Presentation on theme: "How can projects be controlled?"— Presentation transcript:
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
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 1986Proposed legislation: Operating and Financial Review (OFR)Self regulatory frameworkThe Combined Code
5 Combined Code Directors Remuneration Accountability & Audit The BoardChairman and chief executiveBoard balance and independenceAppointments to the boardInformation and professional developmentPerformance evaluationRe-electionRemunerationThe level and make-up of remunerationProcedureAccountability & AuditFinancial reportingInternal controlAudit committee and auditorsRelations with StakeholdersDialogue with institutional shareholdersConstructive use of AGM
6 Programme-level governance Governance is the control framework through which programmes deliver their objectivesA programme needsClear and open governanceTo negotiate resourcesTo adjust to changing organisational contextsTo deliver its outcomes and benefitsThe need for Governance over change is manifested in two ways :Control and ownership of the transformation programmeControl and ownership/stewardship of the organisation as a corporate entity
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 2005The 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
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 startthe benefit of a community’s prior experiencesa common language and a shared visiona framework for prioritising actionsa way to define what improvement means for your organizationA maturity model can be used as a benchmark for assessing different organizations for equivalent comparison.” - Wikipedia
12 Use P3M3 to improve performance MetricsStep 4 How will you know?Improvement PlanStep 3 How will you get there?Appropriate KPAsStep 2 Where do you want to be?Baseline Assessment
13 QuestionF/L/P/NLevelDoes 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 OfficeManages the approval processPrioritisation, Performance and Benefit RealisationQuality assurance
16 How the APM governance principles are covered if an organisation has embedded PRINCE2/P3M3 #Governance of Project Management PrinciplesP2MMLevel 3P3M31The board has overall responsibility for governance of project management.Partial2The roles, responsibilities and performance criteria for the governance of project management are clearly defined.√3Disciplined governance arrangements, supported by appropriate methods and controls, are applied throughout the project life cycle.4A coherent and supportive relationship is demonstrated between the overall business strategy and the present portfolio.NA5All 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.6Members 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 PrinciplesP2MMLevel 3P3M37The project business case is supported by relevant and realistic information that provides a reliable basis for making authorisation decisions.√8The board or its delegated agents decide when independent scrutiny of projects and project management systems is required, and implement such scrutiny accordingly.Partial9There are clearly defined criteria for reporting project status and for the escalation of risks and issues to the levels required by the organisation.10The organisation fosters a culture of improvement and of frank internal disclosure of project information.11Project stakeholders are engaged at a level that is commensurate with their importance to the organisation and
18 SummaryOwnership – 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?