Types of governance

From CEOpedia | Management online

Governance in project management is the process of setting goals, decision-making, implementing processes and evaluating outcomes. It describes the system of rules, practices and processes used to manage a project, as well as the relationships between the project stakeholders. Governance also involves the establishment of policies, procedures and guidelines for project activities, such as budgeting, resource allocation and communication. There are three main types of project governance: top-down, bottom-up and collaborative. Top-down governance involves the project manager making decisions from the top down, while bottom-up governance allows stakeholders to make decisions from the bottom up. Collaborative governance involves stakeholders making decisions together.

Example of types of governance

  • Top-down Governance: This type of governance is typically used in larger organizations. It involves the project manager making decisions from the top down. The manager will typically have the final say in all decisions and will also be responsible for leading the team towards the project's goals. An example would be when a company decides to create a new product and assigns a project manager to lead the development process.
  • Bottom-up Governance: This type of governance is typically used in smaller organizations. It allows stakeholders to make decisions from the bottom up. This approach encourages input from stakeholders and allows them to have a say in the project's outcome. An example would be when a small business launches a new marketing campaign and allows their team to provide input and ideas on the direction of the campaign.
  • Collaborative Governance: This type of governance involves stakeholders making decisions together. This approach can be used to create a shared understanding of the project and its objectives. An example would be when a team of developers from different companies join forces to create a new software application. They would need to collaborate and communicate to ensure the project is successful.

Best practices of types of governance

Top-Down Governance: Top-down governance is best used when there is a clear chain of command and decision-making authority. It is typically used in a hierarchical organization, and decisions are made by senior management. This type of governance can be used to ensure that all stakeholders are aware of the project’s objectives and that the project remains on track. To ensure successful top-down governance, the project manager should create a clear line of communication between all stakeholders and the project team.

Bottom-Up Governance: Bottom-up governance is best used when the stakeholders are knowledgeable about the project and understand its objectives. This type of governance allows stakeholders to provide input and make decisions about the project from the bottom up. There should be a system in place for collecting and evaluating stakeholder input and feedback so that decisions can be informed and appropriate.

Collaborative Governance: Collaborative governance is best used when the project involves multiple teams, stakeholders, or departments. It allows stakeholders to collaborate and make decisions together, and can help foster a culture of ownership and accountability. To ensure successful collaborative governance, it is important to provide clear roles and responsibilities for each stakeholder, as well as establish rules for collaboration and decision-making.

Advantages of various types of governance

Project governance is an important tool for achieving successful project outcomes, as it provides a framework for decision-making and resource allocation. There are three main types of project governance: top-down, bottom-up and collaborative. Each type has its own advantages:

  • Top-down governance provides clear decision-making authority and accountability, as decisions are made by one person or a small group of people. It also allows for quick implementation of decisions, as there is no need to consult multiple stakeholders.
  • Bottom-up governance ensures that all stakeholders have a voice in the decision-making process, which can lead to higher levels of buy-in and better implementation of decisions.
  • Collaborative governance allows for a more holistic approach to decision-making, as stakeholders can look at the project from multiple perspectives. It is also more democratic, as decisions are made by consensus.

Limitations of various types of governance

Project governance is an important tool for managing projects, however, there are some limitations to the three main types of project governance. These limitations include:

  • Top-down governance can be too restrictive, as it limits the input of stakeholders and puts too much power in the hands of the project manager. This can lead to less creativity and innovation, as well as an increased risk of projects not meeting goals or timelines.
  • Bottom-up governance can be too disorganized and can lead to conflict between stakeholders, as well as longer decision-making processes.
  • Collaborative governance can be difficult to manage and can take up a lot of time. It also requires a high level of trust between stakeholders and can be difficult to maintain.

Other approaches related to types of governance

In addition to top-down, bottom-up and collaborative governance, there are several other approaches to project governance. These include:

  • Matrix Governance: This approach combines elements of both top-down and bottom-up governance. It involves assigning roles and responsibilities to stakeholders, setting up a formal decision-making process, and having regular reviews and audits to ensure the project is progressing according to plan.
  • Agile Governance: This approach is typically used for software development projects, and involves creating a "culture of collaboration" among stakeholders. It emphasizes the importance of communication and feedback, and encourages stakeholders to take ownership of decisions.
  • Outsourced Governance: Also known as "third-party" governance, this approach involves hiring an independent third party to oversee a project. This third-party can provide impartial advice, evaluate progress and make decisions on behalf of the project stakeholders.

In summary, there are several approaches to project governance, each of which has its own advantages and disadvantages. The right approach will depend on the specific project and its stakeholders.


Types of governance — recommended articles
Levels of the organization — Forms of organisation — Team structure — Project management organization — Matrix of responsibility — Project team — Downward communication — Program management office — Project sponsor role

References

Retrieved from "https://ceopedia.org/index.php?title=Types_of_governance&oldid=97417"