ProJECT CHARTER (D2)

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Project information
Project name: Project code / project identification:

Associated program or connection with other Project type:

projects:

Sponsor: Project Owner: Project Manager:

Key information
Total budget for entire project Charge to cost location(s): Accumulated cost in project as of
(kUSD): now (kUSD):

Expected financial benefit (could be expressed as IRR, NPV, payback time or other):

Actual start date for Start date for design, Date for delivery of Project end date (D5):
establishment, scope definition implementation & project result (D4):
& planning phase (D1): execution phase (D2):

Brief description of background

and purpose:

Effect goal:

Key deliverables:

Key Milestones: Milestones Due date


Limitations:

- Template for Project Charter D2 Version: 1.0 - Revised date: 2005-10-01 Owner: Project Office
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ProJECT CHARTER (D2)
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Risk factors

HIGH

2
Probability

3
MEDIUM

5
LOW

7 LOW MEDIUM HIGH

8 Consequence

R. Creation date Risk decription Activity / Action

no.
1

- Template for Project Charter D2 Version: 1.0 - Revised date: 2005-10-01 Owner: Project Office
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ProJECT CHARTER (D2)
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Relationship with other projects / partners

Project / partner: Description of relationship:

Realization of effects
Who is in charge of realizing
effects:
How to measure realization of
effects:
When to measure effects:

Resources
Project resources: Role/Responsibility: Company / unit: Period: Participation (%):

Steering Committee
Role Name Unit Comments

Reporting from Project Manager

Authorization

Additional important information

Attachments to Project Charter

Attach Type document Document name/ ID (Saved As) Document format
ment
no.
1
2
- Template for Project Charter D2 Version: 1.0 - Revised date: 2005-10-01 Owner: Project Office
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ProJECT CHARTER (D2)
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Signatures (Date and names)

Project Manager
Assumes the responsibility for the project according to the
above scope:

Project Owner
Approves the above scope and provides acceptance for start-
up of the implementation phase:

Sponsor
Approves strategic foundation and the above scope.
Acceptance to Project Owner to complete the project.

- Template for Project Charter D2 Version: 1.0 - Revised date: 2005-10-01 Owner: Project Office
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ProJECT CHARTER (D2)
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Instructions for completion of PROJECT CHARTER (D2)

Document information:
Header: The heading states the name of the document and is not to be altered. The
table has been compiled as a proposal ensuring quality in revision
management, and its use is recommended. By pressing F9 in the
archive/filed field, the file path is automatically updated.
Footer: The footer is reserved for the originator of the template, and shall not be
altered. The footer states which template version has been used.
Project information:
Project name: Unambiguous and formalistic name of project.
Project code / project Project number or other unambiguous project identification displayed in the
identification: units accounting system. (Confer with financially responsible for assignment
of code.)
Associated program or Name of program that the project potentially is, should or will be associated
other projects: with. Formal program code is stated in brackets. Other projects, which this
project affects or will be affected by, shall be stated; this also applies to
projects outside ones own business area. A more comprehensive description
is to be provided under the section on Relationship with other projects /
partners.
Project type: This is where to state the type of project according to instructions on how to
follow up projects in local activities. It should also be indicated whether the
project will have sales revenue, operating costs, investment costs, or
combinations of these. The following project types are proposed: Product
development, Infrastructure, Organizational development, and Customer
projects.
Sponsor: Formal owner (-s) in the company-/ line organization, final responsible
function. Name of person and her/his organizational affiliation. The Sponsor
(-s) can appoint a Project Owner to follow up of the Project on behalf of the
company organization when needed. (or Sponsor is the Project owner)
Project Owner: If appropriate; Name of person and her/his organizational affiliation. Can also
be defined during the planning phase. (D1-D2) Write: TBD i.e. To Be
Defined. Will be acting on behalf of the Sponsor (-s) and appoints the
Steering Group together with Sponsor.
Project Manager: Name of person and her/his organizational affiliation. Head of project from
now on. A separate resource agreement must be entered into with the
providing organizational unit.

- Template for Project Charter D2 Version: 1.0 - Revised date: 2005-10-01 Owner: Project Office
- Instruction Page 5
ProJECT CHARTER (D2)
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Key information:
Total budget for the
entire project (kUSD):
Charge to cost
location(s):
Accumulated cost in
project as of now (kUSD):
Expected financial
benefit:
Actual start date for
establishment / planning
phase (D1):
Start date for the
implementation phase
(D2):
Date for delivery of
project result (D4):
Project end date (D5):
Brief description of
background and
purpose:
Effect goal:
Key deliverables:
Key Milestones:
Limitations:
Risk factors
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[k=kilo=1000] State total budget for all kinds of costs for the entire project in
kNOK. Costs already accumulated in the establishment and planning phase
(subsequent to D1) are to be included. A detailed, periodized budget shall be
enclosed.
Indicate cost location(s) (company/department) to which costs shall be
charged. Internally covered, cost split or totally reimbursed. State to whom!
State total costs accumulated up to now in the project subsequent to D1.
Agreed-upon obligations are to be included.
Enter the estimated financial benefits for the project. The degree of
uncertainty should be visualized, and the conditions and the calculation
emphasized. Confer with the financial controller (or project office) for
assistance if needed. Summary figures stated here. Conditions and the
calculation (business case) shall be attached and referred to.
This will normally be the same point of time as decision B1. (Historic date.)
State anticipated start date for the implementation phase. This will normally
be the same point of time as decision D2.
State the planned date for when the project shall hand over the project result
to the line organization, decision point D4.
Indicate date when the project is to be administratively concluded and
financially closed, decision point D5.
A brief statement on the projects background. Place the project in an
appropriate context. Why should the project be established? Market
development, trends in technology, window of opportunity, competitors,
strategy, partners, and framework conditions/provisions from the
organization. Short description of the business opportunity.
Write briefly and use attachments if needed.
State goals describing those effects and gains that are to be achieved by
implementing the project. Synergy effects. Involve Project Owner!
Physical deliveries that are to be handed over to the Project Owner, customer,
etc.
It is recommended that you list both Core deliverables (mandatory) and
Optional deliverables (i.e. deliverables that should be in place, but are not
critical for the success of the project).
Specify main project milestones and due dates.
Specific deliveries that are not included in the project, e.g., tasks that shall be
carried out in the line organization or in other projects. All major
presumptions for the project shall be listed.
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ProJECT CHARTER (D2)
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If the project prepares a risk report, this field may be omitted in the charter, and a reference to the risk
report included. If such a risk report is not compiled, the project status report should indicate the most
important risk elements (with probability and consequence), which may presently pose a threat to the
project. The Project Manager must consider potential consequences, suggest actions, delegate responsibility,
and follow up actions. In the charter, only the blue markers (this period) should be used. Move the markers
by dragging and dropping them into the correct spot in the diagram.
Risk table For each identified risk, include a row in the risk factors table describing the
following:
- Creation date: when was the risk identified
- Description of the risk
- Activity/Action what is being / planned done to minimize / remove
the risk
Risks can be divided into external and internal conditions:
- External conditions: External success factors having an impact on
whether the project will succeed in achieving the stated results. One
shall indicate the major risk factors that may have a significant
impact on time, profit, cost or companys standing.
- Internal conditions: Internal success factors having an impact on
whether the project will succeed in achieving the stated results. It is
also important to describe uncertainties and conditions, e.g., what is
assumed taken care of by other projects or by the line organization.
This must be seen in connection with the above item on
Limitations. Critical success factors may be e.g. foundation,
communication, competence, resources, critical project activities, and
financial framework.
Relationship with other projects / partners
Project / partner: A short overview of programs, projects, assignments, organizational units or
external parties which this project directly impacts/may be impacted by. The
overview is not to be limited to ones own business area. Associations with
programs or other projects stated in the introductory project information must
be listed here.
Description of Provide a short description of each relationship. This may e.g. include
relationship: dependencies, resource conflicts, overlaps, mutual benefits, cannibalization
between projects, conflicts of interest, information flow, etc. Use attachments
if required.
Realization of effects
<Create one table for each effect in the Effect goal section>
Who is in charge of Name of company organization manager and organizational unit responsible
realizing effects: for realizing synergies subsequent to completion of the project.
How to measure This is to be followed up in order to ensure realization of the expected project
realization of effects: synergies. Synergy realization is closely connected with the projects effect
goals. This is consequently where to state, briefly, concrete actions to be
carried out subsequent to completion of the project, in order to measure
achievement of the synergies. Reporting frequency and requirements. Use
attachment for template.
- Template for Project Charter D2 Version: 1.0 - Revised date: 2005-10-01 Owner: Project Office
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ProJECT CHARTER (D2)
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When to start to measure State time(s) for when the measurement(s) is to be implemented.
effects:
Resources
Project resource: Name of resource
Role/Responsibility Role/responsibility of resources within project
Company/unit Company / unit of resource
Period Period that the resource should be available in the project
Participation: How much the resource should work for the project. Recommended not to be
below 50%.
Steering Committee
List the proposed composition of a Steering Committee if establishing such has been suggested. State each
persons role in the Steering Committee. The Project Owner is always the Chairman of the Steering
Committee.
Reporting from Project Manager
State how reporting from the Project Manager to the Project Owner and to a potential steering Committee is
to be implemented. Keywords are frequency, layout and distribution.

Authorization
State which authorizations and signature rights are given to the Project Manager and possibly others in the
project organization.
Additional important information
State any other business important to the project, which does not naturally belong under any of the other
headings.

Attachments to the Project Mandate

For your own benefit please be thorough in the documentation. This will be a part of the Project baseline
approved by the Sponsor/Project Owner and the Project manager.
Some documents are listed below.
Tip: Think what does a new project manager need to know if you suddenly (over the night) were assigned to
more interesting tasks Information for the project participants and stakeholders.
Type document (Project Plan) Description
Business case As a rule, a business case containing an analysis of the projects
profitability is compiled for all projects. Financial key figures,
such as net present value, internal rate of return, and repayment
period, are to be calculated, and a description of stipulations
provided.
Budget A detailed budget stating all kinds of costs shall always be
(Mandatory) attached. The budget shall be split into periods.

Partner analysis It is essential to define the projects interested parties and

analyze their impact potential. A partner analysis will provide a
- Template for Project Charter D2 Version: 1.0 - Revised date: 2005-10-01 Owner: Project Office
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ProJECT CHARTER (D2)
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Risk analysis
WBS (Work Breakdown Structure)
Work schedule (Gantt chart)
(Mandatory)
Organizational chart
Workforce plan with resource
agreements (Mandatory)
Synergy realization plan (draft)
Other from the company organization/
Project Owner
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good basis for the risk analysis. The partner analysis is a
relevant attachment.
As a minimum, a basic risk analysis shall be carried out. Provide
a description of the most critical factors and preventive actions.
The risk analysis should be composed as a separate attachment.
Any project needs to be broken down into readily understood
work packages and underlying activities in order to enable
estimation of scope and implementation follow-up. The WBS is
a relevant attachment.
All projects must have a work schedule. As a minimum, enclose
a work schedule showing milestones and the most essential
activities. Do not forget the formal decision points.
An organizational chart, for the project, with a brief description
of the roles should be attached.
One ought to enclose a workforce plan. This should include a
description of how to manage the resource allocation. You may
also enclose agreed to/proposed resource agreements.
The project shall ensure that a plan for synergy realization is
compiled prior to delivery of results to the company
organization (D4). A draft plan should be available at this stage
when the project charter is subjected to approval.
All vital documentation to the project, compiled from the
company organization in the initiation, establishment and
planning phase should be attached.
Version: 1.0 - Revised date: 2005-10-01 Owner: Project Office
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