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Building Capacity through:Governance of Projects (enabled by IT)

Dr Raymond Young GAICD, MBAAssistant Professor

Faculty of Information Sciences and Engineering Raymond.Young@canberra.edu.au

AICD Directors BriefingSydney, 13 April 2010

© Raymond Young 2010

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Inside the head of boards and top managers

Governance

Mic

rosc

ope

ProjectsProjects

On-timeOn-budget

Inside the head of project managers

Young and Jordan 2008

Kwak and Anabari 2009VIC 100b

Young and Jordan 2002StrategyTelescope

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Inside the head of boards and top managers

Projects

e-commerceRisk

13 Dir: 60+ boards

Strategy should be developed by management E-commerce is important but strategy is hard …3 approaches – (2) get an expertFew have IT background Widespread delegation to mngt / consultants

Young and Jordan 2002

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Inside the head of boards and top managers

Telescope

Mic

rosc

ope

ProjectsProjects

Strategy

On-timeOn-budget

Inside the head of project managers

Young and Jordan 2008Fail15%

(Standish 1999,2003)

No30-40%

(Wilcocks and Margetts

1994)

Some35%

OK10-20%

(Clegg et al 1997)

1/3 of projects are successful

and deliver 30% return on

investment

2/3 of projects deliver no benefits

whatsoever

[2] I would have thought it would be the opposite … are

there stats by industry?

[3] valuations are heavily discounted whenever a big IT

project is announced

[4] they hardly ever define adequately

what success looks like

[1] That’s probably about right…

CRICOS #00212KCRICOS #00212K

Inside the head of boards and top managers

Projects

Inside the head of project managers

Fail15%

(Standish 1999,2003)

No30-40%

(Wilcocks and Margetts

1994)

Some35%

OK10-20%

(Clegg et al 1997)

1/3 of projects are successful

and deliver 30% return on

investment

2/3 of projects deliver no benefits

whatsoever

It’s no better with other types of projects

• ¾ of mergers and acquisitions never pay off

• 2/3 of IT projects deliver no benefits whatsoever

• most large capital projects fail to live up to expectations

• majority of efforts to enter new markets are abandoned in a few years

• 70% of new manufacturing plants are closed in their first decade

VIC 100b

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Inside the head of boards and top managers

Projects

On-timeOn-budget

Inside the head of project managers

Young and Jordan 2008

[3] Sponsors definitely drive success … we would need to see a track record

of this working

[4] You’ve definitely got this right by putting the strategy

first

[1] Yes … I think you could sell that. A directors job is to ask questions.

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Governanceof Programmes

Programme management

Governanceof Programmes

Programme management

Assessment of tools and frameworksWhere to focus effort to engage top management

Efficiency

EffectivenessAny

benefitsBenefits aligned

to strategyRealisation

of strategic goals

Portfoliomanagement

Pro

ject

M

an

ag

em

entOn-time

On-budget

Avoidduplication

Products/Outputs

Programme PortfolioManagement

Victorianinvestmentframeworks

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Business processes

ICT Operations

GovernanceSupport

Changed Business Processes

Changed ICT Operations

Evaluate

InitiateDirect & Monitor

Investment:benefits or terminate?

Strategy/capability: how much change is required?

Investment & Strategy:Benefits / alignment?

Responsibility: Project Sponsor?

Performance & Behaviour:measures and motivation?

67%->40%Business Case

40% ?MSP?

5-23%

33-67%ChangeTracking™

0-13%Benefits Realisation

ITIL, COBITProjects

PMBOK, PRINCE2, etc

Conformance & Behaviour: culture for issues to be raised?

??%

HB280, AS8016, 6Q Governance™