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Project Charter: Why This Simple Document Is Key to Project Success

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Project Charter: First Step to Project Success

When starting a new project, many people jump quickly into tasks and deadlines. But in real project management, that is not the right way. You must first define the base, the purpose, the reason of the project. For that, we use something called the project charter.

In this article, we will explain what is a project charter, why it is important, what is included inside, and how it helps you in whole project journey.

What Is a Project Charter?

A project charter is a short official document that gives the green light to start a project. It explains what the project is, who is involved, why the project is being done, and what are the high-level goals.

You can think of it like a birth certificate for the project. Once the project charter is approved, the project becomes real. The project manager is given authority to start working, build the team, and begin planning.

Why Is Project Charter Important?

The project charter is small, but very powerful. It brings many benefits for project team and stakeholders.

1. Gives Clear Purpose

It explains why the project exists. This is important to keep team focused on real goals.

2. Official Authorization

Without project charter, there is no official approval. With it, the project manager has power to take decisions and use resources.

3. Sets Expectations

It gives early idea of what will be done, what success looks like, and what are the main risks or limits.

4. Supports Communication

Stakeholders, sponsors, and team members can all refer to the project charter when they have questions about scope or objectives.

What Is Included in a Project Charter?

There is no one fixed format, but most project charters include some common parts. Here are the usual elements:

1. Project Purpose or Justification

Why this project is needed? What problem it solves, or what opportunity it takes?

2. High-Level Project Description

A short explanation of what the project will deliver. This is not full detail, but enough to understand.

3. Objectives and Success Criteria

What goals the project must meet, and how we will measure success.

4. High-Level Requirements

Big requirements that must be met (for example: "System must be mobile-friendly").

5. High-Level Risks

Known risks at this stage. Like time constraints, budget risk, or dependency on external vendor.

6. Project Manager Name and Authority

The project charter gives name of the person who will manage the project, and tells that they have right to lead it.

7. Key Stakeholders

Important people who are affected by project or have power to influence it.

8. Budget Summary

Rough estimate of cost or resources. Not full budget, but an idea.

9. Project Timeline or Milestones

High-level dates or phases. Like “Phase 1 complete by September.”

10. Approval Section

The part where sponsor or top manager signs the project charter to make it official.

Who Writes the Project Charter?

Usually, the project sponsor writes it, or gives the input. Sometimes project manager also helps prepare the project charter draft.

But it is the sponsor who approves and signs it. This is very important. Without sponsor approval, the project should not begin.

When Is Project Charter Created?

The project charter is made early — in the Initiation Phase of project. Before detailed planning, before making schedules or assigning tasks, we create this document.

This way, the project starts with a strong base. Team knows the direction, and manager knows the authority.

How Project Charter Helps During the Project

You may ask — if we make this document only at the beginning, how does it help later?

Actually, the project charter is helpful during whole life of the project.

  • It reminds everyone of the original purpose. So we don’t lose focus.

  • When there is a conflict or confusion, we can check charter for what was agreed.

  • It helps to explain project to new team members or external people.

  • If something big changes, the project charter can be updated (but usually only by sponsor).

Also, if there is no project charter, the project can face problems:

  • No clear goals

  • Team confusion

  • Weak support from top management

  • No authority for project manager

So always start with project charter. It is small document, but big value.

Example of a Simple Project Charter (Short Form)

Here is a quick example to help you imagine:

Project Name: Website Redesign for ABC Company
Purpose: Improve user experience and boost online sales by 25% in 6 months.
Project Manager: Maria Lopez (has full authority over team and budget)
Main Deliverables: New responsive website, online store integration
Key Stakeholders: Marketing, IT, Sales teams
Estimated Budget: $40,000
Timeline: Project start June 2025, finish by October 2025
Risks: Delay from external vendor, possible changes in product line
Approval: John Smith, CEO – Date: 25 May 2025

Final Words

The project charter is your project’s first step. It is not just a formality. It gives clear vision, structure, and support. It makes sure everyone agrees from the beginning.

If you are a new project manager, or want to improve your project success rate, always ask: Do we have a project charter? If answer is no, take time to create it.

It saves time, reduces risk, and builds confidence — from start to end.