The Initial Investigation Stage: Have a Quick Look at It!
The goal of the Initial Investigation Stage is for you to examine the proposal as quickly as possible (say, within one to six weeks), and to evaluate it against the existing business plans of the company to determine if what is intended is likely to be viable in financial, operational, technical and customer terms.
‘To have begun is half the job: be bold and be sensible.’
HORACE, 65–8 BC
Overview
The goal of the Initial Investigation Stage is for you to examine the proposal, as quickly as possible, (say, within one to six weeks), and to evaluate it against the existing business plans of the company. You need to determine if what is intended is likely to be viable in financial, operational, technical and customer terms.
You will need to:
- make a preliminary assessment of the business opportunity, benefits, possible solutions, costs, technology needs and the likely impact on the operational platforms and groups, infrastructure and capabilities;
- check for overlap, synergy or conflict with other projects in progress or capabilities in use;
- plan the work content for the remaining stages of the project.
Remember, this is only an initial assessment; do not run ahead of yourself by working to too high a degree of accuracy. Think in ranges, rather than absolutes. For example, ‘this project will cost between $75,000 and $200,000 and take four to eight months, with cost savings of the order of $100,000–200,000 per year.’
Key deliverables
The Initial Business Case document contains the business rationale for the project. It is the document which outlines WHY you need the project, WHAT options you intend to work on, HOW you will do it, and WHO is needed to make it happen. It also answers the question HOW MUCH? and hence is used to authorise the funding for at least the next stage of the project. The Initial Business Case does not comprise a full analysis, but only sufficient to enable you to decide if it is worthwhile continuing the project. The full Business Case will provide the definitive appraisal for the project.
The Initial Business Case includes:
- a preliminary assessment of the financial aspects of the proposed development;
- an outline of the requirement in terms of customer/user ‘feel,’ technology, commercial, and market needs;
- a definition of the project which would be required to meet these (in detail for the next stage and in outline for the whole project).
It also evaluates the project against the existing strategies and goals of the company to confirm its fit and to determine if it is likely to be viable in both business, technical, operational, and customer terms. See the CD-ROM and p. 293 for more detail.
The Project Plan is a key appendix to the initial business case and defines the schedule, cost, and resource requirements for the project. This is defined in summary to completion of the project and in detail for the Detailed Investigation Stage.
| Deliverable | Prepared by | Review by | Approved, prior to gate, by |
| Initial Business Case | Project manager | Impacted or benefiting functions and business units | Project sponsor |
| Project Plan | Project manager | Impacted or benefiting functions and business units | Project sponsor |
Note: These are minimum roles and deliverables only. Each project manager should define the full set pror to the start of the stage. At the discretion of the project manager, a separate initial investigation report and/or output definition may also be produced.
Process steps
Initial Investigation Gate. This gate is the point at which a decision is made as to whether an initial investigation (business, technical, marketing and operational) should be undertaken and whether there are resources to do it. If the Proposal is authorised, the Initial Investigation Stage is started. See checklist on p. 92.
- The appointed project manager engages the study team, registers the project, ensures a project account has been opened, and informs all relevant stakeholders of stage entry (see Chapter 19).
- The team, led by the project manager, undertakes the initial investigation, confirming the need for the project, objectives and strategic fit. They will also derive possible solutions for further investigation. The project manager agrees the outcome and recommendations with the project sponsor.
- The team defines the project and prepares the project plan, in detail for the next stage and in outline beyond. The potential resource needs should be discussed and agreed with the relevant functions.
- The project manager, with the team members, prepares and agrees the initial business case document.
- The Initial Business Case, including the project plan, is reviewed by the project sponsor and any other relevant stakeholders. It is then either accepted, rejected, deferred or amendments are requested.
The Initial Business Case is submitted for gate authorisation.
Figure 6.1 Steps in the Initial Investigation Stage
