The team charter is the contract among the team members and between the team and its sponsor for the expected work effort and level of performance. Charters solidify the rights, guarantees, privileges, and permissions for organizing and performing the team’s objectives and tasks. Development of the team charter is a negotiated activity between the sponsor of the team and the integrated team. When approved by both the team and the sponsor, the team charter constitutes a recognized agreement with management authority. The complexity of the team charter can vary depending on the scope of effort and the team objectives. Team objectives may be directly related to the assigned product requirements from the sponsor, specific project requirements, or identified internal team tasks. The charter typically identifies team responsibilities and authority and the measures by which the team’s progress will be evaluated.
It is important that integrated teams exercise a level of authority in managing their activities and in making decisions in pursuit of their objectives. Team members need to assess whether the amount of power and control over decisions and actions has been properly delegated from upper management. The team decides whether the decision-making authority is appropriate to meet expectations and accomplish the tasks accepted by the team. The team negotiates any disagreements with the organizations or entities that assigned them.