Project Governance Best Practices

Project Governance Best Practices

In the past, people in the higher echelons of many organizations would execute projects with a casualness. They would even use them as an opportunity to further their personal causes in the corporate world. Projects were outsourced to project managers and the top management would concentrate on running the organization without any oversight on the project. But times have changed and with it, an improvement in project management practices. Significant strides have been made in the improvement of project governance structures through the incorporation of effective project governance consulting.

Project governance consulting is particularly important for those large capital projects and programs where your organization has made a significant investment in. This also applies to projecs where there is a need for management and guidance to ensure successful execution of the project. There are certain best practices that must be assured when developing a project governance framework that will anchor the project and ensure successful execution. Here are some of the best practices that you can use to ensure that your projects are well-governed:

Determine the relative strategic value

If you are looking through stacks of project proposals, it is important to carefully compare the projects and identify the potential business value in each of the projects. At best, it is important to develop your own internal evaluation and ranking mechanism based on the unique conditions of your business. This will allow you to evaluate and compare projects based on factors that are relevant to your business.

Top management should set priorities

No project will be successful without the top management’s support and guidance in the project. It is important to have steering committees which are project-specific and composed of relatively high-level executives. This will not only ensure focus on the priority areas, but it also quickens the decision making process. It is the top managers who will determine the funding appropriations for the project so it is very important that they are closely involved in the progress of the project. In all major projects, it is important to have steering committees as well as dedicated liaison staff who will work closely with project governance consulting companies to ensure that the project properly aligns with business objectives.

Clear Communication of the Priorities and Progress

Once the project leaders have identified the important priorities for the projects, it is important that these are communicated early enough to the project teams. When good and effective communication is present, it sets the proper tone. People will then easily understand how your project governance processes work. It is important to communicate frequently with the rank and file in an upfront manner so everyone understands the various governance processes in place for the project. Through clear communication, it will be possible for you to avoid both ambiguity as well as surprises, which may hinder successful project execution.

It is important to have project assurance in place in order to manage risks and exploit opportunities that will lead to project success. For project governance consulting and P3O assistance, it is important to hire the best consultants that will help build the necessary structures for the successful delivery of project portfolios.