Project Management Principles

Principles for a profession serve as foundational guidelines for strategy, decision making, and problem solving. Professional standards and methodologies are often based on principles. In some professions, principles serve as laws or rules, and are therefore prescriptive in nature. The principles of project management are not prescriptive in nature. They are intended to guide the behavior of  people involved in projects. They are broadly based so there are many ways individuals and organizations can maintain alignment with the principles.

Principles can, but do not necessarily, reflect morals. A code of ethics is related to morals. A code of ethics for a profession can be adopted by an individual or profession to establish expectations for moral conduct. The PMI Code of Ethics and Professional Conduct is based on  four values that were identified as most important to the project management community :

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Responsibility, 

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Respect, 

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Fairness, and 

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Honesty.

The 12 principles of project management are aligned with the values identified in the PMI Code of Ethics and Professional Conduct. They do not follow the same format, and they are not duplicative, rather the principles and the Code of Ethics are complementary.

The principles of project management were identified and developed by engaging a global community of project practitioners. The practitioners represent different industries, cultural backgrounds, and organizations in different roles and with experience in various types of projects. Multiple rounds of feedback resulted in 12 principles that provide guidance for effective project management.

Principles of project management can also have areas of overlap with general management principles. For example, both projects and business in general focus on delivering value. The methods may be somewhat different in projects as opposed to operations, but the underlying principle associated with focusing on value can apply to both. Figure 3-1 demonstrates this overlap.

The principle labels are listed here without any specific weighting or order. The principle statements are presented and described in Sections 3.1 through 3.12. Each section begins with a figure that provides the principle label across the top with the principle and key points under the label. Following the figure, each principle is elaborated in the text. The principle labels are : 

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Be a diligent, respectful, and caring steward (see Section 3.1). 

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Create a collaborative project team environment (see Section 3.2). 

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Effectively engage with stakeholders (see Section 3.3). 

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Focus on value (see Section 3.4). 

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Recognize, evaluate, and respond to system interactions (see Section 3.5). 

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Demonstrate leadership behaviors (see Section 3.6). 

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Tailor based on context (see Section 3.7). 

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Build quality into processes and deliverables (see Section 3.8). 

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Navigate complexity (see Section 3.9). 

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Optimize risk responses (see Section 3.10). 

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Embrace adaptability and resiliency (see Section 3.11). 

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Enable change to achieve the envisioned future state (see Section 3.12).

Stewardship has slightly different meanings and applications in different contexts. One aspect of stewardship involves being entrusted with the care of something. Another aspect focuses on the responsible planning, use, and management of resources. Yet another aspect means upholding values and ethics.

Stewardship encompasses responsibilities both within and external to the organization. Within the organization, stewardship includes :

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Operating in alignment with the organization, its objectives, strategy, vision, mission,  and sustainment of its long term value; 

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Commitment to and respectful engagement of project team members, including their compensation, access to opportunity, and fair treatment ; 

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Diligent oversight of organizational finances, materials, and other resources used within  a project; and 

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Understanding the appropriate use of authority, accountability, and responsibility, particularly in leadership positions. Stewardship outside the organization includes responsibilities in areas such as : 

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Environmental sustainability and the organization’s use of materials and natural resources ; 

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Organization’s relationship with external stakeholders such as its partners and channels ; 

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Impact of the organization or project on the market, social community, and regions  in which it operates ; and 

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Advancing the state of practice in professional industries.

Stewardship reflects understanding and acceptance of trust as well as actions and decisions that engender and sustain that trust. Stewards also adhere to both implicit and explicit duties. These can include the following :

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Integrity. 

Stewards behave honestly and ethically in all engagements and communications. Stewards hold themselves to the highest standards and reflect the values, principles, and behaviors expected of those in their organization. Stewards serve as role models, building trust by living and demonstrating personal and organizational values in their engagements, work activities, and decisions. In the project management context, this duty often requires stewards to challenge team members, peers, and other stakeholders to consider their words and actions; and to be empathetic, self reflective, and open to feedback. 

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Care. 

Stewards are fiduciaries of the organizational matters in their charge, and they diligently oversee them. Higher performing projects feature professionals who diligently oversee those matters, beyond the confines of strictly defined responsibilities. Stewards pay close attention and exercise the same level of care over those matters as they would for their personal matters. Care relates to the internal business affairs of the organization. Care for the environment, sustainable use of natural resources, and concern for the conditions of people across the planet should be reflected in the organizational policies and principles. 

Projects bring about changes that may have unanticipated or unwanted consequences. Project practitioners should identify, analyze, and manage the potential downsides of project outcomes so that stakeholders are aware and informed. 

Care includes creating a transparent working environment, open communication channels, and opportunities for stakeholders to raise concerns without penalty or fear of retribution.

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Trustworthiness. 

Stewards represent themselves, their roles, their project team, and their authority accurately, both inside and outside of the organization. This behavior allows people to understand the degree to which an individual can commit resources, make decisions, or approve something. Trustworthiness also entails individuals proactively identifying conflicts between their personal interests and those of their organization or clients. Such conflicts can undermine trust and confidence, result in unethical or illegal behaviors, create confusion, or contribute to suboptimal outcomes. Stewards protect projects from such breaches of trust.

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Compliance. 

Stewards comply with laws, rules, regulations, and requirements that are properly authorized within or outside of their organization. However, high performing projects seek ways to integrate compliance more fully into the project culture, creating more alignment with diverse and potentially conflicting guidelines. Stewards strive for compliance with guidelines intended to protect them, their organization, their stakeholders, and the public at large. In instances where stewards face conflicting guidelines or questions regarding whether or not actions or plans align with established guidelines, stewards seek appropriate counsel and direction.

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THE PROJECT ENVIRONMENT

2.4 

THE PROJECT ENVIRONMENT 

Projects exist and operate within internal and external environments that have varying degrees of influence on value delivery. Internal and external environments can influence planning and other project activities. These influences can yield a favorable, unfavorable, or neutral impact on project characteristics, stakeholders, or project teams.

2.4.1 

INTERNAL ENVIRONMENT 

Factors internal to the organization can arise from the organization itself, a portfolio, a program, another project, or a combination of these. They include artifacts, practices, or internal knowledge. Knowledge includes lessons learned as well as completed artifacts from previous projects. Examples include but are not limited to :

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Process assets. 

Process assets may include tools, methodologies, approaches, templates, frameworks, patterns, or PMO resources. 

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Governance documentation. 

This documentation includes policies and processes. 

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Data assets. 

Data assets may include databases, document libraries, metrics, data, and artifacts from previous projects. 

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Knowledge assets. 

Knowledge assets may include tacit knowledge among project team members, subject matter experts, and other employees. 

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Security and safety. 

Security and safety measures may include procedures and practices for facility access, data protection, levels of confidentiality, and proprietary secrets. 

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Organizational culture, structure, and governance. 

These aspects of an organization include the vision, mission, values, beliefs, cultural norms, leadership style, hierarchy and authority relationships, organizational style, ethics, and code of conduct. 

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Geographic distribution of facilities and resources. 

These resources include work locations, virtual project teams, and shared systems. 

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Infrastructure. 

Infrastructure consists of existing facilities, equipment, organizational and telecommunications channels, information technology hardware, availability, and capacity. 

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Information technology software. 

Examples include scheduling software, configuration management systems, web interfaces to online automated systems, collaboration tools, and work authorization systems. 

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Resource availability. 

Examples include contracting and purchasing constraints, approved providers and subcontractors, and collaboration agreements. Availability related to both people and materials includes contracting and purchasing constraints, approved providers and subcontractors, and time lines. 

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Employee capability. 

Examples include general and specialized expertise, skills, competencies, techniques, and knowledge.

2.4.2 

EXTERNAL ENVIRONMENT 

Factors external to the organization can enhance, constrain, or have a neutral influence on project outcomes. Examples include but are not limited to:

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Marketplace conditions. 

Marketplace conditions include competitors, market share, brand recognition, technology trends, and trademarks. 

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Social and cultural influences and issues. 

These factors include political climate, regional customs and traditions, public holidays and events, codes of conduct, ethics,  and perceptions. 

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Regulatory environment. 

The regulatory environment may include national and regional laws and regulations related to security, data protection, business conduct, employment, licensing, and procurement. 

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Commercial databases. 

Databases include standardized cost estimating data and industry risk study information. 

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Academic research. 

This research can include industry studies, publications, and benchmarking results. 

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Industry standards. 

These standards are related to products, production, environment, quality, and workmanship. 

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Financial considerations. 

These considerations include currency exchange rates,  interest rates, inflation, taxes, and tariffs. 

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Physical environment. 

The physical environment pertains to working conditions  and weather.

2.5 

PRODUCT MANAGEMENT CONSIDERATIONS 

The disciplines of portfolio, program, project, and product management are becoming more interlinked. While portfolio, program, and product management are beyond the scope of this standard, understanding each discipline and the relationships between them provides a useful context for projects whose deliverables are products.

A product is an artifact that is produced, is quantifiable, and can be either an end item itself or a component item. Product management involves the integration of people, data, processes, and business systems to create, maintain, and develop a product or service throughout its life cycle. The product life cycle is a series of phases that represents the evolution of a product, from introduction through growth, maturity, and to retirement.

Product management may initiate programs or projects at any point in the product life cycle to create or enhance specific components, functions, or capabilities (see Figure 2-4). The initial product may begin as a deliverable of a program or project. Throughout its life cycle, a new program or project may add or improve specific components, attributes, or capabilities that create additional value for customers and the sponsoring organization. In some instances, a program can encompass the full life cycle of a product or service to manage the benefits and create value for the organization more directly.

Product management can exist in different forms, including but not limited to : 

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Program management within a product life cycle. 

This approach incorporates related projects, subsidiary programs, and program activities. For very large or long running products, one or more product life cycle phases may be sufficiently complex to merit a set of programs and projects working together. 

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Project management within a product life cycle. 

This approach oversees development and maturing of product capabilities as an ongoing business activity. Portfolio governance charters individual projects as needed to perform enhancements and improvements or to produce other unique outcomes. 

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Product management within a program. 

This approach applies the full product life cycle within the purview and boundaries of a given program. A series of subsidiary programs or projects will be chartered to achieve specific benefits for a product. Those benefits can be enhanced by applying product management competencies like competitive analysis, customer acquisition, and customer advocacy. 

While product management is a separate discipline with its own body of knowledge,  it represents a key integration point within the program management and project management disciplines. Programs and projects with deliverables that include products use a tailored and integrated approach that incorporates all of the relevant bodies of knowledge and their related practices, methods, and artifacts.

A System for Value Delivery

The information in this section provides a context for value delivery, governance, project functions, the project environment, and product management.

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Section 2.1 Creating Value. This section describes how projects operate within a system to produce value for organizations and their stakeholders. 

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Section 2.2 Organizational Governance Systems. This section describes how governance supports a system for value delivery. 

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Section 2.3 Functions Associated with Projects. This section identifies the functions that support projects. 

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Section 2.4 The Project Environment. This section identifies internal and external  factors that influence projects and the delivery of value. 

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Section 2.5 Product Management Considerations. This section identifies the ways portfolios, programs, projects, and products relate.

2.1 

CREATING VALUE 

Projects exist within a larger system, such as a governmental agency, organization, or contractual arrangement. For the sake of brevity, this standard uses the term organization when referring to government agencies, enterprises, contractual arrangements, joint ventures, and other arrangements. Organizations create value for stakeholders. Examples of ways that projects produce value include, but are not limited to :

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Creating a new product, service, or result that meets the needs of customers or end users ; 

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Creating positive social or environmental contributions ; 

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Improving efficiency, productivity, effectiveness, or responsiveness ; 

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Enabling the changes needed to facilitate organizational transition to its desired future state; and 

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Sustaining benefits enabled by previous programs, projects, or business operatin.

2.1.1 

VALUE DELIVERY COMPONENTS 

There are various components, such as portfolios, programs, projects, products, and operations, that can be used individually and collectively to create value. Working together, these components comprise a system for delivering value that is aligned with the organization’s strategy. Figure 2-1 shows an example of a system to deliver value that has two portfolios comprised of programs and projects. It also shows a stand alone program with projects and stand alone projects not associated with portfolios or programs. Any of the projects or programs could include products. Operations can directly support and influence portfolios, programs, and projects, as well as other business functions, such as payroll, supply chain management, and so forth. Portfolios, programs, and projects influence each other as well as operations.

As shown in Figure 2-2, a system for value delivery is part of an organization’s internal environment that is subject to policies, procedures, methodologies, frameworks, governance structures, and so forth. That internal environment exists within the larger external environment, which includes the economy, the competitive environment, legislative constraints, etc. Section 2.4 provides more detail on internal and external environments.

The components in a value delivery system create deliverables used to produce outcomes. An outcome is the end result or consequence of a process or a project. Focusing on outcomes, choices, and decisions emphasizes the long range performance of the project. The outcomes create benefits, which are gains realized by the organization. Benefits, in turn, create value, which is something of worth, importance, or usefulness.

2.1.2 

INFORMATION FLOW 

A value delivery system works most effectively when information and feedback are shared consistently among all components, keeping the system aligned with strategy and attuned to  the environment. 

Figure 2-3 shows a model of the flow of information where black arrows represent information from senior leadership to portfolios, portfolios to programs and projects, and then to operations. Senior leadership shares strategic information with portfolios. Portfolios share the desired outcomes, benefits, and value with programs and projects. Deliverables from programs and projects are passed on to operations along with information on support and maintenance for the deliverables. 

The light gray arrows in Figure 2-3 represent the reverse flow of information. Information from operations to programs and projects suggests adjustments, fixes, and updates to deliverables. Programs and projects provide performance information and progress on achieving the desired outcomes, benefits, and value to portfolios. Portfolios provide evaluations on portfolio performance with senior leadership. Additionally, operations provide information on how well the organization’s strategy is advancing.

2.2 

ORGANIZATIONAL GOVERNANCE SYSTEMS 

The governance system works alongside the value delivery system to enable smooth workflows, manage issues, and support decision making. 

Governance systems provide a framework with functions and processes that guide activities. A governance framework can include elements of oversight, control, value assessment, integration among components, and decision making capabilities. Governance systems provide an integrated structure for evaluating changes, issues, and risks associated with the environment and any component in the value delivery system. This includes portfolio objectives, program benefits, and deliverables produced by projects. 

Projects can operate within a program or portfolio or as a stand alone activity. In some organizations, a project management office might support programs and projects within a portfolio. Project governance includes defining the authority to approve changes and make other business decisions related to the project. Project governance is aligned with program and/or organizational governance.

2.3 FUNCTIONS ASSOCIATED WITH PROJECTS 

People drive project delivery. They do so by fulfilling functions necessary for the project to run effectively and efficiently. Functions related to the project can be fulfilled by one person, by a group of people, or combined into defined roles. 

Coordinating a collective work effort is extremely important to the success of any project. There are different types of coordination suitable for different contexts. Some projects benefit from decentralized coordination in which project team members self organize and self manage. Other projects benefit from centralized coordination with the leadership and guidance of a designated project manager or similar role. Some projects with centralized coordination can also benefit from including self organized project teams for portions of the work. Regardless of how coordination takes place, supportive leadership models and meaningful, continuous engagements between project teams and other stakeholders underpin successful outcomes.

Regardless of how projects are coordinated, the collective effort of the project team delivers the outcomes, benefits, and value. The project team may be supported by additional functions depending on the deliverables, industry, organization, and other variables. Sections 2.3.1 through 2.3.8 provide examples of functions that are often found on projects, though these are not a comprehensive list. In addition to these functions, other functions may be necessary to enable project deliverables that produce the desired outcomes. The needs of the project, organization, and environment influence which functions are used on a project and how those functions are carried out.

2.3.1 

PROVIDE OVERSIGHT AND COORDINATION 

People in this function help the project team achieve the project objectives, typically by orchestrating the work of the project. The specifics of how this function is carried out within the project team can vary among organizations, but can include leading the planning, monitoring, and controlling activities. In some organizations, this function may involve some evaluation and analysis activities as part of pre project activities. This function includes monitoring and working to improve the health, safety, and overall well being of project team members. Coordination includes consulting with executive and business unit leaders on ideas for advancing objectives, improving project performance, or meeting customer needs. It can also include assisting in business analysis, tendering and contract negotiations, and business case development. Oversight can be involved in follow on activities related to benefits realization and sustainment after the project deliverables are finalized but before formal closure of the project. This function can support portfolios and programs within which the project is initiated. Ultimately, the function is tailored to fit the organization.

2.3.2 

PRESENT OBJECTIVES AND FEEDBACK 

People in this function contribute perspectives, insights, and clear direction from customers and end users. The customer and end user are not always synonymous. For the purpose of this standard, the customer is defined as the individual or group who has requested or is funding the project. The end user is the individual or group who will experience the direct use of the project deliverable.

Projects need clear direction from customers and end users regarding project requirements, outcomes, and expectations. In adaptive and hybrid project environments, the need for ongoing feedback is greater because the project teams are exploring and developing product elements within specific increments. In some project environments, the customer or end user engages with the project team for periodic review and feedback. In some projects, a representative of the customer or client participates on the project team. The customer and end user input and feedback needs are determined by the nature of the project and the guidance or direction required.

2.3.3 

FACILITATE AND SUPPORT 

The function of facilitation and support may be closely related to providing oversight and coordination, depending on the nature of the project. The work involves encouraging project team member participation, collaboration, and a shared sense of responsibility for the work output. Facilitation helps the project team create consensus around solutions, resolve conflicts, and make decisions. Facilitation is also required to coordinate meetings and contribute in an unbiased way  to the advancement of project objectives. Supporting people through change and helping address obstacles that can prevent success is also required. This can include evaluating performance and providing individuals and project teams with feedback to help them learn, adapt, and improve.

2.3.4 

PERFORM WORK AND CONTRIBUTE INSIGHTS 

This group of people provides the knowledge, skills, and experience necessary to produce the products and realize the outcomes of the project. Work can be full time or part time for the duration of the project or for a limited period, and the work can be colocated or virtual, depending on the environmental factors. Some work can be highly specialized, while other work can be done by project team members who have broad skill sets. 

Gaining insights from cross functional project team members representing different parts of the organization can provide a mix of internal perspectives, establish alliances with key business units, and encourage project team members to act as change agents within their functional areas. This work can extend into support functions (during or after the project) as the project deliverables are implemented or transitioned into operations.

2.3.5 

APPLY EXPERTISE 

People in this function provide the knowledge, vision, and expertise in a specific subject for  a project. They offer advice and support throughout the organization, and contribute to the project team’s learning process and work accuracy. These people can be external to the organization  or can be internal project team members. They can be required for the whole project or during  a specific time frame.

2.3.6 

PROVIDE BUSINESS DIRECTION AND INSIGHT 

People in this function guide and clarify the direction of the project or product outcome. This function involves prioritizing the requirements or backlog items based on business value, dependencies, and technical or operational risk. People in this function provide feedback to project teams and set direction for the next increment or element to be developed or delivered. The function involves interacting with other stakeholders, customers, and their project teams to define the product direction. The goal is to maximize the value of the project deliverable.

In adaptive and hybrid environments, direction and insight can be provided using a specific cadence. In predictive environments, there can be designated checkpoints for presentation of and feedback on project progress. In some instances, business direction can interact with funding and resourcing functions.

2.3.7 

PROVIDE RESOURCES AND DIRECTION 

People in this function promote the project and communicate the organization’s vision, goals, and expectations to the project team and broader stakeholder community. They advocate for the project and the project team by helping to secure the decisions, resources, and authority that allow project activities to progress.

People in this function serve as liaisons between senior management and the project team, play a supporting role in keeping projects aligned to business objectives, remove obstacles, and address issues outside the bounds of the project team’s decision authority. People in this function provide an escalation path for problems, issues, or risks that project teams cannot resolve or manage on their own, such as a shortage of funding or other resources, or deadlines that cannot be met.

This function can facilitate innovation by identifying opportunities that arise within the project and communicating these to senior management. People in this function may monitor project outcomes after project closure to ensure the intended business benefits are realized.

2.3.8 

MAINTAIN GOVERNANCE 

People who fill a governance function approve and support recommendations made by the project team and monitor project progress in achieving the desired outcomes. They maintain linkages between project teams and strategic or business objectives that can change over the course of the project.