Project Initiation Document

What is Project Initiating?

In this post, you will study the process of strategically selection of projects, project portfolio process and various project selection models. You will learn about the project initiation in detail. You will get familiarized with the role of project sponsor in success of the project. Besides, you will get acquainted with the project charter. You will also study about the development of a project proposal. Finally, you will learn about effective project team, stages of team development and team dynamics.

In the previous article, you learnt about what are projects and briefly discussed what kind of people or organizations undertake project. Let's delve a bit deeper into this and understand where projects stand in the organization’s larger scheme of things.

In the organizational context, first a strategic decision is made. This decision is implemented by undertaking a project. The project is followed by operations and maintenance. After a certain period of time, the organization needs to upgrade the project, which will require strategic decision making again.

Let's understand this with the help of an example. Agile Project Initiation Checklist, Document

Strategic Decision: If you google the term 'Strategy', you will find that the word comes from a Greek word Stratagem, which means the art of devising plans or schemes to outwit an opponent in a war. It is how a general moves his troupes around in the battlefield to win the war.

Modern day business management is nothing less than a war (for that matter, it has always been). Numerous organizations are struggling to survive the onslaught of competitors, let alone the market dynamics, which are highly unpredictable due to interplay of factors, like statutory guidelines, rules, regulations and international competition.

To survive this onslaught and still be on top of the game, organizations keep on introducing new products or services, which distinguish them in the marketplace from other players or make them preferred supplier due to lower costs. For example, a phone company launches newer versions of phones or a car company launches newer models of cars with better features. Another example is a telecom operator offering free voice calls and reduced rate of data.

In both these cases, the companies have taken a strategic decision either to distinguish themselves from others or to become overall cost leader in the market. 

Project: Once the organization takes the strategic decision to introduce better products compared to the competitors or introduce services at a lower cost, it undertakes the project to implement this decision. (Remember the definition of project? It is a temporary endeavor undertaken to create unique product, service or result.)

The project team is given the requirements of this new product or service. They define the scope of work, timelines, costs etc. in coordination with the stakeholders. They work on the project to create this product, service or result.

Operations and Maintenance: Once the product is created, it is launched in the market. The operations group makes the product created by the project team in bulk, self’s them in the market, and generates the revenue. They need to perform operational and maintenance activities for making and maintaining the product or service.

Upgrade: After a certain point in time, the revenue generated from the sales or service deteriorates due to the launch of better products or services by competitors, change in the market conditions, etc. The customer no longer wants the product or service. At this juncture, the organization needs to rethink their strategy to get ahead of the competition.