Unformatted Attachment Preview
PROJECT MANAGEMENT PLAN TEMPLATE
This Project Management Plan Template is free for you to copy and use on your project
and within your organization. We hope that you find this template useful and
welcome your comments. Public distribution of this document is only permitted
from the Project Management Docs official website at:
www.ProjectManagementDocs.com
PROJECT MANAGEMENT PLAN
COMPANY NAME
STREET ADDRESS
CITY, STATE ZIP CODE
DATE
Project Management Plan Template
www.ProjectManagementDocs.com
TABLE OF CONTENTS
INTRODUCTION ................................................................................................................................ 2
PROJECT MANAGEMENT APPROACH ................................................................................................ 2
PROJECT SCOPE................................................................................................................................ 3
MILESTONE LIST .............................................................................................................................. 3
SCHEDULE BASELINE AND WORK BREAKDOWN STRUCTURE .......................................................... 4
CHANGE MANAGEMENT PLAN ......................................................................................................... 4
COMMUNICATIONS MANAGEMENT PLAN ......................................................................................... 5
COST MANAGEMENT PLAN .............................................................................................................. 7
PROCUREMENT MANAGEMENT PLAN............................................................................................... 9
PROJECT SCOPE MANAGEMENT PLAN .............................................................................................. 9
SCHEDULE MANAGEMENT PLAN.................................................................................................... 10
QUALITY MANAGEMENT PLAN ...................................................................................................... 11
RISK MANAGEMENT PLAN ............................................................................................................. 13
RISK REGISTER .............................................................................................................................. 13
STAFFING MANAGEMENT PLAN ..................................................................................................... 13
RESOURCE CALENDAR ................................................................................................................... 15
COST BASELINE ............................................................................................................................. 15
QUALITY BASELINE ....................................................................................................................... 16
SPONSOR ACCEPTANCE .................................................................................................................. 17
1
Project Management Plan Template
www.ProjectManagementDocs.com
INTRODUCTION
The Introduction provides a high level overview of the project and what is included in this
Project Management Plan. This should include a high level description of the project and
describe the projects deliverables and benefits. Excessive detail is not necessary in this section
as the other sections of the project plan will include this information. This section should
provide a summarized framework of the project and its purpose. Look back at the Project
Charter for information to include in this section.
Total Software Incorporated (TSI) has recently approved the SmartVoice project to move
forward for project initiation within the research and development (R&D) group. This project
will result in the development of new voice recognition software and supports TSI’s corporate
strategy of providing progressive solutions to clients which improve productivity in both the
workplace and home environment. While voice recognition software is currently available, TSI
believes that new technological developments will enable our team to develop a solution far
superior to what is currently available.
TSI has been successful in gaining market share because of its aggressive pursuit of product
quality, ease of use, flexibility, and customer service. Additionally, customers understand that
our products may be applied to a wide range of uses for business and personal functions. By
leveraging our reputation for superior quality and user-friendly products, and capitalizing on new
technology, TSI can position itself as the premier provider of effective and easy to use voice
recognitions software in today’s marketplace.
PROJECT MANAGEMENT APPROACH
This section is where you outline the overall management approach for the project. This section
should describe, in general terms, the roles and authority of project team members. It should
also include which organizations will provide resources for the project and any resource
constraints or limitations. If there are any decisions which must be made by specific
individuals—for example authorizing additional funding by the project sponsor—this should also
be stated here. It should be written as an Executive Summary for the Project Management Plan.
The Project Manager, Joe Green, has the overall authority and responsibility for managing and
executing this project according to this Project Plan and its Subsidiary Management Plans. The
project team will consist of personnel from the coding group, quality control/assurance group,
technical writing group, and testing group. The project manager will work with all resources to
perform project planning. All project and subsidiary management plans will be reviewed and
approved by the project sponsor. All funding decisions will also be made by the project sponsor.
Any delegation of approval authority to the project manager should be done in writing and be
signed by both the project sponsor and project manager.
The project team will be a matrix in that team members from each organization continue to
report to their organizational management throughout the duration of the project. The project
manager is responsible for communicating with organizational managers on the progress and
performance of each project resource.
2
Project Management Plan Template
www.ProjectManagementDocs.com
PROJECT SCOPE
State the scope of the project in this section. The scope statement from the project charter should
be used as a starting point; however, the project plan needs to include a much more detailed
scope than the charter. This detail should include what the project does and does not include.
The more detail included in this section, the better the product. This will help to clarify what is
included in the project and help to avoid any confusion from project team members and
stakeholders.
The scope of TSI’s SmartVoice project includes the planning, design, development, testing, and
transition of the SmartVoice voice recognition software package. This software will meet or
exceed organizational software standards and additional requirements established in the project
charter. The scope of this project also includes completion of all documentation, manuals, and
training aids to be used in conjunction with the software. Project completion will occur when the
software and documentation package has been successfully executed and transitioned to TSI’s
manufacturing group for production.
All SmartVoice project work will be performed internally and no portion of this project will be
outsourced. The scope of this project does not include any changes in requirements to standard
operating systems to run the software, software updates or revisions.
MILESTONE LIST
Provide a summary list of milestones including dates for each milestone. Include an introductory
paragraph in this section which provides some insight to the major milestones. This section
should also mention or discuss actions taken if any changes to the milestones or delivery dates
are required.
The below chart lists the major milestones for the SmartVoice Project. This chart is comprised
only of major project milestones such as completion of a project phase or gate review. There
may be smaller milestones which are not included on this chart but are included in the project
schedule and WBS. If there are any scheduling delays which may impact a milestone or delivery
date, the project manager must be notified immediately so proactive measures may be taken to
mitigate slips in dates. Any approved changes to these milestones or dates will be communicated
to the project team by the project manager.
Milestone
Complete Requirements
Gathering
Complete SmartVoice
Design
Complete SmartVoice
Coding
Complete SmartVoice
Testing and Debugging
Complete Transition of
Description
All requirements for SmartVoice must be determined
to base design upon
This is the theoretical design for the software and its
functionality
All coding completed resulting in software prototype
Date
2/28/xx
All functionality tested and all identified errors
corrected
Completed software and documentation transitioned
8/31/xx
3
5/31/xx
7/31/xx
11/30/xx
Project Management Plan Template
www.ProjectManagementDocs.com
SmartVoice to TSI
Production
to operations group to begin production
SCHEDULE BASELINE AND WORK BREAKDOWN STRUCTURE
This section should discuss the WBS, WBS Dictionary, and Schedule baseline and how they will
be used in managing the project’s scope. The WBS provides the work packages to be performed
for the completion of the project. The WBS Dictionary defines the work packages. The
schedule baseline provides a reference point for managing project progress as it pertains to
schedule and timeline. The schedule baseline and work breakdown structure (WBS) should be
created in Microsoft Project. The WBS can be exported from the MS Project file.
The WBS for the SmartVoice Project is comprised of work packages which do not exceed 40
hours of work but are at least 4 hours of work. Work packages were developed through close
collaboration among project team members and stakeholders with input from functional
managers and research from past projects.
The WBS Dictionary defines all work packages for the SmartVoice Project. These definitions
include all tasks, resources, and deliverables. Every work package in the WBS is defined in the
WBS Dictionary and will aid in resource planning, task completion, and ensuring deliverables
meet project requirements.
The SmartVoice Project schedule was derived from the WBS and Project Charter with input
from all project team members. The schedule was completed, reviewed by the Project Sponsor,
and approved and base-lined. The schedule will be maintained as a MS Project Gantt Chart by
the SmartVoice Project Manager. Any proposed changes to the schedule will follow TSI’s
change control process. If established boundary controls may be exceeded, a change request will
be submitted to the Project Manager. The Project Manager and team will determine the impact
of the change on the schedule, cost, resources, scope, and risks. If it is determined that the
impacts will exceed the boundary conditions then the change will be forwarded to the Project
Sponsor for review and approval. The SmartVoice boundary conditions are:
CPI less than 0.8 or greater than 1.2
SPI less than 0.8 or greater than 1.2
If the change is approved by the Project Sponsor then it will be implemented by the Project
Manager who will update the schedule and all documentation and communicate the change to all
stakeholders in accordance with the Change Control Process.
The Project Schedule Baseline and Work Breakdown Structure are provided in Appendix A,
Project Schedule and Appendix B, Work Breakdown Structure.
CHANGE MANAGEMENT PLAN
This section should describe your change control process. Ideally, this process will be some type
of organizational standard which is repeatable and done on most or all projects when a change is
necessary. Changes to any project must be carefully considered and the impact of the change
4
Project Management Plan Template
www.ProjectManagementDocs.com
must be clear in order to make any type of approval decisions. Many organizations have change
control boards (CCBs) which review proposed changes and either approve or deny them. This is
an effective way to provide oversight and ensure adequate feedback and review of the change is
obtained. This section should also identify who has approval authority for changes to the
project, who submits the changes, how they are tracked and monitored.
For complex or large projects the Change Management Plan may be included as an appendix to
the Project Management Plan or as a separate, stand-alone document. We have a detailed
Change Management Plan template available on our website.
The following steps comprise TSI’s organization change control process for all projects and will
be utilized on the SmartVoice project:
Step #1: Identify the need for a change (Any Stakeholder)
Requestor will submit a completed TSI change request form to the project manager
Step #2: Log change in the change request register (Project Manager)
The project manager will maintain a log of all change requests for the duration of the
project
Step #3: Conduct an evaluation of the change (Project Manager, Project Team, Requestor)
The project manager will conduct an evaluation of the impact of the change to cost, risk,
schedule, and scope
Step #4: Submit change request to Change Control Board (CCB) (Project Manager)
The project manager will submit the change request and analysis to the CCB for review
Step #5: Change Control Board decision (CCB)
The CCB will discuss the proposed change and decide whether or not it will be approved
based on all submitted information
Step #6: Implement change (Project Manager)
If a change is approved by the CCB, the project manager will update and re-baseline
project documentation as necessary as well as ensure any changes are communicated to
the team and stakeholders
Any team member or stakeholder may submit a change request for the SmartVoice Project. The
SmartVoice Project Sponsor will chair the CCB and any changes to project scope, cost, or
schedule must meet his approval. All change requests will be logged in the change control
register by the Project Manager and tracked through to completion whether approved or not.
COMMUNICATIONS MANAGEMENT PLAN
The purpose of the Communications Management Plan is to define the communication
requirements for the project and how information will be distributed to ensure project success.
You should give considerable thought to how you want to manage communications on every
project. By having a solid communications management approach you’ll find that many project
management problems can be avoided. In this section you should provide an overview of your
communications management approach. Generally, the Communications Management Plan
defines the following:
• Communication requirements based on roles
5
Project Management Plan Template
www.ProjectManagementDocs.com
•
•
•
•
•
•
What information will be communicated
How the information will be communicated
When will information be distributed
Who does the communication
Who receives the communication
Communications conduct
For larger and more complex projects, the Communications Management Plan may be included
as an appendix or separate document apart from the Project Management Plan. We have a
detailed Communications Management Plan template available on our website.
This Communications Management Plan sets the communications framework for this project. It
will serve as a guide for communications throughout the life of the project and will be updated as
communication requirements change. This plan identifies and defines the roles of SmartVoice
project team members as they pertain to communications. It also includes a communications
matrix which maps the communication requirements of this project, and communication conduct
for meetings and other forms of communication. A project team directory is also included to
provide contact information for all stakeholders directly involved in the project.
The Project Manager will take the lead role in ensuring effective communications on this project.
The communications requirements are documented in the Communications Matrix below. The
Communications Matrix will be used as the guide for what information to communicate, who is
to do the communicating, when to communicate it, and to whom to communicate.
Communication
Type
Weekly Status
Report
Weekly Project
Team Meeting
Project Monthly
Review (PMR)
Project Gate
Reviews
Technical Design
Review
Description
Email
summary of
project status
Meeting to
review action
register and
status
Present
metrics and
status to team
and sponsor
Present
closeout of
project phases
and kickoff
next phase
Review of any
technical
designs or
work
associated
with the project
Frequency
Format
Weekly
Email
Weekly
Monthly
Deliverable
Owner
Project Sponsor,
Team and
Stakeholders
Status Report
Project
Manager
In Person
Project Team
Updated
Action
Register
Project
Manager
In Person
Project Sponsor,
Team, and
Stakeholders
Status and
Metric
Presentation
Project
Manager
As Needed
In Person
Project Sponsor,
Team and
Stakeholders
Phase
completion
report and
phase kickoff
Project
Manager
As Needed
In Person
Project Team
Technical
Design
Package
Project
Manager
6
Participants/
Distribution
Project Management Plan Template
www.ProjectManagementDocs.com
Project team directory for all communications is:
Name
Title
E mail
Office Phone
Cell Phone
John Davis
Joe Green
Project Sponsor
Project Manager
Senior
Programmer
Programmer
Sr. Quality
Specialist
Quality
Specialist
Technical Writer
Testing
Specialist
j.davis@tsi.com
j.green@tsi.com
xxx-xxx-xxxx
xxx-xxx-xxxx
xxx-xxx-xxxx
xxx-xxx-xxxx
h.walker@tsi.com
xxx-xxx-xxxx
xxx-xxx-xxxx
j.black@tsi.com
xxx-xxx-xxxx
xxx-xxx-xxxx
m.white@tsi.com
xxx-xxx-xxxx
xxx-xxx-xxxx
r.smith@tsi.com
xxx-xxx-xxxx
xxx-xxx-xxxx
t.sunday@tsi.com
xxx-xxx-xxxx
xxx-xxx-xxxx
k.brown@tsi.com
xxx-xxx-xxxx
xxx-xxx-xxxx
Herb Walker
Jason Black
Mary White
Ron Smith
Tom Sunday
Karen Brown
Communications Conduct:
Meetings:
The Project Manager will distribute a meeting agenda at least 2 days prior to any scheduled
meeting and all participants are expected to review the agenda prior to the meeting. During all
project meetings the timekeeper will ensure that the group adheres to the times stated in the
agenda and the recorder will take all notes for distribution to the team upon completion of the
meeting. It is imperative that all participants arrive to each meeting on time and all cell phones
and blackberries should be turned off or set to vibrate mode to minimize distractions. Meeting
minutes will be distributed no later than 24 hours after each meeting is completed.
Email:
All email pertaining to the SmartVoice Project should be professional, free of errors, and provide
brief communication. Email should be distributed to the correct project participants in
accordance with the communication matrix above based on its content. All attachments should
be in one of the organization’s standard software suite programs and adhere to established
company formats. If the email is to bring an issue forward then it should discuss what the issue
is, provide a brief background on the issue, and provide a recommendation to correct the issue.
The Project Manager should be included on any email pertaining to the SmartVoice Project.
Informal Communications:
While informal communication is a part of every project and is necessary for successful project
completion, any issues, concerns, or updates that arise from informal discussion between team
members must be communicated to the Project Manager so the appropriate action may be taken.
COST MANAGEMENT PLAN
The Cost Management Plan clearly defines how the costs on a project will be managed
throughout the project’s lifecycle. It sets the format and standards by which the project costs are
7
Project Management Plan Template
www.ProjectManagementDocs.com
measured, reported, and controlled. Working within the cost management guidelines is
imperative for all project team members to ensure successful completion of the project. These
guidelines may include which level of the WBS cost accounts will be created in and the
establishment of acceptable variances. The Cost Management Plan:
• Identifies who is responsible for managing costs
• Identifies who has the authority to approve changes to the project or its budget
• How cost performance is quantitatively measured and reported upon
• Report formats, frequency and to whom they are presented
For complex or large projects the Cost Management Plan may be included as an appendix to the
Project Management Plan or as a separate, stand-alone document. We have a detailed Cost
Management Plan template available on our website.
The Project Manager will be responsible for managing and reporting on the project’s cost
throughout the duration of the project. The Project Manager will present and review the
project’s cost performance during the monthly project status meeting. Using earned value
calculations, the Project Manager is responsible for accounting for cost deviations and presenting
the Project Sponsor with options for getting the project back on budget. All budget authority and
decisions, to include budget changes, reside with the SmartVoice Project Sponsor.
For the SmartVoice Project, control accounts will be created at the fourth level of the WBS
which is where all costs and performance will be managed and tracked. Financial performance of
the SmartVoice Project will be measured through earned value calculations pertaining to the
project’s cost accounts. Work started on work packages will grant that work package with 50%
credit; whereas, the remaining 50% is credited upon completion of all work defined in that work
package. Costs may be rounded to the nearest dollar and work hours rounded to the nearest
whole hour.
Cost and Schedule Performance Index (CPI and SPI respectively) will be reported on a monthly
basis by the Project Manager to the Project Sponsor. Variances of 10% or +/- 0.1 in the cost and
schedule performance indexes will change the status of the cost to yellow or cautionary. These
will be reported and if it’s determined that there is no or minimal impact on the project’s cost or
schedule baseline then there may be no action required. Cost variances of 20%, or +/- 0.2 in the
cost and schedule performance indexes will change the status of the cost to red or critical. These
will be reported and require corrective action from the Project Manager in order to bring the cost
and/or schedule performance indexes back in line with the allowable variance. Any corrective
actions will require a project change request and be must approved by the CCB before it can be
implemented.
Earned value calculations will be compiled by the Project Manager and reported at the monthly
project status meeting. If there are indications that these values will approach or reach the
critical stage before a subsequent meeting, the Project Manager will communicate this to the
Project Sponsor immediately.
8
Project Management Plan Template
www.ProjectManagementDocs.com
PROCUREMENT MANAGEMENT PLAN
The Procurement Management Plan should be defined enough to clearly identify the necessary
steps and responsibilities for procurement from the beginning to the end of a project. The project
manager must ensure that the plan facilitates the successful completion of the project and does
not become an overwhelming task in itself to manage. The project manager will work with the
project team, contracts/purchasing department, and other key players to manage the procurement
activities.
For larger projects or projects with more complicated procurement management requirements,
you can include the Procurement Management Plan as a separate document apart from the
Project Management Plan. We have a detailed Procurement Management Plan available on our
website.
The Project Manager will provide oversight and management for all procurement activities under
this project. The Project Manager is authorized to approve all procurement actions up to
$50,000. Any procurement actions exceeding this amount must be approved by the Project
Sponsor.
While this project requires minimal or no procurement, in the event procurement is required, the
Project Manager will work with the project team to identify all items or services to be procured
for the successful completion of the project. The Project Manager will then ensure these
procurements are reviewed by the Program Management Office (PMO) and presented to the
contracts and purchasing groups. The contracts and purchasing groups will review the
procurement actions, determine whether it is advantageous to make or buy the items or resource
required services internally, and begin the vendor selection, purchasing and the contracting
process.
In the event a procurement becomes necessary, the Project Manager will be responsible for
management any selected vendor or external resource. The Project Manager will also measure
performance as it relates to the vendor providing necessary goods and/or services and
communicate this to the purchasing and contracts groups.
PROJECT SCOPE MANAGEMENT PLAN
It is important that the approach to managing the projects’ scope be clearly defined and
documented in detail. Failure to clearly establish and communicate project scope can result in
delays, unnecessary work, failure to achieve deliverables, cost overruns, or other unintended
consequences. This section provides a summary of the Scope Management Plan in which it
addresses the following:
• Who has authority and responsibility for scope management
• How the scope is defined (i.e. Scope Statement, WBS, WBS Dictionary, Statement of
Work, etc.)
• How the scope is measured and verified (i.e. Quality Checklists, Scope Baseline, Work
Performance Measurements, etc.)
• The scope change process (who initiates, who authorizes, etc.)
9
Project Management Plan Template
www.ProjectManagementDocs.com
•
Who is responsible for accepting the final project deliverable and approves acceptance of
project scope
We have a detailed Scope Management Plan available on our website which can be included as
an appendix to the Project Management Plan for larger or more complex projects. Be sure to
review it and determine if it's necessary for managing your project.
Scope management for the SmartVoice Project will be the sole responsibility of the Project
Manager. The scope for this project is defined by the Scope Statement, Work Breakdown
Structure (WBS) and WBS Dictionary. The Project Manager, Sponsor, and Stakeholders will
establish and approve documentation for measuring project scope which includes deliverable
quality checklists and work performance measurements.
Proposed scope changes may be initiated by the Project Manager, Stakeholders or any member
of the project team. All change requests will be submitted to the Project Manager who will then
evaluate the requested scope change. Upon acceptance of the scope change request the Project
Manager will submit the scope change request to the Change Control Board and Project Sponsor
for acceptance. Upon approval of scope changes by the Change Control Board and Project
Sponsor the Project Manager will update all project documents and communicate the scope
change to all stakeholders. Based on feedback and input from the Project Manager and
Stakeholders, the Project Sponsor is responsible for the acceptance of the final project
deliverables and project scope.
The Project Sponsor is responsible for formally accepting the project’s final deliverable. This
acceptance will be based on a review of all project documentation, testing results, beta trial
results, and completion of all tasks/work packages and product functionality.
SCHEDULE MANAGEMENT PLAN
This section provides a general framework for the approach which will be taken to create the
project schedule. Effective schedule management is necessary for ensuring tasks are completed
on time, resources are allocated appropriately, and to help measure project performance. This
section should include discussion of the scheduling tool/format, schedule milestones, and
schedule development roles and responsibilities.
Be sure to check out the detailed Schedule Management Plan available on our website. The
separate Schedule Management Plan is suitable for larger projects or projects where the schedule
management is more formalized.
Project schedules for the SmartVoice Project will be created using MS Project 2007 starting with
the deliverables identified in the project’s Work Breakdown Structure (WBS). Activity
definition will identify the specific work packages which must be performed to complete each
deliverable. Activity sequencing will be used to determine the order of work packages and
assign relationships between project activities. Activity duration estimating will be used to
calculate the number of work periods required to complete work packages. Resource estimating
will be used to assign resources to work packages in order to complete schedule development.
10
Project Management Plan Template
www.ProjectManagementDocs.com
Once a preliminary schedule has been developed, it will be reviewed by the project team and any
resources tentatively assigned to project tasks. The project team and resources must agree to the
proposed work package assignments, durations, and schedule. Once this is achieved the project
sponsor will review and approve the schedule and it will then be base lined.
In accordance with TSI’s organizational standard, the following will be designated as milestones
for all project schedules:
• Completion of scope statement and WBS/WBS Dictionary
• Base lined project schedule
• Approval of final project budget
• Project kick-off
• Approval of roles and responsibilities
• Requirements definition approval
• Completion of data mapping/inventory
• Project implementation
• Acceptance of final deliverables
Roles and responsibilities for schedule development are as follows:
The project manager will be responsible for facilitating work package definition, sequencing, and
estimating duration and resources with the project team. The project manager will also create the
project schedule using MS Project 2007 and validate the schedule with the project team,
stakeholders, and the project sponsor. The project manager will obtain schedule approval from
the project sponsor and baseline the schedule.
The project team is responsible for participating in work package definition, sequencing,
duration, and resource estimating. The project team will also review and validate the proposed
schedule and perform assigned activities once the schedule is approved.
The project sponsor will participate in reviews of the proposed schedule and approve the final
schedule before it is base lined.
The project stakeholders will participate in reviews of the proposed schedule and assist in its
validation.
QUALITY MANAGEMENT PLAN
This section discusses how quality management will be used to ensure that the deliverables for
the project meet a formally established standard of acceptance. All project deliverables should
be defined in order to provide a foundation and understanding of the tasks at hand and what work
must be planned. Quality management is the process by which the organization not only
completes the work, but completes the work to an acceptable standard. Without a thorough
Quality Management Plan, work may be completed in a substandard or unacceptable manner.
This section should include quality roles and responsibilities, quality control, quality assurance,
and quality monitoring.
11
Project Management Plan Template
www.ProjectManagementDocs.com
For larger or more complex projects, the Quality Management Plan may be included as an
appendix or separate document. A detailed Quality Management Plan is available for use on our
website.
All members of the SmartVoice project team will play a role in quality management. It is
imperative that the team ensures that work is completed at an adequate level of quality from
individual work packages to the final project deliverable. The following are the quality roles and
responsibilities for the SmartVoice Project:
The Project Sponsor is responsible for approving all quality standards for the SmartVoice
Project. The Project Sponsor will review all project tasks and deliverables to ensure compliance
with established and approved quality standards. Additionally, the Project Sponsor will sign off
on the final acceptance of the project deliverable.
The Project Manager is responsible for quality management throughout the duration of the
project. The Project Manager is responsible for implementing the Quality Management Plan
and ensuring all tasks, processes, and documentation are compliant with the plan. The Project
Manager will work with the project’s quality specialists to establish acceptable quality
standards. The Project Manager is also responsible for communicating and tracking all quality
standards to the project team and stakeholders.
The Quality Specialists are responsible for working with the Project Manager to develop and
implement the Quality Management Plan. Quality Specialists will recommend tools and
methodologies for tracking quality and standards to establish acceptable quality levels. The
Quality Specialists will create and maintain Quality Control and Assurance Logs throughout the
project.
The remaining member of the project team, as well as the stakeholders will be responsible for
assisting the Project Manager and Quality Specialists in the establishment of acceptable quality
standards. They will also work to ensure that all quality standards are met and communicate any
concerns regarding quality to the Project Manager.
Quality control for the SmartVoice Project will utilize tools and methodologies for ensuring that
all project deliverables comply with approved quality standards. To meet deliverable
requirements and expectations, we must implement a formal process in which quality standards
are measured and accepted. The Project Manager will ensure all quality standards and quality
control activities are met throughout the project. The Quality Specialists will assist the Project
Manager in verifying that all quality standards are met for each deliverable. If any changes are
proposed and approved by the Project Sponsor and CCB, the Project Manager is responsible for
communicating the changes to the project team and updating all project plans and
documentation.
Quality assurance for the SmartVoice Project will ensure that all processes used in the
completion of the project meet acceptable quality standards. These process standards are in
place to maximize project efficiency and minimize waste. For each process used throughout the
project, the Project Manager will track and measure quality against the approved standards with
12
Project Management Plan Template
www.ProjectManagementDocs.com
the assistance of the Quality Specialists and ensure all quality standards are met. If any changes
are proposed and approved by the Project Sponsor and CCB, the Project Manager is responsible
for communicating the changes to the project team and updating all project plans and
documentation.
RISK MANAGEMENT PLAN
This section provides a general description for the approach taken to identify and manage the
risks associated with the project. It should be a short paragraph or two summarizing the
approach to risk management on this project.
Since risk management is a science in itself, we have many risk management templates available
on our website. Look for the detailed Risk Management Plan, Risk Register along with
templates for performing a risk assessment meeting.
The approach for managing risks for the SmartVoice Project includes a methodical process by
which the project team identifies, scores, and ranks the various risks. Every effort will be made
to proactively identify risks ahead of time in order to implement a mitigation strategy from the
project’s onset. The most likely and highest impact risks were added to the project schedule to
ensure that the assigned risk managers take the necessary steps to implement the mitigation
response at the appropriate time during the schedule. Risk managers will provide status updates
on their assigned risks in the bi-weekly project team meetings, but only when the meetings
include their risk’s planned timeframe.
Upon the completion of the project, during the closing process, the project manager will analyze
each risk as well as the risk management process. Based on this analysis, the project manager
will identify any improvements that can be made to the risk management process for future
projects. These improvements will be captured as part of the lessons learned knowledge base.
RISK REGISTER
The Risk Register for this project is provided in Appendix C, Risk Register.
STAFFING MANAGEMENT PLAN
Discuss how you plan to staff the project. This section should include discussion on matrixed or
projectized organizational structure depending on which is being used for this project. This
section should also include how resources will be procured and managed as well as the key
resources needed for the project.
The SmartVoice Project will consist of a matrix structure with support from various internal
organizations. All work will be performed internally. Staffing requirements for the SmartVoice
Project include the following:
Project Manager (1 position) – responsible for all management for the SmartVoice Project. The
Project Manager is responsible for planning, creating, and/or managing all work activities,
13
Project Management Plan Template
www.ProjectManagementDocs.com
variances, tracking, reporting, communication, performance evaluations, staffing, and internal
coordination with functional managers.
Senior Programmer (1 position) – responsible for oversight of all coding and programming tasks
for the SmartVoice Project as well as ensuring functionality is compliant with quality standards.
Responsible for working with the Project Manager to create work packages, manage risk,
manage schedule, identify requirements, and create reports. The Senior Programmer will be
managed by the Project Manager who will provide performance feedback to the functional
manager.
Programmer (1 position) – responsible for coding and programming for the SmartVoice Project.
All coding and programming tasks will be reviewed by the Senior Programmer prior to
implementation. Responsibilities also include assisting with risk identification, determining
impacts of change requests, and status reporting. The Programmer will be managed by the
Project Manager and feedback will be provided to the functional manager for performance
evaluations by the Project Manager and Senior Programmer.
Senior Quality Specialist (1 position) – responsible for assisting the Project Manager in creating
quality control and assurance standards. The Senior Quality Specialist is also responsible for
maintaining quality control and assurance logs throughout the project. The Senior Quality
Specialist will be managed by the Project Manager who will also provide feedback to the
functional manager for performance evaluations.
Quality Specialist (1 position) – responsible for assisting the Project Manager and Senior Quality
Specialist in creating and tracking quality control and assurance standards. The Quality
Specialist will have primary responsibility for compiling quality reporting and metrics for the
Project Manager to communicate. The Quality Specialist will be managed by the Project
Manager who will provide feedback, along with the Senior Quality Specialist to the functional
manager for performance evaluations.
Technical Writer (1 position) – responsible for compiling all project documentation and
reporting into organizational formats. Responsible for assisting the Project Manager in
Configuration Management and revision control for all project documentation. Responsible for
scribing duties during all project meetings and maintaining all project communication
distribution lists. The Technical Writer will be managed by the Project Manager who will also
provide feedback to the functional manager for performance evaluations.
Testing Specialist (1 position) – responsible for helping establish testing specifications for the
SmartVoice Project with the assistance of the Project Manager and Programmers. Responsible
for ensuring all testing is complete and documented in accordance with TSI standards.
Responsible for ensuring all testing resources are coordinated. The Testing Specialist will be
managed by the Project Manager who will also provide feedback to the functional manager for
performance evaluations.
The Project Manager will negotiate with all necessary TSI functional managers in order to
identify and assign resources for the SmartVoice Project. All resources must be approved by the
14
Project Management Plan Template
www.ProjectManagementDocs.com
appropriate functional manager before the resource may begin any project work. The project
team will not be co-located for this project and all resources will remain in their current
workspace.
RESOURCE CALENDAR
Include a Resource Calendar as part of your project plan. The resource calendar identifies key
resources needed for the project and the times/durations they'll be needed. Some resources may
be needed for the entire length of the project while others may only be required for a portion of
the project. This information must be agreed to by the Project Sponsor and Functional Managers
prior to beginning the project.
The SmartVoice Project will require all project team members for the entire duration of the
project although levels of effort will vary as the project progresses. The Project is scheduled to
last one year with standard 40 hour work weeks. If a project team member is not required for a
full 40 hour work week at any point during the project, their efforts outside of the SmartVoice
Project will be at the discretion of their Functional Manager.
SmartVoice Resource Calendar
180
160
Hours per month
140
120
PM
Programmers
100
Quality Specs
80
Tech Writer
Testing Spec
60
40
20
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct
Nov
Dec
Month
COST BASELINE
This section contains the cost baseline for the project upon which cost management will be
based. The project will use earned value metrics to track and manage costs and the cost baseline
provides the basis for the tracking, reporting, and management of costs.
The cost baseline for the SmartVoice project includes all budgeted costs for the successful
completion of the project.
15
Project Management Plan Template
www.ProjectManagementDocs.com
Project Phase
Planning
Budgeted Total
$350,000
Design
$250,000
Coding
$200,000
Testing
$175,000
Transition and Closeout
$150,000
Comments
Includes work hours for all
project team members for
gathering requirements and
planning project
Includes work hours for all
project team members for
work on SmartVoice
conceptual design
Includes all work hours for
coding of SmartVoice
Includes all work hours for
testing (including beta testing)
of SmartVoice software
Includes all work hours for
transition to operations and
project closeout
QUALITY BASELINE
This section should include the quality baseline for the project. The purpose of this baseline is to
provide a basis for ensuring that quality can be measured to determine if acceptable quality
levels have been achieved. It is important for all projects to clearly define and communicate
quality standards and the quality baseline serves this purpose.
The SmartVoice Project must meet the quality standards established in the quality baseline. The
quality baseline is the baseline which provides the acceptable quality levels of the SmartVoice
Project. The software must meet or exceed the quality baseline values in order to achieve
success.
Item
Voice Recognition
Compatibility
Supporting Documentation
Acceptable Level
At least 98% recognition level
with 2% or less errors in text
No errors associated with
running software with
compatible applications
Less than 1% failure rate in
beta testing new users to run
setup and execute software
functionality
16
Comments
Using standard TSI English
language databases
Using the _______ suite of
applications
Project Management Plan Template
www.ProjectManagementDocs.com
SPONSOR ACCEPTANCE
Approved by the Project Sponsor:
__________________________________________
Date: ___________________
This free Project Management Plan Template is brought to you by www.ProjectManagementDocs.com
17
BUSINESS CASE TEMPLATE
This Business Case Template is free for you to copy and use on
your project and within your organization. We hope that you find
this template useful and welcome your comments. Public
distribution of this document is only permitted from the Project
Management Docs official website at:
www.ProjectManagementDocs.com
BUSINESS CASE
COMPANY NAME
STREET ADDRESS
CITY, STATE ZIP CODE
DATE
Business Case Template
www.ProjectManagementDocs.com
TABLE OF CONTENTS
1.
EXECUTIVE SUMMARY .......................................................................................................... 2
1.1.
1.2.
1.3.
1.4.
2.
3.
3.1.
3.2.
3.3.
4.
4.1.
4.2.
4.3.
4.4.
4.5.
4.6.
5.
6.
7.
8.
Issue .............................................................................................................................................................2
Anticipated Outcomes ..................................................................................................................................2
Recommendation .........................................................................................................................................3
Justification ..................................................................................................................................................3
BUSINESS CASE ANALYSIS TEAM ......................................................................................... 4
PROBLEM DEFINITION ........................................................................................................... 4
Problem Statement .......................................................................................................................................4
Organizational Impact ..................................................................................................................................5
Technology Migration ..................................................................................................................................5
PROJECT OVERVIEW ............................................................................................................. 6
Project Description .......................................................................................................................................6
Goals and Objectives....................................................................................................................................7
Project Performance .....................................................................................................................................7
Project Assumptions.....................................................................................................................................8
Project Constraints .......................................................................................................................................8
Major Project Milestones .............................................................................................................................8
STRATEGIC ALIGNMENT ....................................................................................................... 9
COST BENEFIT ANALYSIS ..................................................................................................... 9
ALTERNATIVES ANALYSIS .................................................................................................. 10
APPROVALS ........................................................................................................................ 11
1
Business Case Template
www.ProjectManagementDocs.com
1. EXECUTIVE SUMMARY
This section should provide general information on the issues surrounding the business
problem and the proposed project or initiative created to address it. Usually, this section is
completed last after all other sections of the business case have been written. This is because
the executive summary is exactly that, a summary of the detail that is provided in subsequent
sections of the document.
This business case outlines how the Web Platform (WP) Project will address current business
concerns, the benefits of the project, and recommendations and justification of the project.
The business case also discusses detailed project goals, performance measures, assumptions,
constraints, and alternative options.
1.1. Issue
This section should briefly describe the business problem that the proposed project will
address. This section should not describe how the problem will be addressed, only what
the problem is.
Because of an expanding client base, Smith Consulting has moved to a de-centralized
business model over the last 2 years. As we continue to support more clients in more
locations, the administration of our workforce has become more difficult. Until now,
many of our internal requirements such as reporting, payroll activities, and resource
management have been done via legacy mainframe systems. As our workforce expands
in numbers and area, these legacy mainframe systems have become inadequate to
effectively manage these administrative activities. This inadequacy is manifested in
higher costs and increased employee turnover which we have seen over the last 12
months. In order to more effectively manage our administration, reduce costs, and
improve employee turnover, Smith Consulting must move to a web-based application as
outlined in this business case for the WP Project. By doing so, employees will assume a
greater role in managing their administrative issues, have access to timesheets securely
online, and the company can manage its administration from one central and common
platform.
1.2. Anticipated Outcomes
This section should describe the anticipated outcome if the proposed project or initiative
is implemented. It should include how the project will benefit the business and describe
what the end state of the project should be.
Moving to a centralized web-based administrative platform will enable Smith
Consulting to manage its employee payroll systems and administrative functions in a
seamless and consolidated manner. This technology migration will reduce overhead
costs associated with the large workforce currently required to manage these tasks. Decentralized employees will have more autonomy to manage their payroll elections,
training, reporting, and various other administrative tasks. The company will also
benefit from more timely and accurate financial reporting as a result of our regional
managers’ ability to enter and continuously update their financial metrics. This real time
2
Business Case Template
www.ProjectManagementDocs.com
access reduces errors, improves cycle time, and is readily available to any authorized
user.
1.3. Recommendation
This section summarizes the approach for how the project will address the business
problem. This section should also describe how desirable results will be achieved by
moving forward with the project.
Various options and alternatives were analyzed to determine the best way to leverage
technology to improve the business processes and reduce the overhead costs within
Smith Consulting. The approach described herein allows us to meet our corporate
objectives of continuously improving efficiency, reducing costs, and capitalizing on
technology. The recommended WP Project will methodically migrate the data and
functions of our current mainframe system to our new web-based platform in order to
preserve data integrity and allow adequate time to train all employees and managers on
their responsibilities and respective administrative functions. The web-based platform is
compatible with all other current IT systems and will improve the efficiency and
accuracy of reporting throughout the company. Some of the ways that this technology
will achieve its desired results are:
• Employees will be able to enter and edit their timesheet data at any time from any
location instead of phoning their data to their regional manager for entry into the
mainframe system
• Timesheet and payroll data will be immediately accessible for quality control and
reporting purposes which will reduce the need for staff in non-billable positions to
gather, analyze and compile data
• Employees will have the ability to register for training which reduces the burden on
managers and training staff
1.4. Justification
This section justifies why the recommended project should be implemented and why it
was selected over other alternatives. Where applicable, quantitative support should be
provided and the impact of not implementing the project should also be stated.
The migration of payroll and other administrative functions from the legacy mainframe
system to the web-based platform will result in greater efficiency with regards to
company resources and business processes. The WP Project is also aligned with
corporate strategy and objectives since it uses technology to improve the way we do
business. While other alternatives and the status quo were analyzed, the WP Project was
selected for proposal in this business case because it provides the best opportunity to
realize benefits in an expedited manner while also allowing for the greatest improvement
in efficiency and cost reduction. Other alternatives assumed greater risk, provided less
benefits, were too difficult to define, or were not suitably aligned with current corporate
strategy and/or objectives.
Initial estimates for the WP Project are:
3
Business Case Template
www.ProjectManagementDocs.com
•
•
•
•
15% reduction in overhead costs in the first 12 months
10% decrease in employee turnover in the first 12 months
50% immediate decrease in time to generate weekly and monthly financial reports
25% immediate decrease in the amount of time it takes to resolve payroll issues
2. BUSINESS CASE ANALYSIS TEAM
This section describes the roles of the team members who developed the business case. It is
imperative that participants and roles are clearly defined for the business case as well as
throughout the life of the project.
The following individuals comprise the business case analysis team. They are responsible
for the analysis and creation of the WP Project business case.
Role
Description
Name/Title
Executive Sponsor
Provide executive support for the project
John Doe, VP Operations
Technology Support
Provides all technology support for the
project
Jane Smith, VP Information
Technology
Process Improvement
Advises team on process improvement
techniques
Jim Jones, Process Team Lead
Project Manager
Manages the business case and project
team
Steve Smith, Project Manager
Software Support
Provides all software support for the
project
Amy White, Software Group Lead
3. PROBLEM DEFINITION
3.1. Problem Statement
This section describes the business problem that this project was created to address. The
problem may be process, technology, or product/service oriented. This section should
not include any discussion related to the solution.
Since its inception, Smith Consulting has relied upon a mainframe system to manage
payroll and other administrative employee functions. As the number of employees
grows, so does the burden placed upon headquarters to effectively manage the
company’s administration at acceptable levels. In the last two years Smith Consulting
has hired 5 employees into overhead positions to help manage and run the day to day
administration operations. These positions provide little or no return on investment as
they are not billable positions and only maintain the status quo; they do nothing to
improve the management of the company’s administration. Additionally, employees
must currently call their regional managers to enter their work hours and raise any
concerns regarding payroll and administrative tasks. This places a large burden on
managers who much balance these requirements with their day to day billable tasks.
4
Business Case Template
www.ProjectManagementDocs.com
Reporting is another problem area associated with the legacy mainframe system. All
weekly and monthly financial reports must be generated manually which allows for a
high probability of error and require significant amounts of time. These manual tasks
further add to the burden and expense of the company.
3.2. Organizational Impact
This section describes how the proposed project will modify or affect the organizational
processes, tools, hardware, and/or software. It should also explain any new roles which
would be created or how existing roles may change as a result of the project.
The WP Project will impact Smith Consulting in several ways. The following provides
a high-level explanation of how the organization, tools, processes, and roles and
responsibilities will be affected as a result of the WP Project implementation:
Tools: the existing legacy administration platform will be phased out completely as the
WP Project is stood up and becomes operational. This will require training employees
on the WP tools and their use in support of other organizational tools.
Processes: with the WP Project comes more efficient and streamlined administrative
and payroll processes. This improved efficiency will lessen the burden on managers and
provide autonomy to employees in managing their administrative and payroll tasks and
actions.
Roles and Responsibilities: in addition to the WP Project allowing greater autonomy to
employees and less burden on managers, the manpower required to appropriately staff
human resources and payroll departments will be reduced. While we greatly value our
employees, the reduction of non-billable overhead positions will directly reflect in our
bottom line and provide an immediate return on our investment. The new platform will
be managed by the IT group and we do not anticipate any changes to IT staffing
requirements.
Hardware/Software: in addition to the software and licensing for the project, Smith
Consulting will be required to purchase additional servers to accommodate the platform
and its anticipated growth for the next 10 years.
3.3. Technology Migration
This section provides a high-level overview of how the new technology will be
implemented and how data from the legacy technology will be migrated. This section
should also explain any outstanding technical requirements and obstacles which need to
be addressed.
In order to effectively migrate existing data from our legacy platform to the new Webbased platform, a phased approach has been developed which will result in minimal/no
disruption to day to day operations, administration, and payroll activities. The following
is a high-level overview of the phased approach:
5
Business Case Template
www.ProjectManagementDocs.com
Phase I: Hardware/Software will be purchased and the WP system will be created in the
web-based environment and tested by the IT development group.
Phase II: IT group will stand up a temporary legacy platform in the technology lab to be
used for day to day operations for payroll and administration activities. This will be
used as a backup system and also to archive all data from the company mainframe.
Phase III: The web-based platform will be populated with all current payroll and
administrative data. This must be done in conjunction with the end of a pay cycle.
Phase IV: All employees will receive training on the new web-based platform.
Phase V: The web-based platform will go live and the legacy mainframe system will be
archived and stood down.
4. PROJECT OVERVIEW
This section describes high-level information about the project to include a description, goals
and objectives, performance criteria, assumptions, constraints, and milestones. This section
consolidates all project-specific information into one chapter and allows for an easy
understanding of the project since the baseline business problem, impacts, and
recommendations have already been established.
The WP Project overview provides detail for how this project will address Smith
Consulting’s business problem. The overview consists of a project description, goals and
objectives for the WP Project, project performance criteria, project assumptions, constraints,
and major milestones. As the project is approved and moves forward, each of these
components will be expanded to include a greater level of detail in working toward the
project plan.
4.1. Project Description
This section describes the approach the project will use to address the business
problem(s). This includes what the project will consist of, a general description of how
it will be executed, and the purpose of it.
The WP Project will review and analyze several potential products to replace Smith
Consulting’s legacy payroll and administration mainframe system with a web-based
platform. This will be done by determining and selecting a product which adequately
replaces our existing system and still allows for growth for the next 10 years. Once
selected, the project will replace our existing system in a phased implementation
approach and be completed once the new system is operational and the legacy system is
archived and no longer in use.
This project will result in greater efficiency of day to day payroll and administrative
operations and reporting, significantly lower overhead costs, and reduced turnover as a
result of providing employees with greater autonomy and flexibility. Additionally,
6
Business Case Template
www.ProjectManagementDocs.com
managers will once again be focused on billable tasks instead of utilizing a significant
portion of their time on non-billable administrative tasks.
Smith Consulting will issue a Request for Information in order to determine which
products are immediately available to meet our business needs. Once the product is
acquired, all implementation and data population will be conducted with internal
resources.
4.2. Goals and Objectives
This section lists the business goals and objectives which are supported by the project
and how the project will address them.
The WP Project directly supports several of the corporate goals and objectives
established by Smith Consulting. The following table lists the business goals and
objectives that the WP Project supports and how it supports them:
Business Goal/Objective
Description
Timely and accurate reporting
Web based tool will allow real-time and accurate reporting of all
payroll and administrative metrics
Improve staff efficiency
Fewer HR and payroll staff required for managing these activities will
improve efficiency
Reduce employee turnover
Greater autonomy and flexibility will address employee concerns and
allow managers to focus on billable tasks
Reduce overhead costs
Fewer staff required will reduce the company’s overhead
4.3. Project Performance
This section describes the measures that will be used to gauge the project’s performance
and outcomes as they relate to key resources, processes, or services.
The following table lists the key resources, processes, or services and their anticipated
business outcomes in measuring the performance of the project. These performance
measures will be quantified and further defined in the detailed project plan.
Key Resource/Process/Service
Performance Measure
Reporting
The web-based system will reduce reporting discrepancies (duplicates
and gaps) and require reconciliation every 6 months instead of monthly.
Timesheet/Admin data entry
Eliminate managers’ non-billable work by allowing employees to enter
their data directly.
Software and System
Maintenance
Decrease in cost and staff requirements as system maintenance will be
reduced from once every month to once every 6 months with the new
system.
Staff Resources
Elimination of 5 staff positions in HR and payroll which are no longer
required as several functions will now be automated.
7
Business Case Template
www.ProjectManagementDocs.com
4.4. Project Assumptions
This section lists the preliminary assumptions for the proposed project. As the project is
selected and moves into detailed project planning, the list of assumptions will most
likely grow as the project plan is developed. However, for the business case there
should be at least a preliminary list from which to build.
The following assumptions apply to the WP Project. As project planning begins and
more assumptions are identified, they will be added accordingly.
• All staff and employees will be trained accordingly in their respective data entry,
timesheet, and reporting tasks on the new web-based system
• Funding is available for training
• Funding is available for purchasing hardware/software for web-based system
• All department heads will provide necessary support for successful project
completion
• Project has executive-level support and backing
4.5. Project Constraints
This section lists the preliminary constraints for the proposed project. As the project is
selected and moves into detailed project planning, the list of constraints will most likely
grow as the project plan is developed. However, for the business case there should be at
least a preliminary list from which to build.
The following constraints apply to the WP Project. As project planning begins and more
constraints are identified, they will be added accordingly.
• There are limited IT resources available to support the WP Project and other,
ongoing, IT initiatives.
• There are a limited number of commercial off the shelf (COTS) products to support
both payroll and administrative activities.
• As implementation will be done internally and not by the product developers or
vendors, there will be limited support from the hardware/software providers.
4.6. Major Project Milestones
This section lists the major project milestones and their target completion dates. Since
this is the business case, these milestones and target dates are general and in no way
final. It is important to note that as the project planning moves forward, a base-lined
schedule including all milestones will be completed.
The following are the major project milestones identified at this time. As the project
planning moves forward and the schedule is developed, the milestones and their target
completion dates will be modified, adjusted, and finalized as necessary to establish the
baseline schedule.
8
Business Case Template
www.ProjectManagementDocs.com
Milestones/Deliverables
Target Date
Project Charter
01/01/20xx
Project Plan Review and Completion
03/01/20xx
Project Kickoff
03/10/20xx
Phase I Complete
04/15/20xx
Phase II Complete
06/15/20xx
Phase III Complete
08/15/20xx
Phase IV Complete
10/15/20xx
Phase V Complete
12/15/20xx
Closeout/Project Completion
12/31/20xx
5. STRATEGIC ALIGNMENT
All projects should support the organization’s strategy and strategic plans in order to add
value and maintain executive and organizational support. This section provides an overview
of the organizational strategic plans that are related to the project. This includes the strategic
plan, what the plan calls for, and how the project supports the strategic plan.
The WP Project is in direct support of several of Smith Consulting’s Strategic Plans. By
directly supporting these strategic plans, this project will improve our business and help
move the company forward to the next level of maturity.
Plan
Goals/Objectives
Relationship to Project
20xx Smith Consulting
Strategic Plan for Information
Management
Improve record keeping
and information
management
This project will allow for real-time information and
data entry, increased information accuracy, and a
consolidated repository for all payroll and
administrative data
20xx Smith Consulting
Strategic Plan for Information
Management
Utilize new technology to
support company and
department missions
more effectively
New technology will allow many payroll and
administrative functions to be automated reducing
the levels of staff required to manage these
systems
20xx Smith Consulting
Strategic Plan for Human
Capital
Engage the workforce
and improve employee
retention
This project allows the employee to take an active
role in managing his/her payroll and administrative
elections
6. COST BENEFIT ANALYSIS
Many consider this one of the most important parts of a business case as it is often the costs
or savings a project yields which win final approval to go forward. It is important to quantify
the financial benefits of the project as much as possible in the business case. This is usually
done in the form of a cost benefit analysis. The purpose of this is to illustrate the costs of the
project and compare them with the benefits and savings to determine if the project is worth
pursuing.
9
Business Case Template
www.ProjectManagementDocs.com
The following table captures the cost and savings actions associated with the WP Project,
descriptions of these actions, and the costs or savings associated with them through the first
year. At the bottom of the chart is the net savings for the first year of the project.
Action
Type
Description
Purchase Web-based product
and licenses
Cost
Initial investment for WP Project
$400,000.00
Software installation and training
Cost
Cost for IT group to install new software and for
the training group to train all employees
$100,000.00
Action
First year costs
(- indicates
anticipated
savings)
Reduce HR and payroll staff by 5
Savings
employees
An immediate reduction in overhead equal to
the annual salary of 3 HR specialists and 2
payroll analysts.
-$183,495.00
Managers no longer required to
work non-billable payroll and
administrative tasks
Savings
18 regional managers currently average 16
hours per week non-billable time. It is
anticipated that this number will be reduced to
no more than 2 hours per week. At an average
of $36.00 per hour this results in ($36.00 x 14
hours/wk reduced non-billable time x 18
managers) $9072.00 increased revenue per
week.
-$471,744.00
System maintenance required
every 6 months instead of
monthly
Savings
Less frequent use of IT resources working on
non-value added tasks results in approximately
$42,000 savings per year.
-$42,000
Reduce employee turnover by
10%
Savings
Savings in cost to out-process exiting employee
and recruit, hire, and train new employees is
approximately $50,000 in the first year.
-$50,000
Net First Year Savings
$247,239.00
Based on the cost benefit analysis above we see that by authorizing the WP Project, Smith
Consulting will save $247,239.00 in the first year alone. This represents a significant
improvement in our operating costs and is a clear indicator of the benefit this project will
have on the company.
7. ALTERNATIVES ANALYSIS
All business problems may be addressed by any number of alternative projects. While the
business case is the result of having selected one such option, a brief summary of considered
alternatives should also be included—one of which should be the status quo, or doing
nothing. The reasons for not selecting the alternatives should also be included.
The following alternative options have been considered to address the business problem.
These alternatives were not selected for a number of reasons which are also explained below.
10
Business Case Template
www.ProjectManagementDocs.com
No Project (Status Quo)
Reasons For Not Selecting Alternative
•
Keep the mainframe legacy system in place
•
•
•
Alternative Option
Unnecessary expenditure of funds for
increased staffing levels
Continued occurrence of a high number of
data errors
Poor and untimely reporting
Lack of automation
Reasons For Not Selecting Alternative
•
•
•
Outsource the implementation of a web-based
platform
Alternative Option
Significantly higher cost
Expertise already exists in house
Vendor’s lack of familiarity with our internal
requirements
Reasons For Not Selecting Alternative
•
•
Develop software internally
•
Lack of qualified resources
Significant cost associated with software
design
Timeframe required is too long
8. APPROVALS
The business case is a document with which approval is granted or denied to move forward with
the creation of a project. Therefore, the document should receive approval or disapproval from
its executive review board
The signatures of the people below indicate an understanding in the purpose and content of
this document by those signing it. By signing this document you indicate that you approve of
the proposed project outlined in this business case and that the next steps may be taken to
create a formal project in accordance with the details outlined herein.
Approver Name
Title
Black, J.
President and COO
Brown, A.
Executive VP
Signature
This free Business Case Template is brought to you by www.ProjectManagementDocs.com
11
Date