Back in time, project management was seen as quite a different area of expertise that was only run by project managers. This is because managers felt that project governance should be done by project managers while they focus on organizational issues.
Times have changed a lot. Today, project management is so integral to driving the organizations forward, for it ensures that they operate more efficiently and effectively. It is so important that for an organization to thrive, it must include a director with the responsibility of project governance.
Then, what is Project Governance?
Project Governance is an extent of the principle of Governance. It involves management of both individual projects and projects at business level. Individual projects are managed through defined roles, responsibilities and formal structures whereas business projects are managed through project reviews of the business.
Businesses today are developing Project governance structures. This is as opposed to the traditional structures of organizations that define responsibilities and accountabilities as the basis of decision making. This modern method is useful to organizational processes such as strategic decision making as well as change of control. If well implemented, it always has significant positive effect on the speed and quality of decision making on important and significant issues.
What should this Governance achieve?
A great example is this. No project that is exhibiting features of common failure should be allowed to proceed to the next level without efficient resolution of those issues. This is why pmo projects are standardized before they are introduced into economies. This is a very important step up in making the organization competent in managing business projects or internal corporate.
Assurance of Business Projects
It is a perceived wisdom that Boards should ensure that Corporate Governance has the responsibilities to monitor enterprise performance. There are even more responsibilities the corporate level should demonstrate and control:
- Assurance that every project is being managed well and in line with the Governance requirements across the business enterprise.
- Assurance that the portfolio management service is fully optimizing returns from resources of the corporate and maintain strategic objectives alignment.
- Assurance that the strategic projects are not portraying (publicizing) signs of failure. They should exhibit a success and this is known through project reviews.
Good project governance is very essential as it helps businesses to run with integrity and competency. This is why projects are an important aspect in an organization’s strategy. The idea is all about doing the right projects, and not doing the projects right. Consider the results of projects that fail or the ones that shouldn’t have been started, and the value will be clear. The nature of the project also supports the way that boards and major stakeholders exchange relevant, reliable and timely information.
There is no fast or hard rule in project governance, but there is the best practice. When these practices are followed, the organization’s portfolio project will be well aligned with the business’ objectives, hence effectively and sustainably delivered. This can help prevent common causes of failure of projects and the consequences that follow the bottom line of an organization, market, reputation and confidence.