Principle 4: Ensure separation of project governance and organisational governance structures

Project governance structures are established precisely because it is recognised that organisation structures do not provide the necessary framework to deliver a project. Projects require flexibility and speed of decision making and the hierarchical mechanisms associated with organisation charts do not enable this. Project governance structures overcome this by drawing the key decision makers out of the organisation structure and placing them in a forum thereby avoiding the serial decision making process associated with hierarchies.

Consequently, the project governance framework established for a project should remain separate from the organisation structure. It is recognised that the organisation has valid requirements in terms of reporting and stakeholder involvement. However dedicated reporting mechanisms established by the project can address the former and the project governance framework must itself address the latter. What should be avoided is the situation where the decisions of the steering committee or project board are required to be ratified by one or more persons in the organisation outside of that project decision making forum. This is the final principle of effective project governance.

Adoption of this principle will minimise multi layered decision making and the time delays and inefficiencies associated with it. It will ensure a project decision making body empowered to make decisions in a timely manner.^[2]