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1 Comparison of ISO 21500 Draft Version and PMBOK® Guide 4th Edition1 Stanisław

1 Comparison of ISO 21500 Draft Version and PMBOK® Guide 4th Edition1 Stanisław Gasik, Ph. D.; sgasik@sybena.pl; www.sybena.pl Table of Contents HISTORY OF ISO 21500 ..................................................................................................................................... 2 BASIC CONCEPTS .............................................................................................................................................. 2 PROJECT DEFINITION ................................................................................................................................................ 2 TYPES OF PROJECTS .................................................................................................................................................. 3 PROJECT MANAGEMENT PROCESSES ............................................................................................................... 4 PROJECT MANAGEMENT PROCESS GROUPS .................................................................................................................. 4 SUBJECT GROUPS .................................................................................................................................................... 4 STRUCTURE OF PROCESS DESCRIPTION ........................................................................................................................ 5 INTEGRATION ......................................................................................................................................................... 5 STAKEHOLDER ......................................................................................................................................................... 6 SCOPE ................................................................................................................................................................... 6 RESOURCE ............................................................................................................................................................. 7 TIME ..................................................................................................................................................................... 8 COST .................................................................................................................................................................... 8 RISK ...................................................................................................................................................................... 8 QUALITY ................................................................................................................................................................ 9 PROCUREMENT ....................................................................................................................................................... 9 COMMUNICATION ................................................................................................................................................... 9 SUMMARY ........................................................................................................................................................... 10 Tables Table 1. ISO 21500 and PMBoK® Guide process groups comparison .................................................................. 4 Table 2. ISO 21500 Subjects and PMBoK® Guide Knowledge Areas ..................................................................... 5 Table 3. ISO 21500 and PMBoK® Guide Integration Processes ............................................................................. 5 Table 4. ISO 21500 and PMBoK® Guide Stakeholder Processes .......................................................................... 6 Table 5. ISO 21500 and PMBoK® Guide Scope Processes ................................................................................... 6 Table 6. ISO 21500 and PMBoK® Guide Resource Processes .............................................................................. 7 Table 7. ISO 21500 and PMBoK® Guide Time Processes ...................................................................................... 8 Table 8. ISO 21500 and PMBoK® Guide Cost Processes ...................................................................................... 8 Table 9. ISO 21500 and PMBoK® Guide Risk Processes ....................................................................................... 8 Table 10. ISO 21500 and PMBoK® Guide Quality Processes ................................................................................ 9 Table 11. ISO 21500 and PMBoK® Guide Procurement Processes ....................................................................... 9 Table 12. ISO 21500 and PMBoK® Guide Communication Processes ................................................................... 9 1 Version improved after comment of Jesus Guardiola. 2 History of ISO 21500 ISO, the world leading standardization organization, must have its own project management standard. Currently its document dealing with this subject is marked with ISO 10006 symbol and is titled Quality management systems – Guidelines for quality management in projects. ISO 10006 has been originally published in 1997 and after so has been updated in 2003. But it has not gained popularity equal to ISO’s norm of quality of the series 9000 nor as the world leading project management standards like PMBoK® Guide or Prince 2®. Even some ISO member countries had more popular PM standards – BSI 6079 is a good example. And the world-wide PM standard defining industry was working intensively. Japan, Australia or Germany developed their own PM standards. International Project Management Association developed IPMA Competence Baseline. Several initiatives aiming at creating global PM standards have been established. Global Project Management Forum (created as an initiative of David Pells), Global Working Groups (initiative of Lynn Crawford), Operational Level Coordination Initiative (OLCI), or Global Alliance for Project Performance Standards make evidences that there is a need for one global project management standard. The ISO 21500 initiative creates another hope that we will have one such standard. This initiative has been initiated in 2006 by British Standard Institute, a member organization of ISO. ISO agreed and created work item ISO/PC 236 to prepare ISO 21500 standard on project management. There were 31 countries involved into this work and 5 observing it. The chairman of the group, Dr. Jim Gordon, was from United Kingdom and the secretariat was hosted by USA ANSI (which adopted PMI PMBoK® Guide as national standard for project management in 1999). The draft version of ISO 21500 has been developed and published by ISO in 2011. It may be purchased from ISO web page (http://www.iso.org/iso/catalogue_detail?csnumber=50003). For those who do not want to spend 66 Swiss franks a full text is accessible from BSI at http://drafts.bsigroup.com (this text is based on the later version). The committee is waiting for comments till June 30, 2011. The final version of the standard is expected for mid 2012. Basic concepts There are two issues worthy of deeper analysis: the very definition of a project and the types of projects in which ISO 21500 is interested. Project definition The definition of project may be found in the 3.2 section. This is a unique set of processes consisting of coordinated and controlled activities with start and finish dates, undertaken to achieve an objective. This definition makes a progress with comparison to PMBoK® Guide, which was probably the last definition saying that project are performed with the goal of producing deliverables. Products are absent from ISO 21500 definition. But the definition retains the word “unique” in relationship to the set of project processes, which in fact causes the same problems as in PMBoK® Guide definition2. 2 http://www.pmworldtoday.net/letters/2009/Apr/On_the_Definition_of_Project.html 3 When a project is initiated the set of project processes is not defined. According to ISO 21500 the set of project processes are defined as a result of performing process 4.3.3 Develop project plans, long after project initiation. So you do not know whether this set of processes is unique (or have any other characteristics) when you initiate a project. So if you strictly follow such definition, you may initiate something what is not a project according to this definition. And, especially in the domain of routine, commercial projects (e.g. building a standard house for client) it is difficult to assign an adjective of unique to the set of project processes. Please also note that according to analyzed definition, it does not require the processes to be unique. Only its set must be unique. Thus the very document in a sense is internally inconsistent: yet this document just describes the set of 40 standard processes for project execution. From one point of view ISO 21500 requires the unique set of processes while at the same time it defines its standard set. Anyway understanding the concept of project requires understanding of the unique word and may lead to many problems in interpreting this concepts. Types of projects In real life there are generally two types of projects: investment projects, which change the way of organizations’ works and commercial projects which directly generate income for performing organization. The Overview section defines project environment in an organization. Though it is not clearly stated it seems that ISO 21500 is interests in investment projects only: project in ISO 21500 provide deliverables to operations and only these operations generate benefits (Figure 1). This is not the case for commercial projects where benefits are generated directly by producing required deliverables. Benefits realization is at customer side only (section 3.4.3). But for organizations performing commercial projects just collecting benefits is the main reason for performing projects. Projects are undertaken as a results of opportunities. Opportunities “may address, for example, a new market demand, a current organizational need, or a new legal requirement”. An opportunity of client demand, which is the most popular opportunity for commercial projects, is absent from this list. All this statements are evidences that ISO 21500 does not describe commercial projects. In section 3.7 Projects and operations the standard says that “Projects (…) create original deliverables”. This is inconsistent with contemporary understanding of projects. For instance Bower and Walker3 or Brady and Davies4 define and analyze projects which produce repeatable deliverables. The first of these papers deals with projects which serially implements the same products, the second deals with progress in performing project of the 3Bower, D. C., Walker, D., H., T., 2007, Planning Knowledge for Phased Rollout Projects. Project Management Journal. 38 (3): 45-60. 4 Brady, T., Davies, A., 2004, Building Project Capabilities: From Exploratory to Exploitative Learning. Organization Studies. 25 (9): 1601-1621 4 same type (i.e. producing similar deliverables). You can find much more on this topic in literature. The very area of organizational learning is based on the assumptions that organizations repeat works (projects among them) and that they learn while repeating these works. Project Management Processes When analyzing ISO 21500 its difficult to abstract from PMBoK® Guide which gave main ideas for its creation. The next sections contain comparison of PMBoK® Guide and ISO 21500. Project Management Process Groups ISO 21500 divides project processes into five process groups. You may find the comparison below. Table 1. ISO 21500 and PMBoK® Guide process groups comparison ISO 21500 PMBoK® Guide Initiating Initiating Planning Planning Implementing Executing Controlling Monitoring and Controlling Closing Closing The differences between these two standards are really minimal here. Changing the names is the only difference. Subject Groups PMBoK® Guide’s knowledge areas has been renamed to subjects in ISO 21500. Their comparison may be found at table Table 2. 5 Table 2. ISO 21500 Subjects and PMBoK® Guide Knowledge Areas ISO 21500 Subjects PMBoK® Guide Knowledge Areas Integration Integration Stakeholder - Scope Scope Resource Human Resources Time Time Cost Cost Risk Risk Quality Quality Procurement Procurement Communication Communication It is clearly seen from both comparisons that ISO 21500 is strictly based on PMBoK® Guide. ISO 21500 adds the subject of Stakeholders to the set of PMBoK®’s knowledge areas. The Human Resources knowledge area has been renamed to Resource subject in order to cover both types: human and other project resources. Structure of Process Description The structure of description of processes in ISO 21500 differs from that in PMBoK® Guide. The main difference is that ISO 21500 does not provide description of tools and techniques. The description of each process in ISO 21500 consist of general description and a table containing primary inputs and uploads/Management/ iso-21500-and-pmbok-guide.pdf