Strategy Artifacts Business Case Project usually begin with the development of a business case for the project. A business case is a document that provides the reasoning why a project should be initiated. Describes the boundaries to the project in sufficient detail such that the decision makers can determine that the expected business value and benefits exceed the cost of performing project. Justifies the investment in the project. Components of Business Case The business need: This identifies the gap that currently exists and the need for the investment. The opportunity options: This identifies how the project is linked to strategic business objectives. The benefit realization plan: This identifies the value/benefits (rather than products or deliverables) that can be obtained whether they are cost savings, additional profits, or opportunities. Assumptions made: This identifies all of the assumptions that are made to justify the project. High-level objectives: This identifies the high-level or strategic objectives for the project. Recommendation for evaluation: This identifies what techniques should be used for evaluation such as a benefit-to-cost ratio. Cash flow considerations, strategic options, opportunity costs, return on investment, net present value, and risks. Project metrics: This identifies the financial and nonfinancial metrics that will be used to track the performance of the project. Components of Business Case Exit strategies: This identifies the cancellation criteria to be used to cancel the project if necessary. Resource needed: This identifies the human and nonhuman resources needed. Project risks: This helps the decision makers evaluate the project by listing briefly the business, legal, technical, and other risks of the project. Timing: This identifies the major milestones for the project. Alternative analysis: you provide more than one option for sake of debate during approval. Legal requirements: This identifies and legal requirements that must be followed. Project complexity: This identifies how complex the project might be, perhaps even from the risk perspective. If the organization can manage the complexity, and if it can be done with existing technology. Benefits Realization Sometimes, the benefits realization is a separate document rather than being included as part of the business case. A template for a benefits realization plan might include the following: A description of the benefits Identification of each benefit as tangible or intangible Identification of the recipient of each benefit How the benefits will be realized How the benefits will be measured The realization date for each benefit The handover activities to another group that may be responsible for converting the projects deliverables into benefits realization. Milestone:- A significant stage or event in the development of something Business Case The business case may state the intended value contribution of the project outcome in qualitative or quantitative terms, or both. A business case contains at least these supporting and interrelated elements: Business need Project justification Business strategy Business need: Business provides the rationale for the project, explaining why the project is undertaken. It originates with the preliminary business requirements, which are reflected in the project charter or other authorizing document. It provides details about the business goals and objectives. Who will be the initiator :- The business need may be intended for the performing organization, a client organization, a partnership of organizations, or public welfare. A clear statement of the business need helps the project team understand the business drivers for the future state and allows the project team to identify opportunities or problems to increase the potential value from the project outcome Project justification: Project justification is connected to business need. It explains why the business need is worth the investment and why it should be addressed at this time. The project justification is accompanied by a cost-benefit analysis and assumptions. Business strategy: Business strategy is the reason for the project and all needs are related to the strategy to achieve the value. Business model canvas This artifact is a one-page visual summary that describe the value proposition, infrastructure, customer and finances (often used in lean startups). Project Brief A project brief provide a high level overview of the goal, deliverables, and processes for the project Project Charter Officially starting and authorizing the project Need: project is triggered by a need, may be driven by a contract or to meet the business objectives Priorities: Project is selected from many proposed projects based on financial and business priorities Empowers: The charter authorizes and names the PM Project vision statement Project Charter Project charter is the process of developing a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities. PM is assigned in early stages – collaboration – project sponsor Collaboration – understanding of project purpose, objectives, and expected benefits Efficient allocation of resources for project activities Authority to plan, execute, and control the project. Project charter Business documents required for project charter Business case Market demand Organizational need (e.g., due to high overhead costs, company may combine staff functions to reduce cost) Customer request Technological advancement Legal requirement Ecological impacts Social need Project charter Business documents required for project charter Business case Market demand (e.g., an automobile manufacturer authorize a project to build more fuel efficient cars in response to shortage or increasing gasoline prices) Organizational need (e.g., due to high overhead costs, company may combine staff functions to reduce cost) Customer request (e.g., an electric utility authorizing a project to build a new substation to serve a new industrial park) Technological advancement (e.g., an airline authorizing new project to develop electronic tickets instead of paper tickets) Legal requirement (e.g., a pant company authorizing a project to establish guidelines for handling toxic materials) Ecological impacts (e.g., a company authorizing a project to lessen its environmental impact) or Social need (e.g., a nongovernmental organization in developing country authorizing a project to provide clean water, toilets, and sanitation education to communities suffering from high rates of cholera) Agreements: any form of contract, MOUs, service legal agreement, letter of agreement, verbal agreements, email or other written agreements. Typically an agreement take place when project is performed for an external customer. EEFs Government and industry standards Legal and regulatory requirements Marketplace conditions Organizational culture and political environment Organizational governance framework Stakeholder expectations OPAs Organizational standard policies, processes and procedures Portfolio, program, and project governance framework Monitoring and reporting methods Templates (project charter template) and Historical information and lesson learned repository Models, methods and artifacts Expert judgment Organizational strategy Benefit management plan Technical knowledge of industry Duration and budget Risk identification Data gathering Brainstorming Focus group interviews Interpersonal and team skills Conflict management Facilitation Meeting management Meetings 1- focus your efforts on understanding the primary output, the project charter 2- Know that the project charter is signed by senior management and authorizes the project manager by name to direct the project 3- Know that the project charter includes: the reason for the project, highlevel project requirements, high level milestone schedule etc 4- It documents the high level information on the project
