The project initiation stage of project management determines both the nature and scope of the development. If this stage isn't well performed, it is not very likely that the project will be successful in meeting the needs of the organization. The key project controls needed here are an understanding of the business environment and making sure that all necessary controls are incorporated into the project. Any deficiencies should be reported and a recommendation should be made to fix them.

The initiation stage should include a cohesive plan that encompasses the following areas:

    * Analysis of the business needs in measurable goals.
    * Review of the current operations.
    * Conceptual design or prototype of the operation of the final product.
    * Equipment and contracting requirements including an assessment of 'long-lead' items.
    * Financial analysis of the costs and benefits including a budget.
    * Stakeholder analysis, including users, and support personnel for the project.
    * Project charter including costs, tasks, deliverables, and schedule.