Defence Academy Cranfield 20 May 2011

Project Governance

New Solutions to Common Problems

Mark Swan 20 May 2011

Schedule for the Morning

• Introduction & Get to Know You

• 1st session – Recap on Why Projects Fail

• 2nd session – Recap on Stakeholder Management

• Coffee Break (10:15, approx.)

• 3rd session – Programme / Project Governance

• Questions & Answers

Introduction

• Me:– Chemical Engineer by training– Now, a practising programme and project manager– Also, advise on best governance arrangements– Work in both public and private sectors

• You:– ?– ?– ?

1st Session - Recap on Why Projects Fail

•

• – central records project; £2.7bn spent to date!! A terrible example case study

• So, why DO projects fail?• What do you think?

“This project is a

farce and has

been an utter

waste of money!”

Simon Burns, Health Minister

BBC Radio 4, 18 May, 2011


• : says it’s often a lack of:

– Link between an organisation’s strategy and the project

– Agreed measures of success– Ownership and leadership– Engagement with stakeholders, incl. suppliers– Relevant skills (P.Mgr?) and proven approach– Manageable steps in the plan– Properly documented business case– Follow through on benefits realisation


• Research at Queensland University of Technology (QUT) 2010: all of the above +

– International, cross industry study; key conclusion was that:

“Dominant issue is poor Project Sponsor/Project Board performance ………”


• Ross Garland and Me: all of the above +

– Lack of focus on service delivery

– Ineffective Project Board decision-making

– Confusion over objectives

– Risk aversion – favours the right thing, rather than what is right (e.g. dogged adherence to methodology)


• Some key thoughts –you need to get these right!

Project Manager (s)

Methodology and -

its application !

Stakeholder

managementGovernance


• 1st Break Out Session

– What are the qualities of a good project manager?

– What’s your blockbusting question, when recruiting a PM?

– 15 minutes– 2 from 7 teams to report back


• The Qualities of a Good Project Manager (PRINCE 2); should be good at:– Planning– Time management – People management– Problem solving– Attention to detail– Communication– Negotiation– Conflict management


• The Qualities of a Good Project Manager (research by Pearce Mayfield – the ‘Mental Crib Sheet’):

The ‘α – trait’ manager:

1. Exhibits self

awareness

2. Has a bias towards

relationships

3. Plans naturally for the

unplanned


• Methodologies; 7 principles of PRINCE 2 are not a bad start:

Continued

Business

justification

Learn from

experience

Defined roles &

responsibilities

Manage by

stages

Manage by

exception

Focus on

product delivery

Tailor to suit

your needs


• Methodologies; as well the 7 themes of PRINCE 2 are good pointers for success:

– Focus on business case throughout

– Organisation of the project is critical

– Quality really matters

– Plans – provide communication & control

– Risk – look ahead to see what might bite you!

– Change – it’s a certainty, so manage it!

– Progress – cue for decision-making


• Your experiences?

• Questions?

2nd Session – Stakeholder Management

• A PRINCE 2 definition:

– Any individual, group or organisation that can affect, be affected by, or perceive itself to be affected by, an initiative (programme, project, activity, risk)


• Two grids to think about to help you manage stakeholders……..


• Grid 1 – The Power / Interest Chart

Keep satisfied

Keep informedMonitor

Manage closely(see next grid)

Low HighInterest

Power

Low

High

2nd Session – Stakeholder Management• Grid 2 - Type of Stakeholders

Supporters (positive

but not active)

Champions (use

their power to get

people behind them)

Fence –sitters

Critics (negative, but

only passively resist)

Blockers (use their

power to undermine)

Passive Active

Opposition

Support

2nd Session - Stakeholder Management


• Questions?

• Coffee Break (20 minutes)

Research sponsored by OGC and APMG at Queensland

University of Technology, published 6 August 2010

“……………The dominant issue for failure to deliver

against programme objectives is poor Project

Sponsor/Project Board performance…………….”.

3rd Session – Governance

Project governance is the

management framework within

which project decisions are

made.

3rd Session – Governance, Common Issues

Silo Decisions Pet ProjectsManagement Time

Narrow Vision Too Many Projects Wasting Money

3rd Session – Governance Principles

1) A single point of

accountability for the

success of the project

Speedy project

initiation, clear direction

2) Service delivery

ownership determines

project ownership

Ensures project

outcomes meet service

delivery needs

3) Separation of

stakeholder management

from decision-making

activities

Avoids numerous

stakeholders clogging

decision-making forums

4) Separation of project

governance and

organisational governance

Empowers the project

board to act independently

3rd Session – Governance

Project Owner is the Service Owner

Service Level

Existing Service Level

New Future Service Level

Project enables transition to new

service level

The Project

Time

Service degrades naturally over time

3rd Session – Governance, A generic model

Senior User Project Owner Senior Supplier

Project DirectorProject Board

Investment Decision Group

Project

Manager

Project Team

decision making path

advisory & feedback path

Stakeholder Working Group

Chair: Project Director

Strategic Advisors Group

Chair: Project Owner

3rd Session – Governance• Real Case study – a new start-up regional gas utility company has won the

franchise:– to inherit ownership of the existing gas pipeline network from British Gas;– to deliver a new connection service to new domestic and business

customers;– to provide an emergency gas leak response unit;– and, to set up routine maintenance on the network.

• The business environment is heavily regulated and there are stiff penalties for failure – e.g. on failure to hit response times and for overruns on ‘holes in the ground’. A new organisation is needing to be trained, but staff and management terms and conditions have still to be finalised. There are lots of existing working practices, but nobody knows whether they will suitable in the new business environment. Some old computer systems are available from British Gas, but most are new and have been purchased from a variety of suppliers, and have never been tested together before. A £18m budget for the Change Programme has been granted by the owners / investors, but have made it very clear, if this programme fails, then the business fails!

• Who are likely to be the stakeholders and as Programme Director how should I include their views? What governance arrangements should I set up?

• 2nd break out session – 30 minutes; 2 teams to report.

Session 3 – Governance and Key Closing Messages, Follow Up Actions

• Define and agree a clear enterprise policy on programme governance

• Determine investment ownership and accountability

• Ensure efficient project and program initiation

• Define decision rights – i.e. which governance bodies make what decisions

• Agree gating processes to ensure on-going executive management control

• Review current portfolio for performance; cull no-hoper projects and free up scarce resources (people, skills and £)

3rd Session - Governance, The Book

Governance

Published by Kogan Page 2009

Builds on established best practice

Acknowledged by the OGC, Association of Project Management

Practical guide to decision making

Integrated governance for Portfolios, Programmes & Projects

3rd Session - Governance


• Questions?

Thank You

Back up charts

Effect of Poor Use of Scarce Resources

Note: size of circle represents planned effort needed to fulfil project. Colour of

circle represents expected return: green is high; orange is low; red is a loser

These 4 Planned

Projects

In the Pipeline are

‘Crowded Out’

High expected returns

High expected returns

Low expected returns

Low expected returns

Scarce operational budget (£)

for ‘business as usual’

Scarce operational headcount budget

(#FTEs) for ‘business as usual’

„Dog‟ project

„Dog‟

„Dog‟

A Project Portfolio in Trouble

Defence Academy Cranfield 20 May 2011

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Transcript of Defence Academy Cranfield 20 May 2011