Showcase 2002 AIPM Conference 1

Aligning Project Outcomes with your Strategic Direction

A paper presented by

Chris Cartwright

Perth August 2002

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Project Steering is all about Project Governance

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Project Business Perspective

• Scarce resources are steered into the most desirable business direction

• Projects are initiated and procured in a business-oriented manner

• Benefits for the customer as well as for the

organization are considered

• A suitable Sponsor is appointed

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Project Organizational Perspective

The project sponsor is responsible for:

• Managing Strategically Important Project Interfaces

• Making Business Decisions about the Project

• Managing the Project's Business Opportunities

• Managing the Project Scope and Project Procurement

• Exercising Leadership and Acting as a Role Model

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Project Organizational Perspective

The project sponsor is responsible for:

• Managing Strategically Important Project Interfaces

• Making Business Decisions about the Project

• Managing the Project's Business Opportunities

• Managing the Project Scope and Project Procurement

• Exercising Leadership and Acting as a Role Model

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Project Organizational Perspective

The project sponsor is responsible for:

• Managing Strategically Important Project Interfaces

• Making Business Decisions about the Project

• Managing the Project's Business Opportunities

• Managing the Project Scope and Project Procurement

• Exercising Leadership and Acting as a Role Model

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Project Organizational Perspective

The project sponsor is responsible for:

• Managing Strategically Important Project Interfaces

• Making Business Decisions about the Project

• Managing the Project's Business Opportunities

• Managing the Project Scope and Project Procurement

• Exercising Leadership and Acting as a Role Model

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Project Organizational Perspective

The project sponsor is responsible for:

• Managing Strategically Important Project Interfaces

• Making Business Decisions about the Project

• Managing the Project's Business Opportunities

• Managing the Project Scope and Project Procurement

• Exercising Leadership and Acting as a Role Model

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Project Management Function

Sponsor ensures people are assigned roles in the project management function ie:

• Person responsible for the first phase • Project manager • Other members of the project staff,

• These people are responsible for delivering results according to the agreements made with the project sponsor

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Project Human Perspective

Sponsors should:

•Provide Leadership

•Make clear decisions

•Act as a Role Model

•Be the source of inspiration

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Risk and Product Lifecycle

Product Lifecycle

Project Lifecycle

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A simple governance gating model

Feasibility Planning Execution Close

A Gate is a FORMAL Business Decision

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Make decisions when a change of state occurs

TG0 Change from Line to Project way of working

TG1 Change from high level/options to detail

TG2 Change from plan to actual

TG3 Change from uncertainty to certainty

TG4 Change from project issue to organisation issue

TG5 Close the project

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  Formal Tollgate Decisions

TG0 Start of project feasibility

TG 1 Start of project detailed planning

TG 2 Start of execution of the project

TG 3 Continued execution according to original or revised plan

TG 4

Start of hand-over of project outcome to the receiver and the customer

TG 5 Project outcome accepted, start of project conclusion

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Possible Decisions

• Pass Gate and continue with re-confirmed goals

• Do not pass, go back and repeat X

• Do not pass, go to close and terminate project

All decisions have equal weight/correctness

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Ability to change v Cost of Change

Ability to Change

Cost ofChange

Project Life Cycle

$TG3

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Letter of Intent / Contract  

Profitability Calculations Mandatory

Network Impact Statement Mandatory

Customer Requirements defined Mandatory

Project Goals & Objectives defined Mandatory

Project Scope & Strategy defined Mandatory

Project Deliverables defined Mandatory

Project Timeplan, MS & TG’s defined Mandatory

Risk Analysis Mandatory

Project Organization and Competencies defined Mandatory

Support Arrangements defined (ERA, ETX, etc.) Mandatory

Reporting Routines defined Mandatory

Project Specification (incl. Quality Plan if applicable) Mandatory

Estimated BTA Hours for Execution Mandatory

Training Course Development Initiated  

Exemptions (S/W, H/W & Docware)  

Hardware Ordered  

Baseline established (timing and costs) Mandatory

MS2 Review (Core 3 meeting)

      Commercial Agreement, Network Impact Statement, Project Spec, Estimated Hrs.

Mandatory

Example of a checklist for a tollgate meeting

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Thank you for your attention

Questions?