Stage 1: Project
Conceptualization and Definition
James R. Burns
Recitation
 Name the core knowledge areas
 Name the facilitating knowledge areas
 Name the five stages of the lifecycle
 How does PMBOK handle processes?
 Name some processes associated with
cost management
 Name some processes associated with
quality management
Recitation
 What is the most important stage of PM?
 Which project team member is busiest
during the 1st Stage?
 What is the most important concern of the
PM in this stage?
 Name some deliverables of the 1st stage?
The Stages in the Project
Management Lifecycle
STAGE 1:
Conceptualizingand-Defining
STAGE 2:
Planning-andBudgeting
STAGE 3:
Executing
STAGE 5:
Terminating-andClosing
STAGE 4:
Monitoring-and-Controlling
Outline
 The First Stage
 Using a SOW
 Defining Project Boundaries/Scope
 Why getting this right is so important
 The use of surveys and interviews
 Definition of Deliverables and Due Dates
 Managing stakeholder expectations
More outline
 What the deliverables of this stage are
 Why this has to be done expeditiously
 Why iterations between this and the next
stage may be necessary
 How this stage gets done
 Using Goldratt’s Thinking Process
 Defining team roles and determining the
organization
 Assess Feasibility
Conceptualization and Definition
Determine
Construct
Define
Statement
Requirements
of Work
Ensure fit with
business
strategy and
priorities
Identify
dependencies
with other
projects
Assess
technology
consistency
Assess overall
risk
Assess
Organizati
on
Feasibility
Define scope,
size and
resource
requirements
Test
alignment with
strategies
Test
resource
availability
Planning and Budgeting
Make
GO/NO GO
Decision
Processes--Scope management
Initiation—defining a project charter
Scope planning—scope statement
Scope definition—defining a work
breakdown structure
Scope verification—formalizing
acceptance
Scope change control
The First Stage
 Analogous to a missile or rocket
 If the launch is “bad,” the project may have
to be killed
• Just as a rocket that misfires must be
detonated
Deliverables of this stage
 Project stakeholders
 Consensus --vision
Requirements document
 Project charter
 What the Project deliverables are
 Project team members??
Project stakeholders
This group must be molded into one in which
there is a lot of cohesion and consensus
 If you can’t get cohesion, then you may have to
settle for a plurality or majority rule
 It is most important that everyone knows up front
what this project is about
 Stakeholders who won’t get what they want from
the project need to know this up front

Cohesion, Consensus and
Commitment
 You’ve got to get these prior to execution or
you’ll never get them later on
Requirements document—
CONTENTS
 What the problem is
 What functionality is needed
 What inputs
What outputs
» Write this section first
 What performance
 What reliability
What kind of meeting is appropriate
to begin discussions?
 A Joint Requirements Definition Session
(JRDS)
 To create a strongly held shared vision of
what the project is all about
Managing Different Views
 The problem of ends vs. means values
 This is relative to getting consensus
 Stakeholder analysis
JIM
JACK
JOE
JOHN
ORGANIZATIO
N
Customer
Project team
member
Hardware
vendor
Project sponsor
Personal traits
Not very
computer
literate, doesn’t
know what he
wants
Terrific
developer; lots
of experience on
similar projects
Good sense of
humor; a little
lax on delivery
due dates
Very diluted; not
convinced
project is
needed; doesn’t
like Jill
Relation
project
to
Works for the
marketing dept.
Will do the
database
definitions of the
product
Provides both
client and server
hardware
components
Provides funds
for project; can
kill the project if
he deems
necessary
Level
interest
of
Moderate; is the
end user of the
deliverable
High
Moderate
Moderate
Level
influence
of
None
Moderate
None
High; can kill the
project
Involve her
heavily in the
user interface
and database
development
Don’t’ distract
him; keep him
happy
Stay after him,
make certain he
knows you
absolutely have
to have it on
3/3/3
Keep him
informed; do as
he says, now
Suggestions
for managing
the
relationship
Project Charter
 Advantage here is that the rules are made
explicit from the outset
 Helps remind the PM and team what the
goals/objectives are
 ANNOUNCES THE PROJECT
 ANNOUNCES THE PROJECT MANAGER
What else does the Project
Charter announce?
 Project stakeholders
 Project scope
 Project deliverables
 Project assumptions
 Project rules/processes
 Project governance

NAME:
 OBJECTIVES:
 STAKEHOLDERS:
 PROJECT MANAGER:
 SCOPE:
 DELIVERABLES:
 ASSUMPTIONS:
 RULES/PROCESSES:
 GOVERNANCE:
 COMMENTS:
 SIGNATURES/SIGN OFFS:


Methodology for Facilitation of
JRDS
 Goldratt Thinking Process
 Senge’s Systems Thinking and System
Dynamics
 SWOT Methodology
Goldratt Thinking Process
 What to Change
 What to Change to
 How to Cause the Change
What to Change
We talked previously about the problems with
mainframe/glass house architecture
 Data were isolated/non integrated
 Centralized MIS shop had long lead times
 MIPS on mainframes were expensive and very
much in demand
 MIPS in PC were dirt cheap and idle most of the
time
 No WINDOWS/GUI Internet Interface

Data from different
applications cannot be easily
shared
Each application was required to
have its own data management
component
The technology of
relational database
engines as data
management
components was
undeveloped
The data management
components of the various
applications were completely
unique; there was no reuse
Each application
had to reside
entirely on the
mainframe
The technology
of reuse was in
its infancy
What to Change to
 Modern distributed computing
architectures
How to Cause the Change
 Perhaps the most important part
Feasibility Assessment Process
 Identify Dependencies with other projects
 Assess overall risk
 Test alignment with/impact on strategies
and plans
 Test resource availability
 Submit deliverables for a quality gate
inspection
MAKE GO/NO GO Decision
More process steps
 Obtain funding
 Review alternative approaches
 Obtain necessary signoff signatures
 Move to next stage
A Caveat
 As Project Manager, you should avoid
making quick and dirty estimates of
duration and cost in this stage
 {You may be forced to abide by your first
rough estimates which are usually way off}
 Instead, quote ranges that err on the up
side, if your superiors insist on estimates
as to duration and cost
Summary
 This is the most important stage
 There is a lot of PM involvement
 PM must be courageous:
•
•
•
•
Communicate
Lead
Negotiate
Decide
 A most important focus:
• Build Consensus