IT Project Governance Structure for ERP Finance Systems
This paper presents a governance structure designed to oversee the entire System Development Life Cycle (SDLC) of an Enterprise Resource Planning (ERP) finance system within a domestically operating organization. Drawing on established frameworks and scholarly sources, it outlines the importance of project governance, describes the three pillars of governance (structure, people, and information), and details the roles and responsibilities at each of three governance levels: executive, program implementation, and ongoing operations. The paper emphasizes how clear accountability, transparency, and coordinated decision-making are essential to successful IT project delivery.
- Introduction: Defines project governance and paper scope
- Importance of Governance Structure for IT Projects: Explains why governance frameworks matter for projects
- The Three Pillars of Project Governance: Outlines structure, people, and information pillars
- The Governance Structure: Details executive, implementation, and operations levels
- Conclusion: Stresses PM coordination across governance levels
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What makes this paper effective
- The paper grounds its argument in cited scholarly and practitioner sources, lending credibility to each governance level it describes.
- It applies an abstract framework (the three pillars of governance) directly to a concrete scenario—a domestic ERP finance system—keeping the discussion focused and practical.
- The clear delineation of three governance levels (executive, program implementation, and ongoing operations) gives the paper a logical, easy-to-follow structure.
Key academic technique demonstrated
The paper demonstrates applied framework analysis: it introduces a theoretical model (the three pillars of project governance from Klakegg et al., 2008) and then operationalizes it by mapping the pillars onto a specific organizational context. This technique—moving from theory to application—is a core skill in IT management and project governance writing.
Structure breakdown
The paper opens with a definition of project governance and a statement of scope. It then builds the case for governance's importance before introducing the three-pillar framework. The bulk of the paper applies this framework to three governance levels, describing roles and responsibilities at each. A brief conclusion ties the levels together under the project manager's coordination role. The structure is top-down: concept → framework → application → synthesis.
Introduction
Project governance is an important component of every IT project implementation process. Project governance refers to the infrastructure and processes that an organization puts in place to steer its functions and ensure compliance. This paper presents an elaborate governance structure that will oversee the entire System Development Life Cycle (SDLC) process of an Enterprise Resource Planning (ERP) finance system throughout an organization that operates domestically. The governance structure examined here comprises three levels: executive, program implementation, and ongoing operations.
Importance of Governance Structure for IT Projects
Project governance is noted by BIS (2010) to be a management framework within which various project decisions are made. It forms a critical component of any project because the accountabilities and responsibilities associated with an organization's business activities are laid down in its organizational governance plans. For instance, organizational charts clearly indicate who in the organization is directly responsible for any given operational activity. Therefore, unless an organization has a clearly outlined project governance policy, no such chart can exist for the purpose of project development activity.
The role of the project governance component is to provide a clear, robust, logical, and repeatable decision-making framework for governing an organization's investments. In this manner, an organization adopts a highly structured approach to managing its business and everyday activities, thereby encouraging accountability and transparency.
The Three Pillars of Project Governance
According to Klakegg, Williams, Magnussen, and Glasspool (2008), the decision-making framework of any project governance initiative rests on three pillars: structure, people, and information.
Structure refers to the nature of the governance committee. Both a Project Steering Committee and a Project Board must exist. The broader governance environment must also include several stakeholder groups and user groups.
The effectiveness of any committee structure is largely dependent on the individuals who occupy the governance committee. Membership is determined both by the nature of the project and by other organizational factors.
Information is concerned with the data that informs decision makers. It is made up of regular reports, issues, and risks that the Project Manager escalates, as well as key documents that fully describe the project.
Conclusion
It is crucial that the three levels of governance — executive, program implementation, and ongoing operations — be coordinated by the project manager so that the project as a whole is a success.
References
Business Innovation and Skills. (2011). Guidelines for managing projects: How to organize, plan and control projects. Available at
Chatfield, C., & Johnson, T. (2007). A short course in project management. Available at http://office.microsoft.com/en-001/project-help/a-short-course-in-project-management-HA010235482.aspx
Crawford, L., et al. (2009). Governance and support in the sponsoring of projects and programs. Project Management Journal, 39(Supplement), S43–S55.
Crawford, L. H., & Cooke-Davies, T. J. (2005). Project governance: The pivotal role of the executive sponsor. Available at
Pratt, E. M. (2011). Applying a life cycle framework to implementing a governance model. PMI Virtual Library. Available at
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