Project Chartering, PDF

Chapter 3 Chartering Projects Learning Outcome Describe a project charter and its critical role to project success. List the various elements of a charter and the purpose of each element. Understand how to develop a project charter in collaboration with the project sponsor and the team. De...

Chapter 3 Chartering Projects Learning Outcome Describe a project charter and its critical role to project success. List the various elements of a charter and the purpose of each element. Understand how to develop a project charter in collaboration with the project sponsor and the team. Describe Microsoft Project Compare differences between an Agile charter and a predictive project charter. What Is a Project Charter? “A 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” (p. 73) Source: Kloppenborg, T.J., Anantatmula, V.S., & Wells, K.N. (2023). Contemporary Project Management: Plan-Driven and Agile Approaches. Cengage. Four Purposes of a Charter a) A charter authorizes the project manager to proceed. - Commitment of resources to a project and provides official status within the parent organization. b) It helps the project manager, sponsor, and team members develop a common understanding of the project. - Team work develops, and the sponsor is likely not to change the initial agreement c) It helps the project manager, sponsor, and team members commit to the spirit of the project. d) It helps to screen out noticeably poor projects. Source: Kloppenborg, T.J., Anantatmula, V.S., & Wells, K.N. (2023). Contemporary Project Management: Plan-Driven and Agile Approaches. Cengage.  When is a Project Charter Needed? Project Charter Decision Matrix When implementing a change, it is critical to first decide whether it is a project. If it is a project, TriHealth has specific tools to help with planning and implementation. Little or no monies, Requires moderate Requires significant and/or Resources  supplies, or change in   resources resources additional FTEs Multidisciplinary  1 discipline involved/  2–3 disciplines involved/impacted  More than 3 disciplines impacted or more than one site involved/impacted Moderate complexity; affects care Complexity  Little complexity   Very complex delivery Technology  No technology changes  IS consult needed  IS resources assigned Involvement Approvals  None needed  Approval by immediate supervisor  Executive-level approval Potential Risk Level  Minimal impact on customer  Moderate impact on customer  Significant impact on customer Staff Commitment  Involvement of 2–3 people for  Small team needed to generate  Requires large team of multiple solution solutions departments for improvement Moderate communication plan; Communication and Education  Simple communication plan or  requires education across  Complex communication/education unit-based education only departments plan with various media Requires at least a one-time Metrics   Improvement will be tracked  Baseline and ongoing tracking of data follow-up check If the majority of your checks ↓ ↓ ↓ lie in this area:  No charter needed  Complete a mini charter  Complete a full project charter Source: TriHealth and Kloppenborg, T.J., Anantatmula, V.S., & Wells, K.N. (2023). Contemporary Project Management: Plan-Driven and Agile Approaches. Charter Elements and Questions Answered Charter Element Answer the Question Description Title It shows the features of a project. E.g., location, type Why? Scope overview What? Product scope (features of what you intend to create). Project boundaries and prevent scope creep (can't control agreed scope) Business case Why? Project purpose or justification statement Background Why? Details about scope and business case statement Milestone schedule/ Acceptance criteria When? Project schedule/markers against deliverables Success criteria What? E.g., cost, timeline, scope, deliverables Risks, assumptions, and constraints What? An uncertain situation, suppositions / limits project completion Preliminary budget (Expenses for authorization by project manager Resource estimates How much? and sponsor Identify stakeholders, what they care for, who are the key Stakeholder list Who? stakeholder? Team operating principles How? Improves team functioning. E.g., meetings, how to complete tasks? Lessons learned How? Record knowledge learned in lessons learned register Signatures and commitment Who? Project sponsor, project manager and core team members Source: Kloppenborg, T.J., Anantatmula, V.S., & Wells, K.N. (2023). Contemporary Project Management: Plan-Driven and Agile Approaches. Cengage.  Constructing a Project Charter Charter Element Description Scope overview and business case Sponsor creates a draft copy of scope overview and business case. Usually, 1 to 4 sentences Background May not be necessary if the scope overview and business case look detailed Milestone schedule/ Acceptance criteria Acceptance criteria could be sign off on test for testing, milestone incudes the date & owner Source: Kloppenborg, T.J., Anantatmula, V.S., & Wells, K.N. (2023). Contemporary Project Management: Plan-Driven and Agile Approaches. Cengage.  Business Case for Project Name Date Project Name: 1.0 Introduction/ Background 2.0 Business Objective 3.0 Current Situation and Problem/Opportunity Statement 4.0 Critical Assumption and Constraints 5.0 Analysis of Options and Recommendation 6.0 Preliminary Project Requirements Business case template 7.0 Budget Estimate and Financial Analysis 8.0 Schedule Estimate 9.0 Potential Risks 10.0 Exhibits Exhibit A: Financial Analysis Source: Schwalbe, K. (2021). An introduction to project management: predictive, agile, and hybrid approaches. Schwalbe Publishing.  Risk Response Planning Example Risk Event Risk Owner Risk Response Plan(S) Hardware inadequate Edie 1. Techs revise existing hardware 2. Replace hardware Associates do not have skills to Padraig 3. Train existing associates perform key functions 4. Hire additional people Key resource not available Ute 5. Identify external resources to fill need Source: Kloppenborg, T.J., Anantatmula, V.S., & Wells, K.N. (2023). Contemporary Project Management: Plan-Driven and Agile Approaches. Cengage. Team Operating Principles Instructions Establish How meetings will be conducted? How decisions will be made? How work will get done? How will everyone treat each other with respect? Lessons Learned Instructions Consider what has worked and what has worked poorly on previous projects. Report lessons learned at key reviews and at project completion. Ensure lessons learned is available in a knowledge base. Ratifying the Project Charter Submit the Project Charter for approval to the Sponsor. Sponsor seeks clarification and agreement by asking questions. The Project Charter is signed by the Sponsor, Project Manager, and the core team. Negotiations are pervasive in project management. are one way in which conflicts are managed and resolved. often determine the extent of success or failure of any project. Six-Step Guide Step 1 is advance fact finding to determine desired outcome of the negotiation. Step 2 is for the project manager to understand what the minimum acceptable result is. Step 3 is for the project manager to understand the underlying requirements of the sponsor and to share his or her own needs. Step 4 is for both parties to use that understanding what the other really needs, to explore various creative solutions that might be acceptable to both. Step 5 consists of the process and strategies of the negotiation itself. Step 6 is a reminder to reach an agreement and then to document that Source: Kloppenborg, T.J., Anantatmula, V.S., & Wells, K.N. (2023). Contemporary Project Management: Plan-Driven and Agile Approaches. Cengage. PMBOK Guide 7e Stakeholder - Engage with your customer to know their vision and expected outcome of the project. - Project team and key stakeholders engage in a two-way communication. Team - Team development, share project vision, encourage collaboration, and show team roles and methods. Development Approach and Life Cycle - Show overall project plan, predictive or hybrid (iterative or incremental). Planning - Plan to meet stakeholders’ expectations. Predictive can show success criteria. Measurement - What do you expect to do at various stages and indicators? SMART metrics. Uncertainty - Consider risks such as threat (negative risk) – avoidance, mitigation. - Opportunity (positive risk) – Accepting or exploiting Development Approaches Source: Project Management Institute, Inc., A Guide to the Project Management Body of Knowledge (PMBOK  Guide) Iterative and incremental development approaches The customer provides feedback after every iteration, often done in a set amount of time Each increment Source: Project Management Institute, Inc., A Guide to the Project Management Body of Knowledge (PMBOK Guide) – Sixth Edition (2017), Figure X3-1, p. 666. Source: Jeff Patton (accessed 2021)  Agile Projects and Charters Comparison of Plan-Driven and Agile Approaches for Project Chartering Project Chartering Questions Plan-Driven Agile How do people initiate a project? (Formal) Charter (Informal) Charter What are the purposes of a authorize, understand, commit, screen authorize, understand, commit, charter? screen Why do the project? business case vision statement What is included? scope overview product roadmap When will it be done? milestone schedule releases and iterations How will outputs be judged? success criteria at milestones definition of done What might interfere? risks, assumptions, constraints impediments Who cares? stakeholders stakeholders How will work be accomplished? team operating principles and lessons team operating principles and learned retrospectives Pledge signatures and commitment by sponsor signatures and commitment by and team product owner and team Source: Kloppenborg, T.J., Anantatmula, V.S., & Wells, K.N. (2023). Contemporary Project Management: Plan-Driven and Agile Agile Terms Used in Chartering Projects Term Definition Commit to Work Team promises how much they will accomplish in timebox. Timebox A defined number of hours or days to complete an agreed-upon amount of work. Product Vision Description of customer satisfaction and alignment with business objectives at an initially. high level Sprint Short time period when team commits to creating specific deliverables. (aka iteration) Defer Decisions By making decisions as late as possible, teams have better information. Sustainable Pace Amount of work team can consistently produce well. Commitment Team follows through, only taking on tasks they can do. Definition of Agreement on exactly how the Product Owner (PO) will judge the deliverables Done produced. Share Knowledge Deliberatively capture and share tacit knowledge. Source: Kloppenborg, T.J., Anantatmula, V.S., & Wells, K.N. (2023). Contemporary Project Management: Plan-Driven and Agile Approaches. Cengage. Agile Agile projects take a more informal approach than a formal project Charter. Following the first milestone, an Agile Charter is a general roadmap of the project. One essential concept of Agile projects is to make decisions at the latest responsible moment possible, allowing for more comprehensive information to be used in the decision. The agile project begins with the product owner's approval for the team to begin work on the project. Source: Kloppenborg, T.J., Anantatmula, V.S., & Wells, K.N. (2023). Contemporary Project Management: Plan-Driven and Agile  A Typical Project Charter Source: https://www.techno-pm.com/2017/05/project-charter-template-ppt.html Summary A project charter allows the project sponsor, project manager, and core team to reach high-level agreement on the project. Scope Overview, Business Case, Milestone Schedule, Acceptance Criteria, Risks, and Signatures are all included in charters. {Others can be optional}. The Business Case and Scope Overview are written in rough draft form. The Charter is reviewed by the Sponsor alongside the Project Manager and the core team. The Charter document concludes the project initiating stage and begins the planning step.