CONTEMPORARY PROJECT MANAGEMENT, 4E

Timothy J. Kloppenborg

Vittal Anantatmula

Kathryn N. Wells

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Chartering Projects

Chapter 3

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‹#›

Chapter 3 Core Objectives:

Describe what a project charter is and why it is critical to project success

List elements of a charter and why each is used

Create each section of a charter

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3

Chapter 3 Technical Objectives:

Initialize a project in Microsoft Project

Set up a milestone schedule

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Chapter 3 Behavioral Objectives:

As a team, create a complete charter for a real project and present it to a sponsor for ratification

Negotiate with a sponsor to make your project realistic and achievable

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Ball Aerospace & Technologies Corp. Systems Engineering Solutions

“At Ball, we increase stakeholder buy-in by addressing and thinking about things up front; with an agreed-upon charter, this gives the project team some guidance to effectively plan and execute the effort.”

Lydia Lavigne, Ball Aerospace

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Atos Origin has been through three mergers/acquisitions in the last 15 years.

The project life cycle for most projects follow the typical IT project management approach.

A team of global employees works to service a client need

Onsite – program managers, project managers, business analysts, and technical architects

Offshore – designers, developers, testers

Entire operation is managed through a program management office (PMO)

PMO identifies, prioritizes, and ensures delivery of all projects

Adaptability and empathy are helpful strengths for project managers in this environment

Adaptability including the ability to hold the global team together

Empathy useful in respecting different choices of team members

6

What is a Project Charter?

An informal contract between the project team and the sponsor

A contract

is entered into freely by two or more parties.

cannot arbitrarily be changed

offers something of value for each party

is a living document that can evolve with changing conditions

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© 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

What is a Project Charter?

Signing a charter represents transition

Project initiating stage

Project planning stage

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© 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Why is a Project Charter used?

1. Authorize the project manager to proceed

2. Help to develop a common understanding

3. Create commitment

4. Screen out poor projects

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© 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Authorize the project manager to proceed

Project charter authorizes commitment of resources to a project

Project charter provides official status within the parent organization.

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Common understanding

Teamwork develops.

Agreement, trust, communication, and commitment develop.

Project team does not worry if management will accept a decision.

Sponsor is less likely to change the original agreement.

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When is a charter needed?

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© 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Typical Elements in a Project Charter

Title

Scope overview

Business case

Background

Milestone schedule

Risks/assumptions/constraints

Spending approvals/budget estimates

Communication plan requirements

Team operating principles

Lessons learned

Signatures and commitment

© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

© 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Typical Elements in a Project Charter

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© 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Scope Overview

High-level description of “what” and “how”

The project in a nutshell

Product scope – characteristic features and functions of what is being created

Requirements—characteristic or condition needed to satisfy either a contract or a stakeholder’s expectations

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Scope Overview

Used to help prevent scope creep

Considered to be the project boundaries

Quantifying the scope helps with understanding of project size

Scope creep – uncontrolled expansion to what was agreed upon

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© 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Business Case

Project purpose or justification statement

Answers the question “why?”

Used to justify the necessity of the project

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© 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Business Case

Ties project to the organization’s strategy

Provides rationale or high-level cost/benefit estimates

Persuades and inspires decision makers and team members

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© 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Background

Used to provide more detail to support the scope statement and business case statements

Background statement is optional

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© 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Milestone Schedule with Acceptance Criteria

Divides the project into intermediate steps whose completion can be verified

Lists major milestones and deliverables

Milestone schedule – summary-level project schedule composed of major milestones and/or completion of deliverables

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Milestone Schedule with Acceptance Criteria

Who will judge the quality of the deliverable and by what criteria?

Acceptance criteria represent the project’s vital signs

Never turn in a deliverable without knowing how it will be judged

Something of value will be delivered at each iteration

Acceptance criteria – markers against which deliverables can be evaluated for completeness and correctness.

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© 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Risks, Assumptions, and Constraints

Constraint – anything that limits project implementation

Assumptions – suppositions made during project planning that are treated as factual, though they’ve not been proven

Risk – an uncertain situation which could have a negative or positive effect on the project if it occurs

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Risks, Assumptions, and Constraints

Reminders of what could prevent successful completion of a project

Forethought and planning increases the likelihood of discovering problems before they occur

A false assumption becomes a risk

A constraint that limits money, time, or resources is a risk

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Risks

Identify negative risk and a plan to overcome it.

A positive risk can be considered an opportunity ? plan to capitalize on it

Consider the risk of NOT undertaking the project

Assign an “owner” responsibility for each negative risk

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Resource Estimates

A preliminary budget with level of confidence in the estimate

Identify expenses the project manager can authorize

Identify expenses the sponsor needs to control

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© 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Stakeholder List

Identify stakeholders

What does each stakeholder care about?

Who are the key stakeholders?

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Team Operating Principles

Enhance team functioning

Increase team effectiveness

Ensure all parties are aware of what is expected

How to accomplish work

How to conduct meetings

How to treat each other with respect

How to make decisions

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© 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Lessons Learned

Successes and failures of previous projects become practical advice

Avoid the risk of repeating mistakes from previous projects

Lessons learned – knowledge gained from one project which may be applicable to similar future projects

Lessons learned register – accumulation of knowledge learned, which can be easily referenced and cataloged.

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Signatures and Commitment

Who is involved

Extent to which each person can make decisions

Expected time commitment for each person

The project sponsor, project manager, and core team members show commitment by signing the charter

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© 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Constructing a Project Charter

Sponsor creates first draft of scope overview and business case

Leadership team may contribute additional information

Scope overview and business case should be one to four sentences each

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Scope Overview and Business Case Example

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Breakout session!

Create an “elevator pitch” for your project

30 second summary

What your project is (scope overview) &

Why it is necessary (business case)

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Background Instructions (Optional)

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Milestone Schedule with Acceptance Criteria

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© 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Six Steps in Constructing a Milestone Schedule

1. Describe the current situation that requires the project

(1st row of the milestone column)

Describe the project at its successful completion

(Last row of the milestone column)

Describe the acceptance criteria for the final project deliverables

(Bottom row of 3rd and 4th columns)

Determine the few key points in the milestone column where quality needs to be verified

For each milestone, determine who the primary stakeholder(s) is(are) and how the resulting deliverable will be judged

Determine expected completion dates for each milestone

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Create a Milestone schedule, using a chart with these four columns:

Milestones

Dates

Stakeholders

Acceptance criteria

Follow the six steps on the previous slide (section 3-5c in textbook) to complete the milestone schedule

1st iteration follows steps; all other iterations just-in-time

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Breakout session!

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Six Sigma Milestone Schedule and Acceptance Criteria Template

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Risks, Assumptions, and Constraints Instructions

Brainstorm all risks to

Identify and document assumptions

Quantify risks based on:

probability of occurring

impact if realized

Which risks should be considered “major?”

Major risks require formal response plan

Schedule

Budget

Usefulness

Satisfaction

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Risk Assessment Example

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Risk Response Planning Example

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© 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

As a group, identify as many risks as possible

Write each risk on a post-it note

Create a graph, such as that in Exhibit 3.9

As a team, decide where on the chart each risk goes (based on probability and impact)

Create risk response plans for each “major” risk and assign an owner to each risk

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Breakout session!

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Resources Needed Instructions

Use crude estimates for people, equipment, space, and money needs

Describe how estimates were developed & level of confidence

Develop limit of spending authority for project manager

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Estimate resources, following the example of Exhibit 3.11:

Money, people, space, equipment, etc.

Include level of confidence in your estimates

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