The importance of creating a robust project charter

When it comes to project management, a project charter is an essential document in which you should outline the objectives, scope and stakeholder details that are pertinent to your project. These are necessary when it comes to guiding and aligning the efforts of your team. The resulting charter is a form of contract that will not only give you an idea of the expectations of the project but will also give you the go-ahead to mobilise your resources.

Project charters and project plans

During any good project manager course you will learn that a project plan is something that goes into great detail, breaking down the project into smaller chunks. It will also include information about budgets, timelines, deliverables and risk management plans. A project charter, on the other hand, is the “big picture” that looks at the project as a whole without going into the final detail. It will provide direction rather than the exact steps.

The key elements of a project charter

As with all types of documentation for your project, there is a specific structure that needs to be followed. Your charter should have:

·       Overview – this is your quick reference point for the project and should include the project name, sponsor, manger and a brief description of objectives and deliverables

·       Scope – what falls within the boundaries of the project, and what doesn’t

·       Schedule – this outlines the milestones and timeline of the project including any key dates in order to ensure the project stays on target

·       Risks – those events or situations that may have a negative impact on the success of the project. This section should include plans for what to do if the risks happen

·       Budget – you should outline the financial resources that you require for a successful project, including a breakdown of all the associated costs.

·       Stakeholders – those who have a vested interest in the project

Why do you need a project charter?

There are three main functions of a project charter:

1. Define the project goals and the basic purpose of any work
2. Create an understanding of the goals, objectives and resourcing necessities of the project
3. Present all this information to the project stakeholders in order to proceed

Used in the initiation stage of your project, the charter is something that you will return to at other times during the life of your project.

Why is a project charter so important?

During training for PMs you will see that in addition to the three main functions of a project charter, there are also a number of other important benefits. A project charter can make the purpose of your project very clear which will ensure that its role within the company’s strategic goals is evident. It can help you to ensure that you have identified all of your key stakeholders very early on as well and in turn give authority to the project managers. Above all else however, it will help you to steer your project in the right direction, giving you something concrete to follow.