Question

Describe what an effective charter should accomplish for project management. How is a charter like a contract? How is it different from a contract? How long should a typical charter be? Who generally writes the rough draft of a charter? Why is it valuable?

Answer 1

A project charter is a central document which defines fundamental information about the project. Project charter serves as a good reference document to retain clarity.

1) Effective charter: the effective project charter helps to authorize the project manager to start the approved project and accomplish the organizational objectives by using organizational resources. Creating a project charter shows management support for the project. An effective project charter should include the business need behind the project. Effective project charter helps to set up the nature and scope of the work. It describes preliminary frame work of project goal. Effective charter serves a valuable project management purpose.

2) Project charter is a document describes the purpose of given project. It is the primary document states initial requirement for the project, which helps to meet expectation of stake holders. It is an activity planning tool helps to set rights and privileges of everyone involved in project. So the project charter act as a contract between project stakeholders, contract is a binding agreement. The project initiator provides the project manager with solid understanding of project background, support and approval. The project manager is supposed to submit the project charter. Project charter is a consolidated document which contains approvals, statements and many documents.

3) Project charter different from a contract: a contract is a legally binding agreement. Project charter is prepared initially within the organization. A contract is a mutually agreed document with seller and buyer. But project charter is issued by project sponsor to manager. Project charter is not usually a legally binding agreement. Project charter is signed for project but a contract can be signed for project or operational work.

4) The project charter is created during project define process. There is no formula for project charter. A project charter can be either brief or as long as 50 pages. Lengthy project charters are difficult to read.

5) Usually the sponsor or initiator creates the charter along with project management team. Project manager is qualified to write a project charter because he knows the details to add in the project charter.

6) A project charter is valuable because it defines the role and responsibilities with in the project and all-in the project to strategic objectives of organization. Project charter helps the executives to see the business value of the project. An effective project charter helps to authorize the project manager to start the approved project.