How To Create a Project Charter

Main ideas / lessons conveyed

• Purpose of a Project Charter: A project charter is an early, lightweight document (format may vary) that:

  1. Introduces people to the project—especially new team members after assignment.
  2. Creates alignment/agreement on key project aspects (e.g., objectives, scope, budget).
  3. Enables approval to proceed with project planning by circulating the final draft for signatures.

• Why it’s needed: Even if an organization uses different terms (e.g., project request, Scope of Work/SOW), the charter-equivalent helps reduce misalignment caused by different perspectives.

• How detailed it should be: Because it’s drafted before real planning, it shouldn’t be detailed. The recommendation:

  • Target size: 5 pages or less (ideally “less”).
  • Rationale: If people can’t read it quickly, it won’t achieve its purpose.

• What perspective misalignment looks like: The video uses cartoons/examples (e.g., old lady vs. young woman; “Tree Swing” cartoon) to show that different stakeholders often picture different outcomes—described as “one of the biggest killers of projects.”

• How to create it effectively: The charter creation process matters as much as the document—best done with a facilitated session involving the sponsor and team members.

• Where to get a free template: A download is available at the end via PMPerspective.com, with membership required.

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Methodology / instructions (checklist)

1) Define what a “project charter” is in your context

• Recognize that a project charter may be called different things depending on the organization:
  • Can be a Word document, PowerPoint, etc.
  • Charter may be equivalent to:
    • Project request (internal)
    • Scope of Work (SOW) (external clients)

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2) Use the charter for three core purposes

• Introduce people to the project (especially new team members).
• Align stakeholders on the most important elements:
  • objectives
  • scope
  • budget
  • (and other critical aspects)
• Obtain approval to proceed with planning:
  • send the final draft for signatures
  • use that approval to begin project planning

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3) Keep the charter short and “planning-light”

• Draft it early (before detailed planning exists).
• Include only enough information to describe:
  • the project
  • the product/solution it will create
• Recommended length:
  • ≤ 5 pages
• Avoid very long charters (example given: “50 pages”) because no one reads them.

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4) Include specific sections/information in the charter

Background

• Explain what an outsider/stakeholder needs to understand why the project is a good idea, such as:
  • industry trends
  • company challenges/turnaround
  • strategic direction from leadership/board

Scope

• Describe the end product/solution at a high level.
• Describe key actions the team will take (examples):
  • design/build the product
  • test it
  • market and sell a number of units
• Define boundaries:
  • what the project team is responsible for
  • where the project begins and ends
• Explicitly state what the team will NOT do if confusion is likely, e.g.:
  • the team designs/builds/tests, but sales/revenue targets are not the project team’s responsibility

Objectives

• Ensure objectives are measurable.
• Example:
  • Bad: “Significantly increase sales revenues” (ambiguous)
  • Good: “Increase sales revenues by 15% by the end of Fiscal Year 2014” (verifiable)

People / Roles

• Include a “who’s who” section:
  • PM, sponsor, and project team members (or leads for larger teams)
• Add enough detail so readers know who to contact for questions (e.g., environment for product development, testing approach).

Key dates / milestones

• Provide target/estimated timeline items.
• Clarify these are guesses/targets (since detailed plans/design may not exist yet).
• Still, an initial timeline can influence the approach.

Costs

• Provide cost estimates/targets (to be verified later).
• Break costs by fiscal year, including:
  • one-time execution costs
  • ongoing costs and maintenance

Constraints, Assumptions, Risks, Dependencies

• Constraint: an external/internal factor limiting or dictating parts of the project (examples):
  • an event must occur May–September due to snow in winter
  • limited staffing (only one developer; no outside help)
• Assumption: conditions relied upon to achieve objectives (example):
  • the ERP system will be used for the next five years (enabling productivity gains)
• Risk: anything that could block delivery (example):
  • hurricane risk disrupting/damaging construction
• Dependency: something that must happen for deliverables to meet objectives (example):
  • hotel construction completion needed before an opening-night event

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5) Follow a recommended drafting process

• Who should create it

  • Don’t draft in isolation.
  • Best practice: bring sponsor and team together in a facilitated session.

• How to run the charter session

  • Facilitate a Project Charter session.
  • Step through charter sections and ask probing questions.
  • Record answers on a flip chart/whiteboard.
  • Let differences in perspective surface—alignment through discussion is valuable (team-building aspect).

• After the session

  • Draft the charter back at your desk using the captured information.

• Feedback and sign-off

  • Send out a draft and request feedback from the team.
  • Incorporate feedback, then circulate for signatures.
  • At minimum, both the PM and the sponsor sign.

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6) Use a free template at the end (optional)

• Go to: www.pmperspective.com/resources/templates
• Click initiation phase to expand.
• Find the project charter template and click download template link.
• Note: download may require PMPerspective membership (free sign-up); no sharing/spam stated.
• The video also provides a link to the templates page.

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Speakers / sources featured

• PM Perspective video host (speaker): “PM Perspective” channel representative providing guidance on project charters and templates.
• PMPerspective.com (resource site/source): templates and membership for downloading a project charter template.