Post 3/4: Steering Committees – Governance and Strategic Oversight

Post 3: Steering Committees – Governance and Strategic Oversight

This is the third post in a series exploring the interconnected roles of projects, programmes, and steering committees. If you missed the first two posts, we covered the fundamentals of project management and the role of programme management in aligning projects with strategic goals. In this post, we’ll focus on the crucial role of steering committees in overseeing and guiding projects and programmes.

In any organization, steering committees are pivotal to ensuring that projects and programmes align with broader strategic objectives. These committees provide the necessary governance and decision-making oversight, ensuring that projects are moving in the right direction, risks are managed, and stakeholders are engaged effectively.

A well-structured steering committee ensures that all projects under its purview are not only on track but are delivering the expected value to the organization. Let’s dive into the role of steering committees, their composition, responsibilities, and best practices for ensuring they provide effective governance.

What is a Steering Committee?

A steering committee is a group of senior executives or stakeholders who oversee and guide the strategic direction of projects or programmes within an organization. They provide the governance structure needed to ensure that projects align with organizational goals and that issues or risks are addressed in a timely manner.

Steering committees typically do not manage day-to-day project tasks, but they are responsible for ensuring the right resources are allocated, project priorities are aligned with business objectives, and key decisions are made to keep the programme moving forward.

Key Responsibilities of Steering Committees

A steering committee plays several crucial roles in ensuring the success of projects and programmes:

1. Providing Strategic Direction:
Steering committees are responsible for setting and reviewing the strategic objectives of the projects or programmes they oversee. They ensure that the projects align with the organization’s broader goals and adjust priorities when necessary. This alignment ensures that the investment in projects is directed toward achieving business outcomes.

2. Decision-Making and Approvals:
The committee approves major decisions regarding project scope, timelines, and budgets. This could include approving project plans, changes in direction, or the reallocation of resources to meet evolving priorities. Their decision-making ensures that projects remain focused on their objectives and are not derailed by unexpected challenges.

3. Risk Oversight:
Steering committees play a critical role in monitoring and mitigating risks at the programme level. They review the project risk registers, track the status of key risks, and ensure appropriate actions are taken to address them. By providing a high-level view of the programme’s risk landscape, they help ensure that risks are identified early and that mitigation strategies are in place.

4. Performance Monitoring and Reporting:
The steering committee is responsible for monitoring the performance of projects and programmes. They review regular progress reports, key performance indicators (KPIs), and status updates. This ensures that projects are on track to meet their goals and provides the committee with the information necessary to make informed decisions about priorities and next steps.

5. Stakeholder Management:
Steering committees often serve as the primary interface between project teams and external stakeholders. This includes engaging with senior leaders, external partners, or customers who have a vested interest in the project’s success. Steering committees ensure that stakeholder expectations are managed and that the project aligns with their needs.

Composition of a Steering Committee

The effectiveness of a steering committee is often determined by its composition. A strong, diverse committee brings together individuals with varied expertise, ensuring that all aspects of the programme are adequately addressed.

Senior Executives: The committee typically includes senior leaders from key functions such as finance, operations, IT, and strategy. These individuals are responsible for providing strategic direction and ensuring alignment with business goals.

Project or Programme Managers: Although steering committees typically don’t manage day-to-day tasks, they rely on the expertise of project or programme managers to provide updates, highlight issues, and offer insights into project progress.

Subject Matter Experts: Depending on the nature of the programme, the committee may also include subject matter experts (SMEs) who can provide specific knowledge about the areas in which the projects operate. These could be technical experts, business analysts, or regulatory specialists.

Stakeholder Representatives: In some cases, external stakeholders or client representatives may be included to ensure their interests are represented at the decision-making table.

Best Practices for Steering Committees

For a steering committee to be effective, it’s important to follow certain best practices that ensure governance is strong and strategic objectives are achieved:

1. Clear Governance Structure:
Establish clear roles and responsibilities within the committee. Define how decisions will be made, the frequency of meetings, and the process for escalating issues. This structure helps the committee function smoothly and efficiently.

2. Regular and Structured Meetings:
Hold regular, structured meetings with clear agendas. These meetings should focus on high-level strategic discussions, with a focus on reviewing progress, addressing risks, and making decisions. Steering committee members should receive timely reports prior to meetings to ensure they are well-informed.

3. Focus on Strategic Issues, Not Operational Details:
Steering committees should concentrate on strategic oversight, not the operational details of project execution. Their role is to ensure that projects are aligned with business goals and that risks are managed. It’s essential for project managers to provide concise, high-level updates to facilitate focused decision-making.

4. Use Dashboards and Reporting Tools:
Implement dashboards or status reports to give the committee a clear, visual summary of project performance. These tools should include key metrics such as project health (RAG status), budget adherence, milestones achieved, and risk levels. Clear, at-a-glance reports enable the committee to make quick, informed decisions.

5. Effective Communication with Stakeholders:
Ensure that the committee communicates regularly with key stakeholders to maintain alignment and manage expectations. This communication should be transparent and proactive, addressing issues early to prevent misunderstandings or delays.

6. Escalation Process:
Establish a clear escalation process for project risks or issues that require steering committee attention. This ensures that problems are addressed in a timely manner and prevents them from escalating into major roadblocks.

Conclusion

Steering committees are the backbone of governance and strategic oversight in projects and programmes. They ensure that projects align with organizational goals, make critical decisions, manage risks, and maintain stakeholder engagement. A well-functioning steering committee provides the strategic direction necessary to drive successful outcomes.

In the next post in the series, we will look at how projects, programmes, and steering committees come together to form a cohesive, efficient management structure. We’ll discuss how to integrate these elements for maximum impact, ensuring your projects and programmes are not only successful but also aligned with your organization’s long-term strategy.

Stay tuned for the next post in the series on integrating projects, programmes, and steering committees!

Summary Tips for Steering Committees:

1. Define Clear Governance: Establish roles, responsibilities, and decision-making processes.
2. Keep Focus on Strategy: Steering committees should focus on high-level strategic direction, not day-to-day operations.
3. Regular and Structured Meetings: Hold frequent meetings with clear agendas and actionable outcomes.
4. Use Dashboards for Reporting: Provide clear, visual summaries of project performance and risk.
5. Maintain Effective Communication: Ensure proactive and transparent communication with stakeholders.

This post wraps up the crucial role of steering committees in providing governance and oversight. In the next post, we will explore how to integrate projects, programmes, and steering committees effectively to ensure alignment and success across your organization.

About the Author:

My name is Tim Rogers. I am a coach, consultant, and change manager. My experience includes the corporatization of harbors and airports in a business capacity. In a sporting context, I’m a former Commonwealth Games triathlete and a four-time GB gold medalist (Coastal Rowing). I’m a rowing coach but also help people as a business and life coach. My immediate focus at the moment is on delivering technology solutions for a wealth management firm and, for another client, addressing the Health Protection needs for an Island Community. My more generalized interest is in helping people and organizations with change, with a real focus on the practical aspects of getting things done and achieving goals.