According to the PMBOK® Guide, specifically within the Develop Project Charter process, projects are authorized by someone external to the project, such as a sponsor, program, or PMO. This authorization is typically the result of one or more specific strategic considerations (often called business cases).
The PMI standard lists several key factors that lead to the creation of a project:
Market Demand: For example, a car manufacturer authorizing a project to build more fuel-efficient cars in response to gasoline shortages.
Legal Requirements: A new regulation or law that requires an organization to change its processes or products (e.g., new data privacy laws requiring a software update).
Organizational Need: To improve efficiency or address a specific internal requirement.
Customer Request: A project initiated specifically because a customer asked for a unique product or service.
Technological Advancement: High-tech companies often authorize projects to stay ahead of the competition with new innovations.
Social Need: Projects aimed at improving public health, education, or infrastructure.
Comparison with Other Options:
A. Customer requests and/or issue resolution: While customer requests are a valid reason, " issue resolution " is generally considered part of Operations or Control Quality/Direct and Manage Project Work rather than a high-level strategic reason for new project authorization.
B. Stakeholder expectations and/or strategic opportunity: While these are related to project success, " stakeholder expectations " is a very broad term. The PMBOK® specifically points to " Market Demand " and " Legal Requirements " as primary, concrete business case drivers.
C. Technological advancement and/or senior executive request: Technological advancement is a valid driver, but a " senior executive request " is the mechanism of authorization, not the strategic consideration behind why the project is being done.
