project governance - apm programme and timescales, not the business’ internal process ... lcm...

Date/reference/classification [INTERNAL USE ONLY/IN STRICT CONFIDENCE] © BAE Systems 2012 Maritime Services

Project Governance

Ian Williams Head of Project Management - Maritime Services

1

15th October 2012


• Introduction

• Terminology and definitions

• Project governance principles

• BAE Systems Operational Framework

• Lifecycle Management

• Responsible Behaviour

• Application in Maritime projects

Topics


• Governance has become a more widely used term in recent years to the

point that common usage now implies a strong personal responsibility as

well as the role of authority. Clear terminology is important for those

seeking to understand the project governance responsibilities that apply

to their role.

• This briefing will help project managers and others involved in project

delivery, understand what comprises good project governance as they go

about the task of delivering increasingly complex projects.

Introduction


• Law n. a system of rules and guidelines which are enforced through

social institutions to govern behaviour. Laws are made by Governments.

• Governance n. the act of governing

• In Business, governance relates to consistent management, cohesive policies,

guidance, processes and decision rights for a given area of responsibility

• Project Governance is the management framework within which project

decisions are made

• Mandate n. Authoritive command

• Compliance n. Acting in accordance with a request or command

Terminology


‘Governance refers to the set of policies, regulations, functions, processes,

procedures and responsibilities that define establishment, management and

control of projects, programmes and portfolios.’

APM Body of Knowledge 6th Edition

Definition


Three Pillars of Project Governance

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People

Structure

Information


• This refers to the governance committee structure. As well as there being

a board or project steering committee, the broader governance

environment may include various stakeholder groups and perhaps user

groups.

• Additionally, there may be some form of portfolio decision making group.

The decision rights of all these committees and how they relate must be

laid down in policy and procedural documentation. In this way, the

project’s governance can be integrated within the wider governance

arena.

• All of the above must take into account the project management

capability that exists in the organisation.

Project Governance Structure


• A key role is that of a project sponsor

• The project sponsor; has three main areas of responsibility which are to

the board, the project manager and the project stakeholders.

• For the board, the sponsor provides leadership on culture and values,

owns the business case, keeps the project aligned with the organisation's

strategy and portfolio direction, governs project risk, works with other

sponsors, focuses on realisation of benefits, recommends opportunities to

optimise cost/benefits, ensures continuity of sponsorship, provides

assurance and provides feedback and lessons learnt.

Project Governance People


• For the project manager, the sponsor provides timely decisions, clarifies

decision making framework, clarifies business priorities and strategy,

communicates business issues, provides resources, engenders trust,

manages relationships, supports the project manager's role and promotes

ethical working.

• For stakeholders, the project sponsor engages stakeholders, governs

stakeholder communications, directs client relationship, directs

governance of users, directs governance of suppliers and arbitrates

between stakeholders

Project Governance People


• This concerns the information that informs decision makers and consists

of regular reports on the project, issues and risks that have been

escalated by the Project Manager and certain key documents that

describe the project, foremost of which is the business case.

Project Governance Information


What does project governance mean to …

• Chief Executive

• Alignment with key business objectives

• Controls are in place

• Peace of mind

• Project Sponsor

• Management of the Business Case

• Alignment of key stakeholders

• Represent the project

• Clear direction and decision making

• Learning from experience

• Project Manager

• Clear framework of responsibility, accountability, delegated authority

• Management of issues, change, risks and opportunities

• Reporting, review, audit, (more!) work

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What does project governance mean to …

• Stakeholders

• Communication of status

• Open and honest reporting

• Timely and reliable project forecasts

• Customer

• Peace of mind?

• Delivery on time?

“In high performing organisations, the timeline is driven by the customer’s

procurement programme and timescales, not the business’ internal process”

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1. Ensure a single point of accountability for the success of the project

2. Project ownership independent of Asset ownership, Service ownership

or other stakeholder group

3. Ensure separation of stakeholder management and project decision

making activities

4. Ensure separation of project governance and organisational governance

structures

,

Project Governance Principles


1. A compelling business case

2. Mechanism to assess compliance

3. All stakeholders identified

4. A defined method of communication

5. Agreed business level requirements

6. Agreed specification

7. Appointment of a project manager

8. Clear roles and responsibilities assigned

9. Up to date project plan

10. Systems in place to report progress

11. Process for management and resolution of issues

12. Process for recording and communicating risks

,

Elements of good project governance


Sponsor

• Do not confuse governance with measurement

• Don’t ask for a report just because you can!

Project

• Beware implied mandates, e.g. shall, must, will, should, etc.

• Challenge the ‘norm’ you may find it’s not mandated;

All

• Clear and consistent terminology

• Rules will be bent/broken so minimise number of rules, but make the

penalty fit the non-compliance

• Open and honest approach

• Good Project Governance helps ensure that we do the right things and

meet time, cost and quality commitments

Making it work


APM Governance of Project Management Specific Interest Group

Sponsoring Change: A guide to governance of project sponsorship

Directing Change: A guide to governance of project management

Further Reading


BAE Systems

BAE Systems is a global defence and security company with

approximately 100,000 employees worldwide. The Company delivers

a full range of products and services for air, land and naval forces, as

well as advanced electronics, security, information technology

solutions and support services.

• Customers in more than 100 countries

• 2010 sales of £22.4 billion

• Majority of revenue is achieved through delivering projects

• Project governance is directly linked to the Operational Framework

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Date/reference/classification [INTERNAL USE ONLY/IN STRICT CONFIDENCE] © BAE Systems 2012 Maritime Services 18

Operational Framework

• Outlines our values, policies and processes

• Provides clarity on top-level roles, responsibilities and delegated authorities

• Sets out how we will meet our Group Strategic Objective

• Mandates policies, processes & charters to be used across the Company

• BAE Systems plc Board approved

• Applicable to all employees

“It provides a stable foundation from which to deliver our strategy, improve our

Company Performance and develop our culture of Total Performance”

“The Operational Framework sets out the way we do business across our Company”


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What is in the Operational Framework ?


Corporate Business Management System Model

…four interlinking elements that together comprise BAE Systems’ system of internal controls

Chief Executive – Introduction to the Operational Framework


Five Core Business Processes

Lifecycle Management

Mergers, Acquisitions

and Disposals

Total Performance Leadership

Performance Management

Integrated Business Plan

Report &

Reviews

(Core Business

Processes)

…five core business processes mandated by the Operational Framework

….key elements of BAE Systems’ Business Management System


BAE SYSTEMS PROPRIETARY

Project Performance Management through LCM

• LCM is the process for Performance

Management of our Projects

• LCM establishes the framework for

effective planning and review of

Projects

• The LCM Framework is the link

between the Operational Framework

and the embodiment of LCM in the

Business Management Systems

LCM Framework defines the What, Who, When and Why – BMS defines How

Business

Management

System

http://intranet.ent.baesystems.com/howwework/operationalframework/Pages/lcm_framework.aspx

http://intranet.ent.baesystems.com/howwework/operationalframework/Documents/operational_framework.pdf


Request for Bid Approval

Bid Status Review

Contract Review

Technical Bid Review

Design Review

Phase Review

Lifecycle Management Framework

…a series of 6 reviews define by the

Review and Overarching Mandates in

the Lifecycle Management Framework

… Two types of Gate Reviews

… Two types of Regular Reviews

… Two types of Approval Reviews

…the Lines of Business specify how

they are to be achieved by tailoring at:

…business level

…project level

“a structured approach

to managing the company's commitments

for all types of projects throughout

their lifecycles”

…guidance (not mandates) provided in

the LCM asset library of Guides and

Handbooks, best practice sharing



LCM Framework – Fundamentals

• Clear Purpose

• Clear and concise set of mandates

• 47 mandates define all that has to be

done

• LCM Threshold

• Set of Appropriate and effective

Regular and Gate Reviews

• Emphasis as much on Business

Winning as Contract Execution

• Tailoring is fundamental

• Roles and responsibilities clearly and

concisely summarised

• Terms specific to LCM defined

The LCM Framework is Simple and Clear



LCM Mandate Summary


Winning Business

Support M

obili

se

Dis

pose

Design & Build

2B 3A 4 5 6 8 3B 1A 1B 0 7 2C 2A

Phase Reviews

Generic Lifecycle

Design Reviews Bid

Ap

pro

va

l Regular Bid Status Reviews Regular Contract Reviews



LCM & Business Implementation, Application & Tailoring

Line of Business Responsibility


A Culture of Total Performance

It’s not just what we do, but how we do it.

• We are committed to developing a culture of Total Performance

• Our culture is key to delivering our strategy and keeping

the Company in good shape for the future

• Total Performance is about customer focus, financial

performance, programme execution and responsible behaviour,

all together

• Our culture is underpinned by our values - Trusted, Innovative

and Bold

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Code of Conduct

• Responsible behaviour with an

environment and culture that

allows people to speak out

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Our commitment to Corporate Responsibility

BAE Systems is committed to becoming recognised as a

leader in Responsible Business. It is integrating corporate

responsibility (CR) across the Company. BAE Systems’ CR

agenda is focused on:

• Business conduct

• Safety and well-being

• Diversity & Inclusion

• Environmental Sustainability

• Community Involvement

The CR agenda is externally assured to measure progress

and effectiveness.

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BAE Systems – UK Maritime business

The UK’s only provider of through-life naval capability,

providing design, manufacture, integration, support and

information systems for the UK’s nuclear powered and

conventional submarines, surface warfighting fleet, as well

as support for surface ships globally.

BAE Systems Maritime comprises three businesses:

• BAE Systems Maritime Services

• BAE Systems Maritime - Submarines

• BAE Systems Maritime - Naval Ships

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Maritime – UK Locations - Areas of Expertise

32 32

Chelmsford

Frimley

Hillend

Portsmouth

Barrow-in-Furness

Filton

Scotstoun

Govan

New Malden

Cowes Dorchester

Naval and Land Radar

Chelmsford / Cowes

Torpedoes and

Underwater Systems

Portsmouth

Trainers & Training Systems

Portsmouth

Torpedo, Radar and

Electronics Manufacturing

Hillend / Portsmouth /

Cowes

Ship building / fitting

Scotstoun / Govan/Portsmouth

Submarines

Barrow-in-Furness

Naval Command &

Information Systems (NCIS)

New Malden / Frimley /

Portsmouth / Dorchester

Naval Base Services

HMNB Portsmouth

Warship Availability

HMNB Portsmouth


Maritime Services Overview

Maritime Services is a £600M business with

3,500 employees

Our end-to-end maritime services include:

• Warship Availability & Sevices

• Naval Base Service

• Product & Training Services

Our operations are delivered across six sites

• Chelmsford

• Cowes

• Frimley

• Hillend

• Portsmouth Broadoak

• Portsmouth Naval Base

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Chelmsford

Frimley

Hillend

Portsmouth

Cowes


Maritime Services

• Comprised of approximately 600

projects

• Around 100 project s with a value

greater than £1million

• Three delivery (portfolio) areas

• A project management function of

more than 300 people

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Warship Availability & Support

• We use our manufacturing, supply chain, engineering and logistics expertise to ensure our customers get the optimum availability from their platforms and equipment.

Key Programmes & Activities

• Warship Availability

• Surface Ship Support Alliance and Programme

• Class Output Management & Joint Project Teams

• Contractor Logistic Support

• Engineering & Information Services

• Oman EAS

• Design Management Services

• Maritime Coast Guard Agency

• Maritime Record Data Centre (MRDC)

• Equipment Management

• Hunt Class Re-propulsion

• Waste Management

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Naval Base Services

• Our extensive experience managing Portsmouth Naval Base for the UK Royal Navy, enables us to provide everything a navy needs to affordably live and work in the base.

• We tailor our expertise in fleet time engineering, ship upkeep and naval base services to deliver engineering support across the globe.

• Our design, development and through-life support for small boats brings continuous operational advantage to our UK and international customers.


• Naval Base and Dockyard Management

• Warship Support Modernisation Initiative (WSMI)

• Ship Upkeep

• HMS Victory restoration

• International Support

• Saudi Mid Life Update

• Brazil OPV

• Small Boats

• Build

• In service Support

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Products & Training

• Our design, development, manufacture and through-life support for Torpedoes & Radar brings continuous operational advantage to our UK and international customers.

• We design, develop and deliver training services and systems to ensure personnel are capable and ready for maritime action.


• Torpedoes

• Centre of Excellence for torpedoes

• Sting Ray Mod 1

• Spearfish heavyweight torpedo

• Radar

• Sampson multi-function radar

• Artisan 3D

• Commander 3-Dimensional, Long Range Tactical Air Defence Radar

• High Frequency Over-The-Horizon Surface Wave Radar (HFSWR)

• Training

• Maritime Composite Training System

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Maritime Services - Support Facts

• We deliver support to over 50% of the Royal Navy’s Surface Fleet

ensuring vessels are available and ready for operations wherever and

whenever

• Maritime Services’ Contractor Logistics Support (CLS) is the only project

of its type in the world that delivers operational ship availability to the

Royal Navy

• We provide 24/7 logistics support to the UK Royal Navy on a global

basis as part of our Naval Base support services.

• As Class Output Manager for the Type 45 Destroyers, we are a single

point of contact for all in-service support to the fleet.


Maritime Services - Torpedoes Facts

• We are a Centre of Excellence for torpedoes, offering unparalleled

performance assuring crucial operational advantage and mission

capability through-life.

• Sting Ray Mod 1 is the world’s most advanced lightweight torpedo. It is

currently in service with the Royal Navy, Royal Air Force and the

Norwegian Armed Forces

• Our Spearfish heavyweight torpedo sets new standards in underwater

weapon performance.

• Spearfish delivers decisive advantage against the full range of

submarine and surface threats in all operational environments.


Maritime Services – Naval Radar Facts

• Our Sampson multi-function radar is virtually immune to enemy

jamming and can identify and track all types of air and surface

targets at distances of up to 400km

• Artisan 3D is the next generation medium range 3D surveillance

radar for the Royal Navy, replacing the Type 996 surveillance and

target indication radar. It exploits the full potential of the up-dated

Seawolf system and also serves as a secondary navigation facility

• It will be fitted from build to the Queen Elizabeth Class Aircraft

Carriers to provide Air Traffic Management and will be retrofitted to

Type 23 Frigates and amphibious assault ships.

• Artisan 3D will also be fitted to the Type 26 Frigates due to enter

service in the 2020s.


Maritime Services - Training Facts

• Our Maritime Composite Training System is a world class warfare

operator training simulation environment giving individuals and teams the

knowledge and confidence required to operate and fight before taking to

the seas

• The system can replicate every platform type of the surface warfighting

fleet – six in-service ship classes and BAE Systems’ three surface

Command Systems; DNA(2) in almost endless configurations.

• Since September 2011, it has been training crew for HM Ships York,

Montrose, Westminster, Illustrious, Sutherland, Daring, Diamond and

Dragon.


Maritime Services

‘It’s not just what we do, but how we do it.’

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BAE Systems Maritime Services

Victory Point

Lyon Way, Frimley, Camberley

Surrey, GU16 7EX

United Kingdom

Telephone +44 (0) 1276 603000

Fax +44 (0) 1276 603001

email [email protected]

www.baesystems.com/maritimeservices


Thank you

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