IT Project Management Framework INDENTIFICATION
Identification
Planning
Initiation
Closeout
Execution & Control © Copyright 2017 Visual Paradigm | All Rights Reserved 1
Overview
Identification and Selection Process The first and one of the critical steps in the project cycle management Affect the whole process including sustainability of the project after completion and transferring to operational phase. Often overlooked in the process for capturing the actual needs of the beneficiaries.
2
Identification
Identification
Planning
Initiation
Closeout
Execution & Control
• Typically, a project is proposed by an individual who identifies a project-worthy need. • This phase involves evaluating and deciding if a proposed project should be undertaken, based on the studying of factors like costs, benefits, risks, and etc.
3
Identification Statement of need / opportunity Cost estimate Estimated timeframe
Project Proposal
Major risks
Project Sponsor • Responsible for the project proposal, or sometimes referred to as a business case. • Document that describes what needs to be done. • Why is the project worth doing and the overall strategies that enable the project to be accomplished. • Should not hesitate to recommend cancellation of the project if the business case no longer justifies the project.
4
Identification Project Proposal Project Sponsor
• Generally, a project proposal contains contents like, the statement of need that describes the purpose of the project. • This could be a business problem being solved or an opportunity for an improvement from a customer’s perspective. • Cost estimate of various possible solutions, along with a recommendation in the end. 5
Identification
Cost estimate of various possible solutions, along with a recommendation in the end.
A high level time frame of the project that lists out the major milestones of the project, which covers possibly only the start and end of project, and other known and foreseeable events.
And a list of risks to which the project will be exposed.
6
Identification
Project Sponsor
Business Analyst
Project Proposal • Although the project proposal is the responsibility of the project sponsor, the preparation is often a combined effort of the sponsor, business analyst and other related parties. • Sometimes, the business analyst is the one who writes the project proposal.
7
Identification
Costs
Costs
Benefits
Benefits
Approval
Cancellation
• So once the proposal is written, the project sponsor evaluates it to ensure project costs and benefits are weighed before a commitment of resources is made and that the project to be taken will create value to the organization. • If unfortunately the proposal failed to justify the project, the project sponsor will cancel the project, and that’s the end of the story.
8
Phase Activity Summary Activities Cost Benefit Analysis Risk Assessment
Deliverables Cost Benefit Analysis Risk Assessment
Initial Project Complexity Assessment
Project Complexity Assessment
Develop Project Proposal
Project Proposal
Approve / Reject Project Proposal
9
Cost Benefit Analysis
Assessment of cost and benefits related to each solution.
A B
Cost & Benefits
C 10
Cost Benefit Analysis
A
Cost & Benefits
• Cost Benefit Analysis beings with the identification of possible solutions. • Based on the project description, statement of business need and business objective(s), identify a range of solutions that can be considered to address the identified need.
11
Cost Analysis One Time Costs
One-time costs are also known as capital expenses, which are not incurred on regular basis. And once incurred they give long term benefit.
On-Going Costs
aka Recurring Costs
On the other hand, on-going costs are regular costs that incur on regular basis.
12
Cost Items Examples One-Time
On-Going
Facilities
Maintenance Services
Equipment
Security
Hardware Purchasing
Data Storage and Archiving
Software (License) Purchasing
Support Services
Training Personnel
13
Evaluating Cost A
B
C
Facilities
5,000
3,000
2.000
Equipment
1,500
5,500
2,500
Software
2,000
1,500
600
Hardware
1,500
1,500
3,000
10,000
11,500
8,100
Total
Once you’ve identified the cost items, estimate the costs required for each item, for each possible solution.
14
Benefits Analysis Tangible
Intangible
• Tangible benefits are benefits that can be measured and quantified. Typically it refers to a reduction in cost and an increase in potential revenue. • Intangible benefits are non-quantifiable improvements like risk, ease of use, brand equity, etc.
15
Evaluating Intangible Benefits A
B
C
Facilities
20%
5,000
3,000
2.000
Equipment
30%
1,500
5,500
2,500
Software
10%
2,000
1,500
600
Hardware
40%
1,500
1,500
3,000
100%
10,000
11,500
8,100
Total
• To evaluate the intangible benefits of possible solutions, a weighted evaluation will be performed. • Firstly, identify the criteria as needed. In this example we have enhanced user experience, increased customer satisfaction, compliance and brand equity. • And choose a weighting between 0 and 100% for each of the criteria. Make sure the total weighting is 100%. • Then, rate each solution between 1 and 5 for each criteria, with 1 as the lowest rating, 5 as the highest. • Finally, the weighted average rating for each solution will be obtained. 16
Example: Solution Recommendation
Recommendation: Based on the cost-benefit analysis, the solution to re-engineer the existing system is recommended.
Justification: The financial costs of re-engineering the existing Octopus LMS is lower than adopting a 3rd party library management solution, both for one-time and on-going cost. Although the tangible benefits are equal, the intangible benefits outweigh the intangible benefits of adopting a 3rd party library management solution.
17
Solution Recommendation You can provide more detailed information related to the cost and benefits analysis for recommending a solution:
Cost
Benefit Greater Income
New Equipment Training
Deliverables required
Assumptions & Changes Requested
Faster Operations Less Waste
Present State
Desired State
• State why the preferred option was chosen by summarizing its benefits and costs
• State assumptions that have been made in choosing the preferred option
• Explain why the benefits outweigh the costs involved.
• Outline the business process changes required to adopt the solution.
18
Risk Assessment Project always carry risk, i.e. uncertainty
New Partner
New Process
New Technology
Project Risks
Availbility of Resource
Stakeholder Commitment
System Integration
To perform to risk assessment: The benefits of the proposed project will be judged to be worth the risks involved in undertaking it. 19
Type of Risks Typically there are two main sources of risk:
Deal with something new • Adopt new technologies, to work with new partners, and to apply new processes or working procedures. • “New” implies uncertainty and likely presence of risk. Other common source of risk is dependencies • Availability of resource • Need to integrate with another system • Need of stakeholder commitment, etc
20
Example: Project Risks
The new system may not be compatible with the old CRM The severe weather condition may slow down the progress The holiday leave of CIO in Feb may affect decision making The cost estimates may be inaccurate due to the fluctuation of exchange rate
Risk description should properly defined and it’s specific, clear and have no ambiguity.
“The new system may not be compatible with the old CRM.” • This risk points out the possible problem clearly. • Risks like this one helps decision makers determine the consequence and the severity of the risk. • And if it’s decided that the project will be undertaken, the team can identify the strategies and actions to resolve and mitigate the risk.
21
Poor Example: Project Risks
“Inaccurate cost estimate” • This is only a statement, or perhaps something that had happened or happening. • A risk must identify the uncertainty that lead to the risk.
“The project may run out of budget” •This is again a statement that describes a possible project outcome. It doesn’t describe any risk. • By reading this statement we have no idea under what circumstance the project would run out of budget. • No one can derive meaning action or make any decision just by reading this statement.
22
Security
Besides the identification of project risks, risk assessment also involves the studying of security considerations.
You need provide a brief summary of the impacts and concerns related to IT Security, such as passing information between systems, authentication, etc.
23
Example: Security Considerations
The following security considerations will be made throughout the project: Initiating: • Does security impact the cost/benefit of the project or potential solution? • Will there be any security deliverables?
Planning: 1. Consider the security aspects of work breakdown, schedule, cost and resources 2. Encryption to data and avoid public access for sensitive and confidential information 3. ...
Execution and Control: 1. ... 2. ..
24
Initial Project Complexity Classification One Size Doesn’t Fit All
When it comes to project management: • Very often, projects with bigger investment, higher expectation, and larger customer base are considered to be more complex, and require more attention in project management. • Our Framework has a classification mechanism that helps identify your project’s complexity.
25
Understanding Project Complexity Understanding project’s complexity helps determine: Activities to perform
Deliverables required
The level of complexity of a project determines the activities required to perform. • A simple tic-tac-toc game would not be required to perform management activities for budget, procurement, staffing resources, etc • Some activities will not be required for smaller project and the related process deliverables will be skipped as well. 26
Project Complexity Questionnaire
1. What is the estimated total project cost?
Less than &100,000
2. Has sufficient project funds been budgeted and allocated?
Funding not budgeted
3. How much confidence is there in the expenditure and funding projections?
Total score:
50% - 85%
267
Project Complexity:
The Project Complexity Questionnaire helps you determine your project’s complexity.
27
Summary of Complexity Factors Listed here are the factors that constitute the assessment of project complexity. Questions in the questionnaire are set based on these factors.
Costs, funding and budget Project team attributes and personnel commitment
most heavily weighted
Project impacts Scheduling, dependencies, and duration Novelty of solution Degree of end user involvement Data conversion need
29
Project Complexity Questionnaire 318 High
1. What is the estimated total project cost?
Less than &100,000
2. Has sufficient project funds been budgeted and allocated?
203
Funding not budgeted
Medium 3. How much confidence is there in the expenditure and funding projections?
50% - 85%
119 Low Total score: Project Complexity:
48
267
High
Basic
By answering a set of complexity questions, a complexity score will be obtained, which determines the classification of project complexity. 28
Summary of Complexity Factors
Project complexity classification takes place in the Identification phase
Initial Classification Identification
Questions will be based on those factors above
Revisit Initiation
It will be revisited later in the Initiation phase, by the project manager.
30
Summary of Complexity Factors Identify Funding Status Identify Risks Basis and criteria for the project manager appointment
Initial Classification Identification
Revisit Initiation Performed by Project Manager Determine activities and deliverables required
31
Develop Project Proposal Sometimes referred to as a business case, is a document to describe: • What needs to be done. • Why is the project worth doing. • Overall strategies that enable the project to be accomplished. Approved
Initiation
Project Proposal Project Sponsor Rejected
End
By the end of the Identification phase, the project sponsor evaluate the proposal and decide whether to approve it or not. • If approved, the project is said to be identified. The initiation phase will then begin. • If rejected, the project will be terminated. 32
Contents
Project Proposal Project Summary Description of Project Initiator / Sponsor’s roles and responsibilities Customers and Final Deliverables Project Approach Resource Requirements Project Success Criteria Critical Success Factors Recommended Solution Project Risks Overview Project Complexity Assessment
We will give you a quick run down of these contents 33
Project Summary Project summary provides a description of the project and the business needs it intends to fulfill. It consists of three parts.
Project Summary
Project Description • An overview of the history behind the project. • The description of requests made by the project sponsor underlying the need for an IT project.
Statement of Need or Opportunity
Business Objectives(s)
• Describe the purpose of the project. This could be a business problem being solved
• The desired result produced by a project that answers or resolves the business problem.
• Or an opportunity for an improvement from a customer’s perspective.
• Define the specific business objectives of the project and correlate them to the strategic
• The business problem can be a question, issue, or situation, pertaining to the business, which needs to be answered or resolved.
34
Project Initiator vs Project Sponsor Project Initiator
Project Sponsor
Initiate new project
Assign an initiated project to project manager
May not have any project responsibility
Support the project until the end
May not involve actively in project
Has the authority to overcome obstacles Approves project proposal & project charter Take part in project acceptance
The role of project initiator is to initiate a new project to fulfill someone’s needs. It is not a formal role, in fact, any person who suggests the need of a project is a project initiator. Such a role may not even have any responsibilities nor involve actively throughout the project management lifecycle.
Once the project has been initiated (by project initiator), project sponsor take the role to assign the project to the project manager And to support the project continuously until the project is complete. Own the authority to overcome major obstacles to completing the project, which includes: • Defining project goals, securing resources, and resolving conflicts • Approve the project proposal and project • Provide the formal sign-off for acceptance of a project’s final deliverable(s).
35
Customers Customers
• The person or organization who will pay for the final deliverables that satisfies an unmet need.
Beneficiaries
• Person or organization who will benefit from the value created by the final deliverable. • He/she/they may not be the one to pay for it.
36
Final Deliverables Final deliverables are the key outputs of the project, expected to be ready by the end of the project.
Project
Deliverable
Deliverables can be: Software Product
IT System
Major Function
Process
Resource Requirements Examples Funding Customer Support (e.g Availability of customer representative) Facilities (e.g Meeting facilities) Equipment / Device (e.g Smartphone) Software Tools (e.g License of IDE)
Note: Although detailed resource requirements will be identified in subsequent phases, it is important for the project proposal to include the level of detail sufficient for the authorizing party to make sound judgments about the appropriation of resources. 37
Project Success Criteria Project success criteria are the principles or standards used to determine or judge project success While it seems obvious that to deliver what the
Project Success =?
customer want on time and within budget would be considered success, in practice there are usually way more criteria in determining project success.
Workable product On-time project delivery Excellent user experience And perhaps more‌
38
Critical Success Factors Factor A
Factor B
Factor C
Contributes
Project Success
• One customer may be willing to sacrifice features for a quicker availability of solution. • Another may see the completeness and stability as the key criteria, and is willing to extend the project period to achieve these. • The customers in both cases get what they want and thus, both are considered a success.
39
Example: Critical Success Factors
Product innovation capability Testing talent Commitment from key stakeholders Patent protection
Ask Some Questions Like: • Whether the team can generate innovative and creative ideas that the user would look for. • Whether the team has the required skills in testing the end product. • Are the stakeholders willing to commit? A lack of stakeholder commitment may lead to a lot of re-work. • Is patent protection a necessary in securing the long term success of the project?
For Example: • Let’s say if you are going to develop an Android application. Are all testing resources capable in configuring a test environment and conducting a thorough testing?
40
Project Success Criteria vs Critical Success Factors Project success criteria and critical success factors are often used interchangeably but they refer to two different concepts.
Here Are Their Definitions:
Project Success Criteria Principles or standards that will be applied to determine or judge project success, e.g. completion of certain deliverable, performance indicators, the need to deliver works within a specified time and cost constraints, etc
Critical Success Factors Conditions, capabilities, events, and circumstances that contribute to project success, e.g. commitment from project sponsors, full-time staff assignment, Smart device design and development expertise, patent protection, etc
41
Summary Understanding the objective of the Identification Phase The core activities:
• Cost Benefit Analysis • Risk Assessment • Initial Project Complexity Classification • Develop Project Proposal By the end of this phase, a project proposal will be developed. The project sponsor evaluates it and decide whether to accept the proposal or to reject it. If the proposal is approved, the Identification phase ends, and the initiation phase begins.
42
NEXT Closeout
Planning
Identification
Initiation
Execution & Control
SEE YOU THERE!
43