Decoding the Project Charter: Why is it Vital for Project Success? | Why is the Project Charter Crucial for Project Success?

Introduction: In the realm of project management, the Project Charter stands as a beacon, guiding the endeavor from inception to fruition. This document, often overlooked in its significance, serves as the cornerstone upon which successful projects are built. In this two-part series, we embark on a journey to demystify the Project Charter, unraveling its components and unveiling its essence.

Developing the Project Charter

To understand the Project Charter, the Project Manager needs to understand the: 

• Project context,
• Project Scope, Objectives, and Success Criteria,
• Customer and key Stakeholders,
• High level requirements, assumptions and constraints,
• Key Milestones,
• Budget,
• Governance arrangements and approvals,
• Sponsor,
  and then of course,
• who approves the Charter?

And of course the documents that need to be in your possession in order to understand what the project is about, such as:

• Bid documents,
• Contract,
• Contract reference documents (SOW, Proposal etc.)
  and
• Business Case.

There is a load of information sources and consultation with the Sponsor, to complete the template for the Project Charter.

So let's keep going and see what else you need to know.

 

Project Governance Structure

A Project Governance Organisation Chart will be provided clearly showing:

·         Lines of engagement and,

·         Lines of support and Dependent projects.

The Project Governance Authority will define the four key governance groups such as Project Sponsor, Project Control Group (PCG), Project Director and Project Working Group (PWG) including their roles and responsibilities.

Project Governance Structure – Authority

To formally authorise the existence of the project and  provide the Project Director with the authority to apply resources to project activities they should first develop and get signed off - the roles and responsibilities of the key stakeholders who will govern the project.  This Structure should provide:

·         How will the project be governed?

·         Is there a project board? 

·         Who makes the ‘Go/No-Go’ decisions?

·         What is the escalation path?

Governance Group	Role and Responsibility
Project Sponsor	Execute the project budget, Capital Expenditure Authority (CEA)
	Execute the Lease documents: Binding Heads of Agreement (HoA) and Lease
	Monitor risk register
	Ratify change requests greater than $500k or where there is a significant schedule impact
Project Control Group (PCG)	Ratify change requests up to the value of $500k when within the CEA budget
	Address ‘extreme’ risk and issues derived from PD/PWG
	Monitor agreed programme and budget
	Endorse the Stakeholder Requirement findings
	Endorse the Project Charter and Project Plan covering: authority, process, scope and program
	Summarised discussion on project activities, progress and dependencies
Project Director (PD)	Make decisions on risks and issues derived from PWG up to $100k value
	Monitor agreed programme and budget
	Ratify project expenses when within approved project scope and budget
	Consolidate and report on project activities, budget, progress, dependencies, risks and issues to PCG
Project Working Group (PWG)	Discuss project activities, progress, dependencies, risks and issues
	Provide progress reporting on budget, programme and recommendations for approval
	Conduct impact assessment on change requests and submit for endorsement at the necessary governance level
	Monitor agreed programme and budget

 

High Level Milestone Program

What are the timescales for the project?  The High Level Milestone Program will list the key milestones and dates that have been committed. These may be contractual milestones defined in the contract and can be approximations only and require validation with stream leads and relevant vendors once all key stakeholders are engaged. 

 

Metrics, Monitoring and Review

The designated author will be responsible for the review of this process and will also review related documents, tools and templates such as the:

·         Stakeholder Register

·         Project Launch details

Importantly and not mentioned yet, but I am sure you have asked yourself the question, what about the document control of these documents.  Yes, the designated author will also initiate the document, and version control of the Project Charter and records and data shall be filed  in the project file .

 

PCG Support Requirements – Dates and Responsible Owner

Even though Project Charters are done for all types of projects, let's just take a look at what our accommodation project looks like and the information you will need to understand and include.

·         Who are the key stakeholders for the project?

·         Who is the Sponsor?

·         How is the Client represented?

·         Are there any other Primary Stakeholders?

Example of some typical deliverables and owners you may include in your Project Charter:

Deliverable	Indicative Completion Date	Owner Responsible
Project Initiation
- Endorse Project Plan, Charter and Stakeholder Requirement findings
- Finalise Premise Offer to proceed with Binding HoA
- Execute Capital Expenditure Authority (CEA) & Binding Heads of Agreement (HoA)
- Execute Lease
New Workplace Environment and Workplace Principles
- Share the Stakeholder Requirement findings from the business consultation seminars. Providing information on the: current state, business aspirations, benchmark reviews and the interpreted new workplace
- Present recommendation to ELT with regards to an Agile of Fixed Workplace Environment
- ELT decision on adopting an Agile or Fixed Workplace Environment in the new Brisbane premise
Concept Design
- Submit Concept Design Package to Sponsor and PCG for review/comment	23-03-2017	• Property
- Deadline for any return commentary to the Concept Design Package	30-03-2017	• PCG and Sponsor
Detail the New Workplace Principles
- Develop the New Workplace Principle details	02-06-2017	• Property with Stakeholders
- Submit the New Workplace Principles for review/comment	09-06-2017	• Property
- Deadline for any return commentary to the New Workplace Principles to implement	23-06-2017	• PCG and Sponsor
Block and Stack
- Agreed Business Block and Stack plan	04-08-2017	• WPS with Business

Project Working Group Stream Responsibilities

Previously you have learned what the PCG support requirements may be and who the responsible owners are - but now let's take a look at the key stakeholders involved in the project. 

Who are the key stakeholders for the project?  Who is the Sponsor?  How is the Client represented? Are there any other Primary Stakeholders?

What are the roles and responsibilities that the Project Director and/or Project Manager may provide to the stream leads who are involved in the project?

Below are some typical responsibilities that may be included when undertaking an accommodation project.

Note:  all workstream leads would be familiar with what they are to deliver to the project and these deliverables should align directly to what the Project Director or Project Manager has provided each of them.

 

User Requirements Stream (User)

Fitout Stream (Fitout)

• Consult with the business to gather aspirational requirements • Develop aspirations into the workplace principles for the fitout design and share with the business stakeholders and project team • Gather forecast staffing numbers from the business • Prepare a Space Budget report (area breakdown of workplace) identifying the work setting types and environments to the floors for the project • Develop the strategy for the Workplace principles of the future (traditionally fixed, part or full agile, etc) • Gain endorsement of the Workplace principles strategy • Develop a stacking diagram to the new premise • Take part in project stream reporting and coordination activities, such as Project Working Group meetings and monthly progress reporting • Take part in the development of the baseline budget and over-arching program • Identify, share, monitor and escalate risk dependencies and cross-stream project delays • Monitor, track and escalate stream budget concerns

• Take handover from the User Requirements stream • Procure fitout consultants and develop the design to full Construction issue documentation • Gain all necessary information from the business, PCG and Sponsor as required • Procure the required suppliers and contractors to complete the fitout works • Take a lead role in cross-project stream related dependencies to the Fitout. Drive scope, design and program requirements • Take part in project stream reporting and coordination activities, such as Project Working Group meetings and monthly progress reporting • Take part in the development of the baseline budget and over-arching program • Identify, share, monitor and escalate risk dependencies and cross-stream project delays • Monitor, track and escalate stream budget concerns

 

Technology Stream (IT, OT)	Commissioning and Operations Stream (Ops)
• Investigate and propose IT/OT solutions to the project objectives, considering the constraints	• Review and input into design documentation
• Develop IT/OT scope of works to achieve the project objectives	• Prepare commissioning methodology proposals, considering the project constraints
• Consult and coordinate with the Fitout stream to ensure clear scope delineation, deliverables, and touch-points	• Review and take part in the project Commissioning of works
• Gain all necessary information from the business, PCG and Sponsor as required	• Consult and coordinate with the Fitout stream to ensure clear scope delineation, deliverables, and touch-points
• Acquire, validate and govern execution of the IT/OT vendor statement of works	• Update the Workplace Operations systems,  procedures, facilities and documentation
• Procure, manage and coordinate all IT/OT requirements for the staff relocations	• Take part in project stream reporting and coordination activities, such as Project Working Group meetings and monthly progress reporting
• Procure, manage and coordinate all IT/OT requirements for the new fitout construction	• Take part in the development of the baseline budget and over-arching program
• Manage IT/OT vendor deliverables, timeframes and budget	• Identify, share, monitor and escalate risk dependencies and cross-stream project delays
• Take part in project stream reporting and coordination activities, such as Project Working Group meetings and monthly progress reporting	• Monitor, track and escalate stream budget concerns
• Take part in the development of the baseline budget and over-arching program
• Identify, share, monitor and escalate risk dependencies and cross-stream project delays
• Monitor, track and escalate stream budget concerns

 

Workplace Services/Relocations Stream (WPS)	Change & Comms Stream
Review project objectives and constraints to formulate the Workplace readiness and Relocations plan	Take handover from the User Requirements stream
• Engage, manage and coordinate with relevant internal teams and vendors	• Assess User Requirements briefing documents and undertake a gap analysis of the Workplace Change
• Gain all necessary information from the business, PCG and Sponsor as required	• Develop a Change and Comms plan/strategy
• Work closely with the Change & Comms SME to support in the implementation of the new working principles and environment	• Consolidate project information and training material for the Users
• Manage the Relocation stream of works, including: block and stack endorsements, business engagement, establish Change Champions, churn and seat allocation data, relocation vendors and IT	• Conduct a storage utilisation audit to understand the storage change impact to the new workplace environment
• Update the Workplace Services systems,  procedures, facilities and documentation	• Engage and coordinate with relevant internal teams and vendors
• Take part in project stream reporting and coordination activities, such as Project Working Group meetings and monthly progress reporting	• Progress the workplace principle details in consultation with the Business, Property and Project team stakeholders
• Take part in the development of the baseline budget and over-arching program	• Gain all necessary information from the business, PCG and Sponsor as required
• Identify, share, monitor and escalate risk dependencies and cross-stream project delays	• Manage the Change stream of works, including: business engagement, establish Change Champions, educate, implement new workplace principles and support during relocations and post-move
• Monitor, track and escalate stream budget concerns	• Take part in project stream reporting and coordination activities, such as Project Working Group meetings and monthly progress reporting
	• Take part in the development of the baseline budget and over-arching program
	• Identify, share, monitor and escalate risk dependencies and cross-stream project delays
	• Monitor, track and escalate stream budget concerns

 

Project Status Reporting

What is the Success Criteria for the project and how will the project’s success be measured?

Project reporting will be prepared by the Project Director and issued to the Project Control Group on a monthly basis. The project report will be presented in a single page dashboard method. The content of the dashboard will include:

·         Project Updates from Streams: Fitout, Technology, Change Management, WPS/Relos, Commissioning, User Requirements

·         Upcoming Deliverables from the Streams

·         Health and Safety Performance

·         Program Status

·         Commercial Status

·         Top Three (3) Risk and Issues

·         Any Pending Approvals

 

Project streams will need to provide their updates on the same day of every month.

In this two-part series on Project Charter - you have been introduced to document approvals, project information, project context, project outline, stakeholders, project scope statement, milestones, budget, governance arrangements and risks.

The Project Charter document is very important and has three main aims:

1.  It is a document issued on behalf of the Project Sponsor, which formally authorizes the existence of the project and provides the Project Director with the authority to apply organizational resources to project activities.
2. It describes all information necessary to make an investment decision on the viability of the project. Typically, it will include the business need and cost-benefit analysis.  It will also consider risks to the business of undertaking the project.
3. It outlines the Sponsor or group who supports the project and is accountable for enabling success. This Sponsor or Group promotes the project’s interests and represents the project to senior management. This may be the Project Sponsor or someone within the management hierarchy.