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
1 October 2015 APM Governance SIG: Amerjit Walia 2
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
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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
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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)
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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).
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“No such thing as failed projects, only failed governance!” Andrew Bragg – ex CEO APM
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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)
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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
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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
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“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
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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
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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
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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.
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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
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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!
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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
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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