Advice for the Project Management Professional (PMP)

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Glossary
make-or-buy analysis — The process of estimating
the internal costs of providing a product
or service and comparing that estimate to
the cost of outsourcing.
manager — A person who deals with the dayto-day
details of meeting specific goals.
mandatory dependencies — The dependencies
that are inherent in the nature of the work
being performed on a project.
Maslow’s hierarchy of needs — A hierarchy
that states that people’s behaviors are guided
or motivated by a sequence of needs (physiological,
safety, social, esteem, and selfactualization).
maturity model — A framework for helping
organizations improve their processes and
systems.
merge — A situation when two or more nodes
precede a single node on a network diagram.
methodology — A plan that describes how
things should be done to manage a project.
metric — A standard of measurement.
milestone — A significant event on a project.
mind mapping — A technique that uses
branches radiating out from a core idea to
structure thoughts and ideas.
mirroring — The matching of certain behaviors
of the other person.
monitoring and controlling processes — The
actions taken to measure progress toward
achieving project goals, monitor deviation from
plans, and take corrective action.
multitasking — When a resource works on
more than one task at a time.
Murphy’s Law — If something can go wrong,
it will.
Myers-Briggs Type Indicator (MBTI) —A
popular tool for determining personality
preferences.
net present value (NPV) analysis — A method
of calculating the expected net monetary gain
or loss from a project by discounting all
expected future cash inflows and outflows to
the present point in time.
network diagram — A schematic display of the
logical relationships among, or sequencing of,
project activities.
node — The starting and ending point of an
activity on an activity-on-arrow network
diagram.
opportunities — Chances to improve the
organization.
opportunity cost of capital — The return
available by investing the capital elsewhere.
organizational project management — The
systematic management of projects, programs,
and portfolios in alignment with the achievement
of strategic goals. 15
outcomes — The results of applying
capabilities.
overallocation — When more resources than
are available are assigned to perform work at a
given time.
parametric modeling — A technique that uses
project characteristics (parameters) in a mathematical
model to estimate project costs.
Pareto chart — A histogram that can help you
identify and prioritize problem areas.
Parkinson’s Law — Work expands to fill the
time allowed.
payback period — The amount of time it will
take to recoup, in the form of net cash inflows,
the total dollars invested in a project.
phase — A distinct stage in project
development.
planned value (PV) — That portion of the
approved total cost estimate planned to be
spent on an activity during a given period.
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planning processes — The actions that involve
devising and maintaining a workable scheme to
ensure that the project meets its scope, time,
and cost goals as well as organizational needs.