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2 Project Governance
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4 Project Governance Ralf Müller PM Concepts, Sweden
5 Ralf Müller 2009 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher. Published by Gower Publishing Limited Gower Publishing Company Wey Court East Suite 420 Union Road 101 Cherry Street Farnham Burlington Surrey, GU9 7PT VT England USA Ralf Müller has asserted his moral right under the Copyright, Designs and Patents Act, 1988, to be identified as the author of this work. British Library Cataloguing in Publication Data Müller, Ralf Project governance. - (Fundamentals of project management) 1. Project management 2. Corporate governance I. Title II. Series 658.4'04-dc22 ISBN: (hbk) ISBN: (ebk) Library of Congress Cataloging-in-Publication Data Müller, Ralf. Project governance / by Ralf Müller. p. cm. -- (Fundamentals of project management) Includes bibliographical references and index. ISBN Project management. I. Title. HD69.P75.M '04--dc22 XV
6 contents List of Figures List of Tables Acknowledgements 1 2 Introduction What is Governance and Why Do We Need it? Definitions Governance Theories Governance of Projects and Project Management as a Subset of Corporate Governance Paradigms for Project and Project Management Governance vii ix xi Objectives and Institutions Projects as Temporary Organizations Institutions Responsible for Governance of Projects and Project Management Institutions for Governance of Projects Institutions for Governance of Project Management Existing Standards and Guidelines Governance of Project Management Migrating to a Project Based Organization Organizational Context How Much Project Management Is Enough? Key Roles and Individuals in the Framework Governance of Programs and Portfolios Programs and Portfolios as a Form of Governance Governance of Project Portfolios Governance of Programs Summary
7 vi Project Governance 5 Governance of Projects The Steering Group Governance Views Conclu sion Choosing an Appropriate Project Manager Summary Towards an Integrated Governance Model Linking Governance of Projects, Programs and Portfolios A Model for Governance of Projects, Programs and Portfolios Summary The Way Forward The Way Forward Summary of this Book References Index
8 list of figures Figure 2.1 The relationship between strategy and projects Figure 3.1 Forces impacting quality of project management Figure 3.2 Governance framework for project management Figure 3.3 Model for governance of project management Figure 4.1 Four different governance styles Figure 4.2 Organizational performance in different governance structures Figure 4.3 Information and action flow linking strategy and projects Figure 5.1 Governance equilibrium and its deviations Figure 6.1 Model for project governance Figure 6.2 Project governance hierarchy Figure 6.3 Governance model
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10 list of tables Table 1.1 Pros and cons of make or buy decision Table 1.2 Four governance paradigms Table 5.1 Gateway recommendations Table 6.1 Example of organizational linkage
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12 acknowledgements I am grateful to several people for their help and support in writing this book. I should give particular mention to David Keech. He read each chapter of the book at least twice and made a large number of comments. Following his input the text became much more readable and structured. Through his input the text remained aligned with a practitioner s view of the subject. His contributions to the practical application of this book were substantial. I should further mention my wife Renate, who proofread the draft and provided me with an outsider s view on the text. Finally, large parts of the text are based on research studies I carried out over the last decade. These studies were done with a number of researchers whose work and experience provided me with lots of insight into the research areas and made this book possible.
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