Supporting Project Managers Through Proper Governance
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Presentation to the Project Management Supporting Network Project Noeleen McHugh, Managers Assistant Chief Executive, Through Proper Local Government Governance Management Agency 28th May 2020 Contents • Definition of Governance • Benefits of Project Governance • Why Do Projects Fail? • 4 Crucial Roles • LGMA Project Governance • Conclusion • Q&A Definition of Governance • The word governance derives from the Greek verb “kubernáo”, which gave rise to “gubernare” in Latin, which means …. TO STEER • Turner (2006) suggests that governance of a project involves a set of relationships between the Project Team, the Project Sponsor , the Project Board, the Project Owner and other stakeholders. • Project governance provides the structure through which the objectives of the project are set and the means of attaining those objectives and monitoring performance are determined. Benefits of Good Project Governance • It provides scrutiny and challenge • It ensures return on investment • It offers the right levels of structure and accountability • It enables quality evidence-based decision making • It allows for the effective management of risk and project delivery • It proposes policies, standards and processes to assist with good practices Why Projects Fail • Changing Priorities 40% • Inaccurate Requirements 58% • Change in Project Objectives 35% • Undefined Risks/Opportunities 30% • Poor Communication 30% • Undefined Project goals 30% • Inadequate Sponsor Support 29% Good Project Governance - 4 Crucial Roles • Projects can consist of many roles but there are 4 major roles that ensure and enforce project governance • Project Sponsor • Project Board/Steering Committee • Programme Management Office (PMO) • Project Manager Project Sponsor or SRO • Champion of the Project • Ultimately responsible for delivering the business benefits of the project • Aiding and solving of appropriate issues • Support for the Project • Accountable for its successful completion • Realisation of the project objectives and benefits How a Project Sponsor Should Support a Project Manager • Provide Resources • Secure Budget • Resolve Issues • Communicate with Stakeholders • Mentor the Project Manager Project Board/Steering Committee • Chaired by the Project Sponsor • Combined body of the major stakeholders • Overall direction and management of the project • Authority which signs off the completion of the major phases/milestones of the project and authorises the next phase • Effective decision-making including risk, issue and change management • Accountable for the success of the project • Approves/rejects scope changes during the course of the project unless the authority has been delegated to the Project Manager or Project Sponsor to make these decisions, subject to change control parameters. How a Project Board Should Support a Project Manager • Project Board Governance • Project Board Direction • Decision-Making • Risks and potential challenges • Resource problems • Schedule delays • Budget overruns • Change Control Programme Management Office • Managing shared resources across projects • Ensures that any project correctly progresses through the PMO methodology • Standardises the project related governance processes • Provide assistance, support and templates to the Project Team and Project Board throughout the entire project lifecycle • Co-ordinating communication across projects How a PMO Should Support a Project Manager • Support – not “methodology police” • Expertise • Knowledge Management • Experience Project Manager/Director • Management of the Project • Prepare Project Plans • Monitor and manage risks and issues • Manages scope, costs and timeline of the project • Communicate progress to the Project Board • Stakeholder Management • Manages requests for changes to deliverables, scope, timescale or budget from Project Board or Project Sponsor • Deliver the project deliverables to the agreed time, budget and quality. LGMA Governance Structure Public Sector Reform Oversight Group • Established in 2012 by the CCMA to direct and oversee the reform agenda for the local government sector. • Integrated into the structures of the LGMA as a committee of the LGMA Board in 2015. • Membership • Chair of the LGMA • Chair of the CCMA • Chief Executive Officer of the LGMA • Chief Executive of Cork County Council • Chief Executive of Dublin City Council • Secretary General and Asst Sec Gen of Department of Housing, Planning and Local Government • External representative from the private sector Public Sector Reform Oversight Group • Purpose of the PSROG • Direct, monitor and report on the reform and efficiency programme of local government • Decide on whether it is appropriate to proceed with each of the assessment and set-up stages of a shared service, from the approval of the PID and BC, to the establishment of a Peer Review, and the implementation of an appropriate delivery mechanism. • Act as a first point of referral for exceptional reporting, issues and risks encountered by the relevant project boards within the reform programme • Provide reports to bodies such as NOAC, DHPLG and other stakeholders Programme Management Office • First point of contact when a project idea begins • Supports and facilitates oversight of Project Teams • Ensure adherence to procedures and governance structures • Functions • Develop standards and processes • Encourage (enforce where necessary) the use of these standards and processes • Gather data about project progress and produce reports (RAG) • Provide support and resources for projects • Develop training and mentoring for project resources • Manage dependencies across multiple projects • Manage a repository of project documentation including lessons learned documentation Programme Management Office • PMO Handbook • PMO Templates • Project Sponsor • Project Initiation • Project Board Document • Project Manager • Business Case • Project Team • Peer Review • Implementation LGMA Project Governance • In the LGMA, the Project Sponsor is often not from the LGMA and is usually the Chief Executive and sometimes a Director of Services of a local authority • LGMA Project Boards usually contain members of multiple organisations, i.e. govt departments and other public service bodies Roles & Responsibilities – RACI Matrix • For many projects the RACI matrix works well • A matrix of activities or decision-making where a person is assigned • RACI • Responsible • Accountable • Consulted • Informed Roles & Responsibilities – Terms of Reference • Terms of Reference for Project Board and any working groups or sub-groups established by the Board • Purpose of the Project Board of Group • Role of participants – Sponsor, Project Board members • Governance and Reporting • Relationship with governance structure • Role of other structures and stakeholders • Membership • Meetings • Secretariat Conclusion • Good governance is the secret weapon of organisations which have a lot of projects. • A key element of successful project governance is understanding the crucial roles and addressing how rights and accountabilities are assigned between the project team and its governance structure • “Make it Fit” for your organisation and your project.