What is a Project Charter and Why is it important?

The project charter is a collection of documents that, together, establish the foundation of a SAP implementation project by defining its dimensions and completion criteria. Additionally, the charter specifies required project management, control structures, and other important factors.

The project charter is a collaborative effort between the project manager and the project sponsor. Together, they define a common problem and solution. The project represents an agreement on and commitment to the deliverable of the project, as well as the time constraints, resources and standards of the project. The project charter is essential for managing the expectations of the project’s participants.

Project Charter

The charter is a dynamic document that may change throughout the project’s duration and it includes the following,

1. Mission statement
2. Purpose of Implementing SAP
3. Goals and objectives
4. Scope
5. Critical success factors
6. High-level project plan
7. Organization and staffing requirements
8. Resource allocation
9. Risk Assessment
10. One-line slogan for SAP Project

The creation of the project charter must be a formal process. For the sponsor, it thereby becomes a process of project justification and creation of internal support. Once the charter is ready, it should be reviewed by various groups in the sponsor environment, including below,

1. Information systems management
2. User management
3. The steering committee

However, to the extent possible, all of these groups should participate in the creation of the charter, so that no surprises arise during final review.

Here the general proposes initial Project Charter Document which shall be updated by the company,

1. Mission Statement, To Create and implement an improved and integrated, multi-access, team-based data management guiding in business process.

2. Purpose of Implementing SAP, The purpose of SAP R/3 project is to develop and Implement a best business practices and improve the operational efficiency of the organization.

3. Goals and Objectives refer to more details than the mission statement. In this initial phase, it is crucial to identify why the project is taking place.

It is crucial, at this stage, to evaluate and formulate the issues at hand, and explain how the project can remedy the situation, as specifically as possible. The project’s success or failure will be judged against the project objectives.

When identifying the scope of the SAP implementation project, following internal and external factors that are driving the business are identified and objectives defined:

What are the business drivers (for example, competition, customers, government or regulation, suppliers) for installing SAP?

What is the driving force for moving from the status quo? (People will resist change since there is comfort in the status quo.)

What is the strategic significance of the project?

Also See: Successful SAP ERP Implementation Partner Selection