Project Charter: Close Look
- Lana Hazelton
- Sep 23, 2023
- 3 min read
Updated: Nov 6, 2023
Project Charters is the roadmap to effective project planning and execution.
Project Charter helps assess the viability of the project and saves time, money, and potential setbacks before starting any project. But that is not an academic definition of the Project Charter:) Here is the academic definition: “Project Charter is a document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities.” (PMBOK® Guide, Seventh Edition, p.245)
That does not sound like a simple tool you can use to test any idea that comes to your mind:) but it actually IS. Certainly, the Project Charter is an essential project management document and the first step in moving corporate wheels, but it also can be very useful for any project even where all “organizational resources” are the one creative individual:)
What is a Project Charter?
The Project Charter is a short document (1-2 pages depending on a project's complexity), that follows acceptance of the Business Case. The formal function of a Project Charter is to show a high-level outline of the project and receive authorization to work on the project from the Project Sponsor, SEO, Steering Comity, or other high-up authorities.
The is no single way to create a Project Charter. You can find online different templates and it’s ok, you need to tailor the Project Charter to your needs. There are recommendations on what to include in the Project Charter. As usual, I refer to PMI standards.
Names of project sponsor, project manager, project team, and main stakeholders
Project background What prompted the project idea? What is the problem (or problems) that this project solves? Why it is important to solve this problem?
Project vision How does this project solve the problem (or problems)? What are the project's positive outcomes?
Project objectives How exactly does the project achieve this positive outcome? What has to be done (created, built, produced, etc.)
Key Performance Indicators (KPIs), or Key Success Indicators (KSIs) How do you plan to measure project success? Which criteria and numbers will be used for the measurements?
Project scope What kind of work will be done? What are the stages of the project? What are the milestones?
Project budget. Project financial goals How much money on what will be spent? Annual revenue, profit margin, operating expenses decrease, etc.
Project schedule What is the timeline for project completion?
Project assumptions Something that is accepted as true or certain for planning purposes, even though it may not be confirmed or verified. Assumptions are used to fill in gaps in information or knowledge.
Project constraints Specific limitations or restrictions that can impact project completion. The triangle constraint, Scope - Time - Cost, is one of the most often mentioned. But there are many other types of constraints. Regulatory, resource, environmental constraints, etc.
Project risks Events or conditions, that can have an impact on the project.
Overall, a Project Charter plays an important role in ensuring project success by providing a clear roadmap, aligning stakeholders, and establishing the foundation for effective project planning and execution. It serves as a key document throughout the project's lifecycle, guiding decision-making and facilitating communication among all involved parties.
I hope that was helpful and if you haven't already used a Project Charter, this post has inspired you to give it a shot. Below is an example of Project Charter from Smartsheet. You can download this template and many other Project Charter templates from the Smartsheet website by clicking this baton:
Project Charter example
P.S. Everything mentioned above applies not only to the corporate world but also to personal decision-making. Project Charter and systematic approach to ideas are valuable tools in business, but they can be just as effective in our personal lives. Using Project Charters for personal projects allows us to channel time and energy to things that truly matter.
Comentarios