Fundamentals m2 en

Project Management
Fundamentals
Scope Management
Copyright © 1996-2012 STS Sauter Training & Simulation SA, Lausanne, Switzerland
Definition of goals
Theory
The key principles in brief:
 It is essential that the goals of the project be precisely

defined and be shared by all of the stakeholders.
 Goals are first sketched out in broad terms, which are
then gradually refined by the project manager and the
sponsor (in an iterative process).
 It is important that the goals of the project do not only
reflect the interests of the project manager and the
sponsor, but also that they meet the needs of the
stakeholders as much as possible.
 Basic rule: as a last resort, it is the client who should
decide about the formulation of the goals of the project.
 In all circumstances, the goals and results of the project should be expressed in such
a way as to be clearly measurable.
 The project manager has to make sure that all stakeholders share the same view of
the goals of the project.
 On the whole, the divergent interests of stakeholders make goal-setting difficult. The
project manager should treat conflicts regarding the project goals proactively.
Related concepts:
Stakeholders
Client
Sponsor
Literature:
You’ll find further information about this topic in the following books:
PMBOK® Guide 4th Edition: 5.2: Define Scope
5.3: Create WBS
IPMA Competence Baseline Element 1.01 Project management success

v3.0: Element 1.02 Interested parties
Element 1.03 Project requirements &
objectives
Element 1.10 Scope & deliverables
Element 3.06 Business
Copyright © 1996-2012 STS Sauter Training & Simulation SA, Lausanne, Switzerland. Page 2 of 16
Decision Analysis in Projects Schuyler John R pp. 15
How to do
How should goals be defined?
a If the sponsor has perfectly clear and well-formulated goals:

1 Check to make sure the goals are not, in fact, contradictory. If they are, reformulate
them in order to get rid of these contradictions.
2 Discuss these goals with the project team, the client, and possibly also the end-
users, in order to ensure that everyone fully agrees on the goals as they have been
formulated. This can be quite time-consuming! It is worthwhile spending one or more
days in reaching an agreement.
3 Continue to clarify the goals. This is an iterative process through which you will find
further contradictions that will make it necessary to reformulate the goals again.
4 Establish the level of priority of individual goals: which goals are absolutely
indispensable, and which goals are merely desirable (need to have, nice to have)?
5 Make sure that the goals are formulated in a neutral way, leaving the door open for
alternative technical solutions. The "what?" should determine the "how?".
b If the goals of the sponsor are rather vague, unclear and poorly formulated:
1 Try to understand the underlying problem or need as precisely as possible.
2 First of all, the project manager should attempt to formulate the goals of the
project. He/she should then submit them to the sponsor, and discuss them with
him/her, reformulating the goals as they go along, until the Sponsor and the project
manager are in complete agreement concerning the goals of the project.
3 Once these phases have been completed, proceed according to the process described
under "A" above.
Example
The Vimax insurance company has decided to completely
re-think its presence on the Internet. Currently, its website
offers fairly "static" pages, where visitors are only able to
consult the range of offered services in a very general way.
The initial brain-storming session organized with employees

from the marketing, asset insurance, life insurance and IT
departments has produced a lengthy list of potential goals:
 Calculation of insurance premiums on-line

 Creating an on-line policy, which can then be printed out by the client
 Letting policy-holders examine their policies
 The provision of useful advice based on a computer analysis of the client's
existing policies and the data available about the client
 Comparison of policies with offers available from other companies
 Calculation of tax benefits
 Using the Internet to collect data about clients that will then be useful to
salesmen
 Letting policy-holders report accidents on-line
 An option allowing for the tracking of the progress of a file
 Possibility for a client to choose a salesperson on the basis of profiles available
on-line
Realizing all of these goals is, of course, simply impossible. How, then, can a selection be
made between them?
The project manager, Mrs. Strauss, decided to approach the problem in the following way:
1. Each goal should be described in detail on about half of a page.

2. In the course of several meetings with the same people who took part in the earlier
brain-storming session, describe (on paper) the usefulness of each goal in relation to
a) the company and b) the client.
3. Then create a chart consisting of three columns, respectively headed "the goal", "its
usefulness for the company" and "its usefulness for the client".
4. The next stage involves putting a figure (in Euros) on the value (usefulness) of each
goal with respect to the client, on the one hand, and the company, on the other.
Each member of the group will first carry out this task individually. Then, a group-
discussion will lead to a consensus value for each of these figures.
5. The value of each goal should then be compared to its costs (for both realization and
maintenance).
6. This comparison will make it possible to determine the priority of the different goals.
7. This list, together with the costs of each goal, will then be presented to the
organization committee that will make the final decision on the matter.
Checklist
 A well-formulated goal is SMART:
.1. Specific,
.2. Measurable,
.3. Ambitious,
.4. Realistic,
.5. defined in Time
 The goal clearly takes into account the interests of the most important stakeholders
in the project.
 The goal is known to all stakeholders.
 The goal has been accepted by all stakeholders.
Pitfalls
 Goals are often inaccurately formulated.
 The goals don't sufficiently take the interests of stakeholders into account.
 The end-users were not consulted on the matter.
 The goals don't sufficiently reflect existing infrastructural conditions.
 Some stakeholders gave their definite approval, but it is obvious that they actually
disagree and will try to redefine the goals of the project.
Concept development
Theory
 Concept development is the answer to the question,

"how will the project be realized?"
 It is important to set aside enough time for concept

development. A very good concept can save a great
deal of time when it comes time to be put into
practice.
 Concept development is a creative process.
Brainstorming and other creative techniques often
prove useful in this regard.
 The best ideas are never developed in the ordinary office environment. Try to
remember: where were you the last time you had a great idea?
 Good results can be obtained when the whole team spends a day somewhere in
the countryside, away from the usual environment.
 Concept development should, ideally, not only lead to the creation of a single
solution, but to several possible options.
Literature:
IPMA Competence Element 1.10 Scope & deliverables

Baseline v3.0: Element 1.15 Changes
Element 2.07 Creativity
Creativity in Science and High Tech De Bono
How to do
How is a concept developed?
c First, you need to leave your usual surroundings. Organize a brainstorming
session outside of your workplace.
d You should arrange to have one or two "outsiders" participate in the
brainstorming session, people who don't belong to the project team and work in
different areas. These people will have a fresh perspective on the situation.
e For a brainstorming session, only chairs should be allowed in the room; no tables
should be permitted. Otherwise, the participants will start to take notes, harming
the creative process.
f Set up two or three flip-charts in the room. One person should write down every
single idea.
g Repeat rule no. 1: negative criticism is forbidden (because it blocks the creative
process!)
h Repeat rule no. 2: no sentence should begin with "but ..."!
iBy the end of the brainstorming session, a lot of suggestions should have been
made.
j Once the brainstorming session is over, compare these different suggestions.
Example
George, a project manager at the Deminos firm, has developed a concept development
process that has already proven successful several times. When he faces a particularly
difficult problem, he doesn't immediately call for a brainstorming session.
 Instead, George first lets things clarify themselves in people's minds for about two
weeks. Occasionally, he discusses the problem with various members of the team.
During team meetings, he also initiates brief discussion on the matter.
 In this way, the problem is always kept active in the minds of the team members.
 After this two-week period, he organizes a brainstorming session in a mountain
cabin. The trip there by car takes about an hour and a half.
 First, he sends the participants off for a walk, so they can relax.
 The first phase of the brainstorming begins with an initial 40-minute session.
 This initial stage is followed by a coffee break. It is vital that the participants
remain in a good mood. If the atmosphere is tense, the brainstorming session will
not be productive.
 Then, the second phase of the brainstorming session follows, lasting a further 40
minutes.
This approach to brainstorming has been shown to be very effective, producing a
considerable number of new concepts, as well as providing multiple perspectives on the
matter under consideration.
Checklist
 Take the participants out of their usual environment.
 Provide only chairs, keeping the area well-clear of tables.
 Set up two or three flip-charts.
 If possible, invite one or two "outsiders".
 Precisely re-define the original problem.
 Rule no. 1: criticism is forbidden!
 Rule no. 2: no one is permitted to begin a sentence with "but"!
 Before the brainstorming session, the participants should go for a walk.
 Take a break after the initial 40-minute phase of the brainstorming session.
 Brief evaluation of the risks.
 Brief analysis: what have we found that is new to us?
 Brief analysis: where might possible difficulties lie?
Pitfalls
 Concepts should not be developed before the goal has been clearly defined! Otherwise,
the concepts would have to be subsequently modified, representing a significant waste
of time. Moreover, people tend to become attached to concepts over time.
 Some people always want to re-invent the wheel. Look out for concepts that already
exist!
 Be careful if you take up an existing concept:
 An existing concept might be too complex. It is possible the new problem can be
solved with much simpler concepts.
 Don't underestimate necessary modifications! The explosion of the first Ariane-5
rocket had a simple cause: a pre-existing speed measurement system had been
used as a whole unit, despite new conditions (higher speed).
 When you hold a brainstorming session, don't invite any "pessimists". People who only
ever see the negative side of things, finding problems everywhere, can kill a
brainstorming session.
 On the other hand, "pessimists" are welcome at later stages, when your team analyzes
the available options.
Selecting between options
Theory
After the concept has been developed, there often isn't only one possible solution, but two,
three or even more.
Sometimes, it is hard to compare these different options. For instance, suppose:
1. Solution A is cheap but risky.

2. Solution B is expensive, but will be easy to integrate into the existing structure.
3. Solution C is very elegant and modern but also fairly expensive.
An authoritarian decision in favor of one of the solutions can have catastrophic effects. For
example, frustrated employees might simply wait for the earliest opportunity to
demonstrate the shortcomings of the chosen solution.
Defining criteria, weighing them against each other and then using the criteria to evaluate
the options can be a team process. This doesn't necessarily guarantee an optimal choice,
but it does lead the team towards a decision accepted by everyone.
Related concepts:
Concept
Stakeholders
Literature:
IPMA Competence Element 1.10 Scope & deliverables

Baseline v3.0: Element 1.15 Changes
How to do
How to choose between the options:
 Define the criteria that will be used as the basis for the decision.
 Weigh these criteria against each other (on the basis of specifications, the
client's criteria of success).
 Evaluate each option and assign a mark to each criterion.
 Multiply each mark by the importance of the corresponding criterion so as to
obtain a weighted mark.
 Add up the weighted marks in order to get the overall mark for each option.
Example
To establish your company's European headquarters, you considered four options:
London, Frankfurt, Vienna, and Geneva.
The selection criteria were the following:
 Air connections
 Proximity to markets
 Quality of life
 Living costs
 Tax conditions
Each city was appraised according to all of these criteria (on a scale ranging from 1
to 10).
The results are shown in the following chart:
Based on this raw data, Vienna and Geneva are the winners. However, the criteria have not
all been assigned the same importance by your company. Therefore, a weighting was
assigned to each criterion. Weighting of the criteria (on a scale ranging from 1 to 5):
 Air connections: weighting 5

 Proximity to markets: weighting 4
 Quality of life: weighting 3
 Living costs: weighting 4
 Tax conditions: weighting 3
These weightings produce the following results:
This time, the situation looks quite different: Frankfurt is now the clear winner, while
Geneva and London did not perform well at all.
Checklist
 Have the options put forward by all of the stakeholders been taken into account?
 Have different opinions concerning the criteria and their weighting been fully
taken into account?
 Has the weighting of the criteria been established in relation to the criteria of
success for the project?
Pitfalls
 The weighting of the criteria has to be done before the evaluation of each
option. Otherwise, there is a danger the results will be manipulated to produce a
particular result.
 If certain stakeholders were left out of the decision process, they might question
the result later on.
Project charter
Theory
The project charter is the official authorization of the project.
It is designed by a sponsor who has the relevant position to authorize the project. When
signing the project charter, the sponsor makes the necessary funds available for the project
(or at least for the first phase of the project). The project charter includes:
 The reasons to initiate the project (stimuli, business case, …)

 The service or product to be delivered
 The high-level time window and budget
 The main stakeholders and resources
 The project manager and his/her power
 The limits of the project
Since both the project and the project manager are evaluated on the basis of the project
charter, it is the project manager’s primary interest to:
 Analyze the project charter and negotiate it

 Write it, if the charter is informal, and ensure the sponsor signs it!
The project charter has to be adapted to the project's needs. For small projects, it can be
very short or even a simple email! That may be enough to grant the project adequate
resources (human and financial) and to devise the project's initial objectives.
Literature:
PMBOK® Guide 4th 4.1 Develop Project Charter

Edition:
5.1 Collect Requirements
IPMA Competence Element 1.19 Start-up

Baseline v3.0:
How to do
How to write a project proposal:
A project charter should include the following elements. Those in bold print should be
included even for smaller projects:
 The problem or need that triggered the project.

 The main goals of the project.
 What the project does not seek to achieve (the negative definition of goals).
 The deliverables.
 Rough estimates of the resources needed for each department.
 Expected completion date.
 A rough estimate of the costs involved.
 A calculation of the profitability of the project.
 A brief analysis of the risks involved.
Example
Social and medical institution "X" employs 185 people, 128 of
whom are employed in work having to do with patient care,
which means that they have irregular working hours.
The department heads currently keep manual records of the

number of working hours. An important amount of time is spent
computing the precise number of days off, holidays, days of
absence, sick leaves, and so on for each employee.
The director is aware of the costs resulting from the operation of this system and has
placed Mr. Joliot, the head of the accounting department, in charge of a project
whose goal is to introduce a modern software package that would enable the
institution to keep accurate time-sheet records.
Checklist
 Do you have a project charter prior to starting the project?
 Is this project charter signed and is the sponsor committed?
 At this stage of a project, estimates often have a margin of error of +/-20%. If some
of the estimates are considerably more or significantly less accurate, it would be wise
to point this out at this phase.
Pitfalls
 The project charter has to be completed BEFORE the planning phase. For larger
projects, the approval of the project charter will make the resources available for the
planning phase. Therefore, it would be unwise to spend weeks on planning before
the project charter has even been submitted!
 Making sharp and detailed evaluations of the costs and schedule for the project is
not feasible at this stage of the project. This will happen at the end of the planning
phase.

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Project Management

The key principles in brief:

 It is essential that the goals of the project be precisely

PMBOK® Guide 4th Edition: 5.2: Define Scope

5.3: Create WBS

IPMA Competence Baseline Element 1.01 Project management success

a If the sponsor has perfectly clear and well-formulated goals:

The initial brain-storming session organized with employees

 Calculation of insurance premiums on-line

1. Each goal should be described in detail on about half of a page.

The key principles in brief:

 Concept development is the answer to the question,

 It is important to set aside enough time for concept

IPMA Competence Element 1.10 Scope & deliverables

Creativity in Science and High Tech De Bono

The key principles in brief:

Sometimes, it is hard to compare these different options. For instance, suppose:

1. Solution A is cheap but risky.

IPMA Competence Element 1.10 Scope & deliverables

The selection criteria were the following:

The results are shown in the following chart:

 Air connections: weighting 5

These weightings produce the following results:

The key principles in brief:

The project charter is the official authorization of the project.

 The reasons to initiate the project (stimuli, business case, …)

 Analyze the project charter and negotiate it

PMBOK® Guide 4th 4.1 Develop Project Charter

IPMA Competence Element 1.19 Start-up

 The problem or need that triggered the project.

The department heads currently keep manual records of the

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