Project governance framework
Contents |
Abstract
The PMI Guide on Project Management defines Project Governance as “the alignment of the project with stakeholders’ needs or objectives”. It is a critical function for the management of stakeholders and furthermore for the achievement of organizational objectives. Project governance provides the project managers and sponsors with a framework on how to make decisions to satisfy both stakeholder needs as well as organizational strategic objectives. [1] A guide by the Association of Project Management (APM) does not only consider single projects but aims to align the organization’s project portfolio to its goals. [2] A paper on a conceptual framework for project governance and the management of project management suggests that it has two key function. The first is to make decisions about which projects an organization should do and by this specify rights and responsibilities of project participants and define rules and procedures for making decisions in the projects. Secondly, project governance has an oversight and assurance function in order to support the organization’s strategy. [3] According to P. Renz, project governance closes the gap between corporate governance and the actual management of projects. It provides the project managers with more strategic and integrative solutions beyond standard project management methodologies and operationalizes the corporate governance strategy. There is not one single definition and approach for a framework that can be taken for each and every specific case. This article will define aspects of a framework, which are presented in the literature on project governance. While the APM bases its framework on adhering to different principles, P. Rentz defines a Project Governance Model based on general governance theories and resulting key responsibilities. This article will define elements of a framework for project governance from different perspectives. [4]
Background
What exactly is Project governance? Why is it needed? Who does it? etc.
Theoretical Background: Governance Theories
Explaining how general governance theories relate to project governance
- Agency Theory (Control role)
- Transaction cost economics (Assessment role)
- Stakeholder theory (Coordinating role)
- Shareholder theory (...)
- Stewardship theory (Strategic role)
- Resource dependency theory (Linking role)
- Institutional theory (Maintenance role)
- Theory of managerial hegemony (Support role)
Relation to Program, Portfolio and Corporate Governance
How does the Project Governance relate to the Program, Portfolio and Corporate Governance?
Framework
Principles
Principles to follow in project according to the APM guide on project governance
Modules
Different Modules in project management that address issues and principles of project governance (model according to P.S. Renz: Project Governance - Implementing Corporate Governance) and their objectives (+tasks, purposes) towards project governance including:
- Mission Management
- Integrity Management
- Extended Stakeholder Management
- Risk Management
- Audit Management
- Systems Management
Key References
- Directing Change: APM Guide on Project governance
- Project Governance - Implementing Corporate Governance
- The management of project management: A conceptual framework for project governance
- ↑ Project Management Institute. (2004). A guide to the project management body of knowledge (PMBOK guide). Newtown Square, Pa: Project Management Institute.
- ↑ PM Governance Specific Interest Group. (2011) Directing Change: A Guide to Governance of Project Management. 2nd edition. Pa: APM
- ↑ E.G. Too, P. Weaver. The management of project management: A conceptual framework for project governance. International Journal of Project Management 32 (2014) p.1382–1394
- ↑ P.S. Renz. Project Governance - Implementing Corporate Governance and Business Ethics in Nonprofit Organizations. Springer (2007)
