Clear charter clarification between customer and project management is the foundation for the future success of the project. Depending on organisational form, the project charter has a contractual nature and is the predecessor to the specifications. All significant parameters of the project must be clarified therein.
Primarily, these include:
• Project objective (as per the SMART criteria)
• Rough cost framework
• Resources available
• Milestone plan
• Project team, bodies and committees
• Further conditions
• Initial estimation of environment, opportunities and risks
• Responsibilities of project management
The project charter should not be dictated unilaterally by the customer but should arise in a process of negotiation between project management and customer.
Project objective
The project objective should always fulfil the SMART criteria. In addition to a so-called positive description (i.e. what is to be achieved) a negative delineation is also helpful (i.e. what does not need to be achieved). In addition, a definition should also be made of what remains to be clarified in the further course of the process and by whom, as well as what services or performance others are to provide.
Rough cost framework
Understandably, customers are reluctant to buy a pig in a poke, project managers are unwilling to specify a cost framework before completion of the planning phase. Although this contradiction will never be wholly eliminated, it is nonetheless important to achieve agreement regarding the rough cost framework at this early stage. It is important that it is still possible to adjust this in the event of justified deviations (i.e. new information, altered framework conditions etc.).
Resources available
Similarly to the case with costs, it is difficult to specify details at this early stage. However, it should nonetheless be agreed what resources will be required approximately and how they are to be accessed by the project team.
Milestone plan
The first milestone plan specifies the significant milestones for the customer. It is imperative that these are achieved by the project. In the further course of the planning further milestones frequently arise, with these of more significance to the project team and its work and of less interest to the customer.
Project team, bodies and committees
Following the specification of costs, schedule and resources, an initial statement should also be made with regard to the staffing of the project. At the minimum, a core team should be defined (including the time budget available). In addition, the committees relevant to the project team should also be designated, typically the steering group and (where necessary) the co-ordination group.
Further conditions
Conditions beyond these, such as statutory regulations or standards (where it is possible to state these at this stage, otherwise they must be included at the latest in the specifications).
Initial estimation of environment, opportunities and risks
An initial estimation of the environment and an estimation of opportunities and risks at this early stage sensitises customer and project management equally against potential challenges, with the consequence that they may also be tackled to a certain extent.
Responsibilities of project management
The responsibilities of project management need not necessarily be regulated in the project charter. Alternatively, this may also occur in a separate project manager agreement. Nevertheless, certain key points need to be indicated here. These include the decision making authority for technical and financial matters and, above all, the question of whether the project management has technical managerial authority over the project team or also disciplinary managerial authority in addition.