Organizational Project Management Governance in sight of PMI’ Guide

The concept of Project Governance, Program Governance, and Portfolio Governance has recently emerged, as has Organizational Project Management (OPM) Governance. This is in order to solidify the concepts of transparency and decision-making mechanisms while simultaneously working to achieve the organization's strategic objectives.

What is the Objective of Applying Project Governance?

By applying Organizational Project Management Governance, organizations that create an environment that accelerates the execution of their strategy and the achievement of their goals will be strongly supported, while solidifying transparency and trust in decisions and clarifying roles and responsibilities for everyone.

Brief Definitions

Organization Governance An organized method for providing control, direction, and coordination through individuals, policies, and management processes to achieve the organization's strategy and operational objectives.

Organizational Project Management Governance A set of frameworks, functions, and management processes to guide the organization's project management activities in order to align project portfolios, programs, and projects to achieve the organization's strategy and operational objectives.

Portfolio Governance A set of frameworks, functions, and management processes that guide the organization's project portfolio management activities to achieve the highest possible benefit from the organization's investments to achieve its strategy and operational objectives.

Program Governance A set of frameworks, functions, and management processes that guide the organization's project program management activities in order to realize Business Values to achieve its strategy and operational objectives.

Project Governance A set of frameworks, functions, and management processes to guide the organization's project management activities to create a product, service, or result (uniquely), to achieve the organization's strategic and operational objectives.

What are the Challenges of Applying Organizational Project Management Governance?

• Increasing level of business and project complexity
• Regulatory requirements of countries and governments
• Globalization
• Rapid and continuous technological change

Now the question is: What are the differences between Governance and Standard Project Management Activities?

Organizational Project Management Governance focuses on monitoring and approving the framework, functions, and management processes that guide decision-making for portfolios, programs, and projects.

As for Portfolio, Program, and Project Management, it is the execution of activities that are defined, planned, and executed to achieve the organization's strategy and operational objectives.

In the following table, we show you the difference between Project Governance and Project Management.

Table No. (1), The Difference between Project Governance and Project Management Source (PMI, 2016)

And the following figure illustrates the difference between Project Governance activities and Project Management activities.

Figure No. (1), The Difference between Project Governance Activities and Project Management Activities Source (PMI, 2016)

Now the most important question is: What are the Success Factors for Applying Organizational Project Management Governance?

Including, but not limited to:

• A management framework that integrates with the current organizational structure, strategy, and objectives.
• An efficient governance structure capable of providing oversight and guidance.
• Open, flexible, and responsive leadership to the organization's change needs.
• Appropriate sponsorship and commitment to provide support and resources.
• Encouraging the organizational structure to support all components of the governance framework.
• Empowering portfolio, program, and project managers with appropriate authority to remove barriers and obstacles.
• Clearly defined and measured KPIs (Key Performance Indicators) to mitigate risks and increase opportunities.
• Appropriate processes for selecting and prioritizing programs and projects.
• An appropriate structure for communications, knowledge management, training, and continuous improvement.
• Engaging all stakeholders to develop management processes and support organizational changes.
• Appropriate transformation commensurate with the required development and improvement to support governance.

We will continue this discussion, God willing, in future articles, to explain and detail the mechanisms for applying governance within the organization's project framework, starting with portfolios, moving through programs, and concluding with projects, in order to disseminate the concept of governance due to its significant impact on the performance of projects and organizations.