Project Charter

By Issa Bass
 

Any initiative aimed at generating qualitative changes in a work place requires a strategic planning of the resources needed for its realization. The resources involved are human, material, financial and also the time needed for both the planning and the execution of the plans.

The strategy used to plan the resources needed for the changes is called project management. It includes the specification of the tasks to be accomplished, how the objectives are to be achieved, the planning of the resources to be allocated, the budgeting and timing as well as the implementation of the project and the controls involved.

Since all the tasks cannot be executed at the same time because of their interdependence, a methodic scheduling is necessary for a timely and cost effective outcome.

The human resources remain the most important aspect of any endeavor; therefore a clear identification of the people who have a stake in the project as well as those who might resist changes is vital to its success.

But before a project even starts, there are some pre requisites that must be fulfilled for its success.

  • The management must be committed to the changes envisaged
  • The overall strategy must be defined and be in agreement with the company's business vision
  • The project champion nominated
  • The key participants to the projects must be identified, their skills and abilities assessed and their roles defined and well understood
  • The risk involved in the changes to be implemented must be evaluated and and managed.

But the first step in a project management is its specification, the definition of its goals and objectives. A lucid definition of a project provides a solid basis for not only its prompt completion but also for the future Quality Assurance.

I.  Project definition

Since most of the cost savings are contingent upon the planning and execution of projects, before any action is taken, it is necessary to have a clear common understanding of all the aspects of the project, its extent, the key stakeholders, its goals and its objectives. A good definition provides a clear appreciation of every stakeholder's role and what is expected from him, it also provides a tacit agreement between the parties. The definition of the project is laid on a document called the project charter.

1.  Project Charter

The project charter is written either by the project sponsor or by the project Champion with the approval of the sponsor. It is issued by upper management to formally make the project official and it gives the project Champion and his team the power to use the organization's resources for its purpose. The charter is then made public and distributed to all the stakeholders

A. The content of the project charter

The charter specifies the purpose, sets the orientations of the project, determines the stakeholders, the resources needed for its realization, the deadlines and the constraints. The following table summarizes the most common sections of a project charter and their meaning.

Project Title
Project Champion

The project champion or manager who ensures that the resources are available and that the project is execute in a timely and cost effective manner.
 
Project number

Depends on the organization's standards and structures. It is just a document reference.
 
Project description

It defines the project and gives a clear reason for its purpose, what are the measurable results expected. It includes the project background and relates it to our present conditions. It makes clear the expectations from every stakeholder.

It also defines the success of the project and addresses the consequences of a failure.

The project description defines the constraints and the factors that can affect the project.

Value statement

Clearly set out the positive impact of the project on the company.
 
Stakeholders

It starts with the project sponsor, the team working on the project, the customers (who can be the project sponsor), and the external customers.

It identifies the key people involved in the project and their role.
 
Risk Analysis


 
 
 
Timeframe


 
 
 
Project budget


 
 
 
Alternative plans

What to do if things to not go according to plans.


 
Documentation


 
 
 
Project Monitoring

How and when to conduct meetings, who participates and for what purpose.  How to measure the progress of the different aspects of the project.


 
Scheduling

Important events and dates that affect the project. Different deadlines for sub-parts of the project.


 


About the author
Issa Bass is the managing editor of SixSigmaFirst. He can be reached at issa@sixsigmafirst.com

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