It is developing a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities.
A well-defined project starts with well-defined boundaries, the creation of a formal record, and a direct way for senior management to formally accept and commit to the project.
The project charter establishes a partnership between the performing and requesting organizations. In the case of external projects, a formal contract is typically the preferred way to develop an agreement. In this case, the project team becomes the seller responding to the conditions of an offer to buy from an outside entity. A project charter is still used to establish internal agreements within an organization to assure proper delivery under the contract. The approved project charter formally initiates the project. A project manager is identified and assigned as early in the project as feasible, preferably while the project charter is being developed and always before the start of planning. The sponsoring entity should author the project charter. The project charter gives the project manager the authority to plan and execute the project. It is recommended that the project manager participates in developing the project charter to obtain a foundational understanding of the project requirements. This understanding will better allow for efficient resource allocation to project activities.
Projects are initiated by an entity external to the project, such as a sponsor, program, or project management office (PMO) staff person or a portfolio governing body chairperson or authorized representative. The project initiator or sponsor should be at the appropriate level to procure funding and commit resources to the project. Projects are initiated due to internal business needs or external influences. These needs or influences often trigger the creation of a needs analysis, feasibility study, business case, or description of the situation that the project will address. Chartering a project validates the alignment of the project to the strategy and ongoing work. A project charter is not considered a contract because there is no consideration or money promised or exchanged in its creation.
Define Project Scope
Create Project Charter Document