SKEMA Eden Doctoral Seminar
Roland Gareis, Laurence Lecoeuvre
Lille, August 20 th , 2013
Objectives
> Objectives: Informing about …
> the model of the process & project-oriented company
>
>
> the corporate governance concept ideas about corporate governance for the management of temporary organizations the relationship between corporate governance and an integrated management approach
> Non-objectives: Informing about …
> process, project, change management
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Context
> Research Project: Corporate Governance of the process & project-oriented company
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PhD thesis by Renata Mosoci, WU Vienna
> Supervisors: Roland Gareis and Ralf Müller
> Research question: How can corporate governance improve the management quality of the project-oriented company?
Chapter contributing to the book:
>
>
>
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The performance of projects and project management: Sustainable delivery in project-intensive company edited by Laurence Lecoeuvre, to be published by Gower
Case study work by RGCresearch
Presentation contributing to the happy projects‘14: One Management
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Overview
> The process & project-oriented company
> Corporate governance concept
> Corporate governance for the management of temporary organizations
> Corporate governance and an integrated management approach
> Conclusion
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Start End
A process is a sequence of tasks with defined objectives and a defined start and end event; fulfilled by several roles of one or more organizations.
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RGC Process Map
Clients
Selling an in-house service
Selling a seminar, coaching
Selling a product
Performing a seminar, coaching
Performing an event
Performing a consulting contract
Performing a research assignment
Primary
Processes
Procuring a service, material
Developing a service, product
Developing the organisation
Managing the personnel
Managing the infrastructure
Managing finances, controlling
Managing stakeholder relationships
Marketing/
PR
Secondary
Processes
Strategic management
Operational management
Process management
Project and program management
Porject portfolio management
Change management
Knowledge management
Management of sustainable development
Tertiary
Processes
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RGC Process Map & Projects
Clients
Selling an in-house service
Selling a seminar, coaching
Selling a product
Performing a seminar, coaching
Performing an event
Performing a consulting contract
Performing a research assignment
Primary
Processes
Procuring a service, material
Developing a service, product
Developing the organisation
Managing the personnel
Managing the infrastructure
Managing finances, controlling
Managing stakeholder relationships
Marketing/
PR
Secondary
Processes
Strategic management
Operational management
Process management
Project and program management
Porject portfolio management
Change management
Knowledge management
Management of sustainable development
Tertiary
Processes
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Process & Project-oriented Company: Organization Chart
Management Board
Project
Portfolio
Group
Business
Unit A
Department
Business
Unit B
Department
Business
Unit C
Department
Department
Expert
Pool 1
Expert
Pool 2
Projects,
Programs
Department
Expert
Pool 3
Expert
Pool 4
Projects,
Programs
Projects,
Programs
Department
PcM/PM
Office
Process
Managers
Project
Managers
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Project and Investment
Project
Start:
Project assigned
Investment
Controlling
I
Investment
Controlling
II
Investment
Controlling
III
Investment
Controlling
IV
End of the
Utilization
Project to Implement an Investment
Utilization of the Investment Object
Project approved
Investment Life Cycle
Desinvestment
Investment
Evaluation t
Start investment life cycle:
Investment decision made
End investment life cycle:
Desinvestment performed
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Project Types in the Investment Life Cycle
Project:
Proposal
Preparation
Project:
Contract
Performance
Customer relationship investment t
Project:
Feasibility
Study
Project:
Conception
Industrial Plant
Infrastructure investment
Project:
Construction
Industrial Plant
Usage of
Industrial
Plant
Project:
Revamping
Industrial Plant
Decommissioning
Industrial
Plant t
Project:
Product
Conception
Product investment
Project:
Product
Development and
Launch
Product
Marketing
Project:
Product
Relaunch
Further
Product
Marketing
Withdrawal of the
Product from the
Market t
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Clusters of Projects a set of sequential projects over a period of time
Relationships between projects all projects of a project- oriented company at a point in time a set of coupled projects at a point in time a set of closely coupled projects & work packages over a period of time chain of projects project portfolio network of projects
Clusters of projects program
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RGCcompanymature
Project management
Process management Program management
Personnel management
Assurance of the management quality of a project or program
Organisational design
Project portfolip coordination and networking between projects
Initiation of a project or program
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Organizational Fit Model
Strategy:
Management by Projects
Structures:
Permanent and
Temporary
Process &
Project-oriented
Company
Culture:
New Management Paradigm
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Process & Project-oriented Company: Definition
> A company which …
> defines processes holistically and applies process management formally
>
> uses projects & programs as temporary organizations for the performance of relatively unique processes of medium and large scope applies “Management by Projects” as an organization strategy
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>
>
>
> considers processes, projects & programs, the project portfolio and networks of projects as management objects has Management Offices and a Project Portfolio Group as integrative organization structures provides corporate governance for process, project & program, and project portfolio management has employees with competences in process, project & program, and project portfolio management applies a “new” management paradigm
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Overview
> The process & project-oriented company
> Corporate governance concept
> Corporate governance for the management of temporary organizations
> Corporate governance and an integrated management approach
> Conclusion
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Corporate Governance: Definition (OECD, 2004)
> CG involves a set of relationships between a company’s management, its board, its shareholders and other stakeholders.
> CG provides the structure through which the objectives of the company are set, and the means of attaining those objectives and monitoring performance are determined.
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Corporate Governance: Objective, Tasks, Results
> CG objective is to achieve …
> transparent and repeatable company structures and processes
> CG tasks are to define …
> the objectives of the organization
> the means of obtaining those objectives
>
> the means of monitoring the performance the relationships between stakeholders (shareholders, board, management, other stakeholders)
> CG results are …
>
>
> high level rules and regulations which are relating to all identity dimensions of an organization and not just to the financials
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Identity Dimensions of an Organization
Contexts
> Structures of the organization
> Objectives, strategies
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>
>
Services, products
Technologies
Organizational structures
Structures
>
>
>
Organization culture
Personnel
Infrastructure
> Budget, financing
> Contexts of the organization
>
>
>
Higher social system
Stakeholders
History and expectations about the future
Stakeholder relation
Stakeholder
Stakeholder
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Corporate Governance: General Examples
> Objectives, strategies, values
>
>
Processes, methods, and rules about how objectives, strategies, and values are to be planned, communicated and controlled
Definition of overall objectives, strategies, and values
> Services, products
> Rules about which services to be provided for which markets
> Processes, methods, and rules about the delivery of the services and products to different markets
> Organizational structures
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>
>
>
Processes, methods, and rules about how role descriptions, organization charts are developed
Important role descriptions and organization charts
Rules about how processes to be documented
Important process documentations
> ….
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Corporate Governance: Characteristics
> Implicit vs explicit, values vs company rules
> Complain and explain vs complain and penalize
> Relating to the principles of sustainable development, e.g. transparency, accountability, responsibility, fairness (Aras & Crowther, 2010)
> Regular reviews to maintain effectiveness and benefit
> Managing is not governing
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Overview
> The process & project-oriented company
> Corporate governance concept
> Corporate governance for the management of temporary organizations
> Corporate governance and an integrated management approach
> Conclusion
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Hypotheses: Objects of Consideration for Corporate
Governance
> CG in the process & project-oriented company relates to the company overall. This includes the governance of the management of temporary organizations and of the project portfolio.
> Specific objects of consideration of CG of the process & project-oriented company are
> its specific objectives, strategies, and values
>
>
> its specific processes, namely project initiation, project management, program management, and project portfolio coordination its specific organizations, namely projects, programs, the PcMO, the
PMO and the Project Portfolio Group its specific roles, namely process managers, project/program sponsors, project/program managers, and project/program teams
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Hypotheses: Objectives of CG of the Process & Projectoriented Company
> CG improves the management quality of the process & project-oriented company, including the management quality of its projects and programs.
> Sustainable development principles are implemented through CG structures.
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Hypotheses: Implementing, further Developing, and
Controlling CG
> The PMO and the PcMO contribute to implementing, further developing, and controlling the specific CG structures of the process & project-oriented company.
> Stakeholders are involved in implementing, further developing, and controlling CG structures in the process & project-oriented company.
> Regular audits/health checks ensure the compliance of the process & project-oriented company with its CG structures.
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Guideline: Project & Program Management (Example)
1. Introduction
2. Definitions
2.1 Definition: Small project, project, program
2.2 Definition: Project discontinuities - crisis, chance
2.3 Definition: Project and program management
2.4. Project and program types
3. Project management process
3.1 Project management: Objectives, structure
3.2 Project starting: Objectives, structure
3.3 Project coordinating: Objectives, structure
3.4 Project controlling: Objectives, structure
3.5 Project discontinuity resolving: Objectives, structure
3.6 Project closing: Objectives, structure
4. Project organization
4.1 Project organization chart
4.2 Project roles and project communication structures
4.3 Project values
4.4 Project management methods and templates
5. Program management process
5.1 …..
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Project Organization Chart: Standard (Example)
Project Organisation
Project contributor
Project contributor
Subteam 1
Project team member
Project Team
Project manager
Project contributor
Project contributor
Project team member
Subteam 2
Project contibutor
Project sponsor
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Project Management Methods (Example)
Methods for Project Starting
>
>
Project scope planning
> Project objectives plan
Project objects of consideration plan
Work breakdown structure
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>
>
> Work package specifications (for essential work packages)
Project scheduling
Project milestone plan
Project bar chart
Project CPM schedule
Project resource planning and project budgeting
> Project resource plan
> Project budget
> Project finance plan
Project context relationships
> Project stakeholder analysis
> Investment cost-benefit analysis
> Analysis: Relationships to other programs and projects
>
>
> Analysis: Pre- and post-project phase
Designing the project organization
Project assignment
Project organisation chart
> Project role descriptions
> Project communication structures
Methods for Project Controlling
>
Must
Must
Must
Can
Must
Must
Can
Can
Must
Can
Must
Must
Can
Must
Must
Must
Must
Must
Guideline: Project Portfolio Management (Example)
1. Introduction
2. Definitions:
2.1 Definition: Project portfolio, network of projects
2.2 Definition: Investment
2.3 Definition: Project portfolio management
3. Project initiation process
3.1 Objectives, structure of the process
3.2 Project initiation roles
3.3 Project initiation methods and templates
4. Project portfolio coordination process
4.1 Objectives, structure of the process
4.2 Project initiation roles
4.3 Project initiation methods and templates
5. Networking of projects process
5.1 Objectives, structure of the process
5.2 Project initiation roles
5.3 Project initiation methods and templates
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Project Initiation Process (Example)
Economic, ecologic, social impacts
Short, mid & long-term impacts
Start
Investment analyzing
Project defining
Investment proposal preparing yes
Project proposal preparing yes
Investment deciding
Project deciding
Project assigning no End no End
End
Local, regional,& global impacts
Stakeholder & risk orientation
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Role Description: Project Portfolio Group (Example)
Objectives
Organizational position
Tasks in the project initiation
Tasks in the project portfolio coordination
> Optimizing the project portfolio results and the project portfolio risk
> Reports to the board of directors
> Coordinating the project objectives with the strategies of the project-oriented company
> Deciding about the organization for implementing the investment
(project or program)
> Nominating the project sponsor
> Analyzing the project portfolio structure and optimizing it
> Deciding about project priorities
> Analyzing and managing relationships between projects
> Coordinating scarce internal and external resources
> Promoting the networking between projects
> …..
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Project Portfolio Score Card (Example)
Stakeholder relations
Customers
Partners
Authorities
Suppliers
Projects/ Programs
Progress
Schedule
Resources
Costs
Revenues
Project Portfolio Structure
Number of projects per type
Project portfolio budget
Project portfolio resources
Project portfolio risk
Multi-role assignments
Application pm procedures
PM auditing
PM personell development very poor poor
Investment Strategies
Innovation strategies
Financial strategies
Customer relations strategies
Process strategies average good very good
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CG Roles in the Process & Project-oriented Company
> Board of Directors
> The Board of Directors decides about the GC structures regarding process, project & program, and project portfolio management
> Process Management Office (PcMO)
> Develops process management guidelines (including templates)
> Supports the documentation of single processes
> Project Management Office (PMO)
> Auditors
> Not a CG Role: Project Sponsor
> A Project Sponsor has a content-related interest in the project
> The Project Sponsor performs a management role in the project
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CG Role of the PMO
> Providing guidelines (including templates) for …
> project and program management
>
> project and program consulting and auditing project portfolio management
> Providing standard project plans
> Providing software for
>
> project and program management project portfolio management
> Communicating the CG structures by …
> providing brochures, newsletters, maintaining a PMO homepage, etc.
> organizing events, e.g. project vernissages
> Controlling the compliance of the CG structures by regular audits/reviews
> Not: Controlling projects
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Overview
> The process & project-oriented company
> Corporate governance concept
> Corporate governance for the management of temporary organizations
> Corporate governance and an integrated management approach
> Conclusion
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Competing Management Approaches
> Process, project, and change management as well as business analysis are considered as distinct management approaches, which require specific roles, methods and terminologies.
> On the one hand a differentiation between these approaches provides orientation, on the other hand in their practical application these approaches often need to be combined.
> In companies sometimes parallel guidelines and competing organizations being responsible for these guidelines, such as a Quality Management
Department, a PM Office and PcM Office, a Change Management
Department, etc., exist.
> The integration of process, project, and change management as well as business analysis, in order to contribute to the management quality of the company, is a CG function.
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Business Analysis Body of Knowledge Guide
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21. – 23.05.2012
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Change, Processes, Projects, and Business Analysis
Change
Project
Plan:
Study
Feasibility Study Conception
Vision
Statement
Project
Plan:
Conception
Business
Requirements
Documents
Technical
Design
Specifications
Project
Plan:
Implementation
Implementation
Project
Plan:
Stabilization
Stabilization
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ONE Management
> Common methods and a common terminology for process, project, and change management as well as business analysis contribute to the management quality of the process & project-oriented company.
> An integrated Management Office assures appropriate CG structures for the process & project-oriented company. It contributes to sustainable process, project and change management. It contributes indirectly to sustainable processes, projects, changes and business solutions.
> Common values considering the principles of sustainable development can be applied to all management approaches.
> Change owners, change managers, and change agents require process, project and change management as well as business analysis competences.
> Process, project and change manager as well as business analysts require common values as a basis for their efficient cooperation.
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Overview
> The process & project-oriented company
> Corporate governance concept
> Corporate governance for the management of temporary organizations
> Corporate governance and an integrated management approach
> Conclusion
39
Resume: Corporate Governance
> CG is not management
> CG provides structures for management
> The CG responsibility is different from the management responsibility
> CG is values-based
> Principles of sustainable development are a basis for CG
> CG is holistic
> CG integrates different management approaches
> CG provides …
> holistic governing structures, i.e. for the company overall, including single organizations of a company
> permanent, mid to long-term and not temporary, short-term governing structures
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Resume: CG of the Process & Project-oriented Company
> CG of the process & project-oriented company has specific objects of consideration.
> Specific GC objectives in the process & project-oriented company are to define how process, project and project portfolio management is to be performed.
> …and not to do process, project or project portfolio management
> The governing structures for process, project and project portfolio management as well as business analysis have to be integrated.
> An integrated Management Office can provide CG services for the process
& project-oriented company.
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There is no Project Governance!
> To define how projects and programs are to be managed generally is a CG function.
> this is defined at a generic level and not for a single project
> Single projects (and programs) are to be managed and not governed.
> this applies also to projects (and programs) with multiple owners
> The lack of understanding and performing the project sponsor role appropriately cannot be compensated by „project governance“
> No project governance, because …
>
> it would be designed to suit a specifc project and not all projects of the company there would be too many control layers required
>
>
Project Sponsors would be defined as controlling and not as an active managing roles additional transaction costs would occur
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Roland Gareis, www.rgc.at
Laurence Lecoeuvre, www.skema.edu
Seite 22
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Project and Program: Generic Definitions
> A project is a temporary organization for the performance of a unique, short-term business process of medium scope
> A program is a temporary organization for the performance of a unique, mid-term business process of large scope
>
> including projects and work packages closely coupled by overall objectives, strategies, rules, ...
> Companies require a context-specific project definition
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There is no Project Governance!
> No project governance, because …
> it would be designed to suit a specifc project and not all projects of the company
>
>
> there would be too many control layers required
Project Sponsors would be defined as controlling and not as an active managing roles additional transaction costs would occur
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