4.1 Develop Project Charter

1. 4.1 Develop Project Charter The process of developing a document that formally defines and authorises a project by documenting the initial requirements that will satisfy the needs of the Project Sponsor and stakeholder The high level Project Scope and Timeframe is often specified during this process Any Project Timeframes specified at this stage are predictions or preferences only, they have not been subject to detailed planning and scheduling processes Assumptions should be documented and formal commitments avoided Occurs during the Initiation Phase Monitor Initiation Planning Execution Close Control Adapted from PMBOK 4th Edition

2. 4.1 Develop Project Charter The process of developing a document that formally defines and authorises a project by documenting the initial requirements that will satisfy the needs of the Project Sponsor and stakeholder The high level Project Risks are identified and an estimate is made of the overall risk of the project, this can be important to project prioritisation decisions The Project Charter establishes a partnership between the Project Sponsor or client and the Project Manager Occurs during the Initiation Phase Monitor Initiation Planning Execution Close Control Adapted from PMBOK 4th Edition

3. 4.1 Develop Project Charter • Inputs into the Project Charter - • Project Statement of Work • Business need or rationale • Product and project description • Strategic Plan • Business Case • Regulations and standards • Contractual requirements • Methodologies, policies and procedures Adapted from PMBOK 4th Edition

4. 4.1 Develop Project Charter • Inputs into the Project Charter that have a major impact on Project Timeframe - • Business need or rationale • Strategic Plan • Business Case assumptions • Contractual requirements • Methodologies, policies and procedures • The output at this stage is a preferred Project Timeframe • It is best specified as a range estimate eg 6 months +/- 4 weeks • Assumptions made with respect to Time must be documented to prevent misunderstandings and conflict

5. 4.1 Develop Project Charter There are very limited tools and techniques to develop the Project Charter The primary area of assistance comes from experts who have specific skills and experience in the type of project being documented in the Project Charter Consultants Project Management Office Professional Associations Focus groups Project Sponsor Stakeholders Industry Groups Research Other Project Managers Subject Matter Experts Customers Adapted from PMBOK 4th Edition

6. 4.1 Develop Project Charter The major output of this process is the Project Charter and perhaps some form of official approval to proceed with the project Common contents of a Project Charter – Project purpose or justification Project objectives – should be measurable Project description High level requirements High level risks or overall risk analysis Preferred timeframe Estimated high level budget High level project structure – Project Sponsor, Project Manager Authorisation or Governance processes Adapted from PMBOK 4th Edition

7. Types of Project Charters • You may know a Project Charter by a different name as they can vary depending on your industry or the particular methodology being applied • Some common names for Project Charters include – • Project Brief • Concept Paper • High Level Plan • Statement of Work • Sample Project Charter templates are available to download from the links in the Learning Program for the Course Site under PM Templates and Examples.

8. Project Objectives • It is critical that the project objectives and success criteria are measurable and have been signed off by the Project Sponsor, otherwise progress and success are difficult to achieve • The recommended method is SMART • Make sure all your objectives are – • S pecific • M easurable • A chievable • R ealistic, and • T ime Bound