| In today's fast-changing information economy, IT | | | | board should not release further funds until the cause |
| project governance has emerged as one of the | | | | of the divergence has been fully dealt with. |
| most vital corporate responsibilities. The relentless | | | | In selecting a project management methodology the |
| pressure to innovate whilst simultaneously driving | | | | organisation needs to choose an approach that is |
| down costs means that organisations are increasingly | | | | appropriate to its project objectives and |
| 'betting the farm' on the successful development and | | | | development environment. By far the most popular |
| deployment of new IT systems. However, the | | | | methodology is Prince2, the successor to PRINCE |
| business environment now evolves so quickly that | | | | ('Projects in Controlled Environments'), which was |
| the original assumptions on which projects were | | | | developed by the UK Office of Government |
| based can often become fatally undermined prior to | | | | Commerce. While PRINCE was originally developed |
| the projects' completion. With technology at the | | | | for IT projects, Prince2 project management has |
| heart of most businesses, the ability to maintain tight | | | | incorporated substantial feedback and is now a |
| executive and board control over such projects | | | | generic, best-practice approach for all types of |
| throughout their lifecycle has become a deciding | | | | projects. Since its introduction in 1989, Prince2 project |
| factor in determining which businesses thrive and | | | | management has become widely used in both the |
| which founder. In response to this challenge, Prince2 | | | | public and private sectors and is now a de facto |
| project management has emerged as the world's | | | | global standard. |
| leading methodology for ensuring that IT projects | | | | Prince2 project management uses a structured |
| stay on track and deliver real value. | | | | methodology, which means managing a project in a |
| No large scale or business critical project should ever | | | | logical and organized way, following clearly defined |
| be managed on a standalone basis. The need to | | | | steps and well-understood roles and responsibilities. It |
| involve and secure buy-in from functions right across | | | | perfectly matches the requirements of a project |
| the organisation means that a project governance | | | | governance regime by delivering the following |
| approach is essential. While project management is | | | | attributes to any project:o A controlled and organised |
| the key discipline within this, project governance is | | | | start, middle and endo Regular reviews of progress |
| broader in scope and has six interlinked objectives: | | | | against plan and against the business caseo Flexible |
| 1. Ensuring real business value through project and | | | | decision pointso Automatic management control of |
| business alignment. | | | | any deviations from the plano The involvement of |
| 2. Controlling costs through centralisation. | | | | management and stakeholders at the right time and |
| 3. Maximising resource allocation, particularly of high | | | | in the right place during the projecto Good |
| value resources. | | | | communications channels between the project, |
| 4. Risk management through portfolio balancing. | | | | project management, and the rest of the |
| 5. Uniform application of best practice. | | | | organisation. |
| 6. Organisational coherence. | | | | The effectiveness of Prince2 project management |
| IT decisions expose an organisation to significant risks | | | | results from its four cornerstones, which define what |
| - financial, operational and competitive - so it is | | | | a successfully managed project should be: |
| essential that project governance be a concern for | | | | Planned: Prince2 has a series of processes that cover |
| the board as a whole, rather than any one individual. | | | | all of the activities needed on a project from starting |
| The board must insist that project risks are assessed | | | | up to closing down. This process-based approach |
| within the organisation's strategic planning and risk | | | | provides an easily tailored and scaleable method for |
| management framework and ensure that the right | | | | the management of all types of project. Each |
| investment and management decisions are made, so | | | | process is defined with its key inputs and outputs |
| that competitive advantage can be enhanced and | | | | together with the specific objectives to be achieved |
| measurable business value delivered. | | | | and activities to be carried out. |
| The board's project governance responsibilities can | | | | Controlled: Prince2 project management divides a |
| be summarised as follows:o To approve product | | | | project into manageable stages, enabling efficient |
| initiation, manage the project portfolio and pull the | | | | control of resources and regular progress monitoring |
| plug on any underperforming projects.o To make one | | | | throughout. The various roles and responsibilities for |
| or more non-executive board members specifically | | | | managing a project are fully described and are |
| responsible for overseeing project governance. They | | | | adaptable to suit the size and complexity of the |
| must have independent and informed oversight of | | | | project, and the skills of the organisation. |
| progress on all business IT projects - including | | | | Results-driven: Project planning using Prince2 is |
| attending program (or large project) board | | | | product-based, which means the project plans are |
| meetings.o To ensure clear accountability at all levels, | | | | actually focused on delivering results and are not |
| with detailed, rigorously tested project plans based | | | | simply about planning when the various activities on |
| on a critical path analysis with clearly identified critical | | | | the project will be done. |
| success factors, regular milestones and 'go/no go' | | | | Measured: Any project using Prince2 is driven by the |
| checkpoints.o To ensure that every project proposal | | | | business case, which describes the organisation's |
| contains a full business case with a fully costed | | | | justification, commitment and rationale for the |
| estimate that can stand up to independent audit, | | | | deliverables or outcome. The business case is |
| with clearly stated assumptions that can withstand | | | | regularly reviewed during the project to ensure the |
| rigorous analysis.o To manage all IT related projects | | | | business objectives, which often change during the |
| as part of a portfolio.o To adopt and deploy a | | | | lifecycle of the project, are still being met. |
| recognised project management methodology.o To | | | | There are clear reasons why Prince2 project |
| adopt a clearly defined risk management plan at | | | | management has become the world's leading |
| programme and project level that reflects corporate | | | | methodology. In addition to its best practice approach |
| level risk treatment requirements.o To institute a | | | | for the management of all project types, around 800 |
| monitoring framework to inform the board of | | | | people per week take Prince2 project management |
| progress and provide an early alert of divergence or | | | | examinations, with all training is carried out by |
| slippage in any of the critical success factors.o To | | | | accredited organisations. It is widely used and popular |
| commit funding only on a phased basis.o To ensure | | | | in both public and private sectors, and can easily be |
| that internal audit is capable and accountable directly | | | | tailored to all varieties of projects in many different |
| to the board for providing regular, timely and | | | | markets and businesses. For any organization that is |
| unambiguous reports on project progress, slippage, | | | | serious about managing its IT investment, Prince2 |
| budget, requirements specification and quality | | | | project management is the natural choice. |
| requirements. Where there is project divergence the | | | | |