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PgMP Certification: Initiation Process Group

PgMP Tutorial: Program Initiation Process Group

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This tutorial covers the Program Management process group Program Initiation.

  1. Initiating the program process group covers the process of adequately defining the program by clearly stating the scope and benefits expectation. It involves generating important documents such as Program Charter and identification of the Program Manager. The Processes are listed in table below:

    Processes in Program Initiation process group

    Program Initiation Process Major Output Knowledge Area
    Initiate Program Benefits Realization Plan Integration Management
    Authorize Projects Program Charter Integration Management
    Initiate Team Core Program Team Human Relation Management

  2. The Inputs, Tools and Techniques and Outputs of Initiating the Program process group are given below:

    Processes in Program Initiation process group

    Input Tools & Techniques Output
    Business Case Benefit Analysis Benefits realization Plan
    Funding for the Initial Phases of the program Expert Judgment Documentation for the contract or statement of work(SOW)
    Investment Analysis Selection Methods Preliminary Program scope statement
    Strategic and tactical plans of the organization Program benefits statement
    Program Charter
    Program Manager Identification
    Program selection Criteria
    Program sponsor identification

  3. Program Initiation process begins with the input of Business case that is developed by creating a high-level business plan. The Business case documents the strategic problem that the program needs to solve. Business case also documents the benefits the program will achieve.
  4. The Funding sources are important for the initial program setup. They may be internal or external however they need to be considered for the benefits realization plan.
  5. Benefit Cost Ratio (BCR), Cash Flow (CF), Discounted Cash Flow (DCF), Internal Return Rate (IRR), Opportunity cost, Return on Investment (ROI), Present Value (PV) and Net Present Value (NPV) are various techniques used in the investment analysis involved in Program Initiation phase to present a realistic business case.
  6. Every organization has strategic and tactical plans. The goals of Program must be aligned with the organizational plans.
  7. Benefits analysis is a technique to identify the required program benefits and to determine how these benefits will be achieved. The results of the analysis are documented in Benefits Realization plan.
  8. Expert Judgment is the decision making process based on expert advice.
  9. Selection Methods is the technique used to select which projects should be executed as part of the program. These include scoring models, benefit-contribution models and economic models.
  10. Benefit realization plan includes definition of each benefit and how these will be achieved. It also includes communication plan for benefits realization, procedure for benefit measurement, roles and responsibilities for benefits management, and mapping between program outcomes and benefits. The plan also includes how benefit will be sustained at the end of the program. NPV, ROI and IRR are used extensively for the analysis.
  11. A statement of work (SOW) is a formal document that describes the scope of the program. It defines boundaries around the program, describing what is included and excluded.
  12. Preliminary program scope statement defines the objectives and deliverables of the program.
  13. Program benefits statement describes the benefits that the program will deliver.
  14. A Program charter documents the mission and vision statement for the program. A charter explains the importance of the program wrt organizational goals.
  15. Authorize Projects Process is a program initiating process used to authorize projects in the program that includes obtaining project approval, issuing a program charter and assigning a project manager. The inputs and outputs are as below:

    ITTO in Authorize Projects Process

    Input Tools & Techniques Output
    Program Scope Statement Identification: project sponsor and project manager
    Project Selection Criteria Project Charter
    Strategic Plan Program reporting requirements
    Project funding approval

  16. Program Team initiation is an integral part of program initiation without which the program would not be considered initiated.

    ITTO in Program Team initiation process

    Input Tools & Techniques Output
    Recruitment Practices Responsibility assignment matrix(RAM) Core Program team assignments
    Staffing pool description Organizational process assets(OPA) Program manager assignment
    Negotiation and Acquisition Program team directory
    Virtual Teams or distributed teams

  17. Recruitment practices set the procedure for recruitment of team for the program.
  18. RAM or responsibility assignment matrix is the accountability matrix that specifies the relationships between roles, responsibilities and team members. This is also known as RACI chart because it assigns the following roles to the team members for various activities:
    • Responsibility ( R )
    • Accountability ( A )
    • Consult ( C )
    • Information ( I )
  19. Organization process assets (OPA) such as employee databases, Job descriptions are used to determine roles and responsibilities of each role.
  20. Core program team assignments are done to place the key individuals of the core team in place.
  21. Program team directory contains the list of program team members and information about them such as roles, responsibilities and communication information etc.

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