PM

1. Project Initiation in
Project
Management
PREPARED FOR HNDE STUDENTS
BY: N.V. SAJANI BIMSARA | DATE: 5/4/2025

2. Introduction to Project Initiation
 Project Initiation is the first phase in the project life
cycle.
 It involves defining the project at a broad level.
 Sets the foundation for planning and execution.
https://youtu.be/hIhTtzo0eBg

3. Objectives of Project Initiation
 The main objectives of project initiation include:
• Defining the project purpose and goals.
• Identifying stakeholders and understanding their expectations.
• Determining project feasibility (technical, financial, and
operational).
• Preparing key documents such as the Project Charter and
Business Case.
• Appointing the project manager and project team (initial roles).

4. Importance of Project Initiation
 Sets clear direction and purpose.
 Provides formal authorization to start the project.
 Ensures the project is feasible and aligned with strategic goals.
 Improves clarity, reduces risks, and enhances success rates.
 Helps manage stakeholder expectations early.
 Avoids misallocation of resources.

5. Project Life Cycle Overview
 Phases: Initiation, Planning, Execution, Monitoring &
Controlling, Closing.
 Each phase builds on the outputs of the previous
one.
 Initiation establishes the purpose and authorization.

6. Theoretical Foundation:
Systems Theory
 Views the project as a system within an organization.
 All parts (scope, time, cost) are interrelated.
 Helps understand the project's environment and
interdependencies.

7. Theoretical Foundation: Goal-
Setting Theory (Locke &
Latham)
 Clear, challenging goals enhance performance.
 Project objectives must be SMART: Specific,
Measurable, Achievable, Relevant, Time-bound.
 Goal-setting motivates team alignment and effort.

8. Steps in the Project Initiation
Phase
Step Description
1. Develop a Business
Case
Evaluate needs, goals, and project alignment
with strategy.
2. Conduct a Feasibility
Study
Analyze whether the project is achievable and
worthwhile.
3. Identify Stakeholders Create a stakeholder register with roles and
influence.
4. Create the Project
Charter
Develop a formal project document outlining
goals, scope, and authority.
5. Appoint the Project
Team
Assign key roles, including project manager
and sponsor.
6. Hold a Kick-off
Meeting
Bring together stakeholders and project team
to communicate objectives and expectations.

9. Business Case
 Defines why the project is needed.
 Outlines expected benefits, costs, and alignment with
strategy.
 Serves as a decision-making tool for project approval.
Is this project worth doing?

10. Feasibility Study
 Assesses whether the project is viable in technical,
financial, and legal terms.
 Reduces risks by identifying obstacles early.
 Supports informed go/no-go decisions.

11. Project Charter
 Formal document that authorizes the project.
 Includes purpose, objectives, scope, and roles.
 Issued by a sponsor; gives the project manager
authority.

13. Stakeholder Identification &
Analysis
 Identify individuals/groups impacted by the project.
 Analyze interest, influence, and potential conflicts.
 Use Stakeholder Power/Interest Grid for mapping.

14. Theory: Stakeholder Theory
(Freeman)
 Considers the impact of decisions on all
stakeholders.
 Project success depends on stakeholder satisfaction.
 Promotes ethical and inclusive decision-making.

15. Defining Project Objectives
 Objectives guide the planning and performance
evaluation.
 Should address what is to be achieved, by when,
and to what standard.
 Well-defined objectives reduce ambiguity.

16. Scope Definition
 Clarifies project boundaries and deliverables.
 Prevents scope creep and confusion.
 Scope Statement defines inclusions/exclusions.

17. Assumptions and Constraints
 Assumptions: Conditions believed to be true.
 Constraints: Restrictions such as budget, time, or
resources.
 Both must be documented and managed.

18. Initial Risk Identification
 Risk is any uncertainty that may affect objectives.
 Identify potential risks early in the process.
 Develop initial mitigation and response plans.

19. Project Manager Appointment
 PM leads the project through its life cycle.
 Must have the skills, authority, and support.
 Acts as the link between the team and stakeholders.

20. Kick-off Meeting
 Introduces the team and stakeholders.
 Communicates goals, roles, and expectations.
 Aligns all parties before planning begins.

21. Example – Construction of a
New Office Building
•Business Case: Company needs a new facility due to expansion.
•Feasibility Study: Assessed construction costs, legal permits, and
availability of land.
•Stakeholders: Company executives, employees, local authorities,
architects, and contractors.
•Project Charter: Includes objectives (construct a 5-story office), timeline
(18 months), and budget ($2 million).
•Kick-off Meeting: Held with architects, contractors, and company
management.

22. Initiation Tools & Techniques
 SWOT Analysis, PESTLE, Feasibility Matrix.
 Used for evaluating internal and external factors.
 Helps in strategic decision-making.
 Cost-Benefit Analysis
 Stakeholder Analysis
 Expert Judgment
 Brainstorming
 Project Management Software (for documentation and
collaboration)

23. Ethical Considerations in
Initiation
 Transparency, fairness, and accountability.
 Involves honest communication with stakeholders.
 Supports long-term project and organizational
success.

24. Case Study: Project Initiation
Failure
 Project lacked clear objectives and sponsor support.
 Resulted in scope creep and budget overrun.
 Lessons: importance of clarity, stakeholder analysis.

25. Summary of Project Initiation
Phase
 Defines project purpose and feasibility.
 Involves stakeholder and objective alignment.
 Formalized by the project charter.