Project Steering Committee

In project management, ensuring everything stays on track and aligned with the organizational goals is important. This is where the project steering committee (PSC) steps in. Its role is crucial in guiding project decisions, managing risks, and ensuring that the project objectives are met efficiently. Curious about how a PSC can be an important part of successful project management? Let's explore the roles and benefits that make a steering committee an indispensable asset for any project.

What is a Steering Committee in Project Management?

A steering committee in project management is a governance body composed of key stakeholders who provide strategic direction, oversight, and support to ensure that a project aligns with organizational goals and objectives. They typically include senior executives, project sponsors, and other influential figures within the organization who are vested in the project's success. Their primary role is to guide the project's progress, make critical decisions, manage risks, and resolve issues that may arise during the project's lifecycle.

At its core, a project committee acts as its compass, ensuring it stays on the right path to achieve its intended outcomes. They meet regularly to review the project's status, make important decisions, and provide guidance to the project team. By doing so, the steering committee helps mitigate risks, allocate resources effectively, and ensure the project stays within its planned objectives.

This concept can be traced back to the mid-20th century, when organizations began formalizing their project management practices. Initially, these committees were formed to oversee large-scale, complex projects, particularly in the construction, engineering, and aerospace industries. Over time, as project management methodologies evolved and became more sophisticated, the role of steering committees expanded across various sectors, including IT, healthcare, finance, and government.

Purpose of a Steering Committee

The steering committee provides an essential external viewpoint on critical project decisions, particularly those involving process optimization and team dynamics, that the project team may be too embedded to address objectively. Project teams are often deeply involved in the day-to-day tasks and may be biased.

Conversely, the project committee can act quickly to resolve issues that the project team finds challenging, ensuring that any problems are promptly addressed and conflicts are resolved. This impartial oversight is pivotal in maintaining the project's alignment with broader organizational objectives and ensuring its integrity.

Project Steering Committee Roles and Responsibilities

Outlined below are the key roles and responsibilities of a steering committee.

Providing Strategic Direction

The steering committee ensures the project aligns with the organization's strategic goals. They set priorities, provide a strategic framework, and guide the project team in making decisions that benefit the organization.

Oversight

The steering committee regularly reviews project performance and progress against milestones. They help identify and address issues early, ensuring the project remains on track.

Decision-Making

PSC is responsible for making key decisions, including approving significant scope, budget, and timeline changes. They also resolve escalated issues that the project manager cannot address alone.

Risk Management

A crucial responsibility of the project committee is to identify, assess, and mitigate risks. By proactively addressing potential threats, they minimize the impact on the project, ensuring its smooth progression.

Steering Committee Members

Chairperson

The chairperson leads the steering committee, facilitating meetings, setting agendas, and ensuring discussions remain focused on strategic issues. They act as the primary point of contact between the project committee and the project manager.

Project Sponsor

The project sponsor is typically a senior executive who champions the project at the highest level. They secure necessary resources, provide strategic direction, and make high-level decisions that affect the project's scope, budget, and timeline.

Project Manager

While not always a project committee member, the project manager frequently attends meetings to provide updates on project progress, report on milestones, and highlight any issues that require the committee's attention.

Key Stakeholders

Key stakeholders include representatives from various departments or groups affected by the project. Their role is to provide insights into how the project impacts their areas, ensuring their needs and concerns are addressed.

Subject Matter Experts (SMEs)

SMEs offer specialized knowledge and expertise relevant to the project. With their help, the steering committee will understand technical aspects, assess risks, and evaluate the feasibility of different project approaches.

Financial Controller

The financial controller oversees the project's financial aspects, monitoring budgets, expenditures, and risks, and ensures that the project remains within budget while providing value for the organization.

What Are the Five Functions of a Steering Committee?

These five functions enable the steering committee to be crucial in guiding projects toward successful completion.

Strategic Direction: The steering committee provides strategic guidance to ensure the project aligns with the broader organizational goals.
Oversight and Project Governance: The steering committee monitors project progress and performance to ensure the project adheres to its scope, budget, and timeline.
Decision-Making: The steering committee makes important decisions that the project team cannot resolve, such as approving major changes, resource allocation, and addressing high-level risks.
Risk Management: The steering committee's critical functions are identifying, assessing, and mitigating risks. Their proactive approach helps prevent potential issues from derailing the project.
Conflict Resolution: When the project team cannot settle conflicts, the steering committee steps in to mediate and resolve disputes, ensuring that the team remains focused and unified toward achieving the project goals.

Steering Committee Meeting

Steerco meetings provide a structured forum for discussing progress, addressing issues, and making critical decisions. By gathering key stakeholders, steering committee meetings facilitate transparent communication and collaborative problem-solving, essential for the project's success.

Steering Committee Meeting Agenda

A well-structured agenda helps keep steering committee meetings focused and productive. Below is an example of a typical agenda:

Welcome and Introductions: Brief opening remarks and introductions of attendees.

Review of Previous Meeting Minutes: Approval and discussion of the minutes from the last meeting.

Project Status Update: A presentation of the current status, including milestones achieved, budget status, and upcoming tasks.

Issue and Risk Management: Discuss any identified issues or risks, along with proposed mitigation strategies.

Decision Points: Deliberation on critical decisions that require the committee's approval, such as changes in project scope or resource allocation.

Stakeholder Feedback: Review and consideration of feedback from key stakeholders.

Next Steps and Action Items: Identifying the next steps and assigning action items to committee members.

Schedule Next Meeting: Agree on the date and time for the next steering committee meeting.

Steering Committee Examples

The following example will illustrate how a steering committee operates in a digital marketing agency:

Purpose:

Digital marketing agencies employ a steering committee to enhance their strategic direction and ensure client campaigns achieve their desired outcomes.

Composition:

The steering committee is composed of:

Senior executives
Project managers
Key stakeholders

These members bring diverse expertise in digital marketing, data analytics, and customer engagement.

Primary Functions:

Overseeing Major Marketing Initiatives: The committee evaluates the effectiveness of ongoing campaigns and identifies opportunities for innovation.
Strategic Planning and Guidance: Ensures all projects align with the agency's vision and goals.
Performance Review: Regularly convenes to discuss performance metrics, market trends, and client feedback.

Impact:

Through their collaborative efforts, the steering committee has:

Driven the agency's growth
Improved client satisfaction
Maintained a high standard of creative excellence

How ActiveCollab Project Management Software Supports PSC

ActiveCollab Project Management Software significantly enhances the efficiency of project steering committees (PSC) by offering centralized information, collaboration tools, and robust reporting and analytics.

Centralized Information

Access to Project Data and Documents:

ActiveCollab centralizes project data and documents, providing the PSC with easy access to essential information and simplifying document retrieval and project tracking.

Real-time Updates:

Real-time updates keep PSC members informed about project developments, enabling timely and informed decision-making.

Collaboration Tools

Communication:

ActiveCollab includes robust tools like instant messaging, email integration, and discussion threads, facilitating seamless interaction among PSC members and project teams.

Task Management and Tracking:

PSC can assign, monitor, and track tasks efficiently, ensuring accountability and adherence to project timelines.

Reporting and Analytics

Generating Detailed Reports:

Customizable reports offer valuable insights into project performance, helping the PSC focus on crucial metrics.

Analyzing Performance Metrics:

Comprehensive analytics tools help PSC members identify strengths and areas for improvement, supporting strategic decision-making.

Risk Management:

Analytics capabilities highlight potential risks, enabling the PSC to address issues and ensure smoother project execution proactively.

Steering Committee vs Working Group

When it comes to project management and organizational governance, understanding the differences between a steering committee and a working group is crucial. The table below highlights the key aspects that differentiate these two entities.

Aspect	Steering Committee	Working Group
Purpose	Provides strategic direction and oversight	Focuses on specific tasks or projects
Composition	Senior executives and key stakeholders	Subject matter experts and operational team members
Decision-Making	High-level, strategic decisions	Operational, task-specific decisions
Duration	Long-term, ongoing	Short-term, project-specific