In this video, our SME guides you through the principles of good governance, how to achieve good governance, and its benefits.
- How do you know if a project is viable? How do you know whether a project is on track? Who is accountable for what? How do you know if you're doing the right things and making the right decisions? Who else needs to know about what you're doing? The answer to these questions comes through effective project governance. In this video, we'll talk about the principles of good governance, how governance is achieved through governance boards and the benefits of governance. Governance is a big topic. So in this video we'll stick to talking about project governance, which is basically the organizations controls and measures relating specifically to project management. These will normally help you align with the organization's strategic objectives, conform to governance requirements and help you deliver your projects without impacting on the operational side of things. Governance shouldn't just be red tape that you need to cut through, regardless of the life cycle approach you're using for your project or what industry you're operating in, these five principles will help you set up for success. Take your time to make sure that you incorporate them into your own projects. Projects need to follow a formal, structured method which is supported by appropriate ethics, culture, policies, and controls. Project roles and responsibilities are clearly defined, and staff have necessary competence and resource to succeed. Projects have a realistic and approved project plan, and the key decision points are clearly defined. Stakeholders are engaged openly and honestly, and at a level that is proportionate to their level of interest and involvement in the project. Lessons from other projects are embedded into new initiatives, and information is openly shared. Not every project will have a governance board, especially smaller projects, but larger projects and programs normally will. This board might be called something like a steering group or a committee. Of course, the members of this board will probably vary, but normal roles include the sponsor who chairs the board, as well as business, supplier, finance, and external party representatives. The project board will also have specific responsibilities, which might include regularly monitoring progress reports and key metrics, approving corrective actions, resolving escalated issues and risks, approving beneficial scope change, e.g. to realize the additional value for the project, making sure that projects comply with ethical obligations and regulatory standards, and making key decisions, especially at the defined decision gates. Okay, so we've discussed the principles of governance and the role and responsibilities of the governance boards. Let's end the video off with a quick discussion about the benefits of governance. Ultimately, effective governance helps keep an organization's project portfolio in line with the strategic objectives. It also helps you to deliver the project efficiently and sustainably, and helps avoid common reasons for project failure. As a result of all this, some of the benefits of good project governance include better decision making, especially at decision gates, improve chances for the realization of project outcomes and value, adherence to the legal regulatory, corporate, ethical and professional standards, building credibility, trust and confidence through transparency and stakeholder input, and the optimization of investment, as funding is distributed and prioritized across projects. And that's it for this video. Effective project governance that uses all the principles and structures of governance boards will help you to achieve success in your projects, and is something you need to push for if your organization isn't doing already.