Planning for Success Flashcards
Importance of the Business Case
Identify business problem or need
Funnelling of options - narrowing in on the best one to take forward though evaluation and assessment
This process produces a (theoretically) justified and optimal option
Contents of the Business Case
Three main things:
Benefits
Costs
Risks
Also
- strategic case for the project
- options appraisal
- Investment appraisal (cost benefit analysis)
- known constraints
The Project Option:
High level description of scope Estimated costs Target schedule Assumptions Dependencies Success criteria Impact on BAU
Business Case Roles
Sponsoring Group (Steering Group) represent the org and oversee the development of the BC with the sponsor. In due course will approve the BC.
Sponsor - oversees BC preparation. May have authority to approve.
PM - may be the penholder, or lead a team to prepare the BC if it is large enough.
Suppliers - provide detailed knowledge e.g. specifications
Users - provide input on products and benefits (initial requirements)
Subject matter experts - e.g. procurement specialists advise as needed.
External Consultants - can provide expert support
Business Case evolution
At Concept Stage the BC is “outline” or high level.
Primary justification for the project and initial estimates.
During Definition the BC becomes more detailed and comprehensive as the PMP is prepared.
At Development stage the BC is the basis for evaluation of progress. BC will be reviewed and updated if needed at stage reviews.
During handover and closedown the BC is the basis for acceptance and evaluation of success
(Benefits realisation) is similarly measured against the BC
Project Success
Sponsor: tasked with the realisation of benefits
PM: deliver the outputs in line with the agreed success criteria
Definitions: Success Criteria Benefits KPI Success Factors
Success Criteria: agreed measures by which the success of the project is judged
Benefits: quantifiable improvement resulting from the projects, seen as positive by the stakeholders.
KPI - criteria by which progress is measured during the project
Success Factors - practices which increase the likelihood of success
Benefits Management Process
Identify, structure and agree - set out what they are and how when they will be realised,
Monitor and Manage - according to a plan, review the benefits at review points and account for changes
Realise - implement change and manage transfer to BAU
Investment Appraisal techniques
Payback Method - when will net income equal investment? Simple but does not take account of changing value of money or value after payback.
Net Present Value - relies on adjustment (discount factor) to calculate the net value of the income for comparison against the net investment. More sophisticated and potentially more useful but relies on accuracy of discount factors.
Internal Rate of Return - uses two discount factors to find the point where the NPV is 0 expressed as a discount % - the maximum discount before a project ceases to have a positve BCR. Complex but addresses vulnerability of using a single discount rate.
Managerial Judgement - may at time outweigh a financial calculation and choose to proceed even with a negative BCR.
Information Management Plan - key elements
Scope
Roles and Responsibilities
Tools and Techniques
Process
Audit
Information Management Stages
Information:
Collection - all relevant and necessary information
Storage - consider backup, access, security, version control
Dissemination - who neeeds information and when. Relate to config management.
Archiving - how long to retain fro and how to catalogue
Destruction - when can/should the info be destroyed?
Reporting - reports need to be accurate, relevant, clear and timely. Is there a reporting cycle?
Project Management Plan purpose
Sets out scope, roles and responsibilities (PBS, WBS, OBS)
Used to communicate this to stakeholders
Provides a baseline for measuring progress and variation
Forms a contract between PM and PS
Basis for continuity - changing staff/roles.
Finalised at end of definition stage bur prepared in parallel with BC.
Tool for defining the project and then executing it (managing this execution)
Project Management Plan Contents
Why: recap of BC or reference to BC.
What: Scope of project. Spec of deliverables, acceptance criteria
Who: OBS/RAM. Delegations, role descriptions.
How Much: Budget, forecasts, cost management and earned value processes.
When: Schedule. Precedence diagram, resource histograms, gantt charts, life cycle.
How: Methods, tools, templates. Risk, quality, change, procurement, communications, H&S plans. (policies)
with related logs, libraries etc.
Using the Project Management Plan
Communications tool
Regularly reviewed
Can be linked to ancillary documents such as logs
Any changes must be conveyed to audience
Basis for audits and reviews.
Estimating
Estimating accuracy increases as the project proceeds.
Refine estimates as the project proceeds to improve accuracy of forecasts, schedule, risks and maintain stakeholder confidence.
Estimates: difficulties
Subjectivity - rely of knowledge , skills and experience. Bias and prejudice.
Assumptions - all techniques rely on some assumptions and they may be inaccurate. Should be documented.
Uncertainty over implementation - estimator may not be the one to do the work.
Risks - what risks need to be allowed for? Source of any contingency should be acknowledged.
Lack of previous data - new types of project will be more uncertain.
