Project sponsorship in turbulent times - critical for retaining control

Ian Clarkson, Senior Director - PRINCE2, PeopleCert

Everywhere you look, there are projects. From the house renovations happening on our street to national megaprojects in areas such as rail and energy.

Despite the difference in size, scope and deliverables, they all have two things in common.

First, they all have a desired outcome and a list of expected benefits. In the private sector, projects are usually designed to drive profit or better margins, while in the case of the public sector, projects are normally geared towards service improvements for citizens, societal benefits, sustainability or economic growth.

The second commonality is that someone is accountable for getting the project over the line. No matter if it’s a home extension or a megaproject, they do not happen by accident. Irrespective of size, all projects aim to be delivered within budget and timescales, with a specific goal in mind.

But getting a project to the finish line isn’t enough. It must also realize the benefits. This is why we do projects, after all. This is why PRINCE2 Project Management advocates a project executive, often referred to as sponsor, defined as a single person who is accountable for keeping the project moving through its milestones and ensuring the intended outcomes are delivered.

There’s no need to make it any more complex. One person. One set of accountabilities.

Yet despite this guidance, few companies are using the project sponsor role effectively, despite increasing organizational risk amid ongoing economic and geopolitical uncertainty. Before I venture into why, I think it’s useful to consider what good looks like.

Effective delivery from effective sponsorship

Companies that use project sponsors effectively create a culture that values the role as essential to success. They have defined the sponsor role description (PRINCE2 Project Management provides a clear role description in Appendix A) and identified the skill sets best suited to effective project sponsorship.

In my experience, it’s almost certainly someone who has run and led projects, understands the complex nature of simultaneously creating and managing change, and has the expertise to ensure benefits are realized. Sponsors with this experience appreciate the value in ensuring the end goal stays firmly in view.

That does not mean project sponsors must come from within the sector itself. Industry context and processes can be learned; effective sponsorship skills, however, are usually built over time through practice and experience.

Often, leaders are too quick to dismiss recommendations for sponsors because they are wedded to the idea that they must know the sector inside out.

To land my point with leaders, I often turn to the book ‘How Big Things Get Done’ written by Bent Flyvbjerg, professor at Oxford Saïd Business School. His research shows that just 0.5% of major projects or megaprojects are delivered on time, within budget and with the expected benefits - and that’s without the added pressure of today’s economic and political tribulations.

Though jaw-dropping, I wholly believe that this statistic is true. In my mind, where sponsorship is absent or ineffective, projects are far more likely to encounter problems and fail to deliver the expected benefits.

Stuff happens. Get a sponsor.

Project sponsorship is crucial today because businesses are experiencing more periods of uncertainty beyond their control.

Of course, it’s impossible to control everything in a project, but the risks associated with the ever-changing economic and political picture we see around the world are compounding existing risks and increasing delivery challenges.

The price of fuel, global trade delays, supply chain pressures, rising costs of employment… the list goes on. Business conditions are changing so rapidly that assumptions made just months ago may no longer hold true today.

When the constraints feel tight, there’s a greater argument to have a project sponsor in place to help organizations stay focused on strategic intent and ensure the project does not lose sight of its original objectives.

A good sponsor will make themselves available for the ‘oh heck’ moments and help determine the right path, instigating a sensible discussion about what to stop, start or adjust so the project is delivered and the benefits realized.

The sponsor: a key role that needs authority

It’s important to say that good sponsors should be supported in their role. They not only have experience and expertise, but are often coached and mentored to help them take accountability, influence stakeholders, and lead with credibility.

They are empowered to delegate when necessary, recognize when to advise and when to take action, and champion the interests of the project and the stakeholders involved.

They are also given the capacity to perform the role properly, rather than being spread so thinly across competing priorities that they are unable to engage meaningfully.

Expect the unexpected. Get a sponsor.

I can already see the difference in organizations that take project sponsorship seriously: they are more agile, more focused and better able to make effective decisions under pressure.

And given the times we live in, where we should all expect the unexpected, I firmly believe leaders need to heed these examples and build a culture that understands that effective projects need effective project sponsorship.