What does a project management and governance structure look like?
There is no right way to do this and it will largely depend on the type of project and its size and level of risk. However there needs to be a clear distinction between the governance and the delivery function. The project sponsor should not be involved in the day to day running of the project, that is the project manager’s responsibility. Distance between the two functions is good to encourage objectivity.
A project governance and management structure for a large project could look like this
| Project steering group | Project manager | Leads the group |
|---|---|---|
| Others | Those involved with delivery of the project, and stakeholders | |
The project steering group reports to: |
||
| Project board | Sponsor | Leads the group |
| Senior user | Represents all stakeholders | |
| Senior supplier | Represents those delivering the project | |
| Project manager | Attends to answer questions but is not formally a member of the board | |
The project board is led by the sponsor and is responsible for governance. It does not need to meet regularly except to sign off key documents, authorise continuance of the project at key milestones and stages and formally close the project. The board then meets by exception to consider the on-going viability of the project in the face of external pressures or failure to deliver to time/budget/quality. It would also meet to consider any major change requests which take the project outside of the agreed framework and plans. The project board would be kept informed of progress by regular highlight reports from the project manager. The composition of the project board is largely at the discretion of the sponsor. What is important is that it is fit for purpose, it exists to assist the sponsor with the governance process. The sponsor can decide to dispense with the need for a board altogether and discharge the governance function alone.
The project steering group is the delivery arm and is led by the project manager and consists of those responsible for doing the project, and some of the stakeholders. It is likely to meet regularly to manage on-going project issues. It can only operate and make decisions within the project framework set up in the initiation phase and the plans approved by the project board/sponsor. Decisions which fundamentally alter anything in these documents must be referred to the board for approval.