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.

Follow our quick guide to writing and executing on your project management charter below,
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efficient.

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The project management charter serves as a reference document. It should outline 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. 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. Act 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.

What Does the Charter Document?

So, those are the broad strokes, and while a project statement doesn’t need to go into great
detail, there is more to it than these general statements. The definition of the project should be
short because it refers to more detailed documents, such as a request for proposal.

One of the key parts of any project statement is to establish the authority assigned to the
project manager. Other purposes of the document are as follows.

 What are the reasons for undertaking the project? Note them here so everyone is
clear about why they are doing what they are doing.
 What are the objectives and constraints of the project? This is the what part of
why you’re undertaking the project. If you don’t have a clear target your project is
going to miss the mark.
 What are the directions concerning the solution to any constraints listed above?
You 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.
 Who are 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 relationship with them.
 What are the in-scope and out-of-scope items? Scope is the boundaries of your
project, such as its start date and when it concludes. So, what are the in-scope items,
 such those parts of the project process as opposed to tasks or actions that lay outside
the step-by-step process of the project?
 What are the potential risks in the project? Identify all risks that could arise in the
project so you’re not taken by surprise. 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.
 What are the project benefits? 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.
 What are the project costs? 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 you expect the
budget for the project to be and who will have spending authority.

What Are the Uses of A Project Charter?

There are a lot of documents necessary to run a project. Before you even get started there are
many you have to create, from a project plan to a project budget and more. All these
documents delve into detail on the items you’ve broadly stroked out in your project
statement. So, why do you need another document, isn’t it redundant?

While it’s true you’re going to cover this ground on a granular level, this is your first pass,
and there’s a reason it’s more general and comes before everything else. The following are
three main uses of the document:

1. You need it to authorize your project. This is the document that sells the project to
your stakeholders and defines broadly what their return in investment will be. It’s like
elevator pitch, so it has to sell the project.
2. It serves as a primary sales document. When you present this to the stakeholders
they now have a summary to distribute or present when approached about other
projects, so they can focuses their resources where they’re needed.
3. This is a document that stays with you throughout the life cycle of the project.
You will be referring to it throughout, whether at meetings or to assist with scope
management. The charter acts like a roadmap without all the minutia to distract you in
other project materials.
Tips on Writing a Project Management Charter
There’s a process for writing a project charter, which starts with knowing what is the vision
of the project. That vision statement can’t be vague, but must capture the purpose of your
project, defining the end goal for the project team.

Step 1: Vision

Once you have the vision clear, then you can break it down into more practical bits.

 Objective. List three to five objectives of the project, be SMART: specific,

measurable, achievable, realistic and time bound.
 Scope. Now outline the formal boundaries of the project by describing how the
business may change or alter by delivery of your project, also note what’s relevant to
the project and what is not. This is how you maintain better control of the project.
 Deliverables. Describe each of the deliverables the project is tasked to produce. Once
you’ve gotten all of them down, you’ve got a foothold on your charter and are ready
to move on.
Step 2: Organize

When you’re building a structure for your charter there are four subsets you’re going to need
to identify. This is done by listing the following:

1. Customers/End Users. To complete this list, ask yourself: What is a customer and/or
end user in the context of this project? Who are the project customers? Is there a
specific individual or entity responsible for accepting the deliverables of the project?
2. Stakeholders. As noted earlier, identifying the stakeholders of the project is crucial.
They are the person or entity within or outside of the project with a specific key
interest in that project. It might be a financial controller overseeing costs or the CEO,
but whoever it is they’ll have a slightly different focus depending on their role.
3. Roles. You need to assign the key roles and responsibilities to those involved in
delivering the project, from the project sponsor, project board and project manager.
After each entry write a short summary defining their role and what their
responsibilities are in the project.
4. Structure. Now you need to define the lines of reporting between these various roles
in the project. Use a project organization chart to do this. It diagrams the structure of
an organization and the relationships and roles of those involved in the project.

Step 3: Implementation

You have a vision and have organized the various parts of your project. Now you have to
develop a plan to implement them. There are four parts to this:

1. Plan. If you’re going to implement, then you need an implementation plan. This is a
way to develop an atmosphere of confidence for your customers and stakeholders by
listing the phases, activities and timeframes of the project’s life cycle.
2. Milestones. Milestones mark major phases in the project and collect smaller tasks
into bigger chunks of work. The project should only have a few of them, that’s why
they’re milestones, but they are an important way to acknowledge the completion of a
key deliverable.
3. Dependencies. List all key dependencies and what their importance is to the project.
These are tasks or an activity that are linked to one another, as they will impact the
project during its life cycle.
4. Resource Plan. What resources are involved in the project? Break down this list into
labor, equipment and materials. This is how you’ll know what you need before you
need it, and you’ll be able to estimate your budget more accurately.

Step 4: Risks, Issues & Budget

We’re almost done, but no charter is complete without collecting the potential risks and
issues that can derail a project. This includes assumptions and constraints related to the
project.

A risk is a potential issue that may or may not happen in a project. Risk is not always
negative, as there is such a thing as positive risk, and you should prepare for that as well.
An issue is something that has already occurred in the project. Basically, a risk is future tense
and an issue is present tense, but you have to be prepared for any and all eventualities when
creating a project management charter.

Finally, with all the above information, you can sketch out a rough figure on how much it
will cost to deliver the project within the timeframe you’re allowed. Then you present your
charter and once it’s approved and signed the real work begins.

What do you mean by project charter?

It provides a preliminary delineation of roles and responsibilities, outlines the project objectives,
identifies the main stakeholders, and defines the authority of the project manager. It serves as a
reference of authority for the future of the project. The terms of reference are usually part of the
project charter.

Why is the project charter so important?

The Project Management Body of Knowledge (PMBOK) defines a project charter as a

document that formally authorizes a project.

The project charter is not created by the Project Manager. Instead, it is issued by the sponsor
to empower the Project Manager with the authority to begin the project and obtain resources
for project activities. The project charter should include at a minimum the following:

 business need for the project which links the project to the organization's overall
strategy
 stakeholders and their initial requirements
 objectives or quantifiable criteria that must be met for the project to be considered
successful
 definition of what is in scope (at least at a high level), as well as out of scope for the
project
 constraints and assumptions

All of that sounds important enough, but is it really necessary to have one? And what would
happen if you didn’t have a project charter?

I'll share an experience from my career. "Experience is the name everyone gives to their
mistakes.” Oscar Wilde

It was my first week on the job, and my new manager informed me that I was assigned to a
very high-profile, critical project. I asked if there was a project charter. I was told no, and
summarily instructed to "Just go ahead and get started. Just go get it done." Being new to the
company, I was determined to make a good impression and decided to move forward without
one. And as you can imagine, I did make an impression.

As I walked out of the first meeting with the project team, my business partner took me aside
and said, "Interesting meeting, In fact a very good meeting. But I have to ask you. Who the
heck are you?"
After thinking about it further, I realized his real question was "What gives you the authority
to tell anyone what to do?" (Or, in other words, who died and made you the boss?)

This is a tricky situation to maneuver. And your answer may diminish any chances you will
have for success or your ability to "win over" and get buy in from the team. So it's best to
circumvent such sticky situations before they happen.

Not having a project charter hinders the Project Manager from being successful in the role,
thus impacting the overall success of the project. Thus, projects should not begin without one.

And if you find yourself in the situation where you don't have one, you should ask yourself
then why are we even doing the project? If the project is important to the organization, then
the time and effort should be put into creating this document to define the scope and overall
priority of the project. It additionally empowers you as the Project Manager in your role and
formally authorizes you to begin the project activities and obtain the resources to support and
work on the project’s activities

A lesson learned. Make sure a project charter exists. Otherwise, you run the risk of people not
knowing who you are or what your role is.

How do you create a project charter?

To define a Project Charter, take these steps:

1. Step 1: Identify the Project Vision. Vision: The first step taken when defining a
Project Charter is to identify the project vision. ...
2. Step 2: Describe the Project Organization. ...
3. Step 3: Plan the Approach to Implementation. ...
4. Step 4: List the Risks and Issues.

What is an example of a charter?

char·ter. Use charter in a sentence. noun. The definition of a charter is a grant of
power to an organization or to an institution, defining the function, rights, obligations
or privileges. An example of charter is when a college is founded and a document
made to outline the policies of the college.

What is included in project charter?

It provides a preliminary delineation of roles and responsibilities, outlines the project
objectives, identifies the main stakeholders, and defines the authority of the project manager.
It serves as a reference of authority for the future of the project. The terms of reference are
usually part of the project charter.
But as explained in the lean training course some of the common elements, which are
found in every Six Sigma project charter, are as follows:

 Business Case.
 Problem / Opportunity Statement.
 Goals / Projected Benefits.
 Goal statement.
 Project Scope.
 Project Plan.
 Team Structure.
What is the main purpose of the project charter?
It provides a preliminary delineation of roles and responsibilities, outlines the project
objectives, identifies the main stakeholders, and defines the authority of the project
manager. It serves as a reference of authority for the future of the project. The terms of
reference are usually part of the project charter.

Why should projects have a project charter?

The charter gives a direction and a sense of purpose to the management from start to end. ...
A project charter names the project manager and defines the authority of the project
manager. It gives the project manager the authority to utilize organizational resources to
accomplish the project objectives.

What is the purpose of a charter document?

A team charter is a document that is developed in a group setting that clarifies team
direction while establishing boundaries. It is developed early during the forming of the team.
The charter should be developed in a group session to encourage understanding and buy-in.
The team charter has two purposes.

Can project charter be changed?

It is written in broad terms, so that minor changes to the project can be handled easily,
without having to change the charter. A charter formally authorizes the existence of the
project. If there is no project charter, or the project charter is not signed off, then
officially there is no project.

What is Project Charter in Six Sigma?

A project charter is the first step in the Six Sigma methodology. It takes place in the Define
step of DMAIC (Define, Measure, Analyze, Improve, Control), and the charter can make or
break a successful project.

What is a Project Charter template?

Project Charter Templates and Guidelines for Every Business Need. ... It outlines the
project and includes key participants, scope, objectives, and overall goals. It's an incredibly
useful document that, once complete, is often used to get sign-off on a project.

What are deliverables in a project charter?

The Project Charter is used to define the project at a high-level. ... Generally, the project is
considered to be successful if the project objectives are met successfully. Project
deliverables. Deliverables describe the tangible products that are being built by the project.
All projects produce deliverables.

What is a charter document?

Charter, a document granting certain specified rights, powers, privileges, or functions from
the sovereign power of a state to an individual, corporation, city, or other unit of local
organization. ... A corporation that was so endowed was called a chartered company (q.v.).

What is a charter statement?

A team charter is a written document that defines the team's mission, scope of operation,
objectives, time frame, and consequences. ... The team charter begins with a Purpose
Statement.
How do you kick off a new project?
The main goals of your kickoff meeting are to:

1. Present the project and team to stakeholders and each other.

2. Create enthusiasm and understanding about the vision and goals of the work.
3. Build credibility within the team.
4. Promote communication.
5. Set expectations.
6. Get started.

What is Project Charter in PMP?

PMBOK Definition of Project Charter: A document issued by the project initiator or
sponsor that formally authorizes the existence of a project, and provides a project manager
with the authority to apply organizational resources to project activities.

What are project boundaries?

The Project Boundaries are the list of project goals, assumptions, and constraints that are
agreed upon by the project team and stakeholders at the time of project initiation.

What is the difference between project charter and project scope?

Project Charter vs. Scope Statement. The project charter and scope statement can seem
like one and the same sometimes. They are both usually contained early in the project
management plan, and they both itemize the scope of the project to some extent. Well, they
have a slight difference in purpose.

What are the elements of a project?

In order to ensure that all your projects reach the required level of success, here are the
5 essential elements that need to be included:

 Strategic Planning. The first stage of any project is to understand the need for the
project and what it is trying to achieve. ...
 Product Development. ...
 Communication. ...
 Resources. ...
 People.

What is a role charter?

A tool known as a role charter can help ensure both effective decision-making and
collaboration. The End of Confusion: Beyond Job Descriptions. Role charters are active,
living documents that are meant to imbue corporate strategy and vision into the daily work
and purpose of the organization.

What is a charter plan?

A project charter is a formal, typically short document that describes your project in its
entirety — including what the objectives are, how it will be carried out, and who the
stakeholders are. It is a crucial ingredient in planning out the project because it is used
throughout the project lifecycle.

What is a project proposal?

There are often tight deadlines, and proposals may be rejected. A project proposal is a
detailed description of a series of activities aimed at solving a certain problem (NEBIU
2002). In order to be successful, the document should (REPOA 2007): provide a logical
presentation of a research idea.

Is the project charter a living document?

The project charter is a written document that captures and summarizes the elements of the
project by explaining the business case, the scope of the project and its goals. ... The
charter is a dynamic, living document and can be updated as new information becomes
available in the DMAIC process.

What is a project plan in project management?

A project management plan is a formal, approved document that defines how the project is
executed, monitored, and controlled. It may be a summary or a detailed document and may
include baselines, subsidiary management plans, and other planning documents.

What are project deliverables?

Deliverables is a project management term for the quantifiable goods or services that will be
provided upon the completion of a project. Deliverables can be tangible or intangible parts
of the development process, and they often are specified functions or characteristics of the
project.