What is Project Initiating?
In this post, you will study the process of strategically
selection of projects, project portfolio process and various project
selection models. You will learn about the project initiation in detail. You
will get familiarized with the role of project sponsor in success of the
project. Besides, you will get acquainted with the project charter. You will
also study about the development of a project proposal. Finally, you will learn
about effective project team, stages of team development and team
dynamics.
In the previous article, you learnt about what are projects
and briefly discussed what kind of people or organizations undertake project.
Let's delve a bit deeper into this and understand where projects stand in the
organization’s larger scheme of things.
In the organizational context, first a strategic decision is
made. This decision is implemented by undertaking a project. The project is
followed by operations and maintenance. After a certain period of time, the
organization needs to upgrade the project, which will require strategic
decision making again.
Let's understand this with the help of an example. Agile Project Initiation Checklist, Document
Strategic Decision: If you google the term 'Strategy',
you will find that the word comes from a Greek word Stratagem, which means the
art of devising plans or schemes to outwit an opponent in a war. It is how a
general moves his troupes around in the battlefield to win the war.
Modern day business management is nothing less than a war
(for that matter, it has always been). Numerous organizations are struggling to
survive the onslaught of competitors, let alone the market dynamics, which are
highly unpredictable due to interplay of factors, like statutory guidelines,
rules, regulations and international competition.
To survive this onslaught and still be on top of the game,
organizations keep on introducing new products or services, which distinguish
them in the marketplace from other players or make them preferred supplier due
to lower costs. For example, a phone company launches newer versions of phones
or a car company launches newer models of cars with better features. Another
example is a telecom operator offering free voice calls and reduced rate of
data.
In both these cases, the companies have taken a strategic
decision either to distinguish themselves from others or to become overall cost
leader in the market.
Project: Once the organization takes the strategic
decision to introduce better products compared to the competitors or introduce
services at a lower cost, it undertakes the project to implement this decision.
(Remember the definition of project? It is a temporary endeavor undertaken to
create unique product, service or result.)
The project team is given the requirements of this new
product or service. They define the scope of work, timelines, costs etc. in
coordination with the stakeholders. They work on the project to create this
product, service or result.
Operations and Maintenance: Once the product is
created, it is launched in the market. The operations group makes the product
created by the project team in bulk, self’s them in the market, and generates
the revenue. They need to perform operational and maintenance activities for making
and maintaining the product or service.
Upgrade: After a certain point in time, the revenue generated from the sales or service deteriorates due to the launch of better products or services by competitors, change in the market conditions, etc. The customer no longer wants the product or service. At this juncture, the organization needs to rethink their strategy to get ahead of the competition.
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