Project Charter

The formal document that defines a project, the reason for doing it, and the high-level details needed to accomplish it. The output of the initiation phase.

Explanation

A charter clarifies the what, why, and who of a project so everyone — sponsor, team, stakeholders — agrees before any work begins. It ensures benefits outweigh costs and acts as the reference doc throughout the lifecycle. It can evolve, but every change should be intentional.

Distinct from a project proposal: a proposal persuades stakeholders to start; a charter formalizes the project after the decision is made. Proposal comes first in initiation; charter comes later.

Typical contents

  • Introduction / project summary
  • Goals and objectives (often using smart-goals and okr-framework)
  • Business case / benefits and costs (fed by cost-benefit-analysis)
  • Project team
  • Scope (in / out)
  • Success criteria
  • Major requirements / key deliverables
  • Budget
  • Schedule / timeline / milestones
  • Constraints and assumptions
  • Risks
  • OKRs
  • Approvals / sign-offs

Application

Draft the charter toward the end of course-2-project-initiation, after you’ve talked to stakeholders, scoped deliverables, and run a CBA. Get the sponsor’s signature before moving into planning. Revisit and update it when scope or triple-constraint assumptions change.

Connections

Source References