(a) State six principles of the governance of project management that would help avoid common causes of project failure.

NB all eleven principles have been stated for completeness – the question only asked for six and this requirement should be observed in the examination

There are eleven principles of governance that are applicable to projects:

 The board has overall responsibility for governance of project management.

 The roles, responsibilities and performance criteria for the governance of project management are clearly defined.

 Disciplined governance arrangements, supported by appropriate methods and controls, are applied throughout the project life cycle.

 A coherent and supportive relationship is demonstrated between the overall business strategy and the project portfolio.

 All projects have an approved plan containing authorisation points at which the business case is reviewed and approved. Decisions made at authorisation points are recorded and communicated.

 Members of delegated authorisation bodies have sufficient representation, competence, authority and resources to enable them to make appropriate decisions.

 The project business case is supported by relevant and realistic information that provides a reliable basis for making authorisation decisions.

 The board or its delegated agents decide when independent scrutiny of projects and project management systems is required, and implement such scrutiny accordingly.

 There are clearly defined criteria for reporting project status and for the escalation of risks and issues to the levels required by the organisation.

 The organisation fosters a culture of improvement and of frank internal disclosure of project information.

 Project stakeholders are engaged at a level that is commensurate with their importance to the organisation and in a manner that fosters trust.

(b) For each of two distinct principles stated in part (a), explain the possible effects of NOT practising them.

Principle: The project business case is supported by relevant and realistic information that provides a reliable basis for making authorisation decisions.

The business case is the driver of a project as it provides the business justification for the project and states why the forecast time and effort is worth the expenditure. It must contain tangible business benefits that can be accurately measured and realised post project. If this is not done then the money spent on the project will be wasted as the reason and benefits for the project are lost in the “folklore” of the organisation.

The business case is also used to continually align the project with the business and provides a focus for the ongoing justification of the project and

will be used at key decision points to decide whether the project should continue. If this is not done the project becomes a “mastermind” project – “I‟ve started so I‟ll finish!” Again the effort and costs are wasted.

Principle: There are clearly defined criteria for reporting project status and for the escalation of risks and issues to the levels required by the organisation.

For any project to succeed it is essential that the risks faced by the project are identified, analysed and appropriate actions taken to mitigate the threats or maximize the opportunities. This often requires escalation to the sponsor and/or steering group. If the escalation process is not defined these decisions will not be made, opportunities will be missed and risks will occur increasing the project costs and timescales and ultimately lead to project failure.

Similarly, issues require immediate action. If they are not resolved they will become “showstoppers” and the project will fail. Clear lines of escalation are required and all parties need to be clear about, and accept, their responsibilities.

Finally, if clear reporting lines are not in place senior project staff, the sponsor and steering group will not have the right level of information to make decisions and this leads to extensive delays.

APM PMQ Exam Revision