Project Charter

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The key takeaways are that the project charter is a document that defines the strategic direction and goals of a BW implementation project. It should include objectives, business drivers, measurements, and obtain executive approval.

The main objectives of the project charter are to define the BW project objectives, business drivers, business measurements, and project measurements to provide strategic direction and gain commitment from management.

Some of the key elements that should be included in the project charter are the executive summary, mission statement, deliverables, work plan, budget, risk assessment, and communication strategy.

Project Charter

BW METHODOLOGY ACCELERATOR
BUSINESS INFORMATION WAREHOUSE SUPPORT CENTER

A plan to define and document key elements


that give overall strategic direction for BW
implementation

SAP (SAP America, Inc. and SAP AG) assumes no responsibility for errors or omissions in these materials.
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PROJECT CHARTER

BW METHODOLOGY ACCELERATOR

Table of Contents
1

INTRODUCTION............................................................................................................................ 1
1.1
1.2

SOFTWARE VERSION SUPPORTED.............................................................................................. 1


REFERENCES............................................................................................................................ 1

ASSIGNING RESPONSIBILITIES................................................................................................. 1

DEFINING BW PROJECT OBJECTIVES.....................................................................................1

DEFINING BUSINESS DRIVERS.................................................................................................. 2

DEFINING BUSINESS MEASUREMENTS...................................................................................2

DEFINING PROJECT MEASUREMENTS.....................................................................................2

INCLUDING OTHER TOPICS....................................................................................................... 3

ASSEMBLING THE PROJECT CHARTER...................................................................................3

OBTAINING APPROVAL FOR THE PROJECT CHARTER..........................................................3

10

SAMPLE BW PROJECT CHARTER DOCUMENT....................................................................3

Introduction
This document helps consultants define and document the key elements that give overall strategic
direction to the project team for the BW implementation. It is essential that the Project Charter be
approved before kick-off, so that the contents can be communicated to all project team members to
provide a solid foundation for the project.
Establishing a customized data warehouse that meets all the needs of a corporation is an immense and
expensive task. For this reason, most data warehousing projects are smaller-scale with well-defined
objectives. Establishing and documenting the scope and objectives for each project is essential.
This document specifically addresses the Project Management/Sponsorship Team members responsible
for drafting the Project Charter, such as the BW Project Manager, the BW Project Sponsor, and the BW
Consultant, but may also provide useful background for other SAP consultants, partners, and companies
implementing BW.

Software Version Supported


This document was written specifically for BW version 1.2, but should apply to all versions of BW.

References

ASAP (R/3) Methodology


BW ASAP Methodology (Phase 1: Project Preparation)
Assigning Responsibilities

The BW Project Manager, BW Consultant, the BW Project Sponsor, and Steering Committee Members
are responsible for creating the BW Project Charter. These individuals may delegate the actual creation of
the document, but cannot transfer final responsibility.
The charter sets the tone for the BW project and should be complete before the project kick-off. Establish
the deadline for completion and define the scope of the charter as soon as possible.
After approval, BW Project Manager, BW Consultant and the BW Project Sponsor must communicate
critical points from the Project Charter and set the expectations of the BW team members and the
organization.

Defining BW Project Objectives

1998 SAP AMERICA, INC. AND SAP AG

TABLE OF CONTENTS

PROJECT CHARTER

BW METHODOLOGY ACCELERATOR

The project objectives give overall strategic direction to the project team. The project objectives statement
should be concise and easy to understand. In addition, by signing off on this statement, company
management provides a high level of commitment.
The projects success or failure will be judged against the project objectives. Initial company expectations
may have been documented during the sales cycle. Work closely with the SAP Sales Executive, the SAP
Consulting Manager, or both to obtain any available information.
Many project sponsors initially do not understand the problems and opportunities that the BW project can
address. It is crucial, at this stage, to evaluate the reporting needs and explain, as specifically as possible,
how the BW project can remedy the situation.
Ask about the reasons for establishing a Data warehouse during interviews with company executive
management and document the results they expect from the investment.

Defining Business Drivers


Business drivers include both internal and external factors that have motivated the company to initiate a
data warehousing project. These may include needs of their customers and actions of their competitors.
These drivers provide insight into the expectations for the product. Ask about the drivers during interviews
with company executive management and document the results.

Defining Business Measurements


Business measurements (also known as key measures) define implementation goals and how they will be
quantified. Ask about these measurements during interviews with company executive management and
document the results.
Business measurements might include the following:

Increased OLTP processing efficiencies resulting from off-loading some reporting functions to BW
Increased availability of reports integrating SAP and non-SAP source data
Improved user friendliness in reports
Improved capabilities for slicing and dicing of data
Increased DSS (Decision Support System) reporting capabilities
Defining Project Measurements

Project measurements (also known as success criteria) are real and quantifiable measures specifically
focused on project-related goals. In some projects, compensation-related incentives are tied directly to
the performance as compared to these measurements.
Business measurements might include the following:

Meeting deadlines for completion of various phases and work packages


Meeting deadlines for deliverables
Working within the established project budget

1998 SAP AMERICA, INC. AND SAP AG

PROJECT CHARTER

BW METHODOLOGY ACCELERATOR

Including Other Topics


Other topics may have to be added to the Project Charter as needed to respond to concerns of any of the
parties involved in the BW project.
The Project Charter might include one or more of the following items:

Executive summary
Mission statement
Deliverables
Work plan
Budget
Risk assessment
Plans for risk management, quality assurance, and team training
High-level project plan
Management responsibility phase approach
Communication strategy
Project completion incentive program
Cost/benefit analysis
Assembling the Project Charter

The Project Charter consolidates the BW Project Objectives, the Business Drivers, the Business
Measurements (Key Measures), and the Project Measurements (Success Criteria) in a single location.
Documenting these items clarifies the understandings of all parties about the proposed BW
implementation.

Obtaining Approval for the Project Charter


When the final draft of the Project Charter has been approved by its authors (BW Project Manager, BW
Consultant, the BW Project Sponsor, and the Steering Committee members), the Steering Committee
members should present it to the executive management of the company. The charter defines overall
strategic direction for the project. When all parties reach agreement and approve the charter, the key
elements of the project are documented and are ready for communication to the project team.

Sample BW Project Charter Document


A sample Project Charter document is provided for you to use as a template in creating your own Project
Charter document.

1998 SAP AMERICA, INC. AND SAP AG

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