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It must identify the reasons for undertaking the project along with its constraints,
risks, assumptions, benefits, budget, major deliverables and milestones, out of scope
work, sponsor and stakeholders, and how the project is executed.
11.7.4.1 Why a Project Charter Why should you have a project charter? The project
charter is your target and your license for the project. The project charter is used to doc-
ument agreed upon objectives, authorize the project, and to manage scope. It provides
a reference document to make sure everyone is on the same page farther down the road
during the project. Think of it as your measuring stick that you can use to beat people
up with later. having a clear idea of the purpose of the project and the desired outcome
is an important success factor in your project.
11.7.4.2 Ownership Though the components of the charter have input from many stake-
holders, it is owned by the project sponsor. When the finance manager says you need to
add this functionality to the system and it is not in scope then—BAm! you whip out the
project charter. It is not bulletproof, but can be invaluable in preventing you from “harm-
ing” someone at your organization. And, that alone makes it worth its weight in gold.
11.7.5 What You Need to Know
here are some practical questions that will assist you in constructing a well-defined
project charter document. The answers to the questions in table 11.1 are not required
for a successful, solid charter, but will give you a great starting point.
Each of these areas within the charter is important in their own right, but a few of
the areas need further analysis and discussion. These areas are roles, scope, milestones,
risks, change control, project governance, and the communication plan.
11.7.5.1 Roles While the definition of roles is essential, understand that one person
may play multiple roles in the project. In some projects, the team may not be large
enough to have a different person for each role. The important thing to remember is that
each “function” needs to be identified as the responsibility of someone, even if they are
not called by that role.
•  Project Sponsor: Individual who acquires project funding and provides support
and tactical guidance to the project manager.
•  Project manager (Pm): Individual who manages the project to achieve project
objectives.
•  Project management team: Individuals who participate in project management
activities.
•  Project team: Individuals who perform activities and tasks defined for the proj-
ect in support of project objectives.
•  Stakeholder group: Individuals or groups who represent the vested interest of
their group on a project.
•  Project Steering group: Provides guidance and decisions regarding project
direction and changes affecting project outcomes, which includes resolution of
escalated issues, risks and conflicts. Depending on the size of the organization,
this might be the project sponsor.
•  Project Change Control Board: has decision-making authority on resolution
of major impact Project Change requests. Depending on the organization, this
might be the project steering group.
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