Establish Project Parameters

According to the Australian Institute of Project Management (AIPM) the project scope is a summary of the parameters of the entire project and will generally include:

• goals
• objectives
• deliverables
• task plan
• costs and deadlines
• responsibilities and roles.

Most organisations will have a template and/or guidelines for project scope and project plan. Some will require more detail than other depending on the complexity of the project. The model we use in the module is based on the Green Leaf Café templates. It is important to remember that this module focuses on the tasks required to undertake project work on a minor project or a section of a larger project. The project scope can be included as part of the project management plan and is often referred to as a project scope statement.

Watch the following video for a straightforward explanation of the types of parameters included in a project scope. You can see how closely they resemble those of the AIPM.

What is scope creep and how can we avoid it?

The AIPM use the analogy of a garden to describe scope creep. Imagine what a garden looks like when it is neglected and untended and your plants do not stay within the boundaries of the garden.

In other words, scope creep is what happens when changes to the scope occur. If new requirements are added to the scope without a change in budget, resources, or timeline, then that is uncontrolled scope creep. Sometimes changes in the scope are necessary and warranted but they should be planned. This is where the regular reports assist in monitoring.

Keep in mind, the scope management plan can be included as part of your project management plan. As part of the scope management plan, you should include the processes that will be taken to complete the project and how these processes will be controlled and monitored.¹

Project scope template

There are different formats used to develop a project scope and it is important that you refer to your organisation’s project management policy and procedure or confirm the template with your manager.

The project scope or the project scope statement is the part of project planning that lists what needs to be achieved and the work that must be done to deliver a project. It defines the boundaries of the project and forms the basis for every decision a project manager will make on a job. The project plan elaborates on the project scope.

In this module we include the following components which will form part of your assessment.

• Project title and Project sponsor
  The project sponsor may also be the delegating authority.
• Organisational objectives
  List relevant organisational objectives to which the project aligns or supports.
• Project objective(s)
  Describe specific project objective(s) (deliverables may also be required by your organisation).
• Constraints
  List any constraints. You may also be asked to provide inclusions. If not they will be included in the more detailed project plan.
• Assumptions
  Assumptions relative to decisions about the project that clarifies the scope of the project.
• Critical success factors
  These will be the deliverables/outputs of the project and the quality.
• Stakeholders and responsibilities
  These include project team members, delegating authority, internal stakeholders and external stakeholders.

You may also be asked to include:

• Issues or risks that might hinder the progress of the project
• Key deliverables
• Milestones
• Stakeholders
• High level requirements (resources required, budget breakdown).

The scope document should be used actively during the entire running of the project to ensure that the project is meeting its objectives and that the tasks being conducted are run according to the scope document. The scope document can also be used as a basis for a detailed project plan which will include more detail.

Other considerations

Let us now look at some important terms and concepts that are used in project management – many of which you will need to refer to in your project scope and/or project plan.

Project scope statement

A good project scope statement will make it easier to gain stakeholder’s approval and acceptance of your project. It will also put the project team in sync and prevent unauthorised tasks from popping up.

A great guideline to follow when creating project scope statements is the SMART method.

• Specific. Be clear and exact.
• Measurable. Qualitative and quantitative criteria will be used to assess whether you have achieved your goal.
• Achievable. Breaking down a daunting project into doable portions will help you and your team pace your progress.
• Relevant. Focus on completing the goals and avoid tasks that do not add value.
• Time Bound. A project is temporary and should have a time limit.

Issues, risks or constraints

• Issues: Issues are problems that come up while executing project activities, hindering the successful completion of such. Usually, an issue is either the difficulty in completing a project task identified in the project plan or discovering that there was a project task that should be included in the plan but was overlooked.
• Risks: Risks are the uncertainty involved in the project that, in the event that they occur, affect at least one project objective. Depending on the project, they can also refer to hazards. For example, at Green Leaf Café, common work health and safety hazards would likely be included given the nature of the worksite where many of their projects are implemented (for example, catering events or installing new refrigeration).
• Constraints: Constraints are the factors that will limit the project’s progress.

There are three main constraints that are interconnected:

• Time
  The deadline for delivering the outcome
• Cost
  The financial resources available to achieve the outcome
• Scope
  The expected outcome

These three are called triple constraints because of how deeply interconnected they are. Notice that when you tug on one, the other two are directly affected; adjust the scope and you will have to adjust the cost and time as well. The list of constraints is not limited to the three mentioned above. There are others that could crop up at any time including risk, resources, organisation, method, customers and more.

Assumptions, inclusions and exclusions

The following table provides a definition and examples of assumptions, inclusions and exclusions.

These three statements help stakeholders be on the same page as to the project and not place unrealistic expectations over it.

Critical success factors

Critical success factors refer to the elements in a project that are considered critical to the project achieving its objective/s. They are tracked by assigning key performance indicators (KPIs). Fortunately, CSFs aren't something vague. They're clearly defined elements that you can track with Key Performance Indicators (KPIs).² Common critical success factors for a project include:

• Stakeholders agreeing on the project goals
• Developing clear project scope and project plans with assigned stakeholder responsibilities, deliverables and timeframes
• Managing the project scope effectively.
• Obtaining resources and approvals.

List of tasks and quality standards

The list of tasks and quality standards referred to in scope statements is relatively straightforward. As its name indicates, it is just that, a list of tasks that you need to deliver throughout and at the end of the project lifecycle. If this is included in your project scope, specify the quality required for each task. It will serve as the standard to which the task will be upheld to assure management and stakeholders of the quality of the project.

Estimates (cost, time and resources)

In this part of the document, you and your team will make estimates of the cost, time and resources needed for the completion of the project.

• Estimating costs: In estimating costs, consider the project activities and items assigned per activity, cost per hour or per item, total of labour costs, GST
• Estimating time: In estimating time consider all project management tasks including planning and meetings. Depending on the project you may also have to consider possibilities such as accidents, staff shortages, suppliers not delivering on time, interruptions, equipment breakdowns. Time estimates are vital as they help you keep to a specific schedule. You will also find that the time estimate for each project task affects the cost of that same task.
• Estimating resources: Estimating resources involves assessing the nature and number of material and human resources. It also involves the tools or supplies required for the project.

Key milestones

Milestones are project markers that show what stage the project is in. It helps in making sure that the progress of the project is on track. You can ask the following questions to guide you in determining what the milestones in your project are.

• Is this a task or deliverable?
• Will it impact the final deadline?
• Is this an important moment in the project that will indicate progress?

Examples of milestones include project phase start/end dates, important meetings and presentations, client and stakeholder approvals and dates that might impact your timeline. It may also include the dates that project reports or status logs are submitted to the delegating authority or sponsor for approval.

Thus, stakeholders can be internal or external. Every stakeholder, regardless of the level of hierarchy they belong to and their level of involvement, expects something from the project. It is important to identify the stakeholders so that you can determine how to best manage their expectations. To help you identify the stakeholders, you need to consider authority and causality.

• Authority: Who is the project for? Who do you report or provide updates to? This will usually be the delegating authority or sponsor.
• Causality: Causality refers to causes and effects or the relationship of one element or task to another. Who will be affected by a project’s activity or outcome? What are the risks to the project if stakeholders are omitted? What functions are affected by project tasks? What resources are needed for the successful completion of the project?

Stakeholders may include:

• Client
  The person for whom the project is created.
• Sponsor
  The person who funds the project. This person can also be the Client.
• End-users
  The people who will use the end product.
• Project Manager
  The person who oversees the project.
• Project Team Members
  The people performing the tasks to complete the project.

Stakeholders can be further classified according to how engaged and hands-on they are to the project:

• Core stakeholders are those who are actively involved in the project. They have tasks and do actual work.
• Primary stakeholders are those who must be engaged during the project and have direct interest in the project.
• Secondary stakeholders are those who expect to receive reports and updates.

Analysing stakeholder needs

Once the stakeholders have been identified and classified, ask them what the success of the project means to them. You will find that as their interests vary, so do their needs. To set the baseline for your analysis, ask the stakeholders what they want, need or expect, and what stake they have in the project. Ask them what they think success for the project means and what criteria they judge it on.

There are several ways to get the information that you need from the stakeholders. The easiest is to ask them straight up or shoot them an email, a call or a memo. Make sure that your information is first-hand. Do not assume that you know what they think. If personal dialogues with stakeholders are not possible, you can delegate the task to managers or supervisors.

Make sure that you confirm the needs you have identified with each of the stakeholders/ stakeholder groups. Examine what work needs to be done before the project, what resources are required and the milestones you must achieve. You can use a project scope document to help you organise each of these items and document them in a way that allows you to work on the project efficiently.

The delegating authority is the person who has authority on the project and has the power to delegate. As a project manager, you will seek clarification from the delegating authority regarding issues related to the project and its parameters.

The delegating authority can be determined by tracing the lines of authorities and approvals. The line of authorities and approvals is the chain of command or the organisational hierarchy that assigns tasks to team members. It also works as a channel of communication (team members report to team leader and team leader reports to the supervisor) and determines the who is accountable for each task. Aside from that, your organisation’s lines of authority and approval is what you consult for when you want to obtain approval for a project before its implementation as well as the specific steps necessary to obtain the approval of each authority.

The line of authority is best illustrated by your organisational structure. You can also refer to your workplace policies and procedures to determine who your immediate supervisor is or who you are supposed to report to.

In undertaking a project, the delegating authority could be any one of the following:

• customer or client
• funding body
• manager or management representative
• project sponsor.

Defining project parameters

Project parameters are the conditions for which the project is set. They are the guidelines for accomplishing the tasks and includes the project timeframe, the budget allocated, and the resources needed among others. Project parameters are decided upon by the stakeholders in consultation with the delegating authority, around what the project aims to accomplish and what product or service is expected to be delivered. When determining project parameters, the best document to refer to is the project scope document. In determining the parameters of a project, the types of ocuments you can commonly refer to are the project brief and the project scope statement.

• Project brief: The project brief basically outlines what is going to happen in the project; it contains a brief description of the project and outlines the project management framework to be adopted for the initiation phase. This includes the measurement of success for each phase implemented, deliverables and milestones, budget and resources, risk and issues management and related projects among others.
• Project scope/scope statement: A project scope statement defines the boundaries of the project and forms the basis for every decision a project manager will make on a job.

Sources of information that will help you in defining parameters may include:

• business plans
• project contract
• meetings and discussions with relevant stakeholder
• risk management reports
• issues log
• project charter..

A project manager needs to identify the limits of each project team member’s responsibility and examine how changes to the project will affect its management. It is important that every member of your team has a set of clearly defined responsibilities to ensure that they understand exactly what they must and must not do, and what every other team member is to do and not do. This is the scope of their responsibility. If you do not clearly state this, members of your team may either go off and make changes which they are not authorised to do or, conversely, take less responsibility than needed for the success of the project.

Responsibilities of relevant stakeholders

We have already defined the different types of stakeholders. This subsection will probe further into what the responsibilities of each of the relevant stakeholders are. Remember however, that some of the roles are interchangeable depending on the size of the project and the policies and procedures of your organisation. Of the stakeholders previously identified, the following are relevant as to the undertaking of the project. Since this is a unit of competency on undertaking a project, pay close attention to the roles and responsibilities of the project manager.

• Client: Clients play an active role throughout the project lifecycle; approving project plans, requesting changes, raising issues, approving milestones, releasing payments and accepting or declining final deliverables. The project client or owner may also be the project sponsor. In small or medium sized organisations, the client is likely to be the owner.
• Sponsor: The sponsor, which could include the director, board or steering committee, is usually comprised of management representatives of other higher-level stakeholders. In small or medium sized organisations, the sponsor is likely to be the owner. They oversee the project and serves as the leadership support. They offer guidance on strategic decisions and resolves issues escalated by the project manager. They are also accountable for the funds allocated to the project.
• Project manager: Project managers are responsible for the day-to-day running of the project and everything that comes with it, such as the development and maintenance of the project plan, management of project resources, management of stakeholder communication, identifying the skills required for the project and getting appropriate project staff, and identifying and resolving problems that come up on a regular basis.
• Project team members: The team members may be full-time or part-time employees who have different skillsets to accommodate the various tasks needed for the completion of the project.

Reporting requirements

Reporting requirements are the necessary information required by a governmental body, organisation or employer (Business Dictionary, 2020). It is often required within a certain time and within a specific format. Reports play a crucial role in project management as they help manage the expectations of stakeholders and track the progress of the project. Specific individuals tasked with receiving and reviewing reports will be noted in the project scope and/or project plan. Reporting requirements will vary according to the type of project being undertaken, the purpose of the report, stakeholder needs and organisational requirements.

Below are some examples of reports you can use:

• Progress report: Progress reports are used to update stakeholders; details how far the project has gone towards completion.
• Resource report: Resource reports details who is doing what when; shows a breakdown of project members and tasks for the day.
• Variance report: Variance reports tells you whether the project is, in fact, progressing as planned, comparing the plan against the actual outcome and giving you a metric to measure if you are on track, ahead of schedule or running behind.
• Board/Executive report: These reports are tailored to the person the report is for; for the board and executive level, they will want to know issues they can resolve, a summary of budget position and status of milestones.

No matter what business or industry you are in, project reports typically have similar requirements and information.

It is also good to include the following in your report:

• Updates on any pending and approve change requests for the project
• Milestones
• Issues and challenges
• Decisions required and actions taken.

Usually, the project manager is the one responsible for submitting reports to the relevant stakeholder. Your team members may also have their own reporting requirements and periodically submit their reports to you. Whatever the reporting requirements may be, they must be determined before the start of the project implementation.

Reporting procedures vary according to need and purpose. Find the section on reporting in the Green Leaf Café Project Management Policy and Procedure and answer the following question.

Collaborative techniques to engage stakeholders in negotiations

Organisations thrive when they communicate and engage stakeholders. Stakeholder engagement is crucial to a successful project, especially in the early planning and development stage. An organisation must have a clear vision which can be derived from a well-rounded strategic planning process, coupled with an effective strategic plan or marketing plan can only come from stakeholder engagement.

To engage the project stakeholders, here are ten practical tips to better engage and influence them at the right times during the project lifecycle.

Based on 10 Ways to Engage Project Stakeholders. Project Risk Coach

When it comes to the means and tools for stakeholder engagement, the more traditional way is through face-to-face meetings and communications through emails and the like. Nowadays, there are a variety of online management tools that will help you collaborate and engage stakeholders such as Trello and Asana project management tools.

Every organisation must have a mission, goals, objectives and operations. These are necessary for every workplace organisation to survive. Without them, there would be no structure, no reason for its existence, and no means to achieve anything.

• Mission: The mission is the purpose of the organisation’s existence. It states the type of product or service it produces, the target customers, and the important values it holds.
• Goals: Goals are strategically set outcomes that outline expected results and what the organisation intends to achieve.
• Objectives: An objective is a specific milestone that you reach on the way to achieving your goal. They are specific actions and measurable steps that are needed to achieve a goal. For example, expanding your distribution network is an objective used to reach the goal of raising company revenue
• Operations: Operations are the organisation’s day-to-day activities that create unique value and achieve core objectives. All these are interconnected and interrelated.

One of your responsibilities as a project manager is to determine and confirm if the project is aligned with other projects and the organisation's mission, goals, objectives and operations. By doing so, you can be sure that the project you are planning to pursue is in line with the direction your organisation wants to take. If it is, you can count on the organisation for the support and provision of the resources that you will need for the implementation of the project.

Aside from consulting with relevant stakeholders, you can also use the following guide questions to help you clarify the project’s relationship to other projects and the organisation.

• Is the potential project in line with the organisation’s objectives?
• Are all workplace processes in place?
• Are the processes aligned with the project needs?
• Are there enough resources for the project?

If you answered no to any or all of the questions, then you should focus on the problematic areas first.

Role of an organisation’s stated mission, goals, objectives and operations

To help you clarify the relationship of a project to other projects and to the objectives of the organisation, let us consider how an organisation’s mission, goals, objectives and operations work, let us look at excerpts from the Green Leaf Mission, Goals, Objectives, Operations and Strategy Statement.

When you are beginning a new project, it is important that you identify the availability of your resources: what people, equipment, plant, money, and facilities you will need to achieve the goals of the project. If the resources you need are not going to be available at the time you need them, then it is time to take stock of the project and examine whether it is an appropriate time to undertake the work.

There are three types of project resources you must consider to execute and complete the project efficiently and effectively.

Let us look at each of these in more detail.

Physical resources

Physical resources are tangible items necessary for the implementation of the project. These are the items that take up space, have value and are used in undertaking the project. They include facilities, equipment, land and other assets. Physical resources vary from project to project depending on the industry and the nature of the project. It is important to keep in mind, however, that there may be statutory regulations and legal requirements that must be complied with.

Statutory regulations refer to professions that must be registered with a professional regulatory body by law. Examples of statutory regulations relevant to physical resource are the following:

• employment and insurance laws
• building and accessibility regulations
• pest control
• hygiene
• pollution
• compliance
• licenses
• recording documentation.

Legal requirements

Legal requirements are the necessary conditions imposed by a law, statute, ordinance, decree, requirement, order, judgment, rule, regulation (or interpretation of any of the foregoing) of, and the terms of any license or permit issued by, any Governmental Authority (Law Insider, 2020).

Examples of legal requirements to be considered include:

• work, health and safety measures, e.g., risk assessment procedures, preventative measures
• environmental management
• regulations for storage of supplies, e.g. Managing Risks of Hazardous Chemicals Code of Practice
• local and regulatory authorities, e.g. Health and Safety Executive Inspectorate, environmental health officer, fire officer
• compliance, recording documentation
• housekeeping.

Human resources

A project team is composed of a group of people managed by a project manager. As the project manager, the responsibility of making sure that the project moves forward as scheduled is tied with the ability to handle the members of the team. Thus, identifying the people that will be part of the team must be done in advance to make sure that they are available and have the skills for the project.

To determine the human resources required, consider the following factors.

• The capabilities/skills and effort (time) required for the project
• The available people for the team and their availability (time)

Once you have a list of potential people/team members, you can assign the tasks. Typically, the project team will discuss the assigned tasks but if you know them well enough, you can designate the task/s yourself. If there are gaps for a required skill set, meaning there are no team members qualified for the task at hand, you might want to consider outsourcing the task.

The management of human resources goes hand in hand with the implementation of human resource policies. Select the headings to learn more about the following common policies and procedures in an organisation:

Fair Work Act 2009

You are not a human resource management professional but you do need a basic understanding of the Fair Work Act 2009 which provides for the terms and conditions of employment as well as the rights and responsibilities of both employees and employers. Taking care of and nurturing your human resources is critical because without them, your entire organisation, not just your project, would collapse.

Select the following headings to understand the essential topics you need to know about.

Right team members

It is not enough to have people under your team. You must have the right people with the right skills.

Once you have completed your scope and project plans, you need to determine the skills that are required by each activity in your plan and use this to develop a skill requirement listing. You also need to ensure that you are aware of where your people will be sourced from – will you have access to the staff already present in your organisation? Or will you need to recruit new staff for the project? Once you have these factors under control, you should recruit staff who will allow you to meet your skill needs and accomplish the tasks required by your project.

When you are trying to select which people to have on your team, it is important that you look for people who:

• have technical competence in the project area
• are flexible
• have knowledge in working on projects
• are task oriented and able to work to a set of objectives and within a structure
• are able to effectively work within a team environment.

You will often find that you cannot meet all your team’s needs by using staff who are currently employed in your organisation. In such cases, you need to investigate employing staff on a temporary or contract basis to fill these skill gaps. You may be able to call on a pool of contractors that you regularly use, or if not appropriate, advertise for contract workers.

Human resources processes related to undertaking project work

Human resources processes related to undertaking project work include:

• Acquisition: Acquisition involves either the recruiting or reassigning or transferring employees to fill open positions required for your project. Acquisition is the first phase of project management wherein human resource availability is confirmed and the team to complete your project is obtained.
• Development: Development involves ensuring that each employee can accomplish work tasks according to organisational standards or expectations. Development in project management is about identifying specific areas where a team member may be struggling. By doing this, said team member could be given assistance and opportunities to address the problematic areas.
• Management: Management involves overseeing all employees to ensure that work tasks are being completed on time and according to set standards. Management in project management is to check if project timelines are being met or not and to ensure that each work is being completed according to the standards set.

Select the following headings to learn the steps in these functions.

Technical resources

Technical resources are generally technologies or applications needed to complete the project like computer hardware, computer monitors, modems and routers. Also included are software licenses, hardware such as cabling or switches for IT equipment, and machinery. Keeping updated in Australian Consumer Law (ACL), particularly on warranties, will help you with the management of technical resources. Check other laws and policies to this effect to make sure you are compliant and to get yourself protected in the process as well.

Key points

• The managerial principle PLOC (plan, lead, organise and control) sums up what a good project manager sets out to do.
• At the initial stages of your project, you should develop a project scope document that outlines the scope of the project – that is what it will and will not involve.
• Every stakeholder of the project must have a set of clearly defined responsibilities so that there is no redundancy of tasks and the project is effectively managed.
• The scope document should also outline your stakeholders, your reporting requirements, and the limits of your responsibility.
• Roles, responsibilities and authority must be negotiated and understood by all stakeholders.
• It is important that you determine how your project is linked to others around you, especially since some parts of the project may impact the delivery of other projects.

The final activity for this topic is a set of questions that will help you prepare for your formal assessment.