Please find below a transcription of the audio portion of Satya Narayan Dash’s PMI PMBOK Guide 7th Edition Standard – What’s New? webinar being provided by MPUG for the convenience of our members. You may wish to use this transcript for the purposes of self-paced learning, searching for specific information, and/or performing a quick review of webinar content. There may be exclusions, such as those steps included in product demonstrations. You may watch the live recording of this webinar at your convenience.
Kyle: Hello everyone, and welcome to today’s MPUG webinar, What’s New With PMI PMBOK Guide’s 7th Edition Standard. This session is eligible for one PMI PDU in the strategic category, and MPUG activity code for claiming this session is on the screen now. Like all MPUG webinars, a recording of this session will be posted to mpug.com shortly after the live presentation wraps up. And all MPUG members can watch the recordings at any time and still be eligible to earn the PU credit. All the sessions you watch on demand can be submitted to your webinar history, and the live sessions you attend are automatically submitted. Within your history, you can print or download a transcript and your certificates of completion, including the one for today’s event. And you can access that by logging onto mpug.com, click the My Account button, and then click on the Webinar Reports link.
Kyle: If you have any questions during today’s presentation, please send those over to us at any time using the chat question box on the GoToWebinar control panel. We do plant to answer those questions for you at the end of the session today. All right, and we’ll go ahead and get started. We’re very happy to welcome back Satya Dash today. Satya is a management professional, speaker, coach, and author of six books, including, I Want To Be a PMP. His course, PMP Live Sessions, has made many successful PMPs. From his classes, over 1500 aspirants have successfully cracked the PMP examination, and there are 80 documented PMP success stories in detail. So with that said, I’d like to welcome you back, Satya, and at this time I’ll hand it over to you to introduce yourself a bit more and get us started with today’s presentation.
Satya: Thank you, Kyle. That’s a great introduction, and thank you for having me on this station. So here, we’ll be speaking about PMI PMBOK Guide, 7th Edition-Standard. Not the entire guide part, but a part of the guide that is the standard and what is new in the standard. Kyle has already given the introduction, so I’ll skip this slide. In the agenda, this is what we are going to speak about. So in the 7th edition standard, why go for a principle driven standard? So for the first time the PMBOK guide is shifting from a process based standard to a principle based standard.
Satya: Then what are the principles in this new standard? Which elements are changing with respect to the standard part of the guide? Which elements are expected to remain the same? Because currently the standard is in a draft format, it is not fully published. It is expected to be published some time later this year, so it might change. It might get updated. And of course, what will be the expected impact on the PMP exam? So when the standard is released, which will be released as part of the PMBOK Guide, 7th edition, the newly coming up PMP exam is of course going to be impacted, and what will be those impacts?
Satya: So first, A Principle Driven Standard. Now if you get into the PMBOK guide, maybe sixth edition, or maybe you have seen first edition to sixth edition, or any edition you take. So, you will be seeing a lot of terms and terminologies. Such as, framework, methods, approaches, processes, knowledge areas, process groups, inputs, tools, techniques, outputs. There is a plethora of terms and terminologies available. Now when I take sessions or interact with people, I always ask, what do we mean by principle?
Satya: How it is different from a practice? Or how a principle is different from a framework or a methodology or an approach? So, puristically speaking, principles are like natural laws. Now, what do I mean by natural law? So, when I say natural law, for example, when you throw anything upward, it will come down. The law of gravity. Things will fall down if you have thrown upwards. Or water. Water will flow down. Natural law. Water doesn’t flow up. Or say, the sun rising in the East. Natural law. Sun does not rise in the West. Even if people want to make a law or a regulation. So, sometimes people want to make, “No, no. We are going to change the principle.” There will be a law. Sun will rise in the West. Whatever law you propose or whatever kind of regulation you want to propose, you cannot change the natural law.
Satya: That is the principle. It doesn’t change. It is eternal. People change. Programs change. Practices can change. Processes can change but principles do not change. Now, coming to PMI specifically. That is Project Management Institute. In its standard, PMI is saying principles describe a fundamental truth, norm or value. So, it is pretty close to the natural or the puristic form of principle definition. PMI is also saying that principles are basically a generally set or general set of objective practices which are accepted in the context of project management and core functions associated with project management.
Satya: Now, you will be thinking, why PMI is shifting from a process based standard to a principle driven standard. Now, generally speaking, there is a saying. If you would have heard this saying which is pretty well known saying. Give a man a fish, you feed him for a day. Teach a man how to fish, you feed him for a lifetime. And that is what it is. So, when you are giving a man a fish, you are just feeding him. Or maybe, some of the practices, you let him know. But, when you teach him how to fish, you are feeding him for a lifetime. That is what is principle. So, the man is trying to catch a fish. The water might change. It might be turbulent. The environment might be different. The weather might be rough.
Satya: Or the person is actually in a tough terrain but still the person will be able to catch a fish. And that is what the advantage of principle. Now, coming to specifically with respect to PMI. They are shifting from process based standard to a principle based standard or a principle driven standard because first thing, processes make project management very prescriptive in nature. Now, project management is a vast topic. It has a lot of delivery approaches. But, when you take processes. For example, in the sixth edition. In the sixth edition standard of the PMBOK guide, you have 49 processes applicable in varieties of … They are saying it is applicable in varieties of approaches. But still, it is very prescriptive in nature.
Satya: When you move into principle, that way, you can apply the principle. Underlying practice can change. The underlying behavior can change. But, the principle will be same. Next is, there is a rapid changes happening in the technology area. The way you are doing delivery. There is another reason. Principle best standard is going to help you. Also, currently there are new delivery approaches which are already available and they are mainstream. You have Agile. You have Lean. You have Kanban. You have Scrum. You have Hybrid or you have your own defined standard or own defined approach in your organization.
Satya: So, if you go with a process based approach, these are the 49 processes. These are the inputs. These are the output. These are the tools and techniques. Though, you can tailor it. Still, it becomes a very prescriptive in nature. So, when you move from a process based standard to a principle driven standard, the delivery approach can change. The technology can change. The requirement, where the requirement you are going to address that can change. But, principle tend to remain same. And that way, your project management is effective. Your project delivery approach is much more better.
Satya: Next. What are the 12 principles? Now that we have a principle based standard which is currently in a draft format. PMI has already outlined that 12 principles. So, these are 12 project delivery principles, not project management principles. There is a subtle difference. So, project management and project delivery. The standard is speaking to both. The standard is speaking to project managers as well as project delivery. But, when the principles they are defining, they are saying it is not project management principles, rather project delivery principles.
Satya: So, first, the principle. Here, there is no specific order. There is no particular weightage given to a particular principle. These are list of 12 principle and of course, give your suggestions and I expect some update might happen. So, one is, be a diligent respectful and caring steward. So, I’m simplifying it here to just one or two words. Stewardship. Now, stewardship includes duty of integrity, care, loyalty and compliance. Many people confuse stewardship with leadership. Stewardship is different from leadership.
Satya: Also, I have seen people saying stewardship is equal to servant leadership. Again, stewardship is much more than servant leadership. Next is build a culture of accountability and respect. So, this is very specific to that team. Now, project is delivered by the team and the team will build the culture. Of course, the team will be impacted by the organizational culture. But, team will have its own culture. The focus area is accountability and respect. When I talk of accountability, accountability is something which you cannot share with anyone.
Satya: Accountability cannot be delegated. So, accountability is very, very individualistic in nature. But, the ownership is a collective ownership for that team. And respect is another part because respectful team produce better result, have lesser conflict, have better knowledge sharing. And the stress level also remains low if the team has a respectful culture. Next is engage with stakeholders to understand their needs and interest. In one word, stakeholders. Now, projects are successful with the right stakeholder engagement.
Satya: So, basically, if you go to the standard, you will find these are in long, long sentences. I have reduced it to maybe a short set of words. Then finally, one or two words. That way, it is easy to remember because when you go with principles, principles should be on your fingertips. You should immediately be able to recall which principle you are applying in this context. Next is value. This is important because organization take projects to deliver value. Projects do not directly deliver a value. However, projects enable the creation of the value.
Satya: Now value comes, the project will give you the deliverable. Deliverable, in turn will give you the capability. Capability in turn will give you the outcomes. Outcomes, in turn will become benefits. And benefits in turn will give you the value to the organization. Then, recognize and respond to system interactions. So, this is systemic thinking or holistic thinking in one or two words.
Satya: Now, a project can be part of a program or project can be part of a portfolio. Or a project can be independently existing in an organization ecosystem. So, if the project itself actually is a system. Now, what is a system. System is basically a set of interrelated and interdependent components which are operating together to give you a unified whole which is a set of outputs which is not otherwise possible if the components are operating on their own, independently on their own.
Satya: So, project is a system. Now, if a project is part of a program or part of a portfolio, it becomes a part of a system of systems. So, when you are operating in that kind of a situation, you need to have a holistic thinking or a systemic thinking, how the project is operating in a system of system and part of the value delivery chain of the organization. Next is motivate, influence, coach and learn. This, in one word is leadership. So, I just sometime before said, leadership is different. Stewardship is different. There can be a long discussion on it. I’ll focus on couple of characteristics of a leader versus steward. Now, a leader, primary job of a leader is to create a reason.
Satya: When you have a reason, of course, it will be associated with a mission. So reason excites people. A leader job is to create a reason where a stewardship is primarily focused with respect to sustainability. With respect to caring, with respect to building in a sustainable outcome, to have a sustainable outcome. So leaders are primarily focused on reason whereas stewards are more with respect to sustainability of the project outcome or the project team itself. Next is tailor the delivery approach based on context. One word, tailoring.
Satya: We already have tailoring in sixth edition. So, tailoring is slightly more elaborated in the seventh edition standard part. Why tailoring? Every project is unique. The definition itself is telling. A project is a temporary endeavor to create a unique product or service or result. So, every project, the location, two projects are never same. Timeline, two projects are never same. The output might be same but the project built by resources, the constraints are totally different.
Satya: So every project is unique. What is applicable for one project may not be applicable for another project. So, you can tailor the artifacts, the methodologies, the delivery approach, the project management approach with respect to the project. And that is another principle. Next is, build quality into processes and results. So quality, the definition is going as far as PMI is concerned. Quality is a set of inherent characteristics which a product or a service or a result is capable of fulfilling. Now, there are two parts. So, quality into processes as well as the results. That is, quality with respect to conformance of requirements and as well as fitness for use. That is, both aspects they are looking into.
Satya: Next is, address complexity. Now this is another important one. Now, if you look at, sometime before I said, a project is a system. Project is part of a system of system when it is part of a program or a portfolio. Now, when you have this kind of a value system or a value delivery system, there will be complexity. Now, complexity can come from many sources. For example, there can be human behavior. There can be system behavior. There can be ambiguities. And, there also, you can see complexities with respect to the way the requirement is changing or with respect to the number of stakeholders or with respect to the communication channels available.
Satya: The way they are interacting, that will increase the complexity of the project. So, you have to address the complexity of the project. Next is, address opportunities and threats. These are basically with respect to risk, opportunities, positive risk, threats, negative risk. Then, be adaptable and resilient. So, this is, in one or two words, adaptability and resilience. Adaptability is the ability to respond to changing situations or scenarios whereas resiliency is in turn divided into two parts. That is, absorbing the impact and recovering from that.
Satya: So, why it is important? Because things change. So, you are planning to have an output. Now the market condition changed or there is a competitor who released a product earlier than you, similar kind of product or the opportunity window went out or the technology platform changed. You have to be adaptable as well as resilient. Next is enable change to achieve the envisioned future state. Now project, take your team or your organization from a current state to a future state. If you have seen the sixth edition, they are telling the same thing and of course there will be transitionary states between a current state and the future state. So, here this is with respect to change management in one or two words. Now change management, project is enabling change.
Satya: Change management is not change control. When I say change control, if you have seen the current edition of PMBOK or any other earlier edition, the same definition is there. That is with respect to change request management finally. Now change request is a formal request or a formal proposal to modify a baseline or it can be a deliverable or it can be a document or it can be any other artifact. It can be even an organizational process as well. But that is change control. Here we are talking of change management. Change management is preparing your stakeholders to be ready for change, to be accepting towards the change, the human impact of the change, the environmental impact of the change.
Satya: That is what change management, the standard part is trying to tell. So, these are the 12 project delivery principles. Now, these principles may not be apply wholly but orally the principles are likely to remain the same. And it is not a prescriptive in nature like the process based standard was. Next, elements that are expected to change. So, as I said sometime before, we are moving from a process oriented approach to a principle oriented approach. So, there are 12 principles which we saw sometime before just now. And these will be in place of five process groups, the IPECC. Initiating, planning, executing, monitoring and controlling and closing. And last was associated processes. So, we have five process groups. Initiating, planning, executing, monitoring and controlling and closing. And in every process group, you have a set of processes.
Satya: Initiating, you have two processes. Planning, you have 24 and executing, 10, monitoring and controlling, 12 processes, closing one. Together, you have 49 processes. In the current standard, you will see what is a project? What is a program? What is a portfolio? Then, they will be explaining the stakeholders, the lifecycle of the project. Then, the process groups. Initiating, what are the process group? What are the inputs? What are the tools and techniques and what are the outputs for all the 49 processes. However, in the new standard, we have 12 principles which are elaborated and the value delivery system. That is the next part which will be elaborated. Now here, we are looking at a system view of the project value delivery. As I said, project is part of the value chain. So, organizational strategic objectives if you look at.
Satya: Every organization will have a vision and mission. So the vision, will have mission. Vision will impact mission. Mission will impact vision. Now vision and mission will be impacting the strategic objectives or the strategic goals of the organization. So, goals will be there for an organization, strategy of an organization and objectives of an organization. All these things will be defined in the strategic plan of the organization. Now, the strategic plan of the organization is divided into various set of initiatives. Like, we will take say, 20 strategic objectives. Set one, two, three strategic objective. We take and club them together. Seventh, 10th and 15th strategic objective, we club them together.
Satya: And we club them together with respect to a portfolio. Now, under portfolio, you’ll have programs and projects which are actually giving you the results. The project particularly, we are talking of project management. So project will give you the results which can be a deliverable. A deliverable is basically a verifiable service or a product or a result. Now, these deliverables will give you the capability and in turn will give you the outcome which in turn will give you the benefits and benefits in turn will translate to value. So, the project is part of the value delivery chain and the project as I said sometime before is a system of element which interact with each other and complexity arise because of interaction. The principle we saw address complexity.
Satya: Also I said, project is part of system of system. In case it is part of the program or portfolio and hence risks can exist in program and portfolio which will impact projects. If you look at the current edition of PMBOK, there is a risk response strategy called escalate. So, if the project manager is unable to handle. It is beyond his or her authority or it cannot be really addressed by the project level or at the project level, it has to be escalated to the appropriate level which can be a program or which can be a portfolio. So, the project is part of a value delivery chain and that view, they are also explaining in the standard. Next is focus on outcomes rather than just deliverables. So, when I say deliverables, what is a deliverable? Right now, in my hand, there is a phone.
Satya: This phone is by Nokia. This is created by a project because project will create a product. So, it’s a product. It’s a Nokia phone product. Now here, you have, this is a deliverable, output of a project. But, this is not the outcome. The outcome, when I say, outcome will be something like maybe connectivity, 24/7 connectivity. So, this is the outcome. And, what is the benefit because I said outcome will translate to benefits. Benefit is with this I will have zero response time. When somebody calls me, I can pick it up any point in time. Or benefit can be, let us say, there is a 50% reduction in cost. The cellphones that have arrived, they have literally wiped out the landlines. So, if you remember the landline days or if you have seen a landline, the cost is definitely higher compared to a cellphone. So, there is maybe 40 or 50% reduction in cost. That is another benefit.
Satya: And benefit in turn gives you the value. That is what another principle is saying. Focus on the value because organization cares about business value. So, the focus, if you look at, is more on outcomes rather than just deliverables. Next is change management and enablement. This is another element which is going to change. Now, change enablement is different from change control. As I explained sometime before, it is completely different from change control. Now, the standard part considers both project management as well as project delivery. I said sometime before, the principles that we spoke about, the 12 principles are project delivery principles. There is service maps subtle difference. So, let me slightly inform you. It’s again, a long topic of discussion. Now, delivery is actually complementing project management. So, delivery is a broader concept as compared to project management.
Satya: And it is complementing project management and the standard is speaking to both, project management as well as project delivery approaches. Another reason is the management has its own … management has a control connotation. So, when you talk about management, it is like we are measuring. We are monitoring. We are controlling. That’s the connotation. It has been there since project management has become formal, maybe since after World War II and 1950 onwards, project management is formalized. So, if you look at that has a control connotations. But today’s world, we have knowledge workers. 21st century is considered to be the century of knowledge. Knowledge workers are workers who have more knowledge than you, the project manager. So, when you, the project manager many times you’ll find there are people in your team who are much more knowledgeable than you how you do project management or control with respect to those people.
Satya: So that way, the shift is with respect to collaboration or stewardship, leadership. So that way that is another shift you will in the standard. So, you will see roles listed as project lead. Project lead has an overlapping with respect to project manager because organization can decide their own designations. So, they might have a project manager or a program manager, portfolio manager, delivery manager but PMI is saying this is a project lead and of a role or it can be a facilitator or it can be a coach. So, instead of telling project manager, the people in the project, they are saying project lead or it can be a facilitator or it can be a coach.
Satya: So, a coach concept is more with respect to the Agile domain because if you look at extreme programming, extreme programming doesn’t have a manager concept. They have a coach. Some team might have managers. Or if you look at Scrum, Scrum doesn’t have a project manager concept. They are calling it as a Scrum Master. Or Kanban. Kanban doesn’t have a manager concept. They are calling it as a flow master. So, that is also another aspect. And in this case, if you look at, as I said, the standard is looking both, for project management as well as the project delivery.
Satya: Next is the elements that are expected to remain same. So, in the draft that you will see, the elements that are expected to remain same compared to the current sixth edition standard. One is Enterprise Environmental Factor or EEF. Another is Organizational Process Assets or OPAs. So, enterprise environmental factor is your environmental factors related to the enterprise. Like a project doesn’t exist in an independent environment. It operates within an ecosystem of the organization or the ecosystem of the enterprise and there will be internal factors which will impact the project or external factors which will impact the project. External factors such as market condition, industry climate.
Satya: Similarly, the other part is Organizational Process Assets. The OPA. There is another PMI way of language. This is PMI lingo. They have not changed it. The Organizational Process Assets are the process related assets of the organization. Now, what are the process related assets of the organization. It can be the policies. It can be the procedures. It can be the templates or it can be the knowledge base, corporate knowledge base or the subject matter expert knowledge base. So, they are remaining pretty same. I would say exactly same compared to the sixth edition.
Satya: Next is, again, I’m putting expected because it is a draft. So, I believe they are not going to change because this is … There will be some changes but this part is remaining same. It is there in the standard, current seventh edition standard draft. Now, the definitions are also remaining same. So, that is good news for you if you are preparing for the PMP exam. Your familiarity with sixth edition is not going to go away. You have the basic fundamentals or the definitions. They are remaining same. For example project, a temporary endeavor to create a unique product or service. That is same.
Satya: Program, a set of interrelated projects. That’s a program or operations which are conducted together or taken together to give you benefits which is otherwise not possible if you manage them individual. The definition is same. Portfolio, a collection of programs or portfolio, projects or operation which are managed together to meet the organizational objectives, organization business objectives. That is remaining same. Similarly, project management, program management, portfolio management, product management. That is also remaining same. Other definitions, you’ll find quality. The quality definition is remaining same. Individual risks. So that is also remaining same. An uncertain event or condition which can impact the project objectives in a positive or negative way. Exactly same.
Satya: Then you have overall project risk. That is also definition remaining same. Stakeholders, the definition. Stakeholder, someone, a group or a community which can impact the project or the outcome of the project, can be impacted by the outcome of the project or perceives to be impacted by the outcome of the project. So that definition is remaining same. Requirements, the definition is also remaining same. There are also other areas which are remaining same. I am focusing on some of the top areas. I find it, it will be easier for you in case you preparing for the PMP exam. Or if you have familiarity with respect to the fifth edition or sixth edition, you will find these are pretty much same.
Satya: This is an interesting slide. Moving from PMBOK sixth edition to PMBOK seventh edition. So, this is directly taken from the PMI site. It is public, available to you. So, this is how the sixth edition looks. The top part is the guide part. The middle part is the standard part. The bottom part, you have is the appendices, glossary and index. So, if you have seen the sixth edition, you’ll have the guide part, introduction, environment, role of manager. Then the knowledge area, all the 10 knowledge area. Then, after that you have the standard part, initiating, closing which have the process groups and the subsidiary and other components which is the bottom.
Satya: In seventh edition, what has happened, they have moved the standard part to top. Instead of middle, now the standard part has gone to top here. So, in the standard part you will see introduction, the value delivery system of which the project is part of. Then, they have elaborated delivery principles, all the 12 principles, stewardship till change management. Now, the guide part has moved to the middle. So, this is the guide part and the guide part is elaborating on the performance domains. But again, it is not released. The PMBOK guide part is not released. Our discussion is with respect to this part, not the standard part. And the last one is appendices, glossary and index. In a way, I actually like it. The reason is, I see PMBOK guide as human being. If you look at a human being, your principles, the values that is in your head. That drives your momentum. That drives your work.
Satya: That drives your activities, so the head or the standard part is on top which is pretty appropriately there. Then, you have the torso part. The body of knowledge. The name itself is telling. The project management body of knowledge. That also, the body part which is perfectly placed in the middle, considering it as a human being and legs. That is the definitions, the terms and terminologies which are at the bottom part. And that is at the bottom. So, this is how the PMBOK guide seventh edition is expected to look. Our final part is with respect to impact on the PMP exam. So, let us do a recap what we learnt so far. We saw the why move from a process based standard to a principle based standard.
Satya: As I said, principles do not change. Principle remain as they are. They are eternal. In the context of project management, also that is pretty much applicable. The degree of application or the degree of applicability of the principle can be low or moderate or high but you will have those principles. So, first we saw the moving from principle moving towards a principle based standard. Then, we saw what are the principles, the 12 principles that we discussed. The 12 principles are stewardship, team, stakeholders, value, holistic or systematic thinking. Then you have leadership, then tailoring, then quality. Then we saw complexity. Then we saw opportunities and threats. And we saw adaptability and resiliency and the last one is change management. One thing I would like to tell you here, the principles are actually interrelated. All these principles are interrelated.
Satya: If you look at closely towards them, they are all interrelated. How? For example, they are saying, at risk, threats and opportunities. Now, when you have a risk which is coming at a project level but you are unable to address at a project level, you are escalating to a program or a portfolio. Then, it is related to the principle of holistic thinking or systemic thinking which is basically telling how project is a system and project is also part of system of systems. Or like say, focus on value. Right? I said the current standard is not only talking about deliverables, the current standard is also talking about outcome oriented approach. Now, what is outcome oriented approach? Let me give you an example so that you will get more clarity. Let us say there is a current knowledge area. We have a stakeholder management.
Satya: Now, stakeholder management has four processes. We have identified stakeholders, then planned stakeholder engagement, manage stakeholder engagement and monitor stakeholder engagement. Now, identify stakeholders, you have an output called stakeholder register. So, the output is the deliverables for that knowledge area. So, now the knowledge area doesn’t exist. They are saying these performance domains. So output is of course the stakeholder register. It is created and identify stakeholders. But, that is not the outcome. The outcome is or the outcome will be stakeholder satisfaction. So, that is what the standard is saying now. Also, I believe the guide will be written that way. So, instead of just having a deliverable focus which is stakeholder register, also have a focus towards stakeholder satisfaction.
Satya: Now, let us take another example. Let us say, risk management knowledge area. In the current sixth edition standard, we have risk management knowledge area. Now, we have documents created in risk management knowledge area. In one process, there are seven processes. One is plan risk management. Then, you have identify risk. Then you have perform qualitative risk analysis. Perform quantitative risk analysis. Then, planned risk responses. Then, implement risk responses and finally monitor risks. So, in the process of identify risk, you have a risk register as well as another document called risk report. Now, risk register is a deliverable. It’s an output. A risk report is an output. Now, what is the outcome? Or what should be the way the project manager or project leader should think?
Satya: The outcome should be proactive, continuous, iterative risk identification. That is what outcomes should be. So, similarly, you can look at other areas. For example, lesson learnt register. Or for example, you have a project management plan or for example, you have a deliverable coming in the process of direct and manage project work. So, the processes part are actually moving into the guide. The processes are not going out. The 49 processes that you saw, they are not totally wiped out. They are there but they are not part of the standard. The standard doesn’t have processes any more. Standard is talking about the values, the value delivery system and the 12 principles elaborated with examples. So, they are talking in the standard part.
Satya: And also, we saw the expected changes and the elements that are expected to remain same. So, this is a draft and that is what I’m saying, expected. I’m using this term particularly, expected. Now, the elements we saw expect to remain same. The definitions … As I said sometime before, the processes are going to be there in the guide when it gets released. And, we also saw with respect to other definitions such as quality, risk, stakeholders, those are also remaining there. The enterprise environmental factor, the organizational process assets. Those are also there. So, that is also a kind of a breather for you that you are familiar with it. So, not everything is going out because the idea is as far as PMI is concerned, they are saying, we want to build on it.
Satya: But, we want to remove the prescriptive approach of process. We want a standard principles. Now, what will be the impact of it in the PMP exam? So that in your mind, in case you are preparing for the PMP exam. So, first thing. It is currently in the draft stage. I would definitely suggest give your inputs to PMI. It’s a great gesture from Project Management Institute. They have made it public. Very few organizations do it and that is one reason I really approach other organizations.
Satya: So, you can give your inputs and it can evolve, make it better. So, for example, just for a sake of discussion. I think there is some principles which I do not agree with. Some principles, I think they are missing. Let us say there is a principle. I don’t see anything with respect to progress of a project. As a manager, or even as a leader, you need to see what is the progress of the project. I don’t see a single principle with respect to the progress of the project. But, that is there. If you look at Agile manifesto, progress what is there. Working software is the primary measure of progress.
Satya: If you look at one of the 12 principles in Agile manifesto. So I would expect, similarly, you can think about it, give your inputs and give your suggestions and make it better. Now, it is going to be, the standard part will be coming. Along with the guide parts, sometime later this year, maybe next year, the date is not finalized yet. So, when it comes, of course there will be an impact on the PMP exam because the PMBOK guide is the main reference guide. It is not the only guide or reference for your PMP exam but it is one of the key references for your PMP exam. Another thing is when it comes, you need to be aware. What are the 12 principles? You can definitely expect a number of situational questions on principles. That is going to happen.
Satya: When the seventh edition is available, principles, because the principle will determine how you are going to work on a project as a leader of the project or as a steward of the project. Another thing I would expect … Again, as I said sometime before, instead of a deliverable or just focusing on a deliverables, have a look with respect to the outcomes because outcomes finally give you value. An organization really care about value because at the end of the day, value can be financial, non-financial, tangible or intangible. But, organization survive on value generation. Without value generation, you do not have a job. So, that is you need to look at from a outcome perspective, not only from a deliverable perspective. That perspective you need to have in your mind. Another thing is to look at here.
Satya: The PMP exam is changing on first of July 2020 and there is a pilot exam which will be happening. So, from March 9th or 10th, till March 19th or 20th, a 10 day window has been given. So, basically they will be testing on the pilot and they will be changing from the first of July 2020. Now, first of July 2020, you have with respect to the PMBOK guide sixth edition will be applicable. Not the seventh edition. And of course, the Agile practice guide has come up. The Agile practice guide is also part of references now. In addition to Agile practice guide, you have also set of other books, around eight books. So, together you have 10 books and guides available on which you have to appear for the exam from first of July, 2020 onwards. So, that is with respect to sixth edition.
Satya: And I believe they will keep on getting the feedback from the people who are taking the exam and questions are definitely … I wrote an article in mpug.com. 50% of questions will be on Agile perspective. Agile includes, it’s an umbrella term. It includes a broad area. And when it comes, the seventh edition comes, all this inputs will be flowing into seventh edition. And you will be having those availability in the seventh edition. So, these are the impact, as I said, so on, with respect to, definitely be ready for the principles. It should be on your fingertips. You should know principles are all interplaying with each other. And principles are also interdependent on each other, if you look at them closely. They are all talking to each other.
Satya: Another thing I said is, outcome focused as well as deliverables you have. So understand the outcome and you also have to see in what context a principle is going to be applied in the performance domains. So, performance domains are not finalized as far as I understand. So, performance domains will be coming and I would expect PMI definitely to for more elaboration. With respect to the performance domain, how the principles will be applicable in this performance domain. For example, they are having a performance domain called stakeholders. What are the principles that you are thinking that should be applicable with respect to the stakeholders. Or there is a performance domain called life cycle or planning.
Satya: What are these things that will be applicable, principles that will be applicable in this performance domain? So, these are the things that I’m expecting. Another thing I find questions from people or I actually predict. That is, the ECO. The Exam Content Outline. Your PMP exam is not based on the PMBOK guide. It’s a reference but it’s not based on the PMBOK guide. The blueprint of the exam will be coming from the exam content outline or the ECO. The ECO has three areas to test. The three areas are process, people and business environment. Now, when it comes on the seventh edition, how the ECO is going to map with respect to the seventh edition.
Satya: I believe PMI will give some guidelines on that aspect but that are not clear because seventh edition is yet to come. So, there is a difference the way ECO is written and there is a way PMBOK guide seventh edition is written. But, your exam, when you take, the percentage of question, how many question will come from which area. That you have to take it from the ECO. How you take the ECO and map into the seventh edition, that will be dependent on from where you are getting your learning, from where you are getting your training. And that person will be the best person to help you out with respect to that area, comparing the ECO in the seventh edition.
Satya: So, this is what I have. I spoke about why move to a principle based standard, the reason for it. And next, what are the 12 principles with brief elaboration on them. Then, what are the elements that are expected to remain same? It’s still a draft. It might change. Elements that are expected to change and the expected impact on the PMP exam. So, with that, I’ll be open to take your questions. So, Kyle, it’s over to you now.
Kyle: Satya, thank you very much. We appreciate that. And we have received quite a few questions. So, I’ll just jump right into those with our remaining time that we have here. Some of these, you’ve covered but it may be easier to do a quick confirmation on the answers. So, I’ll go ahead and read these. Josh was curious when the seventh edition of PMBOK will be available for via [inaudible 00:45:52]. You mentioned later this year but it wasn’t a set date as of yet?
Satya: That’s correct. So, as far as the PMI site, so in the site, they are mentioning the PMBOK guide seventh edition will be available or will be released, scheduled to be released in quarter 4 of 2020 and I expect the print edition will come sometime in 2021. But, as far as PMI site, the formal declaration will, I’ll be pushing hard for. I would say, PMI is saying PMBOK guide seventh edition is scheduled to be released on quarter four of 2020.
Kyle: Okay. Great. [inaudible 00:46:31] was curious if, let’s see here. He was asking about the metrics that are used for value, cost, time and if there’s any metrics for stakeholder satisfaction or is it project dependent and varies with each project?
Satya: Okay, that’s a great question. So, currently if you look at, webinar is with respect to the standard. The webinar is not with respect to the PMBOK guide part. So, what about the metrics? Like for example, there are lot of metrics. If you look at the PMBOK guide sixth edition, there is metrics with respect to bun down, bun up in Agile context of velocity or like bugs you have, or the story points completed or the story points you are planning or like you have various risk related metrics where he has earned value related metrics. There are lot of metrics available in the sixth edition. I believe they are going to be there in the guide part. The standard part doesn’t talk about metrics and I don’t think they should be speaking about because the standard part is ANSI approved. American National Standard Institute approved.
Satya: So, when you have a standard, the standard typically they do not mention the metrics area. When the guide comes up, the metrics, what are the metrics available will be informed in the guide part. Currently, I believe a lot of metrics will be taken. It might be some additional metrics they might be putting in but we don’t have much clarity. The clarity will be there when the guide part is released. The metrics are not part of the standard.
Kyle: Okay. Great. Thanks, Satya. This one came in from Jane and she was curious. If someone was interested or is currently working towards getting their PMP, would you recommend that they move quickly and try to take the exam before the exam changes?
Satya: I would say that would be a wise choice and more important, if you are a lady have seen the sixth edition. In the sixth edition, on its own is a big one. You have 49 processes. You have nearly 1500 ITTO and questions are rarely direct in the PMP exam. So, if you have invested a lot of time and energy going through the sixth edition and reading through the sixth edition and preparing for it, so I would definitely suggest that complete it. Preferably by first of July, 2020 because after first of July, 2020, again you’ll have some additional eight books plus one more guide, Agile practice guide coming up. So, you have to have much more area to coverage. So, try to give it as quickly as you can in the PMBOK guide sixth edition. That will be a wise decision if you have given a lot of time and energy going through the sixth edition.
Kyle: All right. Thank you. Let’s see here. Oliver was curious if you could speak to how a project schedule would be different under PMBOK 7 versus previous edition?
Satya: Right. So, again, I am speaking about the standard. Let me come back to that slide. [crosstalk 00:49:52] more clear. So, this is the slide. So as I said, we spoke about the standard part, the head part of the guide. This is the part. Okay? So, here we have [inaudible 00:50:03] which earlier were here in the PMBOK guide. The standard part will not talk about how we are going to manage the schedule but they are talking about principle. Be adaptable and be resilient. Adaptability, changing or accommodating to the changing circumstances, resiliency, even if you fall flat, you have the ability to recover from that. So, your schedule should be definitely they are saying, flexibility in the schedule.
Satya: So that is the principle he’s explaining. Now, what kind of schedule approaches? For example, are you going to divide with respect to activities or the tasks, sequence the task, then you have to build a network diagram, then you have to estimate the resources, then create a network diagram and build the schedule, then get a schedule baseline and control the schedule baseline if you are going through a traditional approach. Or if you are going with an adaptive approach whether you’ll have a release planning. Then you have iteration planning and daily stand up meeting, have the release details, have the stories broken down to the task and the task which are monitored and checked. That thing will be elaborated in the guide part. This guide part. So, I expect that will be part of maybe this domain, planning domain.
Satya: Again, the performance domains are not finalized. The performance domain, if you look at. The performance domains currently available in the draft is team, stakeholders, lifecycle, planning, navigating uncertainty and ambiguity, delivery, performance project work. So, how the schedule will be at rest, irrespective of delivery approach, whether it is Lean, Hybrid, Agile, traditional, iterative. That will be explained in the guide part. It might be here. Some aspect will be in planning. It might be here. Some aspect in project work. But currently, in the standard part, they do not have any specific details with respect to the scheduling approaches or how you are going to manage the schedule. So, when the guide will be available. That is on quarter four of 2020, that details will be available. I think a lot of things will be retained. But definitely, I will expect PMI to tell how the principles are driving these things.
Satya: It will be available only when the guide part is available.
Kyle: Okay, thanks. So, we had that question about someone that’s close to taking the exam and if they should do it before the change. Josh sent over a question. He’s actually planning to take the exam later this year in September and he’s curious if he should postpone that further and wait till that seventh edition is released so he can focus on that or if the sixth edition would still prepare him enough since it’s further along in the year and he hasn’t really begun the studying process just yet?
Satya: See, I would definitely suggest, if you have started it, complete it. Again, so, it is not about starting. It is always about how many things you can complete, how many things you can accomplish. So, if you have started it, proceed and complete it. September, you have a pretty fair time, around, six, seven, or eight months you have and that’s a decent time to prepare for your PMP exam. So, you will have the sixth edition available. There is a lot of understanding currently with respect to the sixth edition. Only thing you have to be aware of is the additional aspects. So, additional aspects in a sense, I have written an article. So, I will tell you which one.
Satya: I don’t remember the exact name. So, 2020. Yeah. Yeah, so this is published at mpug.com. What should you know about the PMP exam 2020 changes? So, first thing. If you are giving in the September time frame, in this year, so the sixth edition will be able applicable. Seventh edition, definitely not happening. So, you can go through this article, how you should prepare, what are the changes. It is a pretty elaborated one and you can go through. You will get a lot of clarity on how it will be. And, after first of July, there will be also additional books and guides. So, together, you have to not only read the PMBOK guide, you also have to go through Agile practice guide which is released by PMI and set of eight books. Some questions can be expected to come from those books.
Satya: But still, your main reference will be the PMBOK guide. So, if you have started it, complete it by September and by the time, maybe by September or October, the seventh edition will come. Of course, PMI is not immediately going to tell you that, you go through seventh edition. They never do it. So, they will have a timeline, a grace period, maybe six months. Typically they give six months. So, maybe mid of 2021, the seventh edition will be enforced or maybe 2022 because after the print edition is available, then only they are going to say enforced.
Satya: So, we don’t have a clarity right now. So, if you’re not giving in September, you are not going to give it this year and you may not give in the next year. Because if they are enforcing in next year December, you have to wait another year. So, my suggestion will be definitely if you have started it, go with it, complete the PMP exam and earn the credential.
Kyle: Right. Thank you very much for the recommendation. And that takes us pretty close to the end point here. First thing I wanted to mention is I chatted a link over to that article that Satya was referencing there. So, that’s in the chat box if you want to take a look at that article which dives in quite a bit deeper on that topic. I’ve also received requests. For people that have more questions or are looking to connect with you specifically, would you have your contact information available to share?
Satya: Yeah. Absolutely. Thank you for asking. So, I have. This is the email ID. My email ID is this one, email@example.com. My site is managementyogi.com. You can send me a mail at this email ID and you’re definitely going to get a response within 24 hours unless I’m traveling. Otherwise you’re definitely going to get a response within 24 hours. Any clarification, any questions you have, definitely drop me a mail. I’ll be happy to answer your questions.
Kyle: Excellent. Thank you so much, Satya. I know it’s very late at night for you where you’re located. So, we all really appreciate you taking the time to share this information with us. It’s much appreciated.
Satya: Thank you, Kyle. And thank you everyone available in this meeting. I really appreciate your time and listening to me. Hope it was helpful for you and it helps you in your journey to be a PMP. If you are a project management practitioner or any kind of a delivery role, I believe or I hope at least that it helps you. Thank you again.
Kyle: Thank you so much, Satya. And, for those of you claiming the PDU credit for today’s session, I will post that on the screen now. If you miss any of the session and would like to go back and review anything that was shared with us today, a recording will be posted to mpug.com in just a few hours. You will receive an email with a link to view that on demand. Mpug members have full access to our PDU eligible library of on demand webinars on mpug.com
Kyle: I also wanted to mention that we have quite a few sessions on the calendar over the next couple of months. I chatted a link in the chat box there to get to the schedule where you can register for those sessions. The next two on the schedule here, Project managers are Change Managers and that’s going to be a 45 minute session with Walter Stinnett. That will be on February 19th. And then the following week, on the 26th, Dr. Lynette Reed will join us to cover Building Positive Relationships with Stakeholders. That was a highly requested topic from the Mpug community and we look forward to sharing that with you on the 26th for another 45 minute session. And quite a few more on the schedule. So hope you check those out and register.
Kyle: And that wraps up for today’s session. So, thanks again, Satya and thank you to everyone that joined us live or is watching this on demand. Hope you have a great rest of your day and we’ll see you back soon. Thanks.
Satya: Thank you.