1. 1 © The Delos Partnership 2004 Project Initiation Controlling the start of the project

2. 2 © The Delos Partnership 2004 Project Initiation At the end of this session you will have an understanding of the following:- 4 Stages within Project Initiation The Business Filters Project Charter(s)

3. 3 © The Delos Partnership 2004 The PMI® Project Management Life Cycle InitiatingProcessesInitiatingProcessesPlanningProcessesPlanningProcesses ControllingProcessesControllingProcesses ClosingProcessesClosingProcesses ExecutingProcessesExecutingProcesses

4. 4 © The Delos Partnership 2004 PMI® Initiating Processes 5.1Initiation5.1Initiation Business Case CaseBusiness CharterCharterInitialInvest.InitialInvest. Idea

5. 5 © The Delos Partnership 2004 Ideas - Pick the Winners BIs UIs GIs (Business Imperatives) (Good Ideas) (Useless Ideas)

6. 6 © The Delos Partnership 2004 Project Choices – the Five Dimensions Project Strategic Fit Strategic Fit Market Attractiveness Market Attractiveness Technology Fit Technology Fit Business Impact Change Orientation Change Orientation

7. 7 © The Delos Partnership 2004 Strategic Fit Key Factors 14710Rating Fit to Strategy PeripheralModestGoodStrong Platform for Growth Dead-endOpportunity for business extension Potential for diversification Opens up new Opportunity Synergy Single programme Could be applied to another programme Could be adapted to several programmes Could be applied widely across the business Competency Improvement Does not enhance skills Contributes to strategic plan Builds on current skills to grow Significantly enhances skills Geographic Scope Local customers Supports country customer base Supports Regional customer base Potential for Globalisation

8. 8 © The Delos Partnership 2004 Market Attractiveness Key Factors14710Rating Market Need Little apparent need Need must be highlighted. ‘me too’Ahead of market Market Maturity DecliningMature or Embryonic Modest growth High Growth expected Competitive intensity HighModerate/HighModerate/LowLow Sales and Distribution Skills needed, in new channel Existing skills in new channel Existing sales operations Uses existing sales & distribution Target market opportunity Small margins; small market Small margins; large market Large margins; small market Large margins; large market Community Relations NegativeNeutralFavourablePositive impact

9. 9 © The Delos Partnership 2004 Technology Fit Key Factors14710Rating Technical Gap Large gapMajor step change Step changeIncremental Improvement Project Complexity Difficult to define Easy to defineChallenge, but do-able Straight Forward Technology Skill Base Technology new to business Some experience Selectively practised in the company Widely practised in the company Availability of People No appropriate people Shortage in key areas People available People immediately available Availability of Systems/ Facilities No appropriate systems/ facilities Current systems require modifications Available, need advance planning Available and ready

10. 10 © The Delos Partnership 2004 Business Impact Key Factors14710Rating Availability of Funding Not AvailablePartially Available Could be made available Burning platform Benefits to the Company Cannot be substantiated Difficult to substantiate Quantifiable in specific areas Quantifiable Attractive Benefits Stakeholder Commitment & Buy-In Detached from Programme Lukewarm. Little Business Commitment Functional commitment. Clear Focused Commitment Availability of People No ResourceSome resource available Could be rescheduled Resouces immediately available Effect on Other Company Programmes Major disruption Disruption. Inconvenient Rescheduling required No detrimental effect

11. 11 © The Delos Partnership 2004 Change Orientation Key Factors14710Rating Dissatisfaction with present It aint broke don’t fix it Partial recognition of problem Recognition of need to change Burning Platform Attractiveness of Future No fit with values of company Uncertainty about final outcome Benefits agreed but not measurable Both Top Down and Bottom up desire Effort of Transition Mission impossible Difficult to predict Can do but resource conflicts not dealt with Aligned approach Sponsorship Commitment No resources available PartialTeam in place but skills need to be developed Competent team up and running Cultural Fit Not availablePartialFrom Compliance to Commitment Self Sustaining

12. 12 © The Delos Partnership 2004 First Cut Priority Check ProjectStrategicMarketTechnologyBusiness Impact Change orientation Overall Average 1 10 10.0 2 1087 58.0 3 985887.6 4 767797.2 5 478956.6 6 389656.2 7 744585.6 8 655545.0 9 232373.4

13. 13 © The Delos Partnership 2004 The PMI Project Management Life Cycle InitiatingProcessesInitiatingProcessesPlanningProcessesPlanningProcesses ControllingProcessesControllingProcesses ClosingProcessesClosingProcesses ExecutingProcessesExecutingProcesses Business Case CaseBusiness CharterCharterInitialInvestigationInitialInvestigation Idea

14. 14 © The Delos Partnership 2004 Technical Feasibility Study Refine Scope of Activity –Prepare Statement of Work. Make or Buy –Rationale and Options –Do we have or can we acquire the skills? Do we have a solution? –Technical Issues & Risks –Commercial Issues & Risks –Rough Cut Costs Background & Experience

15. 15 © The Delos Partnership 2004 Business Attractiveness FactorWeightRatingScore Market Size 201 Competition 100.55 Route to Market 150.57.5 Growth 301 Positioning 251 Total 10087.5

16. 16 © The Delos Partnership 2004 Operational Capability FactorWeightRatingScore Capacity 300.26 Capability 200.36 Systems 150.34.5 Infrastructure 150.57.5 Marketing 200.36 Total 10030

17. 17 © The Delos Partnership 2004 Resource allocation Programme Overall Average Business Attraction Operational Capability Critical Resource Accumulated Resource Commit 11087300.5 Yes 2870800.30.8Yes 37.666420.10.9Yes 56.658800.11.0Yes 93.41880nil1.0Yes 66.220 0,21.2No 75.640500.41.6No 8545200.21.8No 47.215200.42.2No

18. 18 © The Delos Partnership 2004 Prog.Portfolio Mgmt Weak Average Strong Operational Capability HighMediumLow Business Attractiveness P1 P3 P8 P2 P4P6 P7 P5P9

19. 19 © The Delos Partnership 2004 The PMI Project Management Life Cycle Initiating Processes Initiating Processes Planning Processes Planning Processes Controlling Processes Controlling Processes Closing Processes Closing Processes Executing Processes Executing Processes Business Case Business Case Charter Initial Invest. Initial Invest. Idea

20. 20 © The Delos Partnership 2004 Technical Feasibility Study Refine Scope of Activity –Prepare Statement of Work. Make or Buy –Need for control, Intellectual Property –Do we have or can we/do we want to acquire the skills? Do we have a solution? –Technical Issues & Risks –Commercial Issues & Risks –Rough Cut Costs Background & Experience

21. 21 © The Delos Partnership 2004 Developing the Business Case Benefits Objectives Critical Success Factors Deliverable Costs What will be the Business Benefit? Benefits Mgmt Process What must be achieved? Strategic / Tactical / Operational What must go right? Pertaining to Overall Success What must we do at Deliverable Level ? High Level Work plan What will it cost? Cost +/- 10% / Risks/ Assumptions ? What ? How ?

22. 22 © The Delos Partnership 2004 Benefit Analysis Types Discounted Cash Flow Types Net Present Value (NPV) Return on Investment (ROI) Non Discounted Case Flow Types Benefit Cost Analysis (BCA) Payback Period

23. 23 © The Delos Partnership 2004 The PMI Project Management Life Cycle Initiating Processes Initiating Processes Planning Processes Planning Processes Controlling Processes Controlling Processes Closing Processes Closing Processes Executing Processes Executing Processes Business Case Business Case Charter Initial Invest. Initial Invest. Idea

24. 24 © The Delos Partnership 2004 Initiating the Project  Develop goals and objectives  Define project deliverables  Define high level scope  Identify high-level activities  Document project assumptions  Secure project sponsorship  Obtain approval to proceed InputOutput Process Initial Project Charter  Initial Project Charter  Major Constraints Identified  Major Assumptions Listed  Project Manager Assigned  Authority to Proceed Business Case

25. 25 © The Delos Partnership 2004 What is a Project Charter? The Project Charter provides authority for the project to proceed. The Charter documents the agreement between the Sponsor, the Programme Manager (if appropriate) and the Project Manager and provides a blueprint for the project Makes the project visible from “start”

26. 26 © The Delos Partnership 2004 The Charter Should Contain A clear statement of the project’s objectives, High Level Scope and deliverables; The rationale for the project (headlines from the business case) Definition of the project roles & responsibilities Outline of the High Level Plan Document of related projects Roles and Responsibilities

27. 27 © The Delos Partnership 2004 Define Project Objectives & Major Deliverables Define Project Structure & Resource Plan; Prepare High Level Project Budget; Prepare Business Case Compile Project Charter; Initiating the Project - Key Project Manager Activities

28. 28 © The Delos Partnership 2004 What is an Objective? Specific (What is it we are trying to do?) Measurable (How will we know we have achieved it?) Achievable (Can we do it?) Relevant (Is it the right thing to do?) Time-related (When will we do it?) A statement of a particular desired outcome supporting the Goal that is:

29. 29 © The Delos Partnership 2004 Case Study Breakout Session 1

30. 30 © The Delos Partnership 2004 The PMI® Project Management Life Cycle Initiating Processes Initiating Processes Planning Processes Planning Processes Controlling Processes Controlling Processes Closing Processes Closing Processes Executing Processes Executing Processes