Initiating Process Group S M Mumtaz Ahmad PMP

Initiating Process Group S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant

Initiating Process Group • Initiating includes: • Documenting the organization’s business needs or requirements • Developing clear descriptions of the project objectives • Outlining the project scope, deliverables, duration and resource estimates, and investment analysis • Identifying management responsibilities • Selecting the Project Manager • Developing the Project Charter and Identify Stakeholders S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant 2

Initiating Process Group S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant

Action prior to Initiating Process • Document high level requirement as part of larger organizational initiative. • The feasibility of new undertaking be established through a process of evaluating alternatives. • Clear description of project objectives including the reasons why s specific project is best alternative. • The document of this decision may contain: a. the initial project statement. b. deliverables. c. project duration and a forecast of the resources for the organization’s investment analysis. S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant

Initiating Process Groups (5) Knowledge Areas (9) Integration Scop Mgmt e Mg mt Initiating 4. 1 Develo p Project Charter Time Mgm t Cost Mg mt Qualit y Mgmt HR Mgm t Comm Mgmt Risk Mgmt Procure ment Mgmt Stakeholder Management 13. 1 Identify Stakehold ers S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant 5

4. 1 Develop Project Charter Inputs 1. Project Statement of Work 2. Business Case 3. Agreements 4. Enterprise environmental factors Tools and Techniques Outputs 1. Expert judgment 1. Project Charter 5. Organizational process assets S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant 6

Input-1. Project Statement of Work (SOW) What is in SOW? Business need Product scope description Strategic plan • All projects should supports Organization’s strategic plan S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant

Business need Project may come out due one or more of following needs. • Market demand • Organizational need • Customer request • Technological advance • Legal requirement • Ecological impacts • Social Need S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant

Input-2. Business Case Business case. It is the document that which describes why a project should be done. The Business need and cost benefite analysis are there in business case to justify the project. The external organization or customer in the case of external projects may write the Business case. S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant

Benefit Analysis method The following benefit analysis methods are applied for comparing the projects. • Benefit measurement methods-The most common Ø Ø methods seek to quantify the monetary benefits and expected costs that will result from a project and compare them to other potential project to select the ones, which are most visible and desirable. Such methods are called “benefit measurement methods “in PMBOK. Murder board (a panel of people who try to shoot down a new project idea) Peer review Scoring models Economic Models S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant

Benefit Analysis method Economic Models for Project Selection As noted previously, such economic models take a comparative approach and fall into the category of benefits measurement methods Ø Present Value Ø Net Present Value Ø Internal Rate of Return IRR Ø Payback period Ø Cost benefit Analysis S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant

Scoring Model Table Options Customer Satisfaction Weight=5 Low Cost Weight=3 High Quality Weight=2 Total Raw Score Weighted Score: x 5 Raw Score Weighted Score: x 3 Raw Score Weighted Score: x 2 Raw Score Weighted Score: Project 1 2 10 5 15 3 6 10 31 Project 2 1 5 4 12 2 4 8 21 Project 3 4 20 3 9 2 4 9 33 Project 4 1 5 2 6 3 6 6 17 Project 5 5 25 2 6 2 4 9 35 S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant

Scoring Model Table OPtions Customer Satisfaction Weight=5 Low Cost Weight=3 High Quality Weight=2 Total Raw Score Weighted Score: x 5 Raw Score Weighted Score: x 3 Raw Score Weighted Score: x 2 Raw Score Weighted Score: Project 1 2 10 5 15 3 6 10 31 Project 2 1 5 4 12 2 4 8 21 Project 3 4 20 3 9 2 4 9 33 Project 4 1 5 2 6 3 6 6 17 Project 5 5 25 2 6 2 4 9 35 S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant

Benefit Analysis method 2. Constraint Optimization Methods (Mathematical approach) Ø Liner programming Ø Integer programming Ø Dynamic programming Ø Multi-objective programming S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant

Input 3 Agreements S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant

Input-4. Enterprise Environmental Factors Government or industry standards • e. g. regulation, code of conduct, product standard, quality standards, and workshop standards Organizational infrastructure • e. g. existing facilities and capital investments Marketplace condition S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant

Input- 5. Organization Process Assets • Organizational standard processes, such as standards, policies, Standardized guidelines, work instructions, proposal evaluation criteria, and performance measurement criteria • Templates e. g Project charter template • Historical Information. • This is a record of past policies. It is used to plan and manage future projects, thereby improving the process of project management. Historical Information may include” • • • Activities Bench marks WBS Risks Reports Resources needed Estimates Correspondence Project Management plan Lessons learned S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant

Tools & techniques-Expert Judgment may come from: • Other units within the organization. • Consultants. • Stakeholders, including customer or sponsor. • Professional and technical association. • Industry groups • Subject matter experts • Project management office (PMO) S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant

Output-Develop Project Charter The Project Charter is the only out put of this process. It encapsulates the collective visions of the key stakeholders and passes it to the project team to enable, and as a basis for project planning. The Charter also authorizes the project Key Stakeholders Project Sponsor Project Charter Project Manager Project Team Executives S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant 19

The Project Charter -What’s in it? (cont. ) Project purpose or justification High level Requirements Measurable project objectives and related success criteria High level project description Project Charter • The Project Charter summarizes all of the pre-project planning by the stakeholders, management, and customers S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant 20

The Project Charter What’s in it? Summary Milestone schedule Name and authority of the sponsor Summary budget High level risks Assigned Project Manager, responsibility, and Authority level Project Charter • The Project Charter summarizes all of the pre-project planning by the stakeholders, management, and customers S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant 21

Project Charter of a Cosmetics Company Project Title Spa Z Sales Network Project Start Date November 15, 2004 Projected Finish Date January 15, 2005 Project Manager Paul Mc. Cullough The Project Manager will be primarily responsible for: Delivering the project on time, within budget and to specification Managing project staff, suppliers, customers and all other project stakeholders Undertaking the activities required to initiate, plan, execute and close the project successful Business Need There is a business need to provide the field sales force with remote access to the corporate network. Project Description A cosmetics company is planning to provide its field sales force with remote access to the corporate network to access sales order processing and customer relationship management information when the sales agents are on the road. When the sales agents visit retail accounts, they secure orders and estimate future demands for products. They will use the remote access to enter the sales order directly into the corporate system. Contd…… S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant

Project Charter of a Cosmetics Company Project Objectives The objectives of this project are to: purchase 200 laptops set up Internet service provider accounts for each of the agents install a virtual private network server at the company's headquarters train the sales agents to use the new system. Authorized Budget $800, 000 The Project Sponsor Alan Fletcher will be primarily responsible for: Leading the Project Board as Chairman Defining the vision, purpose and objectives of the project Approving the requirements, timetable and resources Approving the provision of funds and resources Authorizing acceptance of the final solution delivered by the project Sponsor Sign-off ________________ Michele Adams, Vice President of Sales and Marketing S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant

Identify Stakeholders It is critical to identify stakeholders early in the project and analyze their levels of interest, expectations, importance, and influence. This should be reviewed during project execution to adjust for potential changes Inputs Tools and Techniques Outputs 1. Project Charter 1. 2. Procurement documents 1. Stakeholder analysis Stakeholder register 2. Expert judgment 2. Stakeholder management strategy 3. Enterprise environmental factors 4. Organizational process assets S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant

Identify Stakeholders Tools and Techniques 1. Stakeholder Analysis Step 1 -Identfy all potential project stakeholders and relevant information. Step 2 -Identify the potential impact or support each stakeholder could generate, and classify them so as to define an approach strategy. Multiple classification models are available including following: S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant

Identify Stakeholders Tools and Techniques Stakeholder Analysis – Power/interest grid with A-H representing the placement of generic stakeholders S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant

Stakeholder Analysis Interest Low High Power Low S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant

Example of a Stakeholder Analysis Context Diagram S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant

Identify Stakeholders Tools and Techniques 2. Expert judgment S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant

Identify Stakeholders Outputs 1. Stakeholder register S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant

Stake Holder Register Project Name: Prepared by: Date: Project Stakeholder Specific Information Needs Best Source of Information Needed Planned Method of Delivery Timing Considerations Project Manager Customer # 1 Customer # 2 Customer # 3 Performing Organization Project Team Members Sponsor Other Internal Stakeholder Other External Stakeholder S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant

Stakeholder Analysis Matrix 2. Stakeholder management strategy- it defines an approach to increase the support and minimize negative impacts of stakeholders throughout the entire project life cycle. Stakeholder management Strategy can be represented in the form of matrix. Some of the information related to certain stakeholder management strategies could be too sensitive to be included in the shared document. The project management has to exercise judgment in this regard. S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant

DAY 1 -Quiz 3 S M Mumtaz Ahmad, PMP, PMI Leadership Institute’s Master Class Graduate-Trainer & Project Management Consultant