One cannot underestimate how important this first step of the process is in achieving success. It is the foundational step and failure or success here will likely determine failure or success for the rest of the project. The purpose of this step is to identify the requirements of the business so that you can translate them into analytical objectives. It has the following four tasks:
The key to this task is to identify the goals of the organization and frame the problem. An effective question to ask is, what are we going to do different? This may seem like a benign question, but it can really challenge people to ponder what they need from an analytical perspective and it can get to the root of the decision that needs to be made. It can also prevent you from going out and doing a lot of unnecessary work on some fishing expedition. As such, the key for you is to identify the decision. A working definition of a decision can be put forward to the team as the irrevocable choice to commit or not commit the resources. Additionally, remember that the choice to do nothing different is indeed a decision.
This does not mean that a project should not be launched if the choices are not absolutely clear. There will be times when the problem is not or cannot be well-defined; to paraphrase former Defense Secretary Donald Rumsfeld, there are known – unknowns. Indeed, there will probably be many times when the problem is ill-defined and the project's main goal is to further the understanding of the problem and generate hypotheses; again calling on Secretary Rumsfeld, unknown – unknowns, which means that you don't know what you don't know. However, in ill-defined problems, one should go forward with an understanding of what will happen next in terms of resource commitment based on the various outcomes of hypothesis exploration.
Another thing to consider in this task is to manage expectations. There is no such thing as a perfect data, no matter what its depth and breadth is. This is not the time to make guarantees but to communicate what is possible, given your expertise.
I recommend a couple of outputs from this task. The first is a mission statement. This is not the touchy-feely mission statement of an organization, but it is your mission statement or, more importantly, the mission statement approved by the project sponsor. I stole this idea from my years of military experience and I could write volumes on why it is effective, but that is for another day. Let's just say that in the absence of clear direction or guidance, the mission statement or whatever you want to call it becomes the unifying statement and can help prevent scope creep. It consists of the following points:
The second task is to have as clear a definition of success as possible. Literally, ask what does success look like? Help the team/sponsor paint a picture of success that you can understand. Your job then is to translate this into modeling requirements.
This task helps you in project planning by gathering information on the resources available, constraints, and assumptions, identifying the risks, and building contingency plans. I would further add that this is also the time to identify the key stakeholders that will be impacted by the decisions to be made.
A couple of points here. When examining the resources that are available, do not neglect to scour the records of the past and current projects. Odds are someone in the organization has or is working on the same problem and it may be essential to synchronize your work with theirs. Don't forget to enumerate the risks considering time, people, and money. Do everything in your power to create a list of the stakeholders, both those that impact your project and those that could be impacted by your project. Identify who these people are and how they can influence/be impacted by the decision. Once this is done, work with the project sponsor to formulate a communication plan with these stakeholders.
Here, you are looking to translate the business goal into technical requirements. This includes turning the success criterion from the task of creating a business objective to technical success. This might be things such as RMSE or a level of predictive accuracy.
The task here is to build an effective project plan with all the information gathered up to this point. Regardless of what technique you use, whether it be a Gantt chart or some other graphic, produce it and make it a part of your communication plan. Make this plan widely available to the stakeholders and update it on a regular basis and as circumstances dictate.