Project governance is a critical aspect of project management, and can have a significant impact on project performance. In this blog post, we’ll explore what project governance is, why it matters, and how it can be used to improve project outcomes.
What is Project Governance?
Project governance refers to the framework of rules, policies, and procedures that are put in place to ensure that projects are managed effectively and efficiently. This includes defining roles and responsibilities, establishing decision-making processes, and setting up monitoring and reporting mechanisms.
Project governance is typically overseen by a project board or steering committee, which is responsible for setting the direction of the project, providing oversight and guidance, and ensuring that the project remains aligned with organizational goals and objectives.
Why Does Project Governance Matter?
Effective project governance is critical for project success for several reasons. First, it ensures that there is clear accountability for project outcomes and that everyone involved in the project understands their roles and responsibilities. This helps to avoid confusion and miscommunication, which can lead to delays, rework, and other issues.
Second, project governance provides a framework for decision-making and risk management, which is essential for managing project complexity and uncertainty. By establishing clear processes for making decisions and managing risk, project teams can reduce the likelihood of project failure and improve the chances of success.
Finally, project governance helps to ensure that projects remain aligned with organizational goals and objectives. By providing oversight and guidance, project boards can help to ensure that projects are delivering value to the organization and that they are contributing to the achievement of strategic goals.
Examples of Project Governance in Action
To see project governance in action, let’s consider an example from the construction industry. A project governance framework for a major construction project might include the following elements:
- A project board or steering committee, made up of senior leaders from the construction company and the client organization, responsible for overseeing the project and ensuring that it remains aligned with business goals.
- A project manager, responsible for day-to-day management of the project, including planning, scheduling, budgeting, and risk management.
- A project charter, outlining the goals, objectives, scope, and deliverables of the project, as well as the roles and responsibilities of key stakeholders.
- A risk management plan, outlining the risks associated with the project, the likelihood and impact of each risk, and the strategies for mitigating and managing each risk.
- A change control process, outlining how changes to the project scope, schedule, or budget will be managed and approved.
- A communication plan, outlining how project progress and status updates will be communicated to key stakeholders, including the project board, project team, and client organization.
By putting in place a robust project governance framework, the construction company can help to ensure that the project is managed effectively and efficiently, and that it delivers the desired outcomes for both the construction company and the client organization.
Templates and References
There are many resources available to help project managers and project teams implement effective project governance practices. Here are a few templates and references that you may find helpful:
- The Project Management Institute (PMI) provides a Project Governance Framework template that can be used to establish a project governance framework for a wide range of projects.
- The Association for Project Management (APM) provides a guide to project governance, which includes best practices and guidance for implementing effective project governance practices.
- The International Organization for Standardization (ISO) provides a standard for project management (ISO 21500), which includes guidance on project governance and how to establish an effective project governance framework.
- The Project Governance and Control Symposium (PGCS) is an annual event that brings together project management professionals and experts to share best practices and discuss the latest trends in project governance.
In conclusion, project governance is a critical aspect of project management.