Domain
A high-level knowledge area tested on the PMP exam.
Getting Started: PMP Exam Essentials
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Project Management Professional (PMP)® Examination Content Outline — key terms, tricks & tips
Everything from the course in one searchable place: 182 entries. Use it to review before a practice test or look up a word you forgot.
182 results
Task
Specific responsibilities within a domain that a PM performs.
Getting Started: PMP Exam Essentials
Enabler
Examples of the work associated with a task.
Getting Started: PMP Exam Essentials
ECO
Exam Content Outline, the blueprint for the PMP exam.
Getting Started: PMP Exam Essentials
Psychometric Analysis
Method used to determine the passing score for the exam.
Getting Started: PMP Exam Essentials
Multiple-Response Question
A question type requiring selection of multiple correct answers.
Getting Started: PMP Exam Essentials
Hybrid Methodology
Combines elements of both agile and predictive approaches.
Getting Started: PMP Exam Essentials
Understanding the PMP Exam Structure and Format
To remember the PMP domains, think 'PPP': People, Process, and Profit (Business Environment).
Getting Started: PMP Exam Essentials
Understanding the PMP Exam Structure and Format
Memorize the three PMP exam domains: People, Process, and Business Environment. Know their approximate percentage weightings (People 42%, Process 50%, Business Environment 8%) as these are frequently referenced.
Getting Started: PMP Exam Essentials
Understanding the PMP Exam Structure and Format
Not reviewing the latest PMP Exam Content Outline (ECO) and studying outdated material.
Getting Started: PMP Exam Essentials
Understanding the PMP Exam Structure and Format
Underestimating the importance of agile and hybrid methodologies, as the exam has a significant focus on them.
Getting Started: PMP Exam Essentials
Understanding the PMP Exam Structure and Format
Failing to practice different question types, leading to surprise and time management issues during the actual exam.
Getting Started: PMP Exam Essentials
Eligibility Criteria
Specific requirements, education and experience, to qualify for PMP.
Getting Started: PMP Exam Essentials
Contact Hours
Formal project management education hours required for eligibility.
Getting Started: PMP Exam Essentials
Audit
Random verification process for PMP application details.
Getting Started: PMP Exam Essentials
PDU (Professional Development Unit)
Units earned to maintain PMP certification every three years.
Getting Started: PMP Exam Essentials
CCRS (Continuing Certification Requirements System)
PMI's online system for tracking and reporting PDUs.
Getting Started: PMP Exam Essentials
Process Groups
Five phases of a project lifecycle used to describe experience.
Getting Started: PMP Exam Essentials
Unique Non-Overlapping Experience
Project experience that does not count concurrently for multiple projects.
Getting Started: PMP Exam Essentials
Navigating the PMP Application Process and Requirements
To remember the PMP eligibility criteria, think: '35 Hours, then Experience!' (35 contact hours, then either 36 or 60 months of experience).
Getting Started: PMP Exam Essentials
Navigating the PMP Application Process and Requirements
The PMP exam content outline emphasizes the importance of understanding the application process, as it directly relates to the professional standards PMI upholds. Keywords to spot in questions might include 'eligibility,' 'audit,' 'PDU,' or 'certification renewal.' Memorize the two main eligibility paths (degree vs. no degree) and their corresponding experience requirements (36 vs. 60 months).
Getting Started: PMP Exam Essentials
Navigating the PMP Application Process and Requirements
Underestimating the detail required for project experience descriptions, leading to rejection.
Getting Started: PMP Exam Essentials
Navigating the PMP Application Process and Requirements
Not preparing for a potential audit by having documentation readily available.
Getting Started: PMP Exam Essentials
Navigating the PMP Application Process and Requirements
Failing to track PDUs after certification, resulting in loss of credential.
Getting Started: PMP Exam Essentials
Conflict Resolution
Techniques used to address disagreements within a team.
People: Leading Project Teams and Stakeholders
Forcing
Imposing a solution; win-lose approach, often by authority.
People: Leading Project Teams and Stakeholders
Collaborating
Working together to find a mutually beneficial solution; win-win.
People: Leading Project Teams and Stakeholders
Compromising
Finding a middle ground where both parties give up something.
People: Leading Project Teams and Stakeholders
Withdrawal
Avoiding or postponing the conflict; lose-lose approach.
People: Leading Project Teams and Stakeholders
Smoothing
De-emphasizing differences and focusing on areas of agreement.
People: Leading Project Teams and Stakeholders
Situational Leadership
Adapting leadership style based on team's needs and situation.
People: Leading Project Teams and Stakeholders
Psychological Safety
Environment where team members feel safe to take risks and speak up.
People: Leading Project Teams and Stakeholders
Conflict Resolution & Team Leadership
To remember conflict resolution techniques: 'Can We Solve Conflicts Effectively?' (Collaborate, Withdraw, Smooth, Compromise, Force).
People: Leading Project Teams and Stakeholders
Conflict Resolution & Team Leadership
The PMP exam often presents scenarios where you must choose the BEST conflict resolution technique. Look for keywords indicating urgency, importance of relationship, or desire for a lasting solution. Collaboration is generally preferred, but other techniques are appropriate in specific contexts. Memorize the 5 conflict resolution techniques and when to use each.
People: Leading Project Teams and Stakeholders
Conflict Resolution & Team Leadership
Always using the same conflict resolution technique, regardless of the situation.
People: Leading Project Teams and Stakeholders
Conflict Resolution & Team Leadership
Ignoring conflict, hoping it will resolve itself, which often escalates issues.
People: Leading Project Teams and Stakeholders
Conflict Resolution & Team Leadership
Adopting a rigid leadership style instead of adapting to team maturity and project needs.
People: Leading Project Teams and Stakeholders
Empowerment
Giving team members authority to make decisions.
People: Leading Project Teams and Stakeholders
Skill Gap Analysis
Identifying differences between required and current skills.
People: Leading Project Teams and Stakeholders
Negotiation
Discussion to reach an agreement, often involving compromise.
People: Leading Project Teams and Stakeholders
BATNA
Best Alternative To a Negotiated Agreement.
People: Leading Project Teams and Stakeholders
Win-Win Outcome
A negotiation result where all parties feel satisfied.
People: Leading Project Teams and Stakeholders
Active Listening
Fully concentrating on what is being said, not just hearing.
People: Leading Project Teams and Stakeholders
Stakeholder Interests
Underlying needs and concerns of stakeholders.
People: Leading Project Teams and Stakeholders
Empowering Teams & Stakeholders: Training & Negotiation
To 'TRAIN' your team and 'NEGOTIATE' effectively, remember: T-rust, R-esources, A-uthority, I-nterests, N-eeds. Then N-o-lose, E-xplore, G-ain-gain, O-ptions, T-alk, I-ntegrity, A-greement, T-ime, E-xecute!
People: Leading Project Teams and Stakeholders
Empowering Teams & Stakeholders: Training & Negotiation
The exam emphasizes understanding stakeholder interests over positions in negotiation. For training, recognize that continuous learning and development are key to team performance and project success.
People: Leading Project Teams and Stakeholders
Empowering Teams & Stakeholders: Training & Negotiation
Failing to identify and address team training needs early, leading to project delays or quality issues.
People: Leading Project Teams and Stakeholders
Empowering Teams & Stakeholders: Training & Negotiation
Micromanaging empowered teams, which undermines trust and reduces initiative.
People: Leading Project Teams and Stakeholders
Empowering Teams & Stakeholders: Training & Negotiation
Entering negotiations without understanding your own or the other party's underlying interests, leading to suboptimal outcomes.
People: Leading Project Teams and Stakeholders
Shared Understanding
Common interpretation of project elements by stakeholders.
People: Leading Project Teams and Stakeholders
Virtual Team
Geographically dispersed team relying on technology for collaboration.
People: Leading Project Teams and Stakeholders
Communication Protocols
Agreed-upon rules for how and when to communicate.
People: Leading Project Teams and Stakeholders
Collaborative Platforms
Online tools for shared work, documents, and task management.
People: Leading Project Teams and Stakeholders
Common Language
Standardized terminology used across a project.
People: Leading Project Teams and Stakeholders
Project Charter
Document authorizing a project and outlining its objectives.
People: Leading Project Teams and Stakeholders
Visual Aids
Diagrams, charts, or images to convey information.
People: Leading Project Teams and Stakeholders
Building Shared Understanding & Engaging Virtual Teams
To ensure 'Shared Understanding,' remember 'V.C.C.D.I.': Vision, Communicate, Clarify, Confirm, Document, Iterate.
People: Leading Project Teams and Stakeholders
Building Shared Understanding & Engaging Virtual Teams
The PMP exam emphasizes the project manager's role in creating a collaborative project environment. Look for questions about communication strategies, conflict prevention, and stakeholder engagement, particularly in diverse or distributed teams.
People: Leading Project Teams and Stakeholders
Building Shared Understanding & Engaging Virtual Teams
Assuming everyone understands just because you've said it once.
People: Leading Project Teams and Stakeholders
Building Shared Understanding & Engaging Virtual Teams
Neglecting informal communication channels for virtual teams.
People: Leading Project Teams and Stakeholders
Building Shared Understanding & Engaging Virtual Teams
Not using visual aids to explain complex concepts.
People: Leading Project Teams and Stakeholders
Mentoring
Guidance from an experienced person to a less experienced one.
People: Leading Project Teams and Stakeholders
Ground Rules
Agreed-upon behaviors and expectations for team interaction.
People: Leading Project Teams and Stakeholders
Emotional Intelligence (EQ)
Ability to understand and manage emotions in self and others.
People: Leading Project Teams and Stakeholders
Self-Awareness
Recognizing one's own emotions, strengths, and weaknesses.
People: Leading Project Teams and Stakeholders
Empathy
Understanding and sharing the feelings of another.
People: Leading Project Teams and Stakeholders
Self-Regulation
Controlling one's impulses and adapting to change.
People: Leading Project Teams and Stakeholders
Social Skills
Managing relationships and building networks effectively.
People: Leading Project Teams and Stakeholders
Mentoring, Ground Rules, and Emotional Intelligence
To remember the components of EQ, think of 'SMES': Self-Awareness, Motivation, Empathy, and Social Skills. (Self-Regulation is often grouped with Self-Awareness or as a separate 'S').
People: Leading Project Teams and Stakeholders
Mentoring, Ground Rules, and Emotional Intelligence
The PMP exam often tests your ability to apply these concepts in scenario-based questions. Look for keywords like 'fostering growth,' 'establishing expectations,' 'resolving interpersonal issues,' or 'understanding team dynamics' to identify questions related to mentoring, ground rules, and emotional intelligence. Remember that EQ is crucial for effective leadership.
People: Leading Project Teams and Stakeholders
Mentoring, Ground Rules, and Emotional Intelligence
Failing to involve the team in creating ground rules, leading to lack of ownership.
People: Leading Project Teams and Stakeholders
Mentoring, Ground Rules, and Emotional Intelligence
Ignoring violations of ground rules, which undermines their effectiveness and team trust.
People: Leading Project Teams and Stakeholders
Mentoring, Ground Rules, and Emotional Intelligence
Assuming emotional intelligence is an innate trait rather than a skill that can be developed and improved.
People: Leading Project Teams and Stakeholders
Predictive Methodology
Sequential approach with upfront planning.
Process: Project Execution and Control
Adaptive Methodology
Iterative approach with flexible planning.
Process: Project Execution and Control
Scope Creep
Uncontrolled expansion of project scope.
Process: Project Execution and Control
Work Breakdown Structure (WBS)
Hierarchical decomposition of project work.
Process: Project Execution and Control
Cost Baseline
Approved time-phased project budget.
Process: Project Execution and Control
Earned Value Management (EVM)
Method to measure project performance.
Process: Project Execution and Control
Analogous Estimating
Estimating using historical data from similar projects.
Process: Project Execution and Control
Parametric Estimating
Estimating using statistical relationships.
Process: Project Execution and Control
Project Methodology, Scope, and Budget Management
To remember the core of scope and budget: 'S.C.O.P.E. = See Clearly, Outline Precisely, Estimate Costs.'
Process: Project Execution and Control
Project Methodology, Scope, and Budget Management
The PMP exam frequently tests your understanding of the differences between predictive and adaptive lifecycle approaches. Keywords to spot include 'stable requirements' for predictive and 'high uncertainty' or 'evolving requirements' for adaptive. Also, remember that the Work Breakdown Structure (WBS) is a key output of the Plan Scope Management process and is fundamental for defining project scope.
Process: Project Execution and Control
Project Methodology, Scope, and Budget Management
Failing to get formal sign-off on project scope, leading to disputes later.
Process: Project Execution and Control
Project Methodology, Scope, and Budget Management
Not establishing a robust change control process, allowing scope creep to derail the project.
Process: Project Execution and Control
Project Methodology, Scope, and Budget Management
Underestimating costs due to insufficient research or ignoring contingency reserves.
Process: Project Execution and Control
Critical Path Method (CPM)
Determines the longest sequence of activities.
Process: Project Execution and Control
Schedule Performance Index (SPI)
Measures scheduling efficiency (Earned Value / Planned Value).
Process: Project Execution and Control
Quality Assurance
Auditing quality requirements and results.
Process: Project Execution and Control
Quality Control
Monitoring specific results against standards.
Process: Project Execution and Control
Fixed-Price Contract
Buyer pays a fixed amount; seller bears most risk.
Process: Project Execution and Control
Cost-Reimbursable Contract
Buyer pays costs plus a fee; buyer bears most risk.
Process: Project Execution and Control
Time and Materials (T&M)
Hybrid contract for hourly rates and material costs.
Process: Project Execution and Control
Procurement Statement of Work (SOW)
Details work to be performed by external vendor.
Process: Project Execution and Control
Schedule, Quality, and Procurement Management
SQP: 'Schedule Quickly, Quality Perfectly, Procure Smartly!' – a reminder of the three key areas.
Process: Project Execution and Control
Schedule, Quality, and Procurement Management
The PMP exam frequently tests your ability to select the appropriate contract type for a given scenario. Pay close attention to keywords indicating scope clarity, risk tolerance, and desired incentives. Remember that Fixed-Price contracts are for well-defined scopes, while Cost-Reimbursable contracts suit less defined scopes.
Process: Project Execution and Control
Schedule, Quality, and Procurement Management
Failing to establish a clear quality baseline early in the project, leading to scope creep and rework.
Process: Project Execution and Control
Schedule, Quality, and Procurement Management
Choosing a Fixed-Price contract for a project with a highly uncertain scope, transferring too much risk to the buyer or leading to change order disputes.
Process: Project Execution and Control
Schedule, Quality, and Procurement Management
Not actively monitoring and controlling the schedule, only reacting to delays rather than preventing them.
Process: Project Execution and Control
Risk Register
Document listing identified risks, analysis, and responses.
Process: Project Execution and Control
Risk Appetite
The degree of uncertainty an entity is willing to accept.
Process: Project Execution and Control
Contingency Reserve
Budget or schedule allocated for known-unknown risks.
Process: Project Execution and Control
Management Reserve
Budget held for unknown-unknown risks.
Process: Project Execution and Control
Change Control Board (CCB)
Group responsible for reviewing and approving changes.
Process: Project Execution and Control
Communication Management Plan
Document outlining how project information will be shared.
Process: Project Execution and Control
Stakeholder Engagement
Involving individuals who can affect or be affected by the project.
Process: Project Execution and Control
Baseline
Original approved plan for scope, schedule, or cost.
Process: Project Execution and Control
Risk, Change, and Communication Management
For risk responses, remember 'ATM-E' for Threats: Avoid, Transfer, Mitigate, Escalate. And 'EES-A' for Opportunities: Exploit, Enhance, Share, Accept. Just add 'Accept' to both!
Process: Project Execution and Control
Risk, Change, and Communication Management
The PMP exam emphasizes that all changes to project baselines (scope, schedule, cost) must go through a formal change control process, typically involving a Change Control Board (CCB). Look for questions testing your understanding of when and how to engage the CCB.
Process: Project Execution and Control
Risk, Change, and Communication Management
Ignoring small changes: Even minor changes can accumulate into significant scope creep if not managed through a formal process.
Process: Project Execution and Control
Risk, Change, and Communication Management
Failing to communicate negative risks: Hiding potential problems from stakeholders can erode trust and lead to bigger issues later.
Process: Project Execution and Control
Risk, Change, and Communication Management
Not updating baselines after approved changes: If baselines aren't updated, the project will be measured against an outdated plan.
Process: Project Execution and Control
Project Closure
Formal completion of all project activities.
Process: Project Execution and Control
Project Governance
Framework guiding project decision-making and alignment.
Process: Project Execution and Control
Continuous Improvement
Ongoing effort to enhance processes and performance.
Process: Project Execution and Control
Lessons Learned
Knowledge gained from project experiences.
Process: Project Execution and Control
Knowledge Transfer
Sharing project insights across the organization.
Process: Project Execution and Control
Organizational Process Assets
Plans, processes, procedures, and knowledge base.
Process: Project Execution and Control
Final Acceptance
Formal sign-off by the customer or sponsor.
Process: Project Execution and Control
Project Closure, Governance, and Continuous Improvement
To remember Project Closure steps: 'C-L-O-S-E': Confirm deliverables, Lessons learned, Obtain acceptance, Settle contracts, End resources.
Process: Project Execution and Control
Project Closure, Governance, and Continuous Improvement
The PMP exam emphasizes that project closure is not merely ending tasks, but a formal process involving administrative and contractual closure, and updating organizational process assets. Look for questions about final deliverable acceptance and lessons learned documentation.
Process: Project Execution and Control
Project Closure, Governance, and Continuous Improvement
Failing to get formal sign-off for project completion, leading to scope creep or disputes post-closure.
Process: Project Execution and Control
Project Closure, Governance, and Continuous Improvement
Neglecting to document lessons learned, resulting in the same mistakes being repeated on future projects.
Process: Project Execution and Control
Project Closure, Governance, and Continuous Improvement
Not properly closing out contracts or financial accounts, which can lead to legal or financial liabilities.
Process: Project Execution and Control
Impediment
Anything blocking a team's progress.
Process: Project Execution and Control
Backlog
An ordered list of all project work.
Process: Project Execution and Control
Backlog Refinement
Adding detail, estimates, and order to backlog items.
Process: Project Execution and Control
Project Artifacts
Tangible outputs created during a project.
Process: Project Execution and Control
Version Control
Managing changes to documents over time.
Process: Project Execution and Control
Escalation
Raising an issue to a higher authority.
Process: Project Execution and Control
User Story
A short, simple description of a feature.
Process: Project Execution and Control
Managing Impediments, Backlog, and Project Artifacts
To remember the key aspects of managing impediments, backlog, and artifacts, think: 'I B A C K': **I**mpediments resolved, **B**acklog refined, **A**rtifacts controlled, **C**ommunication clear, **K**nowledge shared.
Process: Project Execution and Control
Managing Impediments, Backlog, and Project Artifacts
The exam often tests your understanding of the PM's role in agile environments, particularly in removing impediments and facilitating backlog refinement. Look for keywords like 'servant leadership' and 'empowering the team.' Remember that the Product Owner owns the Product Backlog, but the PM facilitates its management.
Process: Project Execution and Control
Managing Impediments, Backlog, and Project Artifacts
Ignoring minor impediments, allowing them to snowball into major blockers.
Process: Project Execution and Control
Managing Impediments, Backlog, and Project Artifacts
Failing to regularly refine the backlog, leading to unclear or outdated work items.
Process: Project Execution and Control
Managing Impediments, Backlog, and Project Artifacts
Not establishing a clear system for artifact management, resulting in lost or outdated documents.
Process: Project Execution and Control
Compliance
Adherence to laws, regulations, standards, and policies.
Business Environment: Strategic Project Alignment
GDPR
General Data Protection Regulation; EU data privacy law.
Business Environment: Strategic Project Alignment
Benefits Realization
Ensuring project outputs deliver intended value and outcomes.
Business Environment: Strategic Project Alignment
Project Output
Tangible result or deliverable produced by the project.
Business Environment: Strategic Project Alignment
Project Outcome
Change in behavior or state resulting from using an output.
Business Environment: Strategic Project Alignment
Project Benefit
Measurable improvement or value derived from an outcome.
Business Environment: Strategic Project Alignment
Regulatory Compliance
Adherence to rules set by specific regulatory bodies.
Business Environment: Strategic Project Alignment
Legal Compliance
Adherence to national and international laws.
Business Environment: Strategic Project Alignment
Compliance and Benefits Realization
Compliance is like a 'COMPASS' – it guides your project in the right direction, avoiding legal storms and ensuring you reach your destination (benefits).
Business Environment: Strategic Project Alignment
Compliance and Benefits Realization
The PMP exam frequently tests your understanding of the difference between outputs, outcomes, and benefits. Memorize that outputs are what the project creates, outcomes are the results of using those outputs, and benefits are the value derived from those outcomes, aligning with strategic goals.
Business Environment: Strategic Project Alignment
Compliance and Benefits Realization
Treating compliance as an afterthought rather than integrating it from project inception.
Business Environment: Strategic Project Alignment
Compliance and Benefits Realization
Confusing project outputs (what's delivered) with project benefits (the value derived).
Business Environment: Strategic Project Alignment
Compliance and Benefits Realization
Failing to assign a 'benefits owner' to track and ensure benefits are actually realized post-project.
Business Environment: Strategic Project Alignment
External Business Environment
Factors outside a project/organization influencing its success.
Business Environment: Strategic Project Alignment
Environmental Scanning
Systematic monitoring of external factors for potential impact.
Business Environment: Strategic Project Alignment
PESTLE Analysis
Framework for analyzing Political, Economic, Social, Technological, Legal, Environmental factors.
Business Environment: Strategic Project Alignment
Impact Analysis
Assessing the potential effects of a change on project objectives.
Business Environment: Strategic Project Alignment
Adaptive Planning
Flexible planning approach allowing for frequent adjustments.
Business Environment: Strategic Project Alignment
Feedback Loops
Mechanisms for continuous information exchange and adjustment.
Business Environment: Strategic Project Alignment
Strategic Alignment
Ensuring project goals support organizational objectives.
Business Environment: Strategic Project Alignment
Addressing External Business Environment Changes
To remember key external factors, think of PESTLE: Political, Economic, Social, Technological, Legal, Environmental. It's a 'PEST' if you don't 'LE'arn it!
Business Environment: Strategic Project Alignment
Addressing External Business Environment Changes
The PMP exam often tests your ability to identify external factors and propose appropriate responses. Keywords like 'regulatory changes,' 'market shifts,' 'technological advancements,' and 'economic downturns' should trigger thoughts about environmental scanning and adaptive planning.
Business Environment: Strategic Project Alignment
Addressing External Business Environment Changes
Ignoring external signals: Failing to continuously monitor the environment and assuming project conditions will remain static.
Business Environment: Strategic Project Alignment
Addressing External Business Environment Changes
Delaying response: Waiting too long to address identified changes, leading to more costly and difficult adjustments.
Business Environment: Strategic Project Alignment
Addressing External Business Environment Changes
Lack of stakeholder communication: Failing to inform and involve stakeholders in understanding and adapting to external changes.
Business Environment: Strategic Project Alignment
Organizational Change Management
Processes to help people adopt new ways of working.
Business Environment: Strategic Project Alignment
Change Agent
Individual who champions and facilitates change.
Business Environment: Strategic Project Alignment
Resistance to Change
Opposition or reluctance to adopt new processes.
Business Environment: Strategic Project Alignment
Sponsorship
Active support from leadership for a change initiative.
Business Environment: Strategic Project Alignment
Transition Plan
Details how to move from current to future state.
Business Environment: Strategic Project Alignment
Supporting Organizational Change Initiatives
To remember the PM's role in Change: C.A.R.E. - Communicate, Advocate, Resolve resistance, Empathize.
Business Environment: Strategic Project Alignment
Supporting Organizational Change Initiatives
The PMP exam frequently presents scenarios where a project delivers a technical solution, but the organization struggles to adopt it. Look for keywords like 'user adoption,' 'resistance,' 'training,' 'communication,' and 'sponsorship' as indicators that organizational change management principles are being tested. The exam expects you to understand that project managers play a key role in facilitating this adoption, not just delivering the technical output.
Business Environment: Strategic Project Alignment
Supporting Organizational Change Initiatives
Assuming technical delivery alone guarantees successful change adoption.
Business Environment: Strategic Project Alignment
Supporting Organizational Change Initiatives
Underestimating the time and resources needed for effective change management activities.
Business Environment: Strategic Project Alignment
Supporting Organizational Change Initiatives
Failing to engage key stakeholders and executive sponsors early in the change process.
Business Environment: Strategic Project Alignment
Project Value
Benefits a project delivers relative to its costs.
Business Environment: Strategic Project Alignment
Business Case
Document justifying a project, including value.
Business Environment: Strategic Project Alignment
Net Present Value (NPV)
Financial metric: project's profitability over time.
Business Environment: Strategic Project Alignment
Return on Investment (ROI)
Financial metric: ratio of profit to investment.
Business Environment: Strategic Project Alignment
Payback Period
Time to recover project investment costs.
Business Environment: Strategic Project Alignment
Portfolio Management
Centralized management of projects/programs.
Business Environment: Strategic Project Alignment
Evaluating Project Value and Strategic Alignment
Think 'VALUE' when evaluating projects: Vision (strategic fit), Assets (resource utilization), Logic (business case), Understanding (stakeholder support), and Earnings (financial returns).
Business Environment: Strategic Project Alignment
Evaluating Project Value and Strategic Alignment
The PMP exam often presents scenarios where you must choose the best project to support a strategic objective. Look for keywords like 'organizational goals,' 'strategic objectives,' 'business value,' and 'prioritization.' Remember that projects are tools for strategy execution.
Business Environment: Strategic Project Alignment
Evaluating Project Value and Strategic Alignment
Focusing solely on financial metrics without considering qualitative benefits or strategic fit.
Business Environment: Strategic Project Alignment
Evaluating Project Value and Strategic Alignment
Starting projects without a clear, documented link to organizational strategy.
Business Environment: Strategic Project Alignment
Evaluating Project Value and Strategic Alignment
Failing to re-evaluate project alignment as organizational strategies or external conditions change.
Business Environment: Strategic Project Alignment