Governance

What is a Component Authorization?

Component authorization is the formal process by which a program manager officially approves a component project (or subprogram) to begin work. It is not enough for a project manager to simply start planning — there must be a documented, sanctioned authorization from the program level before a component can move into active execution.

This process typically involves reviewing the component's business justification, confirming alignment with program objectives, and issuing a formal component charter or authorization document. Without this step, components can start consuming resources or making commitments that haven't been officially sanctioned — which creates governance risk for the entire program.

On the PgMP exam, if a question shows project managers requesting informal approvals via email or hallway conversations, the correct answer almost always involves establishing a formal authorization process.

Worked example

Example: A program manager overseeing a digital transformation program receives requests from three project managers who want to start their component projects. Rather than approving these via email, the program manager issues formal component charters that define scope boundaries, resource constraints, and success criteria — officially authorizing each project to begin.

Practice Question

PMP / PMI-ACP Style

Maximum-difficulty scenario. Two options appear plausible — only one is the correct PMI-aligned choice.

Scenario

A program manager joins an active program and discovers that component project managers have been submitting authorization requests informally via email. Some components have already started work without documented approval.

What should the program manager do first?

A Issue stop-work notices to all components that started without formal authorization.
B Establish a formal component authorization process and document it in the program management plan going forward.
C Accept the current approach since work has already started and disrupting it would cause further delays.
D Escalate the issue to the governance board and request an immediate program audit.
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