As organizations are forced to execute ever more complex projects, project governance is gaining an increasing importance in the project management circles. Investors are increasingly looking at the competence of project execution by organizations as a determinant on whether they should invest in a particular project. The vast majority of investors will pay a premium value in well-governed businesses that demonstrate competence in project execution.
This is the case because project governance addresses various needs that will assure success of many projects. For example, it helps in establishing the structure, a system of accountability, support, hierarchy during project execution along with efficient communication. All these are critical factors that will improve consistency, delivery and ownership of the project during the execution. Whenever there is good project governance, other critical factors in the business such as the decision-making process will simply fall into place. Organizations are no longer bogged down and they will be able to operate at optimal levels.
In order to make project governance work, there are certain governance models that must be incorporated. Some of the main governance characteristics that will help any organization in realizing good project governance include the following:
Sponsorship and a System of Accountability
Sometimes, the failure of projects is not due to a lack in the effort but rather a lack in some of the contextual factors of the project such as sponsor governance and support. Sponsors hold a very important role in the project and are the power behind the project because they own the business case and offer the link with the Executive Team of the organization. Any PMO project should have strong sponsorship in order to unlock the requisite resources and offer a clear-cut direction on where the project should go. Every project that is destined for success must have a very solid and buy-in sponsor that will steer the goal forward no matter what.
Transparency and Clear Communication Channels
Decisions and execution of project variables should be taken and performed in a very transparent manner that is understood by everyone involved in the project. Information should be freely available and also accessible to everyone who will be impacted by decisions and actions taken by those driving the project forward. The project management office or PMO reporting should be well defined so as to effectively communicate the performance of the project across all the layers of the project governance.
Responsive and Efficient
Good project governance requires a great deal of efficiency in the execution. All stakeholders must be given a timeframe that is reasonable and results must be delivered that meet the expectations of these stakeholders. This should be accomplished while the project team is making optimal use of the resources at its disposal. Decision-making process should be quick and thorough supported by good and reliable information. Check out Ross Garland
Participatory and Inclusive
Participation is very key to excellent project governance. It is good to do a project review and identify and engage the main participants in the project. Actors typically include the sponsor, the middle management along with the PMO project, project manager, vendors, project or business partners and the customers. All the participants need to feel that they have a stake in the project and they should not be included from the key decisions taken during project review and execution. A portfolio management service can assist your organization in setting up a robust governance model that will steer your project forward with efficiency. For more details, just visit http://www.rossgarland.com/