Governance Model Definition Template – Free Word Download
Introduction to the Governance Model Definition
A project without governance is like a ship without a rudder. While the Project Manager handles the day-to-day navigation, the Governance Model provides the framework of authority, accountability, and oversight that keeps the project aligned with the organization’s strategic objectives. It defines who has the power to make decisions, who is accountable for results, and how disputes are resolved. Enjoy this Governance Model Definition Template – Free Word Download
The Governance Model Definition is the “Constitutional Document” of the project. It establishes the rules of engagement for stakeholders at every level: from the individual contributor to the Board of Directors. It prevents the two most common causes of project chaos: “Decision Paralysis” (where no one knows who can approve a change) and “Scope Creep” (where stakeholders bypass the PM to add features).
This template is designed to create a transparent structure. It covers the hierarchy of committees, the specific roles and responsibilities of governors, the reporting cadences, and the thresholds of authority. By defining these before the project begins, you ensure that the Project Manager is supported by a robust decision-making engine. Governance is not about adding bureaucracy; it is about providing clarity so that the team can move fast within a safe and authorized boundary.
The following sections will guide you through building a tiered governance structure, defining the RACI matrix for key decisions, and establishing the formal communication loops that ensure the project remains under control and visible to the business.
Part 1: Governance Framework and Principles
This section defines the “Philosophy” of the project’s oversight. It sets the tone for how the project will be led.
Governance Statement of Intent
Instructions:
Describe the purpose of this model.
- Project Name: [Insert Name]
- Governance Objective: “To provide clear, timely, and transparent decision-making that ensures the project delivers the expected benefits within the authorized budget and schedule.”
Core Principles
Instructions:
List the “Golden Rules” that the governors must follow.
- Accountability: Every decision must have a single point of accountability.
- Transparency: All steering committee minutes and financial reports are available to the audit team.
- Efficiency: Decisions should be made at the lowest level of authority possible to avoid bottlenecks.
- Alignment: The project must remain aligned with the [Corporate Strategy 2026].
Part 2: The Governance Structure (The Tiers)
A healthy project has different “Layers” of oversight. You must define these layers to prevent executives from getting bogged down in technical details and to prevent the technical team from making strategic financial pivots.
Instructions:
Define the three standard tiers of project governance.
Tier 1: The Project Board / Steering Committee (Strategic)
- Purpose: Strategic direction, major funding approvals, and high-level risk management.
- Members: Project Sponsor (Chair), Senior Users, Senior Suppliers, Finance Business Partner.
- Meetings: Monthly.
Tier 2: The Project Management Team (Tactical)
- Purpose: Day-to-day execution, task management, and budget tracking.
- Members: Project Manager, Workstream Leads, Technical Leads.
- Meetings: Weekly.
Tier 3: The Working Groups / Scrum Teams (Operational)
- Purpose: Creating the deliverables, resolving technical bugs, and detailed design.
- Members: Developers, Subject Matter Experts (SMEs), Analysts.
- Meetings: Daily (Stand-ups).
Part 3: Roles and Responsibilities (The Governors)
In governance, “The Team” is not accountable; “The Person” is. You must define the specific duties of the key governance roles.
The Project Sponsor (Executive Owner)
Instructions:
List the ultimate accountabilities of the Sponsor.
- Duty: Secure the funding and resources for the project.
- Duty: Approve the Project Charter and major Change Requests.
- Duty: Act as the “Champion” at the Board level.
The Project Manager (The Operator)
Instructions:
List the duties of the PM within the governance framework.
- Duty: Report accurately on status, risks, and budget.
- Duty: Manage the project within the “Tolerance Levels” (defined in Part 5).
- Duty: Escalate issues that exceed their authority.
The Senior User (Beneficiary)
Instructions:
Define who represents the people who will actually use the product.
- Duty: Verify that the requirements are accurate.
- Duty: Confirm that the final product meets the “Acceptance Criteria.”
Part 4: Decision-Making Authority (The RACI)
This is the most important table in the document. It removes ambiguity regarding who “Calls the Shots.”
Instructions:
Map key project events to the RACI levels:
- R: Responsible (Does the work).
- A: Accountable (The “Buck Stops Here”; only one person).
- C: Consulted (Provides input).
- I: Informed (Notified after the fact).
Table: Decision Authority Matrix
| Project Activity / Decision | Project Manager | Project Sponsor | Steering Committee | Technical Lead |
| Approve Project Plan | R | A | C | C |
| Authorize Budget Spend < $10k | A | I | I | C |
| Authorize Budget Spend > $10k | R | A | C | I |
| Technical Design Choice | C | I | I | A |
| Change Project Deadline | R | C | A | C |
| Cancel Project | I | C | A | I |
Part 5: Delegated Authority and Tolerances
Governance becomes a bottleneck if the PM has to ask permission for everything. You must define “Tolerances” (The Sandbox).
Instructions:
Define the boundaries within which the PM can operate without asking the Steering Committee for a decision.
Table: Tolerance Thresholds
| Dimension | PM Tolerance (No Escalation) | Steering Committee Action (Escalation) |
| Budget | +/- 5% of monthly budget or $5,000. | Any variance > 5% requires a Change Request. |
| Schedule | +/- 1 week on non-critical path. | Any delay to a “Milestone” date. |
| Scope | “Must-Have” items only. | Any change to the “Definition of Done.” |
| Quality | Minor aesthetic bugs. | Any bug affecting “Primary Security” or “Core Function.” |
Why this matters:
If the PM is $200 over budget, they don’t need a meeting. If they are $6,000 over, the Governance Model forces a meeting. This protects the PM and the organization.
Part 6: Reporting and Communication Cadence
Governance requires data. This section defines the “Heartbeat” of the project communication.
Instructions:
Define the frequency and format of reports.
Table: Reporting Cycle
| Report Type | Frequency | Audience | Key Content |
| Flash Report | Weekly | PM Team | Task completion; blockers; next week’s goals. |
| Status Dashboard | Bi-Weekly | Sponsor | RAG status; Budget vs. Actual; Top 5 Risks. |
| SteerCo Deck | Monthly | Steering Committee | Strategic milestones; ROI update; Decisions required. |
| Audit Report | Quarterly | Compliance/Audit | Financial compliance; Regulatory alignment. |
Part 7: Issue and Risk Escalation Path
When an issue exceeds the PM’s tolerance, where does it go?
Escalation Workflow
Instructions:
Define the path for “High” and “Critical” issues.
- Level 1: PM identifies a “Critical” issue (e.g., Vendor goes bankrupt).
- Level 2: PM notifies the Sponsor within 4 hours.
- Level 3: Sponsor convenes an Emergency Steering Committee meeting within 24 hours.
- Level 4: Steering Committee provides a formal decision or “Go/No-Go” directive.
The “No-Surprises” Rule:
“Governance members agree that no ‘Critical’ issue should be presented at a Steering Committee meeting for the first time. The Sponsor must be briefed privately before the public meeting to ensure they can lead the discussion.”
Part 8: Change Control Governance
Change is the biggest threat to project stability. This section defines the “Gatekeeper” for scope changes.
Change Request (CR) Process
Instructions:
Outline how a new idea becomes an authorized task.
- Submission: Anyone can submit a CR.
- Impact Assessment: The PM and Tech Lead analyze the impact on Cost, Time, and Quality.
- Recommendation: The PM recommends “Approve,” “Reject,” or “Defer.”
- Approval Authority:
- $0 – $5,000 Impact: Approved by PM.
- $5,001 – $50,000 Impact: Approved by Sponsor.
- >$50,000 or Schedule Impact: Approved by Steering Committee.
Part 9: Conflict Resolution Protocol
What happens when the Senior User and the Senior Supplier disagree?
Instructions:
Define the “Tie-Breaker.”
- Negotiation: The PM attempts to facilitate a compromise between the parties.
- Escalation: If unresolved after 3 days, the issue is escalated to the Project Sponsor.
- Final Decision: The Project Sponsor (as the “Executive Owner”) has the final and binding vote. There is no appeal beyond the Sponsor for project-level disputes.
Part 10: Governance Performance Monitoring
How do we know the governance is working?
Instructions:
Define the KPIs for the leaders.
- Decision Latency: “The average time for a CR to be approved should be < 5 business days.”
- Attendance: “Steering Committee members must attend at least 80% of meetings or designate a proxy with full decision-making power.”
- Accuracy: “Monthly financial reports must be within 2% of actual bank statements.”
Part 11: Step-by-Step Guide for Defining Governance
Step 1: Identify the “Single Point of Truth”
Determine who the Project Sponsor is. If you have two sponsors, you have zero sponsors. Governance requires one ultimate head.
Step 2: Define the “Spending Limit”
Ask the Finance department: “What is the standard delegation of authority (DOA) for a manager?” Use that as the PM’s tolerance.
Step 3: Recruit the SteerCo
Don’t just invite everyone. Invite people who have the power to say “Yes” to resources and “No” to scope. A Steering Committee should be small (5-7 people maximum).
Step 4: Establish the “Rhythm”
Set the meeting dates for the entire year. Executives have busy calendars. If you don’t book the 12 Monthly SteerCo meetings today, you will never get them in the room when you need a decision.
Step 5: Draft the “Change Control Board” (CCB)
For highly technical projects, create a sub-committee (The CCB) to review the technical details of changes so the Steering Committee can focus on the business impact.
Step 6: Document the Escalation Path
Draw the line of who talks to whom. Ensure the “Working Group” knows they cannot email the CEO directly about a bug; they must follow the tier structure.
Part 12: Glossary of Governance Terms
- RACI: Responsible, Accountable, Consulted, Informed.
- Tolerance: The permitted deviation from a plan without needing to escalate.
- Steering Committee: A group of high-level stakeholders that provides guidance and takes key decisions.
- Project Assurance: An independent check that the project is still healthy (often done by an external auditor).
- Escalation: The process of moving a decision or issue up the hierarchy of authority.
Conclusion
The Governance Model Definition is the “Contract of Trust” between the project team and the organization. It creates an environment where everyone knows their role, their limits, and their value.
By completing this final template, you have built the infrastructure for project success. You have moved the project from being a “rogue operation” to being a disciplined, authorized, and professional business initiative. Good governance does not slow things down; it provides the “Guardrails” that allow the project to accelerate safely.
Final Checklist for this Template:
- Is there a single, clearly identified Project Sponsor?
- Are the Tiers (Strategic, Tactical, Operational) defined?
- Is the RACI matrix complete for all major decision types?
- Are the Financial and Schedule “Tolerances” explicit?
- Is the Reporting Cadence (Frequency/Audience) set?
- Has the Steering Committee formally approved this model?
Meta Description:
A template for defining a Project Governance Model. Learn to structure steering committees, set decision-making tolerances, and define RACI accountabilities.
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