I’m sure many of you are familiar with a project charter, a document defining the ‘raison d’être’ of the project.

The project charter is a living document that outlines the proposed scope of work, requirements, timeline, resources, the definition of done, and project success factors. It’s a must-have document that you will reference throughout the project.

Have you ever considered using a similar document to improve team collaboration? Let’s take a look at why you should develop a project team charter and what to include.

Benefits of a Project Team Charter

In their study of high-performance teams, Dr. Ruth Wageman and Dr. Richard Hackman identified three conditions essential to team dynamics: a real team, compelling direction, and the right people.

Real Team

A real team is clearly defined. Everyone knows who is part of the group and who isn’t. Team members rely on each other to complete their work and stay together long enough to build momentum and achieve meaningful goals.

Compelling Direction

A compelling direction shows project team members how their work contributes to organizational strategy, providing focus and momentum. Goals should be challenging with clear measures of success.

Right People

An effective team brings together individuals with the right mix of skills, experiences, and perspectives. Strong teamwork abilities are just as important as technical skills. Together, these strengths allow everyone on the team to tackle challenges and deliver results.

How a Team Charter Strengthens Your Project

A team charter helps to develop these optimal conditions, boosting productivity and collaboration. It helps your team stay focused on the right tasks by providing clear direction on the purpose and objectives of the team and ways of working.

The charter also shapes how your team interacts with other teams and senior management, helping you to stay on track.

Take time to create a team charter when forming a new team, joining an existing team as a project manager, or when assessing the performance of your current team. Below are some elements frequently included in a team charter. Adjust them as needed for your team or project.

7 Steps to Create a Project Team Charter

Developing a project charter requires both time and effort. Typically, managers host workshops that last from half a day to several days, depending on the team’s needs. These sessions gather input and build agreement on key points.

If you want the process to work, the entire team must participate in the development and implementation of the charter; no excuses and no exceptions.

This participation creates a sense of a real team, commitment, and accountability.

Preparing the Right Tools

Here are a few tools to help you prepare for the workshop and charter development:

• The Atlassian Team Playbook – A range of online guides and instructions to track your team’s health and ways of working. Topics include poor communication, prioritization, and lack of ownership. If you are unsure how to tackle a discussion or need brainstorming ideas, start with these guides!
• Collaborative Project Management: A Handbook – Our free ebook offers best practice tips on team model and dynamics, individual roles and responsibilities, meetings, and decision-making.
• Team Trust Canvas – A simple one-page plan designed to spark conversation around connections, values, and commitment.

 

There are several ways to capture and share your team charter, for example, a Word document stored on a collaborative project team site and a poster in the team area of your office.

Choose a format that is easy for all team members to access, whether they are working onsite or remotely.

1. Team Background

The first section of the charter is the story of your team. Explain how and why the team was formed, the purpose of the project, and the desired outcomes.

Ask team members to share how they ended up on the team, what they will contribute, and their expectations from both an individual and team perspective.

These insights help align personal goals with the organizational and project objectives, fulfilling the second team condition: compelling direction. Take this opportunity to identify and resolve any concerns early.

2. Mission and Objectives

Next, define the goals of the team. Identify key project milestones, deadlines, steps, and measures of success. Some areas for discussion include:

• The problem you are trying to solve and for whom.
• The business benefit of the project.
• Definition of done.

 

Remember to set SMART goals– Specific, Measurable, Assignable, Realistic, and Time-Related – to make tracking progress easy in your project management site.

3. Composition and Roles

Having the right mix of skills and experience can elevate or hamper team performance. Each team member should be well-suited to their assigned role, and every role contributes to the team’s mission.

Using a RACI matrix, agree on team structure and roles. Make sure to document who is responsible for what activity or deliverable, and who has authority if the project manager is unavailable.

Take time to review the overall strengths and weaknesses of the team. If you identify any skills or knowledge gaps, plan to address them through training or by adding a new team member.

4. Ways of Working

There are numerous practices and processes to build a clear and supportive work environment. Some suggestions include:

• Team values
• Core behaviors, such as integrity and personal responsibility
• Frequency and format of project reports
• Team communication plan
• Meeting habits, schedule, and agendas
• Decision-making approaches
• Conflict resolution
• How to agree or disagree with ideas, and voting on ideas
• Asking for and giving help
• Allocating time to non-project activities
• Types of behaviors or actions that will not be tolerated.

 

5. Resources and Support

A team charter can help secure the project budget and resources. Once these items are in place, work with the team to plan resource allocation as per your mission and objectives.

6. Assessment and Feedback

Individual performance against the team charter can support your organization’s performance management processes.

At this point, agree as a team on how this will work. Discuss how performance will be assessed, how often reviews will happen, and whether results will impact annual bonuses.

7. Negotiation and Agreement

The charter will only work if the entire team and senior management agree with the contents and proposed processes.

Circulate a draft document for review and amend as needed. To avoid any misunderstandings, ask team members to read and sign a physical copy of the final document.

Kickstart Your Team Charter with BrightWork

Creating a team charter is one of the most effective ways to build a strong foundation for project success. It helps your team stay aligned, motivated, and accountable as you move through each stage of the project lifecycle.

If you’re ready to make project planning even easier, BrightWork can help. Our project team charter template gives you the tools you need to streamline collaboration, track progress, and deliver results.

Watch our demo and see how you can set your team up for success.