How can projects be controlled?

1
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
2
Agenda

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

3
Corporate governance

• Corporate governance involves a set of
  relationships between a companys 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

4
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

5
Combined Code

• Directors
• 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

6
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

7
Organisation structure
8
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 organisations project portfolio
  is aligned to the organisations 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

9
Using best practice
10
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 communitys 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

11
Capability Maturity Models
12
Use P3M3 to improve performance
13
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 organisations project and programme management processes?
Is there an ongoing training effort to enhance the competence of staff working on projects?
14
Governance at the implementation level

• The Portfolio Office
• Manages the approval process
• Prioritisation, Performance and Benefit
  Realisation
• Quality assurance

15
(No Transcript)
16
How the APM governance principles are covered if
an organisation has embedded PRINCE2/P3M3
Governance of Project Management Principles P2MM Level 3 P3M3 Level 3
1 The board has overall responsibility for governance of project management. Partial Partial
2 The roles, responsibilities and performance criteria for the governance of project management are clearly defined. v v
3 Disciplined governance arrangements, supported by appropriate methods and controls, are applied throughout the project life cycle. Partial v
4 A coherent and supportive relationship is demonstrated between the overall business strategy and the present portfolio. NA Partial
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. v v
6 Members of delegated authorisation bodies have sufficient representation, competence, authority and resources to enable them to make appropriate decisions. Partial Partial
17
How the APM governance principles are covered if
an organisation has embedded PRINCE2/P3M3
Governance of Project Management Principles P2MM Level 3 P3M3 Level 3
7 The project business case is supported by relevant and realistic information that provides a reliable basis for making authorisation decisions. v v
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 v
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. v v
10 The organisation fosters a culture of improvement and of frank internal disclosure of project information. Partial Partial
11 Project stakeholders are engaged at a level that is commensurate with their importance to the organisation and Partial v
18
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?

19
What do we do in this space?
20
Gordian Enterprises Limited

• If you would like more information then please
  contact
• Mike Ward or Kevin OSullivan
• Tel [phone]
• info_at_gordian-enterprises.com
• www.gordian-enterprises.com