Assignment One of Two

Project Governance

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Table of Contents
Introduction..................................................................................................................................................2
The Importance of Strong Project Governance........................................................................................ 2
Purpose.....................................................................................................................................................2
Structure Overview...................................................................................................................................2
Role of Project Governance in the Project Business Case.............................................................................3
Project Governance and Key Components............................................................................................... 3
Impact of Project Governance on the Business Case............................................................................... 4
Project Closure and Lessons Learned........................................................................................................... 4
Project Governance in the Closure Phase.................................................................................................5
Project Governance in Capturing and Disseminating Lessons Learned.................................................... 5
Contribution of Project Governance.........................................................................................................5
Project Governance during Project Initiation and Planning..........................................................................6
Governance Structures, Roles, and Responsibilities.................................................................................6
Project Governance in the Initiation and Planning Phases....................................................................... 6
Project Objectives, Scope, and Deliverables.............................................................................................7
Project Governance during Project Execution.............................................................................................. 7
Monitoring and Controlling Project Activities.......................................................................................... 7
Project Performance, Risk Management, and Stakeholder Engagement................................................. 8
Impact of Project Governance during Execution Phase............................................................................8
Conclusion.................................................................................................................................................... 9
References.................................................................................................................................................. 10
Introduction
When a project is well-governed, it has the structure, supervision, and decision-making
procedures it needs to succeed across its entire lifespan (Kerzner, 2017). From the business case
inception until project closure, project governance covers the structure, methods, and
responsibilities that direct and manage project operations. It guarantees that initiatives are
well-managed and provide the desired results (Müller & Jugdev, 2012). This section will offer a
high-level summary of the assignment, define its goal, and explain why good project governance
is crucial at every stage of a project's lifespan.

The Importance of Strong Project Governance

Organisational success depends on sound project governance, which provides a structure for
making decisions, assigning responsibility, and handling risks (Thiry, 2010). Scope creep, poor
resource allocation, and inefficient stakeholder management are just some of the problems that
might arise if a project lacks good governance (Bredillet, 2010). Organisations may reduce these
risks and increase the probability of attaining project goals by establishing excellent project
governance.
Defining who does what and why is an essential part of managing a project. This guarantees that
all parties involved in a project are on the same page from the beginning to the end (Liu et al.,
2014). Project delays and inefficiency are more likely to occur without adequate governance
because team members may get confused, duplicate their efforts, or fail to coordinate with one
another.
Risk management is another important part of leading a project. Effective governance ensures
that risks are detected, analysed, and managed correctly (Pinto & Slevin, 2017) despite the
inherent unpredictability of projects. Methods for managing risks, reducing exposure, and
keeping an eye on things during a project are all part of this. Proactively addressing risks and
reducing their influence on project results is made possible by strong project governance.
In addition, proper project governance is essential for keeping projects in step with
organisational goals. Organisations may better prioritise projects based on their strategic
importance and spend resources sensibly if they have established clear project governance
frameworks (Gareis, 2010). As a result, organisations are better able to pick projects, allocate
resources, and weigh trade-offs in a way that advances their strategic objectives.

Purpose
The goal of this task is to analyse and assess the literature and academic discourse around the
shifting nature of project governance at different points in the project life cycle. This assignment
is to give a holistic knowledge of how project governance effects project success from the
original business case through the project's conclusion by reviewing relevant research papers.
This assignment will go into the fundamentals of project governance, discussing its function at
each stage of the project and the effects of good governance on the final product.

Structure Overview
Each element of this assignment deals with a different facet of project governance at a different
stage in the project's lifespan. These are the many parts:
 ● The Impact of Project Governance on Business Case Creation and Approval This section
analyses the role of project governance in creating and approving the business case. It
delves into the research that shows how vital good governance is to a successful business
case (Bourne et al., 2015).
● Project Governance during Initiation and Planning: This section addresses the importance
of project governance in establishing governance frameworks, outlining project goals,
and guaranteeing thorough preparation. References will be made to the scholarly
literature (Turner, 2019) to back up the claims made.
● Project Governance During Project Execution: This part examines the function of project
governance in monitoring and regulating project operations, managing risks, and
involving stakeholders while the project is being carried out. The debate will be bolstered
by citing pertinent scientific literature (Crawford, 2021).
● Project Governance during Project Closure and Lessons Learned: This part focuses on
how project governance helps to the effective closure of projects, including finalising
paperwork and documenting lessons learned. In this stage, we will look to the academic
literature for support of the value of governance (Westland, 2013).
In conclusion, effective project governance is crucial at all stages. The relevance of project
governance has been outlined, and the assignment's goal and general outline have been
presented. In the sections that follow, we'll examine each stage of the project lifecycle and, using
evidence from the literature, assess how well project governance served each stage.

Role of Project Governance in the Project Business Case

Project Governance and Key Components
Organisational control over the management of projects is achieved via the use of a framework
called "project governance" (Thiry, 2010). Throughout the project's life cycle, this process
ensures proper decision-making, accountability, and control by defining structures, roles, and
duties (Kerzner, 2017). Pinto and Slevin (2017) identify the project governance body, the project
charter, the project sponsor, the project management office (PMO), and the project steering
committee as the essential elements of project governance.
The project business case (Bourne et al., 2015) lays forth the project's justification, goals, and
anticipated returns in order to pave the way for its inception. The business case for a project can't
be created without the help of project governance.
To begin, proper project management ensures that the project's business case is in line with the
organization's long-term objectives. Project proposals may be evaluated and prioritised based on
their strategic value and potential contribution to the organization's performance if proper project
governance frameworks are in place (Gareis, 2010). This consistency improves the odds of
attaining strategic goals by ensuring that approved initiatives are in accordance with the
organization's overall plan.
Second, proper project management makes it easier for interested parties to analyse and evaluate
the project's business case. The business case is evaluated thoroughly with the help of project
governance entities such as steering committees or project sponsors (Turner, 2019). It is the
responsibility of these governing organisations to evaluate the business case for its viability,
practicality, and consistency with the organization's aims, and they offer the necessary
professional knowledge, insights, and decision-making power to do so.
In addition, good project management guarantees that the project's business case is grounded in
reality. Business cases are validated for accuracy in terms of assumptions, resource needs, and
anticipated results by governance bodies (Westland, 2013). This aids in avoiding overly
optimistic forecasts or unreasonable expectations, both of which may threaten the project's
success.

Impact of Project Governance on the Business Case

The quality and feasibility of the project business case is greatly impacted by the quality and
viability of the project governance. Business case validation helps guarantee that proposals are
well-reasoned, backed up by facts, and suitable for the organisation (Bredillet, 2010). There are a
number of ways in which project governance affects the business case, as detailed in the
scholarly literature.

Impact Description
Enhanced Project governance structures enable informed decision-making during
decision-making business case development.
Risk assessment Governance ensures risks are assessed and managed within the business
and management case.
Stakeholder Project governance fosters stakeholder involvement, enhancing credibility
alignment and and support for the case.
engagement
Resource allocation Governance helps evaluate resource needs and prioritize projects based on
and prioritization strategic value.

In conclusion, project governance is essential in creating and gaining buy-in for the project's
business case. It helps with decision-making, risks, and resource allocation, and stakeholder
interaction to guarantee strategic goals are met. Project governance increases the chance of a
project's success by affecting the quality and feasibility of the business case. Effective
management of the business case creation process requires the participation of project
governance bodies and the establishment of defined roles and duties within the governance
structure (Crawford, 2021).

Project Closure and Lessons Learned

Project closing is a pivotal step since it signifies the finalisation and transfer of all project
outputs. Important tasks at this stage include completing all necessary project paperwork,
performing project reviews, documenting lessons learned, and formally closing the project.
Project governance is discussed in this section, along with its significance in lessons learned
procedures and its role in ensuring a project's successful conclusion and the subsequent
transmission of learned information to other initiatives.
Project Governance in the Closure Phase
Closing a project successfully requires the advice and monitoring provided by project
governance (Westland, 2013). The following are central components:
● Project reports, final financial accounts, and final project assessments are all examples of
documents that should be finalised as part of good project management. All of the
project's successes, failures, and lessons learned should be documented (Müller &
Jugdev, 2012). These papers are reviewed and approved by governance entities including
steering committees and project management offices to guarantee correctness and
thoroughness.
● Project governance makes it easier to conduct evaluations of completed projects during
the closing phase. Reviewing a completed project's successes and failures might provide
useful information for planning future endeavours (Pinto & Slevin, 2017). Project results,
objective conformity, and adherence to project management methods and standards may
all be assessed by performing in-depth reviews (Liu et al., 2014). These analyses are
useful for spotting problem areas and making informed choices about the direction of
future endeavours.

Project Governance in Capturing and Disseminating Lessons Learned

Lessons learnt from a project must be documented and shared effectively, and this is where
project governance comes in (Gareis, 2010). Project management best practises may be refined
by reflecting on and applying the lessons learnt acquired over a project's lifespan. Policymaking
safeguards the following:
● Identifying and Documenting Lessons learnt Lessons learnt are identified, recorded, and
organised via the project governance structures and procedures. Members of a project
team are encouraged to think critically about their work, pinpoint problems, and write
down their solutions by governance bodies (Bourne et al., 2015). Both successful and
problematic situations are recorded here for future reference.
● Knowledge is disseminated and shared more easily inside an organisation thanks to
project governance. Project teams, upper management, and future project managers may
all benefit from hearing about past mistakes and how to avoid them thanks to the work of
governance bodies (Thiry, 2010). By doing so, people may learn from your successes and
failures, and your projects will run more smoothly and efficiently in the future (Turner,
2019).

Contribution of Project Governance

Successful project completion and knowledge transfer to subsequent initiatives are greatly aided
by good project governance:

Contributions Description
Effective Governance supports informed decision-making, ensuring successful
Decision-Making project completion.
Continuous Governance fosters a culture of continuous improvement through project
Improvement reviews and lessons learned.
In summary, project completion is not possible without good project governance. Project
documentation is completed, reviews are conducted, and lessons gained are documented and
shared. Project governance aids in the completion of projects and the transfer of knowledge for
future endeavours by taking part in these activities. Leveraging project experiences and
enhancing project management practises requires the participation of governing authorities and
the implementation of defined protocols for recording and distributing lessons learnt (Müller &
Jugdev, 2012).

Project Governance during Project Initiation and Planning

Project governance is essential in the beginning stages of a project because it provides the
framework and direction that is needed to make the project a success. This section explains how
project governance aids in defining the project's objectives, scope, and deliverables, and it
discusses the function of project governance in establishing governance structures, roles, and
responsibilities.

Governance Structures, Roles, and Responsibilities

According to Kerzner (2017), a project's governance is only as good as the structures, roles, and
duties it puts in place for managing the project. The following are key components of this:
● Creating a Project Steering Committee or Project Management Office (PMO) Project
governance guarantees the creation of these governance entities. Throughout the project's
life cycle, these frameworks are there to offer supervision, decision-making authority, and
support (Thiry, 2010). They provide efficient coordination and control by defining the
project's internal structure, communication routes, and reporting methods.
● Project governance includes defining and assigning roles and duties to the various parties
involved in a given project. Positions such as "project sponsor," "project manager," and
"team members" fall under this category (Pinto & Slevin, 2017). To promote
responsibility and productive cooperation, it is important to define roles and assign duties
based on those roles (Liu et al., 2014).

Project Governance in the Initiation and Planning Phases

The literature stresses the significance of project governance throughout the project's inception
and planning stages. Some essential features are:
● Strategic Goals: To guarantee that projects are in line with the organization's strategic
goals, project governance should be in place (Gareis, 2010). Projects that contribute to
the company's strategic objectives may be identified and prioritised using this method,
allowing for the most beneficial ones to get funding and manpower. Organisational
decision-makers examine proposed projects for viability, advantages, and consistency
with strategic goals (Turner, 2019).
● Stakeholder Involvement: Good project management encourages participation from all
relevant parties in the project's early stages. It makes sure that the people who need to be
engaged in setting the project's goals and parameters are (Müller & Jugdev, 2012).
 Stakeholders are more likely to support the project and contribute to its success when
they are actively involved in its planning and execution.
● Risk Management: Project governance is essential for recognising and controlling risks in
the early stages of a project's lifecycle, when the project is being conceived and planned
(Westland, 2013). It guarantees the implementation of risk management procedures, such
as the detection, evaluation, and prevention of risks (Bredillet, 2010). Risk management
operations are monitored by governance entities to reduce the likelihood of failure and
maximise the likelihood of success.

Project Objectives, Scope, and Deliverables

There are several ways in which project governance aids in articulating the project's intended
outcomes:

Importance Description
Strategic Alignment Governance ensures projects are aligned with the organization's strategic
objectives.
Stakeholder Governance promotes stakeholder involvement in defining project
Engagement objectives and scope.
Risk Management Governance identifies and manages project risks during the initiation and
planning phases.

Project Governance during Project Execution

In order to guarantee a project's success, proper project governance must be in place throughout
the execution phase. This section explains how project governance addresses project issues,
manages change, and ensures project success; it discusses the role of project governance in
monitoring and controlling project activities; it explores academic literature that highlights the
impact of project governance on project performance, risk management, and stakeholder
engagement during the execution phase; and it provides examples of project governance in
action.

Monitoring and Controlling Project Activities

In order to keep the project on track, project governance keeps an eye on and hand on all the
moving parts. The following are key components of this:
● Tracking Milestones, Deliverables, and Key Performance Indicators (KPIs) Project
governance is responsible for monitoring project progress (Pinto & Slevin, 2017). This
data is used by governance organisations to evaluate the progress of projects, spot any
discrepancies, and make any required adjustments (Müller & Jugdev, 2012). Keeping a
close eye on the project's progress is essential to making sure it meets its goals and
remains on schedule.
● Project governance guarantees that all project resources, such as time, money, and people,
are handled efficiently (Kerzner, 2017). Governance organisations set procedures for
allocating resources, track how those resources are being used, and deal with any
problems that arise as a result (Thiry, 2010). This level of project management oversight
is crucial for minimising waste, minimising risk, and maximising productivity.
Project Performance, Risk Management, and Stakeholder Engagement
Project governance has been shown to have a major effect on project outcomes including
performance, risk mitigation, and stakeholder involvement throughout the implementation phase.
Important results include:
● Effective project governance has been shown to have a constructive impact on project
performance (Westland, 2013). Decision-making, coordination, and control mechanisms
are provided by governance structures and procedures, which boost project output as a
whole (Bredillet, 2010). Organisational structures that oversee projects make sure
everyone is on the same page, keep an eye on key performance indicators, and step in
when things aren't going as planned.
● Project governance is essential for managing risks when a project is being carried out
(Turner, 2019). It guarantees the implementation of risk management procedures, the
identification and evaluation of risks, and the development of suitable mitigation
solutions (Bourne et al., 2015). Risks to a project's success may be mitigated with the
help of governance organisations, which provide direction and supervision (Liu et al.,
2014).
● Project governance encourages stakeholder involvement all through the implementation
phase (Gareis, 2010). Decision-making procedures benefit from governance bodies'
ability to improve communication, cooperation, and stakeholder participation (Crawford,
2021). Stakeholder relationships and project outcomes benefit from this kind of
participation because it facilitates trust building, expectation management, and
stakeholder satisfaction.

Impact of Project Governance during Execution Phase

When it comes to solving problems, adapting to new circumstances, and ultimately achieving
project success, good project governance is essential.

Impact Description
Project Effective project governance positively influences project performance.
Performance
Risk Management Governance reduces the likelihood and impact of risks on project success.
Stakeholder Governance fosters stakeholder engagement, building trust and ensuring
Engagement satisfaction.
Issue Resolution Governance provides a framework for addressing project issues promptly
and effectively.
Change Governance ensures effective management of changes during project
Management execution.
Project Success Project governance contributes to project success by providing structure
and control.
Conclusion
In conclusion, this task has investigated the shifting function of project governance at different
points in a project's lifecycle. From the business case inception until the project's final close, the
need of good project governance has been emphasised.
First, it was established that project governance is essential to the creation and acceptance of the
business case for the project in question. Project governance improves the quality and viability of
the business case by aligning it with strategic goals, assuring correct information, and integrating
governance bodies in the review process.
Second, project governance plays a crucial role in the project's initiation and planning stages by
establishing governance structures, outlining roles and duties, and guaranteeing strategy
alignment, stakeholder participation, and efficient risk management. Structure, clarity, and
direction are the cornerstones of a successful project, and they are provided by the governance of
the project.
Monitoring and regulating project operations, managing risks, and engaging stakeholders are all
tasks that fall within the purview of project governance throughout the execution phase. Project
governance has been shown to improve project results, reduce risks, and increase buy-in from
stakeholders. Project governance contributes considerably to the project's success via efficient
monitoring, control, and stakeholder interaction.
Project closure and knowledge retention rely heavily on good project governance. Project
governance guarantees the dissemination of information and the steady enhancement of future
projects via the completion of project documentation, reviews, and the recording of lessons
learned.
Strong project governance is crucial at every stage of a project's lifecycle. It provides a
framework for making decisions and monitoring progress on the project. Alignment with
strategic goals, risk management, stakeholder participation, and project success are all the results
of solid project governance. Problems including scope creep, insufficient resource allocation, and
poor stakeholder management are more likely to arise in projects that lack solid project
governance.
In conclusion, businesses should make establishing and keeping up solid project governance
structures a top priority. Among them include the establishment of transparent organisational
structures and roles, the maintenance of open lines of communication between all parties
involved, and the ongoing refinement of project management techniques in light of past
experience. In this way, businesses greatly improve their chances of completing successful
projects and effectively meeting their long-term goals.
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