The project charter is a crucial document in project management, but before we dive into the details of what should be included in it, let’s first answer a fundamental question:
What is a project charter?
A project charter is a crucial document that officially endorses the existence of a project. It also empowers the project manager with the authority to utilize the organization’s resources for the project delivery.
This document acts as a key reference throughout the project, outlining the objectives, scope, stakeholders, deliverables, and other essential elements of the project.
The project charter is usually developed at the initial stages of the project lifecycle. It helps to ensure that everyone involved has a clear understanding of the project’s purpose and direction.
What to include in a project charter?
The project scope lies at the core of the project charter, serving as the basis for developing time, cost, and risk plans. However, besides the scope, there are other critical details that must be included in the charter.
I have listed them below with instructions to assist you in crafting a clear and compelling project charter.
Project Title
This is the project title that is usually used in the tender stage. As organizations can run multiple projects simultaneously, you should assign a unique project number to be used on project correspondences, internal file storage, etc.
1. Project Overview
This is a high-level overview of what prompts the project and its significance within the organization. Understanding the big picture is crucial in making the day-to-day decisions.
1.1 Background:
Briefly describe the background and context that led to the project’s initiation.
1.2 Project Purpose:
State the primary goal and purpose of the project. Explain how the project aligns with the organization’s strategic objectives.
1.3 Project Objectives:
List the specific objectives and outcomes that the project aims to achieve. Make them measurable and aligned with the project purpose.
2. Scope Definition
2.1 Project Scope:
Provide a high-level brief statement summarizing the project scope of work. This is sometimes referred to as a “scope statement.”
2.2 Scope Deliverables:
This is crucial and includes all tangible outputs and results the project will produce. You have to be detailed and ask yourself, will this item be provided at the end of the project? If the answer is yes, then list it.
For example:
- If you are going to provide a source file at the end of the project, list it.
- If you are going to provide a report, list it
- If you are going to provide a structure, list it.
The project deliverables can be used to develop the Work Breakdown Structure (WBS).
2.3 Scope Inclusions:
These items are not tangible deliverables but are still part of the scope.
For example:
- Assigning a designated project manager for the job.
- Attending a weekly meeting with the client.
- Coordinating part of the scope with a third party.
- Performing certain tests.
The more details you add to this section, the better.
2.4 Scope Exclusions:
This is equally important as the scope inclusions. Ensure you explicitly define what is excluded from the project scope.
Your client might not agree with some of these exclusions, which can be negotiated in due course. However, it is crucial to list the scope exclusions to manage the stakeholders’ expectations and prevent scope creep.
2.5 Project Boundaries:
This becomes particularly important when a project is part of a larger program or involves interfacing with other organizations within that program.
This is sometimes called the “battery limit,” which defines the project limits regarding the physical boundary and functionality interface.
3. Project Stakeholders
List the key stakeholders involved in the project, including the client organization and representative, the delivery project manager and project sponsor, and key team members. This will develop later into a stakeholder management plan.
4. Project Delivery Approach
4.1 Project Delivery Methodology:
Explain the approach, methodologies, and strategies that will be used to execute the project successfully.
For example:
- Is the work going to be completed internally or outsourced?
- Does it require extensive design efforts, or can it progress to execution with minimum effort?
- Are there any long-lead procurement items?
4.2 Project Team:
List the core project team members, their roles, and responsibilities.
4.3 Constraints:
List any limitations or restrictions impacting the project, such as budget, resources, time, or technical considerations.
4.4 Assumptions:
Document any assumptions regarding the project, as they can influence the scope and planning.
For example:
- If the work is going to be completed in conjunction with the scope of another project, assuming the same resources can be shared between the two.
- Or if the work has to start or finish within a particular calendar month due to seasonal or operational requirements.
5. Project Schedule and Milestones
5.1 Project Timeline:
Provide the project duration in calendar or working days. This is the total duration that the project must be completed. Sometimes this is determined by the client’s organization. The start date can be pending receiving certain approvals.
5.2 Key Milestones:
Highlight specific project milestones, including their dates and significance. The milestones are a key input in delivering the project schedule and cost plan; sometimes, payments can be inked to achieving certain milestones.
6. Budget and Resources
6.1 Project Budget:
Specify the budget allocated for the project, the estimate method, and budget contingency, including funding sources and any cost constraints.
6.2 Resource Allocation:
Outline the resources required for the project, including personnel, equipment, third-party services, and facilities.
7. Risk Management
7.1 Risk Identification:
The project risks are not always known at the start of the project. However, the aim is to identify early potential key risks and uncertainties that could impact the project’s success.
7.2 Risk Mitigation:
Similarly, describe high-level strategies for mitigating and managing the identified risks.
This will develop further into a complete risk management plan.
8. Communication Plan
8.1 Communication Objectives:
Outline the project’s communication goals and the stakeholders who must be informed. This is part of the stakeholder management.
8.2 Communication Channels:
Specify the communication methods, tools, and frequency of updates.
For example:
- Weekly progress meeting with the team.
- Fortnightly progress meeting with the client.
- Monthly report to senior management.
9. Approvals
This is to confirm that the project manager has been briefed on the project, including all of its components, and is now ready to commence working on it.
However, this does not mark the end of the project handover process, which may take several weeks on a complex project.
The project charter itself may be revised multiple times before the final version is agreed upon.
9.1 Project Sponsor Approval:
Signature of the project sponsor indicating approval of the project charter.
9.2 Project Manager Acceptance:
Signature of the project manager, acknowledging acceptance of the project charter.
Conclusion
The project charter is an essential document that requires the team to consider and consider all project planning and delivery aspects.
It provides a starting point and clear road map for the project manager to commence the detailed planning and execution activities. It can be referred to ensure the project tracks to its original goals.
