As projects become more complex and expensive so the way they are run becomes more closely scrutinized.
Project Governance is concerned with choosing which projects proceed and the management and delivery of those projects. It can be divided into three areas.1. Study & Selection. Each project needs to start somewhere and the initial concept must be properly researched and then fairly assessed along with any other proposals competing for investment.
2. Design & Delivery. After selection the project work begins.
3. Product Operation & Benefits Realization. When the work is complete, the product is put to use.
Senior management are responsible for evaluating projects prior to commencement.
The selection process will inevitably focus on the financial perspective but good governance will also include risk assessments, impact and market analysis and various legal and employment appraisals to verify the suitability and sustainability of each proposal.
The reality is that despite the many tools and
safeguards available projects still tend to proceed depending on the
drive and status of their champion/s within senior management.
Although financial checks abound, the apparent validity of financial
methods like NPV
only make it easier for determined managers to
promote their pet projects. All these tools are influenced by
estimations and judgements and can be easily skewed for or against a
proposal using 'optimistic' or 'cautious' forecasting.
Good Governance should enable projects to transcend business politics.
However, the prudent Project Manager
will take care and check that the 'wonderful opportunity' being
offered is not, in reality, an unsustainable vanity of one or more
executives who will quickly pass the buck when the project fails.
A Project Manager's primary interest is how Project Governance is applied once the budget is agreed and planning begins.
Most organizations will have a standard methodology with which you will quickly need to familiarize yourself.
Ideally the general structure
will already be in place, with adequate resources allocated and
management
support assured. The necessary policies and procedures will also be
clearly laid out and all that
remains is for the Project Manager to simply get on with producing the
goods.
The reallity is
likely to be very different and as with most things in life, it is
beholden on us as individuals to be wary of making assumptions. The
wise Project Manager will step
back for a
moment and consider what an auditor might want to see if the good
governance of the project were called into question.
This is an area which often falls outside the remit of the Project Management team.
Although it is clear that those who have delivered the
project will be well placed to help maximize operating
effectiveness, the reality is that those taking ownership will often
have agendas and ideas of their own.
It is also true that the project
team will quickly disperse to other developments and their focus will
already be shifting away. But these are the precise reasons why it is
important to get the most input possible before this expertise is lost.
What constitutes Good Governance?
Ensuring that correct policies, procedures and processes are in place and that there is current supporting documentary evidence.
PG should encompass:-
Change control - Processes for gaining
authorization, assessing risks and evaluating changes to scope must be
adhered to.
Budget controls - Monitor against progress rather
than time. If 50% of budget spent in half the time things may seem OK,
but if only 30% of work
has been carried out?
Documentation - Must be accurate and accessible and
back-ups maintained.
Benefits - These should be stated and agreed at
the outset along with any mechanism for reviewing them.
Contingencies - What if there are major problems
with resources or legal or technological issues?
Conflict resolution - esp. where external suppliers
are involved