Project Charter
Research
According to PMBOK Project
charter is the process of developing a document that formally authorizes a
project or a phase and documenting initial requirements that satisfy the
stakeholder’s needs and expectations. Charters use to take decisions before starts
the project. It is the first step of planning. Project manager responsible for
project charter. The purpose of the project charter is to document:
- Reasons
for undertaking the project
- Objectives
and constraints of the project
- Directions
concerning the solution
- Identities
of the main stakeholders
- In
scope and out-of-scope items
- High
level risk management plan
- Communication
plan
- Target
project benefits
- High
level budget and spending authority
(scribd,
2012)
The
three main uses of the project charter:
- To
authorize the project - using a comparable format, projects can be ranked
and authorized by Return
on Investment.
- Serves
as the primary sales document for the project - ranking stakeholders
have a 1-2 page summary to
distribute, present, and keep handy for fending off other project or
operations runs at project resources.
- As a
focus point throughout the project - for example: project as people walk
in to team meetings and use in change control meetings to ensure tight scope
management.
(scribd,
2012)
It
is an agreement between following technical and business groups.
·
Partners
and external stakeholders;
·
The
project management framework to be used on the project;
·
Roles,
responsibilities, accountabilities, and activities of the team members;
·
Management
commitments (specifically in terms of communications and control);and,
·
The
empowerment framework.
(scribd,
2012)
Having
a project charter is giving benefits like,
·
Improved client partnerships
·
Improved project management
processes
·
Improved headquarter/regional
communications
·
Better project sponsorship
·
Recognition of Senior Management’s
role
·
Progress towards industry best
practices (Capability Maturity Model (CMM), Software Process Improvement (SPI),
Enhanced Framework, etc.)
·
Improved relationships with clients
·
Improved on-time and on-budget
delivery of projects.
(scribd,
2012)
Analysis
According
to Kathy a p project charter is
a document that formally organizes the existence of a project and provides
direction on the project's objectives and management.
According
to PMBOK Project charter is the process of developing a document that formally
authorizes a project or a phase and documenting initial requirements that
satisfy the stakeholder’s needs and expectations.
According
to PMBOK (2008), project charter template address following aspects of the
project. The project charter can be mapped with PMBOK as follows:
|
PMBOK
|
Location
in project charter
|
|
Project integration management
|
Plans for support activities, process
options, deviations, stages, project control, quality control activities, and
schedule.
|
|
Project scope management
|
Project scope and control
|
|
Project time management
|
Project control, schedule, effort estimate
|
|
Project cost management
|
Project control and project cost estimation
|
|
Project quality management
|
Project scope, control, quality control
activities
|
|
Project HR management
|
Organization and responsibilities, plans
for support activities, project facilities and resources
|
|
Project communication management
|
Project control
|
|
Project risk management
|
Risk management
|
|
Project procurement management
|
Plans for support activities, project
facilities and resources, project control and cost estimation
|
Conclusion
When deciding on project charter, managers should focus on major
issues, so executives can determine whether to accept or moderate the risk. Too
many areas can divert attention, leaving the project manager susceptible in the
event the project fails.
It is the first step of planning stage. Project manager
should plan this for others goodness. In PMBOK it shows clearly. Every project
area defined in PMBOK. Project charter contains all areas of a project like project
schedule, cost, risk ect. It gives the important information about the project
and states the project manager’s responsibility.
Both
the PMBOK (2008) and Shawlby (2009) states that the facts
that should be contained in the project charter. As complete conclusion we can
point out areas that are essential for a project charter as below.
- Project
statement of work.
- Business case.
- Contract.
- Project manager’s name and contact
information
- Summery schedule, mentioning the
planned start, finish and milestone schedule.
- Budget
- Project objectives.
- Project approval requirements
- Responsibility level of Project
Manager.
- Signatures of key stakeholders
- Risks
References
·
PMI (2008) A
Guide to The Project Management Body Of Knowledge (PMBOK). 4th Edition.
Pennsylvania: Project Management Institute
·
Schwalbe, K. (2009) Information Technology Project
Management. 6th Edition. Boston: Cengage Learning Inc.
