Effective Governance

of Change

#APMGovSIG

@APMGovSIG

www.apm.org.uk/group/apm-governance-specific-interest-group

APM Presenters

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Jo Langley

BMT Hi-Q Sigma's Principal Consultant in programme management

and training. An experienced programme manager with roots in

engineering and key skills in the defence, rail and construction

services domains.

APM member, a member of the APM Governance SIG committee,

MSP Advanced Practitioner and member of the Institute of Risk

Management.

Martin Samphire

Martin is the owner and Managing Director of 3pmxl Ltd, a consultancy

that specialises in helping clients to transform their business using

structured PPPM approaches. He has over 30 years management

consulting and change / project/ programme / portfolio implementation

experience in both the private and public sectors.

Martin is Chairman of the APM SIG on Governance as well as being a

committee member for the APM SIG on Portfolio Management.

Governance is topical

3

West coast mainline refranchising

“Irresponsible decisions, compounded by civil service failures, led to the

collapse of the West Coast Main Line rail franchise competition” says

Transport Committee

"This episode revealed substantial problems of governance, assurance, policy

and resources inside the Department for Transport. Embarking on an ambitious -

perhaps unachievable - reform of franchising, in haste, on the UK’s most

complex piece of railway was an irresponsible decision for which ministers were

ultimately responsible. This was compounded by major failures by civil servants,

some of whom misled ministers.

4 4

Content

APM Governance SIG Introduction

What is Governance of Project

Management

Effective Governance of Change

Summary & Questions

5

APM mission

Working collaboratively, create new standards and

knowledge and enhance their application amongst

individuals and organisations, such that all projects

succeed.

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Governance SIG objectives

Be the UK focus

Advance understanding

Contribute to good practice

Influence national and international standard

making authorities

Influence those operationally responsible

Develop ambassadors and exemplars of

excellence

7 ….in the governance of project management (change)

Governance SIG activities

Engagement – CxO level and APM

members

Governance Benchmarking Group

Conferences and Seminars

Publications

Development (of Governance material)

Influence of and contribution to standards

8

Directing Change

2nd edition 2011

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Co-Directing Change

2007

Sponsoring Change

2009

Free to APM members at www.apm.org.uk/memberdownloads

GovSIG – Publications to date

Content

APM Governance SIG Introduction

What is Governance of Project

Management

Effective Governance of Change

Summary & Questions

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Project Management Governance – APM

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 organization’s project portfolio is aligned to the organization’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 exchange timely, relevant and reliable information.

PM Governance definitions

Project Governance - ISO 21500

Governance is the framework by which an organization is directed and controlled. Project governance includes but is not limited to those areas of organizational governance that are specifically related to project activities.

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Change in context

Mission

Strategy & Objectives

Portfolio Mgmt –

Definition &

Monitoring

Operational

Planning & Mgmt

Programme and Project

Mgmt of authorised

P&Ps

Operational Mgmt

of on-going operations

(BAU)

Organisational and External Resources delivering tasks

Vision Portfolio Management

“Doing the right

projects”

Programme & Project

Management

“Doing the projects

right”

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Project Governance and GoPM Project/Programme Level Organisational Level

Project board regularly chaired by a sponsor Individuals stay in sponsor role throughout each

project lifecycle

Governance structure for a project defined Sponsors are accredited and accountable

Progress reporting for a project is accurate and

timely

Projects report against a common template.

Exception reports available at executive level

There is a coherent project plan Projects are prioritised in line with strategic

objectives

Project stakeholders are involved in the

direction of a project

The board directs the change agenda

There is an integrated assurance and approvals

plan for a project

The board has oversight of the gate review

programme – individual executives are

intimately involved in reviews

The project management team is competent

and fully resourced

All project players are trained, assessed against

a competency framework, accredited?

Capacity is balanced against demand

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Examples of poor governance

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Consistent failures: need for a new focus

Heavy investment in change

delivery framework, tools and

skills (PM focus)

Success rate for projects not

improved

Need new “medicine”

Could that be more focus on

Exec / Directors / Sponsor

roles?

Successful Governance

leading to more successful

Delivery? 15

Lack of a clear link between the project and the organisation’s key

strategic priorities, including agreed measures of success.

1.

Lack of clear senior management and ministerial ownership and

leadership

2.

Lack of effective engagement with Stakeholders 3.

Lack of skills and proven approach to project management and risk

management.

4.

Lack of understanding of and contact with the supply industry at senior

levels within the organisation.

5.

Evaluation of proposals driven by initial price rather than long-term

value for money (especially securing the delivery of business benefits).

6.

Too little attention to breaking development and implementation into

manageable steps.

7.

Inadequate resources and skill to deliver the total delivery portfolio. 8.

Factors in project failures (OGC)

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Measures of success

1. Project management – did project meet time,

cost, quality objectives? Project Mgr measure

2. Project – were business benefits realised?

Project Sponsor / Programme Mgr measure

3. Business – was business strategy delivered and

for best value? Portfolio Mgr / Investment director

/ CEO measure

4. Was future value created? CEO / Shareholder

measure

17 Governance success– kill projects early and quickly

Content

APM Governance SIG Introduction

What is Governance of Project

Management

Effective Governance of Change

Summary & Questions

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Directing Change from APM

• Portfolio direction

• Sponsorship

• PM Capability

• Disclosure and

reporting

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APM Governance principles 1. The board has overall responsibility for governance of project

management.

2. The organisation differentiates between the projects and non-project

based activities

3. The roles, responsibilities and performance criteria for the governance

of project management are clearly defined.

4. Disciplined governance arrangements, supported by appropriate

methods, resources and controls, are applied throughout the project

lifecycle.

5. Every project has a sponsor.

6. There is a demonstrably coherent relationship between the overall

business strategy and the project portfolio.

7. 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. 20

APM Governance principles

8. Members of delegated authorisation bodies have sufficient representation,

competence, authority and resources to enable them to make appropriate

decisions.

9. The project business case is supported by relevant and realistic information

that provides a reliable basis for making authorisation decisions.

10. The board or its delegated agents decide when independent scrutiny of

projects and project management systems is required, and implement such

scrutiny accordingly.

11. There are clearly defined criteria for reporting project status and for the

escalation of risks and issues to the levels required by the organisation.

12. The organisation fosters a culture of frank internal disclosure of project

information.

13. Project stakeholders are engaged at a level that is commensurate with their

importance to the organisation and in a manner that fosters trust

14. Projects are closed when they are no longer justified as part of the

organisation’s portfolio 21

Number 1 principle organisations

struggle with – poll result

0 5 10 15 20 25 30 35

1.Board responsibility

2.projects and non-project differentiation

3.Governance responsibilities clearly defined.

4. Project lifecycle control

5.Project sponsorship

6. Portfolio alignment

7.Authorisation points

8. Competence, authority and resources of decision-makers

9. Project business case

10. independent scrutiny

11. Reporting project status

12. Culture of frank internal disclosure

13. Stakeholders engagement and trust

14. Stopping Projects

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Governance of project

management involves…

Engaging with stakeholders to ensure change supports

organisational objectives (alignment)

Defining where what type of change decisions can be most

effectively made (golden thread of delegation)

Defining when critical change decisions need to be made

and those involved in making them (decision gates)

Ensuring transparency of change decisions/actions and

communicating their outcome (reporting)

Ensuring appropriate resources are in place (competence)

Corroborating through independent review (assurance)

Demonstrating the right behaviours from the top (leadership

and culture) 23

Board

Governance isn’t just what the project

board does!

CEO

Directors

NED

Portfolio

Mgrs

Programme

Mgrs

Project

Mgrs

Sponsors

Functional

Mgrs

Suppliers

Partners

Stakeholders

Assurance

Mgrs

Risk

Mgrs

They all need to be competent in their change role 24

In practice….

Alignment

(objectives)

Delegation

(authority)

Competence Decision

Gates

Reporting Assurance

Shareholders

Company Board

Programme

Board (+SRO)

Programme

Manager

Project Board

Project Manager

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Improving governance of change

Do a governance audit

– Use the ‘Directing Change’ principles

– Understand your governance metrics

(time taken to make decisions, recycling rates for decision

requests, number of layers between requestor and decision-

maker, number of poor decisions, cost of poor decisions)

– Benchmark your metrics

Target to improve both effectiveness and efficiency

Treat governance as a system starting at the top and flowing

down (how are board decisions made and accounted for?)

Integrate Governance of Change with Corporate Governance (it

is not an add on)

Drive competence and performance at all layers and all

elements

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GovSIG Benchmarking Group –

some metrics

Project termination and ‘churn’ in the portfolio

Project alignment to business strategic

objectives

Existence of, competency and longevity of

Project Sponsor

Formal responsibility for benefits realisation

Formality of project reviews

Head of PM profession

Unwelcome surprises at Board level

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Content

APM Governance SIG Introduction

What is Governance of Project

Management

Effective Governance

Summary & Questions

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Benefits of adopting a formal

approach

Assurance that robust governance requirements are applied

across the projects managed in their organisation

Optimisation of the portfolio of projects

Avoid many of the common failures in project and

programme performance

Improve relationships with staff, customers and suppliers

Minimise risks to the organisation arising from projects

Maximise the benefits to be realised from projects

Assure the continued development of the organisation

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Supporting the right behaviours

Responsible and Effective Corporate

Governance

Leads to…

Responsible and Effective Governance of

Project and Programme Management

Leads to…

The right behaviours – The right culture

Driving the right behaviours from the top

Thank You

The Governance SIG is always seeking new members.

See the SIG pages on APM website for details.

www.apm.org.uk/group/apm-governance-specific-interest-group

Any questions?

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For follow-up contact

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msamphire@3pmxl.com

+44 7798 700314

Joan.Langley@hiqsigma.com

+44 7834 254294