Leadership and good governance critical to project success

Author Stephen Foden Published 3 August 2009

I recently attended a client’s Lesson Learned discussion, at which the client reviewed six major projects. All six projects had experienced substantial schedule and budget overruns as well as one or two of the usual suspects that send projects off track:

• starting too late and therefore never able to regain the schedule
• ill-defined scope with constantly changing outcomes
• missed scope items that had to be included during the delivery phase
• ‘scope creep’, where the project outcomes begin to multiply
• underestimated level of effort.

It was also noted that each project was negatively affected by poor governance, and that four of the six projects were poorly managed.

Projects are temporary organisational constructs that meet the specific needs of an organisation at a given time. Projects aren't created just because the project manager thinks it will be a good idea. Projects are undertaken because someone has a problem that needs to be addressed. Accordingly, a process is required to ensure that the project delivers the desired outcome. This is where governance comes in.

Governance is the mechanism that guides a project to achieving its outcome through decision-making authority and accountability. It covers the 'what' and 'why' of project decisions, 'who' is given the authority and responsibility for making decisions' and 'how' decisions are made. Governance unites the project with the organisation's executive and end users – ensuring that the project produces what users want, in line with the strategic vision of the organisation. In this way, the responsibility for the project and its outcomes is shared equally.

The PMBOK approaches governance with a portfolio perspective and alludes to governance as a kind of steering committee, though it does not outline who should be on this committee. PRINCE2 similarly alludes to a steering committee, which it calls a Project Control Board, consisting of the executive, senior user, senior supplier, project manager and other representatives as appropriate.
Names aside, a project steering committee is accountable for:

• project governance execution, the quality of decision making and achieving overall project outcomes
• ensuring that the project's financial and business case objectives are met
• reviewing the project's health and testing the veracity of the project's achievements, which enables stop/proceed decisions to be made swiftly
• ensuring risk and issue management frameworks are adhered to, as well as providing support when issues escalate
• managing any drawdown of contingency funds.

Project managers need to have a good, close relationship with the governance team. Difficult environments sometimes require a co-operative governance team to remove roadblocks and help project managers achieve their aims. As such, good project managers will ensures that a governance structure is in place to assist with project delivery. Some project managers even regard their governance committee as part of the project team – a valuable resource for tackling intractable issues and getting things done.

Governance is a key success factor in project delivery. If governance is not in place, then the project manager must establish an appropriate framework. Project managers deliver projects. Leadership and good governance deliver successful projects.

Project Management Institute, A Guide to Project Management Body of Knowledge (PMBOK), 4th edition, PMI, Newtown Square, 2008.
Office of Government Commerce, Managing Success Projects with PRINCE2, 5th edition, OGC, London, 2003.