7
The initial investigation stage

Have a quick look at it!

The goal of the initial investigation stage is to examine the proposal as quickly as possible (say, within one to six weeks) and evaluate it against the existing business plans of the company to determine if what is intended is likely to be viable in financial, operational, technical, and customer terms.

Overview

The goal of the initial investigation stage is to examine the proposal, as quickly as possible, (say, within one to six weeks) and evaluate it against the existing business plans of the company. You need to determine if what is intended is likely to be viable in financial, operational, technical, and customer terms. You will need to:

• make a preliminary assessment of the business opportunity, likely benefits, possible solutions, costs, technology needs, and the expected impact on the operational platforms and groups, infrastructure, and capabilities;
• check for overlap, synergy, or conflict with other projects in progress or capabilities in use;
• scope and plan the work content for the remaining stages of the project.

Remember, this is only an initial assessment; do not run ahead of yourself by working to too much detail. Think in ranges, rather than absolutes. For example, “this project will cost between £75,000 and £200,000, take four to eight months, with cost savings of the order of £100,000 to £200,000 per year”.

Key deliverables

The initial business case contains the business rationale for the project. It is the document which outlines WHY you need the project, WHAT options you intend to work on, HOW you will do it, and WHO is needed to make it happen. It also answers the question HOW MUCH? and hence is used to authorize the funding for at least the next stage of the project. The initial business case does not comprise a full analysis, but only sufficient detail to enable you to decide if continuing the project is worthwhile. The full business case, which is completed in the next stage, will provide the definitive appraisal for the project. The initial business case includes:

• a preliminary assessment of the financial aspects of the proposed development;
• a definition of the project which would be required to meet these, including an outline of the requirement in terms of customer/user “feel”, technology, commercial, market needs and desired outcomes. There may be a number of options at this point in time;
• a description of how the project will be organized in terms of roles and governance.

The initial business also enables the evaluation of the project against the existing strategies and goals of the company to confirm its fit and determine if it is likely to be viable in business, technical, operational, and customer terms.

The project plan is a key appendix to the initial business case and defines the schedule, cost and resource requirements for the project. This is defined in summary to completion of the project and in detail for the detailed investigation stage.

Table 7.1 Key deliverables plan

Process steps

Initial investigation gate. This gate is the point when a decision is made as to whether an initial investigation (business, technical, marketing, and operational) should be undertaken and if there are resources to do it. If the Proposal is authorized, the initial investigation stage is started. See checklist in Workout 6.1.

1. The appointed project manager engages the study team, registers the project, ensures a project account has been opened and informs all relevant stakeholders of stage entry (see Chapter 17).
2. The team, led by the project manager, undertakes the initial investigation, confirming the need for the project, objectives, and strategic fit. The team will also develop possible solutions to meeting the needs and requirements laid out in the proposal. The project manager agrees the outcome and recommendations with the project sponsor. You might find Workout 19.2 (Transfiguration) and Workout 24.1 (Resolving issues – from breakdown to breakthrough) helpful here.
3. The team defines the project and prepares the project plan, in detail for the next stage and in outline beyond. The potential resource needs should be discussed and agreed with the relevant function managers.
4. The project manager, with the team members, prepares the initial business case.
5. The initial business case, including the project plan, is reviewed by the project sponsor and any other relevant stakeholders. It is either accepted, rejected, deferred, or amendments are requested.

The initial business case is submitted for gate authorization for the detailed investigation gate.

Figure 7.1 Steps in the initial investigation stage

Workout 7.1 - Checklist for starting the detailed investigation stage

Business need and strategic fit

• Does the project fit the strategy?
• Is the business opportunity attractive?
• Are the risks acceptable?

Deliverables

• Is the initial business case and investment appraisal acceptable?
• Is there a detailed schedule, resource, and cost plan for the Detailed Investigation Stage?
• Is there an outline schedule, resource, and cost plan for the full project?
• Have all the relevant business units and functions been involved in creating and reviewing the deliverables?

Health check!

• Has a project “health check” been done and been found acceptable (see Workout 27.1)?

Accountabilities

• Has a project sponsor been identified for the project?
• Has a project manager been identified for the project?
• Do you have the resources to undertake the detailed investigation stage?

Operational and technical

• On current knowledge, is it technically feasible with existing technology, or is there a likely technical development path to provide the capability or service?
• Does the organization currently have the operational capability to support it? If not, is it likely this can be put in place?

Health check scores

Issues

Risk

Executive action