Project Charter

One of the first critical steps in a project life cycle is the preparation of a Project Charter. A Project Charter is a formal document which specifies the fundamental information regarding the basis of establishment and the high level requirements of the project. It justifies the existence of the project in terms of its value to the Owners and provides the core requirements and the ultimate policy directions for subsequent activities of the project.

Project Charter is a high level document prepared after the business case has been established and approved and is owned by the top management.

The document shall be broad enough and proportionate to the project size so that there are no changes required as the project evolves. Any subsequent changes if at all required, needs approval of the original signatories of the Project Charter.

It is a the most critical document for all those involved in the project as it provides the project team with high-level scope, objectives, roles and responsibilities, schedule, resources, authority, milestones and organisational structure of the project.

Tasks: The preparation of project charter consists of the following tasks and the subtasks

Establish the Project Vision

  • Establish Goals ● Establish Objectives ● Identify Critical Success Factors ● Identify Project Scope

Establish a Project System

  • Identify Project Participants ● Identify Internal & External Customers ● Identify Stakeholders ● Identify Resources and their Roles and Responsibilities ● Identify Organisational Structure ● Finalise Control Policies & Control Authority ● Identify Facilities and Resources required ● Establish Communication System

Establish an Approach to Implementation 

  • Establish Project Budget ● Establish Financial Authority ● Prepare Implementation Plan ● Establish Major Project Milestones ● Establish Dependencies

Evaluate Risks and Suggest Mitigation Plans

  • Identify the Constraints ● Prepare List of Assumptions ● Prepare Risk Mitigation Plans

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