Crag Summary Framework V2.1


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Change, Risk, Compliance nad Governance for major projects

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  • Crag Summary Framework V2.1

    1. 1. Compliance, Risk & Governance Breaking Through for Improved Delivery Actual Results
    2. 2. The Problem <ul><li>In 2004 investigations uncovered 120 concurrent projects </li></ul><ul><li>30 providing significant investment – representing 32% of turnover </li></ul><ul><li>Investigations also revealed that there was no overall direction </li></ul><ul><li>Some projects were aiming to deliver outcomes that directly contradicted deliverables from other projects </li></ul><ul><li>A major cause of this chaos was attributed to the (then) strong silo mentality </li></ul><ul><li>Lack of strategic focus and ability map onto business benefits </li></ul>
    3. 3. ISMB DCMB HRMB BAU Programme managed non delivery Infrastructure Investments Functional Programme Boards Budgeting Ideas Filter Business Case Creation Resource Commitments Benefits Realisation Delivery Lifecycle Programme Governance Business Improvement etc Project Boards Finance P&P S&MD PTG PLCB Investment priorities Business Case Financial Decision Overall Financial Monitor Investment Group Operations Board Investment Programme Steering Group Key Programme Risks Constraints Resource Priorities Communication Communication Decision Decision Reporting Reporting Customer Investments Customer Programme Boards Budgeting Ideas Filter Business Case Creation Resource Commitments Benefits Realisation Delivery Lifecycle Programme Governance Programme 1, Programme 2 etc Project Boards Finance Budget Change Budget Change
    4. 4. The Solution <ul><li>Take control from the centre </li></ul><ul><li>Rationalise and cull Projects against benefits </li></ul><ul><li>Establish hybrid SOX section 404 ¹ and CoE ² to; </li></ul><ul><ul><li>1) Prioritise and establish financial controls/monitoring for all projects as they emerge ¹ </li></ul></ul><ul><ul><li>2) Centralised allocation of resources ² </li></ul></ul><ul><ul><li>3) Look for and exploit synergies – remove duplication ¹ ² </li></ul></ul><ul><ul><li>4) Follow up to ensure that expected benefits are delivered (SRO ³ roles – SOX 404 equivalent) ¹ ² </li></ul></ul>¹ Sarbanes-Oxley section 404 Internal Governance & Controls ² Office of Government Commerce (OGC) Center of Excellence initiative ³ OGC term, Senior Responsible Owner (SRO) risk governance compliance Improved delivery Benefits management Value management Goal achievement
    5. 5. The Results <ul><li>Focused input to corporate business case and strategic direction </li></ul><ul><li>Staff Savings </li></ul><ul><li>Strategic Improvements in Customer Service </li></ul><ul><li>Organisational Control </li></ul><ul><li>Able to anticipate the needs of changing market </li></ul><ul><li>Cost avoidance </li></ul><ul><li>Reduced expenditure </li></ul>
    6. 6. What we need to do
    7. 7. dependencies cost Policy/priorities outcomes/benefits risks progress Traditional project management metrics (cost, time, scope) are not enough to provide a reliable indication of the performance of complex change programmes. What CR & G Delivers The programme manager and/or project sponsor need a wider dataset to answer the key, business-related questions to ensure that every activity is contributing to strategic goals This is only effectively managed by centralising the control of change Balanced score card business goals what is the ROI / VFM ? why are we doing this ? what could go wrong ? what are we likely to deliver ? how are we progressing ? what are our priorities ?
    8. 8. Planned Outcomes <ul><li>Aligned PPM goals to business goals </li></ul><ul><ul><li>Undertake the right programme/project at the right time with a realistic budget . </li></ul></ul><ul><li>Delivered business objectives </li></ul><ul><ul><li>Growth, increased profits, enhanced strategic position and increased effectiveness </li></ul></ul><ul><li>Standardised approach assured </li></ul><ul><ul><li>All programme’s/projects are managed, controlled and reported in the same manner </li></ul></ul><ul><ul><li>Provides a more effective way to develop our PMs skills and provides a means for direct recognition of success </li></ul></ul><ul><li>Enhanced risk management process </li></ul><ul><ul><li>Mapping programmes & projects to business objectives and documented contingency plans </li></ul></ul><ul><li>Planning and expectation setting process </li></ul><ul><ul><li>Giving a clear understanding of the business goals being achieved by the investment programmes & projects </li></ul></ul><ul><li>Coherent and consistent reporting process implemented </li></ul><ul><ul><li>Giving visibility of, and indicating the status of programmes & projects in terms of their deliverables </li></ul></ul><ul><li>Centralised information repository </li></ul><ul><ul><li>Giving access to historical programme & project documentation and results ensuring the capture and re-use of programme & project knowledge . </li></ul></ul>
    9. 9. Aspects of a CR & G Process Structure People defined competencies assessment, development & support succession planning getting started delivery closure planning compliance risk governance
    10. 10. 3 Facets – different weightings All factors need to be correctly placed and weighted. Ad-hoc Repeatable Structure Process people Structure Process people 5% 15% 80% 5% 15% 80%
    11. 11. The CR & G Process Initiative Business Objective Business Benefit Management Climate (change) Competence (increase) objectives objectives results results soft issues (people) hard issues (business) Projects
    12. 12. CR&G Implementation <ul><li>Risk Plans </li></ul><ul><li>Communications Plans </li></ul><ul><li>PM Reporting and Escalation </li></ul><ul><li>Key Milestones </li></ul><ul><li>Project Control </li></ul><ul><li>Project Reporting </li></ul>BASELINE leading to IMPROVEMENT Jan 2004 - July 2004 ONGOING IMPROVEMENT Aug 2004 - April 2005 Customer and Supplier Management <ul><li>Open partnerships </li></ul><ul><li>Effective communication pipelines </li></ul><ul><li>Joint Quality Plans </li></ul><ul><li>Define partnership roles and responsibilities </li></ul><ul><li>Determine & Agree Service Quality levels and create appropriate SLA’s </li></ul>Skills & Competencies <ul><li>Define of PM Skills and competencies aligned to KPIs </li></ul><ul><li>Carry out competencies analysis PM’s and PL’s </li></ul><ul><li>Create job descriptions </li></ul><ul><li>Identify Specific Training needs </li></ul><ul><li>Implement Training Programme aligned to KPIs </li></ul>Change Management <ul><li>Establish a procedure for dealing with change. </li></ul><ul><li>Document and estimate the impact of every change so that each change can be assessed on its costs and benefits </li></ul>Risk Management <ul><li>Establish a procedure for identifying assessing and managing risk </li></ul><ul><li>Document and estimate the impact of every risk so that each risk can be assessed on its potential impact </li></ul>Project Structure & Governance <ul><li>Projects Register </li></ul><ul><li>Project Boards </li></ul><ul><li>Strategic Objectives </li></ul><ul><li>Budget management and project prioritisation processes </li></ul><ul><li>Process Alignment </li></ul><ul><ul><li>Identify </li></ul></ul><ul><ul><li>Structure </li></ul></ul><ul><ul><li>Implementation </li></ul></ul>Project Management / Communications / Reporting Project Management/Communications & Reporting (Ongoing) Projects Structure & Governance Management of Customer & Supplier Expectations (Ongoing) Risk Management Skills & Competencies Change Management
    13. 13. The Phased Delivery Phase 1 Embedding Phase 2 Affecting Phase 3 Exploiting Phase 4 Dispersal
    14. 14. Achieving the Plan Design & Document Buy in Structuring Assessment & Migration Review Re-assessment deliver understand Baseline Assessment
    15. 15. Typical CR&G Support Structure Quality Management People Resource Management Infrastructure Management Planning & Risk Management Communications Management Financial & Performance Management Delivery Management <ul><li>Performance </li></ul><ul><li>to budget </li></ul><ul><li>to plan </li></ul><ul><li>to business </li></ul><ul><li>metrics </li></ul><ul><li>Forecasting </li></ul>Contractor management Human resource management Sourcing Resource balancing Training Quality metrics Audit Performance metrics Best practice Continuous Improvement <ul><li>Task management </li></ul><ul><li>Deliverables management </li></ul><ul><li>Issue </li></ul><ul><li>identification </li></ul><ul><li>resolution </li></ul><ul><li>escalation </li></ul><ul><li>Programmes </li></ul><ul><li>Projects </li></ul>Process management Methodology Tools & controls Capacity planning <ul><li>Strategy selection </li></ul><ul><li>Impact assessment </li></ul><ul><li>Risk assessment & management </li></ul><ul><li>bus, risks </li></ul><ul><li>project risk </li></ul><ul><li>contingency planning </li></ul>Internal communications Enterprise awareness Management awareness Knowledge transfer Partner communication Admin & Operational Support Programme Delivery Unit Strategic Operations
    16. 16. Coherent reporting structure Compliance, Risk and Governance Projects Executive Board Programme Board Programme Manager Strategic Health Check Business Sponsor SRO Shareholders standard report <ul><li>Interdependencies </li></ul><ul><li>Risk </li></ul><ul><li>Cost </li></ul><ul><li>Schedule </li></ul><ul><li>Progress </li></ul>feedback feedback feedback feedback standard report standard report standard report
    17. 17. The CR&G Driven Organisation portfolio management Strategy Technical and business architecture Governance Products Customers Internal Department Internal Department Internal Department
    18. 18. Overcoming resistance
    19. 19. Strategy – Change, dealing with the people <ul><li>Three main agents to overcoming resistance </li></ul><ul><ul><li>Organisational factors </li></ul></ul><ul><ul><ul><li>Board level support </li></ul></ul></ul><ul><ul><ul><li>External change agents </li></ul></ul></ul><ul><ul><ul><li>Speed (momentum) </li></ul></ul></ul><ul><ul><li>Key player identification </li></ul></ul><ul><ul><ul><li>Identification, categorisation – management </li></ul></ul></ul><ul><ul><ul><ul><li>Executives </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Stakeholders </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Groups </li></ul></ul></ul></ul><ul><ul><li>Strategic and structural change </li></ul></ul><ul><ul><ul><li>Catalyst change </li></ul></ul></ul><ul><ul><ul><li>Identification with strategic goals and vision </li></ul></ul></ul>
    20. 20. Structured hierarchical approach The two primary groups <ul><li>Pre launch – controlling group </li></ul><ul><ul><li>Executive management first (small critical buy in – leadership) </li></ul></ul><ul><li>Post launch – stakeholder types </li></ul><ul><ul><li>Passive group (within major group) </li></ul></ul><ul><ul><li>Protagonists (within major group) </li></ul></ul><ul><ul><li>Antagonists (within major group) </li></ul></ul><ul><ul><li>Terrorists (within major group) </li></ul></ul>Post launch Pre launch Design & Document Buy in Structuring Assessment & Migration Review Re-assess Baseline Assessment Re-assess Review Executive Stakeholder group
    21. 21. Stakeholder Responses Protagonists Passive Terrorists Antagonists Motivation Commitment to CoE
    22. 22. Loss of Individual Status, Control & Empire Executive group <ul><li>Perceived loss of status as a result of removal of funding </li></ul><ul><ul><li>Funding moving to centralised control </li></ul></ul><ul><ul><li>Extensive involvement in planning to understand the reasoning </li></ul></ul><ul><li>Perceived loss of control of a working delivery system within the silo </li></ul><ul><ul><li>Why fix something that isn’t broken ? </li></ul></ul><ul><ul><li>Involvement in larger picture planning – improving delivery across the whole business </li></ul></ul><ul><li>Perceived loss of direct involvement on a day to day basis </li></ul><ul><ul><li>Introduction of the SRO role identifying long term responsibility </li></ul></ul><ul><ul><li>Introduction of the PBS role representing the business on the SROs behalf and doing the leg work </li></ul></ul><ul><ul><li>Loss of direct involvement is not necessarily detrimental </li></ul></ul>
    23. 23. Management Styles – Responses to Change Management group <ul><li>Indulgent Managers </li></ul><ul><ul><li>more responsive than demanding. Non traditional and lenient, do not require mature behaviour, allow considerable self-regulation, and avoid confrontation </li></ul></ul><ul><li>Authoritarian Managers </li></ul><ul><ul><li>highly demanding and directive, not responsive, obedience- and status-oriented, expect their orders to be obeyed without explanation </li></ul></ul><ul><li>Authoritative Managers </li></ul><ul><ul><li>demanding and responsive, monitor and impart clear standards for their subordinates conduct, assertive, but not intrusive and restrictive. methods are supportive, rather than punitive. want their staff to be assertive as well as socially responsible, self-regulated as well as cooperative </li></ul></ul><ul><li>Uninvolved Managers </li></ul><ul><ul><li>low in both responsiveness and directiveness. In extreme cases, might encompass both rejecting–neglecting and neglectful managers </li></ul></ul>
    24. 24. Reaction to Change – Planned Responses <ul><li>Panic </li></ul><ul><ul><li>No individual interactive response – communicate to their peer group </li></ul></ul><ul><li>Active Resistance </li></ul><ul><ul><li>Ignore them – communicate and encourage their peer group </li></ul></ul><ul><li>Bargaining </li></ul><ul><ul><li>Ignore them – encourage and reward their peer group </li></ul></ul><ul><li>Passive Resistance </li></ul><ul><ul><li>Ignore individuals – Communication at group level </li></ul></ul><ul><li>Acceptance </li></ul><ul><ul><li>Engaged </li></ul></ul><ul><li>Do not identify or allow individuals to become a focus for resistance </li></ul>
    25. 25. Resistance behaviours Post launch Pre launch Design & Document Buy in Structuring Assessment & Migration Review Re-assess Baseline Assessment Executives Individual behaviours Group behaviours panic Manager Individual behaviours acceptance bargaining acceptance Passive resistance Re-assess Review Bargaining Active resistance panic acceptance Passive resistance Bargaining panic panic panic Active resistance Active resistance
    26. 26. Dominant Groups <ul><li>Small dominant group located within the business </li></ul><ul><li>Typified by :- </li></ul><ul><ul><li>Loss of sight of corporate objectives (acting on their own behalf) </li></ul></ul><ul><ul><li>Causing significant disruption and incurring costs </li></ul></ul><ul><ul><li>Superior resources, historical power base </li></ul></ul><ul><ul><li>Negative attitude </li></ul></ul><ul><ul><li>Inconsistent treatment of people </li></ul></ul><ul><ul><li>Individual approach – person to person </li></ul></ul><ul><ul><li>Institutional approach – group to group </li></ul></ul><ul><li>Approached by </li></ul><ul><ul><li>Breaking up the group </li></ul></ul><ul><ul><li>Change the make up and hence dynamic of the group </li></ul></ul><ul><ul><li>Employment of individual stakeholder strategies at group level </li></ul></ul>
    27. 27. Competence
    28. 28. CR&G Competence set implementation team growth direction ACHIEVEMENT AWARENESS INTERPERSONAL planning and organisation clarity goal focus process control business context personal influence team leadership team development
    29. 29. CR&G Skills and Behaviours - example Job Function Skill Behaviour Proficiency levels PMMM People Manager “ Pegasus” Project Manager Resource Manager Project Manager Etc. Business Case definition Planning & Control Configuration Management Etc. Approach Methodology Tools Etc. e.g.: - 0 = None; 1 = Awareness; 2 = Practitioner; 3 = Expert; 4 = Innovator Monitoring & reporting
    30. 30. Measuring success
    31. 31. Measuring Competence for CR&G <ul><li>Programme delivery capability tool </li></ul><ul><li>Project survival test </li></ul><ul><li>Health check – peer 2 peer review </li></ul><ul><li>Capability to manage from a risk perspective </li></ul><ul><li>Risk identification and mitigation </li></ul><ul><li>Assessment against risk management maturity model </li></ul><ul><li>Programme and Project strategic assessment reviews </li></ul><ul><li>Benefits achievement strategic reviews </li></ul>
    32. 32. Maintaining Success Delivery Unit Maturity Model Level 3 – Largely Compliant Supports a portfolio Integrated, organised, defined – up to 85% Level 1 – Not Generally Compliant Adhoc initial – up to 20% compliant Level 2 – Partially Compliant Supports one programme Consistent, repeatable – up to 50% Level 4 – Fully Compliant Supports the organisation Comprehensive, managed – over 85% Level 5 Working towards Success Business Impact (Phase 3)
    33. 33. Business impact
    34. 34. The Phased Delivery Phase 1 Embedding Phase 2 Affecting Phase 3 Exploiting Reach ‘the Bar’ in Phase 2 (80-85%) Phase 4 Dispersal Critical Phase
    35. 35. Phase 3 – Exploiting Improvement – driving success with CR&G and business support performance Critical Phase Phase 1 Phase 2 Phase 3 Phase 4 Phase 1 Embedding Phase 2 Affecting Phase 3 Exploiting Phase 4 Dispersal Delivery performance Business performance
    36. 36. Phase 3 – Exploiting Improvement – failure – limited success – lack of business support Phase 1 Phase 2 Phase 1 Embedding Phase 2 Affecting performance Critical Phase Delivery performance Business performance
    37. 37. The 4.5 Phase model <ul><li>Phase 1 Putting in place - Embedding </li></ul><ul><li>Phase 2 Affecting the Organisation (Continuous Improvement) </li></ul><ul><li>Phase 3 Exploiting – Driving and Monitoring Efficiency </li></ul><ul><li>Phase 4 Dispersal within the Business </li></ul><ul><ul><ul><ul><li>6 years (?) </li></ul></ul></ul></ul><ul><li>Re-group - Start Again </li></ul><ul><ul><li>Embedding – Affecting – Exploiting - Dispersing </li></ul></ul>
    38. 38. summary
    39. 39. Compliance Risk & Governance OGC CoE and Sarbanes-Oxley – section 404 <ul><ul><li>Benefits & Rational </li></ul></ul><ul><ul><li>Strategy to implement COE /SOX 404 </li></ul></ul><ul><ul><li>Strategy for improving PM practice </li></ul></ul><ul><ul><li>Structuring a suitable delivery unit </li></ul></ul><ul><ul><li>Defining the outcomes and metrics </li></ul></ul><ul><ul><li>Defining and structuring the business interaction </li></ul></ul><ul><ul><li>Building the staff competencies </li></ul></ul><ul><ul><li>Maturing the model </li></ul></ul>It’s not about technology solutions, it’s about change
    40. 40. What’s required of your business <ul><li>High Degree of senior level buy in </li></ul><ul><li>Repetition of the process over an extended period ; </li></ul><ul><ul><li>Embedding </li></ul></ul><ul><ul><li>Affecting </li></ul></ul><ul><ul><li>Exploiting </li></ul></ul><ul><ul><li>Dispersal </li></ul></ul><ul><li>Investment in specialist resource required for start up and hand over </li></ul><ul><li>Identification and release of suitable staff to maintain the solution once in place </li></ul>