A project charter is an agreement between a project sponsor and the project team that defines the improvement problem, intended outcome, scope and authority to proceed with a Lean Six Sigma project.
During DMAIC’s Define phase, the charter establishes why the work merits resources and what the team is accountable for delivering. It identifies the sponsor and project leader, sets boundaries around the process, and states a measurable goal. Approval gives the team a shared basis for resolving scope disputes. A charter should leave room for investigation rather than commit the team to an untested solution.
For example, an invoice-processing charter might propose reducing average handling time from 12 minutes to 9 minutes per invoice within four months, while maintaining the existing error rate. Its scope could cover domestic supplier invoices and exclude disputed payments. The Measure phase would test whether the baseline and error definition support that target. If the evidence changes the problem statement, the revised charter needs sponsor agreement and a record of the reason.
The charter frames the work documented in an A3 problem-solving account. A SIPOC helps clarify its process boundaries, while Voice of the Customer work informs the requirements behind its goal. The control plan assigns monitoring and response responsibilities after implementation. In a project portfolio, the approved charter establishes the original commitment against which reviewers can assess delivered results.
