Explain five benefits of governance
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- One key benefit for governance is enabling the organisation to draw clear portfolio direction for the organisation which;is in alignment with the overall vision, strategy and goals decided by the Board of Directors. Governance enables the Board of Directors to decide;which projects / opportunities will be captured in order to accomplish the Organisation vision, growth and future needs. For example, an Organisation vision is to be one of the largest Infrastructure Companies in the Middle East, therefore Organisation is bidding for Mega sewerage tunnel in Dubai.
- Another key benefit for governance is elaborating the sponsorship role in organisation. It enables the Board
of Directors to oversee, control and be accountable for all the projects in the organisation. That enables the Board to take immediate strategic decisions when needed. An example of not doing that is the Board of Directors not being aware of safety issues escalated in one of the organisation major programmes.
- Governance enables organisation to organise structured reporting system for all its programmes and projects. The reporting system will be developed along with the programme or the project management plan and will be considered within the review cycles. The aim of the reporting system is to keep the Board of Directors and senior management members aware of any potential risks or escalated issues that may affect the business. For example Programme Manager reported that Client decided to cancel the second phase of the project which means that the team members of the project will be soon without work.
- Governance encourages the development of honesty culture within the Organisation. Project managers and senior management members are encouraged to report honestly and early about the problems they are having. That is important as it enables the Director of Boards to take early recovery actions to solve the escalated issues / problems. For example, Project manager reported that the supply of the pumps in one project will be delayed due to wrong delivery dates in the purchase order. That will delay the completion
of the project and organisation will be subject to penalties.
- Governance improves the project management capabilities within organisations. Governance is concerned with improvement and efficient control of the performance of project management resources, as well as communication and engagement of stakeholders. Governance makes sure that individual efforts are not wasted and are efficiently utilised to satisfy the need of the Organisation. For example, International organisation with several engineering centres across the world introduced new overseas communication system and share point links which enable project teams to communicate efficiently without the need for travelling.
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