What is a project charter? How to write one + template

Getting started on a new project or initiative can be exciting. But what about the step right before that, when you need to get your project approved?

The project pitching and approval process can feel like a black box if you've never done it before. A project charter helps you gather and present the right information to stakeholders. In this guide, you'll learn what a project charter is, the key elements to include, and how to write one that gets your project the green light.

What is a project charter?

A project charter is a formal document used during project initiation that outlines your project's objectives, scope, and key stakeholders to secure approval before work begins. It serves as a short, high-level summary that helps decision-makers understand the project's value and gives the project manager authority to move forward.

A project charter is one of many project planning materials you can create. Here's how it compares to other project planning elements:

Why do you need a project charter?

A project charter does more than get your project approved. It's a foundational tool that sets your team up for success from the very beginning. By creating a clear and concise charter, you can:

• Provide clarity and alignment. A charter ensures that every stakeholder, from the project team to executive leadership, shares a common understanding of the project's purpose and scope.

• Prevent scope creep. With defined boundaries, your charter acts as a reference point to keep the project focused on its original objectives, preventing extra work from derailing your timeline.

• Secure stakeholder buy-in. A well-crafted charter serves as an internal marketing document, building confidence and enthusiasm for your project across the organization.

• Authorize the project. The charter formally recognizes the project's existence and grants the project manager the authority to use organizational resources to achieve its goals.

Key elements of a project charter

While every project is unique, a strong project charter includes several essential elements to provide a complete overview. Think of these as the building blocks for getting your project approved and off to a good start.

• Project purpose and objectives: Explain why the project is important and what you plan to achieve. This is the core of your pitch.

• Scope: Clearly define the project's boundaries, including what is and isn't part of the work.

• Success criteria: Outline what success looks like. These are the metrics you'll use to determine if the project has met its goals.

• Key stakeholders and roles: Document the main people involved using a stakeholder register, including the project sponsor, project manager, and team members.

• High-level timeline and milestones: Provide an estimated schedule with key dates and major project milestones.

• Budget estimate: Include a summary of the financial resources required for the project.

• Risks and assumptions: Identify potential challenges or dependencies that could affect the project's outcome.

Do you need a project charter?

There are a variety of project planning tools, and a project charter isn't always the best one for the job. Here's when to create one, and when you might be better off creating something else.

• Create a project charterto pitch and get approval for a project. A project charter gives stakeholders a clear sense of your project objectives, scope, and responsibilities. Key stakeholders can use the project charter to approve a project or suggest changes.

• Create a business case if your project represents a significant business investment. A business case includes additional information and documentation, including the project's return on investment and anyrelevant project risks.

• Create a project plan if your project has been approved. A project plan will build on your project charter to provide additional information, like the project timeline or key project milestones.

• Create a project brief to summarize the key high-level details of your project plan.

• Create an executive summary to provide a concise overview of your document to executive stakeholders.

• Create a project roadmap if you want to view a high-level timeline of your project in a Gantt chart.

How to create a project charter

In a project charter, you'll share project details with key stakeholders to get approval to kick off your project. There are three main elements of the project charter.

1. The "why"

To begin your project charter, share your project objectives and project purpose. In this section, you should outline why this project is important and what the key objectives are for the end of the project. Make sure your project's purpose clearly explains why it's important to work on it and how it will support your company's goals.

You should also clarify your project objectives, which are the specific deliverables or assets you plan to achieve by the end of the project. To create strong objectives, follow the SMART method and make sure your objectives are:

• Specific

• Measurable

• Achievable

• Realistic

• Time-bound

2. The "what"

The second key element in your project charter is the project scope. Your project scope statement defines exactly what is and isn't part of the project. When you draft a project scope, you're setting boundaries and, more importantly, outlining what you won't do during the project timeline.

As you create your project charter, the most important part of explaining scope is outlining the ideal project budget. When presenting your budget, be sure to include:

• Total estimated cost: The overall financial investment required

• Resource allocation: How the budget will be distributed across people, tools, and materials

• Key assumptions: Any financial dependencies or conditions

3. The "who"

In the final section of your project charter, you should explain who will be working on the project. This includes any key project stakeholders, executive stakeholders, project sponsors, and the general project team. If you haven't already, draft a brief resource management plan to outline how resources will be allocated during the project.

Project charter examples

Seeing a project charter in action can help you understand how to structure your own. Below is an example of a marketing campaign project charter that includes the key elements we've discussed.

Notice how this example:

• Keeps it concise: All essential information fits on a single page

• Defines clear objectives: Specific goals are easy to identify

• Identifies stakeholders: Roles and responsibilities are clearly outlined

Project charter template

When you're ready to get started, follow this easy-to-use template to create your next project charter.

Project name

Name your project. Make sure this is descriptive enough that most people will understand what you're working on.

Project manager

Who is the point of contact for this project?

Last revision date

Your project charter is a living document. Including the last revision date can be helpful for team members who are frequently checking back on the charter.

Project purpose

Why are you working on this project?

Project objectives

What deliverables and assets do you plan to achieve by the end of the project?

Project scope

What are the boundaries of your project deliverables? Which initiatives are not included in the project?

Project team and resources

Who is working on this project? Which resources (e.g., people, tools, and budget) are available for this work?

Stakeholders and approvers

Who are the project stakeholders? Who needs to approve the project charter or any project deliverables?

Project charter best practices

Creating an effective project charter is about balancing detail with clarity. Follow these best practices to ensure your charter hits the mark and gets you the green light for your project.

• Keep it concise. A project charter should be a high-level summary, not a detailed project plan. Aim for one to two pages to keep it easy for stakeholders to review and approve.

• Collaborate with stakeholders. Involve key stakeholders in the creation process using a stakeholder engagement plan. This builds early buy-in and ensures everyone's perspectives are considered.

• Focus on clarity. Use simple, direct language and avoid jargon. The goal is for anyone to be able to read the charter and understand the project's purpose and value.

• Make it a living document. While the charter sets the initial direction, it can be updated if major project parameters change. Always note the revision date to keep everyone aligned.

From project charter to project success

Once your project charter has been approved, you can schedule your project kickoff meeting and move forward with planning. As you create additional project planning documents and get started with project management, make sure you store all your project details in a centralized tool that everyone can access.

Naturally, we think Asana is the best tool for the job. With Asana, you can manage team projects and tasks to stay in sync and hit your deadlines. Get started today and learn more about the benefits of project management.

Frequently asked questions about project charters