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Project and Programme governance . Command and control or Value Creation? . Kevin Parry Director, Consultancy Services. PMG Consulting. On Managing Change . “It should be borne in mind that there is nothing more difficult to arrange , more doubtful of success
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Project and Programme governance Command and control or Value Creation?
Kevin ParryDirector, Consultancy Services PMG Consulting
On Managing Change “It should be borne in mind that there is nothing more difficult to arrange, more doubtful of success and more dangerous to carry through than initiating changes…..” Machiavelli: The Prince
Governance is something that the Programme or Project Office should be managing Governance is an issue for the Board of Directors Governance is about putting a committee in place Governance is just another word for review Myths and misconceptions
Governance is the means by which we implement the proper management of change Governance describes an over-arching framework for the exercise of controls and accountability in order to ensure the successful execution of Projects and Programmes. Programme Governance is a sub-set of Corporate Governance So it’s just about control, right?
Good governance is how … “…businesses can assure the effectivenessand efficiency of their project management, project sponsorship and portfolio direction and how they can ensure: proper coherent disclosure and reporting of these systems and of their performance.”
Good corporate governance should result in improved: • direction of change through gap analysis • focus on important change control issues • audit trail for governance • context for project management • basis for learning and improvement • organisational achievements So it’s about making them work better?
Governance is more than about information and control of budgets • right information at the right time • being clear about • what you need to see • who needs to see it • keeping strategic focus in the business
What is the link to Sponsorship? What needs to be clear first? What needs to be controlled ? What is the right approach? Who needs to decide? How often should it be reviewed?
Governance architecture Oversight Behaviours Tough Decision Taking Review and Risk Management Key Performance Indicators Appropriate Project and Programme Structures Effective Controls on Project Initiation and Closure Good governance adds value at every level in the programme structure
Governance exists at many levels Company Board or Executive Body Programme Board Programme Manager Programme Office Project Steering Board Project Steering Board Project Steering Board Project Steering Board Project A Project B Project C Project D
PPSO Programme Governance Project Governance
Technical or Design Authority Steering Group or Programme Board The Programme Team Change Control Board or Project Board
Getting the right balance across the change portfolio Strategic Short Term Capability Changes
Empowerment Control Vs
Opportunity Risk Vs
Program Timescales Resource Capacity Vs
This is the pinnacle of good governance. It balances the opportunities and the allocation of resources
so… • There is no single model for good governance • What is right is largely what works in your organisation • It depends on the complexity of the project portfolio being managed
However • It should link to corporate strategy as a point of reference • It should reflect and be part of corporate governance • It should differentiate between short term and long term and between operational risks and strategic risks • It should enable opportunities as well as risks to be considered • It should include all major stakeholders
Financial Process Benefits Risks
Environment History Timing Leadership Willingness + Impact Ability + + Magnitude