Does my project need a Project Charter?

As defined by the Project Management Institute (PMI) 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 the authority to apply organizational resources to project activities”. (PMBOK 5Ed.)

The PMI’s definition clearly establishes that the Project Charter is a fundamental document for any project. Let’s see in details the Project Charter document and discuss the minimum project‘s information required in it.

Project Charter could be a document of a single page or multiple pages.  I recommend the use of the single page format.  It can be used as a Project Executive Summary.

During the process of Project Charter development, project sponsor and the appointed project manager will use the following documents (if applicable):  Project Statement of Work, Business Case, Agreements, Enterprise Environmental Factors and Organizational Process Assets.  I also recommend to use the information gathered during the interviews performed as part of the Stakeholder Management.

The following are the minimum information required in a single page Project Charter.  Organizations can modify the minimum required information according to their policies and procedures:

Goal – High-level concrete statements that provide overall context for what the project is trying to achieve, and should align to business goals. 

Objectives - Concrete statements describing what the project is trying to achieve. The objectives should be written at a lower level, so that they can be evaluated at the conclusion of a project to see whether it was achieved or not.  A well-worded objective will be Specific, Measurable, Attainable/Achievable, Realistic and Time-bound (SMART).  Clear objectives will later help when detailed planning is accomplished and the full scope of the project needs to be translated into a robust work breakdown structure.

Sponsor – The person who owns the Business Case and is accountable for delivery of the defined business benefits.

Key Stakeholders – Individuals or organizations who has an interest in the results of the project or whose interests may be affected as a result of the project deliverables. 

They may also exert influence over the project and its results.

Resources - If known, identify the project participants or required roles and the organizations that are represented on the project team. (Include both internal and external resources). 

Deliverables - Those major quantifiable things considered being the “products” of the project.

Key Assumptions  - Factors that are considered to be true, real or certain.  Assumptions affect all aspects of project planning.  To avoid ambiguity, project team frequently identifies, document and validate assumptions as part of the planning process.  Focus on those assumptions that directly impact the success of the project.

Critical Success Factors - The key imperatives or tasks that must be successfully completed to drive the overall success of a project.

Constraints - List the constraints that must or must not happen. Include performance standards, cost, and time constraints. Use bullet points when possible.

Key Dates / Milestones - Identify an expected project completion date.  Specify target start and finish dates for the project implementation, as well as any relevant phases.

Revision - Identify the revision number to maintain a historical documentation of the project. 

Approval – Describe the review and approval required by the Sponsor.  The Project Manager might sign as an acknowledgement of his/her assignment.

The principal benefit of the Project Charter is a well-defined project start and project boundaries, and a direct way for senior management to formally accept and commit to the project.

Remember that the information stated in the Project Charter will be reviewed and modified, if required, as part of the Planning Stage and the Project Management Plan approval.

Now, think about your project and determine if it needs a Project Charter. We all know the answer!

Comments and/or questions are welcome.