Seema Sonkiya: Project Manager Role in Development of Project Charter

Article based on PMBOK 4 recommendation of project manager role in project charter.

Project Charter is one of the most important documents for a project. It is developed to establish an agreement or partnership between technical and business organizations. Technical organization delivers product, service or result which is requested by business organization. Project cannot be started from planning processes until project charter formally approved.

Project Sponsor is accountable for the success of the development of project charter, this information really confuse some professionals (I seen even certified professionals confuse with the fact) as they misunderstand that meaning of this truth is that project manager is less or not involved during the process. Project manager may or may not heavily involve during project charter development. Here I am trying to put forth the role of project manager during development of project charter.

Firstly, here is a need to understand difference between accountability and responsibility. Responsibility may be shared between members involved but accountability is not shared. Accountability may be defined as ultimate responsibility.  Accountable person is ultimate answerable for the correct and thorough completion of a process or task and the person who allot or delegate the work to those who are responsible.

Project manager is accountable for the success of the project during planning, execution, monitoring & controlling and phase initiation (note project initiation is not included) processes. Successful accountable person need clear authority to use company resources, make decisions, expend fund, or give approvals. This authority is established during development of project charter. Clearly a person who is external to the project is accountable to the success of ‘Develop Project Charter’ process who may delegate the responsibility to the project manager.

It is necessary to establish appropriate authority levels based on project and product scope, needed budget and range of stakeholders involved. Project initiation is the process where all of the project aspects are explored in high level form that is also needed to analyze and to establish appropriate authority levels for the project manager like authority to select team members and their use for the project work, signature authority for the funds and ultimate approval of deliverables before sending to the customer.

Project Manager should be able to know project end date and project budget always and this is included in project charter. Whenever project end date and budget changes, (even in planning, monitoring and controlling processes) its duty of project sponsor to update project charter and authority of project manager updated accordingly.

So if project sponsor is accountable for the development and updating of project charter then what is the role of project manager and other team members if involved?  Here are some details:

1.       All of the aspects of the project are explored in high level form, a team is needed and project sponsor may form the same and includes project manager and other identified project team members if needed based on complexity of the project. If team is formed then success responsibility is shared with all of the team members and ultimate responsibility lies with project sponsor who is senior to project manager and appropriate at the level of project funding.

2.       Project Sponsor either develops project charter or may ask project manager to create it, who is identified to lead the project. Project manager inputs are very crucial during development of project charter. Help of project manager is needed because he/she is the person who will direct the project and it is recommended to involve him/her to explore project particulars needed to identify and establish authority of project manager.

3.       As authority level of project manager is established so it is obvious that he/she cannot be accountable for the success of develop project charter process. How project manager authorize himself or herself?

In conclusion, project charter is authorized by someone external to the project and it should not be confused with the involvement of project manager.

Seema Sonkiya