Quick Recap

Definition of Project Manager in relationship to PMC (Project Monitoring and Controlling) The person with authority to manage a project. This includes leading the planning and the development of all project deliverables. The project manager is responsible for managing the budget and workplan and all Project Management Procedures such as scope management, issues management, risk management, etc. The person or firm responsible for the planning, coordination and controlling of a project from inception (Initiation) to completion (Closing), meeting the project's requirements and ensuring completion on time, within cost and to required quality standards. The Project Manager is the individual responsible for the day-to-day management of the project. A project manager is the person who has the overall responsibility for the successful planning and execution of any project.

Responsibility can be divided into 4 groups of beneficiaries Owners/shareholders Employees Customers/consumers Community

Lesson 2: Initiating a Project Topic 2A: Examine the Project Management Context Topic 2B: Examine Project Selection Topic 2C: Prepare a Project Statement of Work Topic 2D: Create a Project Charter Topic 2E: Identify Project Stakeholders

The project Lifecycle and project initiation

Project Mgmt Process Groups Monitoring & Controlling Planning Initiating Closing Executing Source: PMI Guide to Project Management Body of Knowledge

Project Initiation overview Awareness of the need for change (situation, context) and recognition by stakeholders that only a project can bring about the desired change Consideration of project options Collection of basic information to perform a preliminary project feasibility assessment and determine possible project costs and outcomes (positive and negative) Preparation of a formal project proposal for consideration by the project sponsors Undertake a detailed project feasibility study if required Decide whether project should be pursued, put on-hold for a future time or rejected Make contracts with key stakeholders, issue project charter and assign resources for the project Move the project into the (detailed) planning phase

Initiating process group Processes typically include Developing a business case Initializing a project Getting approval of the business case Preparation of the project charter

Project life cycle The project life cycle (PLC) defines the life of a project in phases Any project should have one or more deliverables as its output(s) Phases help control the project Provide gates to decide whether to proceed Fast tracking can be done; start next phase early

Project Identification Start of Initiating phase Recognize need, problem, or opportunity Various ways for identification Organizations strategic planning Response to unexpected events Group organized to address a need Important to clearly identify need to determine if worth pursuing Use decision making process to prioritize and select project with greatest need Project Identification The initiating phase of the project life cycle starts with recognizing a need, problem, or opportunity for which a project or projects are identified to address the need. Projects are identified in various ways: During an organization’s strategic planning As part of its normal business operations In response to unexpected events The result of a group of individuals deciding to organize a project to address a particular need It is important to clearly define the need. This may require gathering data about the need or opportunity to help determine if it is worth pursuing. Sometimes organizations identify several or many needs, but have limited funds and people available to pursue potential projects to address all of those needs. In such cases, the company must go through a decision-making process to prioritize and select those projects that will result in the greatest overall benefit.

Project Selection Evaluate needs, costs, benefits Determine which are projects Select project Develop criteria List assumptions Gather data Evaluate each opportunity Combine “gut” feelings and quantitative information to make decision Project Selection Project selection involves evaluating various needs or opportunities and then deciding which of those should move forward as a project to be implemented. The benefits and consequences, advantages and disadvantages, plusses and minuses of each opportunity need to be considered and evaluated. They can be quantitative and qualitative, tangible and intangible. Each person's decision will be a combination of quantitative evaluation and "gut" feelings based upon experience. The steps in project selection are: Develop a set of criteria against which the opportunity will be evaluated. For example: Alignment with company goals Anticipated sales volume Increase in market share Establishment of new markets Anticipated retail price Investment required Estimated manufacturing cost per unit Technology development required Return on investment Human resources impact Public reaction Competitors’ reaction Expected time frame Regulatory approval Risks List assumptions that will be used as the basis for each opportunity. If an opportunity is to build an on-site day care center for children and elderly relatives of company employees, one assumption might be that the company would be able to obtain a bank loan to build such a center. Gather data and information for each opportunity to help ensure an intelligent decision regarding project selection. It may be necessary to gather some preliminary financial estimates associated with each opportunity, such as estimated revenue projections and implementation and operating costs. In addition to gathering hard data, it may also be necessary to obtain other information, such as opinions and reactions from various stakeholders who would be affected by the opportunity. Evaluate each opportunity against the criteria. Once all the data and information has been collected, analyzed, and summarized for each opportunity, it should be given to all the individuals responsible for performing the evaluation. It is beneficial to have several individuals involved in the evaluation and selection decision in order to get a variety of viewpoints. These individuals will combine the collected data with their gut feelings regarding the project when making their decision.

Define project goal Have at least one!!! How will this project provide value to its organization? And make sure stakeholders agree Define not only the deliverables, but also the way project success will be measured

Initiation: Plan project Effort (staffing levels) starts low, then rises until mid-project, then drops off Risks are often highest initially Stakeholder input is highest initially Cost of correcting scope errors gets higher as the project progresses

Initiation: Plan project Define the project’s plan: What will happen? Why? How? Who? How long will it take? How much will it cost? What are the risks, and how will we manage them? How did we estimate the duration and budget? How are decisions reached? Were we successful?

Initiation: Plan project Plan must define, for each project phase Deliverables Tasks Resources Time This defines the baseline project plan

Project initiation areas to be addressed Making a business case for the project Project organisation Project need Project goals Project assumptions and constraints Project risk management Quality Control Project change control Project processes (more of an overview of how the PMI looks at projects) The project charter Project stakeholders

Monitoring & Controlling Key Project Outputs Monitoring & Controlling Project Charter Project Mgmt. Plan Planning Initiating Closing Executing Mgmt. Review Lessons Learned

Organisation and responsibilities Organisation of project who is in charge who is project manager who should ensure project quality Responsibilities who is expected to do what Why? To avoid omissions To prevent subsequent recriminations To give leadership and direction

Project need All projects are conceived and undertaken in response to some need (problem, opportunity) – internal, external, legal and other. The need could be commercial in nature A software company is asked by one of its major clients to develop accounting software Or non-commercial Contract for system to store patient health records

Project Goals Every project has one goal which is the ultimate destination of all project initiation, planning, execution and other activities. In addition to its goal, projects can have multiple objectives.

Project assumptions Projects are usually undertaken in very complex internal and external environments and are subject to a multitude of factors and influences. Assumptions may constitute the basis for the subsequent planning and execution of the project. For example, an assumption could be that the cost of project inputs will not increase over the project life-cycle, that project requirements will not significantly change and that all key stakeholders will support the project.

Project constraints Constraints are factors which have a limiting effect on how the project is undertaken. These include for example constraints with regard to project policies, recruitment and selection, reporting, financial outlays, completion of activities etc.

Risk management Risk is a function of how likely an undesirable event will happen how likely that event will cause loss; and how serious is that loss Risk management tackles these by reducing the likelihood of the event happening reducing the likelihood of an accident or loss occurring and/or reducing the amount of loss At the project initiation stage preliminary risk management should take place and overall project risk should be assessed

Quality Control It is important to state at the beginning of the project how you will ensure the products will be assessed adherence to standards (whose? which version?) adherence to written procedures internal checks, peer reviews independent technical checks and tests integration test user test

Change control When discussing the need for project initiation, there is a need to address how change will be managed Before agreeing to a change, project manager should: get a written request from someone in authority to avoid mere whims becoming requirements decide whether this is additional work or just a correction shouldn't charge extra for what should be produced anyway evaluate the impact of the change increase in cost and time seek approval form senior management to avoid subsequent recriminations ensure that all are notified to ensure people are working to the same plan

Change control - why is it necessary? Poor workmanship on the part of the project team The team must correct at its own expense Project baseline ought not to be altered An error in the specifications Who pays depends on the circumstances If the specification was agreed by the user, the user pays Additional work over and above what was agreed Project plans may be altered to permit this additional work The user must agree to additional time and costs

Project processes Project management processes help run the project Initiation, execution, closing, managing, etc. Product-oriented processes are those that actually create the system or product You need both kinds of processes!