Chapter 3:

Initiating Projects

Note: See the text itself for full citations. Text website is www.intropm.com.
Learning Objectives
 Describe the five project management process groups, map
the process groups to knowledge areas
 Discuss the initiating process
 Prepare a business case to justify the need for a project
 Identify project stakeholders and perform a stakeholder
analysis
 Create a project charter and assumption log
 Describe the importance of holding a good project kick-off
meeting

Copyright 2017 Kathy Schwalbe LLC 2

Project Management Process Groups
 Project management process groups progress from
initiating activities to planning activities, executing
activities, monitoring and controlling activities, and
closing activities
 A process is a series of actions directed toward a

particular result

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 Description of Process Groups
 Initiating processes include actions to begin projects
 Planning processes include devising and maintaining a workable
scheme to ensure that the project meets its scope, time, and cost
goals as well as organizational needs
 Executing processes include coordinating people and other
resources to carry out the project plans and produce the
deliverables of the project or phase.
◦ A deliverable is a product or service produced or provided as part of a
project
 Monitoring and controlling processes measure progress toward
achieving project goals, monitor deviation from plans, and take
corrective action to match progress with plans and customer
expectations
 Closing processes include formalizing acceptance of the project and
bringing it to an orderly end

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Figure 3-1. Example of process group
interactions within a project

Source: Project Management Institute, Inc., A Guide to the Project Management

Body of Knowledge (PMBOK Guide)– Sixth Edition (2017).

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Characteristics of the Process Groups
 The level of activity and length of each process group varies for
every project
◦ Normally, executing tasks require the most resources and time,
followed by planning tasks
◦ Monitoring and controlling processes are done throughout the
project’s life span
◦ Initiating and closing tasks are usually the shortest (at the
beginning and end of a project, respectively), and they require the
least amount of resources and time
◦ However, every project is unique, so there can be exceptions

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Figure 3-2. Time Spent on Each Project
Management Process Group
Process Group Alpha PM Average PM Alpha Difference (%)
Initiating 2% 1% 100% more
Planning 21% 11% 91% more
Executing 69% 82% 16% less
Monitoring & Controlling 5% 4% 25% more
Closing 3% 2% 50% more
Total 100% 100%  

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Mapping the Process Groups to the
Knowledge Areas
 You can map the five process group into the ten project
management knowledge areas
 Based on the PMBOK® Guide – Sixth Edition (2017), there

are 49 total processes in project management

 Figure 3-5 provides a big-picture view of the process

groups and knowledge areas

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Figure 3-5. Project management process
group and knowledge area mapping

Source: Project Management

Institute, Inc., A Guide to the
Project Management Body of
Knowledge (PMBOK Guide) –
Sixth Edition (2017).

Copyright 2017 Kathy Schwalbe LLC 9

Developing a Project Management
Methodology
 The PMBOK® Guide is a standard that describes best
practices for what should be done to manage a project
 A methodology describes how things should be done,

and different organizations often have different ways

of doing things

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Some Examples of Methodologies
 PRojects IN Controlled Environments (PRINCE2): Originally developed
for IT projects, PRINCE2 was released in 1996 by the U.K. Office of
Government Commerce – now used in over 50 countries
 Rational Unified Process (RUP) framework: iterative software
development process that focuses on team productivity and delivers software
best practices to all team members
 Six Sigma: Used to improve quality and processes. Six Sigma’s target for
perfection is the achievement of no more than 3.4 defects, errors, or mistakes
per million opportunities
 Agile: Many software development projects use agile methods, meaning they
use an iterative workflow and incremental delivery of software in short
iterations

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The Importance of Top Management
Commitment
 Without top management commitment, many
projects will fail
 Some projects have a senior manager called a

champion who acts as a key proponent for a project

 Projects are part of the larger organizational

environment, and many factors that might affect a

project are out of the project manager’s control

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How Top Managers Can Help Project
Managers Succeed
 Provide adequate resources
 Approve unique project needs in a timely manner
 Encourage cooperation from people in other parts of

the organization and deal with political issues

 Mentor and coach them on leadership issues
 Develop and enforce organizational standards
 Support a project management office (PMO)

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Project Management Office (PMO)
 A project management office (PMO) is an
organizational entity created to assist project
managers in achieving project goals
 A PMO can help development standards and

methodologies, provide career paths for project

managers, and assist project managers with training
and certification

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Figure 3-7 Percentage of Organizations with
PMOs
Percentage of Organizations with PMOs
100 95

90
83
80 75

70

60
Percengage

50

40

30

20

10

0
Small Mid-size Large

Axis Title

Source: PM Solutions, “The State of the Project Management Office

(PMO) 2016,” 2016.

Copyright 2017 Kathy Schwalbe LLC

Possible Goals of a PMO
 Collect, organize, and integrate project data for the entire
organization
 Research, develop, and share best practices in project management
 Develop and maintain templates, tools, standards, and

methodologies
 Develop or coordinate training in various project management

topics
 Develop and provide a formal career path for project managers
 Provide project management consulting services
 Provide a structure to house project managers while they are

acting in those roles or are between projects

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Figure 3-8. Initiating Process Summary

Senior management work together to: Project managers lead efforts to:

 Determine scope, time, and cost constraints  Identify and understand

project stakeholders
 Identify the project sponsor

 Select the project manager  Create the project charter

and assumption log
 Develop a business case for the project
 Hold a kick-off meeting
 Review processes/expectations

 Determine if the project should be divided

into two or more smaller projects

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Pre-initiating Processes
 It is good practice to lay the groundwork for a project before it
officially starts
 After a project is approved, senior managers should meet to
accomplish the following tasks:
◦ Determine the scope, time, and cost constraints for the project
◦ Identify the project sponsor
◦ Select the project manager
◦ Meet with the project manager to review the process and expectations
for managing the project
◦ Determine if the project should be divided into two or more smaller
projects because it is easier to manage smaller projects than larger
ones

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Example: Just-In-Time Training Project
 The senior managers of the Global Construction decided to
divide the project to two phases.
 Phase 1 is to clarify the situation.
 Note: for a large training project, there is often a study
project done first before investing in a large project.
 In Just-In-Time Training project:
 Lucy, training director would be the sponsor
 Mike, the vice president of HR would be the project
champion.
 Lucy, assigned one of her senior staff member, Ron to
manage the project (phase 1).

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 Figure 3-9. Summary Information for the
Just-In-Time Training Phase I Project
Scope Goals
• Investigate and document the training taken in the last two years by all internal
employees.
• Determine what courses were taken, the cost of all training, the process for
approving/assigning training, and the evaluation of the training by participants,
if available.
• Survey employees to get their input on what training they believe they’ll need
in the next two years, how they’d like to take the training (i.e., instructor-led in-
house, instructor-led through a local college, university, or training company,
Web-based, CD/ROM, etc.). Also hold focus groups to determine training
needs.
• Recommend how to provide the most valuable training for Global Construction
employees in the next two years.
• Determine the scope, time, and cost goals for the development and
implementation of the Just-In-Time Training Phase II project.

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Figure 3-9. Summary Information for the Just-
In-Time Training Phase I Project (continued)
Time Goals: Three months
Cost Goals: $50,000
Approach/Assumptions:
• All of the costs would be for internal labor.
• All managers and employees would receive information about this study
project.
• A response rate of 30% would be acceptable for the survey.
• The project team would do extensive research to back up their
recommendations.
• The team would also provide detailed monthly reports and presentations to a
steering committee.
• The final deliverables would include a one-hour final presentation and a
comprehensive project report documenting all of the information and
recommendations.

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Business Case for a Project
 A business case is a document that provides financial justification for
investing in a project
 Typical contents:

◦ Introduction/Background
◦ Business Objective
◦ Current Situation and Problem/Opportunity Statement
◦ Critical Assumptions and Constraints
◦ Analysis of Options and Recommendations
◦ Preliminary Project Requirements
◦ Budget Estimate and Financial Analysis
◦ Schedule Estimate
◦ Potential Risks
◦ Exhibits


See Figure 3-10 in the text for a sample (pp. 92-94)

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Initiating Processes
 Identifying project stakeholders
 Creating the project charter
 Creating the assumption log
 Holding a kick-off meeting

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Figure 3-11. Initiating Processes and Outputs
(PMBOK® Guide – Sixth Edition)
Knowledge area Initiating process Outputs
Project integration Develop project charter Project charter
management
Assumption log

Project stakeholder Identify stakeholders Stakeholder register

management
Change requests
Project management plan
updates
Project documents
updates

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Identifying Stakeholders
 Project stakeholders are the people involved in or
affected by project activities
◦ Internal project stakeholders generally include the project
sponsor, project team, support staff, and internal customers for
the project. Other internal stakeholders include top
management, other functional managers, and other project
managers
◦ External project stakeholders include the project’s customers (if
they are external to the organization), competitors, suppliers,
and other external groups that are potentially involved in or
affected by the project, such as government officials and
concerned citizens

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Stakeholder Register and Stakeholder
Analysis
 A stakeholder register is a document that includes details
related to the identified project stakeholders -usually available
to many people, so it should not include sensitive information
 A stakeholder analysis is a technique for analyzing information
to determine which stakeholders’ interests to focus on and how
to increase stakeholder support throughout the project

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Figure 3-12. Sample Stakeholder Register

Name Position Internal/ Project Contact Information

External Role

Mike VP of HR Internal Project [email protected]

Sundby champion

Lucy Training Internal Project [email protected]

Camerena Director sponsor

Ron Ryan Senior HR Internal Led the [email protected]

staff Phase I
member project

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Figure 3-13. Sample Stakeholder Analysis
Power/Interest Grid

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Categorizing Engagement Levels of
Stakeholders
 Unaware: Unaware of the project and its potential
impacts on them
 Resistant: Aware of the project yet resistant to change
 Neutral: Aware of the project yet neither supportive nor

resistant
 Supportive: Aware of the project and supportive of

change
 Leading: Aware of the project and its potential impacts

and actively engaged in helping it succeed

Copyright 2017 Kathy Schwalbe LLC

Creating a Project Charter and
Assumptions Log
 A project charter is a document that formally recognizes
the existence of a project and provides a summary of
the project’s objectives and management
 It authorizes the project manager to use organizational
resources to complete the project
 Ideally, the project manager will play a major role in
developing the project charter
 Instead of project charters, some organizations initiate
projects using a simple letter of agreement or formal
contracts
 A crucial part of the project charter is the sign-off section

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Contents of a Project Charter
 The project’s title and date of authorization
 The project manager’s name and contact information
 A summary schedule or timeline, including the planned start
and finish dates; if a summary milestone schedule is available,
it should also be included or referenced
 A summary of the project’s estimated cost and budget
allocation
 A brief description of the project objectives
 Project success criteria or approval requirements, including
project approval requirements and who signs off on the
project

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Contents of a Project Charter (continued)
 A summary of the planned approach for managing the
project, which should describe stakeholder needs and
expectations, overall project risk, important assumptions
and constraints, and should refer to related documents,
such as a communications management plan, as available
 A roles and responsibilities matrix
 A sign-off section for signatures of key project

stakeholders
 A comments section in which stakeholders can provide

important comments related to the project

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Figure 3-15. Sample Project Charter
Project Title: Just-In-Time Training Project
Project Start Date: July 1 Projected Finish Date: June 30 (one year later)

Budget Information: The firm has allocated $1,000,000 for this project. Approximately
half of these costs will be for internal labor, while the other half will be for outsourced
labor and training programs.

Project Manager: Kristin Maur, (610) 752-4896, [email protected]

Project Objectives: Develop a new training program that provides just-in-time training
to employees on key topics, including supplier management, negotiating skills, project
management, and software applications (spreadsheets and Web development).
Develop an approach for measuring productivity improvements from this approach to
training on an annual basis.

Success Criteria: This project will be successful if it reduces training cost per employee
by 10% or $100/employee/year. It should also be completed on time, be run
professionally, and meet all of the requirements. The project sponsor will fill out a
customer acceptance/project completion form at the end of the project and give the
project at least a 7 out of 10 overall rating.

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Figure 3-15. Sample Project Charter
(continued)
 Approach section (partial)
◦ Terminate all internal training courses except the Six Sigma
training once new courses are developed
◦ Communicate to all employees the plans to improve internal
training and let them know that tuition reimbursement will
continue as is.
 Roles and Responsibilities
 Comments (partial)

◦ “I want to review all of the information related to providing

the supplier management training. We need to make something
available quickly.” Tim

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 Contents of An Assumptions Log
 An assumption log is a document used to record and track
assumptions and constraints throughout the project life cycle.
 It aids in communicating information to key stakeholders and
avoids potential confusion.
 Most projects include several assumptions that affect the scope,
time, cost, risk, and other knowledge areas.
 It is important to document and validate these assumptions.

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Figure 3-16. Sample Assumptions Log
ID Assumption Category Owner Due Status Actions
Description Date

108 Supplier management Time Kristin Sep. 1 Closed Scheduled first

training should be
completed first

122 Employees will take Human Lucy Nov. 1 Open Meet with
some of the training resources dept. heads to
during non-work hours discuss

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Holding a Project Kick-off Meeting
 A kick-off meeting is a meeting held at the beginning of a project
so that stakeholders can meet each other, review the goals of the
project, and discuss future plans. Note that the PMBOK® Guide –
Sixth Edition, suggests that the kick-off meeting be held during the
end of the planning or start of the executing process group. In the
author’s experience, it is best hold it earlier.
 The project champion should speak first and introduce the project
sponsor and project manager
 If it cannot be held face-to-face, try to include audio and/or video
to engage and understand participants.

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Figure 3-17. Sample Kick-Off Meeting Agenda
Just-In-Time Training Project
Kick-off Meeting
July 16
Meeting Objective: Get the project off to an effective start by introducing key
stakeholders, reviewing project goals, and discussing future plans
Agenda:
•Introductions of attendees
•Review of the project background
•Review of project-related documents (i.e., business case, project charter, assumptions log)
•Discussion of project organizational structure
•Discussion of project scope, time, and cost goals
•Discussion of other important topics
•List of action items from meeting
Action Item Assigned To Due Date

Date and time of next meeting:

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Chapter Summary
 The five project management process groups are
initiating, planning, executing, monitoring and
controlling, and closing.

 Mapping the main activities of each project

management process group into the ten project
management knowledge areas provides a big picture of
what activities are involved in project management

Copyright 2017 Kathy Schwalbe LLC 39

Chapter Summary (continued)
 Global Construction’s Just-In-Time Training project
demonstrates the process of initiating a project. After a
project is approved, senior managers often meet to
perform several pre-initiating tasks
 The main tasks normally involved in project initiation

are the following:

◦ Identifying and stakeholders
◦ Creating the project charter and assumptions log
◦ Holding a kick-off meeting

Copyright 2017 Kathy Schwalbe LLC 40