Program Management Offices (PMOs) rely on myriad, integrated elements to be fully functional. Project, portfolio, resource, quality, PMO leadership, and governance must all be at acceptable maturity levels before a PMO can effectively meet business objectives. But what is governance?
Governance is a set of processes and an organization framework designed to help an enterprise achieve business goals.
Processes can be broken-down into two main categories, portfolio management, and project delivery. Portfolio management processes consist of steps used to evaluate, fund, select, and prioritize from among competing capital investment opportunities. They describe the procedures that determine the extent to which IT will comprise the enterprise budget. In addition to deciding which potential projects should be undertaken, portfolio management processes determine how many, or the demand that should be placed on a delivery organization. Processes also include prioritization so a PMO can deliver the highest value investments within resource and financial constraints.
Project delivery processes are those detailed steps that allow PMOs to plan and implement projects. Processes include all those for standard methodology phases, including a project intake process, and handoffs between lifecycle phases.
An organization framework refers to four key environmental factors: leadership, organization structure, meetings, and decision rights. Decisive and informed leadership is required to ensure that goals and objectives are communicated, and that communication is facilitated to and from the PMO. An effective organization structure should support roles and responsibilities that provide direction and accountability, and decentralize authority for improved engagement and operating in complexity. The structure should include PMO stakeholders for shared issues and outcomes. Well-run meetings with a functionally integrated audience help ensure that everyone understands goals, and the role each person has in accomplishing them. Decision rights refers to understanding who needs to make decisions, and the process by which each is made. Factors include providing required information, coordination and integration with other stakeholders, turnaround time, and reviews and approvals.
Effective governance can help organizations align operational strategies with business goals, establish consistent practices for repeatability, ensure that projects achieve business benefits, and increase overall PMO business value.