With the shift of computing paradigm from standalone, to parallel, to distributed, to grid, and now “Cloud Computing”, came new waves of issues, concerns, and challenges and a need to explore more innovative ways to govern software development activities. At present there is a lack of studies in the area of governance in cloud computing and its impact on the software development activities. This paper presents an adaptable management systems model formulated for this purpose as a result of a longitudinal case study in a large Australian IT program. The case study environment involved various agile and plan driven software development teams collaborated with each other using various lean strategies, to develop and deliver a consolidated software system in a hybrid cloud computing environment. This paper will contribute an empirical study towards literature of lean thinking, governance, and traceability models and practical guidelines for process engineers to implement governance.