Chapter 4: Project Initiation
Learning Objectives
- Identify the activities required to initiate a project.
- Write project objectives – SMART.
- Discuss the purpose of the project charter.
- Design a project charter.
The project initiation phase is the first phase within the project management life cycle, as it involves starting up a new project. Within the initiation phase, the business problem or opportunity is identified, a solution is defined, a project is formed, and a project team is appointed to build and deliver the solution to the customer. A business case is created to define the problem or opportunity in detail and identify a preferred solution for implementation. The business case includes:
A detailed description of the problem or opportunity with headings such as Introduction, Business Objectives, Problem/Opportunity Statement, Assumptions, and Constraints
- A list of the alternative solutions available
- An analysis of the business benefits, costs, risks, and issues
- A description of the preferred solution
- Main project requirements
- A summarized plan for implementation that includes a schedule and financial analysis.
The project sponsor then approves the business case, and the required funding is allocated to proceed with a feasibility study. It is up to the project sponsor to determine if the project is worth undertaking and whether the project will be profitable to the organization. The completion and approval of the feasibility study triggers the beginning of the planning phase. The feasibility study may also show that the project is not worth pursuing and the project is terminated; thus the next phase never begins.
All projects are created for a reason. Someone identifies a need or an opportunity and devises a project to address that need. How well the project ultimately addresses that need defines the project’s success or failure.
The success of your project depends on the clarity and accuracy of your business case and whether people believe they can achieve it. Whenever you consider past experience, your business case is more realistic; and whenever you involve other people in the business case’s development, you encourage their commitment to achieving it.
Often the pressure to get results encourages people to go right into identifying possible solutions without fully understanding the need or what the project is trying to accomplish. This strategy can create a lot of immediate activity, but it also creates significant chances for waste and mistakes if the wrong need is addressed. One of the best ways to gain approval for a project is to clearly identify the project’s objectives and describe the need or opportunity for which the project will provide a solution. For most of us, being misunderstood is a common occurrence, something that happens on a daily basis. At the restaurant, the waiter brings us our dinner and we note that the baked potato is filled with sour cream, even though we expressly requested “no sour cream.”