What is Project Governance?
Project governance is the system of rules, processes, and practices that are put in place to ensure that a project is completed successfully and that it delivers the intended benefits to the organization. It involves establishing clear roles and responsibilities, defining decision-making processes, and setting up systems to monitor and control the project.
Effective project governance is crucial to the success of any project, as it helps to ensure that it is aligned with the goals and objectives of the organization, that it is delivered on time and within budget, and that it meets the required quality standards. It also helps to mitigate risks, enhance transparency, and improve communication within the project team and with stakeholders.
Key Components of Project Governance
There are several key components of governance of projects that are essential to consider when setting up a governance framework for your project. These include:
- Project charter: A document that outlines the scope, objectives, deliverables, and stakeholders of the project, as well as the resources, budgets, and timelines required to complete it.
- Project management plan: A detailed plan that outlines how the project will be executed, monitored, and controlled. It should include information on the project scope, schedule, budget, quality, resources, risks, and communications.
- Governance structure: A set of rules and processes that define how decisions will be made, how risks will be managed, and how communication will be facilitated within the project team and with stakeholders.
- Governance committees: A group of individuals responsible for overseeing the project and making decisions on behalf of the organization. This could include a steering committee, a project board, or a project oversight committee.
- Governance metrics: A set of metrics that are used to measure the progress and performance of the project against predetermined targets. This could include measures of cost, schedule, quality, customer satisfaction
Benefits of Project Governance
There are many benefits to implementing effective project governance in your organization. Some of the key benefits include:
- Improved alignment with organizational goals: By establishing clear objectives and aligning the project with the goals of the organization, governance of projects helps to ensure that the project is delivering value and contributing to the overall success of the organization.
- Enhanced transparency and accountability: Project governance helps to create a clear and transparent decision-making process, which promotes accountability and reduces the risk of misunderstandings or miscommunications within the project team and with stakeholders.
- Better risk management: By establishing a system for identifying, analyzing, and managing risks, project governance helps to minimize the likelihood of project failures or delays.
- Improved stakeholder engagement: By involving stakeholders in the decision-making process and keeping them informed of the progress of the project, governance of projects helps to build trust and strengthen relationships with key stakeholders.
- Enhanced project delivery: By establishing clear roles and responsibilities, defining a project management plan, and setting up systems to monitor and control the project, governance of projects helps to ensure that the project is delivered on time, within budget, and to the required quality standards.
Implementing Project Governance
Implementing effective project governance requires a structured and systematic approach. Some key steps to consider when setting up a project governance framework include:
- Define the scope and objectives of the project: It is important to clearly define the scope and objectives of the project, as well as the stakeholders and resources required to complete it.
- Establish a governance structure: Decide on the governance committees and roles that will be responsible for overseeing the project and making decisions on behalf of the organization.
- Develop a project management plan: Create a detailed plan that outlines how the project will be executed, monitored, and controlled.
- Identify and manage risks: Identify the potential risks that could affect the project and put in place strategies to
- plan, setting up a system to monitor risks, and regularly reviewing and updating the risk register.
- Engage stakeholders: Involve stakeholders in the decision-making process and keep them informed of the progress of the project. This could include holding regular meetings, providing progress updates, and soliciting feedback.
- Monitor and control the project: Set up systems to monitor and control the project, such as project management software or regular project reviews. Use governance metrics to measure the progress and performance of the project against predetermined targets.
- Evaluate and learn from the project: After the project has been completed, evaluate its success and identify areas for improvement. Use this learning to inform future projects and to continuously improve the project governance process.
By following these steps and establishing a strong project governance framework, organizations can improve the chances of project success and deliver value to stakeholders.