Front-end planning - The role of project governance and its impact on scope change management

Abstract

To achieve optimal value from investment in a project there must be a clear link between the outputs created by the project and the goals of the organization. As such, organizations must have a structure in place for aligning the project deliverables with their organizational goals. Project governance is therefore critical in influencing the success or failure of projects. Lack of support, conflicting objectives, and other contextual issues in the domain of senior management can have negative influences on the progress and outcomes of a project. This paper examines the role of project governance in the new low cost carrier hub known as Kuala Lumpur International Airport 2 (KLIA2). It analyzes the KLIA2 case based on information available in the public domain. Specifically, it examines how governance was exercised in the project and how it impacted on the project's scope and outcome. The analysis of the case provides lessons that can be learned to improve governance practice and project success rates. The findings can also serve as a guide to organizations for designing effective governance structures that can enable projects to deliver benefits to the organization and its stakeholders.