Project Charter

The project charter is the document that formally authorizes a project. The project initiator or sponsor issues the project charter. The project charter provides the project manager with the authority to apply organizational resources to project activities. A project manager is identified and assigned as early in the project as is feasible. The project manager should always be assigned prior to the start of planning, and preferably while the project is being developed.

The project charter, either directly or by reference to other documents, should address the following information:

• Requirements that satisfy customer, sponsor, and other stakeholder needs, wants, and expectations 
• Business needs, high-level project description, or product requirements that the project is undertaken to address 
• Project purpose or justification 
• Assigned project manager and authority level 
• Summary of milestone schedule 
• Stakeholder influences 
• Functional organizations and their participation 
• Organization, environmental, and external assumptions and constraints 
• Business case justifying the project, including return on investment 
• Summary of budget

Stakeholder Analysis

Stakeholder Analysis is a technique of systematically gathering and analyzing quantitative and qualitative information to determine whose interests should be taken into account throughout the project. It identifies the interests, expectations, and influence of the stakeholders and relates them to the purpose of the project. It also helps identify stakeholder relationships that can be leveraged to build coalitions and potential partnership to enhance the project's chance of success.

According to Project Management Body of Knowledge (PMBOK), the stakeholder analysis generally follows the steps described below:

• Step 1: Identify all potential project stakeholders and relevant information, such as their roles, departments, interests, knowledge levels, expectations, and influence levels. Key stakeholders are usually easy to identify. They include anyone in a decision-making or management role who is impacted by the project outcome, such as the sponsor, project manager, and the primary customer.
• Identifying other stakeholders is usually done by interviewing identified stakeholders and expanding the list until all potential stakeholders are included.
• Step 2: Identify the potential impact or support each stakeholder could generate, and classify them so as to define an approach strategy. In large stakeholder communities, it is important to prioritize the key stakeholders to ensure the efficient use of effort to communicate and manage their expectations. There are multiple classification models available including, but not limited to:
• Power/interest grid, grouping the stakeholder based on their level of authority ("power") and their level or concern ("interest") regarding the project outcomes;
• Power/influence grid, grouping the stakeholders based on their level of authority ("power") and their active involvement ("influence") in the project;
• Influence/impact grid,  grouping the stakeholders based on their active involvement ("influence") in the project and their ability to effect changes to the project's planning or execution ("impact"); and
• Salience model, describing classes of stakeholders based on their power (ability to impose their will), urgency (need for immediate attention), and legitimacy (their involvement is appropriate).
• Step 3: Assess how stakeholders are likely to react or respond in various situations, in order to plan how to influence them to enhance their support and mitigate potential negative impacts.

Advantages and Disadvantages of Functional Organization

Organizations have their own styles and cultures that influence how project work is performed. The functional organizations is probably the oldest style of organization and is therefore known as the traditional approach to organizing business.

Functional organizations are centered on specialties and grouped by function. As an example, the organization might have a human resource department, finance department, marketing department, information technology department, and so on. The work in these department is specialized and requires people who have the skill sets and experiences in these specialized functions to perform specific duties for the department.

Advantages

• There is an enduring organizational structure.
• There is a clear career path with separation of functions, allowing specialty skills to flourish.
• Employee have one supervisor with a clear chain of command.

Disadvantages

• Project managers have little to no formal authority.
• Multiple projects compete for limited resources and priority.
• Project team members are loyal to the functional manager.