Tiering

Project Tiering is a common and defined method to categorize a project’s size. It considers several factors including complexity, cost, duration, risk, and degree of rigor needed in planning, managing, and controlling projects.

Project Tier (size) is a useful dimension in many ways.  Size helps inform the user about the complexity, risk, and degree of rigor needed in planning, managing and controlling projects. The size designation helps managers to assign work to project managers. For example, how many projects of a certain size can a project manager effectively manage?   Additionally, size provides guidance to determining the appropriate level of governance and oversight, the level of required reporting, the scope of project deliverables, and the degree of rigor necessary for managing the project.  Finally, by having a standard definition of project size, a common language is established for all constituencies.

These definitions guide project management activities and deliverables, reporting, and governance, and shouldn't be viewed as “hard-and-fast” rules.  Where there is more than one option, consider selecting the higher size.  

Tier /  Size

Scope / Risk

Estimated Duration

Budget (direct costs)

Operational Work 1

Repetitive processes / tasks

Ongoing & continuous

Integrated within fiscal year’s budget

Small

Simple

< 4 Weeks

< $50,000

Medium

Moderate

1 – 3 Months

$50,001 - $500,000

Large

Complex

3 – 12 Months

$500,001 - $1,000,000

Very Large

Very Complex

1+ Years

> $1,000,000

1-  Operational Work  - Repetitive processes involving the same general steps required to run the workgroup / business.

Exceptions:  Some projects don’t fit neatly into these definitions. For example a project to purchase / install a small application might be small in terms of scope and duration but the cost is > $50K with license charges. Assuming that the risk is low and scope is simple then this effort would be defined “Small”.  HUIT management will use their best judgment to ensure that the project size designation is appropriate for the level of management and control necessary to avoid undue risk.