Nature Of Project Governance & Pm

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INTERNATIONAL JOURNAL OF

PROJECT MANAGEMENT International Journal of Project Management 24 (2006) 93–95 www.elsevier.com/locate/ijproman

Editorial

Towards a theory of project management: The nature of the project governance and project management

In my editorial in the last issue of the journal, I started trying to develop a theory of project management. Through a series of premises and lemmas I attempted to derive a structure of project management, and identify inherent elements of project management. In that last issue, I looked at the nature of projects and identified two premises and five lemmas, eight inherent elements of project management and four roles. In this issue, I am going to look at the nature of project governance and project management. For a definition of project governance, I am going to turn to the OECD definition [1]: Premise 3. Project governance provides the structure through which the objectives of the project are set, and the means of attaining those objectives are determined, and the means of monitoring performance are determined. Premise 4. Project governance involves a set of relationships between a projectÕs management, its sponsor, its owner and other stakeholders. Premise 4 is not essential to the argument at the moment, but I include it to make the point that the project is being governed and managed on behalf of its stakeholders particularly the sponsor and owner. Premises 1 and 3 define project management. Corollary 9. Project management is the means by which the work of the resources assigned to the temporary organization is managed and controlled to deliver the beneficial change desired by the owner. Premise 3 says there is a project life-cycle. Lemma 6. There are three inherent steps to the project-lifecycle:  definition: when the objectives are defined,  design: when the means of obtaining those objective are defined,  execution: when the work is done and performance monitored.

Combining premises 1, 2, 3, and lemma 4 identifies five inherent steps in the project life-cycle. Lemma 6A. There are five inherent steps in the project lifecycle:  concept: when possibility of beneficial change is first identified, the outcome (desired benefit) is identified and possible outputs (project deliverables) to achieve that outcome are also identified,  feasibility: when possible means of obtaining the outputs are identified, and their feasibility and comparative values assessed, and one chosen for further development,  design: when definition of the desired outputs and outcomes is refined, the means of achieving them defined and the value to the owner proven,  execution: when the work to deliver the desired output is undertaken and performance monitored,  close-out: when the output is commissioned and handed to the owner or users for them to operate to produce the desired outcome. Some people have said to me that not all projects have a life-cycle, and they quote the example of extreme programming. I disagree. The life-cycle can take place in strict series, sometimes it will overlap as in fast-track, sometimes elements of the life-cycle will run in parallel, sometimes stages will be repeated, and sometimes (as in extreme programming), they will be cyclic. But the project-life-cycle is an inherent element of project management. Corollary 10. The project-life-cycle is an inherent element of project management. Premise 3 also identifies three additional project roles. For the first two, I use the terms suggested by Turner and Keegan [3]. Role 5. The broker is the person who defines the objectives of the project, the desired outcome (benefit) and defined output (deliverable, facility or asset).

0263-7863/$ - see front matter Ó 2005 Elsevier Ltd and IPMA. All rights reserved. doi:10.1016/j.ijproman.2005.11.008

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Editorial / International Journal of Project Management 24 (2006) 93–95

The broker may be the sponsor and often is. But the broker may sometimes be somebody different. (Here, temporarily, I stop talking about the theory and start talking about examples of applications. Whenever I do that I will use italics.) For instance, in a programme of projects, the sponsor will be the sponsor for the programme, often the programme director, but the broker the programme manager. The UK Government, in their Prince 2 process ([2]), define a project executive (sponsor) and senior user (broker). Also, for a contracting company doing work for an external client, the sponsor may be a client employee and the broker an internal employee, a client or account manager. Role 6. The steward is the person who defines the means of achieving the objectives. The steward may be the project manager and often is. But the steward may sometimes be somebody different. Often, on smaller projects taking place as a part of a programme or portfolio, the project manager is only appointed after the means of obtaining the objectives has been defined. The steward is a role that takes place at the programme level. The UK Government, in their Prince 2 process ([2]), define a senior supplier (steward). For contractors doing work for external clients, the steward may be a solutions manager or proposal manager who defines how the work will be achieved before the manager is appointed. The broker and steward roles are different and trying to combine them involves a conflict of interest. The broker must seek what is best for the owner. The steward must be pragmatic about what the project can achieve. The two work together to achieve a feasible solution that is in the best interests of all. Role 7. The project manager is the person who monitors performance of the project, and takes action to recover progress if the project does not achieve the desired progress. Premises 1 and 3 also say that there is a management life-cycle: Lemma 7. there are four inherent steps in the management life-cycle:  planning: the work of the temporary organization is planned,  organizing: the resources required to undertake the work are identified,  implementing: the work is assigned to the resources,  controlling: performance is monitored, and corrective action taken to ensure the desired output (change) is obtained and that is capable of delivering the desired outcome (benefit). Corollary 10A. The management life-cycle is also an inherent component of project management.

Corollaries 6 and 7 together with Premise 1 also suggest that project management is fractal, by this I mean that each component of a project has the features of a project. The concept stage is a temporary organization that gives us the benefit of being able to proceed to feasibility, etc. A package of work that makes up a stage is a temporary organization that provides the benefit of completing an element of work of the overall project. Thus, we need to plan, organize, implement and control each stage of the project, and each element of work in the project. On smaller projects, especially those that are part of a programme, the difference between the management life-cycle and project life-cycle may be less distinct, but on larger projects, the project will move quite distinctly through the stages, and each stage will need to be planned, organized, implemented and controlled. In extreme programming the distinction between project life-cycle and management life-cycle may also be less clear. Lemma 8. Projects and project management are fractal. Corollary 7A. The break-down structure can be taken down to whatever level is useful for management purposes. We can summarise where we have got to: P1: a project is a temporary organization, P2: which the owner creates to create value, P3: governance is defining the objectives, the means of obtaining them, and the means of monitoring performance, P4: the temporary organization is governed on behalf of the stakeholders, L1: a project consumes resources to do work, L2: to deliver an output, L3: which will be operated to achieve a beneficial outcome, L4: the work of the project is non-routine, L5: and therefore risky, L6: projects have five inherent stages: concept, feasibility, design, execution, close, L7: project management has four inherent steps: plan, organize, implement, control, L8: projects and project management are fractal. Project management comprises: C1: C2: C3: C4: C5: C6: C7: C8: C9: C10:

Project contract and procurement management. Information management. Financial management. Resource management. Project appraisal. Project definition. Breakdown. Risk management. The management of the project. The project and project management life-cycles.

Editorial / International Journal of Project Management 24 (2006) 93–95

We have also identified several roles: R1: The owner who provides the resources to buy the asset and will receive the benefit from its operation. R2: The users who operate the asset on the ownerÕs behalf. R3: The sponsor who will channel the resources to the project on the ownerÕs behalf. R4: The resources who are assigned to the project and will do the work to deliver the asset. R5: The broker, who works with the owner and sponsor to define the required outcome (benefit) from the project, and the output (change) which will achieve that. R6: The steward, who works with the broker to identify the means of obtaining the output, the work and resources required. R7: The manager who manages the temporary organization, to ensure the right work is done to deliver the defined output, and monitors and controls progress.

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There is still no mention of time and quality. Where, oh where, of where is the beloved triple constraint. In the next issue I will look at the functions of project management. References [1] Clarke T, editor. Theories of corporate governance: the philosophical foundations of corporate governance. London: Routledge; 2004. [2] OGC. Managing successful projects with Prince 2. 4th ed. London: The Stationery Office; 2004. [3] Turner JR, Keegan AE. Mechanisms of governance in the projectbased organization: the role of the broker and steward. Eur Manage J 2001;19(3):254–67.

J.R. Turner 1 Graduate School of Management, Lille, France E-mail address: [email protected]

1 Present address: Wildwood, Manor Close, East Horsley, Surrey KT24 6SA, United Kingdom. Tel.: +44 1483 282344; fax: +44 1483 281 281.

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