Project Governance is considered one of the most critical success factors for projects and programs. While this term is often used loosely within the project management community, studies and practical experiences indicate that a lack of governance is frequently the root cause of project failures.
"Project governance is an oversight function that is aligned with the organization's governance model and encompasses the project life cycle."
– A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Fifth Edition, Project Management Institute, 2013.
Components of Project Governance
Project governance is not a one-size-fits-all model; rather, it must be tailored to meet the organization's needs. There are eight core components that must be taken into consideration when establishing, implementing, and monitoring a governance framework:
- Governance Models: Choosing a balanced model that reflects the nature of the project and organizational requirements without over-complication.
- Accountability and Responsibilities: Defining who is accountable, responsible, informed, and consulted for each project deliverable.
- Stakeholder Engagement: Identifying all stakeholders and determining their interests and expectations.
- Stakeholder Communication: Creating a clear communication plan to ensure the effective transfer of information.
- Meetings and Reporting: Striking a balance between meetings and reporting to ensure efficient project monitoring.
- Risk and Issue Management: Identifying, classifying, and prioritizing risks and issues, while developing a plan to address them.
- Assurance: Establishing indicators to monitor project performance and ensure adherence to the plan and objectives.
- Project Management Control Process: Continuously monitoring performance and taking corrective actions when necessary.
Importance of Practical Governance
Practical studies demonstrate that a lack of governance leads to a cascading negative impact on the project. A case study involving a new technology deployment project for a telecommunications company showed that the absence of governance and a poor understanding of stakeholder expectations led to delays and issues with project schedule compliance.
Governance contributes to:
- Providing a single point of accountability.
- Defining roles and relationships among stakeholders.
- Effectively managing and resolving issues.
- Ensuring transparent, consistent, and reliable communication and information.
Core Roles in Project Governance
To ensure governance is implemented effectively, there are four key roles:
- Sponsor
- Steering Committee
- Project Management Office (PMO)
- Project Manager
Advanced Tools Supporting Governance
Governance Information Repository
An electronic tool to standardize best practices, analyze stakeholders, and clarify roles and reporting pathways.
T-Shirt Sizing Technique
A tool used to estimate the required level of project governance and determine framework details based on project size, complexity, and organizational requirements.
Conclusion
Implementing project governance effectively is not a luxury, but an essential investment that elevates success rates, guarantees transparency, and creates a clear decision-making framework throughout the project lifecycle.
Source:
- Muller, R. (2009). Project governance. Surrey, England: Gower Publishing Limited.
- Project Management Institute. (2013). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth edition. Newtown Square, PA: Author.
- Townsend, C. (2014). Project governance 17 Success Secrets—17 most asked questions on project governance. Newstead, Australia: Emereo Publishing.
- PMI Library: Project Governance – A Critical Success Factor