Effective governance is critical to ensuring effective delivery of projects and programmes. In this webinar, Ross Garland, an expert in project governance and project assurance, takes you through the principles that he regularly applies to the design of governance frameworks for projects and programs ranging in size from $50M to $5BN. You can watch the full, recorded webinar at: www.axelos.com/events-calendar/principles-of-effective-ppm-governance

1. The principles of effective
P3 Governance

2. The components of a P3 governance framework
The decision making
structure
The people that operate
within the structure
Business
case
Status
Report
The information that
informs their decision

3. Question
be made by
What
a project board?
decisions
should
ONE

4. Which of the following roles
should be least likely to be
the SRO of a
change program?
Q
u
e
s
t
i
o
n
2
CEO
GM - Strategic
Planning
COO
CIO
CFO

5. How do you identify the
person accountable
for the success of a
project?
Q3

6. What is the role(s) of the
business case?
Question 4

7. Executive Management Team

8. Business
as
Usual
Executive Management Team

9. Business
as
Usual
Executive Management Team

10. Business
as
Usual
Executive Management Team

11. Business
as
UsualCEO
Delivery OperationsPolicy Planning Corporate
Corporate Organisation
Executive Management Team

12. Business
as
UsualCEO
Delivery OperationsPolicy Planning Corporate
Corporate Organisation
Executive Management Team

13. Business
as
Usual Projects
Programmes
CEO
Delivery OperationsPolicy Planning Corporate
Corporate Organisation
Executive Management Team

14. Business
as
Usual Projects
Programmes
CEO
Delivery OperationsPolicy Planning Corporate
Corporate Organisation
Executive Management Team

15. Business
as
Usual Projects
Programmes
CEO
Delivery OperationsPolicy Planning Corporate
Corporate Organisation
Project Board
Project
Executive
Senior
Suppliers
Senior
Users
Project
Manager
Project Organisation
Executive Management Team

16. Business
as
Usual Projects
Programmes
CEO
Delivery OperationsPolicy Planning Corporate
Corporate Organisation
Project Board
Project
Executive
Senior
Suppliers
Senior
Users
Project
Manager
Project Organisation
Portfolio
The Governance Triangle
Executive Management Team

17. Separate BaU and Change

18. Establish a single point of accountability
• A project should have ONE person identified as being accountable for its
success.
• This person/role should remain constant over the life of the project.
• They should represent the business unit that will benefit from the project.
• Known as Project Owner/Project Executive/Senior Responsible Owner (SRO.)

19. Choose the right Project Owner
• Wrong Project Owner = wrong project outcomes.
• Business outcome so Project Owner needs to represent the business.
• Project meets their business needs.
The role in the organisation that owns any particular service outcome should
own any project that will enable that service outcome.
Service outcome ownership
determines project ownership.

20. Support the Project Owner with a Project Board
• Project Owner needs support of key project stakeholders.
• Stakeholders may include representatives of:
• Those who fund the project
• Those who use the products produced by the project (PRINCE2 =
Senior User).
• Suppliers to the project, perhaps both internal and external to the
organisation.
Limit numbers to around 6 for a project
(say 10 for a program with multiple projects)

21. Separate
stakeholder management
and
project decision making

22. Empower the Project Owner
• Project Owner must have:
• Decision making authority
• Own the project budget
• Own the business case because it describes their investment

23. 23
Business case
accountability
Project
accountability
Budget
accountability
Service
outcome
accountability

24. Maintain the business case
• The business case has two roles:
• Justify the investment.
• Act as a governance tool for the Project Board.
• Contains the key parameters that define the project – drivers, expected
outcomes, benefits, budget, schedule, quality standards, scope, funding,
assumptions, interdependencies etc.
• Variations assessed against the business case.
What decisions are made by a Project Board?
Any decision that can have a material impact on the
business case.

25. Ensure consistent decision rights
• Possibly many decision making entities associated with the
governance of a project.
• Who makes what decisions?
• No gaps.
• No overlaps (because this creates confusion).
• It gets more complex if the project is part of a program.

26. Board
CEO
Director
Divisional Manager
Jurisdictional
Representative
Systems and
Processes
Resources
Operating
Company Board
Operating
Company CEO
Operating Co.
Project Team
Rep
DCM Contractor
Mtce Contractor
Project
Finance
Agreement
Auditor
Auditor’s
Contract
Funding
Organisation
Director
CEO
Shareholder
Shareholder
Agreement
Franchise
Agreement
Project Working
Group
Finance
Corporate
Departments
Design
Resources
Area/district
Company
budget
MOU
approvals

27. Portfolio Board
Project Board
Project Manager
Project Team

29. consistent decision rights
$Portfolio Board
Project Board
Project Manager
Project Team
any decision that may have a material impact on
the business case
Make day-to day decisions that do not impact the
business case

30. Question
be made by
What
a project board?
decisions
should
ONE

31. Which of the following roles
should be least likely to be
the SRO of a
change program?
Q
u
e
s
t
i
o
n
2
CEO
GM - Strategic
Planning
COO
CIO
CFO

32. How do you identify the
person accountable
for the success of a
project?
Q3

33. What is the role(s) of the
business case?
Question 4

34. Other sources
https://www.axelos.com/case-studies-and-white-
papers/programme-and-project-accountability
www.rossgarland.com
http://www.koganpage.com/editions/project-
governance/9780749453060
or Amazon

35. + 61 401 970 909
info@rossgarland.com
PO Box 241Bulimba QLD 4171Australia
www.rossgarland.com