Chapter 2 Project Management

The Initiation Phase

• The first decision in a project is whether it should be started.
• Different options or “paths” should be considered before launch.
• The Business Case is developed to evaluate various approaches for the project.

The Business Case

• A Business Case presents options to project sponsors for approval.
• It includes:
  • Description of opportunities
  • Possible solutions/alternatives
  • Benefit, cost, and risk analysis for alternatives
  • Recommended solution and implementation process
  • Project requirements
  • A short implementation plan
• Estimated costs can be tangible (e.g., higher expenses) or intangible (e.g., increased risk).
• Estimated benefits include tangible (e.g., increased sales) and intangible (e.g., improved brand recognition).

Developing Options

• A case study by Deco Productions presented three launch options:
  • Soft product launch: Minimal promotion relying on word-of-mouth.
  • Moderate product launch: Soft launch plus extra promotion through existing channels.
  • Full product launch: Moderate launch plus promotional video and trade show materials.

Estimating Costs

• Cost estimates are rough and include:
  • Required budget (e.g., salaries, materials).
  • Risk of delay in product readiness.
• Cost estimates for Deco Productions' options:
  • Soft launch: $10,000, 1% risk of delay.
  • Moderate launch: $25,000, 5% risk of delay.
  • Full launch: $60,000, 10% risk of delay.

Estimating Benefits

• Benefits estimations are also rough, focusing on:
  • Increase in market share.
  • Increase in brand recognition.
• Benefits estimates for each option:
  • Soft launch: No increase in market share or brand recognition.
  • Moderate launch: 3% market share increase, moderate brand recognition.
  • Full launch: 6% market share increase, significant brand recognition.

Selecting the Option

• The final decision involves key stakeholders, including the Project Manager and Project Sponsor.
• For the case study, Option C (Full Product Launch) was selected due to its potential for higher market share and brand recognition.

Launching the Project

• The Project Charter is created to officially announce the project and authorize the Project Manager.
• Project Charters should contain:
  • Project goals and objectives.
  • Project budget.
  • Identification of stakeholders and sponsors.
  • Key project milestones.
  • Overall project risks.

Project Charter Example

• Project Name: DCV4Launch—DecoCam V4 Product Launch
• Project Budget: $60,000
• Key Stakeholders include Vice-Presidents of various departments and the CEO.
• Project Milestones establish timeline for project approval, completion of trade show materials, and final project completion.

Kickoff Meeting

• A kickoff meeting is necessary to bring together key stakeholders, allowing for interaction and addressing concerns before entering the Planning Phase.