PROJECT GOVERNANCE

Project Governance

Project Governance

Introduction

Implementing any changes in an organisation's structure can and is a risky process that takes patience and careful planning. During a change, a company must consider which employees and executives are assets to the company and which are liabilities. Another consideration that companies must make is, what type of leadership style these executives will need in order to move the organisation forward with the transformation. Throughout the beginning stages of a project, a company will find employees who will accept the project, some will resist it, and some employees will be indecisive about the project. Rewarding staff with recognition is a common way to bring about change and is recognised as a strategy in encouraging employees to make the necessary shifts to better help the organisational needs and interests. (PMI Standards Committee. 1996)

This paper discusses the mechanism of project governance in an organisation and the leadership skills of project managers to achieve those projects.

Discussion

A project is a limited time purposeful change in a single system with the requirements for quality of results, a possible framework for flow of funds and resources and a specific organisation. Project governance mechanisms are the set of laws, regulations and procedures governing the interaction between the project participants, including decision-making by the project manager. (PMI Standards Committee. 1996)

Project Management

All projects of the Company can be divided into two groups:

external projects aimed at implementing the contracts directly related to the profile of the Company (design and construction of energy facilities, development of project documentation, etc.);

internal projects aimed at fulfilling the tasks of ensuring the functioning and development of the Company.

For external project management relates to the peculiarities of an aggregate planning (to the level of stages), where each step may represent a sub-project, planned and executed by the contractor.

Every project is divided into phases, the sequence of which determines the life project cycle. There are several models of the project life cycle. Many of them apply to a particular industry or a particular type of project. Regulation Project Management Company has identified the following main phases project life cycle:

initiation;

planning;

execution;

completion.

The output of each phase is the results of analysis which allows to make a decision or to proceed to the next phase of the project, or the correction of errors, or the completion of the project. Positive results of the completion of each phase of the project provide a progress towards the goal of the project as a whole, i.e. the creation of the final product (except completion of the project by its prudence extension). It should be noted that the next phase of the project could begin before the end of the previous phase and make decisions based on the results of its implementation. Of course, in this case, there are certain risks. But if they are accepted, such a situation is considered acceptable. (Turner and Keegan 2001)

Governance

Governance is less about any particular organisational structure, and more about enabling and making decisions at the lowest appropriate level with clearly defined accountability (Turner and ...