Understanding the Scope Triangle

You may have heard of the term “Iron Triangle.” It refers to the relationship between Time, Cost, and Scope. These three variables form the sides of a triangle and are an interdependent set. If any one of them changes at least one other variable must also change to restore balance to the project. That is all well and good, but there is more to this triangle.

The following five constraints operate on every project:

• Scope
• Quality
• Cost
• Time
• Resources

These constraints form an interdependent set — a change in one constraint can require a change in one or more of the other constraints in order to restore the equilibrium of the project. In this context, the set of five parameters form a system that must remain in balance for the project to be in balance. Because they are so important to the success or failure of the project, each parameter is discussed individually in this section.

Scope

Scope is a statement that defines the boundaries of the project. It tells not only what will be done but also what will not be done. In the information systems industry, scope is often referred to as a functional specification. In the engineering profession, it is generally called a statement of work. Scope may also be referred to as a document of understanding, a scoping statement, a project initiation document, or a project request form. Whatever its name, this document is the foundation for all project work to follow. It is critical that the scope be correct. Chapter 3 describes exactly how this should happen in its coverage of Conditions of Satisfaction (COS).

Beginning a project on the right foot is important, and so is staying on the right foot. It is no secret that a project's scope can change. You do not know how or when, but it will change. Detecting that change and deciding how to accommodate it in the project plan are major challenges for the project manager.

Quality

The following two types of quality are part of every project:

• Product quality — The quality of the deliverable from the project. As used here product includes tangible artifacts like hardware and software as well as business processes. The traditional tools of quality control, discussed in Chapter 3, are used to ensure product quality.
• Process quality — The quality of the project management process itself. The focus is on how well the project management process works and how it can be improved. Continuous quality improvement and process quality management are the tools used to measure process quality. These are discussed in Chapter 15.

A sound quality management program with processes in place that monitor the work in a project is a good investment. Not only does it contribute to client satisfaction, but it helps organizations use their resources more effectively and efficiently by reducing waste and revisions. Quality management is one area that should not be compromised. The payoff is a higher probability of successfully completing the project and satisfying the client.

Cost

The dollar cost of doing the project is another variable that defines the project. It is best thought of as the budget that has been established for the project. This is particularly important for projects that create deliverables that are sold either commercially or to an external customer.

Cost is a major consideration throughout the project management life cycle. The first consideration occurs at an early and informal stage in the life of a project. The client can simply offer a figure about equal to what he or she had in mind for the project. Depending on how much thought the client put into it, the number could be fairly close to or wide of the actual cost for the project. Consultants often encounter situations in which the client is willing to spend only a certain amount for the work. In these situations, you do what you can with what you have. In more formal situations, the project manager prepares a proposal for the projected work. That proposal includes an estimate (perhaps even a quote) of the total cost of the project. Even if a preliminary figure has been supplied by the project manager, the proposal allows the client to base his or her go/no-go decision on better estimates.

Time

The client specifies a time frame or deadline date within which the project must be completed. To a certain extent, cost and time are inversely related to one another. The time a project takes to be completed can be reduced, but costs increase as a result.

Time is an interesting resource. It can't be inventoried. It is consumed whether you use it or not. The objective for the project manager is to use the future time allotted to the project in the most effective and productive ways possible. Future time (time that has not yet occurred) can be a resource to be traded within a project or across projects. Once a project has begun, the prime resource available to the project manager to keep the project on schedule or get it back on schedule is time. A good project manager realizes this and protects the future time resource jealously.

Resources

Resources are assets such as people, equipment, physical facilities, or inventory that have limited availabilities, can be scheduled, or can be leased from an outside party. Some are fixed; others are variable only in the long term. In any case, they are central to the scheduling of project activities and the orderly completion of the project.

For systems development projects, people are the major resource. Another valuable resource for systems projects is the availability of computer processing time (mostly for testing purposes), which can present significant problems to the project manager with regard to project scheduling.

Envisioning the Scope Triangle as a System in Balance

The major benefit of using the scope triangle shown in Figure 1-1 instead of the three-variable Iron Triangle can now be discussed. Projects are dynamic systems that must be kept in equilibrium. Not an easy task, as you shall see! Figure 1-1 illustrates the dynamics of the situation.

Figure 1-1: The scope triangle

The geographic area inside the triangle represents the scope and quality of the project. Lines representing time, cost, and resource availability bound scope and quality. Time is the window of time within which the project must be completed. Cost is the dollar budget available to complete the project. Resources are any consumables used on the project. People, equipment availability, and facilities are examples.

The project plan will have identified the time, cost, and resource availability needed to deliver the scope and quality of a project. In other words, the project is in equilibrium at the completion of the project planning session and approval of the commitment of resources and dollars to the project. That will not last too long, however. Change is waiting around the corner.

The scope triangle offers a number of insights into the changes that can occur in the life of the project. For example, the triangle represents a system in balance before any project work has been done. The sides are long enough to encompass the area generated by the scope and quality statements. Not long after work begins, something is sure to change. Perhaps the client calls with an additional requirement for a feature that was not envisioned during the planning sessions. Perhaps the market opportunities have changed, and it is necessary to reschedule the deliverables to an earlier date, or a key team member leaves the company and is difficult to replace. Any one of these changes throws the system out of balance.

The project manager controls resource utilization and work schedules. Management controls cost and resource level. The client controls scope, quality, and delivery dates. Scope, quality, and delivery dates suggest a hierarchy for the project manager as solutions to accommodate the changes are sought.

Prioritizing the Scope Triangle Variables for Improved Change Management

The critical component of an effective project management methodology is the scope management process. The five variables that define the scope triangle must be prioritized so that the suggested project plan revisions can be prioritized. Figure 1-2 gives an example.

Figure 1-2: Prioritized scope triangle variables

A common application of the prioritized scope triangle variables occurs whenever a scope change request is made. The analysis of the change request is documented in a Project Impact Statement (PIS). If the change is to be approved, there will be several alternatives as to how that change can be accommodated. Those alternatives are prioritized using the data in Figure 1-2.

Applying the Scope Triangle

There are only a few graphics that I want you to burn into your brain because of their value throughout the entire project life cycle. The scope triangle is one such graphic. It will have at least two major applications for you: as a problem escalation strategy and as a reference for the Project Impact Statement, which is created as part of the scope change process.

Problem Resolution

The scope triangle enables you to ask the question, “Who owns what?” The answer will give you an escalation pathway from project team to resource manager to client. The client and senior management own time, budget, and resources. The project team owns how time, budget, and resources are used. Within the policies and practices of the enterprise, any of these may be moved within the project to resolve problems that have arisen. In solving a problem, the project manager should try to find a solution within the constraints of how the time, budget, and resources are used. They do not need to go outside of their sphere of control.

The next step in the escalation strategy would be for the project manager to appeal to the resource managers for problem resolution. The resource manager owns who gets assigned to a project as well as any changes to that assignment that may arise.

The final step in the problem escalation strategy is to appeal to the client. They control the amount of time that has been allocated to the project. They control the amount of money that has been allocated. Finally, they control the scope of the project. Whenever the project manager appeals to the client, it will be to get an increase in time or budget and some relief from the scope by way of scope reduction or scope release.

Scope Change Impact Analysis

The second major application of the scope triangle is as an aid in the preparation of the Project Impact Statement. This is a statement of the alternative ways of accommodating a particular scope change request of the client. The alternatives are identified by reviewing the scope triangle and proceeding in much the same way as discussed in the previous paragraph. Chapter 6 includes a detailed discussion of the scope change process and the use of the Project Impact Statement.