ESTABLISHING APPROPRIATE GOVERNANCE STRUCTURES

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Questions and Answers

What is primarily defined in the terms of reference concerning project authority?

Team performance

Vested authority (correct)

Stakeholder engagement

Budget allocation

Which of the following is NOT part of the project manager's role in defining operating principles?

Confidentiality guidelines

Team selection (correct)

Agenda setting

Frequency of meetings

What is essential for effective communication and status reporting in organizations?

Regular social events

Client feedback mechanisms

Common source of management information (correct)

Individual performance reviews

Which of the following is a potential early warning sign of issues in risk management?

Frequent changes Signup and view all the answers

What aspect of meetings is directly influenced by the operating principles set by the project manager?

Location of meetings Signup and view all the answers

Which of the following is a standardized key performance indicator (KPI) that should be defined for effective management?

Cost performance index Signup and view all the answers

What should organizations implement to align with project and corporate goals?

Appropriate reporting templates Signup and view all the answers

An increase in safety incidents, such as serious injuries, is an indicator of what in risk management?

Early warning signs Signup and view all the answers

What is the primary purpose of establishing roles and responsibilities in a project?

To eliminate ambiguity about what is required and when Signup and view all the answers

What does a RACI matrix help to establish?

Roles and responsibilities Signup and view all the answers

Which categories do project stakeholders typically fall into?

Internal and external stakeholders Signup and view all the answers

Who are included in the internal stakeholders of a project?

Project team members and top management Signup and view all the answers

What is a key factor in the project governance structure?

Striking the correct balance between meetings and forums Signup and view all the answers

What is the role of the terms of reference (ToR) in decision bodies?

To outline the expected outcomes and guidelines Signup and view all the answers

Which of the following is NOT a type of decision body mentioned for project success?

Feedback sessions Signup and view all the answers

What crucial first step should be taken for stakeholder engagement?

Identify key project stakeholders and appoint a manager Signup and view all the answers

What role does Monisha Klarewell hold in her company?

CEO Signup and view all the answers

Which group is directly related to project governance strategies?

Community stakeholder group Signup and view all the answers

What is one of the key topics discussed in the governance structure?

Principles of effective project governance Signup and view all the answers

Which aspect is essential for establishing an effective project governance structure?

Communication channels Signup and view all the answers

Where is Klarewell Development located?

On all six inhabited continents Signup and view all the answers

What is the primary focus of the project board mentioned?

Financial sustainability Signup and view all the answers

Which of these is a benefit of effective project governance?

Enhanced stakeholder engagement Signup and view all the answers

What does project governance best practices help to achieve?

Structured decision-making Signup and view all the answers

What is a primary characteristic of good project governance?

Visibility into project performance Signup and view all the answers

Which aspect of project governance helps to define what successful project delivery looks like?

Clear project definition Signup and view all the answers

What can result from the lack of a proper project governance structure?

Challenges in project oversight Signup and view all the answers

What is Helmut Schmidt's primary focus as a track designer?

Track design exclusively Signup and view all the answers

What kind of management style is Ernie Becklesten known for?

Arrogant and micromanaging Signup and view all the answers

Which of the following is NOT considered a benefit of effective project governance?

Greater project delays Signup and view all the answers

Which group is NOT part of the Project Board mentioned?

Marketing committee Signup and view all the answers

What role does internal accountability have in project governance?

It ensures achievement of project goals. Signup and view all the answers

Which of the following is a common pitfall if project governance is poorly executed?

Ineffective communication processes Signup and view all the answers

Which phrase best describes Ernie Becklesten's contribution to WOW?

He transformed WOW into a premier racing organization Signup and view all the answers

In the context of the project, which group is associated with procurement?

Procurement board Signup and view all the answers

What is essential for retaining agility in project governance?

Clear project focus Signup and view all the answers

What is the primary role of the regulatory authority within the project?

Ensuring compliance with laws and regulations Signup and view all the answers

What characteristic helps ensure accountability within a project?

Single point of accountability Signup and view all the answers

What percentage of respondents felt that investment in controls and governance had reduced costs?

74% Signup and view all the answers

What characteristic does NOT describe the governance structure mentioned?

Is entirely independent of government oversight Signup and view all the answers

What is a key benefit of having a single point of accountability in project governance?

Streamlined decision-making Signup and view all the answers

What key competency does Helmut Schmidt bring to the project?

Track design expertise Signup and view all the answers

How does effective risk management contribute to project governance?

By avoiding stakeholder conflict Signup and view all the answers

What role do management information and key performance indicators play in project governance?

They enable instant reporting to stakeholders Signup and view all the answers

What is a critical aspect of project governance regarding information access?

Information must be accurate and timely Signup and view all the answers

Which of the following is NOT a benefit of an effective project governance structure?

Reduced project timelines Signup and view all the answers

What is the outcome of having all communication from a single source in project governance?

Efficient information flow Signup and view all the answers

Why is project governance considered time-sensitive?

It requires timely access to information Signup and view all the answers

Study Notes

Construction Project Communications - Establishing Appropriate Governance Structures

This presentation is about establishing appropriate governance structures for construction projects.
A good project governance framework includes a project structure with a project board and support decision bodies.
All key stakeholders should be identified and structures set up to manage them effectively.
Decision authorization should be allocated to roles and clearly communicated.
Project management information systems (PMIS) should be used to provide timely and accurate information.
A weak governance framework can create problems for project delivery.
Project governance is about aligning different objectives to ensure successful project delivery.
Governance can help mitigate conflict and realize mutual gains.
Survey results suggest a strong correlation between investment in controls and governance and reduced costs.
An effective project governance structure creates a single point of accountability.
It improves risk management and enables project managers to monitor risks, identify potential problems, and create mitigation plans.
It also leads to defined roles, avoiding conflicts and delays.
Transparency in communication with clear information and key performance indicators (KPI) can be vital.
Effective project governance is time and stakeholder sensitive, meaning accurate information delivery to the right people is critical.

Guiding Principles of Project Governance

Establish clear accountability for project outcomes.
Identify key project stakeholders.
Implement appropriate systems and processes.
Implement a monitoring and reporting schedule.
Establish an effective project governance structure.

Establishing Clear Accountability for Project Outcomes

The project board's role is to identify clear project outcomes and key roles and accountabilities.
Accountabilities are determined by contractual obligations.
Project managers should assemble the team and delegate project deliverables.

Identify Key Project Stakeholders

Identifying key stakeholders is vital at the beginning of the project.
Avoid having too many stakeholders.
Clearly define roles and responsibilities for all stakeholders.

Implement Appropriate Systems and Processes

Ensure project management, accounting/financial, information management and reporting systems are in place.

Implement a Monitoring and Reporting Schedule

Regular monitoring and reporting mechanisms are crucial from the start of the project.
This helps identify potential risks or difficulties before they become issues.

Establish an Effective Project Governance Structure

Focus on the successful delivery of projects.
Project governance should support the ability to remain agile.

Characteristics of Good Project Governance

Clear project definition, including cost and schedule estimates, and project scope.
Visibility into project performance at each stage of the project life cycle.
Internal accountability for achievement of project goals.
Effective contracting strategies.
Rigorous communication and reporting.

Three Sets of Attributes for Project Governance

Benefits (advantages).
Guiding principles (important ideas).
Characteristics (features).

Benefit, Guiding Principle, or Characteristic? (Examples of diagrams, showing relationships between benefits, principles, and characteristics.)

Components of a Project Governance Structure

There are components to be considered in setting up a project governance structure.
Project governance framework.
Roles and responsibilities.
Stakeholder engagement.
Meetings or forums.
Communication and reporting.
Risk and issue management.
Assurance.
Project management control process.

Project Governance Framework Examples (Structures)

There are various project board and team examples.

Roles and Responsibilities

Defining roles and responsibilities ensures clarity.
Use a RACI matrix to define roles and responsibilities (Responsibility, Accountable, Consulted, Informed).

Stakeholder Engagement

Identifying project stakeholders is crucial.
Include internal and external stakeholders, like top management, teammates, resources, customers, government, contractors.
A team member should be designated to actively manage stakeholder engagement.

Meetings and Decision Bodies

Striking a good balance between meetings and forums is necessary.
Typical project examples include the quarterly board, subcommittees, executive management, project governance board, steering committees, project teams.
Each decision body needs Terms of Reference(ToR) which defines purpose and intent, vested authority, member roles and responsibilities, operating principles.

Operating Principles

Frequency of meetings, Scheduling of meetings, Location of meetings. -Agenda for meetings, Confidentiality of meetings.

Communication and Reporting

Organizations need a common source of management information (MI).
Standardized key performance indicators (KPIs) are essential.
Use templates that align with project and corporate goals.

Risk and Issue Management

Early identification of warning signs is crucial.
Early responses to warnings and issues is critical.
Typical concerns include frequent changes, incomplete documents, budget/timeline requests, procurement delays, contractor responses.

Assurance

Project assurance ensures accountability.
Ensuring processes and procedures are being followed.
Provides early warning of potential issues or risks, as well as recommendations for solutions.

Project Management Control Process

Effective project governance involves using information systems.
Use PMIS (Project Management Information Systems) to monitor, report, and forecast deviations from the project plan.

Project Governance Outcomes

Time and Stakeholder sensitivity.
Project owners who implement tailored governance practices are more likely to meet their cost, schedule, and performance/quality goals.

Who Does Who Belong?

This slide shows specific individuals’ places within the structure described. (Different individuals fit into different roles, depending on responsibilities.)

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Description

This quiz focuses on the essential governance structures necessary for successful construction project management. Participants will explore the roles of project boards, stakeholder management, and the use of project management information systems for effective communication and decision-making. Learn how a strong governance framework can lead to successful project delivery and reduced costs.