The PM² Governance Model: Who Decides, Who Directs and Who Delivers

Fourth article in the “Learning PM² Through a Project” series

Many problems attributed to planning are actually governance problems: nobody knows who should decide, two people consider themselves responsible for the same matter, or an operational decision is repeatedly escalated to a level that is too high.

PM² addresses this through a governance model that organises roles and responsibilities into several layers. The basic logic is straightforward:

The higher the layer, the more strategic the decisions. The lower the layer, the more operational the work.

The model also distinguishes two perspectives that must collaborate:

• the requestor/client side, which expresses the need and must achieve outcomes and benefits;
• the provider side, which designs and produces the solution.

Governance Is Not the Organisational Hierarchy

Project governance is a temporary structure created to make decisions and deliver a specific project. It does not necessarily match the organisation chart.

A director may act as Project Owner, but “director” is an organisational function whereas “Project Owner” is a project role. Similarly, a technical manager may act as Solution Provider while delegating day-to-day management to a Project Manager.

For every PM² role, ask:

1. which perspective does it represent?
2. for what is it accountable or responsible?
3. which decisions can it make?
4. to whom does it report or from whom does it receive authority?

The Five PM² Governance Layers

The model can be read from top to bottom:

The Project Support Team (PST) supports management activities such as administration, documentation, quality control or methodology. It does not constitute an additional decision-making layer.

1. Governing Layer: Appropriate Governance Body

The Appropriate Governance Body (AGB) is the highest decision-making body relevant to the project. Its form depends on the organisation: it may be a management committee, portfolio board, programme authority or senior manager with the required mandate.

The AGB:

• assesses alignment with strategy and priorities;
• approves the idea and the investment;
• authorises planning and execution;
• may suspend or terminate the project;
• receives information and escalations at the appropriate level.

In the Smart Bookings Project

The AGB could be Annotatio’s management deciding whether to invest in the new feature while considering the roadmap, budget and other products competing for the same resources.

The AGB should not decide the wording of a notification or approve every screen. These are operational decisions belonging to lower layers.

2. Steering Layer: Project Steering Committee

The Project Steering Committee (PSC) is the project’s main collective steering body. Its core composition includes:

• Project Owner;
• Business Manager;
• Solution Provider;
• Project Manager.

Other roles may participate when required.

The PSC:

• safeguards project management quality;
• monitors the project at directing level;
• addresses risks, issues and changes beyond the Project Manager’s authority;
• balances business needs and solution constraints;
• supports decisions requiring a joint perspective.

The PSC is not simply a regular progress meeting. It is a team-oriented decision-making body.

In the Smart Bookings Project

If adding online payments requires a budget increase or a later release date, the PSC assesses the alternatives and makes or prepares the decision within its defined authority.

3. Directing Layer: Project Owner and Solution Provider

The Directing Layer brings together the two fundamental perspectives.

Project Owner: Success from the Business Perspective

The Project Owner (PO) represents the requestor side and is accountable for the project’s overall success. The PO:

• acts as the project sponsor;
• sets high-level direction and priorities;
• ensures that outcomes remain aligned with business objectives;
• mobilises budget and requestor-side resources;
• owns the main business risks;
• approves key management artefacts;
• normally chairs the PSC.

The PO does not necessarily manage the project every day. Many operational activities are delegated to the Business Manager and Project Manager, but the PO retains accountability for success.

Solution Provider: The Capacity to Deliver the Solution

The Solution Provider (SP) represents the provider side and is accountable for the overall capacity and quality of the solution delivered. The SP:

• provides people and competences;
• appoints or supports the appointment of the Project Manager;
• ensures technical quality and delivery capacity;
• represents those who design, develop, integrate or maintain the solution;
• handles high-level supplier and technical resource matters.

The Pair to Remember

The two roles are not opponents. They must provide coherent direction within the same project.

4. Managing Layer: Business Manager and Project Manager

The Managing Layer translates direction into day-to-day management.

Business Manager: Preparing the Business for Change

The Business Manager (BM) operates on the requestor side and acts on behalf of the Project Owner on a daily basis. The BM focuses on:

• defining business needs and objectives;
• coordinating User Representatives;
• Business Implementation;
• adoption of the solution;
• realisation of outcomes and benefits;
• preparing the organisation for change.

A technically perfect solution that is not adopted is a failure from the BM’s perspective.

Project Manager: Coordinating Delivery

The Project Manager (PM) manages the project day to day and coordinates the Project Core Team. The PM focuses on:

• preparing and executing approved plans;
• scope, time, cost and quality;
• coordinating activities and resources;
• managing risks, issues, changes and communications;
• producing and updating management artefacts;
• reporting to the PSC;
• integrating the different deliverables.

Business Manager and Project Manager Are Not Duplicates

In our example, the PM may deliver Smart Bookings on time and within budget. The BM must ensure that gyms are trained, processes are adapted and the feature is actually used.

5. Performing Layer: BIG and PCT

The Performing Layer carries out the change.

Project Core Team

The Project Core Team (PCT) consists of the specialists who produce the deliverables: analysts, developers, testers, architects, designers and other required experts.

The PCT works under the coordination of the Project Manager and focuses on producing the solution.

Business Implementation Group

The Business Implementation Group (BIG) performs the activities needed for the business side to adopt the solution. Its work may include:

• changing operational processes;
• preparing procedures and training material;
• communicating with users;
• supporting transition;
• monitoring early adoption.

The BIG works under the leadership of the Business Manager.

Two Essential Types of Work

The project needs both. Confusing software delivery with software adoption is one of the most common mistakes in digital projects.

Requestor and Provider: Two Sides, One Project

The structure can be memorised as two columns:

The AGB and PSC provide overall alignment and steering.

This symmetry is not absolute, but it is an effective memory aid:

• PO and SP direct;
• BM and PM manage;
• BIG and PCT perform.

Can One Person Hold Multiple Roles?

Yes. PM² is adaptable, and one person may hold several roles in a small project. However, there is a difference between combining people and removing responsibilities.

In a small Annotatio project, the same person might act as Solution Provider and Project Manager. The two responsibilities remain conceptually distinct: one concerns resources and the overall quality of the solution, while the other concerns day-to-day project management.

Role combinations should:

• be explicit;
• be documented in the Project Handbook;
• keep decision rights and escalation paths clear;
• avoid unmanaged conflicts of interest;
• preserve the necessary representation of the business side.

Accountability and Responsibility

In everyday language, these terms are often treated as synonyms. In PM², the distinction matters:

• Accountable: owns the result, approves it and answers for the final outcome;
• Responsible: performs or coordinates the work needed to produce it.

For example, the Project Owner may be accountable for the Business Case, while the Business Manager is responsible for developing it with support from other roles.

A RASCI matrix should contain only one A for each activity. We will explore RAM and RASCI in a dedicated article.

Do Not Confuse

Test What You Remember

1. What are the five PM² governance layers?
2. Which roles normally make up the PSC?
3. What is the fundamental difference between the Project Owner and Solution Provider?
4. Who coordinates the PCT, and who leads the BIG?
5. Why does combining two roles not mean removing one of them?

Answers

1. Governing, Steering, Directing, Managing and Performing.
2. PO, BM, SP and PM, with any other roles required.
3. The PO represents the need, outcomes and benefits; the SP represents the capacity and quality of the solution.
4. The PM coordinates the PCT; the BM leads the BIG.
5. Because the roles’ responsibilities, authority and perspectives remain distinct even if assigned to the same person.

Flashcards

Q: Who is accountable for the project’s overall success?
A: The Project Owner.

Q: Which body includes the PO, BM, SP and PM?
A: The Project Steering Committee.

Q: Who manages the project on a day-to-day basis?
A: The Project Manager, working with the Business Manager on the business side.

Q: Who produces the deliverables?
A: The Project Core Team.

Q: Who prepares the organisation to adopt the results?
A: The Business Implementation Group, led by the Business Manager.

Exam-Style Question

The software has been delivered correctly, but users have not been trained and operational processes have not been updated. Which pair should primarily have addressed these aspects?

A. Solution Provider and Project Core Team.
B. Business Manager and Business Implementation Group.
C. Project Manager and Project Support Team.
D. Appropriate Governance Body and Solution Provider.

Correct answer: B. Training, adoption and process adaptation belong to Business Implementation, led by the Business Manager and carried out with the BIG.

In the Next Article

In the next article, we will compare the Project Owner, Solution Provider, Business Manager and Project Manager in detail, focusing on the responsibilities most easily confused in exam questions.

Essential Sources

• European Commission, PM² Project Management Methodology – Highlights, 2025 Edition.
• European Commission, The PM² Governance Model.