Effective Governance             of Change       Martin Samphire and Andy Murray               14th January 2013          ...
APM PresentersMartin Samphire                            Andy MurrayMAPM                                       MAPM, PPM R...
Webinar Objectives To provide a practical overview of  applying simple governance principles  to improve decision-making ...
Webinar Etiquette By default we will mute all participants when the presenters  are speaking. Please use the chat to get ...
Webinar Content APM Governance SIG Introduction What is Governance of Project  Management Effective Governance of Chang...
APM missionWorking collaboratively, create new standards andknowledge and enhance their application amongstindividuals and...
Governance SIG objectives Be the UK focus Advance understanding Contribute to good practice Influence national and int...
Governance SIG activities Engagement – CxO level and APM  members Governance Benchmarking Group Conferences and Seminar...
GovSIG – Publications to dateCo-Directing Change        Sponsoring Change            Directing Change2007                 ...
Webinar Content APM Governance SIG Introduction What is Governance of Project  Management Effective Governance of Chang...
Corporate Governance definitions  OECD                         IOD                          IndependentCorporate governanc...
PM Governance definitions Project                  Project Management Governance – APM Governance - ISO 21500             ...
Change in context                             Vision                 Portfolio Management                                 ...
Factors in project failures (OGC)1. Lack of a clear link between the project and the organisation‟s key   strategic priori...
Examples of poor governance                              15
Consistent failures: need for a new focus                       Heavy investment in change                        deliver...
Webinar Content APM Governance SIG Introduction What is Governance of Project  Management Effective Governance of Chang...
Directing Change from APM                  •   Portfolio direction                  •   Sponsorship                  •   P...
APM Governance principles1.   The board has overall responsibility for governance of project     management.2.   The organ...
APM Governance principles8.    Members of delegated authorisation bodies have sufficient representation,      competence, ...
1.    The board has overall responsibility for governance of project management.2.    The organisation differentiates betw...
Number 1 principle organisations     struggle with – poll result                                     14. Stopping Projects...
Governance of projectmanagement involves… Engaging with stakeholders to ensure change supports  organisational objectives...
In practice….                  Alignment      Delegation    Competence   Decision   Reporting   Assurance                 ...
Governance isn‟t just what the project board does!                              CEO      Board        NED     Stakeholders...
Project Governance and GoPMProject/Programme Level                            Organisational LevelProject board regularly ...
Improving governance of change Do a governance audit    – Use the „Directing Change‟ principles    – Understand your gove...
Example Analysis                     Frequency                                          Our Best Case                     ...
Webinar Content APM Governance SIG Introduction What is Governance of Project  Management Effective Governance Summary...
Benefits of adopting a formalapproach Assurance that robust governance requirements are applied  across the projects mana...
Thank YouThe Governance SIG is always seeking new members.    See the SIG pages on APM website for details. www.apm.org.uk...
Questions Asked during webinar   I like the message but how do project manager level staff achieve what has been suggeste...
For follow-up contactMartin Samphire         Andy Murraymsamphire@3pmxl.com     andy.murray@outperform.co.uk+44 7798 70031...
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Effective governance

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  • 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.
  • Do not spend too long on this.
  • Effective governance

    1. 1. Effective Governance of Change Martin Samphire and Andy Murray 14th January 2013 #APMGovernance @APMGovernancewww.apm.org.uk/group/apm-governance-specific-interest-group
    2. 2. APM PresentersMartin Samphire Andy MurrayMAPM MAPM, PPM RCMIOD MIOD, C.DirChairman of APM Governance SIG APM Governance SIG Committee MemberAPM Portfiolio Mgmt SIG Committee Member Contributor – PRINCE2, P3M3, APMBoKOwner and MD – 3pmxl Ltd Director – Outperform UK LtdSectors – FS, police, defence, energy Sectors – IT, Transport, Local Government 2
    3. 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. 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. 5. Webinar Content APM Governance SIG Introduction What is Governance of Project Management Effective Governance of Change Summary & Questions
    6. 6. APM missionWorking collaboratively, create new standards andknowledge and enhance their application amongstindividuals and organisations, such that all projectssucceed. 6
    7. 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) 7
    8. 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. 9. GovSIG – Publications to dateCo-Directing Change Sponsoring Change Directing Change2007 2009 2nd edition 2011Free to APM members at www.apm.org.uk/memberdownloads 9
    10. 10. Webinar Content APM Governance SIG Introduction What is Governance of Project Management Effective Governance of Change Summary & Questions
    11. 11. Corporate Governance definitions OECD IOD IndependentCorporate governance A governance framework Commission on Goodinvolves a set of Governance in Public should ensure thatrelationships between a Services corporate boardscompany’s effectively monitor The function ofmanagement, its board, its governance is to ensureshareholders and other managerial performancestakeholders. and achieve an equitable that an organisation or return for shareholders – partnership fulfils itsCorporate governance also overall purpose, achieves reinforcing the values ofprovides the structure fairness, transparency, acc its intended outcomes forthrough which theobjectives of the company ountability and citizens and service users,are set, and the means of responsibility. and operates in anattaining those objectives effective, efficient andand monitoring ethical manner.performance aredetermined.
    12. 12. PM Governance definitions Project Project Management Governance – APM Governance - ISO 21500 The governance of project managementGovernance is the concerns those areas of corporate governanceframework by which that are specifically related to project activities.an organization isdirected and Effective governance of project managementcontrolled. Project ensures that an organization’s project portfolio isgovernance includes aligned to the organization’s objectives, isbut is not limited tothose areas of delivered efficiently, and is sustainable.organizational Governance of project management alsogovernance that are supports the means by which the board andspecifically related to other major project stakeholders exchangeproject activities. timely, relevant and reliable information.
    13. 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 tasks13
    14. 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 leadership3. Lack of effective engagement with Stakeholders4. 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.
    15. 15. Examples of poor governance 15
    16. 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. 17. Webinar Content APM Governance SIG Introduction What is Governance of Project Management Effective Governance of Change Summary & Questions
    18. 18. Directing Change from APM • Portfolio direction • Sponsorship • PM Capability • Disclosure and reporting 18
    19. 19. APM Governance principles1. The board has overall responsibility for governance of project management.2. The organisation differentiates between the projects and non-project based activities3. 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. 20. APM Governance principles8. 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 trust14. Projects are closed when they are no longer justified as part of the organisation‟s portfolio
    21. 21. 1. The board has overall responsibility for governance of project management.2. The organisation differentiates between the projects and non-project based activities3. 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 trust14. Projects are closed when they are no longer justified as part of the organisation‟s portfolio
    22. 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 case8. 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. 23. Governance of projectmanagement 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)
    24. 24. In practice…. Alignment Delegation Competence Decision Reporting Assurance (objectives) (authority) GatesShareholdersCompany BoardProgrammeBoard (+SRO)ProgrammeManagerProject BoardProject Manager
    25. 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 MgrsThey all need to be competent in their change role
    26. 26. Project Governance and GoPMProject/Programme Level Organisational LevelProject board regularly chaired by a sponsor Individuals stay in sponsor role throughout each project lifecycleGovernance structure for a project defined Sponsors are accredited and accountableProgress reporting for a project is accurate and Projects report against a common template.timely Exception reports available at executive levelThere is a coherent project plan Projects are prioritised in line with strategic objectivesProject stakeholders are involved in the The board directs the change agendadirection of a projectThere is an integrated assurance and approvals The board has oversight of the gate reviewplan for a project programme – individual executives are intimately involved in reviewsThe project management team is competent All project players are trained, assessed againstand fully resourced a competency framework, accredited? Capacity is balanced against demand 26
    27. 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. 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 / approvalsought too early / work is carried out at risk / programmes seek authority in Programmes risk losing resourcesbigger 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. 29. Webinar Content APM Governance SIG Introduction What is Governance of Project Management Effective Governance Summary & Questions
    30. 30. Benefits of adopting a formalapproach 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. 31. Thank YouThe 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. 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 mgrs. BUT oftern they are ignored. This is beyond stageholder mgrs 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. 33. For follow-up contactMartin Samphire Andy Murraymsamphire@3pmxl.com andy.murray@outperform.co.uk+44 7798 700314 +44 7776 301602 33

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