Project Governance: Navigating Success and Mitigating Failure
Project Governance: Navigating Success and Mitigating Failure
Understanding the critical role of governance in project success and accountability.
The Indispensable Role of Project Governance
While most certified project managers are familiar with the concept of project governance, the understanding of liability and accountability when a project faces challenges or outright fails can vary significantly. For seasoned project managers taking over a new endeavor, a crucial first step is to scrutinize the existing project governance model. This often involves reviewing the governance system provided by the relevant department, assessing its practicality, and ensuring its applicability to the specific project context.
“There is a growing trend, that when a project fails, project governance seems to be the root cause for the unsuccessfully executed project.” – PMI Global Congress 2015 – North America
Project governance failure is multifaceted; it can stem from a failure of people, systems, or the effective implementation of those systems. In all scenarios, people are central – they are the key players in selecting, designing, and implementing these critical systems, and they bear the primary stress when things go wrong.
Unpacking Project Failure and Accountability
When a project fails, a series of critical questions inevitably arise. Among the most important are:
- What constitutes a project failure?
- Who bears responsibility: the project manager, functional managers, the team, or the systems themselves?
- How can project governance be effectively integrated within the broader corporate governance system?
- What are the key lessons learned from such experiences?
Defining Project Failure
The definition of project failure within the project management arena is not universally agreed upon. A commonly accepted definition states that “the project fails when it did not deliver its promises according to the organization’s business goals.”
From a pragmatic perspective, project failure can also be defined as: “the project fails when it doesn’t identify the right risks and manage them effectively thereafter.” This definition emphasizes proactive risk management, acknowledging that all projects encounter problems, cost overruns, and time delays due to unique situations and inherent risks. A project truly falters when its team fails to understand and manage these risks, leading to a loss of control and ultimate failure.
Navigating Accountability: Beyond the Blame Game
Addressing the question of responsibility requires moving beyond a “blaming game.” Mistakes are inherent in human endeavor. The crucial questions are: What actions were taken when mistakes were discovered, and what measures were put in place to prevent them initially?
Often, project managers are appointed after the governance system is already established, and functional managers have long-standing roles within the organization. Furthermore, project managers may inherit projects already grappling with significant problems. It’s essential to differentiate between a normal project facing expected challenges and one with critical, noticeable issues.
Key questions regarding accountability include: Did the project manager have input into the existing governance system? Was there a clear agreement on the definition of project success or failure? How do shared responsibilities across different organizational departments contribute to project outcomes? Additionally, who is involved in defining the reasons for failure, and what is their experience with similar projects and situations?
Project Governance within the Corporate Framework
The subject of project failure becomes even more intricate when considered within the context of portfolio and corporate governance systems. While portfolio controls and their governance are directly linked to project controls, corporate governance provides the overarching framework within which all organizational controls, including project-level controls, should operate.
From a management perspective, projects often function with nearly all the components of corporate organizations, including human resources, finance, and administration. The critical challenge lies in effectively linking corporate governance with project governance. When departmental heads retain significant responsibilities that directly impact project success—from vendor selection and cash flow controls to recruitment processes and beyond—it can inadvertently limit the project manager’s authority and accountability. This complexity is further amplified during early project development stages, where numerous assumptions are still in play, necessitating an adaptive governance approach.
Key Considerations for Project Manager Governance
To establish clear and effective governance for the project manager, the organizational governance system should carefully define the following aspects:
1. Ethical Conduct & Compliance
Commitment to abiding by all laws and regulations, consistently protecting the organization’s best interests.
2. Clear Roles & Tiered Responsibilities
A mature governance system defines and ranks roles and responsibilities, distinguishing between project managers based on experience and project complexity.
3. Defined Reporting & Communication
Identification of reporting cycles and detailed report contents is crucial to enable timely decision-making and risk management.
4. Delegated Authority & Decision-Making
Clear delegation of authority within corporate, portfolio, and project levels empowers project managers to act decisively.
5. Strategic Involvement in Project Lifecycle
Defining the project manager’s involvement in critical stages like bidding and team recruitment ensures early alignment.
6. Team Formation & Resource Allocation
The right to define and acquire the necessary team to fulfill project responsibilities effectively.
7. Financial Control & Funding Access
Agreement on and timely access to project cash flow as and when needed for smooth operations.
8. Adherence to PMO Standards
Commitment to utilizing established systems, templates, and processes defined by the PMO.
9. Stakeholder Engagement & Responsiveness
Commitment to respond promptly and effectively to inquiries from other project managers, department heads, and stakeholders.
10. Succession Planning & Delegation
Commitment to delegating authority to deputy project managers and other team members as necessary for continuity and development.
11. Proactive Problem Solving
Commitment to identifying and providing solutions to project problems that serve the organization’s best interest.
12. Documentation & Knowledge Management
Commitment to maintaining required records, ensuring they are readily accessible when requested for audits and lessons learned.
13. Resource Optimization
Commitment to managing project resources wisely, minimizing waste, and maximizing efficiency.
14. Continuous Improvement & Adaptability
Commitment to evolving the governance system based on lessons learned from current and past projects.
15. Performance Accountability & Corrective Action
Commitment to delivering within defined time and cost parameters, and proactively developing new plans for any deviations.
Empowering Project Success Through Robust Governance
Effective project governance is not merely a bureaucratic exercise; it is the backbone of successful project delivery. By clearly defining roles, responsibilities, and decision-making frameworks, organizations can empower project managers, foster accountability, and significantly reduce the likelihood of project failure.
**What are your thoughts? Does your organization have these governance elements in place? What else do you believe should be included or refined?**
Thanks for reading,
Ziad Albasir