why organizations must implement project governance framework

14
A World Without Failed Projects TM Organizations whose growth and success is driven by investing in or delivering projects, regardless of the project type, size or nature, are required more than ever to adopt governance practices W ith the numerous corporate and gov- ernment collapses and fraud cases, governance has become a requirement for establishing effective accountability and trans- parency when it comes to on how to run business and managing the funds that need to be spent. Many countries have already issued governance, transparency and accountability acts to enforce the private as well as the government sectors to imple- ment procedures and practices to ensure effective governance compliance. e USA Sarbanes-Oxley Act (SOX) and UK Companies Act 2004 are just few examples of such legislations which were issued to protect investors by placing controls to inhibit and deter financial misconduct and ensure trans- parency on how project funds are being spent as well as if promised benefits were attained. e United Arab Emirates (UAE) is no dif- ferent. In November 2011, a decree was issued to strengthen transparency and corporate governance in the UAE. e decree, issued by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, tightens the regulation and con- stitution of boards of directors of profit and non- profit institutions as well as corporations owned by the UAE federal government. is follows the July 2011 decree that assigned the UAE Audit Bureau besides its financial supervision task, the fighting of corruption in the entities under its control to en- sure proper management and use of public funds. Nevertheless, the issue with most of the gover- nance acts is that they have mainly focused on im- plementing the processes and controls on routine corporate operations or business as usual but did not address how this would apply on non-routine operations or business change. Projects, which are by definition, unique endeavors that require in- vestment to deliver future benefits and results are examples of what can be viewed as a non-routine operations or business change. Organizations whose growth and success is driven by investing in or delivering projects, regard- less of the project type, size or nature, are required more than ever to adopt governance practices when it comes to managing their projects. Projects can include engineering and construction of buildings, infrastructure, plants, refineries and other type of capital asset projects. Projects also include develop- ing IT applications, services and products as well as conducting events, conferences, producing a movie or carrying out a marketing campaign. In addition, projects include business acquisition and merger as well as launching new companies. Virtually, one can say that any investment in a non-routine opera- tion can be considered as an investment in project. Actually, an organization initiative to create and develop project governance is a project by itself. Projects are the methods and means or the ve- hicles that an organization will use to achieve their strategic goals and ultimately their desired vision (see Figure 1). Projects are the investments that those organizations have selected and authorized to provide the desired tangible or intangible benefit when they are completed. Although for many proj- ects, benefits need to quantified in terms of return By Bassam Samman PMP, PSP, EVP CMCS CEO and Founder Why must your organization implement project governance today? Published in Collaborate Issue 37 -38 GOVERNANCE Staff responsibilities ethics anti-fraud B o a r d roles committees values team Best Practices Mission Vision PHOTO CREDIT: Keattikorn

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Page 1: Why Organizations Must Implement Project Governance Framework

A World Without Failed Projects

TM

Organizations

whose growth

and success

is driven by

investing in

or delivering

projects,

regardless of

the project

type, size

or nature,

are required

more than

ever to adopt

governance

practices

With the numerous corporate and gov-ernment collapses and fraud cases, governance has become a requirement

for establishing effective accountability and trans-parency when it comes to on how to run business and managing the funds that need to be spent.

Many countries have already issued governance, transparency and accountability acts to enforce the private as well as the government sectors to imple-ment procedures and practices to ensure effective governance compliance. The USA Sarbanes-Oxley Act (SOX) and UK Companies Act 2004 are just few examples of such legislations which were issued to protect investors by placing controls to inhibit and deter financial misconduct and ensure trans-parency on how project funds are being spent as well as if promised benefits were attained.

The United Arab Emirates (UAE) is no dif-ferent. In November 2011, a decree was issued to strengthen transparency and corporate governance in the UAE. The decree, issued by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, tightens the regulation and con-stitution of boards of directors of profit and non-profit institutions as well as corporations owned by the UAE federal government. This follows the July 2011 decree that assigned the UAE Audit Bureau besides its financial supervision task, the fighting of corruption in the entities under its control to en-sure proper management and use of public funds.

Nevertheless, the issue with most of the gover-nance acts is that they have mainly focused on im-

plementing the processes and controls on routine corporate operations or business as usual but did not address how this would apply on non-routine operations or business change. Projects, which are by definition, unique endeavors that require in-vestment to deliver future benefits and results are examples of what can be viewed as a non-routine operations or business change.

Organizations whose growth and success is driven by investing in or delivering projects, regard-less of the project type, size or nature, are required more than ever to adopt governance practices when it comes to managing their projects. Projects can include engineering and construction of buildings, infrastructure, plants, refineries and other type of capital asset projects. Projects also include develop-ing IT applications, services and products as well as conducting events, conferences, producing a movie or carrying out a marketing campaign. In addition, projects include business acquisition and merger as well as launching new companies. Virtually, one can say that any investment in a non-routine opera-tion can be considered as an investment in project. Actually, an organization initiative to create and develop project governance is a project by itself.

Projects are the methods and means or the ve-hicles that an organization will use to achieve their strategic goals and ultimately their desired vision (see Figure 1). Projects are the investments that those organizations have selected and authorized to provide the desired tangible or intangible benefit when they are completed. Although for many proj-ects, benefits need to quantified in terms of return

By Bassam Samman PMP, PSP, EVP

CMCS CEO and Founder

Why must your organization implement project governance today?

Published in Collaborate Issue 37 -38

GOVERNANCEStaff r e s p o n s i b i l i t i e s

ethi

cs

an

t i- f

r au

d

B o a r droles

committees

valuesteam

B e s t P r a c t i c e sMission

Vi s

i on

PHOTO CREDIT: Keattikorn

Page 2: Why Organizations Must Implement Project Governance Framework

on investment or net present value, nevertheless, project benefits can also include complying with a new legislation, reducing CO2 emission, creating new jobs for locals, improving the image of the organization, improving the organization brand awareness, reducing power and water consump-tion, reducing fatal car accidents, reducing pov-erty, reducing unemployment, reducing traffic jam and travel time, providing better service to the public among many others.

Project failure is analogous to an investment failure where an organization loss is not only lim-ited to the loss of the invested funds but the lost opportunity of having other much needed ben-efits if those funds were invested in another proj-ect. An organization that is faced with continuous project failure, this or-ganization business continuity for sure would become at stake.

A l t h o u g h many can argue on what will determine if a project was a suc-

cess or a failure, nevertheless, very few could argue that for a project to be successful, the project must deliver the outcomes and benefits required by the project owner, create the project deliverables that were defined in the project scope, meeting the proj-ect milestone dates and stay within the approved project budget. The causes of failing to achieve those objectives can be attributed to many reasons including the lack of strategic alignment, lack of senior management support, lack of customer in-volvement, absence of effective engagement with stakeholders, ineffective usage of project and risk management practices, scope changes, ineffective project delivery team among others.

Regretfully to say, that sometimes projects are

Published in Collaborate Issue 37 -38 2

StrategyStrategy

Strategy

Where We Want to Be

Where are the Desired Outcomes

Methods to Achieve

Them

Results that We Need

Actions We will Take

Strategy

Goal

Corporate and OrganizationGovernance

Activities

Project Governance

Project Management

Activities

Figure 1: Projects are the means to achieve strategic goals

Vision

Goal

Strategy

Strategy

Strategy

Objective

Objective

Objective

Objective

Project

Project

Project

Project

Figure 2: Project governance

Page 3: Why Organizations Must Implement Project Governance Framework

born dead. Many of us know that at the very early stages of the project life cycle and during the busi-ness case development there are projects for which their objectives are based on “To Please” results rather than rational results that are based most likely scenarios. Projects need to take into consid-eration the impact of different threats as well as op-portunities that could face a project and how to address them. Those projects that tend to mislead the decision maker by misrepresenting the realistic benefits, tangible or intangible, called by some as “Political Projects” should have been filtered out and not authorized to proceed for implementation.

Projects have their own particulars which re-quire having their own governance framework that need to be aligned with the corporate governance

Implementing project governance requires the organization to implement a number of actions that will provide a decision making framework that is logical, robust and repeatable

framework (see Figure 2). Similar to corporate governance, project governance should address the areas that relate to roles and responsibilities, accountability, disclosure and transparency, risk management and control, decision making, ethics, performance and effectiveness and implementa-tion of strategy. Most of those areas of governance need to be coordinated with the corporate gover-nance. For example, the project risk management policy needs to be coordinated and aligned with the corporate enterprise risk management policy. The same will apply to the corporate human re-sources and ethics policies.

For years, professional project management practices and standards have addressed the re-quired areas of governance although they were not positioned specifically to come with complete and enforceable project governance. Organizations who believed that there is a must requirement for implementing project governance have imple-mented those practices and enforced their project

delivery teams to comply with project’s stan-dard operating procedures (SOP). Many

of those organizations implement formal audit and compliance review to ensure that their project investments are im-plementing those practices in full and not selectively.

Implementing project governance requires the organization to implement

a number of actions that will provide a decision making framework that is logical,

robust and repeatable to govern an organi-zation’s projects investment and delivery (see

Figure 3). The implemented project governance should map, explore and document the relation-

Published in Collaborate Issue 37 -38 3

DetermineWhat Project Governance

is Needed

Setup and roll out of Project Management Office (PMO)

Project GovernanceProcedures

Project Management

Knowledge

Enterprise Project

Management Information

System

Project Governance

Figure 3: Actions to set project governance framework

Page 4: Why Organizations Must Implement Project Governance Framework

ships between all internal and external groups in-volved in the project. The Project Execution Plan (PEP) will describe the proper flow of information regarding the project to all stakeholders, ensure the appropriate review of issues encountered within each project and ensure that required approvals and direction for the project is obtained at each appro-priate stage of the project. In general, the project governance actions need to be aligned with the best practices of corporate governance.

There are five recommended actions that an organization must undertake if they are keen on implementing a project governance framework (see Figure 4). Those include determine what project governance the organization needs, implementing project governance procedures, building project management knowledge, implement Enterprise Project Management Information System and setup and roll out of Project Management Office (PMO).

Action 1: Determine What Project Governance the

Organization Needs

In general, one would expect that most proj-ect centric organizations are already adopting some

kind of project governance practices that could be formally documented or not. Nevertheless, the majority of those organizations would hardly be able to assess how effective those practices and how comprehensive they are when it comes for a hav-ing a project governance framework. Therefore, it is highly recommended that before an organization embark into implementing project governance, is to do an assessment of their current practices on how they manage their projects, authorities delega-tion and accountability, performance and status re-porting and risk management. This assessment will help them to determine their areas of strength as well as weakness. It will also help them to identify the performance improvement that they need to adopt to rectify those weaknesses so they can have an effective project governance framework. This as-sessment will give the organization an objective as-sessment of the opportunities as well as the threats that they would eventually encounter if they do not do anything about the project management perfor-mance improvements that they need to undertake. This assessment will enable the organization to do their project governance SWOT analysis.

The Project Management Institute (PMI) Or-

Published in Collaborate Issue 37 -38 4

Project management training should not be even limited to those who are directly involved with project delivery but should extend to cover all those stakeholders who will be involved the project governance

Action 1

Assess and Identify Needed Improvement

To Acheive Project Governance

Action 2

Develop SOP that will ensure Project

Governance

Action 3

Train and Develop the Resources Who Will Implement Project

Governance

Action 4

Implement an EPMIS that will Enforce

Project Governance and Transparency

Action 5

Create PMO to ensure that Project Governance

is Implemented Correctly and Efficiently

Figure 4: Project Governance Implemantation Phases

Page 5: Why Organizations Must Implement Project Governance Framework

ganizational Project Management Maturity Model (OPM3) is a global standard developed to provide a way for organizations to better understand their project management capabilities and to measure their maturity, or stage of process development, against globally recognized best practices (see Fig-ure 5). OPM3 focuses on an organization’s project management knowledge, assessment and improve-ment. OPM3 will compare an organization’s cur-rent project, program and project portfolio man-agement practices to more than 4,500 documented best practices, capabilities and outcomes.

The OPM3 project portfolio management as-sessment will help the organization to assess their current practices as it relate to what extent is the organization doing the right projects while the pro-gram and project management assessment will as-sess the organization practices as it relate to what extent is the organization doing projects the right way (see Figure 6).

Published in Collaborate Issue 37 -38 5

Assessment Report

How Our Current Practices Are Evaluated Against Best Project,

Program and Portfolio Management Best Practices and Capabilities

Improvement Requirement

What Matters Most To Organization To Establish The Improvements

Priority List

Improvement Plan

How, When and What It Will Take To Implement The Selected Project,

Program and Portfolio Management Processes

Figure 5: The OPM3 Phases

The organization can then decide on what im-provements they want to implement and when. Those improvement can be in terms of project governance procedures to be developed, project management professional development that needs to be extended to the project management team, developing and implementing an enterprise proj-ect management information system and creating project management offices to enforce formal dele-gation of authorities and accountability to enhance the decision making process. The OPM3 improve-ment plan provides the organization with the guid-ance on how and when to implement the required improvements to achieve the desired project gover-nance within the organization.

Action 2: Project Governance Procedures

A project centric organization needs to develop detailed standard operating procedures that will cover the phases of project selection, evaluation

“Project governance is the management framework within which project decisions are made. Project governance is a critical element of any project since while the accountabilities and responsibilities associated with an organization’s business as usual activities are laid down in their organizational governance arrangements, seldom does an equivalent framework exist to govern the development of its capital investments (projects)” (Wikipedia 17-11-11)

Page 6: Why Organizations Must Implement Project Governance Framework

Published in Collaborate Issue 37 -38 6

and authorization and the project execution. Those procedures are crucial for outlining the relation-ships between the different stakeholders involved in delivering the project, describing the proper flow of information that will enable the project stake-holders to make the right decisions as well as share relevant project information, ensure that project is-sues are reviewed and resolved in the most efficient way and ensure that the required project approvals are obtained at each appropriate stage gate of the project life cycle.

The Project Management Institute (PMI) has developed project management, program manage-ment and project portfolio standards that addressed the different processes that an organization must follow in aligning their project investments with the organization strategic goals, managing the life cycle of those project investments and monitoring and controlling their performance. Those standards have provided the guidelines on how to identify, categorize, evaluate, select and authorize projects as well as how to initiate, plan, execute, monitor and control and closeout authorized projects. The standards addressed management areas that relate to project scope, time, budget, human resources, communications, risk, procurement and how to integrate those processes.

Organizations can use those standards as well as other available project, program and project portfolio management standards as well as other related standard such enterprise risk management (ISO 31000) and earned value management system (ANSI-748B) to come up with the project gover-nance procedures that best suit their business, type of projects they undertake, regions where they per-form as well as local regulations and acts that might require particular compliance.

The project governance procedures will detail what should be done and who should do it, from a role perspective. Those procedures will become the basis for setting roles and responsibilities for

ReportBenefit Realization

Strategic Planning

Closeout

Executive and

Control

Plan

Initiate

Identify and Categorize

Report

Report

Portfolio Risk Analysis

Portfolio Prioritization

Business Case

Definition

Portfolio Optimization

Capacity Planning Authorize

Portfolio Reporting/

Risk Reporting/

Strategic Change

Figure 6: The Project Portfolio Management and Project Management Life Cycle

Page 7: Why Organizations Must Implement Project Governance Framework

Published in Collaborate Issue 37 -38 7

An organization who has a well-trained project management team is an organization that has a better chance to comply with project governance than others who do not have a formally educated project management team

PMKnowledge

MSPEVP

PSP

PgMP

PMI-RMP

PMI-SP

PMP

CAPM PMOC

CBAP

CFCC

CEP

CCC/CCE

Prince2Practitioner

Prince2Foundation

Figure 7: Project Management Professional Certifications

all those stakeholders who will be involved in the project governance in either being involved in the project selection phase, in the phase of monitoring and assessing project’s performance or being the beneficiary of the project deliverables and results.

Many organizations wrongfully assume that one become an experienced project manager by time in either doing project or non-project related activities. Although no one should count out the importance of practical experience for any role one would have when it comes to managing and delivering projects, nevertheless, project manage-ment education helps in refining this experience and align it with what is needed to manage a project. Today there are many professional proj-ect management certifications that will help those involved in projects delivery to become aware of what are the areas that need to be managed in a project (see Figure 7).

An organization who has well trained proj-ect management team is an organization that has

better chance to comply with proj-ect governance than others

who do not have the formally educated

project manage-ment team. The trained project management team is more willing to fol-low and abide

the different project processes, accountability for delivering project objectives, disclosure and trans-parency when it comes to reporting project’s per-formance, project risk management and control, decision making as it relate to projects selection, funds spending and project changes, dealing and responding to issues that relate to ethics and anti-fraud measures, communication requirements to report projects performance and effectiveness and ensuring that selected project are aligned with the actions required for the implementation of strat-egy as well as any changes to this strategy. The Project Execution Plan (PEP) will detail the re-quirements set per role to the specific project team members who will become responsible for deliver-ing the project.

Action 3: Project Management Knowledge

Regretfully, many organizations still do not see the value that their project management team will add in delivering successful projects when they re-ceive the appropriate professional project management training. Actu-ally, project management training should not be even limited to those who are di-rectly involved with project delivery but should ex-tend to cover

Page 8: Why Organizations Must Implement Project Governance Framework

with the project governance procedures. They will better understand and be able to fulfill the roles and responsibilities delegated to them for project selec-tion and delivery. They will become more qualified to take decisions and become accountable for those decisions and resulting actions.

Action 4: Enterprise Project Portfolio Management

Information System (EPPMIS)

It is almost impossible to track the details of projects performance without an enterprise proj-ect portfolio management information system (EPPMIS). The EPPMIS should enable the orga-nization to capture details of all possible project investments that will be subjected to a formal eval-uation and selection process to determine which projects have better chance to be selected for execu-tion (see Figure 8). The EPPMIS should provide the collaboration infrastructure that will document and initiate the different processes required for cap-turing those project details, review and assessment of their requirements, risks and benefits, and the stage gates which will decide on whether the selec-tion process should continue or stopped.

The EPPMIS will enable the organization to have better visibility as all project investments will

Published in Collaborate Issue 37 -38 8

be captured regardless of their size, type, status, location, among others as well as it will promote governance as documented project life cycle and processes will help the organization is setting their stage gates and control points. The EPPMIS needs to support inclusivity to ensure that all stakeholders are involved in the enterprise project/ investment management environment and no one is left out. The EPPMIS will enable the organization to opti-mize their resource usage, manpower or financial, is critical for any project delivery especially when organizations are delivering more work for less re-sources. It will enhance the organization’s predict-ability as the organization can develop clear project plans that cover all actions and assumptions will be able to deliver their investment projects in faster way than others. The EPPMIS will support the organization when it comes to issue management that will alert the organization when any project’s performance deviate from what was planned and support the resolution of those issues as soon as they arise. As no project can be delivered without modifications or changes, the EPPMIS should sup-port the change management process by capturing every change that is either approved, pending of rejected to the original investment project scope

Executive Dashboard - CEO, CFO, CIO, CPO, CTOP, CxO

Portfolio Dashboard -Business Unit Manager

Project Centers - Project Manager

Work Requests - Team Members

Project Project

ControlAccount

Project

ControlAccount

Business Unit

Business Unit

Enterprise

ControlAccount

ControlAccount

Figure 8: EPPMIS Data Sharing

Page 9: Why Organizations Must Implement Project Governance Framework

Published in Collaborate Issue 37 -38 9

as well as manage the issues that resulted in each change.

The EPPMIS should support the project gov-ernance principles of authority delegation but without losing the accountability for project work performed. It should provide each stakeholder with the ability to plan, monitor and control the pro-cesses assigned to them. It should ensure that there is single repository of projects information that can accessed by the stakeholders but jeopardizing the security and quality of this information.

To ensure and promote the proper alignment and integration between corporate governance and project governance, many organizations have elected to integrate their enterprise project port-folio management information system with other corporate enterprise solutions (see Figure 9). The automated integration helps the users of the dif-

ferent applications to share common information that reside in the different solutions, reduce redun-dancy and increase accuracy in data input, and re-duces the lag between “available data” and “current data” to days instead of weeks. Some of the most common solutions integrations are the integration between EPMIS and enterprise resource planning (ERP) and other accounting and human resources applications, enterprise asset management (EAM), enterprise risk management (ERM), cost estimat-ing and budget management (CE), interface man-agement (IM), business intelligence (BI) solutions among many others. Those integrations ensure that there is single version of the truth when it comes to reporting information across those solutions.

Action 5: Setting the Project Management Office

(PMO)

Implementing the roles and responsibilities, ac-countability and decision making requirements set in the project governance procedures require estab-lishing the organizational entities that will become responsible for fulfilling those requirements. Simi-lar to corporate governance, there will be a need to set independent boards to make decisions that could affect the project scope, budget, milestone dates and other important objectives.

The PMO duties would include ensuing that

ERP

BI EAM

EPPMIS

ERM

IM

CE

Figure 9: Integrating EPPMIS with other Enterprise Solutions

“Corporate governance is a number of processes, customs, policies, laws, and institutions which have impact on the way a company is controlled. An important theme of corporate governance is the nature and extent of accountability of people in the business, and mechanisms that try to decrease the principal-agent problem” (Wikipedia 17-11-11)

Page 10: Why Organizations Must Implement Project Governance Framework

the standard project governance methodology, pol-icies, processes, tools, and metrics are implemented as intended. The PMO will also be responsible for improving project management capabilities and skills of the organization’s project management team by implementing the required professional development and training programs. In addition, the PMO will take ownership of the enterprise project management information and be respon-sible for creating accurate and consolidate projects reporting, monitoring and dashboard.

An organization can setup multiple project management offices within the organization to ensure that there is proper separation of authori-ties between making decisions that could impact project objectives and executing the project scope. Accordingly, an organization can set an Enterprise Project Management Office (EPMO) that will focus on ensuring project governance as it relate to projects selection, performance monitor and control, strategic changes and benefit realization. The Project Management Office (PMO) will en-sure project governance as it relates to projects ini-tiation, planning, implementation, close out and benefit realization. The PMO will focus on projects that are owned by the business unit that the PMO belongs to. Sometimes, and when a business unit has large programs that consist of a number of in-terrelated projects, the organization might elect to create a Program Management Office (PgMO) that will support the PMO and focus on implementing project governance on the projects that are part of the specific program. Actually, it is also a recom-mended practice to have a Project Control Office (PCO) for each project to ensure no only that proj-ect management processes are properly implement-ed but also to ensure that the required performance reporting are issued correctly and on time.

This cascade of project management offices can better help the organization to delegate responsibil-ities and authorities for taking projects related deci-sions in a timely and effective matter but without

Published in Collaborate Issue 37 -38 10

Enterprise Project Management Office (EPMO)

Business Unit 2 Business Unit 3

Program 2

Board of Directors

CEO

Program 3

Project 1 Project 2

Project Management Office (PMO)

Program Management Office (PgMO)

Project Control Office (PCO)

Project Control Office (PCO)

Business Unit 1

Program 1

Figure 10: PMO Types

Page 11: Why Organizations Must Implement Project Governance Framework

Published in Collaborate Issue 37 -38 11

diluting the accountability for those decisions. They will help in enforcing a robust solution for trigger-ing and escalating exception actions when needed. They will help in ensuring that information shar-ing and transparency is done without overwhelm-ing the organization with redundant and unneeded communication. They will help in empowering the organization as an overall to effectively implement the project governance framework.

Conclusion

In summary, an organization that their success and failure depends on investing projects needs to introduce and adopt formal project governance practices. Although project governance differs from corporate governance, nevertheless it needs to be aligned with corporate governance.

To implement a comprehensive Project Gover-nance Framework, it is recommended to follow the following strategy in developing this framework:• Conduct a formal organizational project man-

agement maturity assessment using OPM3 to

determine the areas of improvement needed to achieve project governance framework.

• Develop and implement standard operat-ing procedures (SOP) that will ensure that roles, responsibilities and performance criteria is clearly defined as well as ensure that there will be separation between project stakeholder management and project decision making

• Implement an enterprise wide professional de-velopment and training program that will en-sure competence, authority and resources for delegated members

• Implement an enterprise project portfolio man-agement information system (EPPMIS) that will promote the alignment between the overall business strategy and projects delivered and en-courage a culture of improvement, transparency and internal sharing of project information

• Create a Project Management Office (PMO) that will ensure the separation of project gov-ernance from organizational governance struc-tures to minimize the project decision layers

Achieve Vision

Achieve Strategic Goals

Implement the Strategy

Deliver Objectives Project ControlOffice (PCO)

Enterprise Project Management Office

(EPMO)

Project Management Office (PMO)

Project Management Office (PMO)

Program Management Office (PgMO)

Program Management Office (PgMO)

Project ControlOffice (PCO)

Figure 11: PMO Roles

Page 12: Why Organizations Must Implement Project Governance Framework

Published in Collaborate Issue 37 -38 12

P875 Achieving your organization vision through strategic project management framework: A simplified approach for managing projects and projects portfolio

About the Course

In today’s dynamic and demanding markets, or-ganizations that want to lead and achieve growth that far exceeds what their competition is planning for as well as what they have been used to in the past, can-not afford to be just a good organization, but rather a Great Organization.

There is a rapidly growing realization among those organizations that more and more management tasks can be handled as projects. The approach to the task, the disciplines required, the control that is possible and the measurement of the results provide a struc-ture for business that allows organizations to respond with flexibility to a more dynamic environment.

Project Management is simply more than plan-ning and scheduling. In fact, it is responding to con-tingencies, taking care of the relationships between the cross-functional teams and internal and external stakeholders, providing leadership and transferring knowledge. It includes dealing with conflicting issues, managing changes and integrating diverse and com-peting requirements.

This would require those organizations to initiate, strategically align, prioritize, plan and successfully de-liver hundreds of projects to achieve their desired vi-sion. Those will include a mix of strategy, operational, new-product, new-services and capital investment projects. Projects that will require members of the cross-functional teams to be set accountable for de-livering their scope as well as manage resources, labor and non-labor, collaborate with other team members, and communicate with external and internal stake-holders.

The objective of this course is to help participants to understand Project Management science and how it is used to successfully deliver strategically aligned projects to achieve the company’s ultimate vision.

During this course, the participants will learn how to attain their organization goals by applying project management not only to single projects but also at en-terprise level. Further, participants will be taught how to incorporate the art and science of project manage-ment into new and exciting ways to do business. The course focuses on consolidating project principles across the organization.

Learning Outcome

At the completion of this course, attendees will be able to: • know how to integrate your Organization Strate-

gic Plans with Project Initiatives • know how to build your organization portfolio

project management culture in your organization • know how to deliver your organization project life

cycle • know how to enhance the methods used by your

organization to successfully deliver projects • know how to define metrics and standards to mea-

sure the performance of your projects • know how to use technology to support managing

and tracking your projects data

Who Should Attend

This course target is for Chief Executive Officers and all other CxO, Finance Managers, Human Re-sources Managers, Project Managers, Engineers and Planners, Information Technology Managers.

In What Industries

Government, Real Estate Development, Aero-space, Defence, Engineering and Construction, Manufacturing and Industrial, Oil and Gas\Petro-chemical, Power and Water Utility Plants, Education and Training, Retail, Financial Services, Information Technology, Telecommunication, Automotive, Me-dia Production, E-Business Enablers, Marketing and Sales, Pharmaceuticals, Environmental Management, Hospitality Management, Shipbuilding and Repair Yards

Page 13: Why Organizations Must Implement Project Governance Framework

Published in Collaborate Issue 37 -38 13

Course Outline

The course outline has been developed to cover and be aligned with the five recommended actions to implement project governance framework.

• Introduction• Why do organisations invest in projects?• Why do projects fail?

• The standards for managing projects, programs and portfolios• Who are the project stakeholders?• What is project management?• What is program management? • What is portfolio project management?• What is Project Governance?

• Strategic planning• Portfolio project management aligning processes• Projects list• Selected projects list• Balancing projects portfolio• Authorised projects

• Project Execution and Reporting• Project Initiation, Plan, Execute, Control,

Closeout and Continuous Improvement• Projects portfolio monitor and control• Enterprise Projects Portfolio Management

Information System (EPPMIS) dashboard• Strategic Change and Portfolio Project

Management• Monitor and Control Portfolio Risks• Strategic Goal Achievement Reporting

• Setting the PMO: Organizational Impacts of Adapting Project Management

• What is Organizational Project Management Maturity Model (OPM3)?

• Jump Start PMO Procedures using PMO Content Assets

• Project Management Certifications

About The Instructor

Bassam Samman PMP, EVP, PSP is CMCS CEO and Founder. Bassam holds a Bachelor’s Degree in Civil Engineering from Kuwait University and a Masters De-gree in Engineering and Administration from George Washington University. He is currently pursuing a PhD at the Univer-sity of Salford, UK. He is a certified Project Management Professional (PMP), a certified Planning and Scheduling Professional (PSP) and Earned Value Professional (EVP). He is thoroughly experienced in complete Project Management including project management control systems, computerized PCS Soft-ware, risk analysis, site management, claims analysis and prevention and alternative dis-pute resolution. He has 30 years experience in Project Management Consultancy.

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About CMCSOur PassionTo help the world to get rid of failed projects and achieve what we strive for “A World without Failed Projects”.

Why It Should Matter To YouFailed projects are failed investments for which your organization not only did not get the desired return on investment but have deprived other much needed projects from such funds. Funds spent on projects are sunk costs that cannot be recovered once spent.

Our MissionDesign, develop and implement value for money enterprise portfolio project and risk management solutions that will enable project centric organizations to build their own enterprise project and risk management capacity, knowledge and capability.

Industries We ServeProject and risk management is generic to all organizations regardless to what industry they belong to, what is the nature of their project and what tangible or intangible their project deliverables are. CMCS have served more than 2,000 clients representing industry leaders in Engineering and Construction, Oil and Gas, Power and Utility, Government and Non Government Organizations, IT and Telecommunication, Financial Services, Education and Media.

Projects We SupportCMCS project and risk management solutions are applicable to all capital asset projects such as infrastructure, buildings, plants, refineries, downstream and upstream facilities; information technology and telecommunication; events and exhibitions; organizational change and professional development; restructuring, mergers and acquisitions, and IPO offering; new product or service development; media including movies and shows; crises and relief aid; lobbying and political campaigns; logistics; new regulations and compliances; professional services; corporate social responsibility.

Regions We CoverCMCS has 15 offices in 12 countries that have helped us to offer our services in more than 25 countries over the GCC, Middle East, Asia, Africa, Europe and South America. As of today, CMCS has offices in Dubai, Abu Dhabi, Riyadh, Al Khobar, Doha, Kuwait, Manama, Muscat, Sana’a, Beirut, Amman, Cairo, Alexandria, Rome and Chennai.

Our Relation with Oracle PrimaveraCMCS’ relation with Oracle Primavera is unmatched. CMCS, an Oracle Platinum Partner, is one of the first organizations who have received the Specialized Primavera P6 Enterprise Project Portfolio Management (EPPM) certification by Oracle. With 49 performance and achievement awards by Primavera since 1984 and more than 100 implementations just in the last five years, no one can offer you the reliable and cost-effective implementation that CMCS can provide. CMCS has provided their services to more than 2,000 clients in the Middle East, Asia, Africa, Europe and South America.

Collaboration, Management & Control Solutions FZ-LLC

Dubai | Abu Dhabi | Riyadh | Al Khobar | Doha | Kuwait | Manama | MuscatSana’a | Beirut | Amman | Cairo | Alexandria | Rome | Chennai

P.O. Box 23033 Dubai, UAE | Tel: +971 4 3654850 | Fax: +971 4 3697518 www.CMCS-MENA.com

A World Without Failed Projects

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