What is a Project Charter?

Article by Natasha M. Baker (4,707 pts )

Edited & published by Rebecca Scudder (23,305 pts ) on Mar 25, 2010
Related Guides: Project CharterProject Life CycleProject Stakeholders

In this article by Natasha Baker describes what a project charter is. She also
discusses why the project charter is a critical component in the project
management-planning phase, and throughout the life of the project.

Defining the Project Charter

With every project, you need to define what needs to be accomplished and
decide how the project is going to achieve those objectives. Each project
begins with an idea, vision, or business opportunity; a starting point that must
be tied to the organization’s business objectives. In project management, the
project charter is this starting point. The charter is the foundation of the
project. It forms the contract with all stakeholders involved in the project. It
includes a statement of business needs, an agreement of what the project is
committed to deliver, an identification of project dependencies and
technologies, and the roles and responsibilities of all the team members
involved. Basically, the project charter defines the boundaries of the project,
no matter what type of project management methodology you are using.

The project charter is not only an effective project planning tool; it is a

communication vehicle that can be referenced throughout the project. The
original project charter does not change throughout the project life cycle. It is
created at the beginning of the project, approved by the key project
stakeholders, and is available for reference throughout the project life cycle.
Modifications, additions, or change conditions are only applied to the original
charter based upon agreement by all parties. The project charter is a single,
consolidated source of information about the project in terms of initiation and
planning, and provides information and data about the project scope,
objectives, deliverables, risks, and issues.

Why Create a Project Charter?

The project charter provides a condensed, summary-level overview of the
project. It allows all parties involved in the project (stakeholders) to document
the agreed upon scope and objectives, approach, and major deliverables of
the project. At the beginning of the project, the charter documents the agreed
upon communications plans, control mechanisms, and responsibilities of team
members. In other words, the project charter is a fundamental
communications tool within the project environment. Additionally, the project
charter contributes to the following key success factors:

• Structured management organization

 • Disciplined management processes
• Project governance
• Project management best practices
• Internal/external communications

Furthermore, having a project charter will provide the following benefits:

• Improved client partnerships and other relationships

• Improved project management processes
• Improved headquarter/regional communications
• Better project sponsorship
• Recognition of senior management’s role
• Improved on-time and on-budget delivery of projects
• Progress towards industry best practices

Who is Responsible for the Project Charter?

The project manager (PM) has the ultimate responsibility for ensuring that the
project charter is developed and approved. The development of the project
charter should be a team effort, since it outlines an agreement among the
project stakeholders of what the project will deliver and how. The project
sponsor is instrumental in providing the PM with a solid understanding of the
background of the project. The project sponsor provides support and approval
for the project charter.

In the article Project Charter Example For Every Project Manager, the key
sections of the project charter are outlined. In addition a project charter
template is available to download from the Project Management Media
Gallery.

Read more: http://www.brighthub.com/office/project-

management/articles/5161.aspx#ixzz14Vm2bOKS

Project Charter Example for Every

Project Manager
Article by Natasha M. Baker (4,707 pts )
Edited & published by Rebecca Scudder (23,305 pts ) on Aug 11, 2010
Related Guides: Project CharterProject ScopeMedia Gallery

The following guidelines explain the project charter contents. Included is a

brief description for each section along with an explanation of the contents of
the section and the rationale for including that section in the project charter.
 What Goes in the Project Charter?

A project charter is one of many project management

forms used in the planning stage of project management – and one of the
most crucial documents. Proper construction of a Project Charter can help
ensure the success of any project and, likewise, taking shortcuts in the
preparation of this all-important document can subject your project to
numerous pitfalls and unnecessary hold-ups. So, what should you be sure to
include in this form?

Every project charter should consist of at least three primary components:

• Project Overview Section

• Project Approach Section
• Project Approval Section

Depending on the nature of your project and the project management

methodology being used, additional sections may be required, but we'll
restrict ourselves to examining these three components in this article. The
following guidelines will take a closer look at the items that should be detailed
in each of these sections and give a brief explanation of why that information
is needed.

Project Overview Section

1. Identification: Give the formal name of the project as well as
any other terms that might be used to identify the project and the
primary groups that will be involved with it. With this consistent
terminology, it will be easier for all parties involved – such as the
project team, stakeholders, and end users – to discuss and work on the
project.
2. Project Background: Give any background information that will
help explain how the project came to be.
3. Purpose / Business Need: Explain why the project is needed.
If applicable, include details of why existing tools or products are
inadequate.
4. Project Scope: Define the project scope, being careful to note
boundaries and limitations. The project scope should be clearly
detailed so that all parties involved are very aware of exactly what the
project includes as well as what it doesn't.
 5. Project Objectives: Using appropriate business terminology,
state all objectives for the project. Be sure to include the project's
intended purpose in language that is both concise and explanatory.
6. Sponsorship & Ownership: Provide a list of names identifying
the major parties involved in the project, such as project sponsors,
stakeholders, and eventual project owners. In addition, be sure to
identify the role of each individual listed so that there is no confusion
concerning responsibilities later down the line.
7. References: List any related documents or other resources that
could be helpful in understanding various aspects of the project, such
as the scope and business need.
8. Terminology: Provide a basic, but complete, glossary that
defines special terms related to the project. If there are any key terms,
phrases, or acronyms that might prove to be confusing or new to
anyone related to the project, be sure to include them in this section.

Continue on to the next page for information on what should be included in

the Project Approach and Approval sections of a Project Charter.

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Project Charter Example for Every

Project Manager (Page 2 of 2)
Article by Natasha M. Baker (4,707 pts )
Edited & published by Rebecca Scudder (23,305 pts ) on Aug 11, 2010
Related Guides: Project CharterProject ScopeMedia Gallery
go to:page 1

Project Approach Section

A Project Charter should also include a Project Approach section, giving a
high-level overview of how and when the project will be completed. There are
several standard components that normally comprise the Project Approach
Section. In the following section are eight key components determined to be
the most important. For a description of all components, download the Project
Charter Template located in the Media Gallery.

1. Project Deliverables and Quality Objectives: List the major

deliverables of the project and include when these goals should be
achieved. Most importantly, remember to include the key milestones of
the project.
2. Organization and Responsibilities: Include a summary of all
parties that will be involved in the project and what their roles will be.
 Also, list the needed skills and expertise that each individual brings to
the project as well as each person's responsibilities.
3. Project Resources: In addition to the human component, what
other resources will be needed for satisfactory completion of the
project? Provide a list of computer equipment, raw materials, working
space, and any other resources that might be taxed during the project's
life cycle. If certain resources will only be needed during specific
phases of the project, make note of that as well.
4. Risk Management: Give an overview of the risks that may be
encountered during the project as well as how these risks may be
minimized. Risk mitigation and action steps can be listed. A step-by-
step guide for writing a risk management plan is available in the article,
How to Write a Risk Management Plan.
5. Process Options and Deviations: Explain which of your
organization's project management methodologies will be employed for
this project. If you plan to deviate from standard means and
methodologies, explain that as well.
6. Process Stages: Give a basic breakdown of the project life
cycle, and list the various stages that your project will go through. Make
sure to include the objectives of each stage and why the stage is
necessary.
7. Project Control: The project control component explains the
tools that will be used to assist the project manager in tracking the
project's progress. It also serves as a communication device for
communicating the project's progress to the project team, project
sponsor, and project stakeholders.
8. Project Schedule: Provide a high-level schedule that lists,
among other things, the key milestones and stages of the project.
Various exhibits, such as a Gantt chart (including the associated Work
Breakdown Structure) should be included in this section. Here, it can
be quite advantageous to use a project management software tool to
produce a schedule that can be monitored and adjusted as the project
progresses. Depending on the size of the project, such tools can be
critical to its success.

Project Approval Section

The Approval section of a Project Charter may be the simplest section to put
together, but it is one of the most critical in terms of the project's eventual
success. This section should list all of the names and roles of the major
stakeholders along with their signatures, indicating that each of these
individuals is satisfied with the details included in the Project Charter.

In addition, if the project will require resources from other departments or

groups, a representative from each of these divisions should be listed in the
Approval section as well. The signatures of these individuals will signify that
they accept their own responsibilities for successful completion of the project
and agree to provide needed support.
References and Additional Information Sources
Bright Hub wishes to acknowledge the aid and the valuable resources found
in NWCG Project Charter Guidelines.

For more in-depth information about what a Project Charter is, and why it is
instrumental in project management, read the article What is a Project
Charter. An easy to use template for developing a Project Charter is available
in the Project Managment Media Gallery.

Conclusion
This basic Project Charter can be adapted to fit any organization and an array
of projects, including technology-driven projects. The ease and flow of project
completion is directly due to the care taken with the preparation of a Project
Charter. A good Project Charter literally keeps everyone involved in any way
on the same page.

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management/articles/5159.aspx?p=2#ixzz14VmMXWPw