A presentation I made to the Defence Academy under the auspices of Cranfield University and its Masters course in Programme Management.

1. Project Governance
New Solutions to Common Problems
Mark Swan 20 May 2011

2. Schedule for the Morning
• Introduction & Get to Know You
• 1st session – Recap on Why Projects Fail
• 2nd session – Recap on Stakeholder Management
• Coffee Break (10:15, approx.)
• 3rd session – Programme / Project Governance
• Questions & Answers

3. Introduction
• Me:
– Chemical Engineer by training
– Now, a practising programme and project manager
– Also, advise on best governance arrangements
– Work in both public and private sectors
• You:
– ?
– ?
– ?

4. 1st Session - Recap on Why Projects Fail
•
• – central records project;
£2.7bn spent to date!! A terrible example
case study
“This project is a
farce and has
been an utter
waste of money!”
Simon Burns, Health Minister
BBC Radio 4, 18 May, 2011
• So, why DO projects fail?
• What do you think?

5. 1st Session - Recap on Why Projects Fail
• : says it’s often a lack of:
– Link between an organisation’s strategy and the
project
– Agreed measures of success
– Ownership and leadership
– Engagement with stakeholders, incl. suppliers
– Relevant skills (P.Mgr?) and proven approach
– Manageable steps in the plan
– Properly documented business case
– Follow through on benefits realisation

6. 1st Session - Recap on Why Projects Fail
• Research at Queensland University of Technology
(QUT) 2010: all of the above +
– International, cross industry study; key conclusion was
that:
“Dominant issue is poor Project Sponsor/Project Board
performance ………”

7. 1st Session - Recap on Why Projects Fail
• Ross Garland and Me: all of the above +
– Lack of focus on service delivery
– Ineffective Project Board decision-making
– Confusion over objectives
– Risk aversion – favours the right thing, rather
than what is right (e.g. dogged adherence to
methodology)

8. 1st Session - Recap on Why Projects Fail
Methodology and -
its application !
• Some key Project Manager (s)
thoughts –
you need to
get these
right! Governance Stakeholder
management

9. 1st Session - Recap on Why Projects Fail
• 1st Break Out Session
– What are the qualities of a
good project manager?
– What’s your blockbusting
question, when recruiting a
PM?
– 15 minutes
– 2 from 7 teams to report back

10. 1st Session - Recap on Why Projects Fail
• The Qualities of a Good Project Manager
(PRINCE 2); should be good at:
– Planning
– Time management
– People management
– Problem solving
– Attention to detail
– Communication
– Negotiation
– Conflict management

11. 1st Session - Recap on Why Projects Fail
• The Qualities of a Good Project Manager
(research by Pearce Mayfield – the ‘Mental
Crib Sheet’):
The ‘α – trait’ manager:
1. Exhibits self
awareness
2. Has a bias towards
relationships
3. Plans naturally for the
unplanned

12. 1st Session - Recap on Why Projects Fail
• Methodologies; 7 principles of PRINCE 2 are not a
bad start:
Learn from Manage by
experience exception
Continued
Business Manage by Tailor to suit
justification stages your needs
Defined roles & Focus on
responsibilities product delivery

13. 1st Session - Recap on Why Projects Fail
• Methodologies; as well the 7 themes of PRINCE 2
are good pointers for success:
– Focus on business case throughout
– Organisation of the project is critical
– Quality really matters
– Plans – provide communication & control
– Risk – look ahead to see what might bite you!
– Change – it’s a certainty, so manage it!
– Progress – cue for decision-making

14. 1st Session - Recap on Why Projects Fail
• Your experiences?
• Questions?

15. 2nd Session – Stakeholder Management
• A PRINCE 2 definition:
– Any individual, group
or organisation that
can affect, be affected
by, or perceive itself
to be affected by, an
initiative (programme,
project, activity, risk)

16. 2nd Session – Stakeholder Management
• Two grids to think about to help you
manage stakeholders……..

17. 2nd Session – Stakeholder Management
• Grid 1 – The Power / Interest Chart
High Keep satisfied Manage closely
(see next grid)
Power
Monitor Keep informed
Low
Low Interest High

18. 2nd Session – Stakeholder Management
• Grid 2 - Type of Stakeholders
Support
Supporters (positive Champions (use
but not active) their power to get
people behind them)
Fence –sitters
Passive Active
Critics (negative, but Blockers (use their
only passively resist) power to undermine)
Opposition

19. 2nd Session - Stakeholder Management
• Your experiences?
• Questions?
• Coffee Break (20 minutes)

20. 3rd Session – Governance
Project governance is the
management framework within
which project decisions are
made.
Research sponsored by OGC and APMG at Queensland
University of Technology, published 6 August 2010
“……………The dominant issue for failure to deliver
against programme objectives is poor Project
Sponsor/Project Board performance…………….”.

21. 3rd Session – Governance, Common Issues
Silo Decisions Management Time Pet Projects
Narrow Vision Too Many Projects Wasting Money

22. 3rd Session – Governance Principles
1) A single point of 2) Service delivery
accountability for the ownership determines
success of the project project ownership
 Speedy project  Ensures project
initiation, clear direction outcomes meet service
delivery needs
3) Separation of
stakeholder management 4) Separation of project
from decision-making governance and
activities organisational governance
 Avoids numerous  Empowers the project
stakeholders clogging board to act independently
decision-making forums

23. 3rd Session – Governance
Project Owner is the Service Owner
Service
Level
The Project New Future
Service Level
Existing
Service Level
Project enables
transition to new
service level
Service degrades
naturally over time
Time

24. 3rd Session – Governance, A generic model
decision making path
advisory & feedback path
Investment Decision Group
Strategic Advisors Group Senior User Project Owner Senior Supplier
Chair: Project Owner Project Director
Project Board
Stakeholder Working Group
Project
Manager
Chair: Project Director
Project Team

25. 3rd Session – Governance
• Real Case study – a new start-up regional gas utility company has won the
franchise:
– to inherit ownership of the existing gas pipeline network from British Gas;
– to deliver a new connection service to new domestic and business
customers;
– to provide an emergency gas leak response unit;
– and, to set up routine maintenance on the network.
• The business environment is heavily regulated and there are stiff penalties for
failure – e.g. on failure to hit response times and for overruns on ‘holes in the
ground’. A new organisation is needing to be trained, but staff and
management terms and conditions have still to be finalised. There are lots of
existing working practices, but nobody knows whether they will suitable in the
new business environment. Some old computer systems are available from
British Gas, but most are new and have been purchased from a variety of
suppliers, and have never been tested together before. A £18m budget for the
Change Programme has been granted by the owners / investors, but have
made it very clear, if this programme fails, then the business fails!
• Who are likely to be the stakeholders and as Programme Director how should I
include their views? What governance arrangements should I set up?
• 2nd break out session – 30 minutes; 2 teams to report.

26. Session 3 – Governance and Key Closing
Messages, Follow Up Actions
• Define and agree a clear enterprise policy on programme governance
• Determine investment ownership and accountability
• Ensure efficient project and program initiation
• Define decision rights – i.e. which governance bodies make what
decisions
• Agree gating processes to ensure on-going executive management
control
• Review current portfolio for performance; cull no-hoper projects and
free up scarce resources (people, skills and £)

27. 3rd Session - Governance, The Book
Governance
Published by Kogan Page 2009
Builds on established best
practice
Acknowledged by the OGC,
Association of Project
Management
Practical guide to decision
making
Integrated governance for
Portfolios, Programmes &
Projects

28. 3rd Session - Governance
• Your experiences?
• Questions?

29. Thank You

30. Back up charts

31. Effect of Poor Use of Scarce Resources
A Project Portfolio in Trouble These 4 Planned
Projects
In the Pipeline are
Scarce operational budget (£) ‘Crowded Out’
for ‘business as usual’
High expected returns
„Dog‟
„Dog‟ project
„Dog‟
High expected returns
Low expected returns
Scarce operational headcount budget
(#FTEs) for ‘business as usual’ Low expected returns
Note: size of circle represents planned effort needed to fulfil project. Colour of
circle represents expected return: green is high; orange is low; red is a loser