PRINCE2 7 Initiating a Project (IP) – Part 1
This process is used during the first stage – the Initiation Stage, and assembles the Project Initiation Documentation (PID). IP establishes solid project foundations, clarifies the reasons, benefits, risks and scope, and enables the organization to understand the work to be done to deliver the project’s products.
The purpose of the Initiating a Project process is to establish solid foundations for the project, so that the enabling organization understands the work to be done to deliver the project’s products before committing to a significant spend.
The trigger is the Authority to initiate the project from the Project Board using the Directing a Project process.
The main objective here is that all parties must be clear on what the project is to deliver, why it is needed, how the outcome is to be achieved and who are responsible, so that a genuine commitment can be made. Hence, the main product that is assembled is the Project Initiation Documentation.
The purpose of the PID is to define the project, in order to form the basis for its management and an assessment of its overall success. In addition, the PID gives the direction and scope of the project, and forms the ‘contract’ between the Project Manager and the Project Board.
It ensures the project has a sound basis prior to asking the Project Board to making a commitment, it acts as a base document against which to assess project progress and provides a single source of project reference.
Consider how the Initiating a Project supports the seven PRINCE2 Principles:
• Continued business justification. By refinement of the Business Case
• Learn from experience. By capturing lessons from the Lessons Log and using these as an input for all the management products that are assembled within the PID.
• Defined roles and responsibilities. By virtue of creating the management products that are used within the PID, the roles and responsibilities from the Starting Up a Project process are refined and possible expanded.
• Manage by stages. By creating the Next Stage Plan for the next stage in support of the decision to proceed or not. Also by agreeing the number and timing of the future stages within the Project Plan.
• Manage by exception. Tolerances were set for the Initiation Stage and the Project Manager will use these to manage the initiation stage.
• Focus on products. Management products within the PID are created and the PRINCE2 product-based planning technique is used for Project Plan and Stage Plan creation.
• Tailor to suit the project environment. The Project Approach was designed taking into consideration the entire project environment, and this will be used here as a key input to all management products.
The Risk, Quality, Configuration and Communication Approach Documents
These are the ‘how-to’ documents, and, based on the project approach will define how each approach is to be applied to this particular project. Since it will have a bearing on all the strategies, the Communication Management Approach document should be completed last.
The Project Brief will be a key input when creating these documents.
The Project Manager will be responsible for creating all management product documents with input and review from Project Assurance, while the Project Board is responsible for approving them.
Set up the project controls. The Project Manager is responsible with input and review from Project Assurance, and these can be seen as Project Board level controls and Project Manager level controls. They will include aspects such as management stages (number and timing), communication aspects, and tolerances, mechanisms for issues, changes, and exception escalation.
Create the Project Plan. The Project Manager is responsible with input and review from Project Assurance.
Refine the Business Case. The Project Manager is responsible with input and review from Project Assurance. As with all products, the Project Board will approve them, with the Executive being particularly interested in the Business Case, since they own it.
Also in this activity, the Benefits Management Approach is created, and although the Project Manager may create it, the Senior User role is ultimately responsible to corporate or programme management for the ultimate realization of all the Business Case derived business benefits.
Assemble the Project Initiation Documentation. The Project Manager is responsible with input and review from Project Assurance. The Project Board will approve it. It is worth noting that the PID may not be a single document, but instead a collection of related documents.
This information will be presented to the project board, who meet for the second time to authorize the project. The second Stage Plan is also created (using the Managing a Stage Boundary process).
It is not until the second (delivery) stage that any specialist products are created. Both the PID and the second Stage Plan are approved or otherwise, in the Directing a Project process.
Application of the PRINCE2 7 practices to IP
Business case
The outline business case in the project brief is developed further into a full
business case ready for approval by the project board based on a better
understanding of the project and the proposed option. The benefits management
approach and sustainability management approach are developed to support the
business case and provide input for establishing controls.
Organizing
The project management team structure is updated with further detail on levels of
authority delegated from one layer to the next, and the rest of the project
management team are appointed and onboarded. A work breakdown structure is
considered based on the project plan to provide information about the organization
of work into teams and determine which elements will be externally supplied. The
communication management approach, change management approach, and
commercial management approach are created and provide input for establishing
project controls.
Plans
The project product description is used to develop a product breakdown structure
and a product flow diagram that are then used to create the project plan. The
project plan defines the stages required for the project.
Quality
The product register is created. Product descriptions are created, and the project
product description is updated if necessary. The quality specifications in the
product descriptions help with the creation of the quality management approach,
which provides input for establishing controls. The quality register is created.
Risk
The risk management approach is created for providing input for establishing
project controls. The risk register is created based on the categories, and the
grading system is defined in the risk management approach. Risks identified in the
business case, project plan, and elsewhere are logged in the risk register and
assessed. A risk budget is considered and created if needed.
Issues
The issue management approach is created for providing input for establishing
project controls for change control and issue management. The issue register is
created based on the categories, and the grading system is defined in the issue
management approach. Issues identified in the business case, project plan, and
elsewhere are logged in the issue register and assessed. A change budget is
considered and created if needed.
Progress
The digital and data management approach is created for providing input for
establishing project controls.
The project controls for all the management approaches are established and
provide a foundation for progress management.
Highlight reports are used to show progress for the initiation stage.
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