One could argue that good project governance positively influences productivity, and that this shapes the economy in a sustainable way. However, there is a prevailing perception in the corporate and government environment that steering committees and boards in some way constitutes good project governance. This perception appears to be based in part upon the presumption that the corporate sector always performs better than government; the corporate sector assures good corporate governance through boards; Ergo
everyone else, including government, would perform better if they did the same.
The paper argues that this presumption is indefensible as there is no scientific or rational basis to support it. Moreover, the concept of governance as steering committees and boards can diffuse responsibility and accountability in the hierarchical structures of government departments and large organisations that initiate their own projects and this can lead to project delay, confusion and uncertainty. The paper reviews the literature on governance and project steering committees and concludes that establishing project advisory rather than steering committees removes the potential for organisational power play and provides an effective consultation mechanism that facilitates 'best for project' outcomes
