A project initiation document (PID) sets out what a project will deliver, why, how, by whom, when and at what cost. It is approved before the main work starts and then used to control the project. It contains the business case, which explains why the project is worth doing by comparing options, costs, benefits and risks.
The project life cycle
What goes in a business case
Chapter 17 of the book says a business case justifies the project through:
| Section | Contents |
|---|---|
| Strategic fit | How the project supports the organisation's objectives |
| Options | Usually do nothing, do the minimum, or do something, with a recommendation |
| Benefits and costs | Financial and non-financial benefits, costs, and investment appraisal such as NPV and payback |
| Constraints | Time, budget, resources, legal limits |
| Risks | Main risks and how they will be managed |
PID checklist
| Section | Question it answers |
|---|---|
| Background and objectives | Why are we doing this and what does success look like? (SMART objectives) |
| Scope and exclusions | What is in and, just as important, what is out? |
| Deliverables | What will be produced? |
| Business case | Is it still worth doing? |
| Organisation and roles | Who is the sponsor, project manager, team, and who decides? |
| Plan, milestones and budget | When, and for how much? |
| Tolerances | How far can time or cost slip before the board must be told? |
| Risk, quality, change and communication approaches | How will we control the project? |
Business case and PID in ACCA SBL
Project management sits in syllabus area H. You could be asked to write or review part of a business case, or explain to a sponsor why a PID matters. Use case numbers to quantify benefits, separate tangible from intangible benefits, and be sceptical about optimistic forecasts. For example, a business case for Historic Places (March 2025 pre-seen)'s digital ticketing project would compare doing nothing, a basic upgrade and a full platform.
Advantages
- Gives a clear agreement before money is spent
- Sets scope, reducing scope creep
- Provides a baseline to control against
Limitations
- Can become a box-ticking exercise
- Time-consuming for small projects
- Out of date if not reviewed at each stage
FAQs
What is a project initiation document?
The PID is the main document approved at the start of a project. It sets out what the project will deliver, why, how, by whom, when and at what cost. In PRINCE2 it forms the agreement between the project board and the project manager.
What is the difference between a business case and a PID?
The business case explains why the project is worth doing: options, costs, benefits and risks. The PID explains how it will be run, and includes the business case as one of its parts.
What should a PID include?
Background, objectives, scope and exclusions, deliverables, the business case, the project team and roles, the plan and milestones, budget, tolerances, risk, quality, change control and communication approaches.
Who approves the PID?
In PRINCE2, the project board, led by the project executive. Once approved it is baselined and only changed through change control, usually reviewed at the end of each stage.
What is the difference between a project brief and a PID?
The project brief is a short outline used to decide whether to start initiation. The PID is the fuller, detailed document produced during initiation.