Project Charter - AL MAHA CONSULTING LTD. · The Project Charter focus and scope are limited to the...

Project Charter Charter Jet BPR and OD Project

Maha Abu Ghoush AL MAHA CONSULTING LTD. www.almahaconsulting.ca

2017

Version 0.1

http://www.almahaconsulting.ca/

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Project Charter | Charter Jet BPR and OD Project

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AL MAHA CONSULTING LTD.| WWW.ALMAHACONSULTING.CA

CONTENTS

1 Executive Summary ............................................................................................................ 3

2 Objectives and Outcomes ................................................................................................... 4

2.1 Objectives .................................................................................................................... 4

2.2 Expected Outcomes ..................................................................................................... 4

3 Scope & Key Milestones ..................................................................................................... 5

3.1 In-Scope ...................................................................................................................... 5

3.1.1 Essential Tasks ..................................................................................................... 5

3.2 Out-of-Scope ............................................................................................................... 5

3.3 Key Dates and Milestones ........................................................................................... 6

4 Key Assumptions & Success Factors .................................................................................. 7

5 Risks & Potential Mitigating Actions .................................................................................... 8

6 Project Phases & Key Deliverable ....................................................................................... 9

6.1 Design Phase (Processes/Roles) ................................................................................. 9

6.2 People Transition Design ............................................................................................10

7 Timeline & Implementation Strategy ...................................................................................11

8 Project Team Structure & Roles .........................................................................................12

8.1 BPR/OD Team Organizational Structure .....................................................................12

8.2 BPR/OD Team Roles and Responsibilities .................................................................12

8.2.1 Project Sponsor ...................................................................................................12

8.2.2 Steering Committee .............................................................................................13

8.2.3 BPR/OD Implementation Consultant ....................................................................14

8.2.4 In-Scope HQ Services and [COMPANY] Departments .........................................15

9 Communications and Control .............................................................................................16

9.1 Communications Planning ..........................................................................................16

9.2 Review and Approvals ................................................................................................16

9.3 Reporting Requirements .............................................................................................16

9.4 Evaluation Plan ...........................................................................................................16

10 Appendix A – Project Phases Timeline ...........................................................................17


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Document Information

Release No. V0.1

Release Date 10/05/2017

Document Title Project Charter | Charter Jet BPR and OD Project

Reference PROJECT MANAGEMENT OFFICE LIBRARY

Revision History

VN Date Remarks Authored/Revised By

D0.1 10/05/2017 1st draft of the Project Charter | Charter Jet BPR and OD Project.

Maha Abu Ghoush

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Distribution List

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1 EXECUTIVE SUMMARY

In an industry characterized by intense competition and high cost structures, streamlining every

aspect of operations to bring in efficiencies is a high priority. Improving management’s visibility

to operational and business performance is imperative to achieve this. Accordingly,

[COMPANY] desires to immediately address not only flight operations, ground operations, in-

flight service, and the customer journey, but more importantly, the organizational development

aspects and teamwork necessary to evoke and sustain real change to maximize profits and to

be in a position to deliver on [COMPANY]’s business plan objectives of becoming a leading

global VIP and Executive Charter Operation within five years, and to become an aircraft

management company, a significant FBO and MRO player within the region, comparable to that

offered by leading executive airlines the world over.

Over the past week, there has been an effort to understand and identify the priority areas for

Business Process Re-engineering (BPR) and Organizational Design (OD) necessary to bring

about effective change in [COMPANY].

The Management Consultant met with the COO and Accountable Manager of [COMPANY],

regarding a possible organizational development and process streamlining project. Also in

attendance at that meeting was Corporate HR Director, who, together with the COO will

comprise the Project’s Steering Committee. During the meeting, the COO described

[COMPANY]’s current challenges, which included the need for attention to [COMPANY]’s

organizational structure vis-à-vis the GCAA approved structure, the flight cycle, the customer

journey, and the Corporate HQ allocated services to [COMPANY], mainly the HR and the

Payroll function from Finance.

The Management Consultant described how an overall systematic approach to organizational

development and business process streamlining would be the most effective approach to

addressing [COMPANY]’s key issues. The Management Consultant added that the project

implementation is comprehensive across [COMPANY] and impacts its overall business

processes. Therefore, focusing on the business process changes as much as the required

organizational changes is critical. Virtually all of [COMPANY]’s staff will be directly or indirectly

impacted by this project. Therefore, managing this change across the people impacted and

proactively planning for people transition to their new business processes and organizational

roles would be critical as well.

After some discussion, participants agreed that a systematic approach to business process

reengineering and organizational development and design would be highly useful to

[COMPANY]. Corporate HR Director asked the Management Consultant to provide a Project

Charter that described more specifics on how the Management Consultant might work with

[COMPANY]. This Project Charter itemizes the Management Consultant’s proposed project and

includes: objectives and outcomes; scope and key dates; assumptions and success factors;

risks and mitigating actions; BPR/OD phases and key deliverables; timeline and implementation

strategy; team structure—including roles and responsibilities; and communications planning and

control.


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2 OBJECTIVES AND OUTCOMES

2.1 Objectives

The project aims to provide [COMPANY] with effective processes to improve its organizational

functioning, with a special focus on the interrelationship between the customer journey and the

flight cycle. Additionally, a key objective is to implement an organizational structure that would

mostly fit the existing and future needs of [COMPANY], and vis-à-vis the GCAA standards. In

such a highly knowledge-based service market as the airline industry, a traditional, top-down,

highly divisionalized, industrial model of operations and governance is manifestly inappropriate.

HRM expertise in general and organisational development in particular are required to

spearhead the strategic development of a customer-centric, learning-oriented workforce that is

capable of adapting quickly to the strategic goals and change imperatives facing the airline

industry.

2.2 Expected Outcomes

The following outcomes are expected to be achieved from the implementation of the Charter Jet

BPR and OD Project:

1. Effective management governance, including oversight and operations.

2. Clear delineation and coordination of management and employee roles.

3. Structures and processes to guide [COMPANY] management and all employees toward

achieving common vision and goals.

4. Enhanced credibility and image among stakeholders.

5. Overall, more proactive direction-setting, decision-making and problem-solving within

sales, customer service and operations departments.

6. A clear understanding of the role of HR and Payroll as part of the Corporate HQ

allocated services to [COMPANY].


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3 SCOPE & KEY MILESTONES

3.1 In-Scope

The scope of the Business Process Re-engineering (BPR) and Organizational Design (OD)

includes Sales and Customer Service (and their associated sub-departments), Operations

(including Ground Operations and Flight Operations), and the HR and Payroll/Finance function

allocated from the Corporate HQ, which are directly impacted by the proposed change.

3.1.1 Essential Tasks ▪ Organizational assessment and development planning, including situational review

and assessment, benchmarking similar organizations – such as Royal Jet and

Swissport, as well as industry best-practices, including corporate sustainability

models for airline business, and HRM strategy in the global airline industry – with a

focus on organisational development, resulting in an Organizational Development

and BPR Implementation Plan.

▪ Proposal and design of alternative organizational models with levels of employees,

and an overview of key functional areas for each department, resulting in an updated

Operations Manual, and taking into consideration the Paterson System for job

evaluation and grading adopted by [Corporate], and the GCAA approved structure.

▪ Preparation of a set of questions and conducting interviews/brainstorming sessions

among the key stakeholders, resulting in a number of flowcharts that depict the

proposed new processes for flight operations (including the four sub-processes: pre-

flight, flight execution, post flight, and mission review and follow-up) the customer

journey (including all 23 guest touch points), the HR function and the Payroll (from

Finance) function of the HQ services.

3.2 Out-of-Scope

The Project Charter focus and scope are limited to the Operations, Sales, and Customer

Service departments, as well as the HR and Payroll functions within the [Corporate] Services.

While this project includes other department members to participate at the right time during BPR

and OD efforts and gain an understanding of how the business processes impact all

[COMPANY] functions, reengineering the Flight Safety, Crew Training, Maintenance, Security,

and QA & Safety business processes or activities are NOT in the scope of this BPR and OD

effort. Having said that, the Management Consultant will assess and weigh manpower needs in

all departments within [COMPANY] – as part of the HR review – and can also provide some

framework, direction and analysis to these departments should they perform their own

reengineering efforts, related or unrelated to this project’s BPR and OD activities.


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3.3 Key Dates and Milestones

Milestone Projected Date

Steering Committee Charter Signoff Select Date.


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4 KEY ASSUMPTIONS & SUCCESS FACTORS

The following are key assumptions and success factors based on professional experience and

benchmarking best practices. These success factors are a starting list and the intent is to build

on this throughout the life of the project. Some context in understanding these success factors is

that the more of these that are adhered to in the project, the higher the chances of overall

success. As projects stray from these success factors, the chances of overall success reduce.

This list also provides a foundation for many of the recommendations made in this document.

Project Steering Committee and [Corporate] Leadership will provide the required

guidance, remove obstacles and charge the organization to provide the needed

resources.

Knowledgeable and experienced staff resources are available for focus

groups/interviews participation.

The organizational design effort will be a sensitive topic for impacted department

members. Giving department personnel a good understanding of how their

departments and roles will change as early as possible in the project will help people

assimilate the changes more effectively.

This overall BPR and OD project must be viewed as a “company owned” project and

not owned by individual departmental silos.

Timeframe, i.e. short term vs. long-term measures and impacts of organizational

changes and processes should be taken into account.

Macro and micro structure – macro is about the division of work between departments

and the interrelationships between them (for instance sales and customer service)

whereas micro is about tasks of their particular members, number of members, levels

and grading, etc.


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5 RISKS & POTENTIAL MITIGATING ACTIONS

The following are some risks related to the BPR and OD efforts which have been identified at

the time of creating this Project Charter. This serves as a “starting list” for risks since additional

risks may be identified over time. Proactively identifying risks along with mitigating actions is

critical to the success of this BPR and OD effort.

RISK POTENTIAL MITIGATING ACTIONS

• Expectation of “zero-sum” staffing approach presents the risk that if we define more demanding “to-be” roles, the current staff cannot fulfil these new roles based on current skills and/or experience.

• Identification of “skill gap” training as soon possible

during People Transition Design so that additional

training can be made available to these people to

position them better to qualify for a “to-be” position.

• Invest in department leaders (BPR Process Leads)

from the start of the project to return to their

departments upon project completion in order to

play key leadership roles in helping people execute

their business processes using the new optimized

processes.

• Some of the proposed organizational models may drive significant consolidation of current departments into sub-departments, which consequently impact many current roles/positions. The risk with such a major organizational change is the degree of acceptance by the existing departments.

• Department Directors and sub-department manager

roles become more of business process expert

roles with combination of supervision and

processing responsibilities.

• Need to leverage decision approval process and

include executive level approval (Corporate HQ) for

such decisions with major organizational and people

implications.

• No buy-in from impacted stakeholders.

• The Management Consultant will communicate

frequently with the impacted stakeholders.


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6 PROJECT PHASES & KEY DELIVERABLE

6.1 Design Phase (Processes/Roles)

In the Process/Role Design phase, the Management Consultant will seek the most efficient and

effective way to create the Customer Journey and Flight Cycle “to-be” process maps and roles

by leveraging available resources and not “re-inventing the wheel”. Therefore, the Management

Consultant will rely on several key inputs to help drive the “to-be” processes and roles. Among

the key inputs to those Customer Journey and Flight Cycle “to-be” process maps and

organizational structures are: [COMPANY] business plan, operations manual, HR Policy

Manual, “as-is” organigrams, “as-is” process maps (mainly the customer journey process), wish

list from previous “as-is” process sessions, and key recommendations from “as-is” process

sessions.

Customer Journey, Flight Cycle, HR and Payroll “to-be” process maps also include the roles

that will be performing the process steps (i.e. swim-lanes). The process maps will identify other

departments or sub-departments impacted by that process and how they are involved. The final

results are documented “to-be” process maps and roles, which serve as key content for

communications and generally helping other stakeholders understand the decisions that have

been made regarding how processes will work in the future. Role definition involves taking the

roles that were associated with process steps in the “to-be” process maps and creating role

descriptions. Finally, the effort of understanding and documenting all the “to-be” process maps

and associated roles provides key input to the next phase of People Transition Design.

Organizational Design includes making decisions around organizing departments by process vs.

function, consolidating or removing existing departments and/or sub-departments, designing

how affected staff will be part of “to-be” departments, relationship of positions/roles within a

department, etc. Some of these decisions may have been discussed and resolved as part of the

situation analysis but Design phase is when we confirm and add key decisions related to the

company’s future organizational structure.

In summary, the key deliverables from this Design phase are:

Customer Journey and Flight Cycle “To-Be” Business Process Maps

HR and Payroll “To-Be” Business Process Maps

[COMPANY] Departments “To-Be” Role Descriptions

HQ Services HR and Payroll “To-Be” Role Descriptions

[COMPANY] “To-Be” Organizational Design Schematics


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6.2 People Transition Design

This phase starts after the completion of the Process Design phase. It takes the “to-be” roles

and breaks them into logical positions within the “to-be” departments and then gets into the

people transition activities associated with moving to the new department organizational design

in support of the new Customer Journey, Flight Cycle, and HQ Services (HR & Payroll) “to-be”

process maps.

The following are the key activities and deliverables in this phase:

Define job positions

Identify number of people needed per job position, including grading and levels of

employees according to the Paterson Grading System

Define organizational structure(s) with position relationships

Mapping people to positions (first draft)

The above activities will have vast implications on several HR functions including:

Identification of position shortages / overages

Development of staff retention plan

People recruiting and selection

Physical environment design

Development of people transition plan

Performance of “skill gap” analysis

Planning and execution of “skill gap” training


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7 TIMELINE & IMPLEMENTATION STRATEGY

This BPR and OD effort will take approximately 15 weeks from the start of the Analysis Phase –

reviewing and validating “as-is” processes and organizational structures (Fit/Gap) to end of

People Transition Design. See APPENDIX A – Project Phases Timeline. Before the end of

People Transition Design, there will be a determination regarding what additional BPR and OD

efforts will be required.

A more detailed timeline of the BPR and OD Design Phase and People Transition Phase will be

developed after the Project Charter sign-off and during the Fit/Gap phase.


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8 PROJECT TEAM STRUCTURE & ROLES

8.1 BPR/OD Team Organizational Structure

8.2 BPR/OD Team Roles and Responsibilities

8.2.1 Project Sponsor Guidance and decision making; recommendations for business process and organizational

design decisions will be facilitated by the BPR/OD Implementation Consultant and approved by

the Executive Steering Committee. It is anticipated that some issues with significant

organizational impact will be uncovered, or that processes that span across areas that are

outside the scope of the BPR and OD Project will be revealed. For those issues, the BPR/OD

Implementation Consultant will discuss with the Executive Steering Committee and/or Executive

Sponsor level, as needed, as early as possible to help set the project direction before

completing process or organizational designs.

Project Sponsor

Corporate HR Director

BPR/OD Implementation Consultant

Manaagement Consultant

Corporate HR Policy & Procedures Officer

allocated to [Company]

Corporate HR Administrator allocated

to [Company]

Corporate Payroll/Finance Function allocated to [COMPANY]

Executive Steering Committee


[Company] COO & Accountable Manager

Flight Operations

Sales and Customer Service

Ground Operations


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8.2.2 Steering Committee

8.2.2.1 Primary Functions

The primary function of the Steering Committee is to participate in the planning and oversight of

the Charter Jet BPR and OD Project, including the achievement of outcomes of the project. The

Steering Committee will monitor and review the project status, as well as provide oversight of

the project deliverables rollout.

The Steering Committee provides a stabilizing influence so organizational concepts and

directions are established and maintained with a visionary view. Members of the Steering

Committee ensure business objectives are being adequately addressed and the project remains

under control. In practice, these responsibilities are carried out by performing the following

functions:

Monitoring and review of the project at regular Steering Committee meetings;

Providing assistance to the project when required;

Controlling project scope as emergent issues force changes to be considered,

ensuring that scope aligns with the agreed Project Charter and business requirements

of stakeholder groups;

Resolving project conflicts and disputes, reconciling differences of opinion and

approach;

Formal acceptance of project deliverables.

8.2.2.2 Approval Responsibilities

The Steering Committee is responsible for approving major project elements, such as:

Prioritization of project objectives and outcomes as identified in the Project Charter;

Deliverables as identified in the Project Charter’s Scope;

Review of the Schedule;

Risk management strategies, ensuring that strategies to address potential threats to

the project's success have been identified, estimated and approved, and that the

threats are regularly re-assessed;

Project management.

8.2.2.3 Steering Committee Membership

The Steering Committee will consist of the following stakeholder members:

Name Role


[Company] COO / Accountable Manager


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8.2.2.4 Steering Committee Meetings

8.2.2.4.1 Meeting Schedule and Process

The Team will meet monthly or as required to keep track of issues and the progress of the

project’s implementation and on-going company-wide support to its stakeholders.

The Project Sponsor (also Steering Committee Member) will organize and schedule the

meetings, and will prepare the Agenda for Steering Committee Meetings.

8.2.2.4.2 Meeting Agenda

At each meeting, project status will be reported to the Steering Committee members by the

BPR/OD Implementation Consultant using the following agenda outline:

A. Introductory Items such as:

• Introductions

• Review Agenda

• Review of actions arising from previous Steering Committee meetings

B. Review Project Status

• Overall Status

Scope status

Schedule status

Reason for deviation from green—if any

• New issues arising since the last Team meeting

• Milestone review

• Formal acceptance of deliverables

• Accomplishments against last meeting’s plans

• Plans for the next reporting period

• Outstanding issues, open points, project conflicts

• Specific requests for assistance of the Steering Committee

C. Consideration of other items relevant to the project

D. Review and summarize new actions from this meeting

E. Plans, date and location for next meeting

8.2.3 BPR/OD Implementation Consultant ▪ Overall leadership / management of BPR and OD efforts during fit/gap, Process/Role

Design and People Transition phases

▪ Responsible for planning and execution of Customer Journey and Flight Cycle “to-

be” process/role map development

▪ Work closely with [COMPANY] Chief Operating Officer/Accountable Manager and

other identified project stakeholders (impacted department and sub-department

directors)

▪ Assure OD activities as well as Customer Journey and Flight Cycle “to-be” process

maps are completed as planned


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▪ Assure that Customer Journey and Flight Cycle “to-be” processes/roles are

synchronized across the functional areas

▪ Identify, monitor, report and resolve BPR/OD issues when possible and escalate to

Business Sponsor/Steering Committee when necessary

▪ Work with departments leadership to develop recommended [COMPANY] “to-be”

roles/organizational design and new “to-be” positions

▪ Help departments leadership map people to new “to-be” positions within their

departments

▪ Key liaison between [COMPANY] allocated HR Administrator and Corporate HR

8.2.4 In-Scope HQ Services and [COMPANY] Departments

These are key players in the fit/gap, Process/Role Design and People Transition Design phase

of this project, as BPR and OD implementation and successful outcomes would depend on the

full commitment of these project stakeholders.

It is essential that they understand the nature and purpose of the BPR/OD project, and the

potential benefits that can accrue from its implementation. Project Sponsor and Steering

Committee need to take charge of the BPR/OD efforts and to ensure that the majority of

[COMPANY] employees are involved in its implementation.


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9 COMMUNICATIONS AND CONTROL

9.1 Communications Planning

The Communications Planning process was initiated with gathering the required information

regarding stakeholders and the project itself; these sources include a project analysis,

stakeholder interviews, communication vehicles, and project timeline. The second step of the

process is to develop and finalize the Communications Plan, which will be communicated to all

project stakeholders. The Communications Plan describes the “what”, the “why”, the “who”, the

“when” and the “how”, and includes topics such as initial communications, status reports,

steering committee meetings, and close-out communications. This plan sets out the timing and

responsibilities of essential items for individual project members and the overall project.

9.2 Review and Approvals

All key BPR/OD deliverables will be reviewed with the Steering Committee prior to distribution to

other project stakeholders to ensure deliverables deliver on intent. Steering Committee

members will be presented with progress reports and outcomes of the BPR/OD efforts.

9.3 Reporting Requirements

BPR/OD progress updates will be provided to the Steering Committee on a monthly basis.

Other key stakeholders will be provided highlights and updates as required. Key project

standing meetings will be established post kickoff to ensure frequent and valued interaction with

the intent of providing status, resolving issues, and reviewing work product.

A formal Communications Plan will be developed to identify stakeholders, their need for

information, the vehicle and frequency in which it is to be delivered.

9.4 Evaluation Plan

The Project Sponsor and Steering Committee are involved in every key aspect of the

progression of the BPR/OD Project from a guidance perspective, as well as issue resolution and

oversight. As part of this Project Charter, the scope of the BPR/OD is defined and

communicated and will be planned in detail following the kickoff meeting to address any

potential concerns as well as increase the ability to mitigate risks. Formal reviews will be

established between the BPR/OD Implementation Consultant and the Steering Committee.


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10 APPENDIX A – PROJECT PHASES TIMELINE

The actual timing of the project starts after the Project Charter signoff. However, the

approximate time required to develop the organizational design and business processes

streamlining activities is 15 weeks.

PHASE / ACTIVITY W

1

W

2

W

3

W

4

W

5

W

6

W

7

W

8

W

9

W

10

W

11

W

12

W

13

W

14

W

15

W

16

W

17

Pre-Planning, Change and

Project Management

Situational Analysis and Review

BPR/OD Project Charter

Project Management and Administration

Fit/Gap Functional

Requirements and

Specifications

[COMPANY] Organigrams (GCAA approved vis-à-vis Corporate structure)

Paterson System of Job Evaluation

[COMPANY] Operations Manual vis-à-vis the AOC

[COMPANY] Authority Manual

[COMPANY] HR Policy Manual

[COMPANY] Payroll/Finance Procedures

Customer Journey Process (23 Guest Touch Points)

Flight Cycle

• Pre- Flight Preparation

• Flight Execution

• Post Flight

• Mission Review & Follow-up

Design “To-Be” Processes

and Roles

Customer Journey and Flight Cycle “to-be” business process maps

HR and Payroll “to-be” business process maps

“To-Be” organizational design schematics vis-à-vis Paterson System and GCAA approved structure

Departments “to-be” role descriptions

People Transition Design

Define job positions

Identify number of people needed per job position

Define organizational structure with position relationships

Mapping people to positions (first draft)

W: Weeks


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