BUSINESS CASE, SOW, & PROJECT

CHARTER
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At the end of this training, our goal is for you to:

• Be able to know the content of these documents

• Explain how they relate to each other

• Be able to describe when they are created and how they are used

• Explain the difference between them

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 Overview

BUSINESS CASE

Worthiness of a project

STATEMENT OF WORK

Description of products, services or results

PROJECT CHARTER

Formally authorizes a project

Provides authority to apply resource

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 Business Case

The purpose is:

• To capture the reasoning for initiating a project

Generally designed to answer the question:

• “What are the likely financial and other business consequences if we
take this or that action (or decision)?”

Spend resources in support of business

Part of project selection process

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 Business Case

Analyzes • Strategy and advantage

Defines • Business plan

Created • Prior to project start

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 Business Case – Need

Market demand

Organizational need

Technological advancements

Legal requirements

Environmental impact

Customer requirement
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 Business Case –Purpose

Ensures

Value and Importance Proper management Capability to deliver

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 Business Case –Structure

Background

Business Benefits

Cost of Project

Gap Analysis

Options

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 Statement of Work

• A statement of work (SOW) is an important component of the project

Charter

• A contract SOW is a device that describes the products, results and

services that are expected to be delivered at the conclusion of a contract

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 Statement of Work

Describes Project Scope

Describes Product Scope

States requirements

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 Statement of Work

Internal Projects

Provided by initiator or sponsor

External Projects

Provided by initiator or sponsor

Ensures agreement on Deliverables

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 Statement of Work

Created before project start

• Input to Develop Charter

Includes
• Requirements, performance and assessments

Describes
• Product, service and result

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 Statement of Work – Structure

Goals

Assumptions & Constraints

Acceptance Criteria

Management Guidelines

Product & work description

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 Project Charter

• A statement of the scope, objectives and participants in a project

• Provides a preliminary explanation of roles and responsibilities

• Outlines the project objectives

• Identifies the main stakeholders

• Defines the authority of the project manager

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 Project Charter

Develop early Make Leads the

decisions project

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 Project Charter

Initiating

Closing Planning

Monitoring
and Executing
Controlling

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 Project Charter – Purpose

Direction & Constraints

Project Objectives

Project Deliverables

Stakeholders’ Needs

Project Priorities

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 Project Charter – Structure

Project Identification & Scope

Authority and Resource Need Definition

Project Methodology

Project Roles and Responsibilities

Project Structure and Schedule

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 Comparison

Business Case SOW Project Charter

Purpose Reason for Project Project objectives,
initiating a project deliverables identifies
stakeholders and
project manager
Created in Before Project Before Project Develop Project
Charter
Feature Assures support of Assures Establishes the
the business consistent project manager’s
deliveries authority

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