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Project Management: Refine The Idea

September 11, 2007 | Author: PM Hut | Filed under: Implementing Project Management

Project Management: Refine The Idea (#1 in the series Small Business Project Management: Turning Great Ideas into Reality)
By Jeri Merrell

Refine the Idea is article 1 of 4 in a series on Small Business Project Management: Turning Great Ideas into Reality.

What happens when a great big gorgeous idea strikes? Ideas can galvanize business, drive brand recognition and revenue, and take us to the next level. How do we turn the idea into concrete reality? How do we nurture it, develop it, and manage it as a project, with a defined beginning, middle and end?

It occurred to me, as I was out to dinner a couple weeks ago at the Dahlia Lounge, a Tom Douglas restaurant, that every time he has a new idea he starts a restaurant. He has seven. A restaurant is such a tremendously expensive, risky, challenging operation to run! Those of us that live in the electronic world, trading in information, design and e-commerce for a living have it so much easier, and should count our blessings!

Getting your arms around an idea, doing the research and strategic development, and turning it into a project typically takes 20% of your project time & effort. It doesn’t happen overnight!

Nail it Down

Ask yourself some clarifying questions, first:

  • How does this idea fit into your business’s long term strategic plan? (You have one, don’t you?) For example, if you’re developing an e-book, does it support your business plan and fall within your core competencies? If it’s a stretch, do you need to revamp your idea – or expand your strategic plan?
  • How do you intend to spread the news about this new product, both during the project and after launching it?
  • Who is your target market? Can you support it within your existing marketing channels, or will you need to branch out? How will it build your brand?

Then figure out exactly what you’re going to build. Try to come up with some preliminary definition in terms of:

  • size of the product – is it bigger than a breadbox?
  • potential numbers served
  • intended audience
  • complexity and product function
  • product focus
  • risk involved in this initiative

If it’s an e-book, for example, you could identify that you’re anticipating 50,000 words, your intended audience is the home business owner, your book will be a formatted text file in PDF format served on a high volume web server, and that you’ll sell it using payment handling capabilities you’ll set up with your web hosting company. Write this all down, it’s the first part of your project charter.

Time and Money

How long do you think it will take to build, ballpark estimate? If you’re considering custom development, double (or triple!) your estimate, and make sure you consider your total cost of ownership – testing, bug fixing, support, and future updates.

What will it cost to pull your project together? Your time has value. It’s time you’re not spending generating immediate cash flow for your business, time away from your family or time stolen from sleep. If you’re buying materials, software, hardware, or external labor, then the cost goes up. Put together a brief, high level spreadsheet of your best guess on costs, and then add a contingency cushion of 25-33%.

How are you going to pay for this project? Do you have the cash flow to invest, and wait for the return, or will you need to seek financing? Either way, how long do you think it will take for the project to start repaying your investment? Big enterprise is patient, it can afford to wait 18-48 months. Small business and sole proprietors usually need much faster results.

Jeri Merrell, PMP, is an IT program manager for GCI, an Alaskan telecommunications company. She has worked in project management for the last ten years and her focus has been varied, exploring many facets of the industry: business process, product development, infrastructure, IP telephony, business intelligence and application development. She writes technology and business focused articles at http://www.ungeekit.com.

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