Lesson 1: Business Environment

Question 1

Project Management Office (PMO)

Answer 1

A management structure that standardizes the project-related governance processes and facilitates the sharing of resources, methodologies, tools and techniques. PMOs are more common in larger organizations because of the number of projects that can be in process at the same time.

Question 2

PMO Structure: Supportive

Answer 2

Provide a consultative role to projects by supplying templates, best practices, training, access to information and lessons learned from other projects.

Question 3

PMO Structure: Controlling

Answer 3

Provide support and require compliance through various means. Compliance may involve adopting project management frameworks or methodologies; using specific templates, forms and tools; or conforming to governance

Question 4

PMO Structure: Directive

Answer 4

Take control of projects by directly managing the projects or shared resources, including project managers. A relatively small number of PMOs fall into this category.

Question 5

Agile Manifesto Links
16-18

Answer 5

https://agilemanifesto.org
https://agilemanifesto.org/principles.html

Question 6

Agile Manifesto 1-6

Answer 6

1.Early and continuous delivery of outcomes

2.Embracing changing requirements for competitive advantage

3.Delivery frequently

4.Collaborative work – team members and business or customer representatives

5.Team members – motivated and empowered to make decisions, with needed support

6.Effective conversations are face-to-face (and enhanced at a white-board)

Question 7

Agile Manifesto 7-12

Answer 7

7. Progress is measured by results
8. Consistent pace of work determined by the team
9. Stability and support through quality results
10. Lean concept – eliminate anything that does not provide value
11. Self-organizing teams and collaboration will produce the best results
12. Continuous improvement of process with adjustments made going forward

Question 8

Strategic Planning and Lean Portfolio Mgmt.

Answer 8

https://www.pmi.org/disciplined-agile/da-flex-toc/strategic-planning-and-lean-portfolio-management

Question 9

Cost Benefit Analysis (40)

Answer 9

One method of measuring or evaluating a project’s benefit and value.

Question 10

INTERNAL RATE OF RETURN (IRR) (40)

Answer 10

The interest rate that makes the net present value of all cash flow equal to zero. This rate is a function of the cost of capital for project implementation.

Question 11

RETURN ON INVESTMENT (ROI) (40)

Answer 11

A financial metric of profitability that measures the gain or loss from an investment relative to the amount of money invested.

Question 12

OPPORTUNITY COST (40)

Answer 12

A concept applied to quantify the missed opportunity when deciding to use a resource (e.g. investment dollars) for one. In other words, it is the opportunity (potential return) that will not be realized when one project is selected over another.

Question 13

Net Present Value (NPV)

Answer 13

The present value of all cash flows at the required rate of return, compared to the initial investment. *NPV compares the value of a currency unit today to the value of the same currency unit in the future, after taking inflation and discount rate into account.

Question 14

Objectives and Key Results (OKR)

Answer 14

A goal-setting framework used by individuals, teams, and organizations to define measurable goals and track their outcomes. It helps clarify investment ideas and the metrics used to measure success.

Question 15

Project Governance

Answer 15

An oversight function.
It has key benefits of:
*Single point of accountability
*Issue management and resolution
*Information distribution and clear communication
* `Outlines roles, relationships and responsibility among project stakeholders.

Question 16

Governance Checkpoint: Predictive

Answer 16

Review the work and make one of three decisions to continue to the next phase, continue with modification or end the project.

Question 17

Governance Checkpoint: Adaptive

Answer 17

Rolls the review into the next iteration or sprint, which we can think of as a phase. This process continues, guided by the customer’s acceptance criteria or some statement of expectation — minimum viable product (MVP), minimum business increment (MBI) or definition of done (DoD) — until a unit of value can be delivered.

Question 20

Collaboration

Answer 20

The Collaboration/problem-solving conflict resolution technique is based on incorporating multiple viewpoints and insights from differing perspectives. It necessitates a collaborative mindset and open communication to achieve consensus and commitment to an agreement. This approach aims to reach a win-win situation for all involved parties (PMBOK 7th edition, page 22).

Question 22

Backlog Refinement

Answer 22

Provides a chance for the product owner to discuss and address stories’ requirements with the team. This can involve discussing requirements, potential approaches, and even estimations in order to end up with a clear vision of how to approach stories (PMBOK 7th edition, page 179).

Question 23

Project Authorization

Answer 23

Projects get authorized by someone external to the project such as the sponsor, PMO, or portfolio steering committee (PMBOK 6th edition, page 77). Unless the Project sponsor is part of Senior Management, the project charter should be signed by someone with the authority to assign project resources and name the project manager, i.e., the project sponsor. The project manager or stakeholders may under no circumstances sign the charter to authorize the project.

Question 25

Earned Value
Cost Variance

Answer 25

EV=CV+SC
CV=EV-AC