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Project Charter

5 minutes 5 Questions

The Project Charter is a formal, usually short document that defines and authorizes the project or a phase. It includes high level information about the project such as project purpose, objectives, stakeholders, deliverables, boundaries, constraints, and assumptions. It acts as a contract between the project sponsor, key stakeholders, and the project team, by stating the common understanding about the project. The project scope statement is typically derived from the project charter. The project charter gives the project manager authority to allocate resources to the project and make decisions on behalf of the project.

Guide to Project Charter

What is a Project Charter: A Project Charter is a formal, usually short document that defines your project. It lays out what the project is, who the stakeholders are, what the goals are, and how those goals are to be achieved.
Why it is Important: It is important because it provides a preliminary delineation of roles and responsibilities, outlines the project's key goals, identifies the main stakeholders, and defines the authority of the project manager. It serves as both the anchor point and the compass, guiding the project team through any uncertainty or confusion.
How it Works: It works by clearly outlining the project's direction, assuring all stakeholders and team members understand what is required, and helps the project team to stay on track.
Exam Tips: Answering Questions on Project Charter: Understand the purpose and components of a project charter. Show the ability to interpret details from a given scenario and be prepared to answer questions on how to draft a project charter.
Tips:
-Always link your answers back to project goals and stakeholders.
- Discuss how the project charter leads to project success.
- Name the components of a project charter and their purposes.
- Explain the authority of a project manager in respect to the project charter.

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CAPM - Project Scope Management Example Questions

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Question 1

You've been hired as a project manager to oversee the setup of a new warehouse. During the project, an influential stakeholder suggests a complete overhaul of the storage system which wasn't in the project charter. How should you proceed?

Correct Answer: Evaluate the scope, risk, and resource implications to the project, and then follow the change control procedures for handling this request.

The best approach is to evaluate the scope, risk, and resource implications of the proposed change to the project, and then follow the established change control procedures for handling this request. As a project manager, it's important to carefully consider any proposed changes to the project, even if they come from an influential stakeholder. Making changes to the project charter without proper evaluation and approval can lead to scope creep, delays, and budget overruns. The other options are not appropriate because: - Changing the project charter to include the new storage system without evaluation would be irresponsible and could have negative consequences for the project. - Rejecting the request outright without consideration would not be professional and could damage the relationship with the stakeholder. - Implementing the new system without consulting other stakeholders would be a significant risk and could lead to project failure.

Question 2

You have completed the Project Charter and it’s ready for approval. Who should approve it?

Correct Answer: The Project Sponsor

The Project Charter is a critical document that bestows authority and power to the Project Manager and provides a high-level overview of the project. Therefore, it should be formally approved by an individual outside the project, typically the Project Sponsor. The Project Sponsor is someone at a senior level in the organization who has the authority and credibility to approve and support such a significant document. Although the Project Manager and the Stakeholders have vital roles in the project, they typically do not have the authority to approve a Project Charter. Therefore, 'The Project Sponsor' is the correct answer and not 'The Project Manager', 'The Stakeholders', or 'All of the above'.

Question 3

What is the primary purpose of a Project Charter in project management?

Correct Answer: To formally authorize the project and provide the project manager with authority

The primary purpose of a Project Charter in project management is to formally authorize the project and provide the project manager with authority. This is the correct answer because:

1. It officially initiates the project
2. It grants the project manager the necessary authority to use organizational resources
3. It serves as a reference point for project scope and objectives

The other options are incorrect for the following reasons:

Providing a detailed schedule of activities and milestones is typically part of the project management plan, not the Project Charter.

Outlining the complete budget allocation for each phase is usually done in the budget plan or financial management plan, which is more detailed than the Project Charter.

Serving as a comprehensive risk management plan is not the primary purpose of a Project Charter. Risk management is a separate process that is typically documented in a risk management plan.

The Project Charter is a high-level document that establishes the project's existence and provides a broad overview, rather than detailed plans for specific aspects of the project.

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