Question

2. What are the prime objectives of the project charter and why it is important?

Answer 1

Project charter:

It is the main document issued by the prime sponsor of the project in the organization which gives complete authority to the project team members to use organizational resources for completing the project and approves the document with project detais.

Objectives:

• The prime objective of the project charter is to state the high level requirements to satisfy the complete needs of the stakeholders along with defining the authority of the project manager.
• Its objective is to determine the economic feasibility of the project along with tracking the progress of the project.
• It mostly determines the project schedule, budget timelines and risk factors and acts as a guide for project team members while continuing the project with respect to budget, reporting, schedule, timelines, risk factors and mitigation factors.

Importance:

It plays an important role for project achievement by the project team members by giving analysis of the stakeholders, to make them understand the business need and determine whether is it worth investing in the proposed project for the business. It also gives clear understanding about market demands, customer requirements, legal requirements and technological advance in the market. It defines the outcome of the project. It provides team with clear reporting system. It helps in analysing the risk factors using risk assessment matrix and aids in planning contingency plan to face risk.