For having a Clear and Very good Project Charter, the following Components are very important. A clear understanding of the problem will help not only to build the business case to be presented, but also quickly arrive at solutions. A Problem well understood by all the stakeholders is half resolved.
The Key components of a charter are
· A Clear and un ambiguous Problem Statement.
· A Clearly defined and reachable goal to resolve or in the direction to resolve the problem
· A Business Case, stating the benefits which can be achieved by resolving the problem.
Let us first discuss the Problem Statement. It is a Known proverb that if understand the problem clearly, you are half way to the solution. A Good problem Statement shall address the following.
· What is the process that is involved?
· What is wrong?
· What is the gap / opportunity?
· Where do we see the problem / gap?
· What is the period for which we looking at?
· When do we see the problem / gap?
· How big is the problem /gap/opportunity?
· What are the limits it is impacting and by how much
· How will we measure it?
· What is the impact of the problem /opportunity?
· What are the benefits of the action /consequences of inaction?
Problem Statement – Example
For the period from Jan 2013 to Jun 2013 (When), the Average Fuel Consumption (What) of all the Luxury service buses is at 4.3 KMPl against a target of 6 KMPL (size). This has resulted in a loss of 700000 INR (Impact).
Key Considerations / Potential Pitfalls
· Is the problem based on facts or assumptions?
· Is data available or can be collected to verify and analyze the problem?
· Is a solution included or implied in the statement?
· Would customers be happy if they knew we were working on this?
· Does the problem statement prejudge a root cause?
· Is the problem statement too narrowly or broadly defined?