How to Build the Ultimate Project Management Plan (PMP)

A few weeks ago, we talked about the importance of having a well-defined project for your digital transformation (DX) initiative. Last week we covered the first deliverable required to achieve a well-defined project: the project charter. The project charter not only outlines the why behind the project by defining its goal and business success criteria, but also the agreed upon overall approach. Today we will be digging into the second deliverable required to achieve a well-defined project: a Project Management Plan (PMP).

If the project charter is the rudder of the ship, guiding it to its destination, the project management plan is the ship itself, delineating how it will travel from point A to point B. This encompasses everything from whether it will use sails or engines, what navigational methods it will use, or how many crew members are needed and the roles in which they will serve. It outlines the cargo capacity, what sort of supplies are needed, and how they will be managed to ensure they last. Simply put, it details everything needed to successfully complete the voyage.

In a digital transformation initiative, the PMP outlines how the project will be executed, such as how it will manage resources, teams, risks, costs and more. But more than that, it is a formalized agreement so that everyone understands, agrees, and is held accountable to the execution strategy. This helps ensure the project is successful by providing a clear plan of attack for all involved.

Project Management Plan (PMP): More Than Just a Document

The PMP is a detailed document outlining the plan for project execution. Please note that this document does not cover every detailed step of the project methodology; instead, it serves as a general outline and agreement on the execution strategy for key project activities. In the coming weeks, we will build each of these plans out in more detail, such as building the project budget, assigning the project team, and detailing the project plan and timeline. For now, we are simply focusing on how these aspects will be managed within the project.

Since the PMP is also a formalized agreement of key project processes, it is critical that all project sponsors understand and agree on each of the executional aspects delineated in the PMP, and then sign it. The project manager (PM) will hold the team and sponsorship accountable to the agreed upon plan for execution and will manage any changes that occur during the project.

Without a well-defined and agreed upon PMP, project team members may have different understandings of what is expected of them, especially if the sponsorship does not agree on the plan of execution. This can lead to confusion, delays, and conflicts within the team. When everyone is on the same page with a formalized agreement, it ensures that the project stays on track and allows for smoother execution, significantly increasing your odds for success.

13 Key Components of an Effective PMP

As stated above, the PMP encompasses all major executional aspects of the project. We will briefly cover 13 of the most common key components to a PMP, but this is by no means an exhaustive list. As you consider how to approach building a PMP for your DX project, make sure to include any aspect that details how the project will achieve the goals outlined within the project charter.

Human Resource Plan: Manning the Ship

The Human Resource Plan outlines the various teams that may be involved in the project, providing an overview of the human resourcing plan. Be sure to consider all facets of the project, such as design, testing, training, and management.

Additionally, consider the type of reporting relationship necessary within the management structure on the project: functional, projectized, or matrix. Each of these structures has its own advantages and disadvantages, and the choice of structure can depend on various factors such as the nature of the project, the size of the organization, and the resources available. It’s important to choose the right structure for your team as it can significantly impact the success of the project.

• Functional: This structure focuses on specialization and departmentalization to achieve efficiency and effectiveness. It is usually used in organizations with a flat hierarchy, where the project team is formed of different units or departments.
• Projectized: In this structure, the project manager has broad authority, and the team members work directly under the project manager. This structure is typically used in organizations where projects are their primary business.
• Matrix: This structure is a blend of functional and projectized structures. It allows for the sharing of resources across projects, which can lead to improved communication and increased project visibility.

Schedule Management Plan: Charting the Course

One of the core elements of a project is the project timeline. The schedule management plan outlines how the project timeline will be managed, including the parties in charge of managing it and the tools they will be using, such as Microsoft Project or Azure DevOps.

A schedule management plan is crucial, as there will inevitably be changes made to the timeline, and you will need a process to address those changes. Typically, this process begins with the project manager(s), who monitor deliverable or sprint completion and report progress on milestones and overall project completion. When timelines are not being met and a schedule change is needed, this information is usually reviewed in a steering committee for final review and approval.

The Implementation Methodology: Taking the Helm

Digital transformation best practices ensure that your business solution will be assessed, designed and implemented in a way that will effectively achieve your business objectives. For instance, a general best practice is to follow the same consistent implementation approach for certain project types such as ERP implementations. Your Implementation Methodology will outline the key steps of the execution, as well as any areas of emphasis depending on the traits of your project.

While there are implementation best practices for DX initiatives, every project will require a tailored approach. This Implementation Methodology takes into account the project’s traits such as size and scope, the key steps of the implementation, as well as certain aspects of the process that require greater emphasis, as outlined in the project charter’s project approach.

The need for a balanced approach is why Victoria Fide’s proven Process for Transformational Success combines implementation best practices with the flexibility of a customized approach. This enables us to ensure that any organization who adheres to our process will reach their business goals, regardless of their DX initiative.

Requirements Management Plan: Mapping the Requirements

Business requirements are the foundation for your DX solution. However, without a clearly defined plan for defining, reviewing and approving requirements, your project could be at risk of scope creep or significant changes late in the implementation. Poorly managed requirements often result in delays and budget overruns.

The Requirements Management Plan outlines a consistent process for defining and managing project requirements, including how they will be reviewed and approved as more information comes to light. This plan should also include a prioritization method to ensure that resources are allocated appropriately and aligned with the project goals.

Project Communications Management Plan: Signaling the Crew

The importance of clear communication in DX projects cannot be overstated. An effective project Communications Management Plan ensures all project team members understand the process and their role in it.

Your communication plan should outline these 5 elements:

• Type of communication (email, meeting, report, collaboration space for file sharing, such as SharePoint, Slack, or Teams)
• Purpose
• Leader/organizer
• Audience
• Frequency

Since there are likely to be many different departments and types of roles involved in the project, your communication plan will ensure that the right people have the right information at the right time. This can prevent information overload and save valuable time.

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Transformation is not easy, but it doesn’t have to be impossible. Take control of your project’s success today and schedule a free 30-minute consultation to find out how Victoria Fide can equip you for transformational success.

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Scope Management Plan: Adjusting the Sails

In every project, there are a multitude of forces attempting to expand the scope of the project, which means managing scope is a critical piece of any project. While we talked about defining scope in a previous article, your scope management plan will outline your process for dealing with the inevitable requests for scope changes. This plan must take into account the validity of additional features while guarding against scope creep.

Sometimes you must adjust the scope to accomplish your project goal(s), just like a ship might need to adjust the sails to stay on course. However, attempting to take on too many or too drastic changes would be like trying to sail across the Pacific in a dinghy.

For smaller scope changes, the PM may be able to make an executive decision. However, for larger changes it may need to be reviewed further by the project sponsor or steering committee, depending on the significance and impact to the project.

Development Methodology: Plotting the Technical Course

Often, customizations or development will be required to build out the desired solution design. The Development Methodology section within your PMP will outline the methodology for both identifying gaps and documenting requirements for any customizations. Additionally, it will detail the process of recording essential information needed to develop tailored solutions aimed at bridging these gaps.

The Development Methodology section will need to include a process for reviewing, approving, testing, and deploying customizations. This process must be carefully designed to guarantee that the customizations not only meet all predefined requirements but also function seamlessly within the intended environment. Adhering to this process will significantly enhance the overall success and effectiveness of the solution.

Test Plan: Testing the Waters

Testing is a critical part of any implementation’s success. Most implementations should include multiple rounds of Business Simulation testing to validate the end-to-end process, as well as User Acceptance testing to identify any issues that would lead to non-compliance and low utilization of the new solution.

Your test plan should include the testing processes that will be used, the process for addressing and resolving major issues, and other key details that ensure stakeholders concerns are satisfied.

Cost Management Plan: Funding the Voyage

Your Cost Management Plan will determine how all costs associated with the project will be reviewed and approved. This is not your project budget, but rather a plan for how the budget will be built and managed.

As you create this plan, keep in mind all aspects of project cost, including software licenses for both the beginning of the project and ongoing as access to the systems may need to be purchased for more people.

Consulting services account for a large portion of implementation costs, from vendor consulting resources, staff augmentation resources, project managers, solution architects, and a trusted digital transformation advisor.

Additionally, consider costs associated with development, travel expenses, and employee morale budget, as well as any other relevant areas for your project. This Cost Management Plan will help keep your project on budget while prioritizing resources and purchases effectively.

Risk Management Plan: Navigating Troubled Waters

The Risk Management Plan defines how risks will be tracked and reported. It is necessary to outline expectations for how the risks will be addressed with a risk mitigation plan. Additionally, this plan will outline key elements such as impact and priority (low, medium, and high) as well as the area of impact – the cost, schedule, or performance.

The Risk Management Plan should also include a process for reviewing and updating the plan as new risks arise or existing ones shift in priority or impact. It is important to regularly review the Risk Management Plan to ensure that the project team is aware of potential risks and has strategies in place to mitigate them. This type of communication and transparency are essential when it comes to managing risks in a DX project.

Quality Management Plan: Ensuring a Smooth Voyage

The Quality Management Plan clearly lays out what needs to be met at each milestone before moving on to the next step in the project. This eliminates any confusion about expectations and ensures that the project team is on track to deliver a high-quality outcome.

A good Quality Management Plan will have at least three to four milestones on a moderately complex project. At each milestone, there will be a checklist of several items that need to be completed prior to advancing to the next step in the project.

Here are some examples of project milestones and relevant checklist items:

Design Completion Checklist:

• All processes identified
• All identified requirements have been reviewed and approved by the business process owner (BPO)

Begin Business Simulation Testing Checklist:

• Business process scenarios are fully defined and configured
• Systems and needed integrations are ready
• System configuration has been completed and validated by business process owners and subject matter experts based on known requirements

Go Live Checklist:

• No critical or important bugs
• All test cases pass
• Data migration and cutover testing complete

An achievable, clearly delineated Quality Management Plan can help prevent rework by ensuring critical requirements are met before proceeding to the next stage. It will also communicate to project sponsorship and stakeholders if the project is on track to fulfill the business objectives, or if it is at risk of falling behind.

Stakeholder Management Plan: Leveraging the Officers

Stakeholder or sponsor engagement plays a huge role in the success of any project. The Stakeholder Management Plan establishes a consistent process for keeping key stakeholders up to date on the project’s progress. This allows them to provide guidance in addressing roadblocks or making critical decisions about the state of the project, ensuring the project keeps moving forward.

An effective Stakeholder Management Plan will generally include a strong project sponsor that can assist in addressing roadblocks, combined with a project governance or steering committee with proper oversight.

This plan will address how these individuals will be involved in the project, maximizing their time and expertise to ensure successful project delivery. It will also establish clear communication channels to keep stakeholders informed and engaged throughout the project’s duration.

Organizational Change Management Plan: Engaging the Crew

Organizational Change Management (OCM) plays a pivotal role in project success by focusing on the human elements—individuals and teams—and strategizing ways to maximize user adoption while minimizing resistance. This plan sets clear expectations for navigating Organizational Change Management throughout the transformation to ensure a smooth implementation.

In addition to mitigating resistance, OCM can help drive adoption by identifying opportunities for additional training or communication. This plan should also outline a process for measuring the effectiveness of OCM efforts throughout the project and making adjustments as needed.

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Smooth Sailing: Leveraging a Comprehensive PMP for DX Success

The successful execution of a Digital Transformation (DX) project is contingent upon comprehensive planning across various dimensions. The project management plan (PMP) is a document that outlines the plan for all the executional aspects of the project, essentially answering the question of how the project will unfold.

More than just a document, however, the PMP is a formalized agreement signed by all relevant leadership and sponsorship, ensuring they understand and agree to the defined approaches. Having these conversations up front and reaching agreement before project kickoff will facilitate collaboration, efficiency, and accountability, driving project success.

Keep in mind that these plans are not static and should be reviewed and updated regularly by the PM throughout the project to ensure they align with changing circumstances and evolving needs.

Ultimately, the PMP will act as a ship which will carry you through your project execution and help you navigate the unpredictable waters of digital transformation. By carefully considering each of these elements of a PMP, you will be better prepared to address any unexpected changes or challenges that may arise during the project’s execution.

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