Terms of reference
Encyclopedia
Terms of reference describe the purpose and structure of a project
, committee
, meeting
, negotiation
, or any similar collection of people who have agreed to work together to accomplish a shared goal. The terms of reference of a project are often referred to as the project charter
.
Creating detailed terms of reference is critical, as they define the:
They should include:
The terms of reference set out a road map. They give a clear path for the progression, by stating what needs to be achieved, by whom and when. There must then be a suite of deliverables which conform to the requirements, scope and constraints set out in this document.
, immediately after the approval of a project business case
. They are documented by the project manager
and presented to project sponsor or sponsors for approval. Once the terms have been approved, the members of the project team have a clear definition of the scope of the project. They will then be ready to progress with the creation of the remaining project deliverable
s.
This phrase is often used when describing the task that has been assigned to a consultant or advisor. As such, the consultant or advisor may be engaged via a contract with general terms of engagement that also incorporates the terms of reference that specifically describe the consultant's task.
Project
A project in business and science is typically defined as a collaborative enterprise, frequently involving research or design, that is carefully planned to achieve a particular aim. Projects can be further defined as temporary rather than permanent social systems that are constituted by teams...
, committee
Committee
A committee is a type of small deliberative assembly that is usually intended to remain subordinate to another, larger deliberative assembly—which when organized so that action on committee requires a vote by all its entitled members, is called the "Committee of the Whole"...
, meeting
Meeting
In a meeting, two or more people come together to discuss one or more topics, often in a formal setting.- Definitions :An act or process of coming together as an assembly for a common purpose....
, negotiation
Negotiation
Negotiation is a dialogue between two or more people or parties, intended to reach an understanding, resolve point of difference, or gain advantage in outcome of dialogue, to produce an agreement upon courses of action, to bargain for individual or collective advantage, to craft outcomes to satisfy...
, or any similar collection of people who have agreed to work together to accomplish a shared goal. The terms of reference of a project are often referred to as the project charter
Project charter
In project management, a project charter or project definition is a statement of the scope, objectives and participants in a project. It provides a preliminary delineation of roles and responsibilities, outlines the project objectives, identifies the main stakeholders, and defines the authority of...
.
Terms of reference
Terms of reference show how the scope will be defined, developed, and verified. They should also provide a documented basis for making future decisions and for confirming or developing a common understanding of the scope among stakeholders. In order to meet these criteria, success factors/risks and restraints should be fundamental keys.Creating detailed terms of reference is critical, as they define the:
- Vision, objectives, scope and deliverables (i.e. what has to be achieved)
- Stakeholders, roles and responsibilities (i.e. who will take part in it)
- Resource, financial and quality plans (i.e. how it will be achieved)
- Work breakdown structureWork breakdown structureA work breakdown structure , in project management and systems engineering, is a deliverable oriented decomposition of a project into smaller components. It defines and groups a project's discrete work elements in a way that helps organize and define the total work scope of the project.A work...
and schedule (i.e. when it will be achieved)
They should include:
- Success factors/risks and restraints.
The terms of reference set out a road map. They give a clear path for the progression, by stating what needs to be achieved, by whom and when. There must then be a suite of deliverables which conform to the requirements, scope and constraints set out in this document.
Terms of references in a project life cycle
The "terms of reference" are created during the earlier stages of project managementProject management
Project management is the discipline of planning, organizing, securing, and managing resources to achieve specific goals. A project is a temporary endeavor with a defined beginning and end , undertaken to meet unique goals and objectives, typically to bring about beneficial change or added value...
, immediately after the approval of a project business case
Business case
A business case captures the reasoning for initiating a project or task. It is often presented in a well-structured written document, but may also sometimes come in the form of a short verbal argument or presentation. The logic of the business case is that, whenever resources such as money or...
. They are documented by the project manager
Project manager
A project manager is a professional in the field of project management. Project managers can have the responsibility of the planning, execution, and closing of any project, typically relating to construction industry, architecture, computer networking, telecommunications or software...
and presented to project sponsor or sponsors for approval. Once the terms have been approved, the members of the project team have a clear definition of the scope of the project. They will then be ready to progress with the creation of the remaining project deliverable
Deliverable
Deliverable is a term used in project management to describe a tangible or intangible object produced as a result of the project that is intended to be delivered to a customer . A deliverable could be a report, a document, a server upgrade or any other building block of an overall project.A...
s.
This phrase is often used when describing the task that has been assigned to a consultant or advisor. As such, the consultant or advisor may be engaged via a contract with general terms of engagement that also incorporates the terms of reference that specifically describe the consultant's task.
See also
- Project charterProject charterIn project management, a project charter or project definition is a statement of the scope, objectives and participants in a project. It provides a preliminary delineation of roles and responsibilities, outlines the project objectives, identifies the main stakeholders, and defines the authority of...
- Project governanceProject governanceProject governance is the management framework within which project decisions are made. Project governance is a critical element of any project since while the accountabilities and responsibilities associated with an organization’s business as usual activities are laid down in their organizational...
- Project managementProject managementProject management is the discipline of planning, organizing, securing, and managing resources to achieve specific goals. A project is a temporary endeavor with a defined beginning and end , undertaken to meet unique goals and objectives, typically to bring about beneficial change or added value...
- Project managerProject managerA project manager is a professional in the field of project management. Project managers can have the responsibility of the planning, execution, and closing of any project, typically relating to construction industry, architecture, computer networking, telecommunications or software...
- Risk managementRisk managementRisk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities...
- Quality managementQuality managementThe term Quality management has a specific meaning within many business sectors. This specific definition, which does not aim to assure 'good quality' by the more general definition , can be considered to have four main components: quality planning, quality control, quality assurance and quality...
- Business AnalysisBusiness AnalysisBusiness analysis is the discipline of identifying business needs and determining solutions to business problems. Solutions often include a systems development component, but may also consist of process improvement, organizational change or strategic planning and policy development...