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National Guard
Black Belt Training
Module 06
Project Charter
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CPI Roadmap – Define
8-STEP PROCESS
6. See
1.Validate 2. Identify 3. Set 4. Determine 5. Develop 7. Confirm 8. Standardize
Counter-
the Performance Improvement Root Counter- Results Successful
Measures
Problem Gaps Targets Cause Measures & Process Processes
Through
Define Measure Analyze Improve Control
ACTIVITIES TOOLS
• Identify Problem •Project Charter
• Validate Problem Statement •Project Selection Tools
• Establish Strategic Alignment •Value Stream Map
• Gather Voice of the Customer & Business •Various Financial Analysis
• Create Goal Statement •Effective Meeting Skills
• Validate Business Case •Stakeholder Analysis
• Determine Project Scope •Communication Plan
• Select and Launch Team •SIPOC Map
• Develop Project Timeline •High-Level Process Map
• Create Communication Plan •Project Management Tools
• Prepare High-Level Process Map / SIPOC •VOC and Kano Analysis
• Complete Define Tollgate •RACI and Quad Charts
•Strategic Alignment
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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
1 Identify Value
2 Identify Project
3 Screen Initial List
4 Scope and
5 Prioritize List of
Levers Opportunities of Opportunities Define Projects Defined Projects
 Identify value levers in  Translate value levers  Score each project as  Assign opportunities to  Evaluate projects using
the organization into opportunity areas High / Med / Low for project sponsors for evaluation criteria
• Strategic  Translate opportunity benefit and effort project definition  Update benefit / effort
• Financial areas into project ideas  Fill in benefit / effort  Complete draft Project matrix
• Customer matrix Charters  Review plotted results
• Operational (Process)  Review plotted results  Prioritize projects
 Prioritize value levers  Select highest priority  Schedule project
opportunities for launches based on
further analysis resource availability
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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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How Does the Charter Develop?
Scope must address Scoping can change what Benefits are
the bulk of the measurements need to be proportional to
problem identified tracked scope
Opportunity
Goal Business
or Problem Project Scope
Statement Impact
Statement
• What is the „Current • What is the desired • What is the value • What are the boundaries
State‟? „Future State‟? (strategic and/or of the initiative (start and
• What “pain” are we or • What are our financial) of closing the end points of the process
our clients experiencing? improvement objectives gap between „Current‟ or parts of a system)?
and targets? and „Future‟ states? • Is the scope reasonable?
• What is wrong or not
working? • Specifically, what is going • What is the financial • What is not within scope?
to be better? benefit – the quantified
value of the project
• How will success be
($$$)?
measured? What specific
parameters will be
measured?
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Project Charter Elements
Business Impact Opportunity or Problem Statement
• Why should we do this? What is the benefit? • What “pain” are we or our clients experiencing?
• How does this project align with the business strategy? • What is wrong or not working?
• What is the quantified value of the project ($$$)? • Why do we think we can generate the value proposition
described in the Business Impact?
Goal Statement Project Scope
• What are our improvement objectives and targets? • What are the boundaries of the initiative (start and end
points of the process or parts of a system)?
• Specifically, what is going to be better?
• What authority do we have?
• How will success be measured? What specific
parameters will be measured? • What is not within scope?
Project Plan / Timeline Team Selection
• How are we going to get this done? • Who are the team members?
• When are we going to complete the work? • What is their role?
• What are the major milestones (tollgates)? • How much of their time will be dedicated to the
project?
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Project Charter Template
Team Members
Name Role Affiliation DACI
Black Belt Driver
Master Black Belt Driver
Take away
Project Sponsor Approver
message goes
Process Owner Approver
here
Project Charter (impact of
Problem problem)
Statement:
Business Case:
Project Timeline
Goal Statement: Phase Start Stop Status
Unit: Define mm/dd/yy mm/dd/yy
Defect: Measure mm/dd/yy mm/dd/yy
Customer Analyze mm/dd/yy mm/dd/yy
Specifications:
Improve mm/dd/yy mm/dd/yy
Process Start:
Control mm/dd/yy mm/dd/yy
Process Stop:
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Problem Statement
Opportunity or Problem Statement Business Impact
• What “pain” are we or our customers experiencing? • Why should we do this? What is the benefit?
• What is wrong or not working? • How does this project align with the business strategy?
• What is the quantified benefit of the project ($$$)?
Goal Statement Project Scope
• What are our improvement objectives and targets? • What are the boundaries of the initiative (start and end
points of the process or parts of a system)?
• Specifically, what is going to be better?
• What authority do we have?
• How will success be measured? What specific
parameters will be measured? • What is not within scope?
Project Timeline Team Selection
• How are we going to get this done? • Who are the team members?
• When are we going to complete the work? • What are their roles?
• What are the major milestones (tollgates)? • How much of their time will be dedicated to the
project?
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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
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).
Time = 10 Minutes
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Goal Statement
Opportunity or Problem Statement Business Impact
• What “pain” are we or our customers experiencing? • Why should we do this? What is the benefit?
• What is wrong or not working? • How does this project align with the business strategy?
• What is the quantified benefit of the project ($$$)?
Goal Statement Project Scope
• What are our improvement objectives and targets? • What are the boundaries of the initiative (start and end
points of the process or parts of a system)?
• Specifically, what is going to be better?
• What authority do we have?
• How will success be measured? What specific
parameters will be measured? • What is not within scope?
Project Timeline Team Selection
• How are we going to get this done? • Who are the team members?
• When are we going to complete the work? • What are their roles?
• What are the major milestones (tollgates)? • How much of their time will be dedicated to the
project?
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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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Good Goal Statement Example
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.
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Exercise: Create a Goal Statement
Objective
Create a Goal Statement for your project
Instructions:
 Follow the goal statement template
 Share with others and get feedback
Goal Statement Template:
[Action verb] [metric] from [baseline] to [target]
Time = 10 Minutes
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Business Impact
Opportunity or Problem Statement Business Impact
• What “pain” are we or our customers experiencing? • Why should we do this? What is the benefit?
• What is wrong or not working? • How does this project align with the business strategy?
• What is the quantified benefit of the project ($$$)?
Goal Statement Project Scope
• What are our improvement objectives and targets? • What are the boundaries of the initiative (start and end
points of the process or parts of a system)?
• Specifically, what is going to be better?
• What authority do we have?
• How will success be measured? What specific
parameters will be measured? • What is not within scope?
Project Timeline Team Selection
• How are we going to get this done? • Who are the team members?
• When are we going to complete the work? • What are their roles?
• What are the major milestones (tollgates)? • How much of their time will be dedicated to the
project?
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Business Impact Objectives
Define:
 A clear and common understanding of “why we should
do the project”
 How the project links to and supports the strategic
objectives of the organization?
 What is the benefit of doing the project in financial and
operational terms (expense reduction, productivity
increases, cost avoidance, non-financial)? - more on
this later!
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Exercise: Create a Business Case
Objective
Create a Business Case for your project
Instructions:
 Why is your project important? How does your project
align with the strategic objectives of your organization?
 Share with others and get feedback
Time = 10 Minutes
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Project Scope
Opportunity or Problem Statement Business Impact
• What “pain” are we or our customers experiencing? • Why should we do this? What is the benefit?
• What is wrong or not working? • How does this project align with the business strategy?
• What is the quantified benefit of the project ($$$)?
Goal Statement Project Scope
• What are our improvement objectives and targets? • What are the boundaries of the initiative (start and end
points of the process or parts of a system)?
• Specifically, what is going to be better?
• What authority do we have?
• How will success be measured? What specific
parameters will be measured? • What is not within scope?
Project Timeline Team Selection
• How are we going to get this done? • Who are the team members?
• When are we going to complete the work? • What are their roles?
• What are the major milestones (tollgates)? • How much of their time will be dedicated to the
project?
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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
A Scope Statement defines the boundaries of the project.
 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
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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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Problem Timeline and Team Selection
Opportunity or Problem Statement Business Impact
• What “pain” are we or our customers experiencing? • Why should we do this? What is the benefit?
• What is wrong or not working? • How does this project align with the business strategy?
• What is the quantified benefit of the project ($$$)?
Goal Statement Project Scope
• What are our improvement objectives and targets? • What are the boundaries of the initiative (start and end
points of the process or parts of a system)?
• Specifically, what is going to be better?
• What authority do we have?
• How will success be measured? What specific
parameters will be measured? • What is not within scope?
Project Timeline Team Selection
• How are we going to get this done? • Who are the team members?
• When are we going to complete the work? • What are their roles?
• What are the major milestones (tollgates)? • How much of their time will be dedicated to the
project?
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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
 How many team members?
 Which functions or skills are required
(identify specific individuals, if necessary or Extended Team
possible)? • Supporting skills
• “Pull-in” as needed
 Include customers and suppliers
 What percentage of their time is required? Core Team
Critical skills
 Too many team members is 3-5 team members
Black Belt leader
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
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Project Charter Elements
Opportunity or Problem Statement Business Impact
• What “pain” are we or our customers experiencing? • Why should we do this? What is the benefit?
• What is wrong or not working? • How does this project align with the business strategy?
• What is the quantified benefit of the project ($$$)?
Goal Statement Project Scope
• What are our improvement objectives and targets? • What are the boundaries of the initiative (start and end
points of the process or parts of a system)?
• Specifically, what is going to be better?
• What authority do we have?
• How will success be measured? What specific
parameters will be measured? • What is not within scope?
Project Timeline Team Selection
• How are we going to get this done? • Who are the team members?
• When are we going to complete the work? • What are their roles?
• What are the major milestones (tollgates)? • How much of their time will be dedicated to the
project?
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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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S.M.A.R.T.
Project Charter Evaluation
 Another way to evaluate a
Charter's completeness is Specific
• Does it address a real problem?
though an evaluation
methodology called Measurable
• Are we able to measure the problem,
“SMART” establish a baseline, and set targets
for improvement?
 Use SMART to ensure that Attainable
• Is the goal achievable? Is the project
the charter is effective and completion date realistic?
thorough Relevant
• Does it relate to a strategic objective?
Time Bound
• Have we set a date for completion?
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Project Charter: Name of Your Project
Team Members
Name Role Affiliation DACI
Black Belt Driver
Master Black Belt Driver
Take away
Project Sponsor Approver
message goes
Process Owner Approver
here
Project Charter (impact of
Problem problem)
Statement:
Business Case:
Project Timeline
Goal Statement: Phase Start Stop Status
Unit: Define
Defect: Measure
Customer Analyze
Specifications:
Improve
Process Start:
Control
Process Stop:
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Cross Functional Team
Team Members
Name Role Affiliation DACI
Black Belt Driver
Master Black Belt Driver
Project Sponsor Approver
Process Owner Approver
Contributor
Contributor
Contributor
Contributor
Inform
Inform
Inform
Inform
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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?
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