Quite recently , I had the opportunity to volunteer with a not-for-profit organization to manage their website development project . While working with my portfolio manager , I asked him “ What would be one of the first deliverables that you would expect from me ” . He replied “Delivering the project charter “. “Why the big deal about delivering a project charter for a small project such as a website development project ? ” , I wondered . However , while working with him on the charter , I realized that even for a project such as this , a lot of time and effort is required for preparing a charter .
As Rita Mulcahy writes in one of her prep books for the PMP certification exam, “ Do not underestimate the value of the project charter.The project charter is such an important document that a project should not be started without one. If the project charter serves as a definition of how success will be measured, then without a project charter, the project and project manager cannot be successful. ”
So let us take a look at what the project charter is all about and why it is so important.
The project charter is a document that officially starts a project or a phase . It formally authorizes the existence of the project and provides a reference source for the future of the project . The charter gives a direction and a sense of purpose to the management from the start of the project till the end . As Randy Tangco , a business driven project practitioner , mentioned in one of his articles: “Take great pride and care in your project charter because this is where you sow the good seed. It will eventually take care of you.”
A project charter names the project manager and defines the authority of the project manager It provides the project manager with the authority to utilize organizational resources to accomplish the project objectives .
It should explain the business need for which the project is undertaken .
It also captures high level planning information (scope, deliverables, assumptions etc) about the project . The specifics of the project activities are developed later .
The project statement of work and the business case document are some of the documents that need to be prepared before we start working on a project charter .
The project statement of work (SOW) is a written description of the project’s product , service or result .
The business case explains why a project is being undertaken , the problem it will solve as well as the benefit cost analysis .
If the charter is created properly , it also helps executives to see the business value of the project .They can also reference the charter to understand how well the project is aligned with the organizational strategies .
Josh Nankivel, PMP, a trainer and principal of PMStudent, said that “A project charter should also serve as an executive overview of your project, one that any new executive can reference to evaluate it. A good project charter can help save you from unnecessary scrutiny or having your project shut down because some executive didn’t see the business value in it from their perspective.
As per the PMBOK guide , the project charter is created in the define project charter process . This process is one of the first ones to be performed in a project and is completed in the Initiating process domain.
The PMBOK Guide , 4th edition (new one) states: “ Projects are authorized by someone external to the project such as a sponsor, PMO or portfolio steering committee. The project initiator or sponsor should be at a level that is appropriate to funding the project. They will either create the project charter or delegate that duty to the project manager. The initiator’s signature on the charter authorizes the project.” It should clearly state who is responsible for funding and should be signed by them . Josh Nankivel states in one of his articles , “I have worked with several project managers who ran into funding issues because a particular director or executive who said they would fund a project from their budget didn’t come through. The project charter should clearly state who is responsible for funding, and they need to sign it, too!”
Although the project manager himself is appointed in the project charter , the project manager can be involved in the preparation of the project charter .The charter is usually created by the sponsor or the initiator along with the project management team . The sponsor may lack the skills required to prepare a project charter and may need the help of a project manager to prepare a charter .
As Cornelius Fichtner , PMP trainer and host of the PM Podcast mentions in one of his articles “The PM is a subject matter expert when it comes to initiating and starting a project . Hence the PM is more qualified to create the project charter .He or she has more experience in doing this and knows what kind of details to add to the project charter ” .
Some key facts to be remembered about the project charter for the PMP certification exam are
Finally , lets check our level of preparation on this process for the PMP certification exam .1.The project charter should always include :
Need and importance of a Project Charter
Sabyasachi has over a decade’s experience in leading IT and non IT projects in the Healthcare, Oil and Energy, eCommerce, Public Sector Undertaking , and Services industry . He is a PMI certified Project Management Professional , PMP, and a volunteer in the Project management community with a focus on best practice and mentoring other project management professionals . His writings are regularly published in several blogs , forums and online project management communities .
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