Definition of a project

Project Management Framework provides processes and guidance for running projects. However, it can be difficult to determine whether some activities should be treated as a project or BAU.

There are varying opinions on what constitutes a project, this will assist you in your decision making about whether your business need should be run as a project or BAU. If you are unable to make the decision, then Enterprise Project Support (EPS) will help you to undertake an assessment of the initiative and make a recommendation on whether a project should be established, and the extent of governance and process to be applied.

So what is a Project and how is it different to BAU (Business As Usual)?

BAU (Business As Usual) is the work carried out by teams or individuals as part of their standard daily work practice whereas Projects are unique and temporary (definitive beginning and ending).

Key differences between BAU and Projects

• Projects change the business; BAU identifies the change
• Projects manage risks; BAU mitigates risks
• Projects are time bound; BAU is ongoing
• Projects can be capitalized; BAU often cannot be
• Projects involve cross-functional teams; BAU involves functional teams
• Projects are non-repetitive or unique; BAU are often repetitive

The PRINCE2 definition of a project is:

“A project is a temporary organisation that is created for the purpose of delivering one or more business products according to an agreed Business Case.”

While this remains the basis of a project definition, there are a number of factors to consider when deciding whether to apply the Project Management Framework to achieve a business outcome. In some cases, business as usual management is appropriate, as not all initiatives need to come under a structured project approach.

The following factors need to be considered when deciding whether to treat an activity as a project:

• Investment size
• Resourcing needs
• Duration
• Element of risk involved
• Certainty of requirements
• Complexity of solution

Each factor alone does not determine whether a project should be created. A combination of these factors needs to be considered. Therefore, parameters are applied to determine the size and extent of governance and process required to deliver the business need.

Summary

New business initiatives should be assessed in the early stages to determine whether they would benefit following a structured project process or whether they are better managed under normal line management. There is no one rule to fit all situations; however, the EPS will assist in this assessment and provide guidance on applying the appropriate process. If it is determined that a project should be initiated, the Project Management Framework should then be followed to seek endorsement to proceed with the project. The framework is adaptable to suit the different size and types of projects and will provide guidance on the level of governance and the required deliverables.

NOTE: If you would like to capture and track BAU activities for your Business Unit using SDZ, contact Enterprise Project Support at:

Email: eps@pmc.gov.au

Phone: 02 6179 3739

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