Mastering the Basics: 10 Essential Project Management Terms Every PMP Student Should Know

The ANSI PMI 99-001-2021, established by the Project Management Institute (PMI), is the project management standard divided into three sections: Introduction, A System for Value Delivery, and Project Management Principles. The introduction defines 10 commonly used project management terms. Let's give a look at them with a short definition and an example.

• Project: A project is a temporary effort to create a unique result, like a product, service, or solution. For example, building a new website for a company is a project; making an hot-dog in a fast food is not a project.
• Project Management: Project management is the process of planning, organizing, and overseeing a project to achieve its goals on scope, time and within budget. For instance, managing the construction of a new office building involves setting deadlines, allocating resources, and tracking progress. Issuing commands to a subordinate is not considered project management.
• Project Manager: A project manager is the person responsible for leading the project, ensuring it stays on track, and meeting objectives. For example, the project manager coordinates the team, budget, and timelines for a specific project. A team supervisor in a factory who assigns daily tasks to workers is not a project manager.
• Project Team: A project team is the group of people working together on a project, each with specific roles and skills. For example, a marketing project might have designers, writers, and analysts collaborating to launch a campaign.
• Outcome: An outcome is the final result or impact a project delivers, such as improved efficiency or customer satisfaction. For instance, a completed training program could lead to employees becoming more productive.
• Portfolio: A portfolio is a collection of projects, programs, or initiatives managed together to achieve strategic goals. For example, a tech company might manage a portfolio of software development projects to improve its product offerings.
• Product: A product is something created or delivered by a project that provides value to customers or stakeholders. For example, a smartphone is the product of a tech development project.
• Program: A program is a group of related projects managed together to achieve benefits that wouldn’t be possible individually. For instance, a city’s transportation improvement program might include multiple projects like road repairs and new bus routes.
• System for Value Delivery: A system for value delivery refers to the methods and processes organizations use to create and provide value to customers and stakeholders. For example, a company’s e-commerce platform and customer support system together form a value delivery system that ensures customers receive their orders on time.
• Value: Value is the benefit gained from a project or product, relative to the cost and effort invested. According to PMI, value is the "net result of benefits minus costs and risks" (PMI, 2021). For example, a company might invest in new software that increases employee productivity, providing long-term value despite the initial expense.

In the next article, we will explore in greater detail how projects generate value.

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