Where do Projects Come From?

Understanding How Projects Come into Fruition

 “A project is a temporary endeavor
undertaken to create a unique product,
service, or result.”
(Project Management Institute, 2021)
0
Projects…

 Are initiated to focus or address needs that cannot

be taken care of by standard operations.
 Are a temporary endeavor.
 Will have constraints and will be challenged by
change and uncertainty.
 Will have competing goals and requirements.
 Are undertaken at all levels of the organization.
 Why Are Projects Created?
1. Market Need
A car company authorizes a project to build more
fuel-efficient cars in response to gasoline shortages.
2. Business Need
A training company authorizes a project to create
a new course to increase its revenues.
3. Customer Request
An electric utility company authorizes a project to
build a substation to serve a new industrial park
4. Technology Advancement
Instead of using a phone book or an address book,
you now can use your phone to keep track of all
that information.
5. Legal Requirement
A chemical manufacturer authorizes a project to establish
guidelines for the proper handling of a new toxic material
6. Social Need
An organization in a developing country authorizes a
project to provide portable water systems, and sanitation
education to communities suffering from high rates of
infectious diseases.
7. Environmental Need
A company authorizes a project to create a new
service for electric car sharing to reduce pollution.
8. Process Improvements
An organization implements a new project in order
to integrate a new PM tool to streamline
administrative work.
The Project Selection Process

Inputs reviewed
such as: Product
Method of Project
Description, Selection Project Selected or
Selection
Framework, Strategic Denied
Implemented
Plan and Historical
Information
 Organizational Structures
1. Functional
 Hierarchical with each employee having ONE clear supervisor
 Staff grouped by specialty (e.g., Marketing, Accounting)
 Project Manager/coordinator has little to no formal authority
2. Project-Based
 Most resources are involved in the project work
 Team members are often co-located
 Project manager has a great deal of independence and authority
3. Matrix (Blend of Projectized and Functional Structures)
a) Weak Matrix: Very similar to Functional Structure Organizations
b) Strong Matrix: Very similar to Project-Based Organizations
c) Balanced Matrix: Need of a project manager is recognized but their authority is limited.
 The Project
Management Office
The Project Management Office (PMO) is an organizational unit that
centralizes and coordinates the management of projects under its
domain. Different types of PMO’s include the following:

1. Supportive 2. Controlling 3. Directive

1. Supportive: This PMO has a consultative role. Mostly used as a

project knowledge center. Acquires a low level of control.

2. Controlling: This PMO provides support in addition to knowledge

to project resources. Acquires a moderate level of control.

3. Directive: This PMO “takes over” projects by

Directly managing the projects Project managers are assigned by
and report to the PMO. Acquires a high level of control.
PMO’s Help Project Managers by:
Managing Shared Resources
Minimizes resource waste and errors as
well as repeatable work that was
accomplished already. Creates synergy
amongst project managers.
Monitoring Compliance
Ensuring project management standards,
policies, procedures, and templates are
upheld by means of project audits.
Developing Project
Training
Management Methodology
Setting best practices for developing projects
PMO mentors and trains project
and programs across an organization.
managers as well as team leads,
Focuses on procedures by standardizing
increasing the value of the team’s skillset.
PMO methodologies needed across
departments.
Developing Project
Coordinating Communication
Documentation
Developing and managing project policies, Bridging the gap between senior
procedures, templates, and other shared management, department leads, and
documentation (organizational process project managers ensures communication
assets) and project status updates are
streamlined.
 Common Project Communication Mistakes
1. Inconsistent messaging. 5. Using language team members
2. Talking at team members, do not understand (e.g,
rather than with them. jargon/slang).
3. Communication delays. 6. Relying on technology that
4. Withholding information or breaks down or others do not
keeping silent. have access to.
The Project Business Case
Understanding a Project’s Objective(s) and Undertaking
 What is a
Project Business Case?
“A document written for executive decision
makers; ultimately assessing the present and
future business value and risks related to a
current investment opportunity.”
Who Creates the
Business Case?
The personnel involved in writing a Business Case
varies widely depending on the company or
organization.

Could involve input from: Senior Managers, Technical

Managers, and Key Functional Managers that would be
affected by a project’s production even if not directly
managing the project themselves.
 Elements of a Business Case
A Business Case provides the necessary information from a business standpoint to determine whether the
project is worth the required investment. Some elements of a Business Case study are listed below:

Executive Summary Solution

A brief overview of the business case Present sufficient detail to allow the
and key points you will address. decision makers to evaluate the
business solution.

Execution Timeline
Cost
Provide a proposed and educated
Describe the financial and opportunity
recommendation for how long the
investment required to implement
project will take from start to completion.
proposed solution.

Benefits Challenge or Goal Addressed

Indicate the benefits that is expected to be Identify what the primary goal(s) of the
obtained from proceeding with the project project will achieve for the organization.
and how it aligns with the organization’s
strategic mission.
 Business Case
Guidelines Done?
Section Heading
Give a brief summary of the business case and highlight
Executive Summary key points. Define and quantify the current and future
business needs that drive this business case.
Estimate the cost over a defined period of delaying or not
Opportunity Cost proceeding with this investment.
CHECK IT OUT:
Present sufficient detail to allow the decision-makers to
Proposed Solution
A Checklist to Help You evaluate the business solution.

Create a Compelling Investment & Funding

Describe the investment required to implement the
proposed solution.
Business Case
Describe the project structure. Include the duration of the
(Part 1) Project Framework main activities. Assess the project team skill
requirements.

Identify and assess expected risks to which the

Risks project will be exposed to.
Show the return on investment (ROI).
Financial Analysis

Identify the key target employees or employee

Target Employees groups for training and state why they were selected.
 Business Case
Guidelines Done?
Section Heading
List the factors needed to ensure success of the
Critical Success Factors proposed solution.
CHECK IT OUT:
Assumptions and what assumptions have been made, such as costs and
A Checklist to Help You Constraints resource availability? What may limit the project?
Create a Compelling Identify the project resources by role, quantity and cost.
Resource Requirements
Business Case
Criteria for measuring Describe how to measure the success of the proposed
(Part 2) success solution.
Restate your recommendation.
Conclusion

Catalogue all reference materials for the business

Reference Materials case.
Process for
Developing a Project STEP 07
Business Case Propose and support
recommendations.
STEP 06
Analyze alternatives.

STEP 05
Define total cost
and total benefit of
ownership.
STEP 04
Define feasibility
of project.

STEP 03
Identify alternatives.

STEP 02
Define measurable
organizational value.

STEP 01
Select a core
team.
 What’s the Difference?
Project Life Cycle vs. Product Life Cycle:
Project Life Cycle
Project Life Cycle: The series of
phases that a project passes through
from start to completion (PMBOK, 2017).

 A Business Case is an input to a

project life cycle.
 A project can be started to produce a
product.
 Can be a subset of the Product Life
Cycle; often much shorter than the
Product Life Cycle.
 Life cycle’s may or may not be
sequential; can overlap.
Product Life Cycle
Product Life Cycle: The series of
phases that represent the evolution of
a product from conception through
delivery, growth, maturity, and
retirement (PMBOK, 2017).

 Includes anything and everything

related to the product.
 Includes the Business Case
 Product can become part of the
business operations.
 May not have a definitive end.
 Life Cycle phases tend to be
sequential and not repeat.