Definition: A formal document that authorizes a project, outlining its objectives, scope, stakeholders, and key performance indicators (KPIs).
Key Components:
- Objectives: Clear goals the project aims to achieve.
- Scope: Boundaries and deliverables of the project.
- Stakeholders: Individuals or groups with an interest in the project.
- KPIs: Metrics to measure project success.
Use Cases/Industries:
- Energy Sector: Initiating oil and gas exploration projects.
- Renewable Energy: Launching wind farm developments.
- Utilities: Upgrading power grid infrastructure.
Advantages:
- Clear Direction: Provides a roadmap for project execution.
- Stakeholder Alignment: Ensures all parties have a shared understanding.
- Performance Measurement: Establishes criteria for success evaluation.
Challenges:
- Comprehensive Detailing: Requires thorough information gathering.
- Stakeholder Consensus: Aligning diverse interests can be complex.
- Scope Definition: Avoiding ambiguity to prevent scope creep.
Related Terms: Project Scope Statement, Statement of Work (SOW), Project Plan
Example: Before commencing a new solar power plant, the project manager develops a project charter detailing the project’s goals, scope, stakeholders, and KPIs to guide the team.
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Synonyms:
Project Initiation Document, Project Authorization
