Defining Rules, Procedures, and Policies: Governance Series, Part II

Welcome to the second in our 4-part blog series on program and project governance. In the first post, we discussed the differences between programs and projects. In this post, we highlight the importance of defining rules, procedures, and policies that determine how programs and projects are controlled, managed, and overseen, and discuss some of the key considerations when setting up program and project governance in your organization.

SAP Rules, Procedures, and Policies Graphic

Key Aspects of Program and Project Governance: 

  • A set of structures, committees, teams, rules, procedures, and policies that determine how programs and projects are controlled, managed, and overseen
  • Enables and promotes good, timely decision-making
  • Reduces risk

According to this Harvard Business Review article, by Paul Rogers and Marcia Blenko, partners at Bain & Company, “making good decisions and making them happen quickly are the hallmarks of high-performing organizations.” For capital investments especially, but even for operational initiatives, good decisions start with program and project governance. Programs and projects must have proper oversight and accountability, they must align with the corporate strategy and business goals, and the governance must span the program and project lifecycle.

Establishing a governance plan lays the groundwork for order and success. It creates a guide for the decision-making process, and it determines what will happen within the lifecycle of the program and project, when and how it will happen, and who is responsible. There is no one-size-fits-all program or project governance structure that can be used by all companies.

Successful program governance provides the following benefits:

  • Increases efficiency and reduces risk
  • Establishes a framework for managing issues, opportunities, risks, and competing priorities
  • Helps to focus resources across an organization to meet strategic business goals

Key considerations for your organization before you start a program or project:

  • Is effective project governance in place?
  • Have governing bodies been defined?
  • Have the rules, procedures, and policies that determine how projects are controlled, managed, and overseen been defined?
  • Have decision-making rights been defined and communicated?
  • Is there alignment as to who and how decisions are made?
  • Are project-related decisions being made in a timely manner?

When analyzing the answers to big questions like these, don’t hesitate to take action where improvements can be made. If needed, establish, reboot, and/or communicate key components of effective project governance. To increase the likelihood of success, it’s critical to get alignment on these items before starting a program or project:

  • Steering CommitteeSAP Rules, Procedures, and Policies Chart
  • Project Management Office (PMO)
  • Project Organizational Structure
  • Decision Making Rights 
  • RACI
  • RAID Log
  • Reporting & Status Management

 

 

 

In conclusion, program governance is a crucial aspect of project management that ensures the overall success of an organization’s initiatives. It involves a structured framework and set of processes that govern the planning, execution, and monitoring of multiple projects under one program. In the next part of this series, we will dive deeper into the key components of program governance and how they can positively impact project outcomes. More specifically, we will discuss the three pillars of project governance:

  • Project Structure – should be fit-for-purpose
  • People – the right people in the right roles
  • Information – timely reporting and communication

Send us a note if you have questions on project governance that we can address in our ongoing blog series. Look for our next post in the series soon.

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Here are links to all 4 blog posts in this governance series: Part I: Understanding Programs vs. Projects  |  Part II: Defining Rules, Procedures, and Policies  |  Part III: Defining Committees, Bodies, and Structures  |  Part IV: Decision-making Rights and Tools

Understanding Programs vs. Projects: Governance Series, Part I

Welcome to our 4-part blog series on program and project governance. In today’s fast-paced and ever-changing business landscape, being effective at both is crucial for organizations to successfully implement their strategic initiatives. In this series, we will explore the key components of program governance and project management, highlight their importance in driving successful outcomes, and provide practical tips for implementing them in your organization.

SAP Project Governance Graphic

Let’s start with a comparison of an Information System (IS) program and project. An IS program refers to a long-term strategic initiative aimed at achieving specific organizational goals by leveraging information technology, systems, and processes. It involves managing and coordinating multiple projects and resources to achieve a broader outcome, such as rolling out a global SAP S/4HANA template over multiple regions and business units to establish a common ERP platform across your entire organization.

On the other hand, an IS project is a temporary endeavor with a defined scope, timeline, and budget, aimed at delivering a specific outcome or product. It focuses on implementing a specific solution to meet a particular business need or goal within the constraints of time, cost, and resources, such as implementing SAP S/4HANA or to innovate using S/4HANA and SAP technology.

SAP Program and Project Governance Chart

In summary, an IS program focuses on long-term, strategic, often organization-wide objectives, while an IS project is a more tactical approach that delivers specific and often narrower outcomes within a limited timeframe. Now that we have defined and discussed the differences between the two, we’ll shift focus in the next post to outline the key elements that go into successful governance, namely the structured framework and set of processes that govern the planning, execution, and monitoring of multiple projects under one program. 

Reach out on LinkedIn or send an email if you have questions you’d like us to address. Our experts would love to help you elevate your program governance and project management to the next level. Stay tuned to our blog for more insights and best practices throughout the month.

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Here are links to all 4 blog posts in this governance series: Part I: Understanding Programs vs. Projects  |  Part II: Defining Rules, Procedures, and Policies  |  Part III: Defining Committees, Bodies, and Structures  |  Part IV: Decision-making Rights and Tools