Introduction
In today’s dynamic business landscape, maintaining strong governance in project and portfolio management (PPM) is not just a necessity but a strategic imperative. Effective governance ensures that projects align with organizational goals and are executed efficiently. This briefing explores best practices for achieving robust governance in PPM, supported by insights from industry leaders and compelling statistics.
The Importance of Governance in PPM
Governance in PPM is critical for organizational success. According to the Project Management Institute (PMI), organizations that invest in proven project management practices waste 28 times less money because more of their strategic initiatives are completed successfully (PMI, Pulse of the Profession 2020). This underscores the value of structured governance frameworks.
Best Practices for Governance in PPM
1. Establish a Clear Governance Framework
A well-defined governance framework is the backbone of successful PPM. This framework should include policies, procedures, and standards that guide project execution and decision-making. Gartner emphasizes that “organizations with mature PPM governance frameworks experience 25% higher project success rates” (Gartner, PPM Maturity Model).
2. Align Projects with Strategic Objectives
Ensuring that projects align with the organization’s strategic goals is crucial. This alignment helps prioritize initiatives that deliver the most value. A study by PMI revealed that 60% of projects aligned with strategic objectives are successful, compared to just 46% that are not (PMI, Pulse of the Profession 2019).
3. Implement Regular Performance Reviews
Regular performance reviews and audits help maintain oversight and accountability. These reviews should assess project progress, resource utilization, and compliance with governance standards. McKinsey & Company found that organizations with regular project reviews achieve a 30% improvement in project performance (McKinsey, The keys to organizational agility).
Conclusion
Robust governance is foundational to successful project and portfolio management. By establishing a clear governance framework, aligning projects with strategic objectives, and implementing regular performance reviews, organizations can enhance their PPM practices. As the business environment continues to evolve, these best practices will help PPMOs navigate complexities and drive organizational success.
References
- PMI | Pulse of the Profession 2020
- PMI | Pulse of the Profession 2019
- Gartner | PPM Maturity Model
- McKinsey & Company | The Keys to Organizational Agility
