2. Project Sponsor

A Project Sponsor is typically a senior manager, both from the business customer and from the IT department or supplier. They are organizational decision-makers who are often short on time and have a wealth of experience, gravitas, and reputation.

If your project follows a formal methodology such as PRINCE2, an important distinction of a Project Sponsor is that they should not hold any other role in the project. Specifically, this means that they do not have delivery responsibilities. This is important because it helps to keep them unbiased in their decision-making.

A common symptom of someone actively delivering the project is the sunk cost fallacy. Put simply, the individual becomes over-invested into the project because they have worked extremely hard on it. This can cloud their decision-making approach because they are unconsciously looking back at what it's cost them personally.

In contrast, a true Project Sponsor will recognize the cost spent, but more importantly, the future cost and benefit to come, because the overall cost and benefit are what should drive business decisions.

Typically, the Project Manager and the Project Sponsors will meet every 2-4 weeks. These meetings are usually called steering group meetings. As a rule of thumb, this period should be every two or more project status updates, the reason being that key business decisions should not be kneejerk reactions, but instead take a longer-term view of events and trends before intervening.

One of the key responsibilities of Project Sponsors, and a likely outcome from a steering group meeting, is the allocation and prioritization of key resources. This could include, the release of funds to continue (or discontinue) a project, or the ringfencing of a key team member's time to work exclusively on one project over others.

Project Sponsors will also have a keen eye on the most significant risks and have input to the project's proposed risk option. In most cases, any significant risks that cannot be mitigated and require accepting will be accepted with the relevant Project Sponsor's approval.

Ultimately, the Project Sponsors will have the responsibility of making or at least supporting the final go/no-go decision for when the project is ready to launch.