Project Definition

The information derived from the conceptualisation and selection process should now be used to draw up a preliminary statement of the project objectives and associated specifications.

This preliminary document is called a project brief and the contents include:

• The project origins – a need or opportunity statement.
• The project rationale – why is it necessary now?
• The benefits of the project – to the customer as well as your organisation.
• The project budget if known at this stage.
• The current timescale and expected deadlines – subject always to detailed planning later.

The project brief is an executive summary and in combination with the original business case/proposal creates a project charter or definition. This project charter/definition serves as the foundation of project definition.

Project definition (or scope statement) is a very important activity as it determines the cost, time, quality and resource requirements of the project. Adequate time should be spent on this activity, because failure to derive all the relevant data for this foundation will lead to a poorly defined project with a considerably reduced chance of achieving a successful outcome. An estimated seventy five percent of projects seem to fail due to poor project definition.

What should be included in the project definition? Young (59-65) identified the following elements:

• A project organisation chart: A list to show who (team members) is involved in the project, with names, positions, contact numbers, and any other information deemed important.
• A stakeholder list: A list of everybody with an interest in the project, containing names, positions, whether they are internal/external to the company, ranking of importance to the project, etc.
• A statement of requirements: A document recording needs and expectations identified, how these needs can be met in practice, which needs cannot be satisfied yet and why, assumptions made at this stage, and what the project is about and what is not included.
• A project objectives statement: The objectives should be defined in conjunction with the customer, and should include a statement of background, the project purpose, the overall project objective, the primary project deliverables and expected delivery dates, the primary benefits, the cost of the project, and the skills required. This data may also be incorporated in the statement of work (SOW).
• Statement of work (SOW): This document will include the purpose statement, scope statement, deliverables, goals, cost, schedule, list of stakeholders, chain of command, agreements, assumptions and communication plan. Process specifications, customer specifications, standard operating procedures, quality standards, purchasing procedures, and other useful data can also be included.
• A risk assessment: Risks need to be identified and assessed and can be recorded in a project risk assessment log. Risk management is a continuous process throughout the lifecycle of the project, and it is important that the team be focused on the risks.

Once the project manager has reviewed the project definition and ensured that all relevant information has been included, he can seek the approval of the project sponsor and customer. Approval of the project definition will lead to the detailed project planning stage.