Project Sponsor or Director
Proposal Team
Before a project can proceed, a persuasive case must be made for its viability given current organizational priorities. In developing a Project Charter, the initial Business Case (business need) for the project is made, along with a Proposed Solution (project description). A Charter for a project may come from any place in the organization, but someone must be identified as the “owner” of the Charter, and must serve as Project Sponsor, at least through the evaluation and selection process. The Project Sponsor may be in executive management, in a specific functional program area, or be a representative of the Customers.
The purpose of the CPMM Project Charter is to formally authorize the start of a new project. Specifically, the charter is intended to authorize the sponsor to assign a project manager and to apply resources for the Project Planning (High Level) to develop a CPMM Project Initiation Plan (PIP). The CPMM Project Initiation Plan will provide the parameters for the project and includes: goals, objectives, success criteria, scope, stakeholder roles, risk plan, and other management plans for the project, along with resources needed and the project budget and benefits.
The Business Case is one of the defining documents of the project, providing information necessary to support the decision to launch the project at the end of Project Initiation and to continue the project in subsequent phases. The Business Case must identify an existing business need and lay the foundation for developing a potential solution to meet that need. The Business Case should provide a description of the project that includes the key goals and objectives, what the project will deliver, and any other high level expectations of the project. It should identify whether this is part of a larger project or if it has follow-on projects, and identify the customers and anticipated consumers of the project and why they will benefit from the project.
The cost and resources of Project Planning (High Level) for implementing the solution must be estimated. Justification for the potential project should also depend on whether the project is consistent with the organization’s strategic plan or in line with the business plan.
The Charter should identify special funding sources available for the proposed initiative and specifically for the Project Planning (High Level). If the project is going to span multiple budget cycles, a multi-year strategy for project funding should be discussed.
Before presenting the Charter for evaluation, the Project Sponsor should have the Business Case reviewed by the people most intimately familiar with its imperatives – Customer Decision-Makers.
The Business Case will continue to be a critical component of the decision-making process throughout the entire project management lifecycle – from the initial decision to proceed with the project to the decisions made at periodic project reviews to continue, modify, or terminate the project. At the end of each project management process and whenever there is a significant change to the project or the business function, the Business Case is reviewed and re-validated.
List and describe any sources for project funding. Are there grants that will be applied for? Are federal funds available? Is a charge-back to the Customer planned?
A Proposed Solution starts with the summary of the business need (abstracted from the Business Case), defines the optimal solution to address that need, and describes how the solution fits into the organization’s business plan and/or strategic plan. The Proposed Solution should describe the end result of the project.
The proposed solution should include an evaluation of all alternatives considered, and a justification of the solution selected. It should also address what would happen if nothing was done.
In order to proceed to Project Planning (High Level) and the development of the Project Initiation Plan, please list any known factors (constraints) that limit the ultimate project’s execution. The most frequent constraint is the project end date. For each constraint listed, be sure to elaborate on how it limits the project and how the project would benefit from its removal. Identify any constraints that will affect the “Triple Constraints” of budget, schedule, and scope, or any other known constraints for this project, including resources. If there are no constraints, note that fact.
The budget and resources for Project Planning (High Level) is required in the Project Charter. This is the budget and resources required to develop the Project Initiation Plan.
Note: The Project Planning (High Level) budget and resources for the overall project along with ongoing costs will be developed during Project Planning (High Level) in the CPMM Project Initiation Plan (PIP) when and if the project receives authorization. However, if there are time and cost estimates for the overall project (expert judgment, availability of historical data on similar projects, Request for Information (RFI) responses, etc.), then they also should be documented in the Charter, along with the accuracy (for example, +/- 10%, +/- 50%, etc.) of the estimates.
The Charter will include a governance chart that defines the management organization that will be in place for Project Planning (High Level) to produce the CPMM Project Initiation Plan.
The completed Project Charter will be presented for the evaluation and selection process.
See Appendix: CPMM Project Charter Template |
Project Sponsor
Project Selection Committee
Purpose
Many organizations generate multiple Charters for various new initiatives on a continuing basis; however, budgetary and other constraints allow only a fraction of those efforts to occur. Choosing the right projects – those that support the organization’s mission and assist with the implementation of its strategic plan – becomes a crucial activity, starting with an objective evaluation of proposed initiatives.
The frequency of an organization’s evaluation/selection process may be dictated by many factors, including the size of the proposed projects, the vacillations of the budget cycle, and the occurrence of external mandates and internal imperatives.
The level of approvals needed may vary depending on whether the project exceeds defined thresholds. Thresholds may be based on cost, involvement of more than one functional area, project needs within or outside of standards and procedures, or other areas specific to the Performing Organization.
Once the decisions have been made, it is imperative to document them and to explain their rationale to the Project Sponsors and other Stakeholders. One of three outcomes can occur:
A decision is made to proceed with the project. In this case, a determination must be made when Project Planning (High Level) can begin. At that point a Project Manager must be assigned to the project. The funding source must be brought on board to ensure adequate funding for the project.
A decision cannot be made on the project without some additional information. In this case, the specific information required for an informed decision should be documented, and communicated to the Project Sponsor, along with some guidelines for submitting the Charter again in the next evaluation/selection cycle.
A decision is made to decline the Charter. In this case, a detailed explanation for the decision should accompany the message, outlining where the Charter came up short in the screening, evaluation, prioritization, and/or selection processes.
In all three cases, the Charter Signature page is updated and noted with the decision.