Project Governance in the Light of the American Enterprise Institute Guide
- 3 years ago
- Improving organizational performance
What is the purpose of implementing project governance?
By applying the governance of the organizational structure of project management, it will strongly support organizations that create an environment that accelerates the implementation of their strategy and achieve their goals while establishing transparency and confidence in decisions and clarifying roles and responsibilities for all.
Quick Definitions
Organization Governance
An organized way of providing control, direction, and coordination through people, policies, and administrative processes to achieve the organization's strategy and operational goals.
Organizational Project Management Governance
A set of frameworks, functions and administrative processes to guide the organization's project management activities in order to align project portfolios, programs and projects to achieve the organization's strategy and operational objectives.
Portfolio Governance
A set of frameworks, functions and administrative processes that guide the activities of managing the organization's project portfolios to achieve the highest possible benefit from the organization's investments to achieve its strategy and operational objectives.
Program Governance
A set of frameworks, functions and administrative processes that guide the activities of managing the organization's project programs in order to obtain the Business Values to achieve its strategy and operational objectives.
Project Governance
A set of frameworks, functions, and management processes to guide the organization's project management activities to create a product, service or result (uniquely), to achieve the organization's strategic and operational goals.
What are the challenges of implementing the governance of the organizational structure for project management?
The increasing level of business and project complexity
Requirements of laws and regulations for countries and governments
Globalisation
Steady and rapid change in technology
The question now comes: What are the differences between governance and regular project management activities?
Governance of the project management organizational structure focuses on monitoring and approving the framework, functions and administrative processes that guide the decision-making and decision-making of portfolios, programs and projects.
As for the management of portfolios, programs and projects, it is the implementation of activities that are identified, planned and implemented to achieve the organization's strategy and operational objectives.
In the following table, we explain to you the difference between project governance and project management
Table No. (1), the difference between project governance and project management
Source(PMI, 2016)
The following figure shows the difference between project governance activities and project management activities.
Figure No. (1), the difference between project governance activities and project management activities
Source (PMI, 2016)
The most important question is what are the factors for the success of implementing the governance of the organizational structure of projects
Including, for example, but not limited to:
An administrative framework that integrates with the current organizational structure, its strategy and objectives
An efficient governance structure that has the ability to provide supervision and guidance
Leadership that is open, flexible and responsive to the needs of the organization's change
Appropriate care and commitment to provide support and resources
Encouraging the organization’s structure to support all components of the governance framework
Empowering portfolio, program and project managers with appropriate powers to remove barriers and obstacles
KPIs are clearly defined and measured to mitigate risks and increase opportunities
Appropriate processes for selecting and differentiating between programs and projects
An appropriate structure of communication, knowledge management, training and continuous improvement
Involve all stakeholders to develop administrative processes and support organizational changes
Appropriate shift in the amount of development and improvement needed to support governance.
And to talk the rest, God willing, in the upcoming preparations to explain and detail the mechanisms of applying governance in the framework of the projects in the organization, starting from the governor through the programs and ending with the projects to spread the concept of governance because of its great impact on the performance of projects and organizations.