What is a Project Charter?

Hi everyone,

If you are working in project management and haven't yet used a Project Charter, it is time to change that. This document is not just a document 'nice to have', but it is your project's foundation.

What is a Project Charter?

Project Charter is a formal document that

• authorizes the project,
• grants the project manager the authority to use organizational resources,
• outlines key details like project goals, stakeholders, and objectives.

We can think of it as the project's birth certificate, it marks the official start of your project and sets the stage for everything that comes after.

Why You Need to Know How to Use It

Let's find out why understanding and proper use of the Project Charter is necessary for your project's success.

Clear Project Objectives

The charter defines the project's purpose, high-level goals, and expected outcomes. This clarity ensures that everyone is aligned from the beginning. With a solid foundation, you'll avoid confusion or misalignment later in the project.

Authorized Project

It officially gives the project the green light to proceed and gives you the authority as the project manager to allocate resources, assign tasks, and make decisions. Without it, you are essentially managing a project without formal permission, which can create confusion and inefficiencies.

Identified Stakeholders

The Project Charter helps to identify key stakeholders, their roles, and how they will be involved. In the future, this will help to create a Stakeholders Register and Engagement Plan.

Scope Definition

While the Project Charter doesn't provide all the details, it outlines the project's high-level scope and boundaries. Understanding these helps you avoid scope creep and stay focused on the deliverables that matter most.

How to Use It

The Project Charter should be created and approved before you begin the planning phase. With its help, the project team will have a clear understanding of the project's goals and authority.

Once created, share the Project Charter with your team, stakeholders, and sponsors. This keeps everyone on the same page and accountable for their roles and responsibilities.

While the Project Charter is created early, keep referring back to it throughout the project lifecycle. It serves as the project's reference document for creating a Project Management Plan in future.

Document's Structure

Its structure can be very simple, and you don’t need to describe each section in detail. It shouldn’t be too detailed. Its structure and depth should be based on the needs of your project.

Here is a clear structure of a Project Charter for your convenience. This template may help you outline all the key components required to create a Project Charter.

Project Charter Template

1. Project Title and Description

Title: A clear and concise name for the project.

Description: A brief summary of the project, its purpose, and its goals.

2. Project Purpose or Justification

Purpose: Why is this project being undertaken? Explain the business need or problem that this project addresses.

Justification: The reason this project is necessary and how it aligns with the organization’s strategic objectives.

3. Measurable Project Objectives and Success Criteria

• Define specific, measurable, achievable, relevant, and time-bound (SMART) objectives.
• Outline KPIs that will be used to measure the success of the project.

4. High-Level Project Requirements

Write down a brief description of the high-level requirements or features that the project must fulfill to meet its objectives.

5. High-Level Risks

Identify any high-level risks that might impact the project, such as budget constraints, resource availability, or external factors.

6. Summary Milestone Schedule

• Outline a list of deliverables or phases of the project with dates.

Example:

Phase 1: Project initiation (Date)

Phase 2: First deliverable (Date)

Phase 3: Final project completion (Date)

7. Summary Budget

Provide an estimated budget for the project, including major cost components such as labor, resources, and equipment.

8. Project Approval Requirements

• Outline approval criteria that must be met for the project to be considered successful and accepted by stakeholders.
• Add the list of the steps involved in obtaining approval at different stages of the project.

9. Assigned Project Manager and Authority Level

Mention the details about PM:

• Project Manager: Name of the appointed project manager.
• Authority: The level of authority the project manager has in making decisions, including resource allocation, budget management, and issue resolution.

10. Key Stakeholders and Their Roles

Write down the list of key stakeholders, including the project sponsor, key team members, and any external parties involved in the project. Define their roles in the project’s lifecycle.

11. Project Approval

Include the signatures of key project sponsors or stakeholders who are authorizing the start of the project.

• by Project Sponsor
• by Project Manager
• by Other Stakeholders

Once this document is completed and signed off by the necessary stakeholders, it serves as the official document authorizing the project, detailing its scope, objectives, and structure. It also acts as a reference throughout the project lifecycle to ensure alignment with initial goals.

Do you use Project Charters in your projects? If yes, how does it help during project planning and management?

Looking forward to hearing your thoughts!

Best, Olha