Project governance: Balancing control and trust in dealing with risk

• The project owner is the single point of accountability for the realization of project benefits.
• Trust of the project owner in the project manager is more effective in a turbulent environment.
• Control by the project owner of the project management process is a superior management approach in a more stable project setting.
• A project owner (supported by the steering committee) is one core role of a project governance model.
• A project manager (supported by a project team) is a second core role of a project governance model.

Organizational performance can be enhanced by effective project benefit generation. Although it identifies the project owner as the single point of accountability for the realization of project benefits, the literature does not comprehensively discuss this role in the project governance model, nor the management approaches that can support this role. Based on principal–agent theory and a control–trust–risk approach, we have conducted an empirical study across various managerial contexts. Results suggest that trust of the project owner in the project manager is more effective in a turbulent environment, whereas more control by the project owner of the project management process is a superior management approach in a more stable project setting. Finally, a project governance model is introduced and the management role of the project owner is discussed.

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