Capital Projects

3The Project FrameUnderstand the Opportunity before Starting a Project

A project starts with a frame. A project frame is a clear explanation of the opportunity or problem being solved, what the business hopes to accomplish with the opportunity, and the plan for moving forward. As more detail is added, the project frame evolves into the initial business case prepared at the end of the Assess stage.

The value of the project frame is that it forces you to stop and think before deciding the best way to take advantage of an opportunity. It guards against our first impulse to quickly jump to a solution and move forward once an opportunity has been identified. This push to move forward quickly is understandable. We get excited about projects. Opportunities have the promise of growth and profit. Solving problems will improve margins and make running the business easier.

A strong frame also helps you avoid an exercise in wishful thinking by examining several critical questions such as: How will we create value from this project? What competitive advantage do we have that enables us to offer a better product or service than our competition or offer the same product or service at a lower cost? If we cannot make a case that there is a basis for creating value, the opportunity should not be pursued.

A strong frame increases the chance of someone having that “aha!” moment when a new solution that will create a much higher-level value emerges. It also guards against that “oh crap!” moment ...