Organizational Governance refers to those aspects of project governance, support
and control that are the responsibility of the most senior executives within an
organization, typically a "Board of Directors" or similar. For example:
Governance generally includes organizational policies, practices and systems
responsible for ensuring the organization's resources are utilized effectively,
and the work of the organization is aligned with its strategy and objectives.
Also, the interests of the organization, its internal and external stakeholders
and society as a whole are aligned as closely as is possible. This is the primary
function of the governing board of the organization, i.e., in commercial organizations
the Board of Directors. In others, the "governing council" is in whatever
form that body is constituted. The governing process frames the organizations
culture, capabilities and strategy.
P3 Governance is the sub-set of organizational governance focused on obtaining the best value from the projects and programs undertaken by the organization in support of its strategic objectives by balancing the risk of doing each project or program with the expected "rewards". It encompasses project, program and portfolio governance and is focused on overseeing the systems that ensure the right projects and programs are selected by the organization to support its strategic vision, and that the selected "few" are accomplished as efficiently as possible to maximize the value created for the organization as a whole.
Figure 2: The Elements of Project Governance
There are three primary elements in project governance:
- Ensuring an effective strategic plan is developed, and then the right projects and programs are selected to "do" for the right reasons Portfolio Management
- Ensuring the organizational capability to support the efficient delivery of the projects and programs is in place supported by a culture of accountability and a focus on delivering value (benefits realized).
- Reviewing and over sighting the on-going work of the projects and programs and ensuring the information is used effectively to support the overall governance of the organization.
has a library of papers and reports focused on governance that are available for downloading from: www.mosaicprojects.com.au/Resources_Papers.html#Governance
4. For more on Corporate Governance see: www.mosaicprojects.com.au/WhitePapers/WP1033_Governance.pdf