APM 2010 2011 Study Directing of Project Portfolios

APM 2010 – 2011 Study Directing of Project Portfolios: Good Governance of Change initiatives Carried out by: Governance Specific Interest Group

Background, Purpose and Scope § Foundation: Governance of Project Management SIG guidelines (Directing Change) § Why: Study to improve insight in reality of governance in relation to project management § What: Define a practical conceptual structure to help discuss governance issues § How: Interviews with Directors in 5 professionally managed corporations in UK and Norway Gov. SIG 2

Key findings (1): Strong points § Project management systems, including controls and reporting, terminology, roles and responsibilities are defined and in place § Ability to stop non-viable projects claimed to be high § Well aware of challenges in discriminating between business as usual and projects. The challenges of project operations obstructing ongoing operations is claimed to be well taken care of. § Risks seem to be potentially very large, but few in numbers and well controlled. The use of decision gates and verification of decision making documents seem well established.

Key findings (2): Blind spots § Heavy divisionalisation, to a degree where we question the top level Board overview § Although aware of risk and uncertainty, discussions fail to cover the whole portfolio and risk across portfolios, focus single dominant risks § Motivation of those making decisions and optimizing the portfolio of change initiatives seems a non-recognised issue § No mentioning of culture issues or levels of success and satisfaction § No learning process connected to projects or portfolios is described

Key findings (3): The portfolio of change initiatives § Awareness of Boards’ and Directors’ responsibility in terms of total risk exposure in portfolios, programmes and projects § Business Plans and Business Cases actively used. The degree of alignment between strategy and projects is claimed to be very high. § Active engagement with suppliers, customers and other stakeholders to maintain business relations, but not to support the optimization of project portfolio

Governance of Project Management Three Main Pillars Stakeholders Influences Purpose CONTEXT Restrictions Strategy/Policy System Individual Plan (of Actions) Motivation (of Directors) Culture Behaviour (of People) Delegation (Divisionalisation) WORK Society BAU (Business as usual) Gov. SIG Portfolio A Portfolio B Portfolio C Programme Nature Project 6