Initiating a Project Process. This is the crucial step where you move from 'yes, this is a good idea' to 'yes, this is a doable, planned, and resourced project'. For the PRINCE2F exam, understanding this process is vital because it defines the formal start of the project and creates the single most important document you will ever need: the Project Initiation Documentation (PID).
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Have you ever been on the verge of buying a house? You've looked at dozens, you've finally found the one, and you've had your offer accepted. That's fantastic, but are you really ready to move in? Before you hand over the money and pack the boxes, you need to get a survey done, arrange the mortgage, check for dry rot, and make sure the legal paperwork is in order. You wouldn't just show up with a van and start unloading furniture, would you?
Initiating a Project is exactly that final, critical preparation phase. You've already decided the project is a good idea (like finding a house you like). Now, you need to dig deep and plan exactly how you're going to do it. This is where you create a detailed plan for the work, a full budget, and a schedule. You decide who will do what and agree on the exact quality standards. You also confirm that everyone involved—the project board (the bank and the estate agent in our house analogy)—is happy with the plan. Just as a house survey might uncover a problem that makes you walk away, initiating a project might reveal risks or costs that make the project not worth doing. It's the final check before the real work begins. Without this step, you're just moving boxes into a house that might not have a floor.
The Initiating a Project Process is the second of the seven PRINCE2 processes. It comes right after Starting up a Project, where you just decided if the project idea is worth a second look. Now, in Initiating a Project, you build the full, detailed foundation for the project. Think of it as laying all the plumbing and electrics in a house before you put up the walls—you cannot do the finishing work (the delivery stages) without this solid infrastructure.
The main goal of this process is to create the Project Initiation Documentation, or PID. The PID is not a single document, but a collection of plans and documents that answer every key question about the project. It includes:
The Project Plan: A high-level plan showing the major stages, activities, and timescales for the entire project. It is not a detailed week-by-week schedule, but a map of the whole journey.
The Business Case: An updated version of the document that justified the project in the first place. It now includes more precise costs, benefits, and risks. This is the project's 'why'.
The Risk Register: A formal list of all the risks (uncertain events that could affect the project) identified so far, along with their likelihood, impact, and planned responses.
The Quality Register: A log that tracks all the quality checks and reviews planned for the project's products. It ensures you don't just build something; you build it right.
The Project Approach: A strategy describing how the work will be done and what methods will be used (for example, whether the team will build software in-house or buy an off-the-shelf product).
The Communication Management Approach: A plan describing who needs to know what, when, and how. Will you send weekly emails? Monthly reports? It also covers how to handle complaints or requests.
The Change Control Approach: A plan explaining how changes to the project's scope, schedule, or budget will be managed and approved. This keeps the project from spiralling out of control.
The Configuration Management Strategy: A plan for tracking and controlling the different versions of the products being created (for example, different versions of a software file or a user manual).
The Benefits Management Approach: A plan outlining when and how the benefits of the project will be reviewed and measured after the project is finished.
This process also confirms the project's objectives are SMART—Specific, Measurable, Achievable, Relevant, and Time-bound. It agrees on the project's tolerances, which are the allowable deviations from the plan (e.g., you can spend 10% more than budget without needing permission). The Project Board—the group of people who ultimately own the project and make the big decisions—reviews the PID and, if they approve it, formally authorises the project to start the delivery stages.
Why does this process exist? It exists to replace a chaotic, ad-hoc start. In the old days (or on badly-run projects), a manager would simply announce, 'We're starting Project X!' and everyone would jump in without clear plans or budgets. That approach leads to missed deadlines, overspending, and often complete failure. The Initiating a Project Process forces discipline. It ensures that before you spend a lot of money and time, you have a shared understanding of what you are building, why, how much it will cost, who is doing the work, and what happens if something goes wrong. It is the project's insurance policy against disaster.
Prepare the Business Case
The project manager works with the team to refine the outline business case from the starting up phase. They add more precise cost estimates, define the benefits in measurable terms, and identify the major risks. This updated business case will help the project board decide whether to commit full resources.
Create the Project Plan
A high-level stage-by-stage plan for the entire project is created. It shows the major activities, milestones, resource needs, and timelines. This is not a detailed week-by-week plan, but a strategic roadmap for the full project duration.
Define the Risk Register and Risk Management Strategy
The team identifies all potential risks, assesses their probability and impact, and decides on responses (avoid, reduce, transfer, accept). The risk register is the live list of these risks. The risk management strategy is the approach for how risks will be managed throughout the project.
Establish Quality and Change Control Approaches
The team decides what quality standards the project's products must meet and how they will be checked. They also set up the processes for managing any changes to the project's scope, budget, or schedule. This prevents unauthorised changes from derailing the project.
Set Communication and Configuration Management Strategies
The project manager defines who needs what information, how often, and in what format. They also plan how to track different versions of the project's products (for example, different software versions). This ensures everyone stays informed and that the right versions are used.
Compile and Approve the Project Initiation Documentation (PID)
All the plans, registers, and strategies are assembled into the PID. The project manager presents this to the project board. The board reviews the PID, asks questions, and makes a final decision: authorise the project to proceed, or cancel it if it is not viable.
An IT professional, let's call her Sarah, is a Project Manager at a medium-sized retail company. The executive team has just approved the Starting up a Project phase for a new mobile app that lets customers scan items while shopping and pay through their phone. The idea was good enough to proceed. Now, Sarah has to run the Initiating a Project Process.
First, she gathers a small core team: a lead developer, a business analyst, a marketing representative, and a finance person. Over several weeks, they hold a series of workshops. They do not start coding yet—that comes later. Instead, they focus on planning. - Step 1: Update the Business Case. The initial estimate was £200,000. Now, the team does a deeper analysis. They find that integrating with the store's existing payment system will cost an extra £30,000. They also calculate that the app could save the company £50,000 per year in paper receipt costs and reduce checkout labour by 5%, which is a projected benefit of £100,000 per year. Sarah documents all this in a new Business Case. - Step 2: Create the Project Plan. The team breaks the project into stages: design, development, testing, deployment, and training. They estimate each stage takes 4-6 weeks. They create a Gantt chart (a timeline showing when each task starts and ends) to map out the full 6-month timeline. - Step 3: Define the Risk Register. The team brainstorms risks: 'The payment vendor might go out of business,' 'Customers might find the app confusing to use,' 'We might not get the necessary privacy permissions from the regulators.' For each risk, they assign a probability (e.g., 20%) and an impact (e.g., high cost). They also decide on a response—for example, for the privacy risk, they will hire a data protection consultant early. - Step 4: Set Quality Standards. What does 'good' look like for the app? They decide the app must work on both iPhone and Android. It must let the user scan a barcode within 2 seconds. It must show correct prices. They write these criteria into the Quality Register. - Step 5: Plan Communications. Sarah knows the store managers will be affected. She decides to send a monthly newsletter update to all managers. The project board will get a formal report every month with budget and timeline status. - Step 6: Create the PID. All these plans and registers are compiled into one master document—the PID. Sarah reviews it with her team and then presents it to the Project Board. The Board sees the updated Business Case, the risk list, the plan, and the quality standards. They ask a few questions: 'Why is the payment risk so high?' 'Can we reduce the timeline by a month?' After Sarah explains, the Board is satisfied. They formally sign off the PID. The project is now authorised to begin. Sarah can now start the next process: Directing a Project, which gives her the go-ahead to start the first delivery stage.
In real life, this process is not one meeting. It is an intensive period of analysis, discussion, and documentation. A good PM will involve people from different departments to ensure the plan is realistic. The key output is always the PID. Without it, the project would be like setting sail without a map, knowing where you want to go but not how to navigate the storms.
The PRINCE2 Foundation exam loves the Initiating a Project Process. Here is exactly what they will test you on, and how to avoid the traps.
First, remember the purpose: The purpose is to establish a solid foundation for the project. But the exam will often ask it as 'the process that creates the PID' or 'the process that enables the Project Board to decide whether to continue with the project'. Memorise both versions.
Key definitions to learn by heart:
PID: The collection of plans and documents that define the project (not a single document!)
The Project Board authorises the project after this process (not the Project Manager!)
The Business Case is updated during this process (not created—it was created in Starting up a Project)
Traps the exam sets:
They will ask: 'Who creates the PID?' The answer is the Project Manager. Not the Project Board, not the team. The PM writes it, but the board approves it.
They will ask: 'What happens if the project is not viable during initiating?' The correct answer is that the Project Board may cancel the project. The exam loves testing that this process can lead to a 'no-go' decision.
They will ask about the difference between Starting up a Project and Initiating a Project. Starting up is a brief check that the project is worth considering. Initiating is the detailed planning phase.
They will list several management products (e.g., Risk Register, Quality Register, Project Plan) and ask which one is created DURING Initiating. The answer is the full PID set—but note that the Risk Register was started in Starting up a Project. Now it is updated. The exam likes to test what is created versus what is updated.
Specific concepts you must know:
Tolerances: The project's allowed deviation (e.g., cost tolerance 10%). These are set during initiating.
The Project Approach: How the work will be done (building vs buying).
The Communication Management Approach: Who gets what info and when.
The Change Control Approach: How changes are handled.
The Configuration Management Strategy: How versions of products are tracked.
The Benefits Management Approach: How the benefits will be measured.
The Project Board's role: They review and approve the PID. The Project Manager creates it.
Question types that appear:
Direct definition questions: 'What is the purpose of the Initiating a Project process?'
'Which document contains the detailed plan for the project?' (Answer: The Project Plan, which is part of the PID)
'Who approves the PID?' (Answer: The Project Board)
'What is a key activity in this process?' (Answer: Updating the Business Case with more detailed costs and benefits)
'Which management product is created during this process?' (Answer: The full PID, including the Project Plan, Communication Management Approach, etc.)
Scenario questions: 'The project team is about to start building. The PM has not yet created a risk register. What has been missed?' (Answer: The Initiating a Project process has not been properly completed.)
Memorise the specific outputs: The PID and its components. Know that the Business Case is updated, not created. Know that the Project Board authorises the project. If you remember these three points, you will pass this section easily.
The main output of the Initiating a Project Process is the Project Initiation Documentation (PID), a collection of plans and strategies that form the project's foundation.
The Project Board authorises the project to proceed after reviewing and approving the PID during this process.
The Business Case is updated, not created, during Initiating a Project; it was originally created in Starting up a Project.
The Project Manager is responsible for creating the PID, but the Project Board must formally approve it.
If the project is found to be not viable during this process, the Project Board has the authority to cancel the project before any significant work begins.
The PID must include the Project Plan, Business Case, Risk Register, Quality Register, Communication Management Approach, Change Control Approach, Configuration Management Strategy, and Benefits Management Approach.
Tolerances (allowable deviations from budget, time, etc.) are defined and agreed upon during this process.
The Initiating a Project Process is about planning, not doing the actual project work; building the product happens in later stages.
These come up on the exam all the time. Here's how to tell them apart.
Starting up a Project
Creates an outline business case.
Produces a project brief (not a full plan).
Is a brief pre-check to see if the idea is worth a second look.
Initiating a Project
Updates the business case with detailed costs and risks.
Produces the full PID with plans and strategies.
Is a full planning phase that enables a go/no-go decision from the board.
Project Brief
Created during Starting up a Project.
Is a short summary of the project idea.
Does not include detailed plans or management strategies.
Project Initiation Documentation (PID)
Created during Initiating a Project.
Is a collection of detailed plans and strategies.
Includes the full project plan, risk register, and quality approach.
Project Manager Role in Initiating
Creates the PID.
Compiles all the documents and plans.
Presents the PID to the board.
Project Board Role in Initiating
Reviews and approves the PID.
Decides whether to authorise the project.
Can reject the PID and cancel the project.
Business Case (Created in Starting up)
Based on initial estimates and assumptions.
Often high-level and approximate.
Used to decide if the project is worth starting.
Business Case (Updated in Initiating)
Based on detailed analysis from the team.
Includes precise costs, benefits, and risks.
Used by the board to give final authorisation.
Mistake
The Initiating a Project Process is where the actual project work starts, like building software or installing equipment.
Correct
This process is only about planning and documentation. The actual work of building the product happens in the subsequent 'Controlling a Stage' and 'Managing Product Delivery' processes. You cannot start building until the PID is approved.
The word 'initiating' sounds like 'starting', so beginners assume it means doing the real work. In PRINCE2, 'starting' the real work is a different process that comes later.
Mistake
The PID is a single, stand-alone document that the Project Manager writes alone.
Correct
The PID is a collection or 'bundle' of several documents, including the Project Plan, Business Case, Risk Register, and multiple management approaches. It is created by the Project Manager with input from the team and other stakeholders.
The name 'Project Initiation Documentation' implies a single document. Beginners do not realise it is a compilation of multiple components, which is a common exam trick.
Mistake
The Business Case is created during the Initiating a Project Process.
Correct
The Business Case is first created in the preceding process, 'Starting up a Project'. During Initiating a Project, it is simply updated with more accurate costs, benefits, and risks.
Because the Business Case is a central concept and the PID includes it, learners mistakenly think it is born in this process. The exam loves testing the sequence of when things are created vs updated.
Mistake
If the project plan is detailed enough, the Initiating a Project Process is complete.
Correct
A complete initiation requires all components of the PID: the Project Plan, Business Case, Risk Register, Quality Register, and all the management approaches (communication, change control, configuration, benefits). Missing even one means the process is not finished.
Learners focus on the plan because it is the most visible deliverable, overlooking the less obvious but equally important management strategies.
Mistake
The Initiating a Project Process ends when the PID is written.
Correct
The process ends only when the Project Board formally reviews and approves the PID. The process is not complete until that authorisation is given. If the board rejects the PID, the project may be cancelled.
Beginners think of a process as a one-person activity. They forget that PRINCE2 is hierarchical, and the board's approval is a required final step.
Mistake
Initiating a Project is only done once, at the very start of the project, and never referenced again.
Correct
While the process is executed at the beginning, the PID is a living document. It can be updated and revisited during the project, especially if major changes occur. However, the process itself is done once per project (unless the project is restarted).
People confuse the process (which happens once) with its output (the PID, which can be updated). The exam might test that the PID can change, but the process itself is not repeated.
Reveal each answer, then mark whether you got it right. Score 60%+ to unlock the next chapter.
Starting up a Project is a quick pre-check: 'Is this idea worth a second look?' It creates an outline business case and a project brief. Initiating a Project is the full planning phase: it creates the detailed PID, including the full project plan, risk register, and quality plan. You cannot skip to initiating without first doing starting up.
The Project Manager writes and compiles the PID with help from the team. The Project Board (the senior decision-makers) approves it. This is a key exam distinction: the PM creates, the board authorises.
Yes, absolutely. If the updated Business Case shows the project is not profitable, or if the risks are too high, the Project Board can decide to stop the project. This is one of the main reasons the process exists—to catch problems early before major money is spent.
No. The PID is a living collection of documents. While the process happens once, the documents inside can be updated as the project progresses, especially if there are major changes. However, the 'Initiating a Project' process itself is not repeated unless the project is completely restarted.
If the board does not approve the PID, the project cannot proceed to the next processes (like Directing a Project or Controlling a Stage). The project may be put on hold for further analysis, revised and resubmitted, or cancelled entirely. No official work begins without approval.
Yes. The updated Business Case is one of the key components inside the PID. The other components include the Project Plan, Risk Register, Quality Register, and the various management approaches (communication, change control, configuration, benefits).
Yes, you should. The exam often asks which management products are created or updated during this process. The PID includes: Project Plan, Business Case, Risk Register, Quality Register, Communication Management Approach, Change Control Approach, Configuration Management Strategy, and Benefits Management Approach.
You've finished Initiating a Project Process. Continue through the PRINCE2F study guide to build a complete picture of the exam.
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