Concepts
A crucial step in the process of commencing any program is obtaining approval from the organizational leadership. One must present a well-crafted program charter detailing high-level costs, milestone schedule, and benefits. This acts as a formal request for authorization to initiate the program. In fact, for the Program Management Professional (PgMP) exam, understanding these elements and the process of seeking approvals is a key area of focus.
I. The Program Charter
The program charter is a document that outlines the scope of the program, objectives, stakeholders, and the project manager’s authority level. The charter’s main components include:
- Project Overview: This includes the program’s title, description, objectives, success criteria, stakeholders, and timeline.
- Resource Estimate: This section accounts for human resources and material resources required throughout the program.
- High-Level Costs: This encompasses an estimation of the financial investment required for the program.
- Milestone Schedule: It provides an overall schedule for key milestones in the program.
- Risks and Issues: This includes potential risks and mitigation plans.
- Program Benefits: Key outcomes and benefits that the program will deliver.
II. Importance of obtaining Organizational Leadership Approval
Not just a formality, approval from the organizational leadership is a vital necessity that underpins the entire framework of a program. Here’s why:
- It ensures executive buy-in, which helps with the orchestration of necessary resources and support for the program.
- It forms a formal acceptance of the program, approving its existence and its plan of action.
- It provides legal and ethical clearance for initiating the program and highlights its alignment with organizational objectives.
III. Steps to Obtain Approval
The following procedural steps are crucial to acquiring approval:
- Documenting the Program: An accurately created program charter is the foundation. The document should include all necessary details such as projected costs, milestone schedule, and benefits.
- Presentation: Present the program charter to the leadership. This presentation should be concise, engaging, and must highlight the cardinal points effectively.
- Q&A Session: After the presentation be prepared to answer questions that arise from the leadership.
- Revisions: Any changes suggested must be incorporated and then resubmitted for approval.
- Approval: On being satisfied with the revisions, the leadership will provide their approval.
To illustrate how to present the project charter to leadership, lets consider an example of a program that reduces operational cost by implementing automation in a production plant. A simple table representation of costs, timeline and benefits is as follows:
| High-Level Costs | Milestone Schedule | Expected Benefits |
|---|---|---|
| $500,000 | End of Quarter 4 | 30% reduction in operational costs |
High-Level Costs Include automation software, training for employees, required hardware, etc. The milestone schedule denotes when the program is expected to be completed and the expected benefit is the projected outcome after successful implementation of the program.
Organizational leadership approval breathes life into a program, providing the necessary impetus for its inception. A meticulously constructed program charter, along with strategic presentation skills can assuage approval anxieties and pave the way for successful program management.
Answer the Questions in Comment Section
True or False: The program charter must always include high-level costs, benefits, and a milestone schedule?
- True
- False
Answer: True
Explanation: The program charter outlines the objective, high-level costs, milestone schedules, and benefits of the program. It helps in setting the course and overall plan for the program.
In order to initiate the program, it is necessary to present the program charter to:
- A) The Project Team
- B) Organizational Leadership
- C) Stakeholders
- D) All of the above
Answer: B) Organizational Leadership
Explanation: It’s crucial to get the approval of organizational leadership, as they are responsible for providing the necessary resources and support for the program’s initiation.
True or False: The program charter does not play a significant role in obtaining organizational leadership approval for initiating the program.
- True
- False
Answer: False
Explanation: The program charter plays a major role in getting approval as it provides a comprehensive overview of the program including its costs, benefits and milestones.
True or False: The benefits of the program must be clearly defined in the program charter to obtain organizational leadership approval.
- True
- False
Answer: True
Explanation: Clearly defined benefits allow the leadership to understand the value the program promises and aids in their decision-making process.
Organizational leadership approval is decided based on which factors of the program charter?
- A) High-level costs
- B) Milestone schedule
- C) Benefits
- D) All of the above
Answer: D) All of the above
Explanation: The leadership evaluates the program charter entirely, considering costs, schedule, and benefits for their approval decision.
The program charter can be used as a tool to:
- A) Gain organizational leadership approval
- B) Communicate the high-level program plan with stakeholders
- C) Both A and B
Answer: C) Both A and B
Explanation: The program charter helps in gaining leadership approval as well as communicating the program plan to relevant stakeholders.
True or False: A decrease in high-level costs always leads to organizational leadership approval.
- True
- False
Answer: False
Explanation: While cost is a significant factor, leadership approval also depends on the planned benefits and schedule milestones.
Multiple Select: The program charter must include which of the following?
- A) High-level costs
- B) Milestone schedule
- C) Program risks
- D) Benefits
Answer: A) High-Level costs, B) Milestone Schedule and D) Benefits
Explanation: These are the basic elements of a program charter that provide an overview of the program to the organizational leadership.
True or False: The program charter does not need to be revised during the course of the program.
- True
- False
Answer: False
Explanation: Depending on changes in circumstances, the program charter may require revisions.
Single Select: Who is primarily responsible for presenting the program charter for approval?
- A) Program Manager
- B) Stakeholder
- C) Project Sponsor
- D) Team Leader
Answer: A) Program Manager
Explanation: The Program Manager, being responsible for overall program execution and delivery, is primarily responsible for presenting the program charter for approval.
True or False: A poorly defined milestone schedule in the program charter can lead to a rejection by the organizational leadership.
- True
- False
Answer: True
Explanation: A poorly defined milestone schedule can lead to uncertainty about the program’s deliverables, leading to rejection by the organizational leadership.
Single Select: The purpose of the program charter is to:
- A) Document the entire project
- B) Seek approval from the organizational leadership
- C) Communicate the program details to the team
- D) Both B and C
Answer: D) Both B and C
Explanation: The program charter’s purpose is to seek leadership approval and to communicate the program details comprehensively.
Great blog post! Very informative on obtaining leadership approval.
Can anyone provide more details on how high-level costs should be outlined in the program charter?
I appreciate the way the milestone schedule was broken down. Very clear!
For the PgMP exam, how deep do we need to go into benefits realization in the program charter?
Thanks for the detailed explanation!
The example of the milestone schedule was particularly useful.
Any tips on presenting the program charter to skeptical leadership?
Well-written piece!