Project Governance

Project governance 1 But unless an organization has specifically developed a project governance policy, no such chart is likely to exist for project development activity.

Project governance 1 Therefore, the role of project governance is to provide a decision making framework that is logical, robust and repeatable to govern an organization’s capital investments. In this way, an organization will have a structured approach to conducting both its business as usual activities and its business change, or project, activities.

Project governance Core project governance principles 1 Project governance frameworks should be based around a number of core principles in order to ensure their effectiveness.

Project governance Principle 1: Ensure a single point of accountability for the success of the project 1 The concept of a single point of accountability is the first principle of effective project governance.

Project governance Principle 2: Project ownership independent of Asset ownership, Service ownership or other stakeholder group 1 The only proven mechanism for ensuring projects meet customer and stakeholder needs, while optimising value for money, is to allocate Project ownership to specialist party, that otherwise would not be a stakeholder to the project. This is principle No. 2 of project governance.

Project governance Principle 2: Project ownership independent of Asset ownership, Service ownership or other stakeholder group 1 These parameters are commonly detailed in a Project Governance Plan which remains in place for the life of the project (and is distinct from a Project Management Plan which is more detailed and only comes into existence during the development of the project).

Project governance Principle 2: Project ownership independent of Asset ownership, Service ownership or other stakeholder group 1 Projects have many stakeholders and an effective project governance framework must address their needs. The next principle deals with the manner in which this should occur.

Project governance Principle 3: Ensure separation of stakeholder management and project decision making activities 1 There is no question that both activities, project decision making and stakeholder management, are essential to the success of the project. The issue is that they are two separate activities and need to be treated as such. This is the third principle of effective project governance. If this separation can be achieved, it will avoid clogging the decision making forum with numerous stakeholders by constraining its membership to only those select stakeholders absolutely central to its success.

Project governance Principle 4: Ensure separation of project governance and organisational governance structures 1 Project governance structures overcome this by drawing the key decision makers out of the organisation structure and placing them in a forum thereby avoiding the serial decision making process associated with hierarchies.

Project governance Principle 4: Ensure separation of project governance and organisational governance structures 1 This is the final principle of effective project governance.

Project governance Elements 1 Important specific elements of good project governance include:

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