OBS 220 project management chp 3. detailed notes to help better apply the knowledge on application question. notes are made from both slides and textbook
What is a project charter
• This short document serves as an informal contract between the project team and
the sponsor
• Is a document that formally authorizes the existence of a project and provides the
project manager with authority to apply organizational resources to project activities
• From behavioral perspective, project charter reflects a common understanding and
collaboration between the project sponsor and project manager
• Charter is like a contract, therefore it is an agreement entered into freely by 2 or
more parties and one party cannot arbitrarily change it and there is something of
value for each party
• It is a document which can evolve with changing conditions if both parties agree
• Signing a charter represents transitions from high level project initiation stage to
project planning stage
• Charter is drafted by either project manager or sponsor and then negotiated
Why is a project charter used
• There are 4 major purposes:
1. Authorize the project manager to proceed
2. Help the project manager, sponsor and team members if any are already
assigned, develop a common understanding
3. Help project manager, sponsor and team members commit to the spirit of the
project
4. Screen out poor projects
• Project manager do not have authority to commit resources without a charter
• Once common understanding of clear project goals, several additional benefits occur
such as:
- Team work
- Agreement, trust, communication, collaboration and commitment amount the
sponsor, project manager and project team develop
- Project team does not worry if management will accept a decision and can focus
on project plan
- Sponsor is less likely to unilaterally change the original agreement
Created by: Sabrina Dias
, When is a charter needed
• The decision matrix is used to help people determine if a full charter, mini charter or
no charter is needed.
Typical elements in a project charter
• The term charter is widely used some organizations use other names such as project
request, project submission form or project preplanning form
• Right length of charter consists of 4 pages
Title
• The existence of a meaningful project title is critical
• Titled used to quickly identify which project is being referenced
Scope overview
• Scope overview and business case sections are the high-level ‘what and why’ of the
project
• Sometimes considered to be the ‘elevator speech’ that a person would use if given a
very short amount of time, such as one floor elevator ride
• This is a high-level description of what needs to be accomplished and how it will be
done
• Product scope: characteristic features and functions of what is being created
• Requirements: characteristic or condition needed to satisfy either a contract or a
stakeholders expectations
• Scope creep: uncontrolled expansion to what was agreed upon
• Scope overview is used to prevent scope creep
Created by: Sabrina Dias
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