Managing Complexity: Project Governance in Nordic Superblock Development

Cities and societies have always evolved through projects of varying scale and complexity. Today, project-based work plays a central role in many organizations—whether it’s developing new residential areas, constructing bridges and tram lines, or delivering cruise ships and other complex solutions. As projects grow more complex and interconnected, organizations are increasingly seeking ways to implement them more efficiently, sustainably, and collaboratively within dynamic project networks.

Project management research has traditionally been practice-oriented, driven by the goal of improving project execution across diverse contexts. Over time, the field has evolved significantly. What began as a focus on cost-effective implementation has expanded into a broader inquiry into how projects can generate sustainable value throughout their entire lifecycle—from design and planning to operations. Today, there is a vibrant international academic community advancing this research, and it is increasingly clear that projects will play a pivotal role in addressing global challenges and steering societies toward more sustainable futures.

In the Nordic Superblocks as Decarbonization Catalysts (NSDC) research project, the focus is on the construction industry and the development of the built environment—a traditional yet critical domain for project management. In collaboration with practitioners, researchers aim to explore new, more sustainable approaches to managing construction projects. However, the sector remains conservative and heavily regulated, making innovation difficult in both public and private contexts. Large-scale projects, in particular, have a history of exceeding budgets and timelines, and are often marked by opportunistic behavior rather than a shared commitment to common goals and long-term vision.

Governance structures to solve challenges of construction projects

One approach to addressing the management challenges of construction projects is through the careful design of project governance structures. In essence, project governance refers to the set of activities, guidelines, and rules that shape how projects are planned, executed, and managed across participating organizations. A range of governance mechanisms can be employed to support project success, including formal tools such as contracts, guidelines, and reporting systems, as well as informal mechanisms like goal alignment and trust-building practices. Research acknowledges that there is no one-size-fits-all solution to project governance; instead, governance structures must be thoughtfully designed and tailored to the specific needs and context of each project.

In other words, it is not enough to focus solely on how a project is implemented; project governance also considers how projects are managed across their entire lifecycle—from one phase to the next. A central aim of the NSDC initiative is to explore new approaches to governing superblock projects throughout this lifecycle. This means involving key stakeholders already in the planning phase to ensure value creation for all parties—from private sector companies and city authorities to the residents who will ultimately inhabit these environments.

Promising insights from the NSDC case studies

In the NSDC initiative, we have examined a variety of cases, each demonstrating different approaches to project governance. Some are more company-led, where a single firm takes primary responsibility for developing an entire block—such as the Kotikatu365 in Kuopio. Other cases involve public–private collaboration, where new residential areas are co-developed with multiple partners but primarily led by the city, as seen in the Kangas area in Jyväskylä.

Buildings in the Milano 2 area. Photo by researcher Chiara Ogheri

We also explored international examples, such as the Milano2 housing area in Italy, developed in the 1970s. In this case, governance structures extend into the operational phase—when residents are already living in the area. A dedicated organizational body, called Il Comprensorio, manages many aspects of daily life, contributing to the area’s continued value for residents even decades later. Another example is the Hiedanranta development in Tampere, where a city-owned company has been established to govern the development project. This separate entity represents the city but operates with the autonomy and market orientation of a private company, allowing for more agile and responsive decision-making in the real estate sector.

When insights from these case studies and broader project discussions are brought together, one message becomes clear: the governance of superblocks must be designed from the very beginning. A strong emphasis should be placed on aligning goals among stakeholders to ensure that all parties are moving in the same direction. This requires the early involvement of relevant actors (both organizations and individuals) and the establishment of a shared vision for the project. As one interviewee aptly noted, “The best time to plan, involve, and commit actors to the project is when the paper is still empty.”

This early alignment is especially critical in block-level developments involving multiple contractors and shared responsibilities—such as common yards and communal spaces. Recent discussions around the use of project alliancing as a governance mechanism in superblock projects offer promising insights. However, these approaches must be carefully tailored to the specific needs and context of each project. Ultimately, flexibility is essential throughout the project lifecycle, allowing governance structures, goals, and plans to adapt as needed.

Matias Ståhle

Senior Research Fellow, projektiliiketoiminta

Tampere University