What is the role of a project charter in relation to the business case?

A project charter plays a significant role in establishing the foundation for a project, and its relationship to the business case is particularly important. The project charter outlines critical components such as the project objectives, scope, and high-level requirements. This detail is essential as it helps to ensure that everyone involved has a clear understanding of what the project intends to achieve and the boundaries within which it operates.

The project charter is created after the business case has demonstrated the need for the project and justified its initiation, providing formal authorization to move forward. By succinctly specifying the project objectives and scope, the charter aligns the project with the strategic goals outlined in the business case, ensuring that all stakeholders are on the same page about what the project will deliver and the intended outcomes.

This focus on objectives and scope is crucial for guiding project planning and execution, making it central to successful project management. By contrast, aspects such as identifying potential project sponsors or assigning tasks to team members are not the primary functions of a project charter, and serving as a final report does not align with the purpose of the charter at all.