Governance

Every project needs governance, though governance structures can range from informal to very formal. OMSF requires that hosted projects have defined governance. More philosophically, every project has governance: plans are formed, decisions are made, actions are taken, software is developed. Governance is the answer to the questions of “how” decisions are made and “who” makes them.

Why should you care about project governance?

Successful project execution requires effective leadership and clarity around roles and responsibilities. Establishing the oversight structure, decision making processes and delegation mechanisms are the key objectives of any governance model. The governance model is usually described in the project bylaws (or charter) as a part of the fiscal sponsorship agreements, while operational procedures are managed through organizational and project-specific policies.

The decision process should include a shared understanding of which decisions must be made by formal governance and which are delegated to operational leadership. Bylaws and policies create the shared understanding of “how we do things” and “who has which rights and responsibilities”.

The three functions of governance

• Setting strategy
  • Who do we serve and how?
  • What vision do we adopt?
  • What is our vision and mission?
  • What are our values that we make decisions by?
• Making decisions
  • Who sets the budget? Who approves it?
  • Who changes plans when necessary?
  • Who manages daily operations?
• Accountability
  • Who verifies that decisions are carried out and actions taken?
  • What are the consequences if they are not?

The three functions of governance can be fulfilled by a single person, but in OMSF projects they are usually fulfilled by a board. The board should consist of a group of people with aligned but distinct interests operating under the agreement of the bylaws.

Consortium governance example: The advisory board / governing board model

OMSF consortium-funded projects use a two-stage governance structure that reflects the differing monetary contributions of partners.

• Three tiers of support are defined by annual contribution
• All supporting members get a seat at the advisory board
• Advisory board members elect representatives to the governing board, with higher support tiers receiving greater representation

Decision making in the advisory board / governing board model

The governing board also provides budget and high-level operational oversight. The leadership team operationalizes all decisions, converts them into roadmaps and deliverables, and provides regular reports to the boards. Examples of decision-making bodies and roles at OMSF:

• Project Advisory Board. The advisory board receives regular updates from the project and is presented with all major decisions for their input. Once the input of the advisory board has been integrated, a set of options are presented to the governing board for approval.
• Project Governing board. The governing board also provides budget and high-level operational oversight.
• Executive Committee
  • Recommended to be 3 members
  • Appointed by governing board (usually members of the advisory board)
  • Acts as a smaller, more nimble governing board
  • Pros: maximizes engagement of funding partners
  • Cons: very large commitment from volunteers
• The Project Director
  • One person who takes responsibility for carrying out the will of the governing board
  • May be a full-time staff member or volunteer (e.g. member of the governing board)
  • Pros: Clear lines of authority
  • Cons: Challenging to find an experienced person to fill the role, either due to time commitment requirements for volunteers or salary requirements for employees
• Leadership Team
  • Technical leads and project manager share responsibility for the project
  • Pros: distributes responsibility, easier to fill these roles
  • Cons: Requires very careful structuring to avoid diffusing responsibility (no one knows who is responsible for anything) instead of distributing it (everyone knows who is responsible for each part)
• Drivers: individuals responsible for a specific product or task