Project charters are your guiding light for any new initiative. Whether you're a project manager or operations professional, you’ll need to become a pro at writing these documents.
Besides providing you with the authorization to begin projects, project charters help you sell your project’s viability to stakeholders. This document also helps get your entire team on board with your plans and deadlines.
In this guide, we’ll discuss project charters and how to write them. We’ll cover:
- What is a project charter?
- What is the purpose of a project charter?
- What should a project charter include?
- Project charter template
- How to create a project charter
- Project charter examples
- Important tips for creating a project charter
What is a project charter?
A project charter is a short, formal document that contains all the essential details stakeholders need before giving the green light to a project. It outlines the project objectives, scope, risks, and more.
Project management teams use this document as a reference throughout the project's lifecycle.
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What is the purpose of a project charter?
A project charter's purpose is to formally authorize a project and provide a clear direction for its execution.
As a foundational document, it aligns stakeholders and project teams on the project's vision, goals, and boundaries. This keeps everyone on the same page from the get-go, setting clear expectations and reducing conflict.
A project charter also serves as a high-level reference point for users throughout the project.
Project Charter vs. Project Brief
A project charter is comprehensive and formal, providing the project management team with a thorough overview and the official authorization needed for the project to proceed.
On the other hand, a project brief is generally more concise and covers what the project needs to start. It’s often used in the early stages to quickly convey the project’s key points to high-level stakeholders.
Project Charter vs. Project Plan
The project charter is created first, providing the initial authorization and high-level details about the project. It's primarily meant for the key stakeholders and senior management.
Once the project is approved, then the project plan is developed. It's designed for the project manager, project team, and other involved parties.
Think of it like this: the charter sets the direction, and the plan maps out the journey.
Project Charter vs. Business Case
The business case focuses on the “why” of the project, while the project charter focuses on the “what” and “how.”
The former justifies the need for the project, helping stakeholders decide whether to invest in the project. Once the decision to proceed is made, the project charter is created to formally authorize the project.
What should a project charter include?
After developing a project charter, project managers send it to the project sponsor for approval. The sponsor can be anyone — top management of the organization executing the project, a financier, or even the government.
However, to get this approval, your project charter must include the following crucial elements:
1. Project Objective
The project objective is the high-level reason for undertaking the project. Tying objectives to your company goals is a brilliant way to pique stakeholders’ interest in your project.
Pro tip: Use the SMART framework to make your goals Specific, Measurable, Achievable, Realistic, and Time-bound.
2. Project Overview
Your project overview goes into greater detail about the timeline and ownership of the project. It outlines details like the project name, project sponsor, project manager, expected start and completion dates, and estimated budget.
Pro tip: Add a table to your project overview, making information skimmable and easy to find. Like this:
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3. Project Deliverables
Project deliverables are the tangible outcomes or products that will be produced during the project. Be clear on what your team is delivering to avoid any disagreements that may extend your deadline.
4. Project Scope
The project scope defines project boundaries — what‘s included in the project and what’s not. Setting clear boundaries for the project prevents scope creep, keeping the team focused and aligned.
While PMs typically write detailed project scopes, keeping it brief in the project charter is a best practice. Why? You can create a detailed scope statement in the project planning phase.
5. Project Stakeholders
This is a list of the names and responsibilities of the parties involved with a project. Stating who’s responsible for different tasks holds your team members accountable.
6. Project Risks
This section outlines potential risks, their impact on the project, and the strategies for managing them. Being proactive about risks helps in minimizing their impact and keeping the project on track.
Pro tip: Create a table of potential risks. Explain why the risk poses a threat to your project and the mitigation strategies you plan to enact.
7. Project Resources
This section details the team members, budget, equipment, and other assets critical to your project's success. This helps you account for everything you need to take the project to the finish line.
Project Charter Template
Using a project charter template offers a structured format, enabling you to quickly fill in details without overlooking critical components.
It incorporates all essential sections—objectives, scope, stakeholders, and risks—to help you execute more consistent and thorough projects. This way, all important aspects are considered and documented from the start.
The project charter template from HubSpot, for instance, keeps your team aligned on all key aspects of your project. Available in Microsoft Word, Google Docs, and PDF formats, this template makes it easy to document and share project details.
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How to Create a Project Charter
When writing your project management charter, you need to get it right from the onset. “You shouldn’t change a project charter after its approval,” says Mary Beth Imbarrato, author of The Project Roadmap. Last-minute changes can make stakeholders question the project’s feasibility.
Here are the steps to create a successful project charter right from the beginning:
1. Identify project goals.
To start, clearly define your project’s SMART goals. For example, if your project is to launch a new product, primary goals might be:
- Achieving $500,000 in sales within the first year
- Gaining a 5% market share within the first six months
Make sure each goal aligns with your organization’s strategic objectives. And is written in clear, concise statements that everyone understands.
Will Yang, Head of Growth at Instrumentl, recommends brainstorming sessions with your team members. He says, "Set aside time for your team members to discuss the project, how they want to approach it, and what's their current bandwidth. Doing this ensures your project team is on the same page and sets realistic project timelines.”
2. Define the project scope.
When outlining the project scope, be as detailed as possible to set clear boundaries.
- Outline the key deliverables and major milestones. For instance, if you're developing a new app, deliverables might include the initial prototype by the end of Q1, a beta version by the end of Q2, and the final release by the end of Q3.
- Specify the tasks and activities that will be part of the project. Following our previous app example, this may include market research, design, development, and testing.
- Clearly state what is out of scope to avoid any misunderstandings. For example, additional features that will not be included in the first release, like social media integration or in-app purchases.
3. Identify stakeholders.
Stakeholders can influence your project positively or negatively, so understanding their interests early on is crucial.
Start by listing all individuals and groups affected by the project, including team members, managers, customers, and suppliers. Next, define each stakeholder’s role, responsibilities, and level of influence.
Additionally, create a communication plan tailored to each stakeholder's needs and expectations. This could include weekly update meetings, project newsletters, or regular status reports to keep them in the loop throughout the project lifecycle.
4. Develop a high-level timeline.
Identify the major phases of your project and their respective durations. For example, the planning phase might take two weeks, the development phase four months, and the testing phase two months.
Be realistic when setting deadlines for each phase. Also, consider potential risks and dependencies to account for any unforeseen challenges.
5. Outline project deliverables.
What tangible or intangible products will the project produce?
Outline all deliverables clearly, including specifications and quality criteria. A deliverable might be a detailed project report or a blog post.
Following this, assign responsible team members for each deliverable, and establish specific acceptance criteria to measure their success.
6. Assess project risks.
Conduct a risk assessment workshop with your project team and stakeholders to identify potential risks. Then, categorize these risks by their impact and likelihood, and develop mitigation and contingency plans for each identified risk.
Suppose a delay in receiving raw materials from a supplier could affect your timeline. In that case, you can take certain measures like identifying alternative suppliers or adding buffer times to your schedule.
The goal is to proactively lower the impact of risks and keep your project on track.
7. Determine project resources.
Create a list of all the resources your project needs, such as team members, budget, tools, and equipment. For instance, if you're running a marketing campaign, your list might include graphic designers, an advertising budget, and marketing software.
Next, calculate the costs associated with each resource. This includes expenses for licenses, employee salaries, and promotional materials.
Once everything seems feasible, start distributing the resources according to the project's phases and priorities. Critical tasks should receive the necessary support on priority, of course.
8. Draft the project charter.
It’s now time to draft your project charter.
If you don’t have a template, consider browsing options online or using HubSpot's free project charter template, available for download. Fill in each section with the detailed information you’ve collected. Once the draft is complete, review it with key stakeholders.
9. Obtain approvals.
The last step is to get your project charter approved by the project sponsor and other key stakeholders.
Present the draft to the relevant parties, make any necessary revisions based on their feedback, and obtain formal sign-off. This approval signifies that everyone is on board and committed to the project, officially authorizing it to proceed. Boom!
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Project Charter Examples
Corporate Website Redesign
Ensuring a structured approach, this project charter sets clear objectives, phases, and deliverables. It defines roles and responsibilities to prevent confusion and delays, as well as identifies potential risks to ensure a smoother, more predictable project.
Residential Building Planning
While not directly related to business, this project charter serves as an excellent example by including key elements such as the identification of stakeholders, setting clear goals, defining specific deliverables, and detailing the project‘s scope. These components ensure a structured approach to the project, fostering effective communication and alignment among all parties involved, thereby increasing the project’s chances of success.
Important Tips for Creating a Project Charter
1. Tailor your charter to your audience.
Customize sections of your charter for different stakeholders. Executives need strategic and financial summaries, while team members need detailed plans and timelines. This ensures everyone quickly finds relevant information and stays aligned.
2. Incorporate learnings from past projects.
Use insights from previous projects to improve your current charter. Document what worked well and what didn’t in past projects. This could include successful strategies, common pitfalls, and risk mitigation techniques.
This way, you can avoid past mistakes and improve your project’s chances of success.
3. Plan for change management.
Projects often bring about significant changes, and how you manage these changes can make or break your project.
Include a change management plan in your charter. Detail how changes will be communicated, who will manage them, and how they will be documented. This helps ensure that everyone is prepared for changes and knows how to handle them. For example, if implementing a new software system, you can outline training programs, user support channels, and feedback loops.
4. Utilize visuals and charts.
A picture is worth a thousand words, especially in project management. Use visuals like Gantt charts, flow diagrams, and infographics to illustrate timelines, workflows, and key milestones. This makes it easier for stakeholders to understand the presented information at a glance.
Start your next project without missteps
A well-thought-out charter is a roadmap for achieving your project objectives in record time.
Get started by gathering input from your team and creating a project charter that will get the green light from stakeholders.
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