Project Definition Document
Blog: Biz-Performance, David Brown
Project Definition Guide
Purpose
Rationale
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describes goal and success criteria of the project
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outlines the project time-frame, budget and major deliverables
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defines the overall framework and approach for executing the project
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defines the resource staffing levels necessary to perform project work
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defines the project management infrastructure necessary to control the project effectively.
Requirements
Element | Description |
Executive Summary | A one page summary of key information from the Project Definition Document. |
Introduction |
A high level description of what is to be achieved by the project and why, including the:
|
Scope |
A description of the work that is encompassed by the project including:
|
Benefits |
A statement of the business benefits to be derived from the project, identified as:
|
Risks | A summary of events which are external to the project and which have not yet happened but which, if they did happen, would detrimentally impact one or more project deliverable. Each risk should contain indications of likelihood and impact. |
Delivery |
A description of the way the project will be done in order to achieve the objectives. This explanation should include factors that determine the approach, including:
|
High Level Milestone plan | A high level plan showing the key milestones, their dates and interdependencies. |
Finances
Budget categories are:
|
A description of the:
Based on an average full cost per project and location
Either actual contract cost or as for internal resources
For items such as travel, accommodation, videoconferencing, external training
For equipment or project infrastructure such as computers and rental of office space
The total project budget for which the project manager is responsible. |
Project Organisation |
A description of the organisation of the project required to achieve the objectives, including the:
|
Developing the Executive Summary
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be concise (with a strong target of one page)
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summarise the content of the project definition, not add new material.
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business imperative, summarising the
– mission
– case for change
– objective -
key benefits
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key milestones
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financial summary.
Constructing the Introduction
Mission
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what
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how
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why
Case for Change
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that the consequences of inaction (the do-nothing scenario) are against the interests of the organisation
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that the benefits are derived by changing either the way the organisation works or through what the organisation does.
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reducing costs
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increasing revenue from current activity or
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increasing revenue by undertaking new activities
Objectives
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set the expectations of the Project Sponsor and Stakeholders
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provide a target point to guide the Project Team
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allow determination of when the project is finished
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objectives must state “What” not “How”
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objectives should be measurable
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the “To… in a way that … so that …” statement style may be useful
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using the “So what?” challenge on statements of objectives can help cut thorough unclear statements to expose he real underlying objective.
Defining Project Scope
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identifying the project deliverables
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identifying the boundaries via inclusions and exclusions.
Deliverables
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be complete, so that no major deliverables are left out of the scope
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be a high-level description of the deliverables, since not all details are known at this stage
Boundaries
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organisation
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geography
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business process
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technology platform.
Included | Excluded |
Documenting the Benefits
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quantitative benefits
that can be expressed numerically and can ultimately be translated into monetary terms -
qualitative benefits
that tend to be “softer” and are measured on more subjective criteria such as satisfaction.
Identifying Initial Risks
Risk
|
Impact
(H/M/L) |
Probability
(H/M/L) |
Management strategy
|
Defining the Delivery Strategy
Approach
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obtaining benefits as quickly as possible
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reducing risk
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ensuring business constraints are considered
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establishing “Go/No Go” points for re-evaluating the cost-effectiveness of the project based on updated estimates, technical feasibility and current business environment
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achieving early useful deliverables without putting undue burden on the users; and,
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cost effectiveness
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the relative merits of “build versus buy” for systems or parts thereof
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“Big Bang” implementations generally contain significant risk and delay achieving benefits until the end of the project
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“Phased” implementations generally reduce risk and deliver benefits earlier, but may be more costly and longer in duration.
Critical Success Factors
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a full and proper understanding of the requirements, with frequent reviews of the requirements and deliverables
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a forward looking risk management and risk minimisation approach
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high user involvement
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high visibility of the progress and issues through a strong reporting procedure and project issue reporting
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efficient use of all resources
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an understanding of the critical dependencies
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understanding and attention to the external interfaces to the project.
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a co-operative team centred approach
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efficient working practices with a focus on the specific deliverables
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commitment to time targets and budgets
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early and structured communication of problem areas or uncertainties; problems identified are often problems solved
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open communication within the team and with associated third-parties.
Constraints
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dates
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legislation
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money or resources
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Most constrained Some constraint Least constrained ScopeXTimeXCostX
Dependencies
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the receiver of a deliverable transferred from this project to another
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the producer of an external deliverable to this project
Assumptions
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the network infrastructure is assumed to be adequate to run this increased functionality without upgrade
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the Group application development strategy is to use xxx technology
Documenting the High Level Milestone Plan
Milestone | Deliverable(s) | Planned Date |
Project Definition Completed | Approved Project Definition Document | |
Including Project Finances
Describing the Project Organisation
Roles and Responsibilities
Role | Responsibilities | Name(s) |
Project Review Board | ||
Project Sponsor | ||
Project Manager | ||
Project Team |
Key Resources
Requirements/ Skills
|
Name
|
External Suppliers
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the role of the external supplier on the project
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deliverables the external supplier will produce.
Project Infrastructure Requirements
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facilities for the Project Team – with consideration to central or dispersed location
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equipment – including wide and local area networks, teleconference, videoconference etc
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office supplies
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access to office facilities, as needed.
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signature authority for the Project Manager and Team Leaders
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purchasing procedures
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systems access
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work day schedules
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secretarial and administrative support
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travel guidelines and expense reimbursement
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communication vehicles, such as access to an electronic mail system.
Appendix – Project Definition Checklist
Executive Summary
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Can the reader appreciate the whole document if this was the only section they read?
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Does the executive summary include the business imperative (summarising the mission, case for change and objectives), the key benefits, the key milestones and a financial summary?
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Are there any aspects of the project that warrant executive attention because of factors such as strategic relevance or high risk? Are these included?
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Does the Executive Summary fit on one page?
Introduction
Mission
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What is the expected value to the business from of the project?
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What is the business problem to be solved?
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What must the key stakeholders see as results from the project if they are to declare it a success?
Case for Change
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What are the problems and/or requirements that initiated the project?
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What is the background to this project?
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What are the business drivers? Will the project help reduce costs or increase revenue?
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What new business opportunities are created by this project?
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Will this project change existing procedures?
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Is other organisational change likely during the project?
Objectives
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What expectations do the sponsor and other key stakeholders have for the project?
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What must be achieved for the project to be declared complete?
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How will success be measured?
Scope
Boundaries
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Is it clear what the project includes and excludes?
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Are there specific inclusions or exclusions for divisions, geographies, functions, technologies, or other factors?
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Which business functional areas are involved? Which business functional areas are not involved?
Deliverables
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Have all the deliverables for the project been identified?
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Is there a product breakdown structure so the composition of deliverables is clear?
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Is there a definition or description of each deliverable?
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Who will own or use each deliverable after the project is complete?
Benefits
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How will this project improve , costs, revenue, processes or organisation?
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Are the benefits related to the business case for the project?
Quantitative Benefits
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What are the measurable results expected from the project (e.g. cost reduction and revenue enhancement)?
Qualitative Benefits
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What benefit will the project bring that are ”soft”, or subjective, and likely to be measured on the basis of personal opinion?
Risks
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What are the major risks, threats or obstacles to achieving the benefits from the project?
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Are risks assessed for both severity of impact and likelihood of occurrence?
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How will the project management or approach be tailored to mitigate this risk?
Delivery Strategy
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What is the project’s completion criteria?
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Who and what establishes that the project is done?
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How will the project be accomplished?
Critical Success Factors
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What do stakeholders and sponsors expect to be the outcome?
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What things must be achieved for the project to be a success?
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What things must be in place if the project is to work as planned?
Constraints
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Are there any constraints in respect to the project?
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Are there current standards that need to be followed?
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Does the project depend on key resources or resource groups?
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Is the project linked to a particular legislation?
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Is there a genuine deadline date for the project?
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Does a fiscal year or calendar year play a role?
Dependencies
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What other active projects are related to this one?
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What is this project’s priority in relation to other current or proposed projects?
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Are there any external dependencies (out-sourced work packets, regulatory environment)?
Assumptions
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What are the assumptions made about the project (regarding e.g. resources, business processes, technology availability etc.)?
High Level Milestone Plan
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What are the phases into which the work effort will be divided?
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What are the milestones related to the major deliverables?
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When will each milestone be achieved?
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What are the interdependencies between milestones?
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Are there points when the project might be ended, or at least totally re-evaluated (Go/No-Go points)?
Finances
Budget
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What is the financial commitment?
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What are the initial costs?
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What are the expense guidelines?
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What is the summary estimate of the labour and costs of the project—a top-down high-level estimate for phases and activities?
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What is the initial estimate range including contingency?
Funding
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From what budget will the project be funded?
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Who has authority to provide or refuse funding?
Organisation
Roles and Responsibilities
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Is the project organisation represented in an organisation chart?
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Are the key management roles such as sponsor, project review board and project manger identified?
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Are the business managers who are impacted by the project, or who can impact the project, identified as stakeholders?
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Who is the Project Sponsor?
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What is their level in the organisation?
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What is their level of commitment?
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Who are the Project Review Board members?
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Who is making the Go/No-Go decision?
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What is the time commitment for each Team Member?
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What is the resource-staffing plan?
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What is the organisation chart that depicts the Project Team?
Key Resources
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Is the design of the project dependent on very few people?
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Are the key resources going to be available for the required amount of effort and at the required time to meet project milestones?
External Suppliers
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Is the project dependent upon third parties for resources or deliverables?
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What are their roles?
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What are the deliverables to be provided by the supplier, and what are their prices/fee arrangements?
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What are the deliverable confirmation specifications?
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What is the payment schedule and what are the provisions?
Project Infrastructure Requirements
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What are the infrastructure (technical, hardware and software, work space), resources and project sponsorship requirements?
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Where will the work be done in respect of business unit location and/or the physical presence of the project team members?
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What are the work planning procedures?
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