Project Charter. The foundation of a strong project.
The project charter. A document so critical in project management, it’s hard to fathom trying to manage a project without one. Yet, not having one for every project and leveraging it throughout its life cycle is too familiar in organizations. In my experience, when organizations struggle to complete projects and spend most meetings discussing the same things over again and unable to move forward, it’s almost always because they didn’t start with a project charter.
Without a project charter, you run the risk of:
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Increased Risk of Failure: If stakeholders don’t understand or agree on the problem statement and are unclear about the overall purpose of the project, having a successful implementation can be challenging, if not almost impossible. The organization is also less likely to fully embrace and adopt the change.
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Scrutiny and bureaucracy: Projects can become a financial burden to an organization and the risk of objectives failing to achieve its objectives increase when changes and scope creep are not managed properly. The project charter serves as a constant reminder of the project's intent and how success will be measured.
I’ve seen project charters that are 20 pages long and some that are three pages long. I believe in and stand by the one-page charter. Granted, having only one page may seem extreme, but it’s also exceedingly purposeful. It forces you to get straight to the point without excessive words.
The PMI (Project Management Institute) defines the project charter as a document that formally authorizes a project and ‘provides direction, establishes authority, and identifies the major stakeholders’. The project charter is the foundational document that guides the project to solve the identified problem.
Let’s examine the critical elements of a one-page project charter.
Problem Statement
What is the problem we’re trying to solve? This is a simple question, but it is crucial for completing the rest of the document. Unless everyone agrees to this part, nothing else will matter.
Objectives
This is where you define what the project team must deliver to solve the problem identified successfully.
In Scope/Out of Scope
What are the deliverables covered by the project, and what is not covered by the project?
Risks and Mitigations
What potential obstacles exist, and how can they be minimized or eliminated? You will have a separate risk register to manage all project risks, so the risks captured here on the project charter are high-level risks, such as “limited resource availability due to competing priorities."
Project Team Members and Roles
It’s essential that project team members and their roles are identified on the project charter. This ensures everyone is on the same page to who is responsible and accountable for project activities.
Business Case
A clear and concise statement that includes the strategic value, benefits and alignment with organization's goals for decision-makers to justify undertaking a project.
Milestones
Key checkpoints that signify significant achievement within the project timeline. You will have a project plan capturing all the project's activities, so the milestones here should be high-level and significant.
Success Metrics
How will you assess the project's success after implementation? Success metrics should be quantifiable measures based on project objectives.
A best practice I recommend to teams is to include the one-page project charter in all project slide decks so that it can quickly be referenced, especially during project sponsor and stakeholder updates, as a reminder of the project's purpose and scope. The project charter is the foundational document that guides the project in solving the identified problem. If changes to the project scope or direction are needed, it’s best to have a formal approval process to make any changes. Generally, only the project sponsor can approve these types of changes.
Making the development of a project charter one of your first activities when initiating a project can save you hours of confusion and rework, paving the way for a smoother and more efficient project and successful implementation.
For help with completing your Project Charter, check out the ‘Completing a Project Charter' guide in our BPM Playbook.
Associated Microlearnings:
- Crafting the Perfect Project Problem Statement
- Creating an Effective Project Business Case State
Mike Cook
Director, Business Process Management Office
Office of the Vice Chancellor for Administration
University of California, Berkeley