Project Management
2.3 Project Life Cycle
2.3.5 Decision Support Package
This package of documents is usually put together by the project manager and the project team, then it is presented to senior management to help them make decisions, as in Figure (2.1) to pro- vide green or red light to go to another stage of the project or stop the project. A decision will be made at every project gate in order to enter another stage, and this is very important after the feasibil- ity study and feed engineering phase. In order to define exactly the DSP and how to implement it, the following questions should be answered.
2.3.5.1 What is the DSP?
The Select Decision Support Package (Select DSP) is a compilation of key project information used to support decision-making at this gate. The decision to be made is generally whether or not to fund the Define stage of the project. Therefore, the DSP must accurately support the team's recommendation with particular emphasis on potential rewards and risks. The project should not progress through the gate to the next stage until the project team presents the Gatekeeper with the "key to the gate" — the Decision Support Package (DSP). This document should include information taken from the Select stage activities that is necessary for the Gatekeeper to review and approve the project for the next stage. A plan for the next stage incorporates the following:
• A clear set of expectations
• Signed SOR
• PEP (including project specific WBS)
• Conceptual factored Class 3 estimate
• Holistic risk assessment
• Exit strategy
• Output from applicable VIP
• Defined list of capital and manpower resources for the next stage
This decision should be aligned with the business goal, strategy, and objectives, and it must be determined based on the needs or deliverables of the appraise stage.
The DSP includes three major components: the Executive Summary, the DSP Notification Document, and the DSP Reference Document.
2.3.5.2 Executive Summary
The Executive Summary is a stand-alone document that provides an overview of the project. The executive summary may range from just one page to ten or more pages, depending on the size of the project. The Executive Summary includes:
• Project Overview (includes SOR)
• Business Case
• Decision & Risk Analysis
• Plan for Project and Next Steps 2.3.5.3 DSP Notification Document
The Notification Document provides a short formal written (or electronic) record summarizing the opportunities or options to be moved forward into the next stage, together with documentation addressing those opportunities or options that are being dropped.
It is intended to be shared with all stakeholders of the project.
2.3.5.4 DSP Reference Document
The Reference Document contains all other reference materials such as project schedule details, contract work scopes, etc., which have been succinctly presented in the Executive Summary. This docu- mentation is retained as reference material, and it isn't formally distributed outside of the project team.
2.3.5.5 Why Is It Important?
The Select DSP allows the Gatekeeper to make an informed deci- sion as to the next course of action in relation to any specific proj- ect, i.e., the key to the Define gate. It will provide information on the best identified project approaches and analyses concepts, and it will include prelim cost estimates to confirm project viability in line with the business strategy. In addition, one of the most important
uses of the DSP is to ensure that the right people are selected for the next stage of the project, even before you get to that stage.
Using information provided in the Select DSP, the Gatekeeper either:
• approves the project, giving the team the ability to pass through the gate to the next Select stage;
• defers the project, based on portfolio management;
• "kills" the project; or
• recycles the project.
Keep in mind that "recycling" a project back through a stage should be a rare occurrence, and it is not really a desired option. A recycled project often indicates a failure in communication between the Gatekeeper and the project team.
2.3.5.6 How Can We Implement this Document?
The Select DSP is a compilation of key project information used to support decision-making at this gate. This is a formal document that will be issued and presented to the Gatekeeper for review at the end of the Select Stage.
2.3.5.7 When Is the Reasonable Time?
The project should not progress through the gate to the next stage until the project team presents it to the Gatekeeper, who is usually the senior manager with the "key to the gate," which is the DSP.
This applies at all gate stages within project life cycle.
2.3.5.8 Who Is Responsible for this Document?
Single-Point Accountability (SPA) for the project, who is usually the overall project team leader, should deliver the Select DSP in line with Gatekeeper's expectations. They should be assisted where required by appropriate resources needed to provide overall proj- ect assurance as well as an increased involvement by the project teams. It is essential for the project's success that the correct team is formed to deliver the select deliverables and DSP. The select stage of the project should not proceed unless there is a clear business commitment to these deliverables through resource allocation and support. Project lifecycle commences at the beginning of select.