HKSM

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Purpose & When to Use

• Authorize the project or phase so work can officially start.
• State the problem or opportunity, expected benefits, and measurable objectives.
• Name the sponsor and project manager, and clarify decision and spending authority.
• Summarize scope boundaries, key milestones, budget limits, major risks, and assumptions.
• Align the initiative with organizational strategy and funding.
• Use at the very start of a project or phase, and update only if there is a major shift in direction.

Mini Flow (How It’s Done)

• Review the business case, agreements, and any prior analyses to understand the need and benefits.
• Hold a short workshop with the sponsor and key stakeholders to agree on vision, objectives, and success criteria.
• Define high-level scope and boundaries, major deliverables, and what is explicitly out of scope.
• Outline major milestones, target completion date, and funding cap or budget range.
• Capture key risks, assumptions, constraints, and known dependencies.
• Document governance: roles, escalation path, decision rights, and the project manager’s authority.
• Draft the charter using the organizational template or lessons learned from similar projects.
• Validate the draft with stakeholders, resolve conflicts, and refine content.
• Obtain formal sponsor approval and signatures to authorize the project.
• Communicate the approved charter to stakeholders and store it in the project repository.

Quality & Acceptance Checklist

• Clear business need and linkage to strategy or benefits are stated.
• Objectives are specific and measurable, with success criteria and target dates.
• Scope boundaries and major deliverables are summarized, including what is out of scope.
• Budget limit or funding approach is identified, with a high-level cost estimate if available.
• High-level schedule and milestone map are included.
• Key risks, assumptions, and constraints are listed.
• Sponsor, project manager, and key roles are named with decision and spending authority clarified.
• Governance and escalation path are described.
• Dependencies on other initiatives or external parties are noted.
• Approval method and signatures are captured, with version control information.
• References to the business case, agreements, or feasibility studies are included.
• Communication expectations for kickoff and early stakeholder engagement are defined.

Common Mistakes & Exam Traps

• Confusing the charter with the project management plan; the charter is brief and high level.
• Starting detailed planning or execution without sponsor authorization.
• Overloading the charter with task-level details or fully developed baselines.
• Failing to state the project manager’s authority and decision rights.
• Ignoring key stakeholders during drafting, leading to misaligned objectives.
• Not linking objectives to measurable success criteria and expected benefits.
• Copying a template without tailoring to actual constraints and risks.
• Overlooking external agreements or contracts that drive scope and constraints.
• Assuming the project manager creates and approves the charter alone; the sponsor authorizes it.
• Forgetting that the charter can be lightweight in adaptive life cycles while still giving direction and authority.

PMP Example Question

A team begins work to meet an aggressive deadline, but there is no signed project charter. What should the project manager do next?

1. Continue work and create a detailed schedule to control progress.
2. Hold a risk workshop to identify early threats and opportunities.
3. Work with the sponsor to obtain formal authorization and approve the charter.
4. Start developing the project management plan to guide the team.

Correct Answer: C — Work with the sponsor to obtain formal authorization and approve the charter.

Explanation: Without an approved charter, the project lacks official authorization and authority. The immediate action is to secure sponsor approval before continuing work.