The document serves as a project charter template, guiding users on how to fill it out for effective project management. It includes sections on project goals, success criteria, risks, stakeholders, and project categorization, emphasizing the importance of measurable goals and internal communication. Additionally, it underscores the significance of aligning the project with the company's strategic objectives, particularly in the pharmaceutical context.

1. Customer
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Project Name: Project Charter
Company
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Project Name: Project Charter
The blue-colored text passages within this document are tips
and guidance for filling out
this template. If you are ready with your first draft, you should
delete these passages before sending the document to your
sponsor.
Project:
Project Name
Title:
Project Charter
Document number:
Version
0.1

2. Document status:
Draft
Author:
Doe, John
Responsible:
Date created:
dd.mm.yy
Protection class:
"For internal use only"
The Project and Author fields are filled automatically with the
data from the document properties (File Properties). Once the
appropriate entries have been made here, these fields can be
updated with the "Update Field" function (can be found in the
context menu for the individual fields).
Possible states for the document status include "Draft,"
"Released," and "Final." The status of the current document
should be specified respectively in the field above.
Document history
Version
Date
Author
Comment/Change

3. 0.1
dd.mm.yy
Draft
The document history should provide an overview of the
development of the document. Different versions with their
date, author, and possible comments should be entered here.
Tips for Using This Template:
The Statement of Work (SOW) forms the basis for the project
order. The project order represents a further level of detail.
Information that is often only outlined roughly in the SOW has
to be provided in greater detail in the project order.
Furthermore, internal points can also often be listed in the
project order, which are essential for project success.
The blue text contained in the template should provide
assistance for usage. It briefly describes how the individual
elements and styles are to be understood.
Please delete all of the blue text before you disseminate or print
the document; it is intended exclusively for internal use.
Page
1Background/Project purpose or justification
2Goals
2.1Goals
2.2Scheduling goals/milestones

4. 3Project product description
4Delivery units
4.1Delivery units/services
5Project success criteria
6High-level risks
7Key stakeholders
8Assumptions, restrictions and external dependencies
9Responsibility of the customer
9.1Tasks
9.2Resources and staffing
10Project category
11Project budget (overview)
12Project startup
13Project end
13.1Signatures for release
Annex
A.Glossary and abbreviations
B.References, accompanying documents
1
1. Background/Project Purpose or Justification
This section describes why the project was initiated and how
significant it is for the company.
2 Goals
This section describes which goals are to be realized with the
project. These goals serve as a point of reference for the project
closing. Measurable goals should be defined.
2.1 Goals
Goal
Description

5. 2.2 Scheduling Goals/Milestones
Schedule
Description
3 Project Product Description
This section describes the project end product to be supplied.
Product Scope Description
The product scope description documents the characteristics of
the product, service, or results that the project will be
undertaken to create. The description should also document the
relationship between the products, services, or results being
created and the business need that the project will address.
4 Delivery Units
A list of all project products/deliverables whose complete and
satisfactory delivery indicate the completion of the project.
4.1 Delivery Units/Services

6. Delivery Unit
Description/Comment
A deliverable is any unique and verifiable product, result, or
capability to perform a service that is required to be produced to
complete a process, phase, or project. Deliverables are typically
tangible components completed to meet the project objectives
and can include elements of the project management plan.
Deliverables also include ancillary results, such as project
management reports and documentation. These deliverables may
be described at a summary level or in great detail.
5 Project Success Criteria
This section outlines the quantifiable criteria that have to be
fulfilled so that the project can be performed successfully.
Project Success Criteria

7. 6 High-Level Risks
This section describes some of the key project risks and their
potential impact on the success of the project. This list of risks
should be regarded as provisional rather than complete because
risks are usually identified and dealt with continuously during
the course of the project.
Risk
Possible Impacts on the Project

8. 7 Key Stakeholders
This section should at least contain the key stakeholders with
their names and roles in the project context. This is your
starting point for further stakeholder management and analysis.
Name
Role
8 Assumptions, Restrictions and External Dependencies
Assumptions are expectations that form the basis for decisions.
This section lists the main assumptions on the basis of which
appraisals, plans, and methods are defined for the project.
A
R
E

9. Item
A = Assumption
R = Restriction
E = External dependency

10. 9 Responsibility of the Customer
This section lists what the customer is to contribute in the
course of the project. These responsibilities can be split into
two categories.
9.1 Tasks
Task
Comment
Contact
9.2 Resources and Staffing
Resources/Staffing
Comment
Contact

11. 10 Project Category
According to the relevant requirements and experiences in the
company, the project is classified based on the following
predefined features.
Project Category
Project Categories:
C Projects:
B Projects:
A Projects:
Complexity
Low
Average
High
Risk & Impact on Company
Low
Average
High
Strategic Importance
Low
Average
High
Number of Persons on Project
Generally 5–10

12. Generally 10–20
Generally > 20
Project Duration
Up to six months
6–12 months
6–24 months
Once the categories have been defined, please enter them above.
In addition, we recommend that you mark the individual criteria
in the table. The category parameters should be modified
accordingly to your company/industry parameters.
11 Project Budget (Overview)
The financial framework within which the project has to operate
is described here. Depending on the size of the framework, it
may make sense to provide further details for individual parts.
Area
Amount
Project
Subproject
12 Project Startup
The project is deemed started with the following signatures:

13. Representative
of Steering Committee
Customer
Project Manager
Signature
Name
Date
13 Project End
Planned Project End:
13.1 Signatures for Release
The project manager is released with the signatures provided
here following the project closing phase:
Representative
of Steering Committee
Customer
Project Manager
Signature

14. Name
Date
Annex
I. Glossary and Abbreviations
If abbreviations have been used in this document (as well as
terms that need to be defined in greater detail) and common
understanding for every user is a prerequisite for the success of
the project, this is an opportunity to explain them.
Term
Explanation

15. II. References, Accompanying Documents
If references have been made in this document to other external
documents, these documents should be listed here.
Reference No.
Title
Doc. No.
File name: Project Charter.docx Page 19 of 19
Print date 05.05.16
Sheet1Lifecycle PharmaceuticalInterest Rate = 5%Assumptions
for Valuation Drug CandidateCurrent StageComplete Phase
IComplete Phase IIComplete Phase IIIDrug ApprovalRemaining
Development CostsLC-1Phase IINAQ2 2004Q1 2006Q2
2007$100 MMLC-2Phase IINAQ2 2006Q2 2008Q1 2009$300
MMLC-3Phase IIQ1 2004Q4 2007Q2 2008Q2 2008$600

16. MMLC-4PreclinicalQ2 2005Q4 2007Q1 2009Q2 2009$220
MMPTC-Ph 1PTC-Ph 2PTC Ph-3Probability of ApprovalPTC =
Probability of Technical SuccessLC-1100%40%65%75%LC-
2100%60%50%50%LC-380%60%60%75%LC-
470%50%75%80%Clinical Phase Durations (estimates)Phase I1
yearPeak SalesProfit MarginsAnnual ExpensesPhase II730
daysLC-1$600 MM90%$40 MMPhase III3 yearsLC-2$800
MM90%$65 MMDrug Regulatory Submission0.5 yearLC-
3$1,000 MM80%$80 MMLC-4$750 MM82%$65 MM
Module 1-2: Case Study Overview
Objectives
This case study supplies an overview of the objectives and
intended outputs of portfolio management and the reasons many
firms utilize this approach in order to achieve their intended
initiatives.
Specifically, regarding research and development firms, they
craft their strategic plans in order to align to the firm’s overall
target operating model, as well as the company’s overall
mission; they are typically broken down into projects which are
compiled into the main portfolio. In pharmaceutical firms,
these goals typically include:
· Lowering drug expenses for the targeted client base
· Identifying opportunities in a given market to fill “gaps”
where there is demand, but not supply (i.e.: new products,
services, etc.)
· Increasing production in terms of efficiency, process
improvement and upgrade research approaches.
In this case study specifically, the main goal is the first: lower
costs. Therefore, the portfolio will ultimately be set up to
achieve this intended objective. The other objectives will fall
underneath as a sort of “umbrella.” That being the case, only
projects which support this effort will be included in the firm’s
portfolio, (Bode-Greuel, 2008).

17. Target Stakeholder Group
In this particular instance, the stakeholders would include the
company’s client base. As the R&D firm’s main intent is to
perform effectual research to develop new drugs which would
support efforts to lower the firm’s overall drug costs, it stands
to reason those purchasing the products and benefiting from the
updated pricing would be the primary stakeholder group, (Bode-
Greuel, 2008).
However, alongside the primary stakeholders will typically be
other, indirect stakeholders. In this case study, examples would
include partner companies who sell these products on behalf of
the main company, and perhaps any adjoining supplier chain
entities, as these companies would be also paying their own
business costs and in that same vein, health insurance firms who
cover all or part of the customer’s drug expenses would have a
vested interest in this cost-reduction effort.
Taking this back to portfolio management, it would prove
beneficial to these varying stakeholder groups as it will initiate
an effort (or series of efforts), which will drive the
pharmaceutical company’s investment in developing more price-
friendly drugs. This portfolio of projects will all drive this
output, but they won’t be approved by the sponsors until they
demonstrate alignment to the corporate group’s overarching
strategic goals.
The process which governs portfolio management will cover
comprehension of diseases which will have many sub-segments.
These would address overall disease comprehension and
research, patient medical needs regarding the said disease, as
well as other factors (like short vs long-term care) which will
empower the firm to make an informed choice to invest in this
venture or not, (2008).
In order to efficiently oversee a portfolio, the PM must closely
monitor it through all phases of the lifecycle: initiation and
planning to execution. Portfolios managed in a proficient
manner will help secure the desired outputs, stay within scope
and budget, within timetables set by leaders and obtain the ROI

18. (return on investment) that is sought after by both internal and
external stakeholders, as well as indirect stakeholders too.
These goals can be attained via any number of venues. They
may include refining the process to be more efficient when
creating new drugs. Also, upping productivity with the overall
drug development process; focusing effort into crafting more
streamlined research methods for new drugs and potential areas
of interest which would benefit the firm’s operating model in
multiple spaces, then highlight the ones that appear most
promising. Key decision-makers and sponsors can leverage this
information to call out the projects which appear to hold the
most promise in terms of value, (2008).
Project, Portfolio & Program Levels
When a firm is rolling out a strategic initiative, it is typically
broken down into three levels: project management, which are
compiled into a program. The Programs in question are aligned
to a Portfolio. Managers maintain direction and oversight at
each level: project, portfolio, and program.
Project management is the leadership governance of a time-
limited effort which includes a designated start and end period,
along with a defined deliverable, which is a new
product/service/etc. Well-vetted projects include a clearly
defined output, including adequate descriptive details; also,
there will usually be cross-functional leveraging and
interdisciplinary partnerships (subject-matter-experts/SME’s).
The project will have a defined schedule/timetable with an
assumed consistent unrolling, a financial budget with
constraints and a “safe margin” for unexpected costs. Finally,
there will be a designated team, reserved tools, resources, and
other assets, as well as leadership governance and
reporting/fiscal updating expectations. Each project will
include the in proposal how it aligns to the firm’s corporate
approach.
Projects are grouped into Programs. Like projects, there are
managers, but as each project is aligned to a similar Program,
the program manager will have an oversight of several

19. complimentary projects in-flight at one time. Using this
approach helps to optimize the beneficial outputs of each
project that may not be so assured if each were executed alone.
Lastly, Programs are compiled into Portfolios.
Corporate Strategy Alignment
The drive acting as an undercurrent for these projects (and the
full portfolio) is adding value. The corporate strategy the firm
has adopted is to lower costs, increase efficiency and streamline
the process to lower overall company expenses whilst increasing
production processes. The methodology selected to choose
which projects will be compiled into the portfolio will also be
utilized by the project teams to ensure continued alignment with
the firm’s strategy and intended goals, also while remaining
aligned to the expectations set forth by internal and external
stakeholders.
Project Manager’s Role
For the PM, their role is to facilitate the project selection
process, to ensure value is present in each project chosen, and
that it demonstrates corporate alignment. Also, the PM will
drive the project(s) in their lifecycle, ensuring continued
alignment, adherence to budgets, forecasts, and other obligatory
components to ensure a successful execution and close. The PM
will also, in that same vein, continue to select and monitor the
prioritization of each project and calibrate with leaders on any
change management issues which arise on a given project. The
PM will ensure the deliverables are crafted and the project
closed in a compliant manner; also, that the outputs are still
aligned to the R&D plan and operationalized (as needed), to
meet the firm’s other overarching goals.

20. References
Bode-Greuel, K. M., Nichisch, K. J. (2008). Value-Driven
Project in Portfolio Management in the
Pharmaceutical Industry: Drug Discovery Vs. Drug
Development- Commonalities and
Differences in Portfolio Management Practice.
Journal Of Commercial
Biotechnology, 14 (4), pp. 307-325. Retrieved from:
Value-driven project and portfolio management in the
pharmaceutical industry: Drug discovery versus drug
development - Commonalities and differences in portfolio
management practice - ProQuest
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