Personal Resilience in Project Management 2 - TV Edit 1a.pdf
Effective governance
1. Effective Governance
of Change
Martin Samphire and Andy Murray
14th January 2013
#APMGovernance
@APMGovernance
www.apm.org.uk/group/apm-governance-specific-interest-group
2. APM Presenters
Martin Samphire Andy Murray
MAPM MAPM, PPM RC
MIOD MIOD, C.Dir
Chairman of APM Governance SIG APM Governance SIG Committee Member
APM Portfiolio Mgmt SIG Committee Member Contributor – PRINCE2, P3M3, APMBoK
Owner and MD – 3pmxl Ltd Director – Outperform UK Ltd
Sectors – FS, police, defence, energy Sectors – IT, Transport, Local Government
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3. Webinar Objectives
To provide a practical overview of
applying simple governance principles
to improve decision-making
effectiveness and efficiency for project
management in your organisation.
4. Webinar Etiquette
By default we will mute all participants when the presenters
are speaking. Please use the chat to get the facilitator‟s
attention if you are having any issues.
Please use the chat to ask questions or to make comments
throughout the presentation. The facilitator will summarise
these for the presenters.
If the presenters want to ask the group a question, you will
all be un-muted. To avoid talking over other participants, the
presenter will invite specific participants to speak.
There will be a short Q&A session at the end
For further discussions we will be using #APMGovernance
5. Webinar Content
APM Governance SIG Introduction
What is Governance of Project
Management
Effective Governance of Change
Summary & Questions
6. APM mission
Working collaboratively, create new standards and
knowledge and enhance their application amongst
individuals and organisations, such that all projects
succeed.
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7. Governance SIG objectives
Be the UK focus
Advance understanding
Contribute to good practice
Influence national and international standard making
authorities
Influence those operationally responsible
Develop ambassadors and exemplars of excellence
….in the governance of project management (change)
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8. Governance SIG activities
Engagement – CxO level and APM
members
Governance Benchmarking Group
Conferences and Seminars
Publications
Development (of Governance material)
Influence of and contribution to standards
9. GovSIG – Publications to date
Co-Directing Change Sponsoring Change Directing Change
2007 2009 2nd edition 2011
Free to APM members at www.apm.org.uk/memberdownloads
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10. Webinar Content
APM Governance SIG Introduction
What is Governance of Project
Management
Effective Governance of Change
Summary & Questions
11. Corporate Governance definitions
OECD IOD Independent
Corporate governance A governance framework Commission on Good
involves a set of Governance in Public
should ensure that
relationships between a Services
corporate boards
company’s effectively monitor The function of
management, its board, its governance is to ensure
shareholders and other managerial performance
stakeholders. and achieve an equitable that an organisation or
return for shareholders – partnership fulfils its
Corporate governance also overall purpose, achieves
reinforcing the values of
provides the structure
fairness, transparency, acc its intended outcomes for
through which the
objectives of the company ountability and citizens and service users,
are set, and the means of responsibility. and operates in an
attaining those objectives effective, efficient and
and monitoring ethical manner.
performance are
determined.
12. PM Governance definitions
Project Project Management Governance – APM
Governance - ISO
21500
The governance of project management
Governance is the concerns those areas of corporate governance
framework by which
that are specifically related to project activities.
an organization is
directed and Effective governance of project management
controlled. Project ensures that an organization’s project portfolio is
governance includes aligned to the organization’s objectives, is
but is not limited to
those areas of delivered efficiently, and is sustainable.
organizational Governance of project management also
governance that are supports the means by which the board and
specifically related to
other major project stakeholders exchange
project activities.
timely, relevant and reliable information.
13. Change in context
Vision Portfolio Management
“Doing the right
Mission projects”
Strategy &
Objectives
Programme & Project
Operational Portfolio Mgmt – Management
Planning & Mgmt Definition &
“Doing the projects
Monitoring
right”
Operational Mgmt Programme and Project
of on-going operations Mgmt of authorised
(BAU) P&Ps
Organisational and External Resources delivering tasks
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14. Factors in project failures (OGC)
1. Lack of a clear link between the project and the organisation‟s key
strategic priorities, including agreed measures of success.
2. Lack of clear senior management and ministerial ownership and
leadership
3. Lack of effective engagement with Stakeholders
4. Lack of skills and proven approach to project management and risk
management.
5. Lack of understanding of and contact with the supply industry at senior
levels within the organisation.
6. Evaluation of proposals driven by initial price rather than long-term
value for money (especially securing the delivery of business benefits).
7. Too little attention to breaking development and implementation into
manageable steps.
8. Inadequate resources and skill to deliver the total delivery portfolio.
16. Consistent failures: need for a new focus
Heavy investment in change
delivery framework, tools and
skills (PM focus)
Success rate for projects not
improved
Need new “medicine”
Could that be more focus on
Exec / Directors / Sponsor
roles?
Successful Governance
leading to more successful
Delivery?
17. Webinar Content
APM Governance SIG Introduction
What is Governance of Project
Management
Effective Governance of Change
Summary & Questions
18. Directing Change from APM
• Portfolio direction
• Sponsorship
• PM Capability
• Disclosure and
reporting 18
19. APM Governance principles
1. The board has overall responsibility for governance of project
management.
2. The organisation differentiates between the projects and non-project
based activities
3. The roles, responsibilities and performance criteria for the governance
of project management are clearly defined.
4. Disciplined governance arrangements, supported by appropriate
methods, resources and controls, are applied throughout the project
lifecycle.
5. Every project has a sponsor.
6. There is a demonstrably coherent relationship between the overall
business strategy and the project portfolio.
7. All projects have an approved plan containing authorisation points at
which the business case is reviewed and approved. Decisions made at
authorisation points are recorded and communicated.
20. APM Governance principles
8. Members of delegated authorisation bodies have sufficient representation,
competence, authority and resources to enable them to make appropriate
decisions.
9. The project business case is supported by relevant and realistic information
that provides a reliable basis for making authorisation decisions.
10. The board or its delegated agents decide when independent scrutiny of
projects and project management systems is required, and implement such
scrutiny accordingly.
11. There are clearly defined criteria for reporting project status and for the
escalation of risks and issues to the levels required by the organisation.
12. The organisation fosters a culture of frank internal disclosure of project
information.
13. Project stakeholders are engaged at a level that is commensurate with their
importance to the organisation and in a manner that fosters trust
14. Projects are closed when they are no longer justified as part of the
organisation‟s portfolio
21. 1. The board has overall responsibility for governance of project management.
2. The organisation differentiates between the projects and non-project based activities
3. The roles, responsibilities and performance criteria for the governance of project management are
clearly defined.
4. Disciplined governance arrangements, supported by appropriate methods, resources and controls,
are applied throughout the project lifecycle.
5. Every project has a sponsor.
6. There is a demonstrably coherent relationship between the overall business strategy and the project
portfolio.
7. All projects have an approved plan containing authorisation points at which the business case is
reviewed and approved. Decisions made at authorisation points are recorded and communicated.
8. Members of delegated authorisation bodies have sufficient representation, competence, authority
and resources to enable them to make appropriate decisions.
9. The project business case is supported by relevant and realistic information that provides a reliable
basis for making authorisation decisions.
10. The board or its delegated agents decide when independent scrutiny of projects and project
management systems is required, and implement such scrutiny accordingly.
11. There are clearly defined criteria for reporting project status and for the escalation of risks and issues
to the levels required by the organisation.
12. The organisation fosters a culture of frank internal disclosure of project information.
13. Project stakeholders are engaged at a level that is commensurate with their importance to the
organisation and in a manner that fosters trust
14. Projects are closed when they are no longer justified as part of the organisation‟s portfolio
22. Number 1 principle organisations
struggle with – poll result
14. Stopping Projects
13. Stakeholders engagement and trust
12. Culture of frank internal disclosure
11. Reporting project status
10. independent scrutiny
9. Project business case
8. Competence, authority and resources of decision-makers
7.Authorisation points
6. Portfolio alignment
5.Project sponsorship
4. Project lifecycle control
3.Governance responsibilities clearly defined.
2.projects and non-project differentiation
1.Board responsibility
0 5 10 15 20 25 30 35
23. Governance of project
management involves…
Engaging with stakeholders to ensure change supports
organisational objectives (alignment)
Defining where what type of change decisions can be most
effectively made (golden thread of delegation)
Defining when critical change decisions need to be made
and those involved in making them (decision gates)
Ensuring transparency of change decisions/actions and
communicating their outcome (reporting)
Ensuring appropriate resources are in place (competence)
Corroborating through independent review (assurance)
25. Governance isn‟t just what the project
board does!
CEO Board NED
Stakeholders
Directors
Risk
Partners
Portfolio Mgrs
Mgrs Sponsors
Programme Functional
Mgrs Mgrs
Assurance Project Suppliers
Mgrs Mgrs
They all need to be competent in their change role
26. Project Governance and GoPM
Project/Programme Level Organisational Level
Project board regularly chaired by a sponsor Individuals stay in sponsor role throughout each
project lifecycle
Governance structure for a project defined Sponsors are accredited and accountable
Progress reporting for a project is accurate and Projects report against a common template.
timely Exception reports available at executive level
There is a coherent project plan Projects are prioritised in line with strategic
objectives
Project stakeholders are involved in the The board directs the change agenda
direction of a project
There is an integrated assurance and approvals The board has oversight of the gate review
plan for a project programme – individual executives are
intimately involved in reviews
The project management team is competent All project players are trained, assessed against
and fully resourced a competency framework, accredited?
Capacity is balanced against demand
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27. Improving governance of change
Do a governance audit
– Use the „Directing Change‟ principles
– Understand your governance metrics
(time taken to make decisions, recycling rates for decision
requests, number of layers between requestor and decision-
maker, number of poor decisions, cost of poor decisions)
– Benchmark your metrics
Target to improve both effectiveness and efficiency
Treat governance as a system starting at the top and flowing
down (how are board decisions made and accounted for?)
Integrate Governance of Change with Corporate Governance (it
is not an add on)
Drive competence and performance at all layers and all
elements
28. Example Analysis
Frequency
Our Best Case
Our Worst Case
Industry Benchmark
Our Average
40% 10%
months
2.5 3 5.5 12
Unplanned waste
planned
waste
Project delays
Embedded cost of “standing army”
Breeds wrong behaviours – programmes hang on to resources / approval
sought too early / work is carried out at risk / programmes seek authority in Programmes risk losing resources
bigger tranches
The above covers the cost of conformance, but the cost of non-conformance is also
significant, e.g. Costs associated with rescuing contracts awarded before scope fixity
29. Webinar Content
APM Governance SIG Introduction
What is Governance of Project
Management
Effective Governance
Summary & Questions
30. Benefits of adopting a formal
approach
Assurance that robust governance requirements are applied
across the projects managed in their organisation
Optimise their portfolio of projects
Avoid many of the common failures in project and
programme performance
Improve relationships with staff, customers and suppliers
Minimise risks to the organisation arising from projects
Maximise the benefits to be realised from projects
Assure the continued development of the organisation
31. Thank You
The Governance SIG is always seeking new members.
See the SIG pages on APM website for details.
www.apm.org.uk/group/apm-governance-specific-interest-group
Any questions?
32. Questions Asked during webinar
I like the message but how do project manager level staff achieve what has been suggested
So what else could we be doing to make the connections with senior leaders whose focus tends to major on strategic issues?
For me I always place such matters in the risk log and highlight to snr mgr's. BUT oftern they are ignored. This is beyond stageholder mgr's
How do we ensure that lessons are learned from governance failures in major projects and programmes? I was heavily involved with the Galileo
satellite navigation project for ESA/EU and have many insights into what went wrong but have found difficulty in finding anybody in the UK
Government with an interest in understanding this from a governance (as opposed to political) point of view?
Is there a tool kit which could be supplied to sponsors/senior management etc
Surley there must be a balance for a project and over-governance becomes a bigger problem??
Politically, effective governance can put a magnifying glass over other dis-functional parts of an organisation and can be as unwelcome as the impact
of poor governcance!
Who would normally do the independant review?
Corporate PMO perhaps doing independent review
How do you encourage investment in governance, i.e. skills & resources?
Can you expand on how to benchmark the metrics or did you mean baseline metrics
Tip : Anyone who is part of an organisation with an internal audit function should find they can be very helpful in addressing governance of project
management issues. They should have seen examples of any significant governance failings.
There was a benchmark for best case - 3months, but was is the average industry benchmark for decision making?
Have all corporate member organisations been invited to take part in benchmark studies?
you said there are different functions of PMO, do you have anything on main principles of PMO dept.
Going back to a previous slide share what is meant by the term 'accredited' Sponsor.?
What do you think the interdependencies are between project governance and programme governance (when considering strategy, delivery,
objectives etc)
My Question: Benefits Management delivery plays a key role in a succesfull outcome to the corporate road map. But this is outside the scope of a
project and in the hands of the stakeholders. How do we ensure once a product has been delivered into organisation this is achieved successfully?
Going back a few slides, can you expand on how to benchmark the metrics or did you mean baseline the metrics
Good sponsors are key to project success, what tips do you have for sponsor engagement and how can a PM influence this?
In an organisation where there are a number of different federated business units with different cultures (some running agile projects other taking a
more waterfall approach) but where there are also central functions ñ IT, Finance etc how can you align an approach to governance?
33. For follow-up contact
Martin Samphire Andy Murray
msamphire@3pmxl.com andy.murray@outperform.co.uk
+44 7798 700314 +44 7776 301602
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Notas del editor
Foremost professional institute in UK. PMI in US
Andy and I represent APM SIG Governance SIG formed nearly 10 years ago. The APM is committed to influence a transformation in the way that governance is applied. Our vision is a landscape (both UK and internationally) within which organisations have adopted good practice in the governance of project management with impressive and targeted results from their portfolio of project and change initiatives. The GovSIG has adopted the following rationale for the adoption of good governance: Achieving Change Successfully with Confidence and Control The target audience for the SIG has tended to be Board members and their equivalents, those that sponsor projects and programmes, portfolio directors, company/organisation secretaries and other senior executives (CxOs).Andy will be explaining more about the definitions
Created the first edition of Directing Change 7 years ago and went on to publish Sponsoring Change and Co-Directing Change. 60000 thousand copies downloaded / sold. Well regarded advice and guidance on how to go about applying good governance practice to the Management of Projects. 2nd edition Directing change is ranked 53,000 in amazon.co.uk This is a very good ranking (there are 3m books on Amazon….)Over 60,000 copies of the first edition of this guide are in use internationally by boards of directors, public sector governing bodies, their advisers, academics, trainers and the next generation of senior management currently studying management and business studies. Great Feedback of its use for training, performance improvement, auditing and standard s development in continental Europe, In eastern Europe, in USA and Canada and as far afield as Australia.
Governance very topical – with good cause. US Sarbanes-Oxley Act 2002UK Companies Act, 2008UK Corporate Governance Code, June 2010Impact of project outcome on organizational reputation Financial squeezeQuality and transparency of decision makingRelationships
ISO std coming out later this year2 elements to consider
Many organisations – e.g. investment bankGovernance of individual projects – investment checks and resourcing. Making decisions on a transactional basis – sub-optimal using template + min criteria. Doesn’t look at in the context of the whole portfolio – where best to invest – and by definition some we won’t bother with even if they pass minimum criteriaWant best return from a suite of investments Illustrates difference in Project vs PM governance (portfolio)Maybe come back to in panel conversation
Some may be familiar – old but still a source of good learningTaurus:Extensive cost and time overrunsPoor control of requirementsWarring factions – parochial objectives (280 financial institutes)Design by committeeUnclear reporting chainsFiReControl“This is one of the worst cases of project failure that the committee has seen in many years. “Success turned on cooperation of locally accountable and independent Fire and Rescue Services – ODPM failed to recogniseRushed without proper understanding of cost and riskFrequent departures of senior staff also contributed to weak management and oversight of the projectDidn’t apply basic project approval checks and balances – took decisions before a business case, project plan or procurement strategy had been developed and tested among Fire ServicesPublic Accounts Committee stated “The Department demonstrated poor judgement in approving the project and failed to provide appropriate checks and challenge”Could be viewed (was) as single project, but culture / context + stakeholders not managedLessonsSingle sponsorship with authority / accountabilityPragmatic requirementsShort delivery steps – break it down
PM – have applied lots of investment to PM/PjMgrsNew medicine – to focus outside simply project/programme and delivery skills – governance and other rolesNeeds Exec Sponsor to have accountability for overall governance – sponsor at apex of goveranance
Focus on GoPMAlso on management systemEffectiveness of governanceEfficiency of governanceOverall outcomes of governance
Please vote
Many players – a system with multiple playersEveryone needs to play their part – can’t win the premiership just with a world class goalkeeper Sponsors and exec have key roles – influence culture et al.