Chapter 2 - Project Selection, Initiation and scope Management Project Selection Criteria:

Strategic Alignment:

Projects should align with the organisation's mission, vision, and strategic goals to ensure
that resources are allocated to initiatives that contribute to the overall success of the
organisation.

Business Value:

Assess the potential benefits and value that each project will deliver to the organisation,
such as increased revenue, cost savings, competitive advantage, or improved customer
satisfaction.

Resource Availability:

Consider the availability of resources, including budget, skilled personnel, technology, and
infrastructure, to ensure that the necessary resources are accessible for project
execution.

Risk Assessment:

Evaluate the risks associated with each project, including technical, financial, market, and
organisational risks, to determine the likelihood of project success and identify strategies
for risk mitigation.

Feasibility:

Assess the technical, operational, and economic feasibility of each project to determine if
it is achievable within the constraints of time, budget, and resources.

Market Demand:

Analyze market trends, customer needs, and competitive dynamics to identify projects
that address market demand and have the potential for significant market impact.

Compliance and Regulations:

Ensure that projects comply with relevant laws, regulations, industry standards, and
ethical guidelines to minimize legal and regulatory risks and ensure ethical conduct.

Stakeholder Requirements:Consider the needs, expectations, and priorities of

stakeholders, including customers, sponsors, end-users, and regulatory bodies, to ensure
that projects deliver value and meet stakeholder expectations.

Strategic Fit:

Evaluate the fit of each project with the organization's overall portfolio, considering
factors such as portfolio balance, diversification, and alignment with strategic priorities.

Project Selection Methods:

Benefit-Cost Analysis (BCA):

Quantify the costs and benefits of each project and compare them to determine the net
profit or cost-effectiveness of each project.

Scoring Models:

Use weighted scoring models to evaluate and prioritize projects based on predefined
criteria, assigning weights to each criterion and scoring projects accordingly.

Return on Investment (ROI):Calculate the expected return on investment for each project
by comparing the expected benefits to the costs incurred.

Payback Period:

Determine the time it takes for each project to recoup its initial investment through the
generated benefits.

Net Present Value (NPV):Calculate the present value of future cash flows generated by
each project and compare them to determine the project's financial viability.

Risk Analysis and Management:

Assess the risks associated with each project and develop risk mitigation strategies to
address potential threats to project success.

Decision Trees:

Use decision tree analysis to model the potential outcomes and uncertainties associated
with each project and identify the optimal course of action.

Expert Judgment:

Seek input from subject matter experts, project stakeholders, and experienced
professionals to assess the feasibility and potential impact of each project.

Portfolio Analysis:

Analyze the organization's project portfolio to evaluate the collective impact, risks, and
resource allocation across all projects and make informed decisions about project
selection and prioritization.

Constraint Analysis:Evaluate projects based on constraints such as time, budget,

resources, and scope to identify projects that can be realistically executed within these
constraints.

Project Initiation

Project initiation is the first phase of the project life cycle, where the project's feasibility
and value are evaluated, and initial plans are formulated. Key steps include:
❖ Identify Project Objectives:

➢ Define what the project aims to achieve.

➢ Align project objectives with organizational goals and strategies.

❖ Develop Project Charter:

➢ The project charter formally authorizes the project and gives the project manager the
authority to allocate organizational resources to the project.

❖ Stakeholder Identification:

➢ Identify all potential stakeholders (individuals, groups, or organizations affected by or

involved in the project).

➢ Understand their needs, expectations, and potential influence on the project. ❖

Feasibility Study:

➢ Conduct a preliminary analysis to determine if the project is viable.

➢ Assess technical, financial, and operational feasibility.

❖ Define Project Scope:

➢ Outline the boundaries of the project, including what is and isn’t included. ➢ Prevent
scope creep by clearly defining deliverables and exclusions.

❖ Initial Risk Assessment:

➢ Identify potential risks and uncertainties.

➢ Assess their impact and likelihood and develop preliminary mitigation strategies. ❖
Project Sponsor and Team:

➢ Secure commitment from a project sponsor who provides support and resources. ➢
Assemble an initial project team with the necessary skills and expertise.

Develop Project Charter:

Key elements of a project charter Example Project Charter Template (Project Title:
XYZ Project)

Project Purpose and Justification: Project Purpose: To improve customer satisfaction

by implementing a new customer relationship
● Explain why the project is being
management (CRM) system.
undertaken.

● Highlight the business needs or

opportunities it addresses.

Objectives and Success Criteria: Objectives:

● Define specific, measurable ● Increase customer satisfaction scores by 20%

objectives. ● Establish criteria for within one year of implementation.
measuring project success.
● Reduce customer complaint resolution time by
50%.

Project Description and Scope: Scope:

● Provide a high-level overview of ● Implement a new CRM system for the sales and
the project, including key supportdepartments.
deliverables.
● Provide training for all relevant staff.
● Ensure these requirements are
clear and agreed upon.

High-Level Requirements: High-Level Requirements:

● Summarize essential ● The system must integrate with existing

requirements from stakeholders.
customer databases.
● Ensure these requirements are
● It must be user-friendly and require minimal
clear and agreed upon.
training for end users.

Assumptions and Constraints: Assumptions:

● Document assumptions that underpin ● Adequate funding and resources will be

the project plan.
available.
● Identify any constraints that may limit
● Current IT infrastructure can support the
project execution.
new system.

Constraints:

● The project must be completed within six

months.

● Budget is limited to $500,000.

Key Stakeholders: Key Stakeholders:

● List primary stakeholders and their ● Project Sponsor: Jane Doe, VP of

roles. Customer Relations

● Include a communication plan for ● Project Manager: John Smith

engaging stakeholders throughout the
● IT Department, Sales Team, Support
project.
Team

High-Level Risks: High-Level Risks:

● Highlight major risks identified during ● Potential resistance to change from staff.
the initiation phase. ● Data migration issues from old systems.

● Provide a preliminary plan for risk

management.

Project Milestones: Milestones:

● Identify critical milestones and ● Project kickoff: July 1

high-level timeline. ● System selection: August 1

● Establish key deadlines for project ● Pilot testing: September 15

phases or deliverables.
● Full implementation: December 15

Budget and Resources: Budget and Resources:

● Provide an initial budget estimate. ● Identify ● Total budget: $500,000

key resources needed, including personnel,
● Key resources: CRM software,
equipment, and materials.
training

materials, IT support
 Approval and Authority: Approval:

● Specify the authority of the project manager ● Project Sponsor Signature:

and other team members. ______________ ● Date:
______________
● Include signatures of key stakeholders to
formalize approval and commitment.

❖ Stakeholder identification and analysis

Stakeholder identification and analysis is a critical process in project management that

involves identifying and understanding the individuals, groups, or organizations that are
affected by or can affect the project:

1. Identifying Stakeholders:

● The first step is to make a list of everyone who has an interest in the project. This
includes people directly involved in the project, like team

members and project sponsors, as well as those who may be impacted

by the project, such as customers, users and community members.

2. Understanding Stakeholders:

● Once stakeholders are identified, it's important to understand their interests,

expectations, concerns, and influence on the project. This can

be done through interviews, surveys or stakeholder analysis techniques.

3. Categorizing Stakeholders:

● Stakeholders can be categorized based on their level of interest in the project and their
level of influence or power. High-interest,

high-influence stakeholders are typically the most critical to engage with closely, as they
can have a significant impact on the project's success.

4. Assessing Stakeholder Impact:

● It's essential to assess how each stakeholder may impact the project and vice versa.
Consider how their involvement could affect project outcomes, risks, and requirements.

5. Engaging Stakeholders:

● Once stakeholders are identified and analyzed, develop a plan for how to engage and
communicate with them throughout the project. This may involve regular updates,
meetings, consultations, and feedback sessions to ensure their needs and expectations are
addressed.

6. Managing Stakeholder Relationships:

● Effective stakeholder management involves building positive relationships and

addressing conflicts or disagreements that may arise. It's important to keep stakeholders
informed, involved, and satisfied with the project's progress and outcomes.

7. Updating Stakeholder Analysis:

● Stakeholder analysis is not a one-time activity. It should be revisited periodically

throughout the project lifecycle to account for changes in stakeholders' interests,
priorities, and influence.

Scope Planning

Scope planning is the process of developing a detailed description of the project and its
deliverables. This involves:

❖ Collecting Requirements:

● Engage stakeholders to gather detailed requirements.

● Use techniques like interviews, surveys, focus groups, and workshops. ● Document
requirements in a clear and concise manner.

❖ Scope:

● Develop a detailed project scope statement.

● Include project objectives, deliverables, constraints, assumptions, and acceptance

criteria.

● Ensure alignment with stakeholder expectations and project goals. ❖ Creating a Work
Breakdown Structure (WBS):

● Break down the project scope into smaller, manageable components.

● Organize these components hierarchically to create a visual

representation of the work.

● Each level of the WBS represents more detailed tasks and deliverables. Steps in Scope
Definition

Develop a Project Charter:

● Define the project’s purpose, objectives, high-level requirements, and initial scope.

● Include key stakeholders and their roles.

Create a Scope Statement:

● Provide a detailed description of the project scope.

● Define project boundaries, deliverables, constraints, and assumptions. ● Outline

acceptance criteria and project exclusions.

Develop a Detailed Work Breakdown Structure (WBS):

● Decompose the project scope into smaller work packages.

● Ensure each work package is clearly defined and manageable.

● Assign unique identifiers to each component for tracking and management.

Verify Scope with Stakeholders:

● Review the scope statement and WBS with stakeholders.

● Ensure alignment and obtain formal approval.

● Make necessary adjustments based on feedback.

Establish Scope Control Procedures:

● Define processes for managing changes to the project scope. ● Implement a formal
change control process.

● Ensure all changes are documented, evaluated, and approved.

❖ Tools and Techniques for Scope Planning and Definition Requirements Gathering
Techniques:

● Interviews, focus groups, surveys, questionnaires, observation, and document analysis.

Scope Management Plan:

● Document that outlines how the project scope will be defined, validated, and
controlled.

Work Breakdown Structure (WBS):

● Hierarchical decomposition of the total scope of work.

● Provides a framework for detailed planning and control.

WBS Dictionary:

● A document that provides detailed information about each element in the WBS.

● Includes descriptions, responsible parties, and resource requirements. Stakeholder

Analysis:

● Identifies stakeholders and their influence on the project.

● Helps in understanding stakeholder needs and expectations.

Project Scope Statement Templates:

● Standardized templates to ensure all necessary information is included. ● Provides a

consistent format for scope statements.

Importance of Scope Planning and Definition

● Prevents Scope Creep: Clearly defined scope helps to manage changes and avoid
uncontrolled growth of project scope.

● Enhances Stakeholder Communication: Ensures all stakeholders have a common

understanding of project goals and deliverables.

● Facilitates Accurate Estimation: Detailed scope allows for better estimation of time,
costs, and resources.

● Improves Project Control: Provides a basis for monitoring and controlling project
progress.

● Ensures Project Alignment: Aligns project outcomes with organizational objectives and
stakeholder expectations.

Example of Scope Planning and Definition

Project Scope Statement:

● Project Title: New Website Development

● Project Objectives: Develop a responsive website to enhance customer engagement and

online sales.

● Deliverables:

● A fully functional responsive website

● Content management system integration

● User training and documentation

● Post-launch support for 3 months

● Constraints:

● Budget limit of $50,000

● Project completion within 6 months

● Assumptions:

● All content will be provided by the marketing team

● Necessary infrastructure and hosting will be available

● Acceptance Criteria:

● Website passes usability testing

● Meets performance and security standards

● Exclusions:

● SEO and digital marketing activities are not included

By following these steps and using these tools, project managers can ensure that the
scope of the project is well-defined, communicated, and managed throughout the project
lifecycle.

What is Work Breakdown Structure?

A work breakdown structure (WBS) is a visual tool that helps break down a project into
smaller, more manageable pieces. A Work Breakdown Structure (WBS) is used to
determine the work necessary to achieve the requirements and to prepare schedules and
a cost estimate Sometimes the WBS, schedule, and a cost breakdown showing how the
price was derivedare included in the proposal.

It is a helpful diagram for project managers because it allows them to break down their
project scope and visualize all the tasks required to complete their projects.

Use of WBS In Project Management?

Making a WBS is the first step in developing a project schedule. It defines all the work that
needs to be completed (and in what order) to achieve the project goals and objectives.

A well-constructed work breakdown structure helps:

Project Planning, Project Scheduling and Project Budgeting

Risk Management, Resource Management, Task Management and Team Management

Work Breakdown Structure Example:

creating a work breakdown structure to lay down the work plan for a commercial building
construction project.

Types of WBS

Deliverable-Based Work Breakdown Structure

A deliverable-based WBS first breaks down the project into all the major areas of the
project scope as control accounts and then divides those into project deliverables and
work packages.

A deliverable-based WBS example showing control accounts, work packages and tasks.

Phase-Based Work Breakdown Structure

The phase-based WBS displays the final deliverable on top, with the WBS levels below
showing the five phases of a project (initiation, planning, execution, control and closeout).
Just as in the deliverable-based WBS, the project phases are divided into project
deliverables and work packages.

Once we chosen a deliverable-based or phase-based WBS, we can also choose between

different types of WBS diagrams.

Types of WBS Charts

Work Breakdown Structure List: Also known as an outline view, this is a list of work
packages, tasks and deliverables. It’s probably the simplest method to make a WBS, which
is sometimes all we need.

Work Breakdown Structure Tree Diagram: The most commonly seen version, the tree
structure depiction of a WBS is an organizational chart that has all the same WBS
elements of the list (phases, deliverables, tasks and work packages) but represents the
workflow or progress as defined by a diagrammatic representation.

Work Breakdown Structure Gantt Chart: A Gantt chart is both a spreadsheet and a
timeline. The Gantt chart is a WBS that can do more than a static task list or tree diagram.
With a dynamic Gantt chart, you can link dependencies, set milestones, even set a
baseline. This is the most common version in project management software.
terms used with WBS project management

Acceptance Criteria: Standards to be met to achieve customer or other stakeholder

requirements.

Budget: Expenses associated with the project, which can be broken down by deliverables
or phases.

Deliverables: The product, service or results created at various stages of the project. For
instance, in a website design project, a deliverable-based WBS would be structured
around deliverables such as URL, layout and written content. Milestones: Critical stages of
the project identified in the WBS

Phases: The various stages of a project. For instance, in a website design project, a phase-
based WBS would be structured around things like discovery, design and launch, rather
than specific deliverables.

WBS: Work breakdown structure

SCOPE VERIFICATION AND CHANGE CONTROL

Scope verification and change control are critical processes in project management that
help ensure the project stays on track and delivers the intended outcomes while
managing any changes that may arise.

Scope Verification

Scope verification is the process of formally confirming that the project's deliverables, as
outlined in the scope statement and work breakdown structure (WBS), have been
completed as intended. It involves ensuring that the project's outputs meet the specified
requirements and that they are accepted by the stakeholders.

Steps in Scope Verification

1. Inspection and Review

Compare the completed deliverables against the original requirements to ensure they
match.

Conduct inspections, reviews, or tests to validate that the deliverables meet quality
standards.

2. Stakeholder Acceptance

Involve relevant stakeholders to review and approve the completed deliverables.

Stakeholders' acceptance confirms that the deliverables are satisfactory.

3. Formal Sign-off
Obtain formal sign-off from stakeholders to acknowledge that the deliverables have been
verified and accepted.

Change Control

Change control is the process of managing and evaluating any changes to the project's
scope, objectives, or requirements. It ensures that changes are properly assessed,
approved, and implemented while minimizing scope creep and maintaining project focus.

Steps in Change Control

1. Change Request Submission

Whenever a change is proposed (e.g., new requirements, modifications), it's submitted as

a change request.

2. Change Request Evaluation

Evaluate the impact of the proposed change on the project's scope, timeline, budget, and
resources.

Determine whether the change is necessary, feasible, and aligned with project goals. 3.
Change Approval or Rejection

The project's change control board or designated authority reviews the change request. If
approved, the change is documented and integrated into the project plan. If rejected, the
reasons for rejection are communicated to stakeholders. 4. Communication and
Implementation

If the change is approved, ensure that relevant stakeholders are informed of the change
and its impact.

Implement the change as per the agreed-upon plan.

5. Revised Scope and Documentation

Update the project documentation, such as the scope statement, WBS. schedule, and
budget, to reflect the approved change.