1. Explain the Project Management Certificate program structure and course functionality.

2. Explain the significance of the initiation phase.

3. Describe the key components of the initiation phase.

4. Determine a project’s benefits and costs.

6 Key Components of Project Initiation

• 1. Goals: Whhat you’ve been asked to do and what you’re trying to achieve.

  2. Scope: What should or shouldn’t be included in the project.

  3. Project deliverables: The tangible and intangible outcomes of a project.

  4. Success criteria: The standards by which you measure how successful a project is in reaching its goals.

  5. Stakeholders: People who are interested in, or are affected by, the completion of a successful project.

  6. Resources: budget, people, and materials available to complete the project. 

Key Components

• 1. Identifying the Need

     • What problem or opportunity is the project addressing?

     • Who are the stakeholders involved?

     • What are their expectations and needs?

  2. Defining Project Goals

     • What are the project's specific, measurable, achievable, relevant, and time-bound (SMART) goals?

     • How will success be measured?

  3. Determining Scope

     • What work is included in the project?

     • What is excluded?

     • What are the boundaries of the project?

  4. Estimating Resources

     • What resources are needed to complete the project (e.g., people, time, money, equipment)?

     • How will these resources be acquired and managed?

  5. Developing a Project Plan

     • What are the key milestones and deliverables?

     • What is the timeline for completing the project?

     • Who is responsible for each task?

  6. Conducting a Cost-Benefit Analysis

     • What are the expected benefits of the project?

     • What are the expected costs?

     • Do the benefits outweigh the costs?

  7. Obtaining Approval

     • Who needs to approve the project?

     • What is the process for obtaining approval?

  8. Communicating the Project Plan

     • Who needs to be informed about the project plan?

     • How will the plan be communicated?

The Importance of Project Initiation

• • Defines project objectives, scope, and deliverables.

  • Aligns team efforts toward a common goal.

  • Identifies stakeholders and their expectations.

  • Increases stakeholder satisfaction through early involvement.

  • Identifies and assesses potential risks and constraints.

  • Develop strategies to mitigate risks and reduce project failure.

  • Provides a solid foundation for project planning and execution.

Concept of Cost-Benefit Analysis

A cost-benefit analysis is the process of adding up the expected value of a project — the benefits — and comparing them to the dollar costs.

• • Defines project objectives, scope, and deliverables.

  • Aligns team efforts toward a common goal.

  • Identifies stakeholders and their expectations.

  • Increases stakeholder satisfaction through early involvement.

  • Identifies and assesses potential risks and constraints.

  • Develop strategies to mitigate risks and reduce project failure.

  • Provides a solid foundation for project planning and execution.

Guiding Questions for a Cost-Benefit Analysis

• • To determine the benefits of a project, you might ask:

    1. What value will this project create? 

    2. How much money could this project save our organization? 

    3. How much money will it bring in from existing customers?

    4. How much time will it save? 

    5. How will it improve the customer experience?

  • And to determine the costs of a project, consider questions such as:

    1. How much time will people have to spend on this project?

    2. What are the one-time costs?

    3. Are there any ongoing costs?

    4. What about long-term costs? 

  • You might also consider questions about intangible benefits. These are gains that are not quantifiable, such as:

    1. Customer satisfaction. Will the project increase customer retention, causing them to spend more on the company’s products or services? 

    2. Employee satisfaction. Is the project likely to improve employee morale, reducing turnover? 

    3. Employee productivity. Will the project reduce employee’s overtime hours, saving the company money?

    4. Brand perception. Is the project likely to improve the company’s brand perception and recognition, attracting more customers or providing a competitive advantage?

Calculating Costs and Benefits

• • The process of calculating costs and benefits is also called calculating return on investment, or ROI. There are many ways to determine a project’s ROI, but the easiest way is to compare the upfront and ongoing costs to its benefits over time.

  • One common ROI formula is:

• • In this formula, G represents the financial gains you expect from the project, and C represents the upfront and ongoing costs of your investment in the project.

  • For example, imagine your project costs $6,000 upfront plus $25 per month for 12 months. Twenty-five dollars for 12 months equals $300 per year, meaning your total cost is $6,300. You estimate that the project will bring in $10,000 in revenue over the course of that year. That leaves you with: 

    1. G = $10,000

    2. C = $6,300

  • Now, using the formula above, you plug in the amounts as follows: 

    1. ($10,000 - $6,300) ÷ $6,300 = ROI

  • Then you proceed with the calculation: 

    1. First, inside the parentheses:  10,000 - 6,300 = $3,700

    2. Next, $3,700 ÷ $6,300 = 0.5873

    3. Finally, 0.5873  x 100 = 58.7% 

  • The ROI comes to 0.587, or 58.7%. Given a strong ROI tends to be anything above 10%, you find 58.7% to be a strong ROI, so you decide to pursue the project.