Planning Structures, Governance & Project Success PDF

Planning Structures, Governance & Project Success MSCI251: Project Management Tools & Techniques Dr Aaron Anvuur Readings Chapters 3, 4 and 5 in Harvey Maylor et al.’s Project Management Other sources cited in the lecture slides Structural Choices Why Organisations Undertake Projects St...

Planning Structures, Governance & Project Success MSCI251: Project Management Tools & Techniques Dr Aaron Anvuur Readings Chapters 3, 4 and 5 in Harvey Maylor et al.’s Project Management Other sources cited in the lecture slides Structural Choices Why Organisations Undertake Projects Strategic long-term business transformation Research and development (R&D) To develop or update products or services To improve administrative or operational efficiency To respond to changing patterns of demand BS 6079 Who Undertakes the Project? An organization might undertake a project for itself  Intra-organisational project An organisation might undertake the project for another organization as a supplier (i.e., a project firm) Inter-organisational project Who Undertakes the Project? Project-based firms – examples Construction Contractors – Vinci, Bechtel, Bouygues, China State Construction Corp., Shimizu Corp. Design Consultants – Arup, Jacobs, ARCADIS, Fluor, Atkins, Mott MacDonald Group Cost and project management consultants – Turner and Townsend, Mace, AECOM Facilities management – Infosys, Serco, Mitie, Sodexo, CBRE, Cushman & Wakefield Management consulting – KPMG, Deloitte, Accenture, PwC, McKinsey & Company, Bain, McKinsey Information technology systems – DXC Technology, IBM Global Services, Wipro New product development – IDEO, Ricardo Organisational change – Capgemini, Frazer-Nash Organisational Structures Functional structure Organisational Structures Multidivisional structure  Organisational Structures Authority relationships BS 6079 Strategic Implementation Structural Choices Project Programme A set of interrelated projects managed in a coordinated way to realise benefits Portfolio A bundle of projects and/or programmes BS 6079 Strategic Implementation Projects, programmes and portfolios are vehicles for implementing strategy APM (2020) Bok 7th ed. Strategic Implementation Strategic implementation chain Maylor et al. (2022) Lifecycle Options Lifecycle Comprises a series of distinct high-level stages required to transform a concept into reality in an orderly and efficient manner It provides a systematic framework and organised way to undertake project-work APMBoK7 Lifecycle Components BS 6079 Whole Lifecycle Extended project lifecycle BS 6079 Whole Lifecycle – APMBoK7 Linear project lifecycle APM (2020) Bok 7th ed. Whole Lifecycle – APMBoK7 Linear programme lifecycle APM (2020) Bok 7th ed. Whole Lifecycle – RIBA Plan of Work Whole Lifecycle – RIBA Plan of Work Governance Governance Systems Governance regulates methods and processes to define objectives provides means to achieve objectives and evaluate/ monitor progress The corporate governance model is shaped by the ownership model APMBoK7  Project Governance Project governance refers to the principles, policies, processes, methods and framework by which a project is directed and managed The corporate governance model influences the project governance framework Hjelmbrekke et al. (2014)  Project Governance Board – owns the strategy CEO – implements the strategy Project owner (“procuring client”) – articulates what use value (i.e., benefits) the project should deliver Project sponsor – translates use value into relevant project output value Suppliers – develop/provide products or services to maximise output value Hjelmbrekke et al. (2014)  Project Governance But value for who? There are conflicting interests of shareholders, employees, suppliers, and other stakeholders A focus on shareholder value does not necessarily maximize the value of the project Hjelmbrekke et al. (2014)  Project Governance A stakeholder governance model is required for effective project governance Requires stakeholder engagement in project definition and optimisation Separate lecture – Defining Requirements & Engaging Project Stakeholders Hjelmbrekke et al. (2014) Project Structure The procuring client could be the management board of the company, programme director/manager (for a programme) or portfolio manager (for a portfolio) The project sponsor is supported by the project assurance function The project manager is supported by a project management office (PMO) The project manager’s direct reports will be team managers or team members APMBoK7  Project Assurance Mechanisms to provide confidence to the governance board that beneficial change will be delivered Three lines of defence – controls, compliance, independent review APMBoK7 Procuring Client Ensure a supportive organisational environment Project identification, initial viability and strategic alignment Oversight of the project’s direction and management Review project outcomes, including some oversight of project outputs Project Board Monitor and measure progress Agree remedial measures Agree scope changes Oversight of compliance function Stage gate go–no/go decisions APMBoK7 Project Sponsor Ensure that the project has effective governance and delivers the intended benefits Known in the public sector as the SRO (Senior Responsible Officer) APMBoK7 Project Manager Accountable to project sponsor for day-to-day leadership and management of the project Intra-organisational project  contract of employment with the company Inter-organisational project  contract for services with the procuring client, programme director/manager or portfolio manager APMBoK7 Project Manager – Appointment Schedule of Services – Construction General Inspection, Testing & Project Concept Stage Commissioning Feasibility Training Planning Handover Design Completion Procurement Maintenance Construction Project Manager – Duties LEVEL RATING APM Competence Framework 1 AWARE Proficiency (Level 4) in: 2 PRACTISED 3 COMPETENT 1. Ethics, compliance and 8. Solutions development 4 PROFICIENT professionalism 9. Schedule management 5 EXPERT 2. Team management 10. Resource management 3. Conflict management 11. Budgeting and cost control 4. Leadership 12. Risk, opportunity and issue 5. Procurement management 6. Contract management 13. Quality management 7. Requirements management 14. Consolidated planning Project Manager – Duties LEVEL RATING APM Competence Framework (Cont’d) 1 AWARE Proficiency (Level 4) in: 2 PRACTISED 3 COMPETENT 15. Transition management 21. Reviews 4 PROFICIENT 16. Financial management 22. Change control 5 EXPERT 17. Resource capacity planning 23. Independent assurance 18. Governance arrangements 24. Business case 19. Stakeholder and communications management 25. Asset allocation 20. Frameworks and methodologies 26. Benefits management Project Manager – Duty of Care The project manager on a contract for services has an obligation to the procuring client to exercise reasonable skill, care and diligence in performing duties – Supply of Goods and Services Act 1982 And in matters relating to the exercise of professional judgement (i.e., certification), an obligation to act fairly between the procuring client and suppliers/contractors English case law – Sutcliffe v Thackrah (1974) 4 BLR 16 Project Manager – Duty of Care A project manager in a contract for services needs to have professional indemnity insurance cover for professional negligence claims RICS Insurance Services Ltd makes a distinction between “project manager” and “project coordinator/administrator” ‘Project coordinator/administrator’ – if role incumbent coordinates other consultants appointed directly by the employer (tactical role) ‘Project manager’ – if in addition to project coordination, the role incumbent appoints other consultants (strategic role) This has clear implications for professional indemnity insurance  Project Management Office On a large project, the project manager is supported by a PMO A PMO supports all project management aspects Maylor et al. (2022) Team Managers / Team Members Team Managers Accountable for work packages and deliverables assigned to them Team members The people who work on the project APMBoK7 Project Success Project Success Limited view of On time success On budget To quality Stakeholder satisfaction Project Success Broader view of success At least Project management – on time, on budget, to quality, delivered safely Output – compliance, to specification, customer satisfaction at delivery Outcome – delivers desired benefits, creates value, return on investment Others – sustainability, future preparedness, team satisfaction, etc. Project Success Broader view of success (Cont’d) New product development (NPD) metrics Measures for Product Development Success : from Journal of Product Innovation Management, (2016), Vol. 13, pp. 478–496.