Project Initiation Document or better known as PID is a major piece of document for any given project. The Prince2 methodology requires project managers to accomplish the Project Initiation Document first before starting any other activities of the project. The PID will be assessed and reviewed in the board room and everyone involved in the project including the stakeholders should be aware of the contents of this document.
The Project Initiation Document should contain all key aspects of the project. It outlines every activities of the project in a simple and concise manner in order to accommodate even those not technically versed in project management. Specifically, the goals and major aims of the project should be included in the PID. The goal normally is the major deliverable of the project. Every activity should be aligned to the project goal. Another important aspect of PID is the scope and limitation of the project and the corresponding structures and organization needed as well as control mechanism. The scope should determine the type of organization for the project. This is important in order to effectively handle activities at each level of project implementation. Finally, the Project Initiation Document must have a clear business case which will justify the project itself.
The Project Initiation Document is very important in order to start any project on a sound footing. Every aspect of the project should be considered before any major activity is launched. In fact, the creation of PID signifies that the Start up phase of the project has started and it should be ready for launch once the approval of the Company Board has been clinched.