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Feedback please – 6.1

Paul Naybour Paul Naybour

Published: 11th June 2015

Describe the term project governance and explain four of the principles of project governance

Project governance is how an organisation manages the portfolio of projects and programmes that it has running. It fills the potential void between the project environment and that of the board of the organisation so that the elements of corporate governance can be executed within the project environment. This ensures that the organisation’s projects are managed and controlled in a predetermined manner.

The four principles of project governance included:

  1. Portfolio Direction – This principle looks at how the organisation organises its projects and programmes by ultimately trying to bind them into one portfolio. This is the process of either removing or adding projects to suit the organisation’s needs. An example of this is implementing a plan which outlines the gate reviews that need to be carried out to review the business case, and where approvals and any other decisions are recorded. This process is carried out to ensure the business case still provides the benefits and is feasible to achieve.
  2. Disclosure and reporting – This principle is in place to ensure that decisions are based on accurate data so that the portfolio is governed correctly. It concerns the need to be open and honest with regards to how projects and programmes are progressing. An example of this is the monthly progress reports that the project manager provides to senior management. They should be able to feel that they can report on a true reflection without a blame culture being adopted.
  3. Project sponsorship – This looks at the linkage between the project and the benefits to the organisation. The organisation needs to ensure that the communication level is effective from the steering group through the levels of the business down to the project manager. An example of this is having regular project updates where all the stakeholders are involved so a constant cycle of communication is executed. This ensures that the deliverables are being targeted by all.
  4. Project management capability – This principle is to ensure suitably qualified and capable people are managing the projects and programmes. An organisation has to remain in control of their resources and teams to ensure the best performance. For example, when an organisation is appointing roles and responsibilities, they must ensure that the individual has gained the experience and level of authority required to execute the role in a competent manner.
  1. Paul says:

    Kate a very good answer, the right length and appropriate level of detail. Ten like this and you should pass with flying colours.

  2. Student says:

    Describe the term project governance and explain four effects there might be on the organisation’s projects if project governance is not implemented adequately

    Project governance is how an organisation manages the portfolio of projects and programmes that it has running. It fills the potential void between the project environment and that of the board of the organisation so that the elements of corporate governance can be executed within the project environment. This ensures that the organisation’s projects are managed and controlled in a predetermined manner.
    Four effects that might be on the organisation’s project include:

    1.Inadequate governance may mean that the projects included within an organisations portfolio do not align correctly and effectively with the organisation’s strategic vision. As part of project governance different projects will be evaluated against the strategic goals of the organisation and included or excluded as appropriate. Without this time, money and resources could be wasted or a project which is ultimately not the ‘right one’ for the organisation may be implemented
    2.Another effect of inadequate governance could be an increase in risk exposure for the organisation. Project governance encourages open and honest disclosure between the project manager and other members of the organisation, even when things are going wrong with the project. Failure to do this can lead to projects continuing when they shouldn’t, or in the wrong direction, exposing the organisation to risks.
    3.Effective project governance encourages an increase in consistency between projects, whereas ineffective project governance will lead to inconsistency. Inconsistency in the way projects are run reduces organisational confidence in projects and therefore may reduce confidence in their results.
    4.Another effect can be the success of a project being detrimental due to the competency of the personnel involved in the project. If governance is not executed effectively, individuals can undertake roles and responsibilities where they lack knowledge, skills and experience and may not be able to perform as required. Governance needs to be efficient to ensure competent individuals are carrying out the tasks they are fully confident within which will contribute to the success of the project.

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