Project sponsor
From CEOpedia | Management online
| Project sponsor |
|---|
| See also |
Projekt sponsor - "this is the single individual who is responsible on behalf of the (permanent) line organization to direct the (temporary) project organization, representing the business interests in the direction of the project and accountable for the realization of its business case"[1].
In other words, projekt sponsor is a person who provides or seek financial resources for project implementation, defines and monitors objectives and expectations towards the project, supports the project from the promotional side, actively engages in project management and authorizes key decisions within the project (for example: budget or schedule). He is also the person who derives the greatest business benefits from the implementation of the project. Easier, projekt sponsor is a high-level person in the organization that most cares about the project and is the most responsible for it[2].
Tasks of the project sponsor
The role of the project sponsor in most cases can be reduced to four issues[3]:
- Recognizing of problems, needs and business opportunities. It can come from any level in the organization. The sponsor at this stage is a person who will examine the problem or the opportunity, describe it and submit a paper to the board. These tasks may be commissioned to the sponsor by e.g. CEO. If the need, problem or opportunity is identified at the lower level of the organization, for example in the financial department, then the project sponsor should be selected among the senior managers of this department.
- Controlling of the business case for project. The sponsor of the project acts as a person whose task in the organization is to reject or cancel unprofitable projects that have no business case. The business case may change throughout the project period. Initial cost and benefit estimates may not correspond to the actual ones, so the project may lose business case and may require cancellation.
- Hiring the Project Manager. When the sponsor of the project has already identified the problem, the need or the possibility and analyzed business case, his task is to create a team that will realize the project. The first step is to hire a project manager who will take over part of the sponsor's tasks at a later stage of completing the team. It is important that the choice of the project manager is based on the analysis of his experience, skills, intelligence and energy.
- Facilitating communication between the organization and the project team. The project sponsor is an intermediary between the project manager and the organization. He can help the project manager understand the goals and requirements set for him by the organization. Conversely, the sponsor may help the projekt manager in providing information to the organization.
Examples of Project sponsor
- A Business Owner – A project sponsor is typically a business owner or senior leader who is responsible for the ultimate success of a project. They ensure that the project’s objectives align with the overall business strategy and objectives. They provide guidance and direction to the project team and other stakeholders, and may also provide resources, such as personnel and funding.
- A Project Manager – A project manager may also act as the project sponsor. This is especially true for small projects, or projects where the sponsor does not have the time or expertise to provide guidance and direction. The project manager is responsible for ensuring that the project is on track and meeting the expectations of the business.
- A Company Executive – A company executive may also be a project sponsor. This is especially true for large, complex projects where the executive is responsible for ensuring that the project is successful. The executive may provide guidance, resources, and funding to ensure that the project is on track and meets the expectations of the business.
- A Government Official – Government officials may also act as project sponsors. This is especially true for large, publicly funded projects. The government official is responsible for ensuring that the project meets the expectations of the taxpayers and that it is completed on time and within budget.
Advantages of Project sponsor
Project sponsors are an incredibly important asset for any project, as their involvement and oversight helps ensure that the project is successful. The advantages of having a project sponsor include:
- Increased visibility and oversight – A project sponsor is the single point of contact for the project, and is responsible for ensuring that the project is properly managed and reported on. This ensures that the project is monitored and that any issues are addressed quickly.
- Access to resources – Project sponsors can provide access to resources that may otherwise be unavailable to the project. This includes financial resources, personnel, and other resources as needed.
- A unified voice – By having a single point of contact, it allows the project team to have a unified voice when dealing with stakeholders, sponsors, and other external parties. This ensures that all parties are on the same page and that the project is moving in the right direction.
- Increased accountability – Having a project sponsor helps to ensure that the project is meeting its goals and objectives. The project sponsor is held responsible for ensuring that the project is completed on time, on budget, and to the highest quality standards.
- Improved communication – Project sponsors are responsible for communicating the project status, timelines, and objectives to the project team, stakeholders, and other external parties. This ensures that everyone is on the same page and that any issues are addressed quickly.
Limitations of Project sponsor
The Project Sponsor is responsible for the success of the project, however, there are a number of limitations to the role. These include:
- Lack of direct control: The Project Sponsor does not have direct control of the project, but must instead rely on the Project Manager to ensure the project is completed on time and within budget.
- Limited authority: The Project Sponsor has limited authority to make decisions and must rely on the Project Manager to implement any changes.
- Limited visibility: The Project Sponsor may not be aware of all of the project's activities and therefore may not be able to provide proper guidance.
- Limited resources: The Project Sponsor may not have access to the resources needed to complete the project, such as personnel or financing.
- Limited knowledge: The Project Sponsor may not have the expertise or knowledge necessary to make informed decisions about the project.
The project sponsor is responsible for the realization of the project's business case, representing the interests of the permanent line organization. Other approaches related to the project sponsor include:
- Developing a project charter: The project sponsor will create a written document that outlines the project's scope, objectives, timeline, deliverables, and budget. This document will serve as a guide for the project team and stakeholders.
- Providing resources: The project sponsor will be responsible for securing and allocating the necessary resources in order to ensure the success of the project. This may include providing financial resources, personnel, or other materials.
- Establishing project goals: The project sponsor will identify the project's success criteria and develop the project's goals and objectives, which will be used to measure the project's progress.
- Ensuring stakeholder engagement: The project sponsor will ensure that all stakeholders are engaged and informed throughout the project, and will communicate any changes or modifications to the project.
- Leading project reviews: The project sponsor will lead regular project reviews to ensure that the project is on track and that any risks or issues are addressed in a timely manner.
In summary, the project sponsor is responsible for leading the project, providing resources, establishing project goals, ensuring stakeholder engagement, and leading project reviews.
Footnotes
References
- Bucero A. & Englund R. L., (2015), Project Sponsorship: Achieving Management Commitment for Project Success, Project Management Institute,
- James V. & Rosenhead R. & Taylor P., (2013), Strategies for Project Sponsorship, Management Concepts Press, Leesburg Pike
- Van der Molen M., (2015), Successful Project Sponsorship: A Time-Saver for the Busy Executive, Kogan Page Limited
- West D., (2017), Project Sponsorship: An Essential Guide for Those Sponsoring Projects Within Their Organizations, Routledge, London & New York,
Author: Wojciech Musiał
