The Start-Up phase

Week 2

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 Project Phases

Warning: Phase terminology will vary

Why?
Start-Up
Why?
Start-Up
Initiation
Initiation
Delivery
Delivery Closure
Closure

Why do we want to do this?

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 The Start-Up Phase

What happens during Start-Up?

• The Project Executive is appointed

• The Business Case is drafted

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 The Start-Up Phase

What is a Business Case?

• An outline of the reasons for the project
• Consideration of solution options
• Consideration of costs and benefits*
• Consideration of risks*

*These will be refined further in the next phase

(the Initiation Phase)
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 The Start-Up Phase

Business
The initial idea Case

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 The Start-Up Phase

An initial idea
• Can we let customers access our production
and delivery schedules directly?
Business rationale:
– Happier customers (more repeat business?)
– Reduced staff costs for us (£60,000 per year?)

• But how much will it cost?

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 The Start-Up Phase

Another initial idea

• Could we link our database to a supermarket customer-
loyalty database to find out who is buying our products
and when?
Business rationale:
– Reduced advertising spend (better-targeted ads)
– Increased sales

• But can we get agreement - and how long will the

project take?
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 The Start-Up Phase

Selecting the best ideas

Business
Idea 1 Case 1

Idea 2 Business
Case 2

Idea 3

e a 3
Id
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 The Start-Up Phase
The business analysis of the problem

Business Proceed?
Case Yes or No

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 The Start-Up Phase

What is in a Business Case?

1. Description of problem/opportunity
2. Options available and evaluated
3. Assumptions
4. Costs and cost/benefit analysis
5. Impacts and risks
6. Outline project plan
7. Conclusions and recommendations
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 The Start-Up Phase
2 Options available and evaluated

• What alternative options are there? (need to

think ‘outside of the box’)

• How workable are each of the options?

• Is ‘do nothing’ an option?

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 The Start-Up Phase
3 Assumptions

For each viable option (which may include ‘do

nothing’) what have we assumed, in terms of eg:

• Market conditions
• Competitor behaviour
• Ability of technology to deliver
• Willingness or ability of staff to cooperate

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 The Start-Up Phase

4 Costs and cost/benefit analysis

For each viable option (including ‘do nothing’?):

• What are the costs

• What are the benefits
- Tangible (e.g. reduced staff costs)
- Intangible (e.g. improved staff morale)
• What is the ‘payback’ period ( - next week)

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 The Start-Up Phase

5 Impacts and risks

For each viable option (including ‘do nothing’?)
what is:

• The impact on our customers and suppliers

• The impact on current operational practice

• The risk that the project may fail

• The risk that the project may not fully deliver
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 The Start-Up Phase

6 Outline project plan

The finished article =
Product A + B + C

For each viable option (apart from ‘do nothing’)

Product A Product B Product C
produce a draft project plan.
One part of Another part One part of Another part Another part One part of Another part
Product A of Product A Product B of Product B of Product B Product C of Product C

One part of a part Another part of a … and so on

of Product B part of Product B

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 The Start-Up Phase

7 Conclusions and recommendations

• Summarise the problem/opportunity
• Summarise the assumptions, costs, impacts
and risks of each viable option

• Make a recommendation as to which option

to proceed with - and why

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 The Start-Up Phase

What next?
• The Business Case is presented to the ‘project
executive’ which is comprised of one or more
decision-makers

• They will consider the business case and then

decide whether or not to proceed to the
Project Initiation phase

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 The End

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