Pm600 1103 a-02-schwappach-loren-p3-t2-charter

Confidential

HLR, Inc. Internet Technology (IT) Department Last printed on 8/9/2011 11:36:00 PM

HLR Inc. SCRMP Project

Project Charter Document

Project Name: Standard Customer Relationship Management Processes (SCRMP)

Departments: IT, Sales, Product Fulfillment, Customer Service, Billing, Marketing

Focus Area: Customer Relationship Management

Product/Process: Information Systems and Process Reengineering

Prepared By

Document Owner(s) Project/Organization Role

Loren Karl Schwappach PM600 Author of Project Charter (Team Lead)

Brett Carlsen PM600 Team Member

Martin Moxley PM600 Team Member

Steven Rowe Dropped PM600 Class – No longer involved in project.

Project Charter Version Control

Version Date Author Change Description

1 23 Jul 11 Loren K Schwappach

Document created and completed using a Project Charter template from Microsoft

Project Charter

Confidential 8/9/2011

TABLE OF CONTENTS

1 PROJECT CHARTER PURPOSE 3 2 PROJECT EXECUTIVE SUMMARY 3 3 PROJECT JUSTIFICTION 6 4 PROJECT SCOPE 6 4.1 GOALS AND OBJECTIVES 6 4.2 DEPARTMENTAL STATEMENTS OF WORK (SOW) 7 4.3 ORGANIZATIONAL IMPACTS 7 4.4 PROJECT DELIVERABLES 8 4.5 PROJECT ESTIMATED COSTS & DURATION 9 5 PROJECT CONDITIONS 11 5.1 PROJECT ASSUMPTIONS 11 5.2 PROJECT ISSUES 12 5.3 PROJECT RISKS 12 6 PROJECT TEAM ORGANIZATION PLANS 14 7 APPROVALS 15

Project Charter


1 PROJECT CHARTER PURPOSE

The project charter explains the scope, objectives, and overall approach for the work to be completed on the SCRMP project. It is a critical element for initiating, planning, executing, controlling, and assessing the project. It should be the single point of reference on the project for project goals and objectives, scope, organization, estimates, work plan, and budget. In addition, it serves as a contract between the Project Team and the Project Sponsors, stating what will be delivered according to the budget, time constraints, risks, resources, and standards agreed upon for the project.

2 PROJECT EXECUTIVE SUMMARY

Project Background:

The Standard Customer Relationship Management Processes (SCRMP) project was is a major incentive by HLR Inc. as solution to create an accurate, shared, standardized customer information system and customer management process database and business process reengineering for consolidating management and market research data into a globally sharable and secure system shared by HLR Inc. divisions. SCRMP is the largest project ever undertaken by HLR Inc. and is imperative for the continual growth in sales development that is expected at HLR Inc. next year.

The SCRMP project will be lead by HLR Inc’s Internet Technology (IT) Department and will focus on updating the software and information systems of several departments to include IT, sales, product fulfillment, customer service, billing, and marketing. The project will also involve cooperative work between IT, current business unit managers, sales, product fulfillment, customer service, billing, marketing, and a software vender contracted for developing and installing the new information system required for the project.

The software vender will play a large role in the SCRMP project and has been contracted to provide essential personnel with the skill and experience needed to develop and install the SCRMP software at all HLR Inc’s locations to include foreign locations and will be assigned to work with business unit managers and low level staff towards the project’s completion.

Project Purpose:

The purpose of the SCRMP project is to secure and unify all incompatible customer relationship management process systems at HLR Inc. into a reliable, accurate and secure standard information system database that can be utilized for obtaining reliable customer information and marketing data and making timely and critical business decisions.

Project Charter


Project Organization:

HLR Inc. is a large business headquartered in Chicago responsible for purchasing, establishing, and maintaining leasing and rental arrangements for small businesses all over the world.

Project Goals:

The project goals for the SCRMP project include: consolidate all customer relationship processes (CRPs) used by each division, identify top CRPs, incorporate top CRPs into processes utilized in each division, perform CRP test runs in each division, consolidate CRP informational databases at each division into unified database, developing a secure worldwide CRP database to act as new SCRMP database, integrating all combined CRP data into SCRMP database, perform developmental testing of SCRMP database, receive customer approval of SCRMP database, install SCRMP database at specified locations, perform HLR employee system testing, conduct software and system implementation troubleshooting, perform system patching, complete SCRMP project within time and budget constraints.

Project Objectives:

The objectives of the SCRMP project include: assign a CRMP process collection team made composed of at least one CRMP knowledge expert from each division and business unit managers for each unit to include IT, sales, product fulfillment, customer service, billing, and marketing, identify best/top CRMP practices used by each unit, incorporate top CRMPs into processes utilized in each division, combine CRMPs business practices into new SCRMP practices, perform test run of new SCRMP business practices, provide corporate training of new SCRMP practices, provide corporate guidelines and policies for using new SCRMP, set mandatory date for enforcement of new SCRMP practices to 6 months from project start date., assign a SCRMP database specification, development, and testing team that includes members from the CRMP business process reengineering team, collect CRMP informational databases from each division, consolidate CRMP informational databases at each division into unified database, create a requirements specification document outlining the requirements of the new SCRMP database, ensure SCRMP database corresponds with guidelines and information requirements from new SCRMP business practices, engineer a secure, worldwide, SCRMP database unifying all divisional CRMP databases, integrate combined CRMP data into SCRMP database, receive approval for each division of new SCRMP database, install SCRMP database at specified locations, perform HLR Inc. employee system testing, conduct software and system implementation troubleshooting, perform system patching, receive project approval for the project within 10 days of proposed project start date and obtain resources necessary to begin project work, complete the project within 18 months (18 mo.) of receiving project approval, and complete the project without exceeding project budget of 5 hundred thousand US dollars ($500,000.00 USD).

Project Charter


Project Costs:

The budget given for the completion of the SCRMP project is five hundred thousand United States dollars and zero cents ($500,000.00 US dollars). The software vender has been contracted to provide the development, engineering, testing, implementation, troubleshooting, and installation of the new SCRMP software as well as for providing for 90% of the technical staff needed to ensure the project is completed within the first twelve months after the approved project start date and will be paid the total of one hundred and fifty thousand United States dollars and zero cents ($150,000.00) at project completion with penalties as outlined in the detailed SOW.

Project Timeline

The entire project is expected to be completed within as outlined in the SOW within fifteen months (15mo.), with the project business improvement process team required to complete all related tasks within 6 months (6 mo.), and the SCRMP database development, installation, and testing team and software vender tasks required to be completed with twelve months (10 mo.).

Project Approach

Although the project will be lead by the IT Department it will require involvement from each business unit of HLR Inc. The project manager has been assigned a knowledge level expert and business unit manager from each major division. The project team will have weekly progress and status meetings in which the division head of each unit and the project stakeholders will review project status results, current project requirements, develop human resource plans, review upcoming activities and resource forecasts, and to ensure the project is receiving full corporate support. The project manager will have full authority over all project decisions and will work closely with the division lower level staff members and the software vender to ensure the project stays on course and meets project milestone requirements.

Project Assumptions

It is assumed that: the project manager will have full authority and support of project stakeholders and HLR Inc. management and leader for assuring the project’s success, the project manager will have full power to create SCRM and SCRMP project teams from the most knowledgeable personnel represented by at least one business unit manager from each department, the director of each business unit and managers will offer their full support and resources towards ensuring the successful implementation of the new SCRMP business restructuring plans and the new SCRMP software, that the software vender will provide enough expert personnel as specified in the SOW to ensure projects success, that adequate training and procedures will be created to allow all current and new personnel to incorporate the new SCRMP practices, and that delays the project management teams will account for unexpected delays and costs to ensure the project remains safe from exceeding time and budget constraints.

Project Charter


3 PROJECT JUSTIFICATION

Senior management of HLR Inc. has identified this project as the critical cornerstone for the continued growth and financial success of HLR Inc. Significant business and development opportunities are continually being lost due to the incompatibility between divisional information systems responsible for documenting customer relationship management process. HLR has experienced a twenty five percent (25%) growth in sales development over the past year with a growth in sales next year estimated at thirty five percent (35%). This growth can only be achieved by targeting new markets through the use of the company’s market research data which is useless to marketing due to the current system incompatibilities between divisions.

4 PROJECT SCOPE

4.1 Goals and Objectives

Goals Objectives

Consolidate all customer relationship management processes (CRMPs) used by each division into best CRMP practices for new SCRMP

1. Assign a CRMP process collection team made composed of at least one CRMP knowledge expert from each division and business unit managers for each unit to include IT, sales, product fulfillment, customer service, billing, and marketing.

2. Identify best/top CRMP practices used by each unit.

3. Incorporate top CRMPs into processes utilized in each division.

4. Combine CRMPs business practices into new SCRMP practices.

5. Perform test run of new SCRMP business practices.

6. Provide corporate training of new SCRMP practices.

7. Provide corporate guidelines and policies for using new SCRMP

8. Set mandatory date for enforcement of new SCRMP practices to 6 months from project start date.

Consolidate CRMP informational databases at each division into unified database.

9. Assign a SCRMP database specification, development, and testing team that includes members from the CRMP business process reengineering team.

10. Collect CRMP informational databases from each division.

11. Consolidate CRMP informational databases at each division into unified database.

12. Create a requirements specification document outlining the requirements of the new SCRMP database.

13. Ensure SCRMP database corresponds with guidelines and information requirements from new SCRMP business practices.

14. Engineer a secure, worldwide, SCRMP database unifying all divisional CRMP databases.

15. Integrate combined CRMP data into SCRMP database.

16. Receive approval for each division of new SCRMP database.

17. Install SCRMP database at specified locations.

18. Perform HLR Inc. employee system testing.

Project Charter


19. Conduct software and system implementation troubleshooting.

20. Perform system patching

21. Complete all tasks within 10 months.

Complete SCRMP project within time and budget constraints.

22. Receive project approval within 10 days of proposed project start date and resources necessary to begin project work.

23. Complete project within 18 months of receiving project approval.

24. Complete project without exceeding project budget of $500,000.00 US dollars.

4.2 Departmental Statements of Work (SOW)

Departmental SOW Owner/Prime Due Date/Sequence

HLR IT Department Mr. Smarty Pants 30 July 11 / Phase 1

HLR Sales Mr. Jim McNappy

Division Head

30 July 11 / Phase 1

HLR Product Fullfillment Mr. Stevie Stevenson

Division Head


HLR Customer Service Mr. Data StarshipEnterprise

Division Head


HLR Billing Mr. Johny Cash 30 July 11 / Phase 1

HLR Marketing Mr. Ubotit Ugotit 30 July 11 / Phase 1

SCRMP Software Vender Mr. Crabby Pants 30 July 11 / Phase 1

Project Management Team Mr. Brett Carlson

Project Manager


Project Charter


4.3 Organizational Impacts

Organization Impact to and Participation of Organization

HLR IT Department (Colorado Springs, CO)

Maintains all HLR Inc. information systems.

HLR Sales (Chicago Headquarters and Ottawa, Canada)

Creates and maintains the relationship with the lease customer and needs to be aware of the status of lease arrangements.

HLR Product Fullfillment (Denver and Ottawa)

Processes, evaluates, and approves development and leasing contracts while recommending change requests to customers and updating project scope information if approved by change control board.

HLR Customer Service (Denver)

Resolves problems for customers by implementing conflict management process to handle customer issues and updates approved changes to customer information.

HLR Billing (Chicago)

Deals with rental payments, invoice issues, and follow ups; updates approved changes to customer information, provides financial information to sales and executive management.

HLR Marketing (Chicago)

Reviews sales and future developmental data and determines marketing opportunity.

Project Charter


4.4 Project Deliverables

Milestone Deliverable

#1: Consolidate all customer relationship management processes (CRMPs) used by each division into best CRMP practices for new SCRMP

Assign a CRMP process collection team made composed of at least one CRMP knowledge expert from each division and business unit managers for each unit to include IT, sales, product fulfillment, customer service, billing, and marketing.

Identify best/top CRMP practices used by each unit.

Incorporate top CRMPs into processes utilized in each division.

Combine CRMPs business practices into new SCRMP practices.

Perform test run of new SCRMP business practices.

Provide corporate training of new SCRMP practices.

Provide corporate guidelines and policies for using new SCRMP

Set mandatory date for enforcement of new SCRMP practices to 6 months from project start date.

#2: Consolidate CRMP informational databases at each division into unified database.

Assign a SCRMP database specification, development, and testing team that includes members from the CRMP business process reengineering team.

Collect CRMP informational databases from each division.


Create a requirements specification document outlining the requirements of the new SCRMP database.

Ensure SCRMP database corresponds with guidelines and information requirements from new SCRMP business practices.

Engineer a secure, worldwide, SCRMP database unifying all divisional CRMP databases.

Integrate combined CRMP data into SCRMP database.

Receive approval for each division of new SCRMP database.

Install SCRMP database at specified locations.

Perform HLR Inc. employee system testing.

Conduct software and system implementation troubleshooting.

Perform system patching

Complete all tasks within 10 months.

#3: Complete SCRMP project within time and budget constraints.

Receive project approval within 10 days of proposed project start date and resources necessary to begin project work.

Complete project within 18 months of receiving project approval.

Complete project without exceeding project budget of $500,000.00 US dollars.

Project Charter


4.5 Project Estimated Costs & Duration

Project Milestone Date Estimate Deliverable(s) Included Confidence Level

#1: Consolidate all customer relationship management processes (CRMPs) used by each division into best CRMP practices for new SCRMP

1/30/12 Assign a CRMP process collection team made composed of at least one CRMP knowledge expert from each division and business unit managers for each unit to include IT, sales, product fulfillment, customer service, billing, and marketing.

Identify best/top CRMP practices used by each unit.

Incorporate top CRMPs into processes utilized in each division.

Combine CRMPs business practices into new SCRMP practices.

Perform test run of new SCRMP business practices.

Provide corporate training of new SCRMP practices.

Provide corporate guidelines and policies for using new SCRMP

Set mandatory date for enforcement of new SCRMP practices to 6 months from project start date.

High

#2: Consolidate CRMP informational databases at each division into unified database.

5/30/12 Assign a SCRMP database specification, development, and testing team that includes members from the CRMP business process reengineering team.

Collect CRMP informational databases from each division.


Create a requirements specification document outlining the requirements of the new SCRMP database.

Ensure SCRMP database corresponds with guidelines and information requirements from new SCRMP business practices.

Engineer a secure, worldwide, SCRMP database unifying all divisional CRMP databases.

Integrate combined CRMP data into

Medium

Project Charter


SCRMP database.

Receive approval for each division of new SCRMP database.

Install SCRMP database at specified locations.

Perform HLR Inc. employee system testing.

Conduct software and system implementation troubleshooting.

Perform system patching

Complete all tasks within 10 months.

#3: Complete SCRMP project within time and budget constraints.

1/30/13 Receive project approval within 10 days of proposed project start date and resources necessary to begin project work.

Complete project within 18 months of receiving project approval.

Complete project without exceeding project budget of $500,000.00 US dollars.

High

5 PROJECT CONDITIONS

5.1 Project Assumptions

The project manager will have full authority and support of project stakeholders and HLR Inc. management and leader for assuring the project’s success

The project manager will have full power to create SCRM and SCRMP project teams from the most knowledgeable personnel represented by at least one business unit manager from each department

The director of each business unit and managers will offer their full support and resources towards ensuring the successful implementation of the new SCRMP business restructuring plans and the new SCRMP software

That the software vender will provide enough expert personnel as specified in the SOW to ensure projects success

That adequate training and procedures will be created to allow all current and new personnel to incorporate the new SCRMP practices.

That delays the project management teams will account for unexpected delays and costs to ensure the project remains safe from exceeding time and budget constraints.

Project Charter


5.2 Project Issues

Priority Criteria

1 − High-priority/critical-path issue; requires immediate follow-up and resolution.

2 − Medium-priority issue; requires follow-up before completion of next project milestone.

3 − Low-priority issue; to be resolved prior to project completion.

4 − Closed issue.

# Date Priority Owner Description Status & Resolution

1 7/24/11 1 Loren K Schwappach

Awaiting approval from HLR CEO to begin project.

In Progress

5.3 Project Risks

# Risk Area Likelihood Risk Owner

1 Schedule, resources, and product definition have all been dictated upper management and are not in balance.

High Project Manager

2 Schedule is optimistic, "best case," rather than realistic, "expected case."

Medium Project Manger

3 Schedule omits necessary tasks. High Project Manager

4 Schedule was based on the use of specific team members, but those team members were not available.

High Project Manager and Department Heads

5 Product is larger than estimated (in lines of code, function points, or percentage of previous project’s size).

Medium Software Vender

6 Effort is greater than estimated (per line of code, function point, module, etc.).


7 Re-estimation in response to schedule slips is overly optimistic or ignores project history


8 Excessive schedule pressure reduces productivity. Low Project Manager

9 Target date is moved up with no corresponding adjustment to the product scope or available resources.

Low Project Manager

10 A delay in one task causes cascading delays in dependent tasks.


11 Unfamiliar areas of the product take more time than expected to design and implement.


12 Project lacks an effective top-management sponsor. Low Project Manager

13 Layoffs and cutbacks reduce team’s capacity. Low Project Manager

14 Management or marketing insists on technical decisions that lengthen the schedule.


15 Inefficient team structure reduces productivity. Low Project Manger

16 Management review/decision cycle is slower than expected. Low Project Manager

17 Budget cuts upset project plans. Low Project Manger

18 Management makes decisions that reduce the development Low Project Manger

Project Charter



team’s motivation.

19 Non-technical third-party tasks take longer than expected (budget approval, equipment purchase approval, legal reviews, security clearances, etc.).

Low Project Manager

20 Planning is too poor to support the desired development speed. Low Project Manager

21 Project plans are abandoned under pressure, resulting in chaotic, inefficient development.


22 Management places more emphasis on heroics than accurate status reporting, which undercuts its ability to detect and correct problems.

Medium Project Manager

23 End user insists on new requirements. High Software Vender

24 End user ultimately finds product to be unsatisfactory, requiring redesign and rework.

High Software Vender

25 End user does not buy into the project and consequently does not provide needed support.


26 Contractor does not deliver components when promised. High Project Manager

27 Contractor delivers components of unacceptably low quality, and time must be added to improve quality.

Low Project Manager

28 Contractor does not buy into the project and consequently does not provide the level of performance needed.


29 Requirements have been base lined but continue to change. Medium Project Manager

30 Requirements are poorly defined, and further definition expands the scope of the project.


31 Additional requirements are added. High Project Manager

32 Task prerequisites (e.g., training, completion of other projects, acquisition of work permit) cannot be completed on time.

Low Project Manager

33 Poor relationships between developers and management slow decision-making and follow through.


34 Team members do not buy into the project and consequently does not provide the level of performance needed.


35 Low motivation and morale reduce productivity. Medium Project Manager

36 Lack of needed specialization increases defects and rework. Medium Project Manager

37 Personnel need extra time to learn unfamiliar software tools or environment.


38 Personnel need extra time to learn unfamiliar hardware environment.


39 Contract personnel leave before project is complete. Medium Software Vender

40 Permanent employees leave before project is complete. Low Project Manager

41 New development personnel are added late in the project and additional training and communications overhead reduces existing team members’ effectiveness.

Low Project Manager

42 Team members do not work together efficiently. Low Project Manager

Project Charter



43 Conflicts among team members result in poor communication, poor designs, interface errors and extra rework.

Low Project Manager

44 The personnel most qualified to work on the project are not available for the project.

High Project Manager and Division Heads

45 Personnel with critical skills needed for the project cannot be found.


46 Key personnel are available only part time. High Project Manager

47 Not enough personnel are available for the project. High Project Manager

6 Project Team Organization Plans

Project Team Role Project Team Member(s) Responsibilities

SCRMP Project Manager Mr. Brett Carlsen Project Manager

Software Vender SCRMP Project Lead Developer

Mr. Bill Ted Software developer / contracted to provide tech staff

IT current information systems specialist Mr. Loren Schwappach System/Process expert

Sales unit manager / process expert Ms. Alice Wonderland System/Process expert

Product fulfillment unit manager / process expert

Mr. Ace Ventura System/Process expert

Customer service unit manager / process expert

Mr. Bobby Boogerton System/Process expert

Billing unit manager / process expert Mr. Kooky Kink System/Process expert

Marketing unit manager / process expert Mr. Marin Moxley System/Process expert

HLR Inc. Division Lead Mr. Rumpelstiltskin Ensures PM receives full assistance and resource use from IT / sales / product fulfillment / customer service / billing / and marketing department division heads.

Project Charter


7 APPROVALS

Prepared by __________________________________ Project Manager

Approved by __________________________________ Project Sponsor

__________________________________

Executive Sponsor

__________________________________ Client Sponsor

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