Project Portfolio Management Governance Guidelines
Assuming that we have made the case that Corporate Governance and Project Portfolio Governance are closely aligned, yet distinct from governance in the lower levels of the hierarchy, then we should be able to draw on corporate governance for guidance. Based on corporate governance audit recommendations for effective corporate governance, the following major headings are suggested for Project Portfolio Management Governance Guidelines.
- Management Direction -The Project Portfolio Management Group (the "Group") should ensure that the programs and projects are correctly aligned with the organization's strategic objectives.
- Relevance -The Group should address actual opportunities, conditions or challenges that confront the organization.
- Appropriateness - The Group should design its program and major elements, including setting a logical level of effort, to meet the specific corporate objectives.
- Achievement of Results - The Group should determine to what extent the goals and objectives of the Group are being realized.
- Acceptance - The Group should determine to what extent the Group's intended 'customers' are judging the results as being satisfactory.
- Secondary Impacts and Risks - The group should examine if there (or might there be) significant intended or unintended consequences, positive or negative.
- Costs and Productivity - The Group should verify to what extent there is (or will be) an improvement in corporate productivity and output at reduced effort and lower cost as a result of the Group's work.
- Responsiveness - The Group should maintain awareness of the extent to which the organization can be expected to adapt to the change(s) involved resulting from the Group's work.
- Financial Results - The Group should maintain accounting for the work-in-progress and the assets being improved under the Group's responsibilities.
- Working Environment - The Group should periodically examine the improvement in the environment for the user/employees as reflected by their adoption of the products and services resulting from the Group's responsibilities.
- Protection of Assets - The Group should ensure that the organization's assets are being protected in terms of mitigation of risks arising from the Group's project portfolio activities.
- Monitoring and Reporting - The Group should establish effective high-level reporting within the Group and to corporate management that establishes program and project performance, the delivery of products and service, their integration into their respective environments, and the realization of intended benefits?
12. Adapted from Effectiveness - Summary Report, Canadian Comprehensive Auditing Foundation, http://ccaf-fcvi.com/