Purpose
The project charter is usually a short document that explains a project clearly and concisely, and refers to more detailed documents for additional information. A project charter should: * Identify the scope of the project. * Provide a shared understanding of the project objectives. * Act as a contract between the project sponsor, key stakeholders and the project team, detailing responsibilities. A project charter typically documents most of the following: * Reasons for undertaking the project * Objectives and constraints of the project, including in-scope and out-of-scope items * Identities of the main stakeholders * Risks and issues (a risk management plan should be part of the overall project management plan) * Benefits of the project * High level budget and spending authorityEstablishing authority
The project charter establishes the authority assigned to the project manager, especially in a matrix management environment. It is considered industry best practice.Uses
The three main uses of the project charter are: * To authorize the project - using a comparable format, projects can be ranked and authorized byDevelopment
A project charter will be created in the initiating process group of a phase or a project at the very start. Developing the charter and identifying the stakeholders are the two main actions of the initiating process group. Typically a project manager takes the lead in developing the charter. The project manager will employ his or her expertise and experience to develop the charter. The project manager will work with the key stakeholders (customers and business sponsors), the PMO, Subject Matter Experts inside and outside the organization, other units within the organization and may also work with Industry groups or professional bodies to develop the charter. The project manager will employ facilitation techniques such as brainstorming, problem solving, conflict resolution, meetings, expectations management etc. to develop the charter. Inputs to develop a charter can be: * Project Statement of Work * Business Case * Agreements *Assumptions * Enterprise standards, industry standards, regulations and norms * Organizational process, assets and templates The charter once signed will provide authority to the project manager to officially execute the project and employ organizational funds and resources to make the project successful. For a large multi-phased project, the charter can be created for each individual phase. For example, there can be an initial charter during the Scope and Seek phase of a project, followed by a Planning charter and an Execution Charter during the build phase of the project.See also
* Project scopeReferences
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