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
