Prerequisites for
Scope
Management
Define Scope
Learning Outcomes
Understanding project charter and stakeholder register
Understanding the Business Case
Project Charter Format
Integration of Business Case & Project Charter into Scope
Management
What is a project charter
•
Project Charter is 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 approved project charter formally initiates the project.
The key benefits
It provides a direct link between the
project and the strategic objectives of
the organization
The project charter establishes a
partnership between the performing
and requesting organizations.
A project charter may still be used
to establish internal agreements
• Creates a formal record of the project, and shows the organizational
commitment to the project.
• This process is performed once or at predefined points in the
project
• In the case of external projects, a formal contract
is typically the preferred way to establish an
agreement.
• Ensure proper delivery under the contract..
Project Managers Role in the Project Charter
Appointment of the project
Manager
Initial People involved in the
Project charter development
Authority of the Project Manager
•
A project manager is identified and assigned as early in the project as is feasible,
preferably while the project charter is being developed and always prior to the start of
planning.
•
The project charter can be developed by the sponsor or the project manager in
collaboration with the initiating entity.
•
This collaboration allows the project manager to have a better understanding of the
project purpose, objectives, and expected benefits.
•
Allow project manager for efficient resource allocation to project activities.
•
The project charter provides the project manager with the authority to plan, execute, and
control the project.
Build a New Theme Park In Sri Lanka
Disney California Adventure Park
Noah’s Ark - USA
SLTA is developing a business case to create a theme
park in Sri Lanka. You are appointed as the project
manager to develop the Business Case
Leisure World Sri Lanka
Process of Developing a
Project Charter
SOW – Develop a 2,500SQFT Warehouse in
Katunayake to store FGs for a period of 3
months as inventory
Project Charter and link to Business
Strategy
• Initiation of projects – Projects are
initiated by top management
• Top Management – Sponsor’s Role
•
Projects are initiated by an entity external to the project such as a
sponsor, program, or project management office (PMO), or a portfolio
governing body chairperson or authorized representative.
•
The project initiator or sponsor should be at a level that is appropriate
to procure funding and commit resources to the project.
Projects are initiated due to internal business needs or external
influences.
•
•
•
Conversion of business needs to project
objectives
• Legal Aspect of Project Charter
•
•
These needs or influences often trigger the creation of a needs
analysis, feasibility study, business case, or description of the situation
that the project will address.
Chartering a project validates alignment of the project to the strategy
and ongoing work of the organization.
A project charter is not considered to be a contract because there is no
consideration or money promised or exchanged in its creation
Project Charter
The project charter is used to provide the high-level project requirements and high-level product
description of the project so that detailed product requirements can be developed.
Stakeholder Register
The stakeholder register is used to identify stakeholders that can provide information on detailed
project and product requirements.
Documents Which
Require to Prepare a
Project Charter
Business case -
Opportunity Study
• The approved business case, or similar, is the
business document most commonly used to
create the project charter.
• The business case describes the necessary
information from a business standpoint to
determine whether the expected outcomes of the
project justify the required investment. It is
commonly used for making by managers or
executives above the project level.
Cost Benefit Analysis
• Typically, the business need and the cost
benefit analysis are contained in the business
case to justify and establish boundaries for the
project.
Linking Business Objectives to Projects
• The project manager needs to ensure that the project management approach captures the intent of
business documents. are we alined with the business case
Project Business Documents
Project business case –
A documented economic feasibility study used to establish the validity of the
benefits of a selected component lacking sufficient definition and that is
used as a basis for the authorization of further project management
activities.
Project benefits management plan –
The documented explanation defining the processes for creating,
maximizing, and sustaining the benefits provided by a project.
whether this give to ohigher end market, whether this to educatd market (what is the market segment)
Business Case
business case is importance to understand the charter
future market benefits and situation
• The project business case is a documented economic feasibility study used to establish the
validity of the benefits of a selected component lacking sufficient definition and that is used as a
basis for the authorization of further project management activities.
• The business case lists the objectives and reasons for project initiation.
all the things should be well defined
• It helps measure the project success at the end of the project against the project objectives. The business
case is a project business document that is used throughout the project life cycle.
• The business case may be used before the project initiation and may result in a go/no-go decision for the
project.
• A needs assessment often precedes the business case. The needs assessment involves
• Understanding business goals and objectives
• Issues
• opportunities and recommending proposals
• The results of the needs assessment may be summarized in the business case document.
Interrelationship of Needs Assessment and Critical Business/Project Documents
Responsible
Project Manager
what are the
resources
Responsible Sponsor, PMO
(with PMO it can be more PMs )
Features of the business case
People involved in the
business Case
•
The project sponsor is generally accountable for the development and
maintenance of the project business case document.
•
The project manager is responsible for providing recommendations and
oversight to keep the project business case, project management plan,
project charter, and project benefits management plan success measures
in alignment with one another and with the goals and objectives of the
organization.
• Determination of what is prompting the need for action
Business needs
• Situational statement documenting the business problem or
opportunity to be addressed including the value to be delivered to the
organization
• Identification of stakeholders affected
• Identification of the scope.
The process of defining the business need, analyzing the situation, making recommendations, and defining
evaluation criteria is applicable to any organization’s projects. A business case may include but is not limited to
documenting the following:
Business needs:
• Determination of what is prompting the need for action;
• Situational statement documenting the business problem or
opportunity to be addressed including the value to be delivered
to the organization;
• Identification of stakeholders affected;
• Identification of the scope.
Analysis of the situation:
• Identification of organizational strategies, goals, and objectives;
• dentification of root cause(s) of the problem or main contributors of an
opportunity;
• Gap analysis of capabilities needed for the project versus existing capabilities
of the organization;
• Identification of known risks; new supplier assesments , may be suppliers need to be changed
• Identification of critical success factors;
• Identification of decision criteria by which the various courses of action may be
assessed;
Features of the business case
Recommendation
A statement of the recommended option to pursue in the project;
Evaluation
A statement describing the plan for measuring benefits the project will deliver.
This should include any ongoing
operational aspects of the recommended option beyond initial implementation.
A business case could present the following three options:
Do nothing - This is also referred to as the “business as usual” option. Selection of this option results in the
stop doing new things
project not being authorized.
Do the minimum work possible to address the problem or opportunity - The minimum may be established
by identifying the set of documented criteria that are key in addressing the problem or opportunity.
do the business
Do more than the minimum work possible to address the problem or opportunity - This option meets the
minimum set of criteria and some or all of the other documented criteria. There may be more than one of
there is a ooportunity go and invest
these options documented in the business case.
Exercise – Success Measures
NSBM faculty is planning to conduct special one day workshops for corporate
executives. Programs are based on following streams, Project Management
for beginners, Management Accounting for non-finance managers,
Introduction to Lean(continuous improvement) Management.
List down 5 success measures for the program. Your success measures should
be linked to the following
• Business strategy
• Program execution
• Customer satisfaction
what we did
what they get
what are the error points
do the corrections
project manager needs to define critical success
factors for activities in project. this will help
business strategy - whether the deliverables are achieved or not
whether the initial tasks are going within the planned time
01 Project team members' effectiveness
02 Clarity of the deliverables
03 The way of validation
04 acceptance of external supplier deliverables
program execution - number of elements
the resources allocated on behalf of the students are sufficient or not
what are the categories of the participants ( whether the planned segment only or extra segments have involved with)
Customer satisfaction - how customers joined with the program
Project Charter Vs Scope Statement
example : class room build -
Integration of Project Charter in Project Management
Define Scope
Collect
Requirements
Plan Scope
Management
practis how to project charter link with every plan categories
Develop Project
Management Plan
Plan Communications
Management
Plan Cost
Management
Project Charter
Plan Schedule
Management
Plan Quality
Management
Plan Resource
Management
Identify
Stakeholders
Plan Risk
Management
Plan Procurement
Management
Plan Stakeholder
Engagement
CAP-EX - Capital Expenditure
OP-EX -Operational Expenditure
Project Charter Format
issue or opportunity and the anwer
unique id for tracking
(coz these cannot complete at onece
so it can has more previous
ammenements or )
PMO - Project Portfolio Manager
Project Charter Format
what are the deliverables -
who what where why
at the 1st year this thing should be completed
Assumption can be there in chrter but you need to clarify it
risk
Kaskate limitations
Building a new theme park in Sri Lanka. In world tourism, it is identified that the total
market is 3 billion USD. 50% of the travelers are from 13 to 40 years
20% above 50 years and 10% below 30 years. Most travelers below 40 years seek
adventure-based experiences during their stay. On average a traveler
would stay 10 days as a holiday and 20% will be dedicated to adventure
SL is identified as one of the best tourist destinations with a market potential of 3Mn USD
per annum at the movement, due to the lack of adventure-based experiences in Sri Lanka
most of the tourists go to other destinations such as Bhali Dubai Malaysia.
JKH Holdings is a leading PVT hospitality company in Sri Lanka with a hotel chain you are
appointed as a project manager to develop a team park in Sri Lanka
to boost the tourist industry.
develop a project charter to the management
Project Charter Format
climate
human complains
who are the people in the project sponser
PMO
PM
exceutive
consultance