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Project governance is the organizational institutionalization of a project management methodology.
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Quick reference
Project Governance
Project governance is the organizational institutionalization of a project management methodology.
When to use
An organization that has created a project management methodology will normally need project governance to implement the methodology and ensure it becomes part of the organizational culture.
Instructions
Large organizations with many projects find a need for governance to improve communication and project performance. Project governance ensures that all project teams and stakeholders are following the project management methodology. This standardization simplifies some aspects of project management (planning and reporting) although it can become bureaucratic and burdensome if the methodology is not flexible and responsive to the unique needs of each project. Effective organizational project governance requires a Project Management Office (PMO) to maintain the methodology and ensure compliance.
A small organization with only a few projects maintains governance as part of project planning, control and stakeholder communication. Each project can be unique and still be adequately supervised by senior management.
A PMO is normally used for project governance. This can be a formal function within an organization structure, or it can be an additional duty of a subject matter expert. There is no standard for what a PMO is or does, but they typically can be characterized as one of three types. Your organization needs to decide which type is best suited to your organizational culture and business needs.
Subject Matter Expert (SME) PMO
The SME PMO is normally a one person organization. The SME maintains the procedures and templates that comprise the methodology. The SME will also act as a coach for a project team or stakeholders if they require it.
Oversight PMO
This PMO is normally a small team of individuals who are project management SMEs. They maintain the procedures and templates of the project management methodology. In addition, they often chair or run the management reviews, stage gate meetings and technical reviews. They do quality audits on the projects to ensure that the project teams are using the methodology correctly. They often create and maintain dashboards or summary reports for how all projects are progressing.
Leadership PMO
This PMO is really a project department. In addition to doing everything that the other two types of PMOs do, in this case, the Project Leaders and often the Core Team members are assigned to this organization. The PMO manages the project resources in addition to managing the project management methodology.
Definitions
Project Governance: “The framework, functions, and processes that guide project management activities in order to create a unique product, service or result to meet organizational, strategic, and operational goals.” PMBOK® Guide
Project Management Office (PMO): “A management structure that standardizes the project-related governance processes and facilitates the sharing of resources, methodologies, tools, and techniques.” PMBOK® Guide
These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Sixth Edition, Project Management Institute, Inc., 2017.
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