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Aligning Project Outcomes with your Strategic Direction A paper presented by Chris Cartwright Perth August 2002. Project Steering is all about Project Governance. Project Business Perspective. Scarce resources are steered into the most desirable business direction
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Aligning Project Outcomes with your Strategic Direction A paper presented by Chris Cartwright Perth August 2002
Project Business Perspective • Scarce resources are steered into the most desirable business direction • Projects are initiated and procured in a business-oriented manner • Benefits for the customer as well as for the organization are considered • A suitable Sponsor is appointed
Project Organizational Perspective The project sponsor is responsible for: • Managing Strategically Important Project Interfaces • Making Business Decisions about the Project • Managing the Project's Business Opportunities • Managing the Project Scope and Project Procurement • Exercising Leadership and Acting as a Role Model
Project Organizational Perspective The project sponsor is responsible for: • Managing Strategically Important Project Interfaces • Making Business Decisions about the Project • Managing the Project's Business Opportunities • Managing the Project Scope and Project Procurement • Exercising Leadership and Acting as a Role Model
Project Organizational Perspective The project sponsor is responsible for: • Managing Strategically Important Project Interfaces • Making Business Decisions about the Project • Managing the Project's Business Opportunities • Managing the Project Scope and Project Procurement • Exercising Leadership and Acting as a Role Model
Project Organizational Perspective The project sponsor is responsible for: • Managing Strategically Important Project Interfaces • Making Business Decisions about the Project • Managing the Project's Business Opportunities • Managing the Project Scope and Project Procurement • Exercising Leadership and Acting as a Role Model
Project Organizational Perspective The project sponsor is responsible for: • Managing Strategically Important Project Interfaces • Making Business Decisions about the Project • Managing the Project's Business Opportunities • Managing the Project Scope and Project Procurement • Exercising Leadership and Acting as a Role Model
Project Management Function Sponsor ensures people are assigned roles in the project management function ie: • Person responsible for the first phase • Project manager • Other members of the project staff, • These people are responsible for delivering results according to the agreements made with the project sponsor
Project Human Perspective • Sponsors should: • Provide Leadership • Make clear decisions • Act as a Role Model • Be the source of inspiration
Risk and Product Lifecycle Product Lifecycle Project Lifecycle
A simple governance gating model Feasibility Planning Close Execution A Gate is a FORMAL Business Decision
Make decisions when a change of state occurs TG0 Change from Line to Project way of working TG1 Change from high level/options to detail TG2 Change from plan to actual TG3 Change from uncertainty to certainty TG4 Change from project issue to organisation issue TG5 Close the project
Formal Tollgate Decisions TG0 Start of project feasibility TG 1 Start of project detailed planning TG 2 Start of execution of the project TG 3 Continued execution according to original or revised plan TG 4 Start of hand-over of project outcome to the receiver and the customer TG 5 Project outcome accepted, start of project conclusion
Possible Decisions • Pass Gate and continue with re-confirmed goals • Do not pass, go back and repeat X • Do not pass, go to close and terminate project All decisions have equal weight/correctness
Ability to change v Cost of Change Cost of Change TG3 Ability to Change $ Project Life Cycle
Letter of Intent / Contract Profitability Calculations Mandatory Network Impact Statement Mandatory Customer Requirements defined Mandatory Project Goals & Objectives defined Mandatory Project Scope & Strategy defined Mandatory Project Deliverables defined Mandatory Project Timeplan, MS & TG’s defined Mandatory Risk Analysis Mandatory Project Organization and Competencies defined Mandatory Support Arrangements defined (ERA, ETX, etc.) Mandatory Reporting Routines defined Mandatory Project Specification (incl. Quality Plan if applicable) Mandatory Estimated BTA Hours for Execution Mandatory Training Course Development Initiated Exemptions (S/W, H/W & Docware) Hardware Ordered Baseline established (timing and costs) Mandatory MS2 Review (Core 3 meeting) ·Commercial Agreement, Network Impact Statement, Project Spec, Estimated Hrs. Mandatory Example of a checklist for a tollgate meeting
Thank you for your attention Questions?