Think of a situation where anyone could start any project within an organization. The end result will be total chaos. First of all project owners have very limited resources of time and cost and they must utilize it in such a way to gain maximum benefits from the project in the shortest possible time. Secondly, the projects must be in alignment to the organization’s strategy for growth.
Formal project initiation ensures that only the right projects get the green signal to proceed further into the subsequent stages of planning, execution, monitoring & control and closing.
The sponsor of the project is accountable for the formal initiation of the project. Two main activities performed during initiation are;
- Developing the project charter
- Identification of the stakeholders