Plan a project

The format of a project scope management plan can vary, but they typically include an overview, project objectives, steps, a Work Breakdown Structure (WBS), budget information, schedule, risk assessment and mitigation strategies.

Instructions to complete individual components appear next.

Write a project statement

The project statement identifies the project by name or number, explains how the project came about and summarises the nature and intention.

A simple example appears next.

Project name	127 Bradbury Close
Background	Why (purpose) – Expansion of property portfolio after zoning was changed from industrial to residential
Synopsis	What (product/ scope) – 15-storey student apartment build  When (time) – Two-year timeframe How much (cost) – $10,000,000
Goal	To have 48 luxury apartments to sell to investors for between $450,000 and $1,200,000 each to meet a current shortage in the housing market and to return a net profit of $3,500,000.

Some project statements include a message from a director or project owner, but it depends on the workplace and intended readers.

To write a project statement, use an approved template and:

• assign a name or number so you can search for it later 
• explain how the project came about in the background section – specify the problem you are trying to address if applicable 
• summarise what you want to achieve and include a basic timeline and estimated costs in the synopsis
• include the expected outcome/s in the goal section
• leave the document open so you can add to it later.

Specify the boundaries

Setting clear boundaries or defining the scope is critical to project success. Boundaries typically relate to work requirements, time restrictions, quality standards, and budget.

The goal of scope management is to ensure that the project's objectives are met while also staying within the approved boundaries. If scope creep occurs during the execution phase of the project, it can cause delays and increased costs. It's important for project managers to stay on top of any scope changes so that they can keep the project on track.

Note: Scope creep is a term used to describe changes, continuous or uncontrolled growth in a project's scope, at any point after the project begins. Scope creep can occur when the project boundaries aren't properly defined, documented, or controlled.

Think of the project scope as an imaginary box that encloses all the project elements and activities. It not only defines what you are doing (what goes into the box), but it sets limits for what won't be done as part of the project (what doesn't fit in the box). 

Scope answers questions like:

• How will everyone know when a project has been successful (acceptance criteria)?
• When will the project goals be achieved (deliverables)?
• What will achievement 'look like' (quality standards)?
• What won't be done within the scope of the project (exclusions)?
• What are the challenges or restrictions (limitations)?
• What are we counting on (assumptions)?
• What could negatively impact the project (risks)?
• What will we do about it (contingencies)?
• How will the project affect others (impacts)?

A simplified example appears next.

The acceptance criteria – describe what requirements must be met for the project to be accepted as complete	Certificate of occupancy issued for all apartments
The deliverables – a detailed list of project outputs and milestones – include quality standards wherever possible Quality standards vary greatly between projects but might include compliance with legislation, industry standards, licensing requirements, and organisational policies and procedures	Excavation and building of foundations, construction, utilities, and interior decoration of building ready to sell to investors  Foundations: 19/06/202x  Construction – frames: 01/08/202x Construction – external: 15/10/202x Utilities – electrical: 30/02/ 202x Utilities – Gas: 05/02/202x Utilities – water: 30/02/202x Paint: 07/05/202x Tile: 01//05/202x Carpet: 01/06/202x Inspections finalised: 4/09/202x Decoration: 01/06/202x
The exclusions – description of work that is not included in the project	Purchasing block of land, architectural planning, and council approval Sales and future support to investors Demolition of the old building
The constraints – lists limits on resources for time, money, human resources, or equipment (capital)	Two-year timeframe, $10,000,000 budget
The assumptions – describes the list of assumptions the project team and stakeholders are working under to complete the project	Architectural plans lodged and approved by the council
The risks – lists potential challenges Internal factors or risks might include the availability of resources, changes in company policy or politics, or an unforeseen complication in the project plan External factors or risks might include economic conditions, changes in customer requirements, or competition from other companies	Cost increases in raw materials, difficulty finding contractors who are available, the weather
Contingencies – lists strategies to alleviate or minimise risks	Resources will be ordered from the preferred supplier in advance; additional human resources will be hired via the preferred temp agency; the scheduled start date will be in Spring
The impacts – lists agencies, stakeholders or divisions which will be impacted by this project and explains how they will be affected	None known

A list of resources and associated costs to reach each milestone could also be included. If you include a budget, break down costs into individual project phases. Instructions should explain how the project will be funded and when money will become available. More complex project plans usually include appendices with the costs of each task and a project cash flow diagram.

Watch the video next to learn more about project boundaries.

The steps next explain how to write a project scope:

1. Consult with the stakeholders. Acceptance criteria are a set of requirements that must be achieved before the project can be considered complete. Some businesses call this the 'definition of done' criteria because they define what's required to initiate project closure.
2. Identify what must be delivered at the end of the project and at points throughout. Describe the outputs sufficiently so that the project team know what's expected and can agree that each milestone has been reached.
3. Record what will be excluded in the specification for the project.
4. Briefly identify main assumptions or known facts. When it comes to project management, there are a few assumptions that are made. The most important assumption is that the project manager has a clear understanding of the goals and objectives of the project. Additionally, the project manager must have a good understanding of the business and what is required to complete the project successfully. Other assumptions include having all the required resources available to complete the project and having accurate information upon which to make decisions. These assumptions form the basis for effective project management, but they are not always correct. For example, a manager may believe they have all the required resources only to find out later that they are missing something critical. Alternatively, they might make decisions based on inaccurate information. In these cases, it can lead to problems with the project. Problem areas likely to be encountered in scope management are:
   1. defining the scope too narrowly – this can lead to frustration on the part of team members who feel that their work is being cut down unnecessarily, and can also lead to problems down the road, when it becomes clear that more work needs to be done than was originally planned
   2. trying to do too much in too little time – when a project is rushed, corners may be cut and important details may be overlooked leading to problems during implementation or even after the project is completed.
5. Briefly identify the main constraints or limitations. There are inherent limitations in any project management approach. The most common constraints are time, money, and scope. Other factors can also constrain a project, such as quality, resources, and risk.
6. Briefly identify the main risks – if any – which could impact processes or outcomes. Problems like staff or resource shortages that will inevitably require decisions or actions by the project sponsor or team must be included.
7. Briefly identify contingencies or strategies to control the risks. There are several different risk management strategies that can be employed, depending on the nature of the project and the type of risks involved. Some common strategies include avoidance, transference, mitigation, and acceptance. Avoidance involves taking steps to eliminate or reduce the likelihood of a risk occurring. Transference involves transferring the risk to another party, such as through insurance or contract clauses. Mitigation involves taking steps to reduce the impact of a risk if it does occur.
8. Outline the potential impact of risk minimisation strategies. 

Clarify the Work Breakdown Structure (WBS)

The Work Breakdown Structure (WBS) is a key project management tool that helps organise and define the project's deliverables. The WBS defines the work that needs to be done to produce the desired outcome. It can be used in all phases of a project, from planning through execution and closure.

Note: A WBS can’t be used as a replacement for the project plan or project schedule. It is simply a visual breakdown of the work or deliverables for a project. 

The number of activity levels in a WBS listing activity and task depends on the size and complexity of the project. Typically, three or four activity levels are used. More than four can make the chart confusing to read.

The lowest activity level should show the smallest tasks. Each task should be a distinct piece of work that can be recognised and understood by the person assigned to carry out the work. Any other information needed is communicated through an activity list and activity attribute sheet.

An example for planting a tree appears next.

There are several methods for completing a WBS. One popular method is to use a top-down approach which starts with the end goal and breaks it down into smaller and smaller tasks until you reach the level of detail needed for the project. This approach can be helpful for large, complex projects.

Another common method for creating a WBS is the bottom-up approach. The bottom-up approach starts with individual tasks and builds up to higher-level deliverables.

To segment and document a WBS:

• consult with stakeholders to determine task requirements
• use a tool like a WBS dictionary.

The WBS dictionary is a tool used to document the contents of each part of the WBS. The dictionary should include seven key components.

Read more information about WBS dictionaries.

To develop a WBS dictionary, use an approved template and include:

1. The name and description of the task.
2. The deliverables associated with the task.
3. The dependencies between tasks.
4. The resources required for the task.
5. The schedule for the task. 
6. The cost of the task. 
7. Any other information that will help to identify and organise the WBS elements. 

An excerpt appears next.

Task	Deliverables	Dependencies	Resources	Schedule	Cost
Lay foundation	Lay forms Lay concrete Erect beams and joists	Providers must deliver within the deadline Deliverables	Formwork Builders x 8 Apprentice builders x 8	Jan 12-24 Jan 24-26 Jan 26-30	Appendix - budget

You can also present WBS in a Gantt chart to show how work tasks overlap.

Watch the video to learn more about Gantt charts and work schedules.

Note: Additional information about Gantt charts and other project management tools is included in topic three.

The format and language must be suited to the content and potential readers.

Typically, formats suit the content and potential readers if and/or when:

• your workplace approves them for use
• the content is easy to read and understand
• the intention is clear.

Plain English suits most readers, with the exception being that some may require information in other formats. Alternatively, some may want more complex detail. 

Read more about tailoring your communication to suit others.

Note: Additional instructions to communicate effectively were included in topic one.