PROJECT GOVERNANCE IN PRACTICE

PROJECT GOVERNANCE IN

PRACTICE

The everlasting journey towards

Value-adding Project Governance

Elize van Straten, MBL, PMP

®

, Prince2

®

OVERVIEW



Corporate & Project Governance

Compared



SITA’s Mandate and Governance

Framework



SITA EPMO Evolution



Lessons Learn’t



Final Mind Shift

THE PROBLEM

• The Big Problem in any Governance

discussion…………

CORPORATE & IT GOVERNANCE

• Governance is the set of decisions that defines expectations, grants

power, or verifies performance. It consists either of a separate process

or of a specific part of management or leadership processes.

• In IT governance (King III) , one seeks confidentiality, integrity and

availability of the functioning of the system; possession of the system,

authenticity of system information; and assurance that the system is

usable and useful. Concerns are unauthorized use, access, disclosure,

disruption or changes to the information system.

PROJECT GOVERNANCE



Project governance is the framework which ensures the project has been

correctly conceived and is being executed in accordance with best project

management practice within the wider framework of the firms of

organizations governance processes.



Effective project governance ensures projects deliver the value expected of

them. An appropriate governance framework ensures that all expenditure is

appropriate for the risks being tackled.



Project governance is not about micro-management, it is about setting the

terms of reference and operating framework, defining the boundaries and

ensuring that planning and execution are carried out in a way which ensures

that the project delivers benefits.

TWO SIDES OF THE SAME COIN

Business

Governance

is the

organizational

control of the

business

’

s

ability to deliver

value

Project

Governance

is the centralized

control of the

projects

that produce

this value

ICT GOVERNANCE FOCUS

(SITA AS IT FUNCTION OF GOVERNMENT)

SITA Mandate

The objects of the Agency

are—

(a)

to improve

service

delivery to the public

through the provision of

information

technology

,

information

systems

and related

services

in

a maintained information

systems

security

environment to

departments

and public

bodies; and

(b) to

promote the

efficiency of

departments

and public

bodies through the use

of information

technology.

8

Government

State IT Agency

SITA

Internal

IT

Function

V

al

ue

V

alue

EPMO MISSION

•

“To evolve SITAs

Portfolio, Programme

and Project

Management

capabilities to

predictably deliver

quality projects within

time and within

Standardise projects and project sustainability

2013/14

and before

▪

CMMI level 2

▪

Prince 2 adoption

▪

ERP / PM Process aligned

▪

100% ERP coverage

▪

Project Sustainability

▪

Monitor and report on project performance

▪

Business Planning System

▪

PPM focussed Governance body

Institutionalise Prince 2 and PM processes Institutionalise Portfolio Management PPPM Value proposition measured

2014/15

2015/16

2016/17

and beyond

▪

CMMI 3 Preparation

▪

Enterprise project governance (EPPC)

▪

Enterprise level demand management

▪

Retrain all PMs and LoB

▪

ERP training

▪

Tender for Integrated PM, PgM and PfM toolsets

▪

Implement operational performance dashboards

▪

Integrated Governance Body

▪

CMMI 3 Certification

▪

Portfolio Management forums established

▪

Portfolio Performance

▪

Integrated benefit monitoring

▪

ROI framework implemented

▪

Integrated PPPM implemented

▪

Integrated PMO capabilities

▪

CMMI 3+

▪

Measure fulfillment of BC

▪

Company wide PPPM institutionalized

▪

All projects EPPC approved

▪

Customer access to SITA PM systems

▪

SITA Capex planning framework established

10

EPMO GOVERNANCE EVOLUTION

Special Committee Governance Areas EXCO

Informed by:

Sphere

MPSA/Cabinet Board Board Sub Committee EXCO Sub Committee Steering Committee

Governance Structure

MPSA / CABINET

SITA Board

Stakeholder

Relationship,

IT

Governance

&

Coms

Sub-Com

SITA EXCO

OPSCOM

Enterprise Portfolio and Programme Management SC

Architecture Portfolio

Committee

Oversight on all project activities within SITA (Portfolio Management, Programme Management and Project Management)

Service Delivery

Committee

Regulatory King III Prince II PMBOK

Chair: GM EPMO Members: All relevant portfolio and programme managers, persons invited by the Chairperson.

NEW GOVERNANCE FRAMEWORK

Board: ICT, Research, Development and Innovation (ICT RDI)

EXCO

MANCO

EXCO: ICT Governance

Enterprise

Architecture

- ICT Com

ICT Service

Portfolio

Enterprise Project and Financial Sustain-ability

ICT Risk &

Security**

Procure-ment**

-

Bid-Spec**

- Bid

eval**

HR Policy

and

relations

12 ICT Governance ICT Management

** Temporary until Subsidiaries are operational

ICT GOVERNANCE - STRATEGIC

13

Committee

Focus

Members

Board: ICT,

RDI

(Research,

Develepment

and

Innovation)

• Approve ICT Governance Policy Framework

• Ensure ICT Service Delivery Performance alignment to stakeholders

• Approve ICT Governance implementation

• Approve ICT Investments and Expenditures

• Ensure ICT Risk Management.

• Ensure Information Asset and Security Management.

• Monitoring Conformance and Performance (Policy and Plans)

Chairperson: Non-Executive Director (ICT)

Members: Non-Executive Directors, Executive Director (CEO)

Invitations:

Deputy CEO’s, Chiefs/Exec of ICT Services, Chief Risk Officer, Head: Internal IT

Company Secretary, Internal Audit ICT Governance Champion

EXCO: ICT

Governance

Direct, Evaluate, Recommend –

• ICT Governance Policy Framework

• ICT Strategic Plans

• Enterprise Architecture (Business Model, Operating Model, Value Chain, IT Service Catalogue,

Capability Model, System Portfolio, Technology Portfolio)

• ICT Management framework

• ICT Programme Investment Portfolio

• SITA Corporate Risks and ICT Security Policies and Plans

• Procurement/Sourcing policies and plans

Monitoring and Evaluation conformance

Chairperson: CEO

Members: DCEO’s

Chairpersons of ICT Governance Steering Committees

Invitation:

Head: Internal IT Company Secretary Internal Audit Chief Risk Officer

ICT Governance Champion OCEO: Exec Support

ICT STEERING COMMITTEES

Committee

Purpose

Members

Enterprise

Architecture

Portfolio

Committee

(EAPC)

To lead, coordinate and recommend for approval the development of ICT Strategies, Enterprise Architecture (Business, Systems and Technology models), Innovation and ICT Quality

Management System, frameworks, policies, standards; and monitor portfolio performance and conformance; serve as escalation point for architecture, technology and standards related issues.

Chair: CTO

Members:

Exec: Systems

Exec: ICT Infrastructure Services Chief Enterprise Architect.

CTO: GIM, Innovation, Advisory, Quality, EPMO.

CS: Org Development, Internal IT Head: Provincial

ICT Governance champion

Enterprise Service

Portfolio

Committee

(ESPC)

To coordinate and recommend for approval the

SITA Service Portfolio and associated customer relations and contracting models including additions, modifications and retiring of services; and monitor portfolio performance and

conformance; and serve as escalation point for service offering related issues.

Chair: Exec: ICT Infrastructure Services

Members:

CTO: Service Portfolio CTO: GIM, EPMO Head: Internal IT Heads: CRM, SMC.

Heads: ICT Service Owners Head: Provincial

ICT Governance Champion

ICT STEERING COMMITTEES

Committee

Purpose

Members

Risk & Security

Committee

To coordinate the establish of Information Security Management System to ensure confidentiality, integrity and availability of information assets, Intellectual Property

and Personal Information; and Risk

Management System to identify, assess and reduce ICT-related risk within levels of tolerance; and monitor, evaluate and report performance and conformance against Security and Risk management systems.

Chair: Chief Security Officer

Members:

Chief Risk Officer CTO

Head: Internal IT

Risk Champions (National & Provincial) Head: Information Security Operations Head: Personnel Security

Head: Facility & Physical Security

Enterprise Project

and Financial

Sustainability

Committee

To direct the development of the

Programme Portfolio, and associated

Policies and frameworks; and to ensure that SITA undertakes projects and programmes that are in support of its current strategic objectives, regulate investment projects

and monitor and report on the sustainability and performance of the Programme and Project Portfolio.

Chair: Chief Financial Officer

Members:

Head: Executive Support CTO

Head: Internal IT

FIN Head: Management and Cost accounting Head: EPMO

Head: Customer Relations Programme Managers

16

PMO GOVERNANCE BACK BONE

Functional Support Converged Communication

Hosting and Storage

Implementation Services

Norms, Standards & Quality Cluster 1 Solutions

Solution Security Innovation & Research

Integration & Interoperability Government ERP Transversal Solutions Cluster 2 Solutions Province 1 Province 2 Province 3 Province 4 Province 5 Province 6 Province 7 Province 8 Province 9 SITA OPERATIONS

ICT Service Delivery Government Solutions & Standards Provincial Management Supply Chain Management Customer Service Management CTO

EPMO

Gov Information Management

EPMO PgM EPMO PfM GSS EPMO PfM _Province EPMO PfM ISD EPMO PgM EPMO PgM EPMO PgM EPMO PgM EPMO PgM EPMO PgM EPMO PgM EPMO PMO EPMO PgM EPMO Centre of Excellence

PMO GOVERNANCE BACK BONE

TYPE OF PMO

FUNCTION

Enterprise Portfolio Management Office (EPMO)

To govern all internal and external projects in the company and to consolidate performance and monitor interventions required, using a federated spectrum of PMOs.

Transformation

Programme Management Office (TPMO)

Largely internal focussed, this special purpose PMO created for the implementation of the SITA strategy and the annual BSC objective framework, will function independently from the SITA EPMO-PMO structures.

Divisional/Regional Project Management Office (PMO)

Created to support all projects within a Division. Consolidates performance and reports directly to the Divisional Head on such portfolio’s performance. Report to the EPMO on a dotted line with regards to Performance and Corporate Governance compliance.

Programme Management Office (PMO)

Created to support a specific programme of related projects (and services) for the company or customer. Consolidates performance and reports directly to the assigned Programme Manager. Recent example is IFMS Programme. Report to the EPMO on a dotted line with regards to Performance and Corporate Governance compliance.

Project Management Office (PMO)

Depending of the size of a project, a Project Management Office can often be created to support a specific large or complex project. This type of PMO normally plays a larger integration role on the project and becomes fairly active on project operational level. A project specific PMO would normally still interface with a Divisional or Regional PMO in terms of corporate governance.

Project Support Office (PSO)

Most of the larger project domains only have a PSO, consisting of a project manager, a shared Project Coordinator for ERP maintenance and one or more project administrators to assist with the day-to-day administrative matters on a project. A project specific PSO would normally still interface with a Divisional or Regional PMO in terms of corporate governance.

CMMI - MATURITY MODEL

19

EPMO Value Proposition

Internal IT Line of Business Finance Human Capital SCM Annual Revenue Management & Financing Demand + Multi-Year CAPEX view Reduced Operational Business Risk and Internal ERP efficiency Service Contracts Supplier Contracts ERP Projects APP & CBSC Costing and Pricing Policies Sustainable Business Growth Integrated Multi-Year Human Capital Demand Management Business Plans (BPS) CMMI framework Service Strategy Health Audits Service Catalogue Product Catalogue ECM Systems CMMI Audits

EPMO Business Support Process

Inputs Performance Reports Annual Business Planning Multi-Year Business Planning Business Interventions SCP Reports CMMI Level 3 Prep

PMO support BI Capabilities PPMs, PMs, SMs Managed Baseline Dynamic Structures Outputs

Operational Business Intelligence on performance baselines (APP, CBSC, Sales Targets) Maturity Management for Project, Programme and Portfolio Management

Governance of Project, Programmes and Portfolios defined (RDI & CAPEX & Strategic)

Oversight & Support of Portfolio, Programme, Project and Service Performance

Integrated Enterprise Level Demand Management using BPS baselines

VALUE PROPOSITION Integrated Multi-Year Procurement Demand Management Internal/External Audits Increased delivering of projects on schedule, within budget & at agreed quality Management decisions informed by quantitative information

LESSON’S LEARNT

• Sponsorship required at highest level

• Use a maturity model to pave the journey

• Use the PMO to position for Governance

• Use a strong methodology as building block

• Involve both Line Management and Project

Management in validation

•

Focus on leadership and alignment with strategy

•

Vision to cover entire organization

•

Integrity of business transformation managed through

programs in a Project Portfolio Management system

SHIFT from Conformance to Performance

SHFIT from Traditional Performance to VALUE-BASED

Performance

SHIFT towards the Values of honesty, transparency and

accountability

SHIFT from Segregated Governance to Integrated Governance

Presentation Title

THANK YOU

many “happy sponsors” on

your journey towards

value-adding Project Governance!

[email protected]

Let’s link on Linked

-In

HANDY SOURCES

• http://www.p3m3-officialsite.com

• www.jcse.org.za/process-improvement/cmmi

• opm3online.pmi.org