session 1.4 - s3.amazonaws.compdf/pd… · presented by darya duma, peng, pmp, prince2™ project...

Presented by Darya Duma, PEng, PMP, PRINCE2™

www.procept.com

Project Governance –Or Is It Governance of Projects?

PMI SOC PDD 2013v2013.1

©Procept Associates Ltd. 2013

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Outline

• What is project governance?

• Governance of projects, programs and portfolios as reflected in international standards

• Translating principles of governance of projects to a case study

• But first…

Procept provides...

• Training and consulting in…

• Project management

• Business analysis

• “ITIL” IT service management

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University Partners

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Clients

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What Is Governance?

• Corporate governance defines the rules by which an organization conducts its operations

• Usually includes:

• Enterprise risk management strategy

• Description of relationships between shareholders, board, management, and other stakeholders

• Structure through which objectives are set and the means of attaining them

• Guidelines for information disclosure and transparency

• May include identification of values

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Governance of Projects

• PMBOK®:“The alignment of project objectives with the strategy of the larger organization by the project sponsor and project team. …is separate from organizational governance.”

• PRINCE2™:“…ensures that an organization’s project portfolio is aligned to the organization’s objectives, is delivered efficiently and is sustainable.”

• Wikipedia“…management framework within which project decisions are made.”

• APM echoes PRINCE2™ and adds:“…also supports the means by which the board and other major projgectstakeholders exchange timely, relevant and reliable information.”

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Governance of Projects

• Defines how projects are directed and controlled

• Aligns with corporate governance

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Principles

• Business justification for project

• Executive accountability

• Defined authorities

• Decision-making structure

• Transparent communication

• Direction for efficient use of resources.

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Business Justification

• A Business Case for every project

• Benefits identified

• Expected benefits align with strategic objectives

• Ownership of benefits identified

• Other elements to include:

• Business risks

• Priority or ranking of project with other work

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Executive Accountability

• What does that mean to you?

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Executive Accountability

• One distinct Project Sponsor

• Provides oversight and direction

• Project Sponsor owns the business case

• May be the project customer or funder

• Provides authority to the project manager and access to resources

• Authorizes project or phases in the project

• “Directing a Project” PRINCE2™ process

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Steering Committee or Project Board

Senior User

Defined Authorities

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Project Team Project Manager

Project Sponsor

Decision-making Structure

• Project controls

• Auditable PM Process

• Stage gates established and recorded

• Business case reviewed

• Includes project closing and benefits review

• Boundaries for PM authority identified

• Issue escalation process

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Transparent Communication

• Project performance reporting

• Proactive risk management

• End of stage reviews

• Emphasis on control and accountability

• Lessons learned

• Audits of governance framework

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Efficient Use of Resources

• Portfolio management

• Defined roles and responsibilities

• Appropriate accountabilities and authorities

• Project management office

• Project objectives match resource availability and capability

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Reminder:Portfolio, Programs, Projects…

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PORTFOLIO

PROGRAMS

PROJECTS

PROJECTSPROJECTS

PROJECTSPROJECTS

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Project Portfolio Management

• Doing projects right is project management

• Doing the right projects is project portfolio management

• The following is most applicable to internal projects, less so if projects are for external customers

The Organizational Context

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The Standard for Portfolio Management, Fig 1.2, contributed by C Emond, R Thibaud, H Bouchard

Governance of Portfolios

• Broader outlook

• Portfolio alignment with business strategy

• Project ranking

• Balancing of portfolio

• Risk management

• Transparent scoring model

• Decision-making authority

• Verification of governance for projects.

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Relationship Between Program And Project

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PROJECT

INITIATION PLANNING EXECUTION

MONITORING & CONTROLLING

CLOSURE

CORPORATE STRATEGIC PLAN

PROGRAM

MANAGE-MENT

APPROACH

RISKS & ISSUES

CHANGES TO SCOPE, COST, SCHEDULE

GOALS&

BENEFITSGOALS

BENEFITS?

Governance of Programs

• Programs have long life cycles

• May sustain parts of an organization’s business

• May be joint ventures with other organizations

• Unique governance framework for each program

• But addresses similar elements as portfolio governance framework

• Should still be aligned with corporate governance.

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Case Study

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Policy PMO Org. Chart PM Framework

Quality Gates

Corp GovPrinciples

Project GovPrinciples

Governance Framework

Sarbanes Oxley, Treasury Board Of Canada

Legislation

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Project Management Policy

• Purpose

• Principles

• Application

• Authority and accountability

• Financial resources

• Relationship to corporate governance

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Reporting Structure

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Client(Procurement / Architect)

Project Board

Project Assurance (TSD)

The Project Team Structure

Regional PM

Project Officer

Program Management Office

RegionalDirector

Functional ReportingSupervisory Reporting

Technical SME’S Team Manager (eg. Consultant, Contractor)

Client Representative

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Quality Gate

• GN PM Process Map

• Description

• Purpose

• Timing

• Responsibility

• Quality Process

• How to ensure its being done well

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Summary

• Defining a governance framework for projects, programs and portfolios is essential

• Controversial, but we can agree that:

• Aligned with corporate (organizational) governance

• Projects should have a business justification

• Accountabilities and responsibilities at all levels need to be clear

• Policies on risk, communication, resources and stakeholder management are elements.

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Thank you!

Darya Duma, PEng, PMP, PRINCE2, PSP, MCT

Procept Associates Ltd1234 Kingston Road, Suite 125Toronto Ontario M1N 1P3

Tel 416-693-5559www.procept.comduma@procept.com

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