This week, Ricardo discusses decision-making processes in the context of projects, the "governance" component of the environmental, social, and governance (ESG) acronym.
He explains that knowledge of governance, the organizational framework used to oversee projects, is crucial for effective decision-making. This structure and processes are used to make decisions about approving changes and planning the next steps based on project findings.
Due to project size and complexity, not all projects require a large, bureaucratic setup to have an adequate level of governance.
If the project is small and uses an agile approach, the project board can be smaller and more straightforward, like the SDWT (self-direct work team).
On the other hand, a mega project may and probably will require a more intricate decision-making process because what is at risk involves significant investments and usually happen in regulated operations like infrastructure, power generation, and finance.
Regardless of the type and size of the project, the board needs to have the autonomy to make the decisions it considers best for the project. If the governance body can not control the project, even its existence becomes pointless.