Enterprise Governance Model - Assuring the benefit / value return of our businesses

The board should focus their efforts on strategic

risk

The Board

5. Business Benefits

6. Value Reconciliation

OBJECTIVES 1. Uncertainty

On directors’ management of uncertainty: “I encourage use of an evolving approach…‘intelligent naivety’!” - Professor Bob Garrett FAICD

On portfolio management:

Uncertainty view

Corporate

Divisional

Operations

Business Strategy

Core Strategy Contingent Strategy

POLICY

Portfolio management

Investment Council

Steering C’tee

“Managing an uncertain journey… to an uncertain destination” - John Thorp ISACA ITGI Author: The Information Paradox

Business

On strategy projects Programme

Off strategy projects Programme& Change Office

On programme management: “…exists within a strategic context but

Commitments

view:

Units

Teams

Functional

Management BEHAVIOUR

Project Management

on-

demand

Project Office

operates as a strategy implementation vehicle – a tactical imperative” - Project Management Institute: Programme Management, The Global Standard

Programme delivery should

feature managed ‘commitments’ in order to formally

4. Commitments (profitability)

3. Programme Review

2. Options (sustainability)

On project management: “projects deliver capabilities… not business benefits!” - ISACA (ITGI)

People: Systems:

recognise fiscal benefit return “Policies “Systems

should lead enact policy” behaviour”

Transformation + Governance = Benefit/Value Realisation

via the Change Programme

“Performance Management must be essentially a social process”

- ‘Systems Leadership’, McDonald et al

“Under requisite uncertainty, a well- functioning governance hierarchy is differentiated by the degree of strategic uncertainty addressed at each level and

integrated through a cascading series of strategic commitments as those uncertainties are resolved”

- Michael Raynor ‘The Strategy Paradox (featuring ‘requisite organisation’, Jaques)

Enterprise Governance – the set of responsibilities and practices exercised by the board and the executive

management team with the goal of providing strategic direction, ensuring that objectives are achieved (5),

ascertaining that risks are managed appropriately (1) and verifying that the organization’s resources are used

responsibly (2,3,4,6). – IFAC/CIMA (UK) // COSO (US) - IFAC/CIMA (UK)/COSO (US)