How to Create a Team Charter (Templates & Samples Included)

A bonded and connected team performs with better efficiency and is more productive.

A productive team is motivated, dedicated, and transparent. A project manager has many tools to ensure the team is productive, including the “Team Charter.”

Team charter helps the project manager build a robust, motivated, high-performing team with a shared understanding.

Let’s get into the details.

What is a Team Charter?

A team charter is a project management document that provides the team’s working principles. It ensures that the team works collaboratively and creates a positive working environment so all members will feel motivated and perform at their best.

It is a formal agreement outlining a team’s purpose, goals, roles, responsibilities, and operating guidelines. You can create it at the beginning of a team’s formation to provide a clear understanding of the project’s mission and objectives.

The team charter outlines why the team has been brought together, what they are supposed to accomplish, and the resources and constraints in which they will work. It is a tool for aligning team members, promoting communication, and ensuring everyone is on the same page regarding their purpose.

Team charter can also include the ground rules establishing rules to interact and respect boundaries.

By providing clear guidelines, the team charter sets a model for team members to follow and creates a positive and engaging environment.

The format, structure, and level of detail in the project charter depend on the organization and the team. Some organizations have detailed team charters, and others have a few lines of charter with key elements.

If unavailable, you can use your organization’s team charter or create your own from scratch.

What is Included in a Team Charter?

A team charter can include many elements to outline a team’s purpose, goals, roles, and operating guidelines. 

Some common elements of a project charter are: 

• Team Name: This provides a name with which to identify the team.
• Mission Statement: This defines the purpose and reason for the team’s existence.
• Vision Statement: This describes the desired future state or long-term goals that the team aims to achieve.
• Objectives and Goals: These outline specific, measurable targets that the team intends to accomplish.
• Scope and Boundaries: These define the limits and boundaries of the team’s authority and responsibilities.
• Roles and Responsibilities: These outline the team members’ roles and responsibilities.
• Stakeholders: These are key internal and external stakeholders and those interested in the team’s activities.
• Decision-Making Processes: These describe how decisions will be made within the team (e.g., the method for reaching a consensus or resolving conflicts).
• Communication Plan: This outlines communication within the team and specifies preferred channels, frequency, and key contact points.
• Meeting Guidelines: These establish rules and expectations for conducting team meetings (e.g., frequency, duration, and agenda-setting).
• Conflict Resolution: This defines procedures for identifying, addressing, and resolving conflicts among team members.
• Recognition and Rewards: These specify how team members will be recognized and rewarded for their contributions and achievements.
• Monitoring and Evaluation: This describes how the team’s performance will be monitored and evaluated (e.g., success criteria).

Sometimes, ground rules are also a part of the team charter, but it is recommended to have them separately to put more emphasis.

What is the Importance of Team Charters?

The team charter is important for the following reasons:

It Gives Team Members Responsibility

The team charter is jointly created or distributed to every team member to go through and understand it. It helps get team members’ buy-in, and they will know their roles and responsibilities and perform well.

A team charter brings all stakeholders together by making them work in the same direction.

Improves Clarity and Motivates Team Members

By clarifying the roles and responsibilities, the team charter removes the ambiguity in schedule and task assignments, which motivates the team members to perform well.

All team members know their roles, project objectives, and long-term organizational goals, which motivates team members.

Builds a Robust Team

The team charter clarifies the roles and responsibilities, motivates team members, and ensures the team cooperates to achieve project objectives. It helps build a cohesive, connected, and robust team that performs efficiently.

How to Create a Team Charter

Creating a team charter is crucial in establishing a clear direction, purpose, and expectations for a team.

You can follow the following five-step guidelines to create your team charter:

Step 1: Define the Purpose and Goals

Define the team’s purpose and goals.

To do so, you can answer the following questions:

• Why does the team exist?
• What is the team trying to achieve?
• What are the key objectives and deliverables?

Step 2: Identify Team Members and Roles

List the team members and define their roles and responsibilities. Include each member’s expertise, skills, and contributions. This section helps establish accountability and ensures that everyone understands their role in achieving the team’s goals.

Step 3: Establish Team Norms and Values

Define the values and norms guiding the team’s behavior and interactions.

This may include:

• Communication Guidelines: How and when will the team communicate? Which tools will be used to do so?
• Decision-Making Processes: How will decisions be made within the team? Will it be by consensus, voting, or another method?
• Conflict Resolution: Outline a process for resolving conflicts constructively.
• Meeting Protocols: Specify how meetings will be conducted (e.g., frequency, agenda creation, and participation expectations).

Step 4: Set Performance Metrics and Milestones

Establish measurable performance metrics and milestones that will be used to track the team’s progress.

This could include:

• Key Performance Indicators (KPIs): Identify KPIs and specific metrics that will gauge the team’s success.
• Milestones: Break larger goals into smaller, achievable milestones with deadlines.
• Evaluation Criteria: Define how the team’s success will be assessed via individual and collective performance.

Step 5: Review and Revise

A team charter is a living document that should be revisited and revised periodically. Schedule regular reviews to ensure that the team charter remains relevant and effective. As the team evolves or faces new challenges, updates to the charter may be necessary to reflect changing priorities, goals, or team dynamics.

Tips for Creating the Project Charter

• Collaborative Creation: Involve all team members in creating the charter to ensure collective ownership and commitment.
• Clear Communication: Communicate the team charter to all members and ensure that everyone understands and agrees to its content.
• Accessibility: Keep the team charter easily accessible to all team members. Consider sharing it on a collaborative platform or in a shared document.

The team charter provides guidance and promotes a sense of unity and shared purpose among team members. Regularly revisiting and updating the charter helps the team stay aligned and adaptable to changes.

Team Charter Template

Team Charter Example

Team Charter Vs Ground Rules

A team charter and ground rules are vital for effective teamwork. Each serves a different purpose in promoting collaboration and guiding team behavior.

A team charter outlines the team’s purpose, goals, roles, norms, and performance metrics. It is like a roadmap, defining the team’s mission, objectives, and team members’ roles and responsibilities. The team charter sets the foundation for collaboration by aligning team members with common objectives and providing a reference point for decision-making.

Ground rules govern the day-to-day interactions and behaviors within the team. Unlike a team charter, ground rules focus more on practical aspects of teamwork, such as communication protocols, meeting etiquette, and conflict resolution strategies. Ground rules provide a framework for a respectful and efficient team environment, helping promote a positive team culture.

While a team charter establishes the overall direction and purpose of the team, ground rules address the practical and interpersonal aspects of teamwork, ensuring that team members collaborate effectively and harmoniously. Both are critical for creating a cohesive and high-performing team.

Team Charter Vs Project Charter

A team charter and a project charter are distinct documents that serve different purposes.

A project charter starts the project, assigns the project, and gives the authority to manage the project. The project sponsor signs it or someone from the top management. The project charter includes key project details such as timelines, budget constraints, and high-level milestones.

While a team charter focuses on the internal dynamics and collaboration of a specific team, a project charter is an authoritative document that authorizes and outlines the parameters of a project, setting the stage for its successful initiation and completion.

Team Charter Vs Organizational Charter

A team charter and an organizational charter are distinct documents that serve different functions within the teamwork and organizational structure.

An organizational charter is a foundational document that defines an organization’s broader structure and principles. It outlines the organization’s purpose, values, governance structure, and key policies. The organizational charter provides a high-level framework for decision-making, governance, and strategic direction across all teams and departments.

A team charter focuses on the internal dynamics and collaboration within a specific team, whereas an organizational charter serves as a foundational document that establishes the organization’s overarching principles, structure, and governance.

Summary

A team charter is the cornerstone of teamwork. It provides a roadmap for collaboration by outlining the team’s purpose, goals, roles, norms, and performance metrics. It is a guiding document that fosters a shared understanding among team members, aligns efforts with common objectives, and establishes a decision-making and conflict-resolution framework.