Basic Concepts in Project Management

Each discipline of knowledge, from physics to biology and from computer science to poetry, builds upon some basic concepts. The terms that refer to or define these concepts make up the language of the discipline. The very basic terms in project management are described briefly in the following list:

• Project. A project is a work effort made over a finite period of time with a start and a finish to create a unique product, service, or result. Because a project has a start and an end, it is also called a temporary effort or endeavor.

• Project phase. A project phase is a set of logically related activities that usually completes one or more major deliverables of the project. The phases are generally completed in sequence; however, an overlap is possible in some situations. Depending on its size and complexity, a project may have one or more phases.

• Organization. An organization is a group of individuals organized to work for some purpose or mission. Computer companies, energy companies (to whom you pay your electric bills), and cable companies are examples of organizations. An organization might offer products, such as books or donuts, or services, such as Internet access or online banking. A project is usually performed inside an organization.

• Project stakeholder. A project stakeholder is an individual or an organization that can be positively or negatively affected by the project execution. A project can have a wide spectrum of stakeholders, from the project sponsor, to an environmental organization, to an ordinary citizen.

• Process. A process is a set of related tasks performed to manage a certain aspect of a project, such as cost. Each process belongs to a knowledge area and corresponds to a process group.

• Knowledge area. A knowledge area in project management is defined by its knowledge requirements related to managing a specific aspect of a project, such as cost, by using a set of processes. PMI recognizes a total of nine knowledge areas, such as cost management and human resource management.

• Performing organization. The performing organization is the organization that is performing the project.

• Project management. Project management is the usage of knowledge, skills, and tools to manage a project from start to finish with the goal of meeting the project requirements. It involves using the appropriate processes.

• Program. A program is a set of related projects managed in a coordinated fashion to improve overall efficiency and effectiveness and to obtain benefits and control that would not be obtained by managing them individually. For example, a program could be delivering a product (or service) that consists of sub-products (or service components) delivered by the constituent projects. Also, a program might include related work that is not included in the scope of any of the constituent projects.

• Program management. Program management is the centralized, coordinated management of a specific program to achieve its strategic goals, objectives, and benefits.

• Program management office (PMO). The program management office is an entity in an organization that is responsible for providing centralized coordinated support to the program managers managing programs and unrelated projects.

• Project management office (PMO). The project management office refers to an entity in an organization that is responsible for providing centralized coordinated management and support for projects in the organization.

• Portfolio. A portfolio is a set of projects, programs, and related work that is managed in a coordinated fashion to obtain business objectives in the strategic plan of the organization.

• Portfolio management. Portfolio management is the centralized management of one or more portfolios that includes identifying, authorizing, prioritizing, managing, and controlling projects, programs, and other related work in order to attain specific business objectives in the strategic plan of the organization.