The project charter is an authorized document of the complete plan of the project. It allows the project managers to distribute and allocate different tasks and duties to different members of the team according to plan. A charter is a document that is made and authorized by the highest authorities of the project.
The higher authorities could be the chairman or the person owning the business who is proving the resources and budget. The project manager is not the person authorizing anything in the charter. He may provide his services in creating it, but the authorization is no part of his job
Content Includes the Following Headings
- What is the definition of Project Charter in the PMBOK Guide?
- Components of PMBOK® Project Charter
- In this article, we will see what is a project charter?
- PMI project charter template
- Why is it important and what are the main components of it?
Definition of Project Charter in PMBOK® Guide
A Project Charter is a document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides a project manager with the authority to apply organizational resources to project activities. (PMBOK® Guide)
What Are the Components of PMBOK® Project Charter?
The project chart is a detailed road map of the different stages of the project. It is basically the main aspect and backbone of any project.
Therefore, the project charter is an essential and very important document for all business types. It helps you keep on track and provide you a plan to follow.
It mainly is one of the most initial documents made at the beginning of the project. The charter document is an authorization to the manager to use the company resources to start the project.
It mainly is an internal type of document but could be made and authorizes by external sponsors and stakeholders.
The Charter Includes Following Components, Let’s Have a Look at Them
- Project objective
- Project goals
- Project needs and requirements
- Project description
- Expected risks and hazards
- Project expenses and budget
- Stakeholder register
- Project sponsor list
- Project Organization chart
- Project Manager details
What is the Purpose of a Project Charter?
The main objective of using a project charter is to give authority to the manager to kick start the project according to gives plan and resources. This helps managers to give the best outcome and meet the project objective effectively.
- It not only serves as a guide it helps in making better decisions and saves you a lot of time and budget. Every year quite a high amount of money and resources go to waste due to mismanagement.
- The charter helps you to be well managed and organized. And keep you on top of your performance by keeping a firm hold on all the aspects of your project development.
- This document is also an authorized document showing that all the stakeholders are on the same page.
- It provides you an overview of the project goals, scope, and objectives.
- It helps the managers to understand the needs and requirements of stakeholders and act as a guide of their role in the project.
PMI Project Charter Template
How to Create a Project Charter?
Now let us see how a charter is created. It mainly is made and signed by the stakeholders and sponsors. As. It serves as a guideline that is provided to the project managers after approval. The project managers sometimes play their part in charter making. But the authentication is exclusively only done by the higher members of the project.
- It is recommended to prepare the charter in the main meeting having all the important members present. This will allow you to eliminate any errors and will ensure that all the stakeholders and other members are on the same page without any obligations.
- The charter also makes sure that there is no issue in the plan of the project. Thus, it makes sure that the whole team is committed and agreed on the proposed plan.
- As the charter signed by the authorities, it then handed over to the selected manager to kick start and proceed with the project as planned.
- The person who produces the charter often mainly requires things like client agreement, business case, and statement of work.
Project Charter and Business Case
The business case and project charter work side by side. Or you can say the business case is part of the project charter document.
The business case identifies and focuses on the objective of the project. It relates the goals with the objective of the project to provide a clear picture of the plan.
If a project is lack of business case that project will be unable to run smoothly. So, it is a must-have document for business development and success.
As we have seen that the Project Charter is one of the essential parts of the project. Every project always must have a charter, without this the managers and the team will be lost.
So, you cannot neglect the importance of this amazing and most useful document. Consequently, the project charter is very important for the existence of your business project.
I hope this reading helped you understanding the significant value and use of Project Charter.