Module 2 Session 2.2 Visual 1

Module 2

Structuring the Project Organization

Session 2.1 Alternative Organizational Structures

Lecture 2.2.1 The Project Charter

Module 2 Session 2.2 Visual 2

Instructional Objectives

Given a Project Analysis Report (PAR) and other information, learners will be able to:

1. Describe the characteristics of the project charter

2. Distinguish between weak and strong project charters

3. Given a PAR or vignette characterize the organizational structure and project management role stated or implied in the document

4. Prepare a project charter that describes the project’s organizational structure and the roles and responsibilities of the project manager, project management core team, and functional departments (in a matrix environment)

Module 2 Session 2.2 Visual 3

A project charter is a document that

formally defines the authority and

responsibility relationships on a project.

Module 2 Session 2.2 Visual 4

Typical Elements in a Project Charter

Authority:The project manager has the delegated authority from top management to direct all project activities.

Responsibility:The project manager’s responsibilities are to the chief executive for overall project direction according to established business objectives and contractual requirements regarding technical specifications, schedules, and budgets.

More Specifically, the Project Manager Is Responsible for:

I) Establishing the project organization

II) Establishing and maintaining the project plan

III)Managing and controlling the project, and

IV) Communicating the project status

V) Escalating decisions or unresolved problems in a timely manner

Module 2 Session 2.2 Visual 5

The Project Charter Should AddressI) Establishing the project organization

1. The project manager's position directing all project activities

2. The need for a defined authority-responsibility relationship among

The project manager,

Functional managers,

Task managers, and

Top management

3. The need for influence to cut across functional and organizational lines

4. Collaborating (with the personnel office and the functional supervisors) in staffing the project

5. Establishing a project organization (a matrix organization) for the duration of the project

6. Having a voice in maintaining the integrity of the project team during the complete life of the project

7. Participation in the merit evaluation of key project personnel assigned to the project

8. The need to state clearly who the project sponsor is and what access the project manager has to him/her/them

Module 2 Session 2.2 Visual 6

The Project Charter Should Address (continued)

II) Establishing and maintaining the project plan

9. Establishing project plans through the coordinated efforts of the organizations involved in the project

10. Providing leadership in the preparation of operational requirements, specifications, and bid packages and change control

11. Active participation in major management and technical decisions

12. Allocating and controlling the use of funds on the project

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III) Managing and controlling the project

13. Control over the allocation and expenditure of funds, and active participation in major budgeting and scheduling deliberations

14. Selection of subcontractors to support the project and the negotiation of contracts

15. Rights in resolving conflicts that jeopardize the project goals

16 Promoting technological and managerial improvements throughout the life of the project

17. Managing the cost, schedule, and technical performance parameters of the project

IV) Communicating project status

18. Providing an information system for the project with sufficient data for the control of the project within allowable cost, schedule and technical parameters

19. Maintaining prime customer liaison and contact on project matters

20. Reporting on project progress

V) Escalating decisions or unresolved problems in a timely manner

The Project Charter Should Address

Module 2 Session 2.2 Visual 8

The Project Manager’s Charter

“ Unless the project manager’s charter is delineated very

clearly, not only to him but to others in the organization, he

is neither fish nor fowl. He is not master of his destiny. The

charter is the environment that is created for the project

manager. It is 50% of the battle of whether he is successful

or not. It says, does he have management’s support to run

his project as he sees fit, or does someone else.”

David WilemonSyracuse University

Module 2 Session 2.2 Visual 9

Evaluating Your Charter

Are Your Authority and Responsibility Commensurate?

Do You Control the Budget?

Do You Have Enough Control Over Resources to Get the Job Done?

Will You Be Able to Make Things Happen?

Will Your Influence Be Able to Make up for Your Lack of Authority (Power)?

Do you have the authority (ability) to escalate pending decisions or unresolved problems to the organizational level needed to keep the project on schedule?

Module 2 Session 2.2 Visual 10

Selling Management on the Need for a Stronger Charter

Define the Problem (Lack of Authority)

Define Exactly What You Want

Think Through What Problems Those Changes Might

Cause Management With the Functional Departments

Analyze the Pros and Cons From Management’s

Viewpoint

Present a Strong Proposal

Module 2 Session 2.2 Visual 11

Project Manager

Organizational Design

Planning and Reporting System

Three Parameters

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Key Variables Existing organizational structure Formal integration procedures

Internal External

Management systems Personnel available for roles Degree of predetermined structure inherent in

the project Pattern of demand on staff time Geography Management style

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Organization

Organization chart Reporting relationships Project Sponsor Position descriptions Charter Project team Functional departments

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Project Manager

Organizational Design

Planning and Reporting System

Three Parameters

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Organizational Design Is Not as Important As:

Leadership Objectives Personnel Organizational climate Management systems