ArticlesBlog

How to write a Project Charter – Business Plan for Projects 【Excel Template】

How to write a Project Charter – Business Plan for Projects 【Excel Template】


Hi, this is Mike Negami, Lean Sigma Black
Belt. In this episode, I would like to talk in detail about how to write a Project Charter
in the Define Phase of a Lean Sigma project. Why do you have to do this project? What will
you do in the project? What are its purpose and goal? By when will you complete it? Who
will manage the project? Writing all of these clarifies your project, doesn’t it?
You should write all those down on paper. You will review this paper when you make a
plan, when you get stuck, or when you want to check whether you’ve achieved all the
objectives before the end of the project. It is not exaggeration to say that this one
piece of paper is the most important document among all the project documents.
If you proceed with your project without the completion of this paper, you may lose the
original purpose, take it beyond its budget or extend the completion date. In the worst
case, your project will fail. You may not need to make it if a project will
end in a week, but the longer the project term is, the better it is to write a Project
Charter. Here, I am launching a fictitious project.
I’ll use this project to explain how to use each Lean Sigma tool from now on. What
kind of project is it? You can find that out just by reading the Project Charter.
By the way, this project charter template is considerably more simplified than the usual
ones. It is good for small-to-mid-scale projects. Since it has
explanations in each section, it’s very easy to write.
First, there is the ‘Project Name’ section. Because everyone will use this name, use an
easy name that reflects the contents of the project.
In the ‘Problem Statement’ section, write why this project has become necessary, which
processes have what kind of problems and who has encountered those problems.
By the way, you may want a new line in one cell of the spreadsheet. If so, put your cursor
on the location, and while holding down the ‘Alt’ key, press the ‘Enter’ key on
your keyboard. It will make a new line in the cell. The next section is the ‘Business Case’.
Write what the project does and how the project aligns to the company strategy and direction.
The next section is the ‘Project Scope’. Content changes, specification changes and
adding minor functions are very common occurrences in projects. These are the biggest cause of
going over budget or completion delays. In order to prevent this problem, define ‘In
Scope’ and ‘Out of Scope’ at the beginning. The next section is the ‘Project Goal Statement’.
Write what its purpose and goal are, who is the biggest customer of the target process
and who will evaluate the success or failure of this project.
Next is the ‘Goal Metrics’ section. Specify the definition of achieving the goal mentioned
in the previous section. Which numeric factor defines the project success and what are its
success and failure measurements. Specify when the project has to be finished by and
what is its budget, as well. The last section is the ‘Project Team’.
The leader and team members basically have an obligation to attend project meetings.
Subject matter experts are people who have wisdom and knowledge in respect to this project.
That is a supportive role and you can request that they attend meetings when needed.
The project begins when you’ve completed this charter and the person who has authority
has approved it. Just give this paper to stakeholders who don’t know about this project at all.
It would then be self-explanatory to them. It also has the effect of making the project
public. Making a charter is very effective in many areas.
You could probably write a Project Charter within 30 minutes. After you get used to doing
it, you can do it much faster. Please make it a habit to start your project by making
a project charter. By the way, you can download the Project Charter
template I introduced today from my blog site, econoshift.com. Thank you for viewing. If
you like my videos, please click the Subscribe button. Thanks.

Comments (3)

  1. thank you very much for sharing the video and the excel sheet

  2. Thanks very much

  3. Sir. Your videos are very powerful and different than others ..
    Prasad Deore..
    Lead auditor ISO 9001. SS GB India

Comment here