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Joint projects and the
governance conundrum
1
APM Governance SIG
27th January 2017
2
Agenda
 Introduction
 About APM Governance SIG
 Overview of the ‘Governance of Co-owned Projects’
 Upcoming events
Introductions
Martin Samphire – host
Andy Murray - speaker
3
Andy.murray@rsmuk.com
07776 301602
https://uk.linkedin.com/in/andymurray
Andy Murray
Andy is a chartered director and mana...
About the
APM Governance SIG
5
Governance SIG
Objectives
 Be the UK focus
 Advance understanding
 Contribute to good practice
 Influence national and...
Directing Change
2nd edition 2011
7
Governance of Co-
owned Project
2017
Sponsoring Change
2009
Free to APM members at www...
Overview of
the new guide
8
Governance of Co-owned Projects
 What are co-owned projects/programmes
 Why traditional governance models struggle
 Gov...
Co-owned Projects: Context
 There are numerous benefits of working on joint projects
 Often organisations are participat...
Co-owned Projects: Context
11
Governance of project
management organisation
2
Governance of project
management organisatio...
Co-owned Projects: Issues
12
Governance of
project management
organisation
2
Governance of
project management
organisation...
13
Formal Arrangements
Agreements
Flexibility and change management
Benefits and rights
Co-owner to Co-owner
due diligence...
Co-owned Projects: Principle 1
14
Governance of
project management
organisation
2
Governance of
project management
organis...
Co-owned Projects: Principle 2
15
Governance of
project management
organisation
2
Governance of
project management
organis...
Co-owned Projects: Principle 3
16
Governance of
project management
organisation
2
Governance of
project management
organis...
Co-owned Projects: Principle 4
17
Governance of
project management
organisation
2
Governance of
project management
organis...
Co-owned Projects: Principle 5
18
Governance of
project management
organisation
2
Governance of
project management
organis...
Co-owned Projects: Principle 6
19
Governance of
project management
organisation
2
Governance of
project management
organis...
Co-owned Projects: Principle 7
20
Governance of
project management
organisation
2
Governance of
project management
organis...
Co-owned Projects: Principle 8
21
Governance of
project management
organisation
2
Governance of
project management
organis...
Co-owned Projects: Principle 9
22
Governance of
project management
organisation
2
Governance of
project management
organis...
Co-owned Projects: Principle 10
23
Governance of
project management
organisation
2
Governance of
project management
organi...
Governance of Co-owned Projects:
Checklists
24
A set of questions to probe current and
planned arrangements
Categories
 A...
Governance of Co-owned Projects:
How to use the guide
25
Organisational Governance Project Governance
What to assess Reaso...
Governance of Co-owned Projects:
Benefits
 Helps inform when not to do a joint project
 Makes explicit downstream issues...
Governance of Co-owned Projects:
Order it now!
27
APM members can get 10% off the price by calling +44 (0)1767 604951
Than...
APM Governance SIG
28
Getting Involved with GovSIG
 APM GovSIG on website
 Development events
 Conference
 Blogging
 Research
 Committee
2...
This presentation was delivered
at an APM webinar
To find out more about
upcoming webinars please visit
our website
www.ap...
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Joint projects and the governance conundrum webinar, 27 January 2017

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Joint projects and the governance conundrum webinar,
APM Governance SIG webinar
Friday 27 January 2017
presented by Andy Murray and Martin Samphire

Published in: Business
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Joint projects and the governance conundrum webinar, 27 January 2017

  1. 1. Joint projects and the governance conundrum 1 APM Governance SIG 27th January 2017
  2. 2. 2 Agenda  Introduction  About APM Governance SIG  Overview of the ‘Governance of Co-owned Projects’  Upcoming events
  3. 3. Introductions Martin Samphire – host Andy Murray - speaker 3
  4. 4. Andy.murray@rsmuk.com 07776 301602 https://uk.linkedin.com/in/andymurray Andy Murray Andy is a chartered director and management consultant specialising in Project, Programme and Portfolio Management, with over 20 years of varied experience (public sector/private sector, SME/corporate, domestic/international). Andy has a focus on project/programme governance and the treatment of inherent project/programme complexity. He has worked with Axelos, HM Treasury, Cabinet Office and the Association For Project Management (APM) in developing guidance on delivering successful projects/programmes, such as IUK Project Initiation Routemap, Directing Change, Co-Directing Change, PRINCE2 and P3M3. Andy is a sought after speaker and was cited in the Sunday Telegraph’s business supplement as one of the most influential people in project management. Andy is a partner in RSM UK, responsible for the Project and Programme service line and is also RSM’s Head of Infrastructure sector.
  5. 5. About the APM Governance SIG 5
  6. 6. 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 6 ….in the governance of project management (change) Activities  Engagement – CxO level as well as APM members  Conferences and Seminars  Publications  Influence of, and contribution to, standards
  7. 7. Directing Change 2nd edition 2011 7 Governance of Co- owned Project 2017 Sponsoring Change 2009 Free to APM members at www.apm.org.uk/memberdownloads GovSIG Publications Directing Agile Change 2016 To join the SIG, please register/log into the APM website and on the Governance page click join this group.
  8. 8. Overview of the new guide 8
  9. 9. Governance of Co-owned Projects  What are co-owned projects/programmes  Why traditional governance models struggle  Governance of co-owned projects/programmes principles  Governance of co-owned projects/programmes health-check  How to use the guide  Benefits 9
  10. 10. Co-owned Projects: Context  There are numerous benefits of working on joint projects  Often organisations are participating in joint projects that are sometimes greater in scale and complexity than they have undertaken on their own  By committing to a joint project the Board of each participating organisation takes on more than usual than if they did it on their own  Each organisation will inevitably, in the eyes of stakeholders, be associated with the project – whether successful or not.  So a core concept of joint projects is that they are ‘co-owned’ by the participating organisations. 10
  11. 11. Co-owned Projects: Context 11 Governance of project management organisation 2 Governance of project management organisation 1 Project Management of co- owned project Organisation 1 governance Organisation 2 governance Governance of co- owned project
  12. 12. Co-owned Projects: Issues 12 Governance of project management organisation 2 Governance of project management organisation 1 Project Management of co-owned project Organisation 1 governance Organisation 2 governance Governance of co-owned project The challenge for organisations who sponsor or deliver co-owned projects is that traditional project management frameworks and methods are based on governance structures that assume a single hierarchical route for authority and accountability. This is rarely the case for co-owned projects which is why organisations are rightly challenging whether their traditional governance arrangements are fit for purpose.
  13. 13. 13 Formal Arrangements Agreements Flexibility and change management Benefits and rights Co-owner to Co-owner due diligence Mutually accepted business cases Co-owners’ legal and governance compatibility Co-owners’ standing, culture and capability Working Arrangements Reporting Assurance and transparency Stakeholder relationships Trust, collaboration and value maximisation Co-owned Projects: Principles
  14. 14. Co-owned Projects: Principle 1 14 Governance of project management organisation 2 Governance of project management organisation 1 Project Management of co-owned project Organisation 1 governance Organisation 2 governance Governance of co-owned project 1. Agreements There should be formally agreed governance arrangements. These may include legal contracts and agreements among co-owners which together ensure • Clear processes for decision making ensuring unified project management and unambiguous representation of each co-owner. • Processes to deal with conflicts of duty, conflicts of interest, ambiguous accountability and the resolution of disputes. • Explicit commitment to collaboration, resource provision, mobilisation and demobilisation.
  15. 15. Co-owned Projects: Principle 2 15 Governance of project management organisation 2 Governance of project management organisation 1 Project Management of co-owned project Organisation 1 governance Organisation 2 governance Governance of co-owned project 2. Flexibility and change management The formal arrangements should provide for fundamental change including change in the group of co- owners and should define the process to be invoked. This includes changes as a result of revised objectives or approach, resolution of conflicts, co-owners joining or leaving, or as a consequence of material change in control, relevant strategy or risk appetite within co-owning organisations.
  16. 16. Co-owned Projects: Principle 3 16 Governance of project management organisation 2 Governance of project management organisation 1 Project Management of co-owned project Organisation 1 governance Organisation 2 governance Governance of co-owned project 3. Benefits and rights The formal arrangements should define responsibility for the realisation of benefits arising and discharge of co-owners’ obligations after leaving or completion. They should include intangible benefits and the protection of co- owner’s confidentiality and intellectual property, and rights to publicise outcomes or represent other co-owners.
  17. 17. Co-owned Projects: Principle 4 17 Governance of project management organisation 2 Governance of project management organisation 1 Project Management of co-owned project Organisation 1 governance Organisation 2 governance Governance of co-owned project 4. Mutually-accepted business cases Each co-owner should assure itself that each co-owner’s organisation has a stable basis of internal approval of its business case for the project and is committed to maximum openness about its nature and relevant changes as they may occur. Critical aspects of the business cases include clear definitions of project objectives, the role of each co-owner, their incentives and rewards, risk allocation, commitments and responsibilities.
  18. 18. Co-owned Projects: Principle 5 18 Governance of project management organisation 2 Governance of project management organisation 1 Project Management of co-owned project Organisation 1 governance Organisation 2 governance Governance of co-owned project 5. Co-owners’ legal and governance compatibility Each co-owner should assure itself of the legal competence and relevant obligations of co-owners, and that internal governance arrangements of co-owners and any project delivery structure created are compatible with standards of governance acceptable to it.
  19. 19. Co-owned Projects: Principle 6 19 Governance of project management organisation 2 Governance of project management organisation 1 Project Management of co-owned project Organisation 1 governance Organisation 2 governance Governance of co-owned project 6. Co-owners’ standing, culture and capability Each co-owner should assure itself that co-owners’ cultures, knowledge, capabilities and reputation are appropriate to co-ownership of the project and also that co-owners’ policies and practices on ethics and sustainability are acceptable to it.
  20. 20. Co-owned Projects: Principle 7 20 Governance of project management organisation 2 Governance of project management organisation 1 Project Management of co-owned project Organisation 1 governance Organisation 2 governance Governance of co-owned project 7. Reporting The depth, breadth and transparency of reporting should be fair, balanced and suitable for the audience to understand. Reports should provide the information needed for co-owners to make decisions, report onward to stakeholders and to trigger previously agreed independent review and corrective actions when they have legitimate concerns about the achievement of project objectives or viability.
  21. 21. Co-owned Projects: Principle 8 21 Governance of project management organisation 2 Governance of project management organisation 1 Project Management of co-owned project Organisation 1 governance Organisation 2 governance Governance of co-owned project 8. Assurance and transparency Projects should incorporate arrangements for access to information necessary for co-owners' internal control or audit functions, for conformity with disclosure and transparency obligations, for independent assurance and also include channels for whistleblowing.
  22. 22. Co-owned Projects: Principle 9 22 Governance of project management organisation 2 Governance of project management organisation 1 Project Management of co-owned project Organisation 1 governance Organisation 2 governance Governance of co-owned project 9. Stakeholder relationships There should be arrangements in place to ensure that the execution of projects takes account of co-owners' shareholder and other stakeholder relationships and to deal with reputational risk and potential conflicts of interest.
  23. 23. Co-owned Projects: Principle 10 23 Governance of project management organisation 2 Governance of project management organisation 1 Project Management of co-owned project Organisation 1 governance Organisation 2 governance Governance of co-owned project 10. Trust, collaboration and value maximisation There should be arrangements in place to build and maintain trust, collaboration and collaborative behaviour including identifying opportunities for improving the value of the project to co-owners.
  24. 24. Governance of Co-owned Projects: Checklists 24 A set of questions to probe current and planned arrangements Categories  Alignment and compatibility  Reward, risk and opportunity  Leadership and sponsorship  Project management capability  Disclosure and reporting The checklists are designed to uncover gaps and prompt action. Surveys, workshops or interviews can be used to explore how well the organisation or project is set up for co-ownership. Leadership and Sponsorship
  25. 25. Governance of Co-owned Projects: How to use the guide 25 Organisational Governance Project Governance What to assess Reasons why any of the principles is not accepted – comply or explain. Validate using a sample of co-owned projects across the organisation. The specific project in question only. Identify gaps and departures from the principles. Identify relevant key questions not satisfactorily answered. Scope of assessment The specific organisation only. Reviewing different types of co-owned projects experienced or likely to be considered. Governance of the project by all the co-owners (and potential co-owners if desired). How to use the results Identify the corporate arrangements that need enhancing based on gaps identified. Gaps may originate from:  exceptions and variability across the sample;  weak/absent organisational policies, guidance, capabilities, or behaviours. Identify the specific arrangements for the project that need enhancing based on gaps identified. Gaps may originate from: • weak/absent arrangements within the project; • weak/absent corporate arrangements within the co-owning organisations.
  26. 26. Governance of Co-owned Projects: Benefits  Helps inform when not to do a joint project  Makes explicit downstream issues  Certainty of decision-making process  Robust decisions  Timely decision-making  Reduces admin burden (e.g. reporting)  Stronger stakeholder relationships  Greater visibility of threats and opportunities and how to minimise/optimise them 26
  27. 27. Governance of Co-owned Projects: Order it now! 27 APM members can get 10% off the price by calling +44 (0)1767 604951 Thank you. Questions?
  28. 28. APM Governance SIG 28
  29. 29. Getting Involved with GovSIG  APM GovSIG on website  Development events  Conference  Blogging  Research  Committee 29 To join the SIG, please register/log into the APM website and on the Governance page click join this group.
  30. 30. This presentation was delivered at an APM webinar To find out more about upcoming webinars please visit our website www.apm.org.uk/events

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