HKSM
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?
- Project charter
- Project management plan
- Statement of work
- 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.
