You might think that it doesn’t really matter when the project starts. Having a undefined start date does not take away from the fact that the work is a project. It’s obvious that the project started at some point, since there was a point when the work was not in progress and a point where the work is in progress. So, at some point the project did in fact “start”.
The reason it is important to know the start date is that there may be consequences and incentives based on how long it takes to complete a project. The following are examples of these consequences.
- Project team accountability . It is hard to hold people accountable for things that are not within their control. For that reason, it makes sense that a project manager is held accountable for the project no earlier than when they are assigned. If the project clock starts before they are assigned it is possible that some decisions were made and some resources expended before they were assigned, and therefore they do not have total control. Likewise, if team members are held accountable for completing a project within budget and on schedule, it is hard to hold them accountable for work and decisions that take place before they are assigned. For that reason, perhaps the project should officially start when the Project Definition and workplan are approved, or after the project kickoff meeting is held.
- Process improvement . Many companies keep track of the total duration of projects and attempt to shorten the average project duration over time. It is important that everyone within the company use a common starting and ending point. Otherwise the project duration numbers will not be meaningful.
- Financial / accounting . Many projects are considered capital expenditures. Precisely defining when a project starts has consequences in terms of the work that can be capitalized and the work that needs to be expensed.
- Comparisons with other companies . If you compare how long it takes your organization to deliver projects, you want to make sure you have a common definition of start and end dates. If your company considers a project to start when a project manager is assigned and other companies start the clock at the kickoff meeting, it will appear that your company takes longer to deliver projects.
Material used with permission from Ten Step Project Management