What Is a Project Charter & Why Is it Important?

Companies will often break down their business operations into manageable projects. Companies may use a project charter to start these operations and manage or control the environment surrounding the project.

Identification

Project charters are miniature mission statements that list the purpose of the project and any issues or constraints that may exist. This allows the company to create a plan for completing the project and ensuring the best performance possible.

Features

Companies may decide to spend time planning projects before creating a charter and beginning the operations. For example, planning can help answer what the project will bring to the company, what its importance compared to other business projects is and what is the opportunity cost of the project will be.

Benefits

A project charter can help reduce confusion in a business and get everyone on the same page. Goals and objectives listed in the project may also have a specific time line. This gives the company a measuring stick to ensure that the project stays on track, reducing the opportunity for waste and inefficiency.

References

• i Six Sigma: Six Sigma Project Charter as a Vital Control Document
• Bika Lab Systems: Project Charter: Definition