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Writer's pictureERP Sherpas

"The Project Charter" for ERP Projects

Updated: Dec 30, 2023



So the implementation phase of your ERP project is ready to start. As the assigned project manager, it is your job now to get all of the project setup activities completed and get the project ready to launch.


One of the key tasks at this stage of the project is to prepare the Project Charter and get it reviewed and agreed with all the key stakeholders. So what is the Project Charter, what purpose does it serve and what should it contain?


The project charter is designed to define the project deliverables and to clearly document the objectives, scope, proposed approach, risk management, resource requirements and activities required to ensure successful implementation of the ERP solution. It outlines a common and agreed understanding of the implementation methodology to be used in the management of the project.


The Project Manager should seek input from all key project participants when preparing the Charter. Getting wide input from key stakeholders will ensure there is buy-in for the Charter contents and make it easier to get the approvals and sign-off's for the document later on.


The following are the sections that are typically included within a Project Charter;

  1. A list of the key stakeholders who will approve and sign-off on the Project Charter. Typically this will be the Steering team and include stakeholders from the company implementing the system as well as the System Integrator organization.

  2. Project objectives and expected benefits - the reason the project is being undertaken, and a list of the benefits that are expected to flow from the implementation of the new ERP system

  3. Project Scope - outlines the parts of the organization (ie. legal entities, geographical) that the new system will be implemented in, the functional areas (ie. Financials, Supply Chain, Manufacturing), technical aspects (ie. integrations with other systems), business processes that will be impacted and any other aspects that need to be included in the scope for a successful implementation.

  4. Project Deliverables - this often includes a RACI matrix for who is responsible and accountable for the key outputs and deliverables at each stage of the project.

  5. Project Resources - a view of the project organization structure, including the team members from both the organization as well as the Systems Integrator (SI). The Org Chart should cover all levels from Project Sponsor, Project Management, Business Process Leads, Workstream Leads and Subject Matter Experts (SME's) for all workstreams, with a mirroring org chart from the SI as well. This section should also outline the roles and responsibilities for each level of participant within the Org Chart.

  6. The Implementation Methodology - this section should describe the methodology that will be used to implement the project, and often comes from the Systems Integrator, given their experience in implementing the chosen ERP software. This section should outline the proposed stages being used, the key milestones and dates and any assumptions built into the project approach. This section should also outline the approach to be used for training within the project - both how the project team will be trained as well as how the end users will be trained prior to going live with the new system.

  7. Project Budgets - details of the project budget should be outlined and agreed as part of the Project Charter.

  8. Project Risks - outline any known risks that may have come up in the initiation stage so far. These will also be added to the Risks Register to be managed as part of the on-going project.

  9. Project Communication Plan - outline the plan for regular communications across the team - from Steering Group, Project Management group, and the regular cadence of reviews and other meetings necessary for keeping the project on track and keeping everyone informed of progress and next steps at all times.

  10. Organizational Change Management (OCM) - this is an important aspect for all ERP projects and a broad approach to how OCM will be handled within the project should be outlined and agreed as part of the charter.

Once the Project Charter is prepared, it should be circulated to all document approvers for review and feedback. Feedback should be coordinated and incorporated into the final document version before all approving parties sign off on the document.


The aim should be to have this task completed as part of the project initiation phase at the start of the project.



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