VIDEO: Project Charters | A Definitive Guide

foreign project managers I'm Mackenzie and today we're covering another key document used in project management so far we've reviewed the racy and Daisy models which you can check out here if you haven't watched them already they're both great tools for assigning responsibilities and visualizing team dependencies but they're not ideal for laying out the potential benefits of the project itself that's what a project Charter is for but what is it exactly why is it important and what information does it contain also yes those are rhetorical questions because I already have all the answers you need a project Charter is a short document that explains the project in clear concise wording for high level management the purpose of a project Charter is to outline the entirety of projects to help teens quickly understand the goals tasks timelines and stakeholders it is the First Essential deliverable in any project as prescribed by the project management body of knowledge guide and other best practice standards the document provides key information about a project and also provides approval to the start of a project therefore it serves as a formal announcement that a newly approved project is about to commence on top of that it contains the appointment of the project manager who is of course extremely important the main reason every project needs a project Charter at the very start is that without it there is no proof or official document that an authorized project manager defined and presented a project and gained its approval from stakeholders to proceed a project Charter also provides several benefits such as building a shared understanding for the project empowering project leads gaining company-wide support alerting key stakeholders securing budgets and resources and clearly defining what success will look like there are six main components that make up a project Charter One the problem statement two a business case three a goal statement for the timeline five a scope and six team members each of these help Define the reasons for a project explains how it improves the business lists what steps are necessary to complete and identify stakeholders responsible for the project along with these components it's essential that the document should clarify the what who why and when of the Project's cost aspects and other related details in order to make sure all those questions are addressed the pmbok guide includes the following as vital sections which are project information business need problem or opportunity project objectives and benefits project organization high level scope high level time scale high level budget key assumptions possible risk and success criteria once you have the foundation laid out any individual in connection with the developing project should then view it speaking of there are two specific groups that are best served by the creation of a project Charter project teams and project sponsors four project teams a project Charter helps them by officially marking the beginning of a project outlining the development structure designating team leads and describing all the goals and potential complications that the team may encounter the document will also note all the project sponsors which could be one person and organization or many others along with that the charter can be used as proof of a Project's viability when finding other potential clients and sponsors and that's all the basics you need to know about project Charters if you would like to learn some tips for building one then I recommend reading this in-depth article but before you go be sure to click the like icon hit the Subscribe button and visit project dashmanagement.com for more PM Solutions thanks for watching

This transcript was generated automatically from the video's captions and may contain errors.