PROJECT MANAGEMENT

Project Initiation
23/02/2016

Overview of Project
Initiation
Awareness of the need for change (situation,
context) and recognition by stakeholders that only a
project can bring about the desired result
Consideration of project possible options
Collection of basic information to perform a
preliminary project feasibility assessment and
determine possible project costs and outcomes
(positive and negative)
Preparation of a formal project proposal for
consideration by the project sponsors
Undertake a detailed project feasibility study, if
required
Decide whether project should be pursued, put onhold for a future time or rejected

The initial stages of a

project
Project
Project
Project
Project
Project
Project
Project
Project
Project

Concept
Proposal Request
Proposal
Green Light
Definition
Approval
Kick-of
Plan
Approach

The first step to any well managed project is

assessing the overall business need.

Project Concept
The idea or the reason
The initial concept
It may contain the following
Business case
Benefits
Description of a problem or solutions to a

problem
Initial estimation (generally tentative)
The project concept can be the result of a
thought, a study, a special meeting or an

Project Proposal
Proposals are the well defined documents,

usually directed toward a potential sponsor, such

as your future boss, a funding agency, etc. to
briefly outline:
1. the specific objectives of project,
2. technical approach to be used in solving the
problem or developing the product and
3. the anticipated results of the project
and should answer the following questions:
1. Is the problem sufficiently important to justify
money, company time, and your effort?
2. Is the project well defined and realistic?
3. Have you outlined a sound approach,
including your ability to perform the tasks?

Project Proposal
RFQ (Request for Quotation)
Request for an exact quote for a
specific service or item
RFI (Request for Information)
To garner information before sending a
RFP
Verify assumptions and certain
requirements
Solicit resumes and team compositions
(legal issues)
Other basic communications
RFP (Request for Proposal)

Request for Proposal (RFP)

It consists of the following:
Introduction
Executive Summary
includes a summary of the requesters and

market space.
Purpose
a description of the project, the problem and
the proposed solution that the requester
needs to achieve.
Key Business and Technical
Requirements
include the key business and technical
requirements.
Proposed Project Phases and Milestones
include a high level description of project

Request for Proposal (RFP)

Quality Assurance Requirements
include any and all quality assurance

requirements including processes,

procedures, and methodologies.
Budget
detail the budget that has been established
to complete the project. .
Schedule of Events
include a schedule of events with timelines
for the proposal through awarding of
contract to vendor
Proposal Template
indicate whether a proposal document
template is included and any instructions for

What is the diference between

EOI & RFP?
An Expression of Interest (EOI) is a multi-staged
process. An EOI is used to shortlist potential
suppliers before then seeking detailed bids from
the shortlisted tenderers. An EOI is generally
used when the information required from
tenderers is specific but the agency is unsure of
the capability of suppliers to provide the
required goods and services.
A Request for Proposal (RFP), on the other hand,
can be a single or a multi-staged process and is
usually used when the project or requirement
has been defined, but where an innovative or

The Initiation Phase of a Project

(Awareness of the Need)
All projects are conceived and undertaken in
response to some need (problem, opportunity)
internal, external, legal and other.
The need can be commercial in nature for
example, an automobile company seeks to bring
out a new SUV as it perceives a large market of
customers who would be willing to purchase it, or a
software company is asked by one of its clients to
develop an accounting software for its organization.
On the other hand, the need can be noncommercial for example, a municipal office wants
to introduce a modern sewage system to reduce
health hazards or the federal government wants to
construct a highway linking major urban localities.
An NGO may initiate a project to provide basic

The Initiation Phase of a Project

(Project Outcomes)
All projects have outcomes that are realized
subsequent to their completion. Some
outcomes can be easy to quantify while others
may not.
Project outcomes may be positive and/or negative
and multifaceted. For example, the (envisaged)
outcomes or benefits of a provincial road
construction project connecting two urban localities
could be that transport between these localities
becomes easier, quicker and cheaper and leads to
a increase in the volume of trade and investment
and economic prosperity. A negative outcome
could be the projects adverse environmental
impact (chopping-off trees, disrupting ecological

The Initiation Phase of a Project

(Project Resources)
No project can be attempted unless the requisite
resources have been made available by the
project sponsor and client. Resource
consumption ultimately results in a financial cost
but even having abundant funds does not mean
that the resources specifically needed for the
project in question are available.
For example, a financially robust and rapidly
expanding computer company may have come up
with several good ideas for advanced software
programs catering to different market segments. The
companys ability to undertake the projects
concurrently would be determined in large measure
by its ability to mobilize the needed number of

The Initiation Phase of a Project

(Project Stakeholders)
All projects have stakeholders. It is not possible
to envision any project without their direct and
indirect involvement.
Project Stakeholders may range from very few in
number to many millions. Their interest in and
attitude and behavior towards the project in
question may also vary considerably.
When initiating any project, it is essential that
key stakeholders are identified and their stake
in the project documented.
Stakeholders can be a great source of help

The Initiation Phase of a Project

(Project Risks)
Risks are a defining element of projects. Complex
projects in particular harbor numerous and
diverse risks and if these risks turn into events,
they may endanger a project.
When initiating any project it is essential to
under-take an initial analysis of the risks inherent
to the project, seeking in particular to identify
those risks that may have a bearing on the
project in the course of its life-cycle.
Suppose, a project similar in nature was undertaken
previously, then lessons learned from risk
management on that project may be used for the

Project Pre-Feasibility Studies

A Pre-Feasibility Study is done with the
purpose of determining whether or not it is
worthwhile to proceed with a detailed
Feasibility Study of a project.
Pre-Feasibility Studies have exploratory
framework character but sometimes they
evolve into full-fledged Feasibility Studies.
Pre-Feasibility Reports are usually of a
(comparatively) short length and duration
than Feasibility Reports which analyze a

Examples of a Project Pre-Feasibility Study

http://www.smeda.org.pk/

The Small and Medium

Enterprise Development
Authority has many prefeasibility reports relating to
projects in Pakistan which are
freely down-loadable from its
website.
The reports span following
areas: Agriculture, carpets,
ceramics, chemicals,
construction, dairy, education,
electronics, entertainment,
fisheries, food, furniture, gems
& jewelry, IT, leather, light
engineering, livestock, marble

Project Feasibility Studies

A Feasibility Study is done with the purpose of
determining whether or not it a project should
be undertaken. A formal study is typically
performed on large, complex projects.
Feasibility Studies can be regarded as projects
in their own right and are usually undertaken
by experienced consultants.
Feasibility studies can be very detailed and
explicit, spanning volumes in some cases.
They look at alternative solutions and come up
with the best possible one.

Project Feasibility Studies

A Feasibility Study examines at diverse issues,
including the projects technical feasibility, its
financial viability, its social desirability and
legal acceptability. On infrastructure projects a
Feasibility Study may assess the projects
ecological consequences and impact on
archeological and cultural assets.
The Feasibility Report can contain a lot of
useful information for the project planning
phase.
Feasibility Reports may sometimes generate

Project Charter
According to the Project Management Institute,
the Project Charter is the document that
formally authorizes the project (sometimes
called The Terms of Reference)
The Project Charter provides the Project
Manager and Project Team with the authority to
use resources for the purpose of undertaking
the project.
The Project Charter is usually short and is issued
by the Project Sponsor or a senior official
outside the level of the project organization.

Project Charter

Project Charter
Information contained in or referred to in
other project documents the Project Charter
may span the following:
Project Background
Purpose for undertaking the project
Project Justification
Requirements
Stakeholder expectations
from the project
Assumptions and Constraints
Project Organizational goals
Stakeholder Roles and Responsibilities

Project Preliminary Scope

Statement
A Preliminary Project Scope
Statement is one of the
outputs of the Project
Initiation process group.
The purpose of the
Preliminary Project Scope
Statement is to identify the
high level project
objectives. The objectives
must be clear, actionable
and measurable.
Usually prepared by Project
Manager & Team

Project Goal and

Objectives
Project Deliverables
Project Requirements
Project Boundaries
Project Assumptions &
Constraints
Project Risks and Issues
Project Organization
Structure
Project Cost and Schedule
Configuration
Project Approval
Requirements

Difference between these two documents:

Project Charter:
Official document created and approved by key
stakeholders, after project idea has been identified.
Developed by the corporate executive or sponsor.
Defines the responsibilities and boundaries of the
project manager and the project.
Scope Statement:
After the project charter is approved, the project
manager can proceed with launching team building
activities and defining the scope of the project.
Document that formalizes references the scope of
everything that the project must produce that is used
for future decision making. Developed by the project
manager with his/her project team members
Acts as a response to the Sponsor/Project Charter

General limitations of the

Project Initiation Phase
In the project initiation phase, a typical and
serious limitation is the lack of availability of
quality information which exists about the
project especially for complex projects and
projects of a kind which have not been
attempted before.
At initiation a projects feasibility, outcomes,
scope, requirements and specifications, cost,
time and risks, stakeholders, resource needs
etc. are often not known with a high degree of
precision with the result that the project may
take longer, cost more and generally be more

Thats
it
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