Ken Martin

PMO project governance

01 PMO Governance role

PMO governance In project management, "governance" refers to the policies,
processes, standards, procedures, and guidelines that govern
how your business leads, runs and controls projects. It covers
the financial aspects of the project as well as the logistics, staff,
and materials involved. A robust project governance structure
ensures that the project is always focused on the project's
commercial goals and advantages. It's the structure under
which a project moves forward.

Well defined PM There is a well-defined project management life cycle with

lifecycle specific approval milestones. These are the points at which the
project's viability is discussed and a choice is taken about
whether or not to continue working on it.

Program project Outline the relationships between all internal and external
relationships groups involved in a project.

Communication flow Describes the proper flow of information regarding the project
to all stakeholders.

Appropriate review of Ensures the appropriate review of issues encountered within

issues each project.

Project approvals & Verifies that required approvals & direction for a project are
direction obtained at each project stage.

Governance structure This refers to the governance team structure.

Valid business case Projects have a clear business case, and business cases
contain sufficient information to allow management teams to
make the best judgments possible. Those choices are well-
documented and conveyed.

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01 PMO governance role

People The effectiveness of a governance team is part of it.

Status information The information informs decision-makers and consists of the

business case, regular reports on the project, issues and risks
that have been escalated by the Project Manager.

The governance board The sponsor provides leadership to the board, owns the
business case, keeps the project aligned with the
organization's strategy, governs project risk, focuses on the
realization of benefits, provides an assurance and provides
feedback and lessons learnt.

The project manager For the project manager, the sponsor provides timely
decisions, clarifies decision-making frameworks, clarifies
business priorities and business strategies, communicates
business issues, provides resources, engenders trust,
manages relationships, and promotes ethical working.

Project stakeholders The project sponsor engages & governs stakeholder

communications, directs client relationships, directs the
governance of users, directs governance of suppliers &
arbitrates between stakeholders.

Good governance A compelling business case.

Identification of all relevant stakeholders.

Agreed specification for project deliverables.

Mechanism to check project meets its goals.

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01 PMO governance role

Project controls

Project control Project controls are processes for gathering and

processes analysing project data to keep costs and schedules on track.
Project controls: initiating, planning, monitoring & controlling,
communicating, & closing out project costs & schedules

Functions of project
management Resource management

Time management

Scope management

Cost management

Comms management

Quality management

Key project questions What work must be accomplished?

What are the project deliverables?

Who must be involved?

What controls are to be used?

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01 PMO governance role

Project phases

Project initiation This is the start of the project. This phase defines the project &
begins with a business case

Project planning This phase focuses on developing a roadmap that everyone

will follow. This phase typically begins with setting goals.

Project execution This is the phase where deliverables are developed and
completed. Usually starts with a kick-off to assign roles.

Performance / Project progression and performance are measured and it is

monitoring aligned with the project management plan.

Project closure This phase represents the completed project. Often hold a
“post mortem” – to evaluate what went well and didn’t.

The key elements of project control

Project performance Project performance management is the process of creating,

management implementing, and managing projects that contribute to
the performance of an organization and its strategy.
Performance management is about the big picture

Project cost control Project cost control is the process of collecting

actual costs and collating them in a format to allow comparison
with other budgets. It is necessary to keep a record of
monetary expenses to minimise costs where possible &
revealing overspending.

Project time Project time management is in which a timeline is analysed

management and developed for the completion of a project or deliverable.
Activity Sequencing is the process of time management that
defines the order in which deliverables must be complex types

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01 PMO governance role

Three types of project control

Cybernetic control Cybernetic controls focus on the outputs. A project has inputs
and outputs (usually in milestones).

Go/ no-go control Go/no-go control takes the form of testing to make sure that
certain preconditions are met before a task is undertaken.

Control Post-performance controls are applied after the completion of

the project or the task. Lessons learned to help future projects.

Project control tools

Gantt Charts are used for showing the phases, tasks,

Gantt chart
milestones and resources needed as part of a project.

A logic network shows the sequence of activities in a project

over time. It shows which activity logically precedes or follows
Logic network
another activity. It can be used to identify the milestones, the
critical path of a project, the dependencies and the timescale

PERT is a method for analysing the tasks involved in

completing a given project, especially the time needed to
Pert chart
complete each task and identifying the minimum time required
to complete the total project.

A PBS is a hierarchical tree structure of components that make

Product breakdown
up a project deliverable, arranged in a whole-part relationship.
structure (PBS)
A PBS can help clarify what is to be delivered by the project

A WBS is a hierarchical decomposition of the deliverables

Work breakdown needed to complete a project. It breaks the deliverables down
structure (WBS) into manageable work packages that can be scheduled and
cost and have people assigned to them.

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01 PMO governance role

Project control life cycle

Produce a plan Produce a project plan.

Monitoring progress Monitoring progress against plan.

Actual vs. planned Comparing actual progress with the planned progress.
progress

Variations from plan Identifying variations from the plan'

Corrective action Applying corrective action if needed.

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01 PMO governance role

Program governance

A framework Program governance is the framework that ensures a program

has been correctly conceived and is being executed by best
program management practices.

Programs deliver value Effective program governance ensures programs deliver the
value expected of them. An appropriate governance framework
ensures that all expenditure is appropriate for the risks being
tackled.

Focus on leadership Focus on leadership & strategy alignment.

An enterprise vision Vision covers the entire organization.

Focus on visible risk Risk is visible from a strategic view.

The use of a ppm Programs are managed in a Project Portfolio Management

system system.

Benefits orientated Benefits orientated not orientated just to technology.

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01 PMO governance role

Program governance

Business and time Before a program starts, program governance ensures that it
alignment not only aligns with the business objective but confirms that the
program is the correct one to embark on at this time.

Deviation from goals During program execution, program governance serves as a

sounding board to ensure that the program does not deviate
from its agreed goals and objectives, limiting the risk of failure.

Strategic alignment Strategic alignment of programs with business strategy

objectives.

Risk management Risk management with appropriate measures to manage &

mitigate risks.

Resource management Resource management by utilizing available resources & skills

efficiently.

Performance Performance measuring, monitoring & reporting on program

management metrics.

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02 PMO governance questions

Enterprise level

People involved in Who should be involved in the project governance?

governance

The right projects Is the organization working on the right projects at the right
time?

Project prioritization Are all projects prioritised with organization goals?

Resource availability Are there resources and capability to accomplish the selected
projects?

Decision-makers Who needs to review and approve decisions at the enterprise

level?

Individual program and project level

Reasons for project Why is the project being undertaken?

Strategic goals Is the project aligned & prioritised with organizational goals?

Valid business case Is there a clear business case for a project?

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02 PMO governance questions

Individual project level

Funding available Who is funding the project & is the budget sufficient?

Clear outcomes and Is there a clear outcome and benefits of the project?
benefits

Deliverables with Are the deliverables clearly defined and agreed upon with clear
ownership roles, responsibilities & accountability?

Defined acceptance Are our success and acceptance criteria agreed upon and
criteria documented?

Active sponsorship Has the project been an active senior management sponsor?

A realistic budget and Is the project based on a realistic budget and schedule?
schedule

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02 PMO governance questions

Individual project level

Risk management Are project risks identified, understood and documented?

Skilled resources are Have resources with the right skills been identified & available?
available

Change impacts Have the potential change impacts on people, processes and
identified systems identified, agreed and documented?

Assumptions and Have all assumptions and dependencies been identified and
dependencies documented?

Success criteria defined What criteria will be used to determine project success?

Known barriers or Are there any obstacles or barriers that would prevent the
obstacles project from being successful?

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03 PMO governance process

The right governance Identify a governance model appropriate for the organization
that is required for project governance based on the project's
scope, timeline, complexity, risk and stakeholders.

Roles & responsibilities A PM needs to define who is accountable, but also who is
responsible, consulted and informed for each of the project's
deliverables.

All the stakeholders As part of establishing governance, plan to identify all the
stakeholders. Missing out on a key stakeholder can lead to
project failure.

Stakeholder comms An effective communication plan will deliver concise and timely
information to all pertinent stakeholders in a medium and
method suited best to their needs.

Risk management At the start of any project, there needs to be alignment on how
to identify, classify and prioritize the risks and issues that will
occur during the project execution.

Project assurance A key part of assurance is having metrics that give visibility to
project performance (adherence to the business case;
effectiveness of the change control and risk analysis process;
the ability to monitor deviations in project scope, time, cost and
schedule; and tracking accuracy of the project plan.

Project control process The monitoring and controlling process have a view of all
metrics associated with the project & measures performance
against scope, budget, time, and resources.

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04 PMO governance challenges

The right governance A PMO's job isn't easy when it comes to choosing the correct
framework project governance model. As part of the PMO Charter
document, the PMO should offer a governance model that
includes a baseline of important project governance features.
They should get senior leaders and stakeholders on board with
their project governance proposal. Overly bureaucratic and
controlling governance models can irritate stakeholders and
reinforce the perception that a PMO is overly bureaucratic and
controlled, while a lack of project governance can result in
project failures and stakeholder shock!

Governance roles A key factor for good project governance is defining

accountability and responsibilities. The effectiveness of
governance meetings, the change control process, risk
assessment, and the communication plan will all suffer if
accountability and responsibilities are not defined. A PMO
must identify not just who should attend and be accountable,
but also who is responsible, consulted, and informed about any
governance decisions ( accountability and obligations)

Stakeholder When planning governance meetings to assess specific

engagement programs and projects, keep the following in mind. The first
step is to make a list of all the people that are involved. This
may appear to be a difficult and inane task, yet it is crucial. If
one stakeholder is left out, the project will be derailed and will
have a negative impact.

Governance comms Once all stakeholders have been identified and their interests
and expectations have been stated, the governance
communication plan must be developed. A well-thought-out
communication strategy communicates concerns, risks,
required actions, and choices to all relevant stakeholders in a
succinct, efficient, and timely manner.

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05 PMO governance benefits

A single point of There is a single point of accountability for the success of the
accountability program or project.

Independent project Program or project ownership is independent of a specific

oversight stakeholder group.

Distinct decision- There is a separation of stakeholder management from

making program and project decision-making activities.

Separate governance Program and project governance and organizational

structures governance are separate structures.

Governance alignment There are formally agreed governance arrangements for

programs and projects.

Unambiguous authority There is a single point of decision making for programs and
projects with an unambiguous allocation of authority for
representing the project in contact with stakeholders and third
parties.

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05 PMO governance benefits

Business cases The business case includes agreed definitions of project

objectives that are regularly reviewed during the project.

Roles & responsibilities Project roles, responsibilities and authority are clearly defined.

Change request process There is a formal process for change requests and issues
escalation.

Project reporting Project reporting provides honest, timely, realistic and relevant
data on progress, achievements, forecasts & project risks

Dispute process A dispute resolution process agreed upon between owners

that does not endanger the achievement of project objectives.

Strategic goals Change initiatives address and achieve strategic objectives.

Business value Business value is realised earlier.

Risks managed Risks retired or managed.

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06 PMO governance risks

Business case There is not a compelling business case, stating the objects of
the project and specifying the in-scope and out-of-scope
aspects. The project business case should include agreed, and
current, definitions of project objectives

Governance mechanism There is not a governance mechanism to assess the

compliance of the completed project to its original objectives.

Stakeholders All stakeholders are not identified with an interest in the

project.

Communications plan There is not a defined & agreed method of communication to

meet the needs of each stakeholder.

Deliverables There is not an agreed specification for the project

deliverables.

A project manager An experienced program manager has been not been

appointed. A project without a clear understanding of who
assumes accountability for its success has no clear leadership.
With no clear accountability for project success, no one person
is driving the solution to the difficult issues that beset all
projects at some point in their life.

Clear roles There is not a clear assignment of project roles

and responsibilities.

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06 PMO governance risks

Project plan There is not a current program or project plan that spans all
stages from initiation through development to the transition to
operations.

Status reporting There is no system of accurate upward status progress

reporting including time records.

Document repository There is not a central document repository in place for

projects.

Issue process There is not an agreed process for the management and
resolution of issues that arise during the project.

Risk resolution process There is not an agreed process for the recording and
communication of risks identified during the project.

Quality review process There is no standard process for a quality review defined for
project deliverables.

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07 PMO governance best practices

Business case A compelling business case, stating the goals of the program
(scope & out of scope).

Compliance method A mechanism to assess the compliance of completing the

program to its original objectives.

Quality review A standard for quality review of the key governance documents
&program deliverables.

Stakeholder A defined method of communication to each stakeholder.

communications

Business level A set of business-level requirements as agreed by all

requirements stakeholders.

Risk management A process for the recording and communication of risks

process identified during the program.

Issue management A process for the management and resolution of issues that
process arise during the program.

Program roles & Clear assignment of program roles and responsibilities.

responsibilities

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07 PMO governance best practices

Program plan A current, published program plan that spans all project stages
from project initiation through development to the transition to
operations.

Status & progress A system of accurate upward status- and progress reporting
reporting including time records.

Central document A central document repository for the program.

repository

Stakeholder Identifying all stakeholders in the program.

identification

Program manager The appointment of a program manager.

Program deliverables An agreed specification for the deliverables.

Program terms glossary A centrally-held glossary of program terms.

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08 PMO governance activities

The governance The purpose of project governance is to establish a logical,

framework robust, and repeatable decision-making framework for an
organization's capital investments. An organization will be able
to take an organised approach to its business, as usual, its
business change, and its project activities.

This is the structure of the governance committee. All of these

governance's rights, as well as how they interact with one
another must be documented in policy and procedure
documents

Governance team The effectiveness of a project governance structure is

members dependent upon the people that attend it. The attendees can
include on an ad-hoc basis: senior leaders, project sponsors,
and business stakeholders. other functional management and
selected project team members.

Governance comms Regular project reports, issues and risks escalated by the
plan Project Manager, and certain critical documents that outline the
project, the most important of which is the business case, are
among the material that informs decision-makers

Governance schedule Develop an ongoing schedule to be sent before the

governance meeting with a list of attendees and the name of
the programs and projects to be discussed and also any
outstanding actions from the previous meeting. It is a good
practice to include the list of guiding principles on every invite
as it reinforces roles and responsibilities around meetings.

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Ken Martin

1
 Ken Martin

Contents

Copyright

Dedication

Contents

Preface

Introduction

01 PMO project governance

02 Project Portfolio Management

03 Program management tools

04 Enterprise IT governance

About the author

Acknowledgements

3 Magic Publications

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 PMO GOVERNANCE

About the author

Ken Martin

After an extensive successful career After an extensive successful career

working for some of the best organisations working for some of the best organisations
in the world in various countries, I was in the world in various countries, I was
disheartened to see how many times disheartened to see how many times
programs and projects failed from not programs and projects failed from not
paying heed to lessons learned and best paying heed to lessons learned and best
practices. Even today, how many current practices. Even today, how many current
programs are being executed without programs are being executed without proper
proper assessment, planning or assessment, planning or organisational
organisational change management. change management.

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 PMO GOVERNANCE

3 Magic Publications
After an extensive successful career Other Publications on Amazon
working for some of the best organisations
OPM best practices handbooks
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