A project charter is a formal document delineating the project’s objectives, scope, stakeholders, risks, milestones, and overall approach. It’s crucial to create a project charter at the onset of a digital transformation (DX) as it defines clear objectives, establishes roles, and secures stakeholder buy-in. By providing a framework for decision-making and outlining potential risks, it ensures informed decisions, mitigates challenges, specifies required resources and facilitates effective communication. Collectively, these elements lay the foundation for a structured transformation that achieves the desired outcomes.

However, creating a project charter comes with its own set of challenges. This article will cover the common pitfalls companies encounter when creating a project charter, and offer resources for how you can avoid these pitfalls as you work to create a project charter for your digital transformation project.

1 – Business Objectives are Not Clearly Defined

Business objectives are critical to building out a project charter as they provide a clear direction and purpose for the project. Business objectives help align the project with the broader organizational goals, ensuring that all efforts contribute to the overall success of the company. By setting specific, measurable, achievable, relevant, and time-bound (SMART) objectives, the project team can focus on the most important tasks and measure progress effectively.

When business objectives are not defined, several issues can arise. The project may lack clarity and direction, leading to confusion and misalignment among team members. Without clear objectives, it becomes challenging to prioritize tasks and allocate resources efficiently. This can result in wasted time and effort on activities that do not contribute to the desired outcomes. Furthermore, the absence of well-defined objectives makes it difficult to measure success and demonstrate the value of the project to stakeholders, which can undermine support and jeopardize the project’s viability.

Read this article for more information on building SMART objectives for your project charter.

2 – The Project Charter Is Never Reviewed

The project charter is not a static document but a dynamic tool that provides guidance and clarity throughout the project’s journey. Regularly reviewing the project charter throughout the project’s lifecycle is essential for several reasons which are vital for the successful completion of a project.

Firstly, it ensures that the project remains aligned with its initial objectives and organizational goals. As projects evolve, there can be shifts in scope, priorities, or market conditions that necessitate adjustments. By revisiting the project charter, teams can recalibrate their approach to stay on course and maintain relevance.

Secondly, frequent reviews help identify and address risks or issues early. The project charter outlines potential risks and mitigation strategies, serving as a reference point for risk management. Regular check-ins allow the project team to assess whether these risks are being effectively managed or if new risks have emerged that require attention.

Thirdly, reviewing the charter enhances communication and accountability among stakeholders. It reinforces the project’s goals and the roles and responsibilities of each team member, ensuring everyone remains on the same page. This can be particularly valuable during times of transition, such as team member changes or when entering new project phases.

Lastly, revisiting the project charter facilitates continuous improvement. By reflecting on the project’s progress and comparing it against the original charter, teams can learn from their experiences, celebrate successes, and identify areas for growth. This ongoing assessment helps in refining processes, improving efficiency, and increasing the likelihood of achieving project success.

In contrast, failing to review the project charter can lead to significant pitfalls. The project may drift away from its intended goals, resulting in misaligned efforts and wasted resources. Unaddressed risks can escalate into major issues, potentially derailing the project. Communication breakdowns may occur, causing confusion and diminishing stakeholder confidence. Finally, without regular reviews, opportunities for learning and improvement are missed, reducing the overall effectiveness and success of the project.

3 – Project Charter Is Not Socialized and Stakeholder Approval Is Not Obtained

Socializing a project charter with stakeholders ensures that everyone involved understands and agrees on the project’s objectives, scope, and deliverables. This alignment is crucial for maintaining consistency and focus throughout the project’s lifecycle.

Engaging stakeholders early also helps to identify potential risks and mitigation strategies, fostering a proactive approach to problem-solving. Approval from all parties confirms their commitment and support, which is essential for resource allocation and prioritization. This process enhances communication, accountability, and collaboration among team members and stakeholders. Ultimately, it increases the likelihood of project success by ensuring that everyone is aligned and working towards the same goals.

When a project charter is not socialized and approved by stakeholders, several pitfalls can arise. Firstly, there may be a lack of buy-in and support from key stakeholders, which can lead to resource constraints and conflicting priorities. Without stakeholder approval, the project team might face significant resistance, making it difficult to implement decisions and changes. Misunderstandings and miscommunications are more likely to occur, as team members and stakeholders may have different interpretations of the project’s goals and scope. This lack of clarity can result in misaligned efforts, wasted resources, and unmet objectives.

Furthermore, without stakeholder involvement, potential risks may go unnoticed or unaddressed, increasing the likelihood of encountering major issues during the project. The absence of a shared vision can also hinder collaboration and teamwork, leading to a fragmented approach and reduced efficiency. Ultimately, failing to socialize and get approval for the project charter can jeopardize the project’s success by undermining trust, diminishing stakeholder confidence, and stifling opportunities for continuous improvement.

Therefore, it is imperative to socialize the project charter with stakeholders and secure their approval to ensure a unified, transparent, and collaborative project environment. This not only fosters a sense of ownership and engagement but also sets the foundation for a successful project outcome.

Achieve Business Goals with a Comprehensive Project Charter

In conclusion, a well-crafted project charter is a vital instrument in steering a project towards success. It lays the groundwork by clearly defining objectives, roles, and responsibilities, securing stakeholder buy-in, and establishing a foundation for risk management and continuous improvement.

Regular reviews and stakeholder engagement ensure the project remains aligned with its goals and can adapt to changing circumstances. By addressing common pitfalls and emphasizing the importance of a dynamic and collaborative approach, organizations can harness the full potential of their projects and drive them to successful completion.

Victoria Fide offers a Project Charter Template, a completely customizable file that will eliminate project management guesswork and guide companies in creating an effective project charter. The template includes comprehensive instructions, suggestions, and use case scenarios for best results. Training workshops are also available for teams with less experience with digital transformations. Visit our product page for more information.

A robust project charter not only guides teams but also fosters a culture of transparency, accountability, and excellence, ultimately leading to the achievement of desired business outcomes.

About the author

Rob Maeyaert is a Director of Project Portfolio and Change Management at Victoria Fide Consulting. For more than 20 years he has worked to help companies implement complex technology solutions and drive their strategic business objectives. For Rob, the most rewarding part of the client journey is building that trusted advisor relationship. Rob works hard to build that through honesty, integrity, and ensuring commitments are followed through.