A Simple Guide to Project Charters

You likely think every project kicks off when the action begins.

In actuality, every project begins long before then.

In fact, every project starts in the same way – with a charter, whether it’s formal or informal.

With a . . . what?

If you’ve never heard about this project management work horse, it’s not surprising. A charter is one of the most important aspects of any project, but it’s also one of the least talked about deliverables.

Here’s what you need to know:

The charter is a reference document that outlines the essence of a project. It’s a road map of sorts that provides a shared understanding of the project while giving authority to the project manager to apply resources to get things done. Simply, it’s a place to gather all the basic information about your project in one place.

There is no universal formula for a charter. Not every charter has to be as formal as a contract (although it could be). But we find that it helps to document in writing the expectations, scope, objectives and deliverables required to make something happen.

After all, a charter shares the big picture of the project. It provides the basis for making decisions and communicates the project scope to the team or other stakeholders.

The components of a project charter include the expectations, scope that defines the project, objectives and deliverables and time needed to justify the project. A formal charter may note high level issues and risks, list resources, milestones and budget.

Some things to include in your next project’s charter:

Background, Purpose, Problem or Opportunity: Why are you doing the project? Why does the project fit the organization’s needs? What benefits are achieved through this project? What problem are you trying to solve? What opportunity is addressed through this project?

Goals or Objectives: What are you going to achieve and when? State what project success means and how to measure success. Use S.M.A.R.T. (Specific, Measurable, Achievable, Relevant, and Timebound) goals.

Scope: Describe the boundaries of the project: the requirements, features, functions, or key characteristics of the product or service. State what is critical for the project to be successful. What actions will you and your team take to complete the project? Sometimes it’s helpful to outline what is not included in the project scope. List the deliverables plus the final result.

Stakeholders: Identify everybody who is affected by the results or involved in the work. Know who can make decisions and has power or influence over resources.

Milestones: Include the event dates beyond the start and target end that are important.

Resources: Identify the budget, team members, materials, or tools needed for the project. With a solid project charter in place, you and those you work with will have a clearer understanding of where you’re heading and how you’re going to get there.

- Rachel