A beginner’s guide to the project initiation document (PID): What is it and why does it matter?

For those new to project management, few documents are as important — or as misunderstood — as the project initiation document, or PID. It’s often seen as a formality, something to tick off before the “real” work begins. But in PRINCE2®, the PID is much more than a paperwork exercise. It’s the foundation for everything that follows.

Understanding what a PID is, and how to write one well, is a key milestone in building project credibility. It’s also a practical way to demonstrate professional PM skills early in your career.

What is the PID in project management?

The project initiation document brings together all the critical information needed to start a project with clarity and control. In PRINCE2, it’s the primary reference point for how the project will be managed, by whom, and to what end.

Think of it as a contract between the project board and the project manager. It outlines what’s being delivered, how success will be measured, what resources are required, and how risks will be handled. Crucially, it also confirms that the project is viable and justified, both financially and strategically.

In short, the PID answers four vital questions:

• What are we doing?
• Why are we doing it?
• How will we do it?
• Who’s responsible?

Once approved, the PID serves as the baseline for managing the project and assessing whether it stays on track.

Why is the PID important?

For new project professionals, the temptation can be to dive straight into delivery. But skipping or rushing the initiation stage often leads to misaligned expectations, unclear objectives, and poor decision-making later on.

The PID helps prevent these issues by creating alignment early. It provides clarity on scope, budget, timeframes and risk, giving the project team and stakeholders a shared understanding of what success looks like. It also gives decision-makers confidence that the project is both feasible and worthwhile before committing resources.

In PRINCE2, this level of clarity and governance is essential. It supports the principle of continued business justification: ensuring that the project remains aligned with organisational goals, not just at the start, but throughout its lifecycle.

What should a PID include?

While the structure of a PID can vary slightly depending on the organisation or sector, PRINCE2 guidance recommends including the following core elements:

• Project definition: What the project aims to deliver, and the context in which it’s being undertaken
• Project approach: How you plan to deliver the project
• Business case: Justification for the investment, including expected benefits, costs, and risks
• Project organisation: Roles, responsibilities and governance structure
• Management approaches: How you will approach the following key management areas: benefits, change, commercial, communication, digital and data, issue, quality, risk and sustainability
• Project plan: High-level timeline, key milestones, and resource requirements
• Stakeholder management strategy: Who your stakeholders are and how you will manage these relationships

Each of these elements supports structured, accountable delivery ensuring that the project has direction, discipline, and oversight from the very start.

Tips for writing a strong PID

If you’re creating a project initiation document for the first time, keep in mind that the goal is clarity, not perfection. A good PID doesn’t have to be long or overly technical. It needs to be readable, realistic and relevant to the people using it.

Here are some tips to get started:

Start with the business case

Make sure you understand why the project is happening. What problem is it solving? What value is it expected to deliver? This is the backbone of your PID and should influence every other section.

Be honest about risks and assumptions

It’s tempting to present an idealised view of the project. But it’s better to acknowledge uncertainty and outline how it will be managed. This shows maturity and earns stakeholder trust.

Tailor to your audience

Use language that stakeholders will understand, and avoid overwhelming the document with jargon. A well-tailored PID is far more useful than a generic one — even if it’s shorter.

Download our project initiation document (PID) template.

Building confidence as a new project professional

Writing a PID is a valuable opportunity to demonstrate your thinking, structure your approach, and earn the confidence of your team and sponsors. It shows that you understand the fundamentals of project management and that you’re not just managing tasks but managing delivery.

As you progress in your career, your approach to project initiation will become more nuanced. But even at an early stage, developing this discipline will set you apart and provide a solid foundation for more complex projects.

Looking to build your confidence in project fundamentals? PRINCE2 Foundation is the ideal starting point for new professionals. Learn how to create project documentation, manage risk, and lead with clarity.