Domain 1: Business Environment & Initiating
▶ Business Environment Overview
Purpose
Align project work with organizational strategy, governance, and compliance so that the project delivers intended benefits.
Project versus Operations
Projects are temporary and unique; operations are ongoing and repetitive. Projects may hand off products into operations.
Value Delivery
Benefits realization: connect deliverables to measurable outcomes and business value.
Triple Constraint: Scope–Time–Cost with central Quality.
▶ Organizations, PMOs, and Governance ℹ️
| Structure | Project Manager Authority | Team Availability | Notes |
|---|---|---|---|
| Functional | Low | Low | Project Manager acts as coordinator or expediter; functional managers own resources and budget. |
| Weak Matrix | Limited | Low–Moderate | Functional manager leads; Project Manager has limited authority and may share administrative duties. |
| Balanced Matrix | Moderate | Moderate | Authority is shared between Project Manager and functional managers; decision rights negotiated. |
| Strong Matrix | High | High | Project Manager leads and often controls budget and resources; resembles projectized for the project context. |
| Projectized | Very High | Very High | Dedicated team; Project Manager has full authority and accountability for outcomes. |
| Hybrid / Composite | Varies | Varies | Blended structure (for example, functional for operations, projectized for strategic initiatives). |
Project Management Office (PMO) types: Supportive (low control; consultative), Controlling (moderate; templates/compliance), Directive (high; PMs report to PMO).
▶ Enterprise Environmental Factors (EEFs) and Organizational Process Assets (OPAs) ℹ️
Enterprise Environmental Factors (EEFs) are conditions not under the project team’s control that influence, constrain, or direct the project.
- Internal factors: organizational culture, organizational infrastructure, resource availability, and the organization’s risk appetite.
- External factors: market conditions, government regulations, technology trends, and geopolitical conditions.
Organizational Process Assets (OPAs) are the plans, processes, policies, procedures, and knowledge bases specific to and used by the performing organization.
- Processes and policies: standard procedures, guidelines, templates, and governance frameworks.
- Knowledge bases: lessons learned repositories, historical information, metrics, and configuration management knowledge bases.
▶ Life Cycles & Tailoring ℹ️
Predictive
Scope is defined early; changes are managed through formal change control; performance is measured against baselines.
Iterative
Design is revisited and refined through repeated cycles to incorporate feedback and learning.
Incremental
Working, usable increments are delivered frequently to realize value earlier.
Agile
Adaptive planning with frequent delivery, high stakeholder engagement, and responsiveness to change.
Hybrid
Combines predictive and adaptive approaches as appropriate (for example, predictive hardware with agile software).
▶ Develop Project Charter (Initiating)
The charter formally authorizes the project and grants the project manager authority to apply organizational resources to project work.
Inputs
Tools & Techniques
Outputs
- Business Case
- Benefits Management Plan
- Agreements
- Enterprise Environmental Factors (EEFs)
- Organizational Process Assets (OPAs)
- Expert Judgment
- Data Gathering (brainstorming, focus groups, interviews)
- Facilitation
- Meetings
- Project Charter
From Business Case and Benefits Management Plan → Charter → Project Management Plan.
Who signs? Usually the Sponsor. When? Before planning begins. Contents: high-level scope, milestones, budget, risks, and authority of the Project Manager.
▶ Identify Stakeholders (Initiating)
Identify people, groups, or organizations that could impact or be impacted by the project; analyze interests, power, and engagement to plan effective strategies.
Inputs
Tools & Techniques
Outputs
- Project Charter
- Business Documents
- Agreements
- Enterprise Environmental Factors (EEFs)
- Organizational Process Assets (OPAs)
- Stakeholder Analysis
- Data Representation (Power/Interest grid, Salience model, Stakeholder Cube)
- Expert Judgment
- Meetings
- Stakeholder Register
- Change Requests
- Updates to Plans and Documents
Power–Interest grid guides engagement strategies.
Engagement levels: Unaware → Resistant → Neutral → Supportive → Leading.
Domain 2: Predictive, Plan‑Based Methodologies ℹ️
▶ Collect Requirements
Inputs
Tools & Techniques
Outputs
- Project Charter
- Stakeholder Register
- Assumption Log
- Enterprise Environmental Factors (EEFs)
- Organizational Process Assets (OPAs)
- Interviews and Workshops
- Focus Groups
- Prototypes
- Questionnaires and Surveys
- Benchmarking
- Affinity Diagrams
- Requirements Documentation
- Requirements Traceability Matrix (RTM)
▶ Define Scope
Inputs
Tools & Techniques
Outputs
- Project Charter
- Requirements Documentation
- Assumption Log
- Enterprise Environmental Factors (EEFs) and Organizational Process Assets (OPAs)
- Expert Judgment
- Product Analysis
- Alternatives Analysis
- Facilitation
- Project Scope Statement
▶ Create WBS
Inputs
Tools & Techniques
Outputs
- Project Scope Statement
- Requirements Documentation
- Enterprise Environmental Factors (EEFs) and Organizational Process Assets (OPAs)
- Decomposition
- Expert Judgment
- Scope Baseline (Work Breakdown Structure, WBS Dictionary, Project Scope Statement)
▶ Define Activities
Inputs
Tools & Techniques
Outputs
- Scope Baseline
- Enterprise Environmental Factors (EEFs) and Organizational Process Assets (OPAs)
- Decomposition
- Rolling Wave Planning
- Expert Judgment
- Activity List
- Activity Attributes
- Milestone List
▶ Sequence Activities (Precedence Diagramming Method)
Inputs
Tools & Techniques
Outputs
- Activity List
- Activity Attributes
- Milestone List
- Assumption Log
- Enterprise Environmental Factors (EEFs) and Organizational Process Assets (OPAs)
- Precedence Diagramming Method
- Leads and Lags
- Project Management Information System (PMIS)
- Project Schedule Network Diagrams
FS, SS, FF, and SF relationships shown schematically.
▶ Estimate Activity Durations (Program Evaluation and Review Technique)
Inputs
Tools & Techniques
Outputs
- Activity List and Attributes
- Resource Calendars
- Enterprise Environmental Factors (EEFs) and Organizational Process Assets (OPAs)
- Analogous Estimating
- Parametric Estimating
- Three‑Point Estimating (Triangular and PERT)
- Bottom‑Up Estimating
- Reserve Analysis
- Expert Judgment
- Duration Estimates
- Basis of Estimates
Variables
Formulas
Results
O = Optimistic, M = Most Likely, P = Pessimistic T_e = (O + 4M + P) / 6 σ = (P − O) / 6 σ² = ((P − O) / 6)^2
▶ Develop Schedule (Critical Path Method, Leveling, Smoothing)
Inputs
Tools & Techniques
Outputs
- Activity List and Attributes
- Network Diagrams
- Duration Estimates
- Resource Requirements
- Resource Calendars
- Scope Baseline
- Enterprise Environmental Factors (EEFs) and Organizational Process Assets (OPAs)
- Critical Path Method (CPM)
- Resource Leveling
- Resource Smoothing
- What‑if Analysis
- Leads and Lags
- Crashing and Fast‑Tracking
- Schedule Baseline
- Project Schedule
- Schedule Data
- Project Calendars
Crashing increases cost; Fast‑tracking increases risk; Leveling may change the critical path; Smoothing preserves the end date by using float.
▶ Estimate Costs
Inputs
Tools & Techniques
Outputs
- Scope Baseline
- Project Schedule
- Resource Requirements
- Risk Register
- Enterprise Environmental Factors (EEFs) and Organizational Process Assets (OPAs)
- Analogous Estimating
- Parametric Estimating
- Bottom‑Up Estimating
- Three‑Point Estimating
- Vendor Bid Analysis
- Reserve Analysis
- Cost of Quality
- Cost Estimates
- Basis of Estimates
▶ Determine Budget (Earned Value Management)
Inputs
Tools & Techniques
Outputs
- Cost Estimates
- Basis of Estimates
- Project Schedule
- Agreements
- Risk Register
- Enterprise Environmental Factors (EEFs) and Organizational Process Assets (OPAs)
- Cost Aggregation
- Funding Limit Reconciliation
- Reserve Analysis
- Expert Judgment
- Cost Baseline (Budget at Completion, BAC)
- Project Funding Requirements
Values
Formulas
Indices
Cost Variance (CV) = EV − AC Schedule Variance (SV) = EV − PV Cost Performance Index = CPI = EV / AC Schedule Performance Ind.= SPI = EV / PV Estimate to Complete = ETC = (BAC − EV) / CPI Estimate at Completion = EAC = BAC / CPI (typical) To-Complete Performance = TCPI = (BAC − EV) / (BAC − AC)
▶ Plan Quality Management
Inputs
Tools & Techniques
Outputs
- Project Charter
- Project Management Plan
- Stakeholder Register
- Enterprise Environmental Factors (EEFs) and Organizational Process Assets (OPAs)
- Cost–Benefit Analysis
- Cost of Quality
- Benchmarking
- Flowcharts
- Design for X
- Statistical Sampling
- Quality Management Plan
- Quality Metrics
- Quality Checklists
▶ Control Quality (Monitoring and Controlling)
Inputs
Tools & Techniques
Outputs
- Project Management Plan
- Quality Metrics
- Deliverables
- Work Performance Data (WPD)
- Approved Change Requests
- Inspections
- Control Charts
- Cause‑and‑Effect Diagrams
- Histograms
- Pareto Charts
- Statistical Sampling
- Quality Control Measurements
- Verified Deliverables
- Work Performance Information (WPI)
- Change Requests
▶ Plan Resource Management
Inputs
Tools & Techniques
Outputs
- Project Charter
- Project Management Plan
- Stakeholder Register
- Enterprise Environmental Factors (EEFs) and Organizational Process Assets (OPAs)
- Organizational Charts
- Responsible–Accountable–Consulted–Informed (RACI)
- Organizational Theory
- Expert Judgment
- Resource Management Plan
- Team Charter
▶ Estimate Activity Resources
Inputs
Tools & Techniques
Outputs
- Activity List and Attributes
- Resource Calendars
- Risk Register
- Enterprise Environmental Factors (EEFs) and Organizational Process Assets (OPAs)
- Bottom‑Up Estimating
- Analogous Estimating
- Parametric Estimating
- Expert Judgment
- Data Analysis
- Resource Requirements
- Resource Breakdown Structure
- Basis of Estimates
▶ Plan Communications Management
Inputs
Tools & Techniques
Outputs
- Project Charter
- Stakeholder Register
- Enterprise Environmental Factors (EEFs) and Organizational Process Assets (OPAs)
- Communication Models (sender–receiver, encoding, noise)
- Communication Methods (push, pull, interactive)
- Communication Technology (tools, channels, constraints)
- Communications Management Plan
- Project Communications (updates)
▶ Plan Risk Management
Inputs
Tools & Techniques
Outputs
- Project Charter
- Stakeholder Register
- Enterprise Environmental Factors (EEFs) and Organizational Process Assets (OPAs)
- Analytical Techniques
- Expert Judgment
- Workshops
- Risk Management Plan
▶ Identify Risks
Inputs
Tools & Techniques
Outputs
- Risk Management Plan
- Scope, Schedule, Cost, and Quality Plans
- Stakeholder Register
- Assumption Log
- Enterprise Environmental Factors (EEFs) and Organizational Process Assets (OPAs)
- Brainstorming
- Checklists
- Prompt Lists
- Interviews
- Strengths‑Weaknesses‑Opportunities‑Threats (SWOT)
- Root Cause Analysis
- Risk Register
- Risk Report
- Risk Breakdown Structure (RBS) (if used)
▶ Perform Qualitative Risk Analysis
Inputs
Tools & Techniques
Outputs
- Risk Register
- Risk Management Plan
- Enterprise Environmental Factors (EEFs) and Organizational Process Assets (OPAs)
- Probability–Impact Matrix
- Data Quality Assessment
- Risk Categorization
- Urgency Assessment
- Facilitation
- Updated Risk Register
- Watchlist
▶ Perform Quantitative Risk Analysis
Inputs
Tools & Techniques
Outputs
- Risk Register
- Risk Management Plan
- Cost and Schedule Data
- Enterprise Environmental Factors (EEFs) and Organizational Process Assets (OPAs)
- Decision Trees with Expected Monetary Value (EMV)
- Monte Carlo Simulation
- Sensitivity Analysis (Tornado Diagrams)
- Simulation
- Updated Risk Report
- Quantified impacts on schedule and cost
▶ Plan Risk Responses
Inputs
Tools & Techniques
Outputs
- Risk Register
- Risk Report
- Enterprise Environmental Factors (EEFs) and Organizational Process Assets (OPAs)
- Threat responses: Avoid, Transfer, Mitigate, Accept
- Opportunity responses: Exploit, Share, Enhance, Accept
- Contingent Responses
- Fallback Plans
- Updated Risk Register
- Change Requests
- Updates to Plans and Baselines
▶ Plan Procurement Management
Inputs
Tools & Techniques
Outputs
- Project Charter
- Scope, Schedule, and Cost Baselines
- Risk Register
- Stakeholder Register
- Enterprise Environmental Factors (EEFs) and Organizational Process Assets (OPAs)
- Make‑or‑Buy Analysis
- Source Selection Analysis
- Bidder Conferences
- Advertising
- Procurement Management Plan
- Procurement Strategy
- Bid Documents (RFP, IFB, RFQ)
- Procurement Statement of Work (SOW)
▶ Plan Stakeholder Engagement
Inputs
Tools & Techniques
Outputs
- Project Charter
- Stakeholder Register
- Enterprise Environmental Factors (EEFs) and Organizational Process Assets (OPAs)
- Stakeholder Engagement Assessment Matrix (SEAM)
- Power–Interest and Salience Models
- Expert Judgment
- Stakeholder Engagement Plan
▶ Quick References (Domain 2)
Baselines
Scope = WBS + WBS Dictionary + Scope Statement • Schedule = approved dates • Cost = Budget at Completion (BAC)
Compression
Crashing increases cost; Fast‑tracking increases risk.
Reserves
Contingency Reserves (known‑unknowns) • Management Reserves (unknown‑unknowns).
PERT
Tₑ = (O + 4M + P)/6 • σ = (P − O)/6
Earned Value
CV = EV − AC • SV = EV − PV • CPI = EV/AC • SPI = EV/PV • TCPI = (BAC − EV)/(BAC − AC)
Cheat Sheet & Patterns (Domains 1 & 2)
Charter vs Plan
Charter authorizes the project and the Project Manager; the Plan defines how to execute and control the work.
EEFs vs OPAs
EEFs are conditions that influence the project; OPAs are reusable organizational assets.
PDM Types
Finish‑to‑Start (most common), Start‑to‑Start / Finish‑to‑Finish (parallel), Start‑to‑Finish (rare).
Risk Responses
Threats: Avoid, Transfer, Mitigate, Accept • Opportunities: Exploit, Share, Enhance, Accept.
Contracts
Fixed‑Price shifts risk to seller; Cost‑Reimbursable shifts risk to buyer; Time and Materials is hybrid.
Glossary of Terms (Domains 1 & 2)
Enterprise Environmental Factors (EEFs)
Internal and external conditions — such as organizational culture, infrastructure, market conditions, regulations, and technology — that influence, constrain, or direct the project.
Organizational Process Assets (OPAs)
Reusable assets of the organization, including policies, procedures, templates, historical information, and lessons learned repositories.
ITTO
Inputs, Tools & Techniques, and Outputs — the PMI structure for describing each project management process.
Governance
The framework of roles, policies, and decision‑making that ensures projects align with organizational strategy and compliance needs.
Tailoring
The practice of adapting project management processes, tools, and artifacts to the unique context of a project.
Work Performance Data (WPD)
Raw observations and measurements identified during activities being performed.
Work Performance Information (WPI)
Work Performance Data analyzed in context to provide meaningful insights for decision‑making.
Critical Path Method (CPM)
A scheduling technique that determines the longest path of activities and the shortest possible project duration.
Earned Value Management (EVM)
A method that integrates scope, schedule, and cost to assess project performance and forecast outcomes.