Ch4.1 - Develop Project Charter Flashcards
Develop Project Charter definition
Process of developing a doc that formally authorizes existence of project, provides PM with authority to apply organizational resources to project activities
What does Project Charter authorize upon approval
Allows PM to apply org resources to project activities
What is benefit of Project Charter
Well-defined project start and project boundaries, creation of formal record of project, direct way for senior mgmt to formally accept and commit to project
4-2 ITTO
Input: 1 Project SOW 2 Business Case 3 Agreements 4 Enterprise environmental factors 5 Org process assets Tools & techniques 1 Expert judgement 2 Facilitation techniques Outputs 1 Project Charter
Project charter
establishes a partnership between the performing and requesting organizations
Project charter for external projects
formal contract is typically the preferred way to establish an agreement
External project - what does project team become
Seller
Project charter for internal projects
used toestablish internal agreements within an organization to assure proper delivery under the contract.
Approved project charter formally initiates what
the project, gives PM authority to plan/execute project
What steps occur after project charter initiated
project manager is identified and assigned as early in the project as is feasible, preferably while the project charter is being developed and always prior to the start of planning
Project Charter should be authored by whom
Sponsoring entity
At what point should PM be involved with project charter
participate in the development of the project charter to obtain a foundational understanding of the project requirements
By whom are projects initated
by entity external to the project such as a sponsor, program or project management office (PMO) staff person, or a portfolio governing body
Project initiator should be able to commit what
funding and resources
Why are projects initiated
due to internal business needs or external influences
Business needs or external influences trigger what?
creation of a needs analysis, feasibility study, business case, or description of the situation that the project will address
What does chartering a project validate
alignment of the project to the strategy and ongoing work of the organization
Is a project charter a contract
No - no $ exchanged or promised
SOW definition
narrative description of products, services, or results to be delivered by a project
Who provides SOW for internal projects
project initiator or sponsor
Who provides SOW for external projects
customer as part of bid doc (request for proposal, req for info, req for bid) or contract
What 3 areas does a SOW reference?
- Business Need
- Product scope description
- Strategic plan
What is a business need (5 things)
market demand, technological advance, legal requirement, government regulation, or environmental consideration
Where does a business need appear
Business case to justify project (along with cost-benefit analysis)
What is a product scope description
characteristics of the product, service, or results
document the relationship between the products, services, or results
business need that the project will address.
What is strategic plan
documents the organization’s strategic vision, goals, and objectives and may contain a high-level mission statement. Project should be aligned to strategic plan.
Business Case
describes the necessary information from a business standpoint to determine whether or not the project is worth the required investment
What two items are contained in business case
- Business Need
2. Cost-benefit analysis
What is justified in business case
business need
Business Case - sponsor agrees to what
scope and limitations of business case
Reasons for business cases
- Market Demand
- Organizational need
- Customer request
- Technological advance
- Legal requirement
- Ecological impacts
- Social need
- Market demand example
car company build more fuel-efficient car due to gas shortage
- Org need example
high overhead costs, company streamlines costs and combine staff function
- Customer request example
electric utility building a new substation to serve new park due to request
- Technological advance request example
Airline developing new project to develop electronic tickets based on technological advances
- Legal requirement example
Paint manufacturer authorizes project to establish guidelines to handle toxic materials
- Ecological impacts example
Company wants project to lessen environmental impact
- Social need example
nongovt org in developing country wants portable water systems to communities with cholera
Agreements
Define initial intentions for project
Agreement forms
contracts, memos of understanding MOU, sla, letter of agreement, letter of intent, verbal agreement, email, written agreement
Contract used for what kind of customer - ext or int?
ext
Enterprise Environmental Factors
- Govt standards, industry standard, regularions (codes of conduct, quality standards, worker protection standards)
- Org culture/structure
- Marketplace conditions
Organizational Process Assets
- Org standard processes, policies, process definitions
- Templates
- Historical info and lessons learned knowledge base (docs, project closure info, decision, previous proj info, info from risk mgmt activity)
Expert Judgement
used to assess the inputs used to develop the project charter
To what can expert judgement be applied
applied to all technical and management details during this process (develop project charter)
From what sources can expert judgement be used
Other units within the organization,
Consultants,
Stakeholders, including customers or sponsors,
Professional and technical associations,
Industry groups,
Subject matter experts (SME), and Project management office (PMO).
Facilitation techniques
Brainstorm, conflict resolution, problem solving, meeting management
Project Charter
document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities.
What is in a project charter
Project purpose or justification,
Measurable project objectives and related success criteria,
High-level requirements,
Assumptions and constraints,
High-level project description and boundaries,
High-level risks,
Summary milestone schedule,
Summary budget, Stakeholder list,
Project approval requirements (i.e., what constitutes project success, who decides the project is successful, and who signs off on the project),
Assigned project manager, responsibility, and authority level, and
Name and authority of the sponsor or other person(s) authorizing the project charter.
