Episode 12: Process Domain Overview
In this glossary session, we will review common methods, techniques, and metrics that project managers use to make decisions. These tools are often applied when analyzing performance, managing risks, or tailoring approaches. Each definition is explained in clear language, showing not only what the tool is but also how it is applied in practice.
Impact analysis. Impact analysis is the process of examining how a proposed change will affect scope, schedule, cost, and resources. It requires looking at dependencies and evaluating both immediate and downstream effects. By performing impact analysis, teams can make informed decisions before approving or rejecting changes, reducing the risk of unintended consequences.
Earned value management. Earned value management, often called EVM, is a performance measurement method that integrates scope, schedule, and cost. It compares planned progress with actual progress to reveal whether a project is ahead or behind schedule and over or under budget. EVM provides early warning signals and supports forecasting based on current performance trends.
Cost performance index. The cost performance index, or CPI, is a ratio that shows cost efficiency. It is calculated by dividing earned value by actual cost. A CPI above one means the project is under budget, while a CPI below one means it is over budget. This simple index allows managers to quickly assess financial performance.
Schedule performance index. The schedule performance index, or SPI, is a ratio that shows schedule efficiency. It is calculated by dividing earned value by planned value. An SPI above one means the project is ahead of schedule, while an SPI below one means it is behind schedule. This measure helps project teams determine whether progress is keeping pace with the plan.
Variance at completion. Variance at completion, or VAC, is a forecast of how much over or under budget the project will be at its end. It is calculated by subtracting the estimate at completion from the budget at completion. A negative variance signals that the project will likely exceed budget, while a positive variance indicates potential savings. VAC helps decision makers plan corrective action while there is still time.
Critical path method. The critical path method, or CPM, is a scheduling technique that identifies the longest sequence of dependent tasks. This path determines the minimum time needed to complete the project. Any delay on the critical path directly delays project completion. Knowing the critical path helps managers focus attention on the activities that matter most for schedule control.
Float or slack. Float, also called slack, is the amount of time a task can be delayed without affecting the project end date or another task. Total float applies to the project finish, while free float applies only to successor tasks. Monitoring float allows managers to use flexibility wisely, balancing resources and managing risks without jeopardizing delivery.
Monte Carlo simulation. Monte Carlo simulation is a technique that uses repeated random sampling to predict outcomes. In projects, it is often applied to schedule or cost estimates to show possible ranges and probabilities. This method highlights the likelihood of finishing by a certain date or within budget. Monte Carlo analysis provides a more realistic view than single-point estimates.
Risk probability and impact matrix. A probability and impact matrix is a grid that helps categorize risks based on their likelihood and their potential effect. Risks that are both likely and severe rise to the top for active management. Risks that are less likely or less impactful may be monitored but require fewer resources. This matrix makes prioritization clearer and helps teams focus attention where it is most needed.
Qualitative versus quantitative risk analysis. Qualitative analysis uses descriptive scales to rank risks by probability and impact. Quantitative analysis applies numerical methods, such as simulations or calculations, to measure potential outcomes. Both approaches complement each other: qualitative analysis helps filter and prioritize, while quantitative analysis provides deeper insight for major risks. Using both ensures a balanced understanding of uncertainty.
In this glossary session, we will review common methods, techniques, and metrics that project managers use to make decisions. These tools are often applied when analyzing performance, managing risks, or tailoring approaches. Each definition is explained in clear language, showing not only what the tool is but also how it is applied in practice.
Risk response strategies. Risk response strategies are structured options for dealing with uncertainty. For threats, the strategies include avoiding, transferring, mitigating, or accepting the risk. For opportunities, they include exploiting, enhancing, sharing, or accepting the chance of benefit. Choosing a response requires balancing cost, feasibility, and alignment with project objectives, and recording the choice in the risk register for accountability.
Progressive elaboration. Progressive elaboration means developing project details in steps as more information becomes available. Early in the project, plans are high level, but over time they are refined with greater accuracy. This approach avoids wasting effort on premature detail and acknowledges that uncertainty is reduced gradually. It is a fundamental principle of planning that ensures resources are used wisely.
Rolling wave planning. Rolling wave planning is a scheduling technique where near-term work is planned in detail, while future work is outlined at a higher level. As time passes, the future work is elaborated in more detail, like waves rolling forward. This method balances the need for structure with the reality of uncertainty. It allows planning to stay current while maintaining flexibility for unknowns.
Incremental delivery. Incremental delivery refers to producing usable parts of a product in successive releases. Each increment adds value, even before the entire product is complete. This approach allows feedback and adjustment along the way while reducing the risk of delivering everything at the end with no interim value. Incremental delivery works well in both agile and hybrid environments.
Timeboxing. Timeboxing fixes the amount of time for an activity and adjusts the scope to fit within that window. Agile sprints are a clear example, where the team commits to a fixed duration, usually two to four weeks, and delivers whatever is ready by the end. This practice creates predictability, rhythm, and sustainable pace. Timeboxing demonstrates discipline in adaptive approaches, ensuring that delivery cadence is honored even if not all planned work is finished.
Velocity. Velocity is the measure of how much work a team completes in a given iteration. It is usually tracked as story points, features, or backlog items finished during the sprint. Velocity provides a simple way to forecast how much work a team can likely deliver in the future. Over time, a stable velocity gives confidence in planning and setting expectations.
Story points. Story points are a relative measure of effort assigned to backlog items in agile projects. They reflect complexity, uncertainty, and work involved rather than exact hours. Teams compare new items to reference stories they already understand to maintain consistency. Story points help teams estimate quickly and focus on relative size rather than precision that is not possible early on.
MoSCoW prioritization. MoSCoW prioritization is a method for ranking requirements into four categories: Must have, Should have, Could have, and Will not have at this time. This technique helps teams and stakeholders agree on priorities. By distinguishing between critical and optional features, it protects delivery scope when time or resources are limited. It is particularly valuable in adaptive projects where requirements evolve.
Value stream mapping. Value stream mapping is a technique for analyzing the flow of work from start to finish. It identifies each step in a process and highlights delays, waste, or inefficiencies. By visualizing the entire stream, teams can redesign workflows to deliver value more quickly and with less effort. This method is used widely in lean and agile practices to drive continuous improvement.
Continuous integration and continuous delivery. Continuous integration is the practice of frequently merging code changes into a shared repository where they are automatically tested. Continuous delivery extends this by ensuring the codebase is always in a deployable state, ready for release at any time. Together, these practices reduce integration problems, speed up feedback, and increase confidence in quality. They are central to modern product development and are often linked to agile and DevOps approaches.
