8.4: Approaches to Project Governance

When it comes to asset management, public organizations that use many projects to implement strategy, improve their operations, or develop new efficiencies must rely on project governance as their primary method of project administration.

Multi-projects are becoming increasingly popular, so the need for an approach to provide a clear administration and management structure is critical. Management literature has recognized the importance of structured, disciplined project management and the role governance has in creating value for organizations. Project governance is the mechanism that ensures that project choices are consistent with the organization’s governance rules and processes and align with the organization’s strategy. It also provides project managers and their teams with an organized framework for making choices, carrying out project procedures, and clearly defining their responsibilities throughout the project’s life cycle (from conceptualization to completion). It also establishes communication channels and approaches within the organization and with the project team.

The project governance structure for government organizations is developed to ensure that projects are completed successfully and in accordance with the aims and goals of the public stakeholders. Once the framework is established, procurement officers can confidently follow this plan, knowing that they are tackling their project in the most efficient manner possible and in alignment with the government’s goals.

Project governance helps to make the procedures that take place throughout the project life cycle more understandable. Project governance also helps clarify several critical issues, some shown in Exhibit 8.2.

Overall, excellent governance is a key facilitator of effective asset investment management and a critical component of successful procurement initiatives. Governance is often concerned with who makes choices, how decisions are made, and whether cooperation is enabled, resulting in the definition of the governance framework within which decisions are made. As the complexity of a project grows, the governance structure, resources, and organizational structure often grow in proportion to that complexity. Risk, organizational culture, and project maturity are all elements that influence the governance architecture.

The term “governance” is often used in conjunction with phrases such as government, governing, and control (Klakegg et al., 2008). When applied to public organizations, governance is a framework for ethical decision-making and transparent actions based on openness, accountability, and clearly defined responsibilities.

Image Description

Exhibit 8.2: The image is a diagram with a central yellow circle labeled “Project Governance.” Radiating outward from this central circle are eight orange arrows pointing to blue ovals. Each oval contains text describing a specific aspect of project governance. The ovals are symmetrically arranged around the circle. Starting from the top and moving clockwise, the ovals are labeled as follows: “Explains how stakeholders may manage and resolve project issues,” “Identifies areas for improvement,” “Establishes who is accountable,” “Extends beyond the scope of the project to include other aspects of design,” “Establishes clear goals,” “Facilitates free-flowing communication,” and “Defines the role and responsibility of every project stakeholder, and their relationships.”
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Attribution

“8.4: Approaches to Project Governance” is adapted from “Module 1. Definitions and Importance of Asset Management and Project Governance” in A Manual for Project Governance and Asset Management, copyright © 2022 by Carmen Reaiche and Samantha Papavasiliou, licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted.

Exhibit 8.2 is adapted from Figure 2: The Importance of Project Governance from “Module 1. Definitions and Importance of Asset Management and Project Governance” in A Manual for Project Governance and Asset Management, copyright © 2022 by Carmen Reaiche and Samantha Papavasiliou, licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted. This rendition copyright © 2024 Conestoga College, CC BY-NC-SA 4.0.

The multiple choice questions in the Checkpoint boxes were created using the output from the Arizona State University Question Generator tool and are shared under the Creative Commons – CC0 1.0 Universal License.

Image descriptions and alt text for the exhibits were created using the Arizona State University Image Accessibility Creator and are shared under the Creative Commons – CC0 1.0 Universal License.