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Project Charter Template


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

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Project Charter Template

  1. 1. 2008 Organizational ChangeCharter Template Author: Company: 4/29/2008
  2. 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 Implementation Page2
  3. 3. Organizational Change Charter 2008 1 Document change history Version Date Author Description of changes 1.0 1/5/2008 PM de Kock First Draft 2. Introduction ERP Implementation Page3
  4. 4. Organizational Change Charter 2008 2.1 Purpose This 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 project XXX 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 Implementation Page4
  5. 5. Organizational Change Charter 2008 3. Contextual framework for organizational change management (OCM) 3.1 Approach The 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 new processes, procedures, systems, roles and structures in the shortest possible time • In addition to create ownership of the solution, thus moving the organization to take co-responsibility for the successful implementation and maintenance of the system Against 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 • Communication The 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. 6. Organizational Change Charter 2008 3.2 The case for OCM While 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 that executives in these business-organizations attribute no less than 60% of implementation 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 than budget • In addition to the above, research conducted by the Corporate Leadership Council, Towers Perrin and Gallup also show that employees who are fully engaged to their work situation tend to improve their discretionary effort significantly, while their retention increases dramatically (up to 80% as indicated 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 milestones As 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 the new system, and ownership for its successful implementation and maintenance. This is measured through the following success factors (see OCM Dashboard): o Common orientation o Ability of key role players o Level of ownership o Uniform perception o Felt results o Sustainability The milestones that need to be achieved to deliver the above are outlined in Table 3.3 (a) ERP Implementation Page6
  7. 7. Organizational Change Charter 2008 Table 3.3 (a) OCM Milestones 4. OCM charter elements 4.1 OCM team mission and key relationships The 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 Implementation Page7
  8. 8. Organizational Change Charter 2008 Diagram 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 Mission The 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 principles • Communication will be short, to the point and clear • A central message (“the elevator speech”) will be created to ensure that all efforts are linked to the rationale, and strategic alignment of the project ERP Implementation Page8
  9. 9. Organizational Change Charter 2008 • Reporting as well as action planning will clearly state: o Who, what, where, when and why o Main goals and results to be achieved o Problems and potential solutions o Benefits of approach or intended action • Communication will in all instances be aimed to engage the reader through the use of metaphors, relevant picture art and emphasis of specific, strategic issues • As far as possible will the use of the following be avoided in communication to the target population (unless clarified appropriately): o Acronyms, abbreviations, technical jargon, flowery adjectives, clichés and quotes o Aspects or processes not relevant to people outside of the project o General or over-used words o Overstating the expected outcomes of the project 4.2.3 Critical success factors The 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 context of the project • Enablement of the target population to participate, take co-responsibility for benefit realization and effectively influencing decision making 4.3 Leader and sponsorship charter 4.3.1 Mission The 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 Implementation Page9
  10. 10. Organizational Change Charter 2008 at delivery of an integrated business solution 4.3.2 Guiding principles The 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 the envisaged changes • The development and implementation of appropriate strategies to deal with 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 of implementation, as well as strategies to mitigate such risks 4.3.3 Critical success factors For 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 ownership 4.4 Organizational optimization charter 4.4.1 Mission The OCM team is responsible for the timely identification of the impact of the project on key organization components and the formulation as well as implementation of strategies to align these so as to ensure optimal benefit realization. These factors include: • Structures • Systems and business processes • Shared values and culture issues • Management approach • Role and job design • Attraction and retention of right skills for benefit realization ERP Implementation Page10
  11. 11. Organizational Change Charter 2008 4.4.2 Guiding principles The organizational optimization element of the project will be performed against the background of the following guidelines: • Timely and comprehensive identification of organizational impact of the project • Articulation of change strategies to ensure alignment of organizational components that include: o Conducting thorough orientation and executive alignment sessions o Role redesign and clarification o System as well as role based training 4.4.3 Critical success factors The success of the organizational optimization element of the project is dependent on the following: • Analysis and benchmarking of organizational impact of the project • Design proposals that reinforce the cross functional nature of the organization • Effective communication of organizational impact • Role clarification • Effective transfer of skills to the organization 5. Limits and exclusions The OCM component of the project is designed and implemented within the limits of the project scope. Actions are directed in accordance with the detailed scope statement for OCM (as outlined in the approved Work Breakdown Structure – WBS). As such will changes in terms of the scope be managed and approved in line with the change control protocol and delegations of authority for the project and OCM WBS. It should also be noted that the OCM component does not deal with user training that is either aimed at familiarization or competence building in the use of the system (nor role based training to operate and maintain the system). Notwithstanding will coordination be observed between OCM and the relevant training specialists. ERP Implementation Page11
  12. 12. Organizational Change Charter 2008 7. OCM organizational arrangements The OCM team consists of the following members: • Senior OCM Specialist • Two OCM Coordinators, provided by the client organization 8. Conclusion Per definition the charter provide an overview of what needs to be delivered by the relevant team/sub team, and serve as mandate for further action following its approval. As such it should be stated that this document is a draft, for consideration and approval and should be read against the background of its status. ERP Implementation Page12