Question

What is the overall aim of project governance? Explain the principles of the governance of project management that would help avoid common causes of project failure

Answer 1

Hi There,

Here is my View on the topic asked.

Project governance:

Projects are embedded within an organizational context. Within organizations, “governance of projects” concerns the areas of governance that are specifically related to project activities . In fact, projects and project management coexist within the corporate governance framework and therefore refers to the processes, systems, and regulations that must be put in place to ensure that projects are successful and create value for the organization. To this end, project governance supports an organization in aligning its project objectives with its organizational strategy, achieving set project objectives and monitoring performance.

  Project governance keeps projects running smoothly, on budget, with timely deliveries and client satisfaction. To do this consistently, there needs to be an overall framework that oversees the project. Project Govrnance covers all the aspects of -

• Policies
• Regulations
• Functions
• Processes
• Procedures
• Responsibilities

1. Aim of Project Governance :

(i) Determining the project organization ethics :

Ethics has developed into an important topic for organizations and their governance . Ethics are based on morals and values and define the rules or standards governing the conduct of people within the organization. It was  found that managers of project organizations face different types of ethical issues, and that the way they respond to them can be influenced by the governance structure of the parent organization. The findings suggest that project managers’ behaviours differ according to the governance structure.

The ethical standards of any projects are set by the behaviours of people at the top and cascade down the hierarchy. Some common ethical issues confronted the project managers include transparency, optimization, and relationship , power and political issues, illegal actions, role conflicts. It is pertinent that the project governing body must determine the project ethics within the project governance structure to help project managers dealing with these issues. For example, by adjusting their governance paradigm toward more stakeholder orientation, organizations can increase the level of trust between project managers and the key people in the governance structure.

(ii) Ensuring accountability by project management :

Successful projects contribute to the broader strategic goals on a program or portfolio level of the organization. Project management is thus a component of project governance at the project level that deals with the operational control and execution of the daily project work at the project level . Project governance at the project level has a direct effect on project management and the delivery of project-specific objectives to a broader set of stakeholders . Hence the primary role of project governance is to establish a shared set of rules and procedures that all firms participating to the project are expected to follow . In the context of projects, these rules include the definition and regulation of roles, accountabilities, decision making and boundary management.

(iii) Ensuring compliance by the organization :

The aim of project governance is the consistent and predictable delivery of the project's planned contribution to the portfolio and thereby to the achievement of corporate strategic objectives within a corporate governance framework. Following this view, the purpose of project governance is both to define standards or rules that individual projects are expected to comply with, and to monitor the fulfilment of these rules. To achieve this, a key function of the project governance board is to ensure the compliance of formal rules .

Miller and Lessard (2001) explain that the organizational structure of a project, the shaping of the project, the project's institutional framework and the capacity of self-regulation are essential features of governance. Central to this function is providing relevant stakeholders with

• assurance of the organization’s compliance with its regulatory, statutory and legal obligations;

• monitoring and directing the performance of its management and staff as they work towards achieving the organization’s objectives;

• working within the organization’s ethical and cultural framework; and

• supporting the values established by the governing body.

2 .The following causes of project failure in an organization :

• Lack of a clear link with key strategic priorities
• Lack of clear senior management and, in government projects, ministerial ownership and leadership
• Lack of effective engagement with stakeholders
• Lack of skills and proven approach to project and risk management
• Lack of understanding of, or contact with, supply industry at senior levels
• Evaluation of proposals driven by initial price, rather than long-term value for money
• Too little attention to breaking down development and implementation into manageable steps

3. Principles of project Governance to avoid project failures in organisation :

This ensures that all projects are identified within one portfolio, roles and responsibilities are aligned to decision-making capacity, the teams responsible for projects are capable of achieving the projects’ objectives, and that information to support the decision-making processes is delivered in a timely, relevant, and reliable manner.

But for project governance to be truly effective, the following principles are necessary:

1. Involve senior managers. Senior managers are the decision makers, and such initiatives should encourage their input and buy-in.
2. Prioritize governance goals. Reduce complexity, confusion, and conflict by selecting the most appropriate goals.
3. Assign ownership and accountability for project governance. More than an individual, a select group of experienced resources should be assigned to deliver, monitor, and control any governance initiative. It is recommended that the company’s board of directors own the governance process.
4. Design governance at the portfolio, program, and project levels. Consistency and synergy lead to adoption and successful implementation.
5. Provide transparency. Visibility is vital because it builds confidence and understanding of the process.
6. Learn, then adopt any redesign. Governance is an evolutionary process. Learn from mistakes and new or improved knowledge.
7. Educate and be educated. It is important to review and analyze new and improved governance mechanisms and debate their appropriateness.