Project Integration Management
Contrary to how many businesses do this, a project charter is a brief two or three page document (at most) that imparts high-level information about the project: The project description, project manager and their authority level, a high-level business case, stakeholders, high-level deliverables list, high-level project risks, defined project objectives, project approval requirements and formal sign off are all part of the project charter. Projects are initiated by someone external to the project such as a sponsor or other management function (e.g. portfolio manager, PMO, VP, etc.)
In one sense, the project charter functions as an excellent executive summary of the project. For the exam, know that a charter is a required element that must be completed and signed off before further project work can begin. The charter elements may include, but are not limited to:
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Project title
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Project manager assigned and authority level
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Business need
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Project justification/business case
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Initial resources pre-assigned
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Stakeholders
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Initial scope and requirements
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Project/product description and deliverables
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Initial constraints and assumptions
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May include S.M.A.R.T. goals (Specific, Measurable, Agreed, Realistic, Time-bound)*
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High level budget estimate
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Sponsor Signature/signoff
Statement of Work
The project SOW is a high-level description of the products or services the project will
create. It is usually created by the customer/sponsor. Fundamental elements of an SOW include:
- Business need
- Product scope description
- Strategic plan
Usually a summary if the work is being performed internally – the detail is developed in
the WBS.
For external services procured, the SOW is called the ’Procurement Statement of Work’
(Details will be addressed in Section 12 on Procurement). In regards to the project charter, the Project Statement of Work is more of a high-level
summary. According to PMI, it is a narrative that describes products or services that are
delivered by the project. (PMBOK® Guide, 6th edition, p. 75). For an internal project,
work is actually detailed in the work breakdown structure (WBS) and the WBS dictionary.
A contractor procurement statement of work is a legal document that requires a legal
review and review by contract administration professionals. Contract statements of work
can run many thousands of pages on a large project, and legally obligates the vendor to
deliver exactly what is in the contract statement of work.
Business Case and Agreements
The business case, in its most simple terms, tells us why the business organization is attempting the project at all. It is usually completed by a business analyst and includes the business need as well as the cost-benefit analysis. PMI states the business case is created due to one or more of the following:
- Market demand
- Organizational need
- Customer request
- Technological advance
- Legal requirement
- Ecological impact
- Social need
An agreement can take the form of a contract, service level agreement (SLA), letter of agreement (LOA), letter of intent (LOI), or a memorandum of understanding (MOU). Contracts are usually employed when the project is undertaken for an external customer
PMP Exam Tip
Know what these terms mean for the exam:
- Sunk costs – what you have spent. Should not be considered when deciding whether to continue with a troubled projectLaw of diminishing returns – the more you put in, the less you get in return
- Working capital – assets minus liabilities; what the company has to invest in projectsDepreciation – know these for the exam
- Straight-line depreciation
- Accelerated depreciation
- Double declining balance
- Sum of the Years
PMP Certification Exam - Project Integration Management - Memory Check
- ___Develop project charter
- ___Develop project management plan
- ___Direct and manage project work
- ___Monitor and control project work
- ___Perform integrated change control
- ___Close project or phase
A. The process of defining, preparing, and coordinating all of the subsidiary plans and integrating them into a comprehensive whole.
B. The process of tracking, reviewing, and reporting project progress against the performance objectives defined in the project management plan
C. The process of developing a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities
D. The process of finalizing all activities across all of the project management process groups
E. The process of leading and performing the work defined in the project management plan and implementing approved changes to achieve the project's objectives
F. The process of reviewing all change requests, approving changes and managing changes to deliverables
Materials in this exam are based on the text,
A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Sixth edition, Project Management Institute, Inc. 2018