Product Charter: Purpose, Writing Tips, and Examples

Launching a successful product isn't just about having a great idea, it's about having a solid plan, good communication, and everyone on the same page. That's why you need a product charter. It's a roadmap that spells out what the product aims to do, who it's for, and how it will be created and tracked. By putting together a charter, you give your team a clear direction and make sure everyone's efforts are aligned toward the same goals.

In this article, we'll dive into why this document is so crucial, break down its key components, and offer some practical tips for writing one that works. We'll also provide examples to help you see how to craft your own product charter.

What Is a Product Charter?

It is essentially a strategic plan for your product. It outlines the product's goals, scope, stakeholders, and key metrics. Think of it as a single source of truth for your team. It sets the course and boundaries for the development process. It's key because it keeps everyone's efforts focused. It makes sure they know the product's objectives and their own roles and responsibilities. As a rule, such a document is created early on, for instance during the discovery phase.

Why Do You Need a Product Charter?

It is a powerful tool for keeping your product development process organized, efficient, and in sync with your business goals. Let's dive into how it can benefit your team and project.

It Establishes a Clear Vision

A product team charter gives you a clear and straightforward vision of what your product is and aims to achieve. It outlines the product's purpose, goals, and target audience. This way, everyone knows the end goal and can refer to the document anytime to maintain consistency and clarity throughout the development process.

It Aligns the Team and Facilitates Communication

One of the biggest hurdles in product development is making sure everyone knows what the priorities are. The charter serves as a communication tool, too. It gives every team member and stakeholder the same information about the project's objectives, scope, and timeline.

It clearly defines roles, responsibilities, priorities, and expectations, laying out who's in charge of what, so everyone knows their part in the project and who they need to work with. As accountability is crucial for successful product development, this transparency keeps tasks completed on time and any issues quickly addressed.

It Defines Scope and Prevents Scope Creep

A product team charter sets clear boundaries to keep the project on track. It's like a product roadmap that pinpoints the main "stops". If new ideas pop up during development, the team can check the charter to see if they fit with the original plan. It helps ensure the project stays focused on its main goals.

It Outlines a Way to Success

Finally, a product charter looks at the entire product development life cycle and journey ahead. It maps out key milestones, deadlines, deliverables, and a clear path from start to finish. This roadmap keeps the project on track and ensures progress flows in a structured, timely manner.

So, it is a must for any product development project. Crafting a detailed charter at the beginning sets the stage for a smoother, more organized, and successful development process.

Product Charter Outline 

To make the most of this document, it's essential to include the right elements. Let's dive into the key components that every solid charter should have and how to put one together for your project. Feel free to fall back on this product charter template.

Product Vision

The product vision should clearly capture the main purpose of the product and the problem it aims to solve. The charter mission statement helps make sure that every decision aligns with the end goal. Add your problem statement and briefly mention your core findings here. To define your product vision, you need to answer these key questions:

• What problem does this product solve?
• Who is the target audience?
• What value does this product bring to the market?

Deliverables, Objectives, and Goals

Clear, measurable objectives and goals will guide the product development process. Your KPIs and OKRs should be Specific, Measurable, Achievable, Relevant, and Time-bound (SMART).

KPIs

Key performance indicators are a digitized way to say your strategy works and your goals are achieved. Be specific enough to allow for accurate tracking and evaluation. For instance, reaching a defined number of active users within six months is a clear statement.

Scope

Define the scope of the project to set clear boundaries on what the product will and will not include. Thus, you'll escape delays and budget overruns.

List the prioritized product features, functionalities, and deliverables that are part of the project. Clearly state what is outside the project's scope to avoid confusion and unrealistic expectations.

Timeline

This section should include major milestones, deadlines, and a high-level schedule of activities. It will foster the project to progress steadily towards its objectives. Identify critical points in the project, such as creating a prototype, user testing phases, or the final product launch. Then create a timeline, a visual representation, or list of key dates and deadlines.

Resource Plan

This plan includes financial resources and human, technology, and any other assets you need to complete the project successfully. So, detail the resources required, including team members, technology, tools, and the costs you're counting on according to your project or startup budget. Explain how these resources will be allocated throughout the project.

Stakeholders and Roles

Identify all key stakeholders and clearly define their roles and responsibilities. You don't have to go into the details of your team structure, yet provide clarity so it builds smooth collaboration and accountability throughout the project. For example:

• Product Manager: oversees the project and makes key decisions.
• Development Team: builds and tests the product.‍
• Marketing Team: manages promotion and customer communication.

Assumptions

Assumptions are foundational beliefs or conditions accepted without proof. They guide your project's planning and decision-making and also impact your product's strategy and development. Recognizing and documenting them for hypothesis testing early on helps anticipate risks, guide decisions, align stakeholders, and maintain flexibility.

What kinds of assumptions to include:

• Market: customer needs, market growth.
• Technological: availability of technology, integration feasibility.
• Resources: budget, team capacity.
• Timeframe: project duration, market timing.
• Regulatory and Compliance: legal requirements, compliance ease.
• Competition: competitor actions.
• External Dependencies: supplier reliability, economic conditions.

It is important to update assumptions with new information, prepare contingency plans, monitor and validate with data, and keep stakeholders informed. All these actions will contribute to avoiding common startup mistakes and accomplishing your strategy.

Constraints

Constraints are the limitations or restrictions that the project must operate within. These can include budgetary limits, time constraints, resource availability, and technical limitations. Clearly outline these constraints to manage expectations and the project planning process.

Risk Management

This section of a product charter example should highlight both internal and external risks and provide a plan for how to address them if they arise. First, identify potential business and startup risks such as market volatility, resource shortages, or technical challenges. Then, outline how each risk will be managed or mitigated if it occurs.

Approval and Confirmation

The final sections of the charter should include a formal approval and sign-off process. This makes sure that all key stakeholders are on board with the charter and committed to supporting the project. Include spaces for signatures for key stakeholders or decision-makers to confirm their approval. Also, document the version number and date of the charter to keep track of any updates.

Communication Plan and Monitor Progress

Develop a communication plan to keep stakeholders informed about the project's progress. This plan might include regular status updates, meetings, and reports. Also, continuously monitor the progress of the project against the document components.

How to Make Accurate Project Estimations

Article by

Yauheni Svartsevich

How to Create a Product Charter [Example]

We've talked about what to include in an effective charter. Below you'll find a product charter example that shows pre-filled information for a hypothetical Employee Onboarding and Training Portal.

Product Name: EOTP Employee Onboarding and Training Portal

Charter Version Number: 1.0      Date: 2024-09-10

Vision Statement:
The vision for the Employee Onboarding and Training Portal is to create a centralized, user-friendly platform that streamlines the onboarding process for new employees and provides ongoing training opportunities for existing staff. This portal will enhance employee engagement, reduce onboarding time, and ensure that all employees have access to the necessary resources to succeed in their roles.

Problem Statement:
The current onboarding process is fragmented and inconsistent. It leads to longer onboarding times, lower employee satisfaction, and increased administrative overhead. Existing employees also lack access to continuous training resources, which impacts their professional development and overall productivity.

Target Audience:
The target audience includes new hires across all departments, existing employees seeking professional development, HR personnel managing onboarding processes, and department heads overseeing team training.

Value Proposition:
The portal will provide a smooth onboarding experience to reduce administrative burden, accelerate employee readiness, and enhance training efficiency. A centralized platform will ensure consistency in training materials and allow for easy tracking of employee progress.

Deliverables, Objectives, and Goals:

• Objective 1: Launch the Employee Onboarding and Training Portal within 6 months
• Goal 1: Achieve a 30% reduction in onboarding time within the first 3 months post-launch
• Objective 2: Ensure that 90% of new hires complete their onboarding within the first two weeks‍
• Goal 2: Increase employee engagement with training modules by 40% within the first year‍
• Objective 3: Integrate role-specific training paths within 3 months of the initial launch‍
• Goal 3: Achieve a 20% improvement in employee performance metrics by providing ongoing training opportunities

Key Performance Indicators (KPIs):

• Onboarding Time: 30% reduction within 3 months post-launch
• Completion Rate: 90% of new hires complete onboarding within 2 weeks
• Training Engagement: 40% increase in employee interaction with training modules within the first year
• Performance Improvement: 20% improvement in employee performance metrics tied to training

In-Scope:

• Development of a centralized, web-based platform accessible from any device
• Creation of role-specific onboarding and training modules
• Integration with the company's HR management system for seamless data transfer
• Implementation of progress tracking and data reporting features for HR and department heads
• Development of user-friendly dashboards for employees, HR, and managers
• Provision of support resources, including a knowledge base and helpdesk integration

Out-of-Scope:

• On-premise deployment options
• Customization of training modules for individual departments beyond role-specific paths
• Management of third-party certifications or external training courses
• Integration with non-HR-related company systems (e.g., ERP systems)

Timeline:

• Month 1-2: Requirements gathering, platform architecture design, and initial content outline
• Month 3-4: Development of core features, integration with HR management system, and content creation
• Month 5: Alpha testing, user feedback, and performance optimization
• Month 6: Beta launch, final adjustments, and full launch preparation

‍Resource Plan:

• Human Resources: 8 software developers, 2 QA engineers, 1 product manager, 3 content creators, and 2 IT specialists
• Technology: Cloud infrastructure, HR system integration tools, content management tools
• Budget: $500,000 allocated for development, content creation, and initial operational costs
• Allocation: 50% of the budget on development, 30% on content creation, 20% on operations

Stakeholders and Roles:

• Product Manager: Oversees the project, aligns the team with the product vision, and makes key decisions
• Development Team: Builds, tests, and deploys the portal, ensuring functionality and user experience
• HR Team: Provides input on onboarding processes, content for training modules, and manages the overall user experience
• QA Team: Ensures the portal meets quality standards through rigorous QA testing
• IT Team: Manages the integration with existing HR systems and ensures data security
• Marketing/Communications Team: Manages internal promotion of the portal and communication to all employees
• Support Team: Provides ongoing user support and handles troubleshooting

Assumptions:

Market Assumptions:

• There is a growing need for streamlined onboarding and continuous training solutions within the company.
• Employees value and will engage with a centralized training platform.

Technological Assumptions:

• The company's existing HR management system will be compatible with the new portal.
• Sufficient IT infrastructure is available to support the platform's deployment and ongoing use.

Resource Assumptions:

• Adequate budget and personnel will be available throughout the project.
• Subject matter experts will be available to contribute content for training modules.

Timeframe Assumptions:

• The project will be completed within the 6-month timeline.
• The launch schedule aligns with the company's strategic goals and workforce planning.

Regulatory and Compliance Assumptions:

• The portal will comply with all relevant labor laws and data protection regulations (e.g., GDPR).
• Training materials will meet industry-specific compliance standards where applicable.

Competitive Landscape Assumptions:

• Competitors are not expected to launch a similar platform before our product's release.

External Dependencies:

• Continued reliability of the company's HR management system and IT infrastructure.
• Stable economic conditions to maintain the allocated budget.

Constraints:

• Budget: The project has a fixed budget of $500,000 for development, integration, and initial content creation
• Time: The portal must be ready for launch within 6 months to align with the next hiring cycle
• Resource Availability: Limited availability of IT resources for integration work
• Technical: The portal must be built to integrate seamlessly with the existing HR management system without major modifications

Risk Management:

• Risk 1: Delays in content creation for training modulessome text
  • Mitigation: Engage multiple subject matter experts and establish a content creation schedule with milestones.
• Risk 2: Integration challenges with the existing HR management systemsome text
  • Mitigation: Conduct early technical feasibility studies and involve IT in the planning phase.
• Risk 3: Low adoption rates among employeessome text
  • Mitigation: Implement an internal marketing campaign and provide incentives for early users.
• Risk 4: Resource shortages, particularly in IT and content creationsome text
  • Mitigation: Plan for potential outsourcing options or reallocation of internal resources.

Stakeholder Signatures:

• Product Manager: ___________________
• HR Director: ___________________
• IT Director: ___________________
• CFO: ___________________

Communication Plan: Weekly status updates via email to stakeholders, bi-weekly team meetings, and monthly progress reports.

Monitoring Progress: Regular review of project milestones, KPIs tracking, and ongoing risk assessment to ensure alignment.

Extra Tips on Writing a Product Charter

To make your product team charter more effective, consider these tips.

• Involve your team. Get input from your project team to gather diverse perspectives on goals, milestones, and challenges. Their insights will help you craft a more accurate and comprehensive charter.
• Keep it concise. Make your charter high-level and to the point. Limit each section to a sentence or two and use charts or bullet points for clarity.
• Create a template. Develop a reusable template for all your projects to save time and ensure consistency, the charter format is up to you.
• Seek feedback. Regularly ask for and incorporate feedback from stakeholders to refine the charter and address any concerns.
• Plan for post-launch. Include details on support, maintenance, and evaluation to ensure long-term success after launch.
• Store and share. Keep the charter in a shared location for easy access and updates.
• Use project management tools. Utilize tools like Gantt charts, Kanban boards, and collaborative platforms to draft, store, and update the charter to improve the organization and enable real-time updates and feedback.

Follow these tips and create a well-structured product charter template to guide your project while adapting to feedback and changing needs.

Every Great Software Starts with a Plan

A well-crafted product management charter isn't just a formal document, it's a vital part of making your product development process successful. It lays out the vision, goals, scope, and roles clearly, making sure everyone involved is on the same page and working towards the same objective. It helps keep things from spiraling out of control, boosts accountability, and provides a roadmap for the project from start to finish.

Taking the time to create a detailed high-level plan smooths out the development process and boosts your chances of delivering a product that hits the mark. As you start your next project, think of this document as your go-to guide for steering through challenges and reaching your goals.

And if you need a hand with planning and then bringing your product to life, Upsilon's pros can be with you from the project discovery phase to MVP development and beyond. Feel free to reach out to us to discuss your needs!