Session 3 Project Initiation: Getting The Project Started © SYBEX Inc. 2005. All Rights Reserved. Learning Objectives • Be able to recognize a project request • Understand how to formulate high-level requirements • Be aware of vendor/contractor needs • Be able to list the primary documentation associated with a new project request • Understand the decomposition of requirements • Understand how large organizations determine which projects to work on • Define who the project stakeholders are • List the items that make up the project charter © SYBEX Inc. 2005. All Rights Reserved. How does a project start? • Customer Request starts the project – New product development to meet a market demand – Internal business need (e.g. new invoicing system) – External customer request – New technology – Legal requirement – Social need (e.g. infrastructure in a developing country) © SYBEX Inc. 2005. All Rights Reserved. Can you think of others? • What are some other ways that you can think of that would spur a new project? • Who would the “customer” be? © SYBEX Inc. 2005. All Rights Reserved. You Decide • Suppose you’re the PM for Orange County Choppers building custom motorcycles. – Who is your customer? Photos from www.orangecountychoppers.com © SYBEX Inc. 2005. All Rights Reserved. High-Level Requirements • Defining the Problem • Requirement Categories – Functional – Business – Technical (technical requirements entail a variety of categories): • • • • • • Usability Maintainability Operational Legal Performance Security © SYBEX Inc. 2005. All Rights Reserved. Vendor Bids • Vendors are often used to assist with projects • Key documents might be required to solicit vendor input, and direct vendor expectations: – – – – Request for Proposal (RFP) Request for Information (RFI) Request for Quote (RFQ) Statement of Work (SOW) © SYBEX Inc. 2005. All Rights Reserved. • • • • • • Documenting the Requirements Problem statement Objectives Strategic value Requirements Timing Historical data © SYBEX Inc. 2005. All Rights Reserved. Decomposing the Requirements STAKEHOLDER REQUIREMENT: Users throughout the company’s fifty-three campuses will be able to connect to a centralized database system via browser in order to manage sales and inventory information. You and the stakeholders have agreed upon this highlevel requirement and you are now ready to decompose this complex requirement into its baser elements. DECOMPOSITION: To decompose the stakeholder requirement, we’ll pick out the main elements and determine the types of requirements these entail. “Fifty-three campuses” - This element of the stakeholder requirement is a business requirement because the company has fifty-three campuses and you’re required to have all of them connect to one another. “Centralized database” - This element is a technical requirement. You’ll use a single centrally located database for all transaction activity. “Via browser” - This is a functional requirement. The stipulation is that all users will use a browser to connect to the system. (A very right and proper standard and requirement in today’s complex network topographies, we might add.) “In order to manage sales and inventory information” - This is also a functional requirement. You might confuse this as a business requirement, but in actuality you’re saying here that the users are functionally going to do something with the system—they’re going to manage sales and inventory information. © SYBEX Inc. 2005. All Rights Reserved. Project Selection Techniques • Executive decision-making committee (often armed with project scorecard) • Feasibility study • PMO © SYBEX Inc. 2005. All Rights Reserved. Decision Models • Benefit Measurement Methods – – – • • Cost-benefit analyses Scorecard method Economic model Constrained Optimization Models Expert Judgment © SYBEX Inc. 2005. All Rights Reserved. Project Stakeholders • Sponsor – – – – – – Provides or obtains financial resources Analyzes key stakeholders Negotiates support from key stakeholders Monitors deliveries of major milestones Runs interference and removes roadblocks Provides political coaching to the PM • Other stakeholders – The Project Manager – Project team members – Functional managers - leaders of each department that have an interest in the project – Customer/client – End-user © SYBEX Inc. 2005. All Rights Reserved. You Decide Suppose that you’re the project manager in charge of constructing a new high-rise, or implementing a new computer system – Besides the list above, who else would you consider to be a stakeholder? © SYBEX Inc. 2005. All Rights Reserved. Stakeholder Matrix Practice In thinking about the high-rise or new computer system in the You Decide slide previously listed, create a stakeholder matrix for each group or individual you determined was a stakeholder. Include the following information: – – – – Role on the project Needs from the project Involvement on the project Level of influence over the project © SYBEX Inc. 2005. All Rights Reserved. The Project Charter • Output of the Initiating Process Group – Formally approves the project and allows it to begin – Authorizes the expenditure of resources on the project • Charter is a major milestone and a document that is signed by the approving authority • Charter contents: – – – – – Project description Project team Goals and objectives Business case Formal approval © SYBEX Inc. 2005. All Rights Reserved. Chaptal Winery Case Study • Who are the stakeholders? • What are the project’s objectives? • What should the charter contain? © SYBEX Inc. 2005. All Rights Reserved. End of Chapter Review Q&A Instructor Hand-out Q&A • Go over end-of-chapter review questions • Instructor to hand out additional questions (POP QUIZ TIME!) © SYBEX Inc. 2005. All Rights Reserved. Optional Case Study Choose a project that you’d like to follow through in this course. Examples include: – Remodeling a home-improvement store to enhance the customer shopping experience – Finishing an unfinished basement – Building a kit airplane or car – Developing a project plan for a start-up company resulting in an Initial Public Offering (IPO) – Developing a project plan for a European vacation for two, covering at least two countries – Remodeling a kitchen – Landscaping a new house – Building a Web site – Brewing one’s own beer or wine © SYBEX Inc. 2005. All Rights Reserved. Next Steps • For this session: – Understand the Initiating Process Group and it’s single output, the Project Charter – Understand the three categories of requirements – Be able to identify the most common project selection methods – Be able to define a project stakeholder and list stakeholders common to most projects – Be able to describe a project charter • For next session – Read Chapter 3 and complete the end of chapter review questions. – Work through the continuation of the Chaptal Winery case study found at the end of Chapter 3 © SYBEX Inc. 2005. All Rights Reserved.