Project charter
Tempo Team
Project charter
A project charter is a formal document that outlines the purpose, objectives, scope, and key stakeholders of a project. It serves as an official agreement that authorizes the project’s existence and empowers the project manager to begin work.
What is a project charter?
A project charter refers to a guiding document in project management that sets the foundation for how a project will be executed. It identifies the goals, stakeholders, and resources while clarifying the authority of the project manager. Typically created in the initiation phase, a project charter ensures alignment between stakeholders and provides a clear reference point throughout the project lifecycle.
By defining the “why,” “what,” and “who” of a project, the charter reduces ambiguity and serves as a communication tool that helps avoid scope creep or misaligned expectations.
The role of a project charter
A project charter is often the first official step in project management. It gives stakeholders clarity about the project’s objectives and establishes boundaries for scope, time, and resources. Without a charter, projects may lack direction, making it difficult to measure success or gain stakeholder support.
A typical project charter definition includes:
Project purpose and objectives: Why the project exists and what it intends to achieve.
Scope overview: High-level details of what will and won’t be included in the project.
Key stakeholders: Who is sponsoring, managing, and impacted by the project.
Project manager authority: The extent of decision-making power granted.
High-level timeline and budget: Estimated schedule and cost boundaries.
This document is usually created by the project sponsor or initiator and then approved by executive leadership before work begins.
Project charter examples
The following scenarios are project charter examples that help illustrate the concept:
Example 1: Software implementation A company planning to adopt a new customer relationship management (CRM) system drafts a project charter outlining the business problem (inefficient sales tracking), objectives (increase visibility into sales pipeline), scope (migration of all data from the old system), and stakeholders (IT team, sales team, external vendor). The project manager is authorized to allocate resources and manage timelines.
Example 2: Marketing campaign launch A marketing department creates a project charter for a new brand awareness campaign. It defines objectives (increase brand engagement by 25%), scope (social media ads, video production, and influencer partnerships), timeline (six months), and key stakeholders (marketing director, creative team, external agency).
Example 3: Construction project A construction firm drafts a project charter for building a new office space. The document includes the purpose (expand headquarters), objectives (build 50,000 sq. ft. office), scope (design, permits, construction), stakeholders (executive leadership, facilities team, contractors), and the project manager’s authority to approve design and budget changes.
These project charter examples demonstrate how charters vary across industries but consistently provide structure and accountability.
Benefits of a project charter
A well-prepared charter delivers several benefits:
Aligns stakeholders on vision and scope.
Reduces misunderstandings and scope creep.
Provides a reference point for decision-making.
Establishes accountability for project outcomes.
By creating this single source of truth, organizations set their projects up for success from the beginning.
Common challenges
Even though project charters are powerful, they can face challenges. Poorly defined objectives, lack of stakeholder buy-in, or overly vague scope can weaken the charter’s effectiveness. To avoid this, project sponsors and managers should ensure the document is detailed enough to provide direction but flexible enough to adapt to change.
Wrap up
In summary, a project charter describes a foundational document that authorizes and guides projects. Understanding what a project charter is reveals its importance in setting direction, scope, and authority. Reviewing the three project charter examples above helps shows how it applies in real-world contexts, from software implementations to marketing campaigns and construction projects. A strong project charter increases the chances of project success by providing clarity, alignment, and accountability.