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Project Charter vs BRD: Key Differences for Project Success

Creating a successful project requires careful planning and execution. Two essential documents that play a significant role in project management are the Project Charter and Business Requirements Document (BRD). While both documents are critical to the success of any project, they serve different purposes. The Project Charter provides a marketing overview of the project, outlining its goals, scope, and stakeholders. On the other hand, the BRD is a development document that describes the functional specifications for the project.

The Project Charter establishes the project’s objectives, scope, and authority, while the BRD details the specific business requirements that need to be addressed. The BRD guides the “what” of the project, while the Project Charter provides the overall framework and direction for the project. A functional specification document provides a detailed description of how the development of the project will take place. This document outlines the technical requirements and specifications needed to achieve the desired outcomes. It is essential for ensuring that all stakeholders in the organization are aligned on what needs to be delivered.

The creation process also differs between these two documents. The Project Charter is created at a high level by senior management or executives who have an overall view of what needs to be achieved. In contrast, creating a BRD requires input from various stakeholders such as business analysts, developers, testers, etc., who have specific knowledge about their area of expertise.

Difference between Project Charter and BRD

High-level project planning is essential for any successful project, whether it is a program development or a marketing campaign. It helps to provide direction, clarity, and a clear understanding of what needs to be done. Two critical documents that are used in high-level project planning are the Project Charter and Business Requirements Document (BRD), which serve as the foundation for creating a functional specification. Although these two documents may appear similar at first glance, they have significant differences that set them apart.

Project Charter – The Why and What of the Project

The Project Charter is a high-level document that outlines the objectives, scope, stakeholders, and resources of a project. It overviews the project’s goals and objectives and defines its boundaries. The project manager or sponsor usually creates the Project Charter at the beginning of the project to provide direction and clarity.

One of the main focuses of a Project Charter is on the business case, functional specification, and software requirement specification. It answers questions such as why this project is being undertaken, what problems it aims to solve, what outcomes are expected from it, who will benefit from it, and how it will provide a business solution. The document also identifies key stakeholders involved in the project and their roles.

In addition to setting out goals and objectives, a Project Charter also defines how success will be measured. This includes identifying key performance indicators (KPIs) that will be used to track progress towards achieving those goals. The Project Charter should also include a business case and business requirement document to ensure that the project aligns with the needs of the business stakeholders. Additionally, a functional specification document should be included to clearly outline the specific requirements for the project.

Business Requirements Document (BRD) – The How of the Project

Unlike a Project Charter which provides an overview of what needs to be done; A Business Requirements Document (BRD) describes how things should be done. As its name suggests, BRD details all business requirements necessary for successfully executing a given project. The BRD is also known as the System Requirements Specification (SRS) and includes a specific number of requirements that must be met for the project to be considered successful.

A BRD typically contains detailed information about functional requirements such as features or functionality required for software systems or other products/services offered by businesses. It outlines specific user requirements such as inputs/outputs required for each system function or process flow diagrams outlining how different parts interact with each other.

A BRD, also known as a requirement document, is usually created during the planning phase by business analysts or subject matter experts. It provides a detailed understanding of what the project will deliver, including how it will be delivered, and how it will meet business needs. Additionally, it may include a functional specification document that outlines the specific functions and features of the project, as well as the number of users that will be able to access it.

When to use a project charter and BRD

Use a project charter and a business case when initiating a project to define its purpose, scope, stakeholders, and business solution. Additionally, create a business requirement document and a functional specification document to further clarify the project’s requirements and specifications.

When starting a new project, it’s important to have a clear understanding of what you’re trying to achieve. That’s where the business case and project charter come in. The business case outlines the requirement for the project while the project charter outlines the purpose of the project, its scope, and who will be involved. It also sets out any constraints or assumptions that need to be taken into account, ensuring that all business stakeholders are on board with the project.

Use cases for a project charter include:

  • Starting a new business venture
  • Launching a new product or service
  • Undertaking an organizational change initiative

Use a BRD when the project has been approved by business stakeholders and you need to document detailed requirements.

Once your project has been approved, it’s time to start documenting detailed requirements. This is where the Business Requirements Document (BRD) comes in. The BRD defines what needs to be delivered by outlining specific features and functionality required by stakeholders.

The BRD should include details such as user stories, use cases, functional requirements, non-functional requirements, acceptance criteria, and any other relevant information needed for development teams to deliver against those requirements within the overall project. It is the responsibility of the project manager to ensure that the BRD covers all necessary aspects of the project.

Use cases for a BRD include:

  • Developing a new software application
  • Implementing a new system or process
  • Undertaking an infrastructure upgrade

How do Project Charter and BRD work together

Project charter and business requirements document (BRD) are two important documents that are used at the beginning of a project to ensure its success. While they serve different purposes, they work together to provide a clear understanding of the project’s objectives and the requirements needed to achieve them.

Project charter and BRD work together to ensure that the project’s objectives are met in a way that satisfies the business requirements. The project charter provides an overall framework for the project, while the BRD provides a detailed understanding of the business requirements that need to be met.

The project charter sets the project’s objectives and goals, and the BRD outlines the specific business requirements that need to be met to achieve those objectives. The BRD helps the project team understand the business context of the project and how their work will contribute to achieving the business goals.

Conclusion

Project charter and business requirements document (BRD) are two essential documents in project management. The project charter is a high-level document that outlines the overall project scope, objectives, key stakeholders, assumptions, and risks. On the other hand, BRD is a detailed document that describes the business solution and functional specifications of the project.

The Project Charter provides an overview of the entire project, setting the context, objectives, and stakeholders, while the BRD dives into specific details of the business requirements, capturing the functional and non-functional specifications necessary for the project’s success. The Project Charter establishes the foundation and direction, while the BRD guides the detailed implementation of the project.

It’s important to note that both documents have their place in a project’s lifecycle, especially when it comes to meeting the project’s requirements.

December 31, 2023

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