MARK RUBENSTEIN – TITANIUM TALENT

PROJECT GOVERNANCE – SUPPORTING YOUR PMO/EPMO

WHO ARE WE……

• ......• Certified programmer……NOT• Senior Business Analyst• Run projects across industries – Focused in

Banking• Run Globus, SAP, JDE projects• Run projects in South Africa, Africa and the UK• Run teams of 120 direct reports• Have strong operations background• Have set up two business’s • Have set up business units

AGENDA

• Project governance integrated with organisational governance• The project environment role in Governance • A strong base for decision making• Communication and information overload –

Knowledge management principles• Scope, wanting or needing a solution

SESSION OBJECTIVES

• Participation in the seminar• Communication with each other

• Understanding organisational and project governance

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3 BIGGEST FACTORS FACING IT

WHAT IS GOVERNANCE

• The system by which companies are directed and controlled. (Sir Adrian Cadbury, The Committee on the Financial Aspects of Corporate Governance)

• Corporate governance is a field in economics that investigates how to secure/motivate efficient management of corporations by the use of incentive mechanisms, such as contracts, organizational designs and legislation. This is often limited to the question of improving financial performance, for example, how the corporate owners can secure/motivate that the corporate managers will deliver a competitive rate of return. (Mathiesen, 2002)

WHAT IS GOVERNANCE

• Corporate governance is about how companies are directed and controlled. Good governance is an essential ingredient in corporate success and sustainable economic growth. Research in governance requires an interdisciplinary analysis, drawing above all on economics and law, and a close understanding of modern business practice of the kind which comes from detailed empirical studies in a range of national systems.- Simon Deakin, Robert Monks Professor of Corporate Governance

WHAT IS GOVERNANCE

• Corporate governance is the relationship among various participants [chief executive officer, management, shareholders, employees] in determining the direction and performance of corporations"- Monks and Minow, Corporate Governance, 1995.

• The set of obligations and decision-making structures that shape 'the complex set of constraints that determine the profits generated by the firm and shape the exp post bargaining over those profits.- Stijn Claessens

WHAT IS GOVERNANCE

• While the board provides leadership based on an ethical foundation, and oversees the overall process and structure of corporate governance, each business area and every employee of the group is responsible for acting in accordance with sound corporate governance practices.

WHAT THE…..

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WHO STARTED THIS….

THE KING REPORT - I

• In 1992 the King Committee on Corporate Governance was formed in South Africa, and, in line with international thinking, considered corporate governance from a South African perspective.

• The result was the King Report 1994, which marked the institutionalisation of corporate governance in South Africa. It aimed to promote corporate governance in South Africa and established recommended standards of conduct for boards and directors of listed companies, banks, and certain state-owned enterprises, with an emphasis on the need for companies to become a responsible part of the societies in which they operate.

THE KING REPORT - II

• In 2002 the second King Report on Corporate Governance was published

• It refers to seven characteristics of good corporate governance:Discipline - a commitment to behaviour that is universally recognised and accepted as correct and proper.Transparency - the ease with which an outsider is able to analyse a company's actions.Independence - the mechanisms to avoid or manage conflict.Accountability - the existence of mechanisms to ensure accountability.Responsibility - processes that allow for corrective action and acting responsibly towards all stakeholders.Fairness - balancing competing interests.Social Responsibility - being aware of and responding to social issues.

THE KING REPORT - III

• The revised Code of and Report on Governance Principles for South Africa (King III) were released on 1 September 2009. The Chapters of King III are:

• Ethical leadership and corporate citizenship • Boards and directors • Audit committees • The governance of risk • The governance of information technology • Compliance with laws, rules , codes and standards • Internal audit • Governing stakeholder relationships • Integrated reporting and disclosure

WHAT IS GOVERNANCE

• Effective legal and regulatory environment• Clear organisational mandate• Defined levels of authority and decision making• Transparent and accountable leaders• Sound Financial Management practices• Adequate management of risk• Responsible corporate behaviour

• In formulating our governance framework, we apply recognised corporategovernance practices pragmatically so as to:

• Build and sustain an ethical corporate culture in the company• Identify and mitigate significant risks, including reputational risk• Exercise effective review and monitoring of our activities• Promote informed and sound decision making• Enable effectiveness, efficiency, responsibility and accountability• Enhance the capital markets and other stakeholders’ perception of us• Facilitate legal and regulatory compliance• Secure trust and confidence of all stakeholders• Protect our brand and reputation• Ensure sustainable business practices, including social and environmental activities• Disclose the necessary group information to enable all stakeholders to make a

meaningful analysis of our financial position and actions• Respond appropriately to changes in market conditions and the business

environment• Remain at the forefront of international corporate governance practices.