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Governance – Ensuring the Effectiveness of Project Management PM Showcase, Adelaide, 6 November 2009
Objectives and Contents ,[object Object],Copyright © START[pm] consulting 2009 Explore the  rationale  and  function  of  Governance   in  the  Enterprise , and in  Portfolio, Program  and  Project Management Establish the  relationship  between  Governance  and effective  Project Management Evaluate how  Project Managers  can  add value  through  fulfilling  their  Governance  obligations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Copyright © START[pm] consulting 2009
A Need for Governance, now more than ever ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],So...why, in the eyes of many, do Project and Program Management struggle to fulfil their governance obligations? Copyright © START[pm] consulting 2009
Re-thinking PM in the context of Governance ,[object Object],[object Object],Copyright © START[pm] consulting 2009 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Copyright © START[pm] consulting 2009
A New Model for Effective Project Management Value Proposition for Effective Project Management C ontrol B ehave A rticulate … the  value of  project management endeavours in terms of  delivering to business outcomes … as a business person,  focussed upon value generation,  not just ‘technical’ outputs … the resources (time, capital)  to achieve the mandated deliverables  within set constraints Tenets “ Project Management is an integrated set of  specialised management disciplines  focused upon the application of  scare resources  to  achieve  specific, quantifiable  business outcomes within  defined  constraints ” Copyright © START[pm] consulting 2009 Copyright © START[pm] consulting 2009
A New Model for Effective Project Management Value Proposition for Effective Project Management C ontrol B ehave A rticulate ,[object Object],[object Object],[object Object],Dimensions ,[object Object],[object Object],[object Object],Focus of Tenets ,[object Object],Focus of Dimension ,[object Object],Copyright © START[pm] consulting 2009 Copyright © START[pm] consulting 2009 Risk Management Risk Management Value Delivery  Management Value Delivery  Management Governance Governance Stakeholder Management Stakeholder Management Governance Value Delivery Management Risk Management ,[object Object],[object Object],Stakeholder Management
Stakeholder, Risk and Value Delivery Management Copyright © START[pm] consulting 2009 Containment (or promotion) of stakeholder power and influence over outcomes Mechanisms applied to ensuring ongoing, appropriate engagement of each of the stakeholders, e.g. communication channels Analysis and mapping of the stake to deliverables Understanding of the core stake of each of the stakeholders in the project, program  or enterprise T: arising from appropriateness of tactical initiatives and programmes (which give rise to projects), to realize the intended objectives  O: arising from the current and target operational environments, such as readiness for change, and ability to adapt while maintaining operational integrity S: generally originating in the organisation’s external environment, reflecting the feasibility and/or appropriateness of proposed strategies P: arising from the project parameters and characteristics e.g. project delivery system impacting ability to produce the outputs necessary to deliver the desired outcomes The metrics and processes which allow the value generated to be measured, recognised and responded to. Addresses how inputs (resources) are utilised to deliver the desired outputs and outcomes. Captures, prioritises and reconciles the diverse definitions and expectations of “value”. Enabling outputs to be operationalised to generate value in the target environment. Copyright © START[pm] consulting 2009 Copyright © START[pm] consulting 2009 Copyright © START[pm] consulting 2009 Impact Management Stake identification Engagement & Integration Stake Analysis and Mapping Operational Strategic Tactical  Project Allocation & Alignment Value Definition Measurement & Control Realization
Focus on Governance The ‘ what ’: Supports appropriate  articulation  of project status through consistency of data and information presented The ‘ who : Supports the consistency of individuals’  behaviours  ( “we know what we are supposed to do” ) The ‘ how ’: Supports consistency of  controls  (application of policies; the internal and the external interfaces and their management) The ‘ where’  and the ‘ when’  Defines  situational mechanisms  that bind the other elements to effect Governance ,[object Object],[object Object],Copyright © START[pm] consulting 2009 Copyright © START[pm] consulting 2009 Structures Standards Roles &  Responsibilities Policies, Processes and Procedures
Copyright © START[pm] consulting 2009
Governance is the ‘engine’ ... ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © START[pm] consulting 2009 Copyright © START[pm] consulting 2009 Governance Value Delivery Management Risk Management Stakeholder Management
...at the heart of project integration ,[object Object],[object Object],[object Object],Copyright © START[pm] consulting 2009 Governance Value Delivery Management Risk Management Stakeholder Management
Governance is critical for “ Change Management ” ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © START[pm] consulting 2009 Copyright © START[pm] consulting 2009
Copyright © START[pm] consulting 2009
Governance is applied at different levels ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Structures Standards Roles & Responsibilities Policies, Processes and Procedures Copyright © START[pm] consulting 2009 Copyright © START[pm] consulting 2009
Governance is applied at different levels Programme / Portfolio Project Enterprise ,[object Object],[object Object],Effective Delivery Governance ensures that implications are cascaded down through all levels of change initiatives. ,[object Object],[object Object],Effective Delivery Governance accommodates feedback from the  organisation coal-face  through ensuring necessary lines of communication  are in place. Structures Standards Roles & Responsibilities Policies, Processes and Procedures Copyright © START[pm] consulting 2009 Copyright © START[pm] consulting 2009
Governance is applied at different levels ,[object Object],Structures Standards Roles & Responsibilities Policies, Processes and Procedures ,[object Object],Copyright © START[pm] consulting 2009
Governance at the  Project  Level ,[object Object],[object Object],[object Object],[object Object],… inherited from / aligned with… Structures Standards Roles & Responsibilities Policies, Processes and Procedures Copyright © START[pm] consulting 2009 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Governance at the  Program/Portfolio  Level ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],… inherited from / aligned with… Structures Standards Roles & Responsibilities Policies, Processes and Procedures Copyright © START[pm] consulting 2009 ,[object Object],[object Object],[object Object],[object Object],[object Object]
Governance at the  Enterprise  Level ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Structures Standards Roles & Responsibilities Policies, Processes and Procedures Copyright © START[pm] consulting 2009
Governance in Practice - Example Portfolio Copyright © START[pm] consulting 2009 Enterprise Program Office “ World Leader in Claims processing” Develop A/P – Assessment system real-time interface Assessment team re-structure and training PMO PSO Board of Directors Portfolio Management Project Board Program Steering Committee Project Team Strategy Assessment Dept BPR Prioritisation Mandates Business Case Scopes ,[object Object],[object Object],[object Object],Structures Standards Roles &  Responsibilities Policies, Processes and Procedures ... Roadmap Enterprise Architecture
Risk Management Risk Management Value Proposition for Effective Project Management Control Behave Articulate Risk Management ,[object Object],[object Object],[object Object],Governance: application of Tenets Copyright © START[pm] consulting 2009 Copyright © START[pm] consulting 2009 Value Delivery Management Value Delivery Management Stakeholder Management Governance Stakeholder Management Stakeholder Management Governance Value Delivery Management Governance
[object Object],[object Object],[object Object],Bringing it together: “Actualizing” is the key Copyright © START[pm] consulting 2009
Copyright © START[pm] consulting 2009
[object Object],[object Object],[object Object],Articulate: It’s all about the Value... Copyright © START[pm] consulting 2009 © START[pm] consulting 2009 Value Proposition for Effective Project Management C ontrol A rticulate B ehave
[object Object],[object Object],Articulate: the Big Picture... ,[object Object],[object Object],[object Object],Copyright © START[pm] consulting 2009 © START[pm] consulting 2009 Governance Requirement :  Project managers have to ensure appropriate,  contextual articulation  and representation of the  project status . Effective Project Management Implication :   Understand  how the  parts of a project fit together  to create the whole;  Articulate the  link  from the external ( big picture )  to  the internal ( detail ), and vice versa. Value Proposition for Effective Project Management C ontrol A rticulate B ehave
[object Object],[object Object],[object Object],Behaviour: Actions, as well as words Copyright © START[pm] consulting 2009 © START[pm] consulting 2009 Value Proposition for Effective Project Management C ontrol A rticulate B ehave
Behaviour: Keeping the balance… ,[object Object],[object Object],Copyright © START[pm] consulting 2009 © START[pm] consulting 2009 Governance Requirement :  Project managers have to satisfy themselves as to the  relevance and materiality of issues  to project conduct and outcomes. Effective Project Management Implication :  Project Managers need to  understand what’s happening  in their projects; they just  don’t  need to  spend  all their time  on the detail . Value Proposition for Effective Project Management C ontrol A rticulate B ehave
[object Object],[object Object],[object Object],Control: Knowing where the buck stops Copyright © START[pm] consulting 2009 ,[object Object],[object Object],[object Object],[object Object],© START[pm] consulting 2009 Value Proposition for Effective Project Management C ontrol A rticulate Behave
Control: Beware of Prescriptions… 1 4 3 3 1 2 3 4 ,[object Object],[object Object],2 X Copyright © START[pm] consulting 2009 © START[pm] consulting 2009 Governance Requirement :  Mature application  of project management methods and processes  to assure control  is  executed consistently  to the standards mandated by governance. Effective Project Management Implication :  Project Managers need to “ engage brain ” in applying processes to control their projects; their  ‘value add’  lies in overlaying  sound judgement  upon the process. Value Proposition for Effective Project Management C ontrol A rticulate Behave
Copyright © START[pm] consulting 2009
Conclusions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],“ In business , words are words; explanations are explanations, promises are promises, but  only performance is reality .” ,[object Object],[object Object],Copyright © START[pm] consulting 2009
Questions? ,[object Object],[object Object],[object Object],Copyright © START[pm] consulting 2009 E-mail:  [email_address]

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Governance - Ensuring the Effectiveness of Project Management

  • 1. Governance – Ensuring the Effectiveness of Project Management PM Showcase, Adelaide, 6 November 2009
  • 2.
  • 3. Copyright © START[pm] consulting 2009
  • 4.
  • 5.
  • 6. Copyright © START[pm] consulting 2009
  • 7. A New Model for Effective Project Management Value Proposition for Effective Project Management C ontrol B ehave A rticulate … the value of project management endeavours in terms of delivering to business outcomes … as a business person, focussed upon value generation, not just ‘technical’ outputs … the resources (time, capital) to achieve the mandated deliverables within set constraints Tenets “ Project Management is an integrated set of specialised management disciplines focused upon the application of scare resources to achieve specific, quantifiable business outcomes within defined constraints ” Copyright © START[pm] consulting 2009 Copyright © START[pm] consulting 2009
  • 8.
  • 9. Stakeholder, Risk and Value Delivery Management Copyright © START[pm] consulting 2009 Containment (or promotion) of stakeholder power and influence over outcomes Mechanisms applied to ensuring ongoing, appropriate engagement of each of the stakeholders, e.g. communication channels Analysis and mapping of the stake to deliverables Understanding of the core stake of each of the stakeholders in the project, program or enterprise T: arising from appropriateness of tactical initiatives and programmes (which give rise to projects), to realize the intended objectives O: arising from the current and target operational environments, such as readiness for change, and ability to adapt while maintaining operational integrity S: generally originating in the organisation’s external environment, reflecting the feasibility and/or appropriateness of proposed strategies P: arising from the project parameters and characteristics e.g. project delivery system impacting ability to produce the outputs necessary to deliver the desired outcomes The metrics and processes which allow the value generated to be measured, recognised and responded to. Addresses how inputs (resources) are utilised to deliver the desired outputs and outcomes. Captures, prioritises and reconciles the diverse definitions and expectations of “value”. Enabling outputs to be operationalised to generate value in the target environment. Copyright © START[pm] consulting 2009 Copyright © START[pm] consulting 2009 Copyright © START[pm] consulting 2009 Impact Management Stake identification Engagement & Integration Stake Analysis and Mapping Operational Strategic Tactical Project Allocation & Alignment Value Definition Measurement & Control Realization
  • 10.
  • 11. Copyright © START[pm] consulting 2009
  • 12.
  • 13.
  • 14.
  • 15. Copyright © START[pm] consulting 2009
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25. Copyright © START[pm] consulting 2009
  • 26.
  • 27.
  • 28.
  • 29.
  • 30.
  • 31.
  • 32. Copyright © START[pm] consulting 2009
  • 33.
  • 34.