If anybody in the organization could start projects, what would be the end result?. Death of such organizations are inevitable. Do not mistake me. Companies like Google promotes innovation. Many of their successful products started off as employee initiatives. Should we curb such initiatives?. Before answering this, let us try to answer the timing of project failure. When does projects fail?. Do they fail in the beginning or, is at the end?. Most of the projects fail at the beginning. The main root cause for project failure is lack of good business case. Since companies have very limited resources, they must be wisely utilized. Hence, every new project idea must be reviewed before funding.
What is project chartering?
Project chartering is the process of qualifying or disqualifying projects after analyzing their business case, technical viability and alignment to organizational values and strategy.
The output of the project chartering is the ‘Project charter’ document which contains;
- The purpose of the project
- High level scope of the project
- Business case
- Alternatives analysis
- Key milestones with dates
- High level risks
- Constraints and assumptions
- Key stakeholders, their roles and contact details
- Project managers name, roles and responsibilities etc
Project sponsor approved the project charter. Therefore, any changes to the project charter must be re-approved by the sponsor or the senior management representative. Project charter is the most authentic document which appoints the project manager. Hence it is generally said that project charter provides authority to the project manager. Definition of a formal project charter gives the opportunity to define the roles and responsibilities of all key stakeholders.
Reference material to prepare the project charter
- Contract document
- Statement of work (SOW)
Can the project manager help to draft the charter?
Very often the sponsors are too busy. In such cases the project managers may help to draft the charter and it is approved by the sponsor. It is a great document to get a bird’s eye view of the project.
The project chartering process ensures that only the right projects gets funding and are authorized to start.