Project Charter is a formal project document; a major output of the initiating process group. It contains the parameters of the project operation. The project charter is the initial or the starting point of the project. It is the basic pillar of the project. It basically defines the boundaries of the project.
Project charter is created at the beginning of the project, it is then got approved from all key stakeholders and then throughout the project it is referred. It gives knowledge about the scope of project, its objectives, deliverables and risks involved at a high level. It is pointed out that ProjectCharter is not created for all the projects. It is created only for the projects that stand the test of organizational Project Selection Process.
WHO CREATES PROJECT CHARTER?
The responsibility for the creation of Project Charter rests with the Project Sponsor. The sponsor may delegate it to the project manager or even the initial project team members. However, formal approval is done by the sponsor. Beside project manager, other team members may also help the project manager in creation of project charter. It is approved and signed by key stakeholders or sponsors of the project.
WHY IS PROJECT CHARTER NEEDED?
A project charter is needed because of the following reasons:
. It gives all the basic or important information required to get started, for example, it givesidentification of all the key stakeholders, objectives of the project, constraints of the project and the main reasons for why the project is conducted.
· It enables the project manager to understand what is required to be accomplished and make him understand the needs of the stakeholders.
· It avoids confusion and conflict. If there will be no project charter then each of the stakeholders will have a different opinion on how to proceed with the project. This will ultimately leads to failure of the project. A project charter is therefore needed so that all the stakeholders agree upon how to achieve the goals of the project. In this way a project charter serves as the reference guide so that all the team members and work may be focused on the already established goals.
WHAT ARE THE USES OF PROJECT CHARTER?
Following are some of the uses of the project charter:
· Project charter is used as a point of focus throughout the life of the project.
· Project charter is used to authorize the project. It gives authorization to the project managerto start the project and make use of the resources for achieving the project goals.
· Project charter serves as a primary document for the project.
CONTENTS OF THE PROJECT CHARTER
The project charter contains the following main contents:
1. Project Title and Description:
This section contains the name or title of the project and also a simple description that what project is all about.
2. Project Manager Assigned:
This section shows the name of the project manager and also shows what his /her authority level is, e.g. whether the project manager can make or implement changes, authority of using different resources etc.
3. Business Case:
In this section it is explained that which sort of business problems are to be solved with the help of the project, which opportunities can be grabbed, what are the reasons for carrying out the project, what can be the benefits obtained from the project and what will be the results if the project is not undertaken. The project manager makes many decisions on day to day basis and thus he/she must keep this in mind.
4. Identification of Stakeholders:
In this section different stakeholders of the project are identified and mentioned. This is a very important content because it gives the summarized list of the known stakeholders (internal and external) of the project.
5. Time Frame and Estimates:
In the project charter the timeframe or the expected life of the project is given. It is helpful for the project to ensure that the project can meet expectations. The project charter also contains a high level overview of the financial estimates or budget of the project. This estimate should reasonable and justifiable. It also contains the source(s) of funding.
6. Stakeholder Requirements:
In this section high level requirements of the stakeholders are listed which are already known and which will be justified by the project.
7. Product or Deliverable:
This section shows very clearly what the final product or deliverable will be of the project. It gives a very clear picture of the product or deliverable. It also shows whether the project is about creating some new product or it is about the up-gradation of the existing deliverables.
8. Project Objectives:
In this section it is shown that what are the organization’s strategic goals and what will be the different objectives of the project through which the project can be helpful in achieving those strategic objectives of the organization. Here, focus is made on linking the project objectives to the organizational objectives.
9. High Level Project Risks:
Here all the potential or high level risks and threats of the project are listed. Risk analysis is further done but here a brief description is given.
10. Signature and Approval:
This project charter requires signatures of not only the project manager but also those of project stakeholders or sponsors. The stakeholders or sponsors approve the project charter.
PURPOSE OF PROJECT CHARTER
Few purposes of the project charter are listed below:
· It gives idea that why the project is undertaken.
· Project charter shows what the main objectives of the project are and what its constraints are.
· It also shows who the main or key stakeholders of the project are.
Article compiled by: Ayesha Naeem
Student of MBA Class of 2010
Project charter is created at the beginning of the project, it is then got approved from all key stakeholders and then throughout the project it is referred. It gives knowledge about the scope of project, its objectives, deliverables and risks involved at a high level. It is pointed out that ProjectCharter is not created for all the projects. It is created only for the projects that stand the test of organizational Project Selection Process.
WHO CREATES PROJECT CHARTER?
The responsibility for the creation of Project Charter rests with the Project Sponsor. The sponsor may delegate it to the project manager or even the initial project team members. However, formal approval is done by the sponsor. Beside project manager, other team members may also help the project manager in creation of project charter. It is approved and signed by key stakeholders or sponsors of the project.
WHY IS PROJECT CHARTER NEEDED?
A project charter is needed because of the following reasons:
. It gives all the basic or important information required to get started, for example, it givesidentification of all the key stakeholders, objectives of the project, constraints of the project and the main reasons for why the project is conducted.
· It enables the project manager to understand what is required to be accomplished and make him understand the needs of the stakeholders.
· It avoids confusion and conflict. If there will be no project charter then each of the stakeholders will have a different opinion on how to proceed with the project. This will ultimately leads to failure of the project. A project charter is therefore needed so that all the stakeholders agree upon how to achieve the goals of the project. In this way a project charter serves as the reference guide so that all the team members and work may be focused on the already established goals.
WHAT ARE THE USES OF PROJECT CHARTER?
Following are some of the uses of the project charter:
· Project charter is used as a point of focus throughout the life of the project.
· Project charter is used to authorize the project. It gives authorization to the project managerto start the project and make use of the resources for achieving the project goals.
· Project charter serves as a primary document for the project.
CONTENTS OF THE PROJECT CHARTER
The project charter contains the following main contents:
1. Project Title and Description:
This section contains the name or title of the project and also a simple description that what project is all about.
2. Project Manager Assigned:
This section shows the name of the project manager and also shows what his /her authority level is, e.g. whether the project manager can make or implement changes, authority of using different resources etc.
3. Business Case:
In this section it is explained that which sort of business problems are to be solved with the help of the project, which opportunities can be grabbed, what are the reasons for carrying out the project, what can be the benefits obtained from the project and what will be the results if the project is not undertaken. The project manager makes many decisions on day to day basis and thus he/she must keep this in mind.
4. Identification of Stakeholders:
In this section different stakeholders of the project are identified and mentioned. This is a very important content because it gives the summarized list of the known stakeholders (internal and external) of the project.
5. Time Frame and Estimates:
In the project charter the timeframe or the expected life of the project is given. It is helpful for the project to ensure that the project can meet expectations. The project charter also contains a high level overview of the financial estimates or budget of the project. This estimate should reasonable and justifiable. It also contains the source(s) of funding.
6. Stakeholder Requirements:
In this section high level requirements of the stakeholders are listed which are already known and which will be justified by the project.
7. Product or Deliverable:
This section shows very clearly what the final product or deliverable will be of the project. It gives a very clear picture of the product or deliverable. It also shows whether the project is about creating some new product or it is about the up-gradation of the existing deliverables.
8. Project Objectives:
In this section it is shown that what are the organization’s strategic goals and what will be the different objectives of the project through which the project can be helpful in achieving those strategic objectives of the organization. Here, focus is made on linking the project objectives to the organizational objectives.
9. High Level Project Risks:
Here all the potential or high level risks and threats of the project are listed. Risk analysis is further done but here a brief description is given.
10. Signature and Approval:
This project charter requires signatures of not only the project manager but also those of project stakeholders or sponsors. The stakeholders or sponsors approve the project charter.
PURPOSE OF PROJECT CHARTER
Few purposes of the project charter are listed below:
· It gives idea that why the project is undertaken.
· Project charter shows what the main objectives of the project are and what its constraints are.
· It also shows who the main or key stakeholders of the project are.
Article compiled by: Ayesha Naeem
Student of MBA Class of 2010
