Content of a
Business Case – a
– quality characteristics
– why project is
commissioned – to develop something new or to improve something
– a list
– name of the project
manager and other key team members
Staff Effort Limit
Budget (or Spending Limit)
– other than deadlines, staff effort, and budget
– ranking of scope, schedule, and cost
Use of a Project Charter
The project charter is a one-time
announcement. It clearly establishes the project manager's right to make
decisions and lead the project.
The intent of a project charter is
to give notice of the new project and new
manager and to demonstrate the upper management support for the project
and the project manager.
10 Key Project Leader Skills
It is also used by the sponsor to
provide a broad direction for the project to the project manager. The
charter should precede the other project documents as it establishes the
project manager's authority which, in turn, is necessary to get the
stakeholder agreements written.
There are two ways most firms
organizations use the term project charter:
A project definition document
A formal recognition of authority
charter establishes referent authority, i.e. the use of another person's
authority, within the scope of the project.
Audience of a
The charter should be made
available to all
project stakeholders – everyone who
may associated with the project, reaching as wide an audience as practical.
The charter is usually written by the sponsor or the project leader and
should be approved by the sponsor, the customer, and the resource manager.
Content of a
The charter outlines the direction
and constraints of the project. The Scope Section of the Charter describes
the project objectives and deliverables, customers and their needs and
requirements, project stakeholders. The Resources Section of the Charter
names the project manager and other key project team members, the deadline,
staff effort limit, budget, and other organizational constraints which the
project must live within. In order for the team to make the best choices
between the three main variables, the Resources Section describes also
project priorities according to the ranks assigned by the sponsor to the
scope, schedule, and cost.