PROJECT GOVERNANCE IN PRACTICE

PROJECT GOVERNANCE IN PRACTICE The everlasting journey towards Value-adding Project Governance Elize van Straten, MBL, PMP, Prince2 South African State Information Technology Agency SOC

OVERVIEW Corporate & Project Governance Compared SITA s Mandate and Governance Framework SITA EPMO Evolution Lessons Learn t Final Mind Shift 2

THE PROBLEM The Big Problem in any Governance discussion

CORPORATE & IT 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. In IT governance (King III), one seeks confidentiality, integrity and availability of the functioning of the system; possession of the system, authenticity of system information; and assurance that the system is usable and useful. Concerns are unauthorized use, access, disclosure, disruption or changes to the information system.

PROJECT GOVERNANCE 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.

TWO SIDES OF THE SAME COIN 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

SITA CASE STUDY

ICT GOVERNANCE FOCUS (SITA AS IT FUNCTION OF GOVERNMENT) 8 Government Value Value State IT Agency SITA Internal IT Function SITA Mandate The objects of the Agency are (a) to improve service delivery to the public through the provision of information technology, information systems and related services in a maintained information systems security environment to departments and public bodies; and (b) to promote the efficiency of departments and public bodies through the use of information technology.

EPMO MISSION To evolve SITAs Portfolio, Programme and Project Management capabilities to predictably deliver quality projects within time and within budget.

EPMO GOVERNANCE EVOLUTION 2013/14 and before Standardise projects and project sustainability CMMI level 2 Prince 2 adoption ERP / PM Process aligned 100% ERP coverage Project Sustainability Monitor and report on project performance Business Planning System 2014/15 Institutionalise Prince 2 and PM processes CMMI 3 Preparation Enterprise project governance (EPPC) Enterprise level demand management Retrain all PMs and LoB ERP training Tender for Integrated PM, PgM and PfM toolsets Implement operational performance dashboards PPM focussed Governance body Integrated Governance Body 2015/16 Institutionalise Portfolio Management CMMI 3 Certification Portfolio Management forums established Portfolio Performance Integrated benefit monitoring ROI framework implemented Integrated PPPM implemented Integrated PMO capabilities Continuous review of EPMO value proposition fulfilment and effectiveness 2016/17 and beyond PPPM Value proposition measured CMMI 3+ Measure fulfillment of BC Company wide PPPM institutionalized All projects EPPC approved Customer access to SITA PM systems SITA Capex planning framework established 10

OLD GOVERNANCE FRAMEWORK EXCO Sphere MPSA/Cabinet Board Board Sub Committee Special Committee Governance Structure MPSA / CABINET SITA Board Stakeholder Relationship, IT Governance & Coms Sub-Com SITA EXCO OPSCOM Informed by: Regulatory King III EXCO Sub Committee Architecture Portfolio Committee Service Delivery Committee Steering Committee Enterprise Portfolio and Programme Management SC Prince II PMBOK Governance Areas Oversight on all project activities within SITA (Portfolio Management, Programme Management and Project Management) Chair: GM EPMO Members: All relevant portfolio and programme managers, persons invited by the Chairperson.

NEW GOVERNANCE FRAMEWORK Board: ICT, Research, Development and Innovation (ICT RDI) EXCO EXCO: ICT Governance MANCO Enterprise Architecture ICT Service Portfolio ICT Risk & Security** Enterprise Project and Financial Sustainability Procurement** HR Policy and relations - ICT Com - Bid- Spec** - Bid eval** 12 ICT Governance ICT Management ** Temporary until Subsidiaries are operational

ICT GOVERNANCE - STRATEGIC Committee Focus Members Board: ICT, RDI (Research, Develepment and Innovation) EXCO: ICT Governance 13 Approve ICT Governance Policy Framework Ensure ICT Service Delivery Performance alignment to stakeholders Approve ICT Governance implementation Approve ICT Investments and Expenditures Ensure ICT Risk Management. Ensure Information Asset and Security Management. Monitoring Conformance and Performance (Policy and Plans) Direct, Evaluate, Recommend ICT Governance Policy Framework ICT Strategic Plans Enterprise Architecture (Business Model, Operating Model, Value Chain, IT Service Catalogue, Capability Model, System Portfolio, Technology Portfolio) ICT Management framework ICT Programme Investment Portfolio SITA Corporate Risks and ICT Security Policies and Plans Procurement/Sourcing policies and plans Monitoring and Evaluation conformance Chairperson: Non-Executive Director (ICT) Members: Non-Executive Directors, Executive Director (CEO) Invitations: Deputy CEO s, Chiefs/Exec of ICT Services, Chief Risk Officer, Head: Internal IT Company Secretary, Internal Audit ICT Governance Champion Chairperson: CEO Members: DCEO s Chairpersons of ICT Governance Steering Committees Invitation: Head: Internal IT Company Secretary Internal Audit Chief Risk Officer ICT Governance Champion OCEO: Exec Support

ICT STEERING COMMITTEES Committee Purpose Members Enterprise Architecture Portfolio Committee (EAPC) Enterprise Service Portfolio Committee (ESPC) To lead, coordinate and recommend for approval the development of ICT Strategies, Enterprise Architecture (Business, Systems and Technology models), Innovation and ICT Quality Management System, frameworks, policies, standards; and monitor portfolio performance and conformance; serve as escalation point for architecture, technology and standards related issues. To coordinate and recommend for approval the SITA Service Portfolio and associated customer relations and contracting models including additions, modifications and retiring of services; and monitor portfolio performance and conformance; and serve as escalation point for service offering related issues. Chair: CTO Members: Exec: Systems Exec: ICT Infrastructure Services Chief Enterprise Architect. CTO: GIM, Innovation, Advisory, Quality, EPMO. CS: Org Development, Internal IT Head: Provincial ICT Governance champion Chair: Exec: ICT Infrastructure Services Members: CTO: Service Portfolio CTO: GIM, EPMO Head: Internal IT Heads: CRM, SMC. Heads: ICT Service Owners Head: Provincial ICT Governance Champion 14

ICT STEERING COMMITTEES Committee Purpose Members Risk & Security Committee Enterprise Project and Financial Sustainability Committee To coordinate the establish of Information Security Management System to ensure confidentiality, integrity and availability of information assets, Intellectual Property and Personal Information; and Risk Management System to identify, assess and reduce ICT-related risk within levels of tolerance; and monitor, evaluate and report performance and conformance against Security and Risk management systems. To direct the development of the Programme Portfolio, and associated Policies and frameworks; and to ensure that SITA undertakes projects and programmes that are in support of its current strategic objectives, regulate investment projects and monitor and report on the sustainability and performance of the Programme and Project Portfolio. Chair: Chief Security Officer Members: Chief Risk Officer CTO Head: Internal IT Risk Champions (National & Provincial) Head: Information Security Operations Head: Personnel Security Head: Facility & Physical Security Chair: Chief Financial Officer Members: Head: Executive Support CTO Head: Internal IT FIN Head: Management and Cost accounting Head: EPMO Head: Customer Relations Programme Managers 15

MO GOVERNANCE BACK BONE EPMO Centre of Excellence CTO EPMO SITA OPERATIONS Customer Service Management Gov Information Management EPMO PfM GSS Government Solutions & Standards EPMO PfM ISD ICT Service Delivery EPMO PfM Province Provincial Management Supply Chain Management EPMO PgM Government ERP Transversal Solutions EPMO PgM Converged Communication EPMO PMO Province 1 Province 2 EPMO PgM EPMO PgM Cluster 1 Solutions Cluster 2 Solutions Norms, Standards & Quality EPMO PgM EPMO PgM Hosting and Storage Implementation Services EPMO PgM Province 3 Province 4 Province 5 Province 6 EPMO PgM Innovation & Research Solution Security Functional Support EPMO PgM Province 7 Province 8 Integration & Interoperability Province 9 16

PMO GOVERNANCE BACK BONE TYPE OF PMO Enterprise Portfolio Management Office (EPMO) Transformation Programme Management Office (TPMO) FUNCTION To govern all internal and external projects in the company and to consolidate performance and monitor interventions required, using a federated spectrum of PMOs. Largely internal focussed, this special purpose PMO created for the implementation of the SITA strategy and the annual BSC objective framework, will function independently from the SITA EPMO-PMO structures. Divisional/Regional Project Management Office (PMO) Programme Management Office (PMO) Created to support all projects within a Division. Consolidates performance and reports directly to the Divisional Head on such portfolio s performance. Report to the EPMO on a dotted line with regards to Performance and Corporate Governance compliance. Created to support a specific programme of related projects (and services) for the company or customer. Consolidates performance and reports directly to the assigned Programme Manager. Recent example is IFMS Programme. Report to the EPMO on a dotted line with regards to Performance and Corporate Governance compliance. Project Management Office (PMO) Depending of the size of a project, a Project Management Office can often be created to support a specific large or complex project. This type of PMO normally plays a larger integration role on the project and becomes fairly active on project operational level. A project specific PMO would normally still interface with a Divisional or Regional PMO in terms of corporate governance. Project Support Office (PSO) Most of the larger project domains only have a PSO, consisting of a project manager, a shared Project Coordinator for ERP maintenance and one or more project administrators to assist with the day-to-day administrative matters on a project. A project specific PSO would normally still interface with a Divisional or Regional PMO in terms of corporate governance.

CMMI - MATURITY MODEL PAVING THE GOVERNANCE JOURNEY

EPMO Value Proposition Inputs Business Plans (BPS) Service Contracts Supplier Contracts ERP Projects APP & CBSC Service Strategy Costing and Pricing Policies Service Catalogue Product Catalogue ECM Systems Health Audits CMMI framework Internal IT EPMO Business Support Process SCM Human Capital Finance Maturity Management for Project, Programme and Portfolio Management Line of Business Governance of Project, Programmes and Portfolios defined (RDI & CAPEX & Strategic) Operational Business Intelligence on performance baselines (APP, CBSC, Sales Targets) Oversight & Support of Portfolio, Programme, Project and Service Performance Integrated Enterprise Level Demand Management using BPS baselines Outputs CMMI Level 3 Prep Performance Reports Annual Business Planning Multi-Year Business Planning Business Interventions BI Capabilities SCP Reports Managed Baseline Dynamic Structures PPMs, PMs, SMs PMO support CMMI Audits Internal/External Audits VALUE PROPOSITION Integrated Multi-Year Human Capital Demand Management Integrated Multi-Year Procurement Demand Management Annual Revenue Management & Financing Demand + Multi-Year CAPEX view Reduced Operational Business Risk and Internal ERP efficiency Sustainable Business Growth Increased delivering of projects on schedule, within budget & at agreed quality Management decisions informed by quantitative information PLAN DELIVER Decide 19

LESSON S LEARNT Sponsorship required at highest level Use a maturity model to pave the journey Use the PMO to position for Governance Use a strong methodology as building block Involve both Line Management and Project Management in validation Focus on leadership and alignment with strategy Vision to cover entire organization Integrity of business transformation managed through programs in a Project Portfolio Management system Outcome should be Business Talk

GOVERNANCE MIND SHIFT SHIFT from Conformance to Performance SHFIT from Traditional Performance to VALUE-BASED Performance SHIFT towards the Values of honesty, transparency and accountability SHIFT from Segregated Governance to Integrated Governance Presentation Title

GOVERNANCE TYRE HITS THE TAR

THANK YOU My wish for you: many happy sponsors on your journey towards valueadding Project Governance! elize.vanstraten@sita.co.za Let s link on Linked-In

HANDY SOURCES http://www.p3m3-officialsite.com www.jcse.org.za/process-improvement/cmmi opm3online.pmi.org