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Project Governance Framework Overview

The Project Governance Framework provides oversight throughout a project's life cycle, defining roles, responsibilities, and decision-making processes to ensure alignment with organizational strategy. It emphasizes the importance of structured processes for managing complex projects and the need for effective stakeholder engagement. The framework should be documented in the project management plan and includes guidelines for communication, issue resolution, and project approval processes.

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48 views2 pages

Project Governance Framework Overview

The Project Governance Framework provides oversight throughout a project's life cycle, defining roles, responsibilities, and decision-making processes to ensure alignment with organizational strategy. It emphasizes the importance of structured processes for managing complex projects and the need for effective stakeholder engagement. The framework should be documented in the project management plan and includes guidelines for communication, issue resolution, and project approval processes.

Uploaded by

bheemsinhr
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© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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PROJECT GOVERNANCE FRAMEWORK

Project Governance is an oversight function that is applicable through-out the life cycle of a
project. It determines the effectiveness of the project and programme manager, because
governance gives a framework for making project decisions, defines roles, responsibilities
and accountabilities for the success of the project.

The Project Management Body of Knowledge Guide (PMBOK) the definition is:

“The alignment of project objectives with the strategy of the larger organisation by the project sponsor and project
team. A project’s governance is defined by and required to fit within the larger context of the program or
organisation sponsoring it, but is separate from organisational governance.”

Projects are undertaken to achieve strategic business outcomes. Many organisations adopt
formal organisational governance processes and procedures. Organisational governance
criteria can impose constraints on projects especially if projects are for new products or
services.

A project manager needs to be knowledgeable about corporate governance policies and


procedures pertaining to the product/services in question; it tends to be very industry related.

A project governance framework:

„ Provides the project manager and team with structured processes, decision making models
and tools for managing the project while supporting and controlling the project for
successful delivery.
„ Is critical for any project especially on complex and risky projects.
„ Provides a comprehensive, consistent method of controlling the projects.
„ Will ensure success by defining, documenting and communicating reliable, repeatable
project practices.
„ Provides important deliverable acceptance criteria and success measures to measure the
benefits and success of your projects.

Use project governance to ensure that Project Portfolios are aligned to corporate goals.

It will then form the basis to see that projects are delivered efficiently and that the interests
of project staff and other stakeholders are aligned.

Governance will also ensure that the Project Board/Steering Committee and major
stakeholders are provided with timely, relevant, and accurate information.
A Project Management Office (PMO) if it exists, is responsible to define and own the project
governance framework. Their role for project governance involves:

„ Documented policies, procedures and standards


„ Health Checks - Are we doing right things? Are we using right process? Have we conformed
to standards?
„ Stakeholders

The project governance approach should be described in the project management plan,
which is the planning document compiled by the PM to describe how a project will be
executed, monitored and controlled.

The PM is responsible and accountable for setting realistic and achievable boundaries for
the project and to accomplish the project within the approved baselines.

„ Projects should be clearly linked to key business objectives.


„ There should be clear senior management ownership of projects.
„ There should be effective engagement with Stakeholders.
„ Projects should be driven by long-term value, rather than short term costs.
„ Projects should be broken down into manageable steps.

Here are examples of elements included in a project governance framework:

„ Guidelines for aligning project governance and organisational strategy


„ A process to identify, escalate, resolve issues that arise during the project
„ Relationship among project teams, organisational groups and external stakeholders
„ Project organisational chart that identifies project roles
„ Processes and procedures for communication of information
„ Project decision making processes
„ Project life cycle approach including the transfer to Operations and readiness of business
„ Process for stage gate or phase reviews - Authorise to proceed. Approval of
process/documents.
„ Process for review and approval for changes to budget, scope, quality, schedule which are
beyond the authority of the PM

Common questions

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A project governance framework includes structured processes, decision-making models, and tools that help manage and control projects effectively. Key components include guidelines for aligning project governance with organizational strategy, processes to manage issues, stakeholder engagement, a project organizational chart, communication procedures, decision-making processes, and stage gate reviews. These elements ensure project objectives align with organizational goals, facilitate issue resolution, and provide clear communication and decision pathways, contributing to project success .

Project governance frameworks balance long-term value and short-term objectives by setting clear priorities that align with corporate strategy and focusing on sustainable project outcomes over mere cost-saving measures. Guidelines and procedures ensure projects are broken down into manageable steps that contribute to strategic goals while allowing flexibility in decision-making processes to address urgent issues without compromising long-term benefits. This balance requires careful planning, stakeholder involvement, and continuous evaluation of project impact .

Stakeholder engagement is crucial within project governance as it ensures that all parties affected by the project are identified, informed, and involved in decision-making processes. Effective engagement can lead to better project support, smoother implementation, and more successful outcomes. It aligns the interests of project staff and stakeholders and ensures that project objectives are well-communicated and understood, thereby minimizing resistance and enhancing collaboration .

A project governance framework ensures alignment of project objectives with corporate goals by establishing guidelines and criteria that project teams must follow, thus ensuring that each project's objectives support the larger strategic goals of the organization. This alignment is facilitated through formal processes and tools governed by the Project Management Office (PMO), which includes documenting project objectives, engaging stakeholders effectively, and ensuring senior management ownership .

A PMO influences project governance by defining and maintaining the governance framework, including policies, procedures, and standards. It serves as a central body that oversees project processes, conducts health checks to ensure compliance with standards, and provides support to project managers. The PMO ensures that projects are aligned with organizational goals and provides tools and methodologies necessary for effective decision-making and control, thereby enhancing project oversight and governance .

If a project governance framework lacks alignment with organizational strategy, projects may pursue goals that do not support the broader business objectives, leading to inefficient use of resources, stakeholder discontent, and potentially project failure. Misalignment can result in projects that are misprioritized, lack clear direction, or fail to deliver strategic value, causing long-term negative impacts on organizational growth and competitiveness .

Within a project governance framework, scope changes and overruns are managed through defined processes for reviewing and approving changes to budget, scope, quality, and schedule. These processes include rigorous change control procedures, stage gate reviews, and decision-making protocols that require documentation and justification of changes before approval. The PMO often oversees these mechanisms to ensure any deviations are aligned with strategic objectives and do not adversely affect project timelines or budgets .

Communication processes are pivotal in project governance as they ensure that accurate and timely information is shared among project stakeholders, supporting transparency and informed decision-making. They establish protocols for reporting, disseminating information, and resolving issues, thereby aligning project teams and stakeholders towards common goals. Effective communication reduces misunderstandings, fosters collaboration, and enhances stakeholder engagement and support, leading to successful project delivery .

Stage gate or phase reviews are integral to project governance as they provide structured opportunities to evaluate the project's progress, authorize continuation, and ensure alignment with predefined objectives. These reviews involve checking deliverables against acceptance criteria and success measures, helping to identify discrepancies early on. This ensures that resources are properly allocated and changes to scope, budget, or schedule are carefully evaluated and approved before proceeding .

A project manager's understanding of corporate governance impacts project management by ensuring compliance with organizational standards, which is crucial especially for projects involving new products or services. Knowledge of applicable policies enables the project manager to align project processes with corporate strategies, mitigate risks, and navigate industry-specific regulatory requirements, facilitating a smoother and more effective project execution .

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