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Sample Project Charter: Below is a sample of a project charter for an innovation project.
The value of the project charter should not be underestimated. The project charter is critical to the project success; a project should not be started without one. If the project charter serves as a definition of how success will be measured, then without a project charter, the project and project manager will have difficulty in being successful.
A project charter provides, at a minimum, the following benefits:
- Formally recognizes and authorizes the project
- Designates the parameters within which the project manager has authority to operate
- Gives the project manager authority to spend money and commit resources
- Provides the high-level requirements for the project
- Links the project to the ongoing work of the organization
A project charter is needed because:
- It ensures the project manager understands the sponsor’s needs
- It provides key information needed to get started
- It provides a reference document to make sure everyone is on the same page throughout the project
- It empowers and protects the project manager by describing what he or she is being asked to accomplish
Project Title and Description (What is the project?)
Household Cleaning Product Variant Launch Project: Over the last few months, the quality assurance department has discovered many of our customers’ orders for our household cleaning range
have focused on one or two variants. The purpose of this household cleaning project is to investigate the reasons for these choices and offer new variants The solution will be authorized as a subsequent project. Quality Control and New Product Development teams for the household cleaning range have detailed records of their findings that can be used to speed up this project.
Project Manager Assigned and Authority Level (Who is given authority to lead the project, and can he/she determine, manage, and approve changes to budget, schedule, staffing, etc.?)
John Smith shall be the project manager for this household cleaning project and have authority to select team members and determine the final project budget.
Business Case (Why is the project being done? On what financial or other basis can we justify doing this project? Describe the project purpose and justification.)
This project is being completed in order to strengthen customer satisfaction with the existing Chocolate Brand. We expect that improved customer satisfaction will increase revenue to the company in the first year by at least $200,000 due to a increased sales of the new household cleaning variant. As a side benefit, we hope that the project will generate ideas on improving customer satisfaction with the existing household cleaning range.
Resources Pre-assigned (How many or which resources will be provided?)
Steve Smith and Jane Doe are already dedicated to the project because of their expertise in new product development. Other resources will be determined by the project manager.
Stakeholders (Who will affect or be affected by the project (influence the project), as known to date?)
Stakeholders include Joe Craft representing Quality Control, Pat Ayde in Customer Service, and Chris Runyon in Marketing. These resources are available to assist the project as needed by the project manager.
Stakeholder Requirements As Known (Requirements related to both project and product scope)
A document will be developed to detail specifications for the existing product line, the requirements that the existing household cleaning line was designed to meet. It is expected that this project will not change how the household cleaning line affects the existing requirements.
Product Description/Deliverables (What specific product deliverables are wanted, and what will be the end result of the project?)
- A work breakdown structure, due within two weeks that outlines the plan for accomplishing the project, followed one week later by a list of risks in completing the project.
- A report that outlines what can be changed, how much each change will cost, and the expected decrease in the time it takes to place an order resulting from each change. Few words are necessary in the report, but it must be created electronically and be agreed to by the representatives for R&D, Quality Control, Customer Service, and Marketing, in addition to the project team.
- A list of the interactions with our customers for feedback on the new household cleaning product.
Measurable Project Objectives (How does the project tie into the organization’s strategic goals? What project objectives support those goals? The objectives need to be measurable and will depend on the defined priority of the project constraints.)
The objective of this project is to improve customer loyalty by engaging them with new product variants of the Chocolate Product. Customer loyalty and satisfaction are the top priorities on this project, closely followed by schedule and then cost.
- Summary milestone schedule:Due no later than September 1, 20XX.
- Summary budget: $50,000.
Project Approval Requirements (What items need to be approved for the project, and who will have sign-off? What designates success?)
Approvals for this project include:
- The sponsor will approve the household cleaning product project before planning efforts continue.
- The sponsor will approve the list of risks before planning efforts continue.
- Final project approval will be determined by the sponsor.
High-Level Project Risks (Potential threats and opportunities for the project)
- Because this household cleaning product project analyzes customer satisfaction, the project may help generate ideas to improve customer satisfaction, resulting in higher levels of customer loyalty to the entire product range.
- Because we have limited experience in new household cleaning product variant development, implementing an inadequate solution could cause some erosion of customer loyalty, resulting in additional lost business.
- Because this erosion of loyalty could greatly impact our future revenue, project delay could result in lost customers, jeopardizing the likelihood of meeting this year’s sales goals.
- Because assessment of this household cleaning product project is difficult, changes to the impact measurement process could affect the requirements the new household cleaning product project was designed to meet, resulting in impacts to other business functions.
Project Sponsor Authorizing This Project:
| _________________________________ | ________________________ |
| David Smyth, Executive Vice President | Carrie Wynn-Jones, Vice President |