Project Charter

May 27, 2025
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What is a Project Charter?

A project charter is a formal document that authorizes the start of a project. It outlines the project’s objectives, identifies the key stakeholders, and defines the authority of the project manager. This document serves as a reference point throughout the project’s life, helping to align expectations and guide decision-making. It is typically created in the early stages of the project lifecycle and approved by a sponsor or senior leader. It ensures that everyone involved understands the scope, goals, and high-level requirements before work begins.

The project charter marks the official beginning of a project. It provides a high-level view without detailing specific tasks or timelines. Its purpose is not to manage the day-to-day activities but to establish a shared understanding of what the project aims to achieve and who is accountable for its success.

Key Points

  • Authorizes the official start of a project.
  • Identifies the project manager and defines their level of authority.
  • Summarizes high-level goals, scope, and constraints.
  • Includes key stakeholders and their roles.
  • Approved by a project sponsor or other senior authority.

Related Terms

  • A project scope statement provides detailed descriptions of deliverables and boundaries, often expanding on the charter.
  • The project sponsor is the individual who champions the project and often signs off on the charter.
  • A stakeholder register lists people or groups affected by or involved in the project, many of whom are identified in the charter.
  • A project plan builds upon the foundation set by the project charter, including schedules and resource allocation.
  • The business case justifies the project’s existence and often precedes the development of the charter.

Project Charter: Example

A company plans to implement a new customer relationship management (CRM) system. The project charter names the project manager, outlines the business need, sets a six-month timeline, and identifies the marketing and IT departments as key stakeholders. It also grants the project manager authority to assign tasks and request resources. Once approved by the executive sponsor, the team begins planning based on the direction provided in the charter.

Project Charter: Best Practices

  • Engage key stakeholders early to ensure their input and support.
  • Keep the document concise and focused on high-level information.
  • Clearly define the project manager’s authority and responsibilities.
  • Use the charter as a communication tool to align expectations and ensure clarity.
  • Review and update it if significant changes occur in the project direction.

Additional Resources

Project Charter - Project Management Absolute Beginner's Guide     Project Charter - The Project Management Tool Kit: 100 Tips and Techniques for Getting the Job Done Right

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