What is the name of the document that formally authorizes the existence of a project?
Projects need approval before they can be executed. A project charter is a project planning document that sells the project to stakeholders and sponsors. If you’re able to show its viability and return on investment, the work will get the green light to move forward. Show
But there are a lot of elements to any successful project charter. If you’re new to project management, a project charter template can set you up to make sure you’re hitting all the major points. We’ve included a free project template charter help as an example of what a project charter should include. So, what is a project charter, exactly? The following quick guide will help give you a fuller understanding so that when you’re pitching your next project you’ll have everything you need to achieve success. What Is a Project Charter?A project charter is the statement of scope, objectives and people who are participating in a project. It begins the process of defining the roles and responsibilities of those participants and outlines the objectives and goals of the project. The charter also identifies the main stakeholders and defines the authority of the project manager at the outset of the project plan. Related: Free Project Charter Template for Word Follow our quick guide to writing and executing your project management charter below. Key Elements of a Project CharterThe project management charter serves as a reference document. It should define these three main points.
How to Create a Project CharterSo, those are the broad strokes, and while a project statement doesn’t need to go into great detail, there are many more key elements to it than these general statements. Remember, the sections outlined below should be short because they refer to more detailed project planning documents, such as a scope statement, project budget, risk management plan or request for proposal. 1. State the Project InformationThis first section in your project charter is where you’ll include your project’s general information, such as its name, description and who are the project sponsor, project manager, team members and stakeholders. 2. Define Project Team Roles & ResponsibilitiesAn important function of a project charter is to document who are your team members and what their roles and responsibilities are. You should also identify the main stakeholders. It’s always crucial to note the stakeholders in any project for they’re the ones who you’ll be reporting to and, in a sense, managing their expectations. The sooner you know who they are, the sooner you can build a productive stakeholder management plan. 3. Identify Project Goals and Project ObjectivesIt’s important for project managers to differentiate between these two. Project goals are the high-level benefits that the project should generate, while project objectives are the specific milestones or steps that are needed to complete them. If you don’t have a clear target your project is going to miss the mark. 4. Present a Business CaseA project charter needs a business case because it essentially states the reasons for undertaking the project. It helps project managers explain what are the business needs that the project will meet and what are the expected financial benefits and return on investment for project stakeholders. A good way to sell the project is to have a sense of what good the project will bring to sponsors and stakeholders. Figure out what those benefits are and list them here. 5. Outline the Project ScopeWhat are the in-scope and out-of-scope items? The scope is the boundaries of your project, such as its start date and when it concludes. So, what are the in-scope items, such as those parts of the project process as opposed to tasks or actions that lay outside the step-by-step process of the project? Outline your key project deliverables and milestones. Later, during the planning phase, you’ll need to create a scope statement that describes the project scope in more depth. 6. Create a Project TimelineA project timeline is a simplified version of your project schedule. This project timeline should show key deliverables, milestones and project stages so that stakeholders understand the big picture. 7. Build the Project BudgetWhile you’ll go into greater detail when you create the project budget, here is where you want to get a ballpark figure on what project costs you expect. Define the budget for the project and who will have spending authority. Include the estimated costs for the tasks you’ve defined, but be aware that new project requirements and tasks will require adjustment of this budget. 8. Note Key Assumptions & ConstraintsIt’s important to write down all the assumptions or constraints that can have an impact on the development or execution of your project plan. Noting key assumptions is very important for stakeholder management, as setting clear expectations is key to success. You also want to have at least an outline of how you’re going to deal with project constraints. If you don’t cover it now, you’ll have to play catch-up later. 9. Log Key Project RisksIdentify all potential risks that could arise in the project so you’re not taken by surprise. Here you’ll want to highlight the most probable or impactful risks so that stakeholders are aware of them early on. This should be followed up by a risk register and risk management plan in your project plan, where you detail how you’ll resolve those risks and who on the team is responsible for catching and fixing them. 10. Define Project Requirements and Success CriteriaThe project management team and project stakeholders must reach an agreement in terms of success criteria. The most common aspects to determine project success are the triple constraint elements, time, cost and scope. But depending on the project, there can be many project requirements such as risk tolerance levels and quality standards. Project Charter Template and ExampleWriting a project charter takes time and effort and it can be challenging if you’re new to project planning. But you don’t have to worry, you can use our free project charter template to get started. Use it as a project charter example to work off of. ProjectManager’s Project Charter Template for WordSoftware can help you get your charter organizedEven with the help of a template, a project charter required a lot of work. Project planning software can help you organize all the information needed to build a charter. ProjectManager has a dynamic list view that does more than other software tools that just digitalize your to-do list. Attach files to each item on your list, set priority and add tags to make it easier to find. Keep on track by setting due dates for each item. We show you the percentage complete. Get your charter built right and on time by using ProjectManager free today. Collect all the data for your project charter with ProjectManager’s list view. Learn moreWhat Are the Uses of A Project Charter?There are a lot of documents necessary to run a project. Before you even get started there are many you have to create, from a project plan to a project budget and more. All these documents delve into detail on the items you’ve broadly stroked out in your project statement. So, why do you need another document, isn’t it redundant? While it’s true you’re going to cover this ground on a granular level, this is your first pass, and there’s a reason it’s more general and comes before everything else. The following are three main uses of the document:
Tips on Writing a Project Management CharterThere’s a process for writing a project charter, which starts with knowing what is the vision of the project. That vision statement can’t be vague, but must capture the purpose of your project, defining the end goal for the project team. VisionOnce you have the vision clear, then you can break it down into more practical bits.
OrganizeWhen you’re building a structure for your charter there are four subsets you’re going to need to identify. This is done by listing the following:
Gantt charts are the traditional planning tool for projects. They turn your tasks and deadlines into visual timelines. ProjectManager has an online Gantt chart and other planning tools that let you assign tasks, track progress in real time. More than that, you can filter the critical path quickly then set the baseline to compare planned effort with actual effort. Keep on schedule and stay within your budget by using ProjectManager. Use the online Gantt chart from ProjectManager to organize your tasks and stay on track. Try It Free!ImplementationYou have a vision and have organized the various parts of your project. Now you have to develop a plan to implement them. There are four parts to this:
Risks, Issues & BudgetWe’re almost done, but no charter is complete without collecting the potential risks and issues that can derail a project. This includes assumptions and constraints related to the project. A risk is a potential issue that may or may not happen in a project. Risk is not always negative, as there is such a thing as positive risk, and you should prepare for that as well. An issue is something that has already occurred in the project. Basically, the risk is future tense and an issue is a present tense, but you have to be prepared for any and all eventualities when creating a project management charter. Finally, with all the above information, you can sketch out a rough figure on how much it will cost to deliver the project within the timeframe you’re allowed. Then you present your charter, and once it’s approved and signed, the real work begins. Take the Next Step in Planning with ProjectManagerThe charter lays the groundwork for the project. It provides a vision and determines where all the parts will be placed. It’s a great framework, but it’s not a plan. The charter leads to project planning, and ProjectManager is the award-winning project management software you need to manage your project from start to finish. Gantt Charts for PlanningTurning a charter into a plan requires a tool that is flexible enough to respond and adjust to the many tasks involved. The online Gantt chart project view takes tasks and populates a project timeline, where dependencies can be linked-to avoid bottlenecks later. Set milestones, quickly edit dates and even assign work to team members. Collaborate on TasksWhen assigning teams, it’s critical that they’re given clear directions. Project managers have too much to do to spend time micromanaging their teams. ProjectManager makes assigning easy, but also with its unlimited file storage, you can attach as many documents and images as necessary for instruction. Comments can be made at the task level, so there is always a channel open between team members to communicate and collaborate. Report on EverythingA powerful window into the project is the reporting feature, which creates in-depth project reports with just a few clicks. Managers can filter reports to show just what they need to see, such as task progress or project variance. These reports monitor the project to keep it on track, but can also be shared with stakeholders to keep them in the loop. Once you’ve written your project charter and have approval from your stakeholders, then you’re going to need the right tools to manage the scope, tasks and resources of your project to ensure you bring it in under budget and on schedule. ProjectManager is a cloud-based project management software that reports instantly when statuses are updated, so you know where your project is and how to keep it moving towards successful completion. Try our award-winning software now with this free 30-day trial. Related PostsWhat document recognizes the existence of a project and?What is a project charter? The 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.” A Guide to the Project Management Body of Knowledge.
What is another name for project charter?A project charter, also known as a business case, project definition or project statement, is a brief document indicating the scope, objectives, and participants in a project.
What is a project document called?Project Documents include project charter, statement of work, contracts, requirements documentation, stakeholder register, change control register, activity list, quality metrics, risk register, issue log, and other similar documents.
What document formally authorizes a project quizlet?A project charter provides formal approval for the project to begin and authorizes the project manager to apply resources to the project.
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