Intro to Project Management: Project Selection and Initiation - Project Charter, Contents Purpose Objectives High-Level Scope Key Stakeholders Assigned PM&Authority

What This Is

The Project Charter is a foundational document that outlines the project's objectives, scope, stakeholders, and authority. It serves as a starting point for project planning and ensures that all stakeholders are aligned with the project's goals. For example, when launching a new software product, the Project Charter would define the product's features, target market, and key performance indicators (KPIs).

Key Terms & Formulas

• Project Charter: A document that formally authorizes a project and defines its objectives, scope, stakeholders, and authority.
• Project Sponsor: The individual or organization that champions the project and provides resources.
• Stakeholder: Any person or organization that may be affected by the project's outcome.
• Project Manager (PM): The individual responsible for planning, executing, and delivering the project.
• Authority: The level of decision-making power granted to the PM.
• Scope Statement: A document that outlines the project's objectives, deliverables, and boundaries.
• High-Level Scope: A brief description of the project's scope, including its objectives and deliverables.
• Key Performance Indicators (KPIs): Quantifiable measures used to evaluate the project's progress and success.
• Triple Constraint: Scope, Time, Cost – changes to one affect the others.
• Authority Matrix: A tool used to assign authority levels to stakeholders and PMs.

Step-by-Step / Process Flow

1. Identify Stakeholders: Determine who will be impacted by the project's outcome, including project sponsors, team members, customers, and vendors.
2. Define Project Objectives: Outline the project's goals, deliverables, and KPIs.
3. Develop High-Level Scope: Create a brief description of the project's scope, including its objectives and deliverables.
4. Assign Project Manager: Appoint a PM to lead the project and make key decisions.
5. Establish Authority: Define the level of decision-making power granted to the PM and stakeholders.
6. Obtain Formal Approval: Secure approval from stakeholders and sponsors to proceed with the project.

Common Mistakes

• Mistake: Failing to involve stakeholders in the project planning process.
• Correction: Engage stakeholders early and often to ensure their needs and expectations are met.
• Mistake: Not clearly defining project objectives and scope.
• Correction: Develop a clear and concise scope statement to guide project planning and execution.
• Mistake: Overlooking the importance of authority and decision-making power.
• Correction: Establish clear authority levels to avoid confusion and ensure effective project management.

Exam Tips

• Tip: Be prepared to explain the purpose and content of the Project Charter.
• Tip: Understand the difference between project sponsors and stakeholders.
• Tip: Be able to identify and describe the key elements of a Project Charter.

Quick Practice Questions

1. If the CPI (Cost Performance Index) is 0.8, is the project under or over budget? Answer: Under budget. Explanation: CPI = EV / AC, where EV is earned value and AC is actual cost.
2. What is the primary purpose of the Project Charter? Answer: To formally authorize a project and define its objectives, scope, stakeholders, and authority.
3. Who is responsible for making key decisions on a project? Answer: The Project Manager (PM).

Last-Minute Cram Sheet

• Project Charter: A document that formally authorizes a project and defines its objectives, scope, stakeholders, and authority.
• Project Sponsor: The individual or organization that champions the project and provides resources.
• Stakeholder: Any person or organization that may be affected by the project's outcome.
• Project Manager (PM): The individual responsible for planning, executing, and delivering the project.
• Authority: The level of decision-making power granted to the PM.
• Scope Statement: A document that outlines the project's objectives, deliverables, and boundaries.
• High-Level Scope: A brief description of the project's scope, including its objectives and deliverables.
• Key Performance Indicators (KPIs): Quantifiable measures used to evaluate the project's progress and success.
• Triple Constraint: Scope, Time, Cost – changes to one affect the others.
• Authority Matrix: A tool used to assign authority levels to stakeholders and PMs.
• CPI = EV / AC: Cost Performance Index = Earned Value / Actual Cost.
• Authority and decision-making power are not the same thing.