Charter – A document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities.
Key Characteristics:
- Formal authorization: Official document that legitimizes the project
- High-level document: Provides broad project overview, not detailed plans
- Sponsor issued: Created and approved by project sponsor or initiating organization
- Authority granting: Gives project manager power to lead the project
- Stakeholder communication: Communicates project existence and importance
Essential Components:
1. Project Information:
- Project title: Clear, descriptive name for the project
- Project manager: Designated leader and their authority level
- Sponsor: Individual or group authorizing and funding the project
- Start date: When project is authorized to begin
- Key stakeholders: Primary individuals or groups involved
2. Project Justification:
- Business case: Why the project is needed
- Purpose statement: What the project aims to accomplish
- Strategic alignment: How project supports organizational objectives
- Success criteria: High-level measures of project success
- Benefits: Expected value and outcomes
3. Project Scope:
- High-level scope: General description of what will be delivered
- Major deliverables: Key products, services, or results
- Boundaries: What is included and excluded from the project
- Assumptions: Factors assumed to be true for planning purposes
- Constraints: Known limitations affecting the project
4. Resources and Timeline:
- Budget estimate: High-level funding allocation
- Timeline: Major milestones and target completion date
- Resource requirements: General staffing and equipment needs
- Organizational support: Commitment of organizational resources
Project Charter Purposes:
Authorization Functions:
- Project legitimacy: Formally establishes project existence
- Resource authorization: Permits use of organizational resources
- Manager empowerment: Grants authority to project manager
- Stakeholder commitment: Documents organizational support
- Funding approval: Authorizes initial project expenditures
Communication Functions:
- Stakeholder awareness: Informs organization of new project
- Expectation setting: Establishes high-level project parameters
- Alignment confirmation: Shows project supports organizational strategy
- Success definition: Communicates what constitutes project success
- Boundary establishment: Clarifies project scope and limits
Charter Development Process:
1. Project Identification:
- Business need or opportunity identified
- Initial feasibility assessment conducted
- Sponsor commitment secured
- Project manager designated
2. Information Gathering:
- Stakeholder interviews and input
- Business case development or refinement
- High-level requirements gathering
- Resource and timeline estimation
- Risk and constraint identification
3. Charter Drafting:
- Document preparation using organizational template
- Content review with key stakeholders
- Alignment verification with strategic objectives
- Legal and compliance review if required
4. Review and Approval:
- Stakeholder review and feedback incorporation
- Sponsor approval and sign-off
- Distribution to relevant parties
- Project initiation authorization
Charter vs. Other Project Documents:
Charter vs. Business Case:
- Business Case: Economic justification for project investment
- Charter: Formal authorization to proceed with project
- Relationship: Business case typically supports charter development
Charter vs. Project Management Plan:
- Charter: High-level authorization and scope definition
- Project Management Plan: Detailed approach for project execution
- Timing: Charter created first, plan developed after authorization
Charter vs. Statement of Work (SOW):
- Charter: Internal authorization document
- SOW: Detailed work description, often for external contracts
- Scope: Charter is broader, SOW is more detailed and specific
Authority Granted to Project Manager:
- Team leadership: Direct and coordinate project team activities
- Resource allocation: Assign resources to project tasks
- Decision making: Make project-related decisions within defined limits
- Budget management: Control project expenditures within approved limits
- Stakeholder communication: Represent project to internal and external parties
- Change authorization: Approve minor changes within delegated authority
Common Charter Challenges:
- Vague objectives: Unclear or unmeasurable success criteria
- Scope ambiguity: Poorly defined boundaries and deliverables
- Unrealistic expectations: Overly optimistic timelines or budgets
- Insufficient authority: Limited power granted to project manager
- Weak sponsorship: Lack of strong organizational support
- Missing stakeholders: Key parties not identified or engaged
Best Practices:
Content Quality:
- Clear objectives: Specific, measurable success criteria
- Realistic scope: Achievable deliverables within constraints
- Stakeholder alignment: Consensus among key parties
- Appropriate detail: Sufficient information without excessive detail
- Success metrics: Quantifiable measures of project success
Process Excellence:
- Stakeholder involvement: Engage key parties in charter development
- Template usage: Use organizational standards and formats
- Review cycles: Multiple iterations to refine content
- Formal approval: Clear sign-off process and documentation
- Communication plan: Distribute charter to relevant stakeholders
Charter Maintenance:
- Living document: Update as project understanding evolves
- Change control: Formal process for charter modifications
- Regular review: Periodic assessment of charter relevance
- Version control: Track charter changes and approvals
- Stakeholder notification: Communicate charter updates
Agile Considerations:
- Adaptive scope: Recognition that requirements may evolve
- Iterative delivery: Emphasis on incremental value delivery
- Stakeholder collaboration: Ongoing engagement throughout project
- Flexible approach: Acknowledgment of methodology adaptations
- Value focus: Emphasis on business value over comprehensive documentation
Charter Templates and Tools:
- Organizational templates: Standardized formats and content requirements
- Project management software: Tools supporting charter creation and management
- Collaboration platforms: Systems enabling stakeholder input and review
- Approval workflows: Electronic processes for charter authorization
- Document repositories: Central storage for charter and related documents
Success Factors:
- Strong sponsorship: Active, visible support from project sponsor
- Clear communication: Unambiguous language and expectations
- Stakeholder buy-in: Consensus and commitment from key parties
- Realistic planning: Achievable objectives within available resources
- Organizational alignment: Clear connection to strategic objectives
- Appropriate authority: Sufficient power granted to project manager
Related Terms:
- Business Case: Economic justification supporting project authorization
- Project Management Plan: Detailed approach for project execution
- Statement of Work (SOW): Detailed description of work to be performed
- Project Sponsor: Individual or group authorizing and funding project
- Stakeholder: Individuals or groups affected by or influencing project
- Scope Statement: Detailed description of project deliverables and boundaries
- Success Criteria: Measurable standards for determining project success
- Assumptions: Factors considered true for planning purposes
- Constraints: Known limitations affecting project execution
Our Partners
- FR2 Infrastructure – Constructability advise and project and planning controls
- Staging Diagrams – Staging diagrams for possession planning
Possession Planning – Current Possession Calendars
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