Project Governance

 

Notes on Project Governance

1. Definition:

   • Governance refers to a set of rules or a framework that ensures an organization or project functions effectively.
   • Project Governance: The framework within which project decisions are made.

2. Purpose of Project Governance:

   • Provides a structured approach to making decisions related to:
     • Whether to proceed, terminate, speed up, or slow down a project.
     • Allocating or reducing resources and funding.
   • Ensures projects align with organizational goals.

3. Pillars of Project Governance:

   • Structure:
     • The processes, activities, and methods used to make decisions on projects.
     • Includes hiring qualified project managers, leaders, and team members.
     • Example: A company establishes a project steering committee to oversee decision-making.
   • People:
     • The right individuals must be involved to ensure successful project management and deliverables.
     • Example: Hiring a skilled project manager and ensuring team members are trained in relevant areas.
   • Information:
     • Accurate and timely information is essential for making informed decisions.
     • Example: Regular project reports that include cost, schedule, and risk assessments.

4. Customization of Governance:

   • Governance structures vary widely between organizations, even if they are similar in size or industry.
   • Example: Two companies producing similar products may have entirely different project governance approaches.

5. Key Benefits:

   • Helps in prioritizing and selecting projects that align with strategic goals.
   • Ensures resources are allocated efficiently.
   • Reduces risks by providing a clear decision-making process.

6. Types of Governance Structures:

   • Organization-wide governance: Applies to all departments and projects.
   • Department-specific governance: Tailored to individual departments or teams.

7. Importance of Information Flow:

   • Decisions depend on having accurate and relevant data.
   • Example: Without up-to-date project progress reports, leadership may make incorrect decisions.

8. Key Takeaway:

   • Project governance is not a "one size fits all" approach.
   • Each organization designs governance to suit its size, structure, and goals.
   • Governance is fundamental to effective decision-making and project success.

Summary Example:

Project governance provides a structured way to make decisions about projects, such as whether to terminate or continue them. For instance, a company might use accurate project reports to decide on reallocating resources. Governance frameworks, based on structure, people, and information, vary widely between organizations but are essential for aligning projects with strategic objectives.