The Framework of Project Governance - Revision history

Tkokotas at 15:34, 16 November 2018

2018-11-16T15:34:10Z

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			''Developed by Briet Hjaltalin''


	==Abstract==		==Abstract==
	Project governance is the establishment of organizational comprehension and circumstances under which delivering and organizing successful projects.<ref name="PG"/> Establishing project governance is an essential element in defining responsibilities and accountabilities in organizational control. The framework of project governance provides a consistent, robust and repeatable decision-making which offers a structured approach towards assuring businesses to conduct project activities, "business as usual" activities, as well as organizational changes.<ref name="TTP"/> Project success is the primary objective of all projects; thus the systematic application of suitable methods and a stable relationship with the project governance framework is of vital importance to reach an optimal project success.<ref name="UPC"/> According to the book Project Governance by Patrick S. Renz, the question of how the interests of corporate governance affect the operation of a project has been raised and subsequently defined as the "governance gap". Without a clear project direction and control, many issues can occur in the project management process.<ref name="ICGBE"/> Based on these observations, this article introduces a solution to the "governance gap" problem and provides general guidelines towards obtaining a successful project governance framework. Firstly the big idea of project governance is introduced including an introduction to project stakeholders. Secondly, the framework of project governance is presented describing the core principles of project governance as well as the project governance model. Finally, the last section includes a discussion of the project governance limitations.		Project governance is the establishment of organizational comprehension and circumstances under which delivering and organizing successful projects.<ref name="PG"/> Establishing project governance is an essential element in defining responsibilities and accountabilities in organizational control. The framework of project governance provides a consistent, robust and repeatable decision-making which offers a structured approach towards assuring businesses to conduct project activities, "business as usual" activities, as well as organizational changes.<ref name="TTP"/> Project success is the primary objective of all projects; thus the systematic application of suitable methods and a stable relationship with the project governance framework is of vital importance to reach an optimal project success.<ref name="UPC"/> According to the book Project Governance by Patrick S. Renz, the question of how the interests of corporate governance affect the operation of a project has been raised and subsequently defined as the "governance gap". Without a clear project direction and control, many issues can occur in the project management process.<ref name="ICGBE"/> Based on these observations, this article introduces a solution to the "governance gap" problem and provides general guidelines towards obtaining a successful project governance framework. Firstly the big idea of project governance is introduced including an introduction to project stakeholders. Secondly, the framework of project governance is presented describing the core principles of project governance as well as the project governance model. Finally, the last section includes a discussion of the project governance limitations.

Briet: /* Risk Management */

2018-02-28T22:14:24Z

Risk Management

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	====Risk Management====		====Risk Management====
	[[Risk management]] focuses on the governance board and the top management tasks to define an integrated, future-oriented risk management concept." A continuous approach is suggested, in which four risk management processes are introduced:<ref name="ICGBE"/>		[[Risk management]] focuses on the governance board and the top management tasks to define an integrated, future-oriented risk management concept. A continuous approach is suggested, in which four risk management processes are introduced:<ref name="ICGBE"/>
	#'''Risk identification and assessment''': For example, a broad-based risk identification process, based on team-based approach, is suggested to pinpoint as many risks as possible.		#'''Risk identification and assessment''': For example, a broad-based risk identification process, based on team-based approach, is suggested to pinpoint as many risks as possible.
	#'''Risk mitigation processes''': The objective is to eliminate, reduce, or transfer risk with educated choices.		#'''Risk mitigation processes''': The objective is to eliminate, reduce, or transfer risk with educated choices.

Briet: /* Extended stakeholder Management */

2018-02-28T22:13:50Z

Extended stakeholder Management

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	#'''Stakeholder classification and assessment''': The objective is to build the basis for making decisions and taking actions. From strategic perspective; the influence factor, expected benefits or possible damages need to be assessed. From normatively critical perspective; the levels of concern, legitimacy, and bearableness should be assessed.		#'''Stakeholder classification and assessment''': The objective is to build the basis for making decisions and taking actions. From strategic perspective; the influence factor, expected benefits or possible damages need to be assessed. From normatively critical perspective; the levels of concern, legitimacy, and bearableness should be assessed.
	#'''Stakeholder actions''': Two approaches towards stakeholder actions create lines of orientation. Strategic approach assists with deciding whether informing, involving or negotiating is the correct action. From normatively critical approach, helps to decide to differentiate between actions of "opening" toward a discourse-and-recognition oriented relation and actions of “closing” from irresponsible relations.		#'''Stakeholder actions''': Two approaches towards stakeholder actions create lines of orientation. Strategic approach assists with deciding whether informing, involving or negotiating is the correct action. From normatively critical approach, it helps to decide to differentiate between actions of "opening" toward a discourse-and-recognition oriented relation and actions of “closing” from irresponsible relations.
	#'''Stakeholder monitoring''': To assess for each stakeholder whether ~~the~~ relationship or interaction is within or outside an expected range.		#'''Stakeholder monitoring''': To assess for each stakeholder whether their relationship or interaction is within or outside an expected range.

	====Risk Management====		====Risk Management====

Briet: /* Integrity Management */

2018-02-28T22:09:29Z

Integrity Management

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	[[File:Integrity management.png\|thumb\|right\|500px\|Figure 2: Merged approach towards integrity management - Discourse Ethics & Recognition Ethics<ref name="ICGBE"/>]]		[[File:Integrity management.png\|thumb\|right\|500px\|Figure 2: Merged approach towards integrity management - Discourse Ethics & Recognition Ethics<ref name="ICGBE"/>]]

	Integrity management provides integrated principles to handle integrity challenges, on a fundamental level as well as on the level of specific integrity issues. A merged approach towards integrity management is suggested, encompassing ''~~Recognition Ethics~~'' and ''~~Discourse Ethical Guidelines~~'':<ref name="ICGBE"/>		Integrity management provides integrated principles to handle integrity challenges, on a fundamental level as well as on the level of specific integrity issues. A merged approach towards integrity management is suggested, encompassing ''Discourse Ethical Guidelines'' and ''Recognition Ethics'':<ref name="ICGBE"/>

	*'''Discourse Ethical Guidelines'''		*'''Discourse Ethical Guidelines'''
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	*'''Recognition Ethics'''		*'''Recognition Ethics'''
	Based on the fact that human beings are dependant upon mutual recognition. People want their loved ~~one~~ to love them, friends and colleagues to recognize them for what they are and do, their employer to honor their achievements, etc. Three terms of mutual recognition are mentioned here below:		Based on the fact that human beings are dependant upon mutual recognition. People want their loved ones to love them, friends and colleagues to recognize them for what they are and do, their employer to honor their achievements, etc. Three terms of mutual recognition are mentioned here below:

	#'''Emotional recognition''': Takes place among partners, friends, family, and colleagues, etc. A non-observation of such recognition represents moral injuries.		#'''Emotional recognition''': Takes place among partners, friends, family, and colleagues, etc. A non-observation of such recognition represents moral injuries.
	#'''Legal and political recognition''': Is represented by "a set of basic rights as human beings and citizens."		#'''Legal and political recognition''': Is represented by a set of basic rights as human beings and citizens.
	#'''Solidarity''': Recognizes others as a social person "whose capabilities are of basic value for a concrete community."		#'''Solidarity''': Recognizes others as a social person whose capabilities are of basic value for a concrete community.

	====Extended stakeholder Management====		====Extended stakeholder Management====

Briet: /* Integrity Management */

2018-02-28T22:03:32Z

Integrity Management

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	[[File:Integrity management.png\|thumb\|right\|500px\|Figure 2: Merged approach towards integrity management - Discourse Ethics & Recognition Ethics<ref name="ICGBE"/>]]		[[File:Integrity management.png\|thumb\|right\|500px\|Figure 2: Merged approach towards integrity management - Discourse Ethics & Recognition Ethics<ref name="ICGBE"/>]]

	Integrity management provides integrated principles to handle integrity challenges, on a fundamental level as well as on the level of specific integrity issues. A merged approach towards integrity management is suggested, encompassing ''Recognition Ethics'' and ''Discourse Ethical Guidelines.'':<ref name="ICGBE"/>		Integrity management provides integrated principles to handle integrity challenges, on a fundamental level as well as on the level of specific integrity issues. A merged approach towards integrity management is suggested, encompassing ''Recognition Ethics'' and ''Discourse Ethical Guidelines'':<ref name="ICGBE"/>

	*'''Discourse Ethical Guidelines'''		*'''Discourse Ethical Guidelines'''

Briet: /* Mission Management */

2018-02-28T22:03:10Z

Mission Management

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	{\| class="wikitable" style="margin-left: auto; margin-right: auto; border: none;"		{\| class="wikitable" style="margin-left: auto; margin-right: auto; border: none;"
	\|+ Governance tasks within mission management		\|+ Governance tasks within mission management <ref name="ICGBE"/><sup>(p.112)</sup>
	! Structuring forces/Project governance roles		! Structuring forces/Project governance roles
	! Strategic direction and support		! Strategic direction and support

Briet: /* System Management */

2018-02-28T22:01:12Z

System Management

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	====System Management====		====System Management====
	System management "lays the systemic, and systematic foundation for the understanding and influencing of the wider system, and for managing the project system. Thus, system management is argued to be the basic key responsibility of project governance." System management is sectioned into two parts:<ref name="ICGBE"/>		System management "lays the systemic, and systematic foundation for the understanding and influencing of the wider system, and for managing the project system. Thus, system management is argued to be the basic key responsibility of project governance."<ref name="ICGBE"/><sup>(p.64)</sup> System management is sectioned into two parts:<ref name="ICGBE"/>

	* '''Systemic thinking (the "software")'''		* '''Systemic thinking (the "software")'''
	System thinking is the "philosophy of how to approach a solution to a complex problem." Five characteristics are listed here below:		System thinking is the "philosophy of how to approach a solution to a complex problem."<ref name="ICGBE"/><sup>(p.69)</sup> Five characteristics are listed here below:
	#Holistic thinking in open system;		#Holistic thinking in open system;
	#Analytical and synthetical thinking;		#Analytical and synthetical thinking;
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	*'''A system model (the "hardware")'''		*'''A system model (the "hardware")'''
	The system model related to "the inner dimensions of management" concerning steering, arranging and developing purpose-oriented and socio-technical organizations. There are six key areas of the system model which are listed here below:		The system model related to the inner dimensions of management concerning steering, arranging and developing purpose-oriented and socio-technical organizations. There are six key areas of the system model which are listed here below:
	#'''Environmental spheres''': It covers the society and the perception of nature primarily towards society, technology application, and forms of value creation. The purpose is to make an impact.		#'''Environmental spheres''': It covers the society and the perception of nature primarily towards society, technology application, and forms of value creation. The purpose is to make an impact.
	#'''Stakeholders'''		#'''Stakeholders'''

Briet: /* Core Principles */

2018-02-28T21:56:11Z

Core Principles

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	; Principle 6		; Principle 6
	This last principle focuses on multi-owned projects, which is defined as being a project where the board shares ultimate control with ~~others~~ owners. In this case, a formal governance agreement needs to be established with a single point of decision-making for the project. Additionally, a clear allocation of authority which represents the project to owners, stakeholders, and third parties. Regarding the business case, it should include definitions of project objectives, the role of owners, as well as their inputs, authority, and responsibility. The leadership of the project should escape synergies that arise from multi-ownership and should manage potential sources of conflict or inefficiency. A formal agreement is required which defines the processes and consequences for assets and owners when a material change of ownership is considered. It is important that reports during the project and the realization of benefits contain honest, timely, realistic, and relevant data on progress, achievements, forecasts, and risks to establish good governance by project owners.<ref name="TTP"/>		This last principle focuses on multi-owned projects, which is defined as being a project where the board shares ultimate control with other owners. In this case, a formal governance agreement needs to be established with a single point of decision-making for the project. Additionally, a clear allocation of authority which represents the project to owners, stakeholders, and third parties. Regarding the business case, it should include definitions of project objectives, the role of owners, as well as their inputs, authority, and responsibility. The leadership of the project should escape synergies that arise from multi-ownership and should manage potential sources of conflict or inefficiency. A formal agreement is required which defines the processes and consequences for assets and owners when a material change of ownership is considered. It is important that reports during the project and the realization of benefits contain honest, timely, realistic, and relevant data on progress, achievements, forecasts, and risks to establish good governance by project owners.<ref name="TTP"/>

	===The Project Governance Model===		===The Project Governance Model===

Briet: /* Core Principles */

2018-02-28T21:53:17Z

Core Principles

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	; Principle 4		; Principle 4
	The main focus of this principle is to ensure separation between project governance and organizational governance structures. The establishment of project governance structures needs to be executed since organizational structures do not provide the necessary framework to deliver a project. The characteristics of projects are speed and flexibility in its decision-making, ~~and~~ the ~~organizational structure does~~ not support ~~that. The organizational structure has requirements of reporting and stakeholder involvement~~. ~~However, by~~ adopting this principle of separation, it will result in reducing multi-layered decision making, time delays, and inefficiencies. Thus ~~it ensures~~ that project decision-making is executed on time~~. Thus, the established project governance framework for a project needs to be separated from the organizational structure~~.<ref name="TTP"/>		The main focus of this principle is to ensure separation between project governance and organizational governance structures. The establishment of project governance structures needs to be executed since organizational structures do not provide the necessary framework to deliver a project. The characteristics of projects are speed and flexibility in its decision-making, which the hierarchical mechanisms associated with organization charts do not support. By adopting this principle of separation, it will result in reducing multi-layered decision making, time delays, and inefficiencies. Thus, ensuring that project decision-making is executed on time.<ref name="TTP"/>

	; Principle 5		; Principle 5

Briet: /* Core Principles */

2018-02-28T21:37:21Z

Core Principles

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	===Core Principles===		===Core Principles===
	; Principle 1:		; Principle 1:
	The first principle of effective project governance is the concept of a single point of project's accountability. Regarding project success, it is required to have a single point of accountability. However, the nomination of someone to be accountable is not enough; the correct person must be made accountable. This person needs to fulfill the requirement of having sufficient authority within the organization which ensures the empowerment of the project manager making necessary decisions to reach a project success. Additionally, this person needs to have the correct knowledge within the organization to be held accountable for the actions and decisions made for the project. Without a clear understanding of who assumes accountability for the projects' success, there is no clear leadership.<ref name="TTP"/>		The first principle of effective project governance is the concept of a single point of project's accountability. Regarding project success, it is required to have a single point of accountability. However, the nomination of someone to be accountable is not enough, the correct person must be made accountable. This person needs to fulfill the requirement of having sufficient authority within the organization which ensures the empowerment of the project manager making necessary decisions to reach a project success. Additionally, this person needs to have the correct knowledge within the organization to be held accountable for the actions and decisions made for the project. Without a clear understanding of who assumes accountability for the projects' success, there is no clear leadership.<ref name="TTP"/>

	; Principle 2		; Principle 2