Sustainable Project Management: The GPM Reference Guide Joel Carboni William Duncan Mónica Gonzalez Peter Milsom Michael Young Copyright Information © 2018 by GPM Global All rights reserved. Printed in the United States of America 2nd Edition 2018 ISBN 978-0-578-19688-6 GPM Global 23491 Haggerty Rd. Novi MI 48375, USA www.greenprojectmanagement.org Products or corporate names may be trademarks or registered trademarks and are used only for identification and explanation without intent to infringe. Contents How to Use This Book The Sustainability Imperative Why Sustainability? The Evolution of Sustainability Models Why Organizations Adopt Sustainable Practices The Sustainable Development Goals United Nations Global Compact Sustainability as an Influencer Summary Sustainability and Projects Sustainable Projects Sustainable Project Management The GPM P5™ Standard for Sustainability in Project Management Sustainable Project Managers Summary Ethics, Principles, and Values Core Concepts Ensuring an Ethical Supply Chain Ethics and Sustainability Principles and Sustainability Values and Sustainability Summary PRiSM Basics Project Management Concepts PRiSM Project Lifecycle Key PRiSM Deliverables Summary Managing a PRiSM Project Lifecycle Phase Basic Planning Staffing and Personnel Deliverables Risks and Opportunities Cost and Finance Time and Schedule Management Plans Summary Supporting Processes Stakeholder Engagement Estimating Team Development Performance Monitoring and Control Change Control Configuration Management Sustainable Procurement Issue Management Summary Governance What is Governance? Levels of Governance Affecting Projects Characteristics of Good Governance Why is Project Governance Important? The Impact of Poor Governance Governance of Project Management Roles Establishing Governance Arrangements Summary Benefits Management Definitions Benefits Management Process Sustainability and Benefits Management Additional Benefits of Benefits Management Summary Organizational Change Management The Organizational Change Management Process Sustainability and OCM Change Models OCM and Project Management Summary Value Management Definitions The Benefits of Value Management Value Management Requires Trade-offs Value Management Process Stakeholder Involvement Establishing Value Drivers Value Profile Summary Systems Thinking Core Concepts Becoming a Systems Thinker Application of Systems Thinking Summary Standards Supporting Sustainable Projects International Organization for Standardization (ISO) Environmental Management Systems Energy Management Systems Social Responsibility Anti-bribery Management Systems Sustainable Development in Communities Sustainable Procurement Quality Management Systems Asset Management Systems Risk and Opportunity Management Summary Standards for Governance of Project Management Governance Standards Project Management Standards Program Management Standards Portfolio Management Standards Summary Authors References List of Tables Table 21: Characteristics of a Sustainable Project Manager 14 Table 31: Good Practice for Fighting Corruption in the Supply Chain 18 Table 32: Questions to Ask to Help Prevent Supply-Chain Corruption 18 Table 33: GPM’s Six Principles of Project Management Sustainability 21 Table 51: Resource Categories 51 Table 52: Bottom-up Budget Development 52 Table 53: Cost Breakdown Structure 53 Table 54: Overview of Contents of Common Management Plans 57 Table 61: Comparative Accuracy of Various Estimate Classes 62 Table 62: Sample Earned Value Formulas 68 Table 63: Characteristics of Major Contract Types 72 Table 71: Impact of Governance on Project Success 85 Table 72: Common Governance Issues 86 Table 73: Desired Behaviors for Sponsors 88 Table 74: Stakeholders and their Interests 89 Table 81: Benefit Categories 92 Table 91: Overview of OCM Models 101 Table 92: Project Management and OCM 103 Table 101: Proposed Park Features and Costs 108 Table 102: FAST Diagram for Eliminating Mice 111 Table 103: Performance Rating Scale 112 Table 104: Value Profile for Sample Hospital 113 List of Figures Figure 11: Nested Dependency Model 5 Figure 12: The Blue Economy Model 5 Figure 13: Levels, Drivers, and Measures of Sustainability Adoption 7 Figure 14: United Nations Sustainable Development Goals (SDGs) 8 Figure 15: UNGC Principles 9 Figure 21: The Evolution of Project Management Focus 12 Figure 22: P5 Ontology 13 Figure 31: Relationship between Ethics, Principles, and Values 15 Figure 41: Project Management as a Process 28 Figure 42: Project Environment (adapted from ISO 21500) 29 Figure 43: Overview Flowchart of the PRiSM Project Lifecycle 30 Figure 44: Pre-Project Phase Flowchart 31 Figure 45: Discovery Phase Flowchart 32 Figure 46: Design Phase Flowchart 33 Figure 47: Delivery Phase Flowchart 34 Figure 48: Closure Phase Flowchart 35 Figure 49: Flowchart of PRiSM Project Management Activities 36 Figure 410: Extract from P5 Impact Analysis 38 Figure 411: P5 Impact Analysis Report Example 38 Figure 412: A Modern View of the Triple Constraint 40 Figure 51: Flowchart of Project Management Activities in PRiSM 43 Figure 52: Upper Levels of an Organizational Breakdown Structure 45 Figure 53: Partial Example of an Responsibility Assignment Matrix 45 Figure 54: Upper Levels of a Work Breakdown Structure 46 Figure 55: Upper Levels of a Product Breakdown Structure 47 Figure 56: Probability-Impact Matrix 50 Figure 57: Monthly and Cumulative Project Budgets 53 Figure 58: Sample Network Logic Diagram 54 Figure 59: Sample Gantt Chart 55 Figure 510: Relationship Between the Project Plan and Management Plans 56 Figure 61: Typical Project Stakeholders 59 Figure 62: Stakeholder Analysis Process 60 Figure 63: Stakeholder Analysis Matrix 61 Figure 64: Tuckman’s Stages of Team Development 65 Figure 65: Typical Management Response to Variances 67 Figure 66: Earned Value Measures 67 Figure 67: Change Control Process Flowchart 69 Figure 68: Configuration Management Process Flowchart 70 Figure 69: Procurement Process 71 Figure 610: Issue Management Process Relationships 75 Figure 71: Governance Framework for Projects 80 Figure 81: Organizational Objectives and Benefits Realization 92 Figure 82: Benefits Management Process 93 Figure 83: Cradle-to-Cradle Lifecycle 94 Figure 84: Benefits Management Interfaces 95 Figure 91: The Organizational Change Management Process 97 Figure 92: ADKAR Model 101 Figure 101: Value Management Focuses on Functionality 105 Figure 102: Whole-life Cost of a Building 106 Figure 103: Timing and Cost of Change 107 Figure 104: Balancing the Variables to Maximize Value 107 Figure 105: Value Management in the PRiSM Project Lifecycle 108 Figure 106: Value Measurement Process (VAMP) 109 Figure 107: Function Analysis System Technique Diagram 111 Figure 108: Partial Example of Value Analysis 112 Figure 111: Sample Causal Loop Diagram 116 Figure 112: Causal Loop Diagram for Fixes that Fail 117 Figure 113: Causal Loop Diagram for Shifting the Burden 118 Figure 114: Causal Loop Diagram of Selected SDGs 119 Figure 115: Interactions Between Spheres 120 Preface Our planet is facing greater challenges than ever before including bio- diversity loss, population increases, constrained natural resources , human induced climate change, and social and economic inequality. Although a growing number of organizations are establishing strategies to combat these issues, implementing a change of this magnitude is not easy as many of today’s organizations were founded at a time when sustainable meant having a healthy bottom line. Over the past decade, however, the definition of sustainable has evolved and many organizations have had to re-evaluate their business to incorporate practices that are socially responsible and environmentally friendly. It is, therefore, necessary to align the management of projects, to better support the new business landscape, the blue economy. It goes without saying that evolving the project management profession’s role has never been more important. To achieve sustainability as a planet, we must increase our capacity to be able to go beyond sustainable development and remediate the problems that humans have caused to the planet while driving forward. With the challenges humanity is facing, whether they be geopolitical conflicts, climate change, extreme poverty, resource scarcity, slavery, or inequality in all its forms, the profession of project management must play a greater role. This second edition of our reference guide is a major redesign and focuses on how to manage projects sustainably. This book is aimed at anyone involved in projects. It provides a starting point for understanding both the principles of sustainable project management and the PRiSM methodology. The concepts we present are ever evolving, and we are excited to bring this reference guide to benefit the project management profession. Dr. Joel B. Carboni Founder, GPM How to Use This Book The aim of this book is to provide awareness of and practical information on how to manage projects sustainably. If you are involved in projects in any capacity, this book is for you. Our goal is to provide practical information and step-by-step guidance that can be kept at your desk as a reference as you do project work. We have divided this book into four parts and fourteen chapters: Part One — provides the context and underlying motivation for sustainability and sustainable project management. Part Two — outlines the PRiSM Methodology and the approach to sustainable project management. Part Three — provides the underpinning concepts for