Project Management

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Topics: Business Case, PMO, Using PMI Standards
Business Case
I have two questions on this:

1- The business case is an input of the Develop Project Charter Process but is it also part of the Project Charter Document ?

2- The Project Charter includes the PM Name and Authority or the Business Case ?

As far as I am aware and from my experience, the project charter mentions the PM and his authority and once the Project Charter is signed by the sponsor or initiator, the Project is officially initiated and the Project Manager is officially assigned and can start carrying his duties.

When we prepare a Project Charter, we include the following: (The Business Case is prepared prior to this as it is an input)

- Project Title & Description
- Project Manager Assigned and Authority Level
- Business Case (Either Summary or Detailed)
- Resources Pre-Assigned
- Stakeholders
- Known Stakeholders Requirements
- Project Description / Deliverables
- Assumptions
- Constraints
- Measurable Project Objectives
- Project Approval Requirements
- High Level Project Risks

I need your input and opinion on the above please based on what you actually do in your organizations.
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Hi,

I can offer you a perspective from Six Sigma project management. A feasibility study is done initially to determine potential savings and other benefits. It is very high level and should not take a lot of time. The charter includes the findings in a summary format. Financial benefits, benefits to the customer, benefits for the business are included. After the entire process has been measured then a business case model is built. We are now able to move from vague to more specific. Later after piloting of the improvement a business case with projections for how benefits will be realized for 12 months is developed.

Let me know if this helps,

Evonne
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1 reply by Rami Kaibni
Jan 11, 2016 5:08 PM
Rami Kaibni
...
Hi Evonne, Thanks for your input - This was definitely helpful.
Jan 11, 2016 4:23 PM
Replying to Evonne Waters
...
Hi,

I can offer you a perspective from Six Sigma project management. A feasibility study is done initially to determine potential savings and other benefits. It is very high level and should not take a lot of time. The charter includes the findings in a summary format. Financial benefits, benefits to the customer, benefits for the business are included. After the entire process has been measured then a business case model is built. We are now able to move from vague to more specific. Later after piloting of the improvement a business case with projections for how benefits will be realized for 12 months is developed.

Let me know if this helps,

Evonne
Hi Evonne, Thanks for your input - This was definitely helpful.
Hi Rami - it's often/normal that the PM prepares the project charter on behalf of the project sponsor, and sometimes even the business case.
As regards the answers to your questions, I believe you do need to include the business case in the charter. In fact the business case should be reviewed at every gate to ensure that the project is still relevant.
Sometimes, the business case could be a detailed market assessment with recommendations for product development, so in that case, it would sufficient to provide reference to the document and then only include a summary in the charter. The charter is meant to be a short senior management level document - the detail of the project is in the project specification, and that is only written once you have permission to start the project.

Although PMP give a preferred method, it is company specific - I've ran projects where the first phase of the project was to carry out a detailed market assessment /develop a business case and make recommendations to the gate reviewers as to whether the project is viable.
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1 reply by Rami Kaibni
Jan 11, 2016 11:15 PM
Rami Kaibni
...
Michael, Thanks a lot for your input. Yes I agree with you on this. I am just trying to rap my head about the different practices for the subject in different organization. Your feedback surely helped a lot.
Jan 11, 2016 7:16 PM
Replying to m gray
...
Hi Rami - it's often/normal that the PM prepares the project charter on behalf of the project sponsor, and sometimes even the business case.
As regards the answers to your questions, I believe you do need to include the business case in the charter. In fact the business case should be reviewed at every gate to ensure that the project is still relevant.
Sometimes, the business case could be a detailed market assessment with recommendations for product development, so in that case, it would sufficient to provide reference to the document and then only include a summary in the charter. The charter is meant to be a short senior management level document - the detail of the project is in the project specification, and that is only written once you have permission to start the project.

Although PMP give a preferred method, it is company specific - I've ran projects where the first phase of the project was to carry out a detailed market assessment /develop a business case and make recommendations to the gate reviewers as to whether the project is viable.
Michael, Thanks a lot for your input. Yes I agree with you on this. I am just trying to rap my head about the different practices for the subject in different organization. Your feedback surely helped a lot.
Hi Rami,

in addition and/or complementary to that what we already have talked about this topic i do try to answer your questions here again; but this is ONLY from PMI's perspective (not real life):

1- The business case is an input of the Develop Project Charter Process but is it also part of the Project Charter Document ?

While the PMBoK Guide does not says specificly that the Business Case is a part of the project charter, in Rita's Prep Book it is (pg. 118 and also in the mentioned examples there):

"So project managers must know why their project was selected and how it fits into the organizations strategie plan.They then have to rnake sure the project meets those needs. The business case described in the project charter explains the business need and the analysis used to justify the project. ..."

So, for exam purposes we should assume that "business case" is part of the project charter.



2- The Project Charter includes the PM Name and Authority or the Business Case ?

PMBoK Guide is very clear and specific here (pg. 54):
"If not already assigned, the project manager will be selected. This information is captured in the project charter and stakeholder register. When the project charter is approved, the project becomes officially authorized."

That means, project manager could be assigned earlier (e.g. in the business case or elsewhere) but latest in the project charter and authorization comes with the approved project charter (by project sponsor)..

This is PMI's/PMBoK Guide perspective, like i said. To do a real life example it could be that the team what is doing the business case says (and write into it), well we would like to see Rami Kaibni doing the project for this business case, cause he would be the best for trhis job.
But later on, when project charter is written unfortenatly Rami is not availble, cause he is doing already another important project, so the assigned project manager is changed in the project charter to Markus Klein (just second choice but what should we do?). ;)

Hope this helps.

Regards,

Markus
...
1 reply by Rami Kaibni
Jan 12, 2016 8:07 PM
Rami Kaibni
...
Hi Markus,

Thanks for your input - I agree with you totally and don't worry, if this happens, I will move aside and you will always be the first choice :D
Jan 12, 2016 9:50 AM
Replying to Markus Kopko, PMP
...
Hi Rami,

in addition and/or complementary to that what we already have talked about this topic i do try to answer your questions here again; but this is ONLY from PMI's perspective (not real life):

1- The business case is an input of the Develop Project Charter Process but is it also part of the Project Charter Document ?

While the PMBoK Guide does not says specificly that the Business Case is a part of the project charter, in Rita's Prep Book it is (pg. 118 and also in the mentioned examples there):

"So project managers must know why their project was selected and how it fits into the organizations strategie plan.They then have to rnake sure the project meets those needs. The business case described in the project charter explains the business need and the analysis used to justify the project. ..."

So, for exam purposes we should assume that "business case" is part of the project charter.



2- The Project Charter includes the PM Name and Authority or the Business Case ?

PMBoK Guide is very clear and specific here (pg. 54):
"If not already assigned, the project manager will be selected. This information is captured in the project charter and stakeholder register. When the project charter is approved, the project becomes officially authorized."

That means, project manager could be assigned earlier (e.g. in the business case or elsewhere) but latest in the project charter and authorization comes with the approved project charter (by project sponsor)..

This is PMI's/PMBoK Guide perspective, like i said. To do a real life example it could be that the team what is doing the business case says (and write into it), well we would like to see Rami Kaibni doing the project for this business case, cause he would be the best for trhis job.
But later on, when project charter is written unfortenatly Rami is not availble, cause he is doing already another important project, so the assigned project manager is changed in the project charter to Markus Klein (just second choice but what should we do?). ;)

Hope this helps.

Regards,

Markus
Hi Markus,

Thanks for your input - I agree with you totally and don't worry, if this happens, I will move aside and you will always be the first choice :D

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