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Project Management
Initiation Document
This document provides an ideal project management plan template which
can be used by anyone at any level who is undertaking a project and is
looking for a plan structure with all the key topic areas that need to be
considered.
Project Initiation Document
Version : ####
Date : ######
Author : ###########
Owner/Sponsor : ###########
Signature of Owner/Sponsor: ###########
Project Manager Signature: ###########
Document History
Version Summary Date Version Initial Draft Project Initiation Document ##### 1
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Project Management in Marketing - Project Initiation Document
Project Management in Marketing - Project Initiation Document
1. Purpose of this Document (PID)
The purpose of this document is to define the project in sufficient detail, including background and scope of the project, to form the basis for its management and the assessment of overall success.
In summary, the document will explain:
- The business requirement for the project to proceed
- The objectives of the project
- The benefits of undertaking the project
- The deliverables to be produced
- Scope; what is included/excluded
A standalone PID (Project Initiation Document) will be created for internal use to detail:
- The resources required and their accountabilities & responsibilities
- The time and budget requirements
2. Project Background
Include as much background information as you can. Document why the project has been requested. This will generally be a change in process, policy, organisation or technology.
3. Project Definition
Objectives
The project objective(s) is(are) to:
Business Requirements
The key business requirements are to:
Business Scenario
*Enter details of the business scenario that this change is applicable to. It may be an existing process, piece of technology, etc.
Options
*Consider options.
Quantified Analysis
How do we deal with costs and benefits on a common basis? Decide appraisal period (usually life of main asset). Use constant prices (only include price increases over and above inflation). Discount all costs and benefits to give Present Value in base year. Current discount rate for public sector is 3.5% p.a. The convention is for ongoing costs and benefits to begin in the year after the capital expenditure which gives rise to them.
(Only applies to project with a budget of £25K plus)
Benefit cost ratio: = Net TfL Benefit Net Cost
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Project Management in Marketing - Project Initiation Document
If revenues are also involved then it becomes: = Net TfL Benefit Net Cost - Revenue Making decisions on benefit / cost results:
Pass mark (1.5: 1)
Below is an example of how to calculate present value for a three year project.
PresentValue = ∑ Year 1 Cost = Year 1 Cost = Year 1 Cost (1+0.035) (1+0.035) 2 (1+0.035) 3
Benefit for customer Cost to TfL Decision
Positive Negative (financial) Do project if benefit: cost ratio is greater than pass mark (1.5: 1). Positive Positive (revenue) Always do project Negative Positive (cost saving) Do project if disbenefit: cost saving ratio is less than pass mark (1:1). Negative Negative Don’t do project unless forced by legislation, political policy etc.
Overall Assessment
- If a quantified analysis was done, was the outcome robust to sensitivity tests?
- If not, what is the likelihood of the scenario explored in these tests actually occurring?
- Is the quantified analysis representative of overall value?
- If no quantified analysis, can the value of the project be assessed relative to other existing projects e.g. showing that the proposal has lower cost but similar impact?
- The overall assessment is the single most important part of the business case, as it weighs up all the key factors.
Project Benefits
The primary business benefits associated with this project are (include impacts on strategies):
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Project Management in Marketing - Project Initiation Document
Category Accountabilities Deliverables Influences business • Manage customer concerns and expectations
- Input into communication from a modal perspective
- Provide meaningful feedback to the business
- Shape resource requirements
- Promote the project/change
- Stakeholder management Engagement/Comms Manager:
- Develop and own the engagement plan
- Develop and own the communications plan
- Facilitate the workshops
- Consolidate feedback/requirements
- Assist Project Sponsor, Project Manager, and Stakeholders wherever needed Project Manager: Active team member • Project management and delivery of plan to timeline and budget
- Support project team and sponsor
- Track and report progress
- Identify, report and escalate risks/issues/ dependencies Understands the business • Share business knowledge with project team
- Build business confidence with customers by communicating changes
- Assist in the identification of any additional resources in so far as this is possible.
- Seek and collate business feedback for project team to consider and respond
- Identify and deliver appropriate engagement opportunities Influences business • Consult with stakeholders
- Raise/escalate issues to seek early resolution
- Agree terms of reference
- Drive project delivery through project team activities
Change/Training Requirements
Enter details on what mechanisms/tools will be put into place to facilitate the implantation and acceptance of the change that this project will deliver. This may include emails communications, classroom training, e-learning etc.
4. Impact Analysis
Document any impact to delivering the change. Please consider impact to people, process, technology, SLAs, Reporting etc. Impact should be assessed pan-TfL. Enter the relevant information in the sections below. If there is no impact to a particular item, please state “No Impact”.
People
Replace this text with any impact to People
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Project Management in Marketing - Project Initiation Document
Process
Replace this text with any impact to Process
Technology
Replace this text with any impact to Technology
Service Level Agreement(s)
Replace this text with any impact to Service Level Agreement
Behavioural
Replace this text with any impact to Behaviours
Business Readiness
Please document any other changes that are scheduled to be implemented at the same time that may cause the business not to be ready for this change. These changes may be occurring outside of your direct area so please investigate thoroughly.
5. Budgetary
Please indicate any budgetary requirements for delivering this piece of work, types of cost to consider:
One-off costs:
- Initial costs e.g. construction, purchase, publicity, redundancy payments etc
- Part-life costs e.g. overhaul or partial renewal may be needed at some point between initial investment and eventual replacement.
Ongoing costs e.g. annual maintenance, administrative overheads etc.
Cost savings….
- One-off cost savings e.g. part of a renewed asset would have needed replacing anyway at a later date.
- Operating cost savings e.g. modernised asset requires fewer staff and/or less maintenance.
Cost avoided?
- Without the project, an essential unbudgeted expense would inevitably be incurred by TfL: Cost avoided (unexpected new obligation as a result of a court case, findings of inquiry etc)
And also take into account….
- Optimism bias (Contingency budget): (Add 44% from the total cost of the project)
6. Project Delivery
Project Deliverables
Outline all the deliverables of the project. This may include, the PID, a communication plan, a revised process, changes to technology, a training plan etc.
Major Milestones
List all the main milestones for this project. As a minimum this should include, Initialisation, Design, Delivery, Close. Although there are bound to be more milestones pertinent to the project.
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Project Management in Marketing - Project Initiation Document
9. Feasibility
* Demonstrate feasibility with details of study undertaken (how feasible is the project)
10. Appendices
NB to ensure that Headings for Appendices appear in the table of contents, please format them using style “PID Headings 2”
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