project charter
A project charter is a crucial document that outlines the key elements of a project. A project plan will be developed and submitted to the client for formal authorization. It's typically created at the beginning of a project and acts as a foundation for project planning and execution. It will include: scope statement, schedule, cost estimate, budget, provisions for scope, resource, communications, quality, risk, procurement, and stakeholder management. It serves as an official agreement and guide for the project team and stakeholders. Creating a detailed and accurate project charter is fundamental for success
- Provides a clear direction for the project
- Aligns stakeholders around common goals and objectives
- Prevents misunderstandings or miscommunication
- Serves as a reference point throughout the project lifecycle
- It helps ensure that the project stays on track, within budget, and meets its intended objectives.
1. Project Title
- A concise name for the project.
2. Project Purpose
The project charter defines why the project is being undertaken, the business objectives and goals, and what it aims to achieve.
3. Objectives
- Clear, measurable goals that the project aims to achieve, such as user acquisition targets or revenue milestones.
4. Scope
- An outline of the boundaries in the project, what is included and excluded. It relates to High-Level Requirements and deliverables.
5. Stakeholders
- Identification of important individuals and groups involved in the project, including their roles and responsibilities.
6. Roles and Responsibilities
- It defines the roles and responsibilities of key team members and stakeholders. Key stakeholders, including the project sponsor, project manager, and key team members.
7. Deliverables
- Specific outputs that the project is expected to produce, such as prototypes, final game releases, or updates.
8. High-level Requirements
- The charter provides an overview of the main project requirements and deliverables.
9. Timeline
- A high-level schedule that includes key milestones and deadlines.
10. Budget
- An estimate of the financial resources required for the project, including development costs, marketing, and operational expenses.
10. Risks and Assumptions
- Potential challenges and uncertainties that could impact the project, along with the assumptions made during planning.
11. Constraints
- Boundaries
12. Success Criteria
- The charter defines how the project's success will be measured.
13. Approval and Sign-off
- A section for stakeholders to approve the charter, indicating their commitment to the project.
Importance in a Startup Context
In a tech startup, the project charter helps align the team on vision and strategy, ensures effective communication among stakeholders, and provides a framework for tracking progress and making decisions throughout the project lifecycle. It can be particularly crucial in fast-paced environments where clarity and focus are essential for success.
That is a very common point of confusion when drafting a Project Charter, and you are right to scrutinize that redundancy! Efficiently defining these sections is key to running an agile firm.
No, deliverables and high-level requirements are absolutely not the same.
While they are closely related and inform one another, confusing them in the Project Charter can lead to scope creep and misunderstandings later in the project lifecycle.
Here is how to differentiate the three terms—Scope, High-Level Requirements, and Deliverables—to eliminate redundancy in your Project Charter:
🎯 Differentiating Project Charter Components
| Component | What It Is | Primary Question it Answers | Format/Example (Digital Marketing Project) |
|---|---|---|---|
| Project Scope | The boundaries of the work—what is included in the project and, crucially, what is excluded. | "Where does this project begin and end?" | "Design and develop a new B2B lead generation website using the latest React framework, integrating with the client’s existing Salesforce instance. Out of Scope: Content creation for blog posts, maintenance after 90 days." |
| High-Level Requirements | The overarching business needs or capabilities the final product must possess to be considered a success. These are typically stated from the business or user perspective. | "What must the final product do for the operations/user?" | "The website must achieve a 5% conversion rate for white paper downloads. It must be fully responsive and load within 3 seconds on a mobile device." |
| Deliverables | The tangible, verifiable, and specific outputs or artifacts the project team will hand over to the client. | "What exactly will be built and handed over?" | "A deployed, production-ready React front-end. A detailed system architecture diagram. A final 'Go-Live' training session for the client's internal team." |
The Relationship Explained
Think of it as a funnel:
- Scope sets the container (the boundaries).
- High-Level Requirements set the targets (what success looks like inside the container).
- Deliverables are the artifacts created to meet those targets.
Example Analogy: Building a Custom Desk
- Scope: Build a desk for a home office, including assembly and delivery. Excludes the chair.
- High-Level Requirement: The desk must support a weight of 200 lbs and fit the $15 \ sq. ft.$ office corner.
- Deliverable: The finished desk, an assembly manual, and a signed delivery receipt.
How to Reduce Redundancy
To ensure a clean and effective Project Charter:
- Scope Section: Focus purely on boundaries. Use "In-Scope" and "Out-of-Scope" bullet points. Avoid mentioning requirements or specific outputs here.
- High-Level Requirements Section: Focus on measurable outcomes and capabilities (e.g., performance, security, availability). These usually start with "The system must..." or "The user must be able to...".
- Deliverables Section: List only the artifacts (files, software, hardware, documents, training) that will be handed over. These are nouns.
By strictly adhering to these distinctions, you ensure that your Project Charter is a clear, single source of truth that avoids conflicting definitions before the project execution even begins.
That's a fantastic and proactive move. As a leader of an agile firm, standardizing your post-sales process—especially when managing milestone-based or monthly payments—is critical for predictability, financial health, and legal clarity.
You've already done the right thing by putting the Work Breakdown Structure (WBS) into the contract, as the WBS's lowest levels (Work Packages) often equate directly to your milestone Deliverables.
Here is how to combine the WBS and Project Charter elements to enhance your legal agreements and sales process management for future clients:
🛠️ Step 1: Formalize the WBS into Contractual Deliverables
Your WBS is an internal project tool, but its integration into the contract makes it a legally binding Statement of Work (SOW).
| WBS Element | Contract/Charter Function | Management Tip |
|---|---|---|
| Major WBS Headers (e.g., "Phase 1: Discovery," "Phase 2: Wix Build") | Project Phases/Scope: Defines the high-level boundaries and milestones. | Use these to schedule mandatory Client Review & Approval Gates. |
| Lowest WBS Level (Work Packages, e.g., "Homepage Design," "Contact Form Setup") | Contractual Deliverables: These are the verifiable outputs tied directly to payment. | Ensure each Work Package is an unambiguous, measurable noun. E.g., not "Work on contact page," but "Final Contact Page Built and Tested." |
| WBS Effort/Cost | Payment Schedule: Connects the cost/value of a WBS segment to a Monthly or Milestone Payment amount. | Define the "Completion Criteria" for each payment milestone (e.g., "Payment X is due upon Client Sign-off of Final Design Mockups."). |
The Legal Agreement Upgrade
Instead of just copying the WBS, integrate it under a section like "Schedule of Deliverables and Payment Milestones." This turns your project management tool into a legal compliance framework.
🚀 Step 2: Incorporate Project Charter Elements into the Agreement
The Project Charter provides the governance and context that your contract often lacks. Integrating these elements provides crucial protection against scope creep and stakeholder misalignment.
A. Business Case & High-Level Requirements
In a new section, include the following:
- Project Goal/Business Objective: What is the client's ultimate ROI? (e.g., "To increase lead generation from organic search by 30% within 6 months of Go-Live.")
- High-Level Requirements (Success Criteria): Reiterate the measurable goals. This links your WBS/Deliverables back to the client's commercial success. Example: "Website must achieve a Google PageSpeed Score of 90+ on mobile."
B. Project Scope (Crucial for Protection)
This is the most critical element to pull from a charter. Your contract must contain explicit In-Scope and Out-of-Scope statements:
| Project Charter Element | Contractual Purpose | Example (Wix Project) |
|---|---|---|
| In-Scope Items | What the fee covers based on the WBS. | Development of Wix site structure, configuration of 3rd party plugins, initial SEO setup. |
| Out-of-Scope Items | Legal protection against creep. | Purchase of premium Wix apps, ongoing content updates after launch, custom code integration (Velo), or graphic design for logos/branding. |
C. Roles, Responsibilities, and Authority
Explicitly name the client's Project Sponsor/Decision Maker in the contract.
- Contract Term: "Client agrees that [Client Contact Name] is the sole authorized party for all Deliverable Sign-offs and Scope Change Approvals."
📈 Step 3: Implement Effective Sales Process Management
Your shift to monthly/milestone payments requires a robust process to ensure cash flow and client satisfaction.
1. Productize Your Offerings
Since you are a front-end firm often doing digital marketing studio services, structure your services into tiered "Packages" (e.g., "Wix Pro Build," "Wix Marketing Launch").
- This defines the WBS before the sale, making quotes faster and negotiations cleaner.
- Pricing: Align the monthly payments directly with the delivery of specific, measurable monthly deliverables.
2. Standardize Change Control
The biggest threat to a milestone contract is unauthorized scope change.
- Process: Any request falling under Out-of-Scope triggers a formal, documented Change Request (CR).
- The Contract/Charter must specify: No work on a CR begins until the client approves the CR's associated cost and timeline adjustment, which will then be added as an addendum to the legal agreement.
3. Automate Payment Tracking and Reporting
- Use a CRM or Project Management tool (like Jira, Asana, or a specialized agency tool) to track the WBS completion status.
- Tie Invoicing to Completion: Automate an invoice to be generated immediately upon receiving the client's formal email approval of a milestone deliverable.
- Monthly Report: Provide a simple, brief report (the "Ownership Effect") showing what was completed (WBS items) and what value it provided before sending the monthly invoice. This justifies the payment and increases trust.
By combining the legal certainty of a Project Charter's scope and objectives with the actionable detail of the WBS/Milestones, you create a powerful, repeatable, and legally defensible sales management process.
Would you like me to suggest a template structure for a "Milestone Approval & Payment" clause you can use in your contracts?