The principles of effective

P3 Governance

The components of a P3 governance framework

The decision making structure

The people that operate within the structure

Business case

Status Report

The information that informs their decision

Question

be made by

What

a project board?

decisionsshould

ONE

Which of the following roles

should be least likely to be

the SRO of a

change program?

Q

u

e

s

t

i

o

n

2

CEO

GM - Strategic

Planning

COO

CIO

CFO

How do you identify the

person accountablefor the success of a

project?

Q3

What is the role(s) of the

business case?

Question 4

Executive Management Team

Business

as

Usual

Executive Management Team

Business

as

Usual

Executive Management Team

Business

as

Usual

Executive Management Team

Business

as

UsualCEO

Delivery OperationsPolicy Planning Corporate

Corporate Organisation

Executive Management Team

Business

as

UsualCEO

Delivery OperationsPolicy Planning Corporate

Corporate Organisation

Executive Management Team

Business

as

Usual Projects

Programmes

CEO

Delivery OperationsPolicy Planning Corporate

Corporate Organisation

Executive Management Team

Business

as

Usual Projects

Programmes

CEO

Delivery OperationsPolicy Planning Corporate

Corporate Organisation

Executive Management Team

Business

as

Usual Projects

Programmes

CEO

Delivery OperationsPolicy Planning Corporate

Corporate OrganisationProject Board

Project Executive

Senior Suppliers

SeniorUsers

Project Manager

Project Organisation

Executive Management Team

Business

as

Usual Projects

Programmes

CEO

Delivery OperationsPolicy Planning Corporate

Corporate OrganisationProject Board

Project Executive

Senior Suppliers

SeniorUsers

Project Manager

Project Organisation

Portfolio

The Governance Triangle

Executive Management Team

Separate BaU and Change

Establish a single point of accountability

• A project should have ONE person identified as being accountable for its

success.

• This person/role should remain constant over the life of the project.

• They should represent the business unit that will benefit from the project.

• Known as Project Owner/Project Executive/Senior Responsible Owner (SRO.)

Choose the right Project Owner

• Wrong Project Owner = wrong project outcomes.

• Business outcome so Project Owner needs to represent the business.

• Project meets their business needs.

The role in the organisation that owns any particular service outcome should

own any project that will enable that service outcome.

Service outcome ownershipdetermines project ownership.

Support the Project Owner with a Project Board

• Project Owner needs support of key project stakeholders.

• Stakeholders may include representatives of:

• Those who fund the project

• Those who use the products produced by the project (PRINCE2 =

Senior User).

• Suppliers to the project, perhaps both internal and external to the

organisation.

Limit numbers to around 6 for a project

(say 10 for a program with multiple projects)

Separatestakeholder management

andproject decision making

Empower the Project Owner

• Project Owner must have:

• Decision making authority

• Own the project budget

• Own the business case because it describes their investment

23

Business case

accountability

Project

accountability

Budget

accountability

Service

outcome

accountability

Maintain the business case

• The business case has two roles:

• Justify the investment.

• Act as a governance tool for the Project Board.

• Contains the key parameters that define the project – drivers, expected outcomes, benefits, budget, schedule, quality standards, scope, funding, assumptions, interdependencies etc.

• Variations assessed against the business case.

What decisions are made by a Project Board?

Any decision that can have a material impact on the business case.

Ensure consistent decision rights

• Possibly many decision making entities associated with the

governance of a project.

• Who makes what decisions?

• No gaps.

• No overlaps (because this creates confusion).

• It gets more complex if the project is part of a program.

Board

CEO

Director

Divisional Manager

Jurisdictional

Representative

Systems and

ProcessesResources

Operating

Company Board

Operating

Company CEO

Operating Co.

Project Team

Rep

DCM Contractor

Mtce Contractor

Project

Finance

Agreement

Auditor

Auditor’s

Contract

Funding

Organisation

Director

CEO

Shareholder

Shareholder

Agreement

Franchise

Agreement

Project Working

Group

Finance

Corporate

Departments

Design

Resources

Area/district

Company

budget

MOU

approvals

Portfolio Board

Project Board

Project Manager

Project Team

consistent decision rights

$Portfolio Board

Project Board

Project Manager

Project Team

any decision that may have a material impact on

the business case

Make day-to day decisions that do not impact the

business case

Question

be made by

What

a project board?

decisionsshould

ONE

Which of the following roles

should be least likely to be

the SRO of a

change program?

Q

u

e

s

t

i

o

n

2

CEO

GM - Strategic

Planning

COO

CIO

CFO

How do you identify the

person accountablefor the success of a

project?

Q3

What is the role(s) of the

business case?

Question 4

Other sources

https://www.axelos.com/case-studies-and-white-papers/programme-and-project-accountability

www.rossgarland.com

http://www.koganpage.com/editions/project-governance/9780749453060

or Amazon

+ 61 401 970 909

info@rossgarland.com

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