What is the purpose of a 'project charter'?

The purpose of a project charter is to serve as a formal document that establishes a project and outlines its objectives. It acts as a foundational agreement among stakeholders that communicates the project's goals, scope, and key deliverables. By clearly defining the purpose, objectives, and stakeholders, the project charter helps ensure everyone involved has a shared understanding of what the project aims to achieve and the boundaries that apply to it. This alignment is crucial for securing the necessary resources and support for the project’s success.

While the project budget, previous project outcomes, and risk assessment frameworks are important elements that can support project management, they are not the primary purpose of the project charter. Instead, the charter sets the stage for these components to be developed and managed effectively throughout the project lifecycle.