APM BODY OF KNOWLEDGE APM BODY OF KNOWLEDGE Sixth edition Association for Project Management Association for Project Management Ibis House, Regent Park Summerleys Road, Princes Risborough Buckinghamshire HP27 9LE © Association for Project Management 2012 Sixth edition 2012 Fifth edition 2006 Fourth edition 2000 Third edition 1996 Second edition 1994 First edition 1992 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the express permission in writing of the Association for Project Management. Within the UK exceptions are allowed in respect of any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act, 1988, or in the case of reprographic reproduction in accordance with the terms of the licenses issued by the Copyright Licensing Agency. Enquiries concerning reproduction outside these terms and in other countries should be sent to the Rights Department, Association for Project Management at the address above. All registered trademarks are hereby acknowledged and the publisher makes no claim to these trademarks. The Association would like to thank the many contributors to this work for waiving their moral rights to any or part of the complete work and for their continued support of the charitable aims of the Association. Users are responsible for the correct application of the information in this publication. Concordance with the APM Body of Knowledge does not in itself confer any immunity from legal obligations. British Library Cataloguing in Publication Data is available. Paperback: ISBN:978-1-903494-40-0 Hardback: ISBN 978-1-903494-41-7 Ebook: ISBN 978-1-903494-42-4 Typeset in 11/14pt Foundry Sans Printed and bound by Imprint Digital Cover design by Fountainhead, Middlesex Contents Contents List of Figures ......................................................................ix Preface ...............................................................................xi Acknowledgements ..............................................................xiii Introduction ......................................................................xvii Project, programme and portfolio management ............................2 Section 1 Context ..................................................................7 1.1 Governance ...........................................................................8 1.1.1 Project management .........................................................12 1.1.2 Programme management ..................................................14 1.1.3 Portfolio management .......................................................16 1.1.4 Infrastructure ...................................................................18 1.1.5 Knowledge management ...................................................22 1.1.6 Life cycle .........................................................................26 1.1.7 Success factors and maturity ..............................................32 1.1.8 Sponsorship ....................................................................36 1.2 Setting ...............................................................................40 1.2.1 Environment ....................................................................42 1.2.2 Operations management ...................................................44 1.2.3 Strategic management ......................................................46 Section 2 People ..................................................................49 2.1 Interpersonal skills ................................................................50 2.1.1 Communication................................................................52 2.1.2 Conflict management ........................................................56 2.1.3 Delegation ......................................................................60 2.1.4 Influencing ......................................................................64 2.1.5 Leadership ......................................................................68 2.1.6 Negotiation .....................................................................72 2.1.7 Teamwork .......................................................................76 2.2 Professionalism ....................................................................80 2.2.1 Communities of practice ....................................................82 APM Body of Knowledge 6th edition v Contents 2.2.2 Competence ....................................................................84 2.2.3 Ethics frameworks ............................................................86 2.2.4 Learning and development ................................................88 Section 3 Delivery ................................................................91 3.1 Integrative management ........................................................92 3.1.1 Business case ...................................................................94 3.1.2 Control ...........................................................................96 3.1.3 Information management ................................................100 3.1.4 Organisation ..................................................................104 3.1.5 Planning ........................................................................110 3.1.6 Stakeholder management ................................................116 3.2 Scope management ............................................................120 3.2.1 Benefits management .....................................................124 3.2.2 Change control ..............................................................128 3.2.3 Configuration management .............................................132 3.2.4 Change management ......................................................136 3.2.5 Requirements management .............................................140 3.2.6 Solutions development ...................................................146 3.3 Schedule management ........................................................150 3.3.1 Resource scheduling .......................................................154 3.3.2 Time scheduling .............................................................158 3.4 Financial and cost management .............................................162 3.4.1 Budgeting and cost control ..............................................166 3.4.2 Funding ........................................................................170 3.4.3 Investment appraisal .......................................................174 3.5 Risk management ...............................................................178 3.5.1 Risk context ...................................................................182 3.5.2 Risk techniques ..............................................................184 3.6 Quality management ...........................................................188 3.6.1 P3 assurance ..................................................................192 3.6.2 Reviews ........................................................................196 3.7 Resource management ........................................................200 3.7.1 Contract ........................................................................202 3.7.2 Mobilisation ...................................................................206 3.7.3 Procurement ..................................................................210 3.7.4 Provider selection and management..................................214 vi APM Body of Knowledge 6th edition Contents Section 4 Interfaces ............................................................ 219 4.1 Accounting ........................................................................220 4.2 Health and safety ................................................................222 4.3 Human resource management ..............................................224 4.4 Law ..................................................................................226 4.5 Security ............................................................................228 4.6 Sustainability .....................................................................230 Glossary .......................................................................... 233 Acronyms and abbreviations ................................................ 247 Index .............................................................................. 251 APM Body of Knowledge 6th edition vii List of figures List of figures Figure 1: Scale of managing effort...............................................................3 Figure 1.1: Context .....................................................................................7 Figure 1.2: Governance structure ................................................................10 Figure 1.3: Programme tranches .................................................................15 Figure 1.4: Linear project life cycle ..............................................................27 Figure 1.5: Linear programme life cycle ........................................................28 Figure 1.6: Portfolio life cycle ......................................................................30 Figure 1.7: Operations management ............................................................44 Figure 3.1: Generic organisation structure ..................................................104 Figure 3.2: Project organisation structure ...................................................105 Figure 3.3: RACI chart .............................................................................106 Figure 3.4: Programme organisation structure .............................................107 Figure 3.5: Portfolio organisation structure .................................................108 Figure 3.6: Estimating funnel ....................................................................111 Figure 3.7: Benefits management process ..................................................124 Figure 3.8: Change management process ...................................................136 Figure 3.9: Value management process ......................................................141 Figure 3.10: Relationship between project and programme requirements management ..........................................................................143 Figure 3.11: Solutions development process.................................................146 Figure 3.12: Risk management process ........................................................178 Figure 3.13: Provider selection and management process ...............................214 APM Body of Knowledge 6th edition ix
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