Determining the scope of a project involves discussions with clients and users of project deliverables to determine their requirements and needs.
BUSINESS CASE SCOPE
cope determines the size of a project. A business case scope defines the boundaries of the proposed project and states them clearly for the audience and decision makers.
Determining the scope of a project involves discussions with clients and users of project deliverables to determine their requirements and needs.
Successful business enterprises consider seven factors when determining whether to develop a new product or service. These factors should be considered at the planning stages of a case:
THE BUSINESS CONCEPT
New business concepts generally attempt to develop something new, something better, a new or under-served market, or greater integration of a company's products or services.
BUSINESS FOCUS
Staying focused on the central character of the business will help ensure that any new ideas that are developed are aligned with the corporate strategy. The mission statement can help managers remain focused.
MANAGEMENT
A project is more likely to succeed if the managers possess certain attributes: industry or management experience, a realistic approach to business needs, a flexible attitude to change, and the ability to work well with other people.
INDUSTRY HEALTH
The economic health of an industry is a strong indicator of whether a product will be successful. There is an increased chance that a new product or service will be successful if it responds to a healthy industry.
the market
Key market factors that affect the product success include market readiness, demographics, the size of the market area, and pricing.
FINANCIAL CONTROL
Financial control requires establishing the profit margins for a project and includes correctly estimating costs, such as research and marketing, having access to financial information, and managing cash flow.
anticipation of change
It is important to anticipate changes that may affect the new project. These include technology changes, social changes, and new projects introduced by rivals.
QUESTION 1
Identify the factors that should be considered at the planning stages of a business case.
A business concept is an attempt to develop a new or improved product or service.
New projects have a better chance of success if they are aligned with the organization's stated corporate strategy.
It is important to select the right managers for a new project.
A new project is more likely to succeed if it is developed as part of a strong and healthy industry.
The format used to present the business case is not relevant to defining the scope of the project.
If a project involves creating a new product, that product is more likely to be successful if certain market factors have been taken into account. The factors include market readiness, demographics, the size of the market area, and pricing.
All the financial aspects of the proposed project should be taken into account at the planning stages of the business case.
It is important to anticipate changes that may affect the new product or service and take these into account when developing the business case.
To increase the chances of securing funding for your project, your business case must have
The scope defines the size of a project. It has a large impact on the probability of project success. In general, smaller projects are more manageable and therefore have a higher likelihood of success.
Scope can include such areas as project
An item that is in scope will be included in the project--for example, a new computer system as part of a project to update a company's Order Processing Department.
Something deferred will be delivered in a later stage.
Something out-of-scope will not be included in the project.
It's important to explicitly identify items to be excluded from the scope to reduce misunderstandings and conflict.
Ralph and Marsha are managers in Gleeson Associates, a systems support company. They believe that the company should set up a training division and offer a range of courses. Follow their conversation as they decide on the scope of the business case that they are going to prepare for the project.
Ralph: Hi Marsha. I have just been looking at the customer survey data. One area that consistently impressed customers was the high level of knowledge and expertise displayed by our staff.
Marsha: That's true. This expertise is a valuable resource and that's why the project to develop a Customer Training Department is such a good idea.
Ralph: Some staff training will be needed to get the department up and running.
Marsha: We will need to train the staff within the next three months so they will be ready for the official launch of our training courses.
Ralph: I have an idea: if we are preparing a business case anyway to obtain funds and resources, could we expand the business case to obtain the funds we'll need to develop an Online Training Department?
Marsha: The Online Department is a good idea. However, it is outside the boundaries of this project, so we will not include it in this business case.
Ralph: You're right. It is outside the scope of the business case. Thanks for pointing that out.
The conversation Ralph and Marsha just had has enabled them to set the scope of the project. They have outlined the assumptions and constraints that will affect the project. And they are aware when project deliverables are outside the project scope.
The scope of a business case can be influenced by a number of factors:
Business case drivers are the major business factors that propel the need for the project now, rather than six months ago or six months from now.
Identifying the primary business case drivers is extremely important and extra care must be taken to be sure the business drivers are correct. The drivers are specific to each project.
The correct drivers will
When preparing a business case, it's vital to identify all the project constraints as early as possible.
A constraint is a restriction that will affect the performance of a project and limit activities throughout the project life cycle.
Every project will have factors that limit or constrain its options.
For example, a predefined time frame to develop the project is a constraint that limits a project team's options regarding scope, staffing, and schedule.
Another example of a constraint is a requirement that the product of a project be socially, economically, and environmentally sustainable.
It is unlikely that any project will have unlimited resources, funding, and time to complete the work. Constraints usually fall into three categories:
FINANCIAL CONSTRAINTS
These limit the project team's options regarding the development of a business case and include such things as project costs, capital costs, materials, revenue, resource costs, and rate of return required.
TIME CONSTRAINTS
A time constraint, such as the establishment of imposed start and finish dates, or major milestones, limits team options by restricting the time permitted for delivering results.
QUALITY CONSTRAINTS
These constraints affect specifications and standards to be achieved by the project. Regulations and standards imposed by the company or government are examples of quality constraints that influence the development of a business case.
QUESTION 2
Ursula is preparing a business case to develop an information system for management and staff in the Marketing and Order Processing Division of her company.
Identify the constraints that will limit the options available for the business case that she will be preparing.
Previous documents act as a constraint on a business case, and set the scope of a project.
This is an example of a quality constraint that will affect the scope of the project.
This is an example of a time constraint.
This is outside the scope of the business case.
This is one of the requirements that have been defined for the project, and as such it affects the scope of the business case.
Assumptions are factors that are considered to be true, real, or certain for planning purposes.
It is essential that assumptions made are identified, validated, and recorded as part of preparing the business case.
Assumptions affect all aspects of the project.
If an assumption is wrong it can be a risk to the project.
Any assumptions as to the availability of specialist resources or skills should be identified here, and any dependencies that exist with other projects or initiatives should also be listed.
For example, if the date that a key person will become available is uncertain, a project manager might assume a specific start date. Such assumptions may or may not be accurate, and therefore involve a degree of risk.
The project team should understand the user requirements and what the customer needs. The team should meet with the customer to ensure that they have a common vision, and that the customer will have realistic expectations for the project.
Malltronic is a small Internet insurance firm, founded in 1997. Mailtronic's Mission Statement is "Providing premier protection online."
Evelyn is a project manager and will be in charge of the customer support service project. She works well with her team, and has several years experience in the online insurance industry.
She feels that if this project is successful that it will give her opportunities to develop her career.
Evelyn believes that the company should set up a customer support department. Several customers have requested such a department and Evelyn believes that it could be a viable project. The aim of the project is to improve service by providing both phone-based and online customer support service.
The marketing department surveyed a number of the company's ex-customers. The customers said that although they were satisfied with the company's products, they still chose to go to another insurance provider, as the absence of a customer support service made Mailtronic too awkward to deal with. The customers that the marketing department have talked to have indicated a preference for the availability of both telephone and online customer support. If the company does not set up a customer support department they will lose even more customers. The marketing department will market the upgrade as a customer-focused initiative. They also asked Evelyn to expand the proposed project to include a survey that will help determine the insurance products that customers would like available.
Evelyn has discussed the project with her team. They have drawn up a detailed financial projection for the expenditure required for the first six months of the project. The projection covers the cost of establishing the new system, and contains a detailed breakdown of the expected return on investment. The cost of setting up the department is currently estimated at $500,000. However, an increase in turnover of $3.7 million is predicted, and it is expected that overall profits will increase within eighteen months.
For Mailtronic to remain competitive, the new system must be operational in three months. If they do not set up a customer support service, they will continue to lose customers to rival companies. Some of the customers the marketing department has talked to have listed this service as a prerequisite to their continued business.
When talking to the research and development department, they suggested that the online system will include software that will automatically diagnose any errors that may occur; however, they did admit that this software has not yet been written.
The staff required to set up the new department will be available as needed during the project life cycle.
Evelyn is now going to talk to members of her team to decide on the scope of the business case.
Answer each question to help Evelyn decide on the scope of the business case.
QUESTION 3
Identify which of the following considerations are within the scope of the business case that she will be preparing.
Previous documents act as a constraint on a business case, and set the scope of a project.
This is an example of a quality constraint that will affect the scope of the project.
This is outside the scope of the business case.
The team must keep the focus on this project and not on any potential projects in the future.
This is an example of a time constraint.
QUESTION 4
Evelyn talks to the company's Marketing Department. She tells them about the project and asks for their opinion. They responded positively, but said that it may be a good idea to expand the proposed project to include a survey that will help determine the insurance products that customers would like available.
How should Evelyn respond to their request?
The survey project is outside of the scope of the business case.
Small projects are more manageable and have a higher chance of succeeding.
Being upfront about the scope of the business case can help to avoid any future misunderstandings.
QUESTION 5
Evelyn has discussed the project with her team. They have drawn up a detailed financial projection for the expenditure required for the first three months of the project. Some members of the team feel that this information should not be included in the scope. Should Evelyn include it?
The scope should clearly state what the project will achieve and at what cost. Not including the information will mean that the scope is too vague to be meaningful.
The scope should clearly state what can be accomplished within a specified time frame and budget. This information should be included so as to give the audience a clear idea of what will be achieved by the project.
QUESTION 6
Evelyn has been discussing the project with her team. A number of items have been discussed. Which issues will affect the scope of the business case?
The first is an example of a time constraint.
The second is an assumption about the project and it affects the scope of the business case.
The third is outside the scope of the business case. It is a consideration that relates to the possible future projects, not to the project at hand.
The fourth is a business case driver, a business factor that propels the need for the project now, rather than six months ago or six months from now.
The fifth is an example of user needs and requirements, which affect the scope of a business case.
The scope of a business case is determined by a number of factors - business case drivers and boundaries, the deliverables, project teams, and the schedule.
Defining the scope of a business case before you start to write the business case helps to identify needed resources, avoid time-wasting detours, and accurately set management expectation.
Assumptions and constraints relating to a project must be taken into account when preparing a business case.
This topic examined the factors involved in determining the scope of a business case and outlined the benefits to doing so.
I have been teaching and training agents, team leaders, supervisors, managers and admins of call centers and other businesses in BPO related fields. This series, comes as a result of that experience. I have more than 4,000 modules that I plan on sharing here. This is # 006-06
