In project management environment, a project charter is a very important document, project definition or project statement is a statement of the scope, objectives and participants in a project. It provides a preliminary delineation of roles and responsibilities, outlines the project objectives, identifies the main stakeholders, terms of reference (like a project dictionary) and defines the authority of the project manager. It serves as a reference of authority for the future of the project.
You must always remember that the project initiation process is a critical component of the overall project delivery process because the time lost “up-front” identifying and formalizing new projects necessities is seldom recovered throughout the remainder of the project life cycle. No matter what you call the document that is used to initiate the project, the process and content utilized to capture and approve the project concept will have a significant impact on time to market and reduce the number of “false starts” associated with new project requests. Consistent and well-understood project initiation processes and deliverables makes it “easier to do business” with the project delivery organization.