Glossary

360-degree appraisal A performance review completed by a person’s peers, managers,

and subordinates. It’s called a 360-degree appraisal because it’s a circle of reviews by people at
different levels of an organization.

acceptance A response to a risk event, generally made when the probability of the event
and/or its impact is small. It is used when mitigation, transference, and avoidance are not selected.

active listening Occurs when the receiver confirms the message is being received by
feedback, questions, prompts for clarity, and other signs of having received the message. The
message receiver paraphrases what’s been said to fully understand and confirm the message,
providing an opportunity for the sender to clarify the message if needed.

active problem-solving Active problem-solving begins with problem definition. Problem

definition is the ability to discern between the cause and effect of the problem. Root-cause
analysis looks beyond the immediate symptoms to the cause of the symptoms, which then
affords opportunities for solutions.

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activity attributes Activities that have special conditions, requirements, risks, and other
conditions should be documented. Activity attributes include information on duration, effort,
successors and predecessors, and resources.

activity list A listing of all the project activities required to complete each project phase or
the entire project.

activity-on-node (AON) A network diagramming approach that places the activities on a

node in the project network diagram.

activity sequencing The process of mapping the project activities in the order in which the
work should be completed.

actual costs (AC) The amount of funds the project has spent to date. The difference between
actual costs and the earned value will reveal the cost variance.

adaptive life cycle Life cycles can be either iterative or incremental. Change is highly
probable, and the project team will be working closely with the project stakeholders. You might
also know this approach as agile or change-driven.

adjourning The final stage of team development; once the project is done, the team
moves on to other assignments as a unit, or the project team is disbanded and individual team
members go on to other work.

affinity diagram A diagram that clusters similar ideas together and allows for
decomposition of ideas to compare and contrast project requirements.

alternative analysis Data analysis technique used to consider the corrective and preventive
actions to take in the project. You are analyzing the different options available.

ambiguity risks These risks are impossible to predict accurately—for example, certainty of
a new technical solution, future laws or regulations, even complexity in the project approach.

analogous estimating A form of estimating that relies on historical information to predict

estimates for current projects. Analogous estimating is also known as top-down estimating and
is a form of expert judgment.

application areas The areas of discipline that a project may center upon. Consider
technology, law, sales, marketing, and construction, among many others.

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appraisal costs The costs of measuring, testing, auditing, and evaluating the project’s
product to confirm that quality has been achieved in the work results.

assumption log A document that clearly identifies and tracks assumptions that are made
in the project. All assumptions need to be tested for their validity, and the outcome of the test
should be recorded.

autocratic The project manager, sponsor, or other authority makes all of the project
decisions.

avoidance One response to a risk event. The risk is avoided by removing the risk from the
project.

avoiding power The project manager or other decision-maker refuses to act, get involved,
or make decisions.

basis of estimates Explanation of how the activity duration and cost estimates were
created.

benchmarking The process of using prior projects internal or external to the performing
organization to compare and set quality standards for processes and results.

benefit/cost analysis The process of determining the pros and cons of any project,
process, product, or activity.

benefit/cost ratio (BCR) Shows the proportion of benefits to costs; for example, 4:1 would
equate to four benefits to one cost.

benefit measurement methods Project selection methods that compare the benefits of
projects to determine into which project the organization should invest its funds.

benefits management The management and control of when the benefits of the project
will become available. Some projects have benefits only once the project is complete; other
projects will have intermittent benefits for the organization.

bid A document presented by the seller to the buyer. Used when price is the determining
factor in the decision-making process.

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bidder conference A meeting with a group of prospective sellers and buyer representatives
that ensures that all sellers have a clear understanding of the product or service to be
procured. Bidder conferences enable sellers to query the buyer on the details of the project
and product to help ensure that the proposal a seller creates is adequate and appropriate for
the proposed agreement.

bottom-up estimating A technique by which an estimate for each component in the WBS
is developed and then totaled for an overall project budget. This is the most time-consuming
method to complete, but it provides the most accurate estimate.

brainstorming A process performed by a project team to identify the risks within the project.
A multidisciplinary team, hosted by a project facilitator, can also perform brainstorming. It is
the most common approach to many processes within a project, such as estimating costs and
predicting duration.

bubble chart A hierarchical chart that uses three parameters for mapping the axes of the
risks and the magnitude of the third parameter. The larger the bubble, the more significant the
parameter.

budget at completion (BAC) The predicted budget for the project; what the project
should cost when it is completed. Budget at completion represents 100 percent of the planned
value for the project’s completion.

burndown chart A graph that tracks the project’s completeness, including scope changes,
in a downward curve against the project timeline.

burnup chart A graph that tracks the project’s completeness in an upward curve against the
project timeline.

business analyst Organizational role that is responsible for eliciting requirements from
stakeholders and analyzing the requirements to predict feasibility, likelihood of project success,
and estimated time and costs to create the requirements.

business requirements Why the project has been initiated and what the high-level
expectations are for the project deliverables and performance. As the project scope is developed,
more detailed business requirements may emerge.

business value The total value of the tangible and intangible elements of an organization.
Consider liquid assets, real estate, equipment, reputation, brand recognition, and trademarks.

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causal analysis The analysis of why a problem exists to develop an understanding of why
the problem is happening. Root-cause analysis defines the problem, or the effect you’re trying to
resolve, and then identifies all of the causal factors that may be independently or collaboratively
contributing to the defect.

cause-and-effect diagrams Used for root-cause analysis to determine what factors are
creating problems within a project. The goal is to identify and treat the root of the problem, not
the symptom.

centralized contracting All contracts for all projects need to be approved through a central
contracting unit within the performing organization.

change control board (CCB) A group of decision-makers that reviews proposed project
changes.

change control system (CCS) A predefined set of activities, forms, and procedures that
establishes how project change requests may proceed.

change log As changes to any part of the project emerge during the project, they should be
recorded in the change log for future reference.

charismatic leadership The leader is motivating, has high-energy, and inspires the team
through strong convictions about what’s possible and what the team can achieve. Positive
thinking and a can-do mentality are characteristics of a charismatic leader.

chart of accounts A coding system used by the performing organization’s accounting system
to account for the project work.

checklist A listing of activities that workers check to ensure that the work has been completed
consistently; used in quality control.

checksheet Also called a tally sheet. Used to count errors and defects in different categories
of failure in the project, but can be used with any checklist, even those not related to defects.

Code of Ethics and Professional Conduct The PMI code that addresses the values
project managers should possess, including responsibility, respect, fairness, and honesty.

coercive power The project manager or other person with authority in the organization
uses fear and threats to manage the project team.

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collective bargaining agreements Contractual agreements initiated by employee

groups, unions, or other labor organizations; they may act as a constraint on the project.

commercial risks When working with vendors, new risks are introduced to the project
specific to the contractual relationship. Risk categories can include the contract terms, internal
procurement procedures, suppliers, subcontracts, client and customer stability, and any
partnerships or joint ventures.

communication management plan A plan that documents and organizes the

stakeholder needs for communication. This plan covers the communications system, its
documentation, the flow of communication, modalities of communication, schedules
for communications, information retrieval, and any other stakeholder requirements for
communications.

communications formula The formula N(N – 1) / 2 shows the number of communication

channels in a project. N represents the total number of stakeholders.

composite structure An organizational structure that uses a blend of the functional,

matrix, and project-oriented structures to operate and manage projects.

compromising A conflict resolution approach that requires both parties to give up

something. The ultimate decision is a blend of both sides of the argument. Because neither
party completely wins, it occasionally results in a lose-lose solution.

confidentiality A project manager should keep certain aspects of a project confidential,

such as contract negotiations, human resource issues, and trade secrets of the organization.

configuration management The control and documentation of the project’s product

features and functions.

conflict of interest A situation in which the project manager could influence a decision for
personal gain. This is a core item in the PMI Code of Ethics and Professional Conduct that all
PMI members and PMI certificate holders and candidates must adhere to.

constraints Anything that limits the project manager’s options: time, cost, and scope are
always project constraints.

context diagram A diagram that illustrates all of the components, called “actors,” that
interact with a project’s solutions, such as systems, software, hardware, and people.

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contingency reserve A time or dollar amount allotted as a response to risk events that
may occur within a project.

contract A legal, binding agreement, preferably written, between a buyer and seller detailing
the requirements and obligations of both parties. Must include an offer, an acceptance, and a
consideration.

contract administration The process of ensuring that the buyer and the seller both
perform to the specifications within the contract.

contract change control system Defines the procedures for how contracts may be
changed. Includes the paperwork, tracking, conditions, dispute resolution procedures, and
procedures for getting the changes approved within the performing organization.

contract closeout A confirmation that the obligations of the contract were met as expected.
The project manager, the customer, the key stakeholders, and, in some instances, the seller
complete the product verification together to confirm the contract has been completed.

contract file A complete indexed set of records of the procurement process incorporated
into the administrative closure process. These records include financial information as well as
information on the performance and acceptance of the procured work. This is also known as
the procurement file and it becomes part of organizational process assets.

control chart Illustrates the performance of a project over time. It maps the results of
inspections against a chart. Control charts are typically used in projects or operations that
have repetitive activities, such as manufacturing, testing series, or help desk functions. Chart
trending and upper and lower control and specification limits indicate whether values are in
control or out of control.

controlling PMO Defines project governance through project management frameworks,

templates, forms, project management activities, and communications. The project management
office (PMO) control is considered moderate.

corrective actions Actions taken to correct problems and to ensure that the project work is
in alignment with plans.

cost baseline Usually shown in an S-curve, the cost baseline indicates what the project is
expected to spend. It enables the project manager and management to predict when the project
will be spending monies and over what duration. The purpose of the cost baseline is to measure
and predict project performance.

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cost–benefits analysis Data analysis technique used to examine of the cost of the
proposed corrective actions you may take and the consideration of the benefits these actions
may bring to the project.

cost budgeting A process of assigning a cost to individual work packages. This process
shows costs over time. The cost budget results in an S-curve that becomes the cost baseline for
the project.

cost change control This is part of the integrated change control system and documents
the procedures to request, approve, and incorporate changes to project costs.

cost control An active process to control causes of cost change, to document cost changes,
and to monitor cost fluctuations within the project. When changes occur, the cost baseline
must be updated.

cost estimating The process of calculating the costs, by category, of the identified resources
to complete the project work.

cost management plan A subsidiary plan of the overall project management plan that
defines how costs will be estimated, budgeted, and controlled. The plan may be based on a
range of acceptable variances and the expected response to variances over a given threshold.

cost performance index (CPI) The process of calculating the costs, by category, of the
identified resources to complete the project work.

cost plus award fee contract A contract that requires the buyer to pay for all the project
costs and give the seller an award fee based on the project performance, meeting certain project
criteria, or meeting other goals established by the buyer. The award fee can be tied to any factor
the buyer determines, and the factor doesn’t have to be exact.

cost-reimbursable contracts A contract that pays the seller for the product. In the
payment to the seller is a profit margin of the difference between the actual costs of the product
and the sales amount.

cost variance (CV) The difference between the earned value and the actual costs.

crashing A duration-compression technique that adds project resources to the project in an

effort to reduce the amount of time allotted for effort-driven activities.

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critical path method (CPM) A network diagramming approach that identifies the project
activities that cannot be delayed or the project completion date will be late.

cultural norm The accepted practices, culture, ideas, vision, and nature of an organization.

culture shock The initial disorientation a person experiences when in a foreign environment.

decision tree analysis A type of analysis that determines which of two decisions is the
best. The decision tree assists in calculating the value of the decision and determining which
decision costs the least.

decoder Part of the communications model; it is the inverse of the encoder. If a message is
encoded, a decoder translates it back to usable format.

decomposition The process of breaking down the major project deliverables into smaller,
manageable components. The smallest item of the project’s decomposition into the WBS is the
work package.

dedicated project team A project team that works full time on the project for the duration
of the project.

defect repair Actions taken to fix defects within the project. Defect repair will also require
validation that the defects were corrected properly.

deliverable A thing that a project creates; projects generally create many deliverables as
part of the project work.

Delphi Technique A method to query experts anonymously on foreseeable risks within

the project, phase, or component of the project. The results of the survey are analyzed and
organized, and then circulated to the experts. There can be several rounds of anonymous
discussions with the Delphi Technique. The goal is to gain consensus on project risks, and the
anonymous nature of the process ensures that no one expert’s advice overtly influences the
opinions of other participants.

Design for X (DfX) A philosophy in product design where the X can mean, excellence, or,
more often, a specific characteristic of a solution. The X is usually a variable that the project is
trying to address, such as cost, uptime, return on investment, or another facet the organization
is pursuing.

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design of experiments approach Relies on statistical “what-if” scenarios to determine

which variables within a project will result in the best outcome; can also be used to eliminate
a defect. This approach is most often used on the product of the project, rather than on the
project itself.

development life cycle Defines how the project will happen. The life cycle is typically a
predictive or adaptive life cycle, depending on the project and the enterprise environmental
factors.

direct costs Costs incurred by the project in order for it to exist. Examples include
equipment needed to complete the project work, salaries of the project team, and other
expenses tied directly to the project’s existence.

directive PMO A project management office that manages and controls all projects within
the organization. The PMO control is considered high.

discretionary dependencies Project activities do not have to be completed in a particular

order; instead, these tasks can be completed in the order determined by the project manager or
at the project manager’s or project team’s discretion.

duration estimates The prediction of how long the project activities will take to complete
in work units.

earned value The value of the work that has been completed and the budget for that work:
EV = % Complete × BAC.

earned value management (EVM) Integrates scope, schedule, and cost to provide an
objective, scalable, point-in-time assessment of the project. EVM calculates the performance of
the project and compares current performance against the plan. EVM can also be a harbinger of
things to come. Results early in the project can predict the likelihood of the project’s success or
failure.

emotional intelligence A person’s awareness of their inbound and outbound emotions; by

becoming emotionally intelligent, the person can better control their emotions and understand
the emotions of others.

encoder Part of the communications model; the device or technology that packages the
message to travel over the medium.

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enhance To attempt to modify the probability of a risk and/or its impacts to realize the most
gains from it.

enterprise environmental factors Elements that create the boundaries for the project
manager. These may help or hinder the project manager’s ability to navigate within the project.
Examples include rules, regulations, industry standards, and organizational procedures the
project manager is obliged to follow.

escalate risk response Some risks that are outside of the boundary of the project should
be escalated when the project team, project sponsor, or project manager believes the risk
management would exceed the authority the project manager has over the risk event.

estimate at completion (EAC) A hypothesis of what the total cost of the project will
be. Before the project begins, the project manager completes an estimate for the project
deliverables based on the WBS. As the project progresses, there will likely be some variance
between the cost estimate and the actual cost. The EAC is calculated to predict what the
new estimate at completion will be.

estimate to complete (ETC) Represents how much more money is needed to complete
the project work: ETC = EAC – AC.

estimating publications Typically, a commercial reference to help the project estimator

create, confirm, and predict the accuracy of estimates. If a project manager elects to use one of
these commercial databases, the estimate should include a pointer to this document for future
reference and verification.

ethics The personal, cultural, and organizational interpretation of right and wrong; project
managers are to operate ethically and fairly per the PMI Code of Ethics and Professional Conduct.

ethnocentrism Happens when individuals measure and compare a foreigner’s actions

against their own local culture. Ethnocentric people typically believe their own culture is superior
to the foreigner’s culture.

evaluation criteria Used to rate and score proposals from sellers. In some instances,
such as a bid or quote, the evaluation criterion is focused just on the price the seller offers. In
other instances, such as a proposal, the evaluation criteria can be multiple values: experience,
references, certifications, and more.

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exit criteria Defines the criteria that must be present for the project to move from one
phase to the next.

Expected Monetary Value (Ex$V) The amount of funds that represents the risk exposure
in a quantitative risk analysis risk matrix. It’s found by multiplying the risk probability by the
dollar amount of the risk impact.

expert power The project manager has deep skills and experience in a discipline (for
example, years of working in IT helps an IT project manager better manage IT projects).

explicit knowledge Knowledge that can be quickly expressed through documentation,

conversations, facts, and figures.

exploit The organization wants to ensure that the identified positive risk does happen so
that the positive impact associated with the risk event is realized.

external enterprise environmental factors Factors that are outside of the organization’s
control but that confine the decision for the project manager and the project. For example, laws
and regulations are external enterprise environmental factors that directly affect the project
manager.

facilitated workshop A collection of stakeholders from around the organization that come
together to analyze, discuss, and determine the project requirements.

failure costs The cost of completing the project with unacceptable quality, including wasted
time for corrective actions, rework, and wasted materials. Failure costs include internal failure
costs, which is the cost of corrective actions and defect repair incurred by doing the work
twice. External failure costs describe the loss of sales and opportunities, and damage to the
organization’s reputation due to poor quality.

failure mode and effect analysis (FMEA) An analytical technique used to identify the
severity of something that has failed within the project and the likelihood that the failure will
occur again.

fast-tracking A duration-compression technique that allows activities or entire phases of a

project to overlap other phases.

fault tree analysis Deductive reason to start very broad with the identified fault and then
narrow the likely causes into most likely causes.

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feedback Sender confirmation of a message by asking questions, requesting a response, or

other confirmation signals.

finish no earlier than (FNET) A project constraint that requires an activity to finish no
earlier than a specific date.

finish-to-finish A relationship between project activities whereby the predecessor activities

must finish before successor activities may finish.

finish-to-start A relationship between project activities whereby the predecessor activities

must finish before the successor activities may start; this is the most common network
diagramming relationship type.

fist-to-five voting A process by which team members vote using their hands. For instance,
a team may rate the accuracy of an activity duration estimate by showing their fists, which
represent low confidence, or up to five fingers, which shows higher confidence. Votes of three
fingers or less are discussed to gain consensus.

fixed costs Costs that remain the same throughout the project.

fixed-price contracts Fixed-price contracts are also known as firm fixed-price and lump-
sum contracts. These contracts have a preset price for which the vendor is obligated to perform
the work or to provide materials for the agreed-upon price.

fixed-price with economic price adjustment contract A contract for long-term

projects that may span years to complete the project work. The contract does define a fixed price,
with caveats for special categories of price fluctuation.

float A generic term that describes the amount of time an activity may be delayed without
delaying any successor activities’ start dates.

flowchart A chart that illustrates how the parts of a system occur in sequence.

focus groups A meeting for stakeholders to have a conversation about the project goals,
concerns, requirements, and other project information.

force majeure A powerful and unexpected event, such as a hurricane or other disaster.

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forcing A conflict resolution method whereby one person dominates, or forces, his point of
view or solution to a conflict. This is also known as directing.

forecast Throughout the project, the project manager will create forecasts about the
expected project completion date and projected project costs.

formal power The project manager has been assigned by senior management to be in
charge of the project.

forming Part of the Tuckman model for team formation. The initial stage of team
development, in which the project team members meet and learn about their roles and
responsibilities on the project.

fragnet Repetitive actions within a network diagram that can be reused. It is sometimes
a portion of the project that is usually contracted to a vendor to complete, yet the project
work is still represented in the project network diagram.

functional managers The managers of the permanent staff in each organizational

department, line of business, or function such as sales, finance, and technology. Project
managers and functional managers interact for project decisions that affect functions,
projects, and operations.

functional organizations Entities that have a clear division regarding business units and
their associated responsibilities. Project managers in functional organizations have little power
and report to the functional managers, and the project team exists within one department.
This is an organization that groups staff according to their expertise—for example, sales,
marketing, finance, and information technology.

future value A formula to predict the current amount of funds into a future amount of funds.
The formula is Future Value = Present Value (1 + i)n, where i is the interest rate and n is the
number of time periods.

Gantt chart A bar chart against a calendar to show the duration of activities and the sequence
of activities in a project.

guilt-based power The project manager or other person makes the team and stakeholders
feel guilty in order to gain compliance in the project.

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halo effect When one attribute of a person influences a decision that is often based solely
on the single attribute.

hard logic The project activities must be completed in a particular order; this is also
known as mandatory dependencies.

Herzberg’s Theory of Motivation Posits that there are two catalysts for workers: hygiene
agents and motivating agents. Hygiene agents do nothing to motivate, but their absence
demotivates workers. Hygiene agents are the expectations all workers have: job security,
paychecks, clean and safe working conditions, a sense of belonging, civil working relationships,
and other basic attributes associated with employment. Motivating agents are components such
as reward, recognition, promotion, and other values that encourage individuals to succeed.

histogram A bar chart, such as a Pareto diagram.

historical information Any information created in the past that can help the current
project succeed.

hybrid life cycle A combination of predictive and adaptive life cycles. Parts of the project
can follow the predictive life cycle, such as project requirements and the budget, yet still utilize
the flexibility and iterations that the adaptive life cycle offers.

hybrid organizational structure The organization utilizes a mix of other project

structures to create a project structure for a specific project. For example, an organization
could be a weak matrix, but for one high-priority project, it shifts to create a project-centric
environment.

inappropriate compensation An inappropriate compensation, such as a bribe, that the

project manager is expected to avoid. The project manager is to act in the best interest of the
project and the organization. This is part of PMI’s Code of Ethics and Professional Conduct.

incremental life cycle Creates the final product deliverable through a series of iterations.
Each iteration of the project will add more and more functionality. Iterations are a
predetermined set amount of time, such as two or four weeks, for example.

indirect costs Costs that can be shared across multiple projects or operations that use the
same resources—such as costs to rent a training room or a piece of equipment.

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individual project risk An individual risk that hinders or helps obtain the project
objectives, as opposed to overall project risk.

influence diagram A diagram that charts out a decision problem by identifying all of the
elements, variables, decisions, and objectives, and how each factor may influence others.

informational power The individual has power and control of the data gathering and
distribution of information.

ingratiating power The project manager aims to gain favor with the project team and
stakeholders through flattery.

integrated change control The analysis of a change’s effect on all components of the
project. It examines the proposed change and how it may impact scope, schedule, costs, quality,
resources, communications, risk, procurement, and stakeholder management.

interactional leadership The leader is a hybrid of transactional, transformational, and

charismatic leaders. The interactional leader wants the team to take action, is excited and
inspired about the project work, yet still holds the team accountable for their results.

interactive communications Communication methods that involve interactions with

other stakeholders via meetings, phone calls, and videoconferencing.

internal dependencies Dependencies that are internal to the project and are often related
to the nature of the work that’s being completed.

internal enterprise environmental factors Factors unique to the organization that

confine the project decisions.

internal rate of return A benefit measurement formula to calculate when the present value
of the cash inflow equals the project’s original investment.

interview One-on-one discussion used in project integration management as part of the

data-gathering technique to create the project charter.

invitation for bid A document from the buyer to the seller that asks the seller to provide a
price for the procured product or service.

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Iron Triangle A term used to describe the three constraints of every project: time, cost, and
scope. The sides of the Iron Triangle must be kept in balance or the quality of the project will
suffer.

ISO 9000 An international standard that helps organizations follow their own quality
procedures. ISO 9000 is not a quality system, but a method of following procedures created by
an organization.

issue Any point of contention or debate, or a decision that has not yet been made in the
project that may affect the project’s success. Issues are also risk events that have occurred.

issue log Issues, such as risk events or points of contention, are recorded in the issue log,
along with an issue owner designation, an issue date for resolution, and the eventual outcome of
the issue. Each issue is assigned an issue owner and an ideal date for resolution, and its status is
maintained through the issue log.

iterative life cycle An approach that requires that the project scope be defined at a high
level at the beginning of the project, but the costs and schedules are developed through
iterations of planning as the project deliverable is more fully understood. The project moves
through iterations of planning and definition based on discoveries during the project execution.

just-in-time (JIT) manufacturing Material is received and resources are placed on the
project as late as possible in the schedule. This approach reduces waste, keeps inventory at a
minimum, and helps the project manager forecast resource utilization more accurately.

kaizen A Japanese business philosophy that suggests that implementing small changes to the
organization and project team over time will result in large changes overall. Kaizen posits that
small changes in processes are easier to accept and incorporate than large, sweeping changes for
the organization or project.

Kanban A sign board to show work in progress as requirements move through the
predefined stages of a project. Most often used in lean and agile environments.

knowledge management A systematic way of collecting, distributing, and storing useable

knowledge in the project.

lag Time added to a project activity to delay its start time; lag time is considered positive time
and is sometimes called waiting time.

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laissez-faire leadership The leader takes a hands-off approach to the project. This means
the project team makes decisions, takes initiative in the actions, and creates goals. Although this
approach can provide autonomy, it can make the leader appear absent when it comes to project
decisions.

lead The time in which a task can be started earlier than scheduled; lead time is negative
time, as it moves the activities closer to the project’s start date.

leadership Aligning, motivating, and inspiring the project team members to do the right
thing, build trust, think creatively, and challenge the status quo.

leading stakeholders Stakeholders who are aware of your project, want the project to
succeed, and are leading the charge to make certain the project outcome is positive.

lessons learned register An ongoing collection of documentation about what has and has
not worked in this and other projects; the project manager and the project team participate in
lessons learned creation.

letter of intent Expresses the intent of the buyer to procure products or services from the
seller. Not equivalent to a contract.

majority decision A group decision process by which a vote is offered and the majority
wins.

make-or-buy analysis Used in determining what part of the project scope or where a
project’s deliverable should be made or purchased.

management A group that utilizes positional power to maintain, administrate, control, and
focus on getting things done without challenging the status quo of the project and organization.

managing project knowledge Project management process to manage all knowledge

within the project. This includes refining the knowledge, documenting what was learned,
making the information available to others, and archiving the documentation to be part of
organizational process assets.

mandatory dependencies Project activities must happen in a particular order due to the
nature of the work; also known as hard logic.

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Maslow’s Hierarchy of Needs A theory that states that all humans have five layers of
needs: physiological, safety, social, esteem, and the crowning jewel, self-actualization.

matrix structure An organization that groups staff by function but openly shares
resources on project teams throughout the organization. Project managers in a matrix structure
share the power with functional management. Three types of matrix structures—weak,
balanced, and strong—describe the amount of authority for the project manager.

McClelland’s Theory of Needs A theory that states that all humans have three needs:
achievement, affiliation, and power. One of the needs drives a person’s actions.

McGregor’s Theory of X and Y A theory that states that “X” people are not motivated to
work, don’t want to work, and need to be micromanaged. “Y” people are self-led, motivated,
and strive to accomplish.

media selection The process of choosing the right media for a message. The choice is
based on the audience and the message being sent.

medium Part of the communications model; this is the path the message takes from the
sender to the receiver. It is the modality in which the communication travels and typically refers
to an electronic model, such as e-mail or the telephone.

meeting management How the meeting is led, managed, and controlled to influence
the message being delivered. Agendas, minutes, and order are mandatory for effective
communication within a meeting.

milestone chart Shows when milestones are expected to be reached in the project schedule
and when the milestone was actually achieved.

mind mapping A visual representation of like and opposing ideas, thoughts, and project
requirements.

mitigation Reducing the probability or impact of a risk.

monitor communications Project management process that ensures that communication

happens according to the project’s communication management plan.

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Monte Carlo analysis A “what-if” scenario tool to determine how scenarios may work
out, given any number of variables. The process doesn’t create a specific answer, but a range of
possible answers. When Monte Carlo is applied to a schedule, it can present, for example, the
optimistic completion date, the pessimistic completion date, and the most likely completion
date for each activity in the project.

multicriteria decision analysis tools Also called multiple-criteria decision-making tools,

these help the project manager evaluate multiple facets of decision when it comes to quality.
The tools can help determine tradeoffs for achieving quality expectations, but also keep the
project’s costs, schedule, and flow of work all in balance.

multidivisional structure An organizational structure in which functions are replicated

for each division. This structure is similar to the functional organization within each division.
The project manager will have little authority and could be called a project coordinator rather
than a project manager.

negative float A project task is running late on its deadline so the schedule is compacted in
order to meet the deadline, or, more likely, the task will miss its deadline and will be late.

negative stakeholders Stakeholders who are opposed to the project’s existence; they do
not want the project to succeed, because they do not see or agree with the benefits the project
may bring about for the organization.

negative total float When the activities on the critical path don’t have enough time to
meet the defined late finish date for the project. Experienced when a project is running late on
its implementation or if there’s a predefined deadline for the project.

net present value (NPV) A benefit measurement formula that provides a precise
measurement of the present value of each year the project generates a return on investment.
This could be the project, its deliverables, or its equipment or resources.

network template A network diagram based on previous similar projects that is adapted
for the current project work.

neutral stakeholders Stakeholders who are not affected by the project’s success or failure.
Examples include inspectors, procurement officers, and some end users.

nominal group technique A group creativity technique that follows the brainstorming
model but scores each brainstorm idea.

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nonverbal Approximately 55 percent of oral communication involves facial expressions,

hand gestures, and body language that contribute to the message.

norming Part of the Tuckman model for team formation, where project team members
go about getting the project work, begin to rely on one another, and generally complete their
project assignments.

observation A requirements elicitation process whereby the observer shadows a person

to understand how she completes a process. An observer may be a participant observer or an
invisible observer.

oligopoly A market condition in which the actions of one competitor affect the actions of all
the other competitors.

operations The ongoing work of the business; a generic term used to describe the activities
that support the core functions of a business entity.

operations manager Managers who deal directly with the income-generating products
or services the company provides. Projects often affect the core business, so these managers are
stakeholders in the project.

organic organization structure Sometimes called a simple organization structure, an

organic structure means that the work groups within the organization are flexible. People work
alongside one another regardless of their roles in the organization, and the project manager may
have little to no authority over the project resources.

organizational breakdown structures Though these charts are similar to the WBS, the
breakdown is by department, unit, or team.

organizational chart Shows how an organization, such as a company or large project

team, is ordered, its reporting structures, and the flow of information.

organizational governance framework The structure and approach to managing a

project within your organization. Governance framework describes how you operate within
a system: the cultural norms, relationships, and organizational processes to get things done.

organizational process assets Resources that have been created to assist the project
manager in managing the project better. Examples include historical information, forms, project
approaches, defined procedures, and templates.

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organizational project management (OPM) An organizational approach to coordinate,

manage, and control projects, programs, and portfolio management in a uniform, consistent
effort.

organizational systems Provide structure and governance for how the project manager
leads the project team and manages the work of project management.

organization knowledge repositories Databases of past project files, historical

information, lessons learned, issue and defect databases, financial databases, and other
knowledge that can be quickly accessed for the current project.

Ouchi’s Theory Z A theory that posits that workers are motivated by a sense of commitment,
opportunity, and advancement. Workers will work if they are challenged and motivated.

overall project risk A combination of all risk events that will reveal the project’s risk
exposure and determine just how risky the project is for the organization.

paralingual The pitch, tone, and inflections in the sender’s voice that affect the message
being sent.

parametric modeling Also called parametric estimating. A mathematical model based on

known parameters to predict the cost of a project. The parameters in the model can vary based
on the type of work being done. A parameter can be cost per cubic yard, cost per unit, and so
on. Ideal for projects with repetitive work where a parameter, such as five hours per unit, is used
to estimate the project duration.

Pareto diagram A diagram related to Pareto’s Law: 80 percent of the problems come from
20 percent of the issues (this is also known as the 80/20 rule). A Pareto diagram illustrates
problems by assigned cause, from smallest to largest.

Parkinson’s Law Work expands to fill the amount of time allotted to it.

part-time project team The project team works on the project for a percentage of their
scheduled work time. The project team may work on core operations and other projects in
addition to the current project.

payback period The duration of time it takes a project to earn back the original investment.

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performance reports Formal reports that define how the project is performing with
regard to time, cost, scope, quality, and other relevant information.

performing Part of the Tuckman model for team formation. If a project team can reach the
performing stage of team development, they trust one another, they work well together, and
issues and problems get resolved quickly and effectively.

personal or charismatic power The project manager has a warm personality that
others like.

persuasive power Power gained by persuading people to move toward a specific outcome
or decision.

PESTLE A categorization model or the analysis of overall project risks by determining

political, economic, social, technological, legal, and environmental uncertainty

planned value The worth of the work that should be completed by a specific time in the
project schedule.

plurality decision A group decision process approach that allows the biggest section of a
group to win even if a majority doesn’t exist.

PMBOK Guide The abbreviated definition for PMI’s A Guide to the Project Management
Body of Knowledge.

PMI Code of Ethics and Professional Conduct A PMI document that defines the
expectations of its members to act responsibly, respectfully, fairly, and honestly in their leadership
of projects and programs.

PMI Talent Triangle Defines three areas of professional development units (PDUs) for
PMI certified professionals to maintain their certification. The PMI Talent Triangle includes
technical project management, leadership, and strategic and business management.

PMP Your goal. A PMP is certified by the Project Management Institute as a Project
Management Professional.

portfolio A collection of projects and programs that have been selected by the organization
based on factors such as risk, profitability, business value, business need, market demand, and
other components.

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portfolio management review board A collection of organizational decision-makers,

usually executives, who review proposed projects and programs for their value and return on
investment for the organization.

positional power The project manager’s power is a result of the position she has as the
project manager. This is also known as formal, authoritative, and legitimate power.

positive stakeholders Stakeholders who want the project to succeed; these are often
the people who have the most to gain from the project’s success and/or the most to lose if the
project fails.

precedence diagramming method (PDM) The most common method of arranging

the project work visually. The PDM puts the activities in boxes, called nodes, and connects the
boxes with arrows. The arrows represent the relationship and the dependencies of the work
packages.

predictive life cycle The predictive approach requires the project scope, the project
schedule, and project costs to be defined early in the project timeline. Predictive life cycles have
predefined phases, where each phase completes a specific type of work and usually overlaps
other phases in the project.

presentation The delivery of information, usually face-to-face, to a group. In formal

presentations, the presenter’s oral and body language, visual aids, and handouts all influence the
message being delivered.

present value A benefit measurement formula to determine what a future amount of funds
is worth today. The formula is Present Value = Future Value / (1 + i)n, where i is the interest rate
and n is the number of time periods.

pressure-based power The project manager restricts choices to get the project team to
perform the project work.

prevention costs Defines the costs of preventing poor quality in the project. The cost
of completing the project work to satisfy the project scope and the expected level of quality.
Examples include training, safety measures, and having the correct tools to do the project work.

preventive actions Actions taken to ensure that potential problems don’t enter the project
and that future project work is in alignment with the project management plan.

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prioritization matrix Evaluates and prioritizes the elements of an issue. Each element is
prioritized, weighed, and then plotted in the matrix to achieve a score that will determine the
activities the project manager and project team should take.

problem-solving The ability to determine the best solution for a problem in a quick and
efficient manner.

process adjustments When quality is lacking, process adjustments are needed for
immediate corrective actions or for future preventive actions to ensure that quality improves.
Process adjustments may qualify for a change request and be funneled through the change
control system as part of integration management.

process decision program chart A chart that helps the project team identify all of the
needed steps that are required to achieve the project goal.

procurement The process of a seller soliciting, selecting, and paying for products or
services from a buyer.

procurement audits The successes and failures within the procurement process are
reviewed from procurement planning through contract administration. The intent of the audit
is to learn from what worked and what did not work during the procurement processes.

procurement documents All of the documents for purchasing, such as request for
quotes, invitation to bid, request for proposal, and the responses, are included in the project
documents.

procurement management plan A subsidiary project management plan that documents

the procurement processes and tools to use. It specifies how the remaining procurement
activities will be managed.

product life cycle The unique life, duration, and support of the thing a project creates.
A product life cycle is separate from the project life cycle.

product scope The attributes and characteristics of the deliverables the project is creating.

professional development units (PDUs) Training or performance credits that are

earned to maintain the PMP certification. PMPs are required to earn 60 PDUs per three-year
certification cycle. Of the 60 PDUs, a minimum of 35 hours must come from educational
opportunities.

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program manager Coordinates the efforts of multiple projects working together in the
program. Programs are made up of projects, so it makes sense that the program manager would
be a stakeholder in each of the projects within the program.

programs A collection of related projects managed in unison to realize benefits that could
not be achieved by managing each project independently of the others.

progress reports Provide current information on the project work completed to date.

progressive elaboration The process of starting with a large idea and, through
incremental analysis, actions, and planning, making the idea more and more specific. Progressive
elaboration is the generally accepted planning process for project management, wherein the
project management team starts with a broad scope and works toward a specific, detailed plan.

project A temporary endeavor to create a unique product, service, or result.

project baselines Three baselines in a project are used to measure project performance:
cost, schedule, and scope.

project calendar A calendar that defines the working times for the project. For example,
a project may require the project team to work nights and weekends so as not to disturb the
ongoing operations of the organization during working hours. In addition, the project calendar
accounts for holidays, working hours, and work shifts the project will cover.

project charter A document that authorizes the project, defines the high-level
requirements, identifies the project manager and the project sponsor, and provides initial
information about the project.

project communication management One of the ten project management knowledge

areas, this is the planning and management of communication among project stakeholders.

project cost management One of the ten project management knowledge areas, this is
the estimating, budgeting, and controlling of the project expenses.

project feasibility study A study that examines a potential project to determine if it is

feasible to do the project work.

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project funding requirements In larger projects, this document identifies the timeline
of when capital is required for the project to move forward. It defines the amount of funds a
project needs and when the project funds are needed in order to reach its objectives.

project governance Defines the rules for a project; it’s up to the project manager to
enforce the project governance to ensure the project’s ability to reach its objectives. The project
management plan defines the project governance and how the project manager, the project
team, and the organization will follow the rules and policies within the project.

project integration management The art and science of ensuring that your project
moves forward and that your plan is fully developed and properly implemented. Ten
knowledge areas (project integration management, scope, schedule, cost, quality, resources,
communications, risk, procurement, and stakeholder management) have processes that
contribute to the comprehensive project management plan.

project knowledge management The project management process of managing all

knowledge within the project. This includes refining the knowledge, documenting what was
learned, making the information available to others, and archiving the documentation to be part
of organizational process assets.

project life cycle The phases of a project as it moves from its launch to completion. Project
life cycles are unique to each project and are not universal.

project management The management of the projects within an organization. It is the

initiation, planning, executing, monitoring and controlling, and closing of the temporary
endeavor of the project.

project management information system (PMIS) Typically a software system, such as

Microsoft Project, used to assist the project manager in managing the project.

project management life cycle Universal to all projects, this life cycle comprises
the project management process groups of initiating, planning, executing, monitoring and
controlling, and closing. The process groups are not phases, but collections of processes.

project management office (PMO) A stakeholder of the project that supports the project
manager and is responsible for the project’s success. PMOs typically provide administrative
support, training for project managers, resource management for the project team, project
staffing, and centralized communication.

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project management plan A comprehensive document comprising several subsidiary

plans that communicates the intent and direction of the project.

project management team People on the project team who are involved with managing
the project.

project manager The person accountable for managing the project and guiding the team
through the project phases to completion.

project-oriented structure Grouping employees, collocated or not, by activities on a

particular project. The project manager in a project-oriented structure may have complete, or
very close to complete, power over the project team.

project portfolio management A management process to select the projects that should
be invested in. Specifically, it is the selection process based on the need, profitability, and
affordability of the proposed projects.

project procurement management One of the ten project management knowledge

areas; this knowledge area oversees the purchasing and contract administration for a project.

project quality management One of the ten project management knowledge areas; this
knowledge area defines quality assurance, quality control, and the quality policy for the project.

project resource management One of the ten project management knowledge areas,
in which projects are completed by people, and the project manager generally oversees the
management of the resources on the project team.

project risk management One of the ten project management knowledge areas; project
risk management defines the risk identification, analysis, responses, and control of risk events.

project schedule management One of the ten project management knowledge areas;
this knowledge area defines the approach to duration estimating, scheduling, and control of the
project activities.

project scope management One of the ten project management knowledge areas; this
knowledge area defines the project requirements, scope creation, and control.

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project scope statement The definition of what the project will create for the project
stakeholders. It includes the product scope description, product acceptance criteria, project
deliverables, project exclusions, project assumptions, and project constraints.

project sponsor The entity that authorizes the project. This person or group within the
performing organization authorizes the project and ensures that the project manager has
the necessary resources, including monies, to get the work done. The project sponsor has
the power to authorize and sanction the project work and is ultimately accountable for the
project’s success.

project team The collection of individuals who will work together to ensure the success
of the project. The project manager works with the project team to guide, schedule, and
oversee the project work. The project team completes the project work.

proposal A document that contains ideas, suggestions, recommendations, and solutions

to an opportunity provided by a vendor for a seller. Proposals include a price for the work and
record how the vendor would provide the service to the buyer.

prototype A mockup of the project deliverable to confirm, adapt, or develop the project
requirements.

pull communications The information is pulled from a repository, such as a database

or web site. Stakeholders pull the information from the source when they want it. In pull
communications, the audience retrieves the information as they desire rather than the
information being sent, or pushed, to them.

punitive or coercive power The project manager can punish the project team.

push communications The sender pushes the same message to people via memos, faxes,
press releases, broadcast e-mails, and other forms of group communication.

qualified sellers list The performing organization may have lists of qualified sellers,
preferred sellers, or approved sellers. The qualified sellers list generally includes contact
information, history of past experiences with the sellers, and other pertinent information.

qualitative risk analysis An examination and prioritization of risks that establishes their
probability of occurring and the impact on the project if they do occur. Qualitative risk analysis
guides the risk reaction process.

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quality assurance (QA) A process to ensure that the project is adhering to the quality
expectations of the customer and organization. QA is a prevention-driven process to perform
the project work with quality to avoid errors, waste, and delays.

quality control (QC) A function in which the work results are monitored to see if they meet
relevant quality standards. The PMBOK Guide refers to this as “control quality.”

quality management plan A document that describes how the project manager and the
project team will fulfill the quality policy. In an ISO 9000 environment, the quality management
plan is referred to as the “project quality system.”

quality policy The formal policy an organization follows to achieve a preset standard of
quality. The project team should either adapt the quality policy of the organization to guide
the project implementation or create its own policy if one does not exist within the performing
organization.

quality requirements Any condition, metric, performance objective, or condition the

project must meet in order to be considered of quality.

quantitative risk analysis A numerical assessment of the probability and impact of the
identified risks. Quantitative risk analysis also creates an overall risk score for the project.

quote A document from the seller to the buyer that is used when price is the determining
factor in the decision-making process.

RACI chart A chart that designates each team member against each project activity as
Responsible, Accountable, Consult, or Inform (RACI). It is technically a type of responsibility
assignment matrix (RAM) chart.

receiver Part of the communications model: the recipient of the message.

referent power Power that is present when the project team is attracted to or wants to
work on the project or with the project manager. Referent power also exists when the project
manager references another, more powerful person, such as the CEO.

regression analysis A forecasting tool used to measure and predict the link between two
variables within a project.

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relational power Power gained by networking, making connections, and creating alliances
with others.

reporting system Often a software program that can capture, store, and provide data
analysis regarding the project. A good reporting system tool enables the project manager to
gather project information such as percentage of work complete, run the data through some
earned value analysis, and then create reports to share with stakeholders.

request for proposal (RFP) A document from the buyer to the seller that asks the seller to
provide a proposal for completing procured work or for providing a procured product.

request for quote (RFQ) A document from the buyer to the seller asking the seller to
provide a price for the procured product or service.

requirements documentation A clearly defined explanation of the project requirements.

The requirements must be measurable, complete, accurate, and approved by the project
stakeholders.

requirements management plan Defines how requirements will be managed throughout

the phases of the project. This plan also defines how any changes to the requirements will be
allowed, documented, and tracked through project execution.

requirements traceability matrix (RTM) A table that identifies all the project
requirements, when the requirements are due, when the requirements are created, and any
other pertinent information about the requirements.

reserve analysis A contingency reserve for risk events should be periodically reviewed to
ensure that the amount of funds in the contingency reserve is adequate for the remaining risks
and their probabilities in the project.

residual risks Risks that remain after mitigation, transference, and avoidance. These are
generally accepted risks. Management may elect to add contingency costs and time to account
for the residual risks within the project.

resistant stakeholders Stakeholders who are aware of your project, but they aren’t keen
on the changes your project will create.

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resource breakdown structure (RBS) A type of chart that breaks down the project by
types of resources utilized on the project no matter where the resources are being used in the
project.

resource calendar Shows when resources, such as project team members, consultants,
and subject matter experts (SMEs), are available to work on the project. It considers vacations,
other commitments within the organization, restrictions on contracted work, overtime issues,
and so on.

resource histogram A bar chart reflecting when physical resources, individual employees,
groups, or communities are involved in a project. It’s often used by management to see when
resources are most or least active in a project.

resource leveling A method to flatten the schedule when resources are overallocated
or allocated unevenly. Resource leveling can be applied in different methods to accomplish
different goals. One of the most common methods is to ensure that workers are not overextended
on activities.

resource management plan A subsidiary plan that documents how project team members
and physical resources will be included in the project and excused from the project. This plan is
included in the project management plan.

resource requirements A document that identifies what resources are needed to complete
the project work. This includes people, materials, equipment, facilities, and services.

resource smoothing A technique that enables the project manager to do resource leveling,
but only on noncritical path activities. This approach levels resource utilization by taking
advantage of activities that have available float. For those activities with no float, the resource
utilization will not be edited.

resources plan Details on how the project team members and other physical resources will
be brought onto and released from the project.

reverse shadowing An expert follows someone learning to perform a skill to offer coaching
or feedback at the end of the session. This is a type of work shadowing.

responsibility The person who decides what will happen in a project regarding a particular
area.

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responsibility assignment matrix chart A chart type designating the roles and
responsibilities of the project team.

reward power The project manager’s authority to reward the project team.

risk An uncertain event that can have a positive or negative influence on the project’s success.
It can affect any aspect of a project. All risks and their statuses should be recorded in the risk
register.

risk breakdown structure A visual decomposition of the project risks. This structure
helps to visualize where the risks are within the different portions of the project.

risk management plan A subsidiary project management plan for determining how
risks will be identified, how quantitative and qualitative analyses will be completed, how risk
response planning will happen, how risks will be monitored, and how ongoing risk management
activities will occur throughout the project life cycle.

risk owners The individuals or groups responsible for a risk response.

risk register All risks, regardless of their probability or impact, are recorded in the risk
register, and their status is kept current in the issue log.

risk report A report that explains the overall project risks and provides a summary
about each individual project risk. You’ll update the risk report through the project as more
information becomes available through analysis and experience in the project.

role Designates the type of activities a person on the project team performs in a project.

roles and responsibilities Maps project roles to responsibilities within the project; roles
are positions on the project team, and responsibilities are project activities.

run chart Similar to a control chart, a run chart tracks trends over time and displays those
trends in a graph with the plotted data mapped to a specific date.

Sapir–Whorf hypothesis A theory that suggest a link exists between the language a person
speaks or the culture they operate within that affects how the person thinks.

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scales of probability and impact Used in a risk matrix in both qualitative and quantitative
risk analyses to score each risk’s probability and impact.

scatter diagram Tracks the relationship between two or more variables to determine
whether one variable affects the other. It enables the project team, quality control team, or
project manager to make adjustments to improve the overall results of the project.

schedule change control Part of integrated change management, schedule change control
is concerned with three things: the project manager confirms that any schedule changes are
agreed upon, the project manager examines the work results and conditions to know if the
schedule has changed, and the project manager manages the actual change in the schedule.

schedule management plan A subsidiary plan of the project management plan, used
to control changes to the schedule. A formal schedule management plan has procedures that
control how changes to the project plan can be proposed, accounted for, and then implemented.

schedule performance index (SPI) This reveals the efficiency of work. The closer the
quotient is to 1, the better: SPI = EV / PV.

schedule variance (SV) The difference between the earned value and the planned value.

scope baseline Comprises the project scope statement, the work breakdown structure
(WBS), and the WBS dictionary.

scope management plan Explains how the project scope will be identified and managed
and how scope changes will be factored into the project plan. Based on the conditions of the
project, the project work, and the confidence of the project scope, the scope management plan
should also define the likelihood of changes to the scope, how often the scope may change, and
how much the scope can change.

scope validation An inspection-driven process led by the project customer to determine

the exactness of the project deliverables. Scope validation is a process that leads to customer
acceptance of the project deliverables.

scoring model A project selection method that assigns categories and corresponding values
to measure a project’s worthiness of investment.

secondary risks Risks that stem from risk responses. For example, the response of
transference may call for hiring a third party to manage an identified risk. A secondary risk

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caused by the solution is the failure of the third party to complete its assignment as scheduled.
Secondary risks must be identified, analyzed, and planned for, just like any other identified risk.

sellers list A list of the vendors with which an organization does business. Also called
preferred vendors list.

sender Part of the communications model: the person or group delivering the message to
the receiver.

sender-receiver model Communication requires a sender and a receiver. Within this

model may be multiple avenues to complete the flow of communication, but barriers to
effective communication may be present as well.

sensitivity analysis Examines each project’s risk on its own merit to assess the impact on
the project. All other risks in the project are set at a baseline value.

servant leadership The leader puts others first and focuses on the needs of the people
he serves. Servant leaders provide opportunity for growth, education, autonomy within the
project, and the well-being of others. The primary focus of servant leadership is service to others.

share Sharing is nice. When sharing, the risk ownership is transferred to the organization
that can most capitalize on the risk opportunity.

should-cost estimates Estimates created by the performing organization to predict what

the cost of the procured product should be. If there is a significant difference between what the
organization has predicted and what the sellers have proposed, the statement of work (SOW)
was inadequate, the sellers have misunderstood the requirements, or the price is too high.

simulation A tool that enables the project team to play “what-if” games without affecting
any areas of production.

single source A specific seller that the performing organization prefers to contract with.

situational power The project manager has power because of certain situations in the
organization.

smoothing A conflict resolution method that smooths out the conflict by minimizing the
perceived size of the problem. It is a temporary solution, but it can calm team relations and

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reduce boisterousness of discussions. Smoothing may be acceptable when time is of the essence
or when any of the proposed solutions would work.

soft logic The preferred order of activities. Project managers should use these relationships
at their discretion and document the logic behind making soft logic decisions. Also known as
discretionary dependencies. Discretionary dependencies allow activities to happen in a preferred
order because of best practices, conditions unique to the project work, or external events.

sole source The only qualified seller that exists in the marketplace.

source selection criteria A predefined listing of the criteria to determine how a vendor
will be selected—for example, cost, experience, certifications, and the like.

sprint Time-boxed duration, typically two-to-four weeks, of project execution in an

agile environment. Sprints are iterations of executing the prioritized list of product backlog
requirements.

stage gates Project phase completions that allow a project to continue after a performance
and deliverable review against a set of predefined metrics. If the deliverables of the phase,
or stage, meet the predefined metrics, the project is allowed to continue.

stakeholder analysis A process that considers and ranks project stakeholders based on
their influence, interests, and project expectations. This process uses a systematic approach to
identify all of the project stakeholders, ranking the stakeholders by varying factors, and then
addressing stakeholders’ needs, requirements, and expectations.

stakeholder classification models Grids that rank stakeholders’ influence in relation to

their interest in the project. Several types of these models are used in stakeholder analysis. The
most common models are the power/interest grid, the power/influence grid, the influence/
impact grid, and the salience model.

stakeholder cube A three-dimensional cube model that combines the power, influence,
and impact grids.

stakeholder engagement The process of keeping stakeholders interested, involved, and

supportive of the project. The project manager needs to maintain the energy of the stakeholders
and keep them contributing to and excited about the project.

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stakeholder identification The process of ensuring that all the stakeholders have been
identified as early as possible in the project. All the stakeholders are identified and represented,
and their needs, expectations, and concerns are addressed.

stakeholder management A project management knowledge area that focuses on four

activities: identifying the project stakeholders, planning on how to manage the stakeholders,
managing the stakeholders, and controlling the stakeholders’ engagement.

stakeholder management plan A plan that helps the project manager and the project
team define a strategy for managing the project stakeholders. It helps to establish stakeholder
engagement at the launch of the project and throughout the project life cycle, and it offers
information about how to improve the level of engagement identified.

stakeholder management planning The process of creating a strategy to identify and

monitor the stakeholders in the project. It’s the analysis of what the stakeholders want the
project to do, how the stakeholders’ expectations align with those of other stakeholders, and the
prioritization of the stakeholders within the project.

stakeholder register A register that documents all the stakeholders’ information,

positions, concerns, interests, and attitudes toward the project. The stakeholder register should
be updated as new stakeholders are identified or as stakeholders leave the project.

stakeholder requirements The individual stakeholder and stakeholder group

requirements for the project.

start no earlier than (SNET) A project constraint that demands that a project activity start
no earlier than a specific date.

start-to-finish A relationship structure that requires an activity to start so that a successor

activity may finish; it is unusual and is rarely used.

start-to-start A relationship structure that requires a task to start before a successor task
activity may start. This relationship allows both activities to happen in tandem.

statement of work (SOW) Fully describes the work to be completed, the product to be
supplied, or both. The SOW becomes part of the contract between the buyer and the seller.
It is typically created as part of the procurement planning process and is used by the seller to
determine whether they can meet the project’s requirements. This is also known as terms of
reference (TOR).

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statistical sampling A process of choosing a percentage of results at random for inspection.

Statistical sampling can reduce the costs of inspection.

status reports Provide current information on the project cost, budget, scope, and other
relevant information.

storming The second stage of the Tuckman team development; the project team struggles
for project positions, leadership, and project direction.

storytelling Tacit knowledge sharing approach; by telling stories, team members can better
understand tacit knowledge and interact with one another.

style The tone, structure, and formality of a message being sent should be in alignment with
the audience and the content of the message.

subprojects Projects that exist under a parent project, but that follow their own schedules
to completion. Subprojects may be outsourced, assigned to other project managers, or managed
by the parent project manager but with a different project team.

supporting detail for estimates The project manager should document how time and
cost estimates were created.

supportive PMO A project management office that acts as a consultative role by offering
advice, best practices, lessons learned, forms and software, and project information from similar
projects. The PMO control is low.

supportive stakeholders Stakeholders who are aware of your project, are happy about the
project, and hope your project is successful.

SWOT An analysis, problem-solving, and risk identification approach that aims to identify
Strengths, Weaknesses, Opportunities, and Threats.

system or process flowcharts Show the sequential relationship between components

and how the overall process works. They are useful for identifying risks between system
components.

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systems engineering Focuses on satisfying the customers’ needs, cost requirements, and
quality demands through the design and creation of the product. An entire science is devoted to
systems engineering in various industries.

tacit knowledge Knowledge that’s more difficult to express because it’s personal beliefs,
values, knowledge gained from experience, and “know-how” when doing a task.

TECOP Analysis of overall project risks by determining technical, environmental,

commercial, operational, and political uncertainty

theory of constraints A theory that posits that a management system is limited by its
weakest components, the constraint. Adapts the phrase “a chain is only as strong as its weakest
link.”

The Standard for Project Management A foundational publication, included in

the PMBOK Guide, sixth edition, that describes, not prescribes, the most common best
practices of project management.

three-point estimate An estimate that uses optimistic, most likely, and pessimistic values
to determine the cost or duration of a project component. Also called triangular distribution.

to-complete performance index An earned value management (EVM) formula that can
forecast the likelihood of a project to achieve its goals based on what’s currently happening in
the project.

top-down estimating A technique that bases the current project’s estimate on the total of
a similar project. A percentage of the similar project’s total cost may be added to or subtracted
from the total, depending on the size of the current project.

transactional leadership The leader emphasizes the goals of the project and offers
rewards and disincentives for the project team. This is sometimes called management by
exception because it’s the exception that is rewarded or punished.

transference A response to a risk in which the responsibility and ownership of the risk are
transferred to another party (for example, through insurance).

transformational leadership The leader inspires and motivates the project team to
achieve the project goals. Transformational leaders aim to empower the project team to take
action, be innovative in the project work, and accomplish through ambition.

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transition requirements Describe the needed elements to move from the current state to
the desired future state.

tree diagram Any diagram that represents a tree in a parent–child relationship. The work
breakdown structure (WBS) is an example of a tree diagram, as are a risk breakdown structure
(RBS) and an organizational chart.

trend analysis Examines recurring problems, threats, and even opportunities so you can
react to the situation based on the trends you’ve identified.

triggers Warning signs or symptoms that a risk has occurred or is about to occur (for
example, a vendor failing to complete their portion of the project as scheduled).

Triple Constraints of Project Management Describes the required balance of time,

cost, and scope constraints for a project. The Triple Constraints of Project Management is also
defined by the Iron Triangle of Project Management.

unanimity decision A group decision process whereby all participants are in agreement.

unaware stakeholders Stakeholders who don’t know about the project and the effect the
project may have on them.

user stories A backlog of prioritized requirements. User stories are prioritized by value
with the product owner and project team in an agile environment. User stories are assigned
story points to predict the difficulty of creating the requirement. Only so many story points are
allowed per iteration.

utility function A person’s willingness to accept risk. The higher the utility function, the
more likely the person or organization is willing to accept risk.

value analysis Like value engineering, this focuses on the cost/quality ratio of the product.
Value analysis focuses on the expected quality against the acceptable cost.

value engineering Deals with reducing costs and increasing profits, all while improving
quality. Its focus is on solving problems, realizing opportunities, and maintaining quality
improvement.

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variability risks Uncertainty surrounding a project activity or decision. Fluctuations in

productivity, number or errors and defects, or even the weather affecting the project are all
examples of variability risks.

variable costs Costs that vary, depending on the conditions within the project.

variance at completion (VAC) The time or cost difference between what was planned and
what was actually experienced.

virtual organizational structure The organization uses a network structure with points
of contact for each group represented in the project. The project manager may have low to
moderate authority over the project resources and may share authority over the project budget
with the functional manager.

virtual teams Project teams that are not collocated and that may rarely, if ever, meet
face-to-face with other project team members. The virtual team relies on e-mail, video, and
teleconferences to communicate on the project.

voice of the customer (VOC) The initial collection of customer requirements that serves
as part of quality function deployment in a facilitated workshop.

Vroom’s Expectancy Theory People will behave based on what they expect because of
their behavior. In other words, people will work in relation to the expected reward of the work.

VUCA Analysis of overall project risks by determining volatility, uncertainty, complexity, and
ambiguity.

war room A centralized office or locale for the project manager and the project team to
work on the project. It can house information on the project, including documentation and
support materials. It allows the project team to work in close proximity.

withdrawal A conflict resolution method that is used when the issue is not important or the
project manager is outranked. The project manager pushes the issue aside for later resolution. It
can also be used as a method for cooling down. The conflict is not resolved, and it is considered
a yield-lose solution.

workarounds Responses to an issue or mitigation for a risk that are reduce their impact.
work breakdown structure (WBS) A decomposition of the project scope statement into work
packages.

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work breakdown structure dictionary A companion to the WBS, the WBS dictionary
defines all of the characteristics of each element of the WBS.

work breakdown structure template Based on historical information, this is a WBS

from a past project that has been adapted to the current project.

work performance data Raw data about the project work. This can be data on activities
completed, costs, schedule, and other items measured for analysis.

work performance information Work performance information is useable information

based on the work performance data. Work performance data is analyzed and becomes work
performance information.

work performance reports The communication devices used to share the work
performance information with the appropriate stakeholders as defined in the project’s
communication management plan.

work shadowing A person follows, or shadows, an expert in their work to learn how to do
the job. Reverse shadowing reverses roles.

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