PROJECT

INITIATION

Lecturer: Dr. oec., prof. Tatjana Tambovceva PROJECT INITIATION

© Dr.oec., profesore Tatjana Tambovceva © Dr.oec., profesore Tatjana Tambovceva 2

How Projects Come to Be

 Project selection can be a difficult process, Defining/Scoping

Scoping the
especially when there are a large number of theProject
Project
potential projects competing for scarce dollars. Developing the
Plan
 Some selection methods are highly intuitive; others
Launching the
try to add rigor through more scientific selection
Project
processes. Monitoring &
Controlling
Closing Out the
Project

© Dr.oec., profesore Tatjana Tambovceva 3 © Dr.oec., profesore Tatjana Tambovceva 4

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 Initiation/ definition Initiation (I)
Planning

Clear and accurate definition of a project is one of the Project charter

most important actions you can take to ensure the Executing

project's success. The clearer the target the more

Preliminary Scope
likely you are to hit it. Statement
Monitoring and
controlling

Defining a project is a process of
selection and reduction of the ideas and
perspectives of those involved into a set
of clearly defined objectives, key
success criteria and evaluated risks.
© Dr.oec., profesore Tatjana Tambovceva
The initiation processes determine the nature and scope of the project. If
this stage is not performed well, it is unlikely that the project will be
successful in meeting the business’ needs. The key project controls
needed here are an understanding of the business environment and
making sure that all necessary controls are incorporated into the project.
Any deficiencies should be reported and a recommendation should be
made to fix them.
5 © Dr.oec., profesore Tatjana Tambovceva 6

Initiation/ definition steps

Scoping the Project
 The Purpose (or Mission)
State the Problem/
Opportunity  Goals
Establish the  The Beneficial Gains or Scope
Project Goal
 Objectives
Define the
Project Objectives  Key Success Criteria (KSC)
Identify the  Deliverables
Deliverables /
Success Criteria  Project Constraints
List Assumptions,  Risk Analysis
Risks, Obstacles

© Dr.oec., profesore Tatjana Tambovceva 7 © Dr.oec., profesore Tatjana Tambovceva 8

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 Initiation (I) Project charter

 The initiation stage should include a plan that

encompasses the following areas:
 Analyzing the business needs/requirements in
measurable goals
 Reviewing of the current operations
 Financial analysis of the costs and benefits
including a budget
 Stakeholder analysis, including users, and support
personnel for the project
 Project charter including costs, tasks, deliverables,
and schedule
© Dr.oec., profesore Tatjana Tambovceva 9 © Dr.oec., profesore Tatjana Tambovceva 10

1. Description of the situation

Problem/Opportunity
This is the reason for doing the project  Client/ sponsor
 A short, crisply phrased piece of information  Result of the project
covering:
 Reasons for the project implemantation
 what is to be done
 why it is to be done  Specify the result
 value it provides if it is done  Location/ place
 A statement of fact that everyone in the organization will
accept as true
 Time period/ deadline
 Should communicate why the project should be accomplished  Max /appr. amount of money for the project
 Customer (if we have)

© Dr.oec., profesore Tatjana Tambovceva 11 © Dr.oec., profesore Tatjana Tambovceva 12

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 Initiation/ definition

Clear and accurate definition of a project is one of the

State the Problem/
most important actions you can take to ensure the
Opportunity
project's success. The clearer the target the more
Establish the
likely you are to hit it. Project Goal
Defining a project is a process of Define the
Project Objectives
selection and reduction of the ideas and Identify the
perspectives of those involved into a set Deliverables /
Success Criteria
of clearly defined objectives, key List Assumptions,
success criteria and evaluated risks. Risks, Obstacles

© Dr.oec., profesore Tatjana Tambovceva 13 © Dr.oec., profesore Tatjana Tambovceva 15

2. The Goals
Primary Project Goal These are the targets we
• A project has one primary goal which gives want to meet
purpose and direction to the project  What is it we want to
• Defines the final deliverable and outcome achieve?
• States in clear terms what is to be  When do we want to
achieve it?
accomplished
 What are our specific
• Is a reference point for questions about aims?
scope and purpose of the project
 Why are these goals
essential to the project?

© Dr.oec., profesore Tatjana Tambovceva 16 © Dr.oec., profesore Tatjana Tambovceva 17

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 CLIENT OBJECTIVES –
S.M.A.R.T. Objectives

State the Problem/

Opportunity Clients objectives are
Establish the the starting point for
Project Goal defining the project,
Define the but may need to be
Project Objectives clarified by the project
Identify the team.
Deliverables /
Success Criteria
List Assumptions,
Risks, Obstacles

© Dr.oec., profesore Tatjana Tambovceva 19 © Dr.oec., profesore Tatjana Tambovceva Source: www.google.com 20

Writing SMART Objectives

S pecific
Objectives should be stated in terms that include some
quantitative target for the end product.
State the Problem/
Opportunity

M easuable
There should be some way of actually testing whether that
stated target has been met. Establish the
Project Goal

A The desired objective must be one that it is actually possible

Define the
to achieve within the time and cost parameters provided. Project Objectives
ttainable Identify the

R elevant
The desired objective should relate directly to the
organization's business needs and stated mission.

List Assumptions,
Deliverables /
Success Criteria

T
The boundaries for completion date of the desired objective
should be either a specific date or time or an "offset" from the Risks, Obstacles
beginning of the project. (For example, must be completed
within five months of project launch.)
ime-Bound
© Dr.oec., profesore Tatjana Tambovceva 21 © Dr.oec., profesore Tatjana Tambovceva 23

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 Success Criteria / Deliverables Key Success Criteria (KSC)

These are the objectives that, if all else fails, we must meet and/or
• Clearly state the expected impact those that we must meet for the project to be deemed successful
even if other objectives are met and achieved.
• Articulate/quantify outcomes so success can be From the list of objectives select those that are critical or key to the
measured success of the of the project. These are the items that are critical to
those who will benefit from the project and those with the responsibilities
for judging success criteria (Managers, Customers, Members,
• Make a list of the deliverables to be produced by Shareholders, Stakeholders etc.).
the project. The purpose of this is twofold. Firstly, to clarify in the minds of the project
team and service managers what are the essential benefits that the
• Describe each deliverable in an unambiguous project will deliver. Secondly, if circumstances change within the life of
the project then it is often extremely useful to see what were the agreed
manner that is understood by the team member success criteria at the start of the project.
responsible for it. The project may then be replanned to ensure the KSC are met or the KSC
may be formally changed (by Senior Managers in the light of changed
circumstances) and the project redefined and replanned to ensure they
are met.

© Dr.oec., profesore Tatjana Tambovceva 24 © Dr.oec., profesore Tatjana Tambovceva 25

Deliverables
The fundamental objective of a project is to deliver something new.
 It is not always easy to distinguish between aims (goals), objectives and deliverables. If
the project is to create new products or modify existing ones, then the list of deliverable
items may be as simple as a set of part or product numbers. It may be 3 sets; new parts
or products, obsolete parts or products and products or parts not affected by the project. State the Problem/
These deliverables are easily distinguishable from the goal; which may be to increase
market share by 7%, and the objectives; to have the product shipping by the 3rd quarter Opportunity
of the year, at a works cost price of £300, with shipments reaching or exceeding 5000 per
month by end of the year. Establish the
 However, the deliverable items may be less easy to distinguish in some projects. A project
to deliver the implementation of a new integrated housing management computer system Project Goal
will deliver parameter set-up, data transfer, staff training, etc. But these look very little
different from the objectives; parameter set-up by 30th March, data conversion by 15th Define the
June, and staff training by the end of July.
 In the first example, a new product will have a specification (or a set of specifications) Project Objectives
which defines its essential elements, its functions, its quality standards, its marketing
requirements, etc. These will form part of the project's deliverables or they may have been Identify the
deliverables of a previous research project. Thus the deliverables may be reduced to a
simple set of inventory numbers. Deliverables /
 The deliverables of the second project should concentrate on the qualitative and Success Criteria
quantitative aspect of the project. For example, the set-up phase will deliver the
responsive repairs functions of the Repairs Module but not the programmed works List Assumptions,
functions. The data transfer will deliver the defect description but not the itemised repair
for completed and paid orders for the last 4 years. The training in July will not include the Risks, Obstacles
production of statistical data.
 In effect, the deliverables list becomes a set of specified outputs (a quantity and quality
specification) for each milestone or way point of the project.
© Dr.oec., profesore Tatjana Tambovceva 26 © Dr.oec., profesore Tatjana Tambovceva 27

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 Assumptions & Risks Project Constraints

• Identify factors that might affect the outcome or
completion of the project
• Used to alert management & the project team to
factors that may interfere with project work
• Types of assumptions and risks
• Technical (equipment problems)
• Environmental (weather)
• Interpersonal (need to rely on student workers)
• Cultural (ensure don’t omit consultation with a key
stakeholder group)
• Political (the current economic crisis)
© Dr.oec., profesore Tatjana Tambovceva
Every project has constraints. The primary ones
are the trade off between Time, Resources and
Performance Criteria. We must define our
project so that we can manage these
constraints.
To define our project we have to make some hard
choices to select and balance these constraints.
Let us look first at Resources and Performance
Criteria and then Time.
28 © Dr.oec., profesore Tatjana Tambovceva 29

The Triple Constraint Triple Constraint Trade-Offs

Cost

Time Cost

OR, IN
Quality/Scope
Quality/Scope
PLAIN
ENGLISH Constraint
Change
Required Adjustment Alternatives (One or
Combination of Both)
Fast Cheap Shorter Time Higher Cost Reduced Quality or Narrowed
Scope
Reduced Cost More Time Reduced Quality or Narrowed
Scope
Higher Quality or More Time Higher Cost
Increased Scope
Good

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 Triple Constraint: Setting Priorities
Project Charter Form
Priority Matrix
Constraint 1 2 3 Measurement Project Name Project Manager Team Members
Time
Cost
Quality/Scope
Problem / Opportunity (Why do this project?):
•Must be set by customer and sponsor near startup.
•May change over time, but a change is a significant event!

Example of a Comple te d Priority Matrix for a Construction Proje ct Project Goal:

Constraint 1 2 3 Measurement
Building must be completed by
Time X October 31 of this year to
accommodate corporate move. Objectives (Specific, Measurable, Assignable), Duration?
Costs for the project must not
Cost X exceed $22.5 million. Cost?
Must provide workspace for 120 call
Quality/Scope X center staff.
Success Criteria (Outcomes):
If these are the established priorities and measurements, what are
some of the implications for the project if the project starts running late
or shows signs of exceeding budget?
Assumptions, Risks, Obstacles:

© Dr.oec., profesore Tatjana Tambovceva 36 © Dr.oec., profesore Tatjana Tambovceva 43

3. SWOT analysis Stakeholders analysis

 Stakeholders are individuals, groups, or organizations that are
Internal The positive situation / project / activity actively involved in a project, are affected by its outcome, or can
Strengths
factors that works perfectly influence its outcome.
 The stakeholder profiles identify the project sponsor, project
Internal Venues operating unsatisfactory or manager, customers for this product, and other stakeholders.
Weeknesses
factors which could be better Identify business-level customers, target market segments, and
significant user classes.
External Opportunities to develop advantage or
Oportunities  For each stakeholder category, describe the major benefits they
factors to overcome bottlenecks
will receive from the product, their likely attitudes toward the
External Restrictions that reduces the project, what constitutes a win or success for the stakeholder,
Threats and any known constraints that must be accommodated.
factors opportunities for growth and change
 You might include a table that lists affected business areas and
organizations and describes the impact the project will have on
them.

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 Project environment Project Stakeholders
Project Sponsor

Project manager
the project Project
...
sponsor Manager

Project management team

NGOs project
team

Government Project
Project team support
institutions staff

Project Stakeholders opponents

to the customers
project
suppliers users
project

© Dr.oec., profesore Tatjana Tambovceva 46 © Dr.oec., profesore Tatjana Tambovceva 47

4. Stakeholders analysis STAKEHOLDERS OF THE

 Influence (power) may issues from a stakeholder's ability to take
Major Attitudes action which would be helpful or detrimental to the project outcome
Stakeholder Impact Constraints
Interests (+;-;0)
Project Sponsor  Significance issues from the effect on working relationships and
the amount of interaction that there is between the stakeholder and
Project Manager the project team
User Class #1

User Class #n

Importance
High Importance High Importance
etc. Low Influence High Influence

Low Importance Low Importance

Low Influence High Influence

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 5. Alternatives analysis Alternatives analysis

To find the best solutions to the problems you need  possible alternatives of project objectives
to: achievement;
 search multiple problem-solving alternatives;  estimation of the duration of an alternative ;
 to analyze them;  evaluation of alternative financial indicators;
 make for each alternative examination of the
validity of its economic, strategic importance and  Alternative’s risk assessment.
operational necessity criteria;
 make the optimal solution for the problem solving.

© Dr.oec., profesore Tatjana Tambovceva 50 © Dr.oec., profesore Tatjana Tambovceva 51

 Using the results of the alternatives analysis we select the

most suitable project target path. Consequently, we can say
that the evaluation of alternatives can be used for univariate
and multivariate evaluation methods.
 Using single-factor evaluation method the alternatives
assessed by monetary and non-monetary criteria, while
multivariate methods times respect the various factors.

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