Merck KGaA Project Charter Essay - Essay Prowess

Merck KGaA Project Charter Essay


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Merck KGaA Project Charter

  1. Background To The Project

Merck KGaA  is a global business domiciled in Darmstad,Germany. The organization was founded in 1668, its primary business consists of diversified activities such as life sciences, chemicals, and pharmaceuticals. Globally, it has an estimated workforce of 52000 employees, while 11000 employees are based in Germany, and similarly in North America. By 2015 the organization had invested about $ 565m globally ,not to mention other mega construction projects.

To remain profitable within the niche market, and to maintain a healthy competitive market, the business was scheduled for a transformation, and this necessitated a re-branding to a one brand Merck.

The scope of this initiative was to place the organization in a more productive and competitive realm. The change had to affect its culture in a more transformative manner, to echo the message more vehemently to its partners, affiliates, customers, employees,and community within the new ecosystem.

The project change captured the architectural requirements to reflect the transformative modifications as well. From this angle,the program One Global Headquarters was hatched,completion pegged to be achieved four years later.

Technically, the entire program is made up of 90 interrelated construction programs with an investment  greater than US$200m, and is based in Darmstadt,Germany.

  1. Reasons For The Project

Transforming the organization business culture, re-branding, and positioning the business as dominant player in the market.

To sustain the competitive advantages, the business had to be transformed in all its aspects which consists its physical architecture, employee perception, marketing image, as well as branding. These dynamics are paramount in accelerating invention, product development, personal growth and the business profitability.

The current face of the business doesn’t reflect a global image, and requires a new, more appealing infrastructure and transformation. Due to its previous status, it is in dire necessity of a user-centered redesign, size factorization, architectural redevelopment, modified,and intuitive  construction, accessibility compliance, and coherent marketing strategy. One Global Headquarters aims to cover all these requirements ,and result in a new architecture that is, first and foremost, a tool that will sustain the business core commercial pillars, better management, inventions as well as client satisfaction.

Having a modified architectural design, superior construction, and better,more spacious and easily offices is a major policy of the organization for driving its innovation and product development agendas.

Global image is another factor necessitating the project, the organization having moved from local to global, requires a true international image, and the new infrastructures is being developed within that context.


  1. Project Objectives

The objectives of this project will be:

  • To have a modern Innovation Center that can host more employees, equipped with diverse multimedia libraries, unique co-creation zones, including open areas that are suitable for concentration,cooperation and communication for all.
  • To establish a two-part architectural complex covering approximately 2200 square meters in two portions: a five story Innovation Center,a large restaurant, a basement food court , dining space,and a rooftop terrace. The two complex are to be linked by their individual facades as well as by a joint landing helm at the top.
  1. Constraints, Limitations And Risks

Tight time-frame: Though much of the project work has been underway, much has to be done within the shortest time for the completion within the specified time-frame.

Project team: Internally and externally we have complete confidence in the nominated project team (Joslin, et al, 2016). However, we do recognize that the members on the team also have personal demands on their schedules that might, at some time, become a priority.

Internal stakeholder buy-in: To rightfully develop a business-centered complex, we have to establish a proportion of what we (i.e. Merck staff) think is essential for the construction and what the stakeholders considers to be of the utmost interest for the business, in order to avert conflicts in the future.

Natural disasters: Weather changes are factored though no known severe issues allied to climate have ever been recorded in the area, apart from random rains that can have negative impact on the project in terms of material destruction, and delays in work.

Unexpected increases in material costs: Although much of the needed resources have been procured, unforeseen increase in the cost of materials can hinder the progression of the project,thus the cost of the project could increase and impact the projected budget (Joslin, et al, 2016).

Health and Safety Hazards:Keeping construction workers safe ought to be the top priority for this project. Site conditions in most instances can change speedily, and unprejudiced hazards can emerge at any time. In each situation, fatal accidents can crop resulting in grave injuries or fatalities to  workers. Hence, it should be our objective on the project to ascertain it  accident-free ,and also guarantee every employee in the site is secure and protected against any fatalities.

Labor Shortages and Productivity Concerns :Not having right number of workers available to handle and complete a project or achieve productivity objectives is an immense risk on a new or an ongoing project. Without the adequate and right manpower to undertake the work, the project may suffer from delayed, disrupted and longer construction time-frames, and potentiality delays in completing  the project as projected, and this can result in more costs, hence losses.

  1. Leadership Structure

The leadership structure and the roles of the nominated personnel/team is as reflected here:

1.Project Manager: The project manager will be responsible for piloting the project. A project manager will ascertain that the entire project is achieved without flaws, and it is delivered within the defined and specified time-frame. He/she should provide the vision to the team undertaking the project.

Thus, project manager core roles would entail among others, planing, monitoring,leading, organizing, managing risk, and communicating within the overall project. A project manager carries overall image of the project (Elias, 2016).

  1. Project Team:

This is a group of nominated individuals brought together for the purpose of the project. The scope of the team is to achieve a predefined project goal. The project should either be established temporally or for a longtime engagement. These individuals can be from different business areas or from the same functional area (Elias, 2016). The team along with the project manager collectively determine the success or failure of the project. Some of the roles of the team members may include:

  • Documenting various project procedures
  • Providing skilled expertise
  • Working with other players to establish and achieve the project needs
  • Contributing to the project overall goals
  • Delivering individual tasks within the project time-frame.

3.Project Sponsors:

The project sponsors shall work closely with the existing project manager. This is the group that drive and is the champion of the entire project. The project sponsors naturally belong to the senior business management, and they typically have a stake in the eventual project outcome . They are people who will legitimize all the aspects of the project, and also take part in all elevated project planning (Joslin, et al, 2016). They have the say on how the project is financed and managed. The primary roles of project sponsors consists of:

  • To make major business decisions for the program
  • To sanction the project financing
  • Guarantee availability of all necessary resources
  • Convey the project’s objectives throughout the business management structures.

4.Business Analyst:

The business analyst determines project needs and advises on the right solutions to make an the project or the entire business finer. As portion part of a project group, they are to  guarantee that the project’s goals of resolving an existing difficulty or intensify performance, including adding value to the entire project (Bonnal, et al, 2002). Likewise, they as well  help in maximizing the collective value of the projects defined deliverables. Business analyst obligations are:

  • To help in shaping the project processes
  • To collect essentials from various business clients and units
  • To rightly document diverse technical as well as business requisites
  • To affirm that all project sourced deliverables do meet the standards set
  • To test the anticipated solutions to formalize objectives
  1. Project Risks And Their Mitigation

Each project is faced with diverse and unique risks that require either instant mitigation or long-term mitigation schedules. The anticipated risks and their mitigation in the program entails :

 1.Risks Affiliated To Budget/Financing:

There are  times when the costs of the project go beyond the projected budget and in such scenarios, this nature of project risk emerges (Bonnal, et al, 2002). As a result. uncertainty in project activities linked to the forthcoming period, and in situation when the running cost exceeds the authorized budget, the risk factor as well becomes severe.


In order to avert risks associated to financing, it is prudent for all players to examine the existing or emerging external factors including the internal factors that may along the way  obstruct the working or  completion  of the project, and set aside some funds for mitigating such a situation in the near future.

2.Risks Related To The Resources:

Another critical risk pertains to project risk ,and it is  affiliated to the project resources. Often,this risk crops if the organization cannot afford to acquire the relevant and adequate resources, for instance, funds, materials or as well  skilled employees.


The project must echo a positive image  to the financiers including  the team members associated with the successful completion of the entire project. In this manner the project can draw in more capitalists to execute the monetary aspects and likewise appeal and  attract the diversified skilled employees to complete the project.

3.Lack Of Control Over Staff Priorities:

This nature of project risk is directly related to all employees in the project. It is evident that where an organization doesn’t create  or plan for a substitute back-up for team members, chances are the project could be disrupted or be delayed,and this is a dangerous negative prospect that may ignite other weighty risk factors (Hubbard, 2009).


To avert this risk, a project manager  is required  to undertake the initiative in order to brief out the significance of the project to all involved project managers. The project manager must plan the dates of performing every undertaking as well as render backup for each team member.

  1. Project Stakeholders And How To Interact With Them

Project stakeholders plays a pivotal role in as far a successful completion of a project is concerned. The best way to interact with them and to build a better working relationship is to know them. Recognizing who the stakeholder are and communicating with them adequately and effectively is paramount. Our stakeholders are diversified and from various fields such as life sciences sector, pharmaceuticals, and chemical industries (Shebib, 2003). The stakeholders include:

  1. Top tier management
  2. My project team
  3. Clients
  4. Nominated Contractors and suppliers

Engaging them either individually or collectively would be employed as a way of interacting with them.Each stakeholder have different ambitions and expectations, customized approach would be embraced.

  1. The Vision Of The Project And The Type Of Project Team Culture You Wish To

Promote In Your Team

The project must be in a position to solve the identified problems, create more opportunities, and make the business more prosperous ,and a leader in quality services and products, this is the vision.

When engaging with both internal and external partners, employees and clients, it is crucial to have a close check on relationships, history , attributes and the business corporate culture. As a result, for this project, the corporate culture will be defined by the way the employees or team members behave.

The culture that would be promoted will be based on philosophy of human empowerment, where personal growth and business development will be given more consideration. The scope of human development , that is, teamwork,will give the employees a chance to have that feeling of owning the business, and as result help in advancing our vision widely and profitably.


Bonnal, P. and Gourc, al., (2002), ‘The Life Cycle of Technical Projects’,Project        Management Journal, Vol. 33, No. 1, pp. 12–19.

Elias, A. A. (2016). Stakeholder analysis for Lean Six Sigma project management.

International Journal of Lean Six Sigma.

Hubbard, D.(2009). The Failure of Risk Management: Why It’s Broken and How to Fix It.           N.Y.:John Wiley & Sons.

Joslin, R. and Müller, R. (2016) The relationship between project     governance and project           success. International Journal of Project Management, 34(4), pp. 613-626

Patanakul, P., Iewwongcharoen, B., & Milosevic, D. (2010). An empirical study on the use of      project management tools and techniques across project life-cycle and their impact on        project success. Journal of General management, 35(3), 41-66.

Shebib, B. (2003). Choices: Interviewing and Counselling Skills for Canadians.Ottawa: Pearson Education Canada Inc.