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