Project governance framework - Revision history

Tkokotas at 17:19, 16 November 2018

2018-11-16T17:19:07Z

← Older revision		Revision as of 17:19, 16 November 2018
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			''Developed by Ole Schwiethal''


	The PMI Guide on Project Management defines Project Governance as “the alignment of the project with stakeholders’ needs or objectives”. It is a critical function for the management of stakeholders and furthermore for the achievement of organizational objectives. Project governance provides the project managers and sponsors with a framework on how to make decisions to satisfy both stakeholder needs as well as organizational strategic objectives.		The PMI Guide on Project Management defines Project Governance as “the alignment of the project with stakeholders’ needs or objectives”. It is a critical function for the management of stakeholders and furthermore for the achievement of organizational objectives. Project governance provides the project managers and sponsors with a framework on how to make decisions to satisfy both stakeholder needs as well as organizational strategic objectives.
	<ref name="PMI_project"> Project Management Institute. (2004). A guide to the project management body of knowledge (PMBOK guide). Newtown Square, Pa: Project Management Institute. </ref>		<ref name="PMI_project"> Project Management Institute. (2004). A guide to the project management body of knowledge (PMBOK guide). Newtown Square, Pa: Project Management Institute. </ref>

S172276: /* Extended Stakeholder Management */

2018-02-22T12:07:05Z

Extended Stakeholder Management

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	====Extended Stakeholder Management====		====Extended Stakeholder Management====
	[[File:project_gov_stakeholder.png\|300px\|thumb\|right\|(3) Model for stakeholder management <ref name="renz"/>]]		[[File:project_gov_stakeholder.png\|300px\|thumb\|right\|(3) Model for stakeholder management <ref name="renz"/>]]
	P. Renz suggests an approach to [[~~stakeholder management~~]] similar to one developed by Wilbers (2004) and Gomez et al. (2002). The approach is based on four steps (see figure (3)):		P. Renz suggests an approach to [[Stakeholder Management]] similar to one developed by Wilbers (2004) and Gomez et al. (2002). The approach is based on four steps (see figure (3)):

	#'''Identification of stakeholders''': This task is not supposed to be a one-off activity but rather a periodically repeated one in order to adjust earlier phases. The main goal is to achieve a complete identification of as many stakeholders as possible.		#'''Identification of stakeholders''': This task is not supposed to be a one-off activity but rather a periodically repeated one in order to adjust earlier phases. The main goal is to achieve a complete identification of as many stakeholders as possible.
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	#'''Monitoring''': Assess e.g. if relationships or interactions with stakeholders are within or outside an expected range.		#'''Monitoring''': Assess e.g. if relationships or interactions with stakeholders are within or outside an expected range.
	<ref name="renz"/>		<ref name="renz"/>

	====Risk Management====		====Risk Management====
	A system for [[risk management]] should create the following outputs:		A system for [[risk management]] should create the following outputs:

S172276: /* Integrity Management */

2018-02-22T12:05:19Z

Integrity Management

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	====Integrity Management====		====Integrity Management====
	[[File:project_gov_integrity.png\|300px\|thumb\|right\|(2) Combined approach - recognizing ethics and discourse ethics <ref name="renz"/>]]		[[File:project_gov_integrity.png\|300px\|thumb\|right\|(2) Combined approach - recognizing ethics and discourse ethics <ref name="renz"/>]]
	P. Renz suggests a combined approach to Integrity Management ~~incorporating~~ comprising the recognition of ethics and discourse of ethical guidelines (see figure (2)).		P. Renz suggests a combined approach to Integrity Management comprising the recognition of ethics and discourse of ethical guidelines (see figure (2)).

	#'''''Discourse ethics'''''		#'''''Discourse ethics'''''
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	##'''Solidarity''': Each individual is considered as a person whose capabilities are of constitutive value.		##'''Solidarity''': Each individual is considered as a person whose capabilities are of constitutive value.
	<ref name="renz"/>		<ref name="renz"/>

	====Extended Stakeholder Management====		====Extended Stakeholder Management====
	[[File:project_gov_stakeholder.png\|300px\|thumb\|right\|(3) Model for stakeholder management <ref name="renz"/>]]		[[File:project_gov_stakeholder.png\|300px\|thumb\|right\|(3) Model for stakeholder management <ref name="renz"/>]]

S172276: /* System Management */

2018-02-22T12:04:20Z

System Management

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	#Interdisciplinary thinking		#Interdisciplinary thinking

	*'''System model''': In combination with systemic thinking, a system model allows a project to be configured and managed in best possible way according to ~~system~~ specific circumstances. The St. Gallen Management Model could e.g. be used as such a system. It comprises six key areas:		*'''System model''': In combination with systemic thinking, a system model allows a project to be configured and managed in the best possible way according to specific circumstances. The St. Gallen Management Model could e.g. be used as such a system. It comprises six key areas:
	#Environmental spheres		#Environmental spheres
	#Stakeholders		#Stakeholders
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	#Modes of development		#Modes of development
	<ref name="renz"/>		<ref name="renz"/>

	====Mission Management====		====Mission Management====
	The governance tasks corresponding to this module can be separated by the structuring force and project governance roles:		The governance tasks corresponding to this module can be separated by the structuring force and project governance roles:

S172276: /* Modules */

2018-02-22T12:02:41Z

Modules

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	\|		\|
	*Classic key responsibilities in governance		*Classic key responsibilities in governance
	Control role which governance is expected to exercise over its projects Assure its conformance to rules and laws		*Control role which governance is expected to exercise over its projects
			*Assure its conformance to rules and laws
	*Manage possible risks pro-actively		*Manage possible risks pro-actively
	\|}		\|}

S172276: /* Modules */

2018-02-22T12:01:02Z

Modules

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	*Assures institutional embeddedness		*Assures institutional embeddedness
	*Serves to analyze and understand specific context through systemic perspective		*Serves to analyze and understand specific context through systemic perspective
	*~~laying~~ groundwork for defining a possible project		*Laying groundwork for defining a possible project
	*~~creating~~ the know-how to understand the interrelationships and context of a project once it is up and running		*Creating the know-how to understand the interrelationships and context of a project once it is up and running
	\|-		\|-
	\|Mission Management		\|Mission Management

S172276: /* Transaction cost economics */

2018-02-22T11:55:58Z

Transaction cost economics

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	====Transaction cost economics====		====Transaction cost economics====
	The theory of transaction cost economics is about opportunistic behavior, which may be ~~cause~~ by organizational actions driven by self-interest and an ambition to minimize costs. It implies that companies adapt their governance structures in order to pay the lowest possible transaction costs. Between the buyer and seller of a good is a complex relationship and behavioral factors are also considered when choosing a transaction. In general it helps to understand governance in relation to procurement and organizational decision making.		The theory of transaction cost economics is about opportunistic behavior, which may be caused by organizational actions driven by self-interest and an ambition to minimize costs. It implies that companies adapt their governance structures in order to pay the lowest possible transaction costs. Between the buyer and seller of a good is a complex relationship and behavioral factors are also considered when choosing a transaction. In general it helps to understand governance in relation to procurement and organizational decision making.

	In the context of this article, the theory can e.g. explain and describe the process of assessing and selecting contractors or suppliers within a project. This implies, that there is a need in project governance for some kind of role which makes assessments and evaluations of actions within a project.		In the context of this article, the theory can e.g. explain and describe the process of assessing and selecting contractors or suppliers within a project. This implies, that there is a need in project governance for some kind of role which makes assessments and evaluations of actions within a project.

S172276: /* Relation to Program, Portfolio and Corporate Governance */

2018-02-22T11:53:16Z

Relation to Program, Portfolio and Corporate Governance

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	===Relation to Program, Portfolio and Corporate Governance===		===Relation to Program, Portfolio and Corporate Governance===
	[[File:project_gov_relation_1.png\|400px\|thumb\|right\|(1) Project governance between corporate governance and project management<ref name="renz"/> ]]		[[File:project_gov_relation_1.png\|400px\|thumb\|right\|(1) Project governance between corporate governance and project management<ref name="renz"/> ]]
	Project governance is not one single function as e.g. a project management office. It is rather an integrative and integrating element, which is related to various program, portfolio and corporate governance as well as management. It is a linking element between all of the above, aiming to resolve the governance gap between project governance at the operational level and corporate governance at the executive level (see figure (1)). <ref name="biesenthal"/>		Project governance is not one single function as e.g. a project management office. It is rather an integrative and integrating element, which is related to various aspects of program, portfolio and corporate governance as well as management. It is a linking element between all of the above, aiming to resolve the governance gap between project governance at the operational level and corporate governance at the executive level (see figure (1)). <ref name="biesenthal"/>
	According to the PMI standards on program and portfolio management, the governance functions on those levels have relatively similar goals for the respective levels. Common objectives shared by all of the above are e.g.:		According to the PMI standards on program and portfolio management, the governance functions on those levels have relatively similar goals for the respective levels. Common objectives shared by all of the above are e.g.:
	* Monitoring and controlling activities		* Monitoring and controlling activities
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	<ref name="PMI_program"> Project Management Institute. (2008). The standard for Program Management. Newtown Square, Pa: Project Management Institute. </ref>		<ref name="PMI_program"> Project Management Institute. (2008). The standard for Program Management. Newtown Square, Pa: Project Management Institute. </ref>
	<ref name="PMI_portfolio"> Project Management Institute. (2008). The standard for Portfolio Management. Newtown Square, Pa: Project Management Institute. </ref>		<ref name="PMI_portfolio"> Project Management Institute. (2008). The standard for Portfolio Management. Newtown Square, Pa: Project Management Institute. </ref>


	===Theoretical Background: Governance Theories===		===Theoretical Background: Governance Theories===

S172276: /* Key References */

2018-02-21T17:33:09Z

Key References

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	==Key References==		==Key References==
	*'''P.S. Renz. Project Governance - Implementing Corporate Governance and Business Ethics in Nonprofit Organizations''': ~~In this~~ book, ...		*'''P.S. Renz. Project Governance - Implementing Corporate Governance and Business Ethics in Nonprofit Organizations''': This book goes through the whole process of implementing project governance. Though the title says, it focuses on nonprofit organizations, the book goes through each chapter first in general and then defining some specifics related to nonprofit organizations. Especially for further reading into the different modules that were explained, the book gives extensive information.
	*'''Association of Project Management. Directing Change: APM Guide on Project governance''':		*'''Association of Project Management. Directing Change: APM Guide on Project governance''': This guide by the APM gives a good overview over project governance and is the main source for the principles-section. However, it does not provide an extensive framework on how to apply project governance.
	*'''Multi Level Project Governance: Trends and Opportunities''':		*'''Multi Level Project Governance: Trends and Opportunities''': This paper is the main source for relating the different organizational theories to project governance and the relation between project, program, portfolio and corporate level governance.
			*'''PMI-Standards''': Though providing little information on project governance, for more extensive information on program and portfolio governance, they are very source.


	<references/>		<references/>

S172276: /* Key References */

2018-02-21T16:48:47Z

Key References

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	==Key References==		==Key References==
	*'''P.S. Renz. Project Governance - Implementing Corporate Governance and Business Ethics in Nonprofit Organizations''':		*'''P.S. Renz. Project Governance - Implementing Corporate Governance and Business Ethics in Nonprofit Organizations''': In this book, ...
	*'''Association of Project Management. Directing Change: APM Guide on Project governance''':		*'''Association of Project Management. Directing Change: APM Guide on Project governance''':
	*~~The management of project management~~: ~~A conceptual framework for project governance~~		*'''Multi Level Project Governance: Trends and Opportunities''':




	<references/>		<references/>