© 2002 Elena Fawkner

"... ALWAYS carry out your own due diligence! Remember, if it sounds too good to be true, it probably is."

Regular readers will recognize above language. It comes from "Caveat Emptor" section which appears towards end of each issue of A Home-Based Business Online.

Good advice to be sure (even if I do say so myself). But what does "due diligence" mean and how do you do it? Basically, it means to be diligent in researching your proposed business opportunity so you can be as sure as you can be what you're getting into and why.

All very well and good, but how do you actually do it effectively?

Stock-standard advice includes:

1. Check with BBB about whether your opportunity has any complaints filed against it.

2. Do a Dun & Bradstreet search to find out about its credit history.

3. Check business references.

4. If practical, visit place of business.

Only one problem with this approach. Although it's a good start for researching a legitimate opportunity, it won't flush out a fraudulent one.

A newly formed company won't have any complaints filed against it with BBB. D&B won't be much help since scam artists will generally keep their trade creditors in good standing until immediately before they pull up stakes and vanish into night. Business references are invariably nothing but shills (associates of scammer paid for their recommendation services). And few potential purchasers living in New York are likely to travel to California just to lay eyes on so-called corporate headquarters of their opportunity. Even if they do, a serviced office gives just right professional impression.

So, how do you flush out a fraudulent business opportunity? Well, there's a hard way and there's an easy way. The hard way (which is oh so easy at time) is to fork over your money and then watch as it flies away. The easy way (which is oh so difficult at time, at least compared to just handing over your money) is to use your state's and/or FTC's disclosure laws for business opportunities (if available) and then methodically work through information available to you until you have enough information to make an intelligent decision.

There are 23 states in United States with business opportunity laws on their books. Most prohibit sales of business opportunities unless seller gives prospective purchasers disclosure documentation that has been filed with state. The 23 states are: California, Connecticut, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Nebraska, New Hampshire, North Carolina, Ohio, Oklahoma, South Carolina, South Dakota, Texas, Utah, Virginia and Washington. (See http://www.ftc.gov/bcp/franchise/netbusop.htm for links to more information.)

In addition, if business opportunity falls within definition of a franchise or is a vending machine or display rack opportunity, FTC's Franchise & Business Opportunity Rule mandates detailed disclosures such as identifying information about franchisor (the person offering business opportunity), franchisor's business experience, litigation history, bankruptcy history, initial funds required, recurring funds required, financial information about franchisor and much more . A franchise is defined broadly and just because it's not referred to as a franchise doesn't mean it isn't. See http://www.ftc.gov/bcp/franchise/16cfr436.htm for full text of Rule.

The point of all of this is that many, perhaps most, opportunities you'll come across will either fall within FTC's definition of a franchise and thereby trigger federal disclosure requirements (or, if franchise offer is made in California, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Washington or Wisconsin, state franchise disclosure requirements) or, if not technically a franchise, opportunity may very well fall within scope of state business opportunity disclosure laws of 23 states listed earlier. So, when considering a particular business opportunity, take this approach:

1. Determine whether it is being offered in one of 13 states with franchise disclosure laws. If so, determine whether opportunity is a franchise as defined under state's law. If so, check whether state requires disclosure document to be filed with state. If so, check whether it has been. If not, assume opportunity's a fraud until proven otherwise. If state in question doesn't require disclosure document to be filed with state and you're not provided with such a document from company when you ask for it, assume opportunity is a fraud until proven otherwise.

For Project Management, you can use armaments. You can kill with them, use them to help people, and you can manipulate situations with them. Nonetheless, there is a limit on what Extreme Project Manager (EPM) can carry.

Do not confuse armaments with tools. A weapon is used to contend against an opponent. A tool is used to complete a task. For example, Microsoft Project is a tool, while Change Control is a weapon. The EPM will use tool, and create weapon. However, only a few tools must be used at a time, otherwise you will overwhelm client, and your project staff.

One must always keep in mind that as a Project Manager your primary duty is to bring project in on time, and on budget. The operative word is to try, as we all know that above objectives are considered in realms of fiction in certain Project Management circles. But trying, and its precursor, intention of bringing project in time, certainly goes a long way in actually realizing those goals.

For example, Change Control requires forms to be filled out, information to be channeled interdepartmentally, control numbers to be assigned, scope creep data to be managed and tracked, and so forth. In other words, each weapon that you create will generate some extra work for project staff.

Many people are slightly taken aback by confrontational nature of Extreme Project Management. It really is not confrontational at all. In fact, it is designed to avoid confrontations before it is realized. It keeps EPM two steps ahead at all times of everybody else.

Change Control

Our first and most important weapon is Change Control. We will start with Change Management, as I am always fighting about it in virtually every project that I do. In Change Control, our primary objective is to combat scope creep. Scope creep is steady addition of requirements, which were not stated originally.

The process of Change Control starts with person making change. This person is usually on business side (or whichever side that owns/initiates project). The change initiator fills out a form, which is passed along to team lead of module/function being affected. Once change seems technologically feasible and makes business sense, it is passed along to project manager. At this point, team lead and Project Manager decide how much time should be added to project, or how much money should be added to budget to add necessary resources (or both).

Once this decision is made, project manager signs form and form is forwarded to person, who originally initiated change. The originator’s department then approves increase in resources, and change is created, by assigning it a control number.

There are some documents that power Change Control. The first is Change Control Form, which is created in MS Word. The form must have enough entries to identify change in detail, possible impact on technological and business sides, and spaces for remarks and signatures. The second piece of document is Change Control Tracking Database, which is created in MS Access. The database mirrors Ms Word form exactly. The database is updated every time a control number is assigned.

Issue Control

Issue Control is a bit simpler then Change Control. The Issue Control is charged primarily with Issue list. The Issue list is basically made up of defect that can be put aside for further discussion between stakeholders and EPM, for a latter date. Usually, non-critical defects, which do not make Change Control list, end up in Issue Control.