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How Project Managers Can Prevent the Next Arch Deluxe
Jon Haverly, PMP – Garnet River, LLC.
Presentation Goals Develop an understanding of:
1. Why a great project does not always produce the right product
2. Why consumers need to be considered during Project Origination
3. Why a Project Manager’s most critical contribution occurs before the project is initiated
Provide tips for developing a convincing Business Case
Project Origination First Phase of the Project Management Life Cycle
Investment Decisions are made
Project Origination1. Identification of a Business Problem or Opportunity
2. Development of a Business Case/Project Proposal
3. Evaluation of the Business Cases/Project Proposals
4. Selection of Projects
The Business Case Used to facilitate investment decisions
Minimum needed:
Business Need (Problem/Opportunity)
What are we trying to solve?
Proposed Solution
How will we solve?
Justification (Cost/Benefit)
Why should we solve?
The Business Case Should also include:
Alternatives Considered
How else could we solve?
Stakeholder Impacts
Whose life will change?
Risks
What could prevent us from addressing the need?
Strategic Plan Alignment
Assumptions/Constraints
Business Case Evaluation Consistent evaluation criteria should be used
Typical criteria include:
Alignment to Business
Value (Costs vs. Benefits)
Criticality
Stakeholder Impact
Risks
Organizational specific criteria
Project Selection Results in:
Projects approved to move forward
Projects dropped from further consideration
Relative priorities
Consistent process
Consistent criteria
Project Origination – PM’s Role Help organizations select the right projects by:
Understanding
business needs
root causes of problem
consumers
Identifying
potential solutions
best solution to meet needs
approach and estimates
Documenting a Business Case
The Business Case
Business Need Includes
Business problem (opportunity)
Impacts to internal and external stakeholders
Baseline data – “current payment process take 3 business days and 15 staff hours to complete”
Need to uncover the root cause of the problem
Serves as basis for Business Requirements
Does not include any references to a solution
Business Need Tips
Work with business representatives and stakeholders to define this section (i.e. - not IT)
Complete this section first and seek agreement
Describe what will happen if problem is not addressed, i.e. will the impacts worsen?
Appeal to emotions
Business Objectives Address an identified need
Align with Org. Goals
List any needs not addressed by project
Are measurable
Reduce payment process to 1 business day and 5 staff hours
Maintain full vendor support (upgrades)
Comply with mandates
Business Objectives Tips
Make sure each Business Objective maps directly to an identified Business Need
There is never a business objective to create a new/updated software application
Build a new software application
Reduce payment process to 1 business day and 5 staff hours
Solutions Considered Describes
Process used to evaluate alternatives, such as
Research
Demonstrations
Proof of Concepts
Interview users of solution
Others
Each alternatives and reasons why not selected
Listed before or after Proposed Solution
Consider at least 3 solutions!
Solutions Considered Tips
Develop and reach agreement on comparison criteria before identifying alternatives
Business Requirements
Costs (development and recurring)
Necessary staff resources
Other specific considerations
Develop an Alternative Solutions Worksheet
Identify and agree on alternatives to be considered
Tips
Consumer Research/Involvement
Inversely proportionate to level of innovation
Link to the consumer
Understand the consumer
Solutions Considered
Proposed Solution Satisfies (only!) Business
Objectives and Needs
Focus on solution being proposed
Not the benefits
Not a justification
Not other solutions considered
Proposed Solution Include all aspects of solution
Training
Implementation
Documentation
Conversion
Establish Steering Committee
Decommissions
Procurement
Proposed Solution Tips
Validate the solution will satisfy all Business Objectives
Validate the solution will satisfy only the Business Objectives
Don’t be afraid to ask which objective a segment of the solution is satisfying
Complete Alternative Solutions Worksheet before this section
Make failure survivable
Stakeholder Impacts Proposed Solution causes impacts
to Stakeholders
Involve Stakeholder when developing Business Case
Internal and External to the organization
Consumers, Consumers, Consumers!
Stakeholder Impacts Need to consider
New/Improved services
Eliminated/Reduced services
Reduced staff time on process tasks
Increased staff time on existing or new tasks
Tips
Ask what is being taken away
Ask what is being pushed to someone else
Benefits Proposed Solution provides Benefits
Quantification of Impacts
Staff time savings times hourly cost of staff
Improved services
Cost Savings/Avoidance
Tips
Small benefits add up!
List Intangible Benefits (Morale, Good Will)
Costs Proposed Solution incur Costs
Need to derive Total Costs
Include:
Personal Services (Staff Costs)
Project Team (BA’s, Programmers)
Subject Matter Experts
Technical Support (Servers, Network,…)
Contract Support
Info. Security/Biz Continuity Groups
Sponsors
End Users (for items such as training)
“It takes a village to raise a project”– Jon Haverly
Costs Also include:
Non-Personal Services
Consultants
Hardware
Software
Travel
Materials
Facilities
Land
Costs Consider:
Costs from Stakeholder Impacts (services lost)
Product Development Costs
Annual Support Costs
Average or total for number of years in future
Support Contracts
Maintenance Contracts
Cost/Benefit Analysis Make your case!
Compare Quantified Costs to Quantified Benefits
Return on Investment
Payback Period
Add any additional justifications
On paper the numbers don’t look good, but…..
Risks Proposed Solutions contain
Risks
Project specific risks
Schedule - Mandated deadlines
Customers – Change
Risks Solution specific risks
Technology
Complexity
Contract
Tips
Any assumption is also a Risk
Think about customer acceptance
Writing Tips Include an Executive Summary
Keep focus on specific section
Language Matters
Complete and review in sections, such as: Need/Objectives
Comparison Criteria
Alternate Solutions
All other sections
Content Tips Don’t assume technology is the best way to solve a
business problem
Wear your enterprise hat (common solutions)
Remember
Presentation Goals Revisited Do you understand:
1. A great project does not always produce the right product?
2. Why consumers need to be considered during Project Origination?
3. Why a Project Manager’s most critical contribution occurs before the project is initiated?
Did you receive:
1. Tips for developing a convincing Business Case?
References and Recommended Reading Links Adapt, by Tim Harford
Switch, by Chip and Dan Heath
The Wal-Mart Effect, by Charles Fishman
How We Decide, by Johan Lehrer
The Upside of Irrationality, by Dan Ariely
www.walletpop.com
Questions
Jon Haverly, PMPGarnet River, LLC.E-mail: [email protected]: http://jonhaverly.blogspot.com/