Project Charter

A document that formally recognizes* the *existence of a project and provides direction on the project’s objectives and management. It authorizes the project manager to use organizational resources to complete the project.

This is part of the Initiation phase.

Steps in Project Charter

  1. Identifying Potential Projects

    1. Strategic Planning

    2. SWOT Analysis

  2. Project Selection

    1. Focusing on broad organization methods

    2. Categorizing IT projects

    3. Performing Financial Analysis

    4. Using a weighted score model

    5. Implementing a balanced scorecard

  3. Developing a Project Charter

1. Identifying Potential Projects

We use realistic methods to select which projects to work on. * Strategic Planning provides important information to help organizations identify and then select potential projects. * SWOT Analysis * Align IT with Business Strategy * improving business process * enable innovation and expansion * create revenue growth * lowering cost operation * image::pasted-image-20230918025318.png[]

2. Project Selection

Methods for Project Selection

There are five common techniques: . Focusing on broad organizational needs .. Need .. Funding .. Will . Categorizing IT projects .. Time …​ How long will take take to complete a project? .. Priority …​ High, Medium, or Low …​ An organization should complete a high-priority projects first. .. Project’s Impetus …​ Project …​ Opportunity …​ Directive . Performing Net Present Value or other financial analyses .. Net Present Value …​ Expected monetary gain or loss from a project .. Return On Investment (ROI) …​ Approximate measure of an investment’s profitability .. Payback Analysis …​ Amount of time to recoup the total amount invested in a project in terms of net cash inflows . Using a Weight Scoring Model (a tool that provides a systematic process for selecting projects based on many criteria) .. Identify criteria that are important to the selection process .. Assign a weight to each criterion .. Calculate weighted score for each project . Implementing a balanced scorecard (helps organizations align business activities to strategy, improve communications, and monitor performance against strategic goals) .. image::pasted-image-20230918030707.png[]

3. Developing a Project Charter

Input: * Business Case * Market Demand * Organizational need * Customer request * Technological advance * Legal requirement * Ecological impact * Social need

Output: * Project Charter * Assumption Log