The project charter and the project plan are vital documents in project management. These project documents have different purposes and address different aspects of a project life cycle.
This article will provide the difference between a project charter vs project plan, including an understanding of their roles, contents, and significance in project management.
By exploring the differences between these documents, you can gain valuable insights into when and how to leverage them effectively.
For any project to succeed, you need robust planning and a clear definition of objectives upfront. This is where project charters and plans come in – but what’s the difference between these two pivotal documents?
In this guide, we’ll compare project charters vs project plans so you understand
- The distinct role and purpose of each document
- Key elements to include (and exclude!) in charters and plans
- Who creates them and signs off on each one
- When to draft charters and when to detail project plans
- Templates and examples to reference
- Tips for developing top-notch charters and plans
Understanding the unique value of charters and plans will equip you to create both documents with confidence Let’s dive in!
Project Charter vs Project Plan: Key Differences
Though the names sound similar, project charters and plans serve very different functions:
Project Charters
A project charter formally authorizes and kicks off a project. It’s like an initial project constitution that defines its scope, objectives, stakeholders, and more.
Key elements include:
- Project description and justification
- Goals and deliverables
- Budget and resources
- Roles and responsibilities
- Timeline and milestones
- Risks and constraints
Charters are high-level, establishing the basic parameters to start project work. They are created early in the initiation phase.
Project Plans
If the charter sets the framework, the project plan fills in all the tactical details. Plans comprehensively define how objectives will be achieved.
Key elements cover:
- Work Breakdown Structure (WBS)
- Tasks and schedule
- Resource allocation
- Budget and costs
- Quality standards
- Risk management
- Communications
Project plans drill down into granular procedures for executing the work. They build on charters created early on.
Main Differences Summarized
| Project Charter | Project Plan | |
|---|---|---|
| Purpose | Formally authorizes the project; establishes foundation | Provides comprehensive execution plan with tactical details |
| Timing | Created in initiation phase before project starts | Developed after charter approved; updated throughout project |
| Scope | High-level overview | Highly detailed |
| Audience | Project manager, sponsor, stakeholders | Project manager and team execute plan |
| Changes | Generally remains unchanged after approved | Flexible; updated as project progresses |
Now let’s explore the key distinctions in more depth.
Purpose and Content
The core purposes of charters and plans differ significantly:
Project charters authorize the project so work can formally begin. Charters contain just enough information to establish scope, objectives, resources, roles, and other foundational elements.
Project plans serve as detailed instruction manuals for how goals laid out in the charter will be achieved. Plans offer granular specifics on schedule, budget, processes, quality, communications, and much more.
Charters provide critical information for stakeholders to greenlight the project. Plans enable the project manager and team to execute day-to-day activities according to strategy.
Timing and Sequence
Project charters come first in the initiation phase before any work begins. Plans come after charters once the project is approved.
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Charter: Frames the project for initial approval and resourcing.
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Plan: Offers step-by-step guidance for delivering what’s outlined in the charter.
Project plans can be revised frequently as work progresses. In contrast, charters generally remain relatively static after initial creation unless the scope or objectives fundamentally change.
Plans build on charters, not the other way around. You need a charter before you can develop a detailed plan.
Audience and Sign-Off
Project charters serve a variety of stakeholders, while plans mainly guide the project team:
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Charters provide key information for sponsors, managers, and other stakeholders who decide whether to proceed with the proposed project.
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Plans help the project manager and team execute activities needed to fulfill what’s outlined in the charter.
As a result, charter approvals and sign-offs are usually required at higher levels by sponsors, executives, or steering committees. Project plans are primarily created and signed off by project managers.
Both are critical documents with different target audiences.
Examples and Templates
Referencing sample charters and plans can help you better understand what each entails.
Project charter template
Key sections:
- Project purpose/justification
- Scope and objectives
- Milestones
- Stakeholder roles
- Signature approval
Project plan example
Key elements:
- Project overview
- Work breakdown structure
- Schedule/timeline
- Cost estimates
- Quality standards
- Communications plan
- Risk management
These and other templates demonstrate the distinct content and level of detail for charters vs. plans.
How To Develop Airtight Charters and Plans
With a solid understanding of the differences, here are tips for crafting excellent charters and plans:
For charters:
- Align to organizational goals
- Clearly define all projects goals and deliverables
- Secure input from key stakeholders
- Outline realistic budget and resources
- Identify risks and limitations
- Keep format high-level but comprehensive
- Obtain necessary sign-offs before starting any work
For plans:
- Break down all charter objectives into granular tasks
- Develop realistic timelines based on dependencies and resources
- Outline steps to manage budget, quality, changes, and risks
- Assign owners to each task for accountability
- Build in milestones, status checks, and approvals
- Clarify team member roles based on skills and capacity
- Update regularly as the project evolves
Invest time upfront in charters and plans, and your projects will meet objectives smoothly and efficiently.
Project Charter vs Project Plan: Key Takeaways
Project charters and plans work hand-in-hand to set up and guide project success, while playing distinct roles:
- Charters authorize the project by framing objectives, scope, stakeholders at a high level
- Plans provide granular steps for accomplishing the charter’s goals
Understanding when and how to leverage each document will equip you to skillfully manage projects from inception to completion.
So don’t confuse charters and plans – instead, embrace the invaluable purpose of both tools for project prosperity!
Project Charter Vs Project Plan
Let’s start with the project charter.
A project charter officially starts the project and establishes the foundation for its success. It is a crucial project artifact that outlines the vision, objectives, stakeholders, scope, major risks, high-level assumptions, constraints, etc.
This document appoints the project manager, gives him authority, and assigns resources to complete the project.
A project charter is a brief document, sometimes known as a project definition document.
The project sponsor or someone from the top manager develops the project charter. It acts as a project blueprint, guiding project managers and team members toward a common understanding of its purpose and direction.
A project charter declares the intent, providing a concise and clear statement of the project’s goals and desired outcomes. It outlines the project’s scope and boundaries, setting expectations and aligning stakeholders’ understanding of what will be delivered.
By defining the project’s objectives and baselines, the charter serves as a touchstone against which project progress can be measured.
The project charter fosters effective stakeholder engagement and enhances project governance by establishing logical lines of communication and collaboration.
The project charter lists the key risks, assumptions, and constraints.
It secures project sponsorship and gains organizational buy-in.
The key functions of the project charter are as follows:
- Authorization: The project charter authorizes the existence of the project.
- Appoint Project Manager: The project charter appoints the project manager.
- Defines Project Objectives: It defines the project objectives.
- Identify Key Stakeholders: The project charter identifies key stakeholders and their roles, responsibilities, and interests.
- Scope Management: The charter outlines the boundaries and specifies what is included and excluded from the project. It helps prevent scope creep.
- Project Planning: The charter provides a foundation for project planning activities.
- Communication and Reporting: The project charter outlines how project information will be shared, who will be involved, and the frequency and methods of communication.
- Baseline Document: The charter serves as a baseline reference document for the project. It provides a starting point against which project progress, performance, and deviations can be measured and evaluated.
- Project Governance: The charter helps establish the governance structure for the project, defining the roles and responsibilities of project stakeholders and their involvement in the project, decision-making, and control.
The components of the project charter are as follows:
- Project Title: A concise and descriptive name for the project.
- Project Purpose or Justification: The rationale for undertaking the project and the desired outcomes.
- Project Objectives: Clear, measurable, and specific goals the project intends to accomplish.
- Business Case: The project includes the business case that justifies the project.
- Project Scope: The project’s boundaries, including what is included and excluded.
- Stakeholders: It provides key internal and external stakeholders.
- Project Manager and Team: It includes the project manager’s name and contact details, key project team members, and their respective roles and responsibilities.
- Assumptions and Constraints: The assumptions and constraints that may impact the project’s execution or success.
- Project Deliverables: The tangible outputs or outcomes that the project will produce, along with their associated criteria for acceptance.
- Milestones and Timeline: Major project milestones, timelines including key dates, and a high-level project timeline.
- Budget and Resources: The project’s estimated budget includes funding sources and the key resources required.
- Risks and Dependencies: It identifies key project management dependencies and major risks.
- Communication Plan: An outline of how project information will be communicated, including the frequency, methods, and stakeholders involved.
- Approval and Signatures: The names and signatures of the individuals or stakeholders who authorize the project charter and commit their support to the project.
A project plan or project management plan guides the execution of a project from start to finish. It is a dynamic document that includes the tasks, project timelines, resources, task dependencies, etc. The project plan provides team members with a structured approach to managing and tracking project progress.
A project plan is sometimes also known as a work plan.
The project plan takes the high-level project goals and objectives from the project charter and breaks them into actionable steps. It identifies the tasks that must be completed, assigns responsibilities, and establishes deadlines. The project plan lets project managers monitor progress, identify bottlenecks, and take necessary corrective actions to keep the project on track.
A key aspect of the project management plan is resource allocation. It identifies the specific resources, both human and material, required for each task. Project managers can ensure that the skills, expertise, and tools are available at the right time by accurately estimating resources.
Effective resource allocation minimizes delays and maximizes productivity, allowing teams to work efficiently towards project milestones.
The project plan is a living document that evolves and adapts to changing circumstances. It allows project managers to make informed decisions, adjust timelines, reallocate resources, and revise strategies as necessary.
The project plan provides guidance and structure to the project team, ensuring everyone remains focused on the goal.
The functions of a project plan are as follows:
- Roadmap and Guidance: The project plan provides a roadmap that outlines the sequence of activities, tasks, and milestones required to achieve the project objectives.
- Scope Management: The project plan defines its scope, including its deliverables, boundaries, and exclusions.
- Resource Allocation: The project plan identifies the resources such as personnel, equipment, materials, and budget required for each activity.
- Time Management: The project plan includes a detailed timeline or schedule that specifies each activity’s start and end dates and important milestones.
- Risk Management: The project plan identifies potential risks and includes response strategies to address them.
- Communication and Collaboration: The project plan includes a communication plan that outlines how project information will be shared among stakeholders.
- Quality Management: The project plan defines the quality standards and requirements that need to be met for project deliverables.
- Cost Management: The project plan includes a budget that outlines the estimated costs for each activity and the overall project.
- Performance Measurement: The project plan defines key performance indicators (KPIs) and metrics that will be used to measure project progress and success.
- Change Management: The project plan includes processes and procedures for managing changes to the project scope, schedule, resources, or other aspects.
- Documentation: The project plan serves as a comprehensive project documentation, capturing key information such as project objectives, scope, timelines, resources, and risks.
Key components of the project plan are as follows:
- Project Overview: A project summary, including its objectives, scope, and deliverables.
- Project Objectives: Clear, measurable, and specific goals the project intends to achieve.
- Scope Definition: A detailed description of the project’s boundaries, deliverables, and what is included and excluded from the project.
- Project Organization: The roles and responsibilities of the project team members, stakeholders, and any external parties involved.
- Work Breakdown Structure (WBS): A WBS is a hierarchical breakdown of the project’s tasks and activities, organized into manageable work packages.
- Schedule: A detailed timeline or schedule that outlines when each task or activity is planned to start and finish, including milestones and dependencies.
- Baselines: The project charter includes cost, schedule, and scope baseline against which the project progress is measured and evaluated.
- Resource Allocation: Identification of the resources (e.g., personnel, equipment, materials) and their allocation to specific tasks or activities.
- Budget: A breakdown of the estimated costs associated with the project, including labor, materials, equipment, and any other relevant expenses.
- Subsidiary Project Plans: The project plan include subsidiary project plans such as risk management plan, quality management plan, communication management plan, etc.
- Change Management: It includes a change management plan. It has procedures for managing and documenting changes to the project scope, schedule, resources, or other aspects of the project.
- Monitoring and Control: Processes and techniques for monitoring project progress, tracking performance, and ensuring adherence to the plan.
- Documentation: The project plan should accompany any relevant supporting documents, such as technical specifications, contracts, or legal agreements.
Project Charter vs. Project Management Plan – What’s the Difference?
What is a project charter and a plan?
Project managers use a variety of documents to support their management process when undertaking a new project. Two of these critical documents include a project charter and a project plan. Understanding the differences between a project charter and a plan can help you better prepare and manage your next project.
What happens if a project charter is approved?
If the charter is approved, the project moves into the planning phase. You might also see a project charter referred to as a brief or project initiation document (PID). Here’s a quick recap: When Should I Create the Project Charter? The project manager should create the project charter during the project initiation phase.
What should be included in a project charter?
In the project charter, you also want to include the projected budget, constraints and risks. Completing a risk assessment during the planning phase helps to mitigate larger issues once the project begins.
What happens if a project charter changes?
The project charter and project plan are linked, and changes to one can have an impact on the other. If the project’s scope changes, for example, the project charter may need to be updated, and the project plan may need to be revised to accommodate the new scope.
