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BUSINESS CASE, SOW, & PROJECT

CHARTER

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Management Institute, Inc.

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At the end of this training, our goal is for you to:

• Be able to know the content of these documents

• Explain how they relate to each other

• Be able to describe when they are created and how they are used

• Explain the difference between them

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Overview

BUSINESS CASE

Worthiness of a project

STATEMENT OF WORK

Description of products, services or results

PROJECT CHARTER

Formally authorizes a project Provides authority to apply resource

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Business Case The purpose is: • To capture the reasoning for initiating a project

Generally designed to answer the question: • “What are the likely financial and other business consequences if we take this or that action (or decision)?”

Spend resources in support of business

Part of project selection process

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• Strategy and advantageAnalyzes

• Business planDefines

• Prior to project startCreated

Business Case

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Business Case – Need

Market demand

Organizational need

Technological advancements

Legal requirements

Environmental impact

Customer requirement

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Business Case –Purpose

Ensures Value and Importance

Proper management

Capability to deliver

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Business Case –Structure

Background

Business Benefits

Cost of Project

Gap Analysis

Options

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Statement of Work

• A statement of work (SOW) is an important component of the project Charter

• A contract SOW is a device that describes the products, results and

services that are expected to be delivered at the conclusion of a contract

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Describes Project Scope

Describes Product Scope

States requirements

Statement of Work

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Statement of Work Internal Projects

Provided by initiator or sponsor External Projects

Provided by initiator or sponsor Ensures agreement on Deliverables

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Statement of Work

Created before project start • Input to Develop Charter

Includes • Requirements, performance and assessments

Describes • Product, service and result

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Statement of Work – Structure

Goals

Assumptions & Constraints

Acceptance Criteria

Management Guidelines

Product & work description

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Project Charter

• A statement of the scope, objectives and participants in a project

• Provides a preliminary explanation of roles and responsibilities

• Outlines the project objectives

• Identifies the main stakeholders

• Defines the authority of the project manager

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Develop early Make decisions

Leads the project

Project Charter

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Initiating

Planning

ExecutingMonitoring

and Controlling

Closing

Project Charter

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Project Charter – Purpose

Direction & Constraints

Project Objectives

Project Deliverables

Stakeholders’ Needs

Project Priorities

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Project Charter – Structure

Project Identification & Scope

Authority and Resource Need Definition

Project Methodology

Project Roles and Responsibilities

Project Structure and Schedule

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Comparison

Business Case SOW Project Charter Purpose Reason for

initiating a project Project deliverables

Project objectives, identifies stakeholders and project manager

Created in Before Project Before Project Develop Project Charter

Feature Assures support of the business

Assures consistent deliveries

Establishes the project manager’s authority