MGMT7020 Chap.2 Project Lifecycle and Governance Roles
Project Lifecycle and Governance Roles
A lifecycle with four stages
This chapter follows Zwikael and Meredith's lifecycle of initiation, planning, execution and benefits realisation, each with two key processes.
The fourth stage matters because outputs that nobody uses deliver no benefits.
Ten roles, two entities
The chapter then sets out their ten core roles, five in the funding entity and five in the performing entity, and explains through agency theory why accountability for benefits belongs with a project owner rather than the project manager.
A worked example maps real job titles onto those roles.
Why the roles matter for assessment
Governance questions are a staple of the weekly quiz and of the project management conversation. They are rarely about definitions alone: you are usually given an organisation, a set of job titles and a problem, and asked who should act.
The ten-role model gives you a precise vocabulary, and agency theory gives you the reason behind each assignment of accountability.
What this chapter covers
- 01
Initiation, planning, execution and benefits realisation
- 02
The eight key processes of a project
- 03
Funding entity and performing entity
- 04
The ten core project roles and their criteria
- 05
Sponsor, champion and owner confusion
- 06
Principal and agent in project governance
- 07
Drafting a RACI matrix
Worked example · free
Separate the sponsor from the owner in a council project
- 1The general manager approves the funding, so she is the funder in the funding entity, whatever the release calls her.
- 1The contractor's regional director gives political support to the delivery team, so he is the sponsor in the performing entity.
- 2Fewer missed collections is a benefit, so it needs a project owner in the council, for example the waste services manager, accountable to the funder.
- 1The contractor's project manager answers to that owner for delivering the app to plan, not for the benefit.
Key terms
- Funder
- The senior executive who commits funds or approves the resources for a project.
- Champion
- The person who leads the business case and usually presents it to the funder.
- Sponsor
- A senior manager in the performing entity who gives political support to the project manager and team.
- Steering Committee
- A strategic body, usually chaired by the project owner, that oversees progress and business case realisation.
- Agency Problem
- The gap that arises when an agent with better information pursues interests that differ from the principal's.
Project Lifecycle and Governance Roles FAQ
What are the four stages of a project in this course?
Initiation, planning, execution and benefits realisation. Each stage has two key processes, from developing and approving the business case to output utilisation and project closeout, and the last stage exists because unused outputs produce no benefits.
Why is sponsor such a confusing title?
Different sources use it for two jobs: a senior executive in the delivering organisation who supports the team, and the financial backer in the paying organisation. The ten-role model keeps sponsor for the first and calls the second the funder.
Why not make the project manager accountable for benefits?
Managers usually join after approval, hold a temporary position, focus on outputs and may not share the funder's objectives. A project owner inside the funding organisation is better placed to answer for the business case over the long term.
Is the project owner the same as the project manager?
No. The project owner sits in the funding organisation and answers to the funder for the business case and its benefits. The project manager sits in the performing organisation and answers to the owner for delivering the outputs according to the approved plan.
What is a RACI matrix used for?
It records, for each major activity, who is responsible for doing the work, who is accountable for the result, who is consulted and who is informed. The Week 2 seminar uses one to draft a governance structure for an infrastructure project.
Can one person hold several project roles?
Yes, especially in small internal projects, where one manager might be champion, sponsor and owner at once. Zwikael and Meredith accept this, but the accountabilities still differ, so it helps to state which role the person is acting in when a decision is made.
Exam move
Draw the two entities from memory and place all ten roles with their performance criteria. Then take one project you know and map every job title onto a role, marking where one person holds several roles. Finish by explaining aloud, in under a minute, why benefits accountability should not sit with the project manager.
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