Skip to main content
main-content

Über dieses Buch

This book argues that the appropriate application of the principles and practices of corporate governance to organisational portfolio, program, and projects (‘3P’) governance brings about highly engaged, knowledgeable, and effective governance practices, which in turn substantially improves business case success. The book addresses all three layers of portfolio, program, and project within an integrated governance framework, and it answers the fundamental questions everyone involved in 3P governance must address: • What governance structures (processes, functions, roles, responsibilities) need to be in place to ensure optimal portfolio investment outcomes?• How do I know our portfolios, as structured, will deliver expected benefits and value?• What should senior management be doing, acting in their portfolio governance roles, to deliver great portfolio outcomes? The book introduces and describes a number of important frameworks and models, designed not just for their practical application, but also to be easily comprehended by senior executives not comfortable with traditional ‘project speak’.

Inhaltsverzeichnis

Frontmatter

Why Portfolios and Governance Matter

Frontmatter

Chapter 1. It’s Time to Change the Project Model

Abstract
“The problem”, said the CFO of a large financial services organisation, “is that we’re spending a billion dollars a year on projects and I don’t know if we’re getting value for money”. This was something I had heard many times before. He continued, “and I’m not even sure we’re spending it on the right projects”.
Michael Knapp

Chapter 2. Portfolios and Governance

Abstract
In Chap. 1 I discussed why the current project model is broken, and that the over-emphasis on projects and project management is not helping deliver great outcomes for organisations. In this chapter we’ll look at portfolios and governance and, portfolio governance, with a focus on the its importance and role in assuring investment success.
Michael Knapp

Chapter 3. Governance and Organisation Project Maturity

Abstract
In my early days as a project management consultant I sat with a General Manager in Telstra explaining how a project management improvement program I was proposing would pull together a range of management methodologies across projects and programs, execution and quality. I was walking him through an A3-size model showing lines with lots of boxes, icons, stick figures and interfaces to external systems. Having looked at the model for a while the senior manager said “Michael, I just don’t think we have the maturity to implement this.” I realised two things immediately: don’t confuse your audience with diagrams that are way too complex and defy comprehension, and understand the capability of the organisation and how far they are prepared to move to achieve well understood outcomes. It also had me thinking about what ‘maturity’ means for an organisation.
Michael Knapp

Chapter 4. What We Can Learn from Corporate Governance

Abstract
Portfolio, program and project (3P) Governance is an immature field of study, with fewer than 200 published research papers and the majority of these focused on project governance. Theory development is equally immature with available standards (such as published by the PMI) being called ‘practice guides’, which is useful enough, although the theories grounding such practices are either ‘thin’ or simply non-existent.
Michael Knapp

Chapter 5. Governance Behaviours

Abstract
Governance was discussed in Chap. 2 in understanding portfolio governance, and in Chap. 3 as part of understanding project management maturity and in Chap. 4 corporate governance was analysed to see what lessons can be gathered which are pertinent to portfolio, program and project (3P) governance. In this chapter we will look in detail at what good governance practice looks like, and the implications for portfolio success.
Michael Knapp

Chapter 6. Portfolios, Innovation and Value Creation

Abstract
The principal reason organisations run portfolios is to better manage strategy formulation and realisation, so as to optimise value creation and capture. Critically, an organisation’s ability to both survive and thrive is through value creation which is fundamentally dependent on innovation.
Michael Knapp

3P Governance Frameworks

Frontmatter

Chapter 7. A Framework for Integrating Portfolios, Programs and Projects: The ‘3P Cube’

Abstract
A very useful way to view and understand portfolios, programs and projects (3P) and the difference between governance and management is through a multi-dimensional model termed the ‘3P Cube’.
Michael Knapp

Chapter 8. Enterprise Portfolio Governance Framework

Abstract
The Enterprise Portfolio contains all the initiatives an organisation needs to run to achieve its strategic and business goals. As we have already seen portfolios contain programs and projects, and no program or project an organisation executes should sit outside a portfolio.
Michael Knapp

Chapter 9. Divisional Portfolio Governance Framework

Abstract
Divisional Portfolios contain all the initiatives a division needs to run to achieve its technology and business goals. Much of the approach to Enterprise Portfolio governance applies equally to Divisional Portfolio governance. In theory at least, portfolios contain all the programs and projects running within the division, and no program or project a division executes sits outside a portfolio.
Michael Knapp

Chapter 10. Program Governance Framework

Abstract
Programs are increasingly seen as the vehicle for delivery of strategic goals. But they are more than that. As organisations move away from running stand-alone projects, and set their business cases at the program level, then programs become the standard model for creating value and delivering change. It will also be the level at which organisations run most of their steering committees, and so it is the level at which most people carrying out a governance role will gather.
Michael Knapp

Chapter 11. Project Governance Framework

Abstract
Undoubtedly, project governance is the most understood of all of the 3P Governance, but that doesn’t mean it is well done or effectively carried out. The majority of organisations run projects with a Project Sponsor and Steering Committees set up and operating. Even though such arrangements are common place, it is an unhappy fact that people taking on project governance roles are largely ignorant of the accountabilities and processes associated with such roles.
Michael Knapp

Implementing Good Governance Practices

Frontmatter

Chapter 12. Designing a Governance Improvement Program

Abstract
I opened my book with a conversation I was having with a CFO of a major Australian bank. I asked him then if he knew what his project success rates were:
  • CFO – No
  • Me – I’ve been working with your PMO and they’re a little over 70%
  • CFO – What do you mean?
  • Me – Well, comparing the final cost and schedule performance against what was approved, about 70% of your projects are considered satisfactory
  • CFO – What about benefits? How are we doing?
  • Me – We don’t know; not enough divisions are tracking realised benefits
  • CFO – OK, clearly this isn’t good enough. What do we need to do?
  • Me – You need to change your practices
  • CFO – You mean, get better at managing our projects? We spend a small fortune on training and tools, why isn’t that working?
  • Me – No, when I said ‘you’, I meant you and your peers. Those taking on a governance role need to change what you’re doing.
Michael Knapp

Chapter 13. Implementing Enterprise Portfolio Services

Abstract
There’s more than a little confusion around the terms for the various offices supporting portfolios, programs and projects. Historically, the Project Office has been supporting projects for over 70 years (at least) with project offices being part of very large defence projects in UK, Europe and the US following World War 2. Their role was to support planning, resource management, project logistics, undertake quality management and reporting and to apply appropriate controls in supporting key, senior managers on the project. As organisation projects grew large and major organisation change and IT initiatives were run as programs, we saw the rise of the Program Management Office (PMO). In the late 1980s and early 1990s the PMO took on a whole-of-organisation role with oversight of all programs and projects running, and that model has lasted until this day with the whole-of-organisation PMO termed the Corporate or Enterprise PMO (‘EPMO’). We are now seeing the emergence of a group which has oversight of portfolios, and with that changing role comes a new name, the Enterprise Portfolio Services group (with the ‘office’ label being dropped).
Michael Knapp

Chapter 14. Appendices

Abstract
This section looks at the results of research and analysis in arriving at a model used to both define and measure project success.
Michael Knapp

Backmatter

Weitere Informationen

Premium Partner

    Bildnachweise