Archive for June, 2008

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Cost Variance and Project Management Terms

By
Derek Huether
– June 20, 2008Posted in: General, PMP

If you’re looking to take the PMP exam, there are several definitions you need to know.  You MUST know and understand the definitions listed in the table below.

The exam won’t come right out and ask you “What does Actual Cost mean?”  The questions are more like:  “What kind of Variance do you have on a deliverable if the Earned Value is $75,000 and the Actual Cost is $77,000?�
I won’t tell you the answer. I will, however, tell you how to figure it out.
Cost Variance (CV) = Earned Value (EV) – Actual Cost (AC).
A negative cost variance means you are over budget.
A positive cost variance means you are under budget.

Term Acronym Definition
AC Actual Cost What is the actual cost realized from the work completed.
BAC Budget at Completion How much was budgeted for the total project?
EAC Estimate at Completion What is currently the expected TOTAL cost of the project?
ETC Estimate to Complete From this point on, how much MORE is it expected to cost to finish the project?
EV Earned Value What is the estimated value of the work actually completed?
PV Planned Value What is the estimated value of the work planned to be completed?
VAC Variance at Completion How much over or under budget is the project expected to be at the end?

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Scope Management

By
admin
– June 14, 2008Posted in: General, PMP

Scope Management means:

  1. Not letting others randomly expand the scope of the project without a structured change control system
  2. Constantly verifying the completion of all authorized work
  3. Ensure all changes are within the project charter
  4. Defining and controlling what is and is not included in the project
  5. Not allowing extra work or gold plating

You can read more about it on Wikipedia.  (Yes, I contribute to this definition)

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Functional Management

By
admin
– June 6, 2008Posted in: General, PMP

Functional management is the most common type of organizational management. The organization is grouped by areas of specialty within different functional areas (e.g., finance, marketing, and engineering). Some refer to a functional area as a “silo.” Communications generally occurs within a single department. If information or project work is needed from another department, a request is transmitted up to the department head, who communicates the request to the other department head. Otherwise, communication stays within the department. Team members complete project work in addition to normal department work.

By the way, when you go to Wikipedia and read about Functional Management, know that I was the creator of the page.

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Seven Leadership Styles

By
Derek Huether
– June 1, 2008Posted in: Project Management

Leadership

Recently, I’ve been re-analyzing different leadership styles of those in power of my former and current organizations.  I originally covered this subject back in 2008 after reading a book on the subject.  Regardless as to how I apply myself to my subordinates or how superiors react to me, everyone can be aligned with one of seven leadership styles.  Sure, I’ll hear debate that there are 6, 4…  I believe this (alphabetically sorted) list covered the basics.

  1. Autocratic - To make a decision without input from others.
  2. Coaching – To provide instruction to others.
  3. Consensus – To problem solve by a group as a whole.
  4. Consultative – To invite others to provide ideas.
  5. Directing – To give authoritative instructions to.
  6. Facilitating – To coordinate or expedite.
  7. Supporting – To provide assistance during the process.

I’ve been in the position where those above me in the org chart were very autocratic.  We’ve all been there and I’m happy that situation is in my past.  Having a consensus is not always the correct answer either.  When you open the decision to be made by a group, in order to make everyone happy, you commonly just agitate everyone. Sure, leading by committee can work for some companies but I’ve never seen it work really well for an individual.  Make your own decisions.  I would recommend doing more directing at the beginning of a project.  Do more coaching, facilitating, and supporting later.

Managers are those who need to do things well.  Leaders are those who need to do the right thing.  For the most part, I agree with the list.  But, on the grand scale of things, I think other interpersonal skills are more important.  Both effective decision making skills and being influential come to mind.

So, what do you think?

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