Summary
A project charter is a formal document that authorizes the start of a project and provides a clear framework for its execution. It outlines the project's objectives, scope, stakeholders, and key deliverables, serving as a reference point throughout the proj
ect's lifecycle. Several of these steps (i.e., stakeholders, risks, budget, timeline) will be further fleshed out in later steps, once the project is approved. The Project Manager, Sponsor, and Customer are the primary authors of this document, although other key stakeholders may play a role in its creation.
Before You Start
The Project Charter is the proposal, and eventual preliminary "green light" agreement, between the Customer, Sponsor, and Project Manager to do a project. Before composing the Charter, you should first should create a Business Case. What is the purpose of the project, and how will it advance or otherwise meet the organization's mission and strategic plan? The Case also presents other high-level factors, such as tentative timeframe, budget, deliverables, and goals.
In the case when a customer and sponsor are external to the project manager, the Business Case is created in and by that external organization and brought to the project manager. When all three persons work within the same organization, it is not uncommon for the Business Case and Charter processes to be merged.
Steps
- Project Identification: This initial step involves defining the project's purpose, objectives, and scope. It includes identifying the project's goals, the problems it aims to solve, and the expected outcomes. This should be informed by an earlier step, the Business Case.
- Stakeholder Identification: In this step, identify all key stakeholders, along with as many other known groups or persons with an interest in the project and/or will be affected by its outcomes. Stakeholders can include project sponsors, team members, along with other persons or groups inside or outside the organization. This list will be further fleshed out and other relevant information about members in the Stakeholder Management process.
- Project Scope: The project scope outlines the boundaries of the project, including what is included and what is excluded. It defines the project's deliverables and the work required to complete them. A Statement of Work (SoW) is a more detailed explanation of the project’s structure, and includes not only the Scope but other information (e.g., timeline, deliberable).
- Project Objectives and Goals: Clearly defining the project's objectives and goals is crucial. These should be specific, measurable, achievable, relevant, and time-bound (SMART). This step ensures that everyone involved understands what the project aims to achieve.
- High-Level Requirements: This step involves identifying the high-level requirements needed to achieve the project's objectives. These requirements provide a broad overview of what the project will deliver.
- Assumptions and Constraints: Documenting any assumptions and constraints that may impact the project is essential. Assumptions are factors considered to be true without proof, while constraints are limitations or restrictions that the project must operate within.
- Establish a Timeline: Create a specific timeframe detailing key milestones and deadlines. This helps in monitoring the sequence of tasks effectively.
- Assign Roles and Responsibilities: Identify the names and roles of individuals involved in the project, such as project sponsors, leaders, and team members.
- Project Risks: Identifying potential risks that could affect the project's success is a critical step. This includes assessing the likelihood and impact of each risk and developing strategies to mitigate them.
- Project Milestones and Timeline: Establishing key project milestones and a high-level timeline helps track progress and ensures that the project stays on schedule. Milestones are significant points or events in the project's lifecycle.
- Budget and Resources: Estimating the project's budget and identifying the necessary resources, including personnel, equipment, and materials, is crucial for planning and execution.
- Approval and Sign-Off: The final step involves obtaining approval and sign-off from the project sponsor and other key stakeholders. This formalizes the project charter and authorizes the project to proceed.
In conclusion, a project charter is a foundational document that sets the stage for a successful project. It provides a clear and concise overview of the project's objectives, scope, stakeholders, and key deliverables, ensuring that everyone involved is aligned and understands their roles and responsibilities. By following a structured process to create the project charter, project managers can establish a solid framework for planning, executing, and monitoring the project, ultimately leading to its successful completion.
Additional Resources
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