In this video, I answer the question, what is a Project Charter? – or Project Mandate?
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Project Charter / Project Mandate
A Project Charter – also known as a Project Mandate – is a document of governance. Its purpose is to formally authorize a project.
A project initiator or sponsor issues a Project Charter to give the project manager the authority to apply organizational time, funds, and other resources to project activities. It triggers the start-up of the project.
It’s easy to confuse a project charter with other similar documents, like:
- Project Initiation
- Project Definition
- Scoping Document
In truth, there are no formal, standard definitions of these documents, that are universal. What matters is the nature of the document, and where they sit in the project life cycle.
For the sake of context, I will describe three types of documents, at three stages. We will use the standard OnlinePMCourses project life cycle model:
- Definition
- Planning
- Delivery
- Closure
To kick the project off, ahead of the start of the Definition Stage, we have a Project Charter, or Project Mandate.
The Definition Stage
During the Definition stage, we work to define what the project is and what it is not. We refine the outline information in the project charter and add more detail, to create a Project Definition Document or Scoping Document, for example.
If this is approved, we move into the Planning Stage and develop detailed specifications and plans. These are documented in the Project Planning Documents.
In PRINCE2, this is called the Project Initiation Document, or PID. But I really do not like this term, because I think initiation better refers to the Definition Stage.
What Goes into a Project Charter / Project Mandate
So, a project charter is a reference document that sets out three main things.
- The essence of the project
Its goals, objectives and broad scope. - The reason for the project exist
The need it meets or the benefits it will deliver. - The ‘price’ of the project
An indication of the time, costs, and risks involved if we commit to it.
Often, it will also identify who the primary internal sponsor will be, for the project, if it goes ahead.
Different sources and different organizations set out their own lists of information a project charter should contain. My view is that it should be the bare minimum to meet the governance requirements of the sponsoring organization.
Content List
However, here is a list of the various elements a project charter might contain:
- Project Purpose – drivers or benefits
- Project goal and objectives
- High-level project description, requirements, and deliverables
- Order of magnitude cost estimate and contingencies
- Overall project risk
- A project justification or business case
- Key constraints and dependencies
- Key milestones or timetable
- Key stakeholder list
- Governance requirements, including approval, completion, and cancellation.
- Reporting requirements
- Name and authority of the sponsor
- Name and authority of the project manager
If this list looks rather like what you’d expect to create as a Project Definition Document, that’s not a coincidence. What we do in the Definition Stage is test, refine, and add to the information in the Project Charter.
Summary: Project Charter / Project Mandate
So, a Project Charter is a formal document that authorizes the start of a project. It provides the project manager with the authority to allocate resources and manage the project activities. It is typically created before any substantial work is done and, as well as being a governance tool, it also communicates intent to stakeholders and sets a clear direction for the project team that will come on board.
What Kit Does a Project Manager Need?
I asked Project Managers in a couple of forums what material things you need to have, to do your job as a Project Manager. They responded magnificently. I compiled their answers into a Kit list. I added my own.
Check out the Kit a Project Manager needs
Note that the links are affiliated.
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