What is a Project Charter? Definition and Example

What is a Project Charter?

A project charter is defined as a formal document that provides an overview of a project’s objectives, scope, stakeholders, deliverables, timeline, and other key elements. It serves as a foundational document that outlines the purpose and direction of the project, as well as the roles and responsibilities of team members and stakeholders involved. The project charter is typically created during the initiation phase of a project and is approved by project sponsors or stakeholders before the project officially begins.

Here are the key components typically included in a project charter:

• Project Title and Description: A brief and descriptive title that summarizes the project’s purpose and objectives. The description provides an overview of the project, its goals, and the problem or opportunity it aims to address.
• Project Objectives: Clear and measurable statements of what the project intends to achieve. Objectives should be specific, achievable, relevant, and time-bound (SMART).
• Scope Statement: Defines the boundaries and extent of the project, including what is included (in-scope) and what is excluded (out-of-scope). It delineates the project’s deliverables, features, functionalities, and limitations.
• Stakeholder Identification: Identifies key stakeholders involved in or affected by the project, including sponsors, team members, customers, users, and other relevant parties. It specifies their roles, responsibilities, and expectations.
• Project Deliverables: Describes the tangible outcomes or results that the project will produce. Deliverables are typically categorized and listed to provide a clear understanding of what will be achieved by the project.
• Project Timeline: Outlines the project schedule, including key milestones, deadlines, and major activities. It may include a high-level project timeline or a milestone chart to visualize project progress and deadlines.
• Resource Requirements: Specifies the resources needed to execute the project, including human resources, equipment, materials, and budget. It may also include any constraints or limitations related to resource availability.
• Risks and Assumptions: Identifies potential risks, uncertainties, and assumptions associated with the project. Risks are events or conditions that could impact the project’s success, while assumptions are factors taken for granted but not yet validated.
• Governance and Decision-Making: Defines the project governance structure, roles, and responsibilities of project stakeholders. It outlines the decision-making process, escalation procedures, and communication protocols for managing the project.
• Approval and Sign-off: Specifies the process for approving the project charter, including the names and signatures of project sponsors or stakeholders who authorize the project to proceed.

The project charter serves as a roadmap and reference point throughout the project lifecycle, guiding project planning, execution, and control. It helps ensure alignment between project objectives and stakeholder expectations, as well as clarity and accountability among project team members. Additionally, the project charter provides a basis for evaluating project success and measuring performance against predefined criteria.

Project Charter Examples

Here’s an example of a project charter for a hypothetical software development project:

Project Charter

Project Title: Customer Relationship Management (CRM) Software Development.

Project Sponsor: [Name]

Project Manager: [Name]

Project Objectives:

• Develop a web-based CRM software solution to streamline customer data management, communication, and sales tracking.
• Improve customer service efficiency and effectiveness through centralized data management and automated processes.
• Enhance sales team productivity and customer relationship management capabilities.

Scope Statement:

The project will include the following:

• Analysis of customer requirements and business processes.
• Design and development of a web-based CRM software application.
• Implementation of CRM features, including contact management, lead tracking, task management, and reporting.
• Integration with existing systems and databases.
• User training and support.
• Post-implementation review and optimization.

The project will not include:

• Hardware procurement or infrastructure setup.
• Customization beyond the agreed-upon scope.
• Marketing or sales activities related to the software.

Stakeholder Identification:

• Project Sponsor: [Name]
• Project Manager: [Name]
• Development Team: [List of team members]
• Sales Team: [List of team members]
• Customer Service Team: [List of team members]
• IT Department: [List of team members]
• End Users: [List of representatives from user departments]

Project Deliverables:

• Requirements Analysis Report
• CRM Software Design Documentation
• Developed CRM Software Application
• User Training Materials
• Implementation Plan
• Post-Implementation Review Report

Project Timeline:

• Requirements Analysis: March 1st, 20XX – March 15th, 20XX
• Design and Development: March 16th, 20XX – May 15th, 20XX
• Testing and Quality Assurance: May 16th, 20XX – June 15th, 20XX
• Implementation and Training: June 16th, 20XX – July 15th, 20XX
• Post-Implementation Review: July 16th, 20XX – July 31st, 20XX

Resource Requirements:

• Development Team: 4 software developers, 1 UX/UI designer, 1 project manager
• Hardware and Software: Development servers, software development tools, testing environment
• Budget: $XXX,XXX (breakdown of costs for personnel, equipment, software licenses, etc.)

Risks and Assumptions:

• Risks: Potential delays due to technical challenges, changes in requirements, resource constraints.
• Assumptions: Availability of required resources, cooperation from stakeholders, adherence to project timeline.

Governance and Decision-Making:

• Project Sponsor: Final authority on project scope, budget, and major decisions.
• Project Manager: Responsible for day-to-day project management, reporting, and coordination.
• Steering Committee: Review progress, provide guidance, and resolve issues as needed.

Approval and Sign-off:

I, [Name], the undersigned project sponsor, approve this project charter and authorize the commencement of the Development of Customer Relationship Management (CRM) Software project.

Signature: [Signature]

Date: [Date]

This project charter provides a structured overview of the CRM software development project, outlining its objectives, scope, stakeholders, deliverables, timeline, resource requirements, risks, governance structure, and approval process. It serves as a formal agreement and reference document for all project stakeholders.