Project Charter

Quick reference

• 00:04 Hi, I'm Ray Sheen.
• 00:06 I'd like to talk with you now about a very important element of project initiation
• 00:10 known as the project charter.
• 00:12 >> The Project Management Body of Knowledge, The PMBOK Guide,
• 00:16 defines a project charter as a document issued by the project initiator or sponsor
• 00:21 that formally authorizes the existence of a project and provides a project manager
• 00:25 with the authority to apply organizational resources to project activities.
• 00:30 That means that the charter is the founding document of the project.
• 00:34 With the foundation of the project charter the project leader can
• 00:37 proceed with planning and executing the project.
• 00:40 Some organizations actually refer to this as a project contract,
• 00:44 rather than a project charter, emphasizing the formal nature of the document.
• 00:49 As part of the authorization of the project the project charter sets
• 00:53 the goals, objectives, and the boundary conditions for the project.
• 00:57 It defines what is in this project and
• 00:59 many times even defines what is not in the project.
• 01:02 To create a project charter we need to identify
• 01:06 the project elements that define the project.
• 01:09 There are several approaches for doing this.
• 01:12 The most common approach is to use a template that is a part of the project
• 01:16 management methodology.
• 01:18 This will outline all that is needed in the project charter and
• 01:21 usually provide some guidance or examples.
• 01:23 A good approach for completing the charter is to meet with the stakeholders,
• 01:28 customers or sponsors and discuss the project.
• 01:31 These are the people who want the project.
• 01:33 They will be receiving the benefit of the project.
• 01:36 It's also a good idea to meet with the team members or subject matter experts.
• 01:41 These people will know best about how to do the project work.
• 01:45 Obviously this includes the internal departments and
• 01:48 organizations providing resources.
• 01:50 However, it can also include external experts, such as consultants or
• 01:55 industry experts, who have experience with this type of project and
• 01:59 can share their best practices.
• 02:01 If there is a project management office you will need to meet with them to
• 02:04 understand the elements of the project management methodology that is being
• 02:08 applied and any project governance or oversight requirements.
• 02:12 They are also a good source for templates and best practices.
• 02:16 Finally, we need to review the business case.
• 02:19 This review ensures that we have a clear understanding of what's most important on
• 02:23 this project.
• 02:24 This includes the rationale for the project, what it's trying to achieve, and
• 02:28 the project priority.
• 02:30 It will also normally include a list of assumptions, constraints,
• 02:34 and risks that are very helpful when planning.
• 02:37 If you have a project charter template for your organization, use it.
• 02:42 If not, when establishing your charter, you should consider including these items.
• 02:47 Describe the purpose or justification for the project.
• 02:51 Think of this as a mission statement for the project team.
• 02:54 Have clear measurable success criteria or objectives.
• 02:58 Both the team and the stakeholders should know the definition of done for
• 03:02 the project.
• 03:02 A short list of high level requirements helps everyone understand
• 03:06 the project scope.
• 03:07 Many times a detailed requirement list will be developed as part of the project
• 03:12 planning, but a high level list now helps to set boundaries.
• 03:15 A list of the major assumptions or constraints, in particular,
• 03:19 focus on schedule milestones or resource availability assumptions and constraints.
• 03:25 Listing project boundaries will clarify expectations with the stakeholders and
• 03:29 team members.
• 03:30 In another lesson I will introduce a tool for
• 03:32 accomplishing this known as the in-frame out-of-frame approach.
• 03:36 You should also identify high level risks.
• 03:40 It won't be a detailed list of risks and
• 03:42 response strategies because you haven't yet done a project plan.
• 03:45 This is for awareness.
• 03:47 This is a great time to document positive risks also and to begin to get buy-in and
• 03:52 support for actions intended to take advantage of those opportunities.
• 03:56 The charter will normally have a summary list of milestones and
• 04:00 external reporting points.
• 04:02 Also, a summary budget is often included.
• 04:04 Typically it's just an estimated total project cost since we have not yet
• 04:09 done the detailed planning.
• 04:10 The initial stakeholders are often also identified within the charter so
• 04:14 that the team knows who they need to communicate with and
• 04:17 coordinate as the project unfolds.
• 04:20 A critical aspect of the project charter when there is not a strong methodology in
• 04:24 place Is to identify the project manager and their approval authority.
• 04:28 When there is a strong project management methodology everyone knows the authority
• 04:33 of a project manager.
• 04:34 When there is not it needs to be clearly spelled out in the charter.
• 04:38 In addition to the stakeholders, you should identify the project sponsor or
• 04:42 management team that has authorized the project.
• 04:44 And, finally, the approval criteria and approach for
• 04:47 the project should be clearly identified.
• 04:50 The team needs to know who has the final say when there is a conflict on
• 04:54 performance or standards.
• 04:56 >> The project charter is your project's foundation.
• 05:00 Make sure it's a firm foundation that you can build upon.

Lesson notes are only available for subscribers.