A hallmark of a well-run project is effective governance. For the purposes of this post, I would consider “governance” the authority structure outside the core project team that has been constituted in support of the project. This structure makes a project viable even though the impact on the organization may exceed the mandate placed on the project team.

Governance matters, simply put, because projects are difficult.

Consider that –

• Many projects are cross-functional. When a project spans multiple departments or divisions the respective heads of those departments or divisions must have a means of resolving issues. Competing interests across the organization can quickly sink a project.
• Project authority is typically narrow in scope. Though, many projects defy discrete definition. At first glance a project might simply replace one application with another. But, through that replacement there is often a need to reevaluate business process or practices, retrain staff, or otherwise transform the way an organization conducts its business. Rarely does a Project Charter empower the Project Manager or Core Project Team to complete the broader organizational renovations that may be required in parallel.
• Resources are temporary and often over-committed. Most project participants have a full-time job already. If the needs of the project are not a priority, critical subject matter experts may never have an opportunity to engage. Or, the timeline can quickly slide due to resource availability.
• More is unknown than known at the start of a project. Even the most thorough pre-project planning will not anticipate every risk or issue the project will encounter. Ultimately, a project is an exercise in resolving uncertainty. Only through the project can you be really sure where the project will lead. When the project takes you someplace unexpected you need a structure in place to change direction or approve the new path.

Through effective governance the project can navigate these challenges. An effective governance model should:

• Create an open and inclusive process
• Leverage expertise across multiple levels of the organization
• Provide clear avenues for discussion and issue resolution
• Ensure escalation paths are available as needed
• Assure effective oversight and control of schedule, budget and scope
• Document project structure and time commitment of participants

Governance should provide clear lines of authority. Providing parameters for the project team will allow them to quickly address problems at their level or know when it is appropriate to move on to the next level. Generally, we would identify four levels of governance:

• Project
• Subject Matter Expert or Advisory
• Management or Steering
• Executive

Project Level

At the project level, the project team – and specifically the Project Manager – has been empowered to make decisions within a set of parameters. Project level decisions typically fall within the following:

• Changes in schedule less than a week (e.g. small variations)
• Changes in budget less than 1%
• Minor clarifications of scope
• Risk identification
• Resource changes within previously defined parameters

If a Project Sponsor is considered part of the Project Team, these ranges may increase significantly. The Project Sponsor may have access to reserves or otherwise be able to allocate resources. Some organizations will place the Sponsor at the Management Level (e.g. only engaged when specifically escalated to).

Subject Matter or Advisory Level

The Project Team is likely comprised of a cross-functional team, thereby ensuring fairly wide representation across stakeholders. However, more complex decisions are likely to require additional discussion. Or, where there is disagreement about process or conflicting requirements across business units, a larger group may be needed to fully weigh the impact of a decision. A subject matter expert panel, advisory committee or peer review group can provide such an avenue. Advisor level responsibilities may include:

• Seeking resolution to conflicting requirements
• Streamlining business processes across business units
• Participating in risk identification and management sessions
• Facilitating change across the organization (or, serving as project “champions”)
• Reviewing key deliverables
• Providing input to escalation resolution

Management Level

The Management Level is likely to include heads of departments or divisions impacted by the project. This group has been tasked with controlling resources and business processes to achieve a set of outcomes.

Management level responsibilities may include:

• Resource conflict resolution
• Resolving questions around business processes that cross multiple departments or divisions
• Facilitating change across the organization (or, contributing to project leadership)
• Participating in risk identification and management sessions
• Reviewing key deliverables or providing strategic direction
• Providing input to escalation resolution

Executive Level

Multiple Executives may form an Executive Committee for projects representing widespread, organizational change. Though, the Executive Sponsor ultimately owns the project and provides the final say in escalations.

Executive level responsibilities may include:

• Authorizing the project and formalizing authority at all levels of governance
• Providing the final decision on escalations that could not be resolved at a lower level
• Resource conflict resolution
• Providing executive leadership in matters of change, risk and communication
• Set strategic direction of project and ensure alignment of project outcomes with strategy

Summary

This post was intended to describe a governance model – to describe the infrastructure and importance of delineating authority in and around a project.  Projects are difficult. A project represents change – and large projects often require fundamental organizational change. Having clear authority and decision-making structures in place is critical to ensuring the project is able to achieve intended outcomes.

In future posts we will consider in greater detail how to use this governance model for escalations or issue resolution, consultation, risk management and communication.