4 Preproject Activities

The project management process as discussed in chapter 5 begins after the project has been defined and approved. But how does a project get started? Projects usually begin with the project sponsor developing business documents, which include a project business case and a project benefits management plan. Both documents can be tailored for small projects. However, for simple projects, the statement of work can be used to define the project. After the project has been defined, a project request is developed for approval.

If your project does not require business documents, you should, at a minimum, develop a statement of work and project request. If you have the opportunity to determine what could be worked on as a project, you should also use the project request.

Regardless of the documents used to define the project, project success criteria should be defined. What does done look like? How will you know when the project is complete?

Business Documents

Business documents ensure that business needs are communicated, which allows the project manager to determine the appropriate approach for the project to make sure project stakeholders are engaged and are aware of the business expectations. Key business documents include: project business cases and project benefits management plan.

Project Business Case

The project business case provides the economic feasibility of the project. It lists the objectives and reasons for the project initiation. The business case includes the business needs, situation analysis, recommendation, and a statement on how to evaluate benefits realization. The project business case is where you have an opportunity to sell the short-term or long-term value from completing the project.

Project Benefits Management Plan

The project benefits management plan describes how and when the benefits of the project will be delivered and how those benefits will be measured.

Scenario

Bonita is an analyst in the accounting department and is assigned to oversee the installation of an accounting software upgrade and to develop and deliver training to the staff who will use the accounting software. Jasmine is the director of the accounting department and is also the business owner and project sponsor.

Bonita gave some consideration on where to start. She decided her first step was to obtain a copy of the business documents.

Statement of Work

The preproject activities begin when you determine that there is a business need or opportunity. A business need or opportunity may be based on a market demand, technological advance, legal requirement, government regulation, or environmental consideration. For small projects, you or someone in your organization may identify a business need based on a technology or process change. Small projects generally do not require a business case. However, if a business case is required, the business need or opportunity is included in the business case, along with the cost-benefit analysis.

In addition to defining the business need, you will also need to describe the scope of the product. A product scope description documents the characteristics of the product, service, or result the project will be undertaken to create. The product scope description should indicate the relationship to any other products, services, or results being created. It should also reference the business need or opportunity that the project will address. This section also makes it crystal clear what is in and what is out of scope for the project, so everyone will be in agreement on what will and what will not be included.

The final component of the statement of work is strategic plan alignment. Projects are a means for an organization to accomplish its strategic goals. Strategic goals are shared with the organizational units. Even small projects need to be in alignment with the organization’s strategic vision, goals, and objectives. Strategic plan alignment ensures that the project contributes to the organization’s goals and objectives. The business need or opportunity, product scope description, and strategic plan alignment are included in your statement of work. Your statement of work is input for your project request.

Project Request

The purpose of the project request is to document the business need, describe the product scope, and outline the potential project. The person or area that is trying to get a project approved completes the project request. The project request is then submitted to the decision maker or approval committee.

The decision maker will determine whether or not to proceed with the project. In addition to approving the project, the decision maker may also give the project a priority and indicate when the project can begin.

The project request consists of the following:

• Business information

Business area—Identify the organization or department requesting the project.

Business need or opportunity—Identify why this project is important and how it supports the business goal(s).

Link to strategic objective—Identify the strategic objective this project supports.

Customer—Identify the end user of the project.

• Project description

Objective—State what the project will achieve. The project objectives support the business need or opportunity. Objectives should be SMART—specific, measurable, attainable/achievable, realistic, and time-bound.

Scope—Identify what is included in the project.

Desired completion date—Provide a high-level estimate of when you expect the project to be completed.

Preliminary funding estimate—Provide a high-level estimate of what the project will cost.

• Project information

Assumptions—Assumptions are the factors that, for planning purposes, are considered true, real, or certain. Assumptions are events or conditions that must occur for the project to be successful, but at this time they are not certain. Clearly and concisely state the assumptions so everyone knows the premises on which the project request is based.

Issues—Identify points or matters that are in question or in dispute or a point or matter that is not settled and is under discussion or about which there are opposing views or disagreements.

Risks—Identify any uncertain event or condition that, if it occurs, will have a positive or negative effect on the project’s objectives.

Acceptance criteria—Explain how you will know the project is considered complete and successful.

Scenario

Bonita made the right decision. She was able to use the business documents as a starting point for creating the statement of work and project request. After completion, Bonita will submit these documents to Jasmine, the project sponsor, for approval.

PROJECT EXAMPLE

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Jackson Project Management Group (JPMG) is a consulting firm that offers a variety of project management services. Faye Jackson, founder and president, insists that her organization use project management best practices. One of the organization’s strategic goals for this year is to increase operational efficiency and effectiveness by implementing project management processes and providing project management training to JPMG consultants. Faye asked Mary, the director of the newly established training organization, to provide a list of potential project management courses, along with the course description.

Mary developed a list of 10 potential courses. Two were introductory or beginning level, three were intermediate level, and five were advanced level. Mary developed a statement of work as shown in figure 4.1.

Project Success Measures

How do you define project success? Traditionally, project success was measured by metrics of scope, time, cost, and quality. In the PMBOK® Guide, sixth edition, PMI explained that project success should include consideration for the achievement of project objectives.¹ However, project stakeholders may have different ideas about what success is. In addition to meeting project metrics of scope, time, cost, and quality, project stakeholders may also measure success by realizing benefits from project delivery, meeting financial and nonfinancial measures, achieving customer satisfaction, or achieving other agreed-upon success measures.

Statement of Work

Figure 4.1: Statement of work

Scenario

Faye was impressed with the course descriptions and the statement of work, and she decided to start with one of the beginning level courses, a course called Project Management Overview. She would like to begin delivering the first course to the public the third quarter of this year. Faye asked Mary to sponsor the development of the course and to assign a business owner to develop the project request. Mary assigned Yvette Bennett, a training director, as the business owner. The project request is shown in figure 4.2.

Project Request

Figure 4.2: Project request

Specifically for small projects, where project metrics may not be the driver, it is important to discuss project success criteria. Key questions to consider are:

• What will success look like when this project is complete?

• What factors may impact success?

• What are the expected benefits from project delivery?

• What metrics should be used to evaluate success?

• What are the customer expectations?