Initiating a Project – Really Just a Business Goal?

In the last article on project management we covered the basics of managing something that is temporary and unique. Let’s do a little review. Each project can be divided into 3 easy phases: the start (initial phase), the middle, (intermediate phase) and the end (final phase)… and broken in to 9 knowledge areas: Scope, Time, Cost, Quality, Human Resources, Communication, Risk, Procurement and Integration. In this article, we will focus on the initial phase where organizations spend time considering what the project really means to them.
Like most things we deal with in business, a project first starts as an idea. However, just having an idea is not enough! The way you execute your business strategy (building clientele, expanding your market, producing additional product, etc…) is through ideas or initiatives, also known as projects. Without having some kind of a goal that aligns with your organizational strategy, how do you know where you are going or when you are there? Let’s look at this from a consumer perspective. This shouldn’t be too hard, we all buy stuff, right? If you have every shopped for an automobile or other expensive item, you’re probably familiar with these three questions:
- What do I get?
- What’s it going to cost?
- When can I get it?
If you can relate to those three questions, then you can relate to how business owners and top executives think about initiatives. A good strategic thinker is far less concerned with how you’re going to produce results than what the results will be. The results are called the Measure of Performance (MoP). A business owner or executive also needs to know what resources, including money, will be consumed during the project. They also need to know how soon the results will be delivered. The answers to these three questions are known as the total project objective. So, you need to expand your idea (project) and be able to describe what success looks like. A project’s Measure of Performance (MoP) expresses the measureable results of the initiative. The MoP brings clarity to the project and helps focus a team as well as the business owner. Basically; Measure of Performance = What’s the Point? or What do I Get?
It is important to understand that MoP is not the conduit to achieve a result, it is a result! For example, if someone asked you to describe your trip to Mexico, they are not asking you to describe how you got there. Likewise, Measure of Performance (MoP) is not about the project’s budget, timeframe, or scope. These are topics well deserving of attention (which will be covered in later articles), but they are conduit topics, not destination topics. In addition to thinking about the result (objective or destination) of a project, it is important to consider a second element to a MoP. This element is known as a restriction. Restrictions are the results you are NOT supposed to produce! For example, you may have an objective to “reduce cost per whatchamacallit by 35%”. This objective can easily be reached by cutting corners and reducing quality. So the restriction could be, “No more than a 5% increase in defects” and “No increase in the cost of other parts that the whatchamacallit integrates with.” A properly written Measure of Performance (MoP) basically takes this form: “Please deliver this result, but don’t do these bad things while you’re at it!” Or, Do this: [objective], subject to these [restrictions].
Once you know your MoP you can lay out the rest of your total project objectives and estimate how much it will cost and how long it will take. This brings you back to the three questions any strategic thinker considers: “What do I get?” “What’s it going to cost me?” and “When can I get it?” In the beginning, your total project objective elements will most likely not be precise. More precision requires more detailed planning and investing more time later in the project phases.
Taking the time up front to build and expand on your idea (project) will allow you to focus your efforts more during the intermediate phase and move to the final phase. The Measure of Performance (MoP), developing a high level cost and estimating duration will allow you to know what the project really means to your organization. Remember, if you don’t know where you are going, how will you ever know you are there?