Organizational Systems and Project Governance

  1. Organizational systems refer to the structure, policies, procedures, and culture within an organization that influence project management practices. Project governance involves the framework and processes that guide decision-making, accountability, and control within a project.


    • Functional Organization: Projects are executed within functional departments, and project managers have limited authority.
    • Matrix Organization: Project managers have a higher level of authority, and resources are shared between functional departments and projects.
    • Projectized Organization: Projects are the primary focus, and project managers have full authority over resources.


    • Project Management Office (PMO): A centralized unit within an organization responsible for standardizing project management practices, providing support, and ensuring alignment with organizational objectives.
    • Governance Committees: Committees composed of stakeholders who provide oversight and guidance on projects, ensuring they align with strategic goals and follow established policies.


    • Standardized Practices: Organizational systems and project governance help establish standardized project management practices, leading to consistency and efficiency.
    • Clear Roles and Responsibilities: They define roles and responsibilities within projects, reducing confusion and improving accountability.
    • Alignment with Organizational Objectives: Project governance ensures that projects align with the strategic goals and priorities of the organization.
    • Risk Management: Governance structures facilitate the identification and mitigation of risks at the organizational level.


    • Bureaucracy: Organizational systems and project governance can introduce bureaucratic processes that may slow down decision-making and project execution.
    • Resistance to Change: Implementing new governance structures or processes can face resistance from employees who are accustomed to existing practices.
    • Overhead: Maintaining a project governance framework requires time, resources, and administrative effort.


    • Large-scale Organizations: Organizational systems and project governance are particularly relevant in large organizations with multiple projects and departments.
    • Government Agencies: Government entities often have well-defined governance structures to ensure compliance, transparency, and accountability in projects.


    • Implementation of a PMO: A company establishes a Project Management Office to standardize project management practices, provide project oversight, and support project managers across various departments.
    • Creation of a Governance Committee: A government agency forms a governance committee composed of representatives from different departments to review and approve major projects, ensuring compliance with regulations and strategic objectives.


    • "Project Governance: A Practical Guide to Effective Project Decision Making" by Ross Garland
    • "Project Management Institute (PMI) Governance of Portfolios, Programs, and Projects: A Practice Guide"