INITIATING
PROJECTS
Module 2
HOW TO GET A PROJECT
STARTED?
The most important question you
should ask yourself when you start a
project is “What is this project trying
to achieve and why?” This question
will help you to define the scope of a
project and the desired outcome
INITIATION PHASE
The first phase of a project is also called
“Initiation Phase” in project
management and the goal of this phase
is to define the desired outcome which
will be outlined in the “Project Charter”
and the “Project Scope Statement”.
THE PROJECT CHARTER
The Project Charter is a document that
should provide answers to the following
questions:
What is this project going to achieve?
What is the business case for doing it?
What is the time frame involved?
Who is going to sponsor it?
Who is going to manage it?
These are the most important question in the
“Initiation Phase” which will be revised at
the start of each following phase. The
answers to these questions should be
summarised in the Project Charter.
The most important function of this document
is that it ensures that everyone involved is in
agreement about what the project is going to
deliver and that no one has any false
expectations.
THE PROJECT SCOPE STATEMENT
The Project Scope Statement details the
project deliverables and describes the major
objectives, including measurable success
criteria for the project. A scope statement
should be written before the statement of
work and it should capture, in very broad
terms, the product of the project.
For example,
‘Developing a software-based system to
capture and track customer orders.’
A scope statement is an agreement that
defines the work of the project and the
customer’s business objectives. It can
help you identify changes in scope after
the project has started and help you
plan for any modifications or
adjustments that might be needed as it
progresses.
Remember, defining the scope of a
project is absolutely critical in project
management because of the impact it
has on time, cost, and quality.
Consequently, it must be specified as
early as possible even though this will
be subject to agreed changes later on.
SELECTING PROJECT
STRATEGICALLY
Given that the organization has an
appropriate mission statement and
strategy, projects (Multiple) must be
selected that are consistent with the
strategic goals of the organization.
PROJECT SELECTION
CRITERIA AND MODELS
Project selection is the process of
evaluating individual projects or groups
of projects and then choosing to
implement some set of them so that the
objectives of the parent organization will
be achieved.
Only rarely will a project manager be
involved in the process by which
projects are selected for inclusion in the
set of projects the parent organization
adopts for investment.
MODELS
To deal with project selection we use
models.
We need such models because they
abstract the relevant issues about a
problem from the mass of detail in which
the problem is embedded—reality is far
too complex to deal with in its entirety.
Such models can be used to
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limited capital resources
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Models may be quite simple to understand, or
they may be extremely complex.
If the input data for a model are not known
precisely, we often use probabilistic
information; that is, the model is said to be
stochastic rather than deterministic.
Again, in general, stochastic models are more
difficult to manipulate.
WHEN A FI M CHOOSES A PROJECT SELECTION MODEL,
THE FOLLOWING CRITERIA, ARE MOST IMPORTANT
1. Realism
2. Capability
3. Flexibility
4. Ease of use
5. Cost
6. Easy computerization
Q-SORT METHOD
NUMERIC MODELS:
PROFIT / PROFITABILITY
Payback Period (PB)
Discounted Cash Flow (NPV)
Internal Rate of Return
Profitability Index
Other Profitability Models
NUMERIC MODELS:
PROFIT/PROFITABILIT
ADVANTAGES OF PROFIT
MODEL
DISADVANTAGES OF
PROFIT MODEL
NUMERIC
MODELS :SCORING
Unweighted 0-1 Factor Model
Unweighted Factor Scoring
Model
Weighted Factor Scoring Model
Constrained Weighted Factor
Scoring Model
NUMERIC MODEL: SCORING
UNWEIGHTED 0–1 FACTOR MODEL
UNWEIGHTED FACTOR
SCORING MODEL
The second disadvantage of the 0–1
factor model can be dealt with by
constructing a simple linear measure of
the degree to which the project being
evaluated meets each of the criteria
contained in the list.
The column of scores is summed, and
those projects with a total score
exceeding some critical value are
selected.
WEIGHTED FACTOR
SCORING MODEL
When numeric weights reflecting the
relative importance of each individual
factor are added, we have a weighted
factor scoring model. In general, it takes
the form
EXAMPLE—THE CHOICE OF AN
AUTOMOBILE FOR PURCHASE.
PROJECT PORTFOLIO
PROCESS(PPP)
Portfolio refers to a collection of
projects,
programs, subportfolios, and operations
managed as a group to achieve strategic
objectives
Although, selection of a project in competition
with other projects is usually talked about, in
reality organization typically maintains a
portfolio of projects, and try to keep a proper
balance among this portfolio.
Misaligned portfolio
PPP SERVES FOLLOWING
PURPOSE
STEPS IN PPP
Step 1: Establish a Project Council
Members of the council
STEP 2: IDENTIFY PROJECT
CATEGORIES AND CRITERIA
In this step, various project categories
are identified so the mix of projects
funded by the organization will be
spread appropriately across those areas
making major contributions to the
organization’s goals.
In addition, within each category,
criteria are established to discriminate
between very good and even better
projects
Aggregate Project Plan
Step 3: Collect Project Data
Step 4: Assess Resource Availability
Step 5: Reduce the Project and Criteria
Set
Step 6: Prioritize the Projects within
Categories
Step 7: Select the Projects to Be Funded
and Held in Reserve
Step 8: Implement the Process
PROJECT SPONSORS
The project sponsor is that person or
group who owns the project. Every
project has one. They are the reason for
the project. While they don’t manage
the day-to-day operations of a project,
they are above the project manager in
terms of project hierarchy
According to the
Project Management Body of Knowledge
(PMBOK), the project sponsor is “a person or
group who provides resources and support for
the project, program or portfolio for enabling
success.”
The project sponsor can vary according to the
project. For example, a government project is
going to have a state official as project
sponsor who will work with the construction
company’s project manager. However, in an IT
project, the project sponsor might be the chief
information officer.
DUTIES OF PROJECT
SPONSOR
Initiation Duties
Planning Duties
Implementation Duties
Closing Duties
CREATING CHARTER
It helps inform
everyone in the
team what they are
in charge of and
what needs to be
done.
WHAT IS A PROJECT CHARTER?
The project charter is a document that
lays out the project vision, scope,
objectives, project team, and their
responsibilities, key stakeholders, and
how it will be carried out or the
implementation plan.
It helps define the level of authority of
the project manager and the direction of
the project.
A PROJECT CHARTER
Describes the purpose and the
outcomes of the project
Legally authorizes the start of a project
Helps keep track of project deadlines
Helps identify constraints and risks and
define preventive measures
Outlines a general overview of the
budget
Helps align the project goals with the
interests of the stakeholders
PROJECT CHARTER VS
PROJECT PLAN
The project charter is a high-level
initiation document that consists of only
a few pages. It lists the project
objectives, scope, vision, team, and
their responsibilities and stakeholders.
A project plan, on the other hand, is a
detailed document that describes how
to accomplish the project objectives. It
elucidates the project deliverables,
action plan, the required resources, and
milestones.
HOW TO DEVELOP A
PROJECT CHARTER
1. Identify the Project Vision
2. Identify the Stakeholders and the
Customers
3. Create an Organizational Chart
4. Define Project Milestones
5. Create a Resource Plan
6. Set the Budget for the Project
7. List Down the Dependencies,
Constraints, and Risks
8. Lay Out the Implementation Plan
CHARTER TEMPLATES
CHARTER TEMPLATES
CHARTER TEMPLATES
EFFECTIVE PROJECT TEAM
STAGES OF TEAM
DEVELOPMENT
Forming
Storming
Norming
Performing
Adjourning
TEAM DYNAMICS
Team Cognition
Team Cohesion
Team Conflict