What is Project Initiation Phase & How to Start a Project? Key Components & Examples - AIMS UK

Summary

This script discusses the initiation of projects, emphasizing the importance of recognizing a need, securing funds, and having a strong will for success. It outlines the seven common reasons projects arise, such as market demand and social needs. Feasibility studies are highlighted as crucial for project viability, and project selection methods, including mathematical models and benefit measurement methods, are explained. The script also details the creation of a project charter, which formalizes a project's existence and objectives, and the identification of stakeholders, including their analysis and management strategy.

Takeaways

• 🚀 **Project Initiation**: Recognizing the start of a new project or phase and committing resources.
• 💡 **Project Justification**: Projects are initiated due to market demand, strategic opportunity, business need, customer requests, technological advance, legal requirement, ecological impact, or social need.
• 📈 **Measuring Value**: It's more important to roughly measure significant value (like gold) than to precisely count minor value (like pennies).
• 💼 **Criteria for Projects**: Key criteria include identified need, available funds, and strong will for success.
• 🔍 **Feasibility Studies**: Conducted to assess the viability of a project before starting, ideally by a separate team from the project implementers.
• 🛠️ **Project Selection Methods**: Used to decide among alternative projects and evaluate their tangible benefits, including market share, financial benefits, customer loyalty, and public perception.
• 📊 **Mathematical Models**: Also known as constrained optimization methods, used for complex projects requiring specialized backgrounds.
• 📋 **Benefit Measurement Methods**: More commonly used for project selection, including cost-benefit analysis, scoring models, and various cash flow techniques.
• 📜 **Project Charter Development**: The first document of a project, acknowledging its existence, authorizing it, and documenting initial requirements.
• 👤 **Identifying Stakeholders**: A process involving analysis and expert judgment to understand who might be affected by the project and their potential influence.

Q & A

What is the significance of project initiation?

Project initiation is the formal recognition that a new project or the next phase in an existing project should begin, and it involves committing resources to the project. It is triggered by a need, demand, opportunity, or problem.

What are the important criteria for determining the value of a project?

The important criteria for projects include the existence of a need for the project, availability of funds, and a strong will to make the project succeed.

Why is it important to measure needs and demands in project initiation?

Needs and demands represent opportunities, business requirements, or problems that need solving. Management must decide how to respond to these based on the project's potential impact and value.

According to PMBOK, what are the seven needs or demands that can lead to a project?

The seven needs or demands that can lead to a project according to PMBOK are market demand, strategic opportunity, business need, customer requests, technological advance, legal requirement, ecological impact, and social need.

What is the purpose of conducting a feasibility study before starting a project?

A feasibility study is conducted to determine whether the project is viable or not. It helps in assessing if the project can be successfully completed within the given constraints and if it aligns with the organization's goals.

Why should feasibility studies not be conducted by the same people who will work on the project?

Feasibility studies should not be conducted by the same people who will work on the project to ensure objectivity and to avoid potential bias that could influence the outcome of the study.

What are the two categories of project selection methods?

The two categories of project selection methods are mathematical models, also known as constrained optimization methods, and benefit measurement methods, also called decision models.

What is the role of a project charter in a project?

The project charter is the first official document for a project. It formally authorizes the project or phase, documents the initial requirements, and establishes a partnership between the performing organization and the requesting organization or customer.

What are the typical inputs used to develop a project charter?

The typical inputs used to develop a project charter include the project statement of work, business case, contract, enterprise environmental factors, and organizational process assets.

What is the primary tool used in developing the project charter?

The most important tool used in developing the project charter is expert judgment, which relies on individuals or groups with specialized knowledge or skills in the areas being assessed.

What are the key components that the project charter should document?

The project charter should document the project purpose or justification, high-level project description, high-level project requirements, measurable project objectives, high-level risks, summary milestones schedule, summary budget, project approval requirements, and the assigned project manager and project sponsor.

How are stakeholders identified in a project?

Stakeholders are identified through a process that involves analyzing the project charter, considering procurement documents, enterprise environmental factors, and organizational process assets. Stakeholder analysis and expert judgment are the main tools used for this process.

What should be included in a stakeholder management strategy?

A stakeholder management strategy should include the name of key stakeholders, their anticipated level of participation, stakeholder groups, assessment of impact, and potential strategies for gaining support.

Outlines

00:00

🚀 Project Initiation and Feasibility Studies

This paragraph discusses the commencement of a project, emphasizing the formal recognition of a new project's necessity and the commitment of resources. It highlights the importance of justifying projects, even when precise measurement is challenging. The criteria for initiating a project include a demonstrated need, available funds, and a strong intent for success. Needs and demands can stem from various sources such as market demand, strategic opportunities, or legal requirements. Feasibility studies are crucial before project initiation, assessing the project's viability, and should be conducted by a separate team to ensure objectivity. Project selection methods are also introduced, which help organizations decide among alternative projects based on factors like market share, financial benefits, and public perception. These methods can be mathematical models or benefit measurement methods, with the latter being more commonly used due to their comparative and analytical nature.

05:02

📜 Project Charter Development

The second paragraph delves into the creation of a project charter, which is the first official document of a project. It serves as a written acknowledgment of the project's existence and authorizes the project or its phase, outlining initial requirements to meet stakeholder needs. The paragraph explains that a project manager is typically identified early in the project's lifecycle, preferably during the development of the project charter. The inputs for creating a project charter include the project statement of work, business case, contract, enterprise environmental factors, and organizational process assets. The primary tool for developing the project charter is expert judgment, which relies on individuals with specialized knowledge or skills. The project charter includes several components such as the project purpose, high-level description, requirements, objectives, risks, schedule and budget summaries, approval requirements, and the assignment of a project manager and project sponsor. Additionally, the paragraph touches on the identification of stakeholders, their analysis, and the development of a stakeholder management strategy to manage their impact on the project.

Keywords

💡Project Initiation

Project initiation is the formal recognition that a new project or the next phase of an existing project should begin, and it involves the commitment of resources. In the context of the video, it marks the starting point of a project, driven by needs, demands, opportunities, or problems. The script mentions that it is often difficult to provide a strong justification for projects, but they are agreed to have high value, emphasizing the importance of starting a project with a clear understanding of its purpose and potential impact.

💡Needs and Demands

Needs and demands represent opportunities, business requirements, or problems that need to be solved. They are the driving forces behind the initiation of projects. The video script discusses how management must decide how to respond to these needs and demands, which can lead to the creation of a project. For example, a technological advance might create a need for a new project to leverage that technology.

💡Feasibility Study

A feasibility study is conducted to determine whether a project is viable or not before it starts. It can be a separate project, a sub-project, or the first phase of a project. The video script emphasizes that feasibility studies should be conducted by people who are not involved in the actual project work to ensure an unbiased assessment of the project's viability.

💡Project Selection Methods

These methods help organizations decide among alternative projects and determine the tangible benefits of choosing or not choosing a project. The video script explains that projects are usually selected based on criteria such as market share, financial benefits, return on investment, customer loyalty, and public perceptions. These methods are crucial for prioritizing projects and ensuring that the most beneficial ones are undertaken.

💡Mathematical Models

Mathematical models, also known as constrained optimization methods, use various types of programming like linear, dynamic, integer, nonlinear, and multi-objective programming. The script mentions that these models require an engineering, statistical, or mathematical background and are used for projects of enormous complexity. They are beyond the scope of the course, indicating their specialized nature.

💡Benefit Measurement Methods

These methods employ various forms of analysis and comparative approaches to make project decisions. The video script lists cost-benefit analysis, scoring models, and benefit contribution methods as examples. These methods are more commonly used than mathematical models for project selection because they are more accessible and easier to understand for a broader range of stakeholders.

💡Project Charter

The project charter is the first formal document for a project, acknowledging its existence and authorizing the project or phase. It documents the initial requirements that satisfy stakeholders' needs and expectations. The video script describes how the project charter establishes a partnership between the performing organization and the requesting organization or customer, and it is developed with inputs such as the project statement of work, business case, and enterprise environmental factors.

💡Expert Judgment

Expert judgment is the primary tool used in developing the project charter. It involves relying on individuals or groups with specialized knowledge or skills in the areas being assessed. The video script explains that these experts could be stakeholders, consultants, subject matter experts, or industry professionals, whose insights are critical in shaping the project charter and ensuring that it addresses the project's purpose and objectives effectively.

💡Stakeholder Analysis

Stakeholder analysis is a technique used to systematically gather and analyze information about stakeholders' interests, expectations, and influence. The video script describes how this analysis helps in defining the relationship of stakeholders to the project's purpose and in developing strategies to manage their impact. It is a crucial part of the project management process, ensuring that all relevant parties are considered and their needs are addressed.

💡Stakeholder Management Strategy

The stakeholder management strategy is a documented approach to minimize negative impacts or influences that stakeholders may have throughout the project's life. The video script outlines that this strategy includes identifying key stakeholders, assessing their level of participation, and developing strategies for gaining their support. It is an essential component of project planning, ensuring that the project team understands and manages the expectations and contributions of all stakeholders.

Highlights

Project initiation marks the formal recognition to begin a new project or phase and commit resources.

Projects often arise from needs, demands, opportunities, or problems, and are justified by their high value.

The saying 'measure gold roughly than to count pennies precisely' emphasizes the importance of projects over minor details.

Key criteria for projects include identified needs, available funds, and a strong will to succeed.

Needs and demands can represent business opportunities, requirements, or problems to be solved.

PMBOK identifies seven types of needs or demands that lead to projects: market demand, strategic opportunity, business need, customer requests, technological advance, legal requirement, ecological impact, and social need.

Feasibility studies are conducted to determine the viability of a project before starting it.

Feasibility studies should be conducted by a separate team from those who will work on the project.

Project selection methods help decide among alternative projects and their tangible benefits to the company.

Projects are selected based on criteria such as market share, financial benefits, return on investment, customer loyalty, and public perceptions.

There are two categories of project selection methods: mathematical models (constrained optimization methods) and benefit measurement methods (decision models).

Mathematical models are complex and require an engineering, statistical, or mathematical background.

Benefit measurement methods use analysis and comparative approaches like cost-benefit analysis, scoring models, and cash flow techniques.

The project charter is the first document of a project, acknowledging its existence and authorizing it.

A project manager is identified and assigned early in the project, preferably during the development of the project charter.

The project charter includes the project purpose, high-level description, requirements, objectives, high-level risks, schedule and budget summary, and approval requirements.

Inputs for developing a project charter come from the project's origin, such as the project statement of work, business case, contract, enterprise environmental factors, and organizational process assets.

Expert judgment is the primary tool for developing the project charter, relying on individuals with specialized knowledge or skills.

The project charter documents the business needs and customer requirements, including the project purpose, description, and measurable objectives.

The project charter also specifies the authority level of the project manager and project sponsor.

Identifying stakeholders involves analyzing their interests, expectations, and influence, and developing a strategy to manage their impact on the project.

Stakeholder management strategy includes the identification of key stakeholders, their anticipated level of participation, and strategies for gaining support.

Transcripts

initiating a project

project initiation is the formal

recognition that a new project or the

next phase in an existing project should

begin and resources should be committed

to the project a project may come about

as a result of a need demand opportunity

or problem determined needs and demands

it is often difficult to provide strong

justification for projects but everyone

agrees they have a high value it is

better to measure gold roughly than to

count pennies precisely these important

criteria for projects are as follows

there is a need for the project there

are funds available and there is a

strong will to make the project succeed

needs and demands represent

opportunities business requirements or

problems that need to be solved

management must decide how to respond to

these needs and demands according to the

PMBOK projects come about as a result of

one of the following seven needs or

demands market demand strategic

opportunity or business need customer

requests technological advance legal

requirement ecological impact and social

need

our second topic is feasibility studies

before starting a project a feasibility

study is conducted to determine whether

the project is viable or not it may be

conducted as a separate project a sub

project or as the first phase of a

project feasibility studies should not

be conducted by the same people who will

work on the project

project selection methods it helps

organizations to decide among

alternative projects and determine the

tangible benefits to the company of

choosing or not choosing a project

project selection methods are also used

to evaluate and choose between

alternative ways to implement the

project project are usually selected on

the basis of market share financial

benefits return on investment customer

loyalty and public perceptions

there are generally two categories of

selection methods mathematical models

which are also known as constrained

optimization methods and benefit

measurement methods are also called

decision models

mathematical models they are also known

as constrained optimization methods and

they use linear dynamic integer

nonlinear and/or multi objective

programming in the form of algorithms

mathematical models require an

engineering statistical or mathematical

background to fully understand they are

complicated mathematical formulas and

algorithms that are beyond the scope of

this course

organizations considering undertaking

projects of enormous complexity might

use mathematical modeling techniques to

make decisions regarding these projects

the vast majority of project selection

techniques use the benefit measurement

methods

benefit measurement methods they employ

various forms of analysis and

comparative approach is to make project

decisions these methods include

comparative approaches such as

cost-benefit analysis scoring models and

benefit contribution methods that

include various cash flow techniques and

economic models

developing project charter it is the

very first piece of document for a

project and a written acknowledgement

that the project exists it formally

authorizes a project or phase and

documents the initial requirements that

satisfy stakeholders needs and

expectations it establishes a

partnership between the performing

organization and the requesting

organization or customer in the case of

external projects a project manager is

identified and assigned as early in the

project as is feasible preferably while

the project charter is being developed

and always prior to the start of

planning

let's see how project charter is created

the input to developing the project

charter comes from the origin of the

project the possible input items to

develop a project Charter are as follows

project statement of work business case

contract Enterprise environmental

factors and organizational process

assets you take the available input and

apply the relevant tools and techniques

to develop the project charter the most

important tool used in developing the

project Charter is the expert judgment

output of the developed project charter

process is a formal document which is

called the project charter next we will

understand each of the following

components mentioned under input tools

and techniques and output tools and

techniques for developing the project

charter process expert judgment is the

only tool and technique in this process

the concept behind expert judgment is to

rely on individuals or groups of people

who have training specialized knowledge

or skills in the areas which you are

assessing these folks might be

stakeholders consultants subject matter

experts industry or other experts

project management office or technical

professional organizations the project

charter documents the business needs and

current customer requirements by

addressing the following factors project

purpose or justification it includes the

purpose of the project and the business

case for the project high-level project

description it includes the business

needs that the project addresses

high-level project requirements it is

based on the needs of the customer the

sponsor and other stakeholders

measurable project objectives it is

derived from the purpose section

high-level risks they are identified

during the project planning summary

milestones schedule it is a kind of

high-level schedule budget summary it is

the summary of project cost estimate

with some timeline project approval

requirements they include the name and

response

ability of the person or committee that

will approve and accept the project when

it is finished assigned project manager

it specifies the authority level of the

project manager and project sponsor it

includes the name an authority level of

the project sponsor who authorized the

project charter the inputs of

identifying stakeholders process are as

follows project charter it provides

information about internal and external

parties related to the project and

affected by the result or the execution

of the project for example project

sponsors customers team members groups

and departments participating in the

project procurement documents if a

project is the result of a procurement

activity or is based on an established

contract the parties in that contract

are key project stakeholders other

relevant parties such as suppliers

should also be considered as part of the

project stakeholders list enterprise

environmental factors it includes all

policies practices procedures and

legislation that exist both inside and

outside of the organization these

factors include company culture

organizational structure and

governmental or industry standards

organizational process assets these are

the range of templates contracts

registers assessment tools and

organizations knowledge based which most

organizations have developed to assist

in the management of the project tools

and techniques of the identify

stakeholders process there are two main

tools that are used to help identify

stakeholders the first is the

stakeholder analysis and the second is

expert judgment stakeholder analysis it

is the technique of systematically

gathering and analyzing qualitative and

quantitative information to determine

whose interest should be taken into

account

it defines the interest expectations and

influence of stakeholders and relate

them to the purpose of the project

stakeholder management strategy this is

the documented approach which is used to

minimize negative impacts or influences

that stakeholders may have throughout

the life of the project the elements

that should be included in the

stakeholder management strategy are as

follows name of key stakeholders who

could have a significant impact on the

project stakeholders anticipated level

of participation stakeholder groups

assessment of impact and potential

strategies for gaining support

you