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HomeBlogProject ManagementEssential Elements of a Project Charter [With Examples]
For any organization, taking up a project or initiating a project is followed by a series of pre-project work, which includes project acquisition, pre-sales activities, creativity, developing the business case, and drafting the benefits management plan. Once all of these are concluded, the sponsor or the sponsoring committee must appoint a project manager and authorize him/her to utilize organization resources to plan, execute, monitor, and close the project. At this critical juncture is where the project charter document comes into the picture. In this article today, I will take you on a journey to understand how all the pre-project work connects to the project initiation and what key elements of a project charter go into its formation. We will also, at every step, understand the importance of these elements and how they influence the later stages of the project. So, let’s get started!
To understand the key elements of the project charter, let us first take a look at what the project charter is and what purposes it serves. A project charter is a project document created by the project initiator or project sponsor (or sponsoring committee) that formally authorizes the transition of activities from the pre-project phase to formalize project creation. It authorizes the project manager to use the organization’s resources to achieve the defined objectives and entails documentation of the following what’s:
The above project charter major elements become crucial in formulating detailed project plans and also serve to create a direct link between the project and the organization’s vision.
It is vital to note that without a project charter, a project cannot be started, as there is no formal start indicated due to this missing project document. Understand this and a lot more in detail with interactive Project Management certifications.
Having understood the definition and importance of the project charter document, let us now see the key elements of a project charter in detail.
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Having understood the core components or elements of the project charter, project managers may often include the following details as well as a proactive measure to effectively engage stakeholders and team members:
It is crucial to note that the project charter is created only once during the project lifecycle, and any changes to it designate a new project initiation. Hence, it is important and customary for the project manager to include finer details before finalizing or baselining the project charter.
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A project charter is a vital project document that is made from the project business documents (business case and benefits management plan) following the organizational process assets and governance framework. It serves as a safety net and allows the sponsor to formally authorize a project manager to take over and go into project planning and execution. Not only this, but the elements of a project charter also help the project manager create project baselines and define the boundaries of work, responsibilities, and deliverables.
With this article today, I am sure you are now fully aware of how the initiator of the project charter, i.e., the sponsor or sponsoring committee or PMO, uses the project charter to mark the transition from pre-project activities to project execution using this formal document and what core elements or components does the project charter need to have to be effective in helping the project manager in the myriad of activities until project closure.
Project objectives are an essential element of the project objective, explaining the purpose or giving justification for performing project activities. The project charter aims to authorize the PM to use organizational resources; the objectives help define against which project activities the resources will be engaged and to what extent.
The project charter is typically created by the sponsor or sponsoring committee (may be the PMO practice). Once the project manager is assigned, he/she may collaborate on completing and finalizing the charter. It is generally misunderstood that the PM may have to create the charter, but the sponsor is indeed the initiator.
The project charter is the first of the project documents created and provides an overall picture of the project activities to go into the planning and execution of the project. A project charter often serves as an input to the project plan. While the plan details each of the subsidiary management activities, the project charter focuses on the overall project summary.
While there is no prescribed standardized length, the project charter is generally meant to give an overview and must be crisp instead of lengthy. The typical length may be between 1-4 pages as per the governance framework of the organization, and it is essential to remember that the charter cannot be replaced by any contract or agreement.
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