Why the Project Charter Matters More Than You Think
Every project needs a beginning. It is not just a kickoff meeting or a to-do list but a formal document that sets the tone, scope, and authority for everything that follows. That document is the project charter.
I’m Steven Sondang, a Seasoned Digital Marketer and Business Strategy Specialist with over 15 years of experience. I’ve seen countless projects derail simply because expectations or authority were ambiguous. The project charter matters because it’s more than just paperwork. It’s your license to lead.
Let’s unpack what makes a project charter impactful—and How to Create one that earns trust and accelerates execution.
What Is a Project Charter?
A project charter is a short, formal document that:
- Authorizes the project
- Appoints the project manager
- Aligns stakeholders on objectives, scope, and outcomes
It provides the first official communication that a project is real, resourced, and ready to proceed into the planning phase.
What Happens When You Don’t Have One?
Without a charter, teams often:
- Question the project’s legitimacy
- Struggle with unclear priorities
- Face resistance from other departments
- Operate with murky authority
A strong charter avoids all of that. It brings clarity, alignment, and legitimacy.
What Should Be in a Project Charter?
Here’s what every effective charter includes:
1. Project Name
Make it clear, concise, and relevant.
2. Project Purpose & Business Case
Explain why this project exists. Link it directly to strategic goals.
3. Objectives & Deliverables
Outline the key things your project will achieve and produce.
4. High-Level Scope Description
Include:
- What’s in scope
- What’s out of scope
- Key risks or assumptions
5. Budget Estimate
Provide an initial estimate or cap to frame financial expectations.
6. Key Milestones
Identify major checkpoints, deadlines, or decision gates.
7. Stakeholders & Team Members
List the key players—sponsors, managers, team leads.
8. Project Manager Details
Include:
- Name
- Responsibilities
- Level of decision-making authority
9. Sponsor Sign-Off
Include a formal declaration from the project sponsor that the project is supported and authorised.
Example: Simple Project Charter
Project Name: Expand Product Recommendations Engine
Project Purpose: Increase search-to-cart conversion by 28% this quarter
Objectives:
- Add recommendation module to product detail pages
- Launch A/B testing to validate conversion lift
- Track user behavior and click patterns
Deliverables:
- Live recommendation engine
- A/B testing plan and results
- Behavioral analysis dashboard
High-Level Risks:
- Technical integration delays
Budget Estimate: Not to exceed $2,100
Milestones:
- BRD: October 15
- A/B Test Ready: October 26
- Go Live: November 4
Team:
- Project Manager: Oliver
- Designer: Notos K.
- Backend Engineer: Assigned
Sponsor Statement: As COO, I formally authorise the execution of this project and appoint Oliver as project manager.
Why the Project Manager’s Authority Matters
A project manager doesn’t have built-in positional power, unlike a department head. Their authority exists only within the project context—and only for as long as the project runs.
The charter defines:
- Whether they can sign contracts
- Whether they can reassign internal resources
- What decisions can they make without escalation
This clarity avoids confusion and protects both the project and the PM.
How to Roll It Out
Once completed, the charter should be:
- Reviewed and approved by the sponsor
- Circulated to all impacted stakeholders
- Saved in a central project folder
A good charter doesn’t sit in a drawer. It lives—in team briefings, steering committee decks, and onboarding docs.
Summary
Creating a project charter isn’t about red tape. It’s about setting your project up for clarity, alignment, and confidence.
Done well, it builds the trust and support needed to start strong.
And when things inevitably change (as they always do), the charter becomes your north star—reminding everyone what the project was meant to achieve and why it mattered in the first place.
If you’re struggling to launch a project with clarity and conviction, I’m here to help. Let’s put structure behind your ideas and momentum behind your mission.
About The Author
