A Project Initiation Document or PID provides a structure to how a company proposes and authorizes projects. It is one of the best practices that organizations follow to maintain transparency and consistency. In this article at PM Majik, you get to know what a Project Initiation Document is.
Project Initiation Document: The Works
A Project Initiation Document helps the management understand the purpose and importance of the proposed project. It is generally a Word document but can be presented as a spreadsheet or PPT. The document includes the project objectives, benefits, relevance to the company strategy, and timeline. It also explains the possible risks, roles, and skills of the project, governance requirements, and the estimated budget. A well-written document will help the resources gain a fair understanding of the project at hand. The size and time to compose this document vary based on the project length.
When Is It Needed?
A Project Initiation Document should have all the project details for sponsors to make informed decisions before approving the budget. It is needed for the following reasons:
- It enables all the stakeholders to have a fair, consistent idea about the time and budget of the proposed project.
- It helps to select projects that are in sync with the business objectives of the company.
- It is a means by which the project team showcases its capabilities and vision.
- It is a document that helps the team to kickstart the project when the stakeholders consent to the details.
- It forms a contract between the project team and the stakeholders or steering committee.
The Project Initiation Document helps to monitor how the projects get authorization. It also ensures that strategically aligned projects get priority over the unstructured ones.
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