Monday 31 January 2022

Project Charter for integration & content management



The Project Charter is the official authorization of the project and is developed by the Project Manager with the involvement of members of the project management team on the part of the Contractor. The project charter is agreed with the project management team on the part of the Customer and approved by the Project Sponsors both on the part of the Contractor and on the part of the Customer.

The process of developing the Project Charter belongs to the Initiation process group and is carried out in the phase (at the stage) of the IP implementation project, which has its own specific name in each IP implementation methodology, for example, "Preliminary Project Definition", "Project Definition" - Microsoft Product Implementation Methodology, "Concept" - ASUP implementation methodology.

The initial documents for the development of the Charter of the IP implementation project are the contract and the results of the pre-project survey, which determine the content of the project work. The results of the pre-project survey are drawn up in the form of a report, including a description of the top-level business processes.

The project charter contains the following information:


1. Name of the project.

2. Business goals of the company or the reasons for the project.

The formulation of the reason actually provides an answer to the question "Why is this project being carried out?".

The company's business goals necessarily take into account the company's development strategy, including the information technology development strategy on which the project is focused, for example, increasing the capitalization of the Holding and attracting investors.

3. Objectives of the project.

Project objectives define what needs to be accomplished and describe the end result of the project. The Project Charter sets out the purpose of the project as a result expected by the Customer and useful for him. The goal is formulated jointly by the Customer and the Contractor.

When formulating a goal, the project manager must ensure that the goal is consistent with the contract under which the project work will be performed.

The formulation of goals must meet the following criteria (SMART- Specific, Measurable, Achievable, Relevant, Time-bound):

  • Specific - allowing you to create a project schedule;
  • Measurable - allowing you to qualitatively (or quantitatively) assess that the result is obtained;
  • Achievable - fundamentally implemented by the Contractor within the framework of the project, taking into account the declared assistance from the Customer;
  • Yielding results (Relevant) - correspond to the benefits expected by the Customer;
  • Time-bound - implemented within the expected time frame of the project.
  • The results of the project should be related to the specification of the contract under which the work on the project will be carried out.

Examples of goal formulations:

  • Design of unified unified business processes in the Parent Company and subsidiaries of the holding.
  • Development of a single unified ERP solution, which is intended for implementation in the Holding, consisting of the Parent Company and 10 subsidiaries.
  • Development of tools for deployment/replication of the resulting solution in all subsidiaries of the Holding.


4. Project boundaries.

Project boundaries define overall what is included in the project. It is necessary to explicitly indicate what is not included in the project in order to exclude the situation when a project participant mistakenly considers some product, service or result to be part of the project.

Organizational boundaries

It is determined which departments (including legal entities) should participate in the project - who will use and support the IP, on whom the development of the main decisions on IP requirements depends. Organizational boundaries determine the maximum boundaries of the survey and the birth area of IP requirements.

Functional boundaries. Business areas, business processes that will be covered by IP are indicated. This item defines the modules of ERP-systems.

Geographical boundaries. Geographically remote objects to be automated are indicated. 


Example of project boundaries
Functionality section Processes not to be implemented
Organizational Management Formation of the payroll fund according to specific methods. Alert system for HR functions in general. Certification of workplaces, harmful working conditions
Personnel administration Maintenance of parallel data in English
Time tracking Actual accounting of working time (negative accounting will be used). Accounting of working time for orders/objects. Accounting for work in hazardous conditions
Payroll calculation Piecework remuneration system


5. Content of the project (project tasks).

The content of the project answers the question "What specific work needs to be done to achieve the set goals?" or "What tasks need to be solved to achieve the set goals?". The content can be obtained from the Customer as a component of the tender documentation.

Example of description of the content (tasks) of the project

Automation of business processes:

  • Management of fixed assets.
  • Cost accounting.
  • Personnel management.
  • Business process requirements should include:

Requirements of the legislation of the Russian Federation in the field of accounting, tax and statistical accounting and reporting.

  • Requirements of International Financial Accounting and Reporting Standards.
  • Requirements of management accounting of the Parent Company of the Holding.
  • Internal reporting (internal audit) requirements.

Requirements of the Labor Code, industry reporting, reporting of the Parent Company of the Holding. 

6. Basic Assumptions and Limitations.

Assumptions are a series of factors that affect a project whose values are uncertain. At the time of project initiation, it is very important to identify as many assumptions as possible and document them. External conditions and assumptions are formulated, without fixing which the project cannot be successfully completed: conditions beyond the control of the parties, without the presence of which the content of the project cannot be clearly defined.

Examples of assumptions:

  • core resources will be delivered as scheduled;
  • project participants will fulfill the requirements and meet the deadlines for the implementation of the project; The customer understands the need to start and complete the project;
  • the project has organizational support from the Customer's management;
  • the contracting authority has the opportunity to allocate personnel to support the work on the project;
  • The Customer and the Contractor understand the need to ensure high organizational discipline on the project.
  • To compile a list of assumptions, it is recommended to use the so-called "brainstorming". Incorrect or undocumented assumptions can cause problems during project implementation.

7. Constraints are conditions that affect or define team actions. 

Project constraints are set during the initiation process. Limitations can be technical, physical, resourceful, or otherwise. There may be restrictions on the project budget, a limitation on the quality of the product, a limitation on time and technology.

Examples of constraints:

  • availability of project management certificates issued by the Project Management Institute (PMI) to the Contractor's consultants;
  • increase in the cost of the project by no more than 10%.

8. Control events and key dates.

Control events (project milestones) are the main events of the project, the control dates for obtaining results. Results and control events can be the same or have different values. The Charter sets out the main milestones of the project. Milestones specified in the Project Charter will be monitored by the Customer and must be strictly observed. It is necessary to assess the impact of all changes in the project on meeting the deadlines for these milestones. Examples of project milestone milestones are shown in Table.

Examples of IP Implementation Project Milestones
Name of the project milestoneKey dates
Software configuration completeseptember 1, 2008
Training materials developednov. 2, 2008
Prototype developeddec. 12, 2008
Testing completemarch 1, 2008
Software releasedjan. 20, 2009

9. Main results and success criteria.

The results of the project are ICs, individual IP modules, calculation algorithms included in the IS, screen forms, forms of reports and documents received within the framework of the project.

A success criterion is a set of standards or rules that define the performance of a task with an acceptable level of quality. Success criteria should correspond to the goals and content of the project as set out in the Project Charter.

Here is an example of a description of the results and success criteria of an IP implementation project.

The IP developed should solve the following tasks.

In terms of Fixed Asset Management:

  • the possibility of keeping records of fixed assets (FIXes) of the Parent Company and subsidiaries of the holding in accordance with Russian (accounting and tax) legislation and IFRS;
  • the possibility of maintaining a single register of fixed assets of the Holding;
  • the possibility of prompt receipt of data on the OS;
  • the possibility of control over the accounting and movement of OS objects.

In terms of Human Resources:

  • the possibility of maintaining and promptly obtaining agreed data on the number, composition and movement of personnel in each subsidiary of the Holding and in general for the Holding, the possibility of obtaining complete information on any employee of the company (including information on education, qualifications, relatives, incentives and disciplinary violations, the history of work at the enterprise, etc.);
  • the possibility of maintaining a staffing table in each subsidiary and in general for the Holding;
  • the ability to maintain timesheets;
  • the possibility of obtaining reporting of the Russian Federation, industry, reporting of the Parent Company of the Holding.

In terms of Cost Accounting:

  • automation of the process of calculating the cost of work;
  • the ability to analyze data on the normative and actual cost of work.

10. Planned cost of the project.

The cost of the project is determined by the contract between the Customer and the Contractor. Based on the cost of the project in the future, a budget of project expenses is drawn up with an indication of the items of expenditure for the implementation of IP in the context of the month, quarter, half-year, year.

The project charter formalizes the appointment of a project manager, defines the role composition of the project management team, contains the names of the Sponsor and Project Manager, and defines their authority.

Preliminary description of the project content

The project definition process (preliminary description of the project content) is part of the initialization process group. To develop the preliminary content of the project, the Project Charter is used. The description of the content of the project is a detail of what needs to be done to achieve the goal and what methodology will be used in the implementation of the IP. According to PMBOK [9], the process of developing a preliminary description of project content describes and documents the characteristics and boundaries of the project and related products and services, as well as acceptance methods and content management. Description of the project content includes:

  • project and product objectives;
  • product or service requirements and characteristics thereof;
  • criteria for the acceptance of the product;
  • project boundaries;
  • requirements and results of the project;
  • project constraints
  • project approval;
  • the initial organization of the project;
  • initially formulated risks;
  • control events (milestones) of the schedule;
  • the initial hierarchical structure of the work (IMR));
  • cost estimates in order of magnitude;
  • project configuration management requirements
  • approval requirements.

A preliminary description of the project content is developed on the basis of the Project Charter and the information provided by the Initiator or Sponsor of the project. The project management team, as part of the project content determination process, further refines the preliminary description of the project content before receiving the final version. The content of this document will vary depending on the complexity of the project and may include some or all of the above elements. In subsequent phases of multiphase projects, the project content formulated for this phase is ratified and finalized during the development of the preliminary description.

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