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2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE

2.2.2 Project Governance

Project governance is an oversight function that is aligned with the organization’s governance model and that
encompasses the project life cycle. Project governance framework provides the project manager and team with
structure, processes, decision-making models and tools for managing the project, while supporting and controlling
the project for successful delivery. Project governance is a critical element of any project, especially on complex and
risky projects. It provides a comprehensive, consistent method of controlling the project and ensuring its success
by defining and documenting and communicating reliable, repeatable project practices. It includes a framework
for making project decisions; defines roles, responsibilities, and accountabilities for the success of the project; and
determines the effectiveness of the project manager. A project’s governance is defined by and fits within the larger
context of the portfolio, program, or organization sponsoring it but is separate from organizational governance.

For project governance, the PMO may also play some decisive role. Project governance involves stakeholders
as well as documented policies, procedures, and standards; responsibilities; and authorities. Examples of the
elements of a project governance framework include:

• Project success and deliverable acceptance criteria;
• Process to identify, escalate, and resolve issues that arise during the project;

• Relationship among the project team, organizational groups, and external stakeholders;
• Project organization chart that identifies project roles;
• Processes and procedures for the communication of information;

• Project decision-making processes;
• Guidelines for aligning project governance and organizational strategy;

• Project life cycle approach;
• Process for stage gate or phase reviews;
• Process for review and approval for changes to budget, scope, quality, and schedule which are beyond
the authority of the project manager; and

• Process to align internal stakeholders with project process requirements.

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