Project Charter
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Following are the three main reasons for using a Project Charter: <ref name="PM"/> | Following are the three main reasons for using a Project Charter: <ref name="PM"/> | ||
| − | # '''To authorize the project.''' This is used to sell the project to the stakeholders and give them a | + | # '''To authorize the project.''' This is used to sell the project to the stakeholders and give them a rough idea what the return will be. |
| − | # '''To serve as the primary sales document.''' The project has a | + | # '''To serve as the primary sales document.''' The project has a framework so the resources can be allocated as necessary. |
| − | # '''To use it throughout the life cycle of the project.''' The project manager and the team can pursue the project by using the charter and can refer to it during the project | + | # '''To use it throughout the life cycle of the project.''' The project manager and the team can pursue the project by using the charter and can refer to it during the project lifetime. projectmanager.com |
==Develop Project Charter== | ==Develop Project Charter== | ||
| − | A flow diagram of the process can be seen in Figure 1. The process of developing a project charter is divided into three main steps; Inputs, Tools & Techniques and Outputs. In the following sections these steps will be explained in more detail. | + | A flow diagram of the process can be seen in Figure 1. The process of developing a project charter is divided into three main steps; Inputs, Tools & Techniques and Outputs. In the following sections, these steps will be explained in more detail. |
*Figure 1 is supposed to be here. | *Figure 1 is supposed to be here. | ||
| Line 17: | Line 17: | ||
===Inputs=== | ===Inputs=== | ||
The inputs to develop a Project Charter are following: | The inputs to develop a Project Charter are following: | ||
| − | *Project Statement of Work | + | *'''Project Statement of Work''' |
| − | *Business Case | + | *'''Business Case''' |
| − | *Agreements | + | *'''Agreements''' |
| − | *Enterprise Environmental Factors | + | *'''Enterprise Environmental Factors''' |
| − | *Organizational Process Assets | + | *'''Organizational Process Assets''' |
===Tools and Techniques=== | ===Tools and Techniques=== | ||
| Line 31: | Line 31: | ||
===Outputs=== | ===Outputs=== | ||
| − | The output is the project charter | + | The output is the project charter and the project manager will allocate the project to organizational resources and has authority to use project activities. Contents of a project charter are following: |
*'''Executive Summary''' | *'''Executive Summary''' | ||
| − | : This section will be a high-level summary of reasons for creating the project and what problem it is supposed to improve. Moreover, it can contain background information and general statements. | + | : This section will be a high-level summary of reasons for creating the project and what problem it is supposed to improve. Moreover, it can contain background information and general statements about the project. |
*'''Project Purpose/Justification''' | *'''Project Purpose/Justification''' | ||
| − | : It is vital to know the purpose or justification of the project and what is the expected outcome | + | : It is vital to know the purpose or justification of the project and what is the expected outcome from it. This section describes the project and how it is related to the company’s business by defining the business case and business objectives. The business case will explain the need for the project and how the company will benefit from it. Analyze the logic for the business case and what effects it will have on the business. It is important to define the final goal for the project, and therefore it is vital to list the objectives for the project that are in relation of the company’s strategy. |
*'''Project Description''' | *'''Project Description''' | ||
: This section will include; project objectives and success criteria, requirements, constraints, assumptions and preliminary scope statement. It will provide a more detailed description of the project, but be careful not to have too many details. General information such as; what is the project, how will it be done and what will it achieve. It can be useful to use the SMART method to set the project objectives. The effect is that each objective will be specific, measurable and achievable within a certain time frame, and for that reason, it will be easier to monitor them. Therefore, the project manager can monitor if the project is on the right path and it is more likely that the project will be a success. In the requirements section, a list of all project requirements needs to be stated by the project team, it will not be exhaustive list since the requirements can change as the project moves forward. | : This section will include; project objectives and success criteria, requirements, constraints, assumptions and preliminary scope statement. It will provide a more detailed description of the project, but be careful not to have too many details. General information such as; what is the project, how will it be done and what will it achieve. It can be useful to use the SMART method to set the project objectives. The effect is that each objective will be specific, measurable and achievable within a certain time frame, and for that reason, it will be easier to monitor them. Therefore, the project manager can monitor if the project is on the right path and it is more likely that the project will be a success. In the requirements section, a list of all project requirements needs to be stated by the project team, it will not be exhaustive list since the requirements can change as the project moves forward. | ||
*'''Risks''' | *'''Risks''' | ||
| − | : | + | : Every project contains some form of risk. Risks and other potential issues that may happen in a project needs to be taken into account and listed, because without it the project can derail. The project manager will address this and create a plan to solve these issues if they occur, the team would be more ready and could reduce project delays and prevent complications. |
*'''Project Deliverables''' | *'''Project Deliverables''' | ||
: text.. | : text.. | ||
| Line 45: | Line 45: | ||
: All known or estimated milestones in the project are listed. It is clear that the milestones can be modified throughout the project and will be communicated to the project manager. | : All known or estimated milestones in the project are listed. It is clear that the milestones can be modified throughout the project and will be communicated to the project manager. | ||
* '''Summary Budget''' | * '''Summary Budget''' | ||
| − | : Section that includes sum of all relative costs and the total budget for the project. Since the project charter is done very early in the process, the costs can change but the charter will give a rough plan. In addition, it is crucial to run all changes by the project manager. | + | : Section that includes the sum of all relative costs and the total budget for the project. Since the project charter is done very early in the process, the costs can change but the charter will give a rough plan. In addition, it is crucial to run all changes by the project manager. |
*'''Project Approval Requirements''' | *'''Project Approval Requirements''' | ||
: Project approval requirements will state when the project has reached its goal. The goal and the requirements need to be clear, incisive and should be accepted by the authorized person. At last, if the project is approved and has met all the requirements it will be signed-off by the sponsor. | : Project approval requirements will state when the project has reached its goal. The goal and the requirements need to be clear, incisive and should be accepted by the authorized person. At last, if the project is approved and has met all the requirements it will be signed-off by the sponsor. | ||
* '''Assigned Project Manager''' | * '''Assigned Project Manager''' | ||
| − | : This section will state the assigned project manager, along with the responsibilities and authority level, which can | + | : This section will state the assigned project manager, along with the responsibilities and authority level, which can vary between organizations. |
*'''Authorization''' | *'''Authorization''' | ||
: The sponsor will sign the charter. | : The sponsor will sign the charter. | ||
| Line 55: | Line 55: | ||
==Limitations== | ==Limitations== | ||
| − | Even though potential risks and issues are considered in project charter, nobody can predict the future, so the project manager cannot predict each complication. The teammates will rely on the project charter to manage obstacles but when a problem occurs that is not included in the charter it can take a lot of time to solve it. On the other hand, | + | Even though potential risks and issues are considered in project charter, nobody can predict the future, so the project manager cannot predict each complication. The teammates will rely on the project charter to manage obstacles but when a problem occurs that is not included in the charter it can take a lot of time to solve it. On the other hand, it can also be a problem if the charter has a solution to a problem that occurs, it may not be adequate to solve it and therefore the project will delay. |
Later on, the challenges are presented in this section. | Later on, the challenges are presented in this section. | ||
Revision as of 23:37, 16 February 2018
The abstract will be here.
Contents |
Introduction
Following are the three main reasons for using a Project Charter: [1]
- To authorize the project. This is used to sell the project to the stakeholders and give them a rough idea what the return will be.
- To serve as the primary sales document. The project has a framework so the resources can be allocated as necessary.
- To use it throughout the life cycle of the project. The project manager and the team can pursue the project by using the charter and can refer to it during the project lifetime. projectmanager.com
Develop Project Charter
A flow diagram of the process can be seen in Figure 1. The process of developing a project charter is divided into three main steps; Inputs, Tools & Techniques and Outputs. In the following sections, these steps will be explained in more detail.
- Figure 1 is supposed to be here.
Inputs
The inputs to develop a Project Charter are following:
- Project Statement of Work
- Business Case
- Agreements
- Enterprise Environmental Factors
- Organizational Process Assets
Tools and Techniques
Two elements are needed for this step:
- Expert Judgment
- An individual or a group of experts with special knowledge or training criticize the inputs. These individuals can come from a different source, for example, other units within the organization, professional and technical associations, stakeholders, project management office and consultants.
- Facilitation Techniques
- The project manager will apply various methods that are within project management, like brainstorming, problem-solving and conflict resolution. This processes will help to develop the project charter.
Outputs
The output is the project charter and the project manager will allocate the project to organizational resources and has authority to use project activities. Contents of a project charter are following:
- Executive Summary
- This section will be a high-level summary of reasons for creating the project and what problem it is supposed to improve. Moreover, it can contain background information and general statements about the project.
- Project Purpose/Justification
- It is vital to know the purpose or justification of the project and what is the expected outcome from it. This section describes the project and how it is related to the company’s business by defining the business case and business objectives. The business case will explain the need for the project and how the company will benefit from it. Analyze the logic for the business case and what effects it will have on the business. It is important to define the final goal for the project, and therefore it is vital to list the objectives for the project that are in relation of the company’s strategy.
- Project Description
- This section will include; project objectives and success criteria, requirements, constraints, assumptions and preliminary scope statement. It will provide a more detailed description of the project, but be careful not to have too many details. General information such as; what is the project, how will it be done and what will it achieve. It can be useful to use the SMART method to set the project objectives. The effect is that each objective will be specific, measurable and achievable within a certain time frame, and for that reason, it will be easier to monitor them. Therefore, the project manager can monitor if the project is on the right path and it is more likely that the project will be a success. In the requirements section, a list of all project requirements needs to be stated by the project team, it will not be exhaustive list since the requirements can change as the project moves forward.
- Risks
- Every project contains some form of risk. Risks and other potential issues that may happen in a project needs to be taken into account and listed, because without it the project can derail. The project manager will address this and create a plan to solve these issues if they occur, the team would be more ready and could reduce project delays and prevent complications.
- Project Deliverables
- text..
- Summary Milestone Schedule
- All known or estimated milestones in the project are listed. It is clear that the milestones can be modified throughout the project and will be communicated to the project manager.
- Summary Budget
- Section that includes the sum of all relative costs and the total budget for the project. Since the project charter is done very early in the process, the costs can change but the charter will give a rough plan. In addition, it is crucial to run all changes by the project manager.
- Project Approval Requirements
- Project approval requirements will state when the project has reached its goal. The goal and the requirements need to be clear, incisive and should be accepted by the authorized person. At last, if the project is approved and has met all the requirements it will be signed-off by the sponsor.
- Assigned Project Manager
- This section will state the assigned project manager, along with the responsibilities and authority level, which can vary between organizations.
- Authorization
- The sponsor will sign the charter.
Limitations
Even though potential risks and issues are considered in project charter, nobody can predict the future, so the project manager cannot predict each complication. The teammates will rely on the project charter to manage obstacles but when a problem occurs that is not included in the charter it can take a lot of time to solve it. On the other hand, it can also be a problem if the charter has a solution to a problem that occurs, it may not be adequate to solve it and therefore the project will delay.
Later on, the challenges are presented in this section.
References
- ↑ Stephanie Ray. (2017). A Quick Guide to Project Charters. https://www.projectmanager.com/blog/project-charter
