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APM Governance SIG February 2018 by Roger Garrini
This document provides an overview of a governance SIG meeting that covered topics including what governance of project management is and why it is important, core governance principles, governance structures and roles, behaviour, agile governance, co-owned projects, and sponsorship. The objectives of the SIG are to advance understanding of governance, contribute to good practice, and influence standards. Activities include conferences, publications including updates to existing guides, and engagement with CXO-level executives and APM members. Research presented found that good governance is a key success factor for projects and is correlated with higher performance and success rates.
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APM Governance SIG February 2018 by Roger Garrini
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- 2. 2 Agenda APM GovernanceSIG What is Governance of PM and why is it important? Core Principles of Governance Governance Structure & key roles Behaviour Agile Co-Owned Projects Sponsorship Get involved
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- 4. Governance SIG Objectives Bethe 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 4 ….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
- 5. Directing Change 2nd edition2011 Update for 2017 5 Governance of Co- owned Projects 2017 Sponsoring Change Update for 2017 Free to APM members at www.apm.org.uk/memberdownloads GovSIG Publications Agile Governance 2016
- 6. Why is GoodGovernance important? Key success factor for project outcomes Competitive advantage for businesses Provides for internal controls Externally, it reassures stakeholders that their money is being invested well Good governance is increasingly demanded by shareholders, government and regulators To comply with external regulations and legislation (e.g. the UK Corporate Governance Code and Sarbanes-Oxley in the USA). 6 UK Code ….“comply or explain”
- 7. 7 “No such thingas failed projects, only failed governance” Andrew Bragg – Former CEO APM
- 8. Some Research 8 “poor performanceresults in organisations wasting $109m in every $1bn invested in projects” “high performing organisations successfully complete 89% of their projects, while low performers complete only 36% successfully” “Fit-for-purpose governance strongly influences project and programme success” “higher performance is correlated with higher maturity”. “there is a highly visible disconnect between Executive Teams and Project Managers” “C-Suite are often missing in action”. Misalignment of ‘Run the business’ and ‘Change the business’ results in ‘wastage’ of resources “only 62% of programmes have an established or mature link between programme objectives and organisational strategy and only 50% of the respondents felt that the boundaries of their organisations portfolio were clearly defined and decision making well supported” “Just 42% of companies reported having high alignment of projects and organisational strategy” “Companies with high degrees of alignment have more successful projects (69%) compares with companies with low alignment (45%)” “80% of the projects with active sponsors reported a success rate of 75%, which is much higher than the average” “actively engaged sponsors is the top driver of project success” Sources: 2014 PMI Pulse Survey PwC 2104 Global Survey PwC 2012 Global Survey APM Factors for Project Success 2014 GovSIG Benchmarking “lower value projects are more successful than large more complicated projects” “of the success factors, ‘delivery to time’ showed the least success” “62% of portfolios do not have benefits in the sponsor’s personal performance targets” “Only 57% of sponsors had received sponsor training”
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- 11. Questions 1. Checklists ordescriptions Which are most helpful? 2. What is the biggest single impediment to sponsorship in your environment? 3. Most misunderstood aspect of Sponsorship within your experience? 4. What are the most important aspects to consider when choosing a sponsor? 11
- 12. Governance of AgileWorking 12
- 13. Guidance to theGovernance of Agile Project Management Directing Agile Change
- 14. Why we needa Guide for Governance of Agile Project Management Growingly popular topic in P3M Guide produced in response to requests Mythology about Agile scares the Board Help to explain the change in mind set needed
- 15. Who is itfor? All Those involved in governance of all change initiatives Boards Organisation, Society, Programme and Project Influencers of the Board E.g. assurers, portfolio managers Sponsors Stage gate reviewers Programme and Project Managers
- 16. Iterative Delivery Collaborative Behaviour Decisionsat the work face New measures of progress Agile - The Essential Difference It’s a different mindset
- 17. Discipline isstill required (business case, requirements, configuration, etc.) A Fad? - No Agile is not the only way Not just for software Agile only works for small projects Need to adjust existing governance processes The Myths More listed in guide
- 18. Some Principles Thisis the governance of PM not how to do Agile Waterfall vs Agile - how to decide Directing Change is a valid basis for PM Governance Incremental delivery Collaboration Just Enough Definition Learn as you go
- 19. Key Roles andTechniques Key Roles (major transformation) Business (Programme) Sponsor Business Visionary (or Product owner) Programme Manager Technical Co-ordinator or Business Architect Project Manager or Scrum Master Business Change owner / lead Agile Coach Business Process Analysts Tools / Techniques DSDM Atern SCRUM Lean KanBan MoSCow Timeboxing
- 20. When to ConsiderAgile
- 21. Leadership not Direction NewBehaviour is paramount to improve Organisational Culture Agile Training is essential Board, PM, Sponsor and team The team is driving and making decisions Thinking not management rote Some Hints and Tips
- 22. Behaviour & Culture Board Supportstrongly, stay back, set clear objectives Empower Project Sponsor / Product Owner Engage, embrace, enjoy (and dedicate time as part of team) Project Manager / Delivery Lead Delegate, collaborate, remove blockages Build and empower the team
- 23. The Lists inthe Guide Not a check list!! Comply or explain? To your own satisfaction, this is Guidance not a Recipe Your choices matter As a Board As a Sponsor As Project Manager As an independent reviewer
- 24. Paperback: 246x189mm,2016 Pu blisher: APM Author: APM Governance Specific Interest Group ISBN 978-1-903494-60-8 Publication date: September 2016 Price: £15.00 Discount: 10% off for APM members APM members should contact Turpin Distribution on +44 (0)1767 604951 to receive their 10% discount via APM Website Where to get it
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- 26. Governance of Co-OwnedProjects New Guide Originally Published as Co- Directing Change 2007 Revised with New Title January 2017 26
- 27. What are Co-OwnedProjects 27
- 28. Principles Formal Arrangements Agreements Flexibility andChange Management o Unified European Patent example o Germany joining Eurodass o Voting Rights Benefits and Rights o Risk Appetite o Risk 28
- 29. Principles 2 Co-Owner toCo-Owner due Diligence Mutually Accepted Business Cases o Risk Co-Owners legal & Governance Compatibility o Decision Making Points and Delays due to leapfrogging Co-Owners standing Culture and Capability o Ethics 29
- 30. Principles 3 Working Arrangements Reporting oMetrics o External requirements Assurance and transparency o Independence agreements Stakeholder relationships o Internal and External Trust collaboration and value maximisation o Formal and Informal arrangements 30
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- 32. Why does everyproject need a sponsor? Separation of Decision Making Objectives, appointment of the PM, Start/ stop Accountability for benefits After the project has delivered Oversight of the PM function Challenge Stakeholder Management Senior level
- 33. So What isa Sponsor Like? Supportive, Long Term, Aligned with the Organisation. A Leader Understands the Project, Credible Wise Engaged Sponsorship Summit Jan 2018
- 34. What the sponsordoes for the Organisation Leads the whole change in alignment with the strategies Keeps the project in line Risk, Behaviour Benefits Liaises with others on behalf of the project Overseer/ Mentor/ Guardian/ ???
- 35. What the sponsordoes for the PM Decides in the business context Ensures the project is suported Supports and challenges the PM Godfather/ Nurse/Scout/?????
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- 37. Getting Involved withGovSIG Join APM GovSIG Blogging Research Active Committee New guides Sponsorship and Directing Change III in 2017 Interact with other groups 37
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Editor's Notes
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- #5 FOR THOSE WHO DON’T KNOW APM FOREMOST INSTITUTION IN UK – OVER 20,000 MEMBERS AND GROWING. APPLYING FOR ROYAL CHARTER
- #6 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….) Going to use tonight 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.
- #7 The benefits of good P3 governance include the optimisation of investment, avoidance of common reasons for failure, and motivation of staff through better communication. The application of good governance minimises risks arising from change and maximises the benefits. Good governance can be demonstrated through: the adoption of a disciplined life cycle governance that includes approval gates at which viability is reviewed and approved; recording and communicating decisions made at approval gates; the acceptance of responsibility by the organisation’s management board for P3 governance; establishing clearly defined roles, responsibilities and performance criteria for governance; developing coherent and supportive relationships between business strategy and P3; procedures that allow a management board to call for an independent scrutiny of projects, programmes and portfolios; fostering a culture of improvement and frank disclosure of P3 information; giving members of delegated bodies the capability and resources to make appropriate decisions; ensuring that business cases are supported by information that allows reliable decision-making; ensuring that stakeholders are engaged at a level that reflects their importance to the organisation and in a way that fosters trust; the deployment of suitably qualified and experienced people; ensuring that P3 management adds value.
- #8 FAILURE OF PROJECTS STILL – SUCCESS / FAILURE STILL SAME AS 30 YEARS AGO – WE ARE NOT LEARNING SOME MAY BE FAMILIAR – OLD BUT STILL A SOURCE OF GOOD LEARNING COMMON THREAD IN THEIOR FAILURE – FAILURE OF GOVERNANCE SAME LESSONS REALISTIC TIMESCALES SINGLE SPONSORSHIP WITH AUTHORITY / ACCOUNTABILITY ENGAGE WITH STAKEHOLDERS PRAGMATIC REQUIREMENTS SHORT DELIVERY STEPS – BREAK IT DOWN ESPECIALLY IF NEW AREAS OF TECHNOLOGY GOOD PRACTICE GOVERNANCE
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- #15 DC Sales show Governance guidance is wanted There is a gap The Gov SIG Guides are quoted regularly 2 Zealots and 2 sceptics combined for a middle course
- #16 This is for the Governance of Project Management with agile work It is not a guide to managing agile there are plenty who are doing that already it ids for all people who need to be able govern projects from all sectiors and all types of agile work
- #17 Agile projects wil involve different behaviour from normal waterfall projects
- #18 It is disciplined, perhaps more so The Fad has lasted too long in too many sectors We categorically believe it does not replace every other methid it is another tool in the box It was dervied from software but applies across the board It is scalable and WBS is here to stay But there are some different aspect which need to thought about
- #19 The key question is agile or not - we hope to help Good governance of all shades is essential and DC gives out some principles – it is bien updated to reflect the latest views.
- #20 For those that don’t know
- #21 Ltes get down to work Waterfall describes a Carefullstaged delivery of a project and this works very well if the scope is understood and is being undertaken in reasonably stable environment people build houses, deliver projects but…
- #24 Have you made the right choice for you r project(s) your orgasnisation, are your people ready to address new behaviour. Some cultures find collaboration very hard – it not my place to …… he/she can’t say that to me….. Are you ready not to insist on the traditional outputs and ready toi view incomplete artefacts and join in or are w you not ready for agile and why?
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