Project Management Orientation (Concepts -2)

Project Stakeholders 

You will learn later on that one of the key reasons for project failure is that stakeholders lose their commitment to the project.  But who are the stakeholders, and why is it difficult to manage them?

A stakeholder in a project is any individual or organization that is actively involved in the project or whose interests might be affected, either positively or negatively, as a result of project execution or successful project completion.  Identifying and communicating with the stakeholders is an important responsibility of the project manager. 

There is an inherent difficulty in being caught between the sponsor and IBM.  Spending all the money in the budget for a fixed-price contract might result in a happy sponsor, but might not meet IBM goals.  The opposite can occur with a time-and-materials contract.

Most projects have a number of stakeholders, and they each have their own objectives to meet on the project.  The project manager must be aware of each of these stakeholders and their respective objectives.  Using this information, the project manager must ensure that what is done on the project is consistent first with the project requirements and then with the stakeholders' objectives.  Ideally, the objectives of the different stakeholders are closely aligned.  If not, a series of negotiations might be required to align the objectives.

An IBM project manager must be many things to many people.  The role of the project manager is to serve as the single point of contact for all matters relating to the project and to continuously balance project scope, cost, and schedule.  This must be done while interfacing with a number of people and organizations within IBM, with the customer, and with external or internal suppliers.

The Project Charter

The Project Charter is usually the first piece of documentation produced for a project.  Its purpose is to make the project “official” and should be written by the sponsor.  If a Project Charter is missing or poorly written, it can lead to ambiguity about the project objectives, scope, or solution.  This could lead to project cancellation or cost and time overruns.  If the Project Charter is not well-written, it is your responsibility as the Project Manager to go back to the project sponsor and help them create an adequate charter.

A Project Charter is a document that formalizes the request from a sponsor for responding to a business need.  It is a clear statement of project intent, and it provides a preliminary delineation of roles and responsibilities.  The Project Charter is issued by the sponsor, and it outlines the project objectives, identifies the main stakeholders, and defines the authority of the project manager. It serves as a reference of authority for the future of the project.
The Project Charter sets boundaries for the scope of the project.  It formally recognizes the existence of a project.  It should be issued by the project sponsor, and at a level appropriate to the needs of the project.  It provides the project manager with the authority to apply organizational resources to project activities. 

The Project Charter is usually a short document that refers to some other more detailed documents, such as a New Offering Request or a Request for Proposal. 

Some project managers have never had a Project Charter, or if they did, they might have known it by some other name.  Though in IPD, this document is known as the Project Charter, in CRM, it is known as the Project Definition Report.  Both IPD and CRM require this document as part of the project management process.  If the sponsor does not follow either process, it is good project management practice to insist upon the creation of a Project Charter.  As a last resort, if you as the project manager cannot get someone in authority to write the Project Charter, it might be advantageous for you to write it and submit it to the sponsor for approval.

The Project Charter is an important tool for establishing the authority assigned to the project manager, especially in a matrix environment.  It is considered industry best practice, and it is a defined WWPMM work product.

Who Creates a Project Charter

Project Charters are becoming more common in all kinds of project environments.  Many organizations generate these documents in letter form.  Within IPD, for example, the Project Charter is issued by the Integrated Portfolio Management Team (IPMT), which is the project sponsor.  Within CRM, the Project Charter is written by the project sponsor.  You need to understand the process for creating Project Charters within your business unit.

 

What Is the Project Definition? 

A Project Definition document is a WWPMM work product that helps the project manager determine the boundaries of the project.  In other words, it defines what the project will and will not encompass.  WWPMM defines the Project Definition as the document that describes the shape of the project. 

The Project Definition document includes the objectives and scope, the stakeholders and the proposed organization, the responsibilities, and the major risks associated with the project.

The Project Definition is written by the project manager early in the project life cycle and forces the project team to identify the critical issues before trying to solve the customer's problems.  This prevents the team from wasting effort.  Key items identified in the Project Definition are helpful in establishing the project's preliminary baseline.  The Project Definition is not a Project Charter or a customer contract.

The purpose of Project Definition is to:

• Formalize the understanding of the Project Charter by the delivery organization
• Provide the plan elements in order to control the planning and defining activities
• Give an initial description of the project framework for the planning activities
• Gather the fundamental characteristics of the project in a unique document.

 

Creating the Project Definition

You should create an initial version of the Project Definition after assessing the project goals and objectives.  Do this before refining the solution to the level that is appropriate for planning.  The initial version of the Project Definition contains the objectives and the plan for the defining activities. 
To do this, you must review all existing project documentation including documents and correspondence that have accumulated.  Pay special attention to the Project Charter as one of the primary inputs.  You must also meet with the main stakeholders identified in the charter and obtain their view of the target solution and project scope, paying special attention to their needs, and the risks they identify.  Then, based on what you have learned, use the WWPMM template for the Project Definition and fill in the required information