Fundamental Principles and Concepts of Project Management
Domain 1 tests the vocabulary and conceptual model of ISO 21502: what a project is, how it differs from programmes and portfolios, how governance and the life cycle work, and who is accountable for what.
Core concepts
- A project is a temporary endeavour with a defined start and end, undertaken to achieve objectives and deliver a unique product, service or result.
- A programme coordinates related projects to obtain benefits that managing them separately would not deliver. A portfolio groups projects, programmes and operations to meet strategic objectives.
- Project management applies methods, tools, techniques and competencies to achieve project objectives; ISO 21502 treats it as an integrating discipline.
- Governance is the framework of authority and accountability: the sponsor and steering group set direction and approve baselines and major changes; the project manager is accountable for delivery.
- Life cycle: phases (concept, definition, delivery, closure) separated by decision gates that confirm continued viability.
Worked example
A bank replaces its payroll engine. That is a project. It sits in an HR transformation programme, which also contains a shared-services project; both sit in the corporate portfolio. The project manager plans acceptance and handover; the operations director owns the benefit of fewer payroll errors. Reasoning: the project delivers outputs and ends at handover, while benefits accrue in operations, so success criteria must include acceptance and measurable outcomes.
Traps that cost marks
- Calling a programme "a big project" or a portfolio a simple project list.
- Making the project manager accountable for benefits; the sponsor or business owner is.
- Confusing output with outcome, or assuming "temporary" means short.
- Equating closure with benefit realization.
Key points follow.