Initiating the

project
Applied Project Management

Shifaza Mohamed
MBA (Project Management)
Objectives
On successful completion of this module, you should be able to:

Define the steps and processes necessary to move the project

forward from a conceptual idea to a meaningful change
management project.

Develop an initial project charter for sponsor decision-making so

that more detailed investigations can be undertaken.

Develop business cases necessary to ensure the project is

consistent with the sponsors objectives and goals.

Define the scope and nature of the proposed project to allow more
detailed planning to take place for sponsor commitment.
Introduction
In this module, we examine the early stages of the project life cycle and
how initial conceptual projects for organizational change can be
developed and nurtured so that the end project and the final outcomes
are consistent with what the sponsor originally anticipated.

We look at the well-known processes defined in the Guide to the Project

Management Body of Knowledge (PMBOK Guide) (PMI 2013), and those
early outcomes that happen to be defined by different names in different
sectors or countries.

The preliminary project brief from the sponsor is articulated as a project

charter to ensure agreement in broad terms, and this charter
progressively develops through various iterations of business cases,
feasibility studies, viability studies, project management plans, etc.
The project management processes

Figure: Project
management process
interactions
Project management process
interactions
Business Case
From the earliest stage, preliminary business cases are
developed and expanded as information becomes available.
From these planning and evaluation stages, a final business case
is developed for final decision-making by the sponsor prior to
commitment to the project.
The final business case is further developed into a plan that is
suitable for implementation by the project team.
In this instance, no mention is made of a project management
plan (PMP), a project implementation plan (PIP) or a project
execution plan (PEP), so we see how different organisations can
develop their own language for dealing with the management of
projects. However this may take place, the principles and
processes generally remain similar.
The project charter
PMI (2008, p.45) suggests that the project charter is a
document that formally authorizes a project or a phase of
a project, and documents initial requirements that satisfy
the stakeholders needs and expectations.
There are no hard and fast rules on what constitutes a
project charter and this will vary from organization to
organization, from country to country, etc.
What is called a charter in one instance may be called a
project brief in another.
What is important is that all key stakeholders agree on the
need for processes and outputs, consistent terminology,
allocation of responsibilities, levels of authority, steps by
which projects can move from one phase to another, etc.
The business case
The Association for Project Management (APM)
suggests that the project business case provides
justification for undertaking a project, in terms of
evaluating the benefit, cost and risk of alternative
options and the rationale for the preferred solution.
Its purpose is to obtain management commitment and
approval for investment in the project. The business
case is owned by the (project) sponsor (Association for
Project Management 2006, p. 129).
The business case
The business case should provide the following details:-

What the project is?

Why it should be done?

What options have been considered?

How much will it cost?

How will it be done?

What are the risks?

(Source:http://www.capital.dhs.vic.gov.au/capdev/ProjectProposals/Strategic
BusCase/StrategicBus/).
Business case
The business case will form the baseline from which the project planning
can proceed.

It defines the parameters and boundaries within which the project will
achieve the intended objectives. There are numerous reports on failed
projects and information systems projects are high on the list of these
failed projects rightly or wrongly.

Project managers are not really to blame and little analysis is provided on
whether the failed projects were defined sufficiently through an
appropriate business case by key sponsors prior to commitment.
Business case
The more formal business case contains more quantitative information for
decision making purposes.

It may contain what is commonly called a preliminary feasibility study, or

what should be more correctly called a financial viability study.

This study will be based on limited information due to the early stages of
the project, but later viability studies will reflect more detailed
information.
Business case
The Business Case should demonstrate that the following objectives have
been addressed:

Confirm that the business case is robust that is, in principle it meets
business need, is affordable, achievable, with appropriate options
explored and likely to achieve value for money.
Establish that the feasibility study has been completed satisfactorily
and that there is a preferred way forward.
Ensure that there is internal and external authority, if required, and
support for the project.
Ensure that the major risks have been identified and outline of risk
management plans have been developed.
Establish that the project is likely to deliver its business goals and that
it supports wider business change, where applicable.
Business case
The Business Case should demonstrate that the following objectives have
been addressed:

Confirm that the scope and requirements specifications are realistic,

clear and unambiguous.
Ensure that the full scale, intended outcomes, timescales and impact of
relevant external issues have been considered.
Ensure that there are plans for the next stage.
Confirm planning assumptions and that the project team can deliver the
next stage.
Confirm that internal business and technical strategies have been taken
into account.
Establish that quality plans for the project and its products are in place.

(Source:http://www.capital.dhs.vic.gov.au/capdev/PlanningEvaluation/FinalBus
inessCase/)
Project Portfolio
We should also keep in mind that organisations are rarely focused on one
project at a time.

In most instances, part of the objective for carrying out a business case is
to assist in the decision making of which project or projects will proceed.

Each project competes for organizational resources, whether finances or

staffing, and must demonstrate that it is the better option to take, or that
it is the best fit with other projects to which the organization has
previously committed as part of a larger strategic framework.

In practice, project managers are often not part of this practice. It is more
the realm of project directors or program managers but it is important to
understand the context in which the project is considered within the
organizational framework.
Conclusions
This module has looked at the transition of idea or concept through
to the point where a meaningful project or suite of projects has
been defined in such a way that the sponsor is comfortable that the
guidelines exist, for project management staff to take it forward to
the next stage of planning where a final commitment can be made.

The project charter and the business case, however they may be
described or sequenced, will provide the platform for development
of the project management plan, which is also one of the most
important documents that a project manager is required to
develop.

Strangely, many projects do not have one. Many organisations tend

to adopt a philosophy of get on with it, and minimize the stages of
planning that are recommended in project management theory.