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 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

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 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

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
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

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 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

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 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

11. Capability Maturity Models

12. 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

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 organisation’s 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

16. 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.

17. 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

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 O’Sullivan
Tel: