How to Initiate Projects Successfully

How to Initiate Projects Successfully

Did you know that a large percentage of projects are cancelled before they even reach the detailed planning phase? The most common reason is that they have not been properly defined and scoped, and as a result, they lack the sponsorship needed to ensure their success.

Therefore, it's critical that you initiate your projects as quickly and efficiently as possible, by taking these 6 steps:

Step 1: Develop a Business Case

The first step taken when initiating a new project, is the creation of a comprehensive Business Case. A Business Case describes the business problem / opportunity to be addressed by the project and the alternative solutions available. The potential costs and benefits associated with each alternative solution are also defined.

The Business Case becomes the foundation for the project as it fully documents the reasons for creating the project and the key benefits to be delivered. Once produced, the Business Case should be formally endorsed by the Project Sponsor, before funding is allocated to the project.

Step 2: Undertake a Feasibility Study

A Feasibility Study is completed to identify the likelihood of the alternative solutions actually delivering the benefits stated in the Business Case. Based on the results of the Feasibility Study and the Benefits and Costs portrayed in the Business Case, a preferred solution is identified and once again, is approved by the Project Sponsor.

If you can complete a comprehensive Feasibility Study, then you will greatly improve your chances of delivering your project successfully. 

Step 3: Establish the Project Charter

Once the problem and solution have been identified, a new project is then defined to deliver the solution. The "Project Charter" is documented, which essentially describes what the project sets out to achieve and the boundaries within which it must achieve it.

The project vision, objectives, scope, deliverables, project organization and an implementation plan are all clearly stated in the Project Charter document. 

Step 4: Appoint the Project Team

Now that the project is defined, it is time to appoint the team. The Project Board is established and the Project Manager is recruited to take on responsibility for the project. The Project Manager recruits the Team Leaders and they in turn help recruit project staff. Every team member is assigned a detailed Job Description, defining their role and responsibilities within the project. 

Step 5: Set up a Project Office

The Project Office environment is then established, as the physical place of residence for the team for the duration of the project. This environment will provide the premises, equipment, materials, tools and processes required to enable the members of the project team to perform their roles successfully. A checklist is used to ensure that the Project Office has been set up correctly and will continue to support the Project as needed. 

 Step 6: Perform Review

Once the project has been defined and the team have been appointed, you're ready to perform a project phase review. A Phase Review is completed to ensure that all of the required Initiation activities have been undertaken and to provide formal approval to proceed to the next phase: Project Planning.

And there you have it - 6 steps to initiating projects successfully. 

What is a Feasibility Study

A feasibility study as an analytical tool used during the project planning process, shows how a business would operate under an explicitly stated set of assumptions. 

These assumptions include the technology used (the facilities, types of equipment, manufacturing process, etc.) and the financial aspects of the project (capital needs, volume, cost of goods, wages etc.). 

The feasibility study represents the first time in a project development process that the pieces are put together to see if they perform together to create a feasible concept, both technically and economically .

The feasibility study also shows the sensitivity of the business to changes in these basic assumptions.

 Feasibility studies contain standard technical and financial components, presented in more detail in a later section of this report, but the exact appearance of each study varies. This variation depends on the industry studied, the critical factors for that project, the methods chosen to conduct the feasibility study, and the budget of the study. 

Emphasis can be placed on various sections of an individual feasibility study depending on the needs and requirements of the group for whom the study was prepared. Since most studies have multiple potential uses, it is critical to design the study so that the material provided will serve the needs of all these.

The feasibility study provides an evaluation of the potential for success for a project. The perceived objectivity of the evaluation is an important factor in the credibility placed on the study by potential investors and financiers. Also, the creation of the study requires a strong grounding in both the financial and technical aspects of the project. For these and other reasons, persons from outside of the membership group or consultants conduct most feasibility studies.

Feasibility studies for a cooperatives are similar to that for any other type of business, with one important exception: member-users are concerned with having the cooperative be successful because that will help make their personal businesses more successful. Hence, feasibility studies must address the impacts of the project on members as well as the cooperative