1. Governance: Focus,
complexity and intelligent
client behavioursDr Harvey Maylor

2. The challenge
Results consistent:
>68% of projects failing
Major challenge for
organisations:
Capex
Strategies, initiatives,
innovations
Revenue
© Cranfield University 2013 2

3. Reality check
© Cranfield University 2013 3
Met time
target
70%
Met cost
target
70%
Met quality
target
70%+ +
Probability of meeting all 3 objectives = 0.7 x 0.7 x 0.7
= 0.34

4. Back to PM101
© Cranfield University 2013 4
“The fundamental premise of successful business
practice is to offer what clients want:
cheaper, faster and better than competitors.”

5. UOR Delivery Focus
Senior
Mgt.
Delivery
team
Provider Client
Provider Client
UORs..
That’s where speed
and mobilisation of
resources is key and
can be critical
UORs..
That’s where speed
and mobilisation of
resources is key and
can be critical
UORs..
That’s where speed
and mobilisation of
resources is key and
can be critical
UORs..
That’s where speed
and mobilisation of
resources is key and
can be critical
5

6. Non UOR Delivery
Focus
“I’m actually
adamant that we won’t
compromise on quality
it’s a product on
time actually. Not too
much cost, but product on
time with reasonable cost
“an organisation
that fundamentally
understands the service
delivery requirement.”
“Why are we here?...
To make a profit…that’s
what we’re in business
to do”
“For the client - cost
and quality probably”
“from the client perspective
whatever price we can
meet they will expect top-
line quality
“
we weren’t necessarily the
cheapest but we added
value and were trusted on
that”
The clients judge us on
cost and on-time
delivery
“for the client
– it’s always
about price”
“The client relationship is
absolutely key. A strong and
positive client relationship
“Margin is a deal hurdle
and improving margin
is a big driver”
Quality of delivery,
quality of people,
quality of service
“
The most important
is we deliver value rather
than low cost”
“So if you put
a quote in
they’ll always
go for the
lowest”
Senior
Mgt.
Delivery
team
Provider
Provider
Client
Client it’s a product on
time actually. Not too
much cost, but product on
time with reasonable cost
it’s a product on
time actually. Not too
much cost, but product on
time with reasonable cost
Page 6

7. Three guiding
principles for
strategic focus1. Understand how important project delivery capability
is to your organisation
You get what you focus on, promote and measure.
2. Understand focus
The firm that attempts a narrow mission will be more
successful than one that attempts a wider one
3. Simply saying this is important isn’t enough
The organisational strategy is the pattern of
decisions actually taken and must demonstrate both
internal and external fit
7
Question 1: What is the role of governance (if any)
in gaining strategic focus ?
Question 1: What is the role of governance (if any)
in gaining strategic focus ?

9. Task Complexity Managerial Response
?
Complexity
?
9

10. Complexities
 Structural complexity:
 Number, size, financial scale, interdependencies, variety, pace,
technology, breadth of scope, number of specialities, multiple
locations/time-zones.
 Socio-political complexity:
 People, politics, stakeholder / sponsor commitment, resistance,
shared understanding, fit, hidden agendas, conflicting priorities,
transparency.
 Emergent complexity:
 Technological and commercial maturity and novelty, clarity of vision /
goals, clear success criteria / benefits, previous experience,
availability of information, unidentified stakeholders.
10

11. Complexities
“In your work, which of the
3 complexities is the most difficult to
manage?”
“In your own formal training and
development, which of the 3
complexities has received the most
attention?”
We asked a group of 246 PMs these questions
11

12. Representing
Complexities
12

13. Responses to
Complexities
 How to respond to the project / programme
management complexities we face?
 How many of these are self-inflicted?
 Three ways of addressing each:
Resolve – make it go away
Reduce – make less severe
Run with it – deal with the residuals
13

14. Responding to
Complexities
 For ‘less-complex’ work, ‘standard’ responses are
adequate (planning, resourcing etc.)
 To deal with project
complexities, a more
tailored and thoughtful
approach is required.
14

15. Responding to
Complexities
Structural Soc-Pol Emergent
Plan &
Control
Plan comms (inc. clear
visualisation); isolate
key tasks; create
project board of
stakeholders.
Co-location; use PMO
as point of control;
scenario planning;
change control.
Relational
Prioritise
communication with
stakeholders; reach
out to others.
Socialise changes;
revisit assumptions;
increased informal
communication.
Flexibility
(Risk & Change)
Anticipate refinement
and testing; change
control; parallel
developments.
Manage expectations
of change; revisit
benefits regularly;
‘look-ahead’ with client
Complexity response
more than this area?
15

16. Choice of Manager
 Understanding the complexities can be used
to choose the right manager.
Technical, size, number
of interconnections.
S
E S-P
Adaptive,
flexible.
Relationship-
builder.
 Better understanding of the project
complexities:
 Structural
 Socio-political
 Emergent
 Can help in selecting the right
manager for the task, based on:
 Skills, previous experience, or
 Development needs.
16
Question 2: What is the role of governance (if any)
in managing complexity?
Question 2: What is the role of governance (if any)
in managing complexity?

17. © Cranfield University 2013 17

18. Intelligent Clients
 NAO 2006 report – identified importance
in general terms and the term intelligent
client
 T5 case
 MoJ CNOMIS
 Ford & Apps
 Comparison with current approaches to
procuring complex projects
 With complexity comes paradox
 “Paradoxes are only paradoxes because
they are based on a logic or rationale
that is different from what we
understand or expect.” (Harvey, 1988,
p.20) .
18

19. Paradox
 Notable work on paradox: Streatfield (2001).
 Our research highlighted the many paradoxes in
the world of projects and project management
(Maylor and Brady, 2010).
 “Paradoxes are only paradoxes because they are
based on a logic or rationale that is different from
what we understand or expect.” (Harvey, 1988,
p.20) .
19
19

20. Paradox Idealised logic
The risk
paradox
Passing the risk on by outsourcing assumes the client can
avoid the risk
The contract paradox The tighter you specify the terms and conditions in the
contract the more likely a successful delivery
The cost-cutting
paradox
Skimping on up-front investment and selecting the lowest
bid supplier and applying rigorous controls ensures value
for money
The outsourced problem
paradox
An external supplier is better placed than an internal agent
to ‘fix’ organisational problems
The relationship
paradox
Current legislation is perceived to prevent government
procurers developing relationships with suppliers
The process paradox The mantra is ‘if there is a problem, fix the process’ – which
may be fine for simple projects
The learning paradox Programmes should be ideal vehicles for learning – PDCA
maps well to the programme life cycle
20
7 paradoxes identified

21. Working with paradox
© Cranfield University 2013 21
Question 3: What is the role of governance (if any)
in encouraging intelligent client behaviours?
Question 3: What is the role of governance (if any)
in encouraging intelligent client behaviours?
1. Understand the complexity of aspects of a project
Which areas are truly highly complex and which
can be treated as transactional?
2. Understand paradox
For those highly complex areas, recognise that
decisions could be paradoxical
3. Operationalise strategy
Intelligent client behaviours towards risks,
contracts, costs, integration, relationships,
process and learning

22. Conclusions
1. Focus requires hard trade-off decisions to be made.
2. Project complexity can be managed.
3. For high residual complexity, intelligent behaviours
include understanding where decisions are
paradoxical.
© Cranfield University 2013 22
Question 2: What is the role of governance (if any)
in managing complexity?
Question 2: What is the role of governance (if any)
in managing complexity?
Question 3: What is the role of governance (if any)
in encouraging intelligent client behaviours?
Question 3: What is the role of governance (if any)
in encouraging intelligent client behaviours?
Question 1: What is the role of governance (if any)
in gaining strategic focus ?
Question 1: What is the role of governance (if any)
in gaining strategic focus ?

23. Governance: Focus,
complexity and intelligent
client behavioursDr Harvey Maylor
Email: icpm@cranfield.ac.uk (until 31st
July)
harvey@pmpc.co.uk