Aspects of Project Management - Governance

Governance arrangements are key to the performance and conduct of any organisation. Things are (or should be) no different in a ‘project organisation’. The bringing together of resources and expertise may be transient, but it is no less vital that proper governance arrangements are put in place to inform and mandate the conduct of participants.

The Organisation for Economic Co-operation and Development (OECD) advises:

“Corporate governance involves a set of relationships between a company’s management, its board, its shareholders and other stakeholders. Corporate governance also provides the structure through which the objectives of the company are set, and the means of attaining those objectives and monitoring performance are determined.”

Meanwhile, The Association for Project Management in the sixth edition of its Body of Knowledge, defines (project) governance as:

“the set of policies, regulations, functions, processes, procedures and responsibilities that define the establishment, management and control of projects, programmes or portfolios”.

Amongst other things, therefore, a well governed project should adhere to the following principles by having:

1. A project board
2. A project sponsor
3. Defined roles and responsibilities
4. Disciplined governance arrangements backed up with a supportive culture, appropriate methodologies, necessary resources and effective controls
5. Coherence between the project and the business strategy
6. An approved project plan supported by a business case
7. Authorisation points for decision-making
8. Appropriately delegated / mandated participants
9. Independent scrutiny / assurance arrangements
10. Defined criteria for project status reporting; risk and issue escalation
11. Frank and effective disclosure of project management information 
12. Effective engagement of interested parties (hitherto often referred to as ’stakeholders’

Do your projects have these elements in place? Do you have a suite of tools and templates that support and reinforce these areas of good practice?

What governance arrangements do you find key in the projects you commission, sponsor or manage?