Project Planning – Receives the highest emphasis by both PMBOK® and PRINCE2®…. It is critical to the success of your project!
Project Planning – Not “Analysis Paralysis”
Using input from the Project Initiation process (the Project Charter, Project Mandate, Project Brief, Business Plan, and other documents i.e., feasibility studies, budget models, decision checklists), and the approval of the Project Sponsor (or the Project Board under a PRINCE2® project) to proceed, we begin the planning processes. Essentially, the planning phase (a combination of two stages under PRINCE2® – “Planning (PL)” and “Initiating a Project (IP)”) generally consists of:
Since PRINCE2® focuses on “Product-Based Planning”, the Project Planning (PL) stage begins with identifying and analyzing the products produced during the project. Once the PM identifies the activities to develop these products, then she can begin to develop the schedule and align the resources required. The PRINCE2® Planning (PL) stage includes the following activities:
Under both methodologies, the Planning phase/stage is critical and the most process intensive. It results in a “tactical” Plan to accomplish the project objectives (which are aligned with the overall business objectives).
You as the PM must determine that you have this tactical Plan before you exit this phase and move on to executing the project plan.
Project Management Plan
Since the Project Plan is the primary deliverable of this Planning phase, I am going to provide some details of the Plan here and provide a template to assist you in its composition.
The Project Plan will begin with an Executive Summary describing the overall project, its purpose, when it was approved, by whom, and the overall objective. Then the project objectives will be listed and described (see the section below).
In my experience, developing the Work Breakdown Structure (WBS) is my first step to completing the Project Plan. Depending on the complexity, I usually sketch a type of Organization chart showing the work from major deliverables to lowest level of work (or activity) to produce that deliverable. This helps to collect my thoughts before constructing the WBS. I then construct the WBS in outline form like below:
The next Project Planning step is developing a resource assignment matrix. Use MS-Excel or a table in MS-Word to develop the matrix. Top row of the table contains the names of the resources or the title/major skill required. The left column shows the major activities or the major groups of work (start with the work groupings in your WBS then either group into larger or smaller blocks of work or group by major skills). In addition to showing the level of participation in the matrix, I also estimate the % of time this person will be expected to work on this specific activity grouping. For example, if the activity grouping is a database migration, I would show the DBA at 100%, but a programmer who is composing the scripts at 50%, and a Tester 10%-20%. This provides me a guide when I compare the Assignment Matrix to the schedule and begin to do the cost estimate.
Next during Project Planning, I set-up the Project Schedule (I may sound like a broken record, but you need to learn and use Microsoft Project – it is the global de facto standard for scheduling software tools). The tasks will mirror those in the WBS outline. (See more information on the Project Schedule in a following section of this page.)
Next is the creation of the Cost Baseline or project budget. It is likely that your Project Sponsor will have created a preliminary project budget in order to obtain approval from the Senior Management Team. In this case, create your budget from the work involved (WBS), your project schedule, and your resource requirements. Then, compare your budget to the “preliminary” budget created by your Project Sponsor.
Make sure to review your comparison with the Project Sponsor. Discuss the differences and any issues with your bottom-up estimate (now is the time to determine if there are issues, especially if you have estimated higher than his preliminary budget). Your cost estimate will be different and most likely higher than the original estimate by the Project Sponsor.
Once the budget is determined and you have your Cost Baseline, you will need to re-visit your resources and schedule to ensure you are well within the cost baseline.
Remember, developing an accurate, agreed-to Cost Baseline and Project Schedule (Schedule Baseline), during Project Planning, will become the basis for you, the PM, to measure project performance during the execution stage of your project.
Additional components of the Project Management Plan include:
Project Management Objectives – S.M.A.R.T.
All Project Planning must result in an achievable plan of execution which is able to be adjusted based on the effect of change and non-performance. This begins with a set of objectives, linked with the overall business objectives, and providing measurability to ensure an accurate view of attainment. So, all of the project objectives must be specific and quantified.
To ensure the specificity and measurability of the project objectives, most clients will demand that each individual objective complies with the SMART format:
Once you have SMART objectives, you have a baseline Project Schedule and you have a Cost Baseline (project budget), you are able to track the progress and performance of your project. As the PM, you should review the performance metrics with your client’s finance team (since they are typically tasked with measuring the overall business performance). They may have specific tools, software, or formulas they use to measure performance. If not, a simple approach is to use the Earned Value (EV) formulas to track project progress and performance.
I will go into more detail on Earned Value analysis on a subsequent page.
Project Work Breakdown & Project Scheduling
For the Project Planning phase, the WBS is important to ensure a decomposition of the work activities to the lowest level, the Work Package. Under PRINCE2®, you would product a Product Breakdown Structure, to decompose the work to the specific Work Product. This decomposition and Work Product would comply with the Product Description produced during the Planning (PL) and Initiating a Project (IP) stages.
Both the WBS and the PBS (under PRINCE2) follow a similar “outline format” (see the example above, on this page), and are easily produced using MS-Word.
When producing the Project Schedule (using MS-Project), I follow the template attached below. Since the template includes all of the project phases and steps, I simply delete those not applicable to my project and add those where the project activities deviate from those contained in the template. Then I make sure I have included all of the activities from my WBS/PBS outline.
Open this link to obtain a Microsoft Project template for a Project Schedule. An opportunity for a head start to producing your Project Schedule; make simple changes to satisfy a PMBOK® or PRINCE2® project.
The difference between an activity listed in the WBS/PBS and one in the Project Schedule is when an activity or task has a longer duration than 10 days (2 calendar weeks). In that case, I will break the activity into multiple tasks – this doesn’t change the schedule or resource requirement, it simply makes it easier to track the work activities.
The Project Schedule also contains all of the inter-task dependencies (from the network diagram); show the primary resource responsible for completion of the task; and show the anticipated start and end dates and the task duration. When the Schedule is populated with this information is becomes the Schedule Baseline (which will be aligned with the Cost Baseline, once the cost budget is completed).