How can projects be controlled?

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

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Agenda Corporate Governance Programme-level governance Project-level governance Best Practice & Maturity Models Some detailed issues

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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

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UK governance Companies Acts of 1985 & 1989 Company Directors Disqualification Act 1986 Proposed legislation: Operating and Financial

Review (OFR) Self regulatory framework

– The Combined Code

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Combined Code Directors

– The Board– Chairman and chief executive– Board balance and

independence– Appointments to the board– Information and professional

development– Performance evaluation– Re-election

Remuneration– The level and make-up of

remuneration– Procedure

Accountability & Audit– Financial reporting– Internal control– Audit committee and auditors

Relations with Stakeholders– Dialogue with institutional

shareholders– Constructive use of AGM

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Programme-level governance Governance is the control framework through which

programmes deliver their objectives A programme needs

– Clear and open governance– To negotiate resources– To adjust to changing organisational contexts– To deliver its outcomes and benefits

The need for Governance over change is manifested in two ways :

– Control and ownership of the transformation programme– Control and ownership/stewardship of the organisation as a

corporate entity

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Organisation structure

Sponsoring Group

Programme Board

Project Board

Project Executive

SRO

Project Board

Project Executive

• Programme SRO• Programme Manager• Business Change Manager• Project Executives (if not Programme Manager)• Representatives of corporate functions• Lead supplier

• Project Executive• Senior User• Senior Supplier

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Project-level governance77% 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-17799 and ISO-9000.

Deloitte 2005

The 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

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Using best practice

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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 start– the benefit of a community’s prior experiences– a common language and a shared vision– a framework for prioritising actions– a way to define what improvement means for your organization

A maturity model can be used as a benchmark for assessing different

organizations for equivalent comparison.” - Wikipedia

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Capability Maturity Models

Level 1 – InitialChaotic, ad hoc, heroic - the starting point for use of a new

process

Level 2 – RepeatableProcess discipline - the process is used repeatedly

Level 3 – Defined

Institutionalised - the process is defined/confirmed as a standard business process

Level 4 – ManagedQuantified - process management

and measurement takes place.

Level 5 – OptimisingProcess improvement -

deliberate process optimisation/improvement.

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Use P3M3 to improve performance2

Rep

eata

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3 D

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1 In

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5 O

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Portfolio, Programme and Project Management Maturity Model (P3M3)

1.2Programme

Management Awareness

1.1Project

Definition

2.6Stakeholder Management

& Comms

2.9 Configuration Management

2.5Project Plan’g, Monitoring &

Control

2.1Business

Case Development

2.7Requirements Management

2.8Risk

Management

2.3Programme Definition

2.2Programme Organisation

2.4Project

Establishment

2.11Management of

suppliers & external parties

2.10Programme Planning &

Control

3.3Information

Management

3.5Process Definition

3.12Organisational

Portfolio Establishment

3.6Training Skills &

Competency Development

3.10Quality

Assurance

3.2Transition

Management

3.1Benefits

Management

3.9Inter-group

Co-ordination & Networking

3.4Organisational

Focus

3.8Lifecycle Control

3.7Integrated

Management & Reporting

3.11Centre of

Excellence Role Deployment

4.3Organisational

Cultural Growth

5.2Technology

Management

4.2Quality

Management

4.4Capacity

Management

5.3Continuous

Process Improvement

5.1Proactive Problem

Management

4.1Management

Metrics

2 R

epea

tabl

e4 M

ana

ged

3 D

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ed

1 In

itial

5 O

ptim

isin

g


1.2Programme


1.1Project

Definition


& Comms



Control

2.1Business

Case Development


2.8Risk

Management



2.4Project

Establishment

2.11Management of



Control

3.3Information

Management


3.12Organisational




3.10Quality

Assurance

3.2Transition

Management

3.1Benefits

Management

3.9Inter-group


3.4Organisational

Focus


3.7Integrated


3.11Centre of


4.3Organisational

Cultural Growth

5.2Technology

Management

4.2Quality

Management

4.4Capacity

Management

5.3Continuous

Process Improvement


Management

4.1Management

Metrics

Step 2Where do you

want to be?

Baseline Assessment

Step 3How will you

get there?

Appropriate KPAs

2 R

epea

tabl

e4 M

ana

ged

3 D

efin

ed

1 In

itial

5 O

ptim

isin

g


1.2Programme


1.1Project

Definition


& Comms



Control

2.1Business

Case Development


2.8Risk

Management



2.4Project

Establishment

2.11Management of



Control

3.3Information

Management


3.12Organisational




3.10Quality

Assurance

3.2Transition

Management

3.1Benefits

Management

3.9Inter-group


3.4Organisational

Focus


3.7Integrated


3.11Centre of


4.3Organisational

Cultural Growth

5.2Technology

Management

4.2Quality

Management

4.4Capacity

Management

5.3Continuous

Process Improvement


Management

4.1Management

Metrics

Step 4How will you know?

Improvement Plan

Metrics

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Question F/L/P/N Level

Does 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?

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Governance at the implementation level The Portfolio Office

– Manages the approval process– Prioritisation, Performance and Benefit Realisation– Quality assurance

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Portfolio Office Processes

Prio

ritis

atio

nP

erfo

rman

ceB

enef

it R

ealis

atio

n

Design Definition Implemetation RealisationConcept

Prioritisation

Performance Management

Benefit Realisation

Actual benefit

Mandate Business Case

Progress Report

Checkliust

Benefit Profile

End Project Report

Project Initiation Doc

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How the APM governance principles are covered if an organisation has embedded PRINCE2/P3M3

# Governance of Project Management Principles P2MM Level 3

P3M3 Level 3

1 The board has overall responsibility for governance of project management. Partial Partial

2 The roles, responsibilities and performance criteria for the governance of project management are clearly defined.

√ √

3 Disciplined governance arrangements, supported by appropriate methods and controls, are applied throughout the project life cycle.

Partial √

4 A coherent and supportive relationship is demonstrated between the overall business strategy and the present portfolio.

NA Partial

5 All 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.

√ √

6 Members of delegated authorisation bodies have sufficient representation, competence, authority and resources to enable them to make appropriate decisions.

Partial Partial

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How the APM governance principles are covered if an organisation has embedded PRINCE2/P3M3

# Governance of Project Management Principles P2MM Level 3

P3M3 Level 3

7 The project business case is supported by relevant and realistic information that provides a reliable basis for making authorisation decisions.

√ √

8 The board or its delegated agents decide when independent scrutiny of projects and project management systems is required, and implement such scrutiny accordingly.

Partial √

9 There are clearly defined criteria for reporting project status and for the escalation of risks and issues to the levels required by the organisation.

√ √

10 The organisation fosters a culture of improvement and of frank internal disclosure of project information.

Partial Partial

11 Project stakeholders are engaged at a level that is commensurate with their importance to the organisation and

Partial √

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Summary Ownership – 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?

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What do we do in this space?

PublicationsAssessments

Training WorkshopsFacilitationCoaching

Embedding

ProjectsPortfolio

& Change

Risk &Governance

Programmes

BidsPMO

PublicationsAssessments

Training WorkshopsFacilitationCoaching

Embedding

ProjectsPortfolio

& Change

Risk &Governance

Programmes

BidsPMO

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Gordian Enterprises Limited

If you would like more information then please contact Mike Ward or Kevin O’Sullivan

Tel: 0845 402 [email protected]

How can projects be controlled?

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