Creating a Project Initiation Document: Essential Templates and Steps

A project initiation document (PID) is a critical project document that outlines key details about a project before it begins. The PID defines the objectives, scope, approach, and other aspects to align stakeholders and set the project up for success. This comprehensive guide will walk through what to include in a project initiation document, templates to use, and step-by-step instructions to create one.

Having a well-defined project initiation document sets the stage for project success by getting everyone on the same page. This living document is an essential part of project management methodology and documentation that is referred to throughout the project lifecycle. Read on to learn why a PID is so important for both simple and complex projects.

What is a Project Initiation Document (PID)?

A project initiation document is a detailed plan created at the beginning of a new project that defines key details including objectives, scope, approach, roles, responsibilities, risks, assumptions and more. It is like a project charter or project brief but more comprehensive, documenting everything a project team needs to know to successfully deliver the project.

The PID is created during the initiation phase of a project lifecycle before the planning stage. It serves as a guide for the project manager and project team and is often used when managing a project using project management methodologies like PRINCE2 or PMBOK.

The main purposes of the project initiation document are:

• Provide detailed project information all in one document

• Align project stakeholders on the scope, objectives, approach

• Define roles and responsibilities

• Outline project governance

• Identify risks to be managed

• Set the stage for successful planning and execution

Having this detailed project initiation documentation enables clear communication about the project and what needs to be delivered. It also serves as an important reference document for the project manager and project team to refer back to throughout the project lifecycle.

Why Create a Project Initiation Document?

There are many excellent reasons to take the time upfront to create a comprehensive project initiation document before kicking off your project work.

• Define the project scope and objectives - The PID provides detailed information on what the project entails, key deliverables, objectives and success criteria. This alignment early on ensures the project starts off on the right foot.

• Get stakeholder buy-in - Developing the PID requires input from key stakeholders who review and sign-off on the document. This buy-in helps ensure everyone understands and agrees to their roles and responsibilities in the project.

• Plan an approach - Documenting the approach, methodology, processes and governance gives the team direction on how to execute the project.

• Identify risks to manage - Calling out potential risks lets you proactively monitor and manage them. Being aware of risks helps prevent issues.

• Enable collaboration - Having one agreed common reference document allows for better collaboration and coordination within the team.

• Meet standards and requirements - A PID may be a mandated part of project management methodologies or meet organizational requirements. Taking the time to create one sets the project up for success.

• Set the stage for planning - With objectives, scope and approach defined in the PID, the team can then effectively create the project schedule, plans, budget and other details needed to deliver.

The time invested upfront in properly planning and documenting project initiation details pays off exponentially throughout the project lifecycle. Taking the time to create this vital document enables smooth execution and delivery with much less chance of errors, issues and scope creep. Invest in a PID to give your project the best chance of success.

What to Include in a Project Initiation Document

The project initiation document contains detailed planning and requirement information for the project team’s reference. While the exact PID format can vary based on project management methodology and organizational needs, some standard sections to cover include:

Project Overview

• Project name - Official name of the project

• Project description - High level summary of what the project entails

• Project purpose - The business needs driving the project

• Project objectives and success criteria - What the project aims to achieve and metrics for success

Scope

• Project scope - Detailed description of what is included in and excluded from the project

• Milestones - Key milestones for deliverables, events, phases etc.

• Deliverables - All products or services to be delivered by the project

• Requirements - Any requirements that must be met, such as quality, compliance or regulatory

Approach

• Project methodology - The chosen methodology and process for executing the project e.g. Agile, PRINCE2

• Work breakdown structure - Breakdown of tasks and subtasks in the project

• Change management - The process for handling change requests and scope changes

Organization

• Roles and responsibilities - Defines all roles on the project with responsibilities for each

• Project organization chart - Visual diagram of roles and hierarchy

• Communication plan - How project communications will be managed and key contacts

Governance

• Project board - Project sponsor, senior stakeholders who oversee the project

• Steering committee - Group that reviews project progress and provides guidance  

• Escalation procedures - Process for escalating project risks, issues and change requests

Budgets & Timeline

• Budget - Approved budget for the project

• Major milestones - Key dates, timeline and deadlines for the project schedule

Risks

• Risk register - Outline of potential risks, likelihood, impacts, mitigation strategies

• Assumptions - Assumptions made that could impact the project

Approvals

• Sign-off - Sign-off section for project sponsor and key stakeholders to approve PID

• Approval date - Date approvals were completed

Helpful Project Initiation Document Templates

Rather than starting from scratch, a helpful tip is to use free project initiation document templates. There are many templates available online to choose from. We’ve included links to some useful project initiation document templates below:

• PRINCE2 project initiation document template

• Project management PID Word template

• Simple PID template

• PID template for construction projects

The right template provides a starting structure and prompts to ensure you cover all the key sections in your project initiation document. Look for a template that aligns with your chosen methodology, whether that be PRINCE2, PMBOK, Agile or a hybrid model.

Many project management tools such as Trello, Asana and ProjectManager also provide built-in PID templates. And your own organization may already have standardized templates available to use.

Start with a template then customize and tailor it to your specific project for the best PID. Having this thorough project initiation document sets your project up for success from the start.

How to Create a Project Initiation Document: 6 Steps

Once you have a template selected, follow the process below to develop your project initiation document:

Step 1 - Gather Information

First, gather all the required information for the PID. This includes defining the project objectives, scope, approach, risks, organization, costs and other details. Work with the project manager, sponsor and key stakeholders to collect the information needed for each section.

Step 2 - Hold a Kickoff Meeting

Hold a project initiation kickoff meeting with the sponsor and key stakeholders. Review the objectives, scope and approach. Get agreement and sign-off on the information before developing the full PID.

Step 3 - Complete PID Sections

Using your template, work through and complete each section of the project initiation document. Fill in all details gathered including scope, schedule, budgets, risks, responsibilities and more.

Step 4 - Incorporate Feedback

Share the draft PID for review with the project manager, sponsor and other stakeholders. Incorporate any feedback given to refine and improve the document.

Step 5 - Final Approvals

Once finalized, obtain official sign-off on the project initiation document from all key stakeholders. Confirm they agree with the objectives, scope, roles and approach defined.

Step 6 - Distribute Final PID

The approved final version of the project initiation document should be shared with the full project team and stakeholders. This delivers one single reference document everyone can access containing key project details.

Be sure to specify the PID is a living document that may be updated as needed during project execution. Review the PID regularly for any required changes and adjustments.

Having a comprehensive project initiation document provides an invaluable foundation for delivering project success.

Key Takeaways for an Effective Project Initiation Document

Creating a project initiation document upfront aligns everyone on the project details and approach before execution gets underway. Follow these best practices for an effective PID:

• Use a template - Save time by starting with a template for your chosen methodology. Then customize it for your specific project needs. 

• Get stakeholder input - Make sure to include sponsor, project manager and key team members in developing the PID.

• Provide sufficient detail - Find the right balance between high-level and detailed information to supply what the team needs.

• Keep it updated - Specify the PID is a living document that may need adjustments as the project progresses.

• Make it readily accessible - Store the PID where the project team can easily access it throughout the project.

• Communicate proactively - Share the final PID and reinforce it as the go-to reference for all project details and questions.

Investing time upfront in a project initiation document gives your project the best chance of aligning stakeholders, meeting objectives and avoiding issues. Use this guide to create a PID that sets your project up for success.