Project Management

Symposium
Project Selection
(What Projects Shall We
Do)solutions
Delivering structured project

with a flexible methodology

Agenda
▼ Introduction
▼ Organization for Management

of the Project Environment

▼ The Project Initiation Process

▼ Project Should Support Corporate

Objectives
▼ The Project Priority Process

 Bates Project Management, Inc. 1999

Introduction
▼ How are projects selected in your
organization?
▼ Who makes the decisions?
▼ Is there a process?
▼ Are projects related to corporate
objectives?
▼ How are selected projects prioritized?
▼ Is a business case or feasibility study
completed before management makes
a decision?
If the answer is a question mark or no
to any or all of these questions, your
organization has a problem
The Y2K Issue

▼ Y2K has been a major resource

consumer that blocked other
development projects.

▼ As Y2K finishes the log jam will

need to be cleared

▼ Which project, in what order,

will be a major issue
Organization for Management
of the Project Environment
CEO

Project Functional Functional

Review Department Department
Committee

PMO Project X

Line Authority
Information,
Coordination &
Support
Project Review Committee -
What It Is
▼ Usually composed of senior managers of
departments having projects and resources and
positioned as a high level committee
▼ Usually chaired by a senior executive
▼ Roles
❖ Reviews new projects against corporate
plans and makes recommendations including:
▲ Funding
▲ Priorities
▲ Timing
❖ Reviews on-going projects
❖ Provides organizational view

▼ A major, multi-divisional corporation may have

tiered Project Review Committees
Major functions of a PMO
▼ Management of the Project
Environment
❖ Coaching and mentoring
❖ PM career development and certification
❖ Risk assessment support
❖ Project evaluation
▼ Project Information
❖ Multi-project database
❖ Project archives
❖ PRC Secretariat
▼ Project Support
❖ PM resource pool
❖ Methods and tools
Our Project Initiation Process

Corporate Planning &

Marketing Environment

Project
Planning
Environme
? nt

Project Project
Selection Yes
Selection Planning
Decision
Process Process

No Changes
Or Defer
Work
Environme
nt
Updates

Project
Corporate Control Reports
Memory Process
Project Selection Process
Corporate Planning & Marketing Environment

Project
Identificatio
n
Project ?
Definition
Y
Project
Feasibility/
Proposal
N
Preparation
▼ Most projects should be identified
during the corporate planning process
Project Selection
Considerations
▼ Support of corporate objectives
▼ Funding availability

▼ Resources availability

▼ Priority in relationship to other

corporate priorities
❖ Mission critical
❖ Operational requirement

❖ Public safety

❖ Good corporate citizenship/public

relations
Project Definition Process
An Idea Project
Defined

Plan for
Feasibility
Study

Feasibility
Study Plan
Approved

PRC
Project Feasibility Process
Technical Market
Research Research Global
Analyze Sizing
Business Client
Research Research

Economic
T
Research

PRC
Project
Approved
Feasibility
Study Report
Project Should Support
Corporate Objectives
OBJECTIVE

STRATEGY STRATEGY

STRATEGIC DEPARTMENTAL
PROJECT OBJECTIVES

DEPARTMENT ON-GOING DIVISIONAL

PROJECT WORK OBJECTIVE

ON-GOING DIVISION
WORK PROJECT
 Blending the Corporate
Planning and Project Planning
Processes

Strategic Long Range Annual

Direction Plan Plan

Corporate Planning Cycle

Define Feasibility Req. Def. Design Build

Project Planning Process

Project Review Committee Decision Point

The Project Priority Process
S
CORPORATE
T I ON
DA
EN
MM
CO
RE
CORPORATE
PROJECT REVIEW DEPARTMENT DEPARTMENT
COMMITTEE
DECISIONS

DEPARTMENT
DIVISION DIVISION
PROJECT REVIEW
COMMITTEE

UNIT UNIT
The Underlying Priority Setting
Problem Priority Cubed

E
M
TI

PROJECTS

CRITICAL
RESOURCES
 Conclusions
▼ Organizations should have a formal Project
Initiation Process
▼ Consider how you are organized for the

management of the project environment

▼ The feasibility of all projects should be

established prior to commencing the project

▼ Project planning should be linked to corporate

planning
▼ Project priority setting should be an

established process which is periodically

reviewed