The project charter can be defined as a true reflection of what leadership believes about the project’s characteristics. It contains the usual suspects, such as schedule milestones, project description, budget, and requirements, the charter also provides the objectives of the project, it is performance metrics which are also known as expected outcomes, decision-making roles, and deliverables expected.
The purpose is not just project requirements and deliverables, but a wider array of dimensions necessary for the complete organization to become better, safer, and more mature. The ultimate owner of the deliverables of the project can frame the project for the short-term outcome and upon completion of project activity but has the responsibility for considerable organization shifts, such as increasing sales metrics, human capability improvements, process enhancements, and long-term investment in assets and human capital. The leadership role is to assure the charter that contains more than just the basics of the project, but also awareness about the context of the long-term sustainability of the company.
How Does Process Work
The development of a complete project charter is the first step of a project and this may be completed even before formal approval of the project. It is important for the charter to get revised when the project has a significant direct or there is a scope for changes as if that it is current. Always keep the project charter up-to-date. It is important ss charter reflects the human side of leadership, not just the technical activities. The development of the charter should be done before the project plan is fully developed, and the format of the charter should be in such a way that it can easily be updated.
Everyone who has been involved with a project has not been successful in one or multiple areas. If there is a change in one area of schedule, scope, or even budget, then the other areas are also affected, and this is true for other areas that must be identified in the charter. One can imagine the risk of late selection of a piece of equipment that in turn can hold up finalizing design, which then cascades to late installation and rise the project cost, and the stakeholders involved will begin raising concerns and downstreaming the contractor’s submitted claims. The original charter created had a time range for the delivery of the equipment. These timeframes were met, but the contractor’s schedule has differed from the original plan. As the charter was not kept up to date, a huge misalignment among the various project occurred as well as their requirements and measurement processes. Hence the charter must always be kept on updating or must be followed regularly.
Management reserve is held in the project budget, but outside the cost baseline and is used for unknowns that may arise in scope as the project progress. There is an expectation that all or some of the reserve will be returned to the company when the project is marked as complete. This is a controlled distribution with beyond project leadership involved with decision-making in use.