The Project Charter
The Project Charter is usually the first piece of documentation produced for a project. Its purpose is to make the project “official” and should be written by the sponsor. If a Project Charter is missing or poorly written, it can lead to ambiguity about the project objectives, scope, or solution. This could lead to project cancellation or cost and time overruns. If the Project Charter is not well-written, it is your responsibility as the Project Manager to go back to the project sponsor and help them create an adequate charter.
A Project Charter is a document that formalizes the request from a sponsor for responding to a business need. It is a clear statement of project intent, and it provides a preliminary delineation of roles and responsibilities. The Project Charter is issued by the sponsor, and it outlines the project objectives, identifies the main stakeholders, and defines the authority of the project manager. It serves as a reference of authority for the future of the project.
The Project Charter sets boundaries for the scope of the project. It formally recognizes the existence of a project. It should be issued by the project sponsor, and at a level appropriate to the needs of the project. It provides the project manager with the authority to apply organizational resources to project activities.
The Project Charter is usually a short document that refers to some other more detailed documents, such as a New Offering Request or a Request for Proposal.
Some project managers have never had a Project Charter, or if they did, they might have known it by some other name. Though in IPD, this document is known as the Project Charter, in CRM, it is known as the Project Definition Report. Both IPD and CRM require this document as part of the project management process. If the sponsor does not follow either process, it is good project management practice to insist upon the creation of a Project Charter. As a last resort, if you as the project manager cannot get someone in authority to write the Project Charter, it might be advantageous for you to write it and submit it to the sponsor for approval.
The Project Charter is an important tool for establishing the authority assigned to the project manager, especially in a matrix environment. It is considered industry best practice, and it is a defined WWPMM work product.
Who Creates a Project Charter
Project Charters are becoming more common in all kinds of project environments. Many organizations generate these documents in letter form. Within IPD, for example, the Project Charter is issued by the Integrated Portfolio Management Team (IPMT), which is the project sponsor. Within CRM, the Project Charter is written by the project sponsor. You need to understand the process for creating Project Charters within your business unit.
The purpose of the Project Charter is to document the: