Joint projects and the governance conundrum webinar, APM Governance SIG webinar Friday 27 January 2017 presented by Andy Murray and Martin Samphire

1. Joint projects and the
governance conundrum
1
APM Governance SIG
27th January 2017

2. 2
Agenda
 Introduction
 About APM Governance SIG
 Overview of the ‘Governance of Co-owned Projects’
 Upcoming events

3. Introductions
Martin Samphire – host
Andy Murray - speaker
3

4. Andy.murray@rsmuk.com
07776 301602
https://uk.linkedin.com/in/andymurray
Andy Murray
Andy is a chartered director and management consultant
specialising in Project, Programme and Portfolio
Management, with over 20 years of varied experience (public
sector/private sector, SME/corporate, domestic/international).
Andy has a focus on project/programme governance and the
treatment of inherent project/programme complexity. He has
worked with Axelos, HM Treasury, Cabinet Office and the
Association For Project Management (APM) in developing
guidance on delivering successful projects/programmes,
such as IUK Project Initiation Routemap, Directing Change,
Co-Directing Change, PRINCE2 and P3M3.
Andy is a sought after speaker and was cited in the Sunday
Telegraph’s business supplement as one of the most
influential people in project management.
Andy is a partner in RSM UK, responsible for the Project and
Programme service line and is also RSM’s Head of
Infrastructure sector.

5. About the
APM Governance SIG
5

6. Governance SIG
Objectives
 Be the UK focus
 Advance understanding
 Contribute to good practice
 Influence national and
international standard making
authorities
 Influence those operationally
responsible
 Develop ambassadors and
exemplars of excellence
6
….in the governance of project management (change)
Activities
 Engagement – CxO level
as well as APM members
 Conferences and Seminars
 Publications
 Influence of, and
contribution to, standards

7. Directing Change
2nd edition 2011
7
Governance of Co-
owned Project
2017
Sponsoring Change
2009
Free to APM members at www.apm.org.uk/memberdownloads
GovSIG Publications
Directing Agile
Change 2016
To join the SIG, please register/log into the APM website
and on the Governance page click join this group.

8. Overview of
the new guide
8

9. Governance of Co-owned Projects
 What are co-owned projects/programmes
 Why traditional governance models struggle
 Governance of co-owned projects/programmes principles
 Governance of co-owned projects/programmes health-check
 How to use the guide
 Benefits
9

10. Co-owned Projects: Context
 There are numerous benefits of working on joint projects
 Often organisations are participating in joint projects that are
sometimes greater in scale and complexity than they have
undertaken on their own
 By committing to a joint project the Board of each participating
organisation takes on more than usual than if they did it on their
own
 Each organisation will inevitably, in the eyes of stakeholders, be
associated with the project – whether successful or not.
 So a core concept of joint projects is that they are ‘co-owned’ by the
participating organisations.
10

11. Co-owned Projects: Context
11
Governance of project
management organisation
2
Governance of project
management organisation
1
Project Management of co-
owned project
Organisation 1 governance Organisation 2 governance
Governance of co-
owned project

12. Co-owned Projects: Issues
12
Governance of
project management
organisation
2
Governance of
project management
organisation 1
Project Management of
co-owned project
Organisation 1 governance Organisation 2 governance
Governance of
co-owned
project
The challenge for organisations
who sponsor or deliver co-owned
projects is that traditional project
management frameworks and
methods are based on governance
structures that assume a single
hierarchical route for authority and
accountability.
This is rarely the case for co-owned
projects which is why organisations
are rightly challenging whether their
traditional governance
arrangements are fit for purpose.

13. 13
Formal Arrangements
Agreements
Flexibility and change management
Benefits and rights
Co-owner to Co-owner
due diligence
Mutually accepted business cases
Co-owners’ legal and governance compatibility
Co-owners’ standing, culture and capability
Working Arrangements
Reporting
Assurance and transparency
Stakeholder relationships
Trust, collaboration and value maximisation
Co-owned Projects: Principles

14. Co-owned Projects: Principle 1
14
Governance of
project management
organisation
2
Governance of
project management
organisation 1
Project Management of
co-owned project
Organisation 1 governance Organisation 2 governance
Governance of
co-owned
project
1. Agreements
There should be formally agreed
governance arrangements. These may
include legal contracts and agreements
among co-owners which together
ensure
• Clear processes for decision
making ensuring unified project
management and unambiguous
representation of each co-owner.
• Processes to deal with conflicts
of duty, conflicts of interest,
ambiguous accountability and
the resolution of disputes.
• Explicit commitment to
collaboration, resource
provision, mobilisation and
demobilisation.

15. Co-owned Projects: Principle 2
15
Governance of
project management
organisation
2
Governance of
project management
organisation 1
Project Management of
co-owned project
Organisation 1 governance Organisation 2 governance
Governance of
co-owned
project
2. Flexibility and change
management
The formal arrangements should
provide for fundamental change
including change in the group of co-
owners and should define the
process to be invoked.
This includes changes as a result of
revised objectives or approach,
resolution of conflicts, co-owners
joining or leaving, or as a
consequence of material change in
control, relevant strategy or risk
appetite within co-owning
organisations.

16. Co-owned Projects: Principle 3
16
Governance of
project management
organisation
2
Governance of
project management
organisation 1
Project Management of
co-owned project
Organisation 1 governance Organisation 2 governance
Governance of
co-owned
project
3. Benefits and rights
The formal arrangements should
define responsibility for the
realisation of benefits arising and
discharge of co-owners’ obligations
after leaving or completion.
They should include intangible
benefits and the protection of co-
owner’s confidentiality and
intellectual property, and rights to
publicise outcomes or represent
other co-owners.

17. Co-owned Projects: Principle 4
17
Governance of
project management
organisation
2
Governance of
project management
organisation 1
Project Management of
co-owned project
Organisation 1 governance Organisation 2 governance
Governance of
co-owned
project
4. Mutually-accepted business
cases
Each co-owner should assure itself
that each co-owner’s organisation
has a stable basis of internal
approval of its business case for the
project and is committed to maximum
openness about its nature and
relevant changes as they may occur.
Critical aspects of the business
cases include clear definitions of
project objectives, the role of each
co-owner, their incentives and
rewards, risk allocation, commitments
and responsibilities.

18. Co-owned Projects: Principle 5
18
Governance of
project management
organisation
2
Governance of
project management
organisation 1
Project Management of
co-owned project
Organisation 1 governance Organisation 2 governance
Governance of
co-owned
project
5. Co-owners’ legal and
governance compatibility
Each co-owner should assure itself of
the legal competence and relevant
obligations of co-owners, and that
internal governance arrangements of
co-owners and any project delivery
structure created are compatible with
standards of governance acceptable
to it.

19. Co-owned Projects: Principle 6
19
Governance of
project management
organisation
2
Governance of
project management
organisation 1
Project Management of
co-owned project
Organisation 1 governance Organisation 2 governance
Governance of
co-owned
project
6. Co-owners’ standing, culture
and capability
Each co-owner should assure itself
that co-owners’ cultures, knowledge,
capabilities and reputation are
appropriate to co-ownership of the
project and also that co-owners’
policies and practices on ethics and
sustainability are acceptable to it.

20. Co-owned Projects: Principle 7
20
Governance of
project management
organisation
2
Governance of
project management
organisation 1
Project Management of
co-owned project
Organisation 1 governance Organisation 2 governance
Governance of
co-owned
project
7. Reporting
The depth, breadth and transparency
of reporting should be fair, balanced
and suitable for the audience to
understand.
Reports should provide the
information needed for co-owners to
make decisions, report onward to
stakeholders and to trigger previously
agreed independent review and
corrective actions when they have
legitimate concerns about the
achievement of project objectives or
viability.

21. Co-owned Projects: Principle 8
21
Governance of
project management
organisation
2
Governance of
project management
organisation 1
Project Management of
co-owned project
Organisation 1 governance Organisation 2 governance
Governance of
co-owned
project
8. Assurance and transparency
Projects should incorporate
arrangements for access to
information necessary for co-owners'
internal control or audit functions, for
conformity with disclosure and
transparency obligations, for
independent assurance and also
include channels for whistleblowing.

22. Co-owned Projects: Principle 9
22
Governance of
project management
organisation
2
Governance of
project management
organisation 1
Project Management of
co-owned project
Organisation 1 governance Organisation 2 governance
Governance of
co-owned
project
9. Stakeholder relationships
There should be arrangements in
place to ensure that the execution of
projects takes account of co-owners'
shareholder and other stakeholder
relationships and to deal with
reputational risk and potential
conflicts of interest.

23. Co-owned Projects: Principle 10
23
Governance of
project management
organisation
2
Governance of
project management
organisation 1
Project Management of
co-owned project
Organisation 1 governance Organisation 2 governance
Governance of
co-owned
project
10. Trust, collaboration and value
maximisation
There should be arrangements in
place to build and maintain trust,
collaboration and collaborative
behaviour including identifying
opportunities for improving the value
of the project to co-owners.

24. Governance of Co-owned Projects:
Checklists
24
A set of questions to probe current and
planned arrangements
Categories
 Alignment and compatibility
 Reward, risk and opportunity
 Leadership and sponsorship
 Project management capability
 Disclosure and reporting
The checklists are designed to uncover
gaps and prompt action. Surveys,
workshops or interviews can be used to
explore how well the organisation or project
is set up for co-ownership.
Leadership and Sponsorship

25. Governance of Co-owned Projects:
How to use the guide
25
Organisational Governance Project Governance
What to assess Reasons why any of the principles is not accepted
– comply or explain.
Validate using a sample of co-owned projects
across the organisation.
The specific project in question only.
Identify gaps and departures from the principles.
Identify relevant key questions not satisfactorily
answered.
Scope of
assessment
The specific organisation only.
Reviewing different types of co-owned projects
experienced or likely to be considered.
Governance of the project by all the co-owners
(and potential co-owners if desired).
How to use the
results
Identify the corporate arrangements that need
enhancing based on gaps identified.
Gaps may originate from:
 exceptions and variability across the sample;
 weak/absent organisational policies,
guidance, capabilities, or behaviours.
Identify the specific arrangements for the project
that need enhancing based on gaps identified.
Gaps may originate from:
• weak/absent arrangements within the project;
• weak/absent corporate arrangements within the
co-owning organisations.

26. Governance of Co-owned Projects:
Benefits
 Helps inform when not to do a joint project
 Makes explicit downstream issues
 Certainty of decision-making process
 Robust decisions
 Timely decision-making
 Reduces admin burden (e.g. reporting)
 Stronger stakeholder relationships
 Greater visibility of threats and opportunities and how to
minimise/optimise them
26

27. Governance of Co-owned Projects:
Order it now!
27
APM members can get 10% off the price by calling +44 (0)1767 604951
Thank you. Questions?

28. APM Governance SIG
28

29. Getting Involved with GovSIG
 APM GovSIG on website
 Development events
 Conference
 Blogging
 Research
 Committee
29
To join the SIG, please register/log into the APM website and on
the Governance page click join this group.

30. This presentation was delivered
at an APM webinar
To find out more about
upcoming webinars please visit
our website
www.apm.org.uk/events