epm5-slides-ch03.ppt

Effective Project Management: Traditional, Agile, Extreme

Presented by(facilitator name)

Managing Complexity in the Face of Uncertainty

Ch03: How to Scope a Project

Managing client expectations Conditions of satisfaction Planning and conducting a project scoping meeting Gathering requirements Diagramming business processes Prototyping your solution Business validation Procurement Management Writing an effective Project Overview Statement (POS) Approval to Plan the Project

Summary of Chapter 3


Conditions of Satisfaction Project Scoping Meeting Requirements Gathering Diagramming Business Processes Prototyping Validating Business Cases Procurement Management Outsourcing Project Overview Statement Approval to Plan the Project

Tools, Templates & Processes used to Scope a Project



Condition of Satisfaction

The Condition of Satisfaction (COS) is a structured conversation between the client (requestor) and the project manager (provider).

The deliverable of the COS is one page document called the project overview statement (POS).

The COS has four main parts:1. Request2. Clarification

Both parties understand the request in the language of the requestor3. Response4. Agreement

Both parties understand what is being provided in the language of the provider.

Client Wants vs. Client Needs Dilemma

What your client wants may not be what your client needs. Your job is to make sure that what they want is what they

need and that you will deliver what they need.

WANTS

NEEDS


Good Client Know what they want Know what it takes to deliver Work towards best solution Easy to work with Meaningfully involved

Who is Our Client?

Not So Good Client Not sure of what they want Constantly change their mind Not interested in solving

project problems Hard to satisfy Not very involved

Project manager & team (PT) must satisfy the needs of both.


Make sure you understand what your client wants/needs/expects

Make sure the client understands what you will do Assure yourself that what your client wants is what

your client needs Actively include your client in scoping the project Meaningfully involve your client wherever possible Keep your client informed of project status

Tips to Managing Client Expectations During Scoping


Establishing clarity of purpose

Negotiate agreement andwrite Project Overview Statement

Request Response

ClarifyRequest

Agree onResponse


Figure03-01

Purpose Document requirements Project Overview Statement

Attendees Project Manager Client Group Core Team Members The Facilitator & Technographer

Planning and Conducting the Project Scoping Meeting


Agenda Introductions Purpose of the Meeting (led by Facilitator) COS (conduct or review if done earlier) Description of current state (led by client representative) Description of problem or business opportunity (led by client

representative) Description of end state (led by client representative) Requirements definition and documentation (led by facilitator) Discussion of the gap between current and end state (led by

project manager) Choose best-fit project management approach to close the

gap (led by project manager) Draft and approve the POS (whole scope planning group) Adjourn



Deliverables COS Requirements Document Best-fit project management life cycle (PMLC) POS



A requirement is something the product/project shoulddo/produce or a quality that it must have.

What Are Requirements?


Functional Non-functional Global Product/project constraints

Categories of Requirements


Functional requirements specify what the product orservice must do.

Definition: Functional Requirement

Give an example of a functional requirement.


Non-functional requirements demonstrate properties that the product or service should have in order to dowhat must be done.

Definition: Non-Functional Requirement

Give an example of a non-functional requirement.


Global requirements describe the highest level of requirements within the system or product. They can bethought of as general requirements.

Definition: Global Requirement

Give an example of a global requirement.


Product/project constraints are those requirements that,resemble design constraints or project constraints.

Definition: Product/Project Constraints

Give an example of a product/project constraint.



Facilitated Group Session Interview Observation Requirements Reuse Business Process Diagramming Prototyping Use Cases

Approaches to Requirements Gathering

Strengths1. Excellent for cross-functional processes2. Detailed requirements are documented and verified

immediately3. Resolves issues with an impartial facilitator

Facilitated Group Session Method

Risks1. Untrained facilitators can lead to negative responses2. Time and cost of planning and executing can be high


Table03-01

Strengths1. End user participation2. High-level description of functions and processes provided

Interview Method

Risks1. Descriptions may differ from actual detailed activities2. Without structure, stakeholders may not know what information

to provide3. Real needs ignored if analyst is prejudiced


Table03-01

Strengths1. Specific/complete descriptions of actions provided2. Effective when routine activities are difficult to describe

Observation Method

Risks1. Documenting and videotaping may be time consuming,

expensive and have legal overtones2. Confusing/conflicting information must be clarified3. Misinterpretation of what is observed


Table03-01

Strengths1. Requirements quickly generated/refined2. Redundant efforts reduced3. Client satisfaction enhanced by previous proof4. Quality increase

Requirements Reuse Method

Risks1. Significant investment to develop archives, maintenance

and library functions2. May violate intellectual rights of previous owner3. Similarity may be misunderstood


Table03-01

Strengths1. Excellent for cross-functional processes2. Visual communications3. Verification of “what is/what is not”

Business Process Diagramming

Risks1. Implementation of improvement is dependent on an

organization open to change2. Good facilitation, data gathering and interpretation

required3. Time-consuming


Table03-01

Strengths1. Innovative ideas can be generated2. Users clarify what they want 3. Users identify requirements that may be missed4. Early proof of concept5. Stimulates thought process

Prototyping

Risks1. Client may want to implement prototype2. Difficult to know when to stop3. Specialized skills required4. Absence of documentation


Table03-01

Strengths1. State of system described before entering the system2. Completed scenarios used to describe state of system3. Normal flow of event/exceptions revealed4. Improved client satisfaction and design.

Use Case Scenarios

Risks1. Information may still be missing from scenario

description2. Long interaction required3. Training expensive


Table03-01

Building the Requirements Breakdown Structure


Figure03-03

Project goaland solution

Requirement 1

Function1.1

Feature1.2.1.1

Featuren.3.1

Sub-function1.2.3

Requirement n

Function1.2

Function1.3

Functionn.1

Functionn.2

Functionn.3

Sub-function1.2.2

Sub-function1.2.1

Featuren.3.2

Featuren.3.3

Featuren.3.4

Feature1.2.1.2

Feature1.2.1.3

Feature1.2.1.4

Project goaland solution

Requirement 1

Function1.1

Feature1.2.1.1

Featuren.3.1

Sub-function1.2.3

Requirement n

Function1.2

Function1.3

Functionn.1

Functionn.2

Functionn.3

Sub-function1.2.2

Sub-function1.2.1

Featuren.3.2

Featuren.3.3

Featuren.3.4

Feature1.2.1.2

Feature1.2.1.3

Feature1.2.1.4

RBS – The Reality


FunctionalRequireme

nt n

The RBS is intuitive and most meaningful to the client

The RBS is a deliverables based approach The RBS is consistent with the PMI PMBOK The RBS remains client facing as long as possible

into the planning exercise

Characteristics of the RBS


Does not require a trained facilitator Does not require learning one of the contemporary approaches

to requirements gathering Allows the client to work with the project team in an

environment familiar to them, i.e., to stay in their own comfort zone

Paints a clear picture of the degree to which the solution is clearly defined

Provides the input needed to choose the best fit PMLC Model

Advantages of using the RBS


Completeness – Are the requirements essentially complete or are some missing?

Clarity – Are the requirements clear? Are they ambiguous or imprecise?

Validity – Do the requirements reflect client intentions? Measurability – Does the requirement have a fit

criterion (measurement)? Testability – Can the criterion be used to test whether

the requirement provides the solution?

Verifying Attributes


Maintainability – Will the implementation be difficult or easy to understand or maintain?

Reliability – Can the reliability and availability requirements be met?

Look and Feel – Have all human factors been met (GUI, ergonomics, etc.)?

Feasibility – Can the requirements be implemented? Precedent – Has a requirement similar to this been

implemented before?

Verifying Attributes (continued)


Scale – Are the requirements large and/or complex? Stability – How often and to what degree might the

requirements change? Performance – Can the performance be met on a

consistent basis? Safety – Can the safety requirements be fully

demonstrated? Specifications – Is the documentation adequate to

design, implement and test the system?

Verifying Attributes (continued)


Not always obvious Come from many sources Not always easy to express clearly in words Many different types of requirements at different levels

of detail Number of requirements can become unmanageable if

not controlled Requirements are not independent and may create

conflict situations Many interested and responsible parties Change as a result of changing business conditions

The Challenge of Requirements Management


What to do to get requirements gathering started

Diagramming business processes Prototyping Business validation

Sometimes the client has trouble envisioning a solution or senior management is not convinced that this project makes business sense.

If so, then consider:


A business process is a collection of activities that takeone or more inputs from one or more different sourcesand produces a change of state that delivers businessvalue.

What is a Business Process?

Changeof state

Business Process

Input B

Input C

Input A


Figure03-04


Typical list of activities Receiving the order Logging the order Verification of completeness Client credit check Determining the price Inventory checking Production request Order picking Order packaging Shipment




Figure03-05

The Top-Down Left to Right Format


Figure03-06

The Swim Lane Format


Figure03-07

Rough description of the processes in a very high level Generally includes few basic components:

A figure representing the external entity that is triggering the process

A large circle representing the organization responding to the request

A text block showing each organization or process acting to fulfill the request

Arrows showing the rough flow between text blocks


Context Diagramming Process

Context Diagramming Process


Figure03-08

A use case diagram is a simple way to describe how an individual interacts with a business process


Use case diagram


Use case diagram - ATM

Does the resulting business value exceed the total cost of the deliverables?

Validate the business case by: Building a simulation prototype

Financial analysis• Cost/benefits analysis• Return on Investment• Breakeven analysis


Validating the business case

You do not have the necessary skills and competencies on your staff Buying the solution is less costly and more effective than building the solution There is a commercial product available that will meet your needs It is more cost effective to have a specialist provide the service It is not part of your core business activity You would like to develop the skills by first using a contractor

Outsourcing to Vendors and Contractors


Procurement Management – The Life Cycle

VendorSolicitation

VendorSelection

Ch02: Project Life Cycle Processes

Procurement Management Life Cycle

VendorSolicitation

VendorEvaluation

VendorSelection

VendorManagement

VendorContracting

Publish Request for Information (RFI) Advertise Rent a targeted list Include previous vendors Attend a trade show where potential vendors are likely to have a booth

Distribute the RFP. It must be clear, specific and with determined deadlines.

Manage RFP responses and questions Vendor meetingAnswer questions individually Respond onlineHold a bidders conference



VendorSolicitation

VendorEvaluation

VendorSelection

VendorManagement

VendorContracting

Establish Vendor Evaluation Criteria•Corporate experience with similar work• Financial stability•Personnel experience, skills, and competencies•Risk management processes•Location•Applicable tools, templates, and processes

Evaluate responses to RFPReduce list of companiesConduct onsite presentations


Evaluation Criteria – Forced Ranking


Consultant

Vendor

A B C D RankSum

ForcedRank

1 2 3 2 4 11 3

2 4 1 1 2 8 1

3 6 2 5 5 18 5

4 1 5 3 1 10 2

5 3 4 4 3 14 4

6 5 6 6 6 23 6

Table03-02

Evaluation Criteria – Paired Comparisons


1 2 3 4 5 6 SUM RANK

1 X 1 1 0 1 1 4 2

2 0 X 1 0 1 1 3 3

3 0 0 X 0 0 1 1 5

4 1 1 1 X 1 1 5 1

5 0 0 1 0 X 1 2 4

6 0 0 0 0 0 X 0 6

Table03-03


VendorSolicitation

VendorEvaluation

VendorSelection

VendorManagement

VendorContracting

Select the final vendor(s)



VendorSolicitation

VendorEvaluation

VendorSelection

VendorManagement

VendorContracting

Negotiate the final contract No award Single award Multiple awards

Types of Contracts Fixed Price Time and Materials Retainer Cost Plus

Final negotiation of contract



VendorSolicitation

VendorEvaluation

VendorSelection

VendorManagement

VendorContracting

Areas to include in the contract:Work schedulePayment scheduleFeesOther terms and conditionsOwnershipWarrantiesCancellation terms



VendorSolicitation

VendorEvaluation

VendorSelection

VendorManagement

VendorContracting

Expectation setting For whom does the vendor work? What is expected of the vendor? What tools and facilities are available to the vendor? What training is available to the vendor? What must the vendor deliver? When must it be produced? Who will receive the deliverables? How will the deliverables be evaluated?



VendorSolicitation

VendorEvaluation

VendorSelection

VendorManagement

VendorContracting

Monitor Progress and Performance Monitor Requirements Change Requests Monitoring the Performance of Standard Project Activities

Labor hours Cost (Earned Value) Schedule Frequency of change requests over time Risks Staffing levels and changes by position

Transition form Vendor to Client Closing out the contract.


A general statement of the project A reference for the planning team A decision aid for the project To get management approval to plan the project

Purpose of the Project Overview Statement

POSs

A one-page description that is:


Contents of the Project Overview Statement


POS Problem/Opportunity

A problem needing resolution or an untapped business opportunity.

A statement of fact that everyone would agree to. It stands on its own.

This is the foundation on which the proposed project will be based.


Situations that will lead to a statement of the problem or opportunity leading to POS include: Known problem or opportunityKnown problem or opportunity: The POS gives proposers a

way to relate their idea to known problems or seizing business opportunities.

Client Request:Client Request: capturing the request and forwarding it to senior management for resolution

Corporate Initiative: Corporate Initiative: Several ideas will come from the employees, and the POS provides a standardized approach to senior management prioritizing proposals

Mandated RequirementsMandated Requirements: : e.g. Market Changes and federal legislation.


POS Problem / Opportunity

The goal gives direction and purpose to the project, summarizing how the organization will address the problems, or act on the opportunities

Don’t commit to specific time or cost goals – the scope of the project is too vague for that

The goal statement must not contain any language or terminology that might not be understandable to anyone having occasion to read it


POS Project Goal

The objective statements elaborate on the goal, and clarify its scope or boundaries

5 or 6 brief statements that further bound your project goal statement.

Each objective should define an expected outcome, the rough time frame it will be done, a measure, and the action needed to meet the objective

From these statements it is clear what is in and not in the proposed project.


POS Project Objectives

George Doran’s S.M.A.R.T. characteristics provide the following criteria for goal and objectives statement

SpecificSpecific—Be specific in targeting an objective. MeasurableMeasurable — Establish measurable indicators of progress. AssignableAssignable— Make the object assignable to one person for

completion. RealisticRealistic —State what can realistically be done with available

resources. Time-related Time-related — State when the objective can be achieved—

that is, the duration.


S.M.A.R.T Objectives

PROJECT

OVERVIEW

STATEMENT

Project Name Project No. Project Manager

Problem/Opportunity

Goal

Objectives

Success Criteria

Assumptions, Risks, Obstacles

Prepared By Date Approved By Date

Office Supply Cost Reduction PAUL BEARER

Our cost reduction task force reports that office supply expenses have exceeded budget by an

average of 4% for each of the last three fiscal years. In addition an across the board budget cut of

2% has been announced and there is an inflation rate of 3% estimated for the year.

To implement a cost containment program that will result in office supply expenses being within

budget by the end of the next fiscal year.

1. Establish a departmental office supply budgeting and control system.

2. Implement a central stores for office and copying supplies.

3. Standardize the types and brands of office supplies used by the company.

4. Increase employee awareness of copying practices that can reduce the cost of

meeting their copying needs.

1. The total project cost is less than 4% of the current year office supply budget.

2. At least 98% of office supply requests are filled on demand.

3. At least 90% of the departments have office supply expenses within budget.

4. No department office supply expense exceeds budget by more than 4%.

1. Central stores can be operated at or below the breakeven point.

2. Users will be sensitive to and supportive of the cost containment initiatives.

3. Equitable office supply budgets can be established.

4. Management will be supportive and consistent.

5. The existing inventory control system can support the central stores operation.

Olive Branch Del E. Lama9/2/04 9/3/04

Example POS


Figure03-11

POS Project Success Criteria

IRACIS

IR Increase RevenueAC Avoid CostsIS Improve Service

Use quantitative metrics only!How much and by when?


Technological New to the company Obsolescence

Environmental Management change Staff turnover

Interpersonal Working relationships

Cultural Fit to the company

Causal Relationships Will the solution solve the problem

POS Assumptions, Risks and Obstacles


Risk Analysis Financial Analyses

Feasibility studies Cost/benefit analysis Breakeven analysis Return on investment

POS Attachments


Expected Review Questions from Management How important is the problem or opportunity to the organization? How is the project related to our CSFs? Does the goal statement related directly to the problem or opportunity? Are the objectives clear representations of the goal statement? Is there sufficient business value as measured by the success criteria to warrant further expenditures on this

project? Is the relationship between the project objectives and the success criteria clearly established? Are the risks too high and the business value too low? Can senior management mitigate the identified risks?

Gaining Approval to Plan the Project


Core project team Project team Project manager Resource managers Function/process managers Client Senior management

Participants in the Approval Process


epm5-slides-ch03.ppt

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