Project Charter

What Is a Project Charter?

A project charter is the statement of?scope, objectives and people who are participating in a project. It begins the process of defining the roles and responsibilities of those participants and outlines the objectives and goals of the project. The charter also identifies the main stakeholders and defines the authority of the project manager.

Key Elements of a Project Charter

The project management charter serves as a reference document. It should define these three main points.

1. What is the essence of the project?? What are the?goals and objectives?of the project? How are you planning to reach and achieve these goals and objectives?
2. Why does this project exist??Provide a shared understanding of the project. The charter should communicate its value and/or reason for existence to every person who has a part in it, from the team to the project manager,?stakeholders,?sponsors, etc.
3. Can we agree on this project??The charter acts as a contract between the project sponsor, key stakeholders and the?project team. By noting the responsibilities of each party involved in the project, everyone is clear what their duties are.

How to Create a Project Charter

So, those are the broad strokes, and while a project statement doesn’t need to go into great detail, there are many more key elements to it than these general statements. Remember, the sections outlined below should be short because they refer to more detailed project planning documents, such as a?scope statement, project budget, risk management plan or request for proposal.

1. State the Project Information

This first section in your project charter is where you’ll include your project’s general information, such as its name, description and who are the project sponsor,?project manager, team members and stakeholders.

2. Define Project Team Roles & Responsibilities

An important function of a project charter is to document who are your team members and what their roles and responsibilities are. You should also identify the main stakeholders. It’s always crucial to note the stakeholders in any project for they’re the ones who you’ll be reporting to and, in a sense, managing their expectations. The sooner you know who they are, the sooner you can build a productive?stakeholder management plan.

3. Identify Project Goals and Project Objectives

It’s important for project managers to differentiate between these two.?Project goals?are the high-level benefits that the project should generate, while?project objectives?are the specific milestones or steps that are needed to complete them. If you don’t have a clear target your project is going to miss the mark.

4. Present a Business Case

A project charter needs a?business case?because it essentially states the reasons for undertaking the project. It helps project managers explain what are the business needs that the project will meet and what are the expected financial benefits and return on investment for project stakeholders. A good way to sell the project is to have a sense of what good the project will bring to sponsors and stakeholders. Figure out what those benefits are and list them here.

5. Outline the Project Scope

What are the in-scope and out-of-scope items??The scope?is the boundaries of your project, such as its start date and when it concludes. So, what are the in-scope items, such as those parts of the project process as opposed to tasks or actions that lay outside the step-by-step process of the project? Outline your key project deliverables and milestones. Later, during the planning phase, you’ll need to create a scope statement that describes the project scope in more depth.

6. Create a Project Timeline

A project timeline is a simplified version of your?project schedule. This project timeline should show key deliverables, milestones and project stages so that stakeholders understand the big picture.

7. Build the Project Budget

While you’ll go into greater detail when you create the?project budget, here is where you want to get a ballpark figure on what project costs you expect. Define the budget for the project and who will have spending authority. Include the estimated costs for the tasks you’ve defined, but be aware that new project requirements and tasks will require adjustment of this budget.

8. Note Key Assumptions & Constraints

It’s important to write down all the assumptions or constraints that can have an impact on the development or execution of your?project plan. Noting key assumptions is very important for stakeholder management, as setting clear expectations is key to success. You also want to have at least an outline of how you’re going to deal with project constraints. If you don’t cover it now, you’ll have to play catch-up later.

9. Log Key Project Risks

Identify all potential risks that could arise in the project so you’re not taken by surprise. Here you’ll want to highlight the most probable or impactful risks so that stakeholders are aware of them early on. This should be followed up by a?risk register?and risk management plan in your project plan, where you detail how you’ll resolve those risks and who on the team is responsible for catching and fixing them.

10. Define Project Requirements and Success Criteria

The project management team and project stakeholders must reach an agreement in terms of success criteria. The most common aspects to determine project success are the?triple constraint?elements, time, cost and scope. But depending on the project, there can be many project requirements such as risk tolerance levels and quality standards.

Project Charter Template and Example

Writing a project charter takes time and effort and it can be challenging if you’re new to project planning.

Best Regards,

Dr. Bassem Assi