When developing the project charter, who does the project manager typically work with?

Q: Who is responsible for issuing the project charter?

According to PMI®s PMBOK Guide (5th edition), a project charter is a document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities”.

From the course: Project Management Foundations (2019)

Inhaltsverzeichnis Show

Create a project charter
Document #3: Typical Elements in a Project Charter
Responsibility
A) Establishing the project organization
B) Establishing and maintaining the project plan
C) Managing and controlling the project
D) Communicating project status
When developing the project charter Who does the project manager work with?
Does the project manager create the charter?
Who is responsible for issuing the project charter?

Create a project charter

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- [Narrator] Is the project definition done? Check. Is the scope statement ready? Check. Now you're ready to get approval to move into planning your project. You also put together a project charter that officially authorizes the project and publicizes it to the world. The whole point of defining a project is to give the project customer or management team the info they need to approve the project. The review process varies from organization to organization. Typically the customer compares the project information to acceptance criteria that align with the organization's goals. There are three possible outcomes from this review. The project is approved to proceed to planning, it's denied, or it's sent back for rework. When the project is approved the final step in initiation is to create and distribute a project charter. This document authorizes and publicizes the project. Here's what typically goes into a project charter, the name of the project, the purpose of the project, a short summary of it's goal and objectives will do, a high-level project description, which may include things like high-level success criteria, requirements, scope, risks, assumptions, and constraints, a milestone schedule, cost estimate, and list of stakeholders. Remember, you'll flesh out all of these components once you start planning your project. You also include information about the project manager, the projects manager's name, the project manager's responsibilities, including a brief description of the work the project manager does. The extent of the project manager's authority, and the specific work the project manager has authority to perform, such as requesting resources or signing contracts. Finally, the charter includes a formal declaration of the sponsor's support for the project. Think of this declaration as a power of attorney given to the project manger by the sponsor or customer. You might wonder why a project charter describes the project manager's authority. It's because project managers don't have the kind of authority that managers in a structured organization do. Project managers authority lasts as long as the projects they manage, and applies only to those projects. For that reason it's important that people understand what a project manger is authorized to do. When the project charter is ready to go the project sponsor distributes it to everyone affected by, or involved in the project. Once the project has been authorized and your authority as project manager is common knowledge, you're ready to begin planning the project.

Introduction | Document #1: On-the-Job Tasks for the Project Manager
Modules 1-3 | Modules 4-6 | Module 7 | Modules 8-9 | Modules 10-12
Document #2: The Project Manager's Duties | Document #3: Typical Elements in a Project Charter

Document #3: Typical Elements in a Project Charter

The Project Charter is an essential document necessary for successfully managing a project. Professor David Wilemon of Syracuse University has spelled out the vital nature of a Project Charter:

"Unless the project manager's charter is delineated very clearly, not only to him but to others in the organization, he is neither fish nor fowl. He is not master of his destiny. The charter is the environment that is created for the project manager. It is 50% of the battle of whether he is successful or not."

The issue is, does the Project Charter makes it clear whether or not the project manager has management's support to run his or her project as they see fit - or does someone else!

Authority

The project manager shall have the delegated authority from top management to direct all project activities.

Responsibility

The project manager's responsibilities are to the chief executive, senior manager, or sponsoring director, for overall project direction according to established business objectives and contractual requirements regarding technical specifications, schedules, and budgets. More Specifically, the Project Manager Is Responsible for:

Establishing the project organization
Establishing and maintaining the project plan
Managing and controlling the project
Communicating the project status, and
Escalating decisions or unresolved problems in a timely manner

The Project Charter should address a number of key areas as shown below.

A) Establishing the project organization

The project manager's position directing all project activities
The need for a defined authority responsibility relationship among The project manager, Functional managers, Task managers, and Top management
The need for influence to cut across functional and organizational lines
Collaborating (with the personnel office and the functional supervisors) in staffing the project
Establishing a project organization (a matrix organization) for the duration of the project
Having a voice in maintaining the integrity of the project team during the complete life of the project
Participation in the merit evaluation of key project personnel assigned to the project
The need to state clearly who the project sponsor is and what access the project manager has to him/her/them

B) Establishing and maintaining the project plan

Establishing project plans through the coordinated efforts of the organizations involved in the project
Providing leadership in the preparation of operational requirements, specifications, and bid packages and change control
Active participation in major management and technical decisions
Allocating and controlling the use of funds on the project

C) Managing and controlling the project

Control over the allocation and expenditure of funds, and active participation in major budgeting and scheduling deliberations
Selection of subcontractors to support the project and the negotiation of contracts
Rights in resolving conflicts that jeopardize the project goals
Promoting technological and managerial improvements throughout the life of the project
Managing the cost, schedule, and technical performance parameters of the project

D) Communicating project status

Providing an information system for the project with sufficient data for the control of the project within allowable cost, schedule and technical parameters
Maintaining prime customer liaison and contact on project matters
Reporting on project progress

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When developing the project charter Who does the project manager work with?

In most cases, the project charter is written by the project manager. However, there is one more key player in preparing this document- the sponsor. The sponsor is the main initiator and supporter of the project. This is usually a high role executive that sees real value and purpose for the project to go through.

Does the project manager create the charter?

The project manager does not need to write the charter, but the project manager has a role in the process. The project manager needs to demand an adequate charter, and be prepared to create one for the sponsor, if the sponsor does not provide it on his or her own.

Who is responsible for issuing the project charter?

According to PMI®'s PMBOK Guide (5th edition), a project charter is a “document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities”.