Project Charter

Project Name:

Project Management Improvement Project

Example

Disclaimer
This example is based on a real project. However, this version is changed
to present full examples of Project Charter components as described in
the DoIT Project Management Framework. This example charter is not a
true representation of the Project Charter for the Project Management
Improvement project.

Prepared By: Name1 - Project Manager

Position:
Project manager
Date:
March 2007
Version No: v2.0

Project Charter Approval Signatures

Project Name: Project Management Improvement Project
Project Manager
_______________________________________

__________________

(Signature)
Name1 - Project Manager
Project Manager
Division of Information Technology System Engineering Operations

Project Sponsor
_______________________________________
(Signature)
Name2 - Project Sponsor
Process Improvement Manager
Division of Information Technology CIO Office

Example - Project Charter v2.2

(Date)

__________________
(Date)

Page i

Document Change Control

The following is the document control for the revisions to this document.
Version Number

Date of Issue

Author(s)

Brief Description of Change

V1.0

August 2005

Approved Version

V1.2.1

July 2006

V2.0

March 2007

Name1 - Project
Manager
Name1 - Project
Manager
Name1 - Project
Manager

Modification to clarify example

for PMA
Add sections for change, issue
and risk management

Definitions
The following are definitions of terms, abbreviations and acronyms used in this document.
Term, Abbreviation or Acronym

Definition

CBS
CIO
DoIT
Mteam
QTSI
Tech Directors

Common Business Systems

Chief Information Officer
UW-Madison Division of Information Technology
DoIT Management Team
Quality Technology Systems Integration
DoIT Technical Department Directors

Example - Project Charter v2.2

Page ii

Table of Contents
1.1

Business Need..........................................................................................................1

1.2 Project Goals...................................................................................................................1

1.3 Product Description.......................................................................................................1
1.4 Project Customer, Project Sponsor, Project Manager...........................................1
1.5 In Scope/Out of Scope...................................................................................................2
1.6 Critical Success Factors...............................................................................................2
1.7 Project Assumptions......................................................................................................2
1.8 Project Constraints.........................................................................................................3
1.9 Project Deliverables.......................................................................................................3

1.

Requirements..........................................................................................................4
2.1 Functional Requirements..............................................................................................4

2.

High-Level Milestones and Timeline, Roles and Budget.............................6

3.2 High-Level Roles.............................................................................................................6
3.2.1 Roles, Responsibilities, Skills, FTE Estimates and Sources.......................................6
3.2.2 Project Organization Chart....................................................................................................7

3.3 High-Level Budget..........................................................................................................8

3.3.1 Costs during the life of the Project.....................................................................................8
3.3.2 On-going Support Costs after Project Completion.........................................................8

4. High-Level Control Strategies................................................................................9

4.1 Communications Strategy............................................................................................9
4.2 Quality Management Strategy......................................................................................9
4.3 Issue Management Strategy for Phase 3...................................................................9
4.4 Change Management Strategy for Phase 3............................................................10
4.5 Risk Management Strategy for Phase 3..................................................................10
Risk areas................................................................................................................................10
Critical stakeholder risk tolerances and thresholds.............................................................10
Risk management objectives..................................................................................................10
Risk decision makers..............................................................................................................10
4.6 Procurement Strategy..................................................................................................10

Appendix.........................................................................................................................11

Example - Project Charter v2.2

Page iii

1.1 Business Need

The Project Management Improvement project is an initiative of process improvement efforts at
DoIT, which is sanctioned by DoIT executive management through Project Management at DoIT
A Social Contract. This project will produce tangible products and will initiate actions to
improve project management practices at DoIT. The following are some anticipated benefits of
the project management improvement initiative:

Greater customer satisfaction with the quality of DoITs products and services
Increased expertise and consistency in project management practices throughout the
organization
Better understanding on the part of stakeholders regarding a specific projects status and
how a project is being managed
Enhanced communication and participation among project stakeholders and team
members
Greater management control of DoIT budget, timeline, and staff resource allocations
Ability to measure continuous improvement of project management processes and
practices through the establishment of baseline data

1.2 Project Goals

Goal 1: Continuously improve DoITs organizational competency in all components of project
management, thereby satisfying our customers with high quality products and services
delivered on time, within budget, according to customer requirements
Goal 2: Establish and implement mechanisms for continuous improvement of project
management competencies, providing for measurable improvements in the near and long
term
Goal 3: Model exemplary behavior in project management by conducting ourselves openly,
honestly, respectfully, with integrity and civility

1.3 Product Description

Effective project management involves multiple components. This project will deliver all
components in multiple phases, thereby producing gradual improvements in staff effectiveness
and project outcomes. Some components provide technique support mechanisms; others
develop and support human and technical competencies and behaviors. The components are
briefly described in the following list:

Framework - provides a mechanism that guides users through a proper order of project
activities
Tools - support project team use of the framework and good project management
practices
Project Management Skills assure effective use of project management techniques and
behaviors
Culture - provides an environment that nurtures, promotes, and expects well-executed
projects
Thinking - encourages project visioning and problem solving
Politics - aligns project staff and customers in shared goals and efforts toward effective
results
Communication - binds all components into a foundation that supports successful
projects

Example - Project Charter v2.2

Page 1

1.4 Project Customer, Project Sponsor, Project Manager

Project Customer
Project Sponsor
Project Manager

Name

Organization

Project Managers
CIO Office
Tech Directors
Name2 - Project
Sponsor
Name1 - Project
Manager

UW-Madison - Division of Information Technology

UW-Madison - Division of Information Technology
UW-Madison - Division of Information Technology
UW-Madison - Division of Information Technology
-Division Office
UW-Madison - Division of Information Technology Division Office

1.5 In Scope/Out of Scope

In Scope
Developing and continuously refining a rollout strategy for project management

improvements
Coordinating phased development and implementation of a project management
framework and supporting tools
Coordinating efforts to improve project management competencies and behaviors at
DoIT
Measuring usage and improvements in DoITs project management practices

Out of Scope

Measuring usage and improvements in DoITs project management practices

1.6 Critical Success Factors

Project management gaps closed at DoIT per project management measurement

Quick and early prioritized success
Leverage prior work of QTSI and other efforts
Success of on-going communications
Successful delivery of training
Successful peer feedback
Successful customer evaluation and feedback
Firm foundation for continuous improvement

1.7 Project Assumptions

Note: These are the project assumptions for this particular project, which do not necessarily
apply to other projects. We assume all projects will follow good project management practices,
but the specific project assumptions noted for each project should be specific to the project and
should not replicate the assumptions stated below.
The goals of this project support the vision, mission, and goals of DoIT, helping faculty,
staff and students realize their visions through the use of information technology.
The project helps DoIT achieve its goal of outstanding customer service.
DoIT management actively supports improvements in each of the seven component
areas: framework, tools, project management skills, thinking, culture, politics, and
communication.
DoIT management and staff comply with specifications for all project management
responsibilities as stated in the Project Management at DoIT A Social Contract
document.
The timeline is reasonable and doable. The phased rollout supports early success and
continued improvement. The project includes a lengthy implementation as components
Example - Project Charter v2.2

Page 2

are developed and implemented, followed by sustained competency and improvements

in the seven component areas.
DoIT management assigns key project roles and adequate budget for the development
and implementation of this project.
Effective, adequate, and appropriate levels of communication occur between DoIT
management, the sponsor, and the project team during all phases of the project.
The framework deliverable avoids excessive detail to ensure common understanding,
flexibility, and adoption.
The deliverables of the project are implemented DoIT-wide, supporting many diverse
functional groups, projects, and customers.

1.8 Project Constraints

Note: These are the project constraints for this particular project, which do not necessarily apply
to other projects. We assume all projects will follow good project management practices, but the
specific project constraints noted for each project should be specific to the project and should not
replicate the constraints stated below.

Show definite project management improvement in six months

Deliver results within the project management capability level of the organization
Use peer reviews to ensure successful roll-out

1.9 Project Deliverables

Deliverable

Phase 1
Approved Project Charter
Approved Project Plan
Project Management Framework v1.0
Project Management Framework Delivery Tool v1.0
Pilot Project using the Project Management
Framework v1.0
Phase II
Approved Project Charter
Approved Project Plan
Pilot Project using the Project Management
Framework v1.0
Project Management Framework v1.1
Project Management Framework Delivery Tool v1.1
Project Management Quality Management
Phase III and Thereafter
Measures of Project Management Effectiveness

Example - Project Charter v2.2

Description

Describes purpose, boundaries, deliverables and

high-level timelines, cost and roles
Includes baseline project schedules, budget, staffing
and control plans for communication, change , issue,
risk, quality and procurement management
Describes the main stages and activities of project
management. To be used as a guide.
Web based performance management system to
present framework to end users
Apply Framework to a real project and assess
feedback for improvement
See above
See above
Apply Framework to a real project and assess
feedback for improvement
Revised Framework based on proposed
improvements from measuring and assessing pilot
project use
Revised Web based performance management
system based on proposed improvements from
measuring and assessing pilot project use
Establish the measurements to be used to assess
improvement of project management at DoIT
To continuously improve project management
practices

Page 3

1. Requirements
2.1 Functional Requirements
Note: These are the project requirements for this particular project, which do not necessarily
apply to other projects. We assume all projects will follow good project management practices,
but the specific project requirements noted for each project should be specific to the project and
should not replicate the requirements stated below.
The following are the high-level Project Management Improvement functional requirements.
Requirements that are in scope and out of scope of this project are noted. Detailed requirements
can be found in the appendix.
Requirement

Framework
1. Define project management processes

2.

Manage Scope
Manage Requirements
Manage Budget
Manage Risk
Manage Communication
Manage Roles
Manage Project Schedule
Standardize Development Methodologies
Manage Project Change
Manage Quality
Manage Implementation
Improve Project Management tools
Improve strategic DoIT processes

3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Tools
1. Provide consistent tools and templates
2. Enable collaborative communications and knowledge management
tools
3. Provide a division-wide project management system
4. Define a common DoIT vision and purpose for CBS data
Project Management Skills
1. Ensure informed sponsorship, empowered project management and
supportive line management
2. Define roles in the project, including those roles customer personnel
will play
3. Ensure that project managers are well trained and follow certain
minimum standard practices
4. Put the right teams together
5. Give the project team, consisting of DoIT and customer staff, the
freedom to succeed
6. Develop an Office of Project Management to help achieve
consistency
7. Make project managers responsible and accountable for following
standard processes
Communications
1. Recognize that communication is central to Project Management
success
2. Build personal relationships across organizational lines
3. Ensure everyone involved has a clear vision of the project's aims and
scope
Culture
1. Minimize adverse impact of transformative learning or change

Example - Project Charter v2.2

In Scope

Out of
Scope

x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x

Page 4

Requirement

2. Create a culture that values project management

3. Institutionalize practices
Thinking
1. Develop project management thinking skills
2. Bridge potential gaps in understanding between DoIT and the
customer
3. Assess interdependencies between projects, especially scope
changes
4. Align staff with goals and communicate the overall objective so that
people understand where they fit
Politics
1. Understand and manage the politics of the project
2. Pursue targeted, strategic project selection
3. Pay close attention to good customer relations at all levels of DoIT

Example - Project Charter v2.2

In Scope

Out of
Scope

x
x
x
x
x
x
x
x
x

Page 5

2. High-Level Milestones and Timeline, Roles and

Budget
3.1 High-Level Milestone and Timeline
The following are the projects high-level milestones and the target dates for their completion.
High-level milestones are the key how are we doing thresholds of the project against which
project progress can be measured.
Key Milestone

Target Date

1. Phase 1 - December 1, 2005

1.1 Approved Project Charter and Project Plan
1.2 Develop strategy and Project Management Framework context
1.3 Develop Project Management Framework component content
1.4 Develop web-based Framework Delivery Tool
1.5 Present Project Management Framework deliverables to review team
1.6 Receive review team feedback
1.7 Refine Project Management Framework deliverables
1.8 Present Project Management Framework deliverables to DoIT management
1.9 Use Framework deliverables in a Pilot Project
2. Phase 2 - July 1, 2006
2.1 Assess phase 1 deliverables
2.2 Produce phase 2 deliverables

July 1, 2005
July 15, 2005
Sept 1, 2005
Sept 1, 2005
Sept 15, 2005
Sept 22, 2005
Oct 1, 2005
Oct 1, 2005
Dec 1, 2005
Jan 1, 2006
July 1, 2006

COMMENTS: Phase 2 milestones will be further defined at the beginning of phase 2.

3.2 High-Level Roles

The high-level role information describes the roles needed for the project, the responsibility on the
project for each role, the skills required, the Full Time Equivalent (FTE) of the role needed and the
recommended source for acquiring the actual staff to fulfill the role.

3.2.1 Roles, Responsibilities, Skills, FTE Estimates and Sources

Role

Key Stakeholders
Project Sponsor
DoIT CIO Office
DoIT Management
Project Team
Project Manager
Core Team
Review Team
Team Advisors
Tool Designer

Project Responsibility

Empower team, resolve

issues
Promote project
management, help solve
conflicts
Empower project
managers, enforce
standard practices
Implement project plan
tasks
Lead team, report status
Create deliverables,
assure quality
Evaluate deliverables,
promote use
Provide management
guidance and expertise
Design performance
management process

Example - Project Charter v2.2

Skills

FTE
FY05-06

Recommended Source

n/a

DoIT Division Office

DoIT

n/a
DoIT
n/a

Project Mgmt
Project mgmt
,research and
web writing skills
Proj Mgmt

Web design, web

writing skills

1.00
1.20

DoIT Division Office

Various DoIT departments

8.50
.50

Project Managers from various

DoIT technical departments
Various DoIT departments

.05

DoIT - Academic Technologies

Page 6

Role

Project Responsibility

delivery tool
Build performance
management process
delivery tool

Tool Developer

Skills

Web
development

Total

FTE
FY05-06

Recommended Source

.10

DoIT - Academic Technologies

11.35

Assumes the review team includes project managers from each of DoITs technical departments.

3.2.2 Project Organization Chart

The project organization chart is a graphical picture of the organization and reporting
DoIT Management
relationships of the project.
DoIT
CIO Office

Round
Table

Operations
Directors
Project Sponsor
Name2 - Project
Sponsor
Tech
Directors

Project Manager
Name1 - Project
Manager

MTeam

DoIT Departments: Project Team

System
Engineering
and
Operations

Application
Development
and
Integration

Academic
Technology
Solutions

Example - Project Charter v2.2

Enterprise
Internet
Services

Network
Services

User
Services

Page 7

3.3 High-Level Budget

The high-level budget summarizes labor, material and other costs during the life of the project
and, as appropriate, on-going support costs after project completion. The high-level budget is at a
summary level. The detail estimates supporting each cost type are maintained by the project
manager.

3.3.1 Costs during the life of the Project

Cost Type

FY05-06

Phase I
Labor
Material
Other

Total

$95,535
$2000
$1,000
$98,535

$95,535
$2000
$1,000
$98,535

$100,000
$100,000

$100,000
$100,000

$96, 535

$96, 535

Sub Total
Phase II
Labor
Su
b Total
Total Budget

Comment:
The Other cost type includes potential attendance at project management and process
improvement industry conferences.
3.3.2 On-going Support Costs after Project Completion
Not applicable.

Example - Project Charter v2.2

Page 8

4. High-Level Control Strategies

4.1 Communications Strategy
Effective and open communications is critical to the success of the project.
The key communication objectives for the project are:

Promote and gain support for the Project Management Improvement Project
Encourage use of project management best practices
Give accurate and timely information about the project
Ensure a consistent message

The key message is that the project management effectiveness is the result of using best project
management practices. Best project management practices positively influence the product or
service the project delivers.
The key audiences of the communication are the DoIT CIO Office, DoIT management groups,
DoITs project managers and the project team members actively working to create the project
deliverables.

4.2 Quality Management Strategy

The main quality management objective is to deliver project management products that meet the
needs of the ultimate end-user the project manager.
The key deliverables that need to meet quality standards are:

The Project Management Framework

The Web-based Performance Management tool
The Project Charter

The key project processes subject to project quality standards are:

The peer review. Project managers will review the Project Management Framework and
the web-based performance management tool for design, content and usability.
The change management process used to manage change on the project.

The main quality standards to be used on this project are:

The Project Management Framework

Web usability standards and Information Mapping guidelines for the web development.

4.3 Issue Management Strategy for Phase 3

The purpose of issue management is to minimize the impact of unplanned for events during
project execution and control, and to ensure that issues that cannot be resolved by the project
team are escalated appropriately.
The issue management goals for this project include:
Informal monitoring for the identification of issues
Informal documentation of low and medium impact issues
Formal documentation of high impact issues to be defined in the project issue management
plan
Example Project Charter v2.2

Page 9

The project manager, in consultation with the project sponsors, has primary responsibility for
deciding how to identify, prioritize, assign, and escalate issues. The project manager will consult
with the project team regarding any significant issues and will seek the advice of the project
sponsors if any issues become a serious threat to project success.

4.4 Change Management Strategy for Phase 3

The main change management objective is to define at a high level the factors to be used to
control changes that occur after the project baseline has been established. Anticipated change
management challenges are minimal during Phase 3 of this project because the requirements are
well-defined and there is a proven track-record from earlier phases of the project.
The key project constraint is the budget allocation. Any adjustments to scope or quality will be
managed to a fixed budget amount. Key customer practices for managing change are the
practices found in DoITs Project Management Advisor (PMA). Change management practices
for this project will follow the PMA, but will be constrained to very limited documentation and
administrative processes because so few changes are anticipated.

4.5 Risk Management Strategy for Phase 3

Risk areas
The most significant areas of risk for the Project Management Improvement project are potential
challenges to the continued support of DoITs senior management and availability of sufficient
staff resources to complete the work. Of lesser significance is the possibility that development of
the project management framework will get bogged down by the project team trying to perfect the
outcomes, resulting in a sacrifice of a broad, workable approach that can be used soon.
Critical stakeholder risk tolerances and thresholds
DoIT senior management, the project sponsors and the project manager have expressed a high
tolerance for the stated risk areas. All agree that steady progress toward the improvement of
project management practices at DoIT is important and any delays that might be caused by
challenges to staffing the project or perfectionism of the project team are offset by a continued
interest to make gradual improvements and a clear objective for the project to be managed
toward that end.
Risk management objectives
The risk management objectives for this project include:
Informal monitoring for the realization of noted risks
Notification of key stakeholders if any realized risks will cause delays
Steady management of stakeholder expectations to keep the project on track
Risk decision makers
The project manager, in consultation with the project sponsors, has primary responsibility for
deciding how to control risks. The project manager will consult with the project team regarding
any factors that may contribute to risks being realized, and will seek the advice of DoIT managers
if any factors become a serious threat to project success.

4.6 Procurement Strategy

This project does not require any procurement.

Example Project Charter v2.2

Page 10

Appendix
Detailed Project Requirements here

Example Project Charter v2.2

Page 11