Book P

106933 APM galleys 11/7/00 8:53 am Page 3
Association for Project Management
Project Management
Body of Knowledge
Fourth Edition
Edited by Miles Dixon
on behalf of APM’s Professional Board
Acknowledgements The Association for Project Management (APM )

wishes to acknowledge the research commissioned
by APM and conducted under the direction of
Professor PGW Morris by the Centre for Research in
the Management of Projects, UMIST . This research
was sponsored by BNFL , Unisys, Unicom, GEC
Dunchurch and Duhig Berry Ltd. The Association
also wishes to place on record its appreciation of the
fundamental work carried out over a period of years
by the late Brain Willis 
Copyright © Association for Project Management, 

Published by the Association for Project Management
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Contents
APM Project Management

Body of Knowledge Frontispiece
Preface page 
Introduction to the BoK 
1 General 
 Project Management 
 Programme Management 
 Project Context 
2 Strategic 
 Project Success Criteria 
 Strategy/Project Management Plan 
 Value Management 
 Risk Management 
 Quality Management 
 Health, Safety and Environment 
3 Control 
 Work Content and Scope Management 
 Time Scheduling/Phasing 
 Resource Management 
 Budgeting and Cost Management 
 Change Control 
 Earned Value Management 
 Information Management 
4 Technical 
 Design, Implementation and Hand-Over
Management 
 Requirements Management page 

 Estimating 
 Technology Management 
 Value Engineering 
 Modelling and Testing 
 Configuration Management 
5 Commercial 
 Business Case 
 Marketing and Sales 
 Financial Management 
 Procurement 
 Legal Awareness 
6 Organisational 
 Life Cycle Design & Management 
 Opportunity 
 Design and Development 
 Implementation 
 Hand-Over 
 (Post) Project Evaluation Review
[O&M/ILS ] 
 Organisation Structure 
 Organisational Roles 
7 People 
 Communication 
 Teamwork 
 Leadership 
 Conflict Management 
 Negotiation 
 Personnel Management 
Further Reading References 

Comparison with Previous Version 
Preface
The Association for Project Management (APM) first began developing

a Body of Knowledge in the late eighties, with the first edition being
published in . While there have been a number of updates since
then, this is the first fundamental revision the Association has undertaken.
This new edition was commissioned because project management is
changing, and the body of knowledge needs to reflect this.
The prime input for this new edition was a research project under-
taken by the Centre for Research into the Management of Projects at
the University of Manchester’s Institute of Science and Technology,
co-sponsored by the APM,¹ and led by Professor Peter Morris.
The importance of this research was that it carried out an independent
survey of the practice of project management in relation to the elements
of knowledge that project management professionals in a range of
industries felt they needed.
This Body of Knowledge is thus a practical document, defining
the broad range of knowledge that the discipline of project manage-
ment encompasses. It is not however a set of competencies, nor does
it say much about the behavioural characteristics that are important
in project management. Indeed, to be successful as a project
management practitioner requires a combination of the right
knowledge (allied to personal experience) and attitude (or behaviour).
An indication of important behavioural characteristics is given on
the next page.
The APM, together with many other organisations, uses its
Body of Knowledge as the basis for its various professional development
programmes. As continuity in such programmes is vital, a comparison
to the topics in the previous version is given at the end of this document.
Behavioural Characteristics of Project Management Professionals

Characteristics of an individual’s personality generally recognised as
important in project management are:
 The full report on the research can be obtained from UMIST or via the APM
Body of Knowledge 8
● Attitude – an open positive “can do” attitude which encourages

communication and motivation, and fosters co-operation.
● Common sense – the ability to spot sensible, effective, straight
forward, least risky, least complex solutions i.e. % right on time
is better than % far too late!
● Open mindedness – an approach where one is always open to new
ideas, practices and methods and in particular gives equal weight
to the various disciplines involved on the project.
● Adaptability – a propensity to be flexible where necessary and avoid
rigid patterns of thinking or behaviour, to adapt to the requirements
of the project, the needs of the sponsors, its environment and people
working on it – to ensure a successful outcome.
● Inventiveness – an ability to discover innovative strategies and
solutions from within oneself or by encouragement with other
members of the project team, and to identify ways of working
with disparate resources to achieve project objectives.
● Prudent risk taker – a willingness and ability to identify and
understand risks but not to take a risky approach in an unwise
or reckless fashion.
● Fairness – a fair and open attitude which respects all human values.
● Commitment – an over-riding commitment to the project’s success,
user satisfaction and team working. A strong orientation towards goal
achievement.
Introduction to the BoK
This APM Body of Knowledge (BoK) represents the topics in which

practitioners and experts consider professionals in project management
should be knowledgeable and competent. It has been derived from earlier
versions updated and developed through an extensive research programme
conducted by the Centre for Research in the Management of Projects
(CRMP) at the University of Manchester Institute of Science and
Technology (UMIST ) on behalf of industry and the APM .
The scope of this APM Body of Knowledge incorporates not only
inward focused project management topics, such as planning and control
tools and techniques, but also those broader topics essential to the effective
management of projects. These cover the context in which the project is
being managed, such as the social and ecological environment, as well as
a number of specific areas, such as technology, economics and finance,
organisation, procurement, and people, as well as general management.
Practice and research show these all have a significant influence on the
likelihood of the project being conducted successfully [Morris, ].
The topics are described at a high level of generality. Detailed
description of the topics can be found in texts, teaching and research
institutions, companies, and other specific places. The intent here
is principally to give an overall “scoping” guide to the topics that
professionals in project management consider are essential for
a suitable understanding of the discipline.
The topics are those that are generic to project management. The way
they are described likewise is generic. Although ideas, language and even
illustration may be derived from particular application, the intent is that
each topic is potentially applicable in all project management situations.
Though intended as a generic guideline for project management,
the BoK may come to be used, as other BoKs already are in many
organisations, as the basis of the project management element of a
general competencies framework.
The BoK is not a textbook. While it reflects what the research team
and its advisors were able to discover to be the state of professional opinion
(not just in the UK but with considerable input from outside the UK),
Body of Knowledge 10
the information presented has been filtered by the APM and the expertise
of its members.
The topics have been grouped into seven sections.²
● The first section deals with a number of General and introductory items.
The remaining six sections deal with topics to do with managing:

● the project’s Strategic framework, including its basic objectives;
● Control issues that should be employed;
● the definition of the project’s Technical characteristics;
● the Commercial features of its proposed implementation;
● the Organisational structure that should fit the above;
● issues to do with managing the People that will work on the project.
(Though there is nothing fixed about this sequence, it is logical insofar

as a strategic framework should first be established. The processes,
practices and systems required for effective Control – in the sense of
planning, reporting and taking corrective action – should be established
from the outset. The project’s technical definition should then be defined
and developed with commercial conditions developed in parallel – but
sometimes slightly lagging the technical definitional work. And then the
organisational and people issues need to be factored in. These latter two
are by no means the least important however: many consider, quite
understandably, people issues to be at the very heart of successful
project management.)
Many of the topics listed under these sections are closely linked or are
interdependent. They are treated separately here however due to their
individual significance. Teamwork and leadership for example, although
they could be treated as a part of communications, are independently
addressed due to their inherent importance in project management.
In reality, many of the topics fit in more than one section. Remember
therefore that the categorisation is not intended to be too limiting.
The section groupings are for convenience and clarity. But as in any
sophisticated topic, high level groupings can become misleading. The
granularity of the detail behind the ideas in this document is important.
 For a long time we were reluctant to categorise the BoK topics into sections. Our surveys
however showed a very strong desire for people to have a structure in which to group and
provide a framework for the  odd topics. Research backs up the need for people to limit
information without a structure of more than seven major topics [Miller, ]
Introduction 11
The grouping of topics is shown in the diagram on the frontispiece.

Each topic in the BoK has its own description together with a short list of
useful references. (A list of Further References is additionally given at the
end of the BoK.)
References
C D H (ed), “Project Management Body of Knowledge: Special
Issue”, International Journal Project Management  () April 
M, P W G, “Bodies of Knowledge and Bodies of Competence”
APM Yearbook, APM , 
P M I, PMI Guide to the Body of
Knowledge, PMI, 
13
1 General
This section covers a number of topics that

need to be understood at the general level of
project management which are not positioned
under other sections.
The section starts with project management
itself. Programme, Portfolio and other kinds
of management are described. There is also
discussion of the importance of fully under-
standing the context – the environment –
within which the project is to be undertaken.
10 Project Management
Project Management is widely regarded as the most efficient way of

introducing unique change. Essentially, project management achieves
this by:
● defining what has to be accomplished, generally in terms of time,
cost, and various technical and quality performance parameters;
● developing a plan to achieve these and then working this plan, ensuring
that progress is maintained in line with these objectives;
● using appropriate project management techniques and tools to plan,
monitor and maintain progress;
● employing persons skilled in project management – including normally
a project manager – who are given responsibility for introducing the
change and are accountable for its successful accomplishment.
Project Management is the discipline of managing projects successfully.
Project Management can and should be applied throughout the project
lifecycle, from the earliest stages of Concept definition into Operations &
Maintenance, etc.³ It comprises the management of all that is involved in
achieving the project objectives safely and within agreed time, cost,
technical, quality and other performance criteria. Project management
provides the “single point of integrative responsibility” needed to ensure
that everything on the project is managed effectively to ensure a successful
project deliverable.
While projects should ideally be managed by a project manager this may
not happen all the time. Whatever the title of the person, projects are most
likely to be successful where someone has been clearly designated as
accountable for its satisfactory accomplishment.
Typically projects involve several professionals working together and the
project management expertise is spread across this team.
References
B S I, Guide to Project Management,
BS: , HMSO, 
 In most definitions of projects, the project is completed when it is turned over to
Operations. However almost everyone recognises that cognisance needs to be taken of the
Operations & Maintenance/ Integrated Logistics Support phase of operation. Planning
input from this phase needs to be absorbed into the project and in many projects project, or
programme , management will have some responsibility extended into the early period of
start-up and operations. Indeed, many project professionals believe strongly that project
management should also take cognisance of the Decommissioning stage of the product.
General 15
This diagram illustrates the project management process
Constraints
Time, cost, quality,
technical and
other performance
parameters, legal,
environment, etc.
k
Input Management Output
Business need and of the project Project deliverables,
requirement k k products and/or
services
k
Mechanisms
People, techniques
and tools, equipment,
organisation
H F L, Advanced Project Management, Gower, rd edition, 

L D, Project Management, Gower Publishing, th edition, 
M P W G, The Management of Projects, Thomas Telford, 
P J K (ed), The Project Management Institute: Project Management
Handbook, Jossey Bass, 
T J R, The Handbook of Project-Based Management, nd edition,
McGraw-Hill, 
11 Programme Management
There is widespread variation in the use of the term Programme
Management. It can variously cover managing any or all of the following:
● a portfolio of projects related to some common objective;
● an organisation’s business strategy which is to be implemented through
projects;
● the interdependencies between a number of projects;
● resource allocation amongst a portfolio of projects.
The most common – and cogent – definition is that a programme is a
collection of projects related to some extent to a common objective4.
This could be a major project, a new business objective, a new product
development, and so on. Programme Management is the effective

management of that programme.⁴
Portfolio Management on the other hand is the management of a number
of projects that do not share a common objective. An operations manager of
a company managing several different projects for different clients would
be an example.
Both Programme Managers and Portfolio Managers share similar
problems of resource allocation and management.
References
B J, Managing Programmes of Business Change,
E & F N Spon, 
CCTA, Managing Successful Programmes, The Stationery Office, 
L J edition () Project management of multiple projects and
contracts Thomas Telford: London
R G, Programme Management Demystified, E & F N Spon, 
12 Project Context
The successful accomplishment of a project generally requires a significant

sensitivity to, and appreciation of, the context in which it is based.
Projects and their management both affect and are affected by their
environment, often significantly. The project environment comprises both
the internal and external environments in which the project is carried out.
The project environment can be of various kinds – political, ecological
(often termed environmental), economic, technological, regulatory,
organisational, etc. These environments, or contexts, shape the issues that
project management has to deal with and may assist or restrict the
attainment of the project objective.
References
M P W G  H G H, The Anatomy of Major Projects,
Wiley, 
BS  (part )
 In some industries where projects or programmes are part of a much larger configuration of
elements and systems, whose use in operation is particularly important and complex, terms
associated with “Systems Management” and “Systems Acquisition” are also frequently
used. Their use in general project management is limited however.
17
2 Strategic
The strategic framework provides the overall

integrative framework for managing the project
efficiently and effectively.
The strategic framework could cover many
of the topics found elsewhere in this document,
most particularly those found in Control. Almost
all the topics in the BoK have a strategic
element. Control, in the broader sense in which
it is used in this BoK, clearly can have
an important strategic dimension.
The topics that have been included in
this section of the BoK are those that most
obviously affect the strategic definition of
the project.
20 Project Success Criteria
It is essential that the project’s success criteria be clearly defined and

agreed before significant development is initiated. These success criteria
may be defined in a number of ways:
● Body of knowledge as business objectives (or goals),
● as “requirements”,
● as Critical Success Factors or Key Performance Indicators, etc.
Terminology in this area is fluid. “Requirements” is generally taken
to refer to technical [performance] requirements. Some people describe
objectives as measurable targets leading to higher level goals; others
take exactly the opposite view. “Critical Success Factors” are often used
synonymously with “Key Performance Indicators”, though normally
KPIs are taken as the measures upon which the project will be judged
when evaluating whether the project has been successful or not.
“Critical Success Factors” are those measurable factors that, when
present in the project’s environment, are most conducive to the
achievement of a successful project.⁵
“Key Performance Indicators”⁶ describe those project management
indicators that:
● are determined at the beginning of the project
● reflect directly on the key objectives [goals] of the project
● provide the basis for project management trade-off decisions during
the course of the project.
At completion of the project these KPIs:
● will be the most relevant measures to confirm the acceptability of the
project and its product by the project’s stakeholders as being
“successful”;
● can be measured in some way, at some time, on some scale.
Establishing the project’s fundamental success criteria at the outset –
however they are termed – is absolutely one of the most important things
 The definition of “success” is itself something that needs considerable care.

Considerable work has done on this over the last decade or so [de Wit, ; Morris &
Hough, ; Slevin & Pinto, ; etc.] It is important to realise that different parties on
a project have different attitudes to, and measures of, success; and that these measures
may give different results over time – as business conditions change for example.
 Max Wideman of PMI Canada, in communication with CRMP, has suggested the
term “Key Success Indicators” to describe these indicators. “Key Requirements Areas”
is another commonly used term.
Strategic 19
that must happen in order to ensure the successful realisation of a project.

All projects are contextual and all have different success criteria. Defining
and agreeing these from the outset will determine fundamentally how the
project is to be managed and measured.
The success criteria should be documented and the manner in which it is
proposed that they be achieved should be described. This is done in the
project Strategy Plan (also variously termed the Project Management Plan,
or even the Project Execution Plan, see Topic ).
21 Strategy/Project Management Plan
The project’s success criteria define what the project has to achieve and
how its success will be evaluated. Key Performance Indicators and other
metrics may be specified to define the measures by which this will be done.
The success criteria should be documented and the manner in which it is
proposed that they be achieved should be described. Various terms are used
to describe the resulting key document. The most common term used is
the Project Management Plan. The term “Strategy Plan” may also be used.
The Project Execution Plan (PEP) is another, although this often has more
detailed connotation.⁷
The Project Management Plan is the most important document in the
overall planning, monitoring, and implementation of a project. It is the
baseline tool which should be used as a reference for managing the project.
The project manager and his team should “own” it. The Plan should
include a definition of overall objectives, statements on how these should
be achieved (and verified), estimates of the time required and the budget,
quality policy, Health, Safety and environmental policies, and risk
management strategy. Other items of a technical, commercial,
organisational, personnel or control nature might also be included.
The Project Management Plan establishes project management’s
interpretation of the why, what, how, who, how much, and when of the
project. The “why” and “what” are management’s statement of the success
criteria. These should be agreed with the project sponsor – the owner of
 Many consider that the Project Execution Plan follows the Strategy definition after the
project has been defined sufficiently to be able to specify how the project is going to be
carried out. The Strategy Plan, on the other hand, needs to be formulated from as early
in the project as possible.
the project’s business case – and as far as possible with other project
stakeholders.⁸
The strategy for the project, the “how”, covers major aspects of the
project from concept to close out. These include the project manager’s
vision for the project – agreed with the sponsor of the business case – the
tools and techniques to be used, the outline of the IT required, and some
detail of the uniqueness of the change being introduced, together with a
definition of how the deliverables are to be validated, used (operated) and
handed over to the sponsor. Resources, finance, procurement, risk,
technical issues and quality requirements will all be covered along with
any other issues required to describe how the project is to be managed
effectively.
Time management, including phasing,⁹ will be included in “the when”.
Budgets and Cost matters define the “how much”.
Both the project sponsor and the project manager and his/her team
should formally accept the Plan. It should be reviewed periodically as the
project goes through its formal review “gates”¹⁰ and continuously updated
at these points.
References
B S I, A Guide to Project Management,
BS : , HMSO,
M P W G, The Management of Projects, Thomas Telford, 
22 Value Management
“Value lies in achieving a balance between the satisfaction of many differing
needs and the resources used in doing so. The fewer resources used or the
greater the satisfaction of the need, the greater is the value”¹¹ At strategic
level, it can be expressed in terms of costs vs benefits, parameters vs
 The terms “Project Sponsor” and “Stakeholder” are discussed in more detail later in
this Guide. (Topic )
 The whole area of Time-to-Market and Concurrent Engineering – i.e. the use of mixed
teams from different stages of the project in order to improve overall decision making
and shorten project duration should be addressed strategically at an early stage of the
project’s definition.
 The concept of review “gates” is discussed in Topic .
 PrEN  VM European Standard (endorsed by BSI).
Strategic 21
objectives, expenditure vs needs, or investment vs outcome.Value may be

defined in terms of worth. Another definition is the quotient: performance
divided by cost.
Value Management is a structured means of improving “business
decisions: increase effectiveness and enhance competitiveness”.¹² It refers
to the overall process of identifying key issues and setting targets in terms
of success criteria; identifying the teams and processes necessary to achieve
those; and reviewing these throughout the project to obtain successful
results.
Value Management is concerned with the broader optimisation of
strategic issues, generation of alternative courses of action and assessment
of options. Generally Value Management consists of a series of structured
workshops, facilitated by a value management specialist.
References
C J N, Value Management in Construction: A client’s Guide,
CIRIA , 
H M T, Central Unit on Procurement: No. 54 Value Management,
H M Treasury, 
H M T; Procurement guidance No 2: Value for money in construction
procurement HM Treasury 
M S, K J, F M  B G, The value management
benchmark: A good practice framework for clients and practitioners Thomas
Telford: London, 
T M, Value Management Practice, Project Management Institute, 
23 Risk Management
Risk Management covers the process of identification, assessment,
allocation, and management of all project risks. Risks are present in all
projects, whatever their size or complexity and whatever industry or
business sector. Risks exist as a consequence of uncertainty. In project
management terms, risks are those factors that may cause a failure to meet
the project’s objectives.
Project risk management recognises a formal approach to the process
as opposed to an intuitive approach. Risks, once identified, assessed and
 ibid.
allocated should be managed in order to minimise or completely mitigate

their effect on a project. This may be achieved by developing either
immediate or contingency responses to the identified risks. Such responses
may remove, reduce, avoid, transfer, or accept the risks or lead to the
abandonment of the project.
While risks are, according to the dictionary, associated with the possibility
of failure, they may also be associated with opportunities.
The usual definition of a risk in project management is that the risk is the
product of the probability of an event occurring times its impact if it did.
Risk management should balance the upside opportunities with downside
risks, doing so in an open, clear and formal manner. (And thus interacts
with Value Management and Value Engineering – Topics  and  –
and with the management of budgets and contingencies – Topic .)
References
C apm  C B & Ward S, Project Risk Management, Wiley, 
C J, The philosophy of risk, Thomas Telford: London, 
ICE, Risk analysis and management of projects, Thomas Telford:
London, 
S P, Project Risk Analysis and Management Guide (PRAM), APM
Group, 
24 Quality Management
Quality refers, obviously, to more than just technical performance. Quality

applies to everything in Project Management: Commercial, Organisation,
People, Control, Technical, etc. Quality Management covers Quality
Planning, Quality Control and Quality Assurance.
Quality Planning is the preparation, checking, and recording of actions
that are necessary to achieve the standard of product or service that the
customer and legislation requires.
Quality Control is the set of processes for planning and monitoring the
project to ensure that quality is being achieved.
Quality Assurance is the set of processes and procedures required to
demonstrate that the work has been performed according to the quality plan.
Total Quality Management is a much broader and more ambitious system
(philosophy) for identifying what the client really wants, defining the
organisation’s mission, measuring throughout the whole process how well
Strategic 23
performance meets the required standards, and involving the total

organisation in the implementation of a deliberate policy of continuous
improvement.
References
D B G, Managing Quality, Prentice Hall, 
L J S & Nann P C, Total Quality Through Project Management,
McGraw Hill, 
ISO Series 9000,10000, and 11000 on Quality Assurance, Guides to the
application of  (see particularly  on Quality in Projects,
including the definition of the contents of the Project Management
Plan), and Auditing
25 Health, Safety and Environment
“Health Safety, and Environment” involves determining the standards and

methods required to minimise, to a level considered acceptable by the
public, the legal system, users and operators, and others, the likelihood of
accident or damage to people, equipment, property, or the environment.¹³
This involves ensuring that these standards are respected and achieved in
operation, and reviewing them to ensure their continued validity. It also
entails proper appreciation of the legal and corporate environmental
control and reporting procedures required for the project.¹⁴
References
C, Health and Safety in Practice: Health & Safety Manager,
Volumes  & .
D V J  T K, Construction Safety Handbook,
nd edition, Thomas Telford, 
ECI, The ECI guide to managing health in construction, Thomas Telford:
London, 
S A, Environmental law for the construction industry, Thomas
Telford: London, 
 Although at first view it might be thought that “HS&E” does not apply in several project
situations, our research showed that % across all sectors considered it applicable.
 Note that the legal requirements of environmental legislation are specifically defined for
different “environments”, e.g. under ISO  Guide to Environmental Management
Systems.
25
3 Control
This section includes many of the core tools

traditionally associated with project
management.
A broad view of what is meant by Control is
taken. Planning, measuring, monitoring and
taking corrective action are all usually included
in the Control cycle.15 Effective planning
determines how the project is to be
approached. Monitoring and reporting then
relates actual performance against these
plans. Action may be needed to ensure
performance is maintained. Re-planning
may be necessary to ensure the project is
accomplished successfully. All these together
constitute control.
The heart of a planning and monitoring
system is prediction and trend analysis
based on reliable performance information.
The project management professional should
monitor the project against its baseline plan
and Key Performance Indicators.
 This is the classic definition of the control cycle derived form cybernetics – the science of
communication and control.
30 Work Content and Scope Management
A fundamental aspect of effective project planning, and therefore of

effective project management, is the processes of defining the scope of
the project and of breaking this into manageable pieces of work (work
packages). This can be achieved by first producing a scope definition
(via Requirements Capture¹⁶ etc.), then breaking the project scope into a
product orientated hierarchy, i.e. a Product Breakdown Structure (PBS),
and finally into a task orientated hierarchy, i.e. a Work Breakdown
Structure (WBS).
The Scope definition describes what the product deliverables of the
project are. (Managing this involves careful control of changes and
deliverables – see Topic .)
The PBS is a product orientated hierarchical breakdown of the project
into its constituent items without the tasks/work packaging being
developed. The WBS is a task oriented detailed breakdown, which defines
the work packages and tasks at a level above that defined in the networks
and schedules. The WBS initiates the development of the Organisational
Breakdown Structure (OBS), and the Cost Breakdown Structure (CBS). It
also provides the foundation for determining Earned Value (see topic )
and activity networks, and hence schedules (see topic ).
References
B A A, Project Management in Manufacturing and High Technology
Operations, Wiley, 
K H, Project Management: A Systems Approach to Planning,
Scheduling and Controlling, th edition, Van Norstrand Rheinhold, 
M J R & M S M, Project Management, Wiley, 
S A, B J F & G S, Project Management: Engineering,
Technology and Implementation, Prentice Hall, 
31 Time Scheduling/Phasing
The effective planning and accomplishment of activities’ timing and
phasing is a central skill of project management. Time scheduling/phasing
comprises ordering the processes required to ensure timely completion of
 Requirements Management is Topic .

Control 27
the project. Scheduling consists of activity definition, activity sequencing,

activity duration estimating, schedule development, and schedule control.
Phasing is more concerned with the strategic pacing of the project
and the overlapping between different activities or blocks of activities.
(For example, with the decision on whether or not to use Rapid Application
Development prototyping, Concurrent Engineering, Simultaneous
Design, Fast Track, Phased Hand-over, etc.) The phasing and overlapping
of activities is also an important aspect of the project management team’s
skills. Properly done, it can have a major impact on the performance of the
project (see Topic ).
Activities are normally scheduled using techniques such as Bar charts
(Gantt Charts, Milestone Charts) or networks (PERT, CPM, CPA,
Precedence, Activity-on-Arrow, Activity-on-Node).¹⁷ The concept of
critical path is central to network scheduling. Resource Management also
significantly affects this item.
References
Kerzner H, Project Management: A Systems Approach to Planning,
Scheduling and Controlling, th edition, Van Norstrand Rheinhold, 
L K G & G J, Project Management and Project Network
Techniques, Pitman, th edition, 
M J R & M S M, Project Management, Wiley, 
32 Resource Management
Planning, allocating and scheduling resources to tasks, generally including
people, machine (plant and equipment), money, and materials, is another
fundamental requirement of effective project planning and management.
Resource Management typically covers resource allocation and its impact
on schedules and budgets, and resource levelling and smoothing.
33 Budgeting and cost management

The completion of the project within its budget is a central objective of
project management. Budgeting and Cost Management is the process of
 PERT: Program Evaluation Review Technique CPM: Critical Path Method

CPA: Critical Path Analysis.
estimating the proper cost that should reasonably be expected to be

incurred against a clear baseline, understanding how and why actual
costs occur, and ensuring that the necessary response is taken promptly
to ensure actual costs come under budget. Successful cost management
on a project needs to be forward-looking.
Typical information needed for cost management includes that on:
● budgets (including estimating), generally based on work breakdown
structure or [cost] code of accounts;
● obtaining and recording commitments/accruals;
● measurement of work accomplished and value earned/valuation of
work, including treatment of changes (change control) and claims;
● cash flow;
● forecast out-turn costs;
● variance analysis of the trend in forecast versus previous out-turn cost.
(Cost status should be linked with schedule status via Performance
Measurement – see Topic , below, and of course with Quality.)
References
B J A  H K R, Effective Project Management through
Applied Cost and Schedule Control, Dekker, 
S N J (ed), Project Cost Estimating, Thomas Telford, 
34 Change Control
Almost all projects suffer change to their current “definition” at some

point in their evolution. Changes may be proposed by any of the
stakeholders associated with the project. Change may be unavoidable
or highly desirable; it may equally be unnecessary and not useful. It is
essential that any proposed change to the project be formally controlled.
The project management team, with the support, as appropriate, of
relevant stakeholders including the sponsor should therefore review
changes fully before their approval and actioning. Their impact on all
aspects of the project should be carefully assessed. All approved changes
should be fully documented and efficiently communicated.
The project must have an effective change control system in operation
and the project management professional should be familiar with its
operation.
Control 29
35 Earned Value Management
The term Earned Value¹⁸ is a generic performance measurement term

for the concept of representing physical work accomplished in terms of
financial worth accrued¹⁹.
Earned Value Management is the process of representing physical
progress achieved on the project in terms of a cost based measure (i.e.
money, or in some cases man hours). Cash measures of cost or quantity
measures of progress alone are not sufficient: serious distortions can
arise if physical progress is not related to financial progress in “value
earned” terms.
Various rules and techniques are used to represent the value of work
performed to date as a proportion of the total project value.
Structured estimates-to-complete are also given through Earned
Value based upon accurate assessment of status-to-date.
References
B S I, A Guide to Project Management,
BS : , HMSO , 
F, Q W, Cost/Schedule Control Systems Criteria, revised edition,
Probus, 
F Q W & K J M, Earned Value Project Management,
PMI, 
36 Information Management
Projects generate and absorb significant quantities of information.

It is important that the project has an effective information management
system. Information management covers the management of the systems,
activities, and data that allow information in a project to be effectively
acquired, stored, processed, accessed, communicated, and archived.
 In many organisations Cost/Schedule Control Systems Criteria (also known as

C-SPEC) are used as a specific version of Earned Value.
 Construction Bills of Quantities are a similar form of “performance measurement” since
physical progress is measured in value earned terms, though they generally
only apply to the site works portion of the project, and not to design or [overhead]
management.
There should be a valid audit trail of this communication process.

Document Management is another term frequently used in projects to
cover aspects of Information Management.
Generally modern information and computer based technology can
significantly impact the effective management of information. Ensuring a
comprehensive, valuable IS – Information Systems – plan is available for
the project as a whole should be an important responsibility of project
management.
Information distribution involves making needed information available
to project stakeholders in a timely manner. It includes implementing
communication management plans as well as responding to unexpected
requests for information.
31
4 Technical
Effectively managing the technical definition

of the project can make an enormous impact on
its potential success. This is usually true even of
seemingly non-technical projects such as some
organisational change projects: all usually involve
some definition of what has to be accomplished
and how things are to work. Generally the
technical base is both significant in size and
importance.
The effective management of the technical base
of the project involves ensuring, inter alia, that:
• the project’s requirements are clearly stated;
• the technical base is elaborated with regard to
the required quality, technical, safety,
environmental and other standards;
• an appropriate technology strategy is in place;
• the design is value optimised;
• the work required is accurately estimated;
• implementation is effectively managed;
• testing plans and practices should be initiated
from the outset;
• hand-over is effectively managed.
References
F, K et al., Visualising Project
Management, Wiley, 
M P W G, The Management of Projects,
Thomas Telford, 
40 Design, Implementation and Hand-Over Management

Design is the activity of defining what is to be delivered. To a significant
extent it will also influence how it will be made. It will obviously also
determine extensively how it will be used. The design process needs
to be effectively managed, ensuring particularly that there is:
● a clear statement of requirements, leading to a clear detailed definition
of specifications;
● a proper constitution of the design team, with optimum input from
all appropriate members of the project – marketing, production, etc.;
● a clear process plan and an optimum schedule, both for the design
process itself and its relation with the rest of the project schedule;
● effective treatment of technology;
● effective modelling and testing;
● proper deployment of value management and value engineering
practices, as well as clear input and control over project estimated
out-turn costs;
● a clear definition of the scope of work to be included;
● effective change control, information management, and configuration
management;
● a meeting of all planning, health, safety, environmental and other
legislative requirements;
● proper management of the Hand-Over process (to Operations etc., or
even straight to Decommissioning).
Many of these topics are covered explicitly in other sections of this Guide
to the Project Management Body of Knowledge.
References
M P W G, The Management of Projects, Thomas Telford, 
S A, Project Management Engineering, Technology, and
Implementation, Prentice Hall, 
41 Requirements Management
Requirements management²⁰ covers the process of defining the
user/customer requirements and building the system requirements
 Brief preparation is also a term often used for this process.
Technical 33
before going on to develop the performance specifications in detail.

Requirements should be comprehensive and clear, well structured,
traceable and testable.
Requirements should give rise to clearly specified project deliverables.
The delivery of these deliverables should be tested against the original
set of requirements. Any changes to the initial requirements should be
traceable (i.e. documented and explainable).
The requirements definition should be progressively updated as the
project develops.
References
E, H, Essentials of Project and Systems Engineering Management,
Wiley, 
F, K et al., Visualising Project Management, Wiley, 
S R et al., Systems Engineering: Coping with Complexity,
Prentice Hall, 
42 Estimating
Accurately assessing the amount of work required to complete each work

package (see topic ) is fundamental in the definition of a project. The
estimate usually begins as a quantification or measure of resource units
required, which can then be translated into a financial budget using rate
tables or actual costs. This topic is closely related to budgeting and cost
management.
References
T J R, The Commercial Project Manager Chapter ,
McGraw-Hill, 
L D, Project Management Handbook, th edition Chapters  & ,
Gower, 
S N, Project Cost Estimating, Thomas Telford, 
43 Technology Management
Where technology development is likely to be an issue in the future,

or where operation of the product or interfacing technology or support
are likely to be important, there should be a clear technology plan prepared

at an early stage of the project. This will involve consideration of, amongst
other things:²¹
● technology forecasting, for example on innovation
(e.g. “Pre-Planned Product Improvement”);
● technology compatibility/interfacing (e.g. GroupWare);
● operations support (e.g. Integrated Logistics Support).
Reference
S A, Project Management: Engineering, Technology, and
Implementation, Prentice Hall, 
B B S, Logistics Engineering and Management, Prentice
Hall, 
44 Value Engineering
At the technical level, value may be defined in terms of worth or the

quotient: performance divided by cost where high performance and low
cost are considered good value and low performance and high cost are bad
value. “Achieving good value requires balancing a series of conflicting
parameters to arrive at an optimum position”.²²
While Value Management is concerned with the broader optimisation
of strategic issues, Value Engineering is concerned with optimising the
conceptual, technical, operational and configuration aspects of value.
Value Engineering is the structured application of a series of proven
techniques during the phases of a project when products are being
developed. Considered, rightly, as an attitude of mind, formal Value
Engineering involves a formal approach to the improvement of product
solutions; it is achieved through teamwork in a workshop environment,
using a job plan based on problem-solving and creative thinking.
References:
C J N, Value Management in Construction: A client’s Guide,
CIRIA, 
 Technology Management might also cover Reliability, Maintainability, Availability

(RMA) for example.
 PrEN  VM European Standard (endorsed by BSI).
Technical 35
HM T, Central Unit on Procurement: No. 54 Value Management,

HM Treasury, 
T M, Value Management, Project Management Institute, 
45 Modelling and Testing
There are considerable benefits in both modelling the design and the
project deliverables as early in the project life cycle and as comprehensively
as possible. The project management professional should be technically
aware of the benefits and the costs of computer based modelling of the
design²³ together with other aspects of the project implementation and
should ensure that this happens in the most appropriate and cost effective
manner. Other forms of modelling commonly used include equipment/
software trials, demonstrators, and pilot runs.
The design and the evolving solution should be tested against the
requirements as it develops. Testing can take a variety of forms and
should be carried out effectively against the requirements definition. ²⁴
Techniques such as prototyping and rapid applications development
can be deployed as ways of testing the design prior to full implementation
authority being given.
Reference
G C L, “Virtual Project Management: Tools and the trade”,
Project Management Journal, (), pages –, .
46 Configuration Management
Configuration Management is the process of ensuring that the project

delivers everything it is supposed to – physical products and assets, quality
products, documentation, deliverables etc. – such that there is complete
assurance on delivery integrity. It is particularly concerned with managing
the status of pending and approved changes to the project deliverables
 For example through CAD (Computer Aided Design)/ CAM (Computer Aided
Manufacturing), Virtual Engineering Environments and other forms of simulation.
 Systems Engineers distinguish between Verification – testing to verify that a
requirement has been met – and Validation – assuring the product as a whole
performs integrally as required (Stevens et al, ).
and with managing the information that define the configuration

status. (As such it is closely related to Change Control – see Topic .)
All project management deliverables (assets, documents, products)
should be controlled such that there is complete assurance on delivery
integrity.
References
B H R, Software Configuration Management, Wiley, 
CCTA, Guide to Prince 2, HMSO, 
ISO , Guidelines for Configuration Management, 
37
5 Commercial
Commercial issues may drive the conduct of

the project.
50 Business Case
The business case defines why the project is required and what the
change is to be.²⁵ The business case should include an outline of the
project’s objectives, deliverables, time, cost, technical, safety, quality
and other performance requirements, and the major project risks and
upside opportunities.
The business case might also include information on the competitive
impact, resource requirements, organisational impacts, key performance
indicators and critical success factors of the project and its outcome.
The impact of these factors, together with the results of other forms
of appraisal, such as environmental appraisal, social impact, etc, should
be periodically assessed during the course of the project.
The same discipline should apply for supplier type companies
considering bidding for work on a project as much as for project sponsors.
Bidders should assess the business case of bidding for and winning (or
losing) the project.
The sponsor, the person responsible for defining the business case
and the development of the project against the business case, should “own”
the business case.
The business case will generally form an extremely important
proportion of the project’s KPIs (see Topic ).
The Business Case for the project, and its links to the project’s
justification, should be regularly reviewed. This will normally be done at
key “Investment Gates” – which will often coincide with other formal
strategic reviews.
Upon completion of the project there should be a formal evaluation of
whether the project achieved its stated business benefits.
References
C R K (ed), Project Evaluation, Thomas Telford, 
T JR, The Commercial Project Manager, McGraw-Hill, 
 In general, both the Business Case and all major procurements should be subject to
investment/business appraisal(s) in which the whole life cycle costs and all feasible
options should be reviewed. The do-nothing option should always be considered.
There will be occasions when the investment appraisal will show that the change
will not represent value for money within the requirements defined.
Commercial 39
51 Marketing and Sales
Marketing is the process of matching the abilities of an organisation with

the existing and future needs of its customers, to the greatest benefit of
both parties. The result is an exchange in which the organisation receives
income through the meeting of customers’ needs and customers receive
benefits that satisfy their expectations.
Marketing is often of significant importance to project management
professionals in that they can be involved in securing new business.
This activity, important in itself, can also interact with the way a project
is conceived and conducted.
Sales is the process of getting someone to buy the product or service
being offered by the organisation. Some project management professionals
can find themselves having to sell services or products. This too can
significantly affect the way a project is conceived and managed.
52 FInancial Management
Financing the project is normally the sponsor’s responsibility. The project

management team should know, and be sensitive to, the impact of how the
project is financed and the particular requirements imposed on the project
by its financing. Particular attention is likely to be given to cash flow and to
the value of early (or late) and/or on-time completion. Bonding
requirements (financial, performance, etc) should be understood where
appropriate. Currency fluctuations may be important where some or all
funding is in foreign currency. Some understanding of the relationship
between management accounting and project accounting/cost control is
generally necessary.
References
H G, A–Z of BOOT, IFR Publications, 
H W, Hillebrandt P & Murdoch J, Financial protection in the UK
building industry, Thomas Telford: London, 
N P, Project Financing, Euromoney Publications, 
53 Procurement
Procurement is the process of acquiring new services or products.

It covers the financial appraisal of the options available, development
of the procurement or acquisition strategy, preparation of contract
documentation, selection and acquisition of suppliers, pricing, purchasing,
and administration of contracts. It may also extend to storage, logistics,
inspection, expediting, transportation, and handling of materials and
supplies. It may cover all members of the supply chain. Operations and
maintenance, for example, needs to be supported through a supply chain
management process.
For many projects, procurement can represent the highest percentage
of expenditure. It is essential that value for money is realised. All major
procurements should be subject to careful appraisal and management.
As with the business case, all feasible options should be considered.
A procurement strategy should be prepared very early in the project.
This will often stem from a policy defined externally to the project –
for example the urgency of the project. It will also often be a function
of the state of the project definition, and of the supplier market.
The procurement strategy could include potential sources of supply,
terms and types of contract/procurement,²⁶ conditions of contract,
the type of pricing, and method of supplier selection.
Project management professionals will often be involved in the
preparation and administration of contracts. As well as a firm
understanding of the contract[s] themselves, this will involve
definitions of risks and their mitigation (see Topic ).
Reference
A  P M, Contract Strategy for
Successful Project Management, Association for Project Management,

C A. & T M, Strategic procurement in construction.
Thomas Telford: London, 
 For example, “alignment” – as in Partnering or Alliancing – versus commodity

purchasing
Commercial 41
54 Legal Awareness
Project management professionals should have an awareness of the

relevant legal duties, rights, and processes which govern in a particular
project situation. Selectively there should be an awareness of the potential
causes of disputes, liabilities, breaches of contract, means of resolving
a dispute, and legal basics of industrial relations.²⁷
Reference
R A, Principles of Law for Managers, Routledge, 
 Statutory responsibilities, conditions of employment, and anti-discrimination

legislation etc.
43
6 Organisational
By “organisational” we mean here the

structural aspects of the way the organisation
is configured. (The people aspects are dealt
with in the next section.)
The type of organisation in which, and
by which, a project is managed should be
appropriate to the project’s Key Performance
Indicators and Critical Success Factors
(see Topic 20). This said, the form of
organisation will strongly influence the way
project management is to be applied.
60 Life Cycle Design and Management
The project life cycle describes the sequence of phases through which
the project will evolve. It is absolutely fundamental to the management
of projects. (The life cycle is the only thing that uniquely distinguishes
projects from non-projects.)
Managing the evolution of the project through its life cycle is one of
the most important skills of a project manager. The processes representing
the project life cycle determine significantly how effectively the project is
structured.
The basic life cycle follows a common generic sequence: Opportunity,
Design and Development, Implementation, Hand-over,
Post-Project Evaluation, etc. – although the exact wording often
varies between industries and organisations.²⁸
Effectively managing the life cycle ensures that issues will not be
overlooked, time and money will not be wasted, and resources will be
effectively deployed. There should be evaluation and approval points
between phases. These are often termed “gates”.²⁹
The pacing and overlapping of phases, their staffing and their review
and management is a central skill of project management. This is key
for example in:
● optimising Time-to-market (and hence in areas such as Concurrent
Engineering, Fast Track/ Fast Build, Phased Hand-over, Simultaneous
Engineering, Rapid Application Development prototyping, etc.);
● strategic and design management reviews;
● Value Management and Cost Management.
Project life cycles can cover just the period up to the early stages of
Operations and Maintenance.³⁰ However, some projects may have an
extended life cycle, which can extend to the disposal or replacement of
the product or service. Equally, new versions of products may be generated
during Operations.
 There is a significant variation in industry specific terminology for different phases of the
life cycle. The basic sequence holds for all projects however, though enterprises bidding for
project work will generally have Marketing and Bidding as the first two phases, whereas
those investing in projects will typically have Concept and Feasibility as the first two.
 There are “hard” gates and “soft” gates – the former implying absolutely that the project
cannot proceed without formal management review and approval ; the latter implying a
degree of option.
 In some industries, particularly in the defence sector, Operations & Maintenance is termed
Integrated Logistics Support.
Organisational 45
It is common for some phases to be split into stages e.g. the concept
phase can be divided into two stages, where the first stage would involve a
wider range of options than the second stage which would investigate the
proposed products or services in more detail.
The phases can be characterised as follows.
61 Opportunity
The Opportunity phase is often split into two stages.

In the first, Concept or Marketing, initial work on defining the
opportunity should be enthusiastic and open-minded. Definitional
work should be comprehensive – several different options should be
investigated – and should lead to a full statement of the Strategy/
Project Management Plan (see Topic ).
In the second, the opportunity should be subject to a thorough and
critical review – should we go ahead with the investment/ should we bid;
and if so, are we doing this in the optimal way? Generally during this stage,
only one (or two) options will be investigated, but will be done so in detail.
The aim should be to find ways of meeting the project objectives/KPIs
more effectively, to check if the proposed way forward is feasible, and to
understand the risks and opportunities associated with each potential
option. Modelling of the options and their realisation should be as
extensive as is cost effective.
The experience of project management has consistently shown that
project personnel generally wish they had been more thorough and/or
spent longer at the project “front end”.
62 Design and Development

During this phase, detailed technical, commercial and organisational
decisions are taken. There is often substantial opportunity to optimise
these decisions without the expenditure of significant resource. Modelling,
prototyping and testing may thus be effort well spent. Management
approval gates will be necessary where major decisions are to be made –
technical and design for example, or procurement and commercial.
In some industries this phase is dealt with as two separate phases with a
management gate between the two. This is to allow the design to be
developed in further outline before approval is given for significant

resource expenditure on full design/development. Equally, the gate may be
required before major procurement decisions and commitments are made
after initial design but prior to full design/development.
63 Implementation
Implementation is the phase where the rate of resource expenditure is

greatest. Planning should have ensured that this proceeds as efficiently as
possible. There should normally be the minimum of changes in project
definition at this stage.
64 Hand-Over
Hand-Over is the completion of the project to the satisfaction of the

sponsor. It involves management of the introduction of the product or
service being delivered by the project.
During Hand-Over, project records together with an audit trail
documentation are completed and delivered to the sponsor. This
documentation will be required at the post project evaluation review.
All documentation should include any operations and maintenance plans.
There should also be a review of the original business case (Benefits
Assessment) at this time, and/or in the next phase Post Project Evaluation.
65 (Post-) project evaluation review [O&M/ILS31]
Increasing recognition is being given to the importance of reviewing

project performance and lessons that can be derived from the project.
A post project evaluation review is carried once the operations phase has
 Operations & Maintenance/ Integrated Logistics Support is the Product operations

phase that succeeds Close-out. In some instances this is included within the remit of the
project management team, to some degree at least. (De-commissioning is even included
in some industries.) Usually, the project management activity concludes more or less
with hand-over to operations. For this reason detail on the O&M/ILS phase has not
been included. Preparation of the operations plan however might be a very important
activity within the project.
Organisational 47
started. The evaluation should cover all pertinent topics of the Guide to
the Project Management Body of Knowledge.
Although often considered only after completion of the project, in
practice Project Evaluation can and should be a fully integral part of the
project. It should therefore be carried out periodically during the course of
the project, with the resultant information/lessons fed back into this and
other projects.
References
F, K et al, Visualising Project Management, Wiley, 
M P W G, The Management of Projects, Thomas Telford, 
P J K & S D P, “Critical Success Factors across the Project
Life Cycle”, Project Management Journal, (), pages –, 
66 Organisation Structure
The project’s organisation structure defines the reporting structures,

processes, systems and procedures of the project. Issues typically important
in the structuring of a project include the degree of project/functional
orientation, the extent of the project management (office) authority,
collocation of project members, the allocation of resources, work packaging
and interface management, and the definition of control, authorisation and
reporting procedures and systems.
There are three basic kinds of organisation structure:
● Functional – where resources are controlled totally from within their
respective functional unit;
● Project – where resources are allocated on a dedicated basis to a project,
from where they are controlled;
● Matrix – where resources are controlled functionally by their functional
head and concerning their project requirements by the project
manager³².
The choice of structure should take account of cultural and environmental
influences and may change as the project evolves through the project life
cycle and because of different types and conditions of contract.
 The term “Inverted Matrix” is sometimes used to describe the situation where
functional managers support projects and project management teams.
References
P J (ed.), PMI Project Management Handbook, Jossey- Bass, 
T J R, G K V  T L, The Project Manager as Change
Agent, McGraw-Hill, 
67 Organisational Roles
There are, or should be, various common roles found on projects.

Examples include the following.
The Project Sponsor is the owner of the project business case. He/she
represents the funder’s interests.
A Programme Manager is generally responsible for the overall
development of a product in its broadest sense. This may include in-service
operation as well as related projects and tasks needed to ensure satisfactory
development and delivery of the programme. (See Topic )
The Project Manager is responsible for delivering the project in the
agreed schedule, to the correct technical specification (defined to meet user
requirements), and within the approved budget and other specified criteria
(Key Performance Indicators).
The Project Support Office supports the project through the
examination of project status information and the provision of project help
and support as may be required.
Other roles which appear frequently include that of the Project Board
(called in some circumstances the Project Steering Committee), The
Configuration Manager/Management Board, Project Planning/Planner,
Cost Manager, Quality Manager, Resource Manager.
49
7 People
This section addresses the so-called “soft”

skills to do with managing people (which are
in general very hard - that is, difficult). It also
includes communications – communication can
be an overriding activity for many managers.
70 Communications
Just as the project life cycle is fundamental to structuring the process of

project management, communication is fundamental to making it work.
Effective communication with all stakeholders is absolutely fundamental
to project success. Hence a communications plan is often developed at the
start of a project (see topic ).
Communications can cover several media: oral, body language, written
(textural, numerical, graphic), paper, electronic, etc. The content and the
manner of delivery are perhaps more important however than simply the
medium.
Formal meetings are one important aspect of communication and can,
if not correctly managed, result in the waste of time, money and energy.
Certain meetings play a structural or process role in projects, for example,
the inaugural meeting which is required at project launch. Other meetings
include design reviews, periodic progress reviews, etc. The project
management professional should know what meetings are required when
in a project and how they should properly be conducted.
Information Management is also extremely important to effective
communications (see topic ).
Reference
G M, Interpersonal Skills at Work, Prentice Hall, 
71 Teamwork
Effective teamwork is generally at the heart of effective project

management. The project management professional should be familiar
with the process of forming a group of people into a project team that is to
work together for the benefit of the project. This can be achieved in a
formal manner by use of start-up meetings, seminars, workshops, etc. and
in an informal manner by getting the team to work well together.
Motivating and resolving conflicts between individual members of the
team are important elements of teamwork. Cultural characteristics of the
team members should be given full consideration: different cultures create
different working needs.
People 51
References
C T & Mather J, Construction project teams:
Making them work profitably. Thomas Telford: London 
D P C (ed.), Human Factors in Project Management,
AMACOM , 
72 Leadership
Leadership is crucial in project management. Generally, project managers
have to exercise considerable leadership skills. Management may be
defined as the art of getting others to do what one cannot necessarily do
oneself, by organising, controlling and directing resources. Leadership is
the ability to identify what has to be done and then to select the people who
are best able to tackle them. Leadership is about setting goals and objectives
and generating enthusiasm and motivation amongst the project team, and
stakeholders, to work towards those objectives.
Project leadership should be distinguished from the more particular
roles of the project champion, who espouses the project and secures for it
necessary support and resources, and the project sponsor, who is pre-
eminently concerned with defining the project objectives in the context
of the sponsoring organisation’s other objectives. The sponsor is the holder
of the business case.
References
D P C (ed.), Human Factors in Project Management,
AMACOM, 
G M, H C & Brimer W, Project Leadership, Gower,
nd edition, 
P J (ed.), PMI Project Management Handbook, Jossey- Bass, .
TJ R, G K V, T L, The Project Manager as
Change Agent, McGraw-Hill, 
73 Conflict Management
Conflict can occur at all levels in projects, largely because there may be
many different parties working together with their own separate aims
which at some point collide, or diverge. Projects, and contracts, easily
engender conflict.
Conflict Management is the art of managing and resolving conflict

creatively and productively. The art of conflict management is to channel
these conflicts so that the result is positive, preferably synergistically so,
rather than destructive.
References
T H J & W D L, “Leadership Conflict and Project
Management Effectiveness”, Sloan Management Review, Fall 
P J (ed.), PMI Project Management Handbook, Jossey-Bass, 
74 Negotiation
All projects will involve the need for negotiation. The art of negotiation is in
achieving to the greatest extent possible what you want from a transaction
while leaving all parties sufficiently content that the relationship
subsequently works well.
Reference
P J (ed.), PMI Project Management Handbook, Jossey- Bass, 
75 Personnel Management
The management of personnel factors is often a significant element of

project management. This may include recruiting, identifying labour
and staff skill requirements and availability, developing training and
development requirements, dealing with workforce disputes, and health
and welfare issues.
While many if not most of these matters require specialist knowledge
and skills, the project management professional should be knowledgeable
of their relevance.
53
Further Reading References
10 Project Management
B K, Understanding PRINCE 2, Butterworth-Heinemann, 
BS: , HMSO, 
D P C (ed.), The AMA Project Management Handbook,
AMACOM , 
H A, Management by Projects, Thomas Telford, 
M J R & Mantel S J, Project Management: a Managerial Approach,
rd edition, Wiley, 
S N J, Engineering Project Management, Blackwell Science Ltd, 
T J R, G K V,  T L, The Project Manager as Change
W J F, Construction project management: getting it right first time,
Thomas Telford, 
11 Programme Management
B J, Managing Programmes of Business Change, Today Publications
B R, The Project Workout, Pitman, 
G R J, “Alternative approaches to programme management”,
International Journal of Project Management, ( ), pages –, 
L J E (ed.), Project Management of Multiple Projects and Contracts,
Thomas Telford Publishing, 
P J H, “Management of Multiple Simultaneous Projects: a State of the
Art Review”, International Journal of Project Management, (),
pages , 
P S, “Programme Management: Organising Project Based
Change”, International Journal of Project Management, (), pages
–, 
T J R, G K V  T L, The Project Manager as Change
V  M A P, “Multi-project management – Organisational structure
and control”, International Journal of Project Management, (),
pages –, 
W S C,  Clark K B, “Creating project plans to focus product

development”, Harvard Business Review, (), pages –, 
12 Project Context
C & K, Project Management Handbook, nd edition,
Van Nostrand Reinhold, 
T J R, The Commercial Project Manger, McGraw Hill, 
T J R, The Handbook of Project-Based Management, nd edition
20 Project Success Criteria
F M & K L, Project Management, The Open University
Scheduling and Controlling, th edition, Van Nostrand Reinhold, 
21 Strategy/Project Management Plan
22 Value Management
B S I, Value Management, PrEN 
23 Risk Management
B D, “The evaluation of risk management in public sector
capital projects”, International Journal of Project Management,
(), pages –, 
C apm  R J, “The effectiveness of working group risk identification and
assessment techniques”, International Journal of Project
Management, (), pages –, 
T P A & P J G (eds.), Engineering Construction Risks –
A Guide to Project Risk Analysis and Risk Management, nd edition,
Thomas Telford, 
24 Quality Management
B S I, Quality management – Guidelines for
Quality Plans, BS ISO , 
Further Reading References 55
W J F, Construction Project Management – Getting it right first

time, Thomas Telford, 
25 Health, Safety and Environment
B S I, Occupational Health and Safety
Management Systems, OHSAS , 
B S I, Environmental Management
Systems, BS EN ISO , 
T J R, G K V  T L, The Project Manager as
30 Work Content and Scope Management
R G, Programme Management Demystified, E & F N Spon, 
31 Time Scheduling / Phasing
L J P, Project Planning, Scheduling & Control, Probus, 
O’C J T & N W, “Fossil power plant schedule compression
tactics: lessons from independent power producers” Project Management
Journal, (), pages –, 
S T M  T H J, “Concurrent project management:
a tool for technology transfer, R&D-to-market” Project Management
Journal, (), pages –, 
S G.  H T M, Competing Against Time, Free Press, 
32 Resource Management
B A, “Effects of human resource management on project effectiveness”,
International Journal of Project Management, (),
pages –, 
L A, Project Planning and Control, nd edition, Butterworth
Heinemann, 
33 Budget and Cost Management

B N M L (ed.), Financial Control, Thomas Telford, 
B D M, “Implementing earned value easily and effectively”, Project
Management Journal, (), pages –, 
C F D, Applied Cost Engineering, rd edition, Dekker, 

H K R, Basic Cost Engineering, rd edition, Dekker, 
S N J, Engineering Project Management, Blackwell Science, 
34 Change Control
L D, Project Management, Gower, 
35 Earned Value Management

L A, Project Planning and Control, nd edition, Butterworth
Heineman, 
R P B, “The performance measurement baseline –a statistical view”,
Project Management Journal, (), pages –, 
S A J, “Mapping the dimensions of project success”, Project
Management Journal, (), pages –, 
36 Information Management
C & K, Project Management Handbook, nd edition, Van
Nostrand Reinhold, 
L & L, Information Systems – A Problem solving Approach,
The Dryden Press, 
40 Design, Implementation and Hand-Over Management

C P D  M L A, “The Importance of Human Factors in
Planning the Requirements Capture Stage of a Project”, The International
Journal of Project Management, (), , pages –
C D I, “Product Design Teams: The simultaneous engineering
perspective” Project Management Journal, (), pages –, 
T H J, Engineering Program Management, Wiley 
W S H, “Project design flexibility”, Engineering Management
Journal,  (), pages –
42 Estimating
T J R, The Commercial Project Manager, McGraw Hill, 

S N, Project Cost Estimating, Thomas Telford, 
44 Value Engineering
I  C E, Creating Value in Engineering
Projects, Thomas Telford, 
W R, Production and Operations Management, th edition, Cassell, 
45 Modelling and Testing

S R et al, Systems Engineering: Coping with Complexity,
Prentice Hall, 
46 Configuration Management
A G, “Configuration management and its impact on businesses that use
computer platforms”, International Journal of Project
Management, (), pages –, 
F K et al, Visualising Project Management, Wiley, 
50 Business Case
L H J,  M D N, Selection Process for Capital Projects,
Wiley, 
S W E, Project Selection & Economic Appraisal, Van Nostrand
Reinhold, 
52 Financial Management
B R, The Project Workout, Pitman, 
F M  K L, Project Management, The Open University
McC S C  T R L K, “Financial and contractual aspects of
build-own-operate-transfer projects” International Journal of Project
Management, (), pages –, 
M A  D G E, Financial Engineering in the Procurement
of Projects, Asia Law & Practice, 
53 Procurement
C & K, Project Management Handbook, nd edition, Van
Nostrand Reinhold, 
H G D, “Which contractor selection methodology?” International
Journal of Project Management, (), pages –, 
L E, “Barriers to project partnering: report from the firing line”,
Project Management Journal, (), pages –, 
T, J R, The Commercial Project Manager, McGraw Hill, 
W S H,  W D, “Organizational risks of joint ventures,
consortia and alliance partnerships”, International Journal of Project
& Business Risk Management, (), pages –, 
54 Legal Awareness
J D, “Seven legal elements for a claim for construction acceleration,”
Project Management Journal, (), pages –, 
60 Life Cycle Design and Management

BS: , HMSO, 
O’C J T  Norwich W, “Fossil power plant schedule compression
tactics: lessons from independent power producers”Project Management
Journal, (), pages –, 
S T M  T H J, “Concurrent project management: a tool
for technology transfer, R&D-to-market” Project Management
Journal, (), pages –, 
T J, Simultaneous Engineering – buying time to market,
Van Norstrand Rheinhold, 
63 Implementation
C  N, Thinking Beyond Lean, Free Press, 
R C, “Design-manufacture integration to improve new product
development”, Project Management Journal, (),
pages –, 
65 (Post-) Project Evaluation Review

C R K (ed.), Project Evaluation, Thomas Telford, 
B B S, Logistics Engineering and Management,
Prentice Hall, 
66 Organisation Structure
C D I, Project Management Handbook, Van Nostrand
Rheinhold, 
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and engineering organizations”, Project Management Journal, (),
pages –, 
F Q W, “Integrated project development teams: Another fad …
or a permanent change?”, Project Management Journal, (),
pages –, 
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Structures”, Project Management Journal, (), pages –, 
70 Communication
APM , Standard Terms for the Appointment of a Project Manager,
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CIB, Project Management Skills, Construction Industry Council, 
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Journal, (), pages –, .
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71 Teamwork
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Personnel & Development, 
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72 Leadership
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73 Conflict Management
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74 Negotiation
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63
Comparison with Previous Version
Areas of significant difference compared with the previous version of

the APM BoK ( edition) include:
● Tighter definition of Success Criteria.
● Value Management split from Value Engineering, because VM is
Strategic and VE is basically technical/configuration/engineering.
● All the topics in the technical section are new, except for VE,
Estimating and Configuration Management (previously combined
with Change Control).
● Better definition of Procurement.
● Better coverage of Life Cycle Design and Management.
● Organisational Roles in addition to Organisation Structure.
In addition, several topics in the previous version have been incorporated
into other topics or omitted entirely:
● System Management – omitted as not sufficiently understood
or relevant.
● Project Appraisal – incorporated in Business Case and Financial
Management.
● Integration – incorporated in Project Management.
● Control & Co-ordination – incorporated in the whole section
on Control.
● Delegation – omitted as not sufficiently substantial.
● Management Development – incorporated in Personnel Management.
● Mobilisation – omitted as covered in Resource Management and
Personnel Management.
● Operation/Technical Management – incorporated in the whole section
on Technical.
● Industrial Relations – incorporated in Personnel Management.
Notes
Notes
APM
APMProject Management
Management Body ofBody of Knowledge
Knowledge
1 Ge
10 Project Management 11 Programm
2 Str
20 Project Success Criteria 22 Value Ma
21 Strategy/Project 23 Risk Man
Management Plan
03 Control 04 Technical 05 Commer

30 Work Content and 40 Design, Implementation 50 Business
Scope Management and Hand-Over 51 Marketing
31 Time Management 52 Financial
Scheduling/Phasing 41 Requirements Managem
32 Resource Management Management 53 Procurem
33 Budgeting and Cost 42 Estimating 54 Legal Aw
Management 43 Technology
34 Change Control Management
35 Earned Value 44 Value Engineering
Management 45 Modelling and Testing
36 Information 46 Configuration
Management Management
Opportunity Design and Implementat

Identification Development Make, Build a
Concept/Marketing Design, Modelling and
Feasibility Bid Procurement
1 General
gramme Management 12 Project Context
2 Strategic
e Management 24 Quality Management
k Management 25 Health, Safety and Environment
mmercial 06 Organisational 077 People

ness Case 60 Life Cycle Design 70 Communication
keting and Sales and Management 71 Teamwork
ancial 61 Opportunity 72 Leadership
agement 62 Design and 73 Conflict Management
curement Development 74 Negotiation
al Awareness 63 Implementation 75 Personnel
64 Hand-Over Management
65 (Post) Project
Evaluation Review
[O&M/ILS]
66 Organisation
Structure
67 Organisation Roles
entation Hand-over Post-Project Evaluation
uild and Test Test, Commission, Operation and

Start-up Maintenance /Integrated
Logistics

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106933 APM galleys 11/7/00 8:53 am Page 3

Association for Project Management

Acknowledgements The Association for Project Management (APM )

Copyright © Association for Project Management, 

APM Project Management

 Requirements Management page 

Further Reading References 

The Association for Project Management (APM) first began developing

Behavioural Characteristics of Project Management Professionals

● Attitude – an open positive “can do” attitude which encourages

Introduction to the BoK

This APM Body of Knowledge (BoK) represents the topics in which

The remaining six sections deal with topics to do with managing:

(Though there is nothing fixed about this sequence, it is logical insofar

The grouping of topics is shown in the diagram on the frontispiece.

This section covers a number of topics that

Project Management is widely regarded as the most efficient way of

This diagram illustrates the project management process

H F L, Advanced Project Management, Gower, rd edition, 

development, and so on. Programme Management is the effective

The successful accomplishment of a project generally requires a significant

The strategic framework provides the overall

20 Project Success Criteria

It is essential that the project’s success criteria be clearly defined and

 The definition of “success” is itself something that needs considerable care.

that must happen in order to ensure the successful realisation of a project.

21 Strategy/Project Management Plan

objectives, expenditure vs needs, or investment vs outcome.Value may be

allocated should be managed in order to minimise or completely mitigate

Quality refers, obviously, to more than just technical performance. Quality

performance meets the required standards, and involving the total

25 Health, Safety and Environment

“Health Safety, and Environment” involves determining the standards and

This section includes many of the core tools

30 Work Content and Scope Management

A fundamental aspect of effective project planning, and therefore of

 Requirements Management is Topic .

the project. Scheduling consists of activity definition, activity sequencing,

33 Budgeting and cost management

 PERT: Program Evaluation Review Technique CPM: Critical Path Method

estimating the proper cost that should reasonably be expected to be

Almost all projects suffer change to their current “definition” at some

35 Earned Value Management

The term Earned Value¹⁸ is a generic performance measurement term

Projects generate and absorb significant quantities of information.

 In many organisations Cost/Schedule Control Systems Criteria (also known as

There should be a valid audit trail of this communication process.

Effectively managing the technical definition

40 Design, Implementation and Hand-Over Management

before going on to develop the performance specifications in detail.

Accurately assessing the amount of work required to complete each work

Where technology development is likely to be an issue in the future,

are likely to be important, there should be a clear technology plan prepared

At the technical level, value may be defined in terms of worth or the

 Technology Management might also cover Reliability, Maintainability, Availability

HM T, Central Unit on Procurement: No. 54 Value Management,

45 Modelling and Testing

Configuration Management is the process of ensuring that the project

and with managing the information that define the configuration

Commercial issues may drive the conduct of