Definition: A project charter is a formal document that authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities.

The project charter is a critical document in project management, as it officially kicks off the project and acts as a reference for its scope, objectives, and the roles and responsibilities of team members.

It sets the tone for the project and aligns stakeholders and team members around common goals.

Project Charter vs Project Plans

The project charter and project plans serve distinct purposes:

• Project Charter: This high-level document outlines the project’s vision, objectives, scope, high-level timelines, stakeholders, and possible risks. It does not delve into the detailed planning of project tasks.
• Project Plans: These are detailed documents that describe the specific tasks, schedules, resources, budgets, and management plans needed to execute and control the project. They are developed after the project charter is approved and often evolve throughout the project lifecycle.

Understanding the difference between the two ensures that the project charter is created with the right focus and level of detail before proceeding to the more granular project planning phase.

What To Include in Your Project Charter?

A well-crafted project charter should include:

• Project Purpose or Justification: The reason for undertaking the project and its benefits.
• Objectives and Success Criteria: Specific goals and what will be considered a successful outcome.
• Scope: Defines what is included and excluded from the project.
• High-Level Project Description: A brief description of the project’s deliverables or outcomes.
• Budget Overview: An initial estimation of the project’s financial requirements.
• Key Stakeholders: Identifies who will be affected by or have an influence on the project.
• Assigned Project Manager and Authority Level: Specifies who will lead the project and the extent of their authority.
• Timeline and Milestones: High-level deadlines and significant achievement points.
• Project Risks: Potential risks that could impact the project’s success.
• Approval Signatures: Formal endorsements from authorized individuals or groups.

Including these elements ensures that the project charter provides clear direction and a strong foundation upon which project plans can be built.

Related Terms/Concepts

• Project Objectives: Defined in the project charter, these are the goals the project aims to achieve, guiding the project’s direction.
• RACI Matrix: Utilized to clarify roles and responsibilities in the project as outlined in the project charter, ensuring accountability.
• SWOT Analysis: A strategic planning tool that can be part of the project charter process, assessing the project’s strengths, weaknesses, opportunities, and threats.
• Key Performance Indicators (KPIs): Metrics identified in the project charter to measure the project’s success against its objectives.
• Scope Creep: The project charter helps prevent scope creep by clearly defining the project’s scope, objectives, and constraints from the outset.

Create Your Project Charter in Taskade

Taskade is an effective tool that can be used to create and manage your project charter:

1. Template Creation: Use Taskade to develop a project charter template that can be reused for future projects.
2. Collaboration: Invite stakeholders to view and collaborate on the project charter in real-time, ensuring alignment and transparency.
3. Documentation: Keep all relevant project charter documentation in one place, easily accessible to all team members.
4. Version Control: Maintain a history of changes to the project charter, providing a clear audit trail and making it easy to revert to previous versions if necessary.
5. Approval Workflow: Use Taskade to streamline the approval process, allowing authorized individuals to provide their signatures or consent within the platform.

Taskade’s versatility in managing project documents makes it a valuable asset for project managers when crafting a project charter that will guide their project to success.

Frequently Asked Questions About Project Charter

Why Is a Project Charter Important in Project Management?

A project charter is important because it provides an official authorization for the project, clarifies its purpose, objectives, and scope, and defines the authority of the project manager, serving as a reference document throughout the project lifecycle.

How Does a Project Charter Help Stakeholders?

A project charter helps stakeholders by providing a clear understanding of the project’s purpose, objectives, high-level timelines, expected outcomes, and their roles and responsibilities, fostering alignment and setting clear expectations.

Can a Project Succeed Without a Project Charter?

While some projects may proceed without a formal project charter, having one significantly increases the chances of project success by ensuring that all parties involved have a common understanding of the project’s parameters and goals.