External factors in project creation

Introduction

The concept of project management isn’t new. There are many examples from history that have been created through project management, like the pyramids of Egypt, the Taj Mahal in India, Great Wall of China, and many more.

These structures have stood the test of time, which could not have happened without a strong project design and delivery.?While project management didn’t exist in books or as a framework in those days, the knowledge, intelligence, skills and talents required for managing projects were showcased in the creation of these structures.

There are of course modern examples of these feats, such as high-rise constructions, hyperloop transportation, aircraft as well as countless software applications and technologies. Whether physical or virtual, project management was the vehicle for their creation.

But how do projects come into existence??

Organizations undergo continuous evolution, driven by factors such as the adoption of new technologies, meeting customer demands, complying with legal obligations, or enhancing business processes. These evolving needs give rise to innovative ideas for implementation. Business professionals conduct a comprehensive analysis of these ideas, resulting in the development of a Business Case document. Subsequently, a Project Charter document is derived from the Business Case, marking the inception point for projects.

In this reading, you will learn about the various types of factors that contribute to project creation in various circumstances. These include technological advances, competitive advantage, faulty machinery in an industry, economic and political changes in a country, continual process improvements, societal welfare or simply a request from a client.?

Project creation process

To understand the project creation process better, let’s consider a scenario.

An organization wants to adapt a new technology to sustain its place in the market. It wants to keep on par with the latest technology to retain business. The organization has now developed a need or a demand for the new inclusion.

The organization appoints business analysts to perform a thorough investigation on the possibilities of implementing it, keeping in mind the benefits, risks, impact, cost and various other aspects that may result from the new inclusion. This is where they are generating their ideas for implementation.

Feasibility study

This feasibility study undergoes multiple iterations, and the results are submitted to management in the form of documents such as a Business Case and Benefits Management Plan.?

Business Case

A Business Case is a detailed document outlining the rationale, costs, and expected benefits of a proposed project, providing a foundation for informed decision-making. A Benefits Management Plan, on the other hand, is a strategic roadmap that defines how anticipated project benefits will be identified, realized, and measured throughout the project lifecycle, ensuring value delivery to the organization.

Project Charter

A Project Charter, created from a thorough analysis of the Business Case, is a concise document that formally authorizes the initiation of a project. It outlines project objectives, scope, and stakeholders, and serves as a guiding document aligning project execution with the goals outlined in both the Business Case and Benefits Management Plan.

This is how projects evolve from the idea phase or pre-project phase.

The steps in the pre-project or ideation phase?

Okay, but why projects?

As the work spans across the organization, it requires significant attention, planning, and coordination. The larger the size of the work, the greater the complexity, and complexity allows uncertainties and risks. When risks occur, they cause greater impact to the organization which can vary in multiple degrees such as business loss, loss of reputation, client dissatisfaction, and loss of revenue.

Therefore, the extent of work must be first defined with proper boundaries or otherwise the entire project would become difficult to control. For example, only when you know the distance you want to travel and the purpose of your travel, can you determine your start time and the driving speed.?

It is essential to determine, define, and estimate the workload required, estimate the time and cost needed to complete the work, analyze and arrange the requirements, identify the risks that may appear, and prepare an action plan to handle risks.?Then, you must estimate the resources needed to complete the work, observe and measure their performances and much more.

Deliverables

At a high level, you know what projects are and what project management is about. The outcome of projects is normally referred to as a deliverable.?

A deliverable can be physical products such as those produced from manufacturing projects, or virtual services like IT projects.?A deliverable can also be a result produced by result-oriented projects such as research endeavors, electoral initiatives, process improvement projects, and social welfare projects.

Conclusion

In this reading, you explored how projects originate and how ideas develop into projects. Additionally, you examined the various external factors that contribute to the source of the project.

Here are some key takeaway points:

• In the pre-project phase, two important documents are the Business Case and the Benefits Management Plan.
• The Project Charter is derived from the Business Case and the Benefits Management Plan.
• The existence of a Project Charter signifies the presence of a project.
• The Project Charter must be signed or approved by relevant authorities for the project to commence.
• A project manager can only be assigned to the project once the Project Charter is approved.