Mmi entrepreneurship 4

375 views

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
375
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
22
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • The purpose of Project Initiation is to evaluate proposed projects and to reach a consensus on the projects to be selected. During Project Initiation, the Project Charter is presented, and the strength of a project’s Business Case and the viability of the proposed solution are evaluated. A determination is made as to whether the project is consistent with the institution’s business and/or strategic plan, and if the Project Planning (High Level) budget is affordable. The Project Charter process may actually be part of the budget cycle, serving as the justification for budget requests. In this case, Project Charters may need to be created a full budget cycle prior to the project’s anticipated initiation. Each organization has its own approach to green-lighting desired projects. There are some general principles, however, that apply to any effective evaluation and selection process: The deciding body must have enough information about the merits of the project’s Business Case and the viability of its Proposed Solution to make a meaningful evaluation. The selection process must take into consideration the project’s fit with the organizational mission and strategic plan, and be prioritized against other projects.
  • The three major processes in Project Initiation are: Develop Project Charter , where the initial business case is made; where the Proposed Solution is described, along with alternatives considered; and where the budget and resources are identified for the Project Planning (High Level) Evaluate Project Charter , where the business case and proposed solution are evaluated for moving to Project Planning (High Level) Select Project Charter , where a consensus is reached on the project’s feasibility and relative importance in comparison to other proposed projects, and a decision is formally made regarding the Project Charter
  • Develop Business Case The Business Case is one of the defining documents of the project, providing information necessary to support the decision to launch the project at the end of Project Initiation and to continue the project in subsequent phases. The Business Case must identify an existing business need and lay the foundation for developing a potential solution to meet that need. The Business Case should provide a description of the project that includes the key goals and objectives, what the project will deliver, and any other high level expectations of the project. The cost and resources of Project Planning (High Level) for implementing the solution must be estimated. The Charter should identify special funding sources available for the proposed initiative and specifically for the Project Planning (High Level). If the project is going to span multiple budget cycles, a multi-year strategy for project funding should be discussed. Develop Proposed Solution - starts with the summary of the business need (abstracted from the Business Case), defines the optimal solution to address that need, and describes how the solution fits into the organization’s business plan and/or strategic plan. Describe Alternatives Considered The proposed solution should include an evaluation of all alternatives considered , and a justification of the solution selected. It should also address what would happen if nothing was done. Any known factors (constraints) that limit the ultimate project’s execution must be listed. The most frequent constraint is the project end date. For each constraint listed, be sure to elaborate on how it limits the project and how the project would benefit from its removal. Develop Budget and Resources for Project Planning (High Level) The budget and resources for Project Planning (High Level) is required in the Project Charter. This is the budget and resources required to develop the Project Initiation Plan. If there are time and cost estimates for the overall project (expert judgment, availability of historical data on similar projects, Request for Information responses, etc.), then they also should be documented in the Charter. Develop Project Governance - the management organization that will be in place for Project Planning (High Level) to produce the Project Initiation Plan.
  • In this phase of the project the main roles involved are: Project Sponsor Project Selection Committee   Purpose         Many organizations generate multiple Charters for various new initiatives on a continuing basis; however, budgetary and other constraints allow only a fraction of those efforts to occur. Choosing the right projects – those that support the organization’s mission and assist with the implementation of its strategic plan – becomes a crucial activity, starting with an objective evaluation of proposed initiatives. The frequency of an organization’s evaluation/selection process may be dictated by many factors, including the size of the proposed projects, the vacillations of the budget cycle, and the occurrence of external mandates and internal imperatives. The level of approvals needed may vary depending on whether the project exceeds defined thresholds. Thresholds may be based on cost, involvement of more than one functional area, project needs within or outside of standards and procedures, or other areas specific to the Performing Organization.
  • Once the decisions have been made, it is imperative to document them and to explain their rationale to the Project Sponsors and other Stakeholders. One of three outcomes can occur: A decision is made to proceed with the project. In this case, a determination must be made when Project Planning (High Level) can begin. At that point a Project Manager must be assigned to the project. The funding source must be brought on board to ensure adequate funding for the project. A decision cannot be made on the project without some additional information. In this case, the specific information required for an informed decision should be documented, and communicated to the Project Sponsor, along with some guidelines for submitting the Charter again in the next evaluation/selection cycle. A decision is made to decline the Charter. In this case, a detailed explanation for the decision should accompany the message, outlining where the Charter came up short in the screening, evaluation, prioritization, and/or selection processes.
  • Important! It is Project originator (generally the Project Sponsor) responsibility to provide information that is sufficient to enable the Organization’s executive management to understand the value of your project in the written Charter. Show the benefits. Identify the targeted Customers. Explain the significance of the product. Illustrate the value at the level necessary to promote a clear understanding. Use the Charter to educate the executive management of the merits of your idea.
  • Is very useful to use a checklist throughout Project Initiation to help ensure that all requirements of the phase are met. As each item is completed, indicate its completion date. Use the Comments column to add information that may be helpful to you as you proceed through the project.
  • Mmi entrepreneurship 4

    1. 1. Project Initiation Chapter IV
    2. 2. Purpose of Project Initiation phase <ul><li>To evaluate proposed projects and to reach a consensus on the projects to be selected </li></ul><ul><ul><li>The Project Charter is presented </li></ul></ul><ul><ul><li>The strength of a project’s Business Case and the viability of the proposed solution are evaluated </li></ul></ul><ul><ul><li>Is analyzed if the project is consistent with the institution’s business and strategic plan, and if the Project Planning budget is affordable </li></ul></ul>
    3. 3. Project Initiation processes <ul><li>Develop Project Charter </li></ul><ul><li>Evaluate Project Charter </li></ul><ul><li>Select Project Charter </li></ul>
    4. 4. Develop Project Charter Develop Business Case Develop Proposed Solution Describe Alternatives Considered Develop Project Governance Develop Budget and Resources for Project Planning <ul><li>identify an existing business need and developing a potential solution to meet that need </li></ul><ul><li>project key goals and objectives </li></ul><ul><li>deliverables </li></ul><ul><li>estimation of cost and resources </li></ul><ul><li>identify special funding sources available </li></ul><ul><li>summary of the business need and the project result </li></ul><ul><li>optimal solution to address that need </li></ul><ul><li>how the solution fits into the organization’s business plan </li></ul><ul><li>valuation of all alternatives considered </li></ul><ul><li>justification of the solution selected </li></ul><ul><li>list any known factors (constraints) that limit the ultimate project’s execution </li></ul><ul><li>Budget and resources required to develop the Project Initiation Plan (time and cost estimates for the overall project) </li></ul><ul><li>Defines the management organization that will be in place for Project Planning (High Level) to produce the Project Initiation Plan </li></ul>
    5. 5. Evaluate Project Charter <ul><li>… Choosing the right projects criteria: </li></ul><ul><li>Cost </li></ul><ul><li>Time </li></ul><ul><li>Scope </li></ul><ul><li>Risks </li></ul><ul><li>Support of the organization’s mission and strategic plan </li></ul><ul><li>Required Resources and Involvement of more than one functional area </li></ul><ul><li>Project needs within or outside of standards and procedures </li></ul><ul><li>Internal and external influences on this particular project </li></ul>
    6. 6. Select Project Charter <ul><li>… Possible scenarios: </li></ul>1. A decision is made to proceed with the project Start Project Planning 2. A decision cannot be made on the project without some additional information The required information are added in order to go to the next evaluation cycle 3. A decision is made to decline the Charter A detailed explanation for the decision should accompany the message
    7. 7. Project Charter Template Project Title: Project Start Date: Projected Finish Date : Project Manager : Business Case____________________________________________________________ Objectives & Description of Deliverables______________________________________ Proposed Solution_________________________________________________ _______ Alternatives considered____________________________________________________ Budget and Resources_____________________________________________________ Roles and Responsibilities_________________________________________________
    8. 8. Project Initiation Checklist Item Description Completion Date Comments Formulate business case / need / problem and anticipated benefits     Identify project objectives and describe the project     Research potential approaches and solutions     Identify and recommend one or more chosen solutions     Document alternatives considered and why rejected     Review solution’s fit with organization’s strategic plan     Estimate costs of all resources & materials required for the project planning phase (high level)     If other estimated costs are known, include them in the Charter     Identify project funding strategies     Complete Project Charter and submit for approval    

    ×