Project Management

Fundamentals

Project Initiation

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What is a project?
Theory

The key principles in brief:

A project is a set of complex activities, the goal of which is to satisfy the needs of the
project's sponsor.

A project always fulfills the following conditions:

1. It is unique.
2. It implies a certain degree of novelty.
3. There is a sponsor.
4. There is a project manager.
5. A goal has been set.
6. A schedule has been determined.
7. A budget has been prepared.

The following do not constitute a project:

1. Any repetitive operation.

2. Very small tasks. Many companies set a minimal cost under which a task may not
be considered a project: for example, $50,000, or even $250,000. Other firms
don't apply such a limit.

Related concepts:

Stakeholders
Sponsor

Literature:

You’ll find further information about this topic in the following books:

PMBOK® Guide - Fifth Edition: 1.2 What is a project?

1.3 What is Project Management?
2.1 Project Life Cycle
13 Stakeholders
3.3 Initiating Process Group
3.4 Planning Process Group
3.5 Executing Planning Group
3.6 Monitoring and Controlling Process Group
3.7 Closing Process Group

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 IPMA Competence Element 1.01 Project management success
Baseline v3.0: Element 1.02 Interested parties
Element 3.01 Project orientation
Element 3.05 Permanent Organisation
Element 3.06 Business
Element 3.07 Systems, products & technology

How to do
How can one know if a mission is really a project?
1. It definitely isn't a project if at least one of the following conditions applies:
a. It's a routine job.
b. No completion date has been given.
c. The expenses are very small.
2. It is a project, however, if all of the following conditions apply:
1. The job is unique.
2. The job includes a number of innovative aspects.
3. The job was ordered by a sponsor.
4. The job has (or will have) a clearly specified goal.
5. The job has (or will have) an established completion date.
6. The job has (or will have) a set budget.

Example

1. What is a project? Some examples:

a. From now until the end of
December, increase the
sales of product P in
Southeast Asia by 15% in
terms of both value and
volume.
b. Within eight months,
decrease the number of
articles returned because of
factory defects by 20%.
c. Before the end of the year,
replace all local printers
with high-performance
departmental printers.
2. Examples of what does not constitute a project:
a. Develop sales in Asia.
b. Ensure the quality of after-
sales service.
c. Ensure the availability of

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 departmental printers.

Checkliste
You are faced with a project when the following characteristics are in place:

 A degree of uniqueness
 A certain level of novelty
 A sponsor
 A project manager
 A well-defined goal
 A well-defined schedule
 A well-defined budget

Pitfalls
 If there's no sponsor, beware!
 Has the goal been stated precisely (see "the goals of the project")?
 Beware: if you consider all assignments to be projects, you will overload your project
management system.

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How to start a project?
Theory

The key principles in brief:

 To get a project started, ideally you should have the

following five elements:
a. A client (the party who provides the financial
backing for the project and who will benefit directly
from it);
b. A sponsor;
c. A project manager;
d. A problem to be solved / a need to be met;
e. A goal to be achieved.
 Often, all five elements are not simultaneously available
at the beginning of the project. What should be done in
this case?
 If the goal has not been clearly defined, then the first task
of the project manager should be to set about specifying
this goal, through discussions with the sponsor and/or
client.

Literature:

You can find further information about this topic in the following books:

PMBOK® Guide - Fifth Edition: 2.4 Project Life Cycle

3.3 Initiating Process Group
3.4 Planning Process Group
3.5 Executing Planning Group
3.6 Monitoring and Controlling Process Group
3.7 Closing Process Group
4.1 Develop Project Charter

IPMA Competence Element 1.01 Project management success

Baseline v3.0: Element 1.02 Interested parties
Element 3.01 Project orientation
Element 3.05 Permanent Organisation
Element 3.06 Business
Element 3.07 Systems, products & technology

How to do
How to start a project:

You are the project manager. Your superior (the sponsor) has entrusted you with a project.
These are the first steps to be taken:

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 1. Make sure that you have completely understood the problem or the need that has
given rise to the project. Try to re-formulate it in your own words and then present
that version to your sponsor.
2. Make sure that you have fully understood the goals of the project and the results
that need to be produced.
3. Define the main phases of the project in co-operation with the sponsor. These are
likely to depend on the size of the project: will there be a pre-project phase? Is it
necessary to present a proper project application? Should a plan for the project be
drawn up?
4. Define the main deliverables of the project.
5. Right from the start, you should determine the milestones where it will be necessary
to gain approval from the sponsor. These milestones could include the following:
a. An agreement concerning the goals of the project
b. The acceptance of the need for a pre-project phase
c. The choice of technical options
d. The acceptance of the project application
e. The acceptance of the project plan
f. The milestones for each deliverable.
g. General acceptance (acceptance of the project)

Example
The Web page
You work in the marketing department of your company and you have
some experience in the designing of web pages. You already have quite a
few successful Internet developments behind you.
Two days ago, your boss came into your office and said the following:
”Hello, how are things going? The other day I had a look at our
company's Internet site and I had the impression that it looked a bit
outdated. After all, one and a half years have passed since we last
updated it. Could you take a look at what might be done? There are so
many options as to what can be done on the Internet. I think we ought to
spend roughly 3 or 4 months developing it into an acceptable site”.
After this discussion, you still do not know what your boss has in mind.
However, you do know that he does not have a very profound
understanding of the Internet. You decide to adopt the following
'pedagogic' approach:
1. You will spend one working week looking into possible directions
the project could take, and into potential goals. For example:
 Listing job opportunities at the company on the Web page.

 Setting up the possibility for customers to be able to order spare

parts through the Internet.

 Providing access to the plans of certain machinery parts on the

Internet (or the Extranet).

 Making it possible to track the progress of customers' projects

through the Extranet.

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 2. After this process, you will present these potential goals to your
boss, showing him examples of other companies' sites where
similar things have already been created.
3. Predictably, your boss is enthusiastic about all of the options, and
he would like you to set up all of the possibilities he was presented
with.
4. You explain that this would incur considerable expenses. He asks
you to determine the cost of these plans.
5. You spend another working week calculating the costs (with a
margin of error of +/- 30%) of all the possible directions the
project could take and determining the changes these would bring
in the organization of the company.
6. A further discussion with your boss serves to clarify the situation:
based on your rough predictions, he selects the direction in which
he would like to proceed: creating the possibility for clients to
order spare parts online is obviously the approach which offers the
most advantages to the company in relation to the costs
concerned.

Checkliste
 Is the sponsor well defined?
 Has the client been successfully identified?
 Is the need/problem clearly understood?
 Has the goal of the project been properly formulated?
 Have the deliverables been properly identified?

Pitfalls
 Everyone working at the company agrees that the project is necessary - but no
sponsor has yet been found for the project.
 The various project stakeholders evidently have different goals in mind for the
project.

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Identifying problems
Theory

The key principles in brief:

There are two major reasons to launch a project:

1. A problem – for example, users are

dissatisfied because the design of the
dashboard of a car, in its first version, fails to
meet their ergonomic requirements.
2. A need – for example, drivers would like to
have a GPS navigation system installed in their
car.

In either case, it is essential to analyze the problem or need very carefully at the outset
of the project: “What is it exactly that the users or clients want?”

There are several methods and numerous tools at your disposal to perform this analysis:
 The "five why's" approach
 Simulations
 Interviews
 Benchmarking

However, one of the most important factors for success is very simple: if you really want
to understand the need or problem, you have to spend time with the end-users.

Literature:

You’ll find further information about this topic in the following books:

PMBOK® Guide -Fifth Edition: 5.2 Collect Requirements

5.3 Define Scope

IPMA Competence Element 1.03 Project requirements & objectives

Baseline v3.0: Element 1.08 Problem resolution

How to do
How is the need or problem analyzed?
1. Make a list of the persons concerned.

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 2. Hold interviews with these persons, asking them open questions (for example:
“What are the things you don't like about the dashboard of this car?”).
3. Draw up a list of the problems or needs.
4. Try to determine whether these problems or needs are caused by another
problem.

Example

Introducing portable computers for insurance salesmen

 The management of an insurance company has decided to equip
its salesmen with brand-new laptops.
 In addition, the salesmen will be supplied with a portable
printer, enabling them to print out policies at their clients'
homes.
 In order to realize this project, a team is formed of salesmen,
representatives of the “Organization” department, as well as
computer programmers.
 One of the first steps the project manager takes is to send the
organizers and programmers out into the field for a couple of
days, following the salesmen as they go on their sales visits.
This will allow them to gain a much better understanding of the
precise needs of the salesmen, thereby avoiding unnecessary
mistakes in conception.

The "five why's" method

Your superior has charged you with locating new premises, because the employees in
the purchasing department have been complaining for months about the lack of space.
Before launching the project, you decide to investigate the situation yourself, so you ask
the employees in the department:

"Why do you want new premises?"

The answer is given straight away: there's not enough space; there are three of us in
every office.
You ask another question:
"How is it that there are three of you in every office?"
Answer: because we have to store the computers that still need checking here before we
send them to other departments. The whole floor is covered with computer boxes.
You continue your investigation:
"Why do you have to check these computers right here on the spot?"
Answer: Previously, the supplier performed the quality checks himself, but now we're
the ones who have to do them.

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You go on:
"But why doesn't the supplier do the quality checks himself any longer?"
Answer: Go and ask the purchasing manager. So, you ask him the same question, and
he answers that the supplier has increased the fee for these quality checks by 70%.

You give the supplier a call in order to get their point of view:

"But why did you increase the fee for these quality checks?"

The supplier answers: Because the quality manager at your company has completely
unrealistic expectations. The checks he has in mind would have cost us four hours of
work per computer.

After "five why's," you have finally discovered the real problem: the unrealistic demands
made by your quality department. You therefore requested a modification in these
demands and the supplier started doing the quality checks himself again. Since then, the
purchasing department has had enough space.

The "five why's" method often allows you to understand the real problem that is
concealed behind the false problem (in this case, not enough space in the offices). If you
had rented new premises, you would have solved the false problem.

The marshalling yard at Muttenz

During the development of software for controlling certain installations at a marshalling
yard, the project manager took his whole team to spend a day at the yard.
The team members had to hook up wagons and handle points in order to experience an
ordinary day in the life of a marshalling yard employee.
What was the purpose of this visit?
1. First, they gained more exact knowledge about the situation and the problems
faced by the end users.
2. In addition, they were able to build personal relationships with the end-users. At
a later stage in the project, when they needed some specific data, they were able
to get it without difficulty, because personal connections had already been
established.

The new milling machine

 Peter has just taken over the management of the BiMetax Company. This company
hasn't been flourishing; its products are outdated and turnover has been steadily
decreasing for the past two years.
 After one month as the head of the company, Peter takes a six-week trip to visit no
fewer than 28 clients around the world. He doesn't just hold meetings with the
managers of the companies he visits, but always asks to be shown around the
workshops in order to find out exactly how certain categories of parts are machined.
 On the basis of this long trip, he establishes, in cooperation with his team, a list of
the most urgent needs of the clients, determines specifications for a range of three
new machines, and launches the development project for these machines.

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  These three machines immediately enjoy considerable commercial success.

Checklist
 Did I talk with all of the different categories of users or people connected with the
project?
 Did I write down all of the elements, problems, or needs?
 Did I set the priority of the needs or problems?
 Did I clearly identify each problem (i.e., did I put a name on it)?

Pitfalls
 Only seeing the problem as it is presented by the users. Often, the real problem is
concealed.
 Only talking with certain people, thus failing to include all of the stakeholders in the
project.
 Spending too little time with the users.
 Talking only with superiors, ignoring the actual users. Superiors often don't well
understand the real problems of the users.

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Selecting the project manager
Théorie

The key principles in brief:

 The role of the project manager varies considerably according to the

size of the project. He/she often takes part in small projects
him/herself directly, while in larger ones, he/she is purely a manager.
 If the project is small, the project manager will have to focus on
handling the technical aspects of the project well.
 For larger projects, good leadership as well as an ability to negotiate
and solve conflicts are determining factors for success.
 As a rule, a project manager needs to set aside about half a day for
organization and management per full-time member of his/her team.
In other words, if the team is made up of ten people working full time,
he/she will often only have time to organize and manage.

Literature:

You’ll find further information about this topic in the following books:

PMBOK® Guide - Fifth Edition: 13 Project Stakeholder Management

4.1 Develop Project Charter

9.1 Plan Human Resource Management

IPMA Competence Element 1.06 Project organisation

Baseline v3.0:
Element 3.08 Personnel management

How to do
How to select a project manager:
 Try to find someone who has already conducted a similar project.
 If such a person is not available, find someone who has already participated in a similar
project as a member of the project team.
 The selected person should have the following qualities:
 Good communication skills.

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  Ability to negotiate and solve conflicts.
 Solid general knowledge in the area concerned.
 Experience with project management.

Example
The Formalux company was founded 30 years ago by Mr. Carson. Right from the
beginning, they specialized in the production of injection molding tools and quickly acquired
an excellent reputation in this area. The particularly complex Formalux tools with multiple
slide valves became famous in the world of machining.

Some years ago, Mr. Carson, who is a highly inventive man, developed an ingenious
flanging system. This modular system, whose components are fabricated with a very high
degree of precision, allows for a kind of "palletization" of parts. This system is successfully
used in wire-cut EDM, milling and grinding. Known as Bridoflex, it enjoyed a dazzling boom,
and Mr. Carson had to quickly set up a production line for the Bridoflex components. He also
had to establish a Marketing department, at the head of which he placed a young and very
dynamic executive who soon disrupted some of the pre-conceived ideas inside the company.

The high growth rate in the Bridoflex department has created numerous problems at the
company, mainly because the Formalux corporate culture was based on the production of
unique parts, while Bridoflex components are mass-produced. This radical change has
proved hard to swallow, particularly for the production management. Mr. Meyer, who had
always managed tool machining so well in the past, has a very hard time understanding
why the Product Manager of Bridoflex, Mr. Sheen, imposes such tight schedules and makes
such frequent changes in the monthly planning.

As he is aware of these difficulties, Mr. Carson has

decided to introduce new software for computer-
assisted production management. He would like a
software product that would allow him to manage
the production of the tools on the one hand and the
Bridoflex line on the other, all while guaranteeing a
maximum degree of flexibility in the management
of the workshop. His dream is to produce the
Bridoflex components with very tight delivery
schedules so that he doesn't need to keep them in
stock.

Mr. Carson wonders which of his employees he should select as the manager for this
project. The range of possibilities isn't very broad in such a small company, and it
doesn't take Mr. Carson very long to draw up a list of the people who could be
considered for the job:

 Mr. Lawson, 48 years old, purchasing manager.

 Mr. Peters, 36 years old, overall production manager.
 Mr. Meyer, 56 years old, production planning manager.
 Mr. Kahn, 26 years old, responsible for CAD/CAM systems.
 Mr. Sheen, 27 years old, responsible for marketing Bridoflex products.

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  Mr. Jenkins, 24 years old, ETS engineer, network manager.
 Mr. Fraser, 45 years old, responsible for tools.

Whom would you have chosen?

Think it over for a while before reading on, and make your choice. Have you made your
choice? If you have, read on.

It didn't take Mr. Carson that much time to reach the following conclusions. Mr. Kahn and
Mr. Jenkins are "technical specialists", which means that they aren't knowledgeable enough
about production. Mr. Fraser and Mr. Lawson don't have a general overview of the problem,
because of their highly specialized activity. Mr. Sheen is already too deeply involved with
the Bridoflex side of the problem, meaning that the whole production department would be
against him. Mr. Peters is a good builder but a poor manager. This leaves Mr. Meyer, who is
responsible for planning production. Yet, Mr. Meyer has difficulties with new concepts, such
as "Right on time". Won't he slow the project down?

Mr. Carson considers hiring an outsider to be the project manager. However, if he did that,
he would hurt Mr. Meyer's feelings – who, it seems, would like to be the manager of this
project. In the end, Mr. Carson chooses Mr. Meyer as the project manager but hires an
external "coach" to help him take the necessary steps towards understanding new
technologies.

Checklist
 Is the project manager knowledgeable enough in this area?
 Does the project manager have leadership skills?
 Does the project manager know how to negotiate and deal with conflict?
 Does the project manager have sufficient experience in this area?
 Does the project manager have good communication skills?
 In case he/she doesn't have all of these qualities, as is often the case, which are the
essential skills for this particular project?

Pitfalls
 Selecting a project manager solely on the basis of his or her technical expertise.
Indeed, a project manager needs to know how to direct his or her team; in this
regard, technical expertise isn't much help.
 Selecting a project manager who hardly knows the specific area at all and is really
only a manager. Such a project manager will be unable to perform the necessary
arbitration, and it will be difficult for him to gain respect.
 If the project manager doesn't speak the language of the client, it can cause a lot of
problems.

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 Project organization
Theory

The key principles in brief:

Every project has its own organizational form. A project is an

organization limited by time, one which will disappear at the
end of the project.
For small- or medium-sized projects, the preferred
organizational form is the so-called "matrix" form. In a matrix
organization, the project team is made up of employees who
belong to different departments. Strictly speaking, the
employees remain in their department but become part of the
project team.

As a result, they belong to two entities:

1. Their own department.

2. The project team.

They will thus have two superiors:

1. The line manager (direct superior).

2. The project manager.

This structure often leads to conflict, particularly over the

allocation of resources.
For larger (and longer) projects, one often sees an organizational form known as
"Projectized Organization". Within such a structure, the project manager is also the superior
of the team members within the hierarchy. This structure increases efficiency and limits
conflicts over resource allocation; on the other hand, it is also rather inflexible. As a result,
it is most frequently used in long-term projects.

Literature:

You’ll find further information about this topic in the following books:

PMBOK® Guide - Fifth Edition: 2.1 Organizational Influences on Project

Management

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 IPMA Competence Element 1.06 Project organisation
Baseline v3.0: Element 1.09 Project structures
Element 3.05 Permanent organisation
Element 3.06 Business

How to do
How is a project to be organized?

a) Projectized organization

In engineering or machine production firms, or in computer departments, the "Projectized

Organization" form has increasingly become the favored choice. This organizational form, in
which the project manager is also the hierarchic superior of the project team members,
greatly reduces conflicts over the allocation of resources. It also guarantees the permanence
of the team: a well broken-in team will be much more efficient.

b) Matrix organization

Within departments, work is often done in a matrix organization: projects are generally
smaller and shorter in duration, with the matrix organization ensuring optimal flexibility. If
you have to work in a matrix organization, proceed as follows:

1. Don't have ten people spending 10% of their time on the project, nor five people
spending 20%; try to get two people to work half-time. This way of proceeding is
much more efficient and also greatly reduces the administrative workload of the
project manager.
2. Try to establish a written contract with the superior of the employees joining your
team. This contract should stipulate that employees X and Y will be working for you
at Z % for a given period. Such a contract doesn't completely prevent unfortunate
surprises, but it does give you more weight should a resource-related conflict arise.
3. Try to choose the members of the team yourself as much as possible. It's much
more motivating for employees to be chosen by the project manager directly rather
than just being appointed by the head of department.

In a matrix organization, try, as much as possible, to gather the team members together in
the same office for the time they spend on the project. An employee spending 20% of his or
her time on the project should spend one day a week in the project office. That way, you
can be sure that he or she is really working on your project!

c) Functional organization

This is the weakest type of organizations. It is for example used in the preparation of complex
proposals that requires a strong coordination between Sales, Support, R&D and
Production.

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Because, as project manager, you do not have any authority, it is crucial to treat the
relationship with the the lines manager and convince them of project’s benefits.

Try to obtain from the sponsor a written agreement which states, in coordination with the
lines, the allocation of human resources in the project (deliverables, work load, etc.)

Example
Example 1
At the insurance company where you work, you were
put in charge of the project "HotLine 7/7". This project
aims to establish a hotline service available 24 hours
per day, seven days a week. The preliminary study
carried out by your predecessor had shown that the
following people were needed for this project:

A. Two employees from the "Marketing"

department
B. Two employees from the "Sales department"
C. One employee from the "Software
development" department
D. One employee from the "Human resources"
department
E. One employee from the "Training" department
F. Two employees from the "Internal
organization" department

For this project, you'll need resources from different

departments. Therefore, you'll choose the “Matrix
organization” in this case.

Example 2

As the assistant to the production manager, you've been put in charge of the project,
"Purchase of four machining centers". You're planning the following activities:

1. An interview with the stakeholders (Supervisory management, work planning, NC

programming, maintenance department).
2. A meeting with the stakeholders to compare selection criteria.
3. Invitation to tender to 8-10 suppliers.
4. A meeting with the stakeholders in order to confirm the choice of supplier.
5. Submit the preferred choice to your superior for approval.

For this project, you only need a small project team. A few co-ordination meetings will be
sufficient. The type of organization you'll choose in this case will thus be the so-called "Staff
Organization".

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Example 3

For the realization phase of the motorway tunnel under the Ben Nevis, your job is to create
and take charge of the project team. This team will comprise, among others, the following
people (who will be employed on the project full-time for a period of at least three years):

1. Peter Morris, engineer, geology specialist.

2. Francis Smith, engineer, rotary digger shield specialist.
3. Roland Jones, engineer, form work specialist.
4. Paul Robertson, engineer, specialist in building site logistics.
5. Arthur Crabtree, draughtsman.
6. John Arbuthnot, draughtsman.

For a project with such a long duration, you have decided to choose the "Projectized
Organization" type. The members of the project team will be your direct subordinates for
the entire duration of the project.

Checklist
For a matrix organization

 Make sure that the members of your team are actually available.
 Prepare a shared workplace (a project office).
 Establish an excellent working relationship with the superiors in the organizational
hierarchy of the members of your project team.
 Consider, well in advance, the reintegration problems the members of your team will
face when they return to their relevant departments, especially if they will spend
more than 50% of their time on your project.

For a "Projectized Organization"

 Often a project is organized in an ad hoc manner: the team of employees under the
direct supervision of the project manager often has to be complemented by one or
more people from other departments. NB: in this case you are faced with a matrix
organization superimposed onto a "Projectized Organization". Make sure that
everything runs smoothly despite this!

Pitfalls
 Caution: in a matrix organization, you are responsible for the project, but you don't
have any direct control over the employees. You are dependent on the goodwill of
the line managers, a situation that often leads to conflicts over the allocation of
resources.
 In a matrix organization, there is a major risk that the employees will be completely
wrapped up in their daily work, which is always urgent, therefore neglecting their
work on your project. Make them change offices on the days they are working on
your project!

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 In projectized organization, the employees risk finding themselves out of work by the
end of the project. You should therefore plan their reinsertion at the end of the
project rather early.

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Pre-project Phase
Theory

The key principles in brief:

3. The pre-project phase can take many different forms: a

preliminary study, full study, pre-project, or feasibility
study.
4. The aim of the pre-project phase is to collect relevant
information that will facilitate decision-making
processes and the launching of the project in question.
This information often includes the following:
a. A market survey
b. A profitability study
c. A study of the technical feasibility of the project
d. An analysis of the risks involved
e. An estimate of the project lead times
f. An impact study
1. The results of the pre-project phase are often summarized in the "Project
Application," which is a compulsory step before the project in question can begin.

Literature:

You’ll find further information about this topic in the following books:

PMBOK® Guide - Fifth Edition: 4.1 Develop Project Charter

5.2 Collect Requirements

IPMA Competence Baseline Element 1.01 Project management success

v3.0:
Element 1.02 Interested parties

Element 1.03 Project requirements &

objectives

Element 1.11 Time & project phases

Element 3.07 Systems, products &

technology

How to do
How to carry out the pre-project phase:

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- The pre-project phase is a miniature project in itself, with no concrete results: it
consists mainly of analyses, reports, and studies.
- A pre-project phase requires resources. As a result, initiating a pre-project phase needs
the approval of a sponsor (an executive or member of management) who has the
necessary authority to allocate the financial resources required for the pre-project
phase.
- Many companies have a standard form for pre-project applications. This form usually
includes the following aspects:
 Present situation, need, and problem to be solved
 The aim of the pre-project phase
 The importance of the pre-project phase
 The milestones
 The planned resources
 The cost of the pre-project phase

Example
With respect to the implementation of a new software system for
the management of employee-related data (the company employs
1,680 people spread over two separate sites), Mrs. Jackson of the
personnel department has applied for the following funds to allow
her to launch her pre-project:

Application for funds needed for a pre-project

Name / Department : < Personnel Department / Jackson, F. >

Date: March 21st

Needs / problems: Employee-related data is currently scattered between three different

software packages, which results in considerable costs incurred when employee transfers
are made and leads to frequent mistakes. In addition, the data concerning qualification
meetings at the end of the year only exists on paper, which makes it difficult to consult
them. Furthermore, managing the passwords for three software packages is becoming
difficult to handle at this point. In other words, no one is quite sure about who has access to
which set of data.

Summary: The pre-project phase should consist of the following:

a) a detailed analysis of the current situation, as well as of the available data.

b) an analysis of the degree of confidentiality of the data and of the legal requirements
regarding data protection.
c) a study of the line managers' informational needs.
d) an analysis of the range of personnel management software packages currently
available.

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 e) a study of the degree of compatibility of these software packages with our
accounting software.

Goals of the pre-project: the pre-project phase is intended to provide all of the
information necessary to specify the requirements for a new personnel management
software package, to inform the choice between available software packages, and to allow
an estimation of the costs and benefits expected from the introduction of such a software
package, taking into account a margin of error of +/- 20%.

Aim of the project: the aim of the present project is to replace the three existing
employee data management systems with a single system that is compatible with our
accounting software, meets the requirements of data protection legislation, and also allows
the firm to control access to the data in a much more transparent manner than at present.

Milestones:

March 15th: The pre-project phase begins.

April 30th: Report on the current situation, the degree of confidentiality of the data, the
legal requirements relating to data protection, and the data needs of line managers.

May 20th: Evaluation of the range of software packages available, and analysis of their
compatibility with accounting software in the IT department. The pre-project phase ends.

May 31st: Final draft of the project application.

Resources:

Personnel department: Mrs. Jackson: 30% of her working time to be spent on the project
from March 15th to April 30th, rising to 60% of her working time from May 20th to 31st.

Total requirement: 95 hours

Information Technology department: One person spending 10% of their working time
between March 15th and April 30th, increasing to 25% in May. Total requirement: 64 hours.

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Cost of the pre-project phase:

160 hours in all, which is equivalent to 20 days work at €1000 per day, or €20,000 in total.

Miscellaneous costs (travel expenses, etc.): €2,000

Overall total: €22,000

Checklist
 Have I clearly separated in conceptual terms the aspects of the pre-project phase
from those of the project?
 Have the resources needed for the pre-project phase been set aside?
 Has the budget for the pre-project phase been fixed?
 Has the budget for the pre-project phase been approved?
 Will the project manager have sufficient time to complete the pre-project in the
allocated time?

Pitfalls
 Important: don't confuse the goal of the pre-project phase with the aim of the
project itself when writing the pre-project application!
 Often, pre-projects will be accorded a lower priority than actual projects. For this
reason, it is very important to make sure that the necessary resources for the pre-
project will actually be made available.
 Some project managers like to play down the risks that may be involved in a project
in order to increase the chances of gaining approval for their project. This is a very
dangerous approach to adopt. In a pre-project, transparency is essential at all times.

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