Projects can spend a long time awaiting approval. They are discussed at length. They can formalize into a budget request only to be pushed to the next board meeting – six months later. When they are finally approved it is tempting to dive directly into Project Planning – to turn the potential energy of the previous months (or years) into immediate, kinetic activity.

But, before we jump in it is wise to make sure the project is backstopped by a Project Charter as it provides a critical foundation on which the project will be built. Having a Project Charter in place prior to start can help ensure alignment with the overall project vision with the Project Management Plan the Project Team will build. It is the connecting document between the Sponsors and Project Team.

The Project Charter is a document owned by the Project Sponsor. Though, it is fairly common that the Project Team drafts the Project Charter for review and approval by the sponsor.

Project Charter Elements

An effective Project Charter is comprised of the following elements:

1. Overall purpose for the project: The purpose for the project should succinctly capture what your organization hopes to accomplish. This need not be any longer than a few paragraphs stating what the project is, why it was initiated and what are the key anticipated outcomes. This purpose statement, while short, should be universally understood and integrated into project messaging.
2. Success criteria: Success criteria should reflect a strategic view of the project. How will we know if this project achieved what it set out? What are the expectations of the project’s sponsors?
3. High-Level Requirements to be met through the project: The Project Management Plan will provide greater detail around requirements and requirements gathering processes. For the purposes of the charter, high-level requirements should reflect the short, declarative statements that will clearly articulate the required outcomes of the project.
4. Summary-level timeline: The charter states clearly when the project is authorized to start and generally when it is expected to end. The charter may also note specific considerations such as major fundraising or event activity that the project team must take into account in their planning. Variances to the timeline established here will run through the established change control – or governance – procedures.
5. Summary-level budget: The charter authorizes the total funds anticipated for the project and may also note available resources (ex. directing staff time in support of the project). Variances to the budget established here will also need to run through the governance procedures.
6. Governance and oversight structures: Governance represents the overall authority structure in and around the project. The charter should provide a general framework for how oversight and the level of authority empowered at each level of the project. (See also: Effective Governance)
7. Formal authorization of Project: Finally, the charter should clearly authorize work to commence and empower the project team to begin work.

Conclusion

A Project Charter should broadly define the project as it has been established by the Project Sponsor. It will summarize the purpose, success criteria and high-level requirements so as to provide clear direction in forming a statement of work. Summary-level timelines and budget will provide parameters within which the project is expected to operate. And, governance and formal authorization will endow the project team with authority and set expectations for monitoring and controlling project activity.

The Project Charter is a direct input to the scope statement.