Project Charter Template

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Example of the Project Charter for change management projects in IT environment


  • 1. 2008 Organizational ChangeCharter TemplateAuthor:Company:4/29/2008

2. Organizational Change Charter 2008 Index Page Nr 1 Document change history 2 Introduction 2.1 Purpose 2.2 Background to the project 3.Contextual framework for organizational change management (OCM) 3.1 Approach 3.2 The case for OCM 3.3 OCM: Final deliverable and milestones 4.OCM charter elements 4.1 OCM team mission and key relationships 4.2 Communication charter 4.3 Sponsor and leadership charter 4.4 Organization optimization charter 5.Limits and exclusions 6.OCM organizational arrangements 7.Conclusion ERP ImplementationPage2 3. Organizational Change Charter 2008 1Document change history Version DateAuthor Description of changes 1.01/5/2008PM de KockFirst Draft 2.IntroductionERP ImplementationPage3 4. Organizational Change Charter 2008 2.1 PurposeThis document outlines the approach to, mission and guidelines for the planning and implementation of the Organization Change Management (OCM) element of the ERP implementation at XXX. The document provides background to the project, the OCM team mission and key relationships, as well as the charters for the following: Communication Leader and sponsorship Organization optimization The document concludes with an overview of the potential limitations, assumptions and OCM organizational arrangements. The above aspects are highlighted in more detail in the paragraphs that follow. 2.2 Background to the projectXXX took a decision to proceed with the implementation of an ERP system against the background of the following key needs: Following the decision to proceed, a tender process was followed and relevant implementation partners, as well as additional resources mobilized. The project is currently in the preparation phase and as such one of the key outputs is the drafting of a charter for OCM that will provide the basis for further action in this regard. The paragraphs that follow highlight this in more detail. ERP ImplementationPage4 5. Organizational Change Charter 20083.Contextual framework for organizational change management (OCM) 3.1 ApproachThe change management component of ERP implementations are increasingly regarded as a strategic imperative to project success. Research and benchmarking shows that where technical delivery is not supported through OCM, the inevitable result is lack of ownership, capacity and under utilization of the system. However, if OCM is over emphasized at the cost of technical delivery, the result is often a loss of credibility, mistrust between the implementation team members and schedule delays. OCM is consequently not an end in itself but an essential component in the provision of an integrated business solution.In terms of the above the key elements in achieving success in delivering OCM are as follows:Managing resistance to change, thereby enabling adoption of newprocesses, procedures, systems, roles and structures in the shortestpossible time In addition to create ownership of the solution, thus moving theorganization to take co-responsibility for the successful implementationand maintenance of the systemAgainst the background of the above the following organizational leverage points are identified and utilized to facilitate adoption and ownership in an effective and efficient fashion:Leadership and sponsorship Governance and compliance User competence in respect of the new system Performance management Organization design as well as role clarification Ensuring attraction and retention of a pool of competent users; and CommunicationThe above paragraphs provide a clarification of the major components of the OCM effort, and this provides the background for consideration of the business case, an aspect that will be discussed in the next paragraph ERP Implementation Page5 6. Organizational Change Charter 20083.2 The case for OCMWhile anecdotal evidence alludes to the need to address aspects related to human commitment and adoption, several studies are currently confirming the strategic nature of effective OCM. In this regard the following should be considered:A recent study by Deloitte, of 62 ERP implementations, show thatexecutives in these business-organizations attribute no less than 60% ofimplementation success to addressing so called people issues successfully A study of 118 SAP implementations, by the Australian SAP User Group(SAUG) show conclusively that where OCM is implemented successfully,SAP R/3 installations are delivered well within scope and lower thanbudget In addition to the above, research conducted by the Corporate LeadershipCouncil, Towers Perrin and Gallup also show that employees who are fullyengaged to their work situation tend to improve their discretionary effortsignificantly, while their retention increases dramatically (up to 80% asindicated by the Corporate Leadership Council)The above provides a clear case for OCM, and highlights the need to consider what the final product/outcome of the change effort should be. This is outlined in the paragraphs that follow.3.3 OCM final deliverable and milestonesAs indicated previously, OCM interventions are not an end in itself. It is indeed aimed at the delivery of an integrated business solution. In terms of this the final deliverable of OCM should consequently be as follows:An implemented support package that will ensure early adoption of thenew system, and ownership for its successful implementation andmaintenance. This is measured through the following success factors (seeOCM Dashboard): o Common orientationo Ability of key role playerso Level of ownershipo Uniform perceptiono Felt resultso SustainabilityThe milestones that need to be achieved to deliver the above are outlined in Table 3.3 (a) ERP ImplementationPage6 7. Organizational Change Charter 2008Table 3.3 (a) OCM Milestones 4.OCM charter elements4.1 OCM team mission and key relationshipsThe OCM team is responsible for the identification of people management and organizational design risks that could retard the implementation of the system.The key relationships that need to be managed in the process of executing their responsibilities are outlined in Diagram 4.1 (a) ERP ImplementationPage7 8. Organizational Change Charter 2008Diagram 4.1 (a) Key Relationships Diagram 4.1 (a) above provides a broad overview of the major role players in the implementation of the project. It indicates the relative interest as well as influence in the project and based on this, provide a broad engagement strategy. This broad strategy will be utilized and further expanded upon in the detailed stakeholder analysis and sponsorship approach to be developed as part of the OCM component of the project. 4.2 Communication charter 4.2.1 MissionThe OCM team is responsible for the identification of communication needs, formulation of key messages and utilization of innovative media and channels to communicate to the stakeholders in the project.4.2.2 Guiding principlesCommunication will be short, to the point and clear A central message (the elevator speech) will be created to ensure thatall efforts are linked to the rationale, and strategic alignment of theproject ERP ImplementationPage8 9. Organizational Change Charter 2008Reporting as well as action planning will clearly state: o Who, what, where, when and whyo Main goals and results to be achievedo Problems and potential solutionso Benefits of approach or intended actionCommunication will in all instances be aimed to engage the readerthrough the use of metaphors, relevant picture art and emphasis ofspecific, strategic issues As far as possible will the use of the following be avoided incommunication to the target population (unless clarified appropriately):o Acronyms, abbreviations, technical jargon, flowery adjectives,clichs and quoteso Aspects or processes not relevant to people outside of the projecto General or over-used wordso Overstating the expected outcomes of the project4.2.3 Critical success factorsThe success of the communication element of the project is dependent on the following:Communicating with the end in mind (strategic alignment and delivery) Timely and appropriate targeting of messages Creating an acceptable level of understanding for the content and contextof the project Enablement of the target population to participate, take co-responsibilityfor benefit realization and effectively influencing decision making4.3 Leader and sponsorship charter 4.3.1 MissionThe OCM team is responsible to enable change leaders, executive management and sponsors to play their rightful role in governance and the creation of a psychological climate for optimal benefit realization. This is achieved through the implementation of:An appropriate sponsorship model An effective governance process The provision of communication advice and support The development of change agents to create and maintain impetus aimed ERP ImplementationPage9 10. Organizational Change Charter 2008 at delivery of an integrated business solution4.3.2 Guiding principlesThe leader and sponsorship support, provided by the OCM team will take place within the framework of the following guidelines:Clear identification of key stakeholders to the project Development of appropriate stakeholder engagement strategies Assessment of the readiness of the organization to implement theenvisaged changes The development and implementation of appropriate strategies to dealwith resistance The implementation of effective strategies to deal with capacity issues,including role clarification, attraction and retention of skilled people(where appropriate) The identification of people management risks as result ofimplementation, as well as strategies to mitigate such risks4.3.3 Critical success factorsFor the leader and sponsorship element of the project to be successful the following should be enabled:Strong executive sponsorship Strong project leadership Strong business process ownership4.4 Organizational optimization charter 4