6 Key Steps to Implement an effective project governance process

To scale their activities, companies have no other solution than to optimize the management of their projects . Improving daily operations then becomes essential to gain competitiveness and conquer new markets.

This is where project governance comes in, not to be confused with project management, whose scope and issues are more limited. Indeed, project governance process involves definingproceduresandestablishing human as well as financial resources. As a result, it positions itself as anessential methodfor the sustainability of businesses.

In this article constructed in three parts, we will explain to you what project governance consists of , the challenges it represents and present the key factors to help you best implement it in your company.

1. What is project governance process?

     A) Differentiate between project governance and project management 

Although project management and project governance both involve the execution of projects within a company, they differ in their dimension .

Project governance being a global methodology , it uses project management as a tool to achieve its strategic objectives .

     B) A management method

Defined by business sociologist Jean-François Chantaraud (2012) as 

“ the set of rules and methods organizing reflection, decision-making and control of the application of decisions within a social body ”, project governance remains in fact a mode of management and organization .

Made up of aset of processes, it defines the organizationat the overallcompany level. Project governance makes it possible to establish the appropriate environment foreffective project portfolio management.

     C) A strategic dimension

One of the main characteristics of project governance lies in its strategic dimension . Indeed, defining project governance implies taking direction in the vision. The management teams then have a heavy responsibility: that of choosing projects that align with the overall strategy of the company.

2. Why implement project governance?

Guaranteeing a certain level of quality thanks to effective structuring and organization , project governance responds to real challenges. In addition, its implementation has many advantages .

      A) Ensure alignment of operations with strategy

Aligning projects with company strategy can be complex. However, the establishment of precise project governance will make it possible to work towards this coherence, while taking into account the company's development objectives .

In addition, project governance is particularly useful for reconciling the sometimes divergent interests of an organization's different stakeholders.

     B) Facilitate decision-making

The definition of project governance is based on concrete figures from the company's operational activities .

A reliable analytical vision will help provide all the elements necessary for informed decision-making. Note also that this analysis must be based on relevant financial indicators to be defined strategically.

     C) Optimize resource management

Resource management very often proves to be a particularly complex problem to manage in companies.

Indeed, the lack of visibility sometimes complicates the smooth operational progress of projects.

By defining project governance upstream, you will improve your long-term vision , which will allow you to better prioritize the projects to be developed.

Would you like to maximize the management of your resources? This article detailing the 5 steps to effective resource management should help you.

     D) Ensure sustainability 

If project governance proves to be a heavy investment within a company as it requires the involvement of teams and management , its benefits are nevertheless significant.

The establishment of project governance contributes to the sustainability of the company by facilitating the smooth running of activities and its proper functioning, which generates a gain in productivity and better profitability . In addition, it builds employee loyalty by simplifying their daily activities, thanks to increased autonomy and visibility.

     E) Improve communication

Project governance helps streamline the flow of information . Indeed, each role is defined in advance and above all transparent. Obtaining information becomes more accessible , with each employee knowing perfectly who to contact. Communication flows are thus simplified and considerable time savings are achieved .

3. What are the advantages of implementing project governance?

      A) Measure performance 

Thanks to enhanced visibility over the company's various activities, project governance makes it possible to streamline decision-making on projects. Indeed, doubts can sometimes emerge and teams may be led to ask themselves: should we launch this project? The reporter ? Reframe it? Re-prioritize it? Abandon it?

Project governance then helps to answer this type of question by allowing performance measurement, thanks to project management indicators , thus facilitating decision-making.

Creating a dashboard for project management will help you in this task.

     B) Respect costs, deadlines, and offer a high level of quality

By clarifying procedures and allowing an improvement in productivity , project governance proves to be a formidable method for ensuring the smooth running of activities. Accurate planning makes it easier to meet costs and deadlines and contributes to delivering high quality .

Successful projects help to strengthen customer satisfaction . The company can take advantage of these opportunities , thereby increasing its turnover.

Tools such as project accounting software and project management time tracking software  provide this long-term visibility and alert you when a project goes off-budget.

Visualize the performance of your projects in forecasts

Gap analysis: compare the planned activity with what was produced and scheduled. Visualize the financial impacts of your scenarios ( resource planning, purchases etc.) and get notified.

Discover project management with Stafiz

     C) Risk anticipation

Implementing project governance within a company contributes to risk anticipation in several ways.

Indeed, the definition of procedures takes into account in particular the identification of risks : the evaluation of their probability , their consequences and especially their management .

Anticipation can also take the form of continuous monitoring , supplemented by the generation of reports which prove to be essential tools for effective project governance.

In addition, the anticipation of risks is made possible by clarifying those responsible and providing the necessary resources to manage risks, both human and budgetary.

 

Stafiz helps you anticipate risks. Forecast KPIs tell you future deviations before they happen. You can then make decisions to correct the trend.

Learn more about project management

 

4. What are the key factors for implementing project governance?

 

      A) Involve management 

Although this step may seem obvious, its essential nature justifies our highlighting it. Indeed, project governance is only made possible by deep involvement of the company's management. The latter must understand the importance of its implementation on a global scale , because it involves policies, prioritization and strategic decisions.

The financial department must also join the collective effort by helping to define KPIs linked to budgetary management. In addition, it must help provide resources consistent with the company's vision, both in terms of personnel , budget and equipment .

     B) Define procedures

Project governance is, practically by definition, the establishment of procedures .

To generate real benefits, they must be clear and structured . Thus, the beginning , the end and the control methods must be perfectly defined.

On a daily basis, this can take the form of optimal operational planning by, for example, defining the teams' schedule and resource planning precisely, thus considering the management of unforeseen events.

The Stafiz platform allows you to integrate the most efficient procedures in project management:

• Opportunity management and upstream optimization
• Simple and powerful project planning and rescheduling: resource planning , costs, subcontracting, phases, tasks
• Continuous performance monitoring: time entry, gap analysis, etc.
• Automatic invoicing, with due dates and monitoring of unpaid debts

Discover project management with Stafiz

     C) Train the teams

If project governance involves procedures, it also touches the heart of the company: people .

A perfectly defined, structured project governance that does not take its teams into account would be doomed to failure. Therefore, it is appropriate to recruit but also to train talents, while maintaining a committed corporate culture .

We will then discuss strategic planning which will allow resources to be organized in such a way as to: 

• Anticipate recruitment needs
• Plan the implementation of projects
• Train the teams

     D) Measure performance

Performance measurement is one of the key factors in project governance. Any strategic decision must be based on numerical facts , then taking the form of precise reporting.

The latter will help the company to move towards the most financially coherent projects and will also facilitate recruitment in anticipation of the months to come.

     E) Stay flexible

If the implementation of procedures and the anticipation of risks make it possible to facilitate the sustainability of the company, flexibility remains an essential value.

Indeed, project governance must absolutely be scalable depending on hazards. Thus, the company must be able to react quickly by adapting resources , processes , calendars , and even management teams.

An excellent way to positively evolve project governance is to collect opinions, both from employees and clients, in order to move towards improvement .

 

Schedule changes by email or chat are time-consuming?

Reshuffle your schedules easily: shift, cancel, reallocate to other collaborators with ease.

 

     F) Communicate

Caring and constructive communication remains the key to optimal project governance. Listening, interpersonal skills, but also autonomy and a sense of responsibility are all necessary qualities in the implementation of project governance.

Establishing effective communication requires in particular the establishment of relevant channels for sharing information , thus ensuring relay between the teams to discuss the progress, the problems as well as the decisions taken and the feedback.

 

Setting up project governance remains a complex process as its issues are strategic. If project management concerns a micro vision, project governance conversely implies a macro vision, thus affecting the entire company and its sustainability .

Optimal project governance will enable an improvement in performance , quality delivered and profitability . However, it will be necessary to invest to achieve these results, both in structure , in people and in the organization of information .

However, let us keep in mind that each company is unique and must find its own method, adapting to its constraints and promoting its most important asset: its teams.