Projects can often be difficult to manage if you do not have a clear understanding of the differences between a project plan and a project charter. A project plan is a document that details the entire life cycle of a project; this document contains the project timeline, budget, and deliverables. A project charter is a document that defines the scope, objectives, and stakeholders of a project. The two documents are closely related and should be used in tandem to ensure project success.
Developing a project plan and a project charter can be a daunting task. It is important to consider the purpose, content, and differences between a project plan and project charter. In this blog post, we will look at what a project plan and project charter are, the differences between them, and how they can be used together to ensure successful project management. By exploring these elements, project managers can ensure their project is managed effectively and efficiently.
Key functions of a project charter
A project charter serves as a sales document, persuading the organization’s stakeholders to support the proposed project. It typically outlines the following requirements for presentation to upper management, a board of directors, or other significant company stakeholders as a one-page document:
The project manager’s first duty is to create the project plan after the organization’s stakeholders approve the project charter.
What’s the difference between a project charter vs. a project plan?
A project charter is a succinct official record of a planned project that is also referred to as a project definition document. It provides an overview of the project’s scope, including its objectives, goals, stakeholders, and supporting teams. A project charter is used by an organization to secure stakeholder approval before a project can start. The project charter may be approved by the company’s stakeholders, indicating that the scope satisfies the group’s needs and expectations.
A project plan, also referred to as a work plan, describes the project’s goals and scope in accordance with the project charter. The project plan outlines the precise guidelines for carrying out and managing the project. It also establishes the project team’s organizational structure, roles for each person, milestones, and deadlines. Together, the two documents offer a thorough account of effective project management.
Key functions of a project plan
The operating manual for carrying out the project to completion is a project plan. The project manager develops the project plan using the project charter’s objective and scope after the stakeholders have approved it. It then outlines specific elements of the project, including:
The project manager uses the project plan as soon as it is finished to update the stakeholders on the project’s status. Additionally, they use it to add more specifics to the project planning procedure. A project manager might use the plan to develop a risk assessment or quality planning strategy, for instance.
How to create a project charter
When creating a project charter, the data included in the document takes a high-level view of the project. A project charter can be used to specify the project’s purpose, goals, and deliverables. Below are the four steps to creating a project charter:
1. Identify the vision of the project
Defining the project vision is the first step in developing a project charter. What the project entails and how it will benefit the organization must be addressed. Additionally, you must define the boundaries, such as project costs, deadlines, and necessary resources.
2. Identify the project stakeholders
The next step is to identify the project’s stakeholders, or those who can approve and authorize it. Additionally, they are people who care about the project’s success. Stakeholders can be from within the organization or external customers.
3. Create a project organizational chart and resource list
You can now create an organizational chart of all the key positions within the project once you’ve identified the stakeholders. The primary duties for each position you specify can be included in the plan. You can also include a list of the materials, personnel, equipment, and technological resources that the project will need.
4. Identify the budget, constraints and risks
You should also include the anticipated budget, constraints, and risks in the project charter. A risk assessment completed during the planning stage helps to reduce bigger problems once the project starts. Constraints like a lack of funds or time must be identified in advance for monitoring systems to identify these issues as they arise. An estimated budget sheds light on the project’s complexity and the resources needed.
Elements to include in a project plan
You can include a number of important components when creating a project plan, such as:
Project schedule
A project schedule is a timeline of how long it will take to complete particular project components. This covers individual tasks, project milestones, and even how long it takes to plan particular sections of the plan. A schedule is used by the project manager to keep the team on task and track progress.
Scope document
A scope document outlines the project’s requirements and exclusions. It describes the goal of the project and the precise requirements for what must be accomplished. The criteria used to determine whether the project is successful are also highlighted in the scope document.
Change management plan
The procedures for dealing with changes within the project are the main focus of a change management plan. Budgetary increases, changes to the project’s scope, or the need for more resources are some examples of changes. Understanding how to handle changes throughout the project can help the team work more effectively and spot any crucial components that are being overlooked.
Risk management plan
A risk management strategy informs you of all the project’s potential risks. Risks can include lacks of time, money, or materials, but also consider market shifts or other economic factors that could have an impact on the project. The project team can prepare for potential issues and decide how to handle them as they arise by developing a risk management plan.
Communications management plan
The project manager drafts a communications management plan outlining the project’s communication strategy. This covers both internal and external communication with the organization and stakeholders as well as communication within the project team. The plan specifies the preferred methods of communication, such as email or face-to-face meetings, as well as the frequency of communication.
Quality assurance plan
A quality assurance plan offers guidelines for tracking the project’s advancement and the caliber of the work delivered within each milestone. The project team must produce high-caliber work that complies with certain standards. The standards and evaluation procedure are described in the quality assurance plan.
Training plan
A training plan specifies the education and training that project team members and other project stakeholders will receive. This may include particular abilities people need to finish project components. Additionally, it mentions internal organizational training that will assist in the project’s completion.
Project Charter vs. Project Management Plan – What’s the Difference?
FAQ
What comes first project charter or plan?
The project manager develops the project plan using the project charter’s objective and scope after the stakeholders have approved it. Following that, it lists specific project components, such as: The project’s importance to the organization and its stakeholders
Does project plan include project charter?
As it outlines the project’s goals, stakeholders, risks, resources, and dependencies during the project planning stage, the project charter is a crucial document in project management.
