The purpose of Project Initiation is to evaluate proposed projects and to reach a consensus on the projects to be selected. During Project Initiation, the Project Charter is presented, and the strength of a project’s Business Case and the viability of the proposed solution are evaluated. A determination is made as to whether the project is consistent with the institution’s business and/or strategic plan, and if the Project Planning (High Level) budget is affordable.
The Project Charter process may actually be part of the budget cycle, serving as the justification for budget requests. In this case, Project Charters may need to be created a full budget cycle prior to the project’s anticipated initiation.
Each organization has its own approach to green-lighting desired projects. There are some general principles, however, that apply to any effective evaluation and selection process:
The deciding body must have enough information about the merits of the project’s Business Case and the viability of its Proposed Solution to make a meaningful evaluation.
The selection process must take into consideration the project’s fit with the organizational mission and strategic plan, and be prioritized against other projects.