From push to pull - the role of assurance in delivering capital programme outcomes by Neal Argent and Matt Henderson 19th May 2015

1. From push to pull – the role of
assurance in delivering capital
program outcomes
Presentation to the Association for Project Management
Neal Argent and Matt Henderson

2. 15 May 2015
From push to pull – the role of Assurance in delivering
capital program outcomes
Page 1
Some common perceptions of assurance
Assurance is
disruptive to
my team
They are telling me
nothing I don’t
already know
We need a
strategy to get
through the audit
We are in a period of
flux therefore can we
defer
We feel
threatened by
the review
Someone else
reviewed this
last month
The report is
too negative
It’s backward
looking and
retrospective
It’s a tick box
exercise

3. 15 May 2015
From push to pull – the role of Assurance in delivering
capital program outcomes
Page 2
Business causes of capital program failure
The program is not
affordable
Organisation is not fit for purpose
Commercial strategy
drives the wrong
behaviours
Poor data management
leads to inaccurate
reporting and bad
decisions
Gaps in program
management and controls
capability
Risk management and governance
of decisions is not effective

4. 15 May 2015
From push to pull – the role of Assurance in delivering
capital program outcomes
Page 3
Assurance as a catalyst to improve program
performance
Assurance needs to be forward looking to keep a program
out of trouble

5. 15 May 2015
From push to pull – the role of Assurance in delivering
capital program outcomes
Page 4
Profiling assurance across the lifecycle
Risk
Levelof
Assurance
Time
Ability to
influence
Expenditure
1. Outcome
Definition
2.
Feasibility
3. Concept
Design
4. Detailed
Design
5. Delivery 6. Project Close
Project
Initiation
Strategic
Business
Case
Outline
Business
Case
Full
Business
Case
/ Investment
Decision
Commissioning
Closure
Paper
Assurance effort is often focussed during delivery and yet
successful outcomes are influenced more at the front end

6. 15 May 2015
From push to pull – the role of Assurance in delivering
capital program outcomes
Page 5
The role of assurance and the 3 lines of
defence
Program assurance functions
Senior Management
Delivery
management
Corporate
audit
External audit
3rd Line:
Independent
Assurance
2nd line:
Management
Assurance
1st line:
Management
Controls*
Program and
project
management
3Lines of Defence distinguishes between management assurance
and assurance delivered independently of management

7. 15 May 2015
From push to pull – the role of Assurance in delivering
capital program outcomes
Page 6
Coordinating assurance effort across the 3
Lines of Defence
2nd
Line of Defence –
Assurance
1st
Line of Defence –
Management Controls
Project Risk profile
3rd Line of Defence –
Independent Audit
2nd
line provides support direct to 1st
line.
2nd
line provides a functional report to 3rd
line to monitor integrity of advice.
Scalable resource base
3rd Line:
Independent
Assurance
2nd line:
Management
Assurance
1st line:
Management
Controls
1. Outcome
Definition
2.
Feasibility
3.
Concept
Design
4.
Detailed
Design
5. Delivery
6. Project
Close
Risk-based
The 2nd Line of Defence should keep the 1st Line focussed
on delivery

8. 15 May 2015
From push to pull – the role of Assurance in delivering
capital program outcomes
Page 7
A risk-based approach to Assurance
1. Outcome
Definition
2. Feasibility
3. Concept
Design
4. Detailed
Design
5. Delivery 6. Project Close
Gaps and overlaps in assurance can result from an
unstructured approach

9. 15 May 2015
From push to pull – the role of Assurance in delivering
capital program outcomes
Page 8
From push to pull…
Assurance Maturity
Basic Moderate Complex / Comprehensive
► Compliance reviews
► Focus on technical /
quality assurance
► Layering of assurance
- potential assurance
gaps and overlaps
► Limited reporting and
follow-up
► Low level Board
visibility
► A ‘tick box’ exercise
► Viewed as unpopular
and disruptive
► Project Governance and
Assurance established
► Risk-based techniques
introduced
► Coordinated and
integrated assurance
planning
► ‘Continuous
Improvement’ / follow-up
techniques introduced
► Self assurance
► ‘Technical’ assurance as
a component of integrated
‘Business’ assurance
► Golden thread from
assurance to decisions.
► Value-rich analytical
techniques
(benchmarking, analytics)
► A ‘pull’ not a ‘push’
► Open transparent culture
A mature assurance approach will improve performance
resulting in a ‘pull’ from management

10. 15 May 2015
From push to pull – the role of Assurance in delivering
capital program outcomes
Page 9
Wrap up – developing capability to assure
proven ‘business’ risks
• Of 365 megaprojects, 64% are facing cost
overruns
• 73% report schedule delays
• “65% of projects failures are due to softer
aspects such as people, organisation and
governance”

11. Thank you

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