Project Charter Content: What, Who, and Success Criteria

PMBOK v8 Definition

The project charter is a document issued by the project sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities. According to PMBOK v8, the project charter includes specific elements that define what constitutes success, who decides the project is successful, who approves the project, and the conditions to close or cancel the project. This document is developed in the Develop Project Charter process, which belongs to the Initiating Process Group.

Why It Matters for the Exam

The project charter content is frequently tested on the PMI exam because it establishes the foundational authority and boundaries for the entire project. Questions often appear in scenario-based items where you must identify which elements belong in the charter versus the project management plan, or determine who has the authority to approve changes to charter elements.

Key Points to Remember (for the exam)

• Project Approval Requirements: Defines what constitutes success, who decides the project is successful, and who approves the project
• Project Exit Criteria: Specifies conditions to be met to close or cancel the project or phase
• Assigned Project Manager: Includes responsibility and authority level
• Sponsor Authority: Name and authority of the sponsor or other person(s) authorizing the project charter
• Key Stakeholder List: Identifies all key stakeholders
• Summary Milestone Schedule: High-level schedule of key milestones
• Preapproved Financial Resources: Budget authority already granted
• All Project Risks: High-level risks identified at project initiation
• Project Scope Description: Progressively elaborated, includes deliverables and acceptance criteria
• Project Exclusions: What is explicitly not included in the project

Typical PMI Exam Example

A project sponsor asks the project manager to approve a budget increase for scope changes. The project manager explains that the sponsor, not the project manager, has the authority to approve changes to the project charter and its elements. The sponsor reviews the project approval requirements documented in the charter to confirm who decides project success.

PMI Exam Traps

• Trap: Confusing project charter content with project management plan content

• Reality: The charter contains high-level information (summary milestones, preapproved budget), while the plan contains detailed execution information

• Trap: Thinking the project manager can modify the charter independently

• Reality: The sponsor or authorizing entity controls the charter; the project manager recommends changes

• Trap: Believing exit criteria only apply at project closure

• Reality: Exit criteria apply to closing OR canceling the project or phase at any point

• Trap: Confusing project approval requirements with acceptance criteria for deliverables

• Reality: Approval requirements define overall project success; acceptance criteria define deliverable-specific success

Important PMI Connections

Quick Review Questions

1. Which document contains the project approval requirements defining what constitutes success and who decides the project is successful?

2. Who has the authority to approve changes to the project charter?

3. What are the conditions to be met to close or cancel a project or phase called?

4. Which charter element provides the project manager with authority to apply organizational resources?

5. What is the difference between project approval requirements and acceptance criteria?

PMBOK v8 Reference

Section 2.3.1 - Develop Project Charter (Initiating Process Group) Section 2.2.2 - Project Charter Content Elements