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Project Initiation Templates: Business Case Template 1. Executive Summary
Project Initiation Templates: Business Case Template 1. Executive Summary
Project Initiation Templates: Business Case Template 1. Executive Summary
This section contains all of our templates which support the project initiating process. During the
initiating process you are creating the documents which are needed to define a new project, or a
new phase of an existing project. Many times a feasibility study is performed or a business case
created. These are considered to be a part of the project initiating process group since they are
created prior to the start of a project. The most critical part of the initiation process is the project
charter. The project charter formally authorizes a project, and once it's signed the project can
then progress to the planning process.
1. Executive Summary
This Business Case Template provides you with a good starting point for which to develop your
project/organization specific Business Case. You can download the MS Word version of this
template by clicking on the Word icon above.
This section should provide general information on the issues surrounding the business problem
and the proposed project or initiative created to address it. Usually, this section is completed last
after all other sections of the business case have been written. This is because the executive
summary is exactly that, a summary of the detail that is provided in subsequent sections of the
document.
This business case outlines how the Web Platform (WP) Project will address current business concerns,
the benefits of the project, and recommendations and justification of the project. The business case also
discusses detailed project goals, performance measures, assumptions, constraints, and alternative
options.
1.1 Issue
This section of the business case should briefly describe the business problem that the proposed
project will address. This section should not describe how the problem will be addressed, only
what the problem is.
Because of an expanding client base, Smith Consulting has moved to a de-centralized business
model over the last 2 years. As we continue to support more clients in more locations, the
administration of our workforce has become more difficult. Until now, many of our internal
requirements such as reporting, payroll activities, and resource management have been done via
legacy mainframe systems. As our workforce expands in numbers and area, these legacy
mainframe systems have become inadequate to effectively manage these administrative
activities. This inadequacy is manifested in higher costs and increased employee turnover which
we have seen over the last 12 months. In order to more effectively manage our administration,
reduce costs, and improve employee turnover, Smith Consulting must move to a web-based
application as outlined in this business case for the WP Project. By doing so, employees will
assume a greater role in managing their administrative issues, have access to timesheets securely
online, and the company can manage its administration from one central and common platform.
This section should describe the anticipated outcome if the proposed project or initiative is
implemented. It should include how the project will benefit the business and describe what the
end state of the project should be.
1.3 Recommendation
This section summarizes the approach for how the project will address the business problem.
This section should also describe how desirable results will be achieved by moving forward with
the project.
Various options and alternatives were analyzed to determine the best way to leverage technology
to improve the business processes and reduce the overhead costs within Smith Consulting. The
approach described herein allows us to meet our corporate objectives of continuously improving
efficiency, reducing costs, and capitalizing on technology. The recommended WP Project will
methodically migrate the data and functions of our current mainframe system to our new web-
based platform in order to preserve data integrity and allow adequate time to train all employees
and managers on their responsibilities and respective administrative functions. The web-based
platform is compatible with all other current IT systems and will improve the efficiency and
accuracy of reporting throughout the company. Some of the ways that this technology will
achieve its desired results are:
Employees will be able to enter and edit their timesheet data at any time from any location
instead of phoning their data to their regional manager for entry into the mainframe system
Timesheet and payroll data will be immediately accessible for quality control and reporting
purposes which will reduce the need for staff in non-billable positions to gather, analyze and
compile data
Employees will have the ability to register for training which reduces the burden on managers
and training staff
1.4 Justification
This section justifies why the recommended project should be implemented and why it was
selected over other alternatives. Where applicable, quantitative support should be provided and
the impact of not implementing the project should also be stated.
The migration of payroll and other administrative functions from the legacy mainframe system to
the web-based platform will result in greater efficiency with regards to company resources and
business processes. The WP Project is also aligned with corporate strategy and objectives since it
uses technology to improve the way we do business. While other alternatives and the status quo
were analyzed, the WP Project was selected for proposal in this business case because it provides
the best opportunity to realize benefits in an expedited manner while also allowing for the
greatest improvement in efficiency and cost reduction. Other alternatives assumed greater risk,
provided less benefits, were too difficult to define, or were not suitably aligned with current
corporate strategy and/or objectives.
This section of the business case describes the roles of the team members who developed the
business case. It is imperative that participants and roles are clearly defined for the business case
as well as throughout the life of the project.
The following individuals comprise the business case analysis team. They are responsible for the
analysis and creation of the WP Project business case.
This section describes the business problem that this project was created to address. The problem
may be process, technology, or product/service oriented. This section should not include any
discussion related to the solution.
Since its inception, Smith Consulting has relied upon a mainframe system to manage payroll and
other administrative employee functions. As the number of employees grows, so does the burden
placed upon headquarters to effectively manage the company’s administration at acceptable
levels. In the last two years Smith Consulting has hired 5 employees into overhead positions to
help manage and run the day to day administration operations. These positions provide little or
no return on investment as they are not billable positions and only maintain the status quo; they
do nothing to improve the management of the company’s administration. Additionally,
employees must currently call their regional managers to enter their work hours and raise any
concerns regarding payroll and administrative tasks. This places a large burden on managers who
much balance these requirements with their day to day billable tasks.
Reporting is another problem area associated with the legacy mainframe system. All weekly and
monthly financial reports must be generated manually which allows for a high probability of
error and require significant amounts of time. These manual tasks further add to the burden and
expense of the company.
This section describes how the proposed project will modify or affect the organizational
processes, tools, hardware, and/or software. It should also explain any new roles which would be
created or how existing roles may change as a result of the project.
The WP Project will impact Smith Consulting in several ways. The following provides a high-
level explanation of how the organization, tools, processes, and roles and responsibilities will be
affected as a result of the WP Project implementation:
Tools: the existing legacy administration platform will be phased out completely as the WP
Project is stood up and becomes operational. This will require training employees on the WP
tools and their use in support of other organizational tools.
Processes: with the WP Project comes more efficient and streamlined administrative and payroll
processes. This improved efficiency will lessen the burden on managers and provide autonomy
to employees in managing their administrative and payroll tasks and actions.
Hardware/Software: in addition to the software and licensing for the project, Smith Consulting
will be required to purchase additional servers to accommodate the platform and its anticipated
growth for the next 10 years.
This section of the Business Case Template provides a high-level overview of how the new
technology will be implemented and how data from the legacy technology will be migrated. This
section should also explain any outstanding technical requirements and obstacles which need to
be addressed.
In order to effectively migrate existing data from our legacy platform to the new Web-based
platform, a phased approach has been developed which will result in minimal/no disruption to
day to day operations, administration, and payroll activities. The following is a high-level
overview of the phased approach:
Phase I: Hardware/Software will be purchased and the WP system will be created in the web-
based environment and tested by the IT development group.
Phase II: IT group will stand up a temporary legacy platform in the technology lab to be used for
day to day operations for payroll and administration activities. This will be used as a backup
system and also to archive all data from the company mainframe.
Phase III: The web-based platform will be populated with all current payroll and administrative
data. This must be done in conjunction with the end of a pay cycle.
Phase IV: All employees will receive training on the new web-based platform.
Phase V: The web-based platform will go live and the legacy mainframe system will be archived
and stood down.
4. Project Overview
This section describes high-level information about the project to include a description, goals and
objectives, performance criteria, assumptions, constraints, and milestones. This section of the
Business Case consolidates all project-specific information into one chapter and allows for an
easy understanding of the project since the baseline business problem, impacts, and
recommendations have already been established.
The WP Project overview provides detail for how this project will address Smith Consulting’s
business problem. The overview consists of a project description, goals and objectives for the
WP Project, project performance criteria, project assumptions, constraints, and major milestones.
As the project is approved and moves forward, each of these components will be expanded to
include a greater level of detail in working toward the project plan.
This section describes the approach the project will use to address the business problem(s). This
includes what the project will consist of, a general description of how it will be executed, and the
purpose of it.
The WP Project will review and analyze several potential products to replace Smith Consulting’s
legacy payroll and administration mainframe system with a web-based platform. This will be
done by determining and selecting a product which adequately replaces our existing system and
still allows for growth for the next 10 years. Once selected, the project will replace our existing
system in a phased implementation approach and be completed once the new system is
operational and the legacy system is archived and no longer in use.
This project will result in greater efficiency of day to day payroll and administrative operations
and reporting, significantly lower overhead costs, and reduced turnover as a result of providing
employees with greater autonomy and flexibility. Additionally, managers will once again be
focused on billable tasks instead of utilizing a significant portion of their time on non-billable
administrative tasks.
Smith Consulting will issue a Request for Information in order to determine which products are
immediately available to meet our business needs. Once the product is acquired, all
implementation and data population will be conducted with internal resources.
This section lists the business goals and objectives which are supported by the project and how
the project will address them.
The WP Project directly supports several of the corporate goals and objectives established by
Smith Consulting. The following table lists the business goals and objectives that the WP Project
supports and how it supports them:
This section describes the measures that will be used to gauge the project’s performance and
outcomes as they relate to key resources, processes, or services.
The following table lists the key resources, processes, or services and their anticipated business
outcomes in measuring the performance of the project. These performance measures will be
quantified and further defined in the detailed project plan.
This section lists the preliminary assumptions for the proposed project. As the project is selected
and moves into detailed project planning, the list of assumptions will most likely grow as the
project plan is developed. However, for the business case there should be at least a preliminary
list from which to build.
The following assumptions apply to the WP Project. As project planning begins and more
assumptions are identified, they will be added accordingly.
All staff and employees will be trained accordingly in their respective data entry, timesheet, and
reporting tasks on the new web-based system
Funding is available for training
Funding is available for purchasing hardware/software for web-based system
All department heads will provide necessary support for successful project completion
Project has executive-level support and backing
This section of the business case template lists the preliminary constraints for the proposed
project. As the project is selected and moves into detailed project planning, the list of constraints
will most likely grow as the project plan is developed. However, for the business case there
should be at least a preliminary list from which to build.
The following constraints apply to the WP Project. As project planning begins and more
constraints are identified, they will be added accordingly.
There are limited IT resources available to support the WP Project and other, ongoing, IT
initiatives.
There are a limited number of commercial off the shelf (COTS) products to support both payroll
and administrative activities.
As implementation will be done internally and not by the product developers or vendors, there
will be limited support from the hardware/software providers.
This section lists the major project milestones and their target completion dates. Since this is the
business case, these milestones and target dates are general and in no way final. It is important to
note that as the project planning moves forward, a base-lined schedule including all milestones
will be completed.
The following are the major project milestones identified at this time. As the project planning
moves forward and the schedule is developed, the milestones and their target completion dates
will be modified, adjusted, and finalized as necessary to establish the baseline schedule.
5. Strategic Alignment
All projects should support the organization’s strategy and strategic plans in order to add value
and maintain executive and organizational support. This section provides an overview of the
organizational strategic plans that are related to the project. This includes the strategic plan, what
the plan calls for, and how the project supports the strategic plan.
The WP Project is in direct support of several of Smith Consulting’s Strategic Plans. By directly
supporting these strategic plans, this project will improve our business and help move the
company forward to the next level of maturity.
Many consider this one of the most important parts of a business case as it is often the costs or
savings a project yields which win final approval to go forward. It is important to quantify the
financial benefits of the project as much as possible in the business case. This is usually done in
the form of a cost benefit analysis. The purpose of this is to illustrate the costs of the project and
compare them with the benefits and savings to determine if the project is worth pursuing.
The following table captures the cost and savings actions associated with the WP Project,
descriptions of these actions, and the costs or savings associated with them through the first year.
At the bottom of the chart is the net savings for the first year of the project.
Based on the cost benefit analysis above we see that by authorizing the WP Project, Smith
Consulting will save $247,239.00 in the first year alone. This represents a significant
improvement in our operating costs and is a clear indicator of the benefit this project will have
on the company.
7. Alternative Analysis
All business problems may be addressed by any number of alternative projects. While the
business case is the result of having selected one such option, a brief summary of considered
alternatives should also be included—one of which should be the status quo, or doing nothing.
The reasons for not selecting the alternatives should also be included.
The following alternative options have been considered to address the business problem. These
alternatives were not selected for a number of reasons which are also explained below.
8. Approvals
The business case is a document with which approval is granted or denied to move forward with
the creation of a project. Therefore, the document should receive approval or disapproval from
its executive review board
The signatures of the people below indicate an understanding in the purpose and content of this
Business Case by those signing it. By signing this document you indicate that you approve of the
proposed project outlined in this business case and that the next steps may be taken to create a
formal project in accordance with the details outlined herein.
1. Executive Summary
The executive summary provides an overview of the content contained in the feasibility study
document. Many people write this section after the rest of the document is completed. This
section is important in that it provides a higher level summary of the detail contained within the
rest of the document. Remember to remove the green instructional portion of the Feasibility
Study Template before making your document final.
Alan’s Best Chocolates (ABC) is a leader in the sales of chocolates and confections throughout
the United States. ABC’s products are sold from 50 stores throughout the country and maintain a
reputation for superior taste and quality. While ABC’s sales have grown over the past 10 years,
the rate of growth has slowed significantly. One key factor for this slowing growth rate is the
shift in the marketplace to purchasing chocolates and confections online. While ABC maintains a
web site, it is not capable of hosting an e-commerce platform for online sales. ABC’s sales occur
only in its brick and mortar facilities and the company is losing potential customers to
competitors who provide online sales. The chocolate and confections marketplace is healthy and
shows a continued growth trajectory over the next five to ten years. ABC is in a position to
capitalize on this online marketplace by leveraging existing technologies, industry best practices,
and an aggressive marketing and sales campaign to ramp up the company’s growth projections
for the foreseeable future.
This section of the feasibility study provides a high level description of the products and/or
services which are being considered as past of the feasibility study. The purpose of this section is
to provide detailed descriptions of exactly what the organization is considering so this
information can be applied to the following sections of the document. It is important that this
description captures the most important aspects of the products and/or services that the
organization is considering as well as how it may benefit customers and the organization.
ABC is considering a move to create and provide an online platform from which to sell its
existing product line. Until now ABC has only sold its products from its chain of brick and
mortar facilities and has been limited to sales within the geographical regions where its stores
reside. By doing so, ABC has not been able to capitalize on the growing trend of online sales
within the chocolate and confections marketplace. By offering its products through an online
platform, ABC can market its products to an entirely new market, increase revenue and growth
projections, and allow customers to purchase our products from the convenience of their own
homes.
There are no proposed changes to ABC’s current product offerings as a result of this study.
Online sales will include only current products and any changes to this product line must be
considered outside of the purpose of this document.
3. Technology Considerations
This section of the feasibility study should explain any considerations the organization must
make with regards to technology. Many new initiatives rely on technology to manage or monitor
various business functions. New technology may be developed internally or contracted through a
service provider and always result in costs which must be weighed in determining the path
forward.
Upgraded technological capability will be required for ABC to move toward offering an online
marketplace from which customers may purchase our products. Customers demand a simple and
easy way by which to conduct online transactions and it is imperative that all transactions are
conducted in a secure manner. While ABC maintains a web site with product lists and
descriptions, it does not currently allow for purchasing to be done online. This functionality must
be integrated with our current web site to allow for secure purchases to be made. Additionally,
new online marketing functionality must be considered in order to target existing and potential
customers through methods such as e-mailing lists, promotional advertisements, and loyalty
discounts.
While ABC maintains a small information technology (IT) group, the expertise does not
currently exist internally to design, build, and implement the sort of extensive online platform
required for this effort. Therefore, the recommendation is to contract this work out to an internet
marketplace provider who can work with ABC to meet its needs within the determined
timeframe and budget. It should be noted that while ABC does not have this expertise internally,
the technology exists and is in use throughout the marketplace which lowers the risk of this
concept considerably.
ABC currently maintains a high speed internet connection, web server, and the latest software.
With the addition of an e-commerce portal it is expected that there will be an overall cost
increase of 5-10% for web server operations and maintenance costs.
4. Product/Service Marketplace
This part of the feasibility study describes the existing marketplace for the products and/or
services the organization is considering. It may describe who the target market consists of for
these products or services, who the competitors are, how products will be distributed, and why
customers might choose to buy our products/services. Most marketplaces are dynamic
environments in which things change constantly. To enter a new marketplace blindly will usually
result in an organization not fully understanding its role and not maximizing its resulting
benefits.
The online marketplace for chocolates and confections has been thriving for many years. In
FY20xx online chocolate sales accounted for approximately $20 million or 20% of total
chocolate sales worldwide. While chocolates and confections are available in almost every store,
our primary marketplace consists of specialty chocolates and confections. All of ABC’s current
major competitors already have an established online presence of at least 3-5 years. The top 3
competitors are currently: Smith’s Chocolates, Worldwide Candy, and Chocolate International.
A large majority of ABC’s customer base are returning customers and referrals from existing
customers. By providing a more convenient means of purchasing our products online it is
expected that we will retain these customers while conducting an online marketing campaign for
new customers as well.
ABC will distribute online purchases via direct shipping from the nearest store location. This
will allow ABC to provide timely shipping and eliminate the need for a central warehouse or
facility from which to store and ship its products. Such a facility would require a significant
capital investment as well as increased operation and maintenance costs. However, based on
anticipated growth projections, ABC must ensure that all store locations maintain adequate
inventories on hand to satisfy customer demand.
5. Marketing Strategy
Here the feasibility study provides a high level description of how the organization will market
its product or service. Some topics which should be included are: how does an organization
differentiate itself from its competitors; types of marketing the organization will utilize; and who
the organization will target. Marketing efforts must be focused on the right target groups in order
to yield the greatest return on investment.
In order to be successful, ABC must differentiate itself from competitors in order to appeal to
customers in the online marketplace. To do this, ABC will utilize its practice of personalizing its
product packaging which it currently offers in-store customers. Current competitors do not
currently provide any personalization of packaging. Customers will have the ability to
personalize messages on or inside of product packaging, request specific color-based themes, or
tailor packaging for special occasions or events.
ABC will implement a customer e mailing list in order to send product promotions, sales
advertisements, and other special offerings to customers who register. Additionally, ABC will
offer referral incentives to customers who refer our products to friends and family in order to
provide additional incentives. ABC will also maintain a customer database in order to determine
its target customer groups and geographical regions. ABC will research marketing intelligence
providers to determine the benefits and costs of purchasing customer information for bulk email
campaigns as well. Another important consideration of ABC’s online marketing strategy is cost.
Electronic marketing communication costs are very small in comparison to direct mail marketing
which ABC currently utilizes. However, we expect the additional revenue from online sales to
greatly outweigh these additional electronic marketing costs.
It is important to note that ABC’s current marketing and sales staff will require training in online
marketing and sales practices. This training will need to be contracted to a training provider as
part of our startup costs and schedule.
With many new products or services there may be a need for additional staffing or for an
organization to restructure in order to accommodate the change. These are important
considerations as they may result in increased costs or require an organization to change its
practices and processes.
The ABC online sales campaign is not anticipated to significantly affect the organizational
structure of the company. There are, however, several staffing additions required to successfully
implement the online sales campaign. All of these positions will work within existing
departments and report to department managers.
Staffing Position #1: Online Sales Manager – this full time position will lead sales staff in
identifying sales opportunities and converting these opportunities to actual sales. This person
will report to ABC’s Director of Sales and will work in ABC headquarters.
Staffing Position #2: Online Marketing Manager – this full time position will lead marketing staff in
identifying target customer groups/markets and conducting online advertising/marketing efforts to
maximize traffic to ABCs online marketplace. This person will report to ABC’s Director of Marketing and
will work in ABC headquarters.
7. Schedule
This section of the feasibility study is intended to provide a high level framework for
implementation of the product or service being considered. This section is not intended to
include a detailed schedule as this would be developed during project planning should this
initiative be approved. This section may include some targeted milestones and timeframes for
completion as a guideline only.
The ABC online sales campaign is expected to take six months from project approval to launch
of the e-commerce platform. Many of the foundations for this platform, such as high-speed
internet and web server capability, are already available. The following is a high level schedule
of some significant milestones for this initiative:
Upon approval of this project a detailed schedule will be created by the assigned project team to
include all tasks and deliverables.
8. Financial Projections
The financial projections for the feasibility study provides a description of the financial
projections the new initiative is expected to yield versus additional costs. Financial projections
are one key aspect of new project selection criteria. There are many ways to present these
projections. Net present value (NPV), cost-benefit calculations, and balance sheets are just some
examples of how financial projections may be illustrated. This section should also provide the
assumptions on which the illustrated financial projections are based.
The financial projections for the addition of an online sales platform for ABC are highlighted in
the table below. These figures account for projected online sales, additional staffing
requirements, shipping, material, and insurance costs, contract support for IT and training needs,
and web server and hosting costs.
This section of the feasibility study template provides an area where to summarize the findings
of the feasibility study and explain why this course of action is or is not recommended. This
section may include a description of pros and cons for the initiative being considered. This
section should be brief since most of the detail is included elsewhere in the document.
Additionally, it should capture the likelihood of success for the business idea being studied.
Based on the information presented in this feasibility study, it is recommended that ABC
approves the online sales initiative and begins project initiation. The findings of this feasibility
study show that this initiative will be highly beneficial to the organization and has a high
probability of success. Key findings are as follows:
Technology:
Marketing:
This initiative will allow ABC to reach large number of target groups electronically at a low cost
ABC can expand customer base beyond geographic areas where stores are currently located
The marketplace for online chocolate and confection sales is in a steady state of growth
ABC is able to differentiate itself from its competitors and will utilize incentive programs to
target new consumers
Organizational:
Financial:
Note: This is the multiple-page Project Charter Template. There is also a one-page version
available if your organization requires a shorter more concise project charter.
Executive Summary
The executive summary should be a high-level summary of what issues or problems the project
was created to correct. Typically, the executive summary also provides the background
information and general statements regarding the project’s purpose or justification which will be
covered in more detail in the appropriate section(s) of the charter.
For the past several years our company intranet has been subject to numerous external breaches
because of poor information technology (IT) security measures. These incidents have resulted in
approximately $10 million in damages to the company. The Intranet Security Assurance (ISA)
project has been created to address and correct these security issues and prevent further loss due
to external IT security breaches. The project will integrate improved technology solutions with
our current platform in order to establish a more robust security infrastructure.
Project Purpose/Justification
This section of the project charter describes the purpose and justification of the project in the
form of business case and objectives. The business case should provide the reasoning behind the
need for this project as it relates to a function of the business.
Business Need/Case
Discuss the logic for the Business Need/Case (market demand, organizational need, customer
request, technological advance, legal requirement, ecological impacts, social need, etc). This
section should also include the intended effects of the business case (i.e. cost savings, process
improvement, new product development, etc).
The ISA project has been created to increase organizational IT security in order to prevent
further financial damages resulting from external security breaches. The costs associated with the
successful design and implementation of these security measures will be recovered as a result of
the anticipated reduction in financial damages.
Business Objectives
Here the project charter should list the Business Objectives for the project which should support
the organizational strategic plan.
The business objectives for this project are in direct support of our corporate strategic plan to
improve IT security and reduce costs associated with loss and waste.
Design and test a new IT security infrastructure within the next 90 days
Complete implementation the new IT infrastructure within the next 120 days
Reduce the amount of damages by 50% in the first year
Project Description
This section of the project charter provides a high-level description of the project. This
description should not contain too much detail but should provide general information about
what the project is, how it will be done, and what it is intended to accomplish. As the project
moves forward the details will be developed, but for the project charter, high-level information is
what should be provided.
The ISA project will provide increased security to the company’s IT infrastructure and, more
specifically, to the company intranet. The ISA project will utilize improved technology in the
form of security hardware and software in order to prevent external breaches of the company
intranet. All hardware and software will be integrated into the company’s current IT platforms in
order to establish increased security while allowing all systems and processes to continue
without interruption.
The objectives which mutually support the milestones and deliverables for this project have been
identified. In order to achieve success on the ISA project, the following objectives must be met
within the designated time and budget allocations:
Develop security solution methodology to present to the VP of Technology within the next 20
days
Complete list of required hardware/software which meets budget allocation within the next 25
days
Create a simulated solution in the IT lab using all purchased hardware and software to test the
solution within the next 60 days
Achieve a simulated solution which allows no security breaches and complete testing within the
next 90 days
Implement the solution across the organization within the next 120 days
Requirements
The project team should develop a list of all high-level project requirements. These requirements
are clear guidelines within which the project must conform and may be a result of input from the
project sponsor, customer, stakeholders, or the project team.
This project must meet the following list of requirements in order to achieve success.
Additional requirements may be added as necessary, with project sponsor approval, as the
project moves forward.
Constraints
Constraints are restrictions or limitations that the project manager must deal with pertaining to
people, money, time, or equipment. It is the project manager’s role to balance these constraints
with available resources in order to ensure project success.
All security hardware and software must be compatible with our current IT platforms
All hardware and software must be purchased in accordance with the allocated budget and
timeline
Two IT specialists and one security specialist will be provided as resources for this project
Assumptions
The project team must identify the assumptions they will be working under as the project goes
forward and document them in the project charter. These assumptions are what the project
manager/team expect to have or be made available without anyone specifically stating so.
The following are a list of assumptions. Upon agreement and signature of this document, all
parties acknowledge that these assumptions are true and correct:
This project has the full support of the project sponsor, stakeholders, and all departments
The purpose of this project will be communicated throughout the company prior to deployment
The IT manager will provide additional resources if necessary
The preliminary scope statement is a general paragraph which highlights what the project will
include, any high-level resource or requirement descriptions, and what will constitute completion
of the project. This preliminary scope statement is exactly that: preliminary. All of this
information will be expanded upon in greater detail as the project moves forward and undergoes
progressive elaboration.
The ISA project will include the design, testing, and delivery of an improved intranet security
system throughout the organization. All personnel, hardware, and software resources will be
managed by the project team. All project work will be independent of daily and ongoing
operations and all required testing will be done in the IT laboratory. All project funding will be
managed by the project manager up to and including the allocated amounts in this document.
Any additional funding requires approval from the project sponsor. This project will conclude
when the final report is submitted within 30 days after the intranet security solution is tested and
deployed throughout the organization, all technical documentation is complete and distributed to
the appropriate personnel, and a list of future security considerations is complete and submitted
to the VP of Technology.
Risks
All projects have some form of risk attached. This section of the project charter should provide a
list of high-level risks that the project team has determined apply to this project.
The following risks for the ISA project have been identified. The project manager will determine
and employ the necessary risk mitigation/avoidance strategies as appropriate to minimize the
likelihood of these risks:
Project Deliverables
This section should list all of the deliverables that the customer, project sponsor, or stakeholders
require upon the successful completion of the project. Every effort must be made to ensure this
list includes all deliverables and project sponsor approval must be required for adding additional
deliverables in order to avoid scope creep.
The following deliverables must be met upon the successful completion of the ISA project. Any
changes to these deliverables must be approved by the project sponsor.
This section of the project charter provides an estimated schedule of all high-level project
milestones. It is understood that this is an estimate and will surely change as the project moves
forward and the tasks and milestones and their associated requirements are more clearly defined.
The project Summary Milestone Schedule is presented below. As requirements are more clearly
defined this schedule may be modified. Any changes will be communicated through project
status meetings by the project manager.
Summary Milestone Schedule – List key project milestones relative to project start.
Project Milestone Target Date (mm/dd/yyyy)
Project Start 01/01/20xx
Complete Solution Design 01/21/20xx
Acquire Hardware and Software 01/26/20xx
Complete Solution Simulation with New Hardware/Software 03/01/20xx
Complete Solution Simulation and Testing 04/01/20xx
Deploy Solution 05/01/20xx
Project Complete 05/15/20xx
Summary Budget
The summary budget should contain general cost components and their planned costs. As the
project moves forward these costs may change as all tasks and requirements become clearer. Any
changes must be communicated by the project manager.
The following table contains a summary budget based on the planned cost components and
estimated costs required for successful completion of the project.
The organization must understand when the project has reached a successful completion. These
criteria must be clear and should be accepted by whoever will sign-off on the project’s closeout.
Once the project charter is signed-off by the authorized person, the project is deemed approved
and is successful as long as it has met all of the agreed upon requirements.
Success for the ISA project will be achieved when a fully tested intranet security solution, and all
technical documentation, is fully deployed throughout the company within the time and cost
constraints indicated in this charter. Additionally, this measure of success must include a
recommendation list for future security considerations as we fully anticipate the necessity of this
solution to evolve in order to prevent future threats. Success will be determined by the Project
Sponsor, Mr. Jim Thomas, who will also authorize completion of the project.
Project Manager
This section of the project charter explicitly states who is assigned as the PM, their
responsibility, and authority level. Depending on the organization and scope of the project, the
project manager may have varying levels of responsibility and authority for personnel, project
expenditures, and scheduling.
John Doe is named Project Manager for the duration of the ISA Project. Mr. Doe’s responsibility
is to manage all project tasks, scheduling, and communication regarding the ISA project. His
team, consisting of two IT specialists and one security specialist will be matrix support from the
IT department. Mr. Doe will coordinate all resource requirements through the IT department
manager, Jane Snow. Mr. Doe is authorized to approve all budget expenditures up to, and
including, the allocated budget amounts. Any additional funding must be requested through the
Project Sponsor, Jim Thomas. Mr. Doe will provide weekly updates to the Project Sponsor.
Authorization
__________________________________________ Date:____________________
<Project Sponsor Name>
<Project Sponsor Title>
PROJECT CHARTER TEMPLATE
Paragraph 1: Formally authorize the project in this section of the Project Charter.
This Charter formally authorizes the Payroll Project to develop and implement a new payroll
system for use in Jones Consulting Company’s payroll group. A project plan will be developed
and submitted to the Project Sponsor for approval. The project plan will include: scope
statement; schedule; cost estimate; budget; and provisions for scope, resource, schedule,
communications, quality, risk, procurement, and stakeholder management as well as project
control. All resources will be assigned by the Project Sponsor, Van Johnson, Human Resources
Director.
Paragraph 2: Project Scope - State the scope of the project, its deliverable and what business
needs, problems or opportunities the project addresses – a market demand, business need, legal
requirement, social need, customer request or technological advance.
The purpose of the Payroll project is to improve the timeliness and accuracy of payroll
operations. This project meets Jones Consulting’s need for improved efficiencies across all
departments by reducing payroll cycle time and minimizing staffing required for payroll
operations. The project deliverables shall include payroll system design, all coding, testing,
implementation of an integrated system for use with existing IT infrastructure, and a user’s
guide. The objectives of the Payroll project are to reduce payroll cycle time by 30% and reduce
payroll staffing by 20%. High level risks for this project include ensuring implementation is
completed without impacting ongoing payroll operations and ensuring there are no issues with
migrating payroll accounts from the legacy system to the new system. Success will be
determined by the Project Sponsor once the system is implemented and one full payroll cycle has
been completed that meets the objectives with no discrepancies.
Paragraph 3: Identify the Project Manager and give him authority to apply organization resources
to the project.
The Project Manager, Bill Smith, is hereby authorized to interface with management as required,
negotiate for resources, delegate responsibilities within the framework of the project, and to
communicate with all contractors and management, as required, to ensure successful and timely
completion of the project. The Project Manager is responsible for developing the project plan,
monitoring the schedule, cost, and scope of the project during implementation, and maintaining
control over the project by measuring performance and taking corrective action.
Paragraph 5: Project Budget – state the budget for the project and identify funding sources.
The budget for the Payroll project is $420,000. It is to be funded through the FYxx Human
Resources Technology Budget.
Sponsor Acceptance
__________________________________________ Date:____________________
<Project Sponsor Name>
<Project Sponsor Title>
STATEMENT OF WORK TEMPLATE
1. Executive Summary
This project Statement of Work template is provided free of charge. We recommend you
download the MS Word version (by clicking on the icon above) and using it as a starting point to
developing your own Statement of Work. Be sure to look at the many other templates available
for free on our website.
This section of the Statement of Work (SOW) should provide a summary of the business need
the organization is addressing with the project, the scope and characteristics of the product or
project deliverable, and how the project and product align with the corporate strategy, goals, and
objectives. The executive summary should consist of high-level language which provides a
framework of the detail included in the subsequent SOW sections. This section may be
completed last as the purpose is to summarize the details included in the other sections of the
SOW.
Over the last several years, as a result of working closely with vendors and clients within the
optical fiber networking marketplace, it has become apparent that as data and speed requirements
grow our product lines must adapt accordingly. Arch Tech Fiber Corporation has always strived
to remain at the forefront of new technology and innovation for the optical fiber market. Because
of these new requirements and the capabilities within our organization, Arch Tech Fiber
Corporation has identified that the need for a high-speed, high-capacity optical fiber product line
must now become a reality. Arch Tech will move forward with the QuickLight project beginning
in early 2012.
Arch Tech Fiber Corporation will proceed with the development of QuickLight Optical Fiber
products in order to address the current business needs of higher speed and capacity for data
transmission. This product line will replace our current MicroTube products as the flagship
optical fiber product line for Arch Tech Fiber Corporation. QuickLight Optical Fiber will meet
or exceed all current MicroTube geometrical and mechanical specifications. Additionally,
QuickLight will be capable of significantly higher speeds for data and voice transmission and
bandwidth capacity.
By providing these increased capabilities, the QuickLight project directly aligns with Arch
Tech’s corporate strategy of utilizing new technology to remain the preeminent provider of
optical fiber. Capital investment in new product development to expand our customer base and
market share is one of Arch Tech’s corporate goals.
2. Business Need
This section of the Statement of Work (SOW) describes the business need of the organization
which resulted in the creation of the project. This business need may be based on new
technology developments, the need to reduce costs, market demand, or the creation of new legal
or regulatory requirements. All projects must align with a business need and organizational
strategy.
Arch Tech Fiber Corporation has approved the creation of the QuickLight Fiber Project as a
result of new technology requirements in optical fiber communication in the global marketplace.
Over the last five years, communication companies and other users of optical fiber networks
have determined that data and voice transmission requirements would need to grow in order to
meet increasing demands for speed and capacity. Arch Tech Fiber Corp. has worked closely with
many of its largest clients in order to understand these new requirements and identify ways by
which to fulfill these greater demands. Organizations require greater capacity as data
transmission needs over fiber networks grow. Additionally, greater speeds are required for data
transmission in order to meet the needs and demands of an ever-growing global marketplace.
The QuickLight Fiber Project is intended to address and meet these demands by developing a
product which surpasses all current capacity and speed specifications. Over the next two years
QuickLight fiber will be developed and used in high-speed, high-capacity data and voice
networks across Arch Tech’s client base.
Starting in the third year after product release, Arch Tech Fiber Corporation will replace our
current MicroTube product with QuickLight as the company’s flagship product line. By
continually engineering solutions which meet and exceed client and market requirements, Arch
Tech can maintain its position among the most reputable optical fiber providers in the world.
This part of the Statement of Work describes the scope of the product which will be created by
the project. Some of the elements to be included in this section are key characteristics of the
product, features and functions of the product, and the relationship between the product and the
business need it addresses. It is important to note that the product scope differs greatly from
project scope. While project scope deals with all of the work involved to complete the project,
product scope pertains only to the product or service which is the project’s deliverable.
The QuickLight Fiber Project has been approved to design, develop, produce, and manufacture
the QuickLight Fiber product. Arch Tech Fiber Corp. views this product as the replacement of
our current flagship product line and the product scope requires faster voice and data
transmission as well as greater transmission capacity in order to meet the organizations business
need. The QuickLight product scope consists of the following characteristics:
Features:
Mechanical Specifications:
Tensile Strength for 0.5m gauge length: median > 575 kpsi
Average jacket strip force 1N to 3N
Maximum allowable jacket strip force < 6.5N
Maximum standard length >25km
All QuickLight characteristics and features were established to meet or exceed those in place
with Arch Tech’s current MicroTube product line. The QuickLight product scope will enable
Arch Tech Corp. to meet the business needs of the project by providing a product which sets new
standards in data and voice transmission speed and capacity.
4. Strategic Plan
This section of the Statement of Work describes the organizational strategic plan and how it
relates to the project and its deliverables. In an effective organization, all projects must have
executive support and be aligned with organizational strategies, goals, and objectives. Approved
projects, and their resulting products or services must support these strategies in order to
contribute to the organization accomplishing its goals and objectives.
Arch Tech Fiber Corporation’s strategic plan includes the continual development of improved
optical fiber product offerings. This applies both to niche segments, like aerial and buried optical
fiber products, and standard product lines like our current MicroTube products. Arch Tech is
using the development of new technology to achieve two of its strategic goals. First, by
developing the QuickLight product line, Arch Tech will maintain its position at the forefront of
the optical fiber marketplace with the highest capacity and speed line of optical fiber products.
Secondly, Arch Tech will use the QuickLight product line to replace the current MicroTube
product line in order to use capital and investments on new technologies as opposed to outdated
product lines which currently flood the market.
By moving to the QuickLight product line Arch Tech anticipates improving its existing optical
fiber market share which also supports its strategic plan. This is primarily due to the fact that no
other optical fiber provider has a product capable of the speed and capacity of QuickLight. By
continuing down this path of new technology development, exceptional service, and targeting
attractive acquisition targets, Arch Tech will maintain its position as the preeminent provider of
optical fiber technologies throughout the world.
5. Approvals
The project Statement of Work (SOW) is a document with which approval is granted or denied
to move forward with the creation of a project charter. Therefore, the document should receive
approval or disapproval from its executive review board.
The signatures of the people below indicate an understanding in the purpose and content of this
document by those signing it. By signing this document you indicate that you approve of the
proposed project outlined in this Statement of Work and that the next steps may be taken to
create a formal project charter in accordance with the details outlined herein.
1. Introduction
This section of the Stakeholder Management Strategy should introduce and discuss the goals and
objectives of the Stakeholder Management Strategy for the project. Effectively managing
stakeholders is a key component of successful project management and should never be ignored.
Proper stakeholder management can be used to gain support for a project and anticipate
resistance, conflict, or competing objectives among the project’s stakeholders.
The Stakeholder Management Strategy for FiberTech’s LightWave Cable Project will be used to
identify and classify project stakeholders; determine stakeholder power, interest, and influence;
and analyze the management approach and communication methodology for project
stakeholders. This will allow us to identify key influential stakeholders to solicit input for project
planning and gain support as the project progresses. This will benefit the project by minimizing
the likelihood of encountering competing objectives and maximizing the resources required to
complete the project.
Early identification and communication with stakeholders is imperative to ensure the success of
the LightWave Project by gaining support and input for the project. Some stakeholders may have
interests which may be positively or negatively affected by the LightWave Project. By initiating
early and frequent communication and stakeholder management, we can more effectively
manage and balance these interests while accomplishing all project tasks.
2. Identify Stakeholders
This section of the Stakeholder Management Strategy should discuss the methodology the
project team will use to identify stakeholders and how stakeholders are defined. It is imperative
that all stakeholders are identified regardless of how major or minor they are. This is because
they will be categorized after they’re identified. If stakeholders are omitted there is a likelihood
that they may become evident at some point during the project’s lifecycle and introduce delays
or other obstacles to the project’s success. Great care and effort should be dedicated to this step
of the Stakeholder Management Strategy.
The LightWave Project Team will conduct a brainstorming session in order to identify
stakeholders for the project. The brainstorming session will include the primary project team and
project sponsor. The session will be broken down into two parts. The first part will focus on
internal stakeholders within FiberTech. These stakeholders may include functional managers,
operations personnel, finance personnel, warehouse and material handlers, and any other
FiberTech employee who will be affected by the LightWave project. The second part of the
session will focus on external stakeholders. These may include suppliers, trial customers, partner
organizations, or any other individuals who reside outside of FiberTech.
1. Will the person or their organization be directly or indirectly affected by this project?
2. Does the person or their organization hold a position from which they can influence the project?
3. Does the person have an impact on the project’s resources (material, personnel, funding)?
4. Does the person or their organization have any special skills or capabilities the project will
require?
5. Does the person potentially benefit from the project or are they in a position to resist this
change?
Any individual who meets one or more of the above criteria will be identified as a stakeholder.
Stakeholders from the same organization will be grouped in order to simplify communication
and stakeholder management.
3. Key Stakeholders
This part of the Stakeholder Management Strategy identifies the sub-set of stakeholders who
have been identified as key stakeholders and the reasoning for determining that they are key
stakeholders. Key stakeholders are often those who potentially have the most influence over a
project or those who may be most affected by the project. They may also be stakeholders who
are resistant to the change represented by the project. These key stakeholders may require more
communication and management throughout the project’s lifecycle and it is important to identify
them to seek their feedback on their desired level of participation and communication.
As a follow on to Identify Stakeholders, the project team will identify key stakeholders who have
the most influence on the project or who may be impacted the most by it. These key stakeholders
are those who also require the most communication and management which will be determined
as stakeholders are analyzed. Once identified, the Project Manager will develop a plan to obtain
their feedback on the level of participation they desire, frequency and type of communication,
and any concerns or conflicting interests they have.
Based on the feedback gathered by the project manager, the determination may be made to
involve key stakeholders on steering committees, focus groups, gate reviews, or other project
meetings or milestones. Thorough communication with key stakeholders is necessary to ensure
all concerns are identified and addressed and that resources for the project remain available.
4. Stakeholder Analysis
Here, the Stakeholder Management Strategy describes how the project team will analyze its list
of identified stakeholders. This discussion should include how stakeholders will be categorized
or grouped as well as the level of impact they may have based on their power, influence, and
involvement in the project. There are several tools and techniques that can be used to help
quantify stakeholders. A description of these tools and techniques should also be included in this
section.
Once all LightWave Project stakeholders have been identified, the project team will categorize
and analyze each stakeholder. The purpose of this analysis is to determine the stakeholders’ level
of power or influence, plan the management approach for each stakeholder, and to determine the
appropriate levels of communication and participation each stakeholder will have on the project.
The project team will categorize stakeholders based on their organization or department. Once all
stakeholders have been categorized, the project team will utilize a power/interest matrix to
illustrate the potential impact each stakeholder may have on the project. Based on this analysis
the project team will also complete a stakeholder analysis matrix which illustrates the concerns,
level of involvement, and management strategy for each stakeholder.
The chart below will be used to establish stakeholders and their levels of power and interest for
use on the power/interest chart as part of the stakeholder analysis.
Below is the power/interest chart for the LightWave Project stakeholders. Each letter represents a
stakeholder in accordance with the key in the chart above.
Based on the power and interest analysis and chart above, stakeholders A, C, and D will require
minimal management effort as they reside in the lower left quadrant of the matrix. Stakeholder F,
in the upper left quadrant, must be kept satisfied by ensuring concerns and questions are
addressed adequately. Stakeholder G, in the lower right quadrant, must be kept informed through
frequent communication on project status and progress. Stakeholders B and E, in the upper right
quadrant, are key players and must be involved in all levels of project planning and change
management. Additionally, stakeholders B and E should be participatory members in all project
status meetings, gate reviews, and ad hoc meetings as required.
The stakeholder analysis matrix will be used to capture stakeholder concerns, level of
involvement, and management strategy based on the stakeholder analysis and power/interest
matrix above. The stakeholder analysis matrix will be reviewed and updated throughout the
project’s duration in order to capture any new concerns or stakeholder management strategy
efforts.