This article covers a critical activity. Studies have shown that problems with project initiation are a major contributing factor to project failures. 

What are some of the common issues with project initiation?

• Issues with the definition and scope of the project.
• Underestimating effort. (We’ll go into this in more detail, but tasks typically take twice as long as the estimate.)
• Not giving enough focus to dependencies and constraints.
• Overestimating resource availability.
• Not allowing extra time for the first use of development tools or implementation of new technology. 
• Incorrect assumptions relating to the availability of third-party resources. 
• Not enough consideration for training, non-functional tests, data quality and security.
• Not including business and cutover dress rehearsals.

These are just examples; there are many more potential issues with project initiation.

The project initiation phase must be given the time and attention required. There may be a hard deadline for delivery, but don’t skimp on project initiation. The level of documentation for this phase must be commensurate with the scale of the project or programme. My advice on project initiation is the same as for other aspects of project management: be pragmatic but rigorous. You do not want things that are forgotten at this stage to impact the project as you get closer to go-live. As you move through the project lifecycle, the cost of correcting omissions increases exponentially. This applies to both Agile and Waterfall projects. For example, if security requirements are not considered during project initiation, this may result in changes to the product and infrastructure.

Key Activities in Project Initiation

The following are the key project initiation activities. It is assumed that the business case has been approved before the PID is prepared.

Prepare the Project Initiation Document (PID) or Project Brief.

The PID should contain the following sections:

• Background.
• Project Definition.
• Project Objectives.
• Critical success factors.
• Project Methodology.
• Project Scope.
• In Scope.
• Out of Scope.
• Deliverables.
• Project Resource Responsible for the Deliverables.
• Constraints.
• Dependencies.
• Assumptions.
• Quality Assurance.
• Risk Management.
• Test Approach.
• Dress Rehearsals.
• Cutover Planning.
• Post Go-Live Support.

Other items may need to be added depending on the type and complexity of the project. Allocate the appropriate amount of time to prepare the Project Initiation Document (PID) or Project Brief. This is a critical document.

Develop the Work Packages

Work packages are very useful for estimating effort and for managing progress on a project. A typical work package will contain the following information:

• Work package title / name.
• Code.
• Status.
• Total Budget. (Based on days of effort.)
• Start Date.
• Completion Date.
• Personnel / Resource.
• Project Code.
• Comment.
• Purpose of the work package.
• Key Objectives.
• Success Measure.
• Tangible Deliverables.
• Type of Deliverable.
• Key Dependencies.

Project Example – Work packages

• Work packages were used in the project initiation for the Year 2000 Programme for a major car manufacturer. Sixty work packages were prepared to cover all known activities. This included work packages for the IT consultancy, employees, and third-party suppliers.

• The work packages and the project plan were prepared during the project initiation phase, and no work commenced until the plan and all of the work packages were reviewed and approved. This provided the foundation for the very strong governance of the programme, which started in 1997.

• The programme was delivered on time (no option on this one!) and £10,000 under the original budget. The directors were pleased that the programme did not require additional budget. (On average, Year 2000 programmes went back to their boards four times for more funding.)

Project Budget

On some projects you will be given a budget to work to, and on others you may be asked to provide estimates and work with the stakeholders to agree on the budget. If you are involved in setting the budget, ensure the estimating process is rigorous. This is critical; you don’t want to go back to the Project Board for additional budget. This undermines confidence at best, and in the worst-case scenario, additional budget is not available, resulting in the project being cancelled. Don’t assume that requests for more funding will be approved. Do everything possible to determine the correct budget at the project initiation stage.

However, we all know that in the real world things can impact projects. Agree on a reasonable contingency percentage based on your confidence in the estimates.