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Executive Corner - The Project Steering Process

by Paula K. Martin, CEO, Martin Training Associates


Much of the focus today seems to be on training project managers and project teams on how to employ a standard project management methodology. Don't get me wrong. Implementing a standard methodology is one of the 7 keys to creating successful projects across an organization. But, it's important to remember that there are six other keys to success, all of which require management attention. One of these keys is establishing an effective project steering process. Without such a process:
  1. Project priorities tend to get set by the bottleneck resource since there is no overall prioritization of projects.
  2. Projects get initiated on a whim.
  3. Projects are not clearly tied to the strategic plan.
  4. Resources are over-committed which means cycle times for projects (time to market) are long.
  5. Functional managers are not aligned with project goals.
A project steering process should be managed by one or more project steering councils, composed of members of the management team. After the steering councils are formed, a project steering process must be implemented. A generic project steering process has four phases:
Phase One - Selection. Project proposals are reviewed based on preliminary selection criteria. Resources may be allocated for further study of the costs or benefits of a project. If a project is selected, the project is initiated and then planned.

Phase Two - Funding. After the planning data are available, the projects in the portfolio are prioritized using prioritization criteria. Resources are then allocated to projects, starting with priority number 1 and working down the list until no more resources are available for projects. Those projects that are funded proceed with the execution phase of their project management process.

Phase Three - Oversight. The status of ongoing projects is reviewed to ensure the projects are on track. Change requests are approved or denied. A portfolio status report is issued.

Phase Four - Improvement. Final project results are reviewed and recommendations for improving the project system are submitted to the project system owner.
A critical component of the project steering process is phase two - funding. All too often there is no overall prioritization process in which all cross-functional and functional projects are prioritized against each other. Another common deficiency is not having a resource allocation process in which only available capacity is allocated to projects. Over-committing resources to projects results in:
  • Longer project cycle times
  • More rework
  • Staff turnover from increased stress
If we managed human capacity with just half the effort we put into managing machine capacity, time to market would be significantly reduced in most organizations.

Successful projects result from commitment and action on the part of the management team. The project system should be designed to ensure success, not neglected so that only heroes can bring in projects on time and within budget. A cornerstone of a successful project portfolio is creating a workable project steering process. The steps for creating one are outlined in our new book, Executive Guide: The 7 Keys to Success. The steps for implementing the other six keys are detailed as well. And, if you need more help, ask about our workshops and consulting services that will help you move down that project success highway.

©2003 Paula Martin. All Rights Reserved. Published on ProjectConnections by permission of the author.

Paula Martin is the CEO of Martin Training Associates, a management training and consulting firm. She's the author of seven books including the Project Management Memory Jogger™ and Executive Guide: The 7 Keys to Success. For more information, visit their website: www.martintraining.net. Phone: 866-922-3122.


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