PROJECT GOVERNANCE IN

PRACTICE

The everlasting journey towards

Value-adding Project Governance

Elize van Straten, MBL, PMP®, Prince2®

South African State Information Technology Agency SOC

OVERVIEW

Corporate & Project Governance

Compared

SITA’s Mandate and Governance

Framework

SITA EPMO Evolution

Lessons Learn’t

Final Mind Shift

2

THE PROBLEM

• The Big Problem in any Governance

discussion…………

CORPORATE & IT GOVERNANCE

• Governance is the set of decisions that defines expectations, grants

power, or verifies performance. It consists either of a separate process

or of a specific part of management or leadership processes.

• In IT governance (King III) , one seeks confidentiality, integrity and

availability of the functioning of the system; possession of the system,

authenticity of system information; and assurance that the system is

usable and useful. Concerns are unauthorized use, access, disclosure,

disruption or changes to the information system.

PROJECT GOVERNANCE

Project governance is the framework which ensures the project has been

correctly conceived and is being executed in accordance with best project

management practice within the wider framework of the firms of

organizations governance processes.

Effective project governance ensures projects deliver the value expected of

them. An appropriate governance framework ensures that all expenditure is

appropriate for the risks being tackled.

Project governance is not about micro-management, it is about setting the

terms of reference and operating framework, defining the boundaries and

ensuring that planning and execution are carried out in a way which ensures

that the project delivers benefits.

TWO SIDES OF THE SAME COIN

Business Governance

is the

organizational

control of the

business’s

ability to deliver

value

Project Governance

is the centralized

control of the

projects

that produce

this value

SITA CASE STUDY

ICT GOVERNANCE FOCUS

(SITA AS IT FUNCTION OF GOVERNMENT)

SITA Mandate

The objects of the Agency

are—

(a) to improve service

delivery to the public

through the provision of

information technology,

information systems

and related services in

a maintained information

systems security

environment to

departments and public

bodies; and

(b) to promote the

efficiency of

departments and public

bodies through the use

of information

technology.

8

Government

State IT Agency

SITA Internal

IT Function

Val

ue

Val

ue

EPMO MISSION

• “To evolve SITAs Portfolio, Programme and Project Management capabilities to predictably deliver quality projects within time and within budget.”

Standardise projects and project sustainability

2013/14 and before

▪ CMMI level 2 ▪ Prince 2 adoption ▪ ERP / PM Process aligned ▪ 100% ERP coverage ▪ Project Sustainability ▪ Monitor and report on project performance ▪ Business Planning System ▪PPM focussed Governance body

Institutionalise Prince 2 and PM processes

Institutionalise Portfolio Management

PPPM Value proposition measured

2014/15

2015/16

2016/17 and beyond

▪ CMMI 3 Preparation ▪ Enterprise project governance (EPPC) ▪ Enterprise level demand management ▪ Retrain all PMs and LoB ▪ ERP training ▪ Tender for Integrated PM, PgM and PfM toolsets ▪ Implement operational performance dashboards ▪ Integrated Governance Body

▪ CMMI 3 Certification ▪ Portfolio Management forums established ▪ Portfolio Performance ▪ Integrated benefit monitoring ▪ ROI framework implemented ▪ Integrated PPPM implemented ▪ Integrated PMO capabilities

▪ CMMI 3+ ▪ Measure fulfillment of BC ▪ Company wide PPPM institutionalized ▪ All projects EPPC approved ▪ Customer access to SITA PM systems ▪ SITA Capex planning framework established

10

EPMO GOVERNANCE EVOLUTION

Continuous review of EPMO value proposition fulfilment and effectiveness

Special

Committee

Governance

Areas

EXCO

Informed by: Sphere

MPSA/Cabinet

Board

Board

Sub Committee

EXCO

Sub Committee

Steering

Committee

Governance Structure

MPSA / CABINET

SITA Board

Stakeholder Relationship, IT Governance & Coms Sub-Com

SITA EXCO

OPSCOM

Enterprise Portfolio and Programme Management SC

Architecture Portfolio

Committee

Oversight on all project activities within SITA (Portfolio Management,

Programme Management and Project Management)

Service Delivery

Committee

Regulatory

King III

Prince II

PMBOK

Chair: GM EPMO Members: All relevant portfolio and programme managers, persons invited by the Chairperson.

OLD GOVERNANCE FRAMEWORK

NEW GOVERNANCE FRAMEWORK

Board: ICT, Research, Development and Innovation (ICT RDI)

EXCO

MANCO

EXCO: ICT Governance

Enterprise Architecture

- ICT Com

ICT Service Portfolio

Enterprise Project and

Financial Sustain-ability

ICT Risk & Security**

Procure-ment**

- Bid-Spec**

- Bid eval**

HR Policy and

relations

12 ICT Governance ICT Management

** Temporary until Subsidiaries are operational

ICT GOVERNANCE - STRATEGIC

13

Committee Focus Members

Board: ICT, RDI (Research, Develepment and Innovation)

• Approve ICT Governance Policy Framework • Ensure ICT Service Delivery Performance alignment

to stakeholders • Approve ICT Governance implementation • Approve ICT Investments and Expenditures • Ensure ICT Risk Management. • Ensure Information Asset and Security

Management. • Monitoring Conformance and Performance (Policy

and Plans)

Chairperson: Non-Executive Director (ICT) Members: Non-Executive Directors, Executive Director (CEO) Invitations: Deputy CEO’s, Chiefs/Exec of ICT Services, Chief Risk Officer, Head: Internal IT Company Secretary, Internal Audit ICT Governance Champion

EXCO: ICT Governance

Direct, Evaluate, Recommend – • ICT Governance Policy Framework • ICT Strategic Plans • Enterprise Architecture (Business Model, Operating

Model, Value Chain, IT Service Catalogue, Capability Model, System Portfolio, Technology Portfolio)

• ICT Management framework • ICT Programme Investment Portfolio • SITA Corporate Risks and ICT Security Policies and

Plans • Procurement/Sourcing policies and plans Monitoring and Evaluation conformance

Chairperson: CEO Members: DCEO’s Chairpersons of ICT Governance Steering Committees Invitation: Head: Internal IT Company Secretary Internal Audit Chief Risk Officer ICT Governance Champion OCEO: Exec Support

ICT STEERING COMMITTEES

Committee Purpose Members

Enterprise Architecture Portfolio Committee (EAPC)

To lead, coordinate and recommend for approval the development of ICT Strategies, Enterprise Architecture (Business, Systems and Technology models), Innovation and ICT Quality Management System, frameworks, policies, standards; and monitor portfolio performance and conformance; serve as escalation point for architecture, technology and standards related issues.

Chair: CTO Members: Exec: Systems Exec: ICT Infrastructure Services Chief Enterprise Architect. CTO: GIM, Innovation, Advisory, Quality, EPMO. CS: Org Development, Internal IT Head: Provincial ICT Governance champion

Enterprise Service Portfolio Committee (ESPC)

To coordinate and recommend for approval the SITA Service Portfolio and associated customer relations and contracting models including additions, modifications and retiring of services; and monitor portfolio performance and conformance; and serve as escalation point for service offering related issues.

Chair: Exec: ICT Infrastructure Services Members: CTO: Service Portfolio CTO: GIM, EPMO Head: Internal IT Heads: CRM, SMC. Heads: ICT Service Owners Head: Provincial ICT Governance Champion

14

ICT STEERING COMMITTEES

Committee Purpose Members

Risk & Security Committee

To coordinate the establish of Information Security Management System to ensure confidentiality, integrity and availability of information assets, Intellectual Property and Personal Information; and Risk Management System to identify, assess and reduce ICT-related risk within levels of tolerance; and monitor, evaluate and report performance and conformance against Security and Risk management systems.

Chair: Chief Security Officer Members: Chief Risk Officer CTO Head: Internal IT Risk Champions (National & Provincial) Head: Information Security Operations Head: Personnel Security Head: Facility & Physical Security

Enterprise Project and Financial Sustainability Committee

To direct the development of the Programme Portfolio, and associated Policies and frameworks; and to ensure that SITA undertakes projects and programmes that are in support of its current strategic objectives, regulate investment projects and monitor and report on the sustainability and performance of the Programme and Project Portfolio.

Chair: Chief Financial Officer Members: Head: Executive Support CTO Head: Internal IT FIN Head: Management and Cost accounting Head: EPMO Head: Customer Relations Programme Managers

15

16

PMO GOVERNANCE BACK BONE

Functional Support

Converged

Communication

Hosting and Storage

Implementation Services Norms, Standards &

Quality

Cluster 1 Solutions

Solution Security

Innovation & Research

Integration &

Interoperability

Government ERP

Transversal Solutions

Cluster 2 Solutions

Province 1

Province 2

Province 3

Province 4

Province 5

Province 6

Province 7

Province 8

Province 9

SITA OPERATIONS

ICT Service Delivery Government

Solutions &

Standards

Provincial

Management

Supply

Chain

Management

Customer Service Management CTO

EPMO Gov Information Management

EPMO

PgM

EPMO PfM

GSS EPMO PfM

Province

EPMO PfM

ISD

EPMO

PgM

EPMO

PgM

EPMO

PgM

EPMO

PgM

EPMO

PgM

EPMO

PgM

EPMO

PgM

EPMO

PMO

EPMO

PgM

EPMO

Centre of Excellence

PMO GOVERNANCE BACK BONE

TYPE OF PMO FUNCTION Enterprise Portfolio

Management Office

(EPMO)

To govern all internal and external projects in the company and to consolidate performance

and monitor interventions required, using a federated spectrum of PMOs.

Transformation

Programme Management

Office (TPMO)

Largely internal focussed, this special purpose PMO created for the implementation of the

SITA strategy and the annual BSC objective framework, will function independently from the

SITA EPMO-PMO structures.

Divisional/Regional

Project Management

Office (PMO)

Created to support all projects within a Division. Consolidates performance and reports

directly to the Divisional Head on such portfolio’s performance. Report to the EPMO on a

dotted line with regards to Performance and Corporate Governance compliance.

Programme Management

Office (PMO)

Created to support a specific programme of related projects (and services) for the company

or customer. Consolidates performance and reports directly to the assigned Programme

Manager. Recent example is IFMS Programme. Report to the EPMO on a dotted line with

regards to Performance and Corporate Governance compliance.

Project Management

Office (PMO)

Depending of the size of a project, a Project Management Office can often be created to

support a specific large or complex project. This type of PMO normally plays a larger

integration role on the project and becomes fairly active on project operational level. A project

specific PMO would normally still interface with a Divisional or Regional PMO in terms of

corporate governance.

Project Support Office

(PSO)

Most of the larger project domains only have a PSO, consisting of a project manager, a

shared Project Coordinator for ERP maintenance and one or more project administrators to

assist with the day-to-day administrative matters on a project. A project specific PSO would

normally still interface with a Divisional or Regional PMO in terms of corporate governance.

CMMI - MATURITY MODEL

PAVING THE GOVERNANCE JOURNEY

19

EPMO Value Proposition

Internal IT Line of

Business

FinanceHuman CapitalSCM

Annual

Revenue

Management

& Financing

Demand +

Multi-Year

CAPEX view

Reduced

Operational

Business

Risk and

Internal ERP

efficiency

Service

Contracts

Supplier

Contracts

ERP Projects

APP & CBSC

Costing and

Pricing Policies

Sustainable

Business

Growth

Integrated

Multi-Year

Human Capital

Demand

Management

Business Plans

(BPS)

CMMI framework

Service Strategy

Health Audits

Service

Catalogue

Product

Catalogue

ECM Systems

CMMI Audits

EPMO Business Support ProcessInputs

Performance

Reports

Annual Business

Planning

Multi-Year Business

Planning

Business

Interventions

SCP Reports

CMMI Level 3 Prep

PMO support

BI Capabilities

PPMs, PMs, SMs

Managed Baseline

Dynamic Structures

Outputs

Operational Business Intelligence on performance baselines (APP, CBSC, Sales Targets)

Maturity Management for Project, Programme and Portfolio Management

Governance of Project, Programmes and Portfolios defined (RDI & CAPEX & Strategic)

Oversight & Support of Portfolio, Programme, Project and Service Performance

Integrated Enterprise Level Demand Management using BPS baselines

VALUE PROPOSITION

Integrated

Multi-Year

Procurement

Demand

Management

Internal/External

Audits

Increased

delivering of

projects on

schedule,

within budget

& at agreed

quality

Management

decisions

informed by

quantitative

information

PLAN DELIVER Decide

LESSON’S LEARNT

• Sponsorship required at highest level

• Use a maturity model to pave the journey

• Use the PMO to position for Governance

• Use a strong methodology as building block

• Involve both Line Management and Project Management in validation

• Focus on leadership and alignment with strategy

• Vision to cover entire organization • Integrity of business transformation managed through

programs in a Project Portfolio Management system

• Outcome should be Business Talk

SHIFT from Conformance to Performance

SHFIT from Traditional Performance to VALUE-BASED Performance

SHIFT towards the Values of honesty, transparency and accountability

SHIFT from Segregated Governance to Integrated Governance

Presentation Title

GOVERNANCE MIND SHIFT

GOVERNANCE TYRE HITS THE TAR

THANK YOU

many “happy sponsors” on

your journey towards value-

adding Project Governance!

elize.vanstraten@sita.co.za Let’s link on Linked-In

My wish for you:

HANDY SOURCES

• http://www.p3m3-officialsite.com

• www.jcse.org.za/process-improvement/cmmi

• opm3online.pmi.org