When it comes to starting a project 'The Right Way', your project charter becomes the end-all-be-all document. It is the first official step taken to get the ball rolling and initiate the project management process.
As the torchbearer in project planning, the project manager is burdened with the critical task of crafting an outline of the project's general information. From the project name to the project objectives' intricate details, every feature must be communicated to the stakeholders and project team members in some capacity. This is where a well-thought-out project charter comes into play.
This guide will dive into what a project charter document is, its key elements, its benefits, and the importance of writing one. The guide also looks at how a project charter differs from all documents that play integral roles in a project's lifecycle.
In simple terms, a project charter document clarifies the purpose and scope of a project. It serves as the foundation for all project planning and management activities. The charter sets out the project's objectives, timelines, budget, stakeholders, and expected outcomes. It also defines the roles and responsibilities of team members and provides guidelines for decision-making processes throughout the project's duration.
Writing a project charter is a formal way of documenting the project's beginning and letting stakeholders know its cursory details to get it greenlit. It bridges the gap between the project team and investors and keeps everyone in the loop, all the while making the approval process easier to navigate. A project charter helps project managers legitimize the project initiation phase.
If the entire project process is a road trip, the project charter is the roadmap, emergency kit, and travel guide all rolled into one. It is the starting and reference point and remains so throughout the project's lifecycle, ensuring that from inception to completion, every team member knows the route, the pit stops, and the end goal.
Depending on the size of the company and the project at hand, the project charter can vary in length and detail. While it is traditionally a short document, project charters can range from something as small as a few paragraphs and bullet points to a multipage affair. No matter the length, a few key elements must always be a part of your project charter document.
While exploring project charters and what they might contain, you will come across sites using different terminologies. Although some variation across sources might occur, the core elements remain consistent.
Keep in mind that this is the beginning of your project process; it needs to contain enough information on the project details to keep team members informed, stakeholders satisfied, and deadlines met.
Project Name And Description
The project name and description are the first things you should include in your project charter. The name should be clear and concise, representing the project's overall title. The project description needs to provide a brief overview of what the project is about and can include its purpose, objectives, and expected outcomes.
Project Team
- Team Members: A project charter should assign and specify delegated tasks to respective team members. It is important to designate relevant tasks to individuals with diverse skills and expertise to effectively tackle all challenges that may arise
- Project Manager: It is also important. of course, to have a designated project manager who will oversee the entire project, delegate tasks, and ensure that deadlines are met
- Stakeholders: Lastly, the project charter identifies all the stakeholders involved. This provides a shared understanding of the project before it is scoped out in detail
Project Specifications
This portion of the project charter is the most extensive. It should touch upon all important details and requirements of the project. Depending on the operation's size, the project specs will vary. Some of the key aspects include:
- Business Case: The business case justifies the need to go through with the project at hand. It calculates the return on investments (ROIs) and the potential benefits of completing the project
- Project Objectives/Purpose: This section outlines the specific goals and objectives of the project.
- Project Scope: The scope defines what will be included in the project and what will not. It outlines all deliverables, tasks, and activities that need to be completed for a successful outcome
- Project Resources: This section identifies the resources required to complete the project, such as people, equipment, and materials. It also includes a budget allocation for each resource
- Project Budget: Budget allocation includes all estimated costs associated with the project, such as materials, labor, or equipment
- Project Risks: This section identifies potential risks that may impact the success of the project. It also lists strategies to mitigate them.
Based on the project requirements, the project charter template alternates. These elements can be broken down further in terms of project deliverables, constraints, and benefits, etc.
Project Milestones/ Timeline
A detailed timeline is crucial in ensuring that the project stays on track and is completed within the expected timeframe. Timelines are needed to come up with contingency plans to accommodate any unexpected delays or changes in priorities. This section may include:
- Starting Date: The date when the project officially begins
- Task Duration: The estimated time needed to complete each task. It helps in resource planning and allocation
- Milestones Completion Date: Breaking the project into achievable milestones keeps team members on track and ensures that tasks are completed in a timely manner
- Project Completion Date: The expected completion date of the project
Purpose of Charters And Why You Need One
A project charter briefly tells you everything you need to keep in mind throughout the lifecycle of your project. It is a reference point for anyone to come back to at any time. Having a project charter keeps the project on track and makes sure that everyone comes along for the ride.
The purpose of a project charter remains the same no matter the magnitude of the task. Whether it be the construction of residential areas or the launching of a new website, the need for a charter is constant.
A project charter's main purpose is to grant the manager authority to initiate an approved project. At times it acts as a contract, a receipt and a touchstone. A charter gives a team the greenlight to use organizational resources to achieve project milestones. It also presents a tentative project timeline that puts a large view into perspective.
When crafted effectively, a charter can also present the business value of a project to executives. Since it documents resources, budgets, constraints and deliverables, a project charter enables stakeholders to gauge project alignment with the organizations’ objectives.
Lastly, the project charter acts as an executive summary of your project, providing a quick overview for any new executive who needs to assess it. A well-constructed project charter can shield you from unnecessary scrutiny and prevent your project from being terminated due to a lack of perceived business value from certain executives.
So, why would you need one? Simply put, a project charter could be the difference between a successful project and a failed one. It provides a concise definition of the project including its objectives, scope, timeline, and resources. Above all else, it is efficient. Project charters condense spread-out information into one short document, allowing easy access.
It is natural to doubt the difference a short document can make in the long lifecycle of a project. Among so many, more important authorizations, one can be tempted to forgo writing a project charter altogether. However, for the sake of an effective project initiation phase, keep the following benefits of project charters in mind:
Authorizes The Project
As stated before, project charters are the official 'Go' a project manager needs to start a new project. Additionally, it grants project managers the authority to take control of the project planning process. This also means their leading role is confirmed with project sponsors and team members.
Identifies The Stakeholders
One of the key roles a project charter plays in the project management plan is connecting the project team with the project executives. This document identifies the key stakeholders and helps them visualize their role in the project. This clarity and transparency can lead to better communication and collaboration between all parties involved.
Establishes Communication Channels
A project charter provides access to relevant information for all contributors. This establishes robust communication channels between all parties involved so that team members can make informed decisions. Transparency and open dialogue allow project managers to administer stakeholder expectations and strive for product optimization.
Defines Project Objectives
The project charter sets out the project's specific objectives, providing a clear focus for the entire team. This helps keep everyone aligned and working towards a common goal, reducing confusion and increasing efficiency. It also serves as a benchmark for measuring the project's success once it is completed.
Sets Clear Guidelines
With a well-written project charter, everyone involved in the project has a clear understanding of what is expected from them. This includes roles and responsibilities, timelines, budget constraints, and any potential risks that may arise during the project.
In terms of setting expectations, charters also keep the project scope under check, to make sure there is no uncontrolled growth in a project's requirement.
Provides a Set Budget
A project charter helps gauge a project's feasibility without wasting any resources. Since a charter is required to set a project budget, it can consider the possible Return on Investment (ROI) of a project and whether it should be pursued or not. This ensures that the project is financially viable and does not go over budget, which can lead to delays or even project failure.
Clarifies Roles and Responsibilities
One of the key benefits of a project charter is that it clearly defines roles and responsibilities for everyone involved in the project. This helps avoid any confusion or conflicts that may arise during the project.
When team members know their specific tasks and responsibilities, they can work efficiently and effectively towards achieving the project goals. It also promotes accountability, as team members are aware of what is expected from them and who they report to for each aspect of the project.
Manages Risks
Not only does a project charter outline project constraint, but it also outlines tentative risks. A project can run into unforeseen circumstances that may be hard to tackle on-the-spot. By recognizing possible dangers beforehand, project managers can offer solutions in a timely manner through their project charter document.
Saves Time
A project charter has the benefit of collecting important information in one document. This exponentially increases efficiency as members need only refer to this one document for all kinds of data.
- Understand the Project: Recognize the needs and objectives of the project before you draft a project charter. Knowing what your project plan is will make your charter more thorough.
- Keep it Concise and Clear: The shorter the better. Keep to the point and avoid unnecessary details.
- Review and Revise: Seek input from team members and take their suggestions into consideration. Revisit the document with them for further optimization.
- Seek Approval: Make sure to get the charter approved by all stakeholders, including team members and clients. This ensures everyone is on the same page and understands their roles and responsibilities.
- Set Realistic Goals: Clearly define achievable goals for your project in the charter. This will help to prevent scope creep and keep the project focused.
- Include a Project Scope Statement: A project scope statement outlines the objectives, deliverables, constraints, assumptions, and risks of a project. This provides a clear understanding of the boundaries and expectations for all parties involved.
- Assign Roles and Responsibilities: Clearly define who is responsible for what tasks within the project. This helps to avoid confusion and ensures accountability among team members.
- Use Template Tools: Seek guidance from the multitudes of templates available online. Use software such as Monday.com, Asana, and Wrike for a customizable project charter template.
One of the most frequent queries about project charters is how they differ from documents such as project plans, project statement, project budget, schedule, risk management plans, request for proposal etc. To put it simply, a project charter contains the crux of almost all other project management documents. While these separate plans go into detail about their respective topics, it is a project charter's duty to condense all their information into one place.
To recap, a project charter is a high-level strategic overview that aims to lay out the terms of a project. It is a guide on stakeholders, resources, timelines, project scope and objectives and sets the tone for the upcoming project. It comes before anything else and remains a reference point throughout the project management process.
