What is a Project Charter?

A project charter is a formal document that defines the projects objectives, goals, aims, stakeholders, scope, boundaries, responsibilities and other essential project details. It acts as the foundational guide for the projects to ensure all key deliverables, project milestones project timelines, project costs, project assumptions, project risks, success criteria and the implementation plan asre all clearly defined and documented. A detailed project charter includes input from project team members, and addresses stakeholder management, the role of the project initiatior and how the project should progress.

The project charter serves as a formal contract between the project sponsor and the project team, giving official authorisation for a project to commence. An effective project charter is key for project planning, stakeholder alignment and guiding the project to completion.

Project Charter vs. Other documents

In project management, understanding the difference between a project charter and other key project management documents is key to ensuring the success of a project. While the project charter gives a birds-eye view of the projects objectives, scope and key stakeholders, it differs from other project documents such as a project plan, business case and project scope statement. Lets compare the three documents below:

The project Charter

The project charger is typically generated during the initiation phase of a project and acts as a formal document that authorises the commencement of the project -defining key project elements such as scope, resources and key stakeholders.

The Business Case

The business case in contrast, is developed to justify the need for the project. It presnets the rationale, expected outcomes and potential return on investment, helping decisions makers to determine if the project aligns with organisational goals and is worth pursuing.

The Project Plan

On the other hand, the project plan, is a comprehensive document that defines how the project will be executed, measured and controlled. It includes key elements like the project schedule, project budget, risk management plans and more. The project plan is far more detailed than the project charter and is used throughout the project lifecycle to guide the delivery team and measure progress.

The Project Scope Statement

The project scope statement, provides a detailed descriptions of the projects boundaries, deliverables and requirements and is often included with the project plan. It clarifies what is included and excluded from the project, helping to prevent scope creep and ensures and project stakeholders have a shared understandng of the projects objectives.

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