Presentation given by Roy Millard on 28 April 2020 https://www.apm.org.uk/news/the-value-of-assurance-webinar/

1. The Value of Assurance
28th April 2020
Roy Millard
Chair of APM Assurance SIG
28th April 2020 Value of Assurance webinar1

2. To start with…
A couple of questions about you
Using
Go to www.menti.com
Use code: 71 68 66
28th April 2020 Value of Assurance webinar2

3. Agenda
▪ What is assurance?
▪ Delivering value from assurance
– Getting best value assurance
– Maximising the benefits from assurance
▪ Value drivers
▪ Building a business case for assurance
▪ Who makes the decisions? Using
▪ Where should the Assurance SIG focus its efforts?
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4. Why do we need assurance?
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“I need
assurance
because....
...I need to know that everything
is under control”.
...I need to know whether what I am
being told is correct”.
...I need to be confident that I am going
to get what I want”.
...I need to know whether the project is going
to finish on time and within budget”.
...I need to know if things are going horribly
wrong and whether I should can the project!”.

5. What is ‘Assurance’?
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assurance n. Emphatic declaration, guarantee; self-
confidence, assertiveness; insurance esp. of life; certainty.
(Source: The Pocket Oxford Dictionary.)
assurance
noun
1.the act of assuring
2.the state of being assured; sureness; confidence;
certainty
3.something said or done to inspire confidence, as a
promise, positive statement, etc.; guarantee
(Source: www.yourdictionary.com)
“In God we trust. All others, bring data.”
- W E Deming (academic,1900-1993)

6. What is ‘Assurance’?
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Assurance:
“The process of providing confidence to stakeholders that projects,
programmes and portfolios will achieve their objectives for beneficial
change” [APM BoK7]
Assurance:
“The process of providing confidence to stakeholders that projects,
programmes and portfolios will achieve their objectives for beneficial
change” [APM BoK7]
Assurance is not…
Just periodic reporting
Subjective
Unsubstantiated
Trust
Promises
Historic

7. Suppliers & customers of assurance
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Who provides assurance?
Internal Audit
External Audit
Quality
Assurance
Health & Safety
OGC
GatewayTM
Independent
Assurance
ReviewsPMO
Control Self
Assurance
NAO
Standards
Systems
Project Audits
Contract Audits
Peer Reviews

8. Suppliers & customers of assurance
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Who receives this assurance?
Internal Audit
External Audit
Quality
Assurance
Health & Safety
OGC
GatewayTM
Independent
Assurance
ReviewsPMO
Control Self
Assurance
NAO
Standards
Systems
Project Audits
Contract Audits
Peer Reviews
Audit
Committees
Sponsors
MDs & Directors
Project Boards / SROs
Programme Boards
Governing Bodies
Shareholders
Public & media

9. Independence
Accountability
Planning &
Coordination
Proportionate
Risk-based
Impact, follow
up & escalation
From APM ‘Guide to Integrated Assurance’ 2014
Principles of Assurance
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Assurance provides an
objective view and
conclusion that cannot be
unduly influenced
To give assurance due
authority there should be:
• strategic commitment;
• sponsor ownership; and
• nominated responsibilities
Assurance activities are:
• part of an organisation’s management
system;
• collaboratively planned and agreed
with priorities;
• co-ordinated;
• funded and resourced; and
• reviewed & updated
© Roy Millard, P3RA
Assurance should:
• link to Governance;
• share findings with each other;
• provide a single view;
• lead to action;
• promote learning lessons; and
• continuously improve.
Assurance activities:
• are linked to risks;
• prioritise the most significant risks;
• inform risk management; and
• linked to project lifecycle.
Assurance activities:
• are proportionate to risk potential;
• reflect customer needs;
• build upon each other and don’t
repeat; and
• are efficient.
Integrated
^

10. APM Guide to Integrated Assurance
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11. Assurance
adding
value
Best value
Assurance
Value
of
Assurance
Delivering Value from Assurance
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Portfolio Level Project LevelProgramme Level
‘Doing projects right’
• Link to governance:
➢ Supports decision-making
➢ Mechanism for stopping projects
➢ Catalyst for change
• Link to risk management
➢ Confidence that risks are under control
➢ Early identification when they are not
➢ Spotting the unspotted
➢ Mechanism for identifying opportunities
• Link to corporate assurance
➢ Confidence in meeting business priorities
• Manage the outputs:
➢ Terminology / language / being meaningful
➢ Visibility at the right levels and the right places
➢ Timeliness
• Business partners
• Proportionality
• Don’t be expensive
• Use for Stakeholder Communications
• Custodian of corporate knowledge
• Good relationships & communications
• Skilled & knowledgeable Assurance
staff
• Positive actions taken
• Close link to project lifecycle
• Assurance an intrinsic part of P3M
• Integrated Assurance
• Use of data and AI (Predictive
assurance)
‘Doing the right projects’
Maximising organisational benefit
Getting best value
© Roy Millard, P3RA

12. Delivering Value – Identifying ‘Value Drivers’
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Remove
Delivery
Cost
Increase
Delivery
Speed
Avoid
Business
Risk
Reduce
Business
Cost
Maintain
Business
Value
Increase
Business
Value
Accelerate
Benefit
Delivery
© 2019 Lloyds Banking Group plc and its subsidiaries
Example 1: Lloyds Banking Group Example 2: Network Rail
1. Does it provide early identification of project
/ programme issues?
2. Does it support successful delivery of
projects and programmes
(cost/duration/benefits)?
3. Does it target the most critical / complex /
high reputation?
4. Is it proportionate and affordable (cost and
input)?
5. Are the outputs aligned with key
stakeholders – duplication and sharing of
intelligence?
6. Is the activity and output trustworthy?
© T Robins, Network Rail

13. How much to spend? (KPMG figures)
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• In our experience, assurance costs as a % of overall programme or portfolio spend are typically in the
region of 2 – 5%
• We see that Financial Services organisations tend to spend slightly more as a % on assurance relative to
other industries
• It is not a linear ratio and will depend upon maturity, capability, current status and inherent risk of the
programmes / portfolios
Type
Portfolio Assurance (Ongoing)
Programme Assurance
(Embedded)
Programme Assurance
(Embedded)
Programme Assurance
(Stage Gate)
Sector
Large FS mutual Banking Insurance Online Retailor
Spend
3% 4% 6% 0.5%
Comments
■ £300m change portfolio
■ Existing, dedicated, mature
central assurance function
– internally led
■ Roughly 50-50 split in terms
of internal vs external
spend on assurance
■ £30m platform
replacement
■ Integrated programme
assurance activity
■ Programme delivered by a
3rd party systems integrator
■ £100m transformation
■ Integrated programme
assurance activity
■ Programme delivered by a
3rd party systems integrator
■ £50m business
transformation
■ Single one off review prior
to commitment to delivery
stage
■ 6-weeks independent
assurance alongside the
completion of the design
stage
© 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”),
a Swiss entity. All rights reserved.

14. Building a Business Case for Assurance
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Describe the benefits:
• Better planning
• Quicker delivery
• Reduced costs
• Improved stakeholder management
• Organisational learning
• Improved project success
Anecdotal examples:
• Audit action avoided loss
• Fraud identified
• Cheaper approach identified
Link to risk budgets & contingencies
Benefit : Cost Ratio?
Research

15. Who makes the decisions?
Please go to www.menti.com
Use code: 52 17 72
▪ Q1 – In your organisation, who makes decisions about project
assurance?
▪ Q2 – In your organisation, who owns the budget for assurance?
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16. What should be the Assurance SIG’s priorities?
Please go to www.menti.com
Use code: 52 17 72
▪ Examples are:
– Best practice guidance
– Holding events
– Promoting the value of assurance
– Providing an expert panel
– Being custodian of Assurance for APM
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17. LinkedIn Group
▪ Governance, risk and assurance in projects, programmes and
portfolios
You are welcome to join!
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18. Contact details
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Email assurancesig@apm.org.uk
Web
www.apm.org.uk/group/apm-assurance-specific-
interest-group
LinkedIn
Governance, risk and assurance in projects,
programmes and portfolios
https://www.linkedin.com/in/roy-millard-
9545852/
Twitter #apmassurance
Roy Millard
roymillard.asig@gmail.com
roymillard@p3ra.co.uk