The Importance of Reviewing a Project Charter Example
By Indeed Editorial Team
Updated August 14, 2022
Published November 5, 2021
The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.
Before you begin any project, it's necessary to have a clear plan. A comprehensive project charter shows investors and team members that you have made adequate preparations and plans for a project. Learning more about how to write a charter can help you consider your goals and available resources to ensure that the project is feasible. In this article, we explore why it's important to review a project charter example, describe the benefits of one, explain how to create your own, and provide an example for your review.
Why is it important to review a project charter example?
Reviewing a project charter example can help provide you with the information you need when creating your own. A project charter is a brief, formal document explaining a project, its objectives, and its management. It explains the project direction and lists the names of stakeholders. It also lists the project manager and outlines the resources you may use for the project. The charter can act as an agreement between the project sponsor, its stakeholders, and the project team.
You can use the charter throughout the project planning and execution process. The best time to create a project charter is at the initial stage of the project. You can draft your charter before writing your project plan, which expands on the project details.
Benefits of a project charter
Here are some benefits of developing a charter for your project:
Pitches your project to potential investors
A charter summarizes your goals and objectives in a concise document that you can present to sponsors and stakeholders. It helps key investors understand what your project is about. A charter helps investors decide if their visions align with the goals of the project. This document can also make a good impression on investors by showing them your commitment. It can also act as a sales document that you can distribute outside your team to help investors understand your projected expenditure and investment.
Determines how you manage the project
A charter is crucial to the management of any project as it outlines the objectives, benefits, and risks. This information is fundamental for effective management and provides the project manager with a clear understanding of the direction to take. Understanding the objectives of the project also informs the manager's decisions. The charter provides the project manager with other crucial information, like the names of key stakeholders and team members involved.
A project charter outlines the goals and objectives for investors and sponsors to assess, and it states an implementation plan to achieve project goals. Having these goals written in your charter clarifies your approach when managing your project and building your team. The charter helps you make changes and modifications as the need arises while still ensuring that you work toward the overall goal.
While managing any project, it's important for you to remain committed to your goals and objectives. A project charter is an effective tool that helps you remain accountable to your investors, sponsors, and team members. You can refer to the objectives in the charter while making crucial decisions to ensure they align with the vision of the project. It helps measure how the project has progressed by reviewing the charter as you work. It can also help you understand how close you are to completion and if there are any aspects you can improve.
Authorizes the project manager
The charter gives the project manager authorization to begin the project and use company resources to implement the project plan. When the team understands they are working with an authorized and competent project manager, they may become more productive. The charter defines the roles and duties of all the parties involved in the project and ensures that everyone has a clear idea of their responsibilities. The charter also informs other stakeholders and investors about the person managing the project.
While writing a charter, consider potential challenges in your planning. This saves you time by anticipating your reaction and helps you maintain the project plan despite those challenges. Creating the charter helps ensure the initial stage of the project involves most of the project planning and eliminates the need for considering resources or speaking to investors when the project has already begun. This can help with organization and make project execution easier and more effective.
Gives a timeline
The charter contains a projected completion date for the project and summarizes how much time each stage of the project takes. This helps keep you organized and accountable and makes team management more effective. It helps you remain time-conscious and helps to ensure that you complete the project on time. The charter is also beneficial for investors as it allows them to know how long the project may take and the resources that are needed. This provides information that helps investors understand how feasible and time-effective the project is.
Helps you plan your budget
Your charter describes the resources you may require for your project and how you plan to manage those resources. Writing a charter implies that you already have investors and understand the resources available. It helps to keep you accountable for your budget and can help you follow your planned expenditure. Using a charter makes it easier to modify your budget and track your projected expenditure as goals change. It also allows you to modify your budget to deal with the challenges that arise as you implement your project plan.
How to write a project charter
Here are some steps you can follow to write an effective project charter:
1. Consider your objectives
Your objectives and goals are crucial in preparing your charter. Consider your goals and determine the most effective way to achieve them. These goals guide your charter and give investors an insight into what you hope to achieve with the project. Considering your goals also helps you determine the investors you approach and the team members you choose to work with.
2. Consider your resources
While writing your charter, it is crucial that you consider how many resources you may require to complete the project. Your charter outlines your proposed budget, expenditures, and resources. It also provides sponsors insight into how much profit the project can generate. Before writing the charter, speak to your investors and consider the available resources to help you write an accurate and effective document.
3. Define the scope of your project
To help you plan the use of your resources, it is important to define the scope of your project. Before writing your charter, consider the scale of the project and what you want it to involve. Determining the boundaries of your project early can help when drafting your charter, and knowing your project scope helps you determine the direction and decisions that you outline.
4. Set a timeline
Time is an important factor to consider when writing your charter. It is essential that you consider how long it may take to complete the project. This helps you determine the resources you require and how long to contact your team members. It also provides your investors with a specific timeline for your project. Your charter outlines these details and provides information on time-specific decisions and deadlines.
5. Analyze the risks
Before embarking on any project, it is important to consider the risks involved. This allows you to anticipate potential problems and deal with these issues as they arise. It also shows investors the full scope of your project and allows them to consider how much risk they associate with the project. Writing your charter involves comparing the risks involved alongside the potential benefits.
Project charter example
Here is an example of a project charter to help you write your own:
Project name: Lilac Brand Campaign
Project manager: Sam June
Last revision date: 5 November 2021
Project objectives: Launch targeted campaigns and ads to increase consumer awareness of the Lilac brand.
Display brand logo
10-second voice-over explaining the benefits of the brand
Team of six graphic designers and video editors
$30,000 media expenditure budget
40% increase in the purchase of Lilac products
Targets customers located in Ontario only
The project requires only the media team
Project timeline: December 2021-April 2022
Potential negative feedback from the audience
Delay of the project due to the need for third-party approval
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