What is the purpose of a project charter?

The purpose of a project charter is to formally authorize a project and outline its objectives. A project charter serves as a foundational document that establishes the existence of the project and describes its high-level scope, goals, stakeholders, and the authority of the project manager. By clearly defining the objectives, it helps ensure that all team members and stakeholders are aligned and understand the project's purpose. This alignment is crucial for guiding the project's direction and reducing misunderstandings as it progresses.

In contrast, while monitoring progress and suggesting improvements is important for ongoing project management, this is not the primary purpose of the project charter. Tracking expenses and resource allocation is typically part of project management activities rather than the charter itself. Similarly, defining software testing protocols falls within the scope of project execution and planning rather than the initial authorization and objectives set forth in the project charter.