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Copyright © 2012–2024 PM World Inc. – All rights reserved · ISSN 2330-4480
Corporate Governance
for Project Professionals
COMMENTARY
By Taka Sande
South Africa
Introduction
In the modern business landscape, effective corporate governance is vital for ensuring the sustainable success of organizations. Corporate governance refers to the system of principles, policies, and processes that guide and control a company’s operations, decision-making, and accountability. While corporate governance is often associated with the overall management of a company, its significance extends to project professionals who play a critical role in executing strategic initiatives. This article explores the importance of corporate governance for project professionals and highlights key principles and practices that can enhance their effectiveness.
I. The Role of Project Professionals in Corporate Governance
Project professionals are responsible for driving organizational growth, executing projects, and delivering desired outcomes. They oversee the planning, implementation, and control of projects, making decisions that impact the company’s strategic direction, financial health, and stakeholder relations. Consequently, project professionals are integral to corporate governance as they translate the organization’s vision into actionable projects and ensure alignment with its objectives.
II. Definitions
What is Project Governance?
Project governance is defined as ‘the management framework within which project decisions are made.’ The Project Management Institute (PMI) define project governance is the framework, functions and processes that guide activities in projects, program and portfolio management. It is about:
What is Corporate Governance?
Corporate Governance is generally defined as ‘the system by which a company (or organisation) is directed and controlled.’ However, the King IV Report on Corporate Governance define Corporate Governance as “the exercise of ethical and effective leadership by the governing body towards the achievement of the following governance outcomes: ethical culture, good performance, effective control and legitimacy.”
III. Principles of Corporate Governance for Project Professionals
a. Accountability: Project professionals must be accountable for their actions, decisions, and project outcomes. They should establish clear lines of responsibility, communicate project progress transparently, and address any deviations promptly. Accountability promotes trust among stakeholders and facilitates effective decision-making.
b. Transparency: Transparency is crucial for project professionals to foster trust and credibility. They should ensure open and honest communication with stakeholders, share project information, risks, and challenges, and provide regular updates on progress and milestones. Transparency promotes collaboration, reduces uncertainty, and helps manage expectations.
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Editor’s note: This article is based on a presentation by the author at the 2022 Project Management South African (PMSA) Annual Conference in November 2022. Article coordinated by PMSA, who approved its publication in the PMWJ.
How to cite this article: Sande, T. (2023). Corporate Governance for Project Professionals, commentary, PM World Journal, Vol. XII, Issue VII, July. Available online at https://pmworldlibrary.net/wp-content/uploads/2023/07/pmwj131-Jul2023-Sande-corporate-governance-for-project-professionals.pdf
About the Author
Taka Sande, PMP®, Cert.Dir®
South Africa
Taka Sande, MBA, BSc Hons Civil Eng, is a Project Management Profession® (PMP®) and Certified Director® by the Institute of Directors South Africa (IoDSA) with over 23 leadership experience in executive management and corporate governance. He offers advisory services to private sector organizations, state owned enterprises and government departments, locally and internationally.
He is the Managing Director of Fasford Group. He currently serves on several corporate boards as a non-executive director, as an advisor or committee member. The organizations that he serves range from private companies, state owned companies and non-profit organizations.
Taka is a speaker, mentor, trainer and consultant on corporate governance, board development, director training, board development, King IV Report, ISO37000, strategy, ethics and business transformation, providing services to boards of mid to large sized organizations, public and private, including start-ups, family businesses, and NPOs. He has corporate governance consulting experience with companies in Southern Africa, United States, Canada and the Middle East region.
He can be contacted at taka@fasford.com
Personal Website: www.takasande.com
LinkedIn: @TakaSande
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