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TOPIC: Benefit of Project Charter vs. Business Case

Benefit of Project Charter vs. Business Case 1 week 1 day ago #24488

  • Sabrina Dhanjal
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Hey all! I got this question during a timed PM PrepCast quiz (Q ID# 612237):

What is the key benefit of developing a charter for a project?
A ) Providing the project manager with the formal authority to manage the project
B ) Creating a contract between the project manager and the performing organization
C ) Linking the project to the strategic objectives of the performing organization
D ) Creating a comprehensive document that defines the basis of all project work

I had selected A, but the correct answer is C. Reading the details for A, I now understand that providing authority to the PM is outlined in the Charter, but is not the key benefit. But I am confused how the answer is C ("One of the key benefits of developing the project charter is to provide a direct link between the project and the strategic objectives of the organization"). Doesn't the Business Case outline how the project/product aligns with the organization's strategic goals?

Apologies if this question has been asked before - I searched the forum but couldn't find a response that addressed this directly. Appreciate the help!
Last edit: by Sabrina Dhanjal.

Benefit of Project Charter vs. Business Case 1 week 1 day ago #24491

  • Harry Elston
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Sabrina,

I think this is one of those questions that emphasize the importance of careful reading of the question.

I agree with that that the Project Charter is the document that gives the PM their authority to go-and-do. However that's not really what the question is asking. The question is asking about the key benefit of DEVELOPPING the Project Charter.

The process of developing the project charter will link the organization's business objectives with the project. The end result is a document that tells the project manager to go-and-do.

Hope that helps,

Harry
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Harry J. Elston, Ph.D., CIH, PMP

Benefit of Project Charter vs. Business Case 1 week 1 day ago #24497

  • Sabrina Dhanjal
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Thanks Harry! Makes sense, but I thought the Business Case from pre-initiation activities outlined how the project would benefit the organization's strategic goals. Is it also outlined in the Charter?
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