Formal project governance arrangements need to be established and agreed between the Project Sponsor and the appropriate senior management representative of the project management organisation. These governance arrangements will be specific to the project and will normally comprise:
- A project steering committee which will normally comprise representatives of the Project Sponsor organisation and the project management organisation
- A higher management representative within the project management organisation
- The Project Sponsor
The purpose of the project governance arrangements is:
- To provide support to the Project Manager and a level of escalation for major issues
- To authorise matters not delegated to the Project Manager
- To ensure there is wide understanding and acceptance of key project issues within the project’s sponsoring and delivery organisations.
The terms of reference of the steering committee and the levels of delegation given to the Project Sponsor, steering committee, Project Manager and higher management representatives will be documented. The governance arrangements may involve formal review and approval at key stages (“Stage Gates”).