled to address and it in a clear and simple way.

Finally, I want you to be among that group of project managers who master the WBS and who are able to apply it to be more successful. I hope to convince you how the WBS can help you improve the way you plan and manage your projects. This is not a theoretical book, it's written from a project manager, consultant, and trainer to those who somehow practice the profession of project management. It contains the most current information and practice trends on the WBS. I'll transmit the things you must know about WBS and you'll know why it's one of my favorite project management tools.

Keep on reading and learn how to use the WBS or improve yourself in its use right away! Don't close this book. It's in your hands to start making a positive impact in your projects right now!

1      Unless otherwise stated, all material quoted from the PMBOK® Guide is referenced to the Fifth Edition (PMI, 2013). The PMBOK® Guide is the most globally recognized and accepted project management standard published by Project Management Institute Inc. (PMI).

2      Evrard, E. and Nieto, A. 2004. Boosting business performance through program and project management. Belgium. PriceWaterhouseCoopers. 15.

3      Including the Standish Group, Bull and KPMG Surveys, OASIG Studies and Chaos Reports, and PM Network Magazine articles.

chapter 1

What is the WBS?

We need more than talent to achieve. We need preparation. This applies to everything, from soccer to project management.

Preparation comes with learning and then putting what we learned into practice. To master the work breakdown structure (WBS), you need to first learn about it, and then put its concepts into practice in your real-world projects. Otherwise, what you know will remain at a theoretical and unproven level. Before I explain in the next chapter why I believe you should use the WBS and what its benefits are, I'll now define and explain the WBS and its application in programs and portfolios.

WHAT IS THE WBS?

WBS stands for work breakdown structure. The WBS is a structure used to break down or divide the project work, to better manage the project scope, and to define and communicate the scope.

The WBS is not what we have to do (tasks). It's what we have to deliver (deliverables). It's the answer to what must be delivered to accomplish the project successfully. It presents the end vision, not the means to accomplish it. It's the answer to what's inside the project scope. It gives a full picture of the work to be performed among the stakeholders.

In practical terms, the WBS is what to deliver. It's not the how or when you'll deliver it. It isn't what to do. It isn't the list of activities or the schedule that tells you how to execute the work and what tasks you need to deliver the project's end results. It's a fundamental tool to properly manage the project scope. It requires you to focus on outcomes, outputs, or, said differently, project deliverables.

These aren't academic or formal definitions. They are the way I define the WBS when I am with my project stakeholders. However, they are supported by global standards as presented below.

According to The Practice Standard for Work Breakdown Structures, from PMI, the WBS subdivides the project work into smaller, more manageable pieces of work, with each descending level of the WBS representing an increasingly detailed definition of the project work. ¹

The definition says that the WBS helps you subdivide the project work into smaller, more manageable pieces. This means that when you start a project and you are assigned to manage something that is new or complex for you, the