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Develop Project Charter Process Group

Develop Project Charter

Develop Project Charter is the process of developing a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities. The key benefit of this process is a well-defined project start and project boundaries, creation of a formal record of the project, and a direct way for senior management to formally accept and commit to the project. The inputs, tools and techniques, and outputs for this process are shown in figure

develop project charter

 

Definition:

“The Process of developing a document that formally authorizes the existence of a project and provides the Project Manager with the authority to apply organizational resources to project activities”

 

                                                                A Project Charter:

  • Formally authorizes a project or a phase
  • Documents initial requirements that satisfy the stakeholder’s needs and expectations
  • Assigns the PM to the Project
  • Benefits include a clear definition; a formal record; a record of senior managers committing to the project

 

inputs to project charter

 

Input: Project Statement of Work (SOW)

– States or references the business need
– Can be progressively elaborated
– Product Scope Description – Documents the characteristics of the end product, service or result
– Strategic Plan – Vision, Goals, Objectives Strategic Alignment
– The Project SOW:

  • Develops into the Project Charter and Project Scope Statement
  • Is different to the Procurement SOW

Input: Business Case

– Justification for the investment in the Project Contents typically:

  • Executive Summary
  • Problem/Opportunity
  • Reasons/Business Need
  • Business Options
  • Benefits (tangible and intangible)
  • Success Criteria
  • Key Risks
  • Project Costs &Time
  • Investment Appraisal
  • Major Milestones
  • Cost Benefit Analysis

– Investment Appraisal also called the Finance Case

  • Presents the value this project will bring
  • How viable it is and is used to help in selecting this project

Input: Agreements

May be a:

  • Contract
  • Service level agreement
  • Letter of intent
  • Letter of Agreement
  • Email
  • others

 

 

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