The project charter is a one-time announcement. It clearly establishes the project manager’s right to make decisions and lead the project.
The intent of a project charter is to give notice of the new project and new project manager and to demonstrate the upper management support for the project and the project manager. It is also used by the sponsor to provide a broad direction for the project to the project manager. The charter should precede the other project documents as it establishes the project manager’s authority which, in turn, is necessary to get the stakeholder agreements written.
There are two ways most firms organizations use the term project charter:
– A project definition document
– A formal recognition of authority
The project charter is the document that formally authorizes a project. The project charter provides the project manager with the authority to apply organizational resources to project activities. (PMBOK, PMI)
Sponsor, customer and if applicable Key Stakeholders
Developing the project charter is primarily concerned with documenting the business needs, project justification, current understanding of the customer’s requirements, and the new product, service, or result that is intended to satisfy those requirements.