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COMM 495 – Project Management

Week 3 – Initiating Traditional Projects I

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Project Landscape - Review

TRADITIONAL
PREDICTIVE WATERFALL PMI

Themes Principles Processes Standards

LEAN ADAPTIVE SCRUM

AGILE

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Project Landscape - Review

TRADITIONAL

PREDICTIVE WATERFALL PMI

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PMI
PMBOK is Changing
 PMI 5

PMBOK Sixth Edition

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PMBOK Sixth Edition

PMI
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For twenty-three points!

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Project Start - Idea

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Project Start

BUSINESS
Problem or Opportunity

BUSINESS
Value

BUSINESS
Case

BUSINESS
Project
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Project Start – Problem or Opportunity

PROBLEM OPPORTUNITY
An issues that is An initiative that will
negatively impacting positively impact
business value business value
• Reactive • Proactive
• Tactical • Strategic
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Project Start – Business Value

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Project Start – Business Case

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Project Start

Start Project

Step One - Document

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Project Start

1. Describe the Project in terms of

"Problem or Opportunity"
2. Describe the Value of solving
the problem or exploiting the
opportunity for the "Business"
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4.1 Develop 13.1 Identify

Project Charter Stakeholders

Read Pages 174 - 190

Project Overview Statement (POS) = Project Charter

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Project Charter
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.

Project Charter
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Project Charter - Purpose

INITIATES THE START OF THE

PROJECT
C T
J E
IDENTIFIES THE SPONSOR
R O
• WHO IS ACCOUNTABLE FROM THE
BUSINESS SIDE? P
IDENTIFIES THE PROJECT
MANAGER
• WHO IS ACCOUNTABLE FROM THE
PROJECT SIDE?
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4.1 Develop Project Charter

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Project Charter - Content

Scope Resources Cost

• What should the • Who and what will • How much are we
project look like? need to be involved? willing to spend?

Schedule Risk Benefit

• How long are we • What risks should the • Why are we doing the
willing to wait? project team be aware project?
of?
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Project Charter

Project Project Name and Description

Charter
Project Sponsor and Project Manager
Goal and Objectives
Scope, Cost, Resources and Schedule
Success Criteria
Assumptions and Constraints
High-level Risks
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Project Name and Description

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Project Description

Business Case Executive Summary

Problem or Business
Goal Solution
Opportunity Value
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Project Description

Relevant Course Concepts

Project Project Project Value
Definition Variables • Create or
• Technical • Clear Goal Improve Product,
• Business • Clear Solution Service or
Capability
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Goals and Objectives

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Goals vs Objectives

Goals are high level statements that provide overall context for what the
project is trying to achieve and should align to business goals.

Objectives are lower-level statements that describe the specific, tangible

products and deliverables that the project will deliver.
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Goals vs Objectives

Goal
Objective 1 Objective 2 Objective 3

Activity Activity Activity Activity Activity Activity Activity Activity Activity Activity Activity
…
1 2 N 1 2 … N 1 2 … N
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Goal

Make the State what can

Establish State when the
Be specific in objective realistically be
measurable objective can be
targeting an assignable to done with
indicators of achieved – that
objective one person for available
progress is the duration
completion resources
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Goal

Increase the range of the Ford Lightning All-Electric Truck by

100 Km by 2024 by reducing the weight of the vehicle.
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Goal

Increase the range of the Ford Lightning

All-Electric Truck by 100 Km by 2024 by
reducing the weight of the vehicle.
SPECIFIC MEASURABL ASSIGNABLE REALISTIC TIME-BOUND
• Increase the range E • assigned to the • Ford • by 2024
of the Ford • By 100 km ford lightning
Lighting all design team
electric truck
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Goal

Increase Increase Improve

Reduce Costs
Revenue Efficiency Productivity

Add or Improve Improve

Clean or
Improve Customer Customer
Acquire Data
Analytics Experience Satisfaction

Solve a Improve Create

Compliance
Problem Quality Capabilities
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Goal
Increase A construction project that adds floor space to a popular restaurant to add 30% more tables that are expected to increase revenue by 22%.
Revenue

Reduce Costs A project to redesign a restaurant’s kitchen with new ovens that allow the kitchen to bake its own bread. This will reduce ingredient costs by 3% and improve
food quality.

Improve A project to implement a new accounting system to reduce workloads with automation and powerful user interfaces. The system will reduce the use of

Productivity contractors in the accounting team saving $480,000 per year.

Create A telecom company systems project that will implement a configuration management system to automatically record a history of the configuration of hardware
and software across a network. This business capability will be used to improve network operations and troubleshooting of incidents by correlating problems
Capabilities and network performance with changes in configuration. The target is to reduce SLA violations by 7%.

Improve A project to reformulate a non-alcoholic beer product to include only natural ingredients is expected to improve product positioning by being the only product
on the shelves to say "all natural ingredients." The goal is to increase prices by 15% with a premium product while at the same time increasing unit sales by
Quality 10%.
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Objectives

Objective
• Each objective has its own start
1
and finish
• Objectives have dependencies
• Objectives require activities to
Objective
4 Goal Objective
2 complete

Objective
3
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Objectives

Objective
A construction project that adds
1
floor space to a popular restaurant
to add 30% more tables that are
expected to increase revenue by
22%.
Objective
4 Goal Objective
2

Objective
3
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Project Start

1. Define the "Business Case" and

the "Goal" of the Project
2. Identify 3 - 5 "Objectives" for
the "Project Goal"
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Risk Risk

Co
Tim

st
Scope
and
Quality

Resource
Risk Risk
Availability

Scope, Schedule, Budget and Resources

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Scope, Schedule, Budget and Resources

Scope Schedule Budget Resources

• What am I • When am I • How much • What
going to going to is it going people,
get? get it? to cost me? facilities or
equipment
do I need to
provide?

Scope
The project scope, in the Charter,
typically describes the Scope of the
Product, Major deliverables and
exclusions. These should be defined
at a high level and will be expanded
on in the planning phase. The goal is
to create rough boundaries to be
elaborated on in the planning phase.
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Project Scope
• The “Facilities Management Upgrade” project will replace the current
manual paper-based system. Work tickets will be delivered and updated
using electronic tablets. Inventory and parts ordering will be managed
through the same system.
Deliverables
• Upgraded facilities management system that can issue work tickets
electronically
• Upgraded parts ordering system that will automatically order parts based
on the threshold
• Pre-Configured tablets for all the trades that will allow for real time
tracking of tickets
Exclusions
• The janitorial staff will be excluded from this upgrade.
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Schedule

The project schedule, in the Charter,

typically describes the product
delivery date along with the delivery
date, major deliverables or events
such as a demo. These should be
defined at a high level unless there is
a hard deadline. The goal is to create a
rough, perceived timeline to be
validated in the planning phase.
Product Release
• The product is to be released in the third quarter of
2022
Deliverables
• The signoff of the prototype and initial design are to
be ready for the client by Dec 2021
• Training needs to be complete prior to the release

Events
• The prototype is to be part of the TEDZ Tradeshow in
May 2022
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Budget

The project budget, in the Charter,

typically describes the product costs Rough Order of Magnitude
as a rough order of magnitude. The (-25%, +75%)
costs will come from the Business • Business Case and Charter

Case and were part of the initial

investigation. It is important to note Budget
that the figure is a ROM, and a (-10%, +25%)
• Planning Phase
detailed budget will be developed
during the planning phase. The goal is Definitive
to commit the funds before starting (-5%, +10%)
the project work. • Execution Phase
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Resources

The resources section, in the Charter,

typically describes what internal resources
will be allocated to the project. These
details will also come from the business
case but may also be included by the Facilities
• Office Space
Project Manager or Sponsor. It is Eq
• Buildings • ui
important to note that these resources may • om pm
C
rts M e
Eq anu ute nt
not be sufficient and may need to be e p
p
Ex uip fac r E
augmented externally. During the planning p le er me tur qui
eo att nt ing pm
phase, the resources needs are evaluated, P m
ea jec tM en
T t
• ub
leading to additional resources being •S
requested or returned. The goal is to
commit the resources before starting the
project work.
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Risk Risk

Co
Tim

st
Scope
and
Quality

Resource
Risk Risk
Availability

Success criteria
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Success Criteria
Technical

Scope, Schedule and Budget

Business

Benefits Realization
Note: You do NOT
Value
Adoption need to have all three,

Stakeholder Satisfaction
but you need to
define what success
looks like before the
project ends.

How will the project be evaluated?

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Success Criteria
Scope, Schedule and Budget

Matt Berther
Musings of an agile development manager and occasional code
monkey
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Success Criteria
Scope, Schedule and Budget

This refers to the goal and objectives set for the project and the results they offer upon
Scope completion.
• Describe what the deliverable(s) will be upon the completion of the project
• Look, feel, touch, smell, sound, taste etc

Schedule Was it delivered when I asked for it?

• Schedule is typically measured by reaching a specific date, period or season
• Date
• Quarter
• Christmas

• NOTE: The date could be different from the date scheduled as long as any change orders have been accepted.

Budget Did we stay in budget?

• Budget is typically measured in monetary amounts when defining the success criteria, you can state a tolerance percentage. i.e.,  5%
• NOTE: The amount should not exceed or be significantly less than the amount budgeted as long as any change orders have been accepted.
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Success Criteria
Benefits Realization
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Success Criteria
Stakeholder Satisfaction
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Lego Universe
Can bricks go digital?
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• Founded in 1932 by Ole Kirk

Kristiansen
• Privately owned company
Headquartered in Billund, Denmark
• 485 Billion LEGO bricks have
been produced to date
• LEGO Products are sold:
• 140 Countries
• 17,000 Employees
• Revenue $5 Billion
• Net Profit $1 Billion
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The Market for Toys and Digital Gaming: Where to Play?

Declining
“Traditional” Toy
Market

Emerging Threat of
the Computer and • MMOG -> Massive
Video Games Multiplayer Online
Market, Challenged Games
by MMOGs

Minecraft’s Success:
A Threat to Online
Gaming for LEGO?
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Minecraft
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LEGOs Problem or Opportunity?

We could not neglect that children were becoming more and

more digital. With LEGO Universe, we had the ambition to
start a second core business.

-Jesper Vilstrup
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How to build LEGO Universe?

Do it
themselves

What approach
should LEGO
take to develop
LEGO Universe?

Partner with a
software
development
company?
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Partnership

LEGO
• The LEGO group and the LEGO Universe team,
represented by Mark Hansen, the original architect of
LEGO Factory, who had no experience in online gaming
development.
NetDevil
• A video game developer with significant expertise in
developing MMOGs but no experience with the LEGO
group.
Partnership

LEGO NetDevil
• Billund, Denmark • Louisville, Colorado
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Constraint

Only the best is good enough. With this key LEGO

mindset, everything had to be 100% perfect – as we
promised. The quality we have with the physical
brick is also the quality we want in the digital world
– and in everything we do.

-Jesper Vilstrup
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Constraint

We were laughing when Minecraft came out, we

would never allo something like that to happen
in a LEGO context, because they don’t moderate
anything, the consumer service sucks, there was
so many things that we did not feel would fit
with the LEGO brand.

-Jesper Vilstrup
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The Project

Lego Universe Minecraft

• Traditional Project Approach
• Everything had to be perfect before
release
• Forced NetDevil to adopt their
traditional approach
• Mojang was happy to start with a
“good enough” product that could
be improved by iterative
processes.
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LEGO Universe
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Results – Shutdown after a year

We have learned that the marketing value brought by

digital to our core is even more key than the economic
value we can expect from it. The fact that you can’t
easily translate the physical world into the digital world,
especially in view of preserving the brand, has also been
a key learning. LEGO Universe has changed our
approach to collaboration with digital vendors. Today it
is more about letting them do what they are good at and
making sure there is a close link between what they do
and what we focus on and making the best out of it.
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