Project Charter Review in Six Sigma Black Belt Define Phase

Project Charter Review: A Comprehensive Guide

What is a Project Charter Review?

A Project Charter Review is a critical quality control checkpoint in the Define phase of a Six Sigma Black Belt project. It involves a formal examination and approval of the project charter document by relevant stakeholders, sponsors, and process experts before the project officially moves forward into subsequent phases.

The project charter is the foundational document that defines the project's purpose, scope, objectives, and authority. A thorough review ensures that the charter is complete, aligned with business goals, and realistic in its expectations.

Why is Project Charter Review Important?

1. Ensures Alignment with Business Strategy
The review confirms that the Six Sigma project directly supports organizational objectives and strategic priorities. This prevents wasted resources on initiatives that don't advance business goals.

2. Prevents Scope Creep
A properly reviewed and approved charter establishes clear boundaries. Without this checkpoint, projects often expand beyond their original intent, consuming additional resources and delaying completion.

3. Secures Stakeholder Buy-in
By involving key stakeholders in the review process, you gain their commitment and support. This reduces resistance to change and improves implementation success.

4. Identifies Issues Early
Review discussions may reveal unrealistic timelines, insufficient resources, conflicting priorities, or unclear objectives before they become expensive problems.

5. Clarifies Roles and Responsibilities
The review process ensures all participants understand who is responsible for what, reducing confusion and improving accountability.

6. Validates Problem Statement and Goal
External review helps verify that the problem is real, measurable, and worth solving, and that the goal is achievable and meaningful.

What Should Be Included in a Project Charter?

Before the review begins, the charter should contain:

Project Title and Description - A clear, concise description of what the project will accomplish.

Business Case - The financial and strategic justification for the project, including estimated benefits and costs.

Problem Statement - A clear, data-driven description of the current situation and the problem to be addressed.

Project Goal - A SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goal that defines success.

Project Scope - What is included and, importantly, what is not included in the project.

In-scope and Out-of-scope Elements - Explicit boundaries to prevent scope creep.

Project Team - Names and roles of the Black Belt, Green Belts, project sponsor, and other team members.

Timeline - Expected start and completion dates, with major milestones.

Estimated Resources and Budget - Financial and human resources required.

Success Metrics and KPIs - Specific, measurable indicators of project success.

Risks and Assumptions - Known risks and assumptions that underpin the project plan.

Sponsor Approval - Sign-off from the executive sponsor.

How Project Charter Review Works

Step 1: Preparation
The Black Belt prepares a comprehensive project charter using available data and stakeholder input. This typically occurs during the Define phase after initial problem identification.

Step 2: Distribution
The charter is distributed to all reviewers in advance (typically 3-5 days before the review meeting). This allows stakeholders time to read and prepare questions.

Step 3: Review Meeting
A formal meeting is conducted with key stakeholders, including:
- Executive sponsor
- Process owner
- Black Belt
- Green Belts (if assigned)
- Subject matter experts
- Other affected departments

Step 4: Presentation and Discussion
The Black Belt presents the charter, highlighting the problem, goal, scope, and resource requirements. Reviewers ask questions and raise concerns.

Step 5: Feedback and Revisions
Feedback is documented. The Black Belt may need to clarify points, revise the charter, or provide additional analysis.

Step 6: Approval and Sign-off
Once all concerns are addressed and the charter is deemed complete and aligned with business goals, the sponsor formally approves and signs the charter. This authorization allows the project to proceed to the Measure phase.

Key Evaluation Criteria During Review

Problem Validity - Is the problem clearly defined, supported by data, and worth solving?

Goal Appropriateness - Is the goal SMART? Is it achievable within the stated timeline?

Scope Clarity - Are project boundaries clearly defined? Is the scope realistic?

Resource Adequacy - Are sufficient resources (people, budget, time) allocated?

Risk Assessment - Have major risks been identified and mitigation strategies considered?

Stakeholder Alignment - Do all stakeholders understand and support the project?

Business Impact - Will project success deliver meaningful business benefits?

Timeline Realism - Is the project schedule achievable given the scope and resources?

Common Issues Found During Charter Review

Vague Problem Statements - Problems described in general terms without supporting data. Example: "Customer satisfaction is low" instead of "Customer satisfaction scores decreased from 85% to 72% in Q3."

Unrealistic Goals - Goals that are too ambitious or lack supporting data. Example: "Reduce defects by 95% in 3 months" without baseline data.

Unclear Scope - Projects that don't specify what is included or excluded, leading to scope creep.

Insufficient Resources - Projects planned without adequate team members, budget, or time.

Missing Success Metrics - Charters without clear, measurable definitions of success.

Weak Business Case - Insufficient justification for why the project matters or what financial benefits it will deliver.

Stakeholder Misalignment - Key stakeholders who don't understand or support the project, or whose interests conflict with the charter.

Exam Tips: Answering Questions on Project Charter Review

Tip 1: Understand the Purpose
Remember that charter review is fundamentally about validation and alignment. Exam questions often test whether you understand that review is a quality gate, not just a formality. If a question asks "Why is charter review important?" think about preventing rework, ensuring business alignment, and securing stakeholder buy-in.

Tip 2: Know the Key Components
Be able to identify what should be in a complete charter. If a question presents a charter and asks "What is missing?" look for SMART goals, clear scope boundaries, resource allocations, success metrics, and sponsor approval. Common missing elements include out-of-scope statements and risk assessments.

Tip 3: Distinguish Between Charter Elements and Detailed Plans
The charter is a high-level document. Exam questions sometimes present overly detailed plans and ask if they belong in the charter. Remember: detailed timelines, detailed budgets, and detailed process steps belong in project management plans or process maps, not the charter. The charter should be concise and strategic.

Tip 4: Recognize Scope Creep Risks
Many exam questions test your understanding of scope management. If a question describes a project charter without clear in-scope/out-of-scope statements, expect a question like "What risk does this charter face?" The answer is scope creep. A well-structured charter explicitly defines boundaries.

Tip 5: Apply the SMART Criteria
When evaluating goals in exam questions, mentally check:
- Specific: Is it clearly defined?
- Measurable: Can success be quantified?
- Achievable: Is it realistic?
- Relevant: Does it align with business goals?
- Time-bound: Is there a completion date?
If any element is missing, the goal needs revision.

Tip 6: Understand Stakeholder Roles
Exam questions often describe charter review scenarios and ask about appropriate stakeholder involvement. Know that:
- Executive Sponsor approves the charter and provides authority.
- Process Owner understands the current process and constraints.
- Subject Matter Experts validate the feasibility of the goal.
- Team Members provide realistic input on resource needs.
If a question suggests approving a charter without sponsor sign-off or without process owner input, that's incorrect.

Tip 7: Identify Red Flags
Learn to spot charter problems. Red flags include:
- No financial justification or business case
- Goal is stated as a solution, not an outcome (e.g., "Implement new software" instead of "Reduce processing time by 40%")
- No baseline metrics or current-state data
- Unrealistic timeline relative to scope
- Vague problem statement
- No identified risks
If a practice question presents a charter with these flags, the correct answer is usually "This charter requires revision" or "Additional review is needed."

Tip 8: Practice Scenario Questions
Many exams include scenario-based questions. Example: "A Black Belt presents a charter with a goal to 'Improve efficiency.' The team needs 6 months, but the sponsor wants results in 3 months. How should the Black Belt respond?" The correct approach is to clarify what "improve efficiency" means specifically, quantify the baseline, discuss whether a 3-month timeline is realistic given the scope, and potentially negotiate either the timeline or the scope. The charter review process includes this negotiation.

Tip 9: Remember the Define Phase Context
The charter review happens in the Define phase, not later. Exam questions sometimes test whether you know what work should be completed by this checkpoint. By the time of charter review, you should have:
- A clear problem statement with supporting data
- A defined goal with success metrics
- Preliminary team composition
- A rough timeline
- Initial resource estimate
You should not yet have detailed process maps, detailed statistical analyses, or solution implementations.

Tip 10: Link to Downstream Phases
Understand how the charter guides subsequent work. A well-reviewed charter ensures that the Measure phase has clear success metrics to track, the Analyze phase knows what problem to investigate, and the Improve and Control phases have a defined target state. Exam questions may ask "A charter is unclear on success metrics. What phase will have the most difficulty?" The answer is Measure, because the team won't know what to measure without clear metrics.

Tip 11: Distinguish Review from Approval
Some exams test whether you understand the difference between review (examining and providing feedback) and approval (formally authorizing). Only the sponsor can truly approve the charter. Reviewers provide input, but the sponsor makes the final decision. If a question asks "Who reviews the charter?" the answer might include multiple stakeholders. If it asks "Who approves the charter?" the answer is the executive sponsor.

Tip 12: Handle Conflicting Stakeholder Input
Scenario questions sometimes present conflicting feedback (e.g., one stakeholder says the goal is too ambitious, another says it's not ambitious enough). The correct answer typically involves data-driven discussion, clarifying the business case, and working with the sponsor to make a final decision. This demonstrates understanding that review is about alignment, not just rubber-stamping.

Practice Exam Questions

Question 1: Which of the following is not an appropriate element for inclusion in a project charter?
A) Project goal with SMART criteria
B) Detailed budget broken down to individual work packages
C) Problem statement with supporting data
D) In-scope and out-of-scope definitions
Correct Answer: B - Detailed budget breakdowns belong in a project management plan, not the charter. The charter should include estimated budget, but not detailed cost allocation.

Question 2: During a charter review meeting, the process owner identifies a risk that the project scope may conflict with an ongoing initiative in another department. What should the Black Belt do?
A) Ignore the concern because the charter is already defined
B) Expand the scope to include the other initiative
C) Document the risk, discuss mitigation strategies with stakeholders, and potentially revise the charter or risk mitigation plan
D) Cancel the project
Correct Answer: C - This is exactly what charter review is for: identifying issues early and addressing them collaboratively before the project proceeds.

Question 3: A project charter states the goal as "Implement a new order management system." What is the primary weakness?
A) The goal is not aligned with business strategy
B) The goal describes a solution, not an outcome; it's not measurable in terms of business impact
C) The goal requires too many resources
D) The goal timeline is unrealistic
Correct Answer: B - This is a common exam topic. A goal should focus on business outcomes (e.g., "Reduce order processing time by 30%" or "Increase order accuracy to 99%"), not on implementing a solution. The charter review would flag this for revision.

Question 4: Which stakeholder has the authority to formally approve a project charter?
A) The Black Belt
B) The process owner
C) The executive sponsor
D) The project review committee
Correct Answer: C - While others review and provide input, only the executive sponsor has the authority to approve the charter and authorize the project to proceed.

Summary

Project Charter Review is a critical quality gate in the Define phase that ensures Six Sigma projects are well-defined, aligned with business goals, have stakeholder support, and are set up for success. Understanding the purpose, components, review process, and common pitfalls will prepare you to answer exam questions confidently and, more importantly, to conduct effective charter reviews as a Six Sigma Black Belt.