Develop Project Charter

A project charter is a document that formally authorizes a project. It outlines the purpose, objectives, and high-level details of the project and gives the project manager the authority to use organizational resources for the project. It’s the starting point of a project, ensuring everyone involved understands its purpose and goals.

Purpose of Developing a Project Charter

• Defines what the project is about and its objectives.
• Authorizes the project manager to lead the project.
• Aligns stakeholders by setting clear expectations.
• Serves as a reference point throughout the project.

Breaking Down the Process of Developing a Project Charter

1. Inputs: What Information Do You Need?

To create a project charter, certain inputs provide the foundation for the document. These include:

1. Statement of Work (SOW):
   • A detailed description of the project, including the work to be completed.
   • Example: In a construction project, the SOW might include building specifications like size, materials, and deadlines.
2. Business Case:
   • Explains why the project is important, including the benefits and justification.
   • Example: For an IT project, the business case might outline how the software will reduce operational costs by 20%.
3. Agreements:
   • Contracts, MOUs, or informal agreements that provide the basis for starting the project.
   • Example: A signed agreement between a client and a contractor to build a new office.
4. Enterprise Environmental Factors (EEFs):
   • External factors that might influence the project, such as market conditions, regulations, or organizational culture.
   • Example: A manufacturing project may consider government regulations on emissions as an EEF.
5. Organizational Process Assets (OPAs):
   • Internal resources, processes, and templates available to help create the charter.
   • Example: A project charter template from your company’s previous projects.

2. Tools and Techniques: How Do You Create the Charter?

To develop the charter, you’ll rely on the following techniques:

1. Expert Judgment:
   • Consulting experts who have experience with similar projects.
   • Example: For a healthcare project, involve senior doctors or administrators to define realistic goals and constraints.
2. Facilitation Techniques:
   • Organizing meetings and workshops to gather inputs from stakeholders and align objectives.
   • Example: Host a brainstorming session with the marketing, production, and finance teams to clarify the project’s scope and objectives.

3. Output: What Do You Get?

The result of this process is the Project Charter. This document includes:

1. Project Purpose:
   • Why the project exists.
   • Example: “To build a sustainable housing complex to address growing demand in urban areas.”
2. Objectives:
   • Measurable goals the project aims to achieve.
   • Example: “Complete construction by December 2025 within a budget of $5 million.”
3. Key Stakeholders:
   • List of people or groups involved in or impacted by the project.
   • Example: The client, the project sponsor, the construction team, and city regulators.
4. High-Level Requirements:
   • A summary of what the project must deliver.
   • Example: “Each unit in the housing complex will have 3 bedrooms, 2 bathrooms, and a solar power system.”
5. Constraints and Assumptions:
   • Limitations and factors you assume to be true.
   • Example: Constraint: “The project must adhere to local building codes.”
     Assumption: “Suppliers will deliver materials on time.”
6. Project Manager Authorization:
   • Officially names the project manager and grants them authority.
   • Example: “John Doe is appointed project manager for the Sustainable Housing Project.”

Illustrating the Process with Examples

Example 1: Developing a Project Charter for a Marketing Campaign

• Inputs:
  • SOW: A plan to launch a new product campaign targeting young adults.
  • Business Case: The campaign will increase market share by 10%.
  • Agreements: An agreement with a creative agency to design advertisements.
  • EEFs: Industry trends and competition analysis.
  • OPAs: Templates and tools from previous campaigns.
• Tools:
  • Expert judgment from marketing experts.
  • Facilitation techniques like workshops with the sales and product teams.
• Output:
  • A project charter outlining the campaign goals, budget, timeline, and assigned project manager.

Example 2: Developing a Project Charter for a Construction Project

• Inputs:
  • SOW: Build a 10-story office building with specific design requirements.
  • Business Case: The project will generate long-term rental income.
  • Agreements: Contract between the client and the construction firm.
  • EEFs: Local weather conditions and zoning laws.
  • OPAs: Construction standards and templates.
• Tools:
  • Expert judgment from architects and engineers.
  • Facilitation techniques like planning meetings with contractors and city officials.
• Output:
  • A project charter describing the purpose, deliverables, high-level timeline, and budget, along with authorization for the project manager.

Why the Project Charter Matters

• Defines Direction: Clearly states why the project exists and what it aims to achieve.
• Unifies Stakeholders: Brings everyone onto the same page before the project starts.
• Authorizes the Project: Officially gives the green light to start working on the project.

By using the inputs, tools, and outputs effectively, the project charter becomes the foundation of any successful project, regardless of the industry. It ensures clarity, alignment, and accountability from the very beginning.

Knowledge Area

Integration Management

Process Group

Initiating

Develop Project Charter Inputs

• Statement of Work
• Business Case
• Agreements
• Enterprise Environmental Factors
• Organizational Process Assets

Develop Project Charter Tools and Techniques

• Expert Judgement
• Facilitation Techniques

Develop Project Charter Outputs

• Project Charter