CHAPTER 8
Project Scope Management in Practice

RENEE MEPYANS-ROBINSON, NASHVILLE STATE COMMUNITY COLLEGE

From company to company, although methodology and life cycle may vary, the most critical success factor in any project is comprehensive scope management. The project team coordinates processes, policies, methodology, and life cycle to ensure that work requirements meet customer expectations. The project definition and scope control must be examined continuously through all phases of the project to minimize risks to the outputs.

The project manager is responsible for initiating the planning of the project. With upper management approval, the team can begin to conduct planning sessions to create a statement of work that outlines the customer requirements. The project manager, with the team’s input, will analyze documentation and discuss the use of system tools, resources, schedules, and budgetary costs to develop the scope management output.

One example of planning for an e-business online education tool involved upper management approval, buy-in from vendors, outsourcing some work elements, sound organization structure, staff support of business activities, change control process, and customer input during the implementation phase of the project.

The scope management plan can be developed as an informal or formal document and have as many details as necessary to effectively describe the nature of the work to be completed. The document will be used to guide the team through all phases of the life cycle. The project manager may decide how the team will define the scope, develop the details of the scope statement, in what format the Work Breakdown Schedule (WSB) will be designed and finalized, and the mechanism to verify and control the project scope. The document should be designed to focus on the delivery of only the work required and how to achieve the best results of the outcome the product or service.

THE VALUE OF SCOPE MANAGEMENT OUTPUTS

The scope management outputs are extremely important to the overall management of the project and contribute to how the project will be organized. With diligent planning, the project team will see the value of this planning process and outputs of the Scope Management plan. The team will execute and perform Collect Requirements, Define Scope, Create WBS, Verify Scope, and Control Scope. If the project manager eliminates any or part of these areas, the project could be comprised. The project team needs to ensure that each area is addressed and given appropriate attention for project success.

Collect Requirements

Requirements Documentation

The first output of Collect Requirements is the requirements documentation. This document is key to the future success of the project because it describes how the project requirements will meet the business need that the project was undertaken to address. It is important to note that often the requirements will be defined at a high level and then, as more information is obtained, will become more detailed. Before baselining, the requirements must be measurable, testable, traceable, complete, consistent, and accepted by all key stakeholders. The format of the requirements document will vary from a simple document listing categorized by stakeholder and priority to much more elaborate forms containing executive summaries, descriptions and attachments.

Components of the requirements documentation may include, but are not limited to:

• Business need.

• Business and project objectives that will provide traceability for all aspects of the project from initiation (project charter) through closing (project signoff).

• Both functional requirements (business processes, information, product interaction, etc.) and nonfunctional requirements (level of service, security, safety, etc.).

• Impacts to organizational entities, such as call centers, sales, technology groups, etc.

• Support requirements.

• Project assumptions that allow the team to move forward.

• Project constraints that limit the team’s options and need to be identified up front.

Requirements Management Plan

A key challenge for project managers is to analyze, document, and manage project and product requirements throughout the life of the project. This is addressed by the second output of Collect Requirements, known as the Requirements Management Plan. The plan highlights the sequential, overlapping, and iterative relationships that comprise the phase-to-phase relationships that influence requirements management. The project manager’s approach to these relationships is documented in the Requirements Management Plan.

Components of the plan may include, but are not limited to:

• How requirements will be planned, tracked, and managed throughout the project.

• Configuration management activities that address how changes to product requirements will not only be initiated, but how the impacts will be analyzed, monitored, and managed.

• Prioritization process.

• Product metrics.

• The traceability structure that will identify which requirement attributes will be captured in the traceability matrix.

Requirements Traceability

The final output for the collect requirements is the Requirements Traceability Matrix that links requirements to their origins and traces them throughout the project life cycle. Not only does it ensure that the business requirements have been met, but it provides a basis of comparison for any proposed product changes throughout the project. The process includes, but is not limited to:

• Requirements to meet the business needs, business and project objectives, and the business and project goals.

• Requirements to project scope and the WBS deliverables.

• Requirements to product design and development.

• Requirements to test strategies and scenarios.

Some other elements of a good requirements collection, which is particularly applicable to working on software development projects, would be to involve all departments, formalize all requirements documentation and guidelines, and focus on long-term objectives. The technical document will be needed for the customer so it is a good process to begin documenting in the planning phase of the project. It will save the team time, eliminate duplication of work and ensure the product is clearly explained for the end-user.

Define Scope

The second output of planning is to Define Scope, which is the descriptive detail of the project goal. If the project extends beyond its identified scope, the risk for failure increases. Once the project scope has clear and concise objectives, the team can identify the project assumptions and constraints that are outside the scope. Other documents the project team or specialist creates will aid in supporting the content, such as investment analysis portfolio, budget, software product plans, and market analysis and systems manuals.

What is the value of developing a sound project scope statement? If it is developed properly, everyone will clearly understand all the details of the project, the deliverables, and the boundaries. The product description helps to explain the details for completing the objective. There may be budgetary restrictions and definite limitations that prohibit the advancement of the product. The team has to be sensitive of the customer’s constraints and assumptions, so as not to expand the product any further than guidelines and standards dictate, otherwise the deliverables and time/cost schedule may not be achieved. The entire project organization can impact the outcome if decision-making and actions are not followed according to the project plan. The team should begin to identify risks and issues that could cause any delays of the project. The project manager should seek approval during any changes and subsequent phases. Any scope deviations must be communicated immediately to all stakeholders, including the customer.

Create the Work Breakdown Structure (WBS)

The third output of planning is the development of the WBS, which outlines tasks to be carried out to meet the project objectives. To understand and distribute tasks to team members, the project manager conducts a session to find out what activities need to be accomplished under what phase. When this has been determined and the team has assigned the activities to the lowest level of work (also known as work packages), the project manager can begin to evaluate costs, assign resources, and create a time schedule to those activities. The WBS dictionary describes the component elements, list of associated activities, milestones, the start and end dates, resources required, technical references, and statement of work. Other pertinent documents include bill of materials and risk breakdown structure.

Verify Scope

This process is carried out whenever one or more deliverables are ready to be handed over. It consists of obtaining the stakeholders’ formal acceptance of the work completed. Once the scope is developed, the elements are thoroughly discussed and agreed on by the project team, stakeholders, sponsor, and the customer. The definition is then signed off formally, and any changes are communicated through the project manager unless an advisory committee has been established to lead this effort. With the acceptance and signed approval of the scope, the scope management plan is the formal document that defines the processes outlined in the project plan. The project manager is responsible to ensure that this process is complete and monitored throughout all phases of the project. If any changes occur, all information is documented and then communicated to all members of the project team. The customer is to be kept informed of these or any changes during any parts of the life cycle of the project; otherwise, scope creep will occur and put the project in jeopardy through increased risks and unnecessary costs to the project.

Control Scope

The last output of Scope Management is that of Control Scope. The project manager should have implemented a process to ensure the project’s goal and objectives will be monitored throughout the project. The project manager must be made aware of any discrepancies of project activities or potential risks promptly that deviate from the baseline or work breakdown schedule to minimize any delays to the schedule that could ultimately cause project failure. The scope management section of the project plan is a formalized document that captures the processes for handling the scope changes. The project manager’s responsibilities include providing guidance for any corrective action and means of communications to all team members involved at any level of the project. If any changes occur, the customer should be informed immediately to make future decisions about the project outcome. With adequate scope control mechanisms executed, the team’s progress and performance can be measured. This will resolve any potential issues to the schedule and decrease resource conflicts.

IDENTIFYING THE DIFFERENCE BETWEEN PRODUCT AND PROJECT SCOPE

Project Scope includes all the work that needs to be accomplished to deliver a product, service, or result with the specified features and functions. The result could be a single product or have several components. The project will have a start and end date and possess particular characteristics or attributes that produce specific results during the life cycle.

For example, depending on the complexity or high degree of technical aspects of the project, it could be divided into phases for cost or tasks reasons. The innovation of a major system project, issues with contributing organizations, and/or economic risks are other reasons to separate areas into more manageable “chunks” for the team to complete successfully and on time.

Product Scope is the features and functions that characterize a product, service, or result. The scope will be measured against the set product requirements and is managed throughout the life cycle.

HOW TO DEVELOP A SOUND SCOPE STATEMENT

The guidelines for a good scope statement are that it should be written in a clear, concise, nontechnical language targeted for all audiences, in particular, upper management and the customer. The stakeholder and upper management must first understand the nature of the project or product and then be able to conceptualize the end product or service. They will not need to know all the specific activities surrounding the development phases, but are mainly interested in the cost savings and the market share to match the corporate strategic vision and goal. If the executives can understand the value of the project, the funding and support will be contributed throughout the project. Open communications during all phases is essential for the success of the project and possible subsequent iterations.

The customer is more receptive to understand the current project status to make decision points in the planning stage. The customer needs to be able to analyze and research other options if the project is being delayed or if the market dictates other needs. Some corporations are very competitive and the timing and launch of a product is the critical contribution to its success factor.

The project team should obtain all of the customer’s requirements and consider these guidelines when planning and creating a comprehensive scope statement:

• Why are we initiating this project? The project justification statement will help to formalize any doubts of moving forward with the project or product.

• What is the actual project or product that is being developed? A brief summary statement to explain the specifications.

• How and what activities will be completed? State what the deliverables or milestones are in the intended project.

• Quantifiable criteria for project success are documented and the objectives of the project specified.

• Identify the assumptions and constraints that will not be included in the project requirements.

The steps of writing an effective scope statement should include a project name, date, the project manager’s name, project justification, product description, deliverable/milestones, objectives, assumptions, constraints, any issues or risks, who wrote the statement and the date it was written, and the approval with a date. In addition, the project manager should include documents outlining risk analysis, feasibility studies, and financial cost-benefit methods.

A Well-Written Scope Statement: Some Positive Outcomes

The project team, stakeholders, and customer will have fewer questions if the scope statement has addressed all the important aspects of the project objectives. The customer requirements are covered within the Statement of Work and deliverables are projected. The well thought-out plan will provide the project manager the guidelines to manage the project and customer expectations. The sound work breakdown schedule, proposed project budget and allocated resources provide the team with parameters to implement a quality product.

Within this scope statement, there are six indicators that can impact the outcome and success of the project. They are:

1. Integration of processes.

2. Type of environment or culture.

3. Upper management buy-in or support.

4. Training and education available.

5. Formalized methodology or project management office.

6. Dedicated knowledgeable resources.

Other factors to consider in selecting competent team members to perform the work activities are:

1. Development of project plans and time schedule.

2. Written documentation standards.

3. Determination of budget requirements.

4. Written and excellent Scope Statement of Work.

5. Creation of an environment to encourage team relationships.

6. Motivation of individuals to complete activities.

The outcome of sound scope management is outstanding project results and a clear project approach to define business and technology issues. The content has definite inclusions and exclusions and set objectives. By using these techniques the project planning and control of the scope will be accomplished.

FIGURE 8-1. ELEMENTS OF PROJECT SCOPE

Does Your Scope Management Plan Meet Customer Expectations?

The project management team must identify the stakeholders early in the planning phase to determine the project requirements and verify the control of the activities. By conducting thorough scope planning sessions, the project manager will have a well-developed Scope Statement and Scope Management plan that meets the customer approval and project expectations. Figure 8-1 shows a process chart that can help aid in the development of a project and can be used during the planning stage with the team to produce a successful project or product.

QUESTIONS FOR REFLECTION

Has the project manager reviewed the scope statement with the team, stakeholders, and customer? Have you prepared a well thought-out definition of the scope of work and does it fit with the budget and time schedule? Prior to moving to the next phase, have the stakeholders, both internal and external in the process, accepted the scope management plan and scope statement? Do you have the necessary sign-off approvals from management, stakeholders and the customer? Do you feel you have spent adequate time in the planning session? Has the team gathered sufficient project requirements and completed enough research to fully understand the components of the project? If other departments are involved in the project, have they been a part of the planning process and do these cross-functional resources have prior approval to perform the work? Are the control measures in place to ensure scope creep does not occur? Does the project manager understand which areas may have flexibility in the schedule? Does the customer understand the project requirements? Does the customer have any budget, time restraints, or quality issues for the product?

Acknowledgment

This chapter was reviewed and updated to PMBOK^® Guide, Fourth Edition compliance by Ruth Elswick, PMP, a Senior Faculty Member with PM College.