2. Amerjit Walia - delivering good governance for p3m GOV011015

1 October 2015 APM Governance SIG: Amerjit Walia 1

APM Governance SIG Conference

Delivering Effective

Governance for P3M 1st October 2015

Amerjit Walia

Orbitus Consulting Ltd


Key Definitions

Why Governance of P3M

Do Organisations fail project management?

Governance Structure and Principles

Project Sponsorship

Health & Social Care Centre

The Final Frontier P4M

CONTENT


OECD Definition

‘Corporate governance involves a set of relationships

between a company’s management, its board, its

shareholders and other stakeholders.

Corporate governance also provides the structure

through which the objectives of the company are set,

and the means of attaining those objectives and

monitoring performance are determined’

Organisation for Economic Co-operation and Development

OECD Principles of Corporate Governance 2004

www.oecd.org


Governance of PM ‘.. Governance refers to the set of

policies, functions, processes,

procedures and responsibilities that

define the establishment, management

and control of projects, programmes

and portfolios’. APM BoK 6th Edition

Not Project Governance! (management framework within which project decisions are made)


Why Governance of P3M?

Governance of portfolios, programmes and projects

is a necessary part of organisational governance;

Provides for internal controls;

Externally, it reassures stakeholders that their

investment being spent is justified;

Good governance is increasingly demanded by

shareholders, government and regulators.

To comply with external regulations and legislation

(e.g. the UK Corporate Governance Code and

Sarbanes-Oxley in the USA).


“No such thing as failed projects, only failed governance!” Andrew Bragg – ex CEO APM

http://en.wikipedia.org/wiki/File:Deepwater_Horizon_offshore_drilling_unit_on_fire_2010.jpg


Lack of a clear link between the project and the organisation’s key

strategic priorities, including agreed measures of success.

1.

Lack of clear senior management and ministerial ownership and

leadership

2.

Lack of effective engagement with Stakeholders 3.

Lack of skills and proven approach to project management and risk

management.

4.

Lack of understanding of and contact with the supply industry at senior

levels within the organisation.

5.

Evaluation of proposals driven by initial price rather than long-term

value for money (especially securing delivery of benefits).

6.

Too little attention to breaking development and implementation into

manageable steps.

7.

Inadequate resources and skill to deliver the total delivery portfolio. 8.

Factors in project failures (OGC)


Do Organisations fail P3M?

Recent research indicates:

“poor project performance results in

organisations wasting $109 in every $1bn

invested”

“fit for purpose governance strongly influences

project and programme success”

“higher performance is correlated with higher

maturity”

8


Governance Structure APM Bok 6th Edition


Organisational PM Board

Clear Roles & Responsibilities of

OPM Board

Accountability

Core Components:

Portfolio direction

Project sponsorship

Project management Capability

Disclosure and reporting APM Directing Change

publication2007


Gov PM 13 Principles


Gov PM Principles 2/..


“Sponsorship of a project, programme or

portfolio is an important senior management

role. The sponsor is accountable for

ensuring that the work is governed

effectively and delivers the objectives

that meet identified needs.” APM BOK 6th Ed 2012

“80% of the projects with active sponsors reported a success rate of 75%”

“Actively engaged sponsors is the top driver for project success”

PwC Global PPM Survey 2014


Sponsoring Change:

A Guide to the Governance Aspects of Project Sponsorship, APM 2009

The Project Sponsor is the vital link between

the Board and P3M


Attributes of Successful

Project Sponsorship Project Sponsor effectiveness = best single predicator of

project success or failure

Appoint a named Sponsor early in the project lifecycle

Critical success attributes:

1. Support

2. Continuity

3. Alignment

Personal Attributes:

1. Understanding

2. Competence

3. Credibility

4. Commitment

5. Engagement


Health & Social Care Information

Centre (HSCIC) The P3M Improvement Programme: to address shortage of

experienced change, programme and project managers, in

particular with experience of implementing applications that

are being delivered by IM&T programmes.

The improvement programme covers four broad areas: 1. Building organisation capability to deliver successful programmes and

projects

2. Establishing and maintaining a collaborative P3M community to

share best practice and promote recognised standards and opportunities

3. Building workforce capability by developing P3M careers paths and

development routes

4. Ensuring a competent and professional P3M workforce by identifying

learning and development opportunities, tailored to NHS needs and

aligned to competency frameworks, NHS job roles and industry standards.


APM CMLG

APM CMLG highlighted the following:

Governance is seen as a compliance

issue rather than something to get right;

Governance Language is a barrier to

effective communication

Governance is no more than a gate

review or a tick box exercise to gain

further funding


The Final Frontier Project Managers are technically

(Raconteur, Sunday Times Supplement2 Aug 2015)

competent but not ‘leadership savvy’

People-Project Management – P4M

The role of HRM in PM

Governance of P3M is active behaviours that

engage, inspire, champion, motivate, provide

direction, problem solve, collaborate, monitor &

control, are flexible, and above all provide

leadership – its all about that 4th P – People!


Thank you


Directing Change

2nd edition 2011 Co-Directing Change

2007 (2nd edition in

2014)

Sponsoring Change

2009

Free to APM members at www.apm.org.uk/memberdownloads

GovSIG – Publications to date


Amerjit Walia - Profile

As a project management consultant and trainer in people projects and

programmes, Amerjit specialises in developing best fit-bet practice methods

for organisations. With over 25 years pan-sector experience his focus has

been on making key links between P3M, governance and organisational

capability through his expertise in corporate strategy and people management.

Amerjit is a Fellow of the APM and Chartered Fellow of the CIPD

Business

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