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BUSINESS CASE, SOW, & PROJECT
CHARTER
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At the end of this training, our goal is for you to:
• Be able to know the content of these documents
• Explain how they relate to each other
• Be able to describe when they are created and how they are used
• Explain the difference between them
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Overview
BUSINESS CASE
Worthiness of a project
STATEMENT OF WORK
Description of products, services or results
PROJECT CHARTER
Formally authorizes a project Provides authority to apply resource
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Business Case The purpose is: • To capture the reasoning for initiating a project
Generally designed to answer the question: • “What are the likely financial and other business consequences if we take this or that action (or decision)?”
Spend resources in support of business
Part of project selection process
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• Strategy and advantageAnalyzes
• Business planDefines
• Prior to project startCreated
Business Case
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Business Case – Need
Market demand
Organizational need
Technological advancements
Legal requirements
Environmental impact
Customer requirement
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Business Case –Purpose
Ensures Value and Importance
Proper management
Capability to deliver
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Business Case –Structure
Background
Business Benefits
Cost of Project
Gap Analysis
Options
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Statement of Work
• A statement of work (SOW) is an important component of the project Charter
• A contract SOW is a device that describes the products, results and
services that are expected to be delivered at the conclusion of a contract
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Describes Project Scope
Describes Product Scope
States requirements
Statement of Work
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Statement of Work Internal Projects
Provided by initiator or sponsor External Projects
Provided by initiator or sponsor Ensures agreement on Deliverables
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Statement of Work
Created before project start • Input to Develop Charter
Includes • Requirements, performance and assessments
Describes • Product, service and result
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Statement of Work – Structure
Goals
Assumptions & Constraints
Acceptance Criteria
Management Guidelines
Product & work description
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Project Charter
• A statement of the scope, objectives and participants in a project
• Provides a preliminary explanation of roles and responsibilities
• Outlines the project objectives
• Identifies the main stakeholders
• Defines the authority of the project manager
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Develop early Make decisions
Leads the project
Project Charter
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Initiating
Planning
ExecutingMonitoring
and Controlling
Closing
Project Charter
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Project Charter – Purpose
Direction & Constraints
Project Objectives
Project Deliverables
Stakeholders’ Needs
Project Priorities
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Project Charter – Structure
Project Identification & Scope
Authority and Resource Need Definition
Project Methodology
Project Roles and Responsibilities
Project Structure and Schedule
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Comparison
Business Case SOW Project Charter Purpose Reason for
initiating a project Project deliverables
Project objectives, identifies stakeholders and project manager
Created in Before Project Before Project Develop Project Charter
Feature Assures support of the business
Assures consistent deliveries
Establishes the project manager’s authority