Project Approval Review Boards (PARBs)
Project Managers often get blamed for projects that run off the rails, but is it always their fault?
In my experience, many projects are doomed to fail before a Project Manager is even assigned to the job. Sales Teams put together proposals for Customers, and if they are accepted, bells are rung, and a few celebratory drinks might be had. Often, the Sales team then walks away.
Something similar often happens with internal projects. The Team that’s been struggling with inadequate internal systems might think all their Christmases have come, and it’s time to relax whilst the Project Manager delivers a utopian solution. The cost-benefit analysis put together by the Unit Manager explains how much better off the business will be after their pet project is implemented.
When Customer project proposals are sent out by the Sales Team, the Finance Department runs its eyes over it. After all, it’s not hard to add up the cost of all the components. Who worries about what happens if that critical component isn’t available when needed? What happens if the latest version of a bit of software won’t talk to other software? Suppose the only person in the company capable of training people to operate the new machine crashes their hang glider and won’t be back at work for months.
These sorts of things, and much worse, happen daily on all types of projects, from technology upgrades to new product releases and mining and manufacturing jobs to corporate restructures. It’s not what happens that counts; how you deal with what happens matters. In many cases, this is left for the poor old project manager to deal with because no upfront risk assessment or contingency planning was conducted. That is where Project Approval Review Boards or PARBs come in. PARBs are governance mechanisms used to review and when appropriate, approve projects before they commence. They should consider financial, technical and strategic risks. They should be structured to ensure the alignment of projects with an organisation’s strategic goals, resource constraints, and risk management appetite and practices. When necessary, PARBs can be used throughout the life of a project to ensure it stays on track in terms of the major considerations for any project, which are to ensure it is delivered ON TIME, ON BUDGET and ON SCOPE.
PARBs don’t always need to be set up in exactly the same way within an organisation. It is often useful to set them up to align with the delegation matrix of a business. If you would like any advice or assistance in setting up PARBs for your organisation, please get in touch by emailing service@ev4b.com.au