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we need new medicine Effective Governance of Change

we need new medicine Effective Governance of Change. Martin Samphire Project Challenge - 13 March 2013. Martin Samphire MAPM, MIOD Chairman of APM Governance SIG APM Portfiolio Mgmt SIG Committee Member Owner and MD – 3pmxl Ltd Sectors – FS, police, defence, energy. 3pmxl services.

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we need new medicine Effective Governance of Change

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  1. we need new medicineEffective Governance of Change Martin Samphire Project Challenge - 13 March 2013

  2. Martin Samphire MAPM, MIOD Chairman of APM Governance SIG APM Portfiolio Mgmt SIG Committee Member Owner and MD – 3pmxl Ltd Sectors – FS, police, defence, energy

  3. 3pmxl services delivering change together • Shaping and Delivery • Vision and strategy • Transformation Programme delivery • Programme / Portfolio Management Office (PMO) • Benefits • Procurement • Leading change • Capability Improvement • 3PM Governance • 3PM Process Improvement • 3PM training • Change Management training • Competency development • Executive Coaching • Programme Managers • Sponsors • Executives • In technical, organisational and soft skills • Assurance & turnaround • Healthchecks • Programme and Portfolio Assurance • Programme Conscience • 3PM Governance advice and assurance

  4. Governance is topical

  5. Content • APM and APM Governance Specific Interest Group (SIG) • What is Governance • Effective Governance • Summary & Questions

  6. APM mission Working collaboratively, create new standards and knowledge and enhance their application amongst individuals and organisations, such that all projects succeed.

  7. Governance SIG objectives • Be the UK focus • Advance understanding • Contribute to good practice • Influence national and international standard making authorities • Influence those operationally responsible • Develop ambassadors and exemplars of excellence “Achieving Change Successfully with Confidence and Control” ….in the governance of project management (change)

  8. Governance SIG activities • Engagement – CxO level and APM members • Governance Benchmarking Group • Conferences and Seminars • Publications • Development (of Governance material) • Influence of and contribution to standards

  9. GovSIG – Publications to date Directing Change 2nd edition 2011 Sponsoring Change 2009 Co-Directing Change 2007 Free to APM members at www.apm.org.uk/memberdownloads

  10. Content • APM Governance SIG • What is Governance of Project Management • Effective Governance of Change • Summary & Questions

  11. Governance refers to the set of policies, regulations, functions, processes, procedures and responsibilities that define the establishment, management and control of projects, programmes and portfolios. APM BoK PM Governance definitions Project Management Governance – APM 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 organization’s project portfolio is aligned to the organization’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 exchange timely, relevant and reliable information. Project Governance - ISO 21500 Governance is the framework by which an organization is directed and controlled. Project governance includes but is not limited to those areas of organizational governance that are specifically related to project activities.

  12. Examples of poor governance Taurus FireControl West Coast Mainline Re-franchise

  13. Consistent failures: need for new medicine? • Heavy investment in change delivery framework, tools and skills (PM focus) • Success rate for projects not improved • Could that be more focus on Exec / Directors / Sponsor roles in governance? • Successful Governance leading to more successful Delivery? Project Magazine – Nov 2011

  14. 1. Lack of a clear link between the project and the organisation’s key strategic priorities, including agreed measures of success. 2. Lack of clear senior management and ministerial ownership and leadership 5. 8. 6. 7. 4. Inadequate resources and skill to deliver the total delivery portfolio. Too little attention to breaking development and implementation into manageable steps. Lack of understanding of and contact with the supply industry at senior levels within the organisation. Lack of skills and proven approach to project management and risk management. Evaluation of proposals driven by initial price rather than long-term value for money (especially securing the delivery of business benefits). 3. Lack of effective engagement with Stakeholders Factors in project failures (OGC)

  15. Measures of success • Project management – did project meet time, cost, quality objectives? Project Mgr measure • Project – were business benefits realised? Project Sponsor / Programme Mgr measure • Business – was business strategy delivered and for best value? Portfolio Mgr / Investment director / CEO measure • Was future value created? CEO / Shareholder measure Governance success– kill projects early and quickly

  16. Content • APM Governance SIG • What is Governance of Project Management • Effective Governance of Change • Summary & Questions

  17. Portfolio Management “Doing the right projects” Change in context Vision Programme & Project Management “Doing the projects right” Portfolio Mgmt – Definition & Monitoring Operational Planning & Mgmt Focus on on-going service and performance Focus on change Operational Mgmt of on-going operations (BAU) Programme and Project Mgmt of authorised P&Ps Organisational and External Resources delivering tasks 17

  18. Directing Change from APM • Portfolio direction • Sponsorship • PM Capability • Disclosure and reporting

  19. APM Governance principles • The board has overall responsibility for governance of project management. • The organisation differentiates between the projects and non-project based activities • The roles, responsibilities and performance criteria for the governance of project management are clearly defined. • Disciplined governance arrangements, supported by appropriate methods, resources and controls, are applied throughout the project lifecycle. • Every project has a sponsor. • There is a demonstrably coherent relationship between the overall business strategy and the project portfolio. • 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.

  20. APM Governance principles • Members of delegated authorisation bodies have sufficient representation, competence, authority and resources to enable them to make appropriate decisions. • The project business case is supported by relevant and realistic information that provides a reliable basis for making authorisation decisions. • The board or its delegated agents decide when independent scrutiny of projects and project management systems is required, and implement such scrutiny accordingly. • There are clearly defined criteria for reporting project status and for the escalation of risks and issues to the levels required by the organisation. • The organisation fosters a culture of frank internal disclosure of project information. • Project stakeholders are engaged at a level that is commensurate with their importance to the organisation and in a manner that fosters trust • Projects are closed when they are no longer justified as part of the organisation’s portfolio

  21. Principle that organisations struggle with most – poll result Competence, authority and resources of decision makers

  22. Competent people in every project role Even if we have “good people” are they fully competent in the project role and “game” that we expect them to “play”?

  23. Governance isn’t just what the project board does! CEO Board NED Stakeholders Directors Risk Mgrs Partners Portfolio Mgrs Sponsors Programme Mgrs FunctionalMgrs Assurance Mgrs Project Mgrs Suppliers They all need to be competent in their change role

  24. Governance of project management involves… • Engaging with stakeholders to ensure change supports organisational objectives (alignment) • Defining where each type of change decision can be most effectively made (golden thread of delegation) • Defining when critical change decisions need to be made and those involved in making them (decision gates) • Ensuring transparency of change decisions/actions and communicating their outcome (reporting) • Ensuring appropriate resources are in place (competence) • Corroborating through independent review (assurance)

  25. GovSIG Benchmarking Group – some metrics • Project termination and ‘churn’ in the portfolio • Project alignment to business strategic objectives • Existence of, competency and longevity of Project Sponsor • Formal responsibility for benefits realisation • Formality of project reviews • Head of PM profession • Unwelcome surprises at Board level

  26. Content • APM Governance SIG • What is Governance of Project Management • Effective Governance of Change • Summary & Questions

  27. Benefits of focusing on Exec and Sponsor level • Assurance, confidence and control - across all projects managed in the organisation • Optimise the portfolio of projects and maximise the benefits to be realised from projects • Avoid many of the common failures in project and programme performance – better sponsorship • Accountability - Improve relationships with staff, customers and suppliers • Minimise risks to the organisation arising from projects • Assure the continued development of the organisation

  28. Follow-up contact 3pmxl Martin Samphire msamphire@3pmxl.com +44 7798 700314 @martin3pmxl delivering change together #APMGovernance @APMGovernance www.apm.org.uk/group/apm-governance-specific-interest-group

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