Download - NG BB 06 Project Charter

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National GuardBlack Belt Training

Module 06

Project Charter

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CPI Roadmap – Define

Note: Activities and tools vary by project. Lists provided here are not necessarily all-inclusive.

TOOLS

•Project Charter

•Project Selection Tools

•Value Stream Map

•Various Financial Analysis

•Effective Meeting Skills

•Stakeholder Analysis

•Communication Plan

•SIPOC Map

•High-Level Process Map

•Project Management Tools

•VOC and Kano Analysis

•RACI and Quad Charts

•Strategic Alignment

ACTIVITIES• Identify Problem

• Validate Problem Statement

• Establish Strategic Alignment

• Gather Voice of the Customer & Business

• Create Goal Statement

• Validate Business Case

• Determine Project Scope

• Select and Launch Team

• Develop Project Timeline

• Create Communication Plan

• Prepare High-Level Process Map / SIPOC

• Complete Define Tollgate

1.Validate the

Problem

4. Determine Root

Cause

3. Set Improvement

Targets

5. Develop Counter-

Measures

6. See Counter-MeasuresThrough

2. IdentifyPerformance

Gaps

7. Confirm Results

& Process

8. StandardizeSuccessfulProcesses

Define Measure Analyze ControlImprove

8-STEP PROCESS

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Learning Objectives

Apply the elements of project chartering to a CPI project

Understand the roles and responsibilities associated with chartering a CPI project

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Selecting CPI Projects

Identify value levers in the organization

• Strategic

• Financial

• Customer

• Operational (Process)

Prioritize value levers

Score each project as High / Med / Low for benefit and effort

Fill in benefit / effort matrix

Review plotted results

Select highest priority opportunities for further analysis

Assign opportunities to project sponsors for project definition

Complete draft Project Charters

Evaluate projects using evaluation criteria

Update benefit / effort matrix

Review plotted results

Prioritize projects

Schedule project launches based on resource availability

Identify Value Levers

1Identify Project Opportunities

2Screen Initial List of Opportunities

3Scope and Define Projects

4Prioritize List of Defined Projects

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Translate value levers into opportunity areas

Translate opportunity areas into project ideas

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Selecting the Best Project

Look for an existing process within your area that is not meeting customer expectations

Think about the things that cause “pain” for you or your organization

Typically projects fall into 2 types:

Primary focus on doing things faster with an overall goal of reducing cycle time

Primary focus on doing things better with an overall goal of reducing errors

Ensure there is strategic alignment

Tie the project goals to one or more of the strategic goals for your organization

Properly scope the project

Do not try to “boil the ocean”

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Project Chartering

The charter defines the team‟s mission

It includes the following elements:

Opportunity or Problem Statement

Business Case

Goal Statement

Project Scope

Project Timeline)

Team Selection

The Project Charter does NOT solve the problem

It is a living document that will change over time

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Who Develops the Project Charter?

The Project Sponsor is responsible and accountable for developing a draft Project Charter, with assistance from:

Deployment Director, who might start the process of filling out the Project Charter

Resource/Financial Manager

Take the lead in developing cost data

Buy-in

Other Executive Leadership

Black Belt facilitator and potential team members (if possible)

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Project ScopeBusiness Impact

Goal Statement

• What is the „Current State‟?

• What “pain” are we or our clients experiencing?

• What is wrong or not working?

• What is the desired „Future State‟?

• What are our improvement objectives and targets?

• Specifically, what is going to be better?

• How will success be measured? What specific parameters will be measured?

• What is the value (strategic and/or financial) of closing the gap between „Current‟ and „Future‟ states?

• What is the financial benefit – the quantified value of the project ($$$)?

• What are the boundaries of the initiative (start and end points of the process or parts of a system)?

• Is the scope reasonable?

• What is not within scope?

Benefits are proportional to

scope

Scoping can change what measurements need to be

tracked

Scope must address the bulk of the

problem identified

How Does the Charter Develop?

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Project Charter Elements

Business Impact

• Why should we do this? What is the benefit?

• How does this project align with the business strategy?

• What is the quantified value of the project ($$$)?

Project Scope


• What authority do we have?



• What “pain” are we or our clients experiencing?


• Why do we think we can generate the value proposition described in the Business Impact?

Goal Statement




Team Selection

• Who are the team members?

• What is their role?

• How much of their time will be dedicated to the project?

Project Plan / Timeline

• How are we going to get this done?

• When are we going to complete the work?

• What are the major milestones (tollgates)?

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Project CharterProblem Statement:

Business Case:

Goal Statement:

Unit:

Defect:

Customer Specifications:

Process Start:

Process Stop:

Scope:

Project TimelinePhase Start Stop Status

Define mm/dd/yy mm/dd/yy

Measure mm/dd/yy mm/dd/yy

Analyze mm/dd/yy mm/dd/yy

Improve mm/dd/yy mm/dd/yy

Control mm/dd/yy mm/dd/yy

Take away

message goes

here

(impact of

problem)

Team Members

Name Role Affiliation DACI

Black Belt Driver

Master Black Belt Driver

Project Sponsor Approver

Process Owner Approver

Required Deliverable

Project Charter Template

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Project Scope




Goal Statement




Team Selection


• What are their roles?


Project Timeline




Problem Statement

Business Impact



• What is the quantified benefit of the project ($$$)?


• What “pain” are we or our customers experiencing?


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Building a Problem Statement

An Opportunity or Problem Statement:

Contains information that gives specificity to the issue

Quantifies the “pain” caused by the current problem

What is happening? (Example: Increase in cycle time)

When did the problem start? (Example: starting in FY03)

Where is the occurrence? (Example: at all locations)

What is the magnitude of the problem? (Example: average of 21 days to process an Interim Flight Clearance)

Problem Statement Template:

The [customer] expects [metric (central tendency/spread)] and the current

process is operating at [metric (central tendency/spread)]. This (What) began

(When) at (Where).

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Problem Statement Examples

Bad Problem Statement Example:

The CAC, Common Access Card, issuing process needs to be improved. We‟ve received numerous complaints from DA Civilians and Soldiers.

Good Problem Statement Example:The Civilians and Soldiers expect the CAC issuing process lead time to ne less than 2 hours and the current

process lead time has averaged 6.2 hours. The CAC process has shown a steady increase in lead time since November 2001 at the Pentagon.

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Exercise: Create a Problem Statement

Objective

Create a Problem Statement for your project

Instructions:

Follow the problem statement template

Share with others and get feedback

Time = 10 Minutes

Problem Statement Template:

The [customer] expects [metric (central tendency/spread)] and the current

process is operating at [metric (central tendency/spread)]. This (What) began

(When) at (Where).

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Project Scope




Goal Statement




Team Selection




Project Timeline




Goal Statement

Business Impact







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Goal Statement Objectives

Specifically, what are we going to do and deliver?

What are our improvement objectives and targets?

How will success be measured? What specific parameters will be measured?

Goal Statement Template:

[Action verb] [metric] from

[baseline] to [target]

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How to Establish a Goal Statement

Several Options:

Meeting or exceeding customer requirements, established through the VOC process

Meeting or exceeding business requirements, established through the VOB process (i.e. requirements of the Process Owner)

Comparing performance and/or benchmarking best practice performance of others

A portion of the process „entitlement‟

Entitlement is the historical best performance of the process

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Bad Goal Statement Examples

Reduce cost of the process

Establish a good CAC issuing process

Develop an automated CAC issuing system

Implement kiosk to create CACs.

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Problem Statement:

The Civilians and Soldiers expect the CAC issuing process lead time to be less than 2 hours and the current process lead time has averaged 6.2 hours. The CAC process has shown a steady increase in lead time since November 2001 at the Pentagon.

Goal Statement:

Reduce the average lead time for issuing CACs from 6.2 hours to less than 2 hours.

Good Goal Statement Example

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Exercise: Create a Goal Statement

Objective

Create a Goal Statement for your project

Instructions:

Follow the goal statement template


Time = 10 Minutes

Goal Statement Template:

[Action verb] [metric] from [baseline] to [target]

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Project Scope




Goal Statement




Team Selection




Project Timeline




Business Impact

Business Impact







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Business Impact Objectives

Define:

A clear and common understanding of “why we should do the project”

How the project links to and supports the strategic objectives of the organization?

What is the benefit of doing the project in financial and operational terms (expense reduction, productivity increases, cost avoidance, non-financial)? - more on this later!

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Exercise: Create a Business Case

Objective

Create a Business Case for your project

Instructions:

Why is your project important? How does your project align with the strategic objectives of your organization?


Time = 10 Minutes

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Project Scope




Goal Statement




Team Selection




Project Timeline




Project Scope

Business Impact







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Project Scope Objectives

Define:

What are the boundaries of the project (start and end steps of the process)? – SIPOC will help here!

What authority do we have?

What is not within scope?

Commandments?

“Thou shalt” or “Thou shalt nots” of the project

Monuments?

Things that can‟t be moved/changed (i.e. IT system)

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Elements of a Scope Statement

Scope-In

Areas that will be addressed

Consider applying the 80/20 rule to narrow the scope

Example: The project will address all standard Interim Flight Clearances at all sites.

Scope-Out

Specific areas that will not be addressed

Aspects of the problem

Areas of the business / physical locations

Related issues that can be addressed later

Example: The project will not address Special Flight Clearances or Permanent Flight Clearances.

A Scope Statement defines the boundaries of the project.

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Relationship to Other Charter Elements

Business Impact

Benefits are proportional to scope

Problem Statement

Scope must address the bulk of the problem identified

Consider using Pareto analysis to narrow the scope

Goal Statement

Scoping can change what measurements you want to use / track

Project Plan

Consider splitting projects into pieces when effort is too high –covered in the Multi-Generational Project Planning module

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Project Scope




Goal Statement




Team Selection




Project Timeline




Problem Timeline and Team Selection

Business Impact







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Project Timeline - Guidelines

RIE (Rapid Improvement Event)

Define – 1 week

Measure – usually 1-3 weeks, could be longer depending on process

Analyze – during RIE (3-5 days)

Improve – might be during RIE, pilot might follow RIE

Control – 1 week-1 month depending on process

DMAIC and Other 8-Step Projects

Define – 1 week

Measure – usually 1-4 weeks, could be longer depending on process

Analyze – 1-4 weeks, usually on the shorter side

Improve – 2-6 weeks

Control – 1 week-1 month depending on process

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Key Elements of Team Selection

Extended Team

• Supporting skills

• “Pull-in” as needed

Core Team

Critical skills

3-5 team members

Black Belt leader

How many team members?

Which functions or skills are required (identify specific individuals, if necessary or possible)?

Include customers and suppliers

What percentage of their time is required?

Too many team members is difficult to manage and could also be an early indicator of a scope issue

Too few team members will reduce the breadth of support for the change

Also include a resource/financial manager to validate the financial and operational benefits

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Project Scope




Goal Statement




Team Selection




Project Timeline




Project Charter Elements

Business Impact







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Project Charter Checklist

Have all of the questions been answered for each element of the Project Charter?

Will the Black Belt facilitator clearly understand:

What is to be improved?

By when?

With what resources?

Measured by what results?

Does the Sponsor clearly understand:

Whether the project is “do-able”?

Worth doing?

A high enough priority to dedicate resources?

How to measure progress and the conclusion?

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Project Charter Evaluation

Another way to evaluate a Charter's completeness is though an evaluation methodology called “SMART”

Use SMART to ensure that the charter is effective and thorough

Specific• Does it address a real problem?

Measurable• Are we able to measure the problem,

establish a baseline, and set targets for improvement?

Attainable• Is the goal achievable? Is the project

completion date realistic?

Relevant• Does it relate to a strategic objective?

Time Bound• Have we set a date for completion?

S.M.A.R.T.

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Project CharterProblem Statement:

Business Case:

Goal Statement:

Unit:

Defect:

Customer Specifications:

Process Start:

Process Stop:

Scope:

Project TimelinePhase Start Stop Status

Define

Measure

Analyze

Improve

Control

Take away

message goes

here

(impact of

problem)

Team Members

Name Role Affiliation DACI

Black Belt Driver





Project Charter: Name of Your Project

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Team MembersName Role Affiliation DACI

Black Belt Driver




Contributor

Contributor

Contributor

Contributor

Inform

Inform

Inform

Inform


Cross Functional Team

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Exercise: Prepare a Project Charter

Instructions

Using your own project, begin to complete the Project Charter template, including:

Problem Statement

Business Impact

Goal Statement and Metrics

Project Scope

Project Timeline

Team Leadership

For any sections that have issues, formulate specific questions to ask to clarify with your project sponsor next week

Time = 20 Minutes

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Takeaways

Now you should be able to:

Develop a problem statement and the other elements of a good project charter

Assess the quality of all elements of a good project charter

Describe the roles and responsibilities associated with the CPI project chartering process

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What other comments or questions

do you have?

Download - NG BB 06 Project Charter

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