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Project Charter

A project charter is a formal document that summarizes the project's goals and intended results. It also serves as the official go-ahead for the project and grants the team, typically the project manager, the authority to begin work.

Key Points

  • Issued early by a sponsor or approving authority to start the project.
  • Captures purpose, high-level scope, success criteria, budget, and major milestones.
  • Names the project manager and defines their level of authority and responsibility.
  • Identifies key stakeholders and links the project to the business case or strategic need.

Example

A company approves a charter to implement a new customer portal: it states the objective to reduce support calls by 20% in 9 months, lists high-level features, allocates a budget, names Jordan as the project manager with authority to use cross-functional resources, and authorizes the team to start planning.

PMP Example Question

Which document formally authorizes the project and gives the project manager authority to apply organizational resources?

  1. Project charter
  2. Project management plan
  3. Statement of work
  4. Business case

Correct Answer: A — Project charter

Explanation: The project charter provides formal authorization to start the project and grants the project manager authority to use resources.

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