KEY TERMS AND CONCEPTS

The Standard for Project Management reflects the progression of the profession. Organizations expect projects to deliver outcomes in addition to outputs and artifacts. Project managers are expected to deliver projects that create value for the organization and stakeholders within the organization’s system for value delivery. The following terms are defined to provide context for the content in this standard.

• Outcome. An end result or consequence of a process or project. Outcomes can include outputs and artifacts, but have a broader intent by focusing on the benefits and value that the project was undertaken to deliver.
• Portfolio. Projects, programs, subsidiary portfolios, and operations managed as a group to achieve strategic objectives.
• Product. An artifact that is produced, is quantifiable, and can be either an end item in itself or a component item.
• Program. Related projects, subsidiary programs, and program activities that are managed in a coordinated manner to obtain benefits not available from managing them individually.
• Project. A temporary endeavor undertaken to create a unique product, service, or result. The temporary nature of projects indicates a beginning and an end to the project work or a phase of the project work. Projects can stand alone or be part of a program or portfolio.
• Project management. The application of knowledge, skills, tools, and techniques to project activities to meet project requirements. Project management refers to guiding the project work to deliver the intended outcomes. Project teams can achieve the outcomes using a broad range of approaches (e.g., predictive, hybrid, and adaptive).
• Project manager. The person assigned by the performing organization to lead the project team that is responsible for achieving the project objectives. Project managers perform a variety of functions, such as facilitating the project team work to achieve the outcomes and managing the processes to deliver intended outcomes. Additional functions are identified in Section 2.3.
• Project team. A set of individuals performing the work of the project to achieve its objectives.
• System for value delivery. A collection of strategic business activities aimed at building, sustaining, and/or advancing an organization. Portfolios, programs, projects, products, and operations can all be part of an organization’s system for value delivery.
• Value. The worth, importance, or usefulness of something. Different stakeholders perceive value in different ways. Customers can define value as the ability to use specific features or functions of a product. Organizations can focus on business value as determined with financial metrics, such as the benefits less the cost of achieving those benefits. Societal value can include the contribution to groups of people, communities, or the environment.

For other terms used in this standard, refer to the Glossary and the PMI Lexicon of Project Management Terms [1].¹