Project governance provides a framework to ensure projects deliver expected value. It involves defining what the organization wants to achieve, how projects will be planned and executed, and how success will be measured. Implementing a project governance model based on a maturity framework like OGC P3M3 can improve budget/schedule predictability, productivity, quality and customer satisfaction. Reaching level 3 maturity involves defining standard processes in key areas like risk management and implementing them consistently across projects.

1. +
Project Governance
Project Management is a well defined concept found in many
guidebooks and Bodies of Knowledge. Putting these guides
and BOK’s to work for the benefit of the enterprise is the role
of Project Governance

2. +
IPT
Management
Program
Management
Project
Management
Project
Driven
Requirements
Project
Delivery
Performance
The Elements of Project
Governance
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3. +
A Big problem in any discussion of
Governance
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4. +
What do we mean when we say
“governance?”
! gov⋅ern⋅ance [guhv-er-nuh ns] – noun
! government; exercise of authority; control.
! a method or system of government or management
! gov⋅ern [guhv-ern] – verb
! to rule over by right of authority: to govern a nation.
! to exercise a directing or restraining influence over; guide: the
motives governing a decision.
! to hold in check; control: to govern one’s temper.
! to serve as or constitute a law for: the principles governing a case.
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5. +
What is Business Governance?
Governance is the set of decisions that defines
expectations, grants power, or verifies
performance.
It consists either of a separate process or of a
specific part of management or leadership
processes.
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6. +
Project Governance
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Project governance is the framework which ensures the project has been
correctly conceived and is being executed in accordance with best project
management practice within the wider framework of the firms of
organizations governance processes.
Effective project governance ensures projects deliver the value expected of
them. An appropriate governance framework ensures that all expenditure is
appropriate for the risks being tackled.
Project governance is not about micro–management, it is about setting the
terms of reference and operating framework, defining the boundaries and
ensuring that planning and execution are carried out in a way which ensures
that the project delivers benefits.

7. +
Five Core Outcomes of Project
Governance
! Strategic alignment of projects within the portfolio with business
strategy to support organizational objectives
! Risk management by executing appropriate measures to
manage and mitigate risks and reduce potential impacts
on projects and programs to an acceptable level
! Resource management by utilizing available resources and
skills efficiently and effectively
! Performance measurement by measuring, monitoring and
reporting on project governance metrics to ensure that
organizational objectives are achieved
! Value delivery by optimizing the project portfolio in support of
organizational objectives
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8. +
Five Core Outcomes of Project
Governance – Applicable to GPMO
! Strategic alignment of projects within the portfolio with business
strategy to support organizational objectives
! Risk management by executing appropriate measures to
manage and mitigate risks and reduce potential impacts
on projects and programs to an acceptable level
! Resource management by utilizing available resources and
skills efficiently and effectively
! Performance measurement by measuring, monitoring and
reporting on project governance metrics to ensure that
organizational objectives are achieved
! Value delivery by optimizing the project portfolio in support of
organizational objectives
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9. + Three Elements of Project
Governance
Project
Governance
3.
How
do
we
know
we
are
being
successful
at
what
we’re
supposed
to
be
doing?
2.
How
are
we
going
to
do
what
we
said
we
would
do?
1.
What
do
we
want
to
do?
" Business
and
Technical
Strategy
" Deliverables
Based
Planning
" Measures
of
Performance
(MoP)
" CapaciCes
Based
Planning
" Assessment
of
increasing
maturity
" Measures
of
EffecCveness
(MoE)
" ConnecCons
to
the
delivery
of
business
value
" DefiniCons
of
physical
progress
of
plans
" Measures
of
Physical
Percent
Complete
Project Governance is the Primary Role of the Program Management Office
(PMO)
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10. + What’s the difference between
Business Governance & Project
Governance?
! Business Governance is the organizational control of the
business’s ability to deliver value
! Project Governance is the centralized control of the projects
that produce this value
Governance reduces the asymmetric information exchange
between the providers and consumers of project
information.
Governance assures the providers of products or services
have the full consent of the consumers that continuously
increases visibility, maturity, and value of these products and
services.
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11. +
What’s the Real Problem Here?
! Corporate Governance is well defined
! Project Management methodologies are mature and
generally applicable to a wide variety of business domain
! There are gaps in the “governance” of projects through …
! Applying Project Management methods is not governance, it is
project execution controls
! Having document artifacts is necessary but not sufficient for
successful project work
! Consumption of time and budget is never a measure of progress
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12. +
What are the activities of Project
Governance?
! Establishing the basis for project
governance, approval, and
measurement with roles,
accountabilities, policies, standards,
and associated processes
! Evaluating project proposals to
select those that are the best
investment of funds and scarce
resources and are within the firm’s
capability and capacity to deliver
! Enabling resourcing of projects with
staff and consultants, harness and
manage of business support and the
provision of the governance
resources
! Defining the “desired business
outcomes”, benefits, and value —
the business measures of success
and overall value proposition
! Controlling the scope, contingency
funds, overall project value, and
other project performance attributes
! Monitoring the project’s progress,
stakeholder’s commitment, results
achieved and the leading indicators
of failure
! Measuring of outputs, outcomes,
benefits and value — against both
the plan and measurable
expectations
! “Steering” the project into the
organization, remove obstacles,
manage the critical success factors
and remediate project or benefit-
realization shortfalls
! Developing the organization’s
project delivery capability —
continually building and enhancing
its ability to deliver more complex
and challenging projects in less time
and for less cost while generating
the maximum value.
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13. +
Good Project Governance
Elements
Elements Project Governance Physical Artifact
A compelling business case, stating the objectives of the project and specifying the
in-scope and out-of-scope elements
Risk Adjusted Business Case
A mechanism to assess the compliance of the completed project to its original
objectives identifying all stakeholders with an interest in the project
Deliverables Plan connected to
business case
A defined method of communication to each stakeholder Communications Plan
A set of business-level requirements as agreed by all stakeholders Master deliverables
An agreed specification for the project deliverables and their measures of
effectiveness and measures of performance
Capabilities, features, functions,
and testable requirements
Clear assignment of project roles and responsibilities
Responsibility Assignment
Matrix
A current, published project plan that spans all project stages from project
initiation through development to the transition to operations
Integrated Master Plan
Integrated Master Schedule
A system of accurate upward promoting status and progress-reporting including
connections between cost, schedule, and technical performance
Measures of physical percent
complete and delivered
business value
A central information repository for the project Enterprise PM System
A process for the management and resolution of issues that arise during the project Issue tracking system
A process for the recording and communication of risks identified during the
project
Risk management system
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14. +
3 Simple Steps to Governing the
Project Management Processes
! Define what Project Governance means for the enterprise in
terms of its artifacts
! Understand “governance” does not replace actionable
beneficial outcomes of a Project Management method
! Initiate the cultural introduction of “governing” as well as
“managing”
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15. +
A Project Governance Framework
! OGC P3M3
! Maturity model for Project, Program, Portfolio
Management Maturity Model
! This framework is simple, well formed and in
use in the UK for council, township, county and
regional governments for IT management
! It is a maturity model in the same way CMMI is
a maturity model
www.ogc.gov.uk
The OGC P3M3
V2.0 defines 5
levels of maturity
for project,
program, and
portfolio
management
processes.
P3M3 is “owned”
by the same
organization that
“owns” ITIL
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16. +
Universal Process Maturity Levels
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Process characterized for projects
and is often reactive
Process characterized for the organization and
is proactive
Process measured and controlled through formal data
gathering and assessment processes
Focus is on continuous process improvement through
assessment, feedback and preemptive corrective actions
Level 4:
Quantitatively
Managed
Level 1: Performed
Level 2: Managed
Level 5:
Optimizing
Level 3: Defined
Each maturity level is a layer in the foundation
for continuous process improvement
Process unpredictable, poorly
controlled and reactive

17. +
Characteristics of Each Maturity
Model Level
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Maturity Level Attributes found in the organization
Level 5
Optimized
" Project, Program, Portfolio management improvement environment is actively encouraged
" Built on a flexible PMO centered organizational structure
" Career path for project and program managers
" Project, program, and portfolio management training is a component in staff development
Level 4
Managed
" Active senior management support for integration of business planning and execution
" Organization efficiently plans, manages, integrates and controls multiple projects
" Database of previous project data maintained and utilized
Level 3
Defined
" Senior management support for project, program, and portfolio management
" Organization efficiently plans, manages, integrates, and controls single projects
" Repository of previous project experience maintained and utilized
" Team members and project managers trained in project management
" Consistent use of tools and techniques for project management processes
Level 2
Repeatable
" Managed support for project management
" Repeatable processes are applied to basic project management steps
" Project and program outcomes are more predictable
" Use of common tools and techniques for key project management processes
Level 1
Initial
" Many, incomplete, informal approaches – each project handled differently
" Highly dependent on Project Manager
" Project and program outcomes unpredictable
" Little organizational support for project management
" Lesson learned are not gathered and passed on to other projects

18. +
What sets high maturity
organizations apart from the rest?
! High performing organizations are significantly more mature
in their project management practices than organizations in
general
! The most significant difference between high and low
performing organizations is in allocating resources optimally
and in estimating accurately
! High-performing organizations are very good at satisfying
project customers and in completing projects on schedule,
on budget
! A significant percentage (23%) of high-performing
organizations are at Level 5 maturity in quality management
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Project Management Maturity: A Benchmark of Current Best Practices, CBP

19. +
Governing Projects by
Getting to Level 3 of the
OGC P3M3
A mature organization has the ability to
manage portfolios, programs, and projects
based on standard, defined processes.

20. + Project, Program, and Portfolio
Management Maturity Model
Level 1 – Initial
Recognize projects and run them differently from the ongoing business
Level 2 – Repeatable
Ensure that each project is run on its own processes and procedures to a
minimum specified standard
Level 3 – Defined
Each organizational element has a centrally controlled project processes.
Individual projects flex within these processes to suit a particular project
Level 4 – Managed
Each organizational element obtains and retains specific measures on its
project performance. These measures used to improve the quality of projects
Level 5 – Optimizing
The entire organization runs a continuous process improvement process with
proactive problem and technology management
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21. +
The Program Management Office
Governance Structure using the
OGC P3M3 Framework
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Management
Control
Benefits
Management
Financial
Management
Stakeholder
Management
Risk
Management
Organizational
Governance
Resource
Management
Portfolio
Management
Program
Management
Project
Management
Program Office Governance

22. +
Key Performance Improvements
! Understand the key practices that are part of effective
portfolio, program, and project management processes
! Identify the key practices that must be embedded within the
organization to achieve the next maturity level
! Understand and improve the capability to manage programs
and projects more effectively in the future
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23. +
P3M3
The 25 (2+11+12)
Process areas of
OGC P3M3 include
all core Knowledge
Areas of PMBOK
23

24. +
Assessment of the Path to OGC
P3M3 Level 3
! Where are we today?
! Where do we want to be?
! How can we get there?
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25. +
Benefits to reaching Level 3
! Improved budget and schedule predictability
! Reduced cycle time
! Increased productivity
! Improved quality
! Increased customer satisfaction
! Increased return on investment
! Decreased cost of quality
TeraQuest / Gartner 2006 Maturity ROI
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26. +
Measureable Improvements by
moving between the Maturity
Model Levels
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Moving from One Level to the Next
L1 to L2 L2 to L3 L3 to L4
Reduced SW Defects 12% 40% 85%
Reduced Cycle Time 10% 38% 63%
Reduced Costs 8% 35% 75%
Schedule Variance 145% 24% 15%
Data presented at 5th Annual CMMI technology Conference & User Group,
Denver Colorado, November 2005

27. +
Benefits to Deploying a Project
Governance Process at Level 3
! Substantial ROI improvements (from historical SEI data)
! Identified strengths and weakness by Key Process Area (KPA)
with improvement plans for weaknesses
! Prioritized roadmap to Level 3 with actionable outcomes
connected to business strategies
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28. +
Steps to get to OGC P3M3 Level 3
! Competency Assessment of Project Managers
! OGC P3M3 assessment criteria
! PMI – PMBOK process areas for project execution details
! OGC P3M3 Deployment
! Level 3 process areas
! Deployment of PPM Business processes against Level 3
Process Areas
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29. +
Failure Modes along the way to
Process Maturity
Failure Mode Failure Description Mitigation
Design and
Definition
Scope and outcomes not
clearly defined
Deliverables Based Planning (DBP)
with physical % complete measures
of progress
Decision
making
Inadequate levels of
sponsorship
Scorecard based mission and vision
defined up front with maturity
assessment units of measure
Risk Discipline Weak arrangements for risk
management
Embedded risk management,
retirement and mitigation in the
Master Plan
Supplier
management
Lack of shared
understanding between
suppliers
Deliverables based plan with risk
adjusted measures of performance
People Disconnects between
program and stakeholders
Deliverables focus with
measureable value to stakeholders
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30. +
Beneficial Outcomes using a
Project Governance Approach
! Change initiatives address and achieve strategic objectives
! Business value realized earlier
! Risks retired or managed
! Total change investment is coherent, prioritized, and visible
! Allocation of resources optimized
! New initiatives evaluated for operational effectiveness
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31. +
Characteristics that must be in place
for successful Project Governance
! Focus on leadership and alignment with strategy
! Vision covers entire organization
! Risk visible from a strategic perspective
! Integrity of business transformation managed through
programs in a Project Portfolio Management system
! Benefits oriented to organization not just technology
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32. +
What’s the 1st Step to Level 3?
! Perform a gap analysis between “As Is” and “To Be” at
Level 3
! With these gaps, build the gap closure plan
! Execute the closure plan with measurable beneficial
outcomes to the organization
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