The Complete Project Management Office Handbook, Second Edition (ESI International Project Management Series)

The "project governance" PMO function specifies many activities that provide oversight and guidance or otherwise specify the business influence of the project management environment. This function is somewhat laden with bureaucracy that is beyond the capability of the smaller PMO. However, even the smaller PMO must ensure the creation of a project management environment that is responsive to business needs and interests and whose behavior is consistent with the same senior management expectations and business guidance that is applicable to all business units within the relevant organization.

Here is a list of some of the more important project governance activities on which the new or smaller PMO can focus:

• Develop a PMO charter and get it approved at the highest executive level. This guides the activities of the PMO and its oversight of the project management environment. It represents the PMO's operating orders, and it designates responsibility and authority to act within the relevant organization.

• Identify the PMO executive sponsor and establish an "executive control board." The smaller PMO will likely have initial focus on technical work performance within the project environment and will distinctly need senior management participation to add insight and guidance to the business dimensions of its operations. This board also will inherently address any policy development that is needed to support project management activities. Successful integration of business interests will pave the way for an expansion of PMO responsibilities and influence within the relevant organization. It is good for the project management environment to have such representation.

• Develop a project classification scheme. This promotes a common understanding of project activity within the project environment and across business units. It does not have to be complicated, but it must accurately define the prominent types of projects conducted within the purview of the PMO.

• Identify and recognize the roles of key business and technical management groups within the relevant organization. Know where to go to get pertinent guidance. Appropriate oversight relationships will likely emerge as needed.

The bottom line of project governance is to ensure that project management is conducted according to the prescribed processes and procedures, as endorsed by senior management and aligned with business needs and interests.