project charter vs business plan

2. Define the project scope.

When outlining the project scope, be as detailed as possible to set clear boundaries.

• Outline the key deliverables and major milestones. For instance, if you're developing a new app, deliverables might include the initial prototype by the end of Q1, a beta version by the end of Q2, and the final release by the end of Q3.
• Specify the tasks and activities that will be part of the project. Following our previous app example, this may include market research, design, development, and testing.
• Clearly state what is out of scope to avoid any misunderstandings. For example, additional features that will not be included in the first release, like social media integration or in-app purchases.

3. Identify stakeholders.

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The Power of a Project Charter: Purpose, Creation, and Best Practice

The project charter is an essential component of project management, and in addition, for a Project Management Professional (PMP) candidate, a complete understanding of the project charter is critical for success on the PMP exam. This blog post will explore the role of a project charter, its key components, the process of project charter creation, and best practices.

On this page:

• What is Project Management?
• The Project Manager
• Project Management Skills
• Project Management Core Principles
• Project Management Methodologies
• Project Management Lifecycle Processes
• Project Management Risk Management
• Tools and Software in Project Management
• Future Trends in Project Management

What is a Project Charter ?

A project charter is an important document that formally authorizes the existence of a project. It outlines the project’s purpose, objectives, scope, high-level requirements, key deliverables, project sponsor, and project manager’s responsibilities and authority levels.

The project charter serves as a reference point and guide for stakeholders throughout the project, providing a clear understanding of the project’s goals and boundaries. The project charter is typically signed off by the project sponsor, symbolizing the organization’s commitment to the project.

Role of a Project Charter

The project charter serves as an overview of the project’s high-level constraints, project risk, boundaries, and stakeholders. Additionally, it helps with gathering requirements to create the project scope statement.

The project charter is defined at the very beginning of a project, during the project initiation phase. It ensures that everyone involved in the project is aligned from the start and provides a reference point for making decisions throughout the project lifecycle.

Once the project charter is developed and signed off by the project sponsor, it grants the project manager the authority to proceed with the project planning process and to apply organizational resources.

Why is a Project Charter Useful?

A project charter is useful because it acts as a cornerstone for initiating and defining a project. By formally authorizing the existence of the project and allocating necessary resources, the project charter aligns stakeholder expectations and facilitates effective communication.

Project charters also empower project managers by establishing their authority and responsibilities, fostering efficient decision-making and resource management. Additionally, the project charter serves as a starting point for detailed planning and the development of the project management plan, ensuring a clear direction and the necessary support for project success.

Who Signs and Issues the Project Charter?

The project charter is typically created by a combination of stakeholders, including the project initiator or sponsor, project manager, business analyst, and potentially some members of the project team. Input from these stakeholders helps ensure that the project charter accurately reflects the project’s purpose, objectives, and scope.

The project sponsor, who is usually a high-ranking member of the organization with decision-making authority, is responsible for signing and approving the project charter. By signing the project charter, the project sponsor formally authorizes the project to proceed and grants the project manager the authority to utilize organizational resources for the project’s execution.

Project Charter vs. Project Scope vs. Project Management Plan

The project charter initiates the project and provides high-level information, while the project management plan and project scope statement build upon and refine this information, providing more detailed guidance for the project’s execution and management.

Project Charter:  This formal document provides a high-level overview of the project’s purpose, objectives, scope, and key stakeholders. It also establishes the project manager’s authority and serves as a foundation for the project.

Project Management Plan:  The project management plan is a comprehensive document that outlines how the project will be executed, monitored, controlled, and closed. It builds upon the information provided in the project charter and includes more detailed plans for scope, schedule, cost, quality, resources, communication, risk, procurement, and stakeholder management.

Project Scope Statement:  The project scope statement is a detailed description of the project’s scope, including the project’s boundaries, deliverables, and acceptance criteria. It refines and elaborates on the scope information presented in the project charter and serves as a reference for the project team and stakeholders throughout the project lifecycle.

Key Components

To create a project charter, you typically need input from various stakeholders and project team members. The specific inputs may vary depending on the organization and project, but here are the common elements required to create a project charter:

• Business Case : Present a compelling justification for the project that outlines the expected benefits, costs, and return on investment. It demonstrates the value and feasibility of the project.
• Project Purpose : Clearly state the reason for initiating the project, highlighting the problem or opportunity it aims to address.
• High-Level Requirements : Identify and document the key requirements or outcomes that the project must achieve to be considered successful.
• Defined at Organizational Level : Ensure that the project aligns with the organization’s strategic objectives, goals, and priorities. It should contribute to the organization’s overall mission and vision.
• Overall Project Risk : Assess and communicate the main risks and uncertainties associated with the project. This includes potential challenges, dependencies, and external factors that may impact the project’s success.
• Summary Key Milestone Schedule : Provide a high-level overview of the key project milestones, deliverables, and important deadlines. This helps to establish a timeline and identify critical points in the project’s progress.
• Pre-Approved Financial Resources : Secure confirmation or allocation of the necessary financial resources for the project. This includes budget approvals, funding sources, and any financial constraints or considerations.
• Project Approval Requirements : Define the criteria and process for obtaining project approval. Specify the decision-making authority and any required approvals from stakeholders or governing bodies.
• Project Exit Criteria : Identify the conditions or criteria that must be met for the project to be considered completed and ready for closure. This may include deliverables, quality standards, customer acceptance, or other relevant factors.
• Assigned Project Manager : Appoint a project manager who will be responsible for the overall planning, execution, and control of the project. Specify their role, authority, and responsibilities.
• Name and Authority of Project Sponsor : Identify the individual who will provide project sponsorship and support. Clarify their role, responsibilities, and decision-making authority levels.

How Do You Create a Project Charter?

To create a project charter, you typically need input from various stakeholders and project team members. Follow the steps outlined below, which align with the key components mentioned earlier:

• Define the Purpose and Project Scope:  Clearly articulate the purpose of the project based on the business case and establish its boundaries, deliverables, and exclusions.
• Set Project Goals and Objectives:  Identify and document the specific goals and objectives that the project aims to achieve. Ensure they are specific, measurable, attainable, relevant, and time-bound (SMART).
• Establish Project Manager and Team Roles:  Assign a project manager who will be responsible for overall project coordination and leadership. Define the roles and responsibilities of the project team members.
• Define High-Level Project Schedule:  Develop a high-level project schedule that outlines the major milestones and key deliverables. This helps to provide an overview of the project’s timeline.
• Develop a High-Level Timeline and Budget:  Create a timeline that identifies important project dates and milestones. Establish a high-level budget that outlines the estimated financial resources required for the project.
• Establish a High-Level Risk Management Plan:  Identify potential project risks and uncertainties that may affect the project’s success. Develop a high-level plan to manage and mitigate these risks.
• Define Communication Protocols:  Establish clear communication protocols and channels for effective information exchange among project stakeholders. Define how communication will be conducted, who needs to be involved, and the frequency and methods of communication.
• Obtain Formal Authorization:  Seek formal approval and authorization for the project charter. This may involve obtaining sign-off from relevant stakeholders or governing bodies.

By following these steps, you can create a comprehensive project charter that outlines the purpose, scope, objectives, roles, schedule, budget, project risks, communication plan, and formal authorization of the project. Remember to tailor the project charter to the specific needs and requirements of your project and organization.

Tips and Best Practices

• Use a standardized project charter template:  Employ a project charter template specific to your organization or industry to ensure consistency and adherence to organizational guidelines.
• Be clear and concise:  Focus on high-level information and avoid getting into excessive detail. The project charter should provide a clear overview of the project without overwhelming the reader with unnecessary details.
• Involve key stakeholders:  Collaborate with relevant stakeholders, such as the project sponsor, project manager, business analyst, and potentially some members of the project team, to gather input for the project charter and ensure that all perspectives are considered.
• Define project purpose and scope:  Clearly articulate the project’s purpose and scope, outlining what the project aims to achieve and its boundaries. This helps provide a shared understanding among stakeholders.
• Establish project milestones:  Create a summary milestone schedule to keep the project on track and measure progress.
• Establish roles and responsibilities:  Clearly define the roles and responsibilities of the project manager and other key team members. This helps to create accountability and ensure that everyone understands their role in the project.
• Develop a high-level timeline and budget:  Estimate the project’s timeline and budget, providing a baseline for tracking progress and managing resources.
• Identify risks and mitigation strategies:  Proactively identify potential risks and develop high-level plans for addressing and mitigating those risks throughout the project.
• Establish communication protocols:  Set communication channels and protocols for sharing information among stakeholders and keeping everyone informed about project progress.

By following these best practices, you can create an effective project charter that sets the foundation for successful project planning and execution.

Common Mistakes When Creating a Project Charter

Common mistakes in creating a project charter include:

• Getting too detailed:  The project charter should focus on high-level information, providing a clear overview of the project. Including excessive detail can overwhelm the reader and make the document less effective as a reference point.
• Overloading the charter:  Trying to include more information than necessary can make the project charter confusing and difficult to navigate. Stick to the essential elements to keep the project charter focused.
• Blending team charter elements:  Mixing team charter elements, such as individual roles and responsibilities, with the project charter can dilute the document’s purpose. Keep the focus on the project’s high-level goals and objectives.
• Lack of stakeholder involvement:  Failing to involve stakeholders in the creation of the project charter can lead to misaligned expectations and potential conflicts later in the project. Ensure that all relevant stakeholders contribute to the charter development.
• Unclear objectives and scope:  Ambiguous or poorly defined project objectives and scope can lead to confusion and scope creep. Clearly articulate the project’s purpose, goals, and boundaries to avoid misunderstandings.
• Unrealistic timelines and budgets:  Overly optimistic timelines and budgets can set the project up for failure. Ensure that your estimates are realistic and achievable to avoid disappointment and frustration later.
• Insufficient risk identification:  Failing to identify and address potential risks can lead to unexpected issues during the project. Proactively identify risks and develop high-level plans for mitigating them.
• Inadequate communication protocols:  Poorly defined communication channels and protocols can hinder information sharing and collaboration. Establish clear communication guidelines for the project.
• Skipping formal authorization:  Neglecting to obtain formal approval from the project sponsor can result in a lack of authority for the project manager to proceed. Ensure that the project sponsor signs off on the project charter.
• Not revisiting the charter when needed:  While the project charter should remain relatively stable, it may occasionally require clarification or adjustments. Failing to revisit the charter when necessary can lead to confusion and misaligned expectations.

By avoiding these common mistakes, you can create a more effective project charter that serves as a solid foundation for your project.

Project Charter and the PMP Exam

The PMP exam assesses your knowledge, skills, and experience in project management. To succeed in the exam, you need to have a comprehensive understanding of the project charter and its role in project initiation. Some aspects you should focus on include:

• The purpose of the project charter
• Components of a project charter
• The process of creating a project charter
• Inputs to the project charter
• The relationship between the project charter and other project documents, such as the project management plan and project scope statement
• Best practices and common mistakes in creating a project charter
• Integration with other knowledge areas in the PMBOK Guide

Tips for PMP Exam Success

To succeed on the PMP exam, make sure to study the Project Management Body of Knowledge (PMBOK) Guide , which serves as the foundation for project management best practices. In addition, consider attending PMP exam preparation courses, participating in study groups, and utilizing online resources such as practice exams and discussion forums. A strong understanding of project charters will not only help you on the PMP exam but also enable you to apply this knowledge effectively in real-world project management situations.

The project charter is a vital tool in helping to define the project’s purpose, scope, and key stakeholders. By following best practices and involving all relevant stakeholders in its creation, a project charter can lay a strong foundation for successful project planning and execution.

Erin Aldridge, PMP, PMI-ACP, & CSPO

• Erin Aldridge, PMP, PMI-ACP, & CSPO #molongui-disabled-link Understanding Project Management: Basics and Beyond
• Erin Aldridge, PMP, PMI-ACP, & CSPO #molongui-disabled-link Understanding and Managing Scope Creep for Project Management Professionals
• Erin Aldridge, PMP, PMI-ACP, & CSPO #molongui-disabled-link Mastering the PMP Test: Key Strategies and Tips for Success
• Erin Aldridge, PMP, PMI-ACP, & CSPO #molongui-disabled-link Understanding the Duration of the PMP Exam: A Complete Guide

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Project Charter: A Guide with Examples and Template

Fahad Usmani, PMP

April 9, 2024

In project management, the project charter is a key document that management creates to officially start the project. This document is the basis of the project and is referred to throughout the project lifecycle.

The project charter is a part of the initial business documents; other documents are the business case and benefits management plan.

The Project Management Institute (PMI) insists the project must have a charter. 

In today’s post, I will explain the project charter and provide you with an example and template that you can use for your project.

What is a Project Charter?

According to the PMBOK Guide, “A project charter is a document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with authority to apply organizational resources to project activities.”

A project charter establishes the project, names the project manager, and gives them the authority and funding required to execute it. It induces high-level project details.

The project charter is signed by someone external to the project who has access to funds and resources to complete the project. This person can be senior management, the PMO, etc.

Although the project manager does not create or sign the project charter, they can help the project sponsor or management develop the project charter.

In project management, the charter also applies to program and portfolio management with the same purpose – authorization.

Before starting the project, the sponsor conducts a feasibility study , a cost-benefit analysis, and a review of the benefits management plan. If the project fits their long-term goal, they will proceed.

The project charter defines the project and guides stakeholders. Changes to the project charter are rare; only the sponsor or top management can do so.

A project is often known as a “Project Initiation Document (PID)” or a “Project Definition Document.”

Project Charter Template

A project charter template is shown below.

A project charter has the following elements:

• Core Team Members: This lists the key team members, including the project manager.
• Project Summary: This gives an overview of the project (e.g., start date, estimated completion date, and project benefits).
• Milestones: A project milestone is a significant point or event (e.g., a kick-off meeting , site mobilization, phase end, final report submission, deliverable completion, etc.). Milestones are listed alongside their due date.
• Opportunity: This is a problem-solution statement. What is the purpose of the project? What benefits will this project bring to the project sponsor ?
• Goal: Goals are high-level vision statements that provide context for what the project will accomplish.
• Objective: While goals are visions, objectives are missions. These are measurable targets that the project aims to achieve. Objectives must be SMART (i.e., Specific, Measurable, Attainable, Realistic, and Time-Bound).
• Scope: This is the high-level scope of the project .
• Business Case: This justifies the project’s existence. It is usually developed after a feasibility study or cost-benefit analysis has been conducted.
• Constraints: These are limitations on the project objective (e.g., time, budget, scope, quality, etc.). As the project evolves, the constraints may change—especially for highly uncertain projects that use Agile approaches.
• Assumptions: These are conditions that are assumed to be true. They are recorded in the assumption log.
• Deliverables: Project deliverables are specific outcomes the project expects to achieve.
• Stakeholders: These are individuals, entities, or groups of individuals who are interested in the project or its output. A project charter contains the names of the key stakeholders (e.g., project sponsor, project manager, etc.).

Other components of the project charter are the project’s title and description, pre-assigned resources (i.e., people or resources who are assigned to the project before it formally begins), high-level project and product requirements, acceptance criteria, key risks, etc.

Finally, every project has a business justification, assigned budget, and duration, including start and end dates.

Download the Project Charter Template in Word

Download the Project Charter Template in PDF

Let’s discuss the process used to create the project charter. 

How to Write a Project Charter

A project charter development process is shown in the below image.

Input Required to Develop the Project Charter

The following is a basic description of the input elements:

Contracts or Agreements: You will need these documents if the project is the result of a contract or agreement.

Business Case: This outlines the project’s financial justification and cost-benefit analysis. The benefit-management plan describes how the client will benefit from the project’s deliverables.

Other input includes organizational policies, such as human resources policies (which can aid in the selection of project team members), health and safety policies (which can serve as a warning against approving projects that could seriously jeopardize the lives and health of project team members), security and confidentiality policies, and quality policies (which could include the cost of quality ). 

Tools and Techniques for Developing the Project Charter

Expert Judgment: This includes talking to specialists about the project charter. These are people or organizations with expertise in various aspects of project management. Their feedback will help create a solid project charter.

Focus Groups/Brainstorming Meetings: These will help gather ideas or data (e.g., project cost, duration, risks, milestones, stakeholder list, etc.). Brainstorming meetings can help the charter team produce ideas. Brainstorming is a relaxed, informal approach to problem-solving that uses lateral thinking. Although some ideas may sound strange, they should still be noted. A focus group takes a structured approach, and it usually involves subject-matter experts moderated by a facilitator. 

The facilitator must elicit information by asking proper questions, checking responses, and developing new questions based on these responses. Meetings will provide a forum for discussion, planning, and other activities. To be productive, meetings must adhere to fundamental guidelines (e.g., timeliness, agenda, decorum, etc.). You may adopt a more facilitative strategy rather than a directive one. A successful meeting plan must unify all efforts to gather expert perspectives.

Interpersonal Skills: These skills will help drive the above activities. They cover communication, conflict resolution , team building , emotional intelligence, etc. All projects have one thing in common: their workforce. As such, they must lead with relational power rather than force. Additionally, they must innovate, influence, act morally, look to the future, question “what” and “why,” develop ideas, and concentrate on a unified vision, inspiration, and motivation.

Project Charter: The project charter is a key output of this process. After the project charter is approved, the project manager can start the activities.

Assumption Log: Assumptions and constraints that are used to develop the project charter are recorded in the assumption log. The assumption log is updated throughout the project as assumptions change or become invalid.

Tips for Writing a Project Charter

The following tips can help you develop a project charter:

• Keep it Short and Clear: The project charter will provide high-level information, so keep it short and precise. Keep the number of sections to a minimum, organize the information well for easy referencing, and label each section.
• Make it a Collaborative Effort: Involve experts and key stakeholders in developing the project charter. It will make the project charter more robust.
• Use a Template: Every organization has a project-charter template. This is standard and acceptable. Using it will save time and get quick stakeholder buy-in.

Project Charter Example

Let’s see an example of a project charter.

Project Charter Benefits

The following are the benefits of a project charter:

• It gives the project manager the authority to complete the project.
• It explains the project’s existence.
• It shows management’s support for the project.
• It defines the outcome.
• It aligns the project with the organization’s objectives.
• It gives team members a transparent reporting system.
• It helps avoid scope creep and gold plating .
• It helps avoid project disputes.

A project charter builds a solid foundation for the project. It provides a common understanding of the objectives.

Project Charter Vs Business Case

A business case provides reasons to proceed with the project. This document helps the project sponsor decide whether to proceed with the project. 

This document provides the project’s benefits, risks, constraints, cost-benefit analysis, etc.

Project Charter Vs Memorandum of Agreement

The Memorandum of Agreement (MOA) is an agreement between the two parties. When a contractor gets a contract from a client, they both sign an MOA. This is a commercial and legally binding document; changes may only be made with the consent of both parties. An MOA is often a one—or two-page document.

On the other hand, a project charter is only signed by one side. Here, the project manager is chosen and given the responsibility to complete the project. The signing authority may change this document as necessary; it is not legally binding.

Project Charter Vs Project Plan

A project charter is a brief document. It is the project’s initial document, authorizes the project, and gives project managers the power to finish it.

After the project charter is signed, project plans are created. The scope management plan, quality management plan, risk management plan , procurement management plan, and stakeholder engagement plan are just a few of the many subsidiary plans that comprise a project plan.

A project plan may be hundreds or thousands of pages long. It offers all the information necessary to complete the project work.

Project Charter Vs Project Brief

A project brief is created after the project charter is signed, the project is started, and project management plans are developed.

A “project brief” provides a shorter version of the plans, so stakeholders can review it and grasp the planning process.

Project Charter FAQs

Now, let’s discuss some FAQs about the project charter.

#1. Who Signs the Project Charter?

PMP aspirants often get confused and think the project manager signs the charter. 

Note that the project charter appoints a project manager. A person cannot appoint himself.

The sponsor, or someone from top management, signs the project charter. They are external stakeholders and have the authority to provide resources and support.

#2. Can a Project Have Multiple Project Charters?

One project charter is the norm for projects. Large, multi-phased projects, however, may have project charters for every stage. It is preferable to break a project into phases when the scope is too large to manage—for instance, a project to build a refinery.

#3. Who Keeps the Project Charter?

The project charter is an official controlled document. The project administrator or coordinator can keep a copy, which could also be stored for reference at the project management office .

The project charter gives project managers the authority, support, and funds required to complete the project. A project intends to solve a problem, but if launched incorrectly, it may fail and waste resources. A strong project charter will help the team successfully complete the project.

From the perspective of the PMP test, this subject is crucial. Therefore, fully comprehend it.

I am Mohammad Fahad Usmani, B.E. PMP, PMI-RMP. I have been blogging on project management topics since 2011. To date, thousands of professionals have passed the PMP exam using my resources.

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Well done, thanks.

very Helpful documets

Any way I could have access to these charter templates?

The project charter is a very important document so why doesn’t every project have one? How can we ensure this on our projects?

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Project Management Techniques. A Complete Guide to Project Charter vs Project Plan

August 8th, 2024

Getting projects done right needs careful preparation, guidance, and monitoring. Two crucial papers are the project charter and the project plan.

Project charters authorize the project and provide a basic outline of the work’s goals, boundaries, and teams. It approves and shares an understanding of what the project wants to accomplish.

Project plans take high-level aims and turn them into concrete steps, schedules, and deadlines to guide the work through to completion. It translates goals into doable tasks and checkmarks.

While these papers connect projects to purpose, they hold differing roles and particulars. Charters lay the base level. Plans drive more detailed execution.

Key Highlights

• Project planning requires two important papers to guide the work properly.
• Project charters summarize aims, objectives, and boundaries at a high level.
• Project plans then fill out the specifics – the step-by-step roadmap seeing goals realized.
• While connected, these papers perform distinct roles. Knowing how differs proves pivotal for handling projects well.
• Both papers play key parts in sustaining order and understanding projects involving numerous invested parties.
• Meshing the charter and plan from the beginning optimizes coordination cohesively.
• Managing artfully demands reading discrepancies and interweaving documentation aptly. This empowers fluid projects fueled by agreement propelling ventures profitably.

Project Charter vs Project Plan

Whether devising new products, installing innovative systems, or marketplace diversification—projects need accurate planning/execution.

Two imperative directives streamlining this journey are project charters and project plans.

Project charters diagram goals, demands, and stakeholders plainly via a high-level outlook to get approval.

Project plans then furnish thorough step/timeline/resource blueprints—a navigational map to guide teams to navigate projects easily.

Initially, project charters birth official authorizing undertakings ahead of project launches foundation. Project plans subsequently elaborate management going forward, adjusting fluidly, and morphing necessities.

Both papers maintain synchronized guidance proving pivotal for coordinated, profitable projects concluded.

Together charters and plans synergize piloting complex ventures systematically, fueling enterprises aptly navigating volatility through dexterous, evidence-led coordination.

Key Components of a Project Charter

A project charter is created at the initial phase of a project. It aims to dwell on the purpose and the main objectives of a project that is approved by the project sponsor or executive leadership.

Project Purpose and Justification

This section outlines the business case and rationale for initiating the project. It explains why the project is being undertaken and how it aligns with the organization’s strategic goals and objectives.

Project Scope

The scope statement clearly defines what is included in the project and what is out of scope. It sets boundaries to manage expectations and prevent scope creep.

High-Level Requirements

Any high-level requirements, specifications, or constraints that the project must meet should be listed in the charter. This could include things like performance, quality, regulatory, or timeline requirements.

Major project milestones and deadlines are identified to provide a high-level schedule and timeline for the project.

Roles and Responsibilities 

The key roles involved in the project are outlined, including the project sponsor, steering committee, project manager, and core team members. Their respective responsibilities are defined.

Stakeholders

All stakeholders who will be impacted or have interest/influence in the project outcomes are listed and categorized (e.g. customers, management, suppliers, etc.)

Any known potential risks that could impact the project’s success are documented, even if they haven’t been fully assessed yet.

Budget Estimate

A rough order of magnitude or ballpark budget allocation for the project is provided based on initial estimates.

Success Criteria

The charter defines what will constitute a successful project delivery and how success will be measured and evaluated.

Approval Requirements

It lists whose approval was needed to officially initiate and kick off the project based on organizational governance.

By capturing these key elements up front, the project charter forms the foundation to effectively launch and govern the project. It aligns stakeholders and sets boundaries before more detailed planning is done.

Key Components of a Project Plan

A project plan is a formal, approved document that defines how the project will be executed, monitored, and controlled. It is a comprehensive plan that integrates and consolidates all of the planning efforts for the project. The key components of a project plan typically include:

Project Scope Statement

This outlines the project deliverables, objectives, requirements, boundaries, and key milestones. It provides a clear description of what needs to be accomplished.

Work Breakdown Structure (WBS): The WBS breaks down the project scope into smaller, manageable work packages and activities. It helps organize and define the total work effort required.

Project Schedule

This timeline shows the start and finish dates for the major deliverables, activities, and milestones. It sequences activities and typically uses a Gantt chart for visualization.

Project Budget

This estimates the costs for project activities including labor, materials, equipment, and other resources required to complete the work.

Resource Management Plan

This describes how human and other physical resources will be estimated, acquired, managed, and utilized on the project.

Risk Management Plan

This document identifies potential risks to the project and defines risk response strategies to deal with threats and opportunities.

Quality Management Plan

This describes how the project will ensure it meets quality standards and requirements. It covers quality assurance and control measures.

Procurement Management Plan

If the project requires procuring goods or services from outside vendors, this plan outlines how procurement processes will be managed.

Stakeholder Engagement Plan

This component focuses on strategies to effectively engage project stakeholders through communication, involvement, and managing expectations.

Change Management Plan

This establishes the process and requirements for controlling, documenting, and approving changes to the project baselines and deliverables.

Communication Management Plan

This plan identifies the information needs of stakeholders and defines processes for generating, collecting, distributing, and disposing of project information.

By consolidating these key components, the project plan provides a roadmap for the team to follow throughout the project lifecycle. It aligns operations and manages expectations against the approved scope, schedule, and budget baselines.

Differences Between Project Charter vs Project Plan

While both a project charter and a project plan are critical documents in project management , they serve distinct purposes and contain different information. Here are the key differences between a project charter vs project plan:

• A project charter formally authorizes the existence of a project and provides a high-level overview. It defines the reason for the project and describes the objectives, scope, and stakeholders involved.
• A project plan is a comprehensive document that outlines the execution, monitoring, and control aspects of the project. It acts as a roadmap, detailing the activities, timelines, resources, and strategies required to accomplish the project’s goals.

Level of Detail

• A project charter is a brief, high-level document that summarizes the key elements of the project.
• A project plan is a detailed, in-depth document that expands on the information provided in the project charter and includes granular details about the project’s execution.
• A project charter is typically created at the beginning of a project, during the initiation phase.
• A project plan is developed after the project charter has been approved and serves as a guide throughout the project’s lifecycle.
• A project charter includes the business case, objectives, high-level requirements, key milestones, and the roles and responsibilities of the project manager and stakeholders.
• A project plan covers the work breakdown structure (WBS), schedule, budget, resource allocation, risk management plan , quality plan, communication plan, and procurement strategy, among other components.
• A project charter requires approval from the project sponsor or steering committee to formally authorize the project.
• While a project plan may undergo reviews and revisions, it does not require formal approval like a project charter.

By understanding the distinctions between a project charter and a project plan, project managers can effectively utilize these documents to initiate, plan, execute, and deliver successful projects.

Best Practices for Developing Project Charter and Project Plan

Developing a comprehensive project charter and project plan is crucial for the success of any project. Here are some best practices to follow:

Stakeholder Involvement

Engage all key project stakeholders early in the process of creating the project charter and plan. Their input ensures that requirements, assumptions, constraints, and risks are accurately captured. Stakeholder buy-in from the start builds commitment and support.

Clear Scope Definition 

Clearly define the project scope, deliverables, and objectives in the project charter. This sets clear boundaries and manages stakeholder expectations right from the start. The project plan should detail how the scope will be achieved.

Thorough Planning

Invest sufficient time in planning all aspects of the project. Break down the work into manageable tasks and activities in the work breakdown structure (WBS). Identify dependencies, resources required, timelines, budgets, and potential risks.

Change Management Process

Establish a robust change management proces s to handle any changes to the project scope, schedule, or budget. Define how changes will be evaluated, approved, and incorporated into the updated project management plan.

Regular Review Cycles

Schedule regular review cycles for both the project charter and plan. As the project progresses, revisit assumptions, analyze new risks, and update the documents accordingly to reflect the current project status accurately.

Clear Communication  

Implement a communication plan to ensure all stakeholders are kept informed about the project’s progress, issues, and changes. Effective communication prevents misunderstandings and manages expectations.

Lessons Learned

At project closure, conduct a “lessons learned” session to identify areas of improvement for developing future project charters and plans more effectively.

By following these best practices, project teams can create well-defined, comprehensive project charters and plans that provide a solid foundation for successful project execution and delivery.

Integration of Project Charter and Project Plan

While the project charter and project plan are distinct documents, they are closely integrated and work together to guide the successful execution of a project.

The project charter serves as the initial authorizing document that formally initiates the project and outlines its objectives, scope, and high-level requirements. It essentially “charters” or mandates the project work to begin.

The project plan then builds upon the foundational information contained in the charter. It takes the broad strokes painted by the charter and maps out a comprehensive, detailed roadmap for how the project work will be accomplished.

The project plan translates the charter’s scope, goals, and requirements into specific activities, timelines, assignments, budgets, and control processes.

An effective project plan should always map back to satisfying the objectives, deliverables, and other key elements defined in the originating project charter.

The plan operationalizes the charter in a structured, logical way to ensure its mandates can be successfully executed and delivered.

At the same time, any changes to the project’s scope, goals, or parameters captured in the charter should flow back down to potentially update and adjust the downstream project plan details. The two documents must remain synchronized and aligned throughout the project lifecycle .

This bi-directional integration b/w the project charter vs project plan and traceability between the charter and plan is crucial.

It ensures the project team stays true to the originally authorized charter intents, while also allowing for the plan to adapt if any changes occur to what was initially chartered and approved.

To Conclude

A project charter formally launches work through high-level framing goals, stakeholders and boundaries for endorsement.

In contrast, detailed project plans translate visions into accountable roadmaps through schedules, budgets and more.  

Both prove pivotal for project prosperity. Charters establish preliminary understandings while plans govern execution meticulously.

These twin directives, project charter vs project plan, harmonize administration from proposal to results.

As undertakings complicate, charter-plan synchronization intensifies in importance.

Project managers wisely dedicate preliminary efforts to customizing interdependent delineations, systematic orchestration, lucidity, and controlled risk-taking.

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What Is a Project Charter? Example + Free Template Included

Suppose you have a great business idea for your department’s next project. But, having an idea is not sufficient to bring your project to life. You must present it to the right people and get their approval. 

For this purpose, you’ll need a project charter.

In this guide, we’ll cover the project charter definition and its key elements.

Also, we’ll explain the main differences between a project charter and other vital project management documents. 

To make the concept clearer, we’ve prepared a project charter example followed by a free project charter template.

Let’s dive into the matter.

• A project charter is a project management document that formally acknowledges the existence of a project and serves as an elevator pitch for the project.
• The main purpose of a project charter is to secure approvals for project execution from the stakeholders. 
• There is no universal list of project charter elements, but a good project charter should ideally include 12 elements, some of which include project purpose, scope, deliverables, resources, milestones, risks, and others.
• The easiest way to create a project charter for stakeholders is to discuss all specifics with your team first and then briefly cover important project information in a premade template.

Table of Contents

What is a project charter?

A project charter is a project management document that formally acknowledges the existence of a project and serves as an elevator pitch for the project, aiming to secure approvals for its execution.

In essence, a project charter is a high-level overview of your project. It should include a brief explanation of the main elements of your project as this enables project stakeholders to understand your project scope , objectives, and responsibilities.

Project sponsors or the person who initiated the project are usually the ones in charge of this document.

When approved, the project charter gives a project manager the authority to apply organizational resources to project activities .

What are the 12 components of a project charter?

There is no universal list of project charter elements, but a good project charter should ideally include the following 12 elements:

• Project title,
• General project information,
• Project purpose,
• Deliverables,
• Milestones,
• Project team structure, 
• Key stakeholders,
• Success measurements, and
• Project approval.

Let’s briefly explain each of these elements.

Component #1: Project title

Your project name should always be straightforward and descriptive.

For instance, if you intend to create additional landing pages for products on the website you are developing, the name can be “Developing new product landing pages — website X.”

Component #2: General project information

The general information that every project charter should include is the following:

• The project manager,
• The project sponsor,
• The business unit responsible for the project execution, and
• The date when the project was pitched.

Component #3: Project purpose

Your project should have justified reasons for being conducted. 

To identify the project purpose, try answering the following questions:

• What business needs will this particular project meet?
• What do you want to achieve with your project?
• How do your goals and objectives align with larger organizational goals?

Also, it’s advised to use the SMART criteria for setting your project goals and objectives more easily.

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Component #4: Scope

Briefly summarizing what will and will not be included in the project tasks ensures that you stay on the same page with your client and prevent misunderstandings.

Component #5: Deliverables

Depending on your project type, deliverables can be various products or services you get upon the completion of a project. Here are some common examples of key deliverables: 

• Business cases,
• Landing pages for different products, 
• Prototypes, 
• Wireframes, etc.

Defining deliverables provides a clear end goal for your project, which makes your project charter much more valuable to stakeholders — and more likely to get approved.

Component #6: Project resources

Make sure you have an estimated project budget to begin with. In addition to the financial considerations, you should also identify: 

• The number of people you’ll need for the project,
• The necessary equipment, and 
• Other project resources , depending on the industry, project type, and complexity.

💡 Plaky Pro Tip

Identifying and organizing your project resources is much easier with a ready-made template. Check out our free resource planning templates below:

• 7 Resource Planning Templates for Excel & Plaky [Free Download]

Component #7: Project milestones

Apart from predicting anticipated start and end dates, it’s advised to identify all key project milestones and when they will be completed.

Component #8: Risks

Providing a list of potential project risks and explaining how they can affect the outcome of your project in the early stages can help mitigate more significant issues later in the project.

So, take your time to ponder potential project risks and write down what could go wrong.

💡Plaky Pro Tip 

Read this guide to learn how to implement risk management practices into your projects:

• Project Risk Management — An 8-Step Process to Success

Component #9: Project team structure

Make a list of people who will participate in the project and specify their project roles and responsibilities . 

To better define the team structure, try answering the following questions:

• Who will be responsible for managing the project? 
• Who are the other people who will be working on the project?
• What are their responsibilities?

Component #10: Key stakeholders

It is vital to name the main project stakeholders , both those within or outside the organization, as they can have an influence on the project’s outcome.

In your project charter, you should mention who’s in charge of:

• Project charter approval, and 
• Other key responsibilities.

Component #11: Success measurements

Identify the metrics you will be using and the targets you want to achieve with your project.

Take the budget key performance indicator for an example – you can mark the project as successful if you achieve overall cost savings of $100,000 or reduce production time by 25%.

Component #12: Project approval

In the end, specify who signs off on the project, that is, who is in charge of approving the project charter.

Project charter example

Now that we’ve explained all the elements of a project charter, it is time to see the project charter in action.

To illustrate the matter, we will provide an example of a project related to mobile application development with all the relevant parts of the project included.

Suppose you want to develop a food ordering app.

Then, your sample project charter can look like the following example.

Project charter template

Remember — no one enjoys reading a wall of text.

So, apart from making sure your project charter is not overly long, ensure you make it visually appealing to people who must read it and decide on its approval — you can achieve this via proper structuring and formatting.

Separate the sections of your charter using tables, to make your document easier to scan and digest.

We suggest using a simple project charter template. 

Don’t worry — you don’t have to lose your precious time creating such a template. 

We have prepared an easy-to-use project charter template you can edit and download for free.

🔽 Download the project charter template

If you prefer to print and fill out the project charter template manually, we’ve also prepared a print-friendly version.

🔽 Download the project charter template for printing

What is the difference between a project plan and a project charter?

The main difference between a project plan and a project charter is that the project charter is created before a project plan, and its purpose is to secure project approval and give the project manager authority to start working on the project. 

Unlike the project charter, which describes the entire project on a macro level, the project plan goes into the essence of all the project phases . 

The project plan provides a more in-depth outline of the project’s key elements and explains how project activities will be executed. 

What is the difference between a project brief and a project charter?

The main difference between a project brief and a project charter is that a project brief provides a short description of the key elements of your project plan, while a project charter aims to authorize the project formally. 

In other words, the project brief is the summary of the project plan and is created after obtaining the project’s approval. It serves as the reference point for your project team and stakeholders.

What is the difference between a business case and a project charter?

The main difference between a business case and a project charter is that the business case explains why the company should spend its resources on a specific project, detailing the benefits and risks of a significant business investment. In addition, the business case involves making project assumptions in terms of costs and expected revenue to determine its financial justification. 

In contrast, the project charter outlines, at a macro level, what needs to be done and establishes project constraints such as budget, project timeline , and scope. 

Both of these documents are created during the project initiation phase, but the two terms are not interchangeable. 

How to create a project charter

There is no universally accepted procedure on how to build a project charter. But, we have selected some tips that can come in handy:

• Discuss the charter with your project team,
• Keep it short and simple,
• Include all vital information, and
• Present the project charter to relevant parties and secure approval.

Let’s explain each step.

Step #1: Discuss the project charter with your team

No one expects the project manager to be Superman. A team is always stronger than just one person, as everyone brings their experience and specific knowledge to the table. 

So, join your forces and ask each team member for their opinion about the project. 

Discuss project goals, milestones, and risks with your team.

Insights from your team members can help you catch crucial details and create a more accurate project charter. 

After all, the more precise the benefits of a project charter are, the better the chances are that stakeholders will approve it.

Step #2: Keep your project charter short and simple

A project charter should be on point — clear and concise. You want to sell your project and not annoy key stakeholders with unnecessary details that may contribute to them giving up on your project. 

Sure, with other planning documents, such as a project plan , feel free to go into more detail. But, each project charter section should only be 1 or 2 sentences long.

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Step #3: Include all vital information in your project charter

Although there is no universal list of elements we can apply to all project charters, certain information should not be omitted, including the following: 

• Objectives of a particular project,
• Known risks and project constraints, and
• Stakeholders and team members.

Step #4: Present your project charter to relevant parties and secure approval

If you want your project to get approval, you should do more than just email your project charter to key stakeholders as a PDF. 

Instead, you could organize a presentation or book a meeting to explain what you intended to achieve with a particular project. 

Also, this is an excellent opportunity to answer the stakeholders’ questions and ease their concerns, if any.

What is the purpose of a project charter? 

There are several reasons why you need a project charter. Some of the most common purposes of a project charter include the following:

• The project charter serves as the project’s marketing tool to secure stakeholders’ approval — it’s a brief description of your project, and it “sells” your project to key stakeholders in charge of the project approval.
• The project charter authorizes the existence of a project — without getting approval from stakeholders — there is no project. The primary purpose of a project charter is to authorize the existence of your project. After project charter approval, a project manager can begin initiating and executing the project.
• The project charter explains the business importance of the project — before carrying out a project, you need to make sure that stakeholders understand the business importance of the project and where they are investing their resources. 
• The project charter helps prevent scope creep — it outlines the project’s parameters so that everyone can understand them.

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Getting a project off the ground can be an achievement in itself, but seeing it through to completion is the real challenge. To keep your project on track, you should use a comprehensive project management tool such as Plaky.

With Plaky, you can:

• Create project boards for each project,
• Create tasks and group them as needed,
• Track a variety of important information related to each task,
• Communicate with team members via task-specific threads,
• Share files with no limit on maximum storage space, 
• Choose between Table, Kanban, and Gantt view modes, and much more.

If you’re unsure whether Plaky is the right choice for you, there’s a 14-day free trial that gives you full access to the app’s feature set. 

After that, you can continue using the Free plan indefinitely, opt for one of the premium plans, or go with the full CAKE.com software bundle .

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Advanced Project Management Terminology

Project Management Methodologies

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The Essential Guide to Project Charters

By Kate Eby | June 23, 2022

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Creating a project charter is the first step in project planning. We’ve outlined the basics to get you up and running before your next project.

Included on this page, you’ll find a list of the project charter uses , the benefits of creating a project charter , and a downloadable facilitation kit .

What Is a Project Charter?

A project charter is a summary of a project or a project phase. Most project charters include the project overview, scope, goals, budget, timeline, stakeholders, and risks. Use a project charter as a guide for completing a project.

A project charter marks the beginning of project planning. Project sponsors also use project charters to authorize the project. Project managers should update the charter to reflect changes as the project progresses, but it is not as detailed as the project plan. To learn more about project planning, read this guide to creating a project plan.

“A charter is a powerful document developed at the start of a project that remains essential throughout. It should detail the scope (and at times what is out of scope) and approach for completing the project. The charter should also contain key information such as the reason for the project, the benefits of the project, and the names of team members and sponsors,” explains Michelle Campbell , Senior Vice President of Citi.

Elements of a Project Charter

Most project charters contain the same core elements. These elements include project goals, scope, estimated budget and timeline, team members, stakeholders, and potential risks. Include all of these elements to ensure that your project charter is helpful.

A project charter should include the following elements:

• An overview of the project’s goals
• An outline of the project’s scope
• An estimated budget
• An approximate schedule for deliverables 
• The names of team members and stakeholders
• Potential risks the project may face

These elements may differ slightly based on your industry and the nature of your project. To learn more about how to create each of these components, read this guide to the elements of a project charter .

Project Charter Template

Download Project Charter Template Microsoft Excel | Microsoft Word | Microsoft PowerPoint | Google Docs | Smartsheet

Use this project charter template to outline your next project for review and approval by its sponsor. This fully customizable template has space to include your project overview, schedule, scope, resources, budget, and anticipated risks so that you can plan and manage progress. 

For more options, see this collection of additional project charter templates for Agile, construction, and Six Sigma projects .

What Is the Purpose of a Project Charter?

A project charter provides a high-level overview of the project’s conditions and objectives. For some projects, creating the charter is the first step. For larger projects, teams create a charter at the beginning of each new project phase.

“A project charter gives project managers the green light to plan and execute the project,” says David Reid, Sales Director at VEM Tooling . “It outlines the specific standards for meeting the stakeholders' needs and defines the project manager's authority.” 

The charter also provides context for both the project’s sponsor and stakeholders to understand what the project requires, the problems it will solve, and the benefits and deliverables it will produce. It should give all parties an overview of the budget and resources required, along with an estimated schedule for deliverables and milestones. In addition, it should highlight any potential risks and roadblocks, as well as contain a list of stakeholders and their roles within the team.

Project managers should update the charter as the project progresses in order to reflect any major changes to any of these elements. A large project may have more than one charter. These might simply be different drafts, or it could be a new charter for each major project phase.

Main Uses of Project Charters

Use a project charter to authorize the existence of a project, establish its goals, and provide an overview of the project’s status. Project managers, teams, and sponsors all use the charter to summarize a project and keep it on track.

The following are the main reasons to use a project charter:

• Act as the Primary Reference Document: Your project charter can serve as the primary reference document for future projects. Historical budget and schedule information is a valuable resource for budgeting and scheduling future projects.
• Act as the Primary Sales Document: The project charter functions as a quick reference for anyone curious about project details. Employees can use the charter in meetings or during customer pitches as an example of what a company is currently working on.
• Authorize a Project: The project charter acts as proof of project authorization. Once the project sponsor signs the charter, the project manager can officially begin.
• Define Success Metrics: In addition to the project’s goals, the project charter helps to define the metrics that will be used to measure a project’s success.
• Mark the Beginning of Projects and Phases: A project charter marks the start of a project or of separate project phases. Many large projects create a new charter for each major phase of a project.
• Provide Visibility: The project charter allows everyone to quickly reference a project’s goals and the processes that will be used to achieve them.
• Reflect Real-Time Project Maturity: A project charter should evolve with a project. It should always reflect the current status of each element as it matures throughout the project’s lifecycle.
• Secure Executive Support: A project charter is a proof of concept for a project and can be used to attain executive support. A well-executed project charter gives an executive a quick but thorough overview of all major elements of a project.

Project Charter Roles and Responsibilities

A project charter helps establish a strategy and general project process. Typically, a project manager works with a sponsor to create the charter. The sponsor then reviews the charter and provides approval for the project. 

A project charter is the first point of reference for project information, so it can demonstrate how project resources will contribute to goals and support business objectives. It can also reinforce consistency in scheduling tasks and in creating project budgets by using templates and building upon processes that have been successful in the past. Establish a system of improving your templates and tools, and use your past project charters as a guide for future projects.

Who Writes the Project Charter?

Usually, a project manager works with the project’s sponsor to create the charter. After the sponsor proposes a project, the project manager drafts the charter. The charter acts as a roadmap to the project’s successful completion.

Writing a project charter is a critical step in project planning. To learn more about how to put together your own charter, read this guide to creating an effective project charter .

Who Signs the Project Charter?

A project sponsor must approve and sign the project charter before a project or phase begins. The sponsor will review and revise the charter, as well as ensure that all elements are in line with the organization’s goals.

The sponsor should continue to review any major changes to the project charter as they arise. The project managers should update the charter to reflect changes as they are made.

Benefits of a Project Charter

Project charters come with many benefits for a business, including easy access to project information, better project visibility, and increased buy-in from sponsors. You can ensure projects are delivered on time and under budget with a project charter.

A project charter provides several benefits, such as the following:

• Better Buy-In: A project charter helps project sponsors feel more secure in their approval of a project’s methods. Sponsors are more likely to support initiatives from project managers who can present their plans in an organized and consistent fashion.
• Better Documentation for Future Planning: Your project charter should become the reference point for all future project documents, especially your final project plan. A well-made charter acts as a solid outline for further project development.
• Clearer Approvals: The project charter serves as official authorization for the project manager to start a task. It gives them the written authority to undertake planning and spending to achieve the project’s ultimate goals.
• Easier File Sharing: Your project charter is a categorical project overview that fits onto a page or two, making it easy to share and for others to understand. “The project charter is beneficial primarily because all of the project's basic information is contained in a single document. As a result, it can both aid the team early in seeing the big picture, as well as individuals who join the project later,” explains Reid.
• Easier Internal Marketing: Use your project charter as a brochure to share your broad project details and help explain your project to anyone who is not directly involved.
• Increased Project Visibility: Creating and using project charters helps establish a culture of project visibility. Executives can check on project details at any time. The charter may also answer a manager’s questions before they have to take time from their day-to-day responsibilities. 
• More Effective Communication: Your charter is the first source of project information for all parties and acts as a focal point for communication. “Using your project charter as a planning tool and a source of truth helps save time and minimize difficulties caused by miscommunication,” says Reid.

Misconceptions About Project Charters

There are some misconceptions about project charters. Some managers believe that project charters are too formal or cannot change once the project begins. These misconceptions can prevent managers from seeing the benefits of a project charter.

These are the six most common misconceptions you may have about project charters:

• Misconception 1: Project Charters Are Optional. Your project charter is the base upon which you build your project and is therefore indispensable. Managers need project charters to organize project details, build out a project plan, and authorize the project to begin.
• Misconception 2: Project Charters Cannot Change. Your project charter is a living document. It can and should change to reflect the current reality of your project. Projects are not always perfectly linear, especially Agile projects, and your charter might not look exactly the same at the end of the project as it did at the beginning.
• Misconception 3: Project Charters Are Long and Formal. Your project charter should be thorough but concise, fitting on one or two pages. A project charter is most useful when it is easy to read and share.
• Misconception 4: Project Charters Are for Project Managers and Sponsors Only. A project charter should include input from everyone involved with the project. “I wish I knew not to write a charter and then have it approved by the sponsor in isolation,” says Campbell. “Today, I review the draft charter with my team. In doing this, my team takes ownership of the project and the associated tasks. Buy-in is critical and powerful.”
• Misconception 5: Project Charters Mitigate All Risks. Creating a project charter is a good way to identify and mitigate risks, but it cannot do everything. “A project charter will not shield you from errors resulting from misunderstanding the risks involved. You may still wind up with unsatisfactory results if you do not calculate the circumstance correctly,” says Reid. It is still critical to implement risk management practices into your processes, even while using project charters to help identify project risks.
• Misconception 6: Making a Project Charter Is All Guessing. Project managers should assemble their charters using real information from your past and current projects. There should be no guessing involved. Use your past budgets and schedules from similar projects to create projections that are as accurate as possible.

Pitfalls to Avoid with a Project Charter

A project charter must include accurate information in order to be useful. Avoid common pitfalls, such as budgeting errors, unclear language, and outdated information. This will keep your outline, objectives, and methods accurate and helpful. 

 Look out for these common pitfalls when making and using a project charter:

• Avoid Inflexible Budgets and Timelines: Your project charter should include budget and scheduling information that is as accurate a projection as possible. However, the budget and timeline should not be so rigid that you can’t change it as the project progresses. “The most common mistake people make with their project charters is not allowing space and time for the documentation of early assumptions. By not illuminating early assumptions, we risk estimation errors, significant conflict, and even the failure of the project,” explains Campbell.
• Avoid Missed Feedback: If you are new to creating project charters, use the expertise of your colleagues to help you. “Have an experienced project manager review your charter before reviewing it with your team. You may be surprised by the valuable feedback and insights,” suggests Campbell.
• Avoid Outdated Information: Update your charter as changes are made to processes and schedules. Your charter should always be up to date and reflect current project details.
• Avoid Resource Mismanagement: It is important to understand the resources you will need and the resources you have available before finalizing your project charter. “Putting your resources to good use through your project charter can be tough if you don't know exactly what you have,” says Reid.
• Avoid Unanswered Questions: Your project charter should include all of the common project charter elements and a preliminary plan for each. Your project charter is not complete until every section is filled out.
• Avoid Unclear Language: All elements of your project charter should be clear and unambiguous. Use simple language when creating your overview and scope statements. Use real dates and finalized numbers for schedules and budgets whenever possible. 
• Avoid Unchartered Projects: Unchartered projects are the first to be canceled when executives are looking to cut back. “Your charter appeals to executives by outlining the specific standards for meeting the stakeholders' needs, and it defines the project manager's authority. A project can be canceled at any time and for any reason without a project charter,” warns Reid.

Project Charter vs. Project Plan

A project plan is a more in-depth version of a project charter. They share many of the same elements. Your project plan should build upon your charter and use real dates and estimates for schedules and budgets.

If a project charter is an initial brainstorm for a project, the project plan is a collection of the actual steps you will take to achieve the project’s goals. Once the project sponsor has signed off on the project charter, the project manager should get to work on finalizing schedules, budgets, and team members in the concrete project plan.

Project Charter vs. Project Scope

The project scope is part of a project charter. In a charter, the scope statement should lay out what is in scope for the project. It should also include specific items that are out of the project’s scope. 

Scope statements are sometimes standalone documents that fall under the umbrella of project scope management . However, they should also be a part of every project charter for projects of all types and sizes, and in all industries. To learn how to create a scope statement, check out this collection of project scope templates .

Project Charter vs. Business Case

A business case describes why a project is good for your business. It also includes any potential project risks. A project charter might include a business case but is more focused on organizing and planning the project.

A business case outlines the return on investment (ROI), investment numbers, and resource costs, and is focused on monetary value and time spent. To learn more about business cases, read this comprehensive how-to guide with examples .

Project Charter vs. Program Charter

A program charter is another name for a project charter. It might also refer to a charter for a small group of related projects. Typically, this group of projects isn’t as broad as a portfolio.

Project Charter vs. Statement of Work

A statement of work is a contract written for clients that outlines the work to be completed and deliverables for a project. Teams use the project charter to begin planning their work.

A statement of work is a valuable document for any company that deals with clients or works together with outside contractors. To learn how to create one, read this guide to writing a statement of work .

Project Charter vs. Project Brief

A project brief is a simplified project charter. It should be a single page long, and anyone should be able to understand it at a glance. A project brief acts as a brochure to describe the most high-level project details.

How to Start Using Project Charters at Your Company

It can sometimes be difficult to make a big change within your organization. Use these tips to help ease the process of introducing project charters to your company:

• Use a Template: Begin by using a pre-built project charter template and adapting it to your needs. A template provides a quick and foolproof foundation to start organizing your project details.
• Get Your Sponsors on Board: Project sponsors will likely see the value of a project charter immediately. Once they are on board, it is easier to gain support from the wider organization.
• Establish a Process: Make project charters a requirement for project authorization. Before long, using project charters will be second nature.
• Reference and Share It: Use your project charter as the basis for your project kickoff meetings, and make it accessible for anyone to read at any time. Use it as a source of truth for project procedures and details.

Project Charter Starter Kit

Download Project Charter Starter Kit

We’ve created this project charter starter kit to help you create and build on your project charter. In this kit, we’ve included a project charter template, an overview and scope template, a stakeholder communication plan, and detailed project and budget templates.

All of these templates are fully customizable to suit the needs of projects of any size. Use these templates to organize your ideas, to create a new project charter, to build on the elements of an existing charter, or to start building out your ultimate project plan.

Project Overview and Scope Template

Download Project Overview and Scope Template Microsoft Excel | Microsoft Word | Google Docs 

Use this template to organize your overview and scope details while creating your project charter. This customizable template includes space for deliverables and project tasks, as well as an overview section and space to list specific out-of-scope items.

Risk Management Matrix Template

Download Risk Management Matrix Template Microsoft Excel | Microsoft Word | Adobe PDF | Smartsheet

This risk management matrix can help you expand on the risks outlined in your project charter so you can create a plan to manage them. Use the template to visualize an overview of risk ratings and likelihoods, and to analyze their potential impact before and after mitigation.

Project Stakeholder Communication Plan Template

Download Project Stakeholder Communication Plan Template Microsoft Excel | Microsoft Word | Adobe PDF

Use this project stakeholder communication plan template to outline a communication schedule and to expand on your project charter. This customizable chart contains stakeholder information, their preferred communication method and frequency, and the items they are most interested in hearing about.

Project Budget Template

Download Project Budget Template Microsoft Excel | Smartsheet

Your project charter should include basic budget information. Build on that information with this more detailed, dedicated project budget template. Use this template to project and track project costs related to each task, including labor and materials required.

Project Schedule Template

Download Project Schedule Template Microsoft Excel | Google Sheets | Smartsheet

This customizable project schedule template enables you to track deliverables and deadlines, and includes a helpful, color-coded Gantt chart. Use the template to expand on the schedule in your project charter, and add notes and project phase details as needed.

How to Pick the Right Tool for Planning and Upholding a Project Charter

Many software tools are available for planning and upholding a project charter, but the best ones allow you to organize and keep all elements in one place. The most useful tools allow you to build out, link, and edit and share each part of your project charter.

To learn more about project management software and tools, check out this overview of project management software .

Why Smartsheet Is the Best Choice for Managing Projects with Project Charters

From simple task management and project planning to complex resource and portfolio management, Smartsheet helps you improve collaboration and increase work velocity -- empowering you to get more done. 

The Smartsheet platform makes it easy to plan, capture, manage, and report on work from anywhere, helping your team be more effective and get more done. Report on key metrics and get real-time visibility into work as it happens with roll-up reports, dashboards, and automated workflows built to keep your team connected and informed.

When teams have clarity into the work getting done, there’s no telling how much more they can accomplish in the same amount of time. Try Smartsheet for free, today.

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How to Write a Project Charter: Template & Examples

Getting a new project off the ground involves a lot of documentation—from project requirements and scope documents to risk assessments and project plans .

As a project manager, you’re used to sifting through project paperwork. But it’s not always easy for your team and stakeholders to make sense of it all when they’ve got limited time to spend on the details.

That’s where a project charter comes in. 

A project charter acts as a reference guide for successful project delivery so you can get everyone up to speed and on board with the project more quickly.

Let’s take a closer look at what a project charter is, why it’s important, and how to create one for your projects.

What is a project charter, and why is it important?

A project charter is a document that details your project’s goals, benefits, constraints, risks, stakeholders, and even budgets. It may also be referred to as a project brief or project definition document.

The Project Management Institute (PMI) defines a project charter as “a document issued by the project initiator or sponsor that formally authorizes the existence of a project, and provides the project manager with the authority to apply organizational resources to project activities.”

The purpose of a project charter is to set clear project expectations so you can lead even the largest teams and complex projects to an on-time and under-budget delivery. A project charter also brings benefits like aligning stakeholders and teams to the project’s objectives and clarifying important details that could impact the project.

Project charter vs. project plan: What’s the difference?

Having multiple documents related to your project might sound overwhelming—and it can be! But, every key document plays an important role in project success.

So when should you use a project charter versus a project plan? The simple answer is you should always use both to manage your projects. But let’s take a quick look at the difference between a project charter and a project plan. 

Think of your project charter as the document that explains the what and why of your project, while your project plan outlines the how, when , and who . 

Remember, the purpose of the project charter is to detail your project in its entirety—but at a high level . We’re not talking about tasks and milestones here.

A project charter spells out the details needed to understand a project and its objectives, usually in Word, Excel, Google Docs, or PDF format. It’s delivered early in the project cycle to ensure everyone’s on the same page about goals and deliverables. 

A project plan, on the other hand, is a line-by-line action plan for leading a project to completion once all the details have been approved. It’s typically formatted as a gantt chart with task deadlines and milestones mapped out on a timeline so you can track progress along the way.

Lay a clear path to success with a visual plan that’s easy to understand, and keep everyone in sync with flexible workflows and team collaboration.

How to write a project charter

Ready to develop a project charter framework for your organization? 

To create a project charter for your next project, your first step should be to discuss the project with your team and stakeholders. This will enable you to gather the information needed to execute the project, while also setting expectations around what it will take to get the job done. 

Be sure this initial discussion covers the following project details:

• Constraints (including deadlines and budgets)

Stakeholders

• Any other details that will help you truly define your project

Gaining this level of insight and understanding from your team and stakeholders early on will go a long way in helping you maintain alignment throughout the project.

Just like everything else in project management, there’s no single way to write a project charter. The most important thing to remember when creating your charter is to make it easy to read and accessible to anyone involved in your project.

Remember, the charter should be a high-level review of the project, not a turn-by-turn accounting of what will happen. Feel free to use short descriptions—or even bullet points—to help you keep it brief.

Project charter elements & examples

A lot of information goes into a project charter, and it’s up to you to determine which components make sense for the teams and organizations you work with. Here’s a list of key elements you may want to include when writing your project charter. 

Business case

This is a goals-related statement that explains the purpose of your project and why you’re taking it on. The business case not only helps guide project decisions, but also ensures everyone involved in the project is aligned on its purpose. That way you can all hold each other accountable to sticking to that goal.

We wrote this business case statement example for a website redesign project:

The Gantt Museum website (ganttmuseum.org) must be redesigned to help us meet our new, aggressive ticket sales goals and to provide a new online shop experience for visitors who cannot visit in person.

While the business case may state your overarching goals, you might find you need to get more specific about practical goals for your project. 

Writing SMART goals for your project’s initiatives can make it easier to stay on task. This example gives you an idea of how you could work these into your project charter goals:

• Provide an updated look and feel to align with new branding.
• Showcase relevant visitor information in an easy-to-access way.
• Include an online ticketing system to allow visitors to buy tickets around the clock from any location. This new system must contribute an additional 20% in ticketing revenue for the Museum.
• Leverage an off-the-shelf e-commerce platform to be managed by the Museum shop personnel. This new system must contribute an additional 35% in shop revenue for the Museum.

This section may be optional for you, depending on where you work and the type of project you’re running. But if you deal with project budgets or clients, be crystal-clear about the project’s cost and how it’s broken down. Keeping this information transparent will help guide conversations if and when your budget approaches its max.

In the project charter example below, we’ve broken the budget down by project phase: ‍

$500,000, broken down by phase:

• Research: $50,000
• Design: $200,000
• Development: $250,000

Scope and deliverables

Be sure to define the thing you’ll deliver and the scope associated with it so you can set clear expectations about what will and won’t be included—or executed on—in your project.

Here’s an example of how you might outline a project's scope and deliverables in your project charter:

We’re redesigning and building the following templates:

• Ticketing page
• Shop home page
• Shop item description page

Deliverables include:

• Wireframes for each page (to be revised up to 3 times)
• Page designs (to be revised up to 3 times)
• Coded templates

Resources needed

In this section, you’ll list any people, funds, time, materials, equipment, or additional resources you or the team will need to complete the project. Here’s a sample of resources a website design project might require:

• Branding work is being done by our partner agency. All files will be required before design kickoff.
• All photography for the site will be FPO in design. New photography may be required.
• Museum will purchase licenses for fonts.
• Museum will need to purchase CMS licenses for staff.
• Museum will need to hire a CMS trainer and content entry staff.

Don’t worry about fitting a whole plan into your project charter. But it’s a good idea to list out key project milestones with dates and reference your plan in TeamGantt by sharing a view-only link to your gantt chart .

For example, you might structure your project charter milestone schedule like this:

This project is estimated to take 9 months with the following milestone schedule: 

• October 31, 2021 - Kickoff
• December 15, 2021 - Research Complete
• February 28, 2022 - Design Complete
• April 15, 2022 - Development & CMS Training Complete
• May 21, 2022 - Content Entry Complete
• June 30, 2022 - QA Testing Complete, Launch

Risks and issues

Every project carries risk, whether it’s the threat of a critical stakeholder leaving the project, a much-needed asset missing a deadline, or even a hurricane taking out your internet and bringing work to a halt. 

Documenting things that could go wrong in your project charter—like we’ve done in the example below—makes everyone aware of risks from the outset:

• The stakeholder team has never been part of a website redesign.
• Most of the content will need to be rewritten, and the effort is unknown.
• The funding for the e-commerce platform has not yet been approved.

Dependencies

Sometimes one piece of a project can’t start until a previous step is complete. And when a partner’s responsible for that step, you have no control. If that’s the case for your project, you’ve got a rolling list of risks on your hands. 

Make note of any major dependencies in your project charter so you can spotlight potential scheduling issues. Here’s how that might look:

• If the branding project is not approved on time, it will delay our project.
• The selection of the Content Management System (CMS) and subsequent licensing is required before development begins.

If you’re working on a project with a team of folks who are responsible for approving your project, you want to be sure they’re present and accounted for. Listing them here will help! 

While you’re at it, you might want to define their roles or at least mention who the “lead” or main approver will be.

This sample project charter keeps the stakeholder list simple:

• Project sponsor & key point of contact: Sandy Sanderson, EVP, Marketing
• Don Limon, Director of IT
• Donna Sumner, Director of Ticketing
• Bob Burg, Manager, Museum Shop
• Danielle Della, Senior Writer

Download a free project charter template

Making a project charter may feel like a daunting task, but it really doesn’t have to be. Using a template can help you jump right in and keep things brief so your project charter is quick to create and scan.

Download our free project charter template (Word) and use the examples above to write a project charter of your own. Feel free to adapt this template to your style or organization’s needs.

Remember, a well-written project charter can help you answer and document big project questions and quickly align your team and stakeholders. It’s a small document with a huge purpose, so your best approach is to develop a simple project charter that’s easy to read and useful for everyone involved.

Go from project charter to plan with TeamGantt

Once you’ve got a solid project charter in hand, it’s time to craft your plan! With TeamGantt, you can create an interactive project plan without the tedium.

You’ll have all the features you need to ensure projects finish on time and on budget, including:

• Drag and drop simplicity
• Easy team collaboration
• Gantt chart, list, calendar, and board views
• Team availability & workload management
• Planned timeline vs. actual timeline
• Dedicated mobile app

And it all comes with a simple and intuitive interface that’s easy for anyone to use.

Try TeamGantt for free today!

Project Charter vs. Project Plan: 4 Clear Differences

Alessandro Maggio

• July 22, 2021

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Project Charter vs. Project Plan, what are the differences? In project management, we often encounter these two documents, Project Charter vs. Project Plan, or project management plan. However, difference between the two is not always clear. Today, we will explain it in plain English.

Introduction to Project Charter vs. Project Plan

Before diving into the difference, it is worth spending a few words to discuss what a project charter is, and then what a project plan is.

What is a Project Charter?

A project charter is a brief document that defines the goals and scope of the project at high level. It is the first document you create after the business case is approved. It does not go into technical details but gives a summary description of what needs to be done. Anyone can understand the content of a project charter, and it is particularly useful because it generally confers authority to the project manager.

Conferring authority to the project manager means that the document says: “this is what needs to be done, now go out there, find a way to do it, and do it”.

At an abstract level it might be all clear, but what does this mean in practice? In practice, a project charter may say something like:

 “We need to build a new factory, the factory must be located in Greenville (South Carolina), and it must be able to produce 10 tons of cereal boxes per day at max capacity. This project will have a $40m budget”

Of course, a real project charter will be more detailed and contain about 10 pages, but for the sake of this example just a sentence is fine. This single sentence, together with the definition of the budget at the end basically tells us all our expectations.

We need to create a factory for our cereal company, and it must be in Greenville. We need to structure it in such a way that it will be able to produce these 10 tons of cereal boxes per day if used at 100% of the capacity. If we know that one production line can produce 1 ton per day, then it means it must host 10 lines, so we need to find a building that is large enough or build one.

In this brief example many things are left to figure out. Should we buy the property, or should we rent it? Should we buy the equipment, or should lease it? If we are renting, how long we must secure the rent? In a real case, the project charter will pose more constraints than this.

What is a Project Plan?

Most people use the words project plan and project management plan interchangeably. However, they are different things, and you should understand both.

A project plan is not a term defined in the PMBOK, but even if it is not a formal term of project management, it is widely used. It indicates, guess what, the plan of the project. That is, the set of activities that must be completed, how long will they last, and what are the dependencies between activities. The best practice is to represent it with a Gantt diagram.

Instead, the project management plan tells us how to do project management stuff. It is like a plan for the planner or, more correctly, a guideline for the planner. This document is officially recognized from the Project Management Institute . Even if for some small projects it may be overkill, for large projects it is especially important.

It defines things such as how to manage risks, how and when to involve stakeholders, what strategies to manage the schedule are allowed (waterfall planning? Agile planning?) and so on. Depending on the circumstances, the project manager may create it from scratch, or use a standard project management plan that the organization always uses.

More realistically, the project manager will take a standard project management plan from the organization and adapt it to better suit the project. For example, if the company tends to work with agile methodology, constructing a new factory may be better managed with waterfall planning (sequential planning).

Now that all these documents are clear, we can focus on comparing project charter vs. project plan.

Project Charter vs. Project Plan

In this section, we will see all the key difference of project charter vs. project plan, uncovering them one by one. No difference is more important than the others, we just selected our order arbitrarily.

1. When they are prepared

Project charter is written right before the project has started; project plan is written right after the project has started.

The project charter authorizes the project, so it must be prepared before the project can start. Before the project start, we do not know if it is actually going to start at all, so there is no need to define how to manage a project that does not exist. Of course, there is not even the need to plan for actual activities.

2. Who prepares them

The sponsor writes the project charter, the project manager writes the project plan.

Since the project is yet to start when we are creating the project charter, there is no project manager just yet. The person who wants the project to be completed (the sponsor) has to prepare the project charter to outline the requirements and the high-level scope. Sometimes, the sponsor already knows who would be the project manager that he wants to appoint to the project, if it is to start. In that case, the project manager may work together with the sponsor on the project charter.

Instead, the project plan is created after the charter and exclusively by the project manager. It is much of the work of the project manager to define how to go about planning, and then plan with a Gantt diagram.

As we briefly mentioned before discussing project charter vs. project plan, the project management plan may be a predefined document coming from the organization Project Management Office as well.

3. Their mission

The project charter aims to authorize the project, the project plans aim to guide the implementation of the project.

Our next item in this project charter vs. project plan comparison relates to the mission of each document. As we know, they are two different documents that serve two clear different purposes.

The project charter authorizes the project, and with that it also authorizes what needs to be done at high level and sets a budget. Instead, the project plan does not need to authorize anything. It only provides guidance on how to executes the activities that have been authorized.

4. Intended Audience

The project charter is for stakeholders and project manager, the project plan is for the project team.

Finally, we can turn to the last item of our project charter vs. project plan comparison: the intended audience. Since the project charter and the project plan are two different documents, it is no surprise that they are meant for different people.

The project charter authorizes the project to be done. So, it is for the project manager to know he is authorized to run the project, and also for all other stakeholders to recognize his authority and allow him to run the work. Instead, the project plan does not talk about authorization: it assumes authorization already exists. Instead, the project plan clarifies to the project team (people actually doing the work) what are the things that are to be done, and how to go about them.

Project Charter vs. Project Plan in Summary

In this brief comparison we saw what it means to compare project charter vs. project plan. In short, the project charter defines what needs to be done and gives the project manager the authority to do so. Instead, the project plan is created afterwards, and defines how activities will actually be executed.

Knowing the difference between project charter and project plan is crucial for any project manager, or really any member of a project team. With this knowledge, you can easily navigate complex projects and understand what is going on behind the curtains. Yet, the road to be a good project manager does not stop here. A good point to continue your journey is to learn about soft powers such as referent power .

2021-07-22T16:30:00+00:00

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How to write a winning project charter

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What is a project charter in project management?

A project charter is a document that formalizes a project and gives the project manager authority over the project. Project charters act as a contract, holding everyone accountable for their roles and responsibilities.

If you work in operations or project management, you work tirelessly to establish the most efficient ways to accomplish tasks and maintain quality. However, before you can institute a new process or make significant changes to a current process, you need to get approval from stakeholders and get everyone else on board with your vision. You need a project charter.

As you put together your project charter contents, you’ll likely have questions, particularly if your company doesn’t offer a standard form or template to fill out. Find the answers to the most common questions below, and learn how to create a project charter that wows your stakeholders.

Steps to writing a project charter

• Choose a project name
• Identify the purpose, objective (goal), and project specification
• Set a budget
• Define deliverables
• Assess scope and risks
• Create a timeframe or milestones
• List key stakeholders
• Layout team roles and responsibilities  

What is a project charter?

A project management charter states the scope and objectives of a project, as well as the people who will participate in it. You may also hear it called a project definition report or project statement. Project managers should use this document to:

• Authorize the project.
• Serve as a baseline throughout the project and provide shared understanding.
• Act as a contract, holding all participants accountable for their roles and responsibilities.

Your charter is the unquestionable source for details related to the project. It usually remains short but may link to more detailed documents.

Project charter vs. project plan

A project charter is a concise, high-level document outlining the basic goals and scope of the project. It serves as the foundation for your project plan, which goes into more detail on how to execute the objectives laid out in the charter. In other words, the project charter guides the project plan and execution. 

How to write a project charter

If your organization doesn’t have a project charter template, you are free to include the information you find most beneficial. The more thorough your project charter, the more convincing it will be and the better a reference it’ll become. Every charter should include some variation on the following categories.

Project name

Name your project, and make the title as specific as you can. A project name like “HR Initiative” or “Software Update” doesn’t describe why you would like to implement this project and isn’t easy to differentiate from other project charters. Titles like “New Company Wellness Program” or “Software Update to Improve UX for Mobile Payments” define your goal right away. 

Purpose, objective (goal), and project specification

These sections should present your business case and explain: 

• Why the project was proposed, what pain points it will alleviate, and what impact it will have on the organization
• What the project will entail
• What you plan to accomplish with this project and how it fits in with larger organizational goals
• What needs to happen so it works and how it needs to perform

If you haven’t already done so earlier in the project charter, explain how much the project will cost and where the money will come from. This section could also list any additional resources needed to execute your plan.

Deliverables

What product, service, or result will you deliver when you finish the project? Since project charters are more flexible, you could include information in this section about your measurements for success in this project. How will you determine whether you have accomplished your goal? Which metrics will you use?

Scope and risks

Get prepared by implementing a risk assessment process.

Timeframe or milestones

Show when you plan to accomplish each stage of the project. The anticipated start and end dates are the most important pieces of information in this section, but a full timeline will give more context.

Learn more on how to incorporate milestones in your project management strategy.

Learn more on how to incorporate milestones in your project management strategy. Read now

Key stakeholders

While project charters are internal documents, you’ll likely be working with and report to external stakeholders, such as clients but also other project managers or teams in your company. Completing a stakeholder analysis and listing these individuals in the project charter keeps you and your team accountable to the people affected by the project.

Team roles and responsibilities

List the people involved in this project and their roles. Many project charter examples simply list the individual’s title or team, but if that information doesn’t define their responsibilities enough, you could reference a more specific document with the breakdown of responsibilities.

Ways to develop a project charter

Now that you understand what goes into a project charter, here is some additional direction to create a project charter with little hassle and with increased power to persuade and inform stakeholders. 

Make it visual

Your stakeholders will read your document at least once, even if it merely contains a wall of text. However, images or design elements will make your defense stand out and make it easier for people to refer back to key parts of the documents later on.

Separate the different sections of your charter with boxes or accentuated headers for better readability. Then, see which parts of your document would be easier to scan or digest as a visual. For many project charters, the milestones section makes the most sense to convert.

Create a timeline or a Gantt chart in Lucidchart to show the milestones of your project. Take a look at our Gantt chart alternatives as well.

As mentioned previously, your project charter could also reference other documents. If it seems inappropriate to include your process flow or a breakdown of team responsibilities within the charter, build these diagrams separately and add a note or link.

Make it collaborative

You might need to print out your charter to present later, but while you put it together, keep this document in Google Drive or another program where multiple people can view and edit it. Then the teams who will see the largest impact from this project can put in their two cents before you present to other stakeholders.

Whatever format you choose, make sure to share your project charter with everyone who plays a significant role once you finalize and start your project.

When you add visuals using Lucidchart, you can take advantage of our integrations with Google, Atlassian, and Office 365. Download an add-on, and insert your diagrams seamlessly into your documents.

If you submit project charters frequently, consider these tips and put together your own project charter template!

Sign up for Lucidchart and start your project charter now.

About Lucidchart

Lucidchart, a cloud-based intelligent diagramming application, is a core component of Lucid Software's Visual Collaboration Suite. This intuitive, cloud-based solution empowers teams to collaborate in real-time to build flowcharts, mockups, UML diagrams, customer journey maps, and more. Lucidchart propels teams forward to build the future faster. Lucid is proud to serve top businesses around the world, including customers such as Google, GE, and NBC Universal, and 99% of the Fortune 500. Lucid partners with industry leaders, including Google, Atlassian, and Microsoft. Since its founding, Lucid has received numerous awards for its products, business, and workplace culture. For more information, visit lucidchart.com.

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What Is A Project Charter? Everything You Need To Know

Updated: May 29, 2024, 9:49pm

Table of Contents

What is a project charter, benefits of a project charter, how to create a project charter, tips for writing a project charter, bottom line, frequently asked questions (faqs).

In a perfect world, every project would go as planned. The reality, however, is that 70% of all projects fail. That’s where a project charter comes in. Put simply, a project charter is a project planning document that sells a project to sponsors. By creating one, you can set your project up for success. Keep reading to learn more about what a project charter is and how it can support your business goals.

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A project charter is a formal document that authorizes the project manager to begin the project. It officially states that they can work with their team to utilize company resources, such as people, technology and finances, to complete the project, from start to finish.

With a project charter, you can ensure that everyone involved has a clear understanding of the project’s scope, objectives and measures of success right off the bat. The document must be signed by a sponsor or an authoritative individual who has access to the funding, such as a member of the senior management team, community leader or CEO.

A well-written project charter can offer these benefits.

• Determines Value: With a project charter, you can figure out if a project is even worth pursuing in the first place.
• Saves Time: A project charter can help you reduce the time you spend on negotiating and troubleshooting your project.
• Clarifies the Budget: Since a project charter includes a budget, it may explain whether or not it’s financially feasible.
• Boosts Team Morale: When a project has a clear direction through a project charter, team members are more likely to get excited and motivated to get started.
• Offers Clear Guidelines: The metrics, timelines and requirements included in a project charter can help guide your team and avoid confusion or uncertainty.
• Doubles as a Marketing Document: If you’re trying to seek outside funding, for example, a project charter may promote your project and justify the investment.

If you have a project in mind, follow these steps to create a project charter.

• Define the General Information: In the first section, you’ll reveal basic details about your project. These may include its name, description, sponsor, project manager, key stakeholders and team members.
• Outline the Project Team: Next, list all of the stakeholders and team members who will be involved in the project. Explain each individual’s roles and responsibilities.
• Identify Goals and Objectives: While project goals are the high-level benefits that the project is designed to generate, project objectives are the milestones or steps that will be necessary to complete them.
• Present a Business Case: This is when you “sell” your project. Your business case should show how the business will benefit from the project and the potential return on investment.
• Describe the Scope: The scope should include key deliverables and milestones. You might also want to write a scope statement that explains the project scope in greater detail.
• Create a Timeline: While you may not have a specific timeline, you should show an estimated schedule. The schedule can give everyone an idea of the big picture.
• Define a Budget: When you build a project budget, include the estimated costs for every task you’ve defined. Add them up so you have a ballpark figure to share.
• Highlight Risks: Every project will come with some risks. Think about the risks of your project and detail how you’ll resolve them and who will be responsible for them.
• Note Success Criteria: Lastly, explain what will need to be done to consider the project successful. You might want to include key performance indicators, or KPIs, in this section.

As you create a project charter, be sure to keep these tips in mind.

• Ask for Help: You don’t have to come up with all of the information for your charter on your own. In fact, you should meet with some team members to pick their brains about the project and its goals. The insights from others can only strengthen your document.
• Keep It Concise: Sponsors simply don’t have the time or desire to read countless pages. That’s why you should keep your charter high-level and avoid unnecessary details. Ideally, each section would be a few sentences.
• Create a Template: Once you finalize a strong project charter, save it so that you can use it as a template for future projects. A template will speed up the process and ensure you cover all of your bases.

It takes time and effort to create a project charter, but if you pair it with the right project management process, you can increase your chances of success. This holds true whether you’re a startup or have been in business for years, regardless of your industry.

Who writes the project charter?

The project charter is usually written by the project manager. This is because it’s often impractical for the sponsor, who may be someone in senior management or even a CEO, to do so.

What is the difference between a project charter and statement of work?

While a statement of work is an overview document, a project charter is a formal document based on the statement of work. The statement of work addresses the need for the project as well as its scope and the project charter answers the “why, who, what, when, where and how” of the project.

What are the benefits of a project charter?

With a project charter, you can determine the value and budget of a project before pursuing it, along with saving time and avoiding confusion. You can also use it to promote your project to potential investors.

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• What is a project charter and why do I need one?

A project charter is a crucial document outlining a project's objectives, scope, and stakeholders, essential for guiding and aligning team efforts.

A project charter is a short document that outlines the objectives, scope, and stakeholders of a project. It serves as a sort of contract between the project sponsor and the project manager, giving a top-level overview of the expectations and giving the project manager the green light to mobilize resources to achieve the right outcomes.

Agencies use project charters to provide all team members with a clear understanding of the project. This includes defining roles and responsibilities, setting expectations, outlining project deliverables , and identifying potential risks and challenges. 

Ultimately, the purpose of your project charter is to document the goals, objectives, and business case for the work.

This guide will explore project charters and why they’re so beneficial for agencies and businesses that perform client work.

Table of Contents

Project charters vs. project plans: What are the differences?

Key components of a project charter, what is the purpose of a project charter in project management, why is a project charter important, how do you create a project charter, project charter examples, get started with teamwork.com.

A project charter is a "big picture" document and defines the overall scope, objectives, and stakeholders involved in the project. It acts as a guidepost for decision-making throughout the project.

In contrast, a project plan is more detailed and breaks down the project into smaller, manageable tasks. It includes timelines, budgets, resource allocation plans, deliverables, and risk management strategies. 

While a project charter provides direction and alignment, a project plan outlines the specific steps and tasks needed to achieve the project's objectives.

Like any other project documentation, a project charter follows a specific structure and includes critical components to ensure its effectiveness, including:

1. Overview

The overview section is essentially your project's executive summary. It provides a high-level synopsis of the project's purpose, the problem it aims to solve, or the opportunity it seeks to leverage. Basically, it answers the "why" of the project and includes:

Project's name

Project sponsor

Project manager

A brief description of the project's objectives and deliverables

The overview serves as a quick reference point, giving readers an immediate understanding of the project's scope and intended outcome.

Responsibility

The Project Manager is responsible for developing the overview section of the project charter. They work closely with the Project Sponsor to capture all key information accurately.

The scope outlines what falls within the project's boundaries (in scope) and what doesn’t (out of scope) by defining the project's objectives, key deliverables, success criteria, and expected outcomes. 

The project team uses it as a reference point to stay on track and prevent scope creep (when the project's objectives expand beyond the boundaries initially agreed upon).

Determining the scope falls under the responsibility of the Project Sponsor. They provide the high-level direction and strategic goals that guide the project's objectives and deliverables.

3. Schedule

The project schedule component outlines the project's timeline and milestones. It identifies key dates (kick-off, completion, and review dates), deadlines, and dependencies to ensure the project stays on track and meets its objectives within the desired timeframe. This section aligns with the project plan and helps gauge progress throughout the project's lifecycle.

Creating the schedule is generally the responsibility of the Project Manager and the Project team. They work together to create a realistic and achievable timeline that aligns with the project's objectives and constraints.

Project risks are potential events or situations that could negatively impact the project's success. These can include anything from natural disasters, technical difficulties, and budget constraints to human error and miscommunications. The risks section should include contingency plans and escalation procedures if a risk becomes reality.

The Project Manager and Project Sponsor are responsible for identifying potential risks and their impact on the project's success. They then create a risk management strategy and contingency plans to mitigate these risks.

The budget section outlines the financial resources needed to ensure a successful project. It includes a breakdown of all costs associated with the project, like materials, labor, and equipment. This section also covers how the project will be financed (e.g., through funding, internal resources, or external donations) and the potential return on investment (ROI).

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The Project Sponsor develops the budget section of the project charter with input from the Project Manager. They review the project’s financial requirements and ensure that the allocated budget is realistic and aligns with its objectives. 

6. Stakeholders

Stakeholders refer to individuals, groups, or organizations that have a vested interest in the project's success. These can include project team members, clients, sponsors, and other key stakeholders such as regulatory bodies or boards of directors. 

The stakeholders section identifies all individuals or groups involved in the project, their roles and responsibilities, and how they will be involved throughout the project's lifecycle.

The Project Manager identifies all the project stakeholders and their roles based on their involvement in the project. They also develop a communication plan to keep stakeholders informed and engaged throughout the project.

A project charter serves three main functions:

Define the goals , objectives, and basic purpose of the work (all of which will ultimately feed into your project plan).

Create a shared understanding of the project’s goals, objectives, and resourcing requirements before you start scoping these out further and in more depth.

Present all of the above to the project stakeholders in order to get buy-in, investment, and authorization to go ahead.

But it’s not just used in the initiation phase: Your project charter is something you can return to throughout the lifecycle of your project to make sure your work is aligning with the key goals and objectives you set out to accomplish in agreement with the project sponsor and/or key stakeholders.

Beyond its three main functions, project charters have a few other major benefits that agencies can benefit from:

Makes the project’s purpose crystal clear

Because a project charter explicitly lays out the business case for the project, it means that everyone knows how the project contributes to the company’s big-picture strategic goals. It ensures that your project isn’t just ticking arbitrary boxes, but is actually doing something that impacts the business’s overall objectives.

Identifies stakeholders

The project charter plays a huge role in formulating your project management plan overall, but one of the areas where it’s especially useful is in helping you to identify key project stakeholders early on.

As soon as you complete your project charter, you can start to do your stakeholder analysis . This means you can start to involve key stakeholders in tandem with creating your project plan.

Bestows authority to the project manager

Okay, okay, “bestowing” anything might sound a little medieval. But whether you bestow, bequeath, endow, or grant it, your project charter officially gives your project manager authority over the project. This means that they have the power to plan and control the project, and it establishes their role to the rest of the project team and stakeholders.

Acts as your North Star

We alluded to this already, but it’s worth repeating: While your project plan is great for seeing if you’re on track with tasks and timelines, sometimes, all those minute details can be more of a distraction.

On the other hand, your project charter is your project's absolute essence. So, if you’re ever unsure whether something is steering you in the right direction or taking you off track, your project charter helps you and your team to cut through the noise and reevaluate whether the work you’re doing aligns with your ultimate objectives.

Now, let's learn how to create a project charter. Regardless of which elements you decide to include or exclude from the above list, here are some general tips to remember as you write it.

Get familiar with how your organization does it

Make the most of any existing organizational process assets at your disposal. Are there previous project charter examples you can draw on? Does your department have a project charter template?

Examples and templates can really help you get a sense of how things are done (and what’s important to your organization) so you can follow suit and start off on the right foot.

Write it in basic, easy-to-understand language

When you’re writing your project charter and making a case for the importance of your project , it can be tempting to use fancy words and complicated terminology to make things sound more impressive. 

But really, the simpler the language, the better — especially when it comes to your project charter.

Brush off the fluff. Cut the wild claims that don’t really mean anything or apply to your project. (“This project will increase synergy and allow us to leverage it for maximum impact.” …Sorry, what ?) Say it without jargon so anyone can read your project charter, understand its aim, and know why it matters. 

This has the added benefit of removing ambiguity and leaving no room for interpretation, which is especially important in project management where good, clear communication is paramount.

It may be harder than it seems, but it forces you to distill what you’re actually trying to do down to its purest — and most powerful — form.

Keep your project plan close, and your project charter closer

For your project charter to really work, it can’t just be shoved in a metaphorical drawer. You need to keep it somewhere central where you, your project sponsors, and your project team can all refer to it when needed.

That’s where a content collaboration workspace like Teamwork Spaces comes in handy. It allows you to keep your important documents — like your project charter — in a shared, centralized workspace so everyone knows where to find the information they need.

You can also use features and formatting such as info panels, image galleries, and status chips to make your documentation more engaging and mark the critical ones as Required Reading so you can be sure your stakeholders never miss an important update.

And for your project charter, the integration between Teamwork Spaces and Teamwork.com is especially useful, allowing you to link your core project documentation in Teamwork Spaces with your day-to-day project plan in Teamwork.com.

( Learn more about using Teamwork Spaces for the ideation and initiation phase in our ebook! )

If you’re still unsure of what a project charter should look like, or if you want to double-check that your own project charter is on the right track, here are a few examples to help you get started.

Example 1: Social media campaign project charter for a marketing agency

Project title: Boosting Brand Engagement Through Social Media

Project purpose: To increase brand engagement and customer interaction on social media platforms for our client, XYZ Corp, over a six-month period.

Project objectives:

Grow the client's social media following by 30%.

Increase average post-engagement rates by 40%.

Develop and launch two viral marketing campaigns.

Strengthen brand recognition and customer loyalty.

Content creation and curation for platforms such as Facebook, Instagram, and Twitter

Regular analytics and performance reporting

Audience engagement strategies

Influencer partnerships

Stakeholders:

Marketing agency team (social media strategists, content creators, account managers)

XYZ Corp marketing team

Selected social media influencers

Target audience on social media platforms

Budget: $50,000

Timeline: January 1, 2024 - June 30, 2024

Success metrics:

Follower count increase

Engagement rate improvement

Viral campaign reach and impact

Example 2: Product launch event project charter for a marketing agency

Project title: XYZ Product Launch Gala

Project purpose: To organize and execute a high-impact product launch event for XYZ Corp's new product line, attracting industry influencers and media coverage.

Successfully host an event with 200+ attendees.

Generate buzz and media coverage.

Establish XYZ Corp's product as a leader in its category.

Venue selection and setup

Guest list management, including industry influencers and media

Branding and promotional material creation

Coordination of presentations and entertainment

Marketing agency event planning team

XYZ Corp marketing and executive teams

Event attendees (industry leaders, influencers, press)

Budget: $100,000

Timeline: Planning starts on March 1, 2024, with the event ending June 15, 2024.

Attendance numbers

Media coverage quality and quantity

Post-event brand recognition and product interest    

A good project charter can set the stage for your whole project, so take the time to get it right. And once you’ve done that? It’s time to turn it into a project management plan that means business.

Teamwork.com is a comprehensive project management software that can help you with every step of your workflow, from ideation and initiation to execution and delivery. With features like task management, resource management, and time tracking, Teamwork.com can help you create a project charter document that is detailed, organized, and accessible for all stakeholders. 

Don't hesitate—let Teamwork.com be your go-to solution for successful project management. Start your free trial today !

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Home » Project Management » What is a Project Charter? Templates & Examples

What is a Project Charter? Templates & Examples

Supriya Bajaj

Senior Writer

In project management, the project charters serve as a critical document that outlines the project objectives, scope, and key stakeholders. It offers a road plan that directs the project from start to finish, guaranteeing that every team member is in agreement with the goals of the undertaking. In project management, a project charter is essential because it establishes the groundwork for a successful conclusion.

This comprehensive guide will take you through the project charter definition, and what does a project charter includes,  its importance, and provide templates and examples to help you create an effective charter.

A project charter should clearly define the project's purpose, scope, and key objectives within 40-50 words. Focus on capturing the essence of the project, including the expected outcomes, project stakeholders involved, and high-level deliverables. Make sure it provides a solid framework for project planning and decision-making and is in line with the goals of the company.

What is a Project Charter?

A formal document that authorizes the start of a project is called a project charter. It provides a summary of the project’s objectives, scope, and key stakeholders. Acting as a guide throughout the project’s lifecycle helps keep the team aligned with the final goals. It typically includes the project’s purpose, objectives, key stakeholders, and high-level requirements. Essentially, the project charter is the blueprint for the project, guiding the team in decision-making and resource allocation.

What is a Project Charter In Project Management?

A project charter is crucial for granting authority to the project manager and setting a clear direction for the project. It is the document that formally kicks off the project, detailing the project’s purpose and aligning the team with the organizational goals . 

The project management charter guarantees that the goals, parameters, and deliverables of the project are understood by all parties involved. It also serves as a tool for communicating the project’s value to upper management and securing necessary resources.

Why a Project Charter Matters in Project Management?

The project charter is a cornerstone in project management for several reasons. It not only authorizes the project but also sets the stage for the project’s success by clearly defining the scope, objectives, and stakeholders. Below are the essential reasons why a project charter is indispensable in project management:

1. Defining Project Goals and Boundaries

Clearly defining the project’s objectives and parameters is one of its main functions. This entails defining the goals of the project as well as what falls outside of its purview. The project charter assists in preventing scope creep , which is the inclusion of new tasks and objectives without the necessary authorization. It also ensures that everyone involved knows exactly what the project is aiming for, reducing the risk of misaligned expectations and keeping the project focused on its main objectives.

2. Identifying Key Stakeholders and Their Roles

The project charter is crucial in identifying the key stakeholders and clarifying their roles. People with a stake in the project are known as stakeholders, and they can include top management, clients, and team members. The project charter clearly defines each person’s responsibilities, preventing confusion and ensuring everyone understands their roles. This clarity fosters better communication and collaboration, which are key to the project’s success.

3. Outlining the Project Timeline and Milestones

Another key function of the project charter is to define the project’s timeline, highlighting important milestones. These benchmarks signify crucial junctures in the undertaking, signifying noteworthy accomplishments such as the conclusion of the main stages. By establishing these milestones early on, the project charter helps the project team members track progress and stay on the project schedule. This guarantees that projects are completed on time and in an orderly fashion.

4. Identifying and Managing Risks

Risk management is a critical aspect of any project, and the project charter plays a key role in this. The project charter lists possible hazards that could affect the project and provides management plans for those risks. By addressing risks early, the project team can develop contingency plans to deal with unexpected issues, minimizing their impact on the project. Maintaining the project’s schedule and preventing expensive delays depend on this proactive approach to risk management.

5. Providing a Budget Overview and Financial Planning

The project charter includes a high-level overview of the project’s budget, which is essential for financial planning. This section of the charter ensures that the project has the necessary resources to succeed and that funds are allocated appropriately. The project charter helps avoid overpaying and guarantees that the project stays within its financial constraints by establishing a defined budget upfront.

6. Highlighting Project Benefits and Value

One of the key elements of a project charter is highlighting the benefits and value the project will deliver. This is essential to defend the project to stakeholders and ensure that it aligns with the organization’s strategic goals.  By clearly outlining the expected outcomes, the project charter helps stakeholders understand the value of the project and why it is worth pursuing.

7. Establishing Criteria for Measuring Project Success

Finally, the project charter sets out the criteria for measuring the success of the project. This might include specific performance metrics, deadlines, or budget targets. By establishing these criteria from the start, the project charter ensures that the project’s outcomes can be evaluated objectively. This helps in determining whether the project has met its objectives and provides valuable insights for future projects.

Project Charter Vs. Project Plan: Key Difference

Although they are both essential project management documents , the project plan and the project charter have different functions. Below are the key differences between the Project Charter and Project Plan.

Project Charter Template You Can Use

A project charter template is a valuable tool for project managers, as it provides a standardized format for capturing all the essential elements of a project charter. The template generally includes sections for the project’s purpose, objectives, scope, stakeholders, timeline, budget, and risks. Using a project charter template helps project managers ensure all key details are covered and presented in a clear, organized way.

Below are some Sample Project Charter Template –

Project Name: [Project Title]

Project Sponsor: [Sponsor Name]

Project Manager: [Manager Name]

Start Date: [Start Date]

End Date: [End Date]

To [describe the primary goal or outcome of the project in one sentence].

This project will [briefly describe the scope and key deliverables].

Key Stakeholders:

[List of major stakeholders involved].

Product Owner: [Owner Name]

Scrum Master: [Master Name]

Team: [Team Members]

Deliver [briefly describe the product or service to be created] to achieve [main objective].

Focus on [key features or areas of work], ensuring alignment with [business goals or customer needs].

[High-level timeline or key milestones].

Sponsor: [Sponsor Name]

Project Lead: [Lead Name]

This project aims to [state the strategic objective or purpose].

It will include [brief description of scope], excluding [any exclusions if relevant].

Success Criteria:

Success will be measured by [briefly describe the key success metrics].

Champion: [Champion Name]

Process Owner: [Owner Name]

Team: [Key Members]

Problem Statement:

We aim to address [briefly describe the problem or challenge].

Achieve [specific, measurable goal] by [end date].

This project will focus on [key areas], aiming for [desired outcome].

Key performance indicators will include [list any metrics].

Real-World Project Charter Examples

Examining real-world project charter examples can be incredibly helpful when you’re creating your project charter. These examples offer practical insights into how to effectively structure and write your document.

Example 1: IT Infrastructure Upgrade

Project Name: IT Infrastructure Modernization

Sponsor: Jane Shaw, CIO 

Project Manager: John Smith

Start Date: September 1, 2024

End Date: December 31, 2024

Upgrade the organization’s IT infrastructure to enhance security, improve system performance, and support future growth.

This project includes upgrading servers, network hardware, and software systems. It excludes any changes to user devices.

Key Stakeholders

• IT Department
• Department Heads
• External Vendors

Success Criteria

Successful deployment of new infrastructure with no critical downtime, improved system performance by 20%, and a 30% reduction in IT-related incidents.

Example 2: New Product Launch (Consumer Goods)

Project Name: Launch of Eco-Friendly Packaging

Sponsor: Mary Johnson, VP of Marketing

Project Manager: Emma Williams

Start Date: July 15, 2024

End Date: October 30, 2024

to introduce a new range of environmentally friendly packaging for our best-selling items in response to the growing demand from customers for eco-friendly choices.

The project covers the design, production, and distribution of eco-friendly packaging for 10 products. It excludes any changes to the product formulas.

• Marketing Team
• Supply Chain Team
• Sustainability Consultant
• Retail Partners

Successful launch with 100% on-time delivery to retailers, positive consumer feedback, and a 15% increase in sales within the first quarter.

Example 3:   Healthcare System Implementation

Project Name: Electronic Health Record (EHR) Implementation

Sponsor: Dr. Michael Lee, Chief Medical Officer

Project Manager: Sarah Brown

Start Date: January 1, 2024

End Date: June 30, 2024

To enhance patient care and optimize operations, all clinics will be using a new Electronic Health Record (EHR) system.

This project includes the installation of EHR software , staff training, and data migration from legacy systems. It excludes integration with third-party applications.

• Medical Staff

Full system implementation with all staff trained by the deadline, a 25% reduction in administrative tasks, and improved patient satisfaction scores.

Steps to Write a Project Charter

Before beginning any project, it is essential to create a project charter. It lays the groundwork for the project’s goals and its intended course of action. Here’s a simple, step-by-step guide to help you write an effective project charter.

Step 1: Identify Key Goals and Objectives

The first step in writing a project charter is to clearly define the project’s goals and objectives. This involves pinpointing what the project is intended to achieve and how it supports the broader goals of your organization. To ensure clarity and effectiveness, these goals should adhere to the SMART criteria : Specific, Measurable, Achievable, Relevant, and Time-bound.

• Specific – Define what exactly the project will accomplish. For example, rather than stating “improve customer service,” specify “implement a new customer service training program for all front-line staff.
• Measurable – Decide how the project’s success will be measured. Metrics like customer satisfaction ratings or training completion rates may be included in this. 
• Achievable – Make sure the objectives are reachable and reasonable in light of the project’s resources and limitations. 
• Relevant – Ensure that the project goals are in line with the organization’s strategic objectives. For example, if your business wants to improve the client experience , one of your main objectives should be to improve customer service. 
• Time-bound – Establish a deadline for doing these tasks. For example, “complete the training program within six months.

Step 2: Establish Project Structure

Next, determine how the project will be structured by identifying the team members, their roles, and their specific responsibilities. This phase makes sure that everyone is aware of their responsibilities and how they fit into the project.

Make it clear who will be involved in the project and what their responsibilities will be. This includes assigning responsibilities like project manager, team leads, and individual contributors. For instance, the project manager may oversee overall coordination, while another team member could be responsible for managing the budget.

Define how the team will be organized to achieve the project’s goals. This might involve creating a project team hierarchy or a matrix of responsibilities. Make sure the team members’ effective communication and cooperation are supported by the framework.

Step 3: Develop an Action Plan

With the structure in place, it’s time to plan out the specific tasks that need to be done to reach the project’s goals. Break down the work into manageable steps, set deadlines, and figure out which tasks depend on others. This will guarantee that nothing is missed and help keep the project on schedule.

• Task Breakdown – Divide the project’s activities and tasks into digestible chunks. For example, if the goal is to implement a new software system, tasks might include selecting the software, training staff, and deploying the system.
• Timeline – Create a timeline for each task, including start and end dates. This aids in monitoring progress and keeping the project on track. To illustrate the chronology, use tools like project management software or Gantt charts .
• Dependencies and Constraints – Identify any dependencies between tasks (e.g., training cannot begin until the software is installed) and potential constraints that might impact the project’s progress. This helps in planning for any issues that may arise.

An action plan provides a roadmap for the project, detailing what needs to be done, by whom, and when, which is crucial for staying organized and on track.

Step 4: Anticipate and Plan for Risks

Every project has potential challenges, so it’s important to think ahead about what could go wrong. Identify possible risks and come up with strategies to manage them. This might involve creating backup plans or regularly checking in on potential problem areas to catch issues early.

• Identify Risks – Consider what could go wrong during the project. This might include risks such as budget overruns, delays in delivery, or resource shortages.
• Develop Mitigation Strategies – Identify and develop mitigation solutions for each risk. This can entail creating backup plans, assigning more resources, or adjusting the project schedule.
• Monitor Risks – Set up a process for monitoring risks throughout the project. Regularly review risk factors and update your mitigation strategies as necessary.

Step 5: Establish Criteria for Measuring the Success of the Project

Lastly, decide how the project’s success will be measured. Establish precise standards or measurements to assess if the project’s objectives have been met. These could be things like meeting deadlines, staying within budget, or achieving specific performance targets. Having clear success criteria will help you evaluate the project’s outcomes and learn for future projects.

• Define KPIs – Identify the specific metrics that will be used to measure success. For instance, relevant KPIs could be response times or customer feedback ratings if the project’s objective is to increase customer happiness.
• Set Measurement Methods – Determine how you will collect and analyze data related to these KPIs. This might involve surveys, performance reports, or other data collection methods.
• Evaluate Outcomes – Use the established criteria to assess the project’s outcomes against its goals. This offers information for upcoming projects and aids in evaluating if the project has met its goals.

Establishing clear criteria for success ensures that you have a way to evaluate the project’s performance and determine its effectiveness, which is crucial for understanding the value delivered by the project.

Steps to Follow After Writing Your Project Charter

Once you’ve finished writing your project charter, there are a couple of important steps you need to take to get your project off to a strong start:

Step 1: Get Project Approval

After completing the project charter, the next crucial step is to secure approval from key decision-makers, such as the project sponsor or senior management. This involves presenting the charter to these stakeholders and clearly communicating the project’s objectives, scope, and benefits.

During this presentation, be prepared to address any questions or concerns they may have. Approval is crucial because it formally authorizes the project, allowing you to move forward with the planning and execution phases. Without this endorsement, the project lacks the necessary backing and resources to proceed, making it a critical milestone for project initiation.

Step 2: Define the Project Scope

With the project officially approved, the next step is to delve into defining the project scope in detail. This involves clearly articulating what the project will deliver and outlining the specific tasks and activities that need to be completed. Determining what is included and omitted from the project is part of defining its scope.

In addition to preventing misunderstandings, this clarity guarantees that all team members and stakeholders are aware of the objectives and deliverables of the project. It also reduces the risk of scope creep, where additional tasks or changes are added without proper approval, which can lead to delays and increased costs. You build a strong base for effective and efficient project management by creating a well defined project scope.

Tips for Crafting an Effective Project Charter

Creating a strong project charter is key to setting your project up for success. Here are some practical tips to help you get it right.

1. Involve Your Team

A great way to ensure your project charter is comprehensive is to involve your team in the process. By tapping into their expertise and perspectives, you can create a charter that reflects a well-rounded understanding of what the project needs. Collaboration also helps ensure that everyone is on the same page from the start.

2. Use a Template

Using a project charter template can make the process much easier. A template provides a clear structure, ensuring that you cover all the important details. Plus, it keeps everything organized and consistent, which is crucial when presenting the charter to stakeholders.

3. Keep It Simple and Straightforward

While including all essential information is crucial, ensure your project charter is easy to understand. Avoid jargon and overly technical language. Instead, focus on writing in a way that’s clear and concise so that everyone involved can easily grasp the project’s objectives and plans.

4. Review and Refine

Before you finalize your project charter, take the time to review it carefully. Check for any errors, ensure all the details are accurate, and make sure the information is clearly presented. A well-polished charter is more likely to be approved and serve as a reliable guide throughout the project.

Understanding a project charter and knowing how to create one is crucial for the success of any project. The project charter serves as the foundational document that kickstarts the project, laying out the essential elements such as goals, scope, and stakeholder roles. It provides a precise road map that guides the project from the beginning to the end, making sure that all parties involved remain committed to its goals.

By following the detailed steps outlined in this guide, you will be able to craft a comprehensive project charter that not only defines what the project aims to achieve but also establishes a structured approach for execution. Utilizing project charter templates and reviewing real-world project charter examples can further aid in creating a well-organized and effective charter.

Supriya is a highly skilled content writer with over 8 years of experience in the SaaS domain. She believes in curating engaging, informative, and SEO-friendly content to simplify highly technical concepts. With an expansive portfolio of long-format blogs, newsletters, whitepapers, and case studies, Supriya is dedicated to staying in touch with emerging SaaS trends to produce relevant and reliable content.

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• Project management
• Project planning
• Project charter vs. project poster

Project charter vs. project poster: What’s the difference?

Browse topics.

This article explores the distinctions between two essential tools in project management: the project charter and the project poster. While both serve as instruments for initiating and planning projects, they differ significantly in their applications. The project charter, a formal and static document, acts as a foundational blueprint by outlining a project's purpose, goals, and key details. 

In contrast, the project poster is a dynamic tool, providing a visual overview that evolves as the project progresses. In the following sections, we’ll delve into the unique features of each—emphasizing how project charters set the formal groundwork for a project, while project posters serve as dynamic guides for ongoing planning and visualization, catering to different needs and stages in the project lifecycle.

What is a project charter?

A project charter or brief is a high-level document outlining a project's purpose, goals, and scope statement. It’s a formal authorization for the project to begin and sets the foundation for project planning and execution . The project charter usually includes vital information such as:

• Project title : A brief, descriptive name for the project.
• Project purpose or justification : The purpose of the project and its expected benefits.
• Project objective : Specific, measurable goals the project aims to achieve.
• Project scope : A description of the project requirements, including specific goals, tasks, costs, and deadlines..
• Project deliverable : The tangible products or services the project will produce.
• Project stakeholder : A list of the individuals or groups with a vested interest in the project, such as customers, sponsors, and team members.
• Project timeline : A high-level overview of the project schedule , including significant milestones and deadlines.
• Project budget : An estimate of the resources needed to complete the project, including costs, staff, and other resources.

Overall, project charters provide a shared understanding and agreement among all main project stakeholders and project sponsors about the project's purpose, scope, and expected outcomes. It also serves as a reference point throughout the project management process to help ensure the project remains on track and meets your objectives.

Why is a project poster important?

Project charters play a pivotal role in the project management process by providing a structured foundation and offering several specific benefits. First, they serve as a compass, providing clear directions for the project team by outlining the project's purpose, objectives, and scope. This clarity helps align efforts toward common goals and minimizes the risk of diverging priorities. In addition, project charters contribute to effective risk mitigation by identifying potential challenges and uncertainties upfront, enabling proactive planning and risk management strategies.

What’s more, project charters are instrumental in optimizing resource allocation. By detailing project requirements, including tasks, costs, and deadlines, they ensure that resources, both human and financial, are allocated judiciously and in accordance with the project's needs. This, in turn, enhances efficiency and prevents resource bottlenecks. Another significant advantage is that project charters facilitate informed decision-making. Stakeholders, armed with a comprehensive understanding of the project's purpose, expected benefits, and potential risks, can make well-informed decisions throughout the project lifecycle.

Finally, project charters act as a documented agreement among stakeholders, providing proof of work and a basis for accountability. This fosters transparency and helps resolve disputes or misunderstandings that may arise during project execution. In summary, project charters contribute to project success by offering clear guidance, risk mitigation strategies, optimal resource allocation, and an informed decision-making framework.

What is a project poster?

A project poster is a project planning tool that allows your project managers and team to think through the problem you're trying to solve, the possible solutions, and the ideal result of your project. A project poster is not a sporadic activity but rather a document that serves as a project overview. Unlike a static project charter, a project poster is designed to evolve and be updated as the project team progresses in research and project activities. 

The project poster is a dynamic tool that allows teams to think through problems, explore potential solutions, and refine the project's vision. This continuous updating ensures that the poster remains a relevant and valuable resource throughout the project lifecycle, adapting to the evolving nature of the project.

A project poster is where your team's project planning begins. Ultimately, it helps you reach conclusions around project risks, which solution to pursue and create an idealized project vision of what you'll deliver and what it will take to deliver it.

A project poster helps teams answer critical questions, including: 

• What problem are you solving?
• Why does it matter that you solve this problem?
• What are the goals and objectives of the project?
• What do you know, and what information are you missing?
• What are potential solutions?

What is the difference between a project poster and a project charter?

There are several differences between a project poster and a project charter. Unlike project charters, your project poster is a living document. You can update it as you explore your problem space, challenge assumptions, validate solutions, gather feedback, and course-correct before you move forward.

A project poster has three categories to organize your information in, which include:  

Problem space : This is your project statement. Explain why solving this problem matters to customers and the business. Get specific on your project objectives and possible solutions.

Validation : Identify knowledge gaps and risks. What do you know, and what do you need to find out? 

Ready to make it : Visualize the solution and implement a project plan.

Here’s an example of a project poster:

Tips for writing your project poster with Confluence

To set your team up for project success, use the project poster template to run the Project Poster Play . The Project Poster Play helps you validate assumptions and understand the problem you're solving. Once completed, this simple, collaborative document will house all the essential project details. This will help everyone grasp your project's context and business case.

In the kick-off session, define the problem and set your project goals . Then, share it with your project sponsor as early as possible to get their feedback, which you'll incorporate in future sessions as your project develops.

How to use the project poster template

Check out the Confluence project poster template

Step 1. Start with the basics

Let's kick things off with the easy stuff. The top section of the template is a space to fill in information like the project name, owner, team members, current status, and a brief description of how this project fits into your larger strategy. Typically, a project manager will complete this portion as the project initiator.

Step 2. Define your problem space

Carefully think through the problem you're trying to solve before you get into the details of your project. This process helps capture the project's purpose.

What's the problem? How does it affect your customers or your project team members? How will you know you've solved it? What are some possible solutions that immediately come to mind?

Those are the types of questions you'll think through and record here. Take your time with this. You'll likely revisit this section several times before moving forward with your new project, and you may need to make some adjustments as you collect more feedback and insights. That's normal and all part of the learning process.

Step 3. Validate your assumptions and get the creative juices flowing

You likely made a lot of assumptions as you defined your problem. The next section of the template gives you room to test them against facts and numbers.

There are two sections involved here: one where you'll list what you already know and one where you'll jot down the questions you still need to answer.

For example, imagine that you're planning to redesign your company's blog to be more user-friendly. You already know that 56% of visitors leave your blog after reading a single post. That would go in the first slot of the validation section. But you also want to discover what would keep them on your site longer. That goes in the second slot of this section.

Remember that your goal here is to confirm or disprove the critical elements of the solution you brainstormed before going further. If you can't confidently do that, you should head back to your problem space or think through other possible solutions.

Step 4. Get to work

This final section is where you'll kick things into high gear. You've already worked to define your problem and pick a validated solution. Use this last section to explain the solution and summarize why a customer will want this. Add notes and type /image to add screenshots and sketches. There's also space to define your scale and project scope , such as the team size you'll need.

Hashing all the details out now will help you stay focused on what matters to key project stakeholders and ensure that the project is within your capabilities and capacity.

Step 5. Include reference materials

You want your project plan to be the one-stop shop for all the essential information related to that project. Use the command “/link” to include any reference material people might need. This feature enables the addition of relevant materials, such as a creative brief or examples, to ensure that the project plan serves as a comprehensive and easily accessible resource for all involved stakeholders. 

Whether it's a creative brief or an example you want people to refer back to, add everything to this page so that it's organized and easily accessible.

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