ISO 21502:2020 is standard that provides guidance on concepts and practices for project management. It is titled “Project, Programme and Portfolio Management — Guidance on Project Management.” This International Standard aims to offer a comprehensive set of guidelines for managing projects effectively, covering various aspects from initiation to closure.SO 21502:2020 is a valuable resource for organizations and individuals involved in project management, offering a framework for best practices and principles. It can be used by project managers, team members, and stakeholders to enhance the overall effectiveness of project delivery. The standard provides an introduction to project management concepts, emphasizing the importance of project management in achieving organizational objectives. It outlines the context in which project management operates, considering factors such as organizational governance, culture, and structure. The standard discusses the project life cycle and its phases, including initiation, planning, execution, monitoring and controlling, and closure. It identifies and describes various project management processes, providing a structured approach to managing projects. The standard addresses the integration of project management processes, ensuring that they work together seamlessly to achieve project objectives.Guidance is provided on identifying, analyzing, and engaging with stakeholders throughout the project life cycle. ISO 21502 emphasizes the importance of governance in project management, including roles, responsibilities, and decision-making structures. It discusses the importance of documentation in project management, providing guidance on creating and maintaining project documents. The standard outlines factors contributing to project success, helping organizations focus on critical aspects for achieving positive project outcomes. Recognizing that not all projects are the same, the standard provides guidance on tailoring project management processes to suit the specific needs of each project.ISO 21502:2020 serves as a valuable reference for project management professionals, offering a structured and standardized approach to managing projects effectively, ultimately leading to successful project delivery. ISO 21502:2020 provides guidance on concepts and practices for project management that are crucial for a project’s successful delivery through several key features and principles:
- The standard takes a comprehensive approach to project management by addressing various phases of the project life cycle, from initiation to closure. It provides a structured framework that helps ensure all necessary aspects of project management are considered.
- ISO 21502 defines and describes project management processes in a clear and systematic manner. This includes processes related to initiation, planning, execution, monitoring and controlling, and closure. Having well-defined processes contributes to the organization and consistency of project management activities.
- The standard emphasizes the integration of project management processes. This integration ensures that different aspects of a project work together seamlessly to achieve project objectives. It promotes a holistic view of project management rather than treating processes in isolation.
- ISO 21502 recognizes the importance of stakeholders in project success. It provides guidance on identifying, analyzing, and engaging with stakeholders throughout the project life cycle. Effective communication and collaboration with stakeholders are crucial for understanding their expectations and ensuring project alignment with organizational goals.
- The standard highlights the significance of governance in project management. It defines roles, responsibilities, and decision-making structures within the project, contributing to effective project oversight. Clear governance helps in making timely and informed decisions, reducing risks, and ensuring accountability.
- Recognizing that one size does not fit all, ISO 21502 encourages the tailoring of project management processes to meet the specific needs of each project. This flexibility allows organizations to adapt their approach based on project size, complexity, and other contextual factors.
- ISO 21502 provides guidance on project documentation, stressing the importance of maintaining accurate and relevant records throughout the project life cycle. Well-documented information helps in tracking progress, facilitating communication, and ensuring knowledge transfer.
- The standard identifies factors that contribute to project success. By focusing on these success factors, organizations and project managers can align their efforts with key principles that are known to enhance the likelihood of a project’s successful delivery.
This standard is for the executive and senior management, to provide a better understanding of project management and to help them to give appropriate support and guidance to project managers and those individuals working on projects. The standard is designed to provide these leaders with a better understanding of project management. The intent is to equip them with the knowledge and insights necessary to offer appropriate support and guidance to project managers and individuals working on projects within their organization.ISO 21502:2020 plays a vital role in empowering executive and senior management by providing them with the knowledge and tools needed to support and guide project managers and project teams effectively. This understanding contributes to more successful project outcomes and helps organizations achieve their overall strategic objectives.ISO 21502 offers a comprehensive overview of project management concepts, processes, and best practices. This enables executive and senior management to gain a deeper understanding of the discipline. Armed with a better understanding of project management principles, executives can make more informed decisions related to project investments, resource allocation, and overall project strategy. The standard aids executives in providing effective support to project managers. By having a clearer grasp of project management concepts, senior leaders can engage in meaningful discussions, offer guidance, and address challenges faced by project managers. Executive and senior management can use the insights from ISO 21502 to ensure that project management practices align with the broader organizational goals and objectives. This alignment is crucial for overall business success. Having a common understanding of project management practices allows for more effective communication between executive leadership and project teams. It facilitates clearer expectations and smoother collaboration.The standard assists executives in incorporating project management considerations into strategic planning. This can include assessing the impact of projects on organizational objectives and ensuring that resources are allocated in alignment with strategic priorities.ISO 21502:2020 extends its applicability to a broader audience involved in the governance, direction, assurance, audit, and management of projects. This includes individuals in roles such as project sponsors, project boards, auditors, and project managers.
- Project Sponsors:
- Purpose: To provide project sponsors with a comprehensive understanding of project management concepts and practices.
- Benefits: Enables sponsors to make informed decisions, align projects with organizational goals, and provide effective support to project managers.
- Project Boards:
- Purpose: Offers guidance for individuals serving on project boards responsible for oversight and decision-making.
- Benefits: Equips project board members with the knowledge needed to fulfill their governance responsibilities, ensuring projects are well-managed and aligned with strategic objectives.
- Auditors:
- Purpose: Assists auditors in understanding project management processes, enabling them to evaluate adherence to standards and identify areas for improvement.
- Benefits: Enhances the ability of auditors to assess project management practices, providing insights into compliance and efficiency.
- Project Managers:
- Purpose: Provides project managers with a standardized framework and best practices for effective project management.
- Benefits: Facilitates a common understanding of project management principles, aiding project managers in planning, execution, and communication.
- Governance and Management Teams:
- Purpose: Guides those involved in the governance, direction, and management of projects.
- Benefits: Helps establish effective governance structures, define roles and responsibilities, and ensures that projects align with organizational objectives.
ISO 21502:2020 std is for project managers and project team members, to have a common basis upon which to understand, conduct, compare, evaluate and communicate the practices used on their project., ISO 21502:2020 is designed to cater to project managers and project team members, aiming to provide them with a common basis for understanding, conducting, comparing, evaluating, and communicating project management practices.By serving as a reference point and offering a common language for project management, ISO 21502:2020 contributes to the overall success of projects. It empowers project managers and team members to work cohesively, align their efforts with best practices, and achieve project objectives in a more systematic and standardized manner. ISO 21502 establishes a standardized framework for project managers and team members to understand key project management concepts and principles. It ensures that everyone involved in the project shares a common understanding of the processes, methodologies, and terminology, reducing misunderstandings and promoting effective collaboration.The standard offers guidance on how projects should be conducted, covering initiation, planning, execution, monitoring, controlling, and closure phases.Project managers and team members can follow a consistent and structured approach, leading to more efficient and effective project execution. ISO 21502 provides a benchmark against which project managers and team members can compare their current practices.This allows for the identification of areas for improvement and the adoption of best practices, leading to enhanced project performance. The standard facilitates the evaluation of project management practices against an internationally recognized set of guidelines. Project managers and team members can assess the effectiveness of their approaches, identify gaps, and make informed decisions to optimize project outcomes. ISO 21502 promotes effective communication by providing a standardized language and framework. Improved communication among project managers, team members, and other stakeholders enhances collaboration, reduces the risk of miscommunication, and fosters a shared vision for project success.
ISO 21502:2020 is valuable for developers of national or organizational project management standards, processes, and methods. ISO 21502:2020 serves as a valuable resource for those involved in developing national or organizational project management standards, processes, and methods. By providing a globally recognized foundation and emphasizing the importance of tailoring practices, the standard supports the creation of robust, context-specific frameworks for effective project management. ISO 21502 serves as a reference point for those responsible for developing project management standards at the national or organizational level.Developers can draw upon the content of ISO 21502 to establish comprehensive, internationally recognized project management standards tailored to their specific context. The standard offers guidance on various project management processes. Developers can use this guidance to shape and refine their organization’s project management processes, ensuring alignment with best practices and industry standards. ISO 21502 provides a basis for the development of project management methodologies.Developers can use the standard as a foundation for creating methodologies that suit the needs of their organization or country, taking into account local regulations and industry requirements. ISO 21502 encapsulates internationally recognized best practices in project management. Developers can integrate these best practices into the standards, processes, and methods they are creating, thereby enhancing the quality and effectiveness of project management within their organization or country. The standard allows developers to benchmark their national or organizational project management standards against an internationally recognized benchmark. This benchmarking helps ensure that the developed standards are in line with global best practices, promoting consistency and interoperability in project management practices. ISO 21502 emphasizes the importance of tailoring project management practices to meet specific needs. Developers can use this guidance to adapt the standard to the unique requirements of their organization or country, considering factors such as culture, regulations, and industry norms. ISO 21502:2020 gives guidelines for project management. It is applicable to any organization, including public, private and charitable, as well as to any type of project, regardless of purpose, delivery approaches, life cycle model used, complexity, size, cost or duration. Delivery approach can be any method or process suited to the type of outputs, such as predictive, incremental, iterative, adaptive or hybrid, including agile approaches. ISO 21502:2020 provides high-level descriptions of practices that are considered to work well and produce good results within the context of project management. This document does not provide guidance on the management of programmes or portfolios. Topics relating to general management are addressed only within the context of project management.
ISO 21502:2020 serves as a comprehensive guide that supports not only the core project management stakeholders but also those in supporting roles, academia, and various functional areas within an organization. Its broad applicability makes it a valuable resource for promoting consistency, collaboration, and alignment across diverse functions involved in the project, program, and portfolio management ecosystem.
- Individuals Involved in Supporting Governance, Direction, and Management of Portfolios and Programmes. ISO 21502 provides guidance to those supporting the governance, direction, and management of portfolios and programs. Individuals in these roles gain insights into project management practices, enabling them to contribute effectively to the strategic oversight and management of portfolios and programs within an organization.
- Support for Project Teams, Programme and Project Offices, or Similar Organizational Structures The standard offers guidance applicable to project teams, program and project offices, and similar structures within an organization. It provides a common basis for understanding and conducting project management practices, fostering consistency and collaboration within project teams and related organizational units.
- Support for Academic Study of Project, Programme, and Portfolio Management ISO 21502 serves as a reference for academic study in the field of project, program, and portfolio management.: It provides a structured framework and internationally recognized best practices for academic institutions, educators, and students engaged in the study and research of project management disciplines.
- Support for Functions Related to the Management of Projects, such as Finance, Accounting, Human Resource Management, Procurement, and Legal. The standard is relevant to functions beyond project management, including finance, accounting, human resource management, procurement, and legal. Individuals in these functions can leverage ISO 21502 to understand the project management context, ensuring alignment of their activities with project goals and contributing to the overall success of projects.
ISO 21502 gives guidelines for project management. It is applicable to any organization, including public, private and charitable, as well as to any type of project, regardless of purpose, delivery approaches, life cycle model used, complexity, size, cost or duration. Delivery approach can be any method or process suited to the type of outputs, such as predictive, incremental, iterative, adaptive or hybrid, including agile approaches.ISO 21502:2020 provides a comprehensive and adaptable framework that accommodates a wide range of delivery approaches, allowing organizations to choose and tailor their project management methodologies based on the unique requirements of their projects. This flexibility is crucial in addressing the diverse needs and contexts of different projects across various industries.The standard recognizes that the choice of a delivery approach can vary based on the nature of the project and its specific requirements. ISO 21502 acknowledges that there isn’t a one-size-fits-all solution for project management. It recognizes and accommodates a spectrum of delivery approaches, allowing organizations to choose the method or process that best suits the type of outputs they are aiming to achieve.The standard explicitly mentions several delivery approaches, such as predictive, incremental, iterative, adaptive, and hybrid methods.This inclusivity ensures that organizations can tailor their project management practices to match the specific characteristics and requirements of their projects.ISO 21502 explicitly mentions the inclusion of agile approaches within the acceptable range of delivery methods.Agile methodologies, known for their flexibility, adaptability, and iterative nature, are recognized as valid options for project management within the framework of the standard.The standard allows for the adoption of hybrid approaches, combining elements from different delivery methods.Organizations have the flexibility to design project management processes that integrate predictive, agile, or other methodologies to suit their unique project contexts.ISO 21502 encourages organizations to align their chosen delivery approaches with the type of outputs they intend to produce.This tailoring ensures that the project management practices employed are well-suited to the specific goals and characteristics of the projects being undertaken. It provides high-level descriptions of practices that are considered to work well and produce good results within the context of project management. It does not provide guidance on the management of programmes or portfolios. Topics relating to general management are addressed only within the context of project management.
Terms and definitions:
1. baseline
reference basis for comparison against which performance is monitored and controlled.
The concept of baselines is fundamental to effective project management. Establishing a baseline allows project managers and stakeholders to set expectations, measure progress, and implement control mechanisms to ensure that the project stays on track. It is a foundational element for performance monitoring and control within the project management framework outlined by ISO standards. It serves as a benchmark or standard against which deviations or changes can be measured.The baseline provides the established criteria, standards, or initial conditions that are considered the norm or expected state.It becomes the reference basis against which actual performance, progress, or results can be compared. By comparing actual performance or results against the baseline, organizations can monitor how well they are adhering to the established standards.Deviations from the baseline can trigger corrective actions, allowing for effective control and adjustment of project activities.In the context of ISO 21502:2020, the concept of baselines is relevant to project management.Project baselines may include the project schedule baseline, cost baseline, scope baseline, and other key reference points used to measure project performance. Baselines are not static; they can be adjusted based on changes in project requirements, scope, or other factors. As projects progress, the baseline may need to be re-evaluated and updated to reflect the evolving nature of the project.
2 benefit
created advantage, value or other positive effect
In the context of project management, understanding and realizing benefits is a crucial aspect of project success. Identifying and quantifying benefits help organizations make informed decisions, prioritize activities, and ensure that project efforts contribute positively to the overall goals and objectives. The definition provided aligns with the broader principles of value creation and positive impact emphasized in ISO standards. Benefits are characterized by their positive nature, signifying a favorable outcome or result. Benefits can manifest as advantages, which could be tangible or intangible, contributing positively to the intended objectives.Benefits can have an impact on various stakeholders, including the organization, project team, customers, and other relevant parties. Benefits are typically created in alignment with the defined objectives or goals, emphasizing a connection between actions and positive outcomes.
3 business case
documented justification to support decision making about the commitment to a project, programme or portfolio
In practical terms, a well-structured business case typically includes information about the strategic objectives, expected benefits, costs, risks, and other relevant factors. It is a key document that supports informed decision-making by providing stakeholders with the necessary information to evaluate the potential value and feasibility of the proposed initiative. A business case is not just an oral justification but is documented in a formal manner. This documentation ensures clarity, transparency, and a systematic approach in presenting the rationale for a project, program, or portfolio. The primary purpose of a business case is to provide support for decision-making. It assists in deciding whether to commit resources to a project, program, or portfolio, and it may be used at various stages of the project life cycle. The business case may be applied to individual projects, broader programs, or even entire portfolios of projects. It helps stakeholders assess the viability and alignment of the initiative with organizational goals before making a commitment.
4 change request
documentation that defines a proposed alteration to a project
In project management, change requests play a crucial role in managing modifications to the project scope, objectives, or other elements. They are formalized requests that help ensure proper evaluation, approval, and documentation of changes, allowing for effective control over project variations. A change request is a documented record, emphasizing the formal and structured nature of the proposed alteration. A change request is created when there is a proposed change or alteration to the project. The alteration can encompass various aspects of the project, such as scope, schedule, resources, or other project elements. The change request serves to define and articulate the proposed alteration clearly. It typically includes details about what is being changed, why the change is necessary, and what impact it may have on the project.
5 configuration management
application of procedures to control, correlate and maintain documentation, specifications and physical attributes
In essence, configuration management is a fundamental aspect of project management that helps maintain order, organization, and control over the evolving aspects of a project. It is particularly crucial in scenarios where changes are frequent or where there is a need for strict control over project components to ensure successful project outcomes. Configuration management involves the systematic application of procedures or processes. These procedures are designed to provide control over various elements within a project. Configuration management is about exercising control over project-related elements. It involves ensuring that different aspects of the project are systematically related or interconnected. Configuration management includes maintaining consistency and integrity across project documentation, specifications, and physical attributes. It refers to project-related documents and records. It encompasses the detailed requirements and specifications relevant to the project. It may include tangible elements, such as hardware, software, or other physical components associated with the project.The goal is to ensure consistency and alignment among various project components.It helps manage changes to project elements in a controlled and organized manner.Facilitates traceability and understanding of the project’s state at different points in time.
6 control
comparison of actual performance with planned performance, analysing variances and taking appropriate corrective and preventive action as needed.
In project management, control is a crucial element for ensuring that a project stays on track, meets its objectives, and responds effectively to changes or deviations from the initial plan. The systematic comparison, analysis, and action-taking processes outlined in the definition align with best practices for managing and controlling projects as per ISO standards. Control involves assessing the actual performance of a project against the planned performance. The planned performance serves as a benchmark or standard against which the actual performance is measured. Control includes the identification and analysis of variances or differences between actual and planned performance. Analyzing variances helps in understanding where the project may deviate from the initial plan and why such deviations occur. Control involves taking corrective action to address any identified variances or deviations. It also includes taking preventive action to avoid potential issues or variances in the future. The action taken is context-specific and depends on the nature and severity of the variances. Control requires adaptability in response to changing project conditions, ensuring that the project stays on course. Control establishes a feedback loop that facilitates continuous improvement. Lessons learned from analyzing and controlling performance contribute to enhanced project management in subsequent phases or projects.
7 corrective action
direction and activity for modifying the performance of work to bring performance in line with a plan
Corrective action is a fundamental component of project management, providing a structured approach to address and rectify deviations from the planned course of action. It ensures that the project stays on track and moves toward achieving its objectives despite challenges or changes in circumstances.Corrective action involves providing guidance on the necessary changes to be made.It includes the implementation of specific actions or activities to address identified issues or variances. Corrective action is aimed at making adjustments to the performance of work. The goal is to align the actual performance with the planned performance outlined in the project plan. Corrective action is focused on ensuring that the project’s actual performance aligns with the planned performance. It addresses any deviations or variances from the original project plan. Corrective action is undertaken to resolve identified issues or problems. It aims at improving the overall performance of the project work to meet the planned objectives. Corrective action is not only reactive but can also have a preventive aspect, addressing potential issues before they escalate.
8 critical path
sequence of activities that determine the earliest possible completion date for a project or phase
Understanding and managing the critical path is a key aspect of project scheduling and control. It allows project managers to focus on the most time-sensitive activities, prioritize resources, and take proactive measures to ensure that the project stays on schedule. The critical path method is widely used in project management to optimize project timelines and resource allocation. The critical path is formed by a sequence of project activities that are dependent on each other. Each activity on the critical path is connected to the next, forming a chain. The primary purpose of identifying the critical path is to determine the earliest possible completion date for the entire project or a specific phase. It represents the longest path through the project network, indicating the minimum time needed for project completion. Activities on the critical path have zero slack or float, meaning any delay in these activities directly affects the project’s overall timeline. Project managers often pay special attention to activities on the critical path as they have the most significant impact on project duration. The critical path can be identified for the entire project or for specific phases within a project. For a project with multiple phases, the critical path helps determine the earliest possible completion date for each phase.
9 deliverable
unique and verifiable element that is required to be produced by a project
Understanding deliverables is crucial in project management as they represent the tangible results or outcomes that stakeholders expect from the project. The term “verifiable” emphasizes the importance of establishing clear criteria for confirming that the deliverable has been successfully produced and meets the necessary standards. Successful project management involves defining, planning, executing, and validating the deliverables to ensure project success. A deliverable is a distinct and specific element within the project. It represents a tangible or intangible output that is unique to the project’s objectives. Deliverables must be verifiable, meaning their completion or quality can be objectively assessed. There should be a clear and objective way to confirm that the deliverable meets the specified requirements. A deliverable is something that is explicitly required to be produced by the project. It falls within the scope of the project and contributes to achieving project goals and objectives.
10 governance
principles, policies and framework by which an organization is directed and controlled
In essence, governance provides the overarching structure and principles that guide the effective and ethical management of an organization. It establishes the framework for decision-making, accountability, and control, contributing to the achievement of organizational goals and the well-being of stakeholders. Understanding and implementing sound governance practices is crucial for the long-term success and sustainability of an organization. Governance is based on a set of principles that guide the decision-making and management processes within an organization. These principles often represent the fundamental beliefs and values that shape how the organization conducts its affairs. Governance involves the establishment of policies, which are guidelines or rules that provide a structured framework for decision-making and behavior. Policies set norms and standards that help ensure compliance and consistency in organizational activities. The governance framework refers to the overall structure and design that outlines how authority, responsibility, and accountability are distributed and managed. It provides a systematic approach to directing and controlling organizational activities.Governance encompasses the processes and mechanisms for decision-making at various levels within the organization. It involves the establishment of control mechanisms to ensure that activities align with organizational objectives and comply with relevant regulations.
11 issue
event that arises during a project requiring resolution for the project to proceed
Issues in a project management context are events or challenges that, when left unattended, may impede progress, affect project outcomes, or introduce risks. Identifying, documenting, and addressing issues in a timely manner are key aspects of effective project management. Managing issues is part of the broader risk management and problem-solving processes within the project management framework outlined by ISO standards. An issue is an event, circumstance, or situation that arises during the course of a project. Issues can take various forms, including problems, challenges, uncertainties, or conflicts. Issues are specific to the project environment and can emerge at any stage of the project life cycle. The evolving nature of a project introduces changes and uncertainties, leading to the occurrence of issues. An issue is something that requires attention and resolution. Issues may hinder progress, impact project objectives, or introduce risks if not addressed. The resolution of the issue is essential for the project to continue successfully. Issues often have implications for project activities, timelines, and deliverables, making their resolution crucial for project success.
12 opportunity
risk occurrence that would have a favourable impact
In project management, recognizing and managing opportunities are integral to achieving project success. While risks pose potential threats, opportunities offer the chance to capitalize on positive events or conditions. Effectively identifying, assessing, and exploiting opportunities contribute to the overall success and value realization in a project. Like risks, opportunities are associated with uncertainties or events that may or may not occur during the course of a project.
Opportunities, like risks, involve potential events that can influence project outcomes. The distinguishing factor for an opportunity is that its occurrence would lead to a favorable or positive impact. Opportunities present the potential for gains, advantages, or positive changes to the project. In project management, opportunities are often seen as the positive counterparts to risks. Both risks and opportunities are managed within the broader context of risk management to maximize positive outcomes and minimize negative impacts. Like risks, opportunities are assessed based on their probability of occurrence and the potential impact on project objectives.
Strategies for addressing opportunities may involve exploiting them to maximize benefits or enhancing the likelihood of their occurrence.
13 outcome
change resulting from the use of the output from a project
Understanding outcomes is crucial in project management, as it emphasizes the tangible and measurable changes that result from the successful completion and utilization of project outputs. Outcomes are often aligned with the broader goals and objectives of the project, indicating the real-world effects that the project is intended to achieve. Managing and measuring outcomes contribute to assessing the success and value of a project in delivering its intended benefits. An outcome represents a discernible change or effect that occurs as a result of the completion and utilization of the project’s outputs. It implies a shift or alteration in a certain state or condition. Outcomes are linked to the intentional application or use of the project’s outputs. The outputs produced by the project contribute to or enable the realization of outcomes. Outcomes are specifically associated with the project context. They highlight the impact or influence that the project has on the environment, stakeholders, or the intended beneficiaries.
14 output
aggregated tangible or intangible deliverables that form the project result
Understanding outcomes is crucial in project management, as it emphasizes the tangible and measurable changes that result from the successful completion and utilization of project outputs. Outcomes are often aligned with the broader goals and objectives of the project, indicating the real-world effects that the project is intended to achieve. Managing and measuring outcomes contribute to assessing the success and value of a project in delivering its intended benefits. An outcome represents a discernible change or effect that occurs as a result of the completion and utilization of the project’s outputs. It implies a shift or alteration in a certain state or condition.Outcomes are linked to the intentional application or use of the project’s outputs. The outputs produced by the project contribute to or enable the realization of outcomes.Outcomes are specifically associated with the project context.They highlight the impact or influence that the project has on the environment, stakeholders, or the intended beneficiaries.
15 portfolio
collection of portfolio components grouped together to facilitate their management to meet strategic objectives
In project and portfolio management, the concept of a portfolio involves a holistic approach to managing a collection of initiatives to achieve organizational objectives. Portfolios provide a strategic perspective, allowing organizations to prioritize, monitor, and optimize their investments in various projects and programs. The definition emphasizes the intentional grouping of components and the coordinated management necessary to realize strategic objectives.A portfolio encompasses a diverse set of components, which can include projects, programs, or other initiatives.These components collectively contribute to the achievement of organizational goals.The components within a portfolio are organized and grouped based on their relevance, alignment, or strategic significance.Grouping allows for coordinated management and oversight of related initiatives.The purpose of grouping components is to facilitate efficient and effective management of the entire portfolio.Management activities are directed toward ensuring that the portfolio components collectively align with and contribute to strategic objectives.Portfolios are managed with a strategic focus, aiming to deliver outcomes and benefits that align with the overall strategic goals of the organization.The ultimate goal is to achieve value realization by managing and executing the portfolio in a way that supports the organization’s strategic direction.
16 portfolio component
project , programme , portfolio or other related work
A portfolio component is a distinct piece of work within a portfolio, and it can take different forms, including projects, programs, or other related efforts. The definition underscores the flexibility of the term, allowing organizations to define and manage their portfolio components in a way that best aligns with their strategic priorities and objectives.A portfolio component can encompass various types of work, including individual projects, programs, entire portfolios, or other related initiatives.The term is inclusive and can cover a broad range of efforts contributing to the overall objectives of the portfolio. The term “related work” emphasizes that a portfolio component is work that is connected or associated with the broader portfolio.Components are selected and grouped based on their relevance and alignment with the strategic objectives of the portfolio.Each portfolio component contributes to the overall strategic goals and objectives of the portfolio. The work within each component is intended to provide value and contribute to the success of the entire portfolio.
17 preventive action
action to eliminate the cause of a potential nonconformity or other potential undesirable situation
Note 1 to entry: Preventive action is taken to prevent occurrence whereas corrective action is taken to prevent recurrence.
In the context of project management or any other organizational processes, implementing preventive actions is a best practice to enhance the quality of work and reduce the likelihood of future problems. By addressing potential issues before they manifest, organizations can improve efficiency, reduce rework, and ensure a more predictable and successful outcome. The concept aligns with the broader principles of quality management and continuous improvement emphasized in ISO standards.Preventive action involves taking proactive measures to address potential issues before they occur. The emphasis is on preventing problems rather than reacting to them after they have occurred.Preventive action targets the root cause or source of a potential nonconformity or undesirable situation. The goal is to eliminate the conditions that could lead to problems in the first place. Preventive action is triggered by the anticipation of potential issues. It is closely related to risk management, where organizations identify and address potential risks before they can escalate.
Preventive actions are forward-looking, aiming to avoid problems before they happen, while corrective actions are backward-looking, focusing on resolving issues that have already occurred and preventing their recurrence. Both types of actions are integral parts of a comprehensive quality management system, contributing to the organization’s ability to consistently produce quality products or deliver quality services.
- Preventive Action:
- Objective: The primary objective of preventive action is to prevent the occurrence of potential issues, nonconformities, or undesirable situations.
- Proactive: Preventive actions are proactive measures taken before a problem arises.
- Risk Management: It involves identifying and addressing potential risks or areas of improvement to avoid future problems.
- Corrective Action:
- Objective: Corrective action is taken to address and eliminate the root cause of existing problems or nonconformities.
- Reactive: Corrective actions are reactive measures taken in response to an identified issue or nonconformity that has already occurred.
- Preventing Recurrence: The primary goal is to prevent the recurrence of the identified problem or nonconformity.
18 programme
group of programme components managed in a coordinated way to realize benefits
In project and program management, the concept of a program represents a higher-level organizational structure that oversees and coordinates multiple projects or initiatives to achieve strategic goals. The emphasis is on the collective management and realization of benefits across the program components. Understanding and managing programs play a crucial role in optimizing resource allocation, ensuring alignment with organizational strategies, and maximizing the overall value delivered by the projects within the program.A program consists of various components, which can include projects, sub-programs, or other related initiatives. The components within a program are grouped together based on their relevance to achieving common goals and objectives.The key aspect of a program is the coordinated management of its components.Coordinated management ensures that the individual components work together synergistically to achieve the overarching program objectives.Programs are established to achieve specific strategic objectives or deliver benefits to the organization.The ultimate goal is to realize benefits that contribute to the organization’s overall success.
19 programme component
project , programme or other related work
Understanding program components is essential in program management, as it allows for the organized and coordinated management of various initiatives within the program’s scope. These components collectively contribute to achieving the program’s goals and objectives. The flexibility of the term allows organizations to define and manage program components in a way that aligns with their strategic priorities and objectives.A program component can take various forms, including individual projects, larger programs, or other related work.This term encompasses a broad range of initiatives that contribute to the overall objectives of the program.The term “related work” emphasizes that a program component is work that is connected or associated with the broader program. Components are selected and grouped based on their relevance and alignment with the strategic objectives of the program.
20 project
temporary endeavour to achieve one or more defined objectives
Understanding projects as temporary endeavors with specific objectives helps differentiate them from ongoing business operations. Projects are unique initiatives with defined scopes, timelines, and objectives, and they are managed using project management methodologies to ensure successful delivery within the specified constraints. Projects have a defined and finite timeframe, indicating that they are not ongoing but have a specific duration. Projects have a clear starting point and a defined endpoint when the objectives are expected to be achieved.The primary purpose of a project is to achieve specific objectives or goals.These objectives are well-defined, providing a clear understanding of what the project aims to accomplish.
21 project assurance
planned and systematic actions necessary to provide confidence to the sponsoring organization and project sponsor that a project is likely to achieve its objectives
Project assurance is an integral part of project management, contributing to effective governance and oversight. It involves activities that provide stakeholders with confidence in the project’s progress, management, and potential for successful outcomes. Assurance activities may include reviews, audits, assessments, and other processes aimed at ensuring project alignment with organizational objectives and adherence to established standards and practices.Project assurance involves a methodical and organized set of actions. These actions are planned in advance to ensure that they are carried out in a systematic manner.The primary goal of project assurance is to instill confidence in key stakeholders. Assurance activities aim to identify and address risks, enhancing the likelihood of project success. Assurance activities are directed towards key stakeholders, including the organization providing sponsorship and the project sponsor. Assurance activities contribute to effective communication and transparency about the project’s status and likelihood of achieving objectives.The focus is on the ultimate success of the project in meeting its defined objectives.Assurance activities may include assessing project performance against established criteria and standards.
22 project governance
principles, policies and procedures by which a project is authorized and directed to accomplish agreed objectives
Project governance is a critical aspect of project management, providing the structure and oversight necessary to ensure that projects are conducted in a manner consistent with organizational goals and standards. Effective project governance contributes to transparency, accountability, and the successful delivery of project outcomes. It establishes the authority and accountability relationships within the project environment and helps manage risks, resources, and stakeholder expectations. Project governance is based on principles that guide decision-making and behavior.Policies and procedures provide a structured framework for managing and directing the project.Project governance involves the formal authorization of the project, establishing its legitimacy.It includes mechanisms for providing direction to the project team and aligning activities with organizational objectives.Governance ensures that the project is aligned with and contributes to the achievement of agreed-upon objectives.The governance framework is designed to maximize the value realized from the project.
23 project life cycle
defined set of phases from the start to the end of a project
Understanding and managing the project life cycle is fundamental to effective project management. Different projects may have different life cycle structures depending on factors such as industry, project complexity, and organizational preferences. The phases within a project life cycle often include initiation, planning, execution, monitoring and controlling, and closure. Each phase serves a specific purpose and contributes to the overall success of the project. The project life cycle provides a framework for project managers and teams to plan, execute, and deliver projects in a systematic and controlled manner. A project life cycle outlines a structured and predefined sequence of phases.Each phase represents a distinct stage in the project’s development, with a specific focus and set of activities.The life cycle covers the entire duration of the project, from initiation to completion. It includes all stages, processes, and activities that occur from the project’s inception to its conclusion.
24 project management
coordinated activities to direct and control the accomplishment of agreed objectives
Project management serves as a discipline that provides the framework, processes, and tools for effectively planning, executing, and completing projects. The definition emphasizes the importance of coordination, direction, and control in ensuring that projects are delivered successfully and meet their intended objectives. It involves a set of skills, methodologies, and principles that guide project teams toward the successful completion of their projects.Project management involves organizing and coordinating a series of activities.These activities are conducted in a coordinated manner to achieve project goals.Project management includes providing direction and exercising control over various project activities.The goal is to guide and oversee the project team to ensure the project progresses according to plan.Project management is focused on achieving specific, agreed-upon objectives. The coordinated activities are aimed at delivering the desired project outcomes within defined constraints.
25 project scope
authorized work to accomplish agreed objectives
Understanding and defining the project scope is a critical step in project management. It involves clarifying what work is included in the project, as well as what is excluded, to set clear boundaries and expectations. The scope definition helps prevent scope creep and ensures that the project team and stakeholders have a common understanding of the project’s deliverables and objectives.The project scope is officially approved or authorized, indicating that it has received the necessary permissions to proceed. Authorization ensures that the work falls within the approved boundaries of the project.The scope is directly linked to and aligned with the agreed-upon objectives of the project.The authorized work is purposeful, contributing to the achievement of specific project goals and outcomes.
26 sponsor
person responsible for obtaining the resources and executive decisions to enable success
In project management, having an engaged and effective sponsor is crucial for project success. Sponsors provide support, guidance, and the necessary resources, helping to overcome obstacles and ensuring alignment with organizational goals. The definition emphasizes the active role sponsors play in enabling project success through their involvement in resourcing and decision-making processes.The sponsor is an individual who assumes responsibility for certain aspects of the project’s success. Sponsors play a leadership role in supporting and overseeing the project. Sponsors are responsible for securing the necessary resources, which may include financial, human, or other resources, to facilitate project success. They ensure that the project team has the means to carry out their tasks effectively. Sponsors have the authority to make key executive decisions related to the project. They empower the project team by providing guidance and decisions that impact project direction. The primary role of a sponsor is to contribute to the success of the project. Sponsors actively support the project by facilitating the necessary conditions for success.
27 stakeholder
person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of a project, programme or portfolio
Understanding and managing stakeholders is a critical aspect of project, program, and portfolio management. Effective stakeholder management involves identifying, analyzing, and engaging with stakeholders throughout the life cycle of the initiative to ensure their interests are considered, and potential impacts are addressed. The definition recognizes the diverse and dynamic nature of stakeholders in the context of project environments. Stakeholders can be individuals, groups, or entire organizations. This term encompasses a wide range of entities that may have an interest in or impact on the project, program, or portfolio. Stakeholders may have a vested interest in the outcomes, processes, or decisions of the project, program, or portfolio. Some stakeholders have the capacity to influence the project or be influenced by it. Stakeholders can be affected by the project, whether positively or negatively. Perception is an important aspect, as stakeholders may perceive themselves to be affected even if the impact is indirect.
28 threat
risk occurrence that would have a negative impact
Threats, like risks, are associated with uncertainties or events that may or may not occur during the course of a project. Threats involve potential events that can adversely affect project objectives. The distinguishing factor for a threat is that its occurrence would lead to a negative or unfavorable impact. Threats present the potential for harm, disadvantage, or adverse consequences to the project. In risk management, threats are often seen as the negative counterparts to opportunities.Both threats and opportunities are managed within the broader context of risk management to maximize positive outcomes and minimize negative impacts.Like opportunities, threats are assessed based on their probability of occurrence and the potential impact on project objectives.Strategies for addressing threats may involve mitigation efforts or responsive actions to minimize the negative consequences.In project management, recognizing and managing threats is essential for identifying potential challenges and proactively addressing them to reduce their impact on project success. The concept aligns with the broader principles of risk management emphasized in ISO standards.
29 work breakdown structure
decomposition of the defined scope of a project or programme into progressively lower levels consisting of elements of work
The WBS is a fundamental tool in project management, helping to organize and structure the project work in a way that facilitates planning, tracking, and communication. It serves as a foundation for defining project tasks, assigning responsibilities, estimating costs, and creating schedules. The hierarchical nature of the WBS provides a visual representation of the project’s scope and breakdown of work, aiding in effective project management. The WBS involves breaking down the overall scope of the project or program into smaller, more manageable components.It creates a hierarchical structure, where higher levels represent broader project components, and lower levels represent detailed elements of work.The WBS is based on the clearly defined scope of the project or program. It helps in setting boundaries and identifying the specific boundaries of the project work.The WBS is organized in a hierarchical manner, with each level representing a more detailed breakdown of the work.Lower levels provide a progressively detailed view of the elements of work to be performed.The lower levels of the WBS consist of work packages or discrete elements of work that can be effectively managed.Each element of work represents a clear and manageable deliverable or set of activities.
30 work package
group of activities that have a defined scope, deliverable , timescale and cost
A work package is a grouping of related activities that contribute to achieving a specific goal or outcome. Activities within a work package are logically connected and coordinated. The work package has well-defined boundaries, indicating the specific work to be accomplished.The scope outlines what is included and what is excluded from the work package. A work package results in a specific deliverable, which could be a product, service, or outcome.The deliverable provides a tangible result or output of the activities within the work package.A work package has a specified timescale, indicating when the activities are expected to be completed. The timescale sets temporal constraints for the work package activities. Each work package is associated with a defined cost, representing the financial resources allocated to complete the activities. Budgeting and cost control are integral parts of managing work packages effectively.Work packages serve as intermediate levels of detail between higher-level project components, such as phases or stages, and individual tasks or activities. They facilitate the effective management and control of project work by breaking down the project into manageable units, allowing for detailed planning, monitoring, and reporting.
The structure of the ISO 21502:2018 Project, programme and portfolio management — Guidance on project management is as follows:
- 4 Project management concepts
- 4.1 Overview
- 4.1.1 General
- 4.1.2 Projects
- 4.1.3 Project management
- 4.2 Context
- 4.2.1 Impact of a project’s context
- 4.2.2 Organizational strategy and projects
- 4.2.3 Customer and supplier perspective
- 4.2.4 Project constraints
- 4.2.5 Projects as stand-alone, part of a programme or part of a portfolio
- 4.3 Project governance
- 4.3.1 Governance framework
- 4.3.2 Business case
- 4.4 Project life cycle
- 4.5 Project organization and roles
- 4.5.1 Project organization
- 4.5.2 Sponsoring organization
- 4.5.3 Project board
- 4.5.4 Project sponsor
- 4.5.5 Project assurance
- 4.5.6 Project manager
- 4.5.7 Project office
- 4.5.8 Work package leader
- 4.5.9 Project team members
- 4.5.10 Project stakeholders
- 4.5.11 Other roles
- 4.6 Competencies of project personnel
- 4.1 Overview
- 5 Prerequisites for formalizing project management
- 5.1 Overview
- 5.2 Considerations for implementing project management
- 5.3 Continuous improvement of the project management environment
- 5.4 Alignment with organizational processes and systems
- 6 Integrated project management practices
- 6.1 Overview
- 6.2 Pre-project activities
- 6.3 Overseeing a project
- 6.4 Directing a project
- 6.5 Initiating a project
- 6.5.1 Overview
- 6.5.2 Project team mobilization
- 6.5.3 Project governance and management approach
- 6.5.4 Initial project justification
- 6.5.5 Initial project planning
- 6.6 Controlling a project
- 6.6.1 Overview
- 6.6.2 Progressive justification
- 6.6.3 Managing project performance
- 6.6.4 Managing the start and close of each project phase
- 6.6.5 Managing the start, progress and close of each work package
- 6.7 Managing delivery
- 6.8 Closing or terminating a project
- 6.9 Post-project activities
- 7 Management practices for a project
- 7.1 Overview
- 7.2 Planning
- 7.2.1 Overview
- 7.2.2 Developing the plan
- 7.2.3 Monitoring the plan
- 7.3 Benefit management
- 7.3.1 Overview
- 7.3.2 Identifying and analysing benefits
- 7.3.3 Monitoring benefits
- 7.3.4 Maintaining benefits
- 7.4 Scope management
- 7.4.1 Overview
- 7.4.2 Defining the scope
- 7.4.3 Controlling the scope
- 7.4.4 Confirming scope delivery
- 7.5 Resources management
- 7.5.1 Overview
- 7.5.2 Planning the project organization
- 7.5.3 Establishing the team
- 7.5.4 Developing the team
- 7.5.5 Managing the team
- 7.5.6 Planning, managing and controlling physical and material resources
- 7.6 Schedule management
- 7.6.1 Overview
- 7.6.2 Estimating activity durations
- 7.6.3 Developing the schedule
- 7.6.4 Controlling the schedule
- 7.7 Cost management
- 7.7.1 Overview
- 7.7.2 Estimating cost
- 7.7.3 Developing the budget
- 7.7.4 Controlling costs
- 7.8 Risk management
- 7.8.1 Overview
- 7.8.2 Identifying risk
- 7.8.3 Assessing risk
- 7.8.4 Treating risk
- 7.8.5 Controlling risk
- 7.9 Issues management
- 7.9.1 Overview
- 7.9.2 Identifying issues
- 7.9.3 Resolving issues
- 7.10 Change control
- 7.10.1 Overview
- 7.10.2 Establishing a change control framework
- 7.10.3 Identifying and assessing change requests
- 7.10.4 Planning the implementation of change requests
- 7.10.5 Implementing and closing change requests
- 7.11 Quality management
- 7.11.1 Overview
- 7.11.2 Planning quality
- 7.11.3 Assuring quality
- 7.11.4 Controlling quality
- 7.12 Stakeholder engagement
- 7.12.1 Overview
- 7.12.2 Identifying stakeholders
- 7.12.3 Engaging stakeholders
- 7.13 Communication management
- 7.13.1 Overview
- 7.13.2 Planning communication
- 7.13.3 Distributing information
- 7.13.4 Monitoring the impact of communications
- 7.14 Managing organizational and societal change
- 7.14.1 Overview
- 7.14.2 Identifying the need for change
- 7.14.3 Implementing the organizational and societal change
- 7.15 Reporting
- 7.15.1 Overview
- 7.15.2 Planning reporting
- 7.15.3 Managing reporting
- 7.15.4 Delivering reports
- 7.16 Information and documentation management
- 7.16.1 Overview
- 7.16.2 Identifying which information should be managed
- 7.16.3 Storing and retrieving information and documentation
- 7.17 Procurement
- 7.17.1 Overview
- 7.17.2 Planning procurement
- 7.17.3 Evaluating and selecting suppliers
- 7.17.4 Administering contracts
- 7.17.5 Closing contracts
- 7.18 Lessons learned
- 7.18.1 Overview
- 7.18.2 Identifying lessons
- 7.18.3 Disseminating lessons
