Project Management For Dummies. Stanley E. Portny

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among the different possible options for addressing the situation

       Discussion of the recommended course of action to pursue in the project

      If necessary, a formal needs assessment may be conducted to clarify the business needs to which this project relates. A needs assessment (also called a gap analysis) is a formal study to determine the actions an organization must take to move from the currently existing situation to what’s desired in the future. This study consists of the following components:

      1 Defining the aspect of organizational operations you want to address and the measures you’ll use to describe performance in this area (this identifies the subject of your analysis)

      2 Determining the current values of the measures you selected in the first step (this defines the current state)

      3 Defining the values of the measures you would like to have exist in the future (this describes the desired state)

      4 Identifying the gaps that exist and need to be filled between current state and future state

      5 Proposing actions that will help the organization move toward the desired future situation (these are the steps to get from current state to future state)

      

The organization’s goal is to fund those projects that, when successfully completed, would provide the greatest benefits to the organization and have the greatest chances of being completed successfully. Therefore, the business case should do the following:

       Clearly describe the project’s intended outcomes

       Identify the organization’s mission, goals, and operating objectives that’ll be affected by the project’s results

       Identify other projects addressing the same or similar issues that have been completed, are underway, are being planned, or are being proposed and clearly explain why this project will provide greater benefit when completed and has a greater likelihood of being successfully completed

      

The business case should be prepared by a person who is external to the project, such as a senior manager of the unit on which the project will focus or a product manager if one exists. The project initiator or sponsor should be at a level where they can procure funding and commit resources to the project.

      

When you’re thinking about submitting a possible project for consideration, be sure to check for existing organization processes or procedures to which your submission must conform. In particular, look for information about the following items:

       Dates by which your submission must be received

       Topics that must be addressed and/or formats in which your submission should be prepared

       Criteria (and relative weightings) that’ll be used to evaluate your submission

      After it’s received, the business case for a project should be reviewed to determine its conformance with the organization’s needs and priorities. If the initial submission is approved, a project charter is prepared (by the project manager) containing all the information required to decide whether the project should proceed to the organizing- and-planning phase of its life cycle. The project charter, when approved, authorizes the existence of a project and provides the project manager with the authority to use organizational resources to support the performance of project activities.

      The project charter may include, but is not limited to, the following information about the products, services, or other results the project will produce:

       Project name

       Project purpose

       Assigned project manager, responsibility, and authority level

       Name and authority of the sponsor(s) authorizing the project

       High-level project description, boundaries, and key deliverables

       High-level business requirements

       Measurable project objectives and corresponding success criteria

       Project approval requirements (who decides the project is successful and who signs off on the results)

       Summary milestone schedule

       Preapproved financial resources (budget)

       Overall project risk

       Key stakeholder list

       Project exit criteria

      Two studies that may be performed to generate additional insight into the potential value and likelihood of success of the project being considered are a cost-benefit analysis and a feasibility study. The following sections discuss the types of information each seeks to provide and describe the documents produced during the development of a project charter.

      

A project manager should be assigned as soon as possible after the business case is accepted and certainly before the project enters its organizing and planning phase. This will allow the project manager to participate in the development of the project charter and, in this way, become familiar with the reasons for the approaches planned and the results to be produced.

      Performing a cost-benefit analysis

      A cost-benefit analysis is a comparative assessment of all the benefits you anticipate from your project and all the costs required to introduce the project, perform it, and support the changes resulting from it. Cost-benefit analyses help you:

       Decide whether to undertake a project or decide which of several projects to undertake

       Frame appropriate project objectives

       Develop appropriate before and after measures of project success

       Prepare estimates of the resources required to perform the project work

      

Consider costs for all phases of the project. Such costs may be nonrecurring

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