The fact that a steering group is on the agenda does not automatically mean that the programme’s governance is functioning effectively. If every issue is passed up to a higher level, decision-making slows down. If the steering group mainly receives status updates but is rarely asked to make a decision, it becomes an additional layer of reporting.
The value lies in bringing together the people whose expertise, responsibility or mandate is actually required, which becomes even more important when a programme cuts across the organisation.
A milestone may depend on the capacity of another department. The programme team can identify the problem, understand its impact and propose solutions. But to resolve it, it may be necessary for HR to adjust priorities, for finance to release additional budget, or for a manager to accept a strategic trade-off.
The problem has not necessarily become more difficult. It simply falls outside the programme team’s remit.
Without a clear governance structure, valuable time can be wasted discussing an issue at a level where nobody can actually resolve it.
Thinking about the governance structure in advance does not mean that you have to predict every decision the programme will face. It means ensuring there is sufficient clarity regarding the types of decisions that may arise, who has the authority to make them, and how an issue is escalated to a higher level when that authority is exceeded.
“Proper governance is not just about decision-making, but also about providing the right stakeholders with accurate information, including on potential risks. If you do this in a structured manner and at fixed intervals, the significance of rumours circulating in the corridors diminishes”.
Let me give you an example:
A suspicious sponsor, who wanted full control over the narrative to be presented to other C-level stakeholders in the steering group, did not wish to organise steering group meetings.
Processes within the programme’s scope overlapped with processes in other departments. A key risk was the aversion to change in those other departments. As there was no formal forum for discussing this with executive stakeholders, this risk was not reported transparently.
When the relevant heads of department used their informal network within the organisation to block the programme’s achievements, the senior managers concerned had no formal programme communication to fall back on. They were therefore much more susceptible to the one-sided narrative that reached them via the informal network.
Providing a formal forum to identify and discuss risks before they occur and trigger various emotions ensures better risk mitigation and prevents a programme from lurching from one ad hoc crisis to the next. Proper governance ensures such a formal forum exists at various levels within the organisation.