The Project Management Institute defines a project as "a temporary endeavor undertaken to create a unique product or service". Some of the characteristics of a project include -

- Projects are performed by people.
- Projects may be constrained due to limited resources
- Projects need to be planned, executed and controlled

The reason I am laying stress on project management today is that all Sarbanes Oxley Section 404 implementations have been taken up as projects. Organizations have allocated time, money, and resources to comply with Section 404. To successfully comply with Section 404, a strong project management function is very important. Below, I have listed down some of the maturity levels for a project management function.

1. Initial - Project management techniques are left to the project manager.

2. Repeatable - The Project management function is in a state of learning. A few guidelines are set.

3. Defined - There is a formal project management methodology documented and communicated.

4. Managed - Project metrics are identified, Key goal indicators and key performance indicators have been identified.

5. Optimized - A lifecycle project management methodology is implemented and enforced. Continous improvement in all aspects of project management activites can be noted.

Related Posts on Sarbanes Oxley Compliance >>

Testing Strategies for Internal Controls
Concept of Disclosure Controls
Real Time Disclosures under SOX
Categories of Business Risks for SOX Compliance