The project charter is the written acknowledgment that the project exists. It gives the project manager authority and resources to start project.

1. Creating the Project
Charter
By Badre Edine Mokhlisse
Senior Software Engineer At Digimind
mokhlisse_badre@yahoo.fr

2. Table of contents
● How projects are initiated
○ Needs and Demands
○ Feasibility Studies
○ Project Selection methods
● Project Charter Definition
● Develop Project Charter Inputs
● Develop Project Charter Tools

3. Develop Project
Charter

4. Needs and
Demands
Projects come about as a result of one of
seven needs or demands:
● Market demand
● Strategic opportunity/business
need
● Customer request
● Technological advance
● Legal requirement
● Ecological impacts
● Social need

5. Feasibility
Studies
A feasibility study evaluates the project’s
potential for success:
1. Technical Feasibility:
a. determine whether the technical
resources meet capacity
b. technical team is capable of
converting the ideas into working
systems
2. Economic Feasibility: involves cost/
benefits analysis of the project
3. Legal Feasibility: investigates whether
any aspect of the proposed project
conflicts with legal requirements
4. Operational Feasibility
5. Scheduling Feasibility: how much
time the project will take to complete

6. Project
Selection
Methods
There are various methods which help
choose a project from a selection of
projects:
1. Benefit Measurement Methods
○ Benefit/Cost Ratio
○ Economic Value Added (EVA)
○ Scoring Model
○ Payback Period
○ Net Present Value (NPV)
○ Internal Rate of Return (IRR)
○ Opportunity Cost
2. Constrained Optimization Method
○ Linear Programming
○ Non-linear Programming
○ Integer Programming
○ Dynamic Programming

7. Project Charter ?
A project charter is a high level document,
which is created initially, as the project is
mooted, to highlight the key need of the
project – the objective, purpose of the
project and its high level deliverables:
● Project Need / Opportunity / Justification for
the Project
● Cost Benefit Analysis
● Project Objectives
● Key Stakeholders
● High Level Risks
● High Level Constraints / Boundaries
● High Level Assumptions
● Summary Budget
● Timeline, Key Milestones
● Success Criteria
● Project Manager and their Authority

8. Inputs to
Developing a
Project Charter
1. Statement of Work
○ describes the product, service, or
result the project was undertaken
to complete
○ It could be high level, or in detail
○ if internal project: document is
written by either the project
sponsor or the initiator of the
project
○ if external project: buyer writes the
SOW
2. Business Case
3. Agreements or Contracts
4. Enterprise Environmental Factors
5. Organizational Process Assets

9. 1. Statement of Work
2. Business Case
3. Agreements or Contracts
4. Enterprise Environmental
Factors
5. Organizational Process
Assets
● Scope of Work
● Period of Performance
● Place of Performance
● Work Requirements:
○ Kickoff
○ Design Phase
○ Build Phase
○ Implementation Phase
○ Training Phase
○ Project Handoff/Closure
● Schedule/Milestones:
○ RFP/SOW Release: January 2, 20xx
○ Vendor Selection Review: February 1-28,
20xx
○ Vendor Selection: March 1, 20xx
○ Period of Performance Begins: March 2,
20xx
○ Website Design Review: August 31, 20x
○ Website Implementation Review: November
30, 20xx
● Acceptance Criteria
● Other Requirements

10. 1. Statement of Work
2. Business Case
3. Agreements or Contracts
4. Enterprise Environmental
Factors
5. Organizational Process
Assets
● Executive Summary
○ Issue
○ Anticipated Outcomes
○ Recommendation
○ Justification
● Business Case Analysis Team
● Problem Definition
○ Problem Statement
○ Organizational Impact
○ Technology Migration
● Project Overview
○ Project Description
○ Goals and Objectives
○ Project Performance
○ Project Assumptions
○ Project Constraints
○ Major Project Milestones
● Cost Benefit Analysis
● Alternative Analysis
● Approvals

11. 1. Statement of Work
2. Business Case
3. Agreements or Contracts
4. Enterprise Environmental
Factors
5. Organizational Process
Assets
● Organizational culture,
structure, and processes
● Governmental or industry
standards
● Infrastructure
● Human resources
● Personnel administration
● Organization’s work
authorization system
● Marketplace conditions
● Stakeholder risk tolerances
● Political climate
● Organization’s established
communications channels
● Commercial databases

12. 1. Statement of Work
2. Business Case
3. Agreements or Contracts
4. Enterprise Environmental
Factors
5. Organizational Process
Assets
● Organizational culture, processes, and
infrastructure
● Product standards
● Quality standards
● Government standards
● Market standards and conditions
● Codes of conduct
● Staffing guidelines
● Reviews and training records
● Work authorization systems
● Political unrest
● Organizational communication channels
● Risk databases
● Project management information
systems (PMIS) – Automation tools like
schedule tool

13. Developing a
Project Charter
Tools
1. Expert Judgment
2. Facilitation techniques

14. Judgment is made based upon a specific set
of criteria and/or expertise that has been
acquired in a specific knowledge area, or
product area, a particular discipline, an
industry, etc:
● Member of the project team
● Multiple members of the project
team
● Team leader or team leaders
● External group or person
● Customers
● Professional and technical
organizations
● Other miscellaneous industry
groups
1. Expert Judgment
2. Facilitation techniques

15. Examples of key
techniques used by
facilitators:
● Brainstorming
● Conflict resolution
● Problem solving
● Meeting
management
1. Expert Judgment
2. Facilitation techniques

16. Brainstorming is a group creativity
technique by which efforts are made
to find a conclusion for a specific
problem by gathering a list of ideas
spontaneously contributed by its
members.
Variations:
● Nominal group technique
● Group passing technique
● Team idea mapping method
● Directed brainstorming
● Guided brainstorming
1. Brainstorming
2. Conflict resolution
3. Problem solving
4. Meeting management

17. 1. Brainstorming
2. Conflict resolution
3. Problem solving
4. Meeting management

18. 1. Brainstorming
2. Conflict resolution
3. Problem solving
4. Meeting management
Strategy Description
Confronting / Problem-solving Confronting the conflict as a
problem to be solved
Collaborating Win-win through collaboration
and meeting to resolve
issues
Compromising When you are looking for some
degree of satisfaction for both
parties
Smoothing / Accommodating Emphasize areas of agreement
Forcing Win-lose; impose the
resolution
Withdrawal / Avoiding Retreat; cool off

19. There are four basic steps in solving
a problem:
1. Problem Identification
2. Structuring the Problem
3. Looking for Possible Solutions
4. Making a Decision
5. Implementation
6. Monitoring/Seeking Feedback
1. Brainstorming
2. Conflict resolution
3. Problem solving
4. Meeting management

20. 1. Develop a meeting objective.
2. Develop the agenda.
3. Send the agenda ahead of time.
4. Tailor the meeting to your culture
5. Invite the right people.
6. Start and end the meeting on
time.
7. Introduce everyone.
8. Manage conflict during the
meeting.
9. Assign someone to take notes.
10. Document the action items with
responsible parties.
1. Brainstorming
2. Conflict resolution
3. Problem solving
4. Meeting management

21. Develop Project
Charter: Outputs
Project Charter
● Project purpose or justification
● Measurable project objectives and related
success criteria,
● High-level requirements,
● Assumptions and constraints,
● High-level project description and
boundaries,
● High-level risks,
● Summary milestone schedule,
● Summary budget,
● Stakeholder list,
● Project approval requirements,
● Assigned project manager, responsibility,
and authority level, and
● Name and authority of the sponsor or other
person(s) authorizing the project charter.

22. Resources
● PMBOK 5th edition
● Why a Feasibility Study is Important in Project Management
● Project Selection Methods
● All About Project Charter For PMP Exam
● Statement of Work
● Business Case
● Brainstorming
● Problem Solving
● Meeting management