Support

The next key governance questions are based on an understanding of how much organisation change is required. Projects that cross more organisational boundaries and require more organisational change are much more difficult because of the larger number of often very powerful stakeholders involved. The approving authority needs to assess 'Who should sponsor the project' (on their behalf and be responsible for delivering the promised benefits)? The sponsor needs not only the passion to drive through the changes, but also the ability, authority and influencing skills to make it happen. In some cases only the CEO is the right sponsor, but an alternative arrangement may need to be made because the CEO may not have enough time to govern all aspects of the project. Quite often this will relate to the reward mechanism that is adopted.

The underlying issue is how to motivate the stakeholders and in particular the sponsor to deliver the promised benefits. Historically projects have not been measured or only measured on the basis of on-time on-budget. This is not sufficient for effective project governance and an approving authority needs to specifically ask the question 'How will the benefits be measured and sponsor rewarded?' In some organisational cultures, performance bonuses are appropriate, in other cultures it may be appropriate to revise the sponsor and other stakeholder’s budget to reflect the business case promises, in other cases it might be enough to focus attention by implementing a regularly reviewed board level progress report. The answer to this question should probably be proposed in the business case and it is important for the board to consider whether it is likely to influence stakeholders appropriately given the history of dysfunctional behaviour in the project space. It is almost never appropriate to monitor solely on the basis of on-time on-budget and it is incumbent on the board to insist on a more meaningful measure of success, a measure that is more directly related to the business case benefits.