Question

You work for ABC constructions corporation. The management is excited that you have recently earned your PMP credentials and has invited you to give a brief presentation to the executive team on Project Governance. After the presentation, you observe a friendly debate between two executives. Tim Moore claims that project management processes are sufficient for project governance. No other formal structure is needed. The other executive Vishal Pahwa disagrees, saying that only the project management processes are insufficient to provide Project Governance. He states that a robust Portfolio and Program management system is needed for effective project governance and achievement of the strategic objectives.

Whose views would you support? Explain the reasons with examples.

Answer 1

Project management processes are necessary for effective project execution, yet they do not encompass all aspects of Project Governance. Comprehensive Project Governance requires additional frameworks such as Portfolio and Program management to align projects with strategic objectives and manage risks, as evidenced by corporate governance failures in cases like Lehman Brothers.

Step-by-step explanation:

In the context of Project Governance, it is important to distinguish between project management processes and the broader governance framework within which those processes operate. While project management processes are essential for the day-to-day management of projects, ensuring tasks and activities are planned, executed, and controlled effectively, they are not by themselves sufficient for governance. Project Governance requires oversight mechanisms that go beyond the scope of individual projects and are aligned with the organization's strategic objectives.

Tim Moore's perspective underscores the value of project management processes but may overlook the need for a governance structure that encompasses not just the tactical execution of the project but also strategic alignment, risk management, and resource allocation at the organizational level. Vishal Pahwa's argument, emphasizing the importance of Portfolio and Program management, recognizes that effective Project Governance must ensure projects are not only managed correctly but also that they are the right projects, contributing to the strategic goals of the organization.

An example to showcase the necessity of robust Project Governance is the case of Lehman Brothers, where corporate governance structures failed to provide accurate information for decision-making. In project management, similar risks must be mitigated through comprehensive governance structures that include but are not limited to project management processes.