Much of project reporting is ‘self-reported data’ which can easily mask risks, creating a false sense of stability. Strengthening governance and transparency ensures issues surface early, allowing leaders to act decisively and turn reporting into a tool for real progress.
A project report might suggest everything is under control – deadlines met, budgets on track, no major risks identified. Yet, a closer look often reveals a more complicated reality.
Most project reporting relies on self-disclosed data, or self-reporting. Interestingly, psychology studies that use self-reported data are carefully designed to minimise bias, ensuring responses are as accurate as possible.
One of the most significant biases in self-reporting is social desirability bias – our tendency to emphasise positive aspects while downplaying the negative. In the project world, teams may hesitate to escalate risks due to cultural pressures, managers might encourage a more optimistic view to align with stakeholder expectations, and executives may unknowingly reinforce a ‘good news only’ culture. The result will often be the dreaded ‘watermelon projects’ – green and healthy on the outside but riddled with red flags underneath.
When problems aren’t brought to the surface early, they tend to get worse (sadly, they don’t just go away) . Addressing challenges late in the project lifecycle is costly, disruptive and places unnecessary strain on teams. A governance structure that prioritises honest reporting helps organisations detect problems before they escalate, ensuring they can intervene when it matters most. (And wherever possible, cite or link to evidence.)
Technology and best-in-breed project management tools play a supporting role in improving transparency but won’t solve reporting issues alone. Without strong governance and a workplace culture that encourages open communication, even the most advanced systems will fail to prevent misrepresentation or selective reporting.
The danger of a ‘good news only’ culture
We’ve previously explored the risks of a good news only culture, particularly in major transformation projects, where only positive updates are rewarded. When leadership places excessive emphasis on success, teams naturally feel pressure to report projects as ‘green’, even when warning signs are present.
There are some extreme examples of good news cultures out there. A well-known Australian organisation once introduced a governance structure where the CEO personally contacted project managers whose projects had been marked as ‘red’ for the month. Though intended as a show of support, the initiative created widespread anxiety among teams and leaders. Rather than encouraging transparency, it made red status something to be feared. The outcome was that projects reported fewer issues, not because risks had been resolved, but because no one wanted to be singled out. A key learning here is that good intentions can lead to bad results, therefore careful consideration must be taken when deciding which actions to take.
Accountability is important, but when reporting structures fail to account for workplace dynamics and organisational culture, they create unintended consequences. When teams believe that flagging risks will invite blame rather than support, they adjust their reporting to protect themselves. Effective governance is not about punishing teams for reporting challenges – it’s about ensuring risks are identified early enough to manage effectively.
Encouraging transparency through stronger governance
Reducing bias in self-reporting requires more than procedural oversight. It demands a governance structure that builds trust, facilitates clear communication and ensures that issues flagged in reports lead to tangible action. This starts with leadership setting the expectation that identifying risks is not a sign of failure, but a critical part of project success.
Why is this? Projects, by their very nature, should be viewed as a high-risk business activity as the project represents the pursuit of a new endeavour for the organisation and people. Projects are a mechanism for creating value and delivering new technologies, capabilities and functions into an organisation, therefore they lack the familiarity that people are accustomed to in BAU, will challenge mindsets, likely encounter many unforeseen challenges that no amount of planning can identify.
Effective governance strikes a balance between structure and adaptability. If it’s too rigid, teams may hesitate to speak openly. If it’s too relaxed, risk management becomes inconsistent. The most effective approach blends structured oversight with active engagement. Leaders and PMOs must look beyond status reports. By speaking directly with teams, they gain a clearer view of emerging risks, spot gaps in reporting and identify problems before they escalate.
A strong governance framework shifts project reporting from a performance evaluation to a support mechanism. When teams see risk reporting as a way to secure help – not a judgment on their capability – they are more willing to flag potential issues.
A well-functioning EPMO plays a key role in supporting this shift. Instead of acting as administrators who collect reports, they actively work with project teams, identifying patterns, offering guidance and ensuring leadership is aware of emerging concerns before they become crises. When governance is built on engagement rather than oversight, it transforms from a policing function into an enabler of project success.
Another critical factor in improving reporting integrity is validating self-reported data. Relying exclusively on project managers’ updates can create blind spots. Engaging with business analysts, change managers and project coordinators provides a broader perspective on project health. Informal discussions often reveal details that don’t make it into formal status reports, helping organisations identify risks sooner and intervene more effectively.
Leadership’s role in building a reporting culture
Governance structures are only as strong as the leadership that supports them. Without clear direction from the top, even well-designed frameworks will fail to create a culture of transparency. The most effective leaders don’t just rely on dashboards and reports – they stay connected to their teams, walking the floor and engaging in real conversations. By encouraging open discussions about risks early, they prevent last-minute escalations that leave little room for course correction.
Effective leaders also understand the perils of overreacting to bad news. They understand that raising concerns early reflects maturity, not failure. When teams feel safe speaking up, they address small issues before they spiral into major disruptions. This shift in mindset – viewing risk reporting as a proactive measure rather than a red flag – creates a culture where transparency drives better decision-making.
Leaders also have a responsibility to ensure that governance structures evolve with the organisation. What works in a smaller company may not scale effectively in a larger enterprise. By continuously refining governance practices and encouraging open dialogue, leadership can ensure reporting mechanisms remain effective as the organisation grows.
Making project reporting work for you
Effective governance isn’t about adding more layers of oversight – it’s about ensuring project reporting provides meaningful, actionable insights. Technology can enhance visibility, but it is leadership, governance and an open reporting culture that determine whether information leads to better decision-making.
Organisations that prioritise transparency consistently avoid last-minute surprises. Risk management becomes proactive, not reactive. The key to success lies in treating reporting not as a compliance requirement, but as an essential tool for project success.
Ultimately, project data is only as valuable as the actions it enables. Ensuring that reporting reflects reality – and that leadership responds constructively – will always be the difference between managing projects reactively and driving them toward long-term success.
To find out more about how Quay Consulting can help your team strengthen governance or implement project reporting capability, please contact us.
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