 |
 |
 |
Download project charter template in Microsoft Word format.
What Is a Project Charter?
What is a project charter? If you have recently been hired by a mid to large-size company, the term project charter is one you are bound to hear frequently, but if you have yet to be involved in a large scale project, the concept of a project charter may be difficult to understand. To help catch you up to speed, in the article below we will provide an in-depth definition of the project charter and its function, and highlight some of the information that is typically included in these vital business documents.
What Is a Project Charter?
In simple terms, a project charter is an official and formal document recognizing the existence of a project, and authorizing the project manager and team members to go forward with its development and implementation. In many cases, the project charter is developed by the project manager, although formal issuance of the document is carried out by the project sponsor. The project charter should also list the requirements for the project in full, and link the project to the ongoing business of the organization.
The official project charter is always developed in the initiating phase of project management as a way to authorize the project itself and the project manager. This will significantly reduce the likelihood that the project will be cancelled down the road due to a lack of support or a lack of perceived value to the organization. Often considered a target document, the project charter should be very broad in scope—broad enough so it will not have to be changed if obstacles are incurred during its implementation. If constructed correctly, the project charter will clarify the goals and objectives of the project and manage the expectations of stakeholders.
The project charter, although owned by the project sponsor—usually upper management—gives full permission for the project manager to act on the company’s behalf, and to use company resources as needed to meet the various goals and objectives. Should the parameters of the project change dramatically—should they change to the point where they are outside what is defined by the project charter—it is the project manager’s responsibility to contact the project sponsor for further approval.
What Is Typically Included in the Project Charter?
Aside from approving a project and authorizing the project manager, the project charter will normally include very detailed information regarding the project and the various ways the project will be approached. This could include topics such as:
• Project Name and Description. This section provides an official title to the project and a brief description of what the project will accomplish.
• Project Manager’s Name and Level of Authority. Here the name and title of the project manager will be listed, along with the authority—and limits to that authority—that he/she is given to carry out the various project responsibilities.
• Purpose of the Project. According to experienced project managers, when listing the purpose of any type of project, you should briefly explain why the project is being proposed, and this is usually to fill some type of need within the organization. And once the need has been identified, you should explain how the project will address that need.
• Project Stakeholders. The project stakeholders section should include a top-down list of everyone involved in the project, beginning with the project sponsor, followed by the project manager, and so on.
• Deliverables. Here the project charter defines what will be delivered, along with an estimated completion date. It will also list milestones—estimated dates by which certain phases of the project will be completed.
As you can see, the answer to the question “what is a project charter” is not all that difficult, but the importance of this document cannot be overstated. Not only does it give the project manager the authorization to move forward with a project, it also contains valuable information that each stakeholder can refer to regularly throughout the project’s life cycle.