How can projects be controlled? It should not be a surprise that PRINCE™ stands for “Projects in Controlled Environments”, in other words, PRINCE, or more commonly called today, PRINCE2™ is a framework for project control, not a process, not a method, not a set of techniques and not a qualification in project management! Mike Ward, Gordian Enterprises Associate

Agenda Corporate Governance Programme-level governance Project-level governance Best Practice & Maturity Models Some detailed issues

Corporate governance “Corporate governance involves a set of relationships between a company’s management, its board, its shareholders and other stakeholders. Corporate governance also provides the structure through which the objectives of the company are set, and the means of attaining those objectives and monitoring performance are determined.” OECD Principles of Corporate Governance 2004

UK governance Companies Acts of 1985 & 1989 Company Directors Disqualification Act 1986 Proposed legislation: Operating and Financial Review (OFR) Self regulatory framework The Combined Code

Combined Code Directors Remuneration Accountability & Audit The Board Chairman and chief executive Board balance and independence Appointments to the board Information and professional development Performance evaluation Re-election Remuneration The level and make-up of remuneration Procedure Accountability & Audit Financial reporting Internal control Audit committee and auditors Relations with Stakeholders Dialogue with institutional shareholders Constructive use of AGM

Programme-level governance Governance is the control framework through which programmes deliver their objectives A programme needs Clear and open governance To negotiate resources To adjust to changing organisational contexts To deliver its outcomes and benefits The need for Governance over change is manifested in two ways : Control and ownership of the transformation programme Control and ownership/stewardship of the organisation as a corporate entity

Organisation structure Sponsoring Group Programme Board Project Board Project Executive SRO Programme SRO Programme Manager Business Change Manager Project Executives (if not Programme Manager) Representatives of corporate functions Lead supplier Project Executive Senior User Senior Supplier

Project-level governance 77% of CIOs in the companies surveyed believed that only half of their managers could explain their IT Governance. Our findings indicate that many organisations implement one or more governance standards. The most popular standard used by 43% of the organisations surveyed was ITIL, while about 20% of organisations have implemented COBIT, ISO-17799 and ISO-9000. Deloitte 2005 The governance of project management concerns those areas of corporate governance that are specifically related to project activities. Effective governance of project management ensures that an organisation’s project portfolio is aligned to the organisation’s objectives, is delivered efficiently and is sustainable. Governance of project management also supports the means by which the board, and other major project stakeholders, are provided with timely, relevant and reliable information. Association for Project Management 2005

Using best practice

What is a maturity model? “A maturity model is a structured collection of elements that describe characteristics of effective processes. A maturity model provides: a place to start the benefit of a community’s prior experiences a common language and a shared vision a framework for prioritising actions a way to define what improvement means for your organization A maturity model can be used as a benchmark for assessing different organizations for equivalent comparison.” - Wikipedia

Capability Maturity Models

Use P3M3 to improve performance Metrics Step 4 How will you know? Improvement Plan Step 3 How will you get there? Appropriate KPAs Step 2 Where do you want to be? Baseline Assessment

Question F/L/P/N Level Does your organisation recognise projects and treat them differently to line management? In general, are project objectives identified and agreed? For most projects, are project objectives, benefits, scope, key roles [e.g. sponsor, PM and user], and a project plan clearly defined, agreed and used? In general, are changes to requirements, and project performance to time, cost and quality regularly monitored and controlled? In general, projects adopt a strategy to ensure stakeholders are identified, consulted and kept informed? Does your organisation have its own centrally controlled and documented standard project processes and procedures? Can individual projects flex these standard processes within specified guidelines? Is there an ongoing effort to review and improve the standard processes? Is there an assurance mechanism in place to assess that projects follow your organisation’s project and programme management processes? Is there an ongoing training effort to enhance the competence of staff working on projects?

Governance at the implementation level The Portfolio Office Manages the approval process Prioritisation, Performance and Benefit Realisation Quality assurance

How the APM governance principles are covered if an organisation has embedded PRINCE2/P3M3 # Governance of Project Management Principles P2MM Level 3 P3M3 1 The board has overall responsibility for governance of project management. Partial 2 The roles, responsibilities and performance criteria for the governance of project management are clearly defined. √ 3 Disciplined governance arrangements, supported by appropriate methods and controls, are applied throughout the project life cycle. 4 A coherent and supportive relationship is demonstrated between the overall business strategy and the present portfolio. NA 5 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. 6 Members of delegated authorisation bodies have sufficient representation, competence, authority and resources to enable them to make appropriate decisions.

How the APM governance principles are covered if an organisation has embedded PRINCE2/P3M3 # Governance of Project Management Principles P2MM Level 3 P3M3 7 The project business case is supported by relevant and realistic information that provides a reliable basis for making authorisation decisions. √ 8 The board or its delegated agents decide when independent scrutiny of projects and project management systems is required, and implement such scrutiny accordingly. Partial 9 There are clearly defined criteria for reporting project status and for the escalation of risks and issues to the levels required by the organisation. 10 The organisation fosters a culture of improvement and of frank internal disclosure of project information. 11 Project stakeholders are engaged at a level that is commensurate with their importance to the organisation and

Summary Ownership – who is in charge and who makes decisions about the direction of the project? Governance – is the project run according to agreed processes? Risk – what are the main risks the project has identified, and what is it doing about them? Management – are the time/cost/scope attributes being monitored according to the plan? Quality – has the quality of the deliverables been defined and agreed?

What do we do in this space?

Gordian Enterprises Limited If you would like more information then please contact Mike Ward or Kevin O’Sullivan Tel: 0845 402 5196 info@gordian-enterprises.com www.gordian-enterprises.com