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Software Project Management Session 2: The Software Project Charter Day 2 Topics Project Initiation Phase Key Deliverables Purpose of a Software Project Charter Defining the Problem/Opportunity •Defining the Project Outcomes •Defining the Project Approach Creating a Project Charter Describe the key deliverables from the Initiation Phase of a software project. Describe the importance of a Project Charter Perform a preliminary problem/opportunity analysis to identify the business case for the project. Create a clear and concise Project Objective Statement describing the outcome of the project, Use a Trade-off Matrix to clarify how you will manage the Triple Constraints of Schedule, Resources, and Scope. Create a Software Project Charter.

Session 2 - The Software Project Charter

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Page 1: Session 2 - The Software Project Charter

Software Project Management Session 2: The Software Project Charter

Day 2 Topics• Project Initiation Phase Key Deliverables

• Purpose of a Software Project Charter

• Defining the Problem/Opportunity

• Defining the Project Outcomes

• Defining the Project Approach

• Creating a Project Charter

• Describe the key deliverables from the Initiation Phase of a softwareproject.

• Describe the importance of a Project Charter

• Perform a preliminary problem/opportunity analysis to identify thebusiness case for the project.

• Create a clear and concise Project Objective Statement describing theoutcome of the project,

• Use a Trade-off Matrix to clarify how you will manage the TripleConstraints of Schedule, Resources, and Scope.

• Create a Software Project Charter.

Page 2: Session 2 - The Software Project Charter

Software Project Management Session 2: The Software -Project Charter

Initiation Phase Deliverables

Project AnnouncementFonnally announce at the executive sponsor level that a new project has begun.Assign (in writing) the project manager and authorize them to apply resources toinitiate the project.Communication MatrixIdentify the communication needs of all individuals and organizations involved inthe project. For each individual or organization, the matrix specifies whatinformation is needed, why, when, who is responsible, and how it will be delivered.The Communication Matrix defines the essential information needs andcommunication paths.Project CharterDocument and gain agreement on key aspects of the project including what it willaccomplish, the benefits, project team members, high-level schedule, costinformation, risks, issues, and assumptions. At Project Initiation, the charter is usedto make a sound go/no-go decision. As the project progresses, it is used to track theproject and manage scope, schedule, and resource trade-offs.

Page 3: Session 2 - The Software Project Charter

Software Project Management Session 2: The Software -Project Charter

Project Announcement

• Publicly announces the start of a project

• Formalizes Executive Sponsor ownership

• Assigns the Project Manager

• Commits resources to accomplish initiationand planning

The Project Announcement:

• Publishes sponsor ownership

• Formally delegates authority to the project manager

Formally commits sufficient resources to initiate the project

Prior to announcing a large project, the Executive Sponsor is responsible forensuring that executives from key areas affected by the project have been consultedand buy in to the project concept.

The project announcement presents the project name to the company. Pick a namethat is short and energizing, a memorable acronym, specific to the project.

Page 4: Session 2 - The Software Project Charter

Software Project Management Session 2: The Software Project Charter

Example Project Announcement

Date: September 5, 2005From: Sally Green, IT Division ChiefTo: All StaffNew Project Announcement!!I am pleased to announce that our Division is initiating the Quick AnswerHelp Desk project. This exciting project will acquire and implement newExpert Solution and Request Tracking software to help our support staffrespond more quickly and accurately to our customer requests. I, SallyGreen, am the Executive Sponsor and George Boyd is the project manager.We will establish a core team comprised of Division staff and customerrepresentatives. Alicia Monfort, the Support staff supervisor, will representthe support staff and customer needs throughout the project. We intend tohave the new Help Desk process and software in place by the end of thisfiscal year.If you have any questions or ideas about this project, please contact GeorgeBoyd, at 777-7776.

Sally GreenIT Division Chief

Page 5: Session 2 - The Software Project Charter

Software Project Management Session 2: The Software Project Charter

Communications Matrix

• Identify who needs to know about theproject, what they need to know, when,and how it will be communicated

• Establish a formal reporting structure forthe project

• Determine Core Teamreporting responsibilities

Timely and appropriate communication builds project success. Projectcommunication includes regular reports to the Executive Sponsor, progress reportsto functional management, shared information between core team members andproject manager, and general "What's in it for me?" information for allstakeholders.

Initial communication planning is essential early in the project as it provides theinformation necessary to begin project reporting.

The Communications matrix provides a structure to ensure that all the necessaryinformation is provided to the Executive sponsor, the project team and thestakeholders. It is created in the Initiation Phase and reviewed and revised as neededto ensure that all those involved continue to get the information they need.

Page 6: Session 2 - The Software Project Charter

Software Project Management Session 2: The Software Project Charter

Example Communications Matrix

AUDIENCE WHATIWHY WHEN RESPONSIBLE MEDIA HOWIWHEREProject Sponsor: Project Charter for Approval Project Initiation/ George Boyd Hard Copy/ Status Meeting/Sally Green On update Electronic Project File

Project Status for Review Monthly Georqe Boyd Hard copy Status MeetingOpen Issues for Resolution As Required George Boyd Issue Log Status Meetinq

Stakeholders: Project Charter for Project Initiation/ Alicia Monfort Hard Copy/ Joint StatusLinda Williams Coordination On update Electronic Meetinq(IT Support Mgr.) Project Status for Coordination Monthly Alicia Monfort Hard copy Joint Status

MeetingExternal Customers: Project Benefits for Buy-in Bi- Monthly George Boyd Hard copy Bi-Monthly(Division Employees) Newsletter

Internal Customers: Project Status for Buy-in Monthly George Boyd Verbal Staff Meeting(IT Staff) ReportProject Manager: Task Estimates for Planning Planning Core Team Members Work Team PlanningGeorge Boyd Breakdown Meeting

StructureTask Status for Tracking Weekly Core Team Members Email/MS Team Status

Project Meeting/EmailOpen Issues for Resolution As Required Core Team Members Issue Log Team Status

Meeting/EmailProject Team Project Charter for Buy-in Initiation George Boyd Electronic Team StatusMembers: Meetina/EmailCore Team Project Direction Information Weekly George Boyd Electronic Team Status

Meetina/Email

Page 7: Session 2 - The Software Project Charter

Software Project Management Session 2: The Software Project Charter

Project Charter

• Clarifies the business reasons for the project• Documents the expected project results• Obtains executive commitment to the project

approach• Provides a foundation for

making project decisions

In a relatively short time, the project team determines:Why the project is important• Who will be involved• What the project will accomplish• Where in the organization• When the project will be completed• How much it will cost (estimated)

This information is documented in the Project Charter so that the executive staff canmake a sound go/no go decision on whether or not to continue the project. TheProject Charter provides formal agreement on:

• Business reasons for the project• Project objective, scope, and final deliverables• Commitment to resource, schedule, and scope

Getting agreement in writing formalizes the the goals for the project team, thesponsor, and the customers. If the project team can not reach agreement at thispoint, the project is headed for trouble

The Project Charter provides the baseline for creating the project plan and formonitoring changes in scope. Future decisions are matched against the baselineagreed to in the charter. If changes to this baseline are required, the Project Charteris updated and approved by the Executive Sponsor.

Page 8: Session 2 - The Software Project Charter

Software Project Management Session 2: The Software Project CharterProject: Quick Answer Help Desk

Sponsor: Sally GreenProject Mgr: George BoydCharter Version #: V 1.1Updated by: George BoydApproved By: Sally GreenApproval Date: Oct 15, 2000

Project Objective Statement:Implement an automated Expert Solutions Databaseand Request Tracking system that enables HelpDesk staff to provide top quality service to ourexpanding customer base.

Strategic Fit:Improved Operating Efficiency and CustomerService

Customer/Stakeholder:• Help Desk Staff• IT Support Organization• Division Employees who make Service Requests

Customer Benefits:1. Ability to provide correct response to

frequently asked questions2. Ability to build knowledge base of successful

responses3. Automated tracking of call volume and

response time4. Improved response time and customer

service

Successful Completion Criteria:1. Expert Solution Database includes answers

to 60% of all customer requests2. Maximum wait time for solution database

search is 30 seconds3. Customers receive response from 2nd tier

support within .5 day of original call

Project Deliverables:1. Vendor Selection Documentation2. Software Interface Tailoring3. Installed Help Desk Server and network4. Installed Expert Solutions Database5. Installed Service Request Tracking Database6. Help Desk Escalation Procedure7. Training Materials for Help Desk Analysts

Start Date: Sept 1, 2000Estimated End Date: June 30, 2001

Triple Constraint Trade-off:

Select a different flexibility letterfor each constraint.Flexibility letter choices are:

N = Not FlexibleS = Somewhat FlexibleM = Most Flexible

Resources S

Schedule N

Scope M

aJor Igi - eve I estonesMilestone Planned Actual1. Project Charter 10/15/00 10/15/00

Approved2. Help Desk Req'ts 12/01/00

complete3. Software Vendor 1115100

Selected4. Database Tailoring 3/01/00

Design Complete5. Help Desk Server 3/15/01

installed6. Expert System 4/15/01

Installation & Test7. Help Desk Analysts 5/15/01

TraininQ complete8. Help Desk 6/15/01

Proceduresimplemented

Risks:1. New Expert System Technology2. Staffing the new Help Desk

Current Issues:1.Need buy-in for single-point-of-contact from all

Customer areas2. Creating expert solutions database for in-house

developed applications is out of scope for thisphase --- may cause problems in acceptance.

Page 9: Session 2 - The Software Project Charter

Software Project Management Ses ion 2: The Software Project CharterProject Background:Our Information Technology Division supports theConsulting and Professional Services Branch of alarge corporation. We provide desktop support, aswell as develop and support software used for thesales and scheduling of a variety of professionalservices. The customer base supported by our ITorganization has grown from 100 to over 1000 salesand marketing and customer support personnelworld-wide. We have two staff in Network Supportwho respond to customer requests, although they arenor formally designated as a Help Desk. They do nothave any automated support --- all tracking ofcustomer requests is manual. In addition, they andother staff are often asked to respond to problems inareas they are unfamiliar with, resulting in delays andinconsistent or incorrect problem resolutions. Arecent customer survey gave us a "Low" in customersatisfaction. Reasons stated included:

• Long delays in getting problems resolved

• Need for multiple calls to get problemsresolved

• Poor credibility of staffOrganizational changes are underway to create andstaff a Help Desk that includes network support aswell as software support. This Help Desk will be asingle point of contact for all customer calls. TheHelp Desk needs automated support to both trackrequests and to provide a data base of solutions tofrequently asked questions. They also need abusiness process in place to cover hand-off ofproblems they can't resolve immediately. This projectaddresses the need for automation and for anorganized way to hand-off calls to IT staff whoperform second level support.

Reference: Customer Support Survey, Help DeskProcess Analysis, Help Desk Automation FeasibilityStudy (FSR) report

Dependent Projects:1.Work with Personnel to define job classifications

for the Help Desk Analysts2. Recruit and hire two more analysts to staff the

Help Desk3.lmplement the phone service for the single point

of contact number

Project Scope:In Scope: • Help Desk process to cover

Applications Support, Desk TopSupport, and Network Supportcalls

• Definition of 2nd and 3rd tiersupport process for Help Desk

• Purchasing of software andhardware

• Expert Solutions databases forstandard office automationapplications

Out of scope: • Organizational changes to createthe Help Desk

• Help Desk process to coverprocurement and trainingassistance calls.

• Development of Expert Solutionsdatabase for in-house applications

Assumptions and Constraints:1. The current budget cycle allocated sufficient

money for purchasing hardware and softwarefor this project.

2. Minimal tailoring of the purchased solutionsdatabases.

3. The procurement cycle for new equipmentrequires no more than a 3 month lead time.

Ipr~ect Budget: 1$_5_0_0_,0_0_0 _EXJ}ended to Date: _

Page 10: Session 2 - The Software Project Charter

Software Project Management Session 2: The Software Project Charter

Creating a Project Charter

• Analyze theProblem/Opportunity

• Define the ProjectOutcome

• Determine the ProjectApproach

Dlp~-"~":""~rt.~,L' =:lNa_: Ilr.medill.ll SllOlXlr1 Help.-B.ellgrDWld:c...rrerJmetro:lClfprooeloM'icust.cmerslllnlOltc:a:b1ll.,elr~llndcllen~1eI~eed I c:erltr.lltll:d facility wttnalilOmaleds~ppotlPas;=~~~:=:earcland req.-l1lr.iCUi; system-$(;qM:1n:A,Q;)hclI.klnv.<lOeslcfcol~Out;P:'Dcu~&PJann.,g~-SponlOr:Sal1yGt'lIlJ1'

The Project Charter is the tip of the iceberg. It is like an "elevator speech," a veryshort time to present the key points about your project. A successful Project charteris short, clear and concise --- and it is based on solid analysis.The amount of analysis required to complete a charter varies with the complexityand size of the project. However, there are always three general areas of analysis,carried out in roughly sequential order. For some projects, the necessary analysiswill have been performed as part of tactical planning, business process re-engineering, or feasibility analysis. On other projects, the analysis is performed aspart of the project Initiation phase.In the following template, the sections of the Project Charter template are colorcoded to show which area of analysis results in the information in the charter.

I>.:,·_m

1 W_h_it_e _

I

Page 11: Session 2 - The Software Project Charter

Software Project Management Session 2: The Software Project Charter

Project Objective Statement:What must the project do? By When? Keep thisstatement short --- 25 words or less. Make it SMART(Specific, Measurable, Achievable, Relevant, andTime-based.)

[Strategic"Fii:~-_i~r""-~;~P""""$W'f{;-"=~TffRi?'!'

lWhat is the Strategic Initiative IdentififJ/ for tpis•project?tL?L \Ii<

!Customer:Who is the Customer?

rustomer SineiWhat customer b,project address? Relate these to one of thetollowing: increase revenue",;f!voidgosts, improveservice,and/or comply reate,short numbe ','·····d·

lSuccessful Completion Criteria:How will the success of the project be determinedfrom the customer's perspective? Make these criteriameasurable so there is no doubt as to the project'ssuccess. (Create a short numbered list.)

Project Deliverables:What is the project going to produce? (Create anumbered list of tangible products that will beavailable as a result of this project.)

Start Date:Estimated End Date:

When did the project start?When will it finish?

Triple Constraint Trade-off:

Resources Select a different fleXibility letteror each constraint.

Schedule Flexibility letter choices are:N = Not Flexible

Scope S = Somewhat FlexibleM = Most Flexible

Maior HiQh-Level MilestonesMilestone Planned Actual1. What events measure

progress? E.g.Initiation Approved,Analysis Complete,etc.

2.3.4

567

Project Core Team MembersTeam Member RoleWho is on the project? What role do they plav?

Risks:What characteristics or situations could cause thisproject to fail? Identify those items which are outsidethe jurisdiction of this project and could result in a"show-stopper" to the project success. (Create ashort numbered list)

Current Issues:What immediate situations (if any) need to be broughtto the attention of executive management foresolution? (Create a short numbered list)

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Software Project Management Session 2: The Software Project Charter

Dependent Projects:What projects must be underway or completed beforethis project can be successful? What projects dependon this one for their successful outcome?

Project Scope:In Scope: List the business areas and

functionality that will be included in thisproject.

Out of scope: List the business areas andfunctionality that will not be included inthis project.

ssumptions and Constraints:What assumptions were made in defining the project?

ssumptions can affect scope, schedule, resources,stakeholders, etc. Are there constraints to theexecution of the project? .Constraints describe. oundaries within which the project must operate.(Create a numbered list of assumptions andconstraints.) .

Page 13: Session 2 - The Software Project Charter

Software Project Management Session 2: The Software Project Charter

Project Problem/Opportunity

• Project Background• Customer/Stakeholders• Customer Benefits• Strategic Fit

These sections of the charter answer the following questions:Why is the project important?What are the strategic or operational reasons for the project?Who are the direct customers? Who needs to be involved?What are the specific benefits to the bottom line?

Project Background -- Include key points describing the current situation, thedesired situation, the gap between them, and proposed solutions. Previous analysisinformation could include: Business Process Re-engineering documents, BusinessProcedure manuals, Feasibility Study Report (FSR), Performance measurements,and tactical planning.

Customers/Stakeholders -- List the organizational units who will benefit mostfrom the project results, as well as any organizational unit that will be affected bythe project outcome. Remember to include the appropriate control agencies ifrequired.

Customer Benefits -- Identify the effect on the business bottom line. Benefitsshould: Increase Revenue, Avoid Costs, Improve Service, (IRACIS) and/or Complywith a Mandate.

Strategic Fit -- State the strategic or operational goals that the project supports.

Page 14: Session 2 - The Software Project Charter

Software Project Management Session 2: The Software Project Charter

Project Background

• Describe the current situation• Describe the desired situation• Describe the contributing factors• Describe what it would take to

bridge the gap

NOTES:

The Project Background section summarizes the results of problem analysis. Thisshould always be the first step in a project. Without a clear statement of theproblem, the correct solution is left up to a lucky guess.Problem analysis steps are as follows:Current Situation: Ask "What is happening now? What is the effect on theorganization? What is the effect on our customers? What is the effect on our abilityto compete?"Desired Situation: Ask "What should happen? How should employees be able tohandle this situation? What would satisfy our customers? What should we do to bemore competitive?"Contributing Factors: Ask "What is forcing us to do business in the currentmanner? Why does the current system work the way it does?"Bridging_theGap: Ask" What changes could we make to move toward the desiredsituation? Would the use of information technology help? Ifso, how?"Avoid the tendency to jump to solutions without first carefully stating the problem.Your problem statement needs to pass the "So what?" test. It takes discipline tokeep asking, "Am I describing a solution instead of a problem? If so, what is theproblem that this solution solves? Is it really the root problem, or is it merely asymptom.

Page 15: Session 2 - The Software Project Charter

Software Project Management Session 2: The Software Project Charter

Customers/Sta ke holders• Who are your customers?

Are they external or internal to your organization?• Who will use the end product?• Who will need to change their processes as a result of

your project?• Who interfaces with your project?• What agencies can regulate the project?• Is there anyone else who needs to know about your

project?

This step helps to identify who needs to be on the core team as a customerrepresentative and who needs to be identified as a stakeholder so that the projectteam will keep them informed.

Page 16: Session 2 - The Software Project Charter

Software Project Management Session 2: The Software Project Charter

Project Outcomes• Project Objective Statement• Project Deliverables• Successful Completion Criteria• Project Scope

These sections of the charter ensure that all those involved have the sameunderstanding of what the project will produce. The following questions areaddressed:

• What will the project accomplish? By when?• What are the specific end products that will be available for use when the

project is completed?• How will the project team and the customers measure the completion of the

project?• What specific aspects of the problem/opportunity will be addressed by this

project? What aspects will not be addressed?

Project Objective Statement: Short, overall objective for the project. States whatwill be accomplished, by when, and for how much.Project Deliverables: High-level list of what the customer will have when theproject is completed.Successful Completion Criteria: Provides a measurable answer to the question"How do we know we are done?"

Page 17: Session 2 - The Software Project Charter

Software Project Management Session 2: The Software Project Charter

Project Objective Statement

• Make it SMAR T*• Make it SHORT• Make it ENERGIZING!

* Specific, Measurable, Achievable, Relevant,Time-based

NOTES:The Project Objective Statement (POS) is a high-level, written summary of theproject. The POS states what the project must accomplish in order to be successful.It reflects the current understanding of the project and is used tofocus the teammembers, the sponsor, and other key stakeholders on the primary objective of theproject.

The POS should be concise, 25 words or less, and avoid jargon as much as possible.

A word of caution -- Make sure that the POS is measurable and achievable. Theproject's success will be determined by how well it achieved the POS. Thefollowing are example POS's for different projects:

The Apollo Project: By the end of the decade, send a man to the moonand return him safely to earth.

A process improvement project: Implement a Cannery ProjectManagement Office by Q3 2000 to provide standard projectmanagement processes and guidelines and to assist Project Managers intracking and reporting progress.

A Training Information System Project: By the yd Quarter ofFY 99,develop a centralized training information database to be the solesource of scheduling and registration activities for the department.

Page 18: Session 2 - The Software Project Charter

Software Project Management Session 2: The Software Project Charter

Identifying Deliverables

• What will the customer have when we finish?• What will the support staff have when we

finish?

Deliverables are tangible products that will be in place as a result of your project.What does your customer expect to receive when this project is completed? Whatdo the supporting organizations need? What about each of the stakeholders?

The deliverables match the project objective. If your project objective is to delivera complete system, then the deliverables will include installed source code,documentation, and training materials as a minimum. If your objective is toevaluate alternatives and plan the implementation of a system, then the deliverableswill include the evaluation results and an implementation plan.

The deliverahles list should include those deliverables that satisfy the sponsor andthe customers, and ensure that the project has achieved its objective and provides auseful end product.

Page 19: Session 2 - The Software Project Charter

Software Project Management Session 2: The Software Project Charter

Defining Completion Criteria

How do we know we are done??~Acceptable~Measurable~Testable~ Achievable

Describe how the success of the project will be determined from the customer'sperspective. The completion criteria should be in quantifiable/measurable terms sothat there is no doubt as to the project's success.

If the functional requirements have been sufficiently quantified, meeting themconstitutes the successful completion criteria. Quantifiable measures of customeruse and/or satisfaction with the final product also can be used to measure thesuccessful completion of the project.

The completion criteria are:

Acceptable - if they describe the level of performance of system characteristics thatsatisfy the customers

Measurable - if they describe a characteristic that can be quantified

Testable - if a test or a simulation can be constructed to verify the level of themeasurable quantity

Achievable - if the desired level can be realistically achieved by this project giventhe limits of the Triple Constraint

Page 20: Session 2 - The Software Project Charter

Software Project Management Session 2: The Software Project Charter

What's in Scope?• What parts of the problem will

we address?~Geographic areas?~ Business processes?~ Equipment?~Training?~ Installation?~ Infrastructure?

• What parts of the problem will we notaddress?

The scope of a project sets the boundaries so that it can be completed successfully.The project boundaries are defined by specific customer business areas to besupported, functionality to be included, and/or technologies to be addressed.

If the project needs to be accomplished in phases, state the specific boundaries forthis phase at part of the scope.

It is usually beneficial to clearly state what the project does NOT include to helpidentify the project boundaries.

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Software Project Management Session 2: The Software Project Charter

Project Approach

• Core Team Members• Triple Constraint Trade-off• Major Milestones• Risks• Current Issues• Dependent Proj eets• Assumptions/Constraints• Budget

These sections of the charter contain general information about how the project willproceed. They answer the following questions:

What are the relative flexibility levels of the Triple Constraint?What specific dates does the project need to meet?Who is plays the various roles on the core team?What is the level of risk associated with this project?What related areas should we pay attention to?

Core Team Members: Identify team members by skill set provided and by name.

Triple Constraint Trade-off: Determine which of the three constraints this projectmust meet in order to be successful.

Major Milestones: IdentitY major dates for measuring progress and reporting tomanagement.

Risks: Use general risk areas to determine if this is a "risky" project.

Current Issues: Identify issues that need to be addressed now.

Dependent Projects: List projects that are outside the scope of this project and eitherdepend on us or upon which we depend.

Assumptions/Constraints: List assumptions which if they prove wrong will causeproblems for the project..

Budget: If known, state the total budget allocated to the project.

Page 22: Session 2 - The Software Project Charter

Software Project Management Session 2: The Software Project Charter

Core Team Members

• Committed to the proj ect• Should include at least one user representative• Includes skill sets needed to create each

deliverable

The following definition of a team is taken from Jon Katzenbach and Douglas Smith inthe "The Wisdom of Teams."

"A team is a small number of people with complementary skills who arecommitted to a common purpose, performance goals, and approach for whichthey hold themselves mutually accountable."

Thus, the core team for a software project is a small group of people (2 - 8) withcomplementary skills who are committed to the project objectives. The exact roles onthe team vary depending on the project. However, all project teams should include atleast one representative from the customer organization. At the beginning of a project,the core team may consist of the team leads who are responsible for accomplishing thevarious deliverables.

The core team members are dedicated to the project. In reality, this may not mean100% of their time is committed, but it does mean that core team members are heldaccountable for timely completion of their tasks.

Additional team members needed as subject matter experts on a temporary basis are notcounted in the core team.

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Software Project Management Session 2: The Software Project Charter

Negotiating The Triple Constraint

Scope

Managing a project requires balancing three constraints: resources, schedule andscope. These three constraints are interdependent -- and the quality of the end resultis dependent on selecting the proper balance. A change in one factor causes theothers to change as well.

Use the Triple Constraint Trade-off on the Project Charter as a tool to identifywhich one of these three factors is the least flexible on this project. For example, ifyour project must be delivered at a particular time, the schedule is "Not Flexible."If it should have a pre-defined set of features, the scope is "Somewhat Flexible."The remaining constraint, resources, is "Most Flexible." Note that only oneconstraint is identified as "Not Flexible."

The Triple Constraint Tradeoff negotiation occurs with the Executive Sponsor andis a crucial part of managing the project. This negotiation re-occurs as the projectprogresses and the Triple Constraint trade-off is adjusted accordingly. Anadjustment to the Triple Constraint requires that the Project charter be updated andapproved by the Executive Sponsor.

Concerns that help to identify the constraint that is not flexible include:

• Legislative or other requirement to meet a particular date where the penaltyfor not meeting the date is greater than the cost of meeting it.

• Customer safety dependent on a specific set of features.

• Operating with a fixed budget.

Page 24: Session 2 - The Software Project Charter

Software Project Management Session 2: The Software Project Charter

Major Milestones

• What events will the team use tomeasure progress?

• What are major approval points?• Are there externally imposed required dates?

Major milestones establish interim goals and deadlines to guide team towardaccomplishing the final project objective. The milestone schedule forms thefoundation upon which the project schedule will be constructed. It provides anunderstanding of the major accomplishments and when they need to be completedin order to complete the project successfully.List the major events by which you intend to measure your progress on the project.Keep the list relatively short (10 or less) -- these are major milestones. A majormilestone may include several smaller milestones that lead up to the major event.Choose milestones based on the major events that the Executive Sponsor needs tohear about.For each milestone, describe the event and include a date based on your currentknowledge of the project. This date could be an imposed deadline or an estimate ofwhen the team thinks they can complete the tasks. In the initial versions of theProject Charter, some dates may be left blank until further planning has beenaccomplished. Adjustments to the milestone dates require an update to the charter.Example milestones include:

Initial Project Charter approvedCustomer approval of system requirementsTesting completeProcurement completed

Page 25: Session 2 - The Software Project Charter

Software Project Management Session 2: The Software Project Charter

Evaluating the Level of Risklli~-

Would project failure be amajor blow to the organization?Is there significant commitmentof funds?Is the proj ect team likely to lack necessaryskills or equipment?Is this a new and unproven technology?Does the project require major changes to thecustomer's way of doing business?

Risks are events that that could cause the project to fail. Concentrate on thoseevents, which are outside the jurisdiction of the project and could be "show-stoppers" to the success of the project.

The Risks section of the Charter identifies general risks that the project team isaware of at the beginning of the project. These serve as a "heads-up" warning andidentify the overall risk level of the project. The "Risk Management Plan" createdin the Planning Phase, identifies specific risks in detail and defines preventiveactions and contingency plans.

Example risks to consider at the beginning of a project include:

• Affect that project failure would have on the business

• Availability of skilled project team members

• Facilities and equipment not ready in time

• New technology that may not work as planned

• Difficulty of defining the project business requirements

• Likelihood of creeping scope.

Page 26: Session 2 - The Software Project Charter

Software Project Management Session 2: The Software Project Charter

Project Name: I Start Date: IIEstimated End Date:

Sponsor:Proiect Mar: Triple Constraint Trade-off:Charter Version #: Resources Select a different flexibility letterUpdated by: for each constraint.Approved By: Schedule Flexibility letter choices are:Approval Date: N = Not Flexible

Scope S = Somewhat Flexible

Project Objective Statement:M = Most Flexible

Major High-Level MilestonesMilestone Planned Actual

Strategic Fit:

Customer: Project Core Team MembersTeam Member Role

Customer Benefits:

Risks:

Successful Completion Criteria:

Project Deliverables:Current Issues:

-

Page 27: Session 2 - The Software Project Charter

Software Project Management Session 2: The Software Project Charter

Project Background: Project Scope:In Scope:

Iproject Budget:Funding Source:

Page 28: Session 2 - The Software Project Charter

Software Project Management Session 2: The Software Project Charter

Session Two Review• What is the purpose of the Project Announcement?• What is the purpose of the Communications Matrix?• Why is a Project Charter so important

for a Software Project?• What are the three types of analysis that are essential

for a Software Project Charter?• What is the purpose of a Trade-off Matrix?• What parts of the Project Charter can be completed at

Project Initiation?