Gantt -2 (Business Case)

The project has to answer to a (reasonably) well defined need. This answer, to be useful, has to be centered in only one logic that will be transformed into a product.

Complex products are composed by different parts kept together by an unique logic. If, sometimes, it is possible to release prototypes with some “visible” features; it does not mean that the whole product can always be split into separate objects, where each of these parts can be delivered to the customers for their approval.

Another kind of business case

From this starting point, the want for single documents that contains the whole logic is essential.
Everything starts with the Business Case. It is the first and most important baseline for an evolutionary process that includes some iteration.
It belongs to the Sponsor (aka Executive) and forms the guidelines for issuing the Project Manager mandate.
The reasons, for repeating these concepts during the Gantt’s analysis, stem from the need of creating a solid frame for referencing the workflow. The latter will be adapted to each company’s organization necessities.
These are the elements that compose the Business Case:

Reasons:

The drivers as presented by the “external” stakeholders.

The main outcome’s features are presented (possibly in order of priority). Whenever possible an estimation of their stability has to be included. This will influence both the estimations’ validity and the Change Management)

The customers’ organizational aspects have to be briefed highlighting the approvers and influencers.

It is fundamental to set clearly the type of output (e.g. product or service). Any reference to further maintenance and/or evolution is a key point for the choices to be taken in the next sections.

Options (listed subsequently)

The available alternatives have to be produced for the following areas:

1. Technical architecture
2. Approach (e.g. COTS, from scratch, prototype etc.)
3. Managerial strategy
4. Stakeholder’s analysis
5. Communication & Collaboration plan
6. Schedules imposed by external factors
7. Quality
   1. Test strategy
   2. Frequency and type of reviews and reporting
8. Procurement strategy
9. Contract type
10. Outsourcing
11. Vendor list
12. Documentation
    1. Future maintenance
    2. Handover to implementation team
    3. Communication among various stakeholders (from requirements to accomplishments)
    4. Manuals destined to training
    5. Administration chores
    6. Meeting minutes

Benefits Expected

The Business Case is owned by the Sponsor, but it is “used” by PM as well.

This requires including the “business vision” and then its strategical application to the project.

From the PM’s point of view, the strategy has to be focused on delivering the outcome as chartered in the stakeholders’ agreement (something subjected to be change at happenstance).

A solution for improving the success’ opportunities can be offered by linking benefits with the corresponding final product feature (Kano Model). This approach could offer a stronger lever for dealing with customers asking for lodging further requests (unsupported by an increase of budget / delivery time).

Risks

In this preliminary phase, it is possible to outline their nature. The list can help the PM and Sponsor to exclude those do not represent a menace to the project’s survival.

Other two essential sources for laying out the Risk Analysis come from:

1. Stakeholders’ analysis
2. Design walkthrough

Usually a narrow range of choices is a potential source of risk. This is due to the supposed indispensability of the “supplier”.

Costs

Available budget. This amount shall be confirmed by WBS results and should include tolerances (reserves). These have to be differentiated between those available to the PM and those requiring the Sponsor approval.

Timescale

Delivery date(s). Again the values provided by the estimations have to confirm the feasibility of the enterprise. The nature of the outcome and the customers’ interest could favorite the schedule of various releases.

Investment Appraisal

This is a topic to be tacked at two levels.

• The (beneficial) impact(s) of the project on the business shall be stated by sponsor and/or stakeholders.
• While the Project Manager has to be aware of the influence of the project on the whole business, he/she must keep the focus on the daily management of all tasks that allow the delivery of needed outcome.
  At PM’s level the project’s value is the budget made available.

Evaluation

This section pertains to the Sponsor. It contains the results of the “Investment Appraisal” (financial) benefits to be weighted against the costs.

Conclusion

The project is a complex enterprise. It requires the strong and clear willingness of participants to spend their resources (money and energy) for delivering an outcome that fulfills their expectation.

The adoption of a common pattern (as distilled sum of previous learned lessons) renders this operation easier. It has to be flexible enough for responding to each specific environment.

A business that makes nothing but money is a poor business.