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5.2 The Project Charter
The Project Charter is the "Birth Certificate" of the project. It is the formal document that authorizes the project manager to exist and use company resources.
🏛️ The PM's Source of Power
The Charter is not just paperwork; it is the foundation of your authority. Without an approved charter, you are just a person with an idea, not a Project Manager.
Formal Authorization
Sign-off from the Sponsor (the person providing the money/resources).
PM Appointment
Explicitly names the Project Manager and defines their level of authority.
Strategic Anchor
High-level goals, success criteria, and summary milestones.
📋 Standard Charter Components
While every company has its own template, the PMP exam expects these core elements:
- Project Purpose: The "Why" (linked to the Business Case).
- Success Criteria: Measurable goals (e.g., "Launch by Q3 with <5% defect rate").
- High-Level Requirements: The "Big Picture" constraints.
- High-Level Risks: Known threats identified during initiation.
- Summary Milestone Schedule: Major phase endpoints.
- Pre-approved Budget: The high-level funding envelope.
- Assumptions & Constraints: The project boundaries.
🛠️ 2026 Shift: Collaborative Evolution
Traditional PMBOK implies the Sponsor writes the charter. In modern 2026 practice, the Project Manager often drafts it in collaboration with the Sponsor. This ensures the PM has empathy for the business goals before planning starts.
🛑 What a Charter is NOT
- A detailed plan: No task lists or day-by-day schedules here.
- A contract: It is an internal organizational document.
- Static: While it doesn't change often, if the business case evaporates, the charter must be reassessed.
📝 Exam Insight: If a Functional Manager refuses to release a resource because they "don't report to you," show them the Project Charter. This document proves you are authorized by Senior Management to request those resources.