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Program and Portfolio Management Assignment 2: Part B

2.0 Governance problems and recommendation

According to PMI (project Management Institute, 2012), program governance is the process

of developing, communicating, executing, monitoring, and assuring the regulation, principles,

organiational structures, practices and procedures associated !ith a proposed program" A

proper and !ell#designed governance frame!or$ is essential for efficient and effective

project decision#ma$ing (%arland, 200&)"

An investigation on the Arena project reveals several governance pro'lems that create a lac$

of oversight leading to project dela and cost overruns and project dela" hese pro'lems and

recommendations for improvement associated !ith the Arena project are discussed as

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scope" -or the Arena, the potential agencies are the A ports 4entre rust,

/epartment of port and 5ecreation, A ourism 4ommission, and /epartment of

4ulture and the Arts" 3ither of these agencies could 'e appointed as the client agenc

rather than leaving / to ta$e full responsi'ilit for client agenc role, as !ell as

deliver"

A proper project steering committee should 'e formed to provide strategic oversight

and drive the project"

he ris$s at each stages should have 'een identified and managed accordingl

2.! Problem 2 (Poor estimate of cost and time)

he original cost estimate and opening date !ere 'ased on insufficient scoping and

planning !ithout sstematic or sufficient analsis

3xternal scrutin or legal advice !as not sought in ma$ing the decision

/uring the contract negotiation, major changes to the Arena design !ere made

!ithout ta$ing into account of its impact on project cost and schedule

/ underestimated the ris$ and agreed to 'ear the responsi'ilit of cost increase

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Perform a preconstruction planning of project tas$s and resources needs and effective

site management should 'e in place

Project management soft!are (for example 8 Microsoft Project, Montecarlo

simulation) might 'e used as an option to assist !ith 'udgeting and scheduling

he project should 'e funded onl !hen the scope is !ell defined and estimated

'udget and schedule are realistic

2.# Problem ! (Poor comm$nication and record %eeping)

he Minister for ousing and or$s or 4a'inet !ere not full informed the $e

information such as contract negotiation, pricing uncertainties etc"

/ and 6P did not document (neither electronic or hard cop) and provide an

!ritten record of the $e issues and ris$s involved

he poor record $eeping on the project contravened the tate 5ecords Act 2000 and

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(Word count - 701 words)

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# /epartment of ousing and or$s (/)

# /epartment of reasur and -inance (/-)

# 6ffice of trategic Projects (6P)# 9%4 4onstruction (9%4)

# A ports 4entre rust (

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the impact of that interest can 'e ranged from ver high to ver lo!"

he sta$eholders7 interest can 'e due to multiple factors depending on their position or

relation to the project" In the Arena case, / and /- are investigated to have high

interest due to their mission relevanc, economic interest and legal right"

!.! +nfl$ence

/ and /- possess political po!er as !ell as position po!er in the project, !hich ma$es

these agencies suscepti'le to have high influence over the project" According to ?u$l (1&&@),

position po!er derives from either statutor or organiational authorit and contri'utes to

have control over the information, phsical and social environment, re!ards and penalties

associated !ith the project !hereas political po!er relates to control over decision processes

and institutionaliation"

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4ontri'utes to

et!or$ connection

Influences

Figure 1 Influence mapping (Modified from Bourne and Walker !00")

!." ,istance

Application of the sta$eholder circle model discussed in the 9ourne and al$er article, it is

apparent that the positions of 'oth / and /- agencies are close to the center of the

circle that have pivotal impact on the project success" / forms influential sta$eholder

close to the project and /- can 'e regarded as one of the sta$eholders of significant

influence"

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DHW

D#"

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(Word count %&' words)

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Project Management Institute"A Guide to the Project Management Body of Knowledge

(PMBK Guide!" e!to!n .uare, Pa* Project Management Institute, 200F"

estern Australia" 6ffice of the Auditor %eneral" "he Planning and Management of Perth

Arena" est Perth, "A"* 6ffice of the Auditor %eneral for estern Australia, 2010"

ood, /avid A" D5is$ imulation echni.ues to Aid Project 4ost#ime Planning and

Management"D#is$ Management(2002)* doi*10"10>Epalgrave"rm"@2F010@"

?ang, I#ung" DImpact of 9udget Bncertaint on Project ime#4ost radeoff"D%EEE

"ransactions on Engineering Management(200>)* doi*10"110&E3M"200>"@F"

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