The Project Charter is a document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities. It establishes the project’s legitimacy, identifies the project manager, and links the project to strategic objectives.
This document serves as the foundation for project planning and execution.
Key Characteristics
- Formal Authorization – Confirms the project’s official launch
- Establishes Authority – Names the project manager and their delegated power
- Strategic Alignment – Connects the project to broader organizational goals
- Foundation for Planning – Precedes and enables the development of the project management plan
Example Scenarios
- A sponsor signs a charter to initiate a product development project
- The charter grants the project manager access to cross-departmental resources
- An external client’s approval of a project charter triggers internal planning activities
Role in Project Initiation
- Provides Clear Direction – Sets scope, objectives, and high-level requirements
- Enables Resource Allocation – Grants authority to acquire and assign assets
- Aligns Stakeholders – Establishes shared understanding of project purpose
- Supports Governance – Serves as the reference point for oversight and escalation
See also: Portfolio Charter, Program Charter, Project Management Plan, Governance, Strategic Alignment.