Impact of Project Governance on Benefits Realization Management and Project Success: Towards a Framework for Supporting Organizational Strategy

Abstract

This thesis aims to shed light on two fields of project management that are rapidly gaining importance: the first is project governance and the second is the emerging concept of Benefits Realization Management (BRM). Both concepts are at the forefront of the fairly recent drive to revisit and re-conceptualize the theory and practice of project management, as evidenced by comprehensive initiatives such as Rethinking Project Management. A key recommendation of said initiative is to shift focus from product creation to value creation. This is fueled by the increasingly large body of evidence that the majority of projects fail to meet success criteria. Adding to the urgency is the increasing pressure from business managers for projects to justify their value contribution to the organization. In this context, project governance and BRM are vital for ensuring that projects deliver expected business benefits and value. In doing so, these concepts help align project outcomes with organizational strategy.

This study aims to address an important gap in the literature: the relationships between project governance and BRM, and their effects on project success. These relationships were based on 326 responses from Pakistan’s burgeoning IT & Software sector, which is increasingly becoming vital for the country’s future economic growth as Pakistan transitions from an industrial to service-based economy. The findings of this study indicate that the aspects of project governance included in this study have a positive significant effect on both BRM and Project Success. Also, it is found that BRM mediates the relationship between two aspects of project governance, namely Relational Governance and Governance of Project Management (GoPM), and Project Success. The results supports the overall proposition of this study that strong project governance creates the context in which effective BRM can occur.

For the theory of project management, specifically project governance and BRM, this study hopes to contribute much needed empirical evidence to the literature and responds to recent calls for research on BRM. Additionally, this study attempts to adapt a scale for the GoPM concept, which fills an important gap in the existing operationalizations of different aspects of project governance and may prove useful for future academic studies.

For the practice of project management, this study hopes to initiate a discussion on how project governance and BRM may be integrated to support the achievement of organizational strategic objectives through projects and programs. Furthermore, this research aims to assess the current levels of, and create awareness of the developments in, project governance and BRM in Pakistan. This should help organizations to not only improve the success rates of their projects but also to extract business value from projects.