Practical Investment Assurance Framework PIAF Copyright © 2009 Group Joy Pty. Ltd. All rights reserved. Recommended for C- Level Executives

Introduction The PIAF framework represents over 50 years of combined management & project assurance experience of its authors and is applicable to each phase of an asset investment managed as a formal project (or portfolio of projects). This particularly applies to Information and Communications Technology (ICT)- dependent projects; i.e. projects where the ICT component is critical to the overall success of the investment or is a significant proportion of the total expenditure. PIAF’s use will be of interest to an organisation’s corporate governance function. It is specifically recommended for C-level executives who generally lack sufficient time and resources to master the complexities of major projects. Copyright © 2009 Group Joy Pty. Ltd. All rights reserved.

Objectives and Target Users The key objective of PIAF is to help users of the framework to extract more value from the portfolio/project governance and management mechanisms in their respective organisations and hence optimise returns on project investments. The target users of the framework and its tools are senior executives and managers who are members of project boards/steering committees and/or project investment portfolio governance functions who may not have hands-on experience in project governance. This particularly applies to project business sponsors and project board chairpersons and C-level executives, particularly CFOs, heads of business units and CIOs. The framework aims to help its users ‘ask the right questions’ and also provides simple tools such as checklists and high level process maps. Copyright © 2009 Group Joy Pty. Ltd. All rights reserved.

The role of PIAF in improving the chances of project success A large proportion of business projects do not deliver the targeted benefits. A very significant contributing factor to this failure is the lack of effective control and understanding of project delivery processes by the business stakeholders. PIAF aims to put the business stakeholders (particularly the Executive Business Sponsor and project board members) in effective control as investors in the development of a new capability and the associated organisational changes required. It achieves this via a set of tools enabling these stakeholders to ensure that appropriate processes have been followed. Questions may be asked of Subject Matter Experts who the executive trusts. Finally, PIAF provides a set of warning patterns (signals) which typically indicate that a project does not follow good management practice and is at risk of failure. Copyright © 2009 Group Joy Pty. Ltd. All rights reserved.

The PIAF framework has four major elements (as represented in Fig 1. below): Principles Controls Processes Tools Fig 1 PIAF FRAMEWORK Copyright © 2009 Group Joy Pty. Ltd. All rights reserved.

PIAF Definitions PRINCIPLES are essential characteristics of project processes and deliverables which act as a guide to action. CONTROLS are specific actions or checks to validate that principles have been followed. PROCESSES are represented by process maps which demonstrate how the controls relate to each other, portfolio/project lifecycle stages and the corporate governance function. TOOLS are templates (checklists and more detailed process maps) that assist in the use of this framework and support executive oversight and reporting GOVERNANCErefers to EXISTING corporate governance mechanisms and processes which ensure that the value from investments is optimised throughout the economic lifecycle.

Principle 4/3Vendor/in-house developer is providing quality deliverables to plan Principle 4/4Changes to scope, schedule and budget are approved by the designated approval authority Principle 4/5Impact of any changes is understood and Business Case updated, where appropriate, when project constraints significantly change SAMPLE PRINCIPLES Copyright © 2009 Group Joy Pty. Ltd. All rights reserved.

Control 1/3/1Projects which build duplicate capability need to be eliminated or rationalised Control 1/3/2Projects which produce similar outcomes need to be eliminated or rationalised Control 1/3/3New projects have been selected to fill organisational capability gaps SAMPLE CONTROLS Copyright © 2009 Group Joy Pty. Ltd. All rights reserved.

SAMPLE TOOLS – CHECKLIST Copyright © 2009 Group Joy Pty. Ltd. All rights reserved. Principle 1/5 - Selected projects must have an acceptable level of risk Does the project have a high probability of success? Is the project risk within the risk tolerances of the organisation? Does the project leverage from and is aligned with, the IT strategy/Enterprise Architecture? Principle 1/6 - Project portfolio optimises business outcomes across the whole organisation, within affordability constraints Is the total project/discretionary expenditure within budget guidelines? (Can we afford it?) Do the target business outcomes measurably support business objectives?

Linking PrinciplesWarning signals Principle 2/1 Each project must have well defined Business Drivers Business Drivers are not defined or unclear Business Drivers are not aligned to stated corporate objectives Project business drivers are no longer relevant to the organisation’s strategy or tactical priorities SAMPLE TOOLS – CHECKLIST Copyright © 2009 Group Joy Pty. Ltd. All rights reserved.

Process Map 1/2Analytical Process Map – Managing ICT Portfolio: Key Considerations SAMPLE PROCESSES Copyright © 2009 Group Joy Pty. Ltd. All rights reserved.

COMPLEMENTARY SERVICES The following other associated PIAF services are offered by Group Joy: Portfolio Management Practice Risk Assessment (using PIAF as the reference model) Organisational Investment Management Maturity Assessment (for the whole Investment Lifecycle) Establishment of Investment Management Assurance processes Current Investment Management Practice Improvement Plan For further details about these services please contact Mr Gerry Barr of Group.Joy Pty. Ltd., Melbourne, Australia,