The project charter is one of the first essential steps in many different types of projects. It acts as an informal contract between the organization and the team. The charter will set a clear outlook on what the team's objective is and how their success factors will be measured. Learn more about project charters by visiting our recent post in our blog Listen to the Gemba: http://www.leanstrategiesinternational.com/listen-to-the-gemba/building-a-project-charter.

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Project Charterwww.leanstrategiesinternational.com

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Project Charter- What is it?
• The Project charter is an informal
contract between the organization
and the team.
• A project charter will define the
focus of a project, the problem,
the goal, the scope, team and
metrics linking the team's
objectives together.
• The project charter often is
revised multiple times throughout
a projects life.
Company Name Johnson Welding
Acceptable
1/1/2017 1/12/2017 9
Evaluate
Advance
Then Normalize
12/3/2016 12/12/2016 6
12/13/2016 12/30/2016 14
10/17/2016 11/1/2016 12
11/2/2016 12/2/2016 23
Total Resource Needs 2
Review
Total number days
Total Investment Needs $ 9,943.21 $ 12,328.00
Total Length Of Project (Days) 64
Schedule (Milestones)
Phase of Initiative Start Date Estimated Complete
Tear Down
resources resources resources
Estimated Actual
Project Scope (boundaries of project)
Out of Scope
Team Members
Sponsor
Coach or advisor
Team member Team member
Problem Statement (what, where, how big, when)
Our (category of problem) at the (where is the problem?) have not
been meeting (What is the problem?). As a result of this (connect
a metric with the magnitude of the problem e.g. %) It is crucial
that we (correct or improve) this because (why it is important).
Goal Statement (what do you hope to accomplish?) Team member
resources
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Project Title Green Belt Champions
Business Case (historical reasoning for project)
Measurements
Baseline
(current state)
Future
(what you think)
Actual
(after the project)
As an (appropriate level i.e. organization, department, group) our
(area of problem) performance for the (name department or area)
area is not meeting (objective, goal, target or measure). This is
causing (type of problem) that are costing $(list estimated
amount) per (time frame).

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What is included in a Charter?
• Basic identifiers
• Business Case (historical reasoning)
• Problem Statement
• Goal Statement
• Scope (boundaries)
• Measurements
• Team Roles
• Milestones (schedule)

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Where does the Charter come from?
• Developed by leadership and passed on to a
team.
• Developed by a team and presented to
leadership.
• A need or opportunity.
• Consensus and buy in is critical either way.

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What are the advantages of using a
Project Charter?
• Clarify objectives and eliminate confusion.
• Set appropriate project boundaries a head of
time.
• Establish clear measures for tracking.
• Confirm support from others.
• Provide insight for resource needs.

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Company Name
Lean Strategies
International LLC
Acceptable
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Project Title Accounting Cycle Time Reduction
Business Case (historical reasoning for project)
Measurements
Baseline
(current state)
Future
(what you think)
Actual
(after the project)
As an (appropriate level i.e. organization, department, group) our
(area of problem) performance for the (name department or area)
area is not meeting (objective, goal, target or measure). This is
causing (type of problem) that are costing $(list estimated
amount) per (time frame).
Cash to Cash Days 45 30
Project Scope (boundaries of project)
Out of Scope
Team Members
Sponsor
Coach or advisor
Team member Team member
Problem Statement (what, where, how big, when)
Our (category of problem) at the (where is the problem?) have not
been meeting (What is the problem?). As a result of this (connect
a metric with the magnitude of the problem e.g. %) It is crucial
that we (correct or improve) this because (why it is important).
Goal Statement (what do you hope to accomplish?)
The Goal is to (improve or reduce) the (problem) by
(metric, category) resulting in a (improve or reduced)
(category) of (metric)
Team member
resources resources resources resources
Estimated Actual
Total Resource Needs 2
Measure
Total number days
Total Investment Needs $ 9,943.21 $ 12,328.00
Total Length Of Project (Days) 64
Schedule (Milestones)
Phase of Initiative Start Date Estimated Complete
Define 10/17/2016 11/1/2016 12
11/2/2016 12/2/2016 23
1/1/2017 1/12/2017 9
Analyze
Improve
Control
12/3/2016 12/12/2016 6
12/13/2016 12/30/2016 14
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