Project Toolkit

Project Charter

Project Charter

The foundational document that formally authorises a project and provides the project manager with authority to apply resources.

Project Charter

The Project Charter is the foundational document that formally authorises a project to exist and provides the project manager with the authority to apply organisational resources to project activities.

What is a Project Charter?

Definition: A Project Charter is a formal document that authorises a project, defines its objectives and scope at a high level, identifies key stakeholders, and grants the project manager authority to proceed.

Purpose

The Project Charter serves to:

  • Authorise the project formally
  • Define high-level objectives and scope
  • Identify the project manager and sponsor
  • Establish authority to apply resources
  • Create a shared understanding among stakeholders

When is it Created?

flowchart LR A[Business
Need] --> B[Project
Mandate] B --> C[Project
Charter] C --> D[Project
Initiation] D --> E[Detailed
Planning] classDef blue fill:#108BB9,stroke:none,color:#fff class A,B,C,D,E blue

The Charter is typically created during the initiation phase, after the business need has been identified but before detailed planning begins.

Charter vs Other Documents

Document Purpose When Created
Project Mandate Initial idea, trigger for project Pre-project
Project Charter Formal authorisation Initiation
Project Brief Detailed justification Initiation
PID Full project definition End of initiation

Key Components

A Project Charter typically includes:

Essential Elements

Section Content
Project Title Clear, descriptive name
Project Purpose Why is this project needed?
Objectives What will the project achieve?
Scope Statement High-level boundaries
Key Deliverables Major outputs
Success Criteria How success will be measured
Project Manager Named individual with authority
Project Sponsor Executive accountable for project

Supporting Elements

Section Content
Key Stakeholders Main parties involved
High-level Timeline Key milestones and dates
Budget Estimate Order of magnitude cost
Key Assumptions Conditions assumed to be true
Key Constraints Limitations on the project
Key Risks Major uncertainties
Approval Signatures Sign-off from sponsor

Writing Effective Objectives

Use SMART criteria for project objectives:

Criterion Description Example
Specific Clear and precise “Implement new CRM system”
Measurable Quantifiable “Reduce processing time by 30%”
Achievable Realistic Within team capabilities
Relevant Aligned to business need Supports sales growth strategy
Time-bound Has deadline “Complete by Q3 2026”

Scope Statement Tips

The scope statement should be:

  • High-level - Not detailed requirements
  • Bounded - Clear what’s in and out
  • Agreed - Stakeholders aligned
  • Flexible - Allows for refinement later

In Scope / Out of Scope

In Scope Out of Scope
What the project WILL deliver What the project will NOT deliver
Boundaries of work Exclusions and limitations
Included locations/teams Excluded locations/teams

Authority Granted

The Charter grants the Project Manager authority to:

  • Allocate assigned resources
  • Make day-to-day decisions
  • Communicate with stakeholders
  • Escalate issues to sponsor
  • Spend within approved budget

Approval Process

flowchart LR A[Draft
Charter] --> B[Review with
Stakeholders] B --> C[Refine
Content] C --> D[Sponsor
Approval] D --> E[Charter
Issued] classDef blue fill:#108BB9,stroke:none,color:#fff class A,B,C,D,E blue

The Charter should be:

  1. Drafted by the project manager
  2. Reviewed with key stakeholders
  3. Refined based on feedback
  4. Approved by the project sponsor
  5. Distributed to stakeholders

Common Mistakes

Mistake Impact Avoidance
Too much detail Becomes a plan, not authorisation Keep high-level
No clear authority PM lacks mandate Explicitly state authority
Vague objectives No clear success criteria Use SMART objectives
Missing sponsor No executive backing Identify sponsor early
Not signed No formal commitment Get signatures

Charter Checklist

  • Project title clear and descriptive?
  • Purpose and business need stated?
  • SMART objectives defined?
  • High-level scope documented?
  • Key deliverables listed?
  • Success criteria identified?
  • Project manager named?
  • Sponsor identified and engaged?
  • Key stakeholders listed?
  • High-level timeline included?
  • Budget estimate provided?
  • Assumptions and constraints noted?
  • Key risks identified?
  • Sponsor signature obtained?
Last updated: 13 January 2026
Themes

Initiation

Governance

Planning