10 Must-Know Project Initiation Documents

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10 Must-Know Project Initiation Documents

When initiating a project, it is crucial to ensure feasibility, evaluate risks, and align stakeholders on key objectives. The PMBOK Guide outlines several key documents that help structure the project initiation phase effectively. Here are the 10 must-know project initiation documents, explained with the example of the Pet Buddy app—a mobile application aimed at connecting pet sitters with pet owners.

1. Business Case

The business case assesses whether the project is viable and worth pursuing. In our example, it includes:

Summary: Pet Buddy aims to expand its current daycare service through a mobile app.
Current Issue: Limited to a single location, the business seeks to scale through technology.
Solution: Develop an app for pet sitters and pet owners.
High-Level Costs: $800,000 for development.
Projected Benefits: $3.9 million in revenue over three years.
Recommendation: Move forward with development.

2. Benchmarking

Benchmarking evaluates competitors and market trends to determine if the project offers a competitive advantage. In our example for Pet Buddy we might include:

Competitor Analysis: Identifies competitors lacking features like social features, detailed sitter profiles, and add-on services.
Feature Comparison: Helps position Pet Buddy for differentiation.
Market Fit Assessment: Determines key improvements needed to outperform competitors.

3. Make or Buy Analysis

This document assesses whether to develop the project internally or outsource it. In our example, we look at:

Cost to Make: $800,000 initial cost, $350,000 annual maintenance.
Cost to Buy: $600,000 annually for white-label solutions.

Conclusion: In this situation, in-house development becomes more cost-effective after two years.

4. Cost-Benefit Analysis

Evaluates the financial viability of the project. For example:

Year 1 Costs: $800,000 (development, integration, project management).

Projected Revenue:

Year 1: Limited revenue.
Year 2: Significant growth.
Year 3: $3.9 million revenue.

Break-Even Point: Between years 2 and 2.5.

Benefit-to-Cost Ratio: 2.6 (favorable for investment).

5. Six Thinking Hats

A brainstorming tool to assess different aspects of the project.

White Hat (Facts & Data): Market size, competitor analysis.
Red Hat (Emotions): Customer trust, sitter reliability.
Black Hat (Risks): Legal liability, emergency situations.
Yellow Hat (Opportunities): Increasing demand for trusted pet sitters.
Green Hat (Creativity): Loyalty programs, pet cameras.
Blue Hat (Summary & Next Steps): Action plan for moving forward.

6. Project Charter

Defines the high-level scope, stakeholders, and objectives. In our example, we include things like:

Project Name: Pet Buddy Mobile App.
Project Sponsor: Samantha (Business Owner).
Project Manager: Billy.
Objective: Connect pet owners with trusted sitters.
Key Features: User profiles, scheduling, payments, messaging.
Estimated Cost: $800,000.
Risks Identified: Scope creep, data security, user adoption.
Completion Criteria: First working version launched in app stores.

7. Business Model Canvas

A visual one-page plan to explore value creation and delivery, often used in Start-ups or for new products or features. It might include things like:

Customer Segments: Pet sitters, pet owners.
Value Proposition: Easy, trusted pet-sitting services.
Revenue Streams: Booking fees, subscription models.
Channels: Mobile app, social media marketing.
Key Partners: Developers, payment processors.

8. Lean Canvas

A startup-friendly alternative to the Business Model Canvas. In our example, we focus on things like:

Problem: Pet owners struggle to find reliable sitters.
Solution: Uber-like matching system for pet sitters.
Unique Value Proposition: Trusted and rated pet sitters.
Unfair Advantage: Built-in review system, strong brand trust.
Key Metrics: App downloads, engagement rate, booking conversions.

9. DMAIC (Define, Measure, Analyze, Improve, Control)

A Six Sigma approach for structuring project initiation. In our example, we go through:

Define: Identifying the need for a pet-sitter app.
Measure: Current market conditions and demand.
Analyze: Competitor gaps and cost-benefit results.
Improve: Iterative development and feature prioritization.
Control: Ongoing performance measurement post-launch.

10. Plan-Do-Check-Act (PDCA) Cycle

A continuous improvement model.

Plan: Define project goals, features, and scope.
Do: Develop a minimum viable product (MVP).
Check: Gather user feedback and adjust.
Act: Implement improvements and scale operations.

Conclusion

These ten project initiation documents provide many ways towards a structured approach to launching a successful project. From assessing feasibility to defining the roadmap, they help ensure clarity, alignment, and risk mitigation. In the case of Pet Buddy in our example, using these documents has demonstrated a clear financial and operational advantage in moving forward with the mobile app development.

By mastering these documents, project managers can ensure a smooth and well-planned project initiation phase, setting the foundation for long-term success.

David McLachlan on LinkedIn

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