joint projects and the governance conundrum webinar, 27 january 2017

Joint projects and the

governance conundrum

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APM Governance SIG

27th January 2017

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Agenda

Introduction

About APM Governance SIG

Overview of the ‘Governance of Co-owned Projects’

Upcoming events

Introductions

Martin Samphire – host

Andy Murray - speaker

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[email protected]

07776 301602

https://uk.linkedin.com/in/andymurray

Andy Murray

Andy is a chartered director and management consultant

specialising in Project, Programme and Portfolio

Management, with over 20 years of varied experience (public

sector/private sector, SME/corporate, domestic/international).

Andy has a focus on project/programme governance and the

treatment of inherent project/programme complexity. He has

worked with Axelos, HM Treasury, Cabinet Office and the

Association For Project Management (APM) in developing

guidance on delivering successful projects/programmes,

such as IUK Project Initiation Routemap, Directing Change,

Co-Directing Change, PRINCE2 and P3M3.

Andy is a sought after speaker and was cited in the Sunday

Telegraph’s business supplement as one of the most

influential people in project management.

Andy is a partner in RSM UK, responsible for the Project and

Programme service line and is also RSM’s Head of

Infrastructure sector.

mailto:[email protected]

https://uk.linkedin.com/in/andymurray

About the

APM Governance SIG

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Governance SIG

Objectives

Be the UK focus

Advance understanding

Contribute to good practice

Influence national and

international standard making

authorities

Influence those operationally

responsible

Develop ambassadors and

exemplars of excellence

6….in the governance of project management (change)

Activities

Engagement – CxO level

as well as APM members

Conferences and Seminars

Publications

Influence of, and

contribution to, standards

Directing Change

2nd edition 2011

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Governance of Co-

owned Project

2017Sponsoring Change

2009

Free to APM members at www.apm.org.uk/memberdownloads

GovSIG Publications

Directing Agile

Change 2016

To join the SIG, please register/log into the APM website

and on the Governance page click join this group.

Overview of

the new guide

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Governance of Co-owned Projects

What are co-owned projects/programmes

Why traditional governance models struggle

Governance of co-owned projects/programmes principles

Governance of co-owned projects/programmes health-check

How to use the guide

Benefits

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https://www.apm.org.uk/book-shop/governance-of-co-owned-projects/


Co-owned Projects: Context

There are numerous benefits of working on joint projects

Often organisations are participating in joint projects that are

sometimes greater in scale and complexity than they have

undertaken on their own

By committing to a joint project the Board of each participating

organisation takes on more than usual than if they did it on their

own

Each organisation will inevitably, in the eyes of stakeholders, be

associated with the project – whether successful or not.

So a core concept of joint projects is that they are ‘co-owned’ by the

participating organisations.

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Co-owned Projects: Context

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Governance of project

management organisation

2

Governance of project

management organisation

1

Project Management of co-

owned project

Organisation 1 governance Organisation 2 governance

Governance of co-

owned project

Co-owned Projects: Issues

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Governance of

project management

organisation

2

Governance of

project management

organisation 1

Project Management of

co-owned project


Governance of

co-owned

project

The challenge for organisations

who sponsor or deliver co-owned

projects is that traditional project

management frameworks and

methods are based on governance

structures that assume a single

hierarchical route for authority and

accountability.

This is rarely the case for co-owned

projects which is why organisations

are rightly challenging whether their

traditional governance

arrangements are fit for purpose.

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Formal Arrangements

Agreements

Flexibility and change management

Benefits and rights

Co-owner to Co-owner

due diligence

Mutually accepted business cases

Co-owners’ legal and governance compatibility

Co-owners’ standing, culture and capability

Working Arrangements

Reporting

Assurance and transparency

Stakeholder relationships

Trust, collaboration and value maximisation

Co-owned Projects: Principles

Co-owned Projects: Principle 1

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Governance of

project management

organisation

2

Governance of

project management

organisation 1


co-owned project


Governance of

co-owned

project

1. Agreements

There should be formally agreed

governance arrangements. These may

include legal contracts and agreements

among co-owners which together

ensure

• Clear processes for decision

making ensuring unified project

management and unambiguous

representation of each co-owner.

• Processes to deal with conflicts

of duty, conflicts of interest,

ambiguous accountability and

the resolution of disputes.

• Explicit commitment to

collaboration, resource

provision, mobilisation and

demobilisation.


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Governance of

project management

organisation

2

Governance of

project management

organisation 1


co-owned project


Governance of

co-owned

project

2. Flexibility and change

management

The formal arrangements should

provide for fundamental change

including change in the group of co-

owners and should define the

process to be invoked.

This includes changes as a result of

revised objectives or approach,

resolution of conflicts, co-owners

joining or leaving, or as a

consequence of material change in

control, relevant strategy or risk

appetite within co-owning

organisations.


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Governance of

project management

organisation

2

Governance of

project management

organisation 1


co-owned project


Governance of

co-owned

project

3. Benefits and rights

The formal arrangements should

define responsibility for the

realisation of benefits arising and

discharge of co-owners’ obligations

after leaving or completion.

They should include intangible

benefits and the protection of co-

owner’s confidentiality and

intellectual property, and rights to

publicise outcomes or represent

other co-owners.


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Governance of

project management

organisation

2

Governance of

project management

organisation 1


co-owned project


Governance of

co-owned

project

4. Mutually-accepted business

cases

Each co-owner should assure itself

that each co-owner’s organisation

has a stable basis of internal

approval of its business case for the

project and is committed to maximum

openness about its nature and

relevant changes as they may occur.

Critical aspects of the business

cases include clear definitions of

project objectives, the role of each

co-owner, their incentives and

rewards, risk allocation, commitments

and responsibilities.


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Governance of

project management

organisation

2

Governance of

project management

organisation 1


co-owned project


Governance of

co-owned

project

5. Co-owners’ legal and

governance compatibility

Each co-owner should assure itself of

the legal competence and relevant

obligations of co-owners, and that

internal governance arrangements of

co-owners and any project delivery

structure created are compatible with

standards of governance acceptable

to it.


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Governance of

project management

organisation

2

Governance of

project management

organisation 1


co-owned project


Governance of

co-owned

project

6. Co-owners’ standing, culture

and capability

Each co-owner should assure itself

that co-owners’ cultures, knowledge,

capabilities and reputation are

appropriate to co-ownership of the

project and also that co-owners’

policies and practices on ethics and

sustainability are acceptable to it.


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Governance of

project management

organisation

2

Governance of

project management

organisation 1


co-owned project


Governance of

co-owned

project

7. Reporting

The depth, breadth and transparency

of reporting should be fair, balanced

and suitable for the audience to

understand.

Reports should provide the

information needed for co-owners to

make decisions, report onward to

stakeholders and to trigger previously

agreed independent review and

corrective actions when they have

legitimate concerns about the

achievement of project objectives or

viability.


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Governance of

project management

organisation

2

Governance of

project management

organisation 1


co-owned project


Governance of

co-owned

project

8. Assurance and transparency

Projects should incorporate

arrangements for access to

information necessary for co-owners'

internal control or audit functions, for

conformity with disclosure and

transparency obligations, for

independent assurance and also

include channels for whistleblowing.


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Governance of

project management

organisation

2

Governance of

project management

organisation 1


co-owned project


Governance of

co-owned

project

9. Stakeholder relationships

There should be arrangements in

place to ensure that the execution of

projects takes account of co-owners'

shareholder and other stakeholder

relationships and to deal with

reputational risk and potential

conflicts of interest.


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Governance of

project management

organisation

2

Governance of

project management

organisation 1


co-owned project


Governance of

co-owned

project

10. Trust, collaboration and value

maximisation

There should be arrangements in

place to build and maintain trust,

collaboration and collaborative

behaviour including identifying

opportunities for improving the value

of the project to co-owners.

Governance of Co-owned Projects:

Checklists

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A set of questions to probe current and

planned arrangements

Categories

Alignment and compatibility

Reward, risk and opportunity

Leadership and sponsorship

Project management capability

Disclosure and reporting

The checklists are designed to uncover

gaps and prompt action. Surveys,

workshops or interviews can be used to

explore how well the organisation or project

is set up for co-ownership.

Leadership and Sponsorship


How to use the guide

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Organisational Governance Project Governance

What to assess Reasons why any of the principles is not accepted

– comply or explain.

Validate using a sample of co-owned projects

across the organisation.

The specific project in question only.

Identify gaps and departures from the principles.

Identify relevant key questions not satisfactorily

answered.

Scope of

assessment

The specific organisation only.

Reviewing different types of co-owned projects

experienced or likely to be considered.

Governance of the project by all the co-owners

(and potential co-owners if desired).

How to use the

results

Identify the corporate arrangements that need

enhancing based on gaps identified.

Gaps may originate from:

exceptions and variability across the sample;

weak/absent organisational policies,

guidance, capabilities, or behaviours.

Identify the specific arrangements for the project

that need enhancing based on gaps identified.

Gaps may originate from:

• weak/absent arrangements within the project;

• weak/absent corporate arrangements within the

co-owning organisations.


Benefits

Helps inform when not to do a joint project

Makes explicit downstream issues

Certainty of decision-making process

Robust decisions

Timely decision-making

Reduces admin burden (e.g. reporting)

Stronger stakeholder relationships

Greater visibility of threats and opportunities and how to

minimise/optimise them

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Order it now!

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Thank you. Questions?



APM Governance SIG

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Getting Involved with GovSIG

APM GovSIG on website

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To join the SIG, please register/log into the APM website and on

the Governance page click join this group.

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at an APM webinar

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joint projects and the governance conundrum webinar, 27 january 2017

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