About Project Charters

A project charter is one of the first deliverables in project management and an important element of the process. For a successful project plan, a project manager draws up a charter, which is a list of justifications and prerequisites to consider before beginning. Project charters introduce new projects, state the pros and cons, and estimate the costs involved. Typically, project charters are presented to project committees for approval before the projects can proceed.

Identification

Project charters are documents that present project concepts to all individuals involved. Projects begin when someone decides that something must be done about an unfavorable situation. The situation might be a flaw in a product design or an upgrade to an existing product. Whatever the situation, new projects set out to improve either cost or efficiency.
At the concept stage, a project manager is appointed to make sure the project is approved and then to make sure it runs smoothly. The project manager creates a project charter, documenting the need, the cost, and the possible outcome of the potential project. The project is not actually a project until the charter is approved, after which, the project charter becomes one of the project deliverables.

Function

A project charter functions as a proposal for a potential project. Like a proposal, the charter contains a scope, a list of possible team members, risks and benefits of proceeding or not proceeding, and costs. The charter is presented to a project approval committee (in larger companies) or the benefactor in charge of funding such projects. Project charters do not reveal all the details of projects, just enough to gain approval for funding. If a project charter is approved, the project manager will then submit a project plan to describe how the project goals will be accomplished.

Benefits

Project charters are absolutely necessary in proper project planning. They help set budgets to prevent unexpected expenses. They make proposers think through all the important details of a potential project to decide whether the project really is beneficial. Project charters let everyone involved know that a need exists and what must be done to fulfill the need. Charters are most beneficial by way of organization, to ensure that every step of a project runs as smoothly as possible.

Features

While each company has its own project charter template, the elements of each are generally similar. The title of the project should be something that not only describes the objectives but can apply to any foreseen expansions to the project. The document then begins with an introduction stating the purpose, objectives, and scope of the project. Other sections of project charters include:
Project manager
Team members
Start date of project
End date of project
Estimated cost, including labor
Benefits
Risks of not proceeding
Project constraints
Some companies have templates that include forms to fill out. Others require the project manager to write out the information in a formal document.

Effects

With quality project charters, projects are more likely to be approved than if someone were to simply say to an official, "We need this." If done right, project charters can mean the difference between successful projects and disasters, because they spell out the consequences, costs, and results as well as can be predicted. This saves time and money that might otherwise be wasted on unplanned or poorly planned projects.

Resources

• More on Project Management