Taking Advantage of the Project Charter – Agile Edition
By: Hajime Estanislao, PMP; Editor: Geram Lompon; Reviewed by: Alvin Villanueva, PMP
Are you struggling to maintain alignment with your team and stakeholders on the vision and scope of your projects? Confusion, scope creep, and miscommunication derail even the most well-intentioned efforts. Without a clear starting point, how can you ensure everyone is on the same page?
What if you had a tool to set your project on a path to success, providing clarity, alignment, and focus? Whether managing traditional projects with strict deadlines or dynamic Agile initiatives, a project charter can transform how your team delivers results.
In Agile, a project charter is a living document guiding teams through the process, outlining project objectives and deliverables while allowing for flexibility and adaptation throughout the project lifecycle.
Imagine starting every project with a shared understanding of its goals, scope, and success criteria. Picture a team working cohesively and confident in every decision that aligns with the overall vision. With the right project charter, you lay the foundation for execution and improved outcomes—no matter the methodology.
Do not let misalignment and unclear goals become roadblocks to your projects. This article will provide details and techniques for developing project charters for traditional and Agile approaches.
What is a Project Charter?
A project charter is a foundational document outlining the purpose, objectives, scope, and project stakeholders. It serves as an official authorization to start the project; it provides a high-level framework for decision-making, ensuring everyone involved has a shared understanding of the project’s goals and constraints.
The charter bridges the gap between the project sponsor, stakeholders, and team by defining the measurement of success.
How is a Project Charter Created and Utilized in Tandem with Agile Methodology?
In Agile projects, the charter is more flexible and concise than traditional project charters. Its creation involves collaboration between the Product Owner, Scrum Master, and stakeholders during an initial kickoff or Sprint 0 (in the case of Scrum Framework).
An agile team charter outlines the team’s goals, values, and expectations, creating pillars for optimal project success. Unlike traditional projects, where the charter is detailed upfront and static, the Agile project charter evolves to accommodate iterative development and continuous feedback. The project charter communicates details that remain supportive of the project goal.
Steps to Create an Agile Project Charter:
- Collaborative Initiation begins with a kickoff meeting involving stakeholders, including the designated team lead, to define the project vision, objectives, and scope.
- Iterative approach with a focus on high-level guidance rather than exhaustive details, ensuring adaptability as the project progresses.
- Vital components include the vision, objectives, scope, success criteria, and team roles.
- Alignment with backlogs reflecting deliverables and priorities.
- Review and adapt by revisiting the charter regularly during retrospectives or milestone reviews to ensure relevance.
Utilization of the Charter in Agile Projects:
- Acts as a living document to align the Agile team and stakeholders.
- Provides a high-level summary of goals and expectations without limiting iterative flexibility.
- Serves as a reference point for evaluating success at the end of each sprint or increment.
Common (Traditional) Project Charter vs Agile Project Charter
| Aspect | Traditional Project Charter | Agile Project Charter |
| Focus | Detailed and static documentation | Agile project charter focuses on the high-level and flexible framework |
| Creation | Created by the project sponsor or manager | Created collaboratively by the Agile team and stakeholders |
| Purpose | Authorizes the project and defines fixed deliverables | Aligns stakeholders and provides a vision for iterative delivery |
| Detail Level | Comprehensive and exhaustive | Concise and focused on essentials |
| Flexibility | Static, with formal change processes required for updates | Dynamic, evolving alongside the project |
| Stakeholder Involvement | Limited to the sponsor and project manager | Collaborative, involving all key stakeholders and team members |
| Tracking and Monitoring | Lays out a fixed plan for tracking progress | Progress tracked via backlogs, burndown charts, and retrospectives |
| Risk Management | Formal upfront risk analysis | Ongoing risk assessment integrated into sprints and retrospectives |
Why Understanding the Difference Matters
A traditional project charter might feel restrictive in dynamic environments where requirements change frequently. By contrast, the Agile project charter aligns better with iterative delivery, empowering teams to adapt to evolving priorities while staying anchored to a shared vision.
Reasons You Need to Know the Difference Between Project Charters
Understanding the distinction between traditional and Agile project charters is a pillar for aligning
Why This Skill Is Important:
- Help you choose the framework for the project’s nature and complexity.
- Improves stakeholder collaboration by tailoring the charter to their expectations.
- Ensures the project team has a shared understanding of goals, scope, and success criteria.
- Enhances your ability to adapt to change in dynamic environments.
- Bridges the gap between traditional project managers and Agile practitioners, enabling better cross-functional work.
- Streamlines communication by using a format aligned with the workflow.
- Supports effective risk management by integrating iterative reviews into the process.
- Promotes better decision-making by providing the appropriate level of detail for each scenario.
Considerations For Successfully Establishing the Project Charter
When establishing a project charter, it is essential to tailor the document to the chosen methodology and the organization’s culture. Avoid creating an overly rigid or vague charter; strike a balance that provides clarity while allowing room for adjustments. For Agile projects, focus on collaboration during the charter creation process, including input from stakeholders and team members. It builds alignment and promotes a sense of ownership.
Consider the level of detail needed for your specific project. Traditional charters often require exhaustive documentation to secure approvals and funding. In contrast, Agile charters prioritize high-level guidance, aligning with the iterative nature of Agile processes. Understand your project’s complexity and organizational requirements to determine the appropriate depth and structure.
Remember that the project charter is a living document, especially in Agile. Regularly review and adapt the charter during project milestones or sprint reviews. It remains relevant and supports the project’s vision, objectives, and evolving priorities. Establishing this habit helps maintain clarity and alignment as the project progresses.
Parts and Features of a Project Charter
A project charter is a foundational document that defines a project’s purpose, scope, and framework for execution. Below is a sample template for a project charter, including descriptions of each part, examples for traditional and Agile project charters, and an explanation of why a project charter is a relevant tool.
Sample Project Charter Template
| Section | Description | Example (Traditional PM) | Example (Agile) |
| Project Title | The name of the project. | “Customer Relationship Management Upgrade” | “MVP Development for E-Commerce Platform” |
| Project Sponsor | The individual or group funding and supporting the project. | “VP of Sales and Marketing” | “Product Owner and Executive Stakeholder” |
| Project Manager/Lead | The designated leader responsible for project execution. | “John Doe, Project Manager” | “Jane Smith, Scrum Master” |
| Start and End Dates | Planned project timeline. | “Start: January 1, 2025; End: June 30, 2025” | “Sprints: Start: Sprint 1, January 2025; Release: June 2025” |
| Project Vision | A high-level statement of the project’s purpose and expected outcomes. | “Upgrade CRM to enhance sales tracking and reporting.” | “Develop a scalable MVP for rapid deployment in Q2.” |
| Business Case | The justification for undertaking the project, including expected benefits. | “Improve sales productivity by 20% through enhanced tools.” | “Achieve faster time-to-market for customer-centric solutions.” |
| Project Objectives | Specific, measurable goals for the project. | “Reduce customer churn by 15%; streamline lead tracking.” | “Deliver prioritized features: user authentication, cart system.” |
| Scope | Defines what is included and excluded from the project. | “In-Scope: CRM upgrade; Out-of-Scope: ERP systems integration.” | “In-Scope: MVP core features; Out-of-Scope: Post-release updates.” |
| Success Criteria | Metrics are used to determine project success. | “Completion within budget and timeline, with 95% uptime.” | “Sprint goals met with 90% backlog items completed per sprint.” |
| Key Stakeholders | Individuals or groups impacted by the project. | “Sales team, IT department, and customer support.” | “Product Owner, Agile team, and end users.” |
| Project Team Members | Roles and responsibilities of project participants. | “Project Manager, developers, testers, and analysts.” | “Scrum Master, Product Owner, and the cross-functional developer.” |
| Risks and Assumptions | Key risks, mitigation strategies, and assumptions made during planning. | “Risk: Data migration issues; Assumption: Vendor availability.” | “Risk: Feature prioritization changes; Assumption: Regular stakeholder feedback.” |
| Dependencies | External factors or tasks that may impact the project. | “Dependency: Vendor delivery of CRM modules.” | “Dependency: Completion of API integrations by Team B.” |
| Estimated Budget | High-level cost estimate for the project. | “$250,000 for software, training, and support.” | “$100,000 for team resources and testing infrastructure.” |
| Communication Plan | Outlines how stakeholders will be kept informed about the project’s progress. | “Weekly status meetings; monthly reports to sponsor.” | “Daily standups; sprint reviews; updates in Confluence.” |
| Milestones | Key phases or deliverables in the project timeline. | “Design complete: February 2025; Testing complete: May 2025.” | “Sprint 1: Login module; Sprint 2: Shopping cart integration.” |
| Approval Signatures | Final authorization to proceed with the project. | “Signed by VP of Operations on January 1, 2025.” | “Product Owner approval during Sprint 0.” |
Why a Project Charter is Required and Important
- The project charter promotes the alignment of stakeholders, development teams, and the project team with a shared understanding of the project’s vision, goals, and scope.
- Authorization: Provides formal approval to initiate the project, ensuring organizational buy-in.
- Clarity: Defines what success looks like, including deliverables, timelines, and roles.
- Flexibility in Agile offers high-level guidance while allowing for iterative adjustments as the project progresses.
- Foundation for Communication: Serves as a reference document for addressing stakeholder questions and managing expectations.
How a Project Charter Differs from Project Tracking Software
| Aspect | Project Charter | Project Tracking Software |
| Purpose | Defines the “what” and “why” of the project. | Manages the “how” and “when” of project tasks and progress. |
| Focus | The focus is high-level framework for scope, objectives, and success criteria. | Task assignments, deadlines, and resource utilization. |
| Adaptability | Evolves with the project in Agile, static in traditional projects. | Updates dynamically as tasks are completed or modified. |
| Format | A concise, standalone document. | Interactive dashboards and real-time updates. |
| Examples | “Project Vision: Enhance customer retention by 20%.” | “Task: Implement authentication module; Due Date: Jan 15.” |
| Usage | Project charters are used during initiation and revisited for alignment. | Used throughout execution for tracking and adjustments. |
Agile Project Charter Fundamentals
Unlike traditional project charters, which are often static, the Agile project charter is flexible and adaptable, allowing for changes and pivots as the project progresses. This adaptability is a cornerstone in Agile projects, where the expectation is iterative development and continuous feedback. The Agile project charter ensures stakeholders are aligned and working towards the same goals, providing a high-level framework that supports iterative delivery and improvement.
Key Elements of an Agile Project Charter
An Agile project charter typically includes the following elements:
- Executive Summary: A brief overview of the project’s objectives and scope, providing a snapshot of the project’s purpose and expected outcomes.
- Scope Statement: A detailed description of the project’s included and excluded deliverables, ensuring clarity and focus.
- Assumptions: A list of assumptions made about the project, such as resource availability, timelines, and stakeholder engagement.
- Deliverables: A list of the project’s deliverables, including products, services, and outcomes that the project aims to achieve.
- Project Milestones : Key milestones and deadlines marking significant points in the project timeline.
- Stakeholders: A list of stakeholders, including their roles and responsibilities, ensuring everyone knows their part in the project.
- Team Members: A list of team members, including their roles and responsibilities, fostering a sense of ownership and accountability.
- Procurements: A list of procurements, including resources, tools, and equipment needed for the project.
- Project Resources: A list of project resources, including budget, personnel, and equipment, ensuring all necessary resources are accounted for.
- Communication Plan: A plan for communication among team members, stakeholders, and sponsors, ensuring information flow.
- Risks : A list of potential risks and mitigation strategies, helping the team to manage challenges.
Vision and Mission Statement
A vision and mission statement are components of an Agile project charter. The vision statement outlines the project’s long-term goals, providing a clear direction for the project team. It serves as an inspirational guide, helping team members understand the broader impact of their work. The mission statement defines the project’s purpose and objectives, offering a concrete roadmap for achieving the vision. These statements make everyone on the project team work towards the same goals, building alignment and cohesion.
Project Scope and Objectives
The project scope and objectives are components of an Agile project charter. The project scope defines what is included and excluded from the project, providing boundaries and focus. It helps prevent scope creep and makes the project team focused on important tasks. The objectives outline the project’s specific goals and deliverables, offering measurable targets the team can work towards. By defining the project scope and objectives, the Agile project charter provides a foundation for the project, making team members align and perform with the same goals in mind.
Wrapping Up: A Shared Understanding
A project charter is more than just a document – it is the foundation for every project. Whether managing a traditional project with fixed deliverables or navigating Agile iterations, a well-crafted project charter aligns stakeholders, defines objectives, and sets clear expectations. It involves a shared vision, creating a framework for collaboration and decision-making.
Regardless of methodology, project charters are a tool for achieving outcomes. Incorporate them into your practice to ensure your projects remain focused, adaptable, and aligned with their goals.
References:
Bindiya, T. (2022, July). What is an epic in Agile ? Complete guide with examples. LogRocket. Retrieved from https://blog.logrocket.com
PMI. (2021). A guide to the
Schwaber, K., & Sutherland, J. (2020). The Scrum Guide™: The definitive guide to Scrum: The rules of the game. Scrum.org. Retrieved from https://scrumguides.org
