Anyone who has already worked as a project charter manager knows the problems. Pure chaos, Long discussions, and Resources are scarce. Everyone involved is not satisfied. And the project manager should fix it. Every experienced project manager knows that the secret of success lies in the right cornerstone, the project assignment. The project order regulates the basis for the implementation of a project. The better the project order is drawn up, the fewer points there are later where discussions arise.
The management level in project charter management needs the project orders in order to plan which resources are to be used and how. Good project assignments prevent submarine projects. A submarine project uses the scarce resources without permission, which has a negative impact on the performance of the entire company.
So the principle applies that no project can be started without a project assignment. For the project charter manager, the order is the most important document. The assignment is so important that the project manager should make it their document.
The order contains the points around which the project revolves. The order contains the conditions under which the project is carried out. The assignment defines how much authority the project manager has in terms of budget, staff and other necessary resources.
The order gives the project charter manager a central theme for the project. Of course, every project assignment states who the project manager is and therefore who is responsible. The goals of the project are not only set, they are also divided into high-level goals and non-goals, that is, which goals are important for the project and which goals are no longer included in this project.
Then there are the key deliverables, i.e. the most important interim results. The main risks are also identified so that they can be avoided. The project mandate is intended to create transparency and facilitate planning so that sufficient resources are available even in the event of bottlenecks.
The cost-benefit analysis is a proven tool in both project and project portfolio management to find out whether a project will be profitable and how the benefit can be ensured in terms of costs.
Before I go deeper into the cost-benefit analysis and present two different cost models, I would like to look at thinking in terms of systems in this context, from which we will benefit in the cost-benefit analysis.
The cost-benefit analysis as a classic cost model can definitely be used if there are no standards and projects often use up too late or too much budget.
Nonetheless, the growth-oriented cost model for management and corporate governance is much more interesting and much more stable in the long term because it regards a company as an entire system and the effects from all corporate areas and departments are taken into account and evaluated in the project -benefit analysis.
A decisive difference between the classic and the growth-oriented cost model is that the growth-oriented cost model takes into account clear dependencies between throughput and costs.
In the classic cost model, the project manager only looks locally to ensure that costs are saved as much as possible. There is no connection between how the cost reduction affects the company as a whole.