6 Key Steps to Implement an effective project governance process
November 09, 2023
To scale their activities, companies have no other solution than tooptimize their project management. Improving day-to-day operations is essential to gaining competitiveness and conquering 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 three-part article, we'll explain what is involved in project governancethe issues and present you with the key key factors to help you implement it in your company.
1. What is project governance process?
A) Differentiating between project governance and project management
While project management and project governance both involve the realization of implementation of projects within a company, they differ, however, in their dimension.
Project governance being a global global methodologyuses project management as a tool to achieve its strategic objectives. its strategic objectives.
B) A management method
Defined by corporate sociologist Jean-François Chantaraud (2012) as
" the set of rules and methods organizing reflection, decision-making and the monitoring of the application of decisions within a social body "In practice, project governance remains a management management method and 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 is its strategic dimension. strategic dimension. Indeed, defining project governance implies taking the lead in vision. Management teams then have a heavy responsibility: that of choosing projects that align with the company's overall strategy.
2. Why set up project governance?
Guaranteeing a certain level of quality thanks to structuring and organization project governance meets real challenges. What's more, its implementation offers many advantages.
A) Aligning operations with strategy
Aligning projects with corporate strategy can be complex. However, setting up a precise project governance structure will enable you to work towards this coherence, while taking into account the company's development objectives development objectives.
In addition, project governance is particularly useful for reconcile the sometimes of an organization's various stakeholders.
B) Facilitating decision-making
The definition of project governance is based on concrete concrete figures from operational activities activities.
A reliable analytical vision will help provide all the elements needed for informed decision-making. It should also be noted that this analysis must be based on relevant relevant financial indicators to be defined strategically.
C) Optimizing resource management
Visit resource management is often a particularly complex issue for companies.
Indeed, the lack of visibility sometimes complicates the smooth running of projects.
By defining project governance upstream, you will improve your long-term visionwhich will enable you to better prioritize development projects.
Project governance is a major investment for any company, since it requires the involvement the involvement of teams and managementthe benefits are nevertheless considerable.
The implementation of project governance contributes to a company's company's long-term viability by facilitating the smooth running of activitiessmooth operation, which in turn generates productivity gains and improved profitability. What's more, it helps loyalty by simplifying their day-to-day activities, thanks to increased greater autonomy and visibility.
E) Improving communication
Project governance helps to streamline the flow of information. Each role is defined in advance and, above all, transparent. Obtaining information becomes accessibleevery employee knows exactly who to contact. Communication flows are thus simplified and considerable time savings.
The siloing of project and finance departments makes it difficult to manage projects optimally. In contrast, Stafiz brings project management control tools from finance to project management in the field. What's more, access rights to the platform are fully configurable, providing the right level of information to your various collaborators. So everyone has the keys to act at their own level.
Thanks to visibility on the company's various activities, project governance makes it possible to streamline decision-making on projects. Indeed, doubts can sometimes arise, and teams may have to ask themselves: should we launch this project? Postpone it? Reframe it? Re-prioritize? Abandon it?
Project governance helps to answer these kinds of questions by enabling performance to be performance measurement,through project management indicators, thus facilitating decision-making.
B) Respect costs and deadlines and offer a high level of quality
By clarifying procedures and enabling improved productivityby clarifying procedures and improving productivity, project governance is a powerful method of ensuring that activities run smoothly. Precise planning makes it easier to costsand deadlines and helps deliver high quality.
Successful projects contribute to customer satisfaction. The company can benefit from opportunitiesopportunities, thereby boosting sales.
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.
Setting up project governance within a company contributes to risk anticipation in several ways.
The definition of procedures takes into account, in particular risk identification assessment of their probabilitytheir consequences consequences and, above all management.
Anticipation can also take the form of continuous continuous monitoringsupplemented by report generation which are essential tools for effective project governance.
In addition, risk anticipation is made possible by clarifying clarifying who is responsible and providing the necessary necessary resources to manage risks, both human and budgetary.
Stafiz helps you anticipate risks. Predictive KPIs show you future deviations before they happen. You can then take the necessary decisions to rectify the trend.
4. What are the key factors in setting up project governance?
A) Involving management
While this step may seem obvious, its essential nature justifies our highlighting it. Indeed, project governance is only made possible by the deep involvement of management's deep involvement management. The latter must understand the importance of implementing it on a global scale. global scalebecause it implies policies, priorities and strategic and strategic decisions.
The finance department must also join the collective effort by helping to define KPIs linked to budget management. In addition, it must help provide resources resources consistent with the company's vision, both in terms of staff and budget and equipment.
B) Define procedures
Project governance is, practically by definition, the implementation of procedures.
To generate real spin-offs, these must be clear and focused. Thus, the earlythe end and control methods must be perfectly defined.
On a day-to-day basis, this can take the form of optimal operational planning for example, by defining the schedule and resource planning of teams in a precise manner, taking into account the management of unforeseen events.
The Stafiz platform enables you to integrate the most efficient project management procedures:
Opportunity management and upstream optimization
Simple and powerful project planning and replanning : resource planning costs, subcontracting, phases, tasks
Continuous performance monitoring: time recording, gap analysis, etc.
Automatic invoicing, with due dates and follow-up on overdue items
While project governance involves procedures, it also touches the heart of the company: people.
Perfectly defined, framed project governance that doesn't take teams into account is doomed to failure. It is therefore essential to recruit but also to train talent, while maintaining a corporate corporate culture culture.
Strategic planning will enable us to organize resources in such a way as to :
Anticipate recruitment needs
Plan the implementation of projects
Train teams
D) Measuring performance
The performance measurement is one of the key factors in project governance. All strategic decisions must be based on quantified factsin the form of precise reporting.
The latter will help the company orient itself towards the most coherent coherentfinancially and will also facilitate recruitment in anticipation for the months ahead.
E) Stay flexible
While the implementation of procedures and the anticipation of risks help to ensure the company's long-term future, flexibility is a key factor. flexibility remains an indispensable value.
In fact, project governance must be able to scalable in response to unforeseen events. The company must be able to react quickly by adapting resourcesresources processesprocesses schedulesand even management teams.
An excellent way to positively influence project governance is to collect opinions, from both employees and customers, 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) Communicating
A constructive communication remains the key to optimal project governance. Listening, interpersonal skills, but also autonomy and a sense of responsibility are all necessary qualities when implementing project governance.
Effective communication means setting up appropriate channels for sharing information.These channels enable teams to exchange information on progress, problems, decisions and feedback.
Setting up project governance remains a complex process because the stakes are so strategic. While project management is concerned with a micro vision, project governance involves a macro vision, touching on the entire company. globality of the company and its sustainability.
Optimum project governance will enable improved performancequality quality quality and profitability. However, to achieve these results, investment will be required, both in the structurein in people and in the organization of information.
It's important to remember, however, that every company is unique, and needs to find its own method, adapted to its own constraints. constraints and making the most of its most important asset: its people.
