Chapter Two. Initiation and Planning

The entire project management process can be divided up into five different phases: Initiation, Planning, Execution, Control, and Closing. The diagram shows that the different phases come at specific parts of the project. However, in reality there are many overlaps between the phases, and seldom do you see one phase completely finished before the next begins. For the purpose of studying for the exam, we will combine Initiation and Planning. Later we will look at the Planning and Execution phases together, the Execution and Control phases, and finally the Control and Closing phase.

Initiation and Planning occur before Execution and Control, and much of what you need to know about project management can be made simpler by combining two sections. The first of these phases, Initiation, is the time when someone or some organization specifically authorizes beginning and executing a project. Actually, Initiation is often the most overlooked of all the phases. Along with Closing, it seems to fall by the wayside in a lot of organizations.

Although the authorizing of resources may seem to be absolutely necessary, it is surprising how many times projects begin without specific authorization from one person. You must have one person to authorize all the resources, and that one person must have control of the project. This means that only one person is authorizing materials, money, and people. In many organizations, a department or a group of people approves projects. This can cause problems. Without a single point of responsibility for the project, there is a major issue of accountability floating through this process. Only when you have a single source for accountability can you be truly certain that one person is watching the project and is responsible in the end for the final outcome of the project.

Note that the person who authorizes the project is not the project manager. This person is called the sponsor. A question about this would come in the form:

Q.	The person in the organization who authorizes the commencement of a project is the:
		A.	Senior Manager
		B.	Project Manager
		C.	Sponsor
		D.	Project Specialist

The answer is C. The project manager executes the project but does not authorize the project. The project manager's duties do not begin until someone within the organization has authorized resources. He or she is then brought into the process of planning and controlling the entire project. Let's look at the document that is used to begin a project; this document is called a Charter.

The Charter is the written document that releases organizational resources to the project and assigns accountability for the project. This is the document where the sponsor's signature is found. There are two other major parts of the document.

First, the business reason for conducting the project is determined. If the project doesn't fit within the general business strategy of the company, it shouldn't be started. This reason should be stated in the Charter.

Second, the project manager is assigned. The best possible situation is for a project manager to be chosen at the beginning of the project and then manage the project through to its conclusion. As most of us know, that doesn't always happen. It doesn't mean that it shouldn't, just that it doesn't.

Is a Charter created every time a project is started? Hardly. On major engineering projects and large construction projects, there will be some kind of Charter. (It's not good form to start building a bridge without someone first authorizing resources.) But on some smaller projects, particularly ones found in organizations that do not have project management practices in place, projects are often started simply by writing down a request on a napkin in the company cafeteria. It's a good idea for everyone involved to get a written Charter. It protects everyone and gives the project manager his or her first general guidelines from which to work.

Here are some Charter questions.

Q.	The document that authorizes the release of organizational resources to the project is the:
		A.	Statement of Work
		B.	Project Design Plan
		C.	WBS
		D.	Charter

The answer is D. The Charter is the document that formalizes the project. Without a Charter, you may be in deep yogurt as the project goes on because you will be using organizational resources and someone above you in the organization must authorize it. It seems obvious, but often is not the case, that the person who is authorizing the work must have the authority to do so.

Q.	The project manager is assigned in the:
		A.	Charter
		B.	Project Plan
		C.	SOW
		D.	Management Plan

The answer is A. Failure to get a project manager assigned early in the project can lead to delays and problems as the project is executed.

Q.	Without a ________ the project cannot go forward.
		A.	Leader
		B.	Charter
		C.	Project Administrator
		D.	WBS

The answer is B. This question is a good example of why you want to look over questions and answers carefully. In this case the reason that Charter (B) is the correct answer is that it precedes everything else. There can be no leader or WBS without a Charter. When you take the test, be sure to look through the exam and determine what the best answer is. Two answers may look correct, but find the one that PMI is looking for. That's what we are doing in this book.

Let's go back to the question of whether Charters are always created. The answer is that you find perfect documentation and perfect projects only in theory; in real life, a lot of projects begin without a formal document. This doesn't mean that you should not try to create one; it simply means that reality often dictates that one isn't forthcoming. You do need to know what a Charter is for the test.