Effective Project Governance – The Tools for Success
common mistake that people make when trying to design something
is to underestimate the ingenuity of complete fools."
Douglas Adams (1952 - 2001), Mostly Harmless
Keywords: Project Governance, Project Office, Project Reporting, EPM.
Effective Project Governance – The Tools for Success [P034]
Corporations, the world over, are being pressured by legislative changes, and heightened stakeholder expectations, to improve the predictability of their financial forecasts and improve shareholders returns; these requirements flow directly into the need for enhanced corporate governance. To meet these obligations, corporations have been forced to make massive investments in new systems and processes designed to achieve effective corporate governance (or at least reporting). The next phase of development should be to capitalize on these systems to enhance the efficiency of the overall business.
Effective project governance is a key sub-set of corporate governance. Projects are typically the catalysts that generate the new income streams, greater efficiencies and business changes, which underpin changes in overall corporate performance. These changes being the basis for the forecast future incomes, expenditures and profitability that need to be disclosed to the market on an ongoing and ‘prompt’ basis.
The tools for effective governance (and hopefully enhanced performance) include a mature PMO, an effective EPM system and a philosophy that combines the willingness to ‘do things’ - take risks - with the discipline needed for effective governance.
This paper explores the interaction and interdependency of these components and maps out an effective plan for developing a successful project governance system that enhances the effectiveness of the overall organisation.
Author: Patrick Weaver