Project Approval Process
Purpose
The purpose of this process is to ensure that all projects:
- Align with strategic objectives
- Are economically justified
- Have approved funding and clear ownership
- Follow a transparent and auditable decision process
Scope
This process applies to:
- All new projects above the defined approval threshold
- Significant scope extensions of existing projects
- Internal and external initiatives requiring budget allocation
Out of scope:
- Operational tasks below the approval threshold
- Pre-approved recurring activities
Key Principles
- No project execution without approval
- Business value first, solution second
- Budget approval is mandatory
- Clear accountability at every stage
Roles & Responsibilities
| Role | Responsibility |
|---|---|
| Project Sponsor | Owns the business case and expected value |
| Project Owner | Accountable for idea, business case creation and delivery after approval |
| Finance | Reviews and validates budget assumptions |
| Decision Board | Approves or rejects the project |
| PMO / Operations | Ensures process compliance |
Required Artifacts
- Project Idea Description
- Business Case
- Budget Breakdown
- Risk & Dependency Assessment
- Approval Record
Process Overview
- Project Idea Submission
- Business Case Development
- Budget Review
- Decision Gate: Project Approval
- Project Activation or Rejection
Process Steps
1. Project Idea Submission
Description:
A project idea is formally submitted for evaluation.
Inputs:
- High-level project description
- Problem statement or opportunity
- Initial value hypothesis
Outputs:
- Registered project idea
- Assigned Project Sponsor
2. Business Case Development
Description:
A detailed business case is prepared to justify the project.
Required Content:
- Objectives and success criteria
- Strategic alignment
- Expected benefits (quantitative & qualitative)
- Cost estimation (high-level)
- Risks and assumptions
- Alternative options (if applicable)
Owner:
Project Sponsor
Outputs:
- Completed Business Case document
3. Budget Review
Description:
The proposed budget is reviewed and validated.
Checks Performed:
- Cost completeness
- Funding availability
- Financial assumptions
- ROI / Payback expectations
Owner:
Finance
Outputs:
- Approved or revised budget
- Financial recommendation
4. Decision Gate: Project Approval
Description:
Formal decision whether the project may proceed.
Decision Options:
- Approved
- Approved with conditions
- Rejected
- Sent back for revision
Decision Criteria:
- Business case strength
- Budget feasibility
- Strategic fit
- Risk profile
- Resource availability
Authority:
Decision Board
Outputs:
- Formal approval record
- Decision rationale
5. Project Activation or Rejection
If Approved:
- Project is formally activated
- Project Owner is confirmed
- Budget is released
- Project initiation begins
If Rejected:
- Decision is documented
- Feedback is provided
- Project is archived or revised
Approval Matrix
| Approval Item | Required |
|---|---|
| Business Case | Yes |
| Budget | Yes |
| Sponsor Sign-off | Yes |
| Finance Sign-off | Yes |
| Decision Board Approval | Yes |
Exceptions
Any deviation from this process must be:
- Explicitly documented
- Approved by the Decision Board
- Time-bound and justified
Change Management
Changes to this process require:
- Process owner approval
- Version update
- Communication to all stakeholders
Version History
| Version | Date | Description |
|---|---|---|
| 1.0 | YYYY-MM-DD | Initial version |
Process Owner
PMO / Strategy Office
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