Project Governance: Justifying and Framing the Concept
Project governance defines the framework of processes, structures, and roles instituted for oversight, direction, and control of projects. This defines accountability, makes the decision-making process clear, and gives an overarching alignment with strategic objectives. The key components of project governance are oversight, effective risk management, and well-informed decision-making on behalf of maximizing project success.
Important Composure of Project Governance
1. Roles and Responsibilities
Establish and define roles and responsibilities for major stakeholders within the project, meaning that they will include the project sponsor, steering committee, project manager, and project team members. Every such role is given a specific set of functions and powers as far as project management is concerned.
Example:
As in a software development project:
- The project funding for software development, goals, and strategic direction is determined by the sponsor.
- Execution and controlling the project is for the project manager.
- The steering committee provides guidance, support, and decision-making oversight.
2. Governance Structure
This structure specifies the hierarchies, channels of communication, and relationships among the various stakeholders. This implies accountability, reporting lines, and escalation mechanisms in decision-making in a holistic manner regarding the project.
Example:
A governance arrangement for any project consists of –
- A governing committee or board made up of all senior executives and major stakeholders.
- The meeting or committee to which the primary project manager would report his progress to make high-level decisions after reviewing milestones. A clear effective way would expose the communication and alignment of the different stakeholders in the project.
3. Governance Framework
Governance, on the other hand, means all of the rules, processes, and procedures under which project activities have been executed. This usually comprises, instruments, measures, and standards commonly used in monitoring performance and reporting compliance with best practice.
Example:
- Policies on initiation, planning, implementation, monitoring, and closure of projects.
- Defined processes for requirements review, risk, and change control, quality assurance, and stakeholder engagement.
This would ensure that all projects would have the same good and effective management practices.
Benefits of Project Governance
1. Effectivity in Decision-Making
Creates processes meant for decision-making by which decisions could be made informed, timely, and aligned with the objectives of the project.
2. Risk Governance Framework Identifies and Evaluates Risks
Governance frameworks facilitate proactive risk identification, assessment, and mitigation. They also establish clear escalation paths for addressing risks effectively.
3. Stakeholder Alignment
Governance takes care of stakeholder expectations, that is, capturing their interests while governing. Better collaboration coordinates all interests to better the chances of project success.
4. Transparency and Accountability
Governance brings accountability from role and responsibility definitions to reporting lines. All stakeholders now have a front-row seat to performance reporting whereby everything is done in the open.
Conclusion
Project governance is like blood through the veins of a project. Defined roles, areas, and frameworks provide opportunities for monitoring, stakeholder engagement, and management of risk. This, in short, delivers projects by the organizational objectives, which they are capable of delivering value towards and out of which they have been established.
