Develop Project Charter
The process of creating a project charter that officially launches the project and empowers the project manager to commit organizational resources to project work.
Key Points
- Produces the project charter, which authorizes the project at a high level.
- Typically initiated and approved by a sponsor; approval grants PM authority.
- Occurs in the Initiating process group; may repeat at phase gates.
- Relies on the business case and agreements; expert judgment and facilitation are common tools; an assumptions log is started.
Example
A company plans to roll out a new CRM system. The sales VP sponsors the effort. The project manager works with key stakeholders to draft the charter covering the purpose, high-level scope, major milestones, budget ceiling, key risks, and success criteria. After the sponsor signs the charter, the PM is authorized to engage teams and use funds to begin planning.
PMP Example Question
Which process formally authorizes a project and gives the project manager the authority to use organizational resources?
- Develop Project Charter
- Develop Project Management Plan
- Direct and Manage Project Work
- Identify Stakeholders
Correct Answer: A — Develop Project Charter
Explanation: Develop Project Charter creates the charter, which authorizes the project and empowers the project manager to apply organizational resources.
