Develop Project Charter Explained
The Develop Project Charter process is a critical step in the Initiating Process Group of project management. It involves creating a formal document that authorizes the project and provides the project manager with the authority to apply organizational resources to project activities. The Project Charter serves as a blueprint for the project, outlining its objectives, scope, stakeholders, and high-level requirements.
Key Concepts
1. Authorization of the Project
The Project Charter formally authorizes the existence of a project. It is typically created by the project sponsor or initiator and is signed by the project sponsor to provide official approval. This authorization is crucial as it allows the project manager to begin allocating resources and initiating project activities.
Example: A company decides to launch a new product line. The project sponsor drafts a Project Charter that outlines the product's objectives, target market, and budget. Once signed by the sponsor, the project manager is authorized to proceed with the project.
2. High-Level Project Scope
The Project Charter includes a high-level definition of the project scope, which outlines the boundaries of the project. This includes what is included in the project and what is excluded. A clear scope helps in managing stakeholder expectations and prevents scope creep, which is the tendency for project scope to increase over time without a corresponding adjustment in time, cost, and resources.
Example: For a software development project, the Project Charter specifies that the initial version of the software will include user login, data storage, and basic analytics. Advanced features like AI integration are excluded from the initial scope to keep the project manageable.
3. Project Objectives and Deliverables
The Charter outlines the project's objectives, which are the specific goals that the project aims to achieve. These objectives are typically aligned with the organization's strategic goals. Additionally, the Charter identifies the key deliverables that will be produced as part of the project. These deliverables are tangible outcomes that contribute to achieving the project objectives.
Example: In a marketing campaign project, the objectives might include increasing brand awareness by 20% and generating 500 new leads. The deliverables could include a series of promotional videos, social media posts, and a landing page for lead capture.
4. Stakeholder Identification
The Project Charter identifies the key stakeholders involved in the project. Stakeholders are individuals, groups, or organizations that could impact or be impacted by the project. Understanding who the stakeholders are and their interests is essential for managing their expectations and ensuring project success.
Example: For a construction project, the stakeholders might include the project owner, contractors, local government authorities, nearby residents, and environmental groups. The Charter outlines their roles and interests to ensure effective stakeholder management.
5. Project Manager Authority
The Project Charter appoints a project manager and provides them with the authority to apply organizational resources to project activities. This authority is crucial for the project manager to make decisions, allocate resources, and manage the project effectively.
Example: In a healthcare IT project, the Project Charter appoints a project manager who is given the authority to hire consultants, purchase software licenses, and manage the project budget. This ensures that the project manager has the necessary authority to execute the project successfully.