BSBPMG511 Learner Guide

BSBPMG511
Manage project scope
DATE
January 2017 v2.0
Table of contents
Introduction .............................................................................................................................................................. 4
1. Conduct project authorisation activities ............................................................................................................ 5
1.1 Develop and confirm procedures for project authorisation with an appropriate authority .......................... 5
1.1.1 Project management plan................................................................................................................... 8
1.2 Obtain authorisation to expend resources ................................................................................................ 12
1.3 Confirm project delegations and authorities in project governance arrangements .................................... 14
1.3.1 Project roles and responsibilities ...................................................................................................... 14
2 Define project scope ....................................................................................................................................... 17

2.1 Identify, negotiate and document project boundaries .............................................................................. 17
2.1.1 Assumptions..................................................................................................................................... 17
2.1.2 Dependencies................................................................................................................................... 17
2.1.3 Constraints ....................................................................................................................................... 18
2.2 Establish measurable project benefits, outcomes and outputs .................................................................. 19
2.2.1 Project scope management tools ...................................................................................................... 20

2.3 Establish a shared understanding of desired project outcomes with stakeholders ..................................... 21
2.4 Document scope-management plan ......................................................................................................... 22
2.4.1 Baseline............................................................................................................................................ 23
2.4.2 Basic project management lifecycle .................................................................................................. 25

2.4.3 Developing your scope management plan......................................................................................... 26
3 Manage project scope-control process ............................................................................................................ 27

3.1 Implement agreed scope management procedures and processes ........................................................... 27
3.2 Manage impact of scope changes within established time, cost and quality constraints according to
change-control procedures ................................................................................................................................. 30
3.2.1 Time................................................................................................................................................. 32
3.2.2 Constraints ....................................................................................................................................... 33
3.2.3 What is the basic change control function? ....................................................................................... 34
3.3 Identify/document scope-management issues and recommend improvements ........................................ 34
3.3.1 Scope overload................................................................................................................................. 36
3.3.2 Principles of negotiation ................................................................................................................... 37

Glossary .................................................................................................................................................................. 39
Appendix A – Measuring success in business ........................................................................................................... 41
Appendix B - Project authorisation procedure ......................................................................................................... 49
Project intent ...................................................................................................................................................... 49
Manage project scope | January 2017 v2.0

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careersaustralia.edu.au
Scope.................................................................................................................................................................. 49
Definitions .......................................................................................................................................................... 50
Authorisation of project scope statement/charter ............................................................................................... 50

Authorisation of project changes......................................................................................................................... 50
Authorisation of project deliverables................................................................................................................... 50
Authorisation of project expenditure .................................................................................................................. 50
Related policy instruments .................................................................................................................................. 50

Administration .................................................................................................................................................... 51
References .............................................................................................................................................................. 52

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Introduction
Description
This unit describes the performance outcomes, skills and knowledge required to determine and manage project
scope. It involves obtaining project authorisation, developing a scope-management plan, and managing the
application of project scope controls.
Application of unit
This unit applies to those responsible for managing and leading a project in an organisation, business or as a
consultant. The project manager operates within assigned authority levels, and is responsible for own performance
and the performance of others. The project manager may undertake the work in the context of an organisational
program and/o portfolio of projects.
This unit has generic application for projects in a range of industries, organisations and contexts. In the context of
this unit a project is defined as involving:
• a comprehensive, detailed and integrated project management plan

• a formal communications plan
• a dedicated and project-based budget
• formal and planned engagement with a wide range of stakeholders
• a documented risk, issues and change-management methodology
• a quality plan with assurance and control processes
• a project team-based environment
• components of a project scope-management plan
• factors likely to impact on project scope
• formal change-control processes
• methods for measuring work outcomes and progress against plans
• methods for segmenting and documenting a work breakdown structure
• problem areas likely to be encountered in scope management
• procedures for reporting scope change
• project life cycle and the significance of scope management
• project management tools used for managing scope
• role and responsibilities of the project manager in relation to project planning
• types of project initiation documentation.
Note for accessibility of this unit.

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1. Conduct project authorisation activities
When commencing or initiating the project process it is important to consider the activities required. These revolve
around the personnel and stakeholders, authorisation to expend resources, procedures and policies to operate and
administrate the project and governance.
1.1 Develop and confirm procedures for project authorisation with an

appropriate authority
Hint
This content may help you with Task one, question one of your assignment.
Project initiation
Projects are conducted for many reasons, but with each project there is a specific goal or objective that you and your
organisation are trying to reach. Often the project is established to solve a problem. Here are a few examples of
problems that may lead to projects commencing:
• Insufficient space for our growing organisation.

• The need for a new product that meets with consumer demands.
• Declining sales and customer feedback indicating we our out of sync with consumer needs.
• The need to upgrade our technology and train our employees.
Once the problem is established, the goals and objectives for the project can be identified. The project goal is the
high level target that states what the project is to achieve. An effective goal statement is clear and easy for everyone
to understand.
Example: Goal (Operational Plan)
Run quarterly catalogue sales
Objectives provide more detail about the goal. Objectives are important as they will assist in identifying your project scope
and providing you with a measure for project success. Appendix A provides detailed information on organisational goals
and objective and how we measure success in business. Your project may have a number of objectives these may include:
• operational objectives
• financial objectives
• quality objectives
• technical objectives
• project performance objectives.
Example: Project objectives (Objectives are created for Key Result Areas)
Operational Ensure all sales personnel have product knowledge for all catalogue sale products.
Financial Increase sales by 10% for each quarter.
Quality Maintain a quality range of produces with competitive pricing.
Technical In store point of sale software aligned to catalogue sale pricing.

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Example: Project objectives (Objectives are created for Key Result Areas)
Project performance Project completed within agreed budget and timeframe.
Consider the documentation for project initiation to include a project charter, which can also be known as project
brief, concept paper, high-level paper or statement of work. This document sets down the ‘rules’ for the project.
What is to be achieved, critical success factors and what the sponsor and client agree to. This documentation can
also include a scope statement and project authorisation procedures.
Your project may have already have been decided before your involvement as the project manager. Generally, the
project sponsor will give details of the project goals and objectives and prepares a project charter. According to
PMBOK guide when defining the scope a project scope statement should be prepared. In practice, this is rarely
produced and is considered irrelevant as all the project scope information is documented in the project charter.
In any event, it is critical to have a detailed statement of scope, regardless of it being documented twice (i.e. in
scope statement and project charter). A project cannot be measured and considered successful until all the scope
has been delivered.
A project scope statement (or project charter) describes the boundaries of the project:
• What is included in the scope of the project (in scope)?

• What is excluded from the scope of the project (out of scope)?
• Why the project has been formed.
• What are the project objectives and expectations.
• What are the success criteria and how this will be measured.
Example: Scope Statement

Project: Run quarterly Catalogue Sales
Project team has been formed to manage quarterly catalogue sales for all store representation nationally.
Project objectives
Operational objective Ensure all sales personnel have product knowledge for all catalogue sale products.
Financial objective Increase sales by 10% for each quarter.
Quality objective Maintain a quality range of produces with competitive pricing.
Technical objective In store point of sale software aligned to catalogue sale pricing.
Project performance objective Project completed within agreed budget and timeframe.
In scope:
• Planning of quarterly sales promotions
• Identification and negotiation of sales products
• Design and production of catalogue promotion materials
• Purchase of sales products
• Advertising of quarterly sales events
• Launch of sales event
Out of scope:
• Extension to product range
• Addition to preferred suppliers

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Example: Scope Statement
• Individual store (state) product offers
Success criteria:
• All scope requirements delivered
• Achievement of project objectives
• Achievement of project team key performance indicators
No matter how small or large the project, a clear definition and statement of the areas and boundaries of the project
need to be established.
Project approval
Now the project is defined your need to gain approval from the stakeholders to proceed with your planning.
Obtaining approval is important because you need commitment from the stakeholders so your project will be a
success.
Using the project charter or project scope statement you may be tempted to email this to the project sponsor and
stakeholders and request project approval. But historically this method fails to engage stakeholder’s commitment
and enthusiasm for your project.
It is therefore recommended that you schedule a meeting specifically for the project approval. Set a meeting
agenda which will include:
• review of the project scope statement and/or project charter

• discuss and address any concerns or resistance to the project
• reach agreement on the project and its objectives
• request authorisation and have project sponsor sign approval of the project scope statement or project
charter.
Project charter
Your project charter may include project governance and authorisation procedures.
Should describe the accountabilities of each party. Should detail the name and title of
Governance
the stakeholders and those to whom you would report.
Reporting requirements Format, reporting frequency, format and to whom?
Guidelines/standards Guidelines, standards or methodologies that will be applied to manage the project.
You and your project team members will need to know who hold the authority to make project approvals.
Project approvals will be required for:
• initial project scope statement (project charter)

• changes to the project scope
• changes to the project deliverables
• project expenditure.
Project authorisation procedures can help to provide the project team with guidance for project approvals. A plan to
detail the level of authorisation with in the project structure. Who can authorise the expenditure of financial
resources for example? Who you ask for permission, information and approval. What processes to adhere to? An
example of a completed project authorisation procedure is in Appendix B.

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Delegation
Managers cannot perform all project tasks and therefore need to understand how to delegate. There are three
elements to delegation:
• Authority.
• Responsibility.
• Accountability.
Authority:
Authority can be defined as the power and right of a person to use and allocate resources, take decisions and give
orders. Authority must be well defined and communicated. Authority flows from top to bottom of the hierarchy
structure.
Responsibility:
Responsibility is the duty of the person to complete the task assigned to them. Responsibility without adequate
authority leads to discontent and dissatisfaction.
Accountability:
Accountability means being answerable for the end result. Accountability cannot be delegated.
Therefore as a Project Manager you will be:
• assigning tasks and duties to your team

• granting appropriate authority
• creating responsibility and accountability.
By clearly communicating tasks and duties; authority and setting performance measures to ensure responsibility and
accountability you can delegate project tasks. However, at the end the end of the day, you remain accountable for
the management of the project.
1.1.1 Project management plan
The project plan will define how the project will be executed, monitored and controlled and closed. The project
management plan is created at the planning phase of the project and is progressively expanded in detail and content
throughout the life of the project.
Creating a ‘work breakdown structure’ (WBS), is the key to planning and managing a project effectively. A WBS
breaks the project work into bite sized pieces.
The WBS is a functional decomposition of the tasks of the project. The total work of the project is first broken down
into the major summary tasks; then further broken down into subtasks. The decomposition continues until work
packages are detailed. Work packages are the lowest level tasks. They spell out the work to be done. They can be
represented in a variety of different methods. Here are two of the more popular.
Outline view:
ID Task
1 Plan sale dates
1.1.1 Obtain historical data from head office
1.1 Review historical data
1.1.2 Identify and report on top 100 products
1.2 Review sales forecast 1.2.1 Identify top 10 product categories
1.3 Analyse competition 1.3.1 Identify top 5 competitors in each region

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ID Task
2 Identify sales products
2.1.1 Complete stocktake
2.1 Analyse current stockholdings 2.1.2 Check stock variances
2.1.3 Identify obsolete stock
2.2.1 Negotiate consignment stock
2.2.2 Negotiate bulk purchase

2.2 Call for supplier support
2.2.3 Check product availability
2.2.4 Request free merchandising
2.3 Negotiate purchasing prices 2.3.1 Contact preferred suppliers and set meetings
Key
Main tasks Sub tasks Work packages
In a tree structure like this:
Catalogue Sale
Create
Identify sale Purchase sale
Plan sale dates promotional Advertise Sale Launch sale
products products
materials
Analyse Call for Negotiate Agree on Commence

Review Design flyer
current stock supplier purchasing pricing and radio Train staff
historical data layout
holding support prices volume advertising
Count # of Negotiate
Review sales Set product Place signs
products on consignment Place order Sell products
forecast and pricing within store
hand stock
Review sales Distribute

Analyse Negotiate bulk Proof read
history for the Receipt goods promotional
competition purchase design
product materials
Set up
Check product Check product Authorise
promotional
turnover availability production
bays
Request free Organise

merchandising distribution
Breaking the project into smaller pieces or disaggregation, can be achieved in a variety of ways. Project Managers
choose different project disaggregate methodologies depending on the project and industry here are several of the
more commonly referred to examples:
Waterfall – traditional

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The waterfall method is a linear (sequential) top-down approach to project management. Once the Project Manager
determines the requirement for the project, a step by step process to design, and develop a product or service is
implemented. This method provides the benefit of milestone-based planning and team building by investing time in
the planning stages to minimise the effort correcting problems later. Each step in the process needs to be completed
before the next one begins.
This is a traditional approach to project management and does offer advantages – issues found at each stage are
addressed before moving onto the next. Process is critical so documentation is strong in this method.
Disadvantages are the lack of flexibility to factor in changes during the process. If the project is not completely clear
there can be issues.
Agile
Agile environments are ones which are more change driven. Smaller versions/ incremental stages of a ‘product’ are
developed over and over with improvements able to be incorporated. These smaller stages are referred to as
‘sprints’. As changes or improvements are identified through the process they are able to be incorporated into the
project. Agile lends itself to fast turnaround and the dynamic ability to quickly adapt to needed changes or
corrections. One of the major disadvantages is the lack of clear planning. Agile project methodologies can be
completely different to the first plan a more inflexible team may struggle with this innovative approach.
Critical Path Method (CPM)
This methodology assumes you can’t start some tasks before another is completed. Each of these dependant tasks
one after another map out the critical path. Focusing on the critical path means managers can plan and build
priorities around the most necessary tasks.
CPM explores the most important or critical tasks of a project by defining possible activity sequences and estimating
the longest duration of each sequence. It helps figure out how long it will take to complete the work and what tasks
will compose the scope.
The critical path is the sequence of activities from start to the end of a project. Many projects have only one critical
path, but some may have more than one depending on the project.
If there is a delay in any of the activities under the critical path, there will be a delay of the project deliverables. If
there are delays, projects need to be fast tracked or renegotiated to meet deadlines.

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Start a work break down structure at the top - the high level summary tasks. Use the project information in the
scope statement and deliverables to identify your high level summary tasks. The number of high level summary tasks
for the project will depend on the project size and the organisations requirements. It is common practice that the
high level summary tasks align with project milestones.
Follow these steps to create your work breakdown structure:
• Use your scope statement and project deliverables to identify high level summary tasks.
• Next identify sub tasks.
• Breakdown the tasks further into work packages.
• Decompose each task until you reach the lowest level for your work package.
• Involve your stakeholders in the process to ensure all tasks are identified.
Work breakdown structures are important as:
• it is easier to estimate project time and costs against smaller work tasks
• they enable allocation of resources to each small task
• the identification of tasks allow the project manager to measure project progress.
Note: You will find a video tutorial located in your learner resources to assist you with creating a work breakdown
structure.

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1.2 Obtain authorisation to expend resources
Hint
This content may help you with Task one, question one of your assignment.
Monitoring budgets
It could be argued establishment of human and financial resources necessary to deliver the project is the most
crucial element for the success of the project. This process must be established during the project definition and
scoping stage.
Notwithstanding this, it is critical to allow for contingencies during the life of the project in areas such as timeframes,
budget and resourcing.
Similar to the previously discussed outlines for seeking authorisation, financial matters such as expending resources
would be included as part of your project plan. To separate this, for the purpose of this element, the following
should be included in your project planning.
Project financial management is a process which requires:
• planning
• budgeting
• accounting
• financial reporting
• internal control
• auditing
• procurement of goods and services
• disbursement of payments
• achieving the project’s financial objectives.
Business case Financial detail Approvals
The business case includes sufficient detail to seek approval to proceed on the financial detail provided.
Implement steps Monitor actions

Communicate what needs to be done and by Assign the work by breaking down the tasks into smaller and more
what deadline manageable pieces.
Consider a variety of expense alternatives Develop and agree on the project budget plan.
Choosing suppliers and contracts for goods or Base decisions on either company policy or what is best to deliver on
services project time as well as price.
Use a prepared schedule to manage the overall project to ensure its timely
Prepare timeline and sequence of activities
completion.
Project teams are only temporary so select team members based on their
Outline clear expectations for the project team technical skills.
and other human resources Their individual and collective performance will impact on the financial
resources and outcome.

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Implement steps Monitor actions
Manage or minimise each one large or small.
Identify as many potential financial risks as
Routinely monitor and re-evaluate significant risks as the project
applies
continues.
Keep all project stakeholders informed and up-

Issue performance reports, status changes, and other project documents.
to-date
Delivering on time and on budget is the expectation.

Forecasting costs
Include extra funds in the budget.
Financial risk management

Financial risk runs high on the assessment page before approvals are granted.
• Risk assessment.
• Is there risk mitigation (contingency)?
• The real cost of risk.
• Cost analysis.
• Any comparisons to meet your particular requirements.
• Capital costs.
• Funding source (internal or external).
Other financial details that would likely need clarification prior to approval
• Cost benefit analysis.

• Political economic analysis.
• Cash flow.
Approvals
The project sponsor is typically required to endorse the business case.
• The business case needs to explain why the project is needed, and should clearly set out what will be
delivered, and at what cost and timeframe.
• These fundamental points are best supported by information that gives confidence in the ability of the
project to be delivered as proposed.
• Authorisation to expend resources may also require an independent review of the full business case against
the proposal presented
• Do other stakeholders involved with the financial concerns or your project have any reservations?
Overall, is the project appropriate for the uses of the requested resource, taking into account the outcomes, costs,
risks and alternatives?
At the end of the day, you remain accountable for the management of the project.

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1.3 Confirm project delegations and authorities in project governance
arrangements
Governance models
All organisations regardless of size or complexity, need decisions to be made, things to be done and please to
interact to achieve objectives. Governance models are put in place to provide a set of protocols for individuals to
follow.
The components of a governance model will include:
• Decision making structure (who has authority to make a decision)

• Operating procedure (how you go about obtaining this decision)
• Collaboration practices (how can we share this information to gain insights from stakeholders quickly so
that the best decisions are identified and implemented)
A governance model may include the following people:
• Board of directors.
• Executive management team.
• Managers and supervisory staff.
Project governance model/structure:

Establishing the appropriate governance model/structure for a project is a critical activity. It manages the
communication needs of project stakeholders as well as the contributions required from stakeholders for the project
to succeed.
Project governance is the process of project decision making and the framework, models or structures established to
enable decision-making. Good project governance allows effective and efficient decision-making.
Effective project governance positions a project for success. There are four principles of effective project
governance:
• Ensure a single point of accountability for the success of the project. This ensures clarity of leadership, plus
clarity and timeliness of decision making.
• Service delivery ownership determines project ownership. This places the business at the heart of project
delivery and ensures the project governance framework maintains a service delivery focus.
• Ensure separation of stakeholder management and project-decision making activities. This prevents
decision making forums from becoming clogged with stakeholders, which would result in laboured or
ineffective decision making.
• Ensure separation of project governance and organisational governance structures. This reduces the
number of project decision layers, since the project decision path will not follow the organisational line of
command. Confusing them results in organisational role accountabilities sitting uneasily alongside project
governance accountability needs.
1.3.1 Project roles and responsibilities

Establishing an effective organisational structure for the project is crucial to its success. Every project has need for
direction, management, control and communication.
A project needs a different organisational structure from operational management. It needs to be more flexible and
is normally cross-functional. Good project management practice requires the fulfilment of a number of generic, well
defined roles. For the project to be successful, it is important to define these roles at the outset.

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Title Role
• Defines the business case for the project.
• Secures finance/funding and resources for the project.
• Sets the overall scope and objectives for the project.
Project • Supports and promotes the project.
sponsor • Monitors the project activities and progress.
• Is the ultimate decision maker for the project?
• Defines project manager role and responsibilities.
• Assumes corporate accountability for the project and the project manager’s performance.
Title Role
• Prepares the project management plan.
• Assembles and appoints project team.
• Establishes reporting and monitoring systems.
• Manages project team roles and responsibilities.
Project • Manages project team performance.
manager • Holds operating responsibility for the project.
• Reports on project progress and results.
• Manage project communication and human resources.
• Manages project risk.
• Manages project integration.
Title Role
As the name suggests a steering committee helps to steer a project from start to completion. It is usually
formed by a group of key representatives with particular expertise to assist in the project’s success.
• Provide input into the development of the project.
Steering • Provide advice on budget.

committee • Defining and helping to achieve project outcomes.
• Assisting in risk identification.
• Providing advice on changes to the project as it develops.
Members do not usually work on the project team themselves.
Title Role
These are individuals or groups who provide money to fund the project. Some projects may have more than
Funding groups one funding source. These groups may include industry bodies, government departments, shareholders,
other businesses or private investors or banks.
The responsibility assignment matrix (RAM)

The responsibility assignment matrix (RAM) is a critical tool used to delegate the accountability for major project
deliverables to various project team members.
It is a structured table relating the project organisation chart to the work break down structure (WBS) to help ensure
all components within the project scope have been assigned to a project team or team member.
In a project situation, a RAM:

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• assigns project accountabilities to specific project team members
• reduces conflict in team with clarity of responsibilities
• improves scheduling by ensuring all activities are acknowledged and planned
• clearly assigns authority levels and roles for approval
• can indicate where project resources are under or over-allocated
• acknowledges stakeholder roles in major deliverables and activities.
For example, the RACI chart below:
Project Project Team member Team member Team member

Deliverable/activity
Sponsor Manager 1 2 3
Project charter R A I C I
Communication plan C R.A I I I
HR plan I R A C C
Deliverable 1 I R I C A
Deliverable 2 C C I A I
Deliverable 3 I C C C C
R= Responsible A= Accountable C= Consult I= Inform

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2 Define project scope
2.1 Identify, negotiate and document project boundaries
When developing high level scope, which is required for the project charter, the focus is on identifying and defining
project boundaries in terms of assumptions, dependencies and constraints.
2.1.1 Assumptions
Hint
This content may help you with Task two, question one of your assignment.
An assumption is something that is believed to be true, real or certain, but not confirmed. Assumptions affect all
aspects of project planning and involve a degree of risk. If assumptions are not clearly documented the project will
be difficult to manage. Stakeholders will have assumptions about the project outcomes. You need to ask questions
about stakeholder expectations to uncover assumptions. Ask stakeholders what they see and image the project
outcome will look like; or how it will work.
Example: Uncovering assumptions
Project: Catalogue Sale

Project Manager: What results to do expect from the catalogue sale?
Project sponsor: I expect to see that we have a uniformed approach to our quarterly sales across all of our stores nationally. I
would anticipate an increase in sales volume for all stores. I expect to see some solid branding and an increase in customer
traffic. I would expect that our sales staff are trained and prepared to sell the products that are on sale. I expect that the
products are presented professionally and the sales catalogues are issued with sufficient time for customers to receive the
information.
Project Manager: who do you see as responsible for the distribution of the catalogues?
Project sponsor: I think it is a project managers KPI to ensure the catalogues are distributed on time.
Project Manager: Do you see the marketing team being involved in that process?
Project sponsor: Yes, I assumed all marketing staff would contribute to the project.
Given that assumptions present risk to the project they should be documented in the project management plan and
recorded in an assumption log. When recording assumptions in the log they are worded in terms of the impact that might
occur if the assumption is proven to be untrue.
2.1.2 Dependencies
Dependencies are relationships between project tasks and other activities which may be external to the project.
Dependencies between specific tasks internal to the project can be identified and managed by the project manager.
You will learn more about this when you develop your project schedule. External dependencies represent a higher
risk, as these are not as easily controlled by the project manager.

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Example: Project dependency

The distribution of the sales catalogues is outsourced to an external provider. This creates an external dependency and a risk to
the project. If the external provider does not provide a quality service for distribution, as per arrangements, customers will not
receive the catalogue.
2.1.3 Constraints
Every project has constraints; they are the limitations within which the project has to operate. In project
management, we refer to the ‘triple constraint’ to scope as a product of time, cost and quality expectations of the
project. If there is a specific limitation on time; or the cost of the project; then the project scope will be limited. If
there are constraints on cost and time, then the scope is limited even further.
Cost
Time Quality
You must document all project constraints in the project charter and include strategies in your project management
plan to monitor and control your project scope.
Project constraints may include:
• human resources
• legislative requirements
• technical resources.
Example: Project constraints

The catalogue sales has a clear project constraint with the timing of the catalogues being distributed to customers. If the
organisation were to include a cost constraint, by reducing the funds available to cover the distribution service, then the project
scope would be further limited and the project risks increased.
When negotiating a change in project boundaries, use general negotiation rules. Consider the following information:
Take time to discover the necessary information. This can include talking to others face-to-face discussions and emails to
gather information and negotiate the results and impact on the project.
Negotiation is a learned skill, which improves with practice. The process of negotiation should always try to bring the
two parties to an agreement, somewhere in the middle.
There are many factors, which go into successful negotiation, most importantly, though is preparation. Before a
negotiation, familiarity and knowledge around the topic that is being negotiated, people involved in the negotiation
and the benefits that both parties are trying to obtain, should be developed. Other pieces include:

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• Goals – What do you want and need to get out of the negotiation? What does the other side want and
need? (relate to both content and relationship)
• Trades – What do you have that the other person wants? What are you comfortable giving away to get
what you want?
• Alternatives – If you cannot reach an agreement, what alternatives do you have? How good or bad are
those alternatives? How important is it that you reach an agreement?
• Relationships – What is your relationship with that person? What is the history of your relationship? Can
failure to reach an agreement damage your relationship with that person? Will there be any hidden issues,
which can affect the negotiation?
• Expected outcomes – What are you expecting to be the outcome from this negotiation? What outcomes
have you had with this person in the past? How will that affect this negotiation?
• Consequences – What are the consequences of winning? What are the consequences of losing? What are
the consequences for the other person? Does that matter to you?
• Power – Who holds the power in the relationship? Who controls resources? Who will lose the most if an
agreement isn’t reached?
• Possible solutions – Based upon all the above considerations, what possible compromises can you come up
with?
Why do you want to negotiate project boundaries? Here are some reasons.
• You may know there are areas of the project, which are not achievable and may compromise the results of
other parts of the project.
• Changes may need to be made in response to other impacts. Cost, time and quality are variable and depend
on many factors through the life of the project.
• Other stakeholders may not have a realistic impression on the constraints, assumptions and dependencies.
This will cause trouble with the outcomes and project boundaries.
When negotiating consider the factors provided above and be prepared. You may choose to email your
stakeholder/manager to negotiate possible changes.
Example I have been working through the figures for the budget and timeframes in the schedule. I am
concerned we will not be able to deliver on the objectives of the project within the timeframe.
Objective X will not be achieved if we continue with Y. I feel a compromise is Z.
I propose we change the timeframe to B to avoid issues with school holidays. I would be interested
to discuss this and/or hear your feedback on the matter.
Thank you for your consideration, can we arrange a time to meet to discuss?
2.2 Establish measurable project benefits, outcomes and outputs
Hint
This content may help you with Task two, question two of your assignment.
Identify what the project will deliver to the project stakeholders. To do this it is important to understand the
difference between objectives, outcomes and outputs.

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•This is what we are aiming to achieve.
Objective
•This is what we will actually deliver.

Output
•This is what the organisation will gain from the output. The outcome should benefit the organistion.
Outcome
Project objectives must align with the organisation’s strategic plans. Project objectives are agreed with the project
sponsor and outlined in the project plan.
The objectives will be broken down into major deliverables (these are your project outputs). To establish the major
deliverables the team will review the project charter, requirements matrix, and scope statement.
Measuring project performance is no different to measuring any other business objective. Each deliverable should
have a clear performance indicator that applies the SMART methodology. For more information on measuring
performance using key performance, indicators refer to appendix A which has information on measuring success in
business.
Example: Project measurement
Project: Run quarterly catalogue sales - Project team has been formed to manage the quarterly catalogue sales for all store
representation nationally.
Project objective Measure of success (Key Performance indicator)

Ensure all sales personnel have product Staff training provided prior to each quarterly sale and product knowledge
knowledge for all catalogue sale products. test evidencing employee knowledge competency at our above 90%.
Sales reports generated for each quarterly sale evidencing an average

Increase sales by 10% for each quarter
increase on sale income of 10% across all points of representation.
Product returns and faults maintained at less than 2% of sales. Competitor

Maintain a quality range of produces with
analysis reports evidencing product pricing meeting market trends with a
competitive pricing
variance of less than 5% per quarter.
In store point of sale software aligned to Sale prices generated at point of sale are 100% accurate in comparison
catalogue sale pricing with catalogue pricing.
Project completed within agreed budget and Each quarterly catalogue sale is completed within agreed budget and
timeframe project timelines are achieved.
2.2.1 Project scope management tools

There are many project scope management tools. Commonly used tools are described below:
Statement of Scope (SOS): The SOS usually opens with a problem statement. This statement captures a description
of the catalysts, which are related to the project’s rationale. The statement should reflect a shared project vision
that has been negotiated between the project manager, stakeholders and team members.

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Work Breakdown Structure (WBS): As the name implies this is a list of all the work to be completed to address items
in the SOS. Creating a WBS helps you to be both comprehensive and specific when managing a project. Follow these
steps to create a WBS:
• Determine the major deliverables or products to be produced.

• Divide each major deliverable into its component deliverables in the same manner.
• Divide each of these work pieces into its component parts.
You can continue to subdivide all the components until your reach a point at which you think the components you
defied as sufficiently details for planning and management purposed. The lowest level of components is known as
work packages.
Deliverables deployment: A deliverables deployment plan describes how the system will be implemented, including
software conversion and training. Preparation of the deployment plan starts early in the life cycle, with the
deployment strategy and the plan is expanded in subsequent stages.
Traceability matrix: A traceability matrix is a document, usually in the form of a table that correlates any two baseline
documents that require a many-to many relationship to determine the completeness of the relationship. It is often used
with high-level projects of extreme significance.
Common practice is to take the identifier for each of the items of one document and place them in the left column.
The identifier for the other document are placed across the top row. When an item in the left column is relation to
an item across the top, a mark is placed in the intersecting cell. The number of relationships are added up for each
row and each column. This value indicates the mapping of the two items. Zero values indicate that no relationship
exits. It must be determined if a relationship must be made. Large values imply that the relationship is too complex
and should be simplified. Sample traceability matrix:
Requirement Identifiers REQ1 REQ2 REQ3 REQ4 REQ5
1.1.1 X
1.1.2 X
1.1.3 X
2.3 Establish a shared understanding of desired project outcomes with

stakeholders
Hint
This content may help you with Task two, question four of your assignment.
Consult with the project stakeholders to develop a common perception of the project's objectives and outcomes.
Stakeholders can be defined as individuals or groups of people with an interest or concern for the project. Essentially
stakeholders are anyone who is affected or can be affected by the project. The interest and impact the project has on
each stakeholder will vary. It is important to identify who these stakeholders are and to communicate with them in an
appropriate manner. This is called ‘stakeholder engagement.’ Effective communication with key stakeholders is vital to
the project’s success. It is important to:
• identify all key stakeholders

• gain an understanding of their interests and attitudes towards the project
• define how you will communicate with them i.e. what method you will use e.g. meeting, email, telephone

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• plan when you are going to communicate with them
• engage with stakeholders and measure the effectiveness of these engagements
Stakeholders may include:
• clients or customers (internal – in the organisation/external – outside the organisation)

• funding bodies
• management
• employees and relevant key personnel (internal and external)
• project sponsor and project team members
The best way to ensure key stakeholders are ‘kept informed’ about the project is to develop a communication plan
to be inserted into the Project Management Plan.
Example: Communication Plan (Project: Catalogue Sales)
Stakeholder Communication description Frequency Format Owner
What type of communication

In what format? Report sent by
Name and reporting will this How often? Who sends?
email? Or presentation?
stakeholder received?
Project sponsor Project status report Weekly Report distributed by email Project manager
Report delivered the finance

Finance manager Project expenditure Weekly Project administrator
manager with relevant invoices.
Store managers Project update Fortnightly Video conference Project manager
Project team Review project progress Weekly Team meeting Project manager
Determining the governance model/structure:
When determining the required governance model or structure for your project answer the following questions:
• Who will take the final responsibility for the project?

• Who is accountable for the project outcome?
• Who has the required skills, knowledge and experience to make decision?
• Who do you need to involve in the decision making process?
• What are the limits of each decision maker’s authority and responsibility?
• What is the escalation process for decision-making?
The most effective way to depict the governance model/structure is to design a project organisation chart.
2.4 Document scope-management plan

Hint
This content may help you with Task two, question three of your assignment.
Scope management may include:
• determining a scope change has occurred or is about to occur

• identifying and reporting scope creep
• identifying factors influencing changes to scope
• implementing agreed scope changes

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• monitoring and reporting the effect of scope changes on other areas and on achievement of project
objectives
• refining scope progressively throughout the project life cycle
• seeking authorisation for changes to project scope.
A project scope management plan is part of your overall project management and like all plans, is used to define
what work is required and to ensure that the project includes only that work required to complete the project.
• A scope is a range of activities and a plan requiring you to adhere to your objectives.
• Scope management plans only detail those items used to manage project scope.
You can contribute to developing a project scope management plan to document how project scope will be defined,
verified, controlled and how the work breakdown structure will be created and defined.
2.4.1 Baseline
Baseline is the value or condition against which all future project measurements will be compared. The baseline is a
point of reference. In project management, there are three baselines- schedule baseline, cost baseline and scope
baseline. The combination of all three baselines is referred to as the performance measurement baseline.
A baseline is a fixed schedule, which represents the standard that is used to measure the performance of the
project. Every time a change to the scope of the project is approved, the schedule should be adjusted and a new
revision of baseline should be used.
In project management, establishing the baseline is the formal end of project planning and the beginning of project
execution and control.
Controlling the baseline is critical to project success. Changes impact the project and if you don’t know where you
started, it can be difficult to establish the impact the change has had on your schedule.
Scope baseline:
Scope baseline is the approved project scope and used during scope change management to determine and prevent
scope creep. Scope baseline primarily comprises of the following:
• Project scope statement.

• Work Breakdown Structure (WBS).
• WBS dictionary.
Project scope statement: describes in detail the project’s deliverables and the work required to create those
deliverables. Provides common understanding of the project scope among all stakeholders and describe project’s
major objective.
Work Breakdown Structure (WBS): a work breakdown structure breaks the project deliverables into smaller, more
manageable components. The WBS is a deliverable-oriented hierarchical breakdown of the work to be executed by the
project team to accomplish the project objectives and create the required deliverables.
It is a communication tool and it describes what needs to be done and what skills are required. It provides the basis
for estimating the project and helps to organise the work. Its purpose is to include the total project scope of all the
work that must be done to complete the project.
Benefits of WBS
• Prevents work slipping through the cracks.

• Provides the team with an understanding of where their pieces fit into the overall project management
process.

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• Gives the team an indication of the impact of their work on the project as a whole.
• Facilitates communication among team member and other stakeholders.
• Provides basis and proof for all kind of estimates.
• Help in team building.
Your WBS can be a graphical picture of hierarchy of the project components. If it is not in the WBS than it is not part
of the project. A WBS should exist for all projects.
WBS dictionary: defines each item in the WBS.
Practices and techniques for the creation of a WBS:

The most common, useful practices and techniques for the creation of the WBS:
• WBS standards and templates.

• Product knowledge management (past examples).
• Decomposition.
• Brainstorming.
WBS standards and templates: If you organisation or industry has standards for the development of the WBS than it
is very important that you follow these. Many organisations will have templates for WBS.
Product knowledge management: the use of data and deliverables from past projects as an ‘analogous’ technique for the
creation of WBS. Using a WBS from a past and similar project is a good project management practice, especially in the area
of knowledge management. Project knowledge management is a collection of techniques and processes that ensure
knowledge from past projects is captured, shared and reused.
Decomposition: There are two major decomposition approaches: top-down and bottom-up. Most project managers
will have a natural preference for one over the other, but both are easily applied to the creation of the WBS.
Top-down: involves starting with the project phases and disciplines and then defining the major deliverables, sub
deliverables, activities and tasks.
Bottom-up: involves starting at the activity or task level and then working backwards to associate these with a
deliverable.
Brain storming: There are many brain storming techniques available and many of these can also be considered
facilitation and creativity techniques. You could try structured brain storming; facilitation; mind mapping or six hats
thinking. You may like to further research these techniques on the internet, see Mind Tools.

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2.4.2 Basic project management lifecycle
The basic project management lifecycle has four phases:
Initiation: Refers to establishing your goal. Make sure your goal is clearly worded and concrete - this will serve as the
backbone of your whole project. Once the goal is clear it is time to define the scope of the project.
Planning: This is an important phases for the project manager. The plans will be used throughout the project. The planning
phase includes estimating resources and time; identifying the order of tasks; execution of scheduling; risk analysis and
establishing communication systems.
Execution and control: Once the plan is completed - execute and control the project. Inevitably you will have to
modify your plan along the way and the project manager should have effective controls to make sure the whole
operation is monitored and management effectively.
Close: After a project has been completed, a summary should be written of every step of the project including
changes implemented; alterations to budgets; and lessons learnt from the project. This is important information for
the future.
Project management process groups

The required knowledge and processes for project management sit within process groups. These process groups are
implemented throughout various stages of the project management lifecycle. See the following table:

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Initiation Planning Execution and control Close
This group includes: This group includes: This group includes: This group
• develop project • development of project • direct and manage project execution includes:
charter management plan • perform quality assurance • close project
• develop project • scope planning and management • acquire project team • close supplier
scope • scope definition contracts
• information distribution
statement. • validate scope
• create WBS • control supplier engagement
• develop schedule • monitor and control project work
• cost estimation • scope management
• quality planning • scope control
• human resource planning • cost control
• communication planning • quality control
• risk management plan
• monitor and control of risk.
• procurement planning.
Provides guidance on how a project scope will be defined, documented, verified, managed and controlled by a
project management team
2.4.3 Developing your scope management plan

• Develop (if not already done) a detailed project scope statement.
• Develop (if not already done) a WBS, which ‘breaks-down’ the major project deliverables and project work
into smaller measurable work packages. By using a WBS format, you can easily subdivide major project
deliverables and concentrate on what is and is not included in the project.
Your scope management plan details how you will control your scope over the project lifecycle. This includes
information on the scope change process and the use of change logs and change requests.
Scope management plans may include the following project information.
• Project summary.
• Project objectives and milestones.
• Project scope.
• Project success criteria.
• Dependencies.
• Assumptions.
• Constraints.
• Scope change management.
• Process for acceptance and sign off for completed deliverables.
An example scope management plan is provided in Appendix C.

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3 Manage project scope-control process
Scope management may include:
• determining that a scope change has occurred or is about to occur

• identifying and reporting scope creep
• identifying factors influencing changes to scope
• implementing agreed scope changes
• monitoring and reporting the effect of scope changes on other areas and on achievement of project
objectives
• refining scope progressively throughout the project life cycle
• seeking authorisation for changes to project scope.
3.1 Implement agreed scope management procedures and processes

Hint
This content may help you with Task three, question one of your assignment.
When planning your project implementation review your organisational policies and procedures and ensure your
project process align with these. You may refer to WHS requirements; internal resource and procurement policies;
training and development policies.
Implementing agreed scope-management procedures
• Procedures describe how the scope will be managed; these may include communication strategies, training,
and performance monitoring.
• In most cases, these scope procedures need only to be created once and can be re-used for subsequent
projects.
These procedures should be customised according to the project scope you addressed previously. For small projects,
it might be wise to simplify the scope procedures.
Some processes can be pitched at a higher level than the basic procedures, so for smaller projects you can assist
interpretation by specifying areas like:
• clearly defining roles

• who are the participants
• detailing exact dates and timeframes.
Example You might state that the project manager will review any changes (ref: the change log) on a weekly
or other basis.
Sample template to detail implementation:
In scope Out of scope (Exclusions) Assumptions Constraints
You are not responsible for these Knowledge about the project that is
Known restrictions. These
items. taken as being true or correct for the
These are items you could include any restrictions
are definitely going to The assumption is someone else purposes of project planning.
in start/finish date, time,
will do them. Exclusions don’t Assumptions are circumstances and
deliver/manage. deliverable or milestone
form part of your project, but events that need to occur for the
dates, budget limitations,
influence whether or not you can project to be successful, but are

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In scope Out of scope (Exclusions) Assumptions Constraints
successfully achieve your outside the total control of the project resourcing limits, vendor
objective. team. restraints, etc.
Scope management
Determining that a scope change has occurred or is about to occur
Identifying and reporting scope creep
Identifying factors influencing changes to scope
Implementing agreed scope changes
Monitoring and reporting the effect of scope changes on other areas and on achievement of project objectives
Refining scope progressively throughout the project life cycle
Seeking authorisation for changes to project scope
Target due
Issue and description Project impact Issue status Issue resolution
date
[Description of Risk] [High/Med/Low] date [Open/Closed] [Description]

[Item]
[Item]
[Description of Risk] [High/Med/Low] date [Open/Closed] [Description]

[Item]
[Item]
Determining that a scope change has occurred or is about to occur
Project Manager to consider or endorse.

Other questions to consider for review with key project stakeholders are:
• Will the project be completed on time and on budget?

• Will the project deliverables be completed within acceptable quality levels?
• Are scope change requests being managed successfully?
• Are project issues and risks being addressed successfully and mitigated?
• Are all customer concerns being addressed successfully?
Identifying and reporting scope creep

Beware of ‘scope creep’. Where ‘scope creep’ occurs, ensure it is reported and authorised by those in your
organisation with appropriate delegations.
Scope creep is a commonly used term to describe the risk of stakeholders attempting to add extras, such as
activities/tasks or outcomes, during the course of the project.
If this occurs, the scoping of the project needs to be revisited in order to clearly show your organisation the impact
these 'extras' will have on the resources, including time frames, cost and quality of the project.
Report on scope creep:

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• determines if a scope change has happened
• determine that changes as a result are agreed upon
• manage the scope changes when, and if, they happen.
Avoiding scope creep

As the pace of change increases and business processes embrace flexibility and ability to change, the customer and
project team are often on a learning curve. They will only know what the scope should be as they progress through
project stages.
Identifying factors influencing changes to scope
• Scope change is inevitable and natural.

• Prepare for the unexpected.
• Consider setting up a project reporting ‘online’ hotline that team members and stakeholders can access.
Likelihood
Likelihood represents the chance something will happen. This can be represented qualitatively as a word,
quantitatively as a probability or frequency, or as both.
Consequence
Consequence represents the impact a change to scope may have and is measured in degrees of severity, should this
occur. Similar to assessing RISK.
A consequence may be financial loss or gain, legal problems or opportunities, delays in a project, personal injury or
damage.
Examples of factors influencing changes to scope
• Changing roles and responsibilities within a project team.

• Negotiating an extension of a deadline.
• Seeking further resources to meet a deadline.
• Redefining completion or quantities or quality of outcomes.
Outsourcing some aspects of the project.

Implementing agreed scope changes
• Every attempt should be made to obtain the full support of the project’s leadership in implementing any
recommendations to the organisation as a result of scope changes, as quickly as possible.
A request for change passes through several possible stakeholders during its implementation cycle.
• Approved.
• Cancelled or someone else decided to cancel an agreed scope change.
• Change made and completed the implementation as requested.
• Change closed and has been verified (if required).
• Evaluation such as an impact analysis of the scope change request.
• Re-submission as someone has decided to re-implement the requested change.
Verification that the modifications were made correctly.

Monitoring and reporting the effect of scope changes on other areas and on achievement of project objectives
• Did the project scope changes perform desired tasks detailed in the revised work plan?

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• Were there issues or things that would need future refinement?
Advantages and disadvantages
• What worked well and why?

• What did not work well and why not?
Achievement of project objectives
• Are the changes leading to outputs?

• Do changes impact on the budget expenditure?
• Do the changes impact on stakeholder participation?
Are there further areas to be adjusted to ensure tasks and activities are implemented?
Refining scope progressively throughout the project life cycle
Addressing the REFINEMENT of scope progressively may mean re-visiting the entire scope in detail over a pre-
determine timeframe.
It may be successfully addressed by refining selected areas that you feel are critical.
• Benefits – some may not have been fully developed and need refinement against targets.
• Requirement – some may have been set too high or have been left too open.
• Stakeholders – may be in regular need of refinement when confronted with scope changes influenced by
costs associated with revised solutions.
Solutions – can have many refinement needs when there are several options available. Some critical decisions will
not be completed until due diligence of the suggested scope change options have been completed or further
defined.
Funding – from sponsors or financial backers may not be obtained until any scope change impact on the business
case is developed further or refined. Further refinement may require understanding of the benefits, requirements,
and solution options first.
Seeking authorisation for changes to project scope
Develop and confirm your procedures for authorisation for any changes to project scope:
• Besides the details you would logically provide on the changes, include future impact and commitment of
resources.
• The authority protocols would have been decided at the project plan stage.
• Format and submission structure should also be in place.
Further critical review items may need refinement or more detail.
3.2 Manage impact of scope changes within established time, cost and quality
constraints according to change-control procedures
Hint
This content may help you with Task three, question two of your assignment.
Imagine all the elements of your project are placed inside a box, the ‘box’ becomes your project scope; as it defines
the work of your project.

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If the task/element is part of your agreed project, then it is inside your box (in-scope); if it is not part of your agreed
project, it is outside the box (out-of-scope).
Of course, things happen during the duration of a project, you may be asked to change your project scope. That is to
‘put something else inside your box’. When managing your project scope; and possible impacts from scope changes,
you need to work within project constraints in accordance with change-control procedures. Your change control
procedures will cover the impact of changes on time, cost and quality.
Change-control processes may include:
• formal agreements, for example contracts, subcontracts and memoranda of understanding

• major elements of the project likely to change, for example design, engineering and finance
• project documentation, including plans, schedules, statements, directives, guidelines and instructions.
Changing the scope may require you to adjust the number or duration of the tasks, break up large tasks into smaller
ones, and adjust the task constraints to meet your schedule.
Where there are changes the impact can result in delays in time, cost and quality. Manage changes properly and
according to the procedures for the project.
The scope management plan may need to be updated and other documentation amended as required, i.e.
budget/schedule. When making changes, as well as adhering to the procedures required consider the following
steps.
• Review goals of the project. What were you trying to achieve with benefits, outcomes and outputs?
• Consider trades. What do the stakeholders want and how will changes affect this?
• Explore alternatives; weigh up the other options in terms of cost, time, quality and contingencies.
• Build relationships. Communication becomes more important when you are negotiation or managing a
change to the project.
• Review expected outcomes.
• Consider consequences.
• Identify power/influence. Stakeholders who want other outcomes may need to be
communicated/negotiated with to arrive at an alternative, which suits the project.
• Prepare possible solutions. These will be managed through the change process and with all relevant
stakeholders.
Case study
The catalogue sale has been going well, however the contractor who is supplying the printing has had a fire in their
premises. This has destroyed half the printing. You take the call in the morning as the Project manager and
immediately know this will have a massive impact on the project as it stands currently.
How will it impact on, or affect, the project?
The three major impacts are time, cost and quality of the outcomes of the project. Consider the following:
• If you wait for more printing, the project will run behind schedule.
• If you get another printer, they may charge more which will affect the budget.
• If you go without the printing, the quality standards for the sale will be impacted.
So what can you do to manage the impact of these scope changes?

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Case study
Adhere to the change control procedures so all changes are managed according to the procedures established in the
authorisation procedures for the project. They are as follows.
Authorisation for changes
Step Action
1. PM to document changes required in a project change request.
2. Changes to be approved by two members of Executive Team.
3. This authority cannot be delegated.
Authorisation for expenditure
Step Action
1. PM to document project expenditure in the project budget
2. Director of finance to authorise project expenditure
There are many steps to consider. Contact your team to arrange quotes and weigh up alternatives. Gain approval for
the process. Record changes to budget and gain approval for budget changes. One way to be sure you get it all done is
to create an action plan then allocate responsibilities to each task. For now start with the tasks and who/or what
processes and procedures.
Steps to be taken Personnel and procedures to be involved
1 Contact Sponsor immediately to assess options. The PM must be consulted and notify relevant personnel as per
the change control processes
2 Get quotes and weigh up alternatives. Complete a change control request
3 Gain approval for the process Get two executive to approve the change.
4 Record changes to budget PM to document project expenditure in the project budget
5 Gain approval for budget changes Director of finance to authorise project expenditure
6 Consult with stakeholders As per the communication plan
7 Create an audit trail Create a change control log to record all change requests
3.2.1 Time
• Task durations, dependencies, critical path schedules.
Manage the impact of scope changes within established time constraints by figuring out what the tasks are, how
long they will take, what resources they require, and in what order they should be done.
• Try not to underestimate the impact of scope changes when considering the length of time or the
scheduling which can be exceeded if you make a mistake in the time sequencing of the tasks.
• If you omit a task, for example, the project won’t be completed according to the expected time frame.
Example for managing the impact of scope changes involving time.

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• Build the project schedule by listing, in order, all the tasks to be completed.
• Assign a duration to each task by using a software program i.e. Gantt chart or similar.
• Determine what tasks must be completed before another (successor) can commence.
• It may not matter in which order you complete the tasks but it could be essential that you complete a task
before starting the next
A common difficulty experienced in managing the impact of scope changes involving time - there is seldom enough
of it to complete tasks sequentially.
• In many instances tasks may need to be overlapped - several can happen at the same time.
• Project management software can simplify these types of task by handling the scheduling logic for you.
• When all tasks have been listed and sequenced some tasks still have flexibility in stated start and finish
dates.
• If there is no flexibility this is called the critical path.
• All tasks on the ‘critical path’ must be completed on time if the project is to be completed on time.
• Managing the impact of scope changes is to manage the critical path.
NOTE: Items can be added to or removed from the critical path as circumstances change during the timeline of the
project.
Manage the impact of scope changes - quality constraints

Quality in project management can be defined as delivering the desired outcomes according to the plan, and
meeting the expectations of all stakeholders.
Quality in a literal sense can also mean compliance with quality standards either regulated by state laws, local
government laws or imposed by industry or professional standards. Quality itself is not necessarily a constraint but
could be the result of achieving or non-compliance of the three main areas of:
Scope Schedule Budget
If these are met according to the agreed plan, it is likely the overall project has met the requirements of quality.
3.2.2 Constraints
• Quality constraints and the successful management of them (as they appear) will depend on the skills and
knowledge of the project manager and team.
• The project manager needs to take into account all constraints that occur and to establish a set of rules and
processes to keep the project in balance.
Managing constraints will usually mean making compromises!
• Projects are often implemented with uncertainties and, as you have seen elsewhere, can be exposed to
many risks.
• These uncertainties need management in the form of revisions to the original plans along with negotiation
with selected stakeholders.
Examples of constraint compromise
• A project schedule alters there may be a need to increase the budget.

• Budget constraints may require more resources in less time.

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• Project scope might need to be altered because resources available will not be sufficient.
• Compromise may be needed for staff originally planned.
• Project scope will be altered because of fewer staff resulting in not being able to meet planned work
timeframes or schedules.
When the project adds more work than originally budgeted
• Are there options for application to additional funding?

• Will this result end up with a budget shortfall with an impact on funding bodies, banks etc.?
As mentioned earlier, quality of the project is a result of what you do with the schedule, budget, and scope.
Example Finding additional time in the critical path schedule, reduce activities to meet the budget. Both impact
on quality, be it increased due to more time, or decreased due to reduced budget.
3.2.3 What is the basic change control function?

• The process, usually in accordance with a set procedure, for handling proposed alterations to the project
scope, which have previously been assumed as fixed.
• Change control usually becomes a reality only if the item/s requiring change have already been set in place
or approved.
• The aim of a change control function is to then ensure such changes are re-approved, accepted and in line
with the project objectives.
• This is why there is usually a set procedure to adhere to.
Examples of elements in a set change control procedure
• All stakeholders should have an opportunity to participate in the change control sequence of any changes,
or at a minimum those stakeholders primarily involved.
• Full disclosure of any changes that occur.
• Provide an audit trail which connects a change to the reason or strategy employed to cause or make the
changes (change request log).
• Record the new approvals and names of those authorised to make those changes.
3.3 Identify/document scope-management issues and recommend

improvements
Hint
This content may help you with Task three, question three of your assignment.
As a project manager you need to be alert to any issues that will have a negative impact on your project scope. Some
factors that can have a negative impact on the project scope include:
• Product or service deficiencies

• Automatically approving change requests (this can result in things being added to your scope and causing
scope overload).
• Lack of documentation.
• Lack of communication.
• Unwanted communication.
• Poor scope control processes.

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What scope management issues have you identified?
What improvements have you recommend for future projects?
It is essential to sufficiently train project managers and teams in project scope management.
Do not make the mistake of assuming a technical expert in a specific area can easily become a scope definition guru.
Scope management involves a high level and a detailed understanding of business requirements.
Possible ‘holistic ‘ examples What improvements?
Don’t assume a technical expert, e.g. architect, engineer, designer will

Technical experts versus scope experts
automatically qualify to collect, build, and analyse the project scope.
Skills assessments not conducted before a role is Training! Provide project managers with the skills to build scope
appointed definitions etc.
Insufficient interaction between the client and Communicate more efficiently and frequently with key clients throughout
certain project team members the planning and execution phases of your project.
Training and education provided by the project team, where feasible!

Lack of stakeholder education on project
Address current technological usage and skill levels. There may be
management and possibly technical solutions
limitations to this.
Poor project decisions made by project managers Better communication, set procedures, reviews and training
Product or service issues
These may only come to light when a project product or service is delivered to the client and they claim
dissatisfaction or totally reject your decisions or outcomes.
Suggested answer
Likely to be insufficient interaction between the client and the project team members who are responsible for the
scope definition.
What can be done for future projects?
• Ensure the involvement of clients and customers at all stages of a project as they are stakeholders.
• Remember to involve them in both the initiation and planning phases.
• Involve them in order to validate scope and the detailed design documentation.
External pressures on projects or the scope creation
This usually occurs if project managers are pressured externally either to commence the project execution phase
when the scope definition has not been fully assessed or it is perceived that waiting any longer is a waste of valuable
project resources!
The danger is that in many cases critical estimates are completely ignored when rushed into commencing the
project.

35
Commencing the project without sufficient scope assessments or ‘scope development as we go’ invariably will cause
omissions that reappear later when it costs a lot more to fix a problem than if the issue had been addressed at the
scope definition stage.
3.3.1 Scope overload

Cause: The project team agrees to deliver too much scope for a given budget or timeline.
Effect: The stakeholders realise the project cannot be completed on time or within the specified budget.
Usually when this scenario occurs and is not corrected, the cost in making such a mistake grows exponentially.
Attempts to rectify scope overload can result in a change in project constraints, such as, reduced budgets, altered
timelines, while management attempts to maintain the same scope!
What can be done for future projects in this example?
• Do not expand your scope in the belief it will impress your project efforts.
• Conversely, if you do discover scope overload, do not slash the scope in the belief, less efforts will speed up
the project result. Shortcuts are usually never successful.
• Avoid the temptation to firm-up commitments to project timelines or fixed budgets before the full scoping
is completed.
• As with previous suggested solutions for future projects, stakeholder education and training about the risks
of scope overload or scope slashing is vital for both the planning and execution phases. It is highly
recommended.
Lack of communication
Cause: Clients who do not have a very clear idea of what they really need.
Effect: Important project requirements are missed when the project has already commenced.
• Lack of communication between different stakeholders or project team members can lead to the omission
of important details and may have been caused by poorly trained project managers or team members.
• Another communication issue with scope definition can arise if something is ‘imposed’ by a senior client
authority without full regard or communication to the needs of the project or its end users.
Remember…do not sacrifice communication channels by preventing operational project managers communicating
directly with the client.
• Lack of communication can even extend to scope items that are not correctly prioritised, or even equally
prioritised as ‘high’ for the sake of perceived attention.
• Incorrect priority will cause the inability to decide on ‘flexibility’ when eventually someone will need to
streamline the estimates.
Unwanted communication
• Communication that is not asked for but heeded by individual team members may have a negative impact
on other project features.
• Random or unqualified communications if not properly controlled might impact on the final outcome or
alter project scope if not addressed.
• Documentation should halt these forms of communication.
• New risks can surface because of ad hoc communications to the project scope.
• Team members can be distracted from their assigned duties or, worse, impact on the overall project
schedule.

36
For future projects, consider:
• training of project managers in scope communication techniques

• following set procedures
• document inspections
• all scope items must be prioritised and assigned (as simply as: ‘must have’, ‘nice to have’, ‘should have’ etc.)
so there is no confusion.
In rare instances, there may be no documented scope or poor documentation!
• Undocumented scope may occur between competing groups of stakeholders who cannot arrive at a
consensus of what the final result should look like.
• A decision is often then made to commence a project based on what may be documented but not fully and
hoping any future difference can be reconciled successfully!
• Sometimes the eagerness of stakeholders to begin a project or even a phase of a project with an
undocumented scope can force the project manager, voluntarily or unwillingly, to action that request.
A poorly defined, but documented, scope can be as dangerous as not having one at all.
• A vaguely written scope or one written with ambiguity and left uncorrected can lead to other serious issues
including project failure.
• Consulting experts might decide to forego written or sufficiently documented information with
stakeholders regarding their stated requirements.
• Poor quality scope documentation can also lead to the need to repeat the scope definition process wasting
time and energy.
Suggestions for future projects:
• Demand documentation!
• Insist on following set procedures or templates.
• Undertake set review of documented processes including peer reviews.
• Expert reviews including consultant and project managers.
• Walkthrough the documentation with clients.
These processes for future projects should enable the project team to remove any discrepancies from the scope
description and be confident documentation will exist!
The most important single ingredient in preventing scope issues occurring is training.
3.3.2 Principles of negotiation

Negotiation is a skill that improves with practice. The process of negotiation should always try to bring the two
parties to an agreement, somewhere in the middle.
There are a number of factors that go into successful negotiation, most importantly though is preparation. Before a
negotiation, familiarity and knowledge around the topic that is being negotiated, people involved in the negotiation
and the benefits that both parties are trying to obtain, should be developed. Consider:
• Goals – What do you want and need to get out of the negotiation? What does the other side want and
need? (Relate to both content and relationship).
• Trades – What do you have the other person wants? What are you comfortable giving away to get what you
want?

37
• Alternatives – If you can’t reach an agreement, what alternatives are there? How good or bad are those
alternatives? How important is it to reach an agreement?
• Relationships – What is your relationship with that person? What is the history of your relationship? Can
failure to reach an agreement damage your relationship with that person? Will there be any hidden issues
which can affect the negotiation?
• Expected outcomes – What are you expecting to be the outcome from this negotiation? What outcomes
have you had with this person in the past? How will this affect the negotiation?
• Consequences – What are the consequences of winning? What are the consequences of losing? What are
the consequences for the other person? Does that matter to you?
• Power – Who holds the power in the relationship? Who controls resources? Who will lose the most if an
agreement isn’t reached?
• Possible solutions – Based upon all of the above considerations, what possible compromises can you come
up with?
Preparation Information sharing Bargaining Closing and

•Research both •Ask questions. •Most significant. committment
your subject and •Clarify. •All decisions are •Final adjustments
the other party or made and made to
parties. compromise is arrangements.
common. •Trust from each
party is important.
The actual negotiation process depends a lot on both personalities and personal communication styles. There are a
number of negotiation skills that can be used, for the purpose of moving the negotiations in a desirable direction,
see the table below for skills.
Assertiveness Bargaining Collaboration
Confidence building Conflict resolution Empathising
Offers and counter offers Solution designing Stress management
Employing active listening during negotiations is an excellent strategy. It not only allows for needs to be heard, ideas
to be explored, possible options for agreement to be identified, but leads to achieving a genuine and workable
agreement. Active listening helps to build a foundation for successful, trusting and ongoing negotiation.
Remember when negotiating to remain visibly relaxed and in control of emotions and thoughts. Don’t become
reactionary in the negotiations, take time to develop well-reasoned responses to statements. The key to effective
negotiation is knowing and understanding objectives and outcomes.

38
Glossary
Term Description
A business case is a written document which outlines a proposal for a project or investment of
Business case money. The document includes detail of costs and benefits. It projects required funding and seeks
to obtain approval for the proposed case.
This schedule identifies the tasks that directly impact the project end date. If these critical tasks are
Critical path schedule
delayed, the end date is extended.
In scope Activities, tasks, outcomes or deliverables that must be included in the project.
Out of scope Activities, tasks, outcomes and deliverables that are NOT to be included in the project.
A project is an exclusive undertaking of activities, which are temporary in nature and are conducted
Project
specifically to achieve a planned outcome.
Assumptions are circumstances and events that need to occur for the project to be successful, but
Project assumptions are outside the control of the project team. An assumption that they will occur is made and the
plan based on this assumption.
Project constraints Project constraints are anything that restricts or dictates the actions of the project team.
Describe a tangible or intangible object produced as a result of the project. It is a project outcome
Project deliverables
or output.
Governance refers to the process of decision-making and authorisation. In the context of project
Project Governance management, governance will dictate who is authorised to make a decision and provide
authorisation.
There are many variations of project implementation methodologies. This is the way the project is
put into operation. Research the different implementation strategies in project management
resource books or on the internet. Try searching some of these techniques:
• Adaptive project framework

• Agile software development
• Crystal methods
• Dynamic systems development model (DSDM)
• Extreme programming (XP)
Project • Feature driven development (FDD)
implementation
• Information technology infrastructure library (ITIL)
methodologies
• Joint application development (JAD)
• Lean development (LD)
• Prince2
• Rapid application development (RAD)
• Rational unified process (RUP)
• Scrum
• Spiral
• Systems development life cycle (SDLC)

39
Term Description
• Waterfall (traditional)
The Project Manager’s role is to initiate, plan, execute, control and close the project. The Project
Project Manager
Manager is focused on the day-to-day operation of the project and the project team
Project management is the use of processes, methods, tools, resources, knowledge, skills and
Project management
experience to achieve the planned project objectives.
Milestones are important achievements in a project. They are a way of knowing how your project is
Project milestones advancing. Milestones allow project managers to accurately determine whether or not the project
is on schedule.
Establishing the project scope is a critical step in project management, as it outlines the specific
Project scope
project goals, deliverables, tasks, costs and deadlines.
The Project Sponsor is the person who takes ownership for the project on behalf of the
organisation. This is most likely to be a senior executive/manager in the organisation, who has
Project Sponsor decision making and financial delegation authority. The Project Sponsor is responsible for
approving the business case for the project. They also have the power to cancel a project if it is
deemed to be unfeasible or unattainable.
This document is created by the project sponsor. It includes details of the business needs, product
Project statement of
or service requirements, as well as the organisation’s strategic vision, goals and objectives. All
work (SOW)
projects should be aligned with their organisation’s strategic plan.
Refers to an individual, group or organisation that may be affected or have influence on the project
Stakeholders
or activity.
Triple constraint Refers to the three most fundamental constraints: time, resources and quality.

40
Appendix A – Measuring success in business
Several terms refer to desired outcomes and measuring performance and success. Some of these include strategic
plans, operational plans, business objectives, goals, tasks, actions, activities, key result areas, key performance
indicators (KPIs) and several others. Understanding how these terms differ and relate to each other can be
confusing.
The reality is, many of the above terms can be used interchangeably (they refer to the same thing!) Depending on
where you work or what you read, use these terms are used in a variety of different ways. This section aims to clarify
what these terms mean, how they are used and how they interrelate.
Goal, Objective, Aim, Target (GOAT)
These terms are interchangeable and generally refer to a desired outcome for a business/organisation or individual.
A GOAT can be set at a strategic level or for individual, personal or work desired outcomes.
GOATs can be broken down into smaller steps (see TAA) to make them more manageable.
Using GOATs effectively

WOOP! (Wish, Outcome, Obstacle, Plan) is a proven way of achieving desired outcomes. It is a tool that helps us to
develop a plan to and identify and overcome obstacles that stand in the way of achieving the outcome.
Wish Outcome Obstacle Plan
Gabriele Oettingen http://www.woopmylife.org/ suggests identifying obstacles that may make achieving your wish
difficult, while focusing and staying motivated by the outcomes you gain once your wish is achieved. Use the
following four steps as a tool to help you achieve your desired outcome (GOAT).
In business, the first GOATs are set at the strategic level.

To demonstrate the concept of WOOP use a wish common to students everywhere!
Define your wish – what is your desired outcome? When would you like to have achieved this by? Your wish
Wish
should be challenging but achievable.
Example You want to complete your latest assignment by next Wednesday evening.
Define the best part of achieving your wish. What is the best outcome you associate with achieving your wish?
Outcome
What is the most important thing to you?
Example You will be close to the end of your study.
This is a critical piece of this process. Obstacles exist and need to be identified from the outset. What are the
Obstacles
obstacles that stop you from achieving your desired outcomes? Be realistic!
Example When at home you are tempted to watch television instead of studying!
Visualise and plan how you will overcome the obstacles that in reality stand in your way to achieving your
Plan
GOATs!

41
What can I do to achieve my wish? We know the problem involves too much television watching so we need
to plan to address this obstacle. Plan to limit television watched or tell yourself you can watch it after you
have worked on your assignment for two hours.
Example The obstacle is reality. Dealing with it is essential. Your plan will be geared towards achieving your desired
outcome.
According to WOOPyourlife.com we should now use ‘if’ and ‘then’.
So … if you know the television distracts you then I will stop watching it!
In summary ‘if’ insert obstacle, then ‘I will’ insert behaviour to overcome!

Important - Our example is personal and individual. In business the application can be used to assist in achieving
wish and outcome levels and identifying obstacles. In other words WISH would be – achieving strategic, operational,
team and individual GOATs.
There are many ways to use WOOP.

As the first GOATs are made at a strategic level and set the plans or direction for the whole organisation. Then
organisational GOATS inform the following direction:
Department KRA Teams TAA KPIs for individual actions
KRA! Key result areas represent critical result categories identified for departments within organisations. These
help managers and staff to understand what needs to be achieved and how performance will be reported on. What
is important within these business areas! Examples of KRAs can include:
Human Customer
Sales Productivity Income WHS
resources service
TAA! Tasks, actions and activities. These words are also interchangeable.
Remember we said GOATs can be broken down into smaller steps to make them more manageable? TAAs are the
pieces or smaller steps that contribute to achieving the desired outcomes (GOAT).
KPI: Key performance indicators are used to measure progress and performance towards achievement of GOATS.
KPIs can, and should, be established to measure all aspects of the organisation. They should be set and reviewed at
regular intervals. Management should monitor these measures to ensure individuals and teams are meeting
required performance standards. If not, corrective action should be taken.
KPIs are best written using the SMART method.
Specific Measureable Achievable Relevant Time bound
When the SMART method is used a measurement is created to monitor what will happen, how it will happen,
when it will happen, who has responsibility and how the outcome will be measured.

42
The purpose of a team is to achieve something concrete. A desired outcome.
At this stage it is necessary to consult with the whole team. We need to meet with the team and ensure there is a
clear understanding of the:
• organisational GOATs
• how operational GOATs relate to the operation of our team
• identify Key Result Areas (KRA) for our team
• generate ideas and ensure the whole team has a clear understanding of the teams purpose and how it fits
into the organisation
• once this has been established we would also define as a group the individual roles and responsibilities eg:
specific job descriptions.
A team without clear GOATs, good leadership, competencies, and a willingness to work together will find it difficult
to achieve its outcomes.
How does each team member know their responsibilities or what is expected of them? These should be defined via
a job description.

43
Case study
The Right Foot Shoe Company wants to increase market share, at a strategic level. At an organisational level there
needs to be an increase in the market share by 20% by the end of the next financial year and 15 more outlets and 5
commercial contracts.
At the team level a new product team has been put together to design a new shoe that looks like a young
corporate shoe but feels like a sports shoe.
Using WOOP to look at this situation, we could identify the new shoe as the wish. The best possible outcome will
be increased market share. Obstacles need to be identified; they exist so we need to be realistic about them.
Paul from production who is heading up the team has been working with his team on establishing their GOATs to
fit with those of the CEO and the organisation.
They have identified that the procurement expert is too far away. He is good at what he does but the team needs
to see him and the samples. After a brainstorming, session where Paul encourages the team to think creatively
about this problem (obstacle) they realise that the real problem is the lack of samples to use for prototypes.
What a relief, at least now the team can make a plan. They can arrange to ship samples to them in greater
quantities than originally thought and the procurement expert flown in just before the release of the first version
with any extra supplies required.
The strategic plan is to increase market share. The measure of this will obvious. How this happens will be up to
plans at the operational level.
The operational plan now focuses on how we will make this happen as an organisation. What needs to happen
next? Larger organisations will have an operational plan for each area for their business. Operational plans identify
the key result areas (KRA), these may include finance, WHS, Human Resources, and Sales.
Next, we look at the detailed actions that must take place for the KRAs.
See the diagram below depicting the planning process for The Right Shoe Company.

44
Strategic plan
(Increase market share)
Operational Plan
Marketing Department
Objective #1
Establish a Product
Innovation Team
KRA: Finance KRA: Human Resources KRA: WHS
TAA: Ensure there is TAA:Attract and attain an TAA:Ensure all new work
sufficient budget for the innovative team areas meet ergonomic
objective requirements
KPI: Prepare budget for KPI: Review new

new product innovation KPI:Recruit, select and workstation design plans
team with approval and induct team members by and equipment for the new
communicaton to be xx/xx/xx innovation team. Report to
completed xx/xx/xx CEO xx/xx/xx
Goal setting
Dr Edwin Locke completed pioneering research on goal setting and motivation in the late 1960s. He found clear
goals and feedback, motivated employees. Locke developed the SMART framework
In line with the process we have worked through above, we would recommend applying the concept of SMART to
the individual KPIs. Apply WOOP to the larger GOATs. WOOP constitutes a change in thinking from SMART. Both
have their applications.
Clear KPIs are measurable and unambiguous. When a KPI is specific, with a definite time set for completion, there is
less chance of misunderstandings occurring around what behaviours are rewarded. When teams know what is
expected, they are more likely to achieve a positive outcome. If it is vague or expressed in general terms, it has
limited motivational value and can be easily misinterpreted. It is also important to place a time limit or a deadline so
it does not become a never-ending project!
To make a KPI specific, measurable and time-bound clarify how success and performance will be measured.

45
Example ‘The team will take more initiative in the future.’
How will we know whether this KPI has been achieved? What initiatives should we be focusing on? How
much is more? The phrase ‘in the future’ is also vague and it is unclear when this should be achieved.
Re-writing this will make it more specific, measurable and time-bound.
‘Develop a feedback system for teams by the end of the month. Provide a response to team
suggestions within 48 hours.’
These are clear - specific, measurable and time-bound.

An important characteristic of KPIs is relevance. GOATS and KPIs must further the aims of the organisation or your
team goals in the most efficient or appropriate way.
GOATs or KPIs that serve no real purpose other than appeasing others should be avoided.
Strike an appropriate balance between challenging and achievable KPIs. Setting one you'll fail to achieve is de-
motivating. The need for success and achievement is strong and teams are best motivated by challenging, but
realistic measurements.
In order for a KPI to be achievable we need required resources to be available. Consider:
• The different human, financial, physical and business technology resources you and your team need to be
successful.
• What resources are presently available and unavailable?
• How can access be gained to presently unavailable resources in the future?
• Has sufficient time been allowed to complete the goal? If you do not allow sufficient time, you will not give
yourself the best chance of success.
• Do you have the support of your family (and/or people close to you) and mentor/ manager/ supervisor/
colleagues in achieving the goal? Behind each success is usually a strong support network. Make sure you
get people on board to not only provide encouragement, but to hold you accountable to your goals.
Research suggests people are more likely to achieve a goal if they have told someone about it.
By breaking a larger vision down into smaller components it becomes easier to see what needs to be accomplished
by whom and by when. This helps the team stay on track and focused on activities contributing to effectiveness.
Breaking a larger GOAT (goal, objective, aim or target), down into smaller components is important for tracking and
measuring progress.
Using this process, the team is able to collaboratively develop action plans which attribute timeframes, resources
and personnel to specific activities. Individuals should be empowered with the ability to determine their own
responsibilities. Emphasis should be placed on practical activities with measurable results and within realistic
timeframes. Each team member's contribution should also be valued and acknowledged.
Teams must be given responsibility for making improvements and innovation within their designated roles to
achieve the organisation’s GOATs. They require access to necessary resources, an agreed level of independence in
the management of their daily work within agreed boundaries and cooperative relationships (networks) with the
other teams of the organisation.
A solid performance plan is to identify how the team will measure its success. How will it know if it has achieved its
goal, and how will it know how well it has performed? The team should collectively agree on the KPI’s to be used.
Example By January the prototype will have 100% functionality and be capable of operating for a minimum
of 10 minutes.
KPIs are used to measure an organisations progress and performance towards achievement of goals and business
objectives. KPIs can, and should be, established to measure all aspects of the organisation.

46
Example Financial, service, employee behavioural management, employee performance management,
product development, productivity – specifically numbers of new customers, debtor reduction,
return on investment (ROI).
Remember to set and review KPIs at regular intervals to make sure these measures meet required performance
standards. If not, take action.
KPIs create a sense of urgency and challenge each member of the team to commit. If the required results,
measurement and evaluation methods, and review timetables are understood and agreed to by all team members,
it creates a compelling drive to make success happen.
Case study
The Right Foot Shoe Company could set the following KPIs for various team members and the organisation in relation
to this process.
S M A R T
Specific Measurable Attainable Relevant Time-Bound
The first designs

Provide accurate will be Hold a team
Draw up ten thumbnails to meeting for one Secure
new shoe costings and contracts from
specifications for make the process hour each week
designs by quicker and to to discuss two new clients
week 2 all designs by allow the team to by the end of
Week 4 progress and
discuss performance each month
preliminary ideas
When the SMART method is used an action plan is created to identify what will happen, how it will happen, when it
will happen, who has responsibility and how the outcome will be measured.

47
Example
You are running a restaurant in a busy part of town with many competitors. Your main clientele come to you for
short breakfast and lunch meetings and after work drinks. You decide to offer extra seating sessions as a way to
differentiate your business from your competitors.
Your strategic business GOAT: Increase revenue and keep expenses stable.
Your operational business GOAT: Increase sales during the early breakfast period through a targeted marketing
campaign.
Relevant TAAs:
Give out 10 vouchers a day over the next month for early bird discounts. The vouchers must be redeemed the day
after issue.
Create an advertisement for your promotion, decide who your target is, create a social media campaign and hand
out vouchers.
KPIs to measure the success of the promotion.

Issue 100% of vouchers, 85% to be redeemed within two weeks.
By the end of the month you will be able to measure the number of vouchers used and calculate the cost of the
promotion against the increase in sales. This will be your return on investment (ROI) the number of vouchers
redeemed, revenue generated less costs of the campaign equals a 5% increase!
After the first two weeks work with your team to review the results to make sure the KPI has been met, if not why
not?

48
Appendix B - Project authorisation procedure
Contents
Project Authorisation Procedure .................................................................................................................... 49
Project Intent ................................................................................................................................................. 49
Scope ............................................................................................................................................................. 49
Definitions ..................................................................................................................................................... 50
Authorisation of project scope statement/charter .......................................................................................... 50

Authorisation of project changes .................................................................................................................... 50
Authorisation of project deliverables .............................................................................................................. 50

Authorisation of project expenditure.............................................................................................................. 50
Related policy instruments ............................................................................................................................. 50
Administration ............................................................................................................................................... 51
Project intent
The project is to manage quarterly catalogue sales, which will run across every retail store in the national chain.
Scope
In scope:
• Planning of quarterly sales promotions

• Identification and negotiation of sales products
• Design and production of catalogue promotion materials
• Purchase of sales products
• Advertising of quarterly sales events
• Launch of sales event
Out of scope:
• Extension to product range

• Addition to preferred suppliers
• Individual store (state) product offers
Key stakeholders:
Project Sponsor Jim Black, CEO Retail Chain
Project team members Sam Povern, Bill Swin, Patrick Clord
Marketing manager Liz Nreern
Finance Manager Ross Livington

49
Project committee Sue Cloever, Tom Breen
Store managers 23 store managers nationally
Definitions
Project committee: those representatives who were formally elected to the marketing committee by vote on
12/1/20xx.
Preferred suppliers: those suppliers who have been approved and authorised as ‘Preferred Suppliers’ by the CEO.
Refer to supplier register dated 1/1/20xx.
Authorisation of project scope statement/charter
Step Action
1. Project sponsor to prepare project scope statement.
2. Project sponsor and Project Manager to develop project charter.
3. Project approval meeting held with project sponsor, project manager and project committee.
4. Project scope approval is be authorised by project sponsor and project committee.
Authorisation of project changes
Step Action
1. All changes to project scope or deliverables documented in a project change request.
Project changes assessed in accordance with the project change management process as outlined in the
2.
project management plan.
3. Authority to approve changes is held by the project sponsor only.
Authorisation of project deliverables
Step Action
Any change to project deliverables must be formally documented by the project manager and reviewed by
1.
the project committee.
2. Approval for changes, addition or amendment to project deliverables resides with the project sponsor only.
Authorisation of project expenditure
Step Action
1. All project expenditure formally documented and included in the project budget.
2. Project budget is to be authorised by the Finance Manager.
3. Authorisation to amend project budget held by the Finance Manager and Project Sponsor jointly.
Related policy instruments

50
National retail group procurement policy and procedure.
Administration
Approval details
Approval Authority: CEO
Approval date: 1/1/20xx
Version no: V1.0
Date for next review: 1/1/20x3
Revision history
[Use the table below to record information regarding the first implementation of this procedure]
Version Revision date Description of changes Author
1.0 1/1/20xx New policy P. Manager
Contact Person/Unit
Contact Person/Unit: P. manager. R and D, Retail chain.
Keywords: Authorisation – jointly (requires signatures by both parties)

51
References
Kloppenblorg, T. J. (2012,2009). Contemporary Project Management (Second ed.). Mason, OH 45040 USA: South
Western, Cengage Learning.
Linton, T. (2014). Project Management Essentials (ANZ ed.). Cengage Learning Australia.
Project Management Institute. (2013). A Guide to the Project Management Body of Knowledge (Fifth ed.). Project
Management Institute.

52

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Manage project scope

2 Define project scope ....................................................................................................................................... 17

2.2.1 Project scope management tools ...................................................................................................... 20

2.4.2 Basic project management lifecycle .................................................................................................. 25

3 Manage project scope-control process ............................................................................................................ 27

3.3.2 Principles of negotiation ................................................................................................................... 37

Manage project scope | January 2017 v2.0

Authorisation of project scope statement/charter ............................................................................................... 50

Related policy instruments .................................................................................................................................. 50

Manage project scope | January 2017 v2.0

• a comprehensive, detailed and integrated project management plan

Note for accessibility of this unit.

Manage project scope | January 2017 v2.0

1.1 Develop and confirm procedures for project authorisation with an

• Insufficient space for our growing organisation.

Example: Goal (Operational Plan)

Run quarterly catalogue sales

Financial Increase sales by 10% for each quarter.

Quality Maintain a quality range of produces with competitive pricing.

Technical In store point of sale software aligned to catalogue sale pricing.

Manage project scope | January 2017 v2.0

Project performance Project completed within agreed budget and timeframe.

• What is included in the scope of the project (in scope)?

Example: Scope Statement

Financial objective Increase sales by 10% for each quarter.

Quality objective Maintain a quality range of produces with competitive pricing.

Manage project scope | January 2017 v2.0

• review of the project scope statement and/or project charter

Reporting requirements Format, reporting frequency, format and to whom?

Project approvals will be required for:

• initial project scope statement (project charter)

Manage project scope | January 2017 v2.0

• assigning tasks and duties to your team

1.1.1 Project management plan

Manage project scope | January 2017 v2.0

2.2.2 Negotiate bulk purchase

Main tasks Sub tasks Work packages

In a tree structure like this:

Analyse Call for Negotiate Agree on Commence

Review sales Distribute

Request free Organise

Manage project scope | January 2017 v2.0

Manage project scope | January 2017 v2.0

Follow these steps to create your work breakdown structure:

Manage project scope | January 2017 v2.0

Business case Financial detail Approvals

Implement steps Monitor actions

Manage project scope | January 2017 v2.0

Keep all project stakeholders informed and up-

Delivering on time and on budget is the expectation.

Financial risk management

• Cost benefit analysis.

Manage project scope | January 2017 v2.0

• Decision making structure (who has authority to make a decision)

A governance model may include the following people:

Project governance model/structure:

1.3.1 Project roles and responsibilities

Manage project scope | January 2017 v2.0

• Provide input into the development of the project.

Steering • Provide advice on budget.

Members do not usually work on the project team themselves.

The responsibility assignment matrix (RAM)