Project Management

iterations are often tied to key decision points and result in the

creation of different versions of the plan at different levels of

detail and precision.

As Figure 6-1 shows, the first version of the project plan

occurs before the project (as most people know it) has been

defined. In this version, estimates of cost and schedule are rela-

tively crude and are established with little knowledge of the

specifics of the project. It’s done primarily for the purpose of

allocating funds to an effort that will be listed in an organiza-

tion’s annual operating budget.

The next version of the project plan is created when the

organization is prepared to initiate a project represented in its

operating budget. Sufficient planning must be done so that it

can be formally decided whether or not the project is an invest-

ment worth funding. (Chapter 4 dealt extensively with this initia-

tion phaseof the project.)

If the project proposal is approved, the next version of the

plan emerges. A detailed plan is created that the project team

will use as a guide for implementation and that you will use to

evaluate progress and maintain control. Many of the planning

tools and techniques used during this stage of the project are

covered in this chapter.

I like to refer to the next stage in the evolution of the project

plan as continuous replanning. As the team executes the proj-

ect, change will occur. Actual results will inevitably be different

from what was expected at the outset of the project, so you’ll

need to make ongoing course adjustments. These continual

changes should be reflected in slight modifications to the plan.

100 Project Management

Version 1
Budgetary
Plan

Version 2

Appropriation

Plan

Version 3

Control

Plan

Version 4

Continuous

Replanning

Version 5

Punch List

Plan

Budget Line

Item Created

Project

Approved

Project

Execution Begins

Project Nears

Completion

Project

Completion

Figure 6-1. The evolution of project plans