Project Initiation Document


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Identification of all areas contributing to problems and determining scope of projects are challenges for many organizations. A method to improve the outcomes can help reduce risk - find out how!

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Project Initiation Document

  1. 1. Problem-Solving 101 Initiating Projects
  2. 2. Background and Expectations• Active engagement increases learning and outcomes – Ask questions!• The material presented should be considered an outline, a framework – It will need adaptation to match your specific organization’s needs• Continuous improvement applies to all areas of a business – The concepts presented have been refined over 15 years – Feedback on what works/doesn’t work for you is requested!
  3. 3. Why are we here? Successful projects are rareImproving project outcomes is critical to careers and organizational sustainability!
  4. 4. What’s the Problem?• Organizations continue to increase integration of processes, technologies and staff roles in the name of “do more with less”• As organizations increase integration, understanding the relationships between roles, technologies and processes become complicated – Defining root-cause problems and project dependencies becomes highly complex• Result – Projects are initiated and scope, budgets and timelines modified in-flight
  5. 5. What’s the Solution?• Focus efforts on the front-end stages of a project and ensure the project team, leadership and stakeholders understand the problem – In the front-end of a project fewer resources are engaged, it’s easier to change direction and the cost impact is minimized• Having a standard framework with templates, methods, and tools helps organizational learning and outcomes – Adopting a standard template to communicate project goals, scope, organization, etc. is a basis for continuous improvement – Individuals and teams can be trained on use of tools to improve skills – Teams can benefit by using checklists to help ensure comprehensive understanding of organizational needs before initiating and planning a projectNote: Templates need to be adapted for each company; organizations vary inuse of terminology, critical focus areas (risk, budget, …), etc.
  6. 6. Before you climb the ladder….. makesure it’s leaning against the right wall! Today’s presentation is focused on the project initiation
  7. 7. Use of a Project Initiation Document (PID) can help reduce risk• The contents provide a checklist to ensure critical project areas are considered during planning• Quality Management methods and “lean” tools can help by increasing rigor in identifying root- cause problem and defining scope – The “Five-Why’s” method is often helpful getting input from a range of team members – Fish-bone and SIPOC/COPIS tools are proven to be effective to decompose processes and understand dependencies
  8. 8. Templates need to be adapted for your organization PMBOK – 4th Edition Leading practice is to consider all project management areas
  9. 9. Sample Template – PID (Project Initiation Document)• Initial sections define the business problem, its impact and the project objective – QM tools are leveraged through-out the template to ensure teams focus on eliminating non-value added activities.• After the problem is defined, the scope of the solution is confirmed and “ideal-state outcomes” are defined – Focusing on the future, “ideal-state” establishes a vision which is helpful in managing organizational change• With the business problem and ideal state solution defined, the basis is set for risk identification and business case development – Identify the costs associated with the problem – Identify the benefits of the ideal state process helps – Include quantifiable and non-quantifiable costs and benefit
  10. 10. Contents• Problem Statement and Impact• Project Objective• Ideal State Process• COPIS• Scope• Risks and Dependencies• Project Organization Structure• High-level Timeline• Business Case
  11. 11. Problem Statement • The problem statement identifies the current pain and challenges it creates for the organizationProblem• Development of product (services) roadmaps is inconsistently performed across different functionsImpact• Lack of a road-mapping process is inhibiting revenue growth and eroding value – We are too slow to vet and commercialize our very best ideas – We are failing to make big, bold bets and instead fragment resources on sub-scale improvements – We fail to update roadmaps when plans change – We lack tight coordination across initiatives resulting in confusion and waste; half-hearted initiatives that go nowhere, duplicative work, reinventing the wheel and lack scale advantages – We lack consistent roadmap formats – roadmaps have various timelines – We’re unable to prioritize across roadmaps because lack of standard format creates communications problems across the groups • Outlining the impact of the problem helps ensure department and process complexities are understood
  12. 12. Root Cause Diagram • Facilitate meetings to decompose problem and understand scope • Use Root-Cause tools (Ishaikawa) to visualize relationshipsNote: Use the template available in Visio, simple to prepare
  13. 13. Project Objective Statement• Design and implement a corporate-wide standard business process for managing and presenting roadmaps across Regions, and business areas (services, products, etc.) to deliver 30-35% faster output – In parallel with business process design, select IT Tools needed to automate the common business process for roadmap development • Objective statements communicate the criticality of the project and impact to the organization
  14. 14. Ideal State Process• The product roadmap is the front-end of the Phase Management Planning process and is the essential element in translating the business strategy into major programs to be pursued. The output is reviewed in a meeting that is conducted every 3-4 months. Marketing “owns” the Planning process and leads the meeting.• In each meeting the overall product portfolio is reviewed as well as the man-power and development capacity needed to meet the target dates. • Develop an ideal state definition to set the end-state vision, success criteria and helps with organizational change management
  15. 15. Use COPIS/SIPOC* to identify customer and supplier processesIn this example, the focus is processes involved in road map development(AKA, the problem) * Customer-Output-Process-Input-Supplier, Or Supplier-Input-Process-Output-Customer
  16. 16. Sample Cascading COPIS Supplier (s) Inputs Process Outputs Customer (s) Voice of Customer Phase Management Resource Balanced Outbound MarketingCustomer Requirements Process Portfolio and Sales Updated PortfolioInbound Marketing Product Roadmap Inbound Marketing Roadmap Approved and funded Phase ManagementR&D Engineering Strategic Technologies development projects Plan Supplier (s) Inputs Process Outputs Customer (s)Service and Product Portfolio of Product/Service Resource Balanced Phase Managementstrategy Proposed Projects Roadmaps Portfolio – LOB specific PlanCompetitor Actions VOC and Customer Integrated Roadmap – Capacity Planning andand Offerings Experience data cross LOB portfolio selection Cost/ Revenue C/V/P models projections for each projecting cost andCustomer Input project revenues from new products
  17. 17. Scope • Scope has multiple dimensions; defining the areas helps ensure completeness and can be used• Geographic Scope as a check-list – Which regions and/or design centers are included• Functional Scope – Which business functions and processes are included• Technical Scope – Which IT Systems are included
  18. 18. Scope Is/Is Not • Including a definition of what is and is not in scope Is Is Not drives out ambiguity• Detailed list of specific • Detailed list of specific items to be addressed items NOT to be addressed
  19. 19. Solution Approach• Define business process and requirements• Evaluate current processes and tools• Review and confirm VS fit with requirements• Finalize Cost/Benefit/ROI model• Pilot Solution in one area• Refine implementation plan to align with IT Implementation of VS and roll-out • Development of a solution approach early in a project requires the team to consider all areas needed – reducing risk of future surprises. Note: Detailed project plans are required, these are created in later steps
  20. 20. Risk and Dependencies Risks Dependencies (Process and Tool) (Process and Tool)• Identify risks that would limit the • Identify up-stream or down- success of the ideal state stream dependencies in either business processes or tools• Identify risks that would impact the expected benefit • Identify external dependencies (software providers, suppliers, etc) • Definition of risks and dependencies ensures the team considers challenges that may develop; risks that are identified can be planned for in schedule and budget
  21. 21. Project Organization Chart Business Sponsor TBD • Preliminary definition of the project team structure and resource needs and can help reduce contention for resources. • Additionally, outside resource needs Project Manager are identified which help with TBD business case development Process Design Team VS Configuration Implementation Consumer SBU Team Team Service SBU Consumer SBU Consumer SBU Service SBU Service SBUp.21
  22. 22. Project Timeline – TBD (Depends on scope and resources) Q1 Q2 Q3 Q4Bus. Case ApprovalProject PlanningProduct ConfigurationTesting and TrainingPilot DeploymentCompany-wide rollout • Understanding scope and resources a preliminary schedule can be developed. • The schedule can help set/manage expectations and drive discussions on trade-offs involving budget/resources (if needed)
  23. 23. Business Case One Time Benefit One Time Benefits Recurring Fees Cost Categories Recurring Fees Fees Yr1 Yr2 Yr3 Yr4Software Costs Yr1 Yr2 Yr3 Yr4 Increased Efficiency Manual Process Application Software $ 100,000 $ 17,000 $ 17,000 $ 20,000 $ 25,000 Elimination $ - $ 20,000 $ 100,000 $ 300,000 $ 500,000 Cycle-time reduction $ - Database Software $ 25,000 $ 4,250 $ 4,250 $ 5,000 $ 6,250 Other (decribe below) $ - Additional 3rd Party $ 5,000 $ 850 $ 850 $ 1,000 $ 1,250 Subtotal $ - $ 20,000 $ 100,000 $ 300,000 $ 500,000 Software Subtotal $ 130,000 $ 22,100 $ 22,100 $ 26,000 $ 32,500 Headcount ReductionHardware Costs Austin $ - $ 100,000 Application Server $ 50,000 $ 2,500 $ 5,000 $ 7,500 $ 12,500 Design Centers $ - $ 250,000 $ 500,000 Other Subtotal $ - $ 100,000 $ 250,000 $ 500,000 $ - Subtotal $ 50,000 $ 2,500 $ 5,000 $ 7,500 $ 12,500 Infrastructure BenefitsInfrastructure Costs Network $ - $ 5,000 $ 5,000 $ 8,000 $ 8,000 Eliminate CSS Support $ 10,000 Other $ - Consolidate Number of Subtotal $ - $ 5,000 $ 5,000 $ 8,000 $ 8,000 Tools $ 500,000 Other $ -Implementation Costs Subtotal $ 510,000 $ - $ - $ - $ - Internal IT Staff $ 150,000 $ 50,000 $ 52,500 $ 55,125 $ 57,881 Grand Total $ 510,000 $ 120,000 $ 350,000 $ 800,000 $ 500,000 Internal Business Staff $ 250,000 Software Services $ 25,000 4 Yr Total $ 2,280,000 3rd Party Systems $ 500,000 $ 50,000 $ 50,000 Integrator Subtotal $ 925,000 $ 50,000 $102,500 $ 55,125 $ 107,881 ProjectedGrand Total $1,105,000 $ 79,600 $134,600 $ 96,625 $ 160,881 Return : 1.454 Yr Total $ 1,576,706
  24. 24. How the PID Improves Project Outcomes PMBOK Area PID Alignment1. Scope 1. Confirms Scope2. HR 2. Defines the Organization Structure3. Procurement 3. Identifies if outside resources/tools are expected to be needed4. Quality 4. Baseline for measuring scope and final project outcome vs plan5. Communications 5. Platform for communications with project team and6. Risk stakeholders7. Budget/Costs 6. Utilizes methods to improve critical thinking and early ID of8. Time risks9. Integration 7. Contains initial cost/benefit projection as well as non- quantifiable factors 8. Provides high-level estimate which can help sequence with other projects 9. Specifically helps identify key areas and integration points between processes and departments – root cause and COPIS
  25. 25. Thank you!