Originally published on May 6, 2020; updated on June 20, 2023
The articles of incorporation The project charter is a document that establishes the foundation and principles for the successful management of a project.
The Articles of Incorporation: The Starting Point of the Project
The project charter It is a fundamental document that establishes the rules and guidelines General guidelines for the planning, implementation, and monitoring of a project.
It is also known as project proposal or project initiation document, and its main objective is to clearly and concisely define and communicate the the project's vision and objectives, as well as the responsibilities and roles of those involved in its implementation.
It is prepared by the sponsor or project leader in collaboration with key stakeholders. In this article, we will follow the guidelines of the PMBoK (The Project Manager Institute's Guide to the Fundamentals of Project Management), which will help us explore its key points.
Project Charter: Inputs
After a project contract is signed, a project management plan must be developed, beginning with the firm of the Articles of Incorporation. This document will provide a common understanding for all parties and serve as a starting point for developing the plan.
The benefit is a clear starting point and well-defined project boundaries, as well as the creation of a formal registration of the project and the establishment of a direct process for senior management to formally approve and commit to the project.
Project Scope Statement
The Statement of Work (SOW) will establish the foundation for the project. It will outline the reasons for the project, its objectives, and possible approaches to achieving them, which, according to the PMBoK Guide, are divided into:
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Business Need: market demand, technological advances, and government or environmental regulations.
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Product Scope Description: characteristics of the product, service, or results that the project will be responsible for creating.
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Strategic Plan: the organization's strategic goals and objectives.
Business Case
With the project’s foundation in place, it is vital to understand how the business will be profitable. To that end, we will examine a series of factors that will determine its viability in terms of the required investment.
Agreements
It is necessary to reach certain agreements with the stakeholders involved in the project in order to define the initial goals of a project. These can take the form of:
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Contracts (external clients).
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Memorandums of Understanding (MOUs) that outline an agreement bilateral o multilateral between the parties, indicating their intention to pursue a common course of action.
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Service Level Agreements (SLAs).
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Verbal agreements, emails, or other written agreements.
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Environmental Factors Affecting the Company
It is necessary to document—with the aim of integrating them into the processes—all factors or regulations that may influence the Drafting of the Articles of Incorporationn:
Organizational Process Assets
The The company's experience and work practices, will be included in the articles of incorporation so that they may be taken into account as the project progresses.
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Standard organizational processes, policies, and process definitions.
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Templates (example: meeting minutes template).
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Historical information and a knowledge base of lessons learned.
Expert Opinion
In order to evaluate the information used to draft the project’s articles of incorporation, it is advisable to seek the input of any group or individual with specialized knowledge or training.
Data Flow Diagram to be developed in the Project Charter. Source: PMBOK Guide
Project Charter: Outputs
At this point, the following should be documented: Business needs and key project points Things to keep in mind for the comprehensive project management depending on the needs and the service—or outcome—that the project is intended to provide, such as:
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The purpose or rationale for the project.
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The project's measurable objectives and the associated success criteria.
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High-level requirements.
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Assumptions and restrictions.
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A high-level description of the project and its scope.
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High-level risks.
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Summary of the Milestone Schedule.
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Budget Summary.
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The list of interested parties.
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Project approval requirements.
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The assigned project manager, his or her responsibilities, and his or her level of authority.
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The name and level of authority of the sponsor or those who authorize the project's articles of incorporation.
Drafted on articles of incorporation, the next document for the project to be developed will be The Project Management Plan, which will cover the process of defining, preparing, and coordinating all the sub-plans and incorporating them into a comprehensive plan for project management—but that will be the subject of another post.
Structure of the Project Charter
It is important to note that the structure of a project charter may vary depending on the organization and the nature of the project in question. Therefore, it is advisable to adapt this structure to the specific needs of your project. Below is an example:
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Project Title: Provide a descriptive name to identify the project.
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Executive Summary: Provides a concise description of the project, its purpose, and the expected benefits.
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Justification: Explain the reasons and needs that justify carrying out the project.
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Project Objectives: List the specific objectives the project aims to achieve.
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Project Scope: Describe the scope and boundaries of the project, specifying what is included and what is excluded.
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Expected Results: Describe the final products or deliverables expected to result from the project.
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Requirements: Lists the key requirements that must be met for the project to be considered a success.
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Stakeholders: Identify the project's key stakeholders, including sponsors, clients, end users, and other relevant parties.
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Project Organization: Describe the project's organizational structure, including the project team and the roles and responsibilities of the team members.
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Schedule: Provides an overview of the project's main phases and activities, along with their planned start and end dates.
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Budget: Estimate the financial resources needed to carry out the project, including costs for personnel, materials, equipment, and other relevant expenses.
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Risks: Identify the main risks that could affect the project and propose strategies to mitigate them.
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Approvals: Identifies the individuals or entities responsible for approving the project's articles of incorporation.
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Appendices: Attach any relevant additional information to support the articles of incorporation, such as diagrams, feasibility studies, and other documents.
In conclusion, we can say that the project charter is an important document that formally establishes the existence and fundamental details of a project. This document is typically drafted at the start of the project and serves as the basis for its planning and execution.
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