Overview

This is the point where the project gets approved and the draft Project Initiation Document (PID) is reviewed by the Board for a final sign off. It is created by the Project Manager and evaluated by the Project Board to ensure that it outlines eveything to make the project successful. In particular:

• Definition
  Derived principally from the Project Brief and Project Approach it outlines the project's objectives

• Business Case
  This must show that the project is viable, and should include both benefits and savings. Costs should be included and match that of the Project Plan.

• Project Quality Plan
  States how the project will meet the Customer's quality expectations, it must be clear on how these quality expectations will be met.

• Risk Log
  All risks and their counter measures should be identified. If appropriate contingency plans should be outlined.

• Project Approach
  Is it clear what approach will be used to deliver the final outcome? Have other approaches been considered, discounted?

• Project Plan
  Are timescales, cost, and major products achievable?

• Project Management Team
  Most appointments should have been made in SU Starting up a Project and approved in DP1 Authorising Initiation, all agreed sign-offs of each team member should be present.

• Project Controls
  The step by step process for stage approvals should be outlined. In addition frequency and content of reports from the Project Manager to the Project Board should be outlined with what should be done if tolerances are exceeded. Are these adequate?

• Communications Plan
  Should include communication both to and from each relevant party.

The Project Manager is responsible for supplying the Project Initiation Document to the Project Board who are then responsible for approving it.

Method links

Tips

• Ensure that a benchmark is established from which the results of the project can be compared.
• Once approved the Project Initiation Document is frozen to keep a record for future reference.
• Be sure that Corporate or Programme Management strategies and objectives have been considered when reviewing the draft Project Initiation Document
• Be sure that contracts with 3rd parties, perhaps already negotiated, fit with those relevant aspects in the PID (e.g. timing, control, decision criteria)
• Evaluate to what degree PRINCE2 has been adapted to fit in with the organisation's culture
• Risks that influence the Customer's Business Case should have managers allocated to them.
• Are payments to suppliers in line with acceptance criteria and expected delivery outcomes?

Notes

• Give final approval to the Project Initiation Document
• This stage is combined with DP3 Authorising a Stage or Exception Plan meaning the Project Initiation Document and Stage Plan is approved together
• Once accepted the Project Initiation Document should be frozen and stored with the Configuration Librarian
• With the acceptance of the PID comes the Authorisation to Proceed
• The draft PID comes from IP6 Assembling a PID
• Authorisation to proceed then passes to CS1 Authorising a Work Package.

Case studies and examples

Related links

• Search our forum for 'DP2 Authorising a Project'
• Take our DP - Directing a Project - Quiz
• DP Directing a Project.