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 .