Created: 20 February 2023

A Step-by-Step Guide to Writing a Project Charter, Complete with Examples

A project charter is a critical document that sets the foundation for a successful project. It defines the scope, objectives, and stakeholders involved in the project.

Writing a project charter requires careful planning and attention to detail. In this article, we will provide you with a step-by-step guide to writing a project charter, complete with examples.

Step 1: Define the Project Purpose and Objectives

The first step in writing a project charter is to define the project's purpose and objectives. The purpose is a high-level statement that describes the reason for the project. It should be concise and easy to understand. The objectives are specific, measurable, and time-bound goals that the project aims to achieve. Examples of purpose and objectives are:

Purpose: Develop a new mobile application to increase customer engagement and drive revenue.

Objectives:

• Increase customer engagement by 25% within the first six months of launch
• Generate $500,000 in revenue within the first year of launch
• Achieve a user rating of 4.5 or higher in app stores

Step 2: Identify the Project Scope

The next step is to define the project scope. The scope outlines the boundaries of the project, including what is included and excluded. It is essential to identify the scope to avoid any misunderstandings later on. Here is an example of a project scope:

Scope: The mobile application will include features such as product catalogs, online orders, and customer reviews. The application will not include a loyalty program or any form of social media integration.

Step 3: Determine Project Timeline and Budget

The third step is to determine the project timeline and budget. The timeline should include key milestones and deliverables. The budget should cover all costs associated with the project, including labor, materials, and any external costs. Here is an example:

Timeline:

• Project kickoff: March 1, 2023
• Alpha release: June 1, 2023
• Beta release: August 1, 2023
• Launch: October 1, 2023

Budget:

• Labor costs: $500,000
• Materials: $100,000
• External costs: $50,000
• Contingency: $50,000

Step 4: Identify Project Team Members and Stakeholders

The fourth step is to identify the project team members and stakeholders. The team members are responsible for executing the project, while the stakeholders are individuals or groups who have an interest in the project's outcome. Here is an example:

Project Team:

• Project Manager: John Doe
• Designer: Jane Smith
• Developer: Sarah Lee
• QA Engineer: Bob Johnson
• Marketing Manager: Tom Brown

Stakeholders:

• CEO: Robert Smith
• Sales Team: Sarah James
• Customers: Joe Smith

Step 5: Define Communication Plan

The fifth step is to define the project's communication plan. The communication plan outlines how project information is shared and who receives it. Here is an example:

Communication Plan:

• Weekly status reports to stakeholders
• Monthly project review with CEO
• Daily stand-up meetings with project team

Step 6: Create Risk Management Plan

The sixth step is to create a risk management plan. The risk management plan identifies potential risks and outlines strategies to mitigate them. Here is an example:

Risk Management Plan:

• Risk: Delay in delivery of materials
• Mitigation: Maintain good relationships with suppliers and have alternative suppliers as backup
• Risk: Technical issues with the mobile application
• Mitigation: Conduct thorough testing and involve QA team early in the development process

Step 7: Obtain Sign-off

The final step is to obtain sign-off from all stakeholders. This indicates that they have read and understood the project charter and agree with the project's goals and objectives.

Importance of Project Charter:

The project charter is an essential document that helps to align project stakeholders and ensure a shared understanding of the project's purpose, objectives, and scope. It sets the stage for project planning and provides a roadmap for successful project delivery. A well-written project charter also helps to manage expectations and mitigate risks throughout the project lifecycle.

If you want to learn more about project charters and other critical project management techniques, consider participating in PMP training. The Project Management Professional (PMP) certification is a globally recognized credential that demonstrates your expertise in project management best practices.

PMP training can provide you with the knowledge and skills you need to succeed as a project manager and advance your career. With PMP training, you can learn the tools and techniques needed to create effective project charters and deliver successful projects.

Frequently Asked Questions (FAQs)

1. What is a Project Charter?
   Project Charters are formal documents that define a project's objectives, scope, and stakeholders. It helps to keep everyone on the same page by providing a road map for the project team.
2. Why is a Project Charter important?
   When a project's goals and objectives are clearly defined in a Project Charter, it's much more likely to succeed. It aids in establishing a course of action and laying out targets for the project's stakeholders, sponsors, and team members.
3. What are the key elements of a Project Charter?
   Purpose, objectives, scope, stakeholders, risks, assumptions, limitations, timetable, budget, and success criteria are all essential parts of a Project Charter.
4. Who is responsible for creating the Project Charter?
   The Project Manager is usually in charge of writing the Project Charter, with help from the team, stakeholders, and sponsors.
5. When should the Project Charter be created?
   To get things off to a good start, the Project Charter needs to be drafted during the Initiation Phase. Before moving onto the Planning Phase, it should be evaluated and authorised by the project sponsor and major stakeholders.