- A project charter is a high-level document that provides an overview of a project.
- Typically, project charters are used as elevator pitches for stakeholders and investors.
- Project charters answer stakeholder questions and eliminate guesswork on their part.
A project charter is an important document in a project’s lifecycle. In a project charter, a project manager outlines the big-picture aspects of the project, such as its objectives, timeline, and scope. A well-developed project charter increases the likelihood of stakeholder buy-in and promotes alignment among stakeholders before work starts. Read on to learn more about project charters and how to write one.
Table of contents
Key elements of a project charter
Steps to create a project charter
What is a project charter?
A project charter is a document that acts as a high-level guide to an upcoming project. Often, it follows a project proposal, which is a document that pitches a project to stakeholders. If the proposal is approved, the next step is a project charter, which provides details about how the project will be structured and managed.
In project management, project charters are important because they set the tone for the working relationship between stakeholders, the project manager, and the team completing the work.
Project charter vs. project plan
Usually, a project plan follows a project charter.
A project charter is presented to stakeholders to walk them through a project. It doesn’t get into details like milestone dates or individual team members’ responsibilities; rather, it acts as an elevator pitch for a project by showcasing its objectives and benefits.
A project plan is a more detailed document. This is where you’ll find a project’s specifics, including how and when the project manager will communicate with stakeholders. A project plan doesn’t need to “sell” anybody on a project; its purpose is to keep the team, stakeholders, and project manager aligned.
Project charter vs. business case
While a project charter outlines what a project will entail, a business case supports why the stakeholders should approve the project. A business case is a value proposition that discusses the problem the project will solve and any additional return on investment stakeholders can expect. Generally, business cases detail the financial aspects of a project.
Purpose of a project charter
A project charter gives stakeholders a clear vision of a project’s direction. When it’s presented to them, it provides an opportunity for them to give feedback and suggest changes to the project. These changes may be incorporated into the project plan.
Ultimately, a project charter is the document stakeholders approve so the project can move forward. It’s always possible that they will choose not to approve it, in which case it may be time for a rethink. An approved project charter is a green light for a project manager to take the reins and begin work.
Key elements of a project charter
Project title and description
A project charter starts with a title and description of what’s to come. Grammarly can help you with this step by composing a succinct title and description after you’ve written the rest of the document. Try a prompt like “Write a title and description for this project charter.”
Example:
- Develop a New Website
- Develop and launch a new e-commerce website that supports brand growth and drives increased sales.
Objectives and goals
Include clear objectives and goals in your project charter. These don’t necessarily need to be quantifiable at this stage, but they should be plainly stated and realistic. Make sure they meet the criteria for SMART goals: specific, measurable, achievable, relevant, and time-bound. More on this later.
For example, you might state that your project’s objective is to launch a marketing campaign that increases sales by 40% over the next two years.
Goals might be:
- Launch new website in Q2
- Increase social media presence to 1 post/day per platform
- Launch refer-a-friend program offering cash back to existing buyers by the end of Q3
- Train the team on Shopify sales analytics before the new website goes live
Scope definition
Plainly state the project’s scope. These are the specific deliverables your team will provide. Take a look at this example:
In-house design and development teams will create and launch a new, fully optimized website that presents the brand in a refreshed, exciting way. The website will be equipped with an analytics dashboard that all team members can access and review. The website will serve as the brand’s online store, featuring a product page for each item we carry. Deliverables include product copy and photography for each product page.
Stakeholder identification
The standard project charter format includes stakeholders’ names and titles. Include these in your charter so the list is easy for team members to access.
Here’s an example:
- Kiara Rodriguez, Head of Marketing
- Sal Perrone, VP of Sales
Roles and responsibilities
In your project charter, state each involved party’s role and responsibilities. This sets expectations and makes it easy for individuals to have productive discussions.
For example:
- David Heredia, Senior UX Designer: Oversee the design and development of the new website’s UX
- Mona Yosco, Marketing Coordinator: Create a social content plan for the weeks leading up to launch, the launch period, and the months following
High-level requirements
High-level requirements are broad requirements that must be met. For example, a stakeholder might require a 20% ROI. Include these in your project charter.
- 40% sales increase projected by Q3
- Website must be localized to all major markets at launch
Assumptions and constraints
Including assumptions in your project charter can be prudent as it can help stakeholders and team members anticipate risks. Similarly, including constraints shapes stakeholders’ vision of the finished project, helping them understand it. For example, you may assume that a rebrand would be most effective if rolled out in stages, and a constraint may be that the company is currently halfway through a three-year billboard advertising contract.
Project risks
Note any potential risks, like localization difficulties, in the project charter. Grammarly can help with a prompt like “Determine possible risks with this project charter.”
Examples of project risks include:
- Technical difficulties with e-commerce checkout
- Localization challenges when designing international versions of the website
Milestone schedule
The milestone schedule is the timeline specifying when stakeholders can expect deliverables. Write a realistic schedule that provides enough wiggle room for delays, like a team member’s illness.
- February 10: All-team kickoff meeting
- March 7: First drafts of website copy submitted for stakeholder review
- March 8: Website mockups submitted for stakeholder review
- March 12: All stakeholder comments due back to creative teams
- May 20: Website ready to test
- June 30: Official launch date
Budget overview
The budget overview is one of the most important parts of a project charter, because the budget can mean the difference between approval and rejection. Include an overview of the budget you need and how the funds will be allocated.
Here’s an example:
- Website redesign project: $60,000
- Management: $10,000
- Development: $25,000
- Creative: $20,000
- Resources: $5,000
Steps to create a project charter
1 Get started
The first step in writing a project charter is engaging with stakeholders. Interview them to understand their needs and perspectives. Through these interviews, gather information you’ll use to define project objectives, assumptions, constraints, and risks.
2 Define objectives and scope
Set SMART objectives before you start writing:
- Specific: Are they focused on a specific challenge or goal?
- Measurable: Can you quantify progress toward the objectives? How?
- Assignable: Are there clear roles that can be delegated to specific individuals?
- Realistic: create-project-charter
- Time-bound: Is there a clear timeline for achieving the stated goals?
At this stage, determine your project scope as well. A clearly stated scope can help you avoid scope creep, a scenario where the project grows and becomes more complex after work has begun.
3 Establish milestones and budget
Develop a high-level timeline for the project. State it broadly in the charter. Note the resources and costs involved in achieving the associated objective with each step.
4 Document risks and assumptions
This is where the information you gathered from stakeholders comes into play. Identify potential challenges with the project and write them into the charter. Alongside these, include realistic assumptions and relevant constraints.
5 Write your draft
The last step is to write your project charter. Finding a project charter template and using it to craft your charter can be helpful.
Grammarly can help identify gaps or potential objections to your charter. It can also proofread your writing and make suggestions for fixing grammatical mistakes or striking the perfect tone.
Once your draft is ready, present it to stakeholders and ask for feedback. This is where the right tone can make a significant difference. If stakeholders have suggestions, revise the charter accordingly. Then, you’re ready to get to work with a finalized version.
Best practices
In a project charter, it’s critical to prioritize clarity and conciseness. Generally, a project charter is only a few pages long and rarely longer than 15 pages, so it needs to summarize points, not provide in-depth explanations.
Before writing a project charter, collaborate proactively with key stakeholders. This way, you know what their needs are and how to plan projects that help them reach their goals.
Obtain all necessary approvals before moving forward with a project. Use your project charter to obtain these approvals and ensure all involved parties are aligned before beginning work.
Project charter FAQs
What is the primary purpose of a project charter?
The primary purpose of a project charter is to summarize an upcoming project. It may be used as an elevator pitch for stakeholders and a guide for project managers to avoid scope creep.
How does a project charter differ from a project plan?
A project charter largely summarizes aspects of a project plan. While a project plan is a comprehensive guide to every aspect of a project, a project charter is a short, high-level look at it.
Who is responsible for creating the project charter?
The project manager is in charge of writing a project charter. They may use tools like Grammarly to write a concise, effective document.
What are common challenges when developing a project charter?
A few common challenges that can arise when writing a project charter include:
- Including too much detail, rather than summarizing
- Vague content that doesn’t give stakeholders a clear view of the project
- Missing information like specific steps
Can a project proceed without a project charter?
Yes, it’s possible for a project to proceed without a project charter. However, a project charter is a valuable tool for keeping projects on track.
