Mergim Millaku · Project Life Cycle Projects need clear start and end points Also important: structure for the time between these points → Project Life Cycle is a recommended approach

Initiating projects

Mergim Millaku

Ioannis Chalkias

Kevin Schörgnhofer

Content

- Project Life Cycle- Business Case- Project Governance Report- User requirements & solution design documents- Summary

Project Life Cycle

● Projects need clear start and end points● Also important: structure for the time between these points

→ Project Life Cycle is a recommended approach for this structure

● Covers Pre-Project, Project and Post-Project● Project initiation: Handover of the project ownership from the portfolio

management team to the project steering group

Project Life Cycle

Parts of Initiation-Phase

● Business case● Project governance report● User requirements document● Solution design document

Business Case

● Opportunity or problem● Strategic fit● Interdependencies● Success criteria● Options considered (should include “do-nothing” option)

Business Case

● Selected option:○ Risks

○ Benefits

○ Costs

○ Cost/benefit analysis

○ Deliverables and timescales

○ Planning assumptions

○ Benefits realisation plan

○ Management by objectives

Business Case

Opportunity or problem

● commercial gain: new market, new product or service● problem must be overcome to avoid risk

Strategic fit

● shows how the project will contribute to the strategic aims● opportunity to describe whether the contribution is direct, indirect, partial or

absent to each of the balanced scorecard quadrants● adds a dimension to the business case that is not purely commercial

Business Case

Interdependencies

● show the principal dependencies; helpful when the project is part of a wider portfolio or programme of work

● helps those who will have to manage those and in cases to justify it

Success criteria

● describes fully and clearly what success looks like -> decision to close the project is rel. easy

Business Case

Success criteria

● examples:● Does the new computer system process twice as many trades per day as the

previous one?● Have the new office operating procedures been made available to the Tokyo

office as a priority?● it is helpful for the project manager to ask each member to decide whether each

criterion is: essential, desirable, nice to have, low priority

Business Case

Option considered

● most problems or opportunities have a range of solutions● outline the most likely to satisfy the need● example:

○ An operational inefficiency may be overcome by introducing a new computer solution. As well as

living with the inefficiency, the business case could consider whether prepackaged software or a

system developed in house would provide the best answer.

● do-nothing option must feature● example for justified do-nothing option:

○ Year 2000 date change: there was real concern that some computers would fail to differentiate

between the year 2000 and the year 1900

Business Case

Option selected

● provides the most compelling argument in its favour● heart of the business case is formed from a balance of costs and benefits, but

the debate will be emotional during the early days● costs, risks and benefits subsections must be expressed robustly

Option selected: risks

● should identify the risks to a project as well as its benefits from the outset

Business Case

Option selected: risks

Business Case

Option selected: benefits

● should describe clearly each benefit in turn, including how they are to be measured and quantified in financial terms

Business Case

Option selected: costs

● every cost associated with the project should be identified so that it can be quantified

● should also include the operational, maintenance and support of the deliverable the project is producing (not only till the project closure)

● Budgets may be needed in:

company personnel, external contract staff, consultants, hardware, software, licences, property expenses (accommodation, travel, and so on), maintenance contracts environment and operations.

Business Case

Option selected: costs

Business Case

Option selected: cost/benefit analysis

● shows whether the project is forecast to deliver a successful outcome and when

Business Case

a summary

● business case is the single most important document in the project● it should be robust, clear and decisive in its recommendation● the organisation may not be much nearer knowing how the targets identified in

the business case are to be met -> purpose of the project governance report

Project Governance Report

Answered with detail serious questions and describe the future about the Project

Example:

● Why is this project necessary ?● Who will be involved in the management of the project ? ● What will the project deliver ? ● When will it deliver it ? ● How much will it cost ?


What is included in the Governance Report :

● Organisation

● Project Plan


Organisation

In this part are things like:

● Organisation chart

● Roles and responsibilities

● Communications plan


Organisation-Organisation Chart

● Identify the roles in the project and the reporting lines between them

● Persons with appropriate roles are listed there


Organisation Chart

Example:


Roles and Responsibilities:

● Describe all the roles of the Project

● Describe the respective responsibilities of each one


The communications plan will describe:

● what information must be communicated throughout the project and beyond? ● who needs to receive this information? ● what the communication format should be and who should develop or present

it?● when it is needed?


The communication plan is split in two parts

● a table, identifying the information needs and audiences

● a list of communication types, with dates or frequencies, by which those

audiences may obtain the information they need.


List of communication types:


Project plan contains

● Quality plan ● Planning assumptions ● Time schedule ● Resource plan ● Risks ● Project controls


Project plan contains is based on four components

● quality management and deliverables● costs (resources and budgets)● timescales● controls


Project plan-Quality plan

Describes how the end product will be developed and delivered to an acceptable standard, on time and to budget.

Also contains:

● Deliverables● Responsibilities● Standards


Project plan-Quality plan-Deliverables

● Specified the end product● All other deliverables that must be produced● The scope of the project● Describe each one Deliverables● Deliverable needed






Project plan-Quality plan- Responsibilities

● Describes who will be responsible for which aspects● Not a regurgitation of the roles and responsibilities section● Specifically identifies the things that named individuals must do● Quality management


Project plan-Quality plan- Responsibilities

How to ensure quality;

● specified● planned● built● tested● accepted


Project plan-Quality plan- Responsibilities:

Contains statements like:

● The project steering group will agree a set of success criteria from which all expressions of quality will be derived.

● The sponsor will approve time, cost and benefit expectations throughout the project.

● The customer representative will approve the user requirements document on behalf of all end users of the key deliverable.


Project plan-Quality plan- Standards

● Prescribed standards that must be met● Include documentary or procedural standards for:

○ specifying the outcome

○ designing the outcome

○ building the outcome

○ testing the outcome

○ operating the outcome

○ managing the project


Project plan-Planning assumptions


Project plan-Time schedule

● Is not a project plan

● Does not show how cost or quality expectations will be met


Project plan-Time schedule

Illustration as Gnatt: as flow diagram:


Project plan-Resource plan

● How and when the project is likely to incur its costs


Project plan-Risk

● Risks identified in the:○ project outline and

○ business case

● Present as risk register


Risk register:

Project Governance Report - Project Controls

Used to describe how the project will be kept on track

● Control Cycle● Escalation Management● Change Control● Configuration Control● Quality Control● Risk and issue management


Control Cycle - meetings and reporting

● various control mechanisms to ensure the information/communication flow● ensures that corrective actions can be taken if necessary● usually a table is used as a representation


Escalation Management

● describes what constitutes a significant issue● how to handle this issues● represented as “escalation conditions”● usually escalation conditions are described for time, cost and benefit margins


Escalation Management - Example






Change Control

● how are changes defined● how will be dealt with them● divided into

○ Baseline

○ Contingency

○ Process

○ Responsibilities - facilitated by the project manager


Change Control - Baseline

● Business case v1.0● Project governance report v1.0● User requirements document v1.0● Solution design document v1.0


Change Control - Contingency - Example

● Risk mitigation: 23,300● Change management: 1,000● Approved changes: 52,000

Total: 76,300


Change Control - Process

Change requests (as well as arisen problems) consist of four steps

● Change request identification● Change request analysis● Change request impact assessment● Conclusion and decision

Change requests have to be checked against the escalation conditions


Configuration Control

How will the project maintain the products it creates?

● Which products are to be subject to control?

● Who owns them?

● Where will the products be held?

● How will back-ups be taken?

● How will security be ensured?

● How will the products be distributed and redistributed?

● How will versions be controlled?

● Which version will constitute the baseline?

● How will checks be made to make sure that all products are where they should be?


Quality Control

● Product quality tests○ describes any tests on products

○ should contain a detailed description of the particular test

● Project quality tests○ mostly only on large projects


Risk and Issue Management

● how risks and issues will be identified and prioritised● the criteria for assigning ownership● how mitigating actions will be planned● how progress will be monitored and controlled● the process by which contingency funds may be drawn

User Requirements Document

● the customers view of the project● describes the customer needs which the projects outcome must satisfy● Implementation depends on the type of project

○ “If the project has to deliver a computer system, it may contain a list of functional and

non-functional requirements”

○ For a new office building, a graphical depiction can be used

● important basis of the whole project and its products

Solution Design Document

● describes how the customer needs will be fulfilled● Implementation again depends on the type of project

○ Description of the design of a computer system

○ For a new office building, the architects blueprint can be used

Summary

● Initiation stage sets the fundament for a successful project● Unknowns should get resolved● At the end the success criteria should be established● Detailed answers for the questions

○ Why

○ Who

○ What

○ When

○ How

Documents

Mergim Millaku · Project Life Cycle Projects need clear start and end points Also important: structure for the time between these points → Project Life Cycle is a recommended approach