A well-constructed charter statement is the foundation of a successful business project. The business charter defines the project and gives authorization. It also outlines its scope and objectives. A poorly-constructed charter or one that is not clear enough will cause conflicts and lead to failure. A business charter is a clear statement of the project’s goals and how they will be achieved.
What is a Business Charter?
The business charter also outlines the core values and goals of the company, as well as details about its operations. Executives often use the business charter as a guideline or mission statement to help them with strategic planning and assessment. Executives often refer to the business charter when describing safety policies in the workplace, mandatory recycling, and other water preservation strategies, for example, if their company’s goals revolve around putting safety and health first.
State the Value Proposition
The charter business starts by identifying the purpose of the project. The project is usually designed to solve a problem. This is the problem/opportunity description. Senior management has enough information to make a decision about whether to continue with the project or not. The effort will likely fail without a strong problem/opportunity description, which is of small charter business plans for the organization.
Complete the Early Steps
A charter statement must identify key stakeholders and describe their contributions. Naming a project manager is one of the first steps. She should also outline her responsibilities. To avoid resentment and confusion, list other people who have the power to influence the project. List the goals they will be working towards, which should match the project proposal. These goals should be precise, measurable, and easily achievable. The charter should clearly state the priorities of the project, including factors like timeframe and cost.
Determine the Project Scope
If planners don’t set boundaries early, a project can become too big for its intended purpose and unmanageable. The scope defines the activities that will be performed by the project. Stakeholders who want to add tasks to the project will be able to do so by negotiating the scope. This statement should clearly state how these changes can be made and who is authorized to approve them.
Determine the Project Risks
You might make assumptions about funding, staff, and other resources when you start a project. The charter statement should detail what happens if assumptions are wrong or if unanticipated problems occur. Based on the available information, quantify, analyze and prioritize risk. Describe how the project team will mitigate, avoid, or share risks.
Cover the Specifics
Managers, customers, and other stakeholders want to know how the project will be completed. Explain to customers and managers what products the team will deliver, as well as the quality standards. Give estimates of costs and a schedule. Define success criteria for the project.