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Developing the Project Charter

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After it’s received, the business case for a project should be reviewed to determine its conformance with the organization’s needs and priorities. If the initial submission is approved, a project charter is prepared (by the project manager) containing all the information required to decide whether the project should proceed to the organizing- and-planning phase of its life cycle. The project charter, when approved, authorizes the existence of a project and provides the project manager with the authority to use organizational resources to support the performance of project activities.

The project charter may include, but is not limited to, the following information about the products, services, or other results the project will produce:

 Project name

 Project purpose

 Assigned project manager, responsibility, and authority level

 Name and authority of the sponsor(s) authorizing the project

 High-level project description, boundaries, and key deliverables

 High-level business requirements

 Measurable project objectives and corresponding success criteria

 Project approval requirements (who decides the project is successful and who signs off on the results)

 Summary milestone schedule

 Preapproved financial resources (budget)

 Overall project risk

 Key stakeholder list

 Project exit criteria

Two studies that may be performed to generate additional insight into the potential value and likelihood of success of the project being considered are a cost-benefit analysis and a feasibility study. The following sections discuss the types of information each seeks to provide and describe the documents produced during the development of a project charter.

A project manager should be assigned as soon as possible after the business case is accepted and certainly before the project enters its organizing and planning phase. This will allow the project manager to participate in the development of the project charter and, in this way, become familiar with the reasons for the approaches planned and the results to be produced.

Project Management For Dummies

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