Governance is the fifth domain in program management. It represents 14% of the 170 questions, or 24 questions, on the PgMP® exam. Governance transcends program management from the beginning of the program when it is first approved to be part of the portfolio to the closure of the program.
In program management, there can be several types of governance structures—one used for program approval, one used to oversee the program at the stage gates and for periodic reviews of program progress, and one used by the program manager to oversee the projects in the program. These Governance Boards, often called Steering Committ4es, Oversight Groups, or Boards of Directors, each require a defined structure to promote efficiency and consistency among programs and their respective projects. In smaller organizations, a senior executive often performs these functions. A program governance plan is a best practice to describe policies, procedures, and standards that the Governance Board will follow and how the stage-gate reviews will be conducted, including the requirements for each one.
An issue escalation process also is a best practice as the program manager may wish to escalate risks and issues to the Governance Board for resolution, and project managers may wish to do the same to the program manager.
Key performance indicators (KPIs) are useful to measure program success and to help monitor benefits throughout the life cycle. They may include items such as risks, financials, compliance, quality, safety, and stakeholder satisfaction. The program management information system is used to help facilitate tracking these KPIs. A best practice to follow is to regularly evaluate new and existing risks that impact strategic objectives and update the risk management plan as required, presenting it to the Governance Board for approval. Also, the business environment should be monitored in order to ensure the program remains in alignment with the organization’s strategic objectives.
Further, emphasis is placed on contributing to an information or knowledge repository with program-related lessons learned, processes, and documentation to support organizational best practices. These lessons learned then are identified and applied to support and influence the existing program and future programs or improvements in the organization.
Note that in the Examination Content Outline, this domain is referred to as Governance, while in the Standard for Program Management—Third Edition (2013), it is titled Program Governance.
Following is a list of major topics covered In this domain. Use this list to focus your study efforts on the areas that may appear on the exam.
Governance Importance
Program Governance Boards
Program Governance Board Responsibilities
Establishing a program governance plan
Program Governance and Program Management
Individual Governance Roles
Governance of Components
Other Governance activities
1. | a | b | c | d |
2. | a | b | c | d |
3. | a | b | c | d |
4. | a | b | c | d |
5. | a | b | c | d |
6. | a | b | c | d |
7. | a | b | c | d |
8. | a | b | c | d |
9. | a | b | c | d |
10. | a | b | c | d |
11. | a | b | c | d |
12. | a | b | c | d |
13. | a | b | c | d |
14. | a | b | c | d |
15. | a | b | c | d |
16. | a | b | c | d |
17. | a | b | c | d |
18. | a | b | c | d |
19. | a | b | c | d |
20. | a | b | c | d |
1. c. | A program governance model In the context of a program or a portfolio, there are five main functions of governance: facilitate decision making, provide program teams with leadership and direction, exercise program/project control, ensure consistency, and provide support for issue resolution. It is used to promote efficiency and consistency on programs. PMI®. Program Management Professional (PgMP)® Examination Content Outline, 2011, 15 Williams, David and Parr, Tim. 2006. Enterprise Program Management Delivering Value. Hampshire, England: Palgrave MacMillan, 61 |
2. c. | Governance plan The governance plan describes the goals, structure, roles and responsibilities, and logistics for the governance process. PMI®, The Standard for Program Management, 2013, 55 |
3. a. | PMO As part of its oversight, the PMO provides support for the organization’s programs, including its governance function. It often is tasked with providing centralized and consistent program management expertise. PMI®, The Standard for Program Management, 2013, 64 |
4. c. | Delivering benefits according to the benefit realization plan A phase-gate review is an objective assessment against the exit criteria of each phase to determine whether the program should proceed to the next phase. These reviews also assess the program in terms of achieving goals at the time of the review and to ensure benefits are being delivered as stated in the benefit realization plan. PMI®, The Standard for Program Management, 2013, 56 |
5. d. | Providing support when changes are needed in the program’s approach One responsibility of the program Governance Board is to monitor program progress and the need for change. The Governance Board establishes thresholds for changes the program manager can make on his or her own and working with the program manager provides support when changes need to be made in the program’s planned approach or activities. PMI®, The Standard for Program Management, 2013, 58 |
6. d. | Terminate the program This situation is an example in which the Governance Board would terminate the program because of changes in the environment eliminated the need for the program to continue. PMI®, The Standard for Program Management, 2013, 62 |
7. c. | Approach to pursue goals The Governance Board approves the overall approach by which individual programs pursue their goals. In this situation, these changes mean the approved approach needs revision and approval by the Governance Board. PMI®, The Standard for Program Management, 2013, 57 |
8. c. | Program charter The last phase in the program life cycle is Program Closure. To determine whether to recommend closure, the Governance Board may confirm that it is warranted based possibly on review of the program charter. PMI®, The Standard for Program Management, 2013, 61 |
9. b. | Confirm stakeholder satisfaction with current performance The Governance Board can review programs at various decision points and can be held to request updates of program progress. These reviews are held for various reasons and to discuss a variety of items including stakeholder satisfaction with current program performance. PMI®, The Standard for Program Management, 2013, 59–60 |
10. a. | Request approval to initiate another project into the program Reviews by the program’s Governance Board are an opportunity for senior management to assess program performance before the program moves to the next phase or before another project is initiated in the program. The criteria for approval are defined in the governance plan. PMI®, The Standard for Program Management, 2013, 60–61 |
11. d. | You, the program manager Program managers are the first escalation point for issues, changes, risks, interfaces, and dependencies from component managers and teams. PMI®, The Standard for Program Management, 2013, 56 |
12. a. | Approves the business case By approving the business case, the Governance Board confirms the projection of the value the program is to deliver and justifies the resources required to do so. PMI®, The Standard for Program Management, 2013, 54 |
13. a. | Program charter The primary output of Program Initiation is the program charter. Among other things, it includes the recommended governance structure to manage, control, and support the program as well as the governance structure for the program’s components. PMI®, The Standard for Program Management, 2013, 85 |
14. c. | A measure of program quality While audits can be time consuming, they often are valuable measures of program quality and assist the program manager and team to avoid the need for later corrective actions. PMI®, The Standard for Program Management, 2013, 65 |
15. b. | Held at the key go/no-go decision points of your program Planned phase-gate reviews are described in the program governance plan. They enable the Governance Board to approve the program to pass from one significant phase to the next phase. PMI®, The Standard for Program Management, 2013, 56 |
16. a. | Ensuring goals are aligned with the strategic vision Program governance supports program success in numerous ways, one of which is to ensure the program’s goals remain aligned with the strategic vision, operational capabilities, and resource commitments of the sponsoring organization. PMI®, The Standard for Program Management, 2013, 51 |
17. b. | Assess progress toward benefit realization and sustainment Periodic health checks are held between phase gate reviews and enable the Governance Board to assess ongoing performance and progress toward benefit realization and sustainment. PMI®, The Standard for Program Management, 2013, 56 |
18. a. | A summary of the program’s goals This section of the governance plan lists the program’s goals and those of each of its components and the planned delivery of benefits. The section then describes how the goals will be monitored and measured by the Governance Board. PMI®, The Standard for Program Management, 2013, 55 |
19. c. | Working collaboratively with the program manager to provide support for needed changes The Governance Boars is uniquely positioned to monitor the progress of the program and the need for change. By working collaboratively with the program manager, the Governance Board can provide support when changes are needed in the programs’ planned approach. PMI®, The Standard for Program Management, 2013, 58 |
20. b. | Use the governance decision register Decisions of the Governance Board should be formally documented because these decisions are critical feedback used to improve the results of the components and the program. PMI®, The Standard for Program Management, 2013, 59 |
18.118.20.231