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1. Product Development Charter
Purpose
Use the Product Development Charter to establish a clear project scope, decision rights,
and executive sponsorship for the project. Be sure to customize this template accordingly.
When required, delete the sample text provided and fill in the blanks with information that
is directly related to the product development project.
This template has been pre-populated with an example of what a product development
charter might look like. Change, delete, or add to the example as required. Also, the
Product Manager will for all intents and purposes serve as the ‘project manager’ for
product development projects.

2. [Project Name]
Product Development Charter
By
[Enter Name Here]
For
[Enter Name Here]
Effective Date:
Document Owner:
Version:
Version Date Revision / Description Author:
Approval:
Approver Title:
Approval Date:

3. Table of Contents Page
1. Project Overview 3
2. Project Description 3
2.1 Project Purpose
2.2 Background
2.3 Project Scope
2.4 Project Deliverables
2.5 Project Timeframe
2.6 Project Resources & Responsibilities
3. Key Success Factors 6
4. Risk Identification 7
5. Project Stakeholders 8
6. Communication Plan 9
7. Decision Rights 9
8. Approval 10

4. 1 – Project Overview
The following table includes basic information that is associated with the product
development project. Please contact the product manager with any additional questions or
comments.
Project Title New Product XYZ
Project Sponsor VP of Product Development
Product Manager Product Manager
Product Manager
(Email) janedoe@abc-company.com; (phone) 1-555-555-5555
Contact Information
Director of Marketing
Director of Engineering
Project Team Members Director of Sales
Customer Service Manager
Other
Project Start Date October 1, 2012
2 - Project Description
2.1 Project Purpose Provide a brief description of the product that you would like to
develop or enhance. Outline the key market problems and needs that
you have identified that this product will address.
Document the benefits for each of the key user personas:
1. End User
 Makes life easier
 Eliminates frustration
 Etc.
2. Economic Buyer
 Provides a cost-savings

5.  Will generate clear ROI
 Etc.
3. Technical Evaluator
 Solution ‘fits’ environment
 No security issues
 Etc.
2.2 Background Provide any background information that would be needed to make a
decision to move forward with this project. This may include market
research, technical definitions, or any other relevant details.
2.3 Project Scope Document what is in scope for this project and explicitly state what is
not in scope. If you are planning on a phased approach, provide a
summary of what each phase will look like from your perspective. You
will find a brief example below:
The scope for this New Product Development includes:
 Identifying market needs from potential buyers
 Translating market needs into product features/requirements
 Developing a business case to support the decision to move
forward with the development of the product
 Launching and promotion of the new product
 Measuring the success of the new product introduction
It is understood that the project will unfold in three phases:
1. Planning
2. Execution & Launch
3. Measurement & Improvement
2.4 Project Deliverables 1. Planning Phase
 Market Research Report
 Market Segmentation & Sizing
 Customer Profiles
 Market Requirements Document
 SWOT Analysis
 Product Features Prioritization
 Break Even Analysis
 Competitive Analysis
 Product Positioning Statement
 Product Development Portfolio Prioritization

6.  Product Development Budget
 Product Development Business Case
2. Execution & Launch Phase
 Product Roadmap
 Product Launch Plan
 Product Launch Checklist
3. Measurement & Improvement Phase
 Post Project Evaluation
 Win/Loss Analysis
2.5 Project Timeframe Start date: October 1, 2012
Estimated end date: The first version of this product will be targeted at
launching in Q3 2012.
2.6 Project Resources Include roles, responsibilities for each project team member:
and Responsibilities
1. Product Manager
 Oversee product marketing & resource allocation
 Collect and report on market research
 Establish product features & requirements
 Development of business case
 Interfacing with Engineering group
 Develop strategies for promotion & distribution
 Create sales training and reference guides
 Manage product launch process
 Harvest customer insight
2. VP of Product Development
 Project approval and executive representation
3. Director of Engineering
 Translate customer requirements into product features
and technical specifications
 Development of proto-types and samples
 Work with beta-customers
 Maintain a product roadmap and budget
4. Director of Marketing
 Ensure consistent messaging in promotions

7.  Provide insight regarding production positioning
 Contribute to project with competitive analysis
 Facilitate development of user personas and customer
profiles
 Define key market segments and estimated market sizes
5. Customer Service Manager
 Establish customer service goals and processes to be
used when interacting with customers
 Definition of service level agreement
 Provide response mechanism and personnel to respond
to customer requests and issues
3 – Key Success Factors
What are the key success factors for the project (i.e. the factors that are a necessary
condition for success of the project)?
 Committed team members
 Adequate resource allocation
 Adequate project time allowance
 Tolerance for intangible benefits
How will success be measured? (Insert KPIs Here)
 Number of beta-customers
 Product sales
 Win/Loss ratio
 Customer feedback
 Successful implementation and use of development tools
 Adherence to service level agreement while attaining objectives

8. 4 – Risk Identification
What are some of the risks that may be encountered during the project? Indicate high-
level mitigation strategies. (Note: A risk is defined as anything that could potentially affect
the success of the project).
The following are a few examples of some of the risks the project may experience during a
new product development process. Add and delete rows and examples as they fit to the
organization.
Risk Category Probability Risk Mitigation Strategy
Project Team High Competing resources  Ensure personnel have clear
Availability when implementing a directives and are fully
multi-department committed to the project
project can jeopardize before it gets underway
program success.
Stability of High Evolving business needs  Clarify expectations with
Requirements could mean rapid change project owners (sales,
to requirements and on- marketing, customer service
the-fly adaptation. and front-line staff)
Lack of Adoption Medium Response time is critical  Ensure staff is equipped with
to achieving objectives, adequate monitoring tools
particularly in customer and know how to use them.
service.
 Develop process for issue
escalation as required.
Increased Cost of Low Additional resources  Augment existing customer
Servicing may be allocated to service responsibilities with
Customers product marketing new product requests.
campaigns without
 If a dedicated resource is not
seeing immediate ROI.
available, dedicate a specific
amount of time per employee
to be spent addressing
customer concerns and
create knowledge database
with FAQs.

9. 5 – Project Stakeholders
Project stakeholders are all of the people who have a vested interest in the project, yet are
not involved in the day-to-day operations of the project.
Stakeholder Name Role Project Responsibilities
Defining and evaluating strategy, identifying
market needs, communicating with other team
John Doe Product Manager members and stakeholders, obtaining metrics
and compiling weekly reports on project status,
conducting meetings.
Project approval, negotiating for resources,
Suzie Wong Project Sponsor reviewing reports, attending quarterly
meetings.
Defining and enforcing marketing strategy,
monitoring activities for compliance with
Carlos Lee Director, Marketing
messaging, reviewing reports, attending
monthly meetings.
Ensuring adequate IT resources are available for
the duration of the project, providing
Paul Templeton Director, IT technology support, managing security, privacy,
archival of content, attending quarterly
meetings.
Defining and promoting integrated sales tactics,
Director, Sales providing coaching on selling new product,
reviewing reports, attending monthly meetings.
Defining and enforcing customer service
Customer Service
strategy and service level agreement, reviewing
Manager
reports, attending monthly meetings.
Other <Enter Text Here>

10. 6 – Communication Plan
Provide an outline of the high-level communications plan. Specific dates are not required.
Stakeholder Frequency Method Purpose
Product Manager Weekly E-mail update  Discuss project progress,
issues, etc.
 Preliminary metrics and
evaluations.
 Rating relative effectiveness.
Product Manager, Monthly Meeting  Provide complete project
Stakeholders update.
 Get feedback from the team.
 Adjust strategy as necessary.
Product Manager, Quarterly Meeting  Outline wins and statistics
Stakeholders, Project from the previous quarter.
Sponsor
 Review roadblocks and
workarounds.
 Evaluate resource allocation.
 Plan for continued initiative.
7 – Decision Rights
To support the timeline of the project and respect executive time, the project manager has
decided on the following decision rights procedure:
1. Any e-mail or voicemail sent to the project sponsor that requires a go or no-go
decision will specify a decision date or time within reasonable limits.
2. A non-answer from the project sponsor by the specified date or time will imply
approval and the project may continue.
3. If the project sponsor does not agree or requires further clarification, he/she must
contact the project manager within the specified timeline.

11. 8 – Approval
___________________________________ _______________________________
Project Approver Signature Date
___________________________________ _______________________________
Project Sponsor Signature Date
___________________________________ _______________________________
Product Manager Signature Date