Umm Al-Qura University

College of Business Department of Business Administration

[Project Management-5401479-3] [Ms. Faddia Aljhany]

The Contents

Chapter

Chapter2: Defining Your Project “Project Initiation” .

- Getting Started.
- Reviewing The Project Life Cycle “Phases”
- Project Management: The Process Context.
- Initiating Your Project.
- Project Proposals.
- Your Responsibilities as Project Manager in this phase.
- Who are All These People?
- Initiation Tools and Best Practices. “Practical Side”
- If Initiating isn’t Done Right!
- Common Challenges You Can Expect to Face.
- Knowledge Areas.
Ch2: Project Initiation PMC

CHAPTER2:
Project Initiation.

Project Management 2 ©FH

 Ch2: Project Initiation PMC

Chapter2: Defining Your Project.

1- Getting Started:
You’ve already got an understanding of the basic project life cycle, and we’ve just talked
through some of the underlying principles of project management. In this chapter, we’ll talk about the work that
comes before the project life cycle—finding possible projects, working out which projects are worth pursuing,
and getting to know the different groups of people who will be involved in any project. Finally, we’ll discuss
the process of actually initiating a project.

2- Reviewing The Project Life Cycle “Phases”:

Projects typically have identifiable phases and each phase has a unique set of challenges
for the project manager. If we view the project process from the highest level, four basic project phases
can be identified. Including “Initiation Phase, Planning Phase, Execution Phase, and Close-Out
Phase.”
During the first of these four phases, the Initiation Phase, the need is identified. An
appropriate response to the need is determined and described. (This is actually where the project begins.)
The major deliverables and the participating work groups are identified.
The team begins to take shape. Issues of feasibility (can we do the
project?) and justification (should we do the project?) are addressed.

Next is the Planning Phase, where the project solution is further

developed in as much detail as possible. Intermediate work products
(interim deliverables) are identified, along with the strategy for producing
them. Formulating this strategy begins with the definition of the required
elements of work (tasks) and the optimum sequence for executing them
(the schedule). Estimates are made regarding the amount of time and
money needed to perform the work and when the work is to be done. The
question of feasibility and justification surfaces again, as formal approval
to proceed with the project is ordinarily sought before continuing.

Project Management 3 ©FH

 Ch2: Project Initiation PMC

During the third phase, the Execution Phase, the prescribed work is
performed under the watchful eye of the project manager. Progress is continuously
monitored and appropriate adjustments are made and recorded as variances from the
original plan. Throughout this phase, the project team remains focused on meeting the
objectives developed and agreed upon at the outset of the project.
During the final phase, or the Close-Out Phase, the emphasis is on
verifying that the project has satisfied or will satisfy the original need. Ideally, the project
culminates with a smooth transition from deliverable creation (the project) to deliverable
utilization (the post-project life cycle). The project customer accepts and uses the
deliverables. Throughout this phase, project resources (the members of the project team)
are gradually re-deployed and the project finally shuts down.

3- Project Management: The Process Context.

Problems, needs, and opportunities continually arise in every
organization. Problems like low operational efficiency, needs like additional office space,
and opportunities like penetrating a new product market are just a few of a nearly endless
number of situations that management must address in the process of operating an
organization or company. These problems, needs, and opportunities give rise to the
identification of solutions. Executing those solutions entails a change for the
organization. Projects are generally established to carry out this change and there’s
always someone responsible for the successful completion of each project. As the project
manager, you are the primary change agent, and your guide for carrying out the change is
the project management process.

Project Management 4 ©FH

 Ch2: Project Initiation PMC

4- Initiating Your Project:

Project Initiation is the creation of project by the Project Manager that entails the
definition of the project's purpose, primary and secondary goals, timeframe and timeline
of when goals are expected to be met. The Project Manager may add additional items to
the project during the Project Initiation phase.
Now we’re ready to really get going with the project! So let’s look at why initiating your
project well is so important, and how you should go about it. We’ll also investigate some
of the tools and best practices for doing so. Also, Feasibility study can be part of this
phase in order to conduct all activities effectively. After collecting all needed information
from this phase the project manager can start creating the Project Charter.

What is a Feasibility Study? A Project Feasibility Study is an exercise that involves

documenting each of the potential solutions to a particular business problem or
opportunity. Feasibility Studies can be undertaken by any type of business, project or
What is a Project
team and they areCharter?
a criticalItpart
is the
ofspecial document,
the Project and the sacred reference for
Life Cycle.
professional project managers who do not accept to exercise their roles without it. A Project
Charter outlines the purpose of the project, the way the project will be structured and
A-The Purpose of Initiating
how it will be successfully implemented. The Project Charter describes the project
vision, objectives, scope and deliverables, as well as the Stakeholders, roles and
The purpose of the Initiating
responsibilities. The Projectphase is to
Charter is set
alsothe project
known as a up for success.
"Terms I often
of Reference" or argue that it
"Project Definition Report".
is the The
most important
purpose of thisphase of the
document project
to clarify thelife
needcycle,
of thesince,
projectif“Business
it’s neglected,
Case”, the results
clarified the objectives of the project and some of the general features of the project.
can be catastrophic. After all, the beginning of the project is the point at which you form
with the customer the contract (both formal and informal) that explains what will be
delivered, roughly how it will be done, and when it will be ready.
Project Management 5 ©FH
 Ch2: Project Initiation PMC

Initiating is also the best chance you’ll get to define success. At the very outset you can
agree on the project’s success criteria—key elements that need to be delivered for the
project to be successful. These criteria will then help guide you throughout the project.

B- The Process of Initiating

The process of project initiation is quite simple. Gather information about:
- Why the project is happening ! “Business Case”
- What needs to be delivered and how this will be done.
- Who will be involved ! the timings to which the project will be delivered.
Make sure to get input from all the key stakeholders. Summarize the why, what, how,
who, and when of the project into a Project Initiation Document !
Review the Project Initiation Document “Project Charter” with the project board and key
stakeholders to get their agreement. !
Hold a kickoff meeting to herald the start of the project, share the success criteria, and
plan going forward with the project team, board members, and key stakeholders. There
may well be a number of unfamiliar terms in that process explanation, but don’t worry
about that just now. We’re about to look at the different tools and best practices that will
help you get your project off to a flying start. The key point to take away from the
initiating process is that you should start the project with everyone on the same page, and
move forward towards a common, agreed goal.

- Initiating Process in details:

Step 1. Identify and frame the problem or opportunity. In this
phase, the fundamental need is identified. The need is then quantified
with respect to factors such as its size, shape, and extent. The true
need must be completely understood before attempting to define the
best solution. A significant number of project failures can be attributed to the phenomenon
of solution jumping. In simple terms, this occurs when you try to provide an answer and

Project Management 6 ©FH

 Ch2: Project Initiation PMC

understanding the question. This is a real possibility whenever the requirements are not
fully defined, and impulse— rather than a rational process—is used to determine the
project solution.
Step 2. Identify and define the best project solution. In Step 2, early determinations
should be made regarding which work groups should be involved. A team should be
formed to assist in this and all subsequent process steps. The team may use brainstorming
or similar creativity techniques to help identify alternative solutions.
Step 3. Identify task and resource requirements. Once the project solution is identified,
we’re ready to move to the next phase, which is to identify the task and the resource
requirements. Consideration should be given to the preferred methods for doing the work
and how much of the work will be done using internal resources.
Step 4. Estimate project costs and prepare a project budget. In this step, the project
manager coordinates the preparation of a cost estimate for the project. A variety of
methods may be used to estimate cost, depending upon the level of detail that exists at that
time. The overall project cost is allocated to individual elements of the project, thus
creating a budget for each major work element. This budget is used to monitor and control
cost expenditures during project execution.
Step 5. Analyze risk and establish stakeholder relationships. Once the project team has
identified the work, prepared the schedule, and estimated the costs, the three fundamental
components of the planning process are complete. This is an excellent time to identify and
try to deal with anything that might pose a threat to the successful completion of the
project. This is called risk management.
In risk management, “high-threat” potential problems are identified. Action is taken on
each high threat potential problem, either to reduce the probability that the problem will
occur or to reduce the impact on the project if it does occur. It is treated as a discrete step,
risk analysis should be a continuous process: you should be ever vigilant for threats to
your project’s success.

Project Management 7 ©FH

 Ch2: Project Initiation PMC

This is also a good time to identify all the project stakeholders and establish or
solidify relationships that will be maintained throughout the life of the project.

Light up:
5- Project Proposals.
Discovery: Finding the Projects
Project proposals are simple, short (usually single-page) documents that outline the
Projects don’t just spring from nowhere. Although many project managers only get
potential project,
involved whenprovide brief
it’s already background
been decided that information, identify
a project will be the to
undertaken value of undertaking
achieve
the project, andthere
some end, giveis,aofvery rough
course, estimate
a phase before of thediscovery.
this: resources (budget,
Discovery people,
is the time)
process by that
wouldwhich
be required to deliver
the organization the the
reviews project. Ideally,
available a project
opportunities andproposal is collected
decides which of them for each of
will become
the possible projects
projects, andin due
fromcourse.
this pool, the projects that are determined to have the
potential to deliver the greatest benefit to the organization are chosen. The project
proposal is a document that illustrates the value of completing the project and
recommending that the project be resourced.

1. Understand the project’s background. What problem does the problem solve? What
process does it affect?
2. Gain a clear explanation of the business value that the project will deliver. Why is
the project important to the organization?

Project Management 8 ©FH

 Ch2: Project Initiation PMC

3. Ascertain the expectations of the project’s timing, personnel, and budget. If, from
the outset, you can see that the project is hopelessly underfunded, or that the delivery
date is wildly optimistic, it will be better to deal with these concerns up-front rather than
coming to them later, when your wish to change these factors may be perceived as an
attempt to renege on the initial project agreement.

6- Your Responsibilities as Project Manager in this phase:

The most obvious responsibility is the one to the project. You’re

expected to meet the cost, schedule, functionality, and quality
targets. You must run the project efficiently. You also have a
responsibility to your organization. The project you’re managing is
expected to provide a tangible return to your organization. Yet
another responsibility you have to your organization relates to
information flow. This includes honest estimating, timely reporting
of status, and accurate forecasting. Proactively keeping
organizational management informed of project status and forecasts—good or bad—is one of
your more important responsibilities as a project manager, maybe even critical to your survival.
1- Identifying the Opportunities
There are many approaches to identifying opportunities, some of which are more
sophisticated than others, so let’s start by considering some of the basic tools that you’ll
probably already have come across. The most obvious option is a brainstorm. Get people
in the organization together, and ask them to think of anything that annoys them, anything
that could be done better, or things that aren’t being done yet that could be started.
2- Comparing the Opportunities
Once you have a list of opportunities that could be addressed, you then need to work out
which is the most important. You might want to start by identifying what benefit would
be generated if the process was fixed, the gap was filled, or the new service was created.

Project Management 9 ©FH

 Ch2: Project Initiation PMC

Would it reduce the amount of work for someone? Make the company more money?
Bring in new customers? Reduce risk in some way?
Typically, the reasons why a company decides to approach an opportunity are one—or a
combination—of the following benefits:
 To increase income (higher sales, new market, new service).
 To decrease costs (make it cheaper, faster, lower inventory).
 To improve productivity (same work done with less time/cost/people).
 To reduce risk (increase tax compliance, improve audit score)
Once you’ve identified what the benefit of each project is, you need to work out how big
that benefit will be. Ideally, you’ll want to be able to measure the benefit in numbers
somehow—whether it’s that someone can get 50% more invoices posted, that sales
increase by $50,000, that widgets now cost only ten cents, or that your accountants
smile for the first time in living memory.

3- Ranking and Choosing Opportunities to Pursue

Now that you have an idea of the available opportunities, and how much of a benefit
could be gained from addressing them, you need to work out which one to tackle. You
may have uncovered an opportunity that’s so big that you feel it’s imperative to go ahead
and deal with it immediately. More likely, however, is the eventuality that you’ll have a
number of options, and will need to decide which is the most important.

Project Management 10 ©FH

 Ch2: Project Initiation PMC

First, rank the opportunities in order of their potential benefits. Second, work out what a
project might entail in very, very rough detail—literally just a sentence or two
describing how you’d go about solving the problem. If you have no clue, the project may
well focus on researching and finding a solution that can, ultimately, be implemented!

Next, try to rank the projects in terms of which are easier or cheaper to complete.
Depending on your situation, the questions of ease and affordability may be of greater or
lesser importance. If people within your organization could be assigned to a given project,
you’re probably more concerned with how quickly they could make a difference. On the
other hand, if you’d have to pay a third party to come in and deal with the project, the
project’s cost may be a bigger issue. Having worked out where the greatest benefit can be
gained for the lowest cost, you can, in collaboration with the relevant stakeholders, pick a
project or two to proceed with determines how you will solve it, so it is critical that a
proper definition be developed.

Project Management 11 ©FH

 Ch2: Project Initiation PMC

Quick Review: A solid approach for getting your project off

the ground consists of faithfully following four basic steps.
1. Fully understand the problem or opportunity. Problems are ordinarily
complex, consisting of many aspects that require analysis and insight. There’s
frequently more to a problem than what’s apparent at first blush. We need to
invest an appropriate amount of time to fully understand all aspects of the
problem. Very often, what appears to be the problem is actually masking a
bigger, more fundamental problem. Uncovering that fundamental problem is
referred to as identifying the true need.

2. Identify the optimum solution. The solutions we identify through our initial,
might work to solve the problem—may not be the most effective. For many
problems, there are multiple solutions and various approaches for carrying them
out. The key to effective project management is to determine the best solution—
the one that’s most attractive to the organization. This requires some careful
thought and the development of criteria by which we can evaluate which
solution is “best.”

3. Fully develop the solution and a preliminary plan. When a solution is

identified, it’s typically characterized in one or two brief statements (install an
additional production line, for example). This solution statement must be
converted into a plan. The process begins with a full description of the solution,
including the methods for achieving it. It ends with the development of a credible,
detailed project plan that the team can use as a map for execution.

4. Formally launch the project. The activities involved in the formal initiation of
project execution depend on the organization’s specific project procedures.
Project launch activities may include preparing a business case, making formal
presentations to management, creating and approving a project charter, and
securing funding to proceed. It also should include team-oriented activities, such
as conducting a kickoff meeting and establishing mutual expectations between
you and your project team. Let’s take a closer look at each of the steps required to
properly define and launch a project.

Project Management 12 ©FH

 Ch2: Project Initiation PMC

osal for the project you’re about to undertake, and you’ve formed a better idea of what sort of

who will be affected by, and involved in, the project.

7- Who are All These People?

… and what are they doing on my project?
Even the smallest project can impact a number of people. As the project manager, you’re at the centre of
an intricate web of people who are bound together by their common interest in the project you’re
managing. Let’s meet the various people who are involved in any project, discuss the roles they play, and
explore how you can manage their participation.

Stakeholder:
Stakeholders are those people who hold a stake in the project—they’re people who care
about the project’s outcome. “Stakeholders” is really a catch-all term that can be used to
describe such disparate groups as senior management, end users of systems, customer
representatives, administrators, members of the local community, and union
representatives. Anyone who feels that the project might affect them could regard
themselves as a Stakeholder.
How then do you go about identifying stakeholders? And why would you want to do so in
the first place?
It’s important to identify your stakeholders so that you can understand their points of
view, and get an idea of the pressure they’ll try to exert on your project. The easiest
stakeholders to identify are those who are directly affected by the project. The
management of that team will also be affected, as will the IT staff who need to help make
the existing call-tracking system integrate with your new web site. And, of course, the
actual customers will be affected too—some of them may love the idea of reporting issues
via a web site, but others will be concerned that the change in technology will mean
slower, less personalized service.

Project Management 13 ©FH

 Ch2: Project Initiation PMC

Sometimes the most important stakeholders to worry about are those who are less
obviously linked to the project. Don’t get too hung up on identifying every possible
person who might care about your project, but do make the effort to involve those that are
obviously interested. Projects tend to get more complex as they continue, and more
people get involved, and understanding where any given person fits into the bigger picture
is important if you are to have a context for his or her input.

8- Initiation Tools and Best Practices. “Practical Side”

The project’s Initiation phase will be eased by the following key tools and practices.

The Project Initiation Document (PID)

It summarizes the what, how, when, and why of the project. It represents the agreement
between all parties on what the project is about and, importantly, why the project is being
undertaken. Although obviously some facets will change during the course of the project
(notably the details of how the project is achieved, the project’s timings, and the resources
available) the fundamentals of what the project is and why it’ll make a difference to the
organization should be pretty stable.
The Project Initiation Document needs to summarize:
- The project’s objective (what you’re trying to achieve)
- The key deliverables (how you’re going to achieve the objective)
- The overall rationale for the project (why you’re undertaking it)
- The initial timings (when it will be achieved)
- The project’s initial organization (who is involved)

Other elements that should be included in the initiation document are key assumptions and
constraints, and success criteria. You may also want to include high-level information

Project Management 14 ©FH

 Ch2: Project Initiation PMC

about the risk and quality management approaches you’ll use, although this detail is often
included in the project plan, rather than the PID.

The document should be agreed upon up-front with your project’s key stakeholders
(including the project sponsor and board), and should be referred to subsequently
throughout the project. Whenever you’re making difficult decisions about which changes
to the project’s scope or design should be accepted, referring to the project’s original
objectives and success criteria will prove invaluable.

Then comes the project objective. You’ll notice that this part is written to a particular
format that includes:
- an overall description of what the project’s about !
- a description of the key areas to be addressed !
- a definition of the specific business benefit that the project will realize !

Project Management 15 ©FH

 Ch2: Project Initiation PMC

This is a very useful format for describing objectives. You may find another standard
in use in your organization, though, and it’s often best to use the format that people
are familiar and comfortable with.

The next section of the PID identifies the project deliverables, it describes how you’re
going to achieve the objective. This description must necessarily be completed on a very
high level, because the project is just getting started—you haven’t done any detailed
planning yet. Here, you just need to give an idea of the biggest chunks of work to be
done. Try to make sure that no deliverable will take longer than a month to complete,
although—if you’re still looking at phases of three months or more, break those phases
into a little more detail.

Project Management 16 ©FH

 Ch2: Project Initiation PMC

Next, we come to the project timeline. If the project is one that you’re familiar with, you
might already have a good idea of rough timelines for the various phases as well as the
project overall. If you can, list the major deliverables against the week or month in which
they’ll be delivered.

Follow this advice, and you’ll drastically increase your chances of running a
successful project that makes a real difference!
1. Pick projects that are important to the organization and to its future.
2. Make sure that you have appropriate resources for your project—whether those
include people, equipment, or budget.
3. Include the people who are affected by, and interested in, your project in the
project itself—their inputs and opinions matter!
4. Set up a project board with the necessary members right at the beginning of the
project, not just when the difficult decisions need to be made.

Project Management 17 ©FH

 Ch2: Project Initiation PMC

5. Create a Project Initiation Document and review it with the project team,
board members, and key stakeholders.
6. Get your project started with a kickoff meeting, both to ensure the alignment
of stakeholder expectations, and get everyone enthusiastic about the project!
7. Create a communications plan that outlines who needs to be kept informed about
your project’s progress, and how you’re going to communicate with those people.

9- If Initiating isn’t Done Right!

You often end up in a situation where the project team members have very different ideas.
The Initiating phase provides an opportunity to ensure that everyone in the team is on the
same page from the start, and that misconceptions and conflicts are addressed, rather than
left to fester. Good initiation will also ensure that you identify all the project stakeholders
(all those who are involved, interested in, or affected by the project) up-front, which
avoids the likelihood that they’ll pop up at inopportune moments during the project!

10- Common Challenges You Can Expect to Face:

The Responsibility vs. Authority Trap The universal complaint from project managers is that they
have a lot of responsibility but no authority. Firmly embedded in project management folklore is this one: the
responsibility you’ve been given is not commensurate with the authority (or formal power) you believe you
need to accomplish the mission.
Imposition of Unrealistic Targets Sound project management practice suggests that project goals (cost,
schedule, quality, and functionality) should be determined through a systematic process of understanding
customer needs, identifying the best solution, and formal planning. Throughout this process, realistic
assumptions about resource availability, quality of materials, and work process (just to name a few factors)
should be used.
The Dual Responsibility Trap Most project managers I encounter are asked to wear two hats. They must
perform their job duties while acting as the project manager. A more fundamental problem of the dual
responsibility trap is figuring out how to divide your time and attention between the two roles.
The Fundamental Conflict of Certainty and Uncertainty.

Project Management 18 ©FH

 Ch2: Project Initiation PMC

13- Knowledge Areas

The Guide to the Project Management Body of Knowledge PMBOK® identifies nine
knowledge areas that project managers should be familiar with in order to be considered
professionals. These are as follows.

Project Integration Management

Project integration management ensures that the project is properly planned, executed, and
controlled, including the exercise of formal project change control. As the term implies, every
activity must be coordinated or integrated with every other one in order to achieve the desired
project outcomes.

Project Scope Management

Changes to project scope are often the factors that kill a project. Project scope management
includes authorizing the job, developing a scope statement that will define the boundaries of
the project, subdividing the work into manageable components with deliverables, verifying that
the amount of work planned has been achieved, and specifying scope change control
procedures.

Project Time Management

Project time management specifically refers to developing a schedule that can be met, then
controlling work to ensure that this happens! It’s that simple. Because everyone refers to this as
scheduling, it should really be called schedule management.

Project Cost Management

This is exactly what it sounds like. Project cost management involves estimating the cost of
resources, including people, equipment, materials, and such things as travel and other support
details. After this is done, costs are budgeted and tracked to keep the project within that budget.

Project Management 19 ©FH

 Ch2: Project Initiation PMC

Project Quality Management

As I have commented earlier, one cause of project failure is that quality is overlooked or
sacrificed so that a tight deadline can be met. It is not very helpful to complete a project on
time, only to discover that the thing delivered won’t work properly! Project quality
management includes both quality assurance (planning to meet quality requirements) and
quality control (steps taken to monitor results to see if they conform to requirements).

Project Human Resources Management

Project human resources management, often overlooked in projects, involves identifying the
people needed to do the job; defining their roles, responsibilities, and reporting relationships;
acquiring those people; and then managing them as the project is executed. Note that this topic
does not refer to the actual day-to-day managing of people. The PMBOK® Guide mentions that
these skills are necessary but does not attempt to document them. Given that these are the most
important skills that a project manager must have, the PMBOK® Guide is deficient in omitting
them.

Project Communications Management

As the title implies, project communications management involves planning, executing, and
controlling the acquisition and dissemination of all information relevant to the needs of all
project stakeholders. This information might include project status, accomplishments, and
events that may affect other stakeholders or projects. Again, this topic does not deal with the
actual process of communicating with someone. This topic is also mentioned but not included
in the PMBOK® Guide.

Project Risk Management

Project risk management is the systematic process of identifying, quantifying, analyzing, and
responding to project risk. It includes maximizing the probability and consequences of positive
events and minimizing the probability and consequences of adverse events.

Project Management 20 ©FH

 Ch2: Project Initiation PMC

Project Procurement Management

Procurement of necessary goods and services for the project is the logistics aspect of managing
a job. Project procurement management involves deciding what must be procured, issuing
requests for bids or quotations, selecting vendors, administering contracts, and closing them
when the job is finished.

---------------------------------------------------------------------

Project Management 21 ©FH