Project Sponsorship
Abstract
Project Sponsorship relates to and differs from Project Management, as well as defines the role of sponsor by linking it strongly with principals such us leadership, risk-taking and strategy planning.
A Project Sponsor could be a range of providers and entities supporting the goals and objectives of an individual or company[1]. In Engineering projects, sponsor is the most influential individual (or the mentor) who would be involved and therefore would contribute technically or strategically in them.
Project Sponsorship is based primarily on exchange theory[2] between sponsors and project owners. Hence, uncertainty about the true worth of a sponsorship deal and its potential to deliver on the desired objectives and vice versa can underlie risks between both sites. Thus, Project sponsorship is also strongly connected with risk identification.
In Engineering projects, sponsorship illustrates the definition, decision, justification, agreement and security of overall budgets, resources and timescales that respond to the aim of each project\case. A fundamental factor to achieve projects success (operationally, economically or financially) is the adjustment of a well-orientated strategy and portfolio direction that are inseparable principals of project's sponsorship.
Furthermore, despite the importance of stakeholders who are actively involve in project governance, a project sponsor's duty is to set an inclusive framework which defines the roles, relationships and positions of internal and external stakeholders inside and outside of the project’s governance structure.
References
- ↑ Investopedia website
- ↑ [Margaret A. Johnston. The sum of all fears:Stakeholders responses to sponsorship alliance risk; The University of Queensland, St Lucia, QLD 4072, Australia; 2015]
