IOT PM Guideline
Charter Development - High Complexity
Last Updated: July 31, 2017
Version: 1
IOT PM Guideline
IOT PM Guideline - Charter Development - High Complexity
Introduction
This guide outlines the Indiana Office of Technology PM guidelines for completing a Project Charter for a
project classified as High complexity using the “Project Charter – High Complexity” template, and where
relevant, includes examples to illustrate content.
The Project Charter includes most elements of a preliminary project scope statement, which describes
what is and what is not included in the project. It also helps to control changes to the scope of the
project throughout its duration.
As a comprehensive overview of the project, the project charter allows all stakeholders to reach
agreement and document major aspects of the project such as the objectives, the scope, the
deliverables, and the resources required.
The project manager plays a major role and typically takes the lead in gathering information for and
developing the project charter. The project manager works closely with the project sponsor, who
provides background information for the project (e.g. purpose of the project and linkages to business
needs, strategic priorities, objectives, and outcomes). The project manager also interviews stakeholders
(commonly referred to as a Stakeholder Analysis) and subject matter experts to gain more information
to complete the charter.
This guide supports a template that was developed to highlight all standard elements that should be
covered in the Project Charter to formalize a project. The template can be obtained on the IOT Project
Success Center web site.
This guide also contains a section called "Use of the Project Charter Template" that explains how to
complete each topic covered in the template.
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The Project Charter Based on Project Type
Regardless of the size and type of project, the elements of a project charter are the same, just as the
project management principles remain the same. Although the depth and scope of applying these
processes and principles may change from project to project, the charter framework remains the same.
The project manager is expected to provide a comprehensive overview of the project in the project
charter. The following table lists different classes of projects and suggests some areas to consider when
developing a Project Charter for each complexity level.
Since this guide is specific to High Complexity projects, refer to the High Complexity section of the table;
the other sections are provided for reference only.
Basic Complexity
Project Description
Charter Considerations
Primary goal of these types of projects is to
sustain an existing process or system, typically
does not include new capability or functionality,
and business impact is usually negligible

Charter is optional
Typical project duration: < 3 months with 1-3
resources
Time to develop charter: 2 to 4 hours
Size of charter: 1 page
Sample Projects: Server upgrade, telephony
upgrade, software version update
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IOT PM Guideline - Charter Development - High Complexity
Low Complexity Projects
Project Description
Charter Considerations
These types of projects are usually driven by an
immediate business need within a short
timeframe and scope may involve multiple
systems or agencies but with a clear authority
and a simple governance structure.




Typical project duration: 3 to 6 months with 2-5
resources

Time to develop charter: 8 to 20 hours
Size of charter: 1 to 3 pages

Sample projects: New site setup, new
functionality added to existing system

Usually one or few stakeholders
Assumptions, and constraints should address
potential disruption to current operations
Deliverables should be expressed mostly in
terms of updates to existing product,
service, or result
Cost estimate should include both one-time
and ongoing costs
Risks are more likely associated with
technology than business and should include
technology and implementation risks with a
focus on performance and availability
The roles and responsibilities will typically
include the standard roles
Communication plan should include status
reporting and regular meetings
Medium Complexity Projects
Project Description
Charter Considerations
These types of projects usually involve more than
one group or agency and will include changes to
both systems and business processes requiring a
more complex governance structure,
communication plan and risk management.
Typical project duration: 4 to 9 months with 3-10
resources





Time to develop charter: 16 to 24 hours
Size of charter: 5 to 10 pages
Sample projects: Rollout of technology across
multiple agencies or locations, IOT support in
complex enhancement or new agency system (<
3-4 servers/databases)
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

Business Case section should include cost
savings from change in business process
High level requirements and deliverables
should be concrete and include training and
roll-out plans
Scope should be well defined and indicate
the business processes that are affected
The risks should include more detailed
considerations, especially with regards to
scope, resources and approach
Interdependencies with multiple systems or
departments/agencies and associated risks
should be addressed
The roles and responsibilities might include
additional governance (committee)
Communication plan should address
multiple stakeholders
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High Complexity Projects
Project Description
Charter Considerations
These are complex projects that typically change
fundamentals about the way the business area
works and includes a large amount of new
development/systems. They likely span
organizational entities and involve multiple
stakeholders, and require a complex governance
structure.



Typical project duration: > 6 months with > 5
resources


Time to develop charter: 20 to 40 hours
Size of charter: > 10 pages
Sample projects: Implementation of new
technology across all agencies, IOT support of a
large agency project (>$1M)


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All sections of the document should be
completed with in-depth analysis
Should address high business risk due to
project size; very high change management
implications; and effect of change on the
business. Should also address high
conversion, implementation and
technology risk.
Out of scope items will be important to set
and manage clear expectations
Acceptance criteria should be gathered
from the project sponsors
Deliverables must include a requirements
document, and plans for testing, training
and deployment
Cost and high level requirements may not
be well defined at the beginning of the
project, or may come from an analysis
project
Both the “Project Scope” and "Project
Organization" sections should be the object
of particular attention
The change management plan should be
emphasized
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Project Charter Preparation
This section provides suggested steps to follow to help gather the information necessary to complete
the Project Charter.
Step 1: Gather background information
1. Review the Project Request form for initial background information.
2. If a Risk/Complexity Assessment has not yet been performed for the project, complete this
form. Note that oftentimes, the information necessary for this assessment is the same
information needed to complete the Charter. You may wish to complete the Charter
preparation work prior to completing the assessment.
Step 2: Identify the Project Goals, Objectives and Scope
1. Schedule a meeting with the project requestor and/or sponsor.
2. Confirm the sponsor is ready and willing to perform the duties of a sponsor
3. Identify the goals and objectives by asking some of the following questions:
a. What problem are you trying to solve?
b. How is this problem being addressed today?
c. What strategic goals does the project support?
d. What benefits do you hope to gain?
e. Who will be impacted by this project and how?
f. Are you the sole decision maker, or will we need to establish a steering committee?
g. Where does this project fall in your list of priorities?
h. Are there legislative mandates that are driving this?
i. What alternatives have you considered to achieve the objectives?
j. How will you define success?
i. What must the project/system do
ii. What are the high level requirements
iii. What will be delivered at the end of the project)
k. How will the deliverables be accepted (what criteria will be used)?
l. What dependencies exist?
m. What is the anticipated timeline and what is influencing this timeline?
n. Who do you envision being part of the project team and what would their roles be?
Who are the Subject Matter Experts? What is IOT’s role?
o. Are the resources necessary to implement this project available or will it need to be
contracted out?
p. What is the budget for this initiative? Is it funded?
q. Are there IOT services involved? Are you aware of the cost of these services?
r. Is there anything that others might think is in scope for this project that should be
clearly stated as being out of scope?
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s. Is there anything you know of right now (risks) that could impact the success of this
project?
t. Who all needs to be kept informed of project progress and what is the best mechanism
to communicate with them?
u. What assumptions are you making to support the answers above?
Step 3: Conduct a Stakeholder Analysis
The purpose of this step is to obtain additional background information, better understand each
stakeholder’s interest/stake in the project and determine the best way to manage and communicate
with that stakeholder.
For each stakeholder in the project, create a table that displays the information below:
High
Watch
Keep Satisfied
Actively Manage
Some
Keep on Side
Keep on Side
Keep on Side
Little
Power / Influence
1. Stakeholder name
2. Stake in the project (e.g., Process owner who will implement new business processes, will
operate new system, etc.)
3. Personal objectives for the project – what do they specific want out of the project
4. Impact (Low, Medium, High) – what is their level of impact on the project
5. What do we need from them
6. Perceived attitude / risks
7. Risk if they are not engaged
8. Using the grid below, determine the best management strategy for each stakeholder
General
Communication
Keep Informed
Keep Informed
Little
Some
High
Interest
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Use of the Project Charter Template
This guide explains how to complete the Project Charter Template and gives some insight into the
content expected for each section of the template document.
At a minimum, every charter must include the following sections.
•
Project Overview
•
Project Scope
•
Project Organization
All other sections will be completed depending on the type and complexity of the project, but all topics
with each section should be covered at some level in every charter.
You may wish to add spots throughout the document for the client to initial if there are specific areas or
information you want them to pay particular attention to. This is probably most relevant in the scope
(in and out of scope) and cost sections.
Title Page
The content on the Title Page is driven by the Document Properties. To update the properties, navigate
to the File menu and select Document Properties.





The first line is the “Project” property on the Advanced/Custom tab
The second line is the “Client” property on the Advanced/Custom tab
The third (green) line is the “Title” property
Last updated is driven from the last saved date
The version number is the “Version” property on the Advanced/Custom tab
Update each property and click Update. To refresh the property values in your document, select the
text and press the F9 key. The properties in the header and footer can be updated by selecting the Print
Preview.
Executive Summary
This section is usually complied after the other sections of the document are completed.
In this section describe at a high level the details of the project. The purpose of this section is for
executives who do not have the time to read the entire project charter. They should be able to read this
section and gain an understanding about the project (at a high level).
•
•
•
•
Explain why the project is needed.
Explain the project scope.
Explain when the project is planned to start, how long it will take and how much it will cost.
Describe who has sponsorship on the project (the Executive Sponsor, the Project Sponsor)
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Project Overview
This section will include background information, the business case and identify any related initiatives or
dependencies.
Background
In this section include all background information that will explain how this project came about. This is
where the problem can be described in detail.
Business Case
The Business Case justifies the project.
Business Need & Objectives
The business case begins with outlining the core aspects of the business environment which
have derived the need for the project. Objectives should be clearly stated and measurable; you
must be able to know when you have fulfilled each objective. Some people refer to these as
SMART (Specific, Measurable, Achievable, Realistic, Time-Bound). It might be good to number
your objectives so they can be referenced later in the document.
Some sample objectives include:



Upgrade the helpdesk telephone system by December 31 to achieve average client wait
times of no more than two minutes
Reduce the number of complaint calls received about the help desk system by half
within six months of the project's closure
Reduce the number of support hours by 15% over the next year
Cost/Benefit Analysis
When describing the benefits of the project, include both tangible and intangible and consider
the following areas: financial, operational, customers. Tangible and intangible costs should also
be considered and should include personnel, physical (hardware, equipment, facilities) and
organizational (downtime, short term loss of productivity, etc.). Costs should take into account
one time or start-up costs as well as ongoing maintenance/support. The Cost section will be the
budget by which the project will be measured.
Below is a sample table that might be useful in summarizing your analysis:
Expense Item
Cost Low
Cost Mid
Cost High
Software
Equipment
Professional Services
TOTALS
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0
0
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Benefit Item
One Time Savings
Annual Savings
Total
Related Initiatives & Dependencies
This section is optional. If there are other projects or initiatives that could impact your project, or if
other projects are dependent on your project, list each of these in this section.
Project Scope
This is the most important section of the charter and must be completed for every project.
Scope Statement
This section is required for mid to high complexity projects. Project scope defines the boundaries of a
project. It not only defines what you are doing, but it sets limits for what will not be done as part of the
project. Scope answers questions including what will be done, what won’t be done, and what the result
will look like. It also includes the areas of the organization that will be impacted by the project. This
section is usually presented in paragraph form and the remaining sections typically list the details.
High Level Requirements
Describe the high level requirements for the project. For example:
The new system must include the following:



Ability to allow both internal and external users to access the application without downloading
any software
Ability to interface with the existing data warehouse application
Ability to incorporate automated routing and notifications based on business rules
Deliverables
This section identifies the project deliverables that support each objective of the project. Ideally, each
deliverable is listed with the specific goal/objective it is intended to meet, and includes a description of
that deliverable. All these deliverables should be in your project plan and include the tasks required to
complete the deliverable, including client review/acceptance of the deliverable.
Below is a table that might be useful to present your deliverables:
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Objective
Deliverable
Description
Acceptance Criteria
Success/Acceptance Criteria
In this section, list the criteria that will be used to signify the successful completion of the project. This
should be over and above the standard acceptance criteria in the project management framework which
includes the following (although you may wish to repeat these here if desired):



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
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Client acceptance of all deliverables
Signature approval on the Project Closure Criteria checklist
Implementation of all approved requirements
Implementation of all approved changes
Resolution of all project issues
Attendance at the Project Closure meeting
Project Approach and Timeline
This section is required for mid to high complexity projects. Describe how you plan to implement the
project. For example, will all parts of the project be rolled out at once or will it be incremental? What
will be included in each release? Also describe what the high level timeline/schedule will be to plan,
design, develop and deploy the project. Generally, by when do you expect this project to be finished?
This information is typically presented in paragraph form to summarize the information and in tabular or
Gantt chart format to graphically depict it. Excel and MS Project are common tools to compile this
information.
Assumptions & Constraints
This section is extremely important to the success of the project. Be sure to state all assumptions that
either the client or you are making about the project. If you made assumptions while estimating the
project, include these here. If there are technical assumptions, include these as well. Don’t be afraid to
have a long list. It’s better to get these out in the open so you can discuss them with your customer.
Also in this section, list all known schedule constraints. If your customer tells you that the solution
cannot be implemented during the month of March due to high-volume transactions, then state this.
This is typically presented in bullet point format.
Risks and Issues
Any known risks and issues at the time of this charter should be listed here. It should also include the
probability (High, Medium, Low) and impact (High, Medium, Low) and how the team plans to mitigate
against these risks.
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The table below might be useful to present this information:
Risk/Issue
Probability
Impact
Mitigation Strategy
Out of Scope
This section is also very important. Some people say it is more important to state what is NOT in scope
than what is in scope. If items were discussed during the Initiating Phase that ultimately were not
included in the scope, list them in this section.
This list is typically presented in bullet point format.
Project Organization
The project organization section describes how the project will be managed.
The charter author may wish to refer to external documents that cover the project organization topics.
For example, separate documents may be used to track roles & responsibilities, team members, and the
communication plan. This is acceptable as long as each of the topics is documented.
Roles and Responsibilities
The goal of this section is to provide consensus that clarifies “who is to do what, with whom and when”
to avoid confusion and set expectations. This can be accomplished through a simple
roles/responsibilities chart or a RACI matrix. Template of both are provided with the template and can
be tailored to the specific needs of the organization. Select the best template for the type of project.
Project Team Members
If you know the team members, identify them in this section. Note in this section that this is just an
initial list and changes to the team will be reflected through change request (if significant) and the must
up to date list will be reflected on the project tracking dashboard. In many cases, the charts in the Roles
and Responsibilities section is combined with the team members. A reference to an external tracking
spreadsheet may also be used for this section.
Communication Plan
The communication plan should be tailored to the project size and team composition. It should be
driven by project management best practices as well as communication styles of the team and sponsors.
A sample plan is included in the template. Note that it is just a sample and should be tailored to meet
the needs of the specific project. In addition, this plan may be tracked separately from the charter. If
this is the case, a reference to this document should be included in the charter.
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Project Management Plan
By default, we will refer to the IOT Project Management Framework standard Project Management Plan
rather than listing standard boilerplate text. The standard Project Management Plan covers how IOT
manages the following:





Project Management
Risk Management
Change & Issue Management
Quality Management
Communication Management
If there are deviations to this standard plan, they should be highlighted here. In many cases, you may
wish to have separate documents outlining how each of the above topics will be managed.
Stakeholders & Approvals
Key Stakeholders
In the table provided in this section, list all key stakeholders. The project manager (or charter author)
should ensure all stakeholders have had an opportunity to provide input into this charter and they have
reviewed the final version of the charter before it is sent to the approvers for signature. Your key
stakeholders should include anyone who is a primary member of the implementation team or will be
impacted by the project from the business area. The best way to identify these stakeholders is to ask
the sponsor(s) for a list of people who should be included with the project. This should have been
accomplished with the Stakeholder Analysis performed before the Charter development effort.
Approval
The signature section contains the standard list of stakeholders who must sign the charter. If the
Executive Sponsor, Project Sponsor or Fiscal Agent overlap, these may be combined into a single line.
Any IOT director with resources on the project must also sign the charter. Copy the signature line if
there is more than one IOT director. In addition, the Project Success Center Manager should also
approve the document. The Project Success Center Manager should have a chance to review the
charter and provide feedback prior to it be submitted to any approvers.
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