Project Charter

A project charter is the first step in the Six Sigma methodologies. It takes pla
ce in the Define step of DMAIC, and the charter can make or break a successful p
roject. It can make it by specifying necessary resources and boundaries that wil
l in turn ensure success; it can break it by reducing team focus, effectiveness
and motivation.
So what pieces are necessary and what are some tips people have learned over the
years? Alright, let's get down to business. Here are the major project charter
areas that are necessary.

Project Charter Illustartion Template

GAUTAM KOPPALA ORG
Project Charter
Project Name:
Date:
Point of Contact:
The following are suggested sections for the Project Charter
Approvals
The signatures of the people below relay an understanding in the purpose and con
tent of this document by those signing it. By signing this document you agree t
o this as the formal Charter statement sanctioning work to begin on the project
described within.
Position/Title
Name
Date
Phone Number
Purpose
Describe the purpose of the Project charter using the following guidelines. Do
not merely describe the content of the plan, but explain why a Charter is necess
ary for the project
The purpose of the (XYZ) project charter is to communicate the authorization for
the project and the management approach to project participants and external en
tities. The project charter lays the groundwork for informed decisions and plan
ning regarding projection direction, outcomes and delivery.
Project Objective
Define the objectives of the project as they relate to the goals and objectives
of the organization along the following guidelines
The [Project] will support the following [Organization] strategic goals. For eac
h goal, [Project] objectives are identified. The project plan developed as a res
ult of this project charter will:
▲ Develop a project performance measurement plan to measure performance ag
ainst these objectives.
▲ Provide a project performance report to report the results.
The [external oversight committee] must approve the project performance measurem
ent plan.
Organization Strategic Goals
Project Objectives
Summary Scope Statement
The level of detail in this section must be sufficient to allow for detailed sco
pe development in the Project Plan. The Project Manager will develop a more deta
iled description of the project scope.
Project Authority
Describe the authority of the individual or organization initiating the project,
limitations or initial checkpoint of the authorization, management oversight ov
er the project, and the authority of the Project Manager. Also, ensure that the
project initiator has the authority to commit the appropriate resources within
the organization.
Project Manager
Explicitly name the Project Manager and define his/her role and responsibility o
ver the project. Also list the Project Manager's skill sets, and justify their s
election for this project. Depending on the project complexities, this section
may describe how the Project Manager will control matrixed organizations and emp
loyees.
Project Oversight
Describe department management control over the project. Within the project, int
ernal control should be established to control the day-to-day activities of the
project. The Project Manager should manage internal control. External oversight
should be established to ensure that the organization's resources are applied to
meet the project and organization's objectives. Describe or reference a process
by which internal and external controls interact. Diagrams should be used where
appropriate.
Roles and Responsibilities
Discuss the overall structure of the project organization and its roles and resp
onsibilities throughout the project phases. Include the roles of identified pro
ject stakeholders
Project Constraints
List and describe any identified project constraints. Typically, constraints wil
l impact timing, cost, resources and/or quality.
Preliminary Schedule and Cost Estimates
Provide a rough estimate of dates to accomplish key project tasks. Consider any
constraints and assumptions prepared above when considering the preliminary tim
ing. Describe key management checkpoints established by the initiating authority
. Similarly, provide a rough order of magnitude estimate of project costs.

Management Checkpoint
Evaluation Criteria
Business Factors
Assumptions
Required. Describe known assumptions for the project. Assumptions are factors t
hat, for planning purposes, are considered to be true, real, or certain. Some ex
amples:
It is assumed that:
Resources will work 40 hours per week.
All materials will be delivered on time.
A Database Administrator will be available as needed.
Business Analysts will perform acceptance testing within xx days of product deli
very.
Project Change Control
Required. Describe the change control process to be used on the project, includi
ng how changes to the project scope, time, or budget will be documented and appr
oved.
Project Communication
Optional. Describe how the project will be structured and communicated. Include
the type and frequency of reports (e.g., weekly team reports, monthly steering
committee reports, project dashboards). Include the type and frequency of meeti
ngs, for example:
Steering Committee – monthly
Project Team – weekly
Change Control Board – as required
Development Process
Optional. Identify the development process that will be used for this project (e
.g., waterfall, iterative, RUP, Agile, Release). The client's understanding of
this process will help when setting expectations for completing certain delivera
bles.
Quality Assurance
Optional. Identify any quality assurance processes (e.g., IV&V, audits) required
.
Project Tracking
Required. Identify the process for tracking the project (e.g., Clarity, Microsof
t Project). Note whether time will be charged directly against tasks or whether
a percent complete will be used instead. List the major milestones within the p
roject.
Estimated Budget
Required. Provide a general estimate of the cost and/or time commitment required
to complete this project successfully. Indicate either a range of accuracy of
the estimate (e.g., "plus or minus xx percent") or a level of certainty regardin
g the estimate (e.g., "xx percent accuracy").
Explain the basis for the estimate. For example, "estimate is based on a top-do
wn estimating technique" or "estimate is based on actual hours from a similar pr
oject."
For larger projects, consider breaking the estimate out by lifecycle phases. St
ate that as the project moves from one phase to the next, the estimate should be
re-examined and, if necessary, reviewed and re-approved by the project sponsor
or steering committee.
Estimated Target Completion Date
Required. The project schedule should dictate the project completion date. Howe
ver, sometimes the completion date is set for you as a result of, for example, l
egislative mandate, federal requirements, or business requirements. If a speci
fic completion date is required, state the date and the reason for the requireme
nt.
If a specific completion date is not required, give a best estimate. State that
a more accurate date will be provided when the project schedule has been more f
ully developed.
Resources and Contacts
Resources Required
To the extent known when the Project Charter is written, identify the resources
or types of resources (roles) that will be needed to complete this project succe
ssfully. Include the estimated level of involvement of technical, client, and e
xternal resources. If non-human resources will be required (e.g., software, har
dware, facilities), include them as well. Indicate that resource requirements wi
ll be more fully defined in the Work Breakdown Structure. For example:
This project is estimated to require:
One Project Lead Part time 25%
Two Web Developers Full time
One CICS Developer Part time 5%
One Business Analyst Part time 5%
These resource requirements will be more fully defined as part of the WBS.
Key Stake holders
Required. List the key stakeholders who will impact or be impacted by this proje
ct. A stakeholder is a person or organization actively involved in the project
or with interests that may be affected positively or negatively by execution or
completion of the project.

Stakeholder Analysis for Project Name

Prepared by: Date:
Stakeholder 1
Stakeholder 2
Stakeholder 3
Organization
Role on project
Unique facts about stakeholder
Level of interest
Level of influence
Suggestions on managing relationships
Stake holder analysis for Communication Plans
Steering Committee
Optional. If the project requires a Steering Committee, list their names, func
tions, and levels of authority. Include the purpose for including this committe
e on the project.
Key Contacts
Optional. Identify the individuals (client and project) who will serve as primar
y points of contact for various aspects of the project. Examples might include
the functional lead, technical lead, and primary business analyst. Key contac
ts may also be stakeholders or steering committee members.

gautam koppala,
pome author