Successful projects don’t just happen; they start with a solid foundation—a project charter.
While the concept of a project charter has existed for some time, the Project Management Institute (PMI) has only recently highlighted its importance in the Project Management Body of Knowledge (PMBOK) Guide.
In the third edition of the PMBOK Guide, a new “Develop Project Charter” process was added, making it a more visible and essential deliverable in project management.
However, creating a project charter is challenging. You’ve got stakeholders following up, deadlines looming, and a team of professionals to coordinate.
With so much on the line, you can’t afford to wing it. The last thing you want is to stumble into the dreaded “death by a thousand paper cuts”—caught up in those little decisions that can slowly bleed your project dry.
If you want to set your project up for success, this article will guide you step by step on how to create a project charter.
From understanding project charter basics and best practices to other project charter alternatives, we’ve got you covered.
How to Write a Project Charter with Examples
- What Is a Project Charter?
- The Composition of a Project Charter
- Steps to Creating a Project Charter
- 1. Organizing a charter meeting
- 2. Identifying project goals and objectives
- 3. Defining scope, roles, budget, timeline
- 4. Risk management and risk identification
- 5. Approval process: Review, alignment, and obtaining final approval
- The role and utility of project management software in creating project charters
- Implementing a project charter in the real world
- The role of a project manager in the creation of a project charter
- Project Charters vs. Other Documents
- Examples of Project Charter
- Benefits and Potential Drawbacks of Project Charters
- Craft an Effective Project Charter with ClickUp
Summarize this article for me pleaseWhat Is a Project Charter?
The PMBOK Guide, 3rd Edition, describes the project charter as “the document that formally authorizes the project.”
At its core, a project charter lists the project’s aim, determines the roles and responsibilities of the people involved, delivers an expected budget, identifies risks, and provides a timeline and metrics to measure project success.
But hey, why do we need one? Well, a project charter:
- Provides clarity and transparency for all stakeholders involved, leading to smoother communication and more cohesive teamwork
- Helps to keep the project on track, reducing the chances of misunderstandings, missed deadlines, or budget overruns
- Provides a single point of reference, ensuring that all stakeholders have access to the same information and understand the project’s scope and objectives
Let’s look at each project charter component in detail.
Summarize this article for me pleaseThe Composition of a Project Charter
A project charter must provide an overview of the project, usually within 2–4 pages, depending on its complexity and length.
Here are the key components that make a well-written and detail-oriented project charter.
1. Project name and description
The project name should be concise yet descriptive. Accompanying the name, you should also write a brief project description in a few lines that capture the essence of your idea.
Here’s an example:
Project Name: Customer Portal Redesign
Description: Revamp the customer portal to improve user experience, performance, and engagement.
2. Vision and purpose (objectives)
The vision dictates the project’s direction and what you wish to achieve as a broader goal. This information is crucial to help understand why the project is being undertaken.
The objective is to translate this vision into smaller, achievable, actionable tasks to offer a clearer perspective.
For example,
Vision: Enhance our online presence and boost customer engagement by 25% within six months.
Objective:
- Create and distribute engaging marketing videos
- Conduct customer polls to gather insights and drive interaction
3. Project scope
Before starting a project, it’s best to define everything it covers to avoid confusion or project scope creep later. This section details which activities or to-dos lie within the project’s scope and which don’t.
Here’s how this section would look like for a revamped project charter:
Scope: Redesigning the homepage, product pages, and navigation menu
Out of scope: Rewriting blogs
4. Key stakeholders
The key stakeholders’ list includes everyone invested in or essential to the project’s success. It helps keep communication smooth throughout the project and clarifies each stakeholder’s roles and responsibilities.
Here’s what a typical stakeholder list looks like for a construction project:
Lead Architect (Name, email address)
Lead Engineer (Name, email address)
Construction Project Manager (Name, email address)
Site Supervisor (Name, email address)
5. Identified risks and constraints
Identifying potential challenges that could impact the project and recognizing budget constraints is essential. Addressing these aspects allows the team to develop and incorporate contingency plans into the project’s expectations.
Some identified risks for a construction project could be rising raw material costs or unavailability of construction labor.
6. Project budget
When pitching a project, it’s vital to communicate the cost involved. The project budget outlines the financial requirements and provides a detailed breakdown of the expenses, offering insight into project cost management.
Let’s say you’re pitching the development of a new product to a software company. This is what the project budget section will look like:
Design – $20,000
Development – $15,000
Testing – $10,000
Marketing – $5,000
7. Project team roles and responsibilities
You know everyone who’s involved in executing the project. But what if there’s an overlap or confusion? This section defines the team’s internal roles and responsibilities to ensure everyone knows their duties.
This section typically looks like this:
Sarah Parker (Project Manager) – Responsible for overseeing the project timeline and coordinating tasks
John Williamson (SEO Expert) – Responsible for improving website ranking
8. Project timeline and milestones
Consider these two statements.
Statement 1: “Enhance social media engagement and brand visibility.”
Statement 2: “Increase social media engagement by 30% and boost brand visibility by 40% within the next six months.”
Which of the two will you most likely approve? The second one because it gives you a timeline and milestones to chase.
When pitching a project, it’s crucial to outline the total time required for completion and establish key milestones. This enables stakeholders to monitor progress and stay informed about the project’s timeline.
To illustrate this, consider a marketing agency implementing ClickUp, a comprehensive project management software. A project timeline with clear milestones might look like this:
- Phase 1 (Week 1): Conduct in-depth stakeholder interviews to gather requirements and define project scope
- Phase 2 (Week 2): Configure ClickUp to match the agency’s workflow and create initial project templates
- Phase 3 (Week 3): Train the entire team on ClickUp features relevant to their roles
- Phase 4 (Week 4): Launch a pilot project to test the new system and gather feedback
9. Performance indicators for success
Lastly, how do you prove the project was successful? That’s where the performance indicators come in. They provide quantifiable measures of success and direction for improvement.
For example, success will be measured by a 30% increase in sign-ups and a 10% increase in paid subscriptions after a corporate event.
Summarize this article for me pleaseSteps to Creating a Project Charter
With so many components, it can be challenging to determine where to begin. To simplify this, we’ve created a step-by-step guide to help you navigate the procedure of creating a project charter.
1. Organizing a charter meeting
You can’t create a project management charter without consulting other stakeholders. What if the marketing team directly contacted the client and understood their requirements in detail?
This is why, before you begin, it’s crucial to organize a quick meeting and invite everyone who plays a significant role in the project, from sponsors to team leads.
Which bases would you cover in the meeting?
Brainstorm ideas, ensure everyone is on the same page, and gather valuable insights to lay a strong foundation for the project.
2. Identifying project goals and objectives
In this step, you ask yourself what you want to achieve from this project. It’ll help you define and quantify your goals and objectives to make them measurable.
If you aim to increase the website traffic by 30% in the next six months, what are the smaller measurable objectives you will break this goal into?
3. Defining scope, roles, budget, timeline
Once you have decided on the goal, determine what factors you’ll cover within the scope of the project plan. Also, write down the roles and responsibilities of individual team members and what they are accountable for.
Once you have a clear picture, creating a tentative budget and timeline for clarity and advanced management will be simple.
4. Risk management and risk identification
This is your project plan ‘A’. However, a good project manager always has a project plan ‘B’ as a backup.
Whether budget constraints, technical challenges, or workforce limitations, you must test the waters in advance and know what to do if project plan A goes south.
Sit with your team, cover every potential issue that might hinder the project’s progress and successful completion, and devise a risk management solution to make your project charter foolproof.
5. Approval process: Review, alignment, and obtaining final approval
Here’s the first draft of your project charter.
In other words, it’s time to get a heads-up from the stakeholders before you finally present it to your seniors. Take feedback, make necessary adjustments, and ensure the project syncs with the organization’s goals.
Once everyone is on board, obtain final approval from project sponsors or senior management. This step formalizes the project’s start and gives you the green flag!
The role and utility of project management software in creating project charters
Coordinating with project stakeholders, making a list of all critical points, and estimating milestones and timelines can sometimes be complicated, inevitably delaying the creation of a project charter.
This is where project management software can work wonders.
It assists in project planning, organizing, and executing the project by breaking it into smaller tasks and actionable items. By dividing the work and systematizing tasks, you can avoid feeling overwhelmed and maintain control throughout the project.
ClickUp is an all-in-one project management software that provides productivity solutions, enhances collaboration between team members, and increases overall project efficiency. Its wide variety of features can make creating project charters a breeze.
Here’s a sneak peek into how each of its unique features can assist you in creating project charters seamlessly.
Collaborate in real-time with ClickUp Docs
When creating a project charter, there is bound to be a lot of back-and-forth. Juggling many versions created by different people is time-consuming, confusing, and prone to mistakes. What if there could be a document the entire team could refer to at once?
ClickUp Docs makes this possible! It brings your team together to work on a combined document. This is the ideal place to draft and store your project charter, as any edit made by any of the members will be visible to all, and that too in real-time.
With this collaborative platform, all project stakeholders can provide input and add comments and feedback for others to see.
The best part? ClickUp Docs are equipped with rich text formatting and drafting features. You can:
- Embed URLs within the pages and customize their appearance
- Nest different pages within the project charter in Docs for enhanced categorization
- Manage access controls for added security and to maintain the privacy of your data
Break down the project charter into smaller tasks with ClickUp Tasks
Here’s a tip to complete your project charter on time—divide the mammoth project into smaller tasks and assign them to respective people.
The benefit? Everyone knows what they must do and also the timeline within which they must complete their assigned tasks.
ClickUp Tasks lets you convert sections of the charter into tasks and subtasks. For example, if the charter includes a section on project deliverables, you can create tasks for each deliverable and assign them to team members.
What’s more?
Say goodbye to dropping in texts to team members and knowing whether they are done finalizing the project’s budget or specifying its scope. ClickUp Custom Task Status lets you get a quick insight into the task’s current status, whether it’s in progress or complete.
Here’s the cherry on the top.
Let’s assume your budget team is working on several project charters simultaneously, but you must send one this evening. You can add priority tags and let the budget team know what to work on first.
Lastly, create a ClickUp Task Checklist of the steps and organize your tasks and subtasks. This way, you can tick-mark every task and ensure no aspect of the project charter is missed.
Track project progress with ClickUp Goals
When creating a project charter, it’s also crucial to devise a way to track project accomplishments and targets. ClickUp Goals helps you do precisely that.
Let’s assume you’re creating a charter to launch a new product. The aim is to achieve 10,000 pre-orders within the first quarter after launch. You can set up goals such as completing marketing campaigns, finalizing product designs, and launching pre-order pages.
ClickUp offers multiple unique features to track goal progress, such as:
- Progress roll up: Group tasks and goals together and visualize progress percentage at a glance
- Number targets: Create numerical targets for quantifiable tasks such as creating five Instagram posts
- Monetary tasks: Track progress through monetary tasks for sales or revenue-related project charters
- True or false targets: Use simple Yes and No targets for tasks like booking a venue, paying the caterers, etc. for the launch party
Streamline and expedite processes with ClickUp Automations
With so many tasks lined up, staying on top of each can be difficult. How do you stay informed and ensure you always complete them all on time? With ClickUp Automations, of course!
Let ClickUp automatically remind everyone of their deadlines and push project notifications. It can send reminders for charter review deadlines or automatically update the status of tasks related to the charter.
You can also set up automated notifications to keep team members informed about changes to the charter. This will automatically remind the budget team to update the project charter whenever a new change occurs.
Here’s what Pontica Solutions says about their experience with ClickUp.
Streamline project charter creation with ClickUp Project Charter Template
If creating a charter all by yourself is too much work and you need a ready-made solution, skip everything and download a project charter template.
A team charter template already has all the fields present, so you only have to fill in specific details to develop a well-structured and all-inclusive project charter.
ClickUp’s Project Charter Template provides a structured format for outlining and managing key project details. It includes sections for project goals, scope, deliverables, stakeholders, and timeline.
Moreover, it also features risk management, budget planning, and approval process fields.
This project charter template is the most suitable choice to promote clarity and organization from the very beginning.
With this free project charter template, you can:
- Clearly define project goals, scope, objectives, and outcomes
- Keep stakeholders and project team aligned on various project goals
- Delegate and assign tasks to streamline workflows and organize work division
- Promote smooth and effective collaboration and communication between key players
- Monitor project progress and stay on top of project deadlines
Implementing a project charter in the real world
You have the right tools at your disposal. How do you effectively implement a project charter in the real world?
The key lies in translating its strategic vision into actionable steps.
Having a detailed and well-defined project charter is only the beginning. The implementation phase demands ongoing stakeholder engagement to incorporate feedback, maintain alignment, and provide consistent support throughout the project management lifecycle.
Effective communication and adaptability are crucial to navigating challenges and keeping the project on track. By integrating these practices, the project charter evolves from a static document into a dynamic framework that guides the project toward successful outcomes.
The role of a project manager in the creation of a project charter
Different experts specializing in their fields are working dedicatedly on ideating a project. Who will assemble these fragments and formulate a final plan highlighting unique aspects that are irresistible to refuse? The project manager, of course!
The stakeholder or sponsor likes the project idea broadly but is concerned about going over budget. Who will handle those concerns and make the necessary adjustments? The project manager, yet again!
The project manager ties all the loose ends and puts together a final deal. They are the broker between the team and the stakeholders, the problem-solver, the negotiator, and even the coordinator.
The central roles of a project manager include:
- Gather and integrate stakeholder inputs, including facilitating discussions, negotiating priorities, and synthesizing feedback into a unified vision
- Assign roles such as project architect, site manager, and safety officer and specify responsibilities
- Ensure alignment with organizational goals to support the broader organizational vision
- Draft and finalize the project document and make necessary revisions where necessary
The project manager is the project’s anchor, who has complete authority over the project charter and leads the team in executing the project.
Summarize this article for me pleaseProject Charters vs. Other Documents
Are you confused about how a project charter differs from a project plan, business case, or project brief? While they might seem interchangeable, each document has a specific purpose in smoothing business operations.
Let’s understand the difference between them in detail.
Difference between project charter and project plan
| Aspect | Project Charter | Project Plan |
| Depth | High-level overview with minimal detail | In-depth and detailed project explanation covering all aspects of project execution |
| Scope | Defines the broad scope and high-level deliverables | Details the specific tasks, timelines, and milestones |
| Purpose | Authorizes the project and provides high-level objectives and scope | Outlines how the project will be executed and controlled |
| Audience | Executives and stakeholders interested in project approval | The project team and stakeholders involved in the day-to-day management |
Difference between project charter and business case
| Aspect | Project Charter | Business Case |
| Depth | High-level overview with essential project details | Detailed analysis of the business needs, benefits, and financial justification |
| Purpose | Authorizes the project and outlines its objectives and scope | Justifies the need for the project by demonstrating its value and benefits |
| Components | Includes project objectives, scope, stakeholders, and high-level risks | Includes cost-benefit analysis, risk assessment, and strategic alignment |
| Audience | Executives and stakeholders interested in project approval | Decision-makers, executives, and financial backers |
Differences between project charter and project brief
| Aspect | Project Charter | Project Brief |
| Depth | High-level document with essential project details and authorization | Brief and focused, offering a snapshot of the project’s main points |
| Timeframe | Created at project initiation to formally authorize the project | Typically created early in the project initiation phase to convey project essentials quickly |
| Authority | Grants formal approval and authority to proceed with the project | Provides a summary for initial understanding; does not grant formal authority |
| Relevance | Relevant throughout the project as a guiding document | Often used in the early stages, less central as the project progresses |
Summarize this article for me pleaseExamples of Project Charter
Finally, let’s look at some project charter examples to take inspiration from and begin creating your project charter.
Firstly, here’s a sample project charter document for a construction project that seeks to build a greenfield office building:
Project Charter: Greenfield Office Building Construction
Construction of a 10-story greenfield office building to enhance operational capacity and support sustainability goals.
Vision and Project Objectives
Construct an office space that promotes operational efficiency and achieves LEED Gold certification. Finalize the project within 18 months and a $25 million budget.
Project Scope
Inclusions: Site preparation, foundation, framing, cladding, interior fit-out, landscaping, and parking
Exclusions: Furniture procurement and ongoing facility management
Key Stakeholders
Project Sponsor: XYZ Corporation’s Executive Board
Project Manager: David Smith
Architect: ABC Design Architects
General Contractor: BuildRight Construction Inc.
Identified Project Risks
Weather-related delays
Potential cost overruns due to unexpected site conditions
Project Budget
Total: $25 million
Major Costs: Site acquisition, construction materials, labor, permits
Project Team Roles and Responsibilities
Project Manager: Oversee construction and manage budget and timeline
Architect: Design the building and ensure compliance with LEED standards
General Contractor: Manage construction activities and site operations
Project Timeline and Milestones
Start Date: January 15, 2024
Completion Date: July 15, 2025
Milestones: Site preparation complete by March 2024, structural framing by July 2024, exterior cladding by December 2024, interior fit-out by April 2025, final inspection and occupancy permit by July 2025.
Performance Indicators for Success
Achievement of LEED Gold certification
Completion within 18 months and a $25 million budget
Let’s now switch the context briefly and look at a website project charter example for a company.
Project Charter: Website Development for XYZ
Develop a new, user-friendly website for XYZ to enhance its online presence and customer engagement.
Vision and Project Objectives
Design and launch a responsive, SEO-optimized website that improves user experience and increases web traffic by 30% within six months—total budget: $100,000.
Project Scope
Inclusions: Website design, development, SEO optimization, content integration, user testing, and launch.
Exclusions: Post-launch maintenance and content updates
Key Stakeholders
Project Sponsor: XYZ Marketing Director
Project Manager: Jane Smith
Web Designer: ABC Web Solutions
SEO Specialist: SEO Pro Services
Identified Project Risks
Delays in content delivery
Potential issues with website compatibility across browsers
Project Budget
Total: $100,000
Major Costs: Design, development, SEO, testing, and launch expenses
Project Team Roles and Responsibilities
Project Manager: Coordinate project tasks and manage budget and timeline
Web Designer: Create the website design and user interface
Web Developer: Build the website functionality and integrate content
SEO Specialist: Optimize the site for search engines
Project Timeline and Milestones
Start Date: February 1, 2024
Completion Date: August 1, 2024
Milestones: Design approval by March 2024, development completion by June 2024, testing by July 2024, and launch by August 2024.
Performance Indicators for Success
Website launch by the planned date
Achievement of a 30% increase in web traffic
Positive user feedback and performance metrics
Summarize this article for me pleaseBenefits and Potential Drawbacks of Project Charters
Creating a project charter can set you in motion to execute your ideas. Here’s a quick recap of all it can help you accomplish:
- Clarification of project goals and scope: It gives you a written document to refer to as a single source of truth for project goals and scope. This makes it simple for both the team as well as other stakeholders to understand what is expected and stay on track
- Defined roles and responsibilities: By clearly outlining key project managers’ and leaders’ roles and responsibilities, you ensure that tasks are easily trackable and projects are executed with seamless coordination and collaboration
- Clear timeline and budget: Establishing a well-defined timeline and budget from the outset ensures that the project is straightforward to manage and follow. With this clarity, you can proactively design a project plan in a way that meets the budget and adheres to the deadline
There are many advantages to creating a project charter; however, it isn’t free of limitations. Here are some potential issues that can arise in the creation of a project charter:
- Stakeholder misalignment: In case the project charter does not list out all stakeholder expectations clearly, there can be a misalignment in expectations that may lead to a conflict
- Scope creep: One of the most common challenges surrounding project charter is the lack of adequate defining of scope that can cause additional tasks to creep in, ultimately derailing both deadlines and budget
- Team focus and misalignment: Sometimes, the charter might not provide an overview of the team members’ responsibilities well, which can lead to confusion and a lack of focus, ultimately causing delay or conflict
Factor these limitations while creating a team charter to ensure your planning, detailing, and assigning are foolproof.
Summarize this article for me pleaseCraft an Effective Project Charter with ClickUp
A well-drafted project charter is a blueprint to make a project smooth, successful, and free of confusion. It’s not only a crucial approval document but also a comprehensive resource that stakeholders and the project team rely on.
Effective project management tools like ClickUp help you transform abstract ideas into an actionable project plan with their range of features and project management templates. It makes it effortless to drive your project to successful completion by facilitating real-time collaboration and task divisions.
Sign up for ClickUp today to create comprehensive project charters effortlessly.
Questions? Comments? Visit our Help Center for support.