A project charter is one of the key deliverables from the initiation process. According to PMI, who should issue and sign the project charter to formally authorize the project?

Introduction / Context:
The project charter is the document that formally authorizes a project and grants the project manager the authority to apply organizational resources. PMI emphasizes that this document should be issued by someone outside the project who has sufficient authority to make such a commitment. Understanding who signs and issues the charter is essential for exam questions about project initiation and governance.

Given Data / Assumptions:

• The project charter is created during the initiation process.
• The charter formally authorizes the project and names the project manager.
• The person issuing the charter must have authority over resources and project approval.
• The project manager is typically appointed as a result of the charter, not before it.

Concept / Approach:
According to PMI, the project sponsor or initiating entity, who is external to the project, issues and signs the project charter. This individual or group could be a senior manager, a steering committee, or a representative of the customer, depending on the organization. The key is that they have the organizational authority to start the project and commit funds and resources. The project manager may help draft the charter but should not be the one formally authorizing it, because they do not authorize their own authority.

Step-by-Step Solution:
Step 1: Recall that the purpose of the project charter is to authorize the project and grant authority to the project manager. Step 2: Recognize that the person who signs the charter must already have the authority to approve projects and allocate resources. Step 3: Identify that PMI calls this person the sponsor or initiator, who is external to the project itself. Step 4: Review the answer choices and select the one that describes a manager external to the project with authority to commit resources. Step 5: Choose option C as it accurately reflects PMI's guidance on who issues the charter.

Verification / Alternative check:
In PMBOK based descriptions, the sponsor is defined as the person or group who provides resources and support for the project and is accountable for enabling success. The sponsor or initiator typically signs the project charter, thereby authorizing the project. The project manager may be named in the charter but only gains authority as a result of this authorization. This confirms that a manager external to the project, such as the sponsor, should issue the charter.

Why Other Options Are Wrong:
Option A, functional managers, may supply resources but do not necessarily have the authority to approve or start the project. Option B, the head of the performing organization, may be involved in large strategic projects but is not required to sign every project charter; authority can be delegated to sponsors. Option D, the CFO, focuses solely on finance and is not automatically the one who authorizes all projects. Option E, the project manager, is incorrect because the project manager should not be authorizing their own authority; they are appointed and empowered by the charter, not the issuer of it.

Common Pitfalls:
A common pitfall is assuming that the project manager is the one who issues the charter because they are heavily involved in project documents. Another mistake is believing that only the most senior executive can issue every charter; in reality, authority is often delegated to sponsors at various levels. Remember that the key idea is that the issuer is external to the project and has sufficient authority to commit organizational resources to the work.

Final Answer:
The project charter should be issued by a manager external to the project, typically the project sponsor or initiator, who has the authority to commit organizational resources.