You can’t take your eyes off a train wreck; this was the case with a high profile technology ’provider infamous failed ERP project, which cost $160 million (more than five times the project’s originally estimated cost) when the dust settled. Gilles Bouchard, then-CIO of HP’s global operations, said, “We had a series of small problems, none of which individually would have been too much to handle. But together they created the perfect storm.” “Small problems” can plague any project; a sound project governance structure can help keep them from becoming that perfect multi-million dollar storm.

With this company specifically, issues like failure to work across silos, insufficient contingency planning, failure to transfer data from legacy systems to new software, poor planning, and inadequate support and training led to the much publicized failure. While many factors played into the project’s demise, these problems can largely be avoided with an appropriate governance structure.

Your project governance structure is a framework designed to make sure your project is executed in accordance with the standards of your organization. Who does what? When? How? Why? Do actions align with corporate principles and goals? The governance structure is like the foundation and framing of a house. It needs to be strong from the outset of a project to ensure a stable end-product or end-state.

The PMO COE (Centre of Excellence) approach helps you implement a sound structure, whose benefits extend to:

• Creating accountability.
• Providing a structure for completing day-to-day operations outside the project walls.
• Creating a decision-making framework.
• Mentoring project management and team.
• Giving team members ownership for the project, as well as accountability.
• Ensuring projects and deliverables are aligned with the organization’s goals.
• Creating greater transparency and participation for stakeholders.
• Working across silos.
• Aligning corporate goals with project initiatives.
• Meeting the needs of specific projects; each structure is created according to the size and complexity of the project.

Instead of creating an environment where procedures do not exist or are not followed or are followed without thought, implementing a governance structure with the COE approach allows flexibility and individual ownership and accountability.

At its core, a project governance structure is a decision-making framework; through PMO COE implementation, you are able to create a situation in which resources are used optimally, best practices are followed, and projects are aligned with the overall objectives and goals of the organization. Not only can this structure keep the perfect storm from forming, it can help minimize other inclement weather while taking advantage of the sun.