PMP lesson · Project Initiation & Business Value · Starting the project · lesson 1 of 4 · about 7 minutes
The project charter: the official 'go'
All approaches (hybrid and agile projects also need authorisation)Free full lesson
Goal: After this lesson you can explain what the charter does, what it contains, who signs it, and what to do when someone wants to start work without one.
1The situation
“Start now, paperwork later”
A senior executive calls: “The customer is ready. Start the robot cell immediately. The charter will be written later.”
It sounds efficient. But without a charter nobody has formally authorised the money, nobody has agreed the objectives, and you have no formal authority to use people from other departments.
In PMP logic, the project does not exist until the charter is signed.
2What the charter does
The project charter formally authorises the project and gives the project manager authority to use organisational resources. It links the project to the organisation's strategy.
Authorises
The project exists
Money and people can now be committed.
Names the PM
With authority
States how much authority the PM has.
Signed by
Sponsor / initiator
Someone with the authority to fund the project, not the PM.
“Charter will follow”, “start immediately”, “verbal approval” → get the charter signed first. Work with the sponsor to develop it.
High level only
The charter is short and high-level: purpose, objectives, high-level scope, summary milestones and budget, key risks, assumptions, constraints, the PM's authority. Details come later in the project management plan.
Hybrid and agile projects
Hybrid and agile projects also need authorisation. A project charter authorises the project; a team charter describes how the team works. They are different documents.
3What is in a charter
Why
Purpose, business justification, measurable objectives and success criteria.
What
High-level scope and requirements, key deliverables, summary milestones, summary budget.
Who & how much authority
Sponsor, the project manager named and their authority level, key stakeholders.
Risks & limits
High-level risks, key assumptions and constraints.
Approval
Signed by the sponsor or initiator.
Not included
Detailed schedule, detailed budget, WBS: those come in planning.
One to three pages; high-level; signed by the sponsor.
Where the charter sits
Business case / need
→
Why should we do this?
Project charter (signed by sponsor)
→
The project exists; the PM has authority
Stakeholder identification, kick-off, planning
→
Detailed plans and baselines
4Worked example: “start now”
Given: Executive: start immediately; charter later.
Don't
Start planning informally or hold the kick-off
No authorisation, no authority
Don't
Just log the verbal instruction and proceed
A log entry is not authorisation
Do
Work with the sponsor to draft and sign the charter quickly
Often a 1–2 day task
Then
Kick-off, planning, mobilising people
With clear authority and objectives
Getting the charter signed is usually fast, and it protects everyone: the customer, the sponsor, the team and the PM.
5Wrong vs right: the common traps
✘ Wrong thinking
“The PM signs the charter.”
✔ Right thinking
The sponsor or initiator issues it; the PM may draft it.
✘ Wrong thinking
“Agile projects don't need a charter.”
✔ Right thinking
Every project needs authorisation; agile teams may also write a team charter.
✘ Wrong thinking
“Start planning informally to save time.”
✔ Right thinking
Get the charter signed first: without it there is no project and no authority.
✘ Wrong thinking
“The charter contains the detailed schedule and budget.”
✔ Right thinking
It has summary milestones and budget; detail comes in planning.
✘ Wrong thinking
“A department manager can refuse the PM's requests if the charter names the PM.”
✔ Right thinking
Show the charter, explain the authority it gives, and agree how resources will be involved.
6How it looks on the exam
Exam-style question 1. A senior executive tells you to start a project immediately and says the charter will be written later. What should you do FIRST?
A. Start planning informally to save time
B. Log the verbal instruction and proceed
C. Work with the sponsor to develop and sign the project charter
D. Hold a kickoff meeting with the team
Show the answer and the decode
Answer: C.
In simple English
Pressure to start without authorisation.
What is the question really asking?
The first step.
Key words / trigger
“charter will be written later”
PMP logic
No charter = no authorised project and no PM authority; get it signed first.
Why the wrong answer looks attractive
Starting informally seems efficient, but the work is not authorised.
Exam-style question 2. A hybrid project will use sprints for software and a fixed plan for installation. Is a project charter needed?
A. No, agile projects use a team charter instead
B. Yes, the project charter authorises the project regardless of the approach
C. Only for the predictive part
D. Only if the contract requires it
Show the answer and the decode
Answer: B.
In simple English
Mixed delivery approach.
What is the question really asking?
Whether a charter is needed.
Key words / trigger
“hybrid”
PMP logic
Authorisation is needed for every project; the delivery approach doesn't change that.
Why the wrong answer looks attractive
Confusing the team charter (how we work) with the project charter (authorisation).
7Remember this
Your memory card
Charter = authorises the project and names the PM with authority