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.