Governance in project management (Governance of Project Management, GoPM) is the binding framework of direction and control within an organization for projects, programs, and portfolios. It defines structures, roles, and responsibilities, along with decision-making and escalation paths, rules, processes, and controls that ensure initiatives are managed consistently, transparently, and in alignment with strategic objectives—clearly separated from day-to-day project management. The term compliance is commonly used in English to describe the control aspect.
The term governance originates from corporate governance, which focuses on responsible corporate leadership and oversight. Applied to project management, governance describes the principles, structures, and mechanisms that ensure projects are conducted responsibly and remain aligned with organizational strategy and objectives.
Related governance domains include IT governance, data governance, and ESG governance. These areas are interdependent and should remain consistent to avoid contradictory decision-making structures and ensure organizational coherence.
While governance can be translated as “leadership” or “direction,” it is widely used in its English form—even in German-speaking contexts. Likewise, project governance is a common term in practice. It refers to the rule set for a single project, rather than for an organization’s entire project landscape.
For enterprise-wide governance, the terms Governance of Project Management (GoPM) or Enterprise Project Governance (EPG) are used. Both emphasize the mandatory nature of the framework governing all projects, programs, and portfolios across the organization, ensuring alignment with corporate strategy and goals.
Project management frameworks such as PMBOK Guide, PRINCE2, PMI, APM Body of Knowledge, and ISO 21505 define governance in similar ways. All clearly distinguish it from project management, the operational execution of projects, and assign responsibility for governance to higher decision-making levels such as the board of directors, executive management, PMO, steering committees, or other oversight bodies.
At its core, governance in project management establishes key principles regarding:
A widely cited description comes from Paul C. Dinsmore and Luiz Rocha, who introduced the term Enterprise Project Governance (EPG) in their book Enterprise Project Governance: A Guide to the Successful Management of Projects Across the Organization:
“Project governance initiated under the umbrella of corporate governance. It [EPG] is about ensuring that projects succeed by establishing a well-defined approach that all parties understand and agree on, that the approach is followed throughout the life cycle of portfolios, programs, and projects, and that progress is measured and actions are proactively taken to confirm that everything stays on track and that the agreed-on benefits, products, or services are delivered.”
In simple terms, the following hierarchy applies:
The purpose of governance is twofold: to ensure that defined guidelines lead to improved project outcomes—and, in turn, to the achievement of business objectives; and to strengthen executive-level awareness of project management by establishing transparency around responsibilities, risks, and decision-making.
A key benefit lies in the comparability and traceability of projects, as well as in the early detection of deviations. Governance enhances decision quality, mitigates risks, and enables objective portfolio assessment.
To avoid excessive bureaucracy, organizations often adopt a Minimum Viable Governance (MVG) approach—a lean yet effective governance framework with clear accountabilities and minimal administrative overhead.
A distinction is made between those accountable for governance and those responsible for its operational implementation.
The maturity of the organization’s project management practices and its industry context influence the design of governance structures. Highly regulated industries—such as medical technology, pharmaceuticals, or food production—are subject to extensive compliance requirements that directly shape governance processes and methods.
RACI stands for Responsible, Accountable, Consulted, and Informed.
In the context of Enterprise Project Governance, the following role allocation may apply:
| Role | Responsible | Accountable | Consulted | Informed |
| Supervisory Board | X | |||
| Board of Directors | X | |||
| Executive Management | X | |||
| PMO | X | |||
| C-Level | X | |||
| Legal Department | X | |||
| Project Management/Product Owner/Business Unit | X | |||
| Project Teams | X | |||
| Stakeholders | X |
This distribution illustrates why governance responsibility extends beyond the PMO. Because governance principles must align with corporate strategy and objectives, active involvement from executive management, the board, and the supervisory body is essential.
Governance is implemented through policies, processes, and supporting systems. Common instruments include:
An effective governance system combines formal structures with a lived culture of responsibility and openness.
Governance remains essential in agile environments. Agile governance establishes guiding principles without constraining team autonomy. Its goal is orientation rather than control. Approaches such as Governance by Principles or Lean Governance replace rigid rules with shared values and clearly defined accountabilities.
In hybrid organizations, companies integrate traditional governance structures with agile management models. Decision-making, risk management, and compliance remain structured, while operational flexibility and innovation are deliberately fostered.
Governance in project management ensures that projects are conducted effectively, responsibly, and in alignment with strategic goals. It establishes clarity, accountability, and transparency across the organization without restricting flexibility in execution.
Good governance is not an end in itself—it is a key success factor for sustainable project and organizational performance.