1) One benefit of governance is that the projects support the corporate strategy or portfolio direction. Effective governance means that the projects sponsored by the organisation will be those that support the overall direction of the organisation. For example we may want to grow our business in the infrastructure sector so the directors will support projects and bids in this area.
2) Honest disclosure and reporting is another benefit of effective governance because the board of directors can believe the reports they receive about the projects, programmes and portfolios are reflective of the true status of the project. This means they can take appropriate decisions based on the information provided. For example is a project looks like it is heading for a potential legal dispute then the directors can intervene to negotiate a settlement.
3) With effective governance directors can be confident that they have competent and capable people managing each of the project. For example they can assign their most experienced project managers to the highest risk projects.
4) Governance leads to clearly defined accountability and reporting routes between the board of directors and the project managers. It ensured that the correct levels of delegated authority are put in place so that senior and middle management are able to support the project manager in taking the right decisions. For example effective governance will ensure a clear set of gates are introduced to control project at key stages, such as business case approval or bid / no-bid decision.
5) Effective Governance also promotes open and honest communication in the organisation and reduces the levels of conflict. This means that senior managers can trust project managers with the day-to-day decision on project and know that they will be alerted when more strategic decisions need to be taken.