Project Governance

1193 WordsApr 24, 20115 Pages
Project governance is the management framework within which project decisions are made. Project governance is a critical element of any project since while the accountabilities and responsibilities associated with an organisation’s business as usual activities are laid down in their organisational governance arrangements, seldom does an equivalent framework exist to govern the development of project’s capital investments ( Sharma, Stone and Ekinci 2009 ). Project Governance extends the principle of Governance into both the management of individual projects via Governance structures, and the management of projects at the business level, for example via Business Reviews of Projects. Today, many organisations are developing models for…show more content…
3. Principle 3 - Ensure separation of stakeholder management and project decision making activities: The decision making effectiveness of a committee can be thought of as being inversely proportional to its size. Not only can large committees fail to make timely decisions, those it does make are often ill considered because of the particular group dynamics at play. There is always the concern that this solution will lead to a further problem if disgruntled stakeholders do not consider their needs are being met. Whatever stakeholder management mechanism that is put in place must adequately address the needs of all project stakeholders. 4. Principle 4 - Ensure separation of project governance and organisational governance structures: Project governance structures are established precisely because it is recognised that organisation structures do not provide the necessary framework to deliver a project. Projects require flexibility and speed of decision making and the hierarchical mechanisms associated with organisation charts do not enable this. Project governance structures overcome this by drawing the key decision makers out of the organisation structure and placing them in a forum thereby avoiding the serial decision making process associated with hierarchies. Miller & Hobbs (2005) and Pryke(2005) says that t he role of the project governance is now-a-days very crucial in the overall success of the project in a project
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