The Comprehensive Guide to Being a Project Sponsor

The project sponsor is often referred to as the ’project champion.’ The role entails using their experience, expertise, strategic thinking, and business acumen to identify projects that align with the company’s objectives. By effectively championing these projects, they lend their seal of approval to initiatives that benefit the organization.

In essence, an effective sponsor acts as a safeguard for the business, ensuring that only valuable projects are pursued. This responsibility extends throughout the project’s lifecycle as the sponsor remains vigilant. If it becomes apparent at any stage that the project no longer aligns with the company’s interests, the sponsor should be quick to recognize it and advocate for its cessation.

The role of a project sponsor often goes beyond just approving a project; this individual acts as an advocate, aligning the project with broader business goals and driving its success. Their commitment not only provides the project with credibility but also ensures that it’s continuously evaluated for relevance and potential returns. When a project sponsor is effective, they can become a cornerstone of the project, steering the it back on course if needed and making crucial decisions that protect the organization’s interests while guiding the project toward success.

“A sponsor is the person or group that provides the financial resources, in cash or kind, for the project. When a project is first conceived, the sponsor champions the project.”

Project Management Institute (PMI)

As the representative of the organization, the sponsor is responsible for ensuring that the project adheres to established project and portfolio management (PPM) processes and governance. This involves compliance with agreed-upon stage gates, financial approvals, and budgeting principles. Additionally, the sponsor plays a crucial role in aligning the project with the organization’s culture, codes of conduct, and ethics to ensure seamless integration within the overall framework.

The sponsor should offer guidance and support to the project manager. They bring a strategic outlook to complement the project’s delivery focus, considering organizational context and foresight. Ensuring project feasibility, the sponsor encourages the project manager to enhance the business case and acts as an advisor. Moreover, the sponsor equips the project manager with the project vision, business case, outcomes, requirements, and anticipated benefits, aiding in understanding priorities and potential trade-offs between outputs and outcomes.

The sponsor serves as a crucial point of escalation for the project manager and team. If they encounter a risk or issue beyond their capacity to resolve, prompt escalation to the sponsor is essential. The sponsor must respond swiftly, providing leadership and guidance. If required, this individual will escalate the matter. Likewise, any changes that go beyond the project manager’s capabilities must, at minimum, receive approval or rejection from the sponsor.

The project team assesses and creates a communications plan for stakeholders. The sponsor should actively participate in this process since they’re responsible for stakeholder management. Representing the project, the sponsor acts on behalf of the project manager and team when engaging with senior stakeholders.

The sponsor’s assistance becomes crucial when the project manager lacks the authority to resolve certain issues, such as breaches of project tolerances requiring more time, resources, or scope changes. In such cases, the sponsor’s stakeholder engagement and negotiation skills come into play. They may have the power to adjust tolerances themselves, or they may need to consult other business units to secure support. Failing to engage stakeholders can lead to project failure.

Building strong relationships with key stakeholders can be a game-changer for project success. A sponsor who excels in stakeholder management knows how to anticipate concerns, manage expectations, and maintain open lines of communication. Regular updates, inclusive planning sessions, and timely escalation processes create a foundation of trust and cooperation that can be crucial during project challenges.

The sponsor should regularly review project status reports from the manager, encouraging transparency in reporting. It’s essential to address any challenges promptly to ensure project success. The sponsor plays a critical role in the project, accepting leadership responsibilities and collaborating with the project manager to achieve defined benefits. Enlightened organizations prioritize training for project managers and senior decision-makers. This results in committed and knowledgeable sponsors and reduces frustrations for project teams. Below, we’ve created a grid of information to review with your potential project sponsor before they’ve agreed to take on the role.

How to help sponsors become engaged

• Ensure there is a clear, shared understanding of what their role is. What is its purpose and boundaries? What does good look like, and what are the expectations around their involvement? Consider a workshop that helps them to understand the role fully and in the context of the wider organizational picture.
• For every project, ensure there’s a kick-off meeting with the project team so that roles and responsibilities are defined and agreed upon, and expectations are set. Ensuring that processes, procedures, and meeting cadence is repeatable will help sponsors have a similar experience with each project, making it easier for them to engage.
• Encourage the use of different communication methods to offer flexibility and build a two-way dialogue between the project manager and sponsor (and the PMO if applicable). Keep meetings short and focused.
• Focus on the value the sponsor brings to the project and how they support successful delivery. Celebrating successes and benefits realization milestones will help sponsors see and feel their contribution.

Managing project sponsor satisfaction is an ongoing and dynamic task throughout the project’s lifespan, not a one-time effort. Below, we’ve listed a few ways the project management team can keep a sponsor satisfied with communication and progress related to the project.

• Adapt sponsor messages to changes in the project’s context, and reevaluate the sponsor’s communication needs at regular intervals.
• Communication requirements are not static; they will evolve and remain flexible during the project.
• Adjust your messages and delivery methods as needed.
• Cultivate a collaborative relationship with your sponsors by showing appreciation, actively listening, and validating their needs.
• When sponsors seem disengaged, take the time to understand their perspective; make them feel understood, validated, and appreciated to maintain their support.

Sponsors are customers of the PMO just like delivery teams and managers. This means that it is the responsibility of the PMO to ensure that they understand their customers and find opportunities to eliminate situations where sponsors don’t have the capacity to carry out their roles.

This can be achieved by applying good portfolio management practices, ensuring a balance of initiatives both in terms of expected business value and capacity, and providing services that allow sponsors to understand and carry out their role. Recognizing the sponsors’ needs for help and support is necessary throughout this process.

Finding the right balance in project sponsorship can be challenging. On one hand, having an absent or disengaged sponsor can impede progress. On the other hand, an overly involved sponsor may lead to micromanagement and undermine the project manager’s authority. The ideal approach is to strike a balance where the sponsor acts as a critical friend to the project manager. This means championing the project, providing support, removing obstacles, and empowering the project manager for success.

Sponsors should strive to empower the project manager by offering guidance when needed without overshadowing their role. Finding the right balance allows the sponsor to remain an advocate and decision-maker without interrupting project workflows, promoting a culture of accountability and trust within the project team.

What are the challenges?

• Sponsors, who are often senior members, typically lack sufficient time to dedicate to the project. Confirm with your potential sponsor before their joining the project that they’ll have time to fulfill their responsibilities.
• Many sponsors are unclear about their roles’ expectations, leading to misconceptions about their level of involvement, ranging from sign-off on requests to daily management. To prevent this from happening, create and agree upon a clear set of responsibilities prior to the sponsor’s joining.
• Remote and hybrid work setups can cause miscommunication between project managers and sponsors, making it challenging for sponsors to be effectively involved and understand project progress. Ensure regular check-ins with an established mode of communication to mitigate this.

If your delivery is suffering from an ineffective or absent sponsor, it’s important to find out the reasons why your particular is happening.

During our Change Management Professional course, we discuss the questions that we must ask to understand the root cause of the problem.