project charter bundle

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Project Charter Format

1. Project Title

[Insert the title of the project here]

2. Project Overview

Provide a high-level description of the project, its objectives, and its intended impact.

3. Business Case

Briefly explain the business need or problem the project aims to address, and the benefits of completing the project.

4. Project Objectives

List the specific, measurable, achievable, relevant, and time-bound (SMART) objectives of the project.

5. Project Scope

Clearly define what is included in the project and what is excluded (in-scope and out-of-scope items).

6. Deliverables

List the key deliverables or outputs of the project.

7. Milestones

Identify key project milestones with corresponding target dates.

Milestone Target Date
Milestone 1 [Date]
Milestone 2 [Date]
Milestone 3 [Date]

8. Roles and Responsibilities

List the key roles and responsibilities of team members and stakeholders.

Role Name Responsibilities
Project Sponsor [Name] [Responsibilities]
Project Manager [Name] [Responsibilities]
Team Members [Names] [Responsibilities]

9. Stakeholders

Identify key stakeholders and their interest, influence, and role in the project.

Stakeholder Role Interest/Influence
[Name] [Role] [Interest/Influence]

10. Project Assumptions

Document any assumptions made during the planning of the project.

11. Project Constraints

Highlight any constraints that could impact the success of the project (time, budget, resources, etc.).

12. Risks and Mitigation

Identify potential project risks and their corresponding mitigation strategies.

Risk Impact Mitigation Strategy
[Risk 1] [Impact] [Mitigation Strategy]
[Risk 2] [Impact] [Mitigation Strategy]

13. Budget and Resources

Outline the estimated budget, resources required, and any financial constraints.

Resource Quantity Cost
[Resource 1] [Quantity] [Cost]
[Resource 2] [Quantity] [Cost]

14. Project Timeline

Provide an overview of the project timeline, key activities, and deadlines.

15. Approval and Sign-off

Include the signatures of key stakeholders and the project sponsor to indicate approval of the charter.

Name Title Signature Date
[Name] [Title] [Signature] [Date]
[Name] [Title] [Signature] [Date]

Project Charter Samples

What is a Project Charter?

A project charter is a formal document outlining the project’s scope, purpose, team members, and respective roles and duties. In addition, it outlines the project manager’s authority, includes a list of key stakeholders, and describes the project’s implementation, potential advantages, risks, and constraints. Typically, the project charter is created at the beginning of a project’s lifecycle and serves as a reference throughout its progress. Typically, the project manager drafts the example charter and delivers it for approval to the project’s stakeholders or sponsors. Once all parties sign the agreement, the project can officially begin. However, the sponsors can reject the charter if they disagree with the project’s stated objectives or money allocation. Under such circumstances, the project manager can discuss the project’s specifics to address the issues. According to statistics, a staggering 97% of firms consider project management crucial to company performance and organizational success. You can also see more on Project Roadmaps.

Elements of a Project Charter

Elements of a Project Charter

The project charter documents certain fundamental aspects, so everyone has a common idea of the upcoming work. The phrase “charter” is used to describe any form of activity, such as defining what a team does. You may also have a PMO charter outlining the team’s work scope. Chartering is a formal project planning activity, and we discuss it in further depth in our Project Management Fundamentals training course. Here are the primary components of a project charter as an introduction.

Project Background: Please include a few paragraphs describing the project’s purpose and the problem it aims to tackle. You can tell why the project was begun. Still, there will be a unique opportunity to delve deeper into advantages later, so keep this part focused on the project’s context and business factors.Project Objectives: Include a list of the project’s objectives. These will likely be stated in the business case if one is present. Some projects begin without a business case, so if you have no further information, speak with the project sponsor. The purpose of establishing objectives is to ensure that everyone understands what the project intends to accomplish. You can include both the broad vision and the specific list of goals. You can also have limits that will determine the scope of the project. You can also see more on Project Manager Proposal. Benefits: Create a paragraph outlining the general project benefits you anticipate delivering. Include as much information as possible, or include a link to a publication where readers can learn more about the benefits expected. It is also helpful to add a bulleted list of advantages so that you may refer to it after the project to determine how many were realized. You can include a significant portion of the project charter in the project closing document, as this file compares what you promised to perform (the project charter) to what you delivered.Stakeholders: Typically, the section on stakeholders comprises a significant portion of the project charter. Include the personnel and experience required for the project team, the customer or client representative, the governance framework and who participates in it, and any other key decision-makers. At this stage of the project, you may not know the names of the participants. Thus it is acceptable to keep to roles. You may include titles if you have them, which you would if this was an approved project for a customer because you would know who the client is.You can also see more on Project Scope Statements.Initial Risk: The business case or any conversations may have identified risks and challenges affecting the project. A quick summary of these can be included in the project charter. It doesn’t take long for a skilled project team to identify dozens of risks. Thus the document’s contents should be prioritized. If your risk log is already being compiled as you gather project information, select the top five threats to highlight in the charter and direct readers to your document repository or online project management tools to view the remaining hazards. You can similarly approach problems. Include a handful of the essential issues the stakeholder community should be aware of, followed by a link to where people can access additional information and the remainder of the topics with lesser priority.Budget: You won’t have much specific information on the budget yet, but you may have enough to add a section describing where the funding will come from, how much it will be overall, etc. The breakdown will result from your meticulous preparation and estimation of each task. Save time by obtaining the necessary budget information from the business case. It is doubtful that anything has changed since the business case was authorized, so if one exists, utilize its financial data to enter the budget portion of the charter. You can also see more on Project Checklists. Timeline: Again, you will not have a complete project calendar at this stage, but you should include significant dates and milestones where applicable. In a perfect environment, you would complete all estimation and planning before providing anyone with definitive project delivery dates. Nevertheless, in our experience, project sponsors and senior executive teams almost always have expectations regarding when the work will be completed. Clients frequently have strict implementation deadlines, and launch dates may be related to other business events, such as the beginning of a new season or fiscal year. Consequently, you likely have some time-sensitive information to add to the project charter. You can also see more on Project Planning.

How to Create a Project Charter

How to Create a Project Charter

Step 1: Define Project Objectives

To create a Project Charter, start by defining the project’s main objectives. Clearly state the goals, such as improving operational efficiency, launching a product, or solving a specific problem. Objectives must be SMART (Specific, Measurable, Achievable, Relevant, Time-bound) to ensure clarity and focus. Collaborate with key stakeholders during this step to ensure their needs are reflected in the objectives. This step sets the tone for the entire project, so precision is essential.

Step 2: Identify Scope and Deliverables

Next, outline the project’s scope and deliverables. Define the work that needs to be done and the outcomes expected at each stage of the project. Clearly define project exclusions, ensuring that tasks outside the scope are documented to avoid confusion later. This step helps stakeholders understand what the project will and will not deliver. Additionally, defining deliverables keeps the project team on track, ensuring a smooth workflow. You can also see more on Project Plans.

Step 3: List Key Stakeholders

In this step, list all stakeholders who have a vested interest in the project. Identify key stakeholders, including sponsors, clients, team members, and regulatory bodies. Their roles and expectations should be clarified. Assign roles and responsibilities to each stakeholder. This step ensures transparency, prevents role ambiguity, and promotes accountability. Effective stakeholder engagement is critical for project success.

Step 4: Establish Milestones and Timeline

Outline the key milestones and create a project timeline. Divide the project into phases and establish major checkpoints to track progress. Each milestone should have an associated deadline. Break down larger tasks into smaller, manageable steps. Milestones provide stakeholders with a clear view of project progress. This step allows project managers to measure the project’s performance and manage deadlines effectively.

Step 5: Define Project Governance and Resources

Finally, define project governance and allocate necessary resources. Appoint the project manager, and specify their authority and responsibilities. Identify the financial, human, and material resources required for project execution. Governance outlines the decision-making process and escalation procedures. Resource allocation ensures that team members have the tools they need to complete tasks. This step formalizes the project manager’s authority to lead the team and make decisions. You can also see more on Charter Agreement.

A Project Charter is the cornerstone of successful project management. It provides project authorization, scope clarity, and stakeholder alignment. By defining objectives, deliverables, stakeholders, and resources, it establishes a strong foundation for project success. The charter facilitates accountability, risk management, and decision-making throughout the project lifecycle. Crafting a thorough Project Charter ensures that teams work with clear goals and stakeholders remain aligned, reducing confusion and scope creep while promoting project efficiency and timely completion.

FAQs

What should a project charter include?

Only three items should be included in a project charter: the project’s objectives, scope, and responsibilities. Create a project plan once your charter has been authorized. Your project plan expands on your project charter to provide a more detailed outline of the project’s essential components. You can also see more on Project Management Plans.

Is project charter a contract?

The project charter is the key document that outlines the project’s first requirements to satisfy stakeholders’ expectations. A project charter is an agreement between a company dedicated to creating a product or service and a client who wants and receives the product or service.

Is a project’s charter legally enforceable?

Typically, the document is not legally binding. It can be signed for either operational or project work. It is created exclusively for a project. Without external direction, support, or oversight, there is no need for a contract for projects completed internally. You can also see more on Project Work Proposal.

How does a Project Charter impact project success?

A Project Charter plays a critical role in project success by setting clear objectives, defining scope, and ensuring alignment among stakeholders. It empowers the project manager to allocate resources and make decisions. Without a well-defined charter, projects risk delays, misunderstandings, and increased costs due to scope creep and misaligned goals. The charter also facilitates accountability, risk management, and improved project governance.

What happens if a project does not have a Project Charter?

Without a Project Charter, projects may suffer from a lack of direction, misaligned stakeholder expectations, and unclear project objectives. This increases the risk of scope creep, budget overruns, and delayed timelines. It also weakens the project manager’s authority, making it harder to secure resources. Ultimately, the absence of a charter reduces the likelihood of project success, as there is no formal reference for stakeholders to rely on.

What is the role of stakeholders in a Project Charter?

Stakeholders play a crucial role in developing and implementing a Project Charter. They provide input on project goals, scope, and deliverables. Key stakeholders include sponsors, clients, team members, and regulatory bodies. Their involvement ensures that the project objectives align with business needs. During the project, stakeholders support decision-making, resource allocation, and risk mitigation. Effective stakeholder involvement increases project buy-in and promotes transparency and accountability. You can also see more on Project Schedules.