In PRINCE2 7, 'Authorize Initiation' is a pivotal activity within the 'Directing a Project' process. It represents the first formal 'gate' where the Project Board decides whether the project is worthwhile enough to warrant the investment of time and resources required for detailed planning. This activity is triggered by the Project Manager requesting authority to proceed after the 'Starting a Project' process is complete.

The primary objective is not yet to authorize the delivery of the project's products, but to approve the 'Initiating a Project' stage. Planning takes effort, and the Board must ensure that the effort is justified. During this activity, the Project Board reviews the Project Brief and the Outline Business Case. They must verify that the project is desirable, viable, and achievable, and that it aligns with corporate or program strategies.

Key actions include reviewing the Stage Plan for the initiation stage to ensure adequate resources are available to define the Project Initiation Documentation (PID). The Board also confirms the project management team structure, ensures key stakeholders are committed, and verifies that the selected project approach (e.g., agile, linear, or hybrid) is appropriate. Furthermore, they check that lessons from previous projects have been applied to avoid repeating past mistakes.

If the Board is satisfied, they provide authorization for the Project Manager to proceed to the initiation stage, setting tolerances for time, cost, scope, and risk. If the project lacks merit or the risks are too high, the Board has the authority to stop the project immediately, thereby preventing resource wastage on a non-viable initiative. This activity establishes the authority required for the Project Manager to begin the detailed definition of the project baseline.

In the PRINCE2 7 Directing a Project (DP) process, the 'Authorize Project' activity is the critical decision point where the Project Board formally approves the project to transition from the initiation stage into the delivery stages. This activity occurs after the 'Initiating a Project' process has been completed, meaning the detailed planning and defining of the project are finished, but before significant resources are committed to creating products.

The primary objective of this activity is to answer the fundamental question: 'Is this project desirable, viable, and achievable?' To determine this, the Project Board reviews the Project Initiation Documentation (PID), which consolidates the Business Case, Project Plan, Project Management Team structure, and various management approaches (Risk, Quality, Change, and Communication). The PID essentially acts as the contract between the Project Manager and the Project Board.

During this review, the Project Board checks that the project aligns with corporate or programme strategies and that the controls defined are adequate for the project's complexity. They verify that the Business Case justifies the investment and that the Benefits Management Approach clearly outlines how value will be realized. They also ensure that the risks are acceptable.

The outcome of 'Authorize Project' is a formal direction: the Project Board either provides authority to proceed, requests revisions, or cancels the project if the justification is insufficient. If authorized, the PID becomes the 'baselined' standard against which the project's performance will be measured. This activity ensures that the organization does not proceed with projects based on optimism alone, but rather on a solid, approved foundation.

In the context of PRINCE2 7 and the Directing a Project (DP) process, the activity 'Authorize Stage or Exception Plan' serves as a critical governance gate. It is the moment where the Project Board reviews the detailed plan for the immediate future to decide whether to commit resources to the next phase of work. This activity enforces the principle of 'Manage by Stages' and ensures continued business justification.

This activity is triggered in two scenarios: at the end of a standard management stage (where a Next Stage Plan is presented) or when a stage has deviated beyond agreed tolerances (where an Exception Plan is presented to recover the situation).

During this activity, the Project Board must:
1. Validate the Plan: They review the submitted Stage or Exception Plan to ensure it is achievable, realistic, and covers all aspects of the project performance targets (Time, Cost, Quality, Scope, Benefits, and Sustainability).
2. Re-verify the Business Case: The Board checks if the project remains desirable, viable, and achievable based on the updated costs, timescales, and risks outlined in the new plan.
3. Review Risks: They assess the aggregated risk exposure for the upcoming stage to ensure it is within the organization's risk appetite.
4. Set Tolerances: The Board sets the specific monitoring limits for the Project Manager for the next stage.

If the Project Board is satisfied, they formally approve the plan, authorizing the Project Manager to proceed. If an Exception Plan is approved, it replaces the plan that was in exception and becomes the new baseline. This ensures that the project never proceeds without a clear, approved roadmap and executive endorsement.

In PRINCE2 7, 'Give Ad Hoc Direction' is a pivotal activity within the Directing a Project (DP) process. Unlike other activities in this process that occur at specific milestones—such as authorizing a stage or closing the project—giving ad hoc direction is event-driven and can be triggered at any time during the project lifecycle. Its primary purpose is to ensure the Project Board exercises control via the principle of 'manage by exception,' intervening only when necessary without micromanaging the Project Manager.

This activity is typically triggered by two main scenarios: either the Project Manager escalates an issue or risk via an Exception Report or Issue Report because tolerances are forecast to be exceeded, or the Project Board receives information from external sources (such as corporate management or Project Assurance) requiring a change in direction. For example, if market conditions shift significantly, rendering the Business Case precarious, the Project Board must provide immediate guidance.

Upon receiving a request for direction, the Project Board reviews the situation with advice from Project Assurance. They have several decision paths: they can approve a proposal to handle an issue, ask for an Exception Plan to replace the current plan, or, in extreme cases where the project is no longer viable, instruct the Project Manager to initiate the 'Closing a Project' process. This activity ensures that decision-making remains agile, preventing delays that could occur if the Project Manager had to wait for a scheduled end-of-stage assessment to raise critical concerns. It maintains the communication link between the strategic layer and the delivery layer, ensuring the project remains aligned with business objectives despite changing circumstances.

In the PRINCE2 7 Directing a Project (DP) process, the 'Authorize Project Closure' activity serves as the definitive endpoint of the project lifecycle. It is the formal mechanism by which the Project Board confirms that the project has met its objectives—or that it has nothing more to contribute—and should be disbanded. This activity prevents the common issue of projects drifting indefinitely into business-as-usual operations, ensuring a clean break between project work and operational use.

Triggered by the Project Manager's submission of the End Project Report from the 'Closing a Project' process, the Project Board executes a final review to assess success against the original Project Initiation Documentation (PID). The Board focuses on four critical areas during this activity. First, they verify user acceptance, ensuring that the project's products have been formally handed over to and accepted by the operational environment, and that maintenance arrangements are in place. Second, they review the updated Business Case and Benefits Management Approach to confirm that any benefits already achieved are recorded and that a clear plan exists to measure outstanding post-project benefits.

Third, the Board evaluates the Lessons Report to ensure that insights gained regarding what went well or badly are disseminated to the corporate or programme management levels to enhance organizational maturity. Finally, upon satisfaction, the Project Board issues a formal project closure notification. This act authorizes the release of the project management team and resources, ending the accrual of project costs. Effectively, this activity transforms the project from an active investment into a realized asset or capability.

In the context of PRINCE2 7, the Directing a Project (DP) process serves as the governance layer where the Project Board exercises overall accountability without managing day-to-day activities. This process relies heavily on the principle of 'manage by exception.' The Project Board delegates authority to the Project Manager for each stage, stepping in to make decisions only at specific boundaries or when issues exceed agreed tolerances.

Project Board decision-making within DP revolves around five key activities: authorizing initiation, authorizing the project, authorizing a stage or exception plan, giving ad hoc direction, and authorizing project closure. At every decision point, the primary criterion is the continued business justification. The Board must rigorously assess whether the project remains desirable, viable, and achievable based on the Business Case.

Specifically, during 'Authorizing a Stage or Exception Plan,' the Board reviews the End Stage Report to validate progress and approves the plan for the next stage. If the project deviates beyond tolerances (time, cost, risk, etc.), the Project Manager submits an Exception Report. The Board must then decide whether to close the project prematurely, request more data, or approve an Exception Plan to replace the current plan.

'Giving Ad Hoc Direction' facilitates ongoing decision-making regarding escalated risks, issues, and changes that are beyond the Project Manager's authority. Finally, 'Authorizing Project Closure' requires the Board to review the End Project Report and Benefits Management Account, ensuring the project product is accepted and operational before formally disbanding the project management team.

Ultimately, effective decision-making in the DP process ensures the project remains aligned with corporate strategy and prevents resources from being wasted on initiatives that no longer provide value.