E V O L U T I O NS O L U T I O N S

TALKING GOVERNANCEA Knowledge-Base Project Management Guideline

Adil Abdalla, Dubai, 2008

1Talking Governance

2Talking Governance

GENERAL PRINCIPLES

3Talking Governance

Governance is Concerned with Accountabi l i ty and

Responsibi l i t ies; I t Describes how the

Organizat ion is Directed and Control led

Organization

the organizational units and structures, groupings, and coordinating mechanisms (such as steering groups)

established within the organization and in partnership with external bodies, for the management of change

Principles: Governance Framework

4Talking Governance

Managementthe roles and responsibilities established to manage business change and operational services, and the

scope of the power and authority which they exercise

Policies

the frameworks and boundaries established for making decisions about investment in business change, and the

context and constraints within which decisions are taken.

Astronomical Monetary Reserves

Principles: Global Corporate Cycle

5Talking Governance

Criteria for Global Corporate

Partnership

Share Returns on Global Investments

Acute Demands for Funds & Investments

Corp

orat

e G

over

nanc

eAccounts & Operations Transparency

Principles: Elements of Governance

6Talking Governance

Protection of Stakeholders’ Rights

Board Critical Functions

Building Customers’ Confidence

Principles: Golden Roles

7Talking Governance

Close-outPlanningLegal FrameExecution

Control

Project Manager

Work or EffortWork or Effort

RequirementsRequirements PayPayAcceptanceAcceptance

Scop

e/T

OR

Scop

e/T

OR

Term

s o

f Paym

en

tTe

rms o

f Paym

en

t

ProposalProposal $$$$$$

The ClientThe Client

Service ProviderService Provider

Verifi

catio

nV

erifi

catio

nAward

Baselines

Close outTake over

LessonsLearned

ProductIdentification

Conditions ofContract

Chain of Acceptance

Principles: Communications Cycle

The Client/Developer

Consultant

Contractor

Project Manager

Ins

truc

t

Ac

ce

pt

Re

qu

es

t

Re

po

rt

Re

qu

es

t

Re

po

rt

Re

qu

es

t

Re

po

rt

Ins

truc

t

Ac

ce

pt

Ins

truc

t

Ac

ce

pt

Technical Level

Project Level

Business LevelPr

ogre

ss Is

sues

Chan

ge Is

sues

8Talking Governance

9Talking Governance

MASTERING THE BUSINESS

1. Business Cycle

10Talking Governance

Business Model

Conc

eptu

al M

odel

Technical Model

Managing M

odel

Exit 1

Exit 2 Exit 3

Opportunity

Delivery

ConstructabilityRegulatory

Feasibility

Arch

itect

ure

EngineeringConstruction

2. Scope/WBS Cycle

Strategy The Client (Board) Ownership

1

Main Tasks1.1

Sub Tasks1.1.1

Main Processes1.1.1.1

Sub Processes1.1.1.1.1

Detailed Field Operations1.1.1.1.1.1

Liaison officer Ownership

ProjectManagement

Project ManagerTo

Client (Liaison Officer)

Contractor/Consultants To

Project Manager

Contractor To

Consultants

Technical Audit

Project Audit

Quality Audit

Organization Audit

Business Audit

Financial Audit

Company Audit

11Talking Governance

3. Legal Cycle

PLAN(Official Launch)

REVISE(Contract Sign off)

MEASURE(Appraisal Review)

ACT(Consortium Formation)

Business Model

Technical Model

Managing M

odelConc

eptu

al M

odel

12Talking Governance

ExecutionPlanning

Initiation

Stak

ehol

ding

ProcurementKPIs

Close out

4. Consortium Formation

Project ManagerProject Manager

The Engineer

Architect

Facilities Manager

Contractors

Associated ConsultantsAssociated Consultants

Quantity Surveyor

Client’s Liaison Officer

13Talking Governance

Suppliers

5. RRM Cycle

Area Cost

Business Duration

AB

CD

Value Engineering

Key Performance Indicators

Opti

miz

ation

Earned Value

CostConsultant

TheEngineer

ProjectManager

RatesSpecs

LiaisonOfficer

Delivery Perform

REVISEPLAN

ACT MEASURE

14Talking Governance

6. Project Cycle

VERIFYING

PLANNING

ALIGNING

DELIVERING

OPERATIONREGULATORYPROJECTIZATION

Design Competition

PP 1.0 & Initiation

Design Development

PP 3.0 & Tender

SLA & Baseline

PP 4.0 & Award

PP 5.0 & Change Construction

Final AccountsTaking Over

Testing & Commissioning

Handing OverClose Out

PP 2.0 & Award

S

LL

15Talking Governance

7. Project Plan

16Talking Governance

Meeting business or technical changes

The Project is Constructible

The Project meets Constraints

The Project meets Standards

The Project is Confirmed Feasible

The Project isIdentified

PP 2.0

PP 1.0

PP 3.0

PP 4.0

BaselinePP 0.0

PP 5.0

Launch

Competition

Design

Tender

Award

Progress

Project Charter

Baseline Update

PM’s Assessment

Design Close-out

PM’s Assessment

Change

Scope Statement

Project Basic Data

Schedule & Milestones

Cost & Budget

Configuration Plan

Constraints & Assumptions

SWOT Analysis

Procurement Plan

Quality Plan

Management of Risk

17Talking Governance

IMPLEMENTATIONS

Management Cycle

VISUALIZE CHANGE

ASSESSMANAGE

Opportunity

Resources

Corporate

Delivery

Dynamics

Standards

18Talking Governance

Mind/Report Mapping: Example

Q

Y

N

S

SC4

SC2

Q

SC1

Y

N

Q

Y

N C

Q

N

Y

SC3

C

SC5

F

F

F

F

F

FC

C

19Talking Governance

Continuous Improvement

Recommendations

Record Defects

ProcessStep 1

ProcessStep 2

ProcessStep 3 ClientProvider

Define Measure

Improve Processing

Analyze DataControl Tools

Lessons Learned

20Talking Governance

Reporting

By Project Manager

By Consultant

By Contractor

Acceptance Log

Change Log

Instructions Log

Cost Tracking

Schedule Tracking

Scope Tacking

Progress Report

Daily Safety Report

Project Directory

Communication Log

Inspection Log

Submittal Log

Risk Mgt Log

Safety Log

Eqpt Daily Report

Payments

Labor Daily Report

Daily Progress

Info Request Log

Inspection Rqst Log

Submittal Rqst Log

Status Report

Project Plans

Test Reports

Cash Flow Updates

Procurement Plan

Quality Log

Negative Reporting

Positive Reporting

Status

21Talking Governance

Measures: Example

22Talking Governance

Variance is no more than 5%

No

of T

ech

Requ

est.

No

of T

imel

y Ap

prov

als

No

of R

epor

ts

No

of T

imel

y In

stru

cts Activities

Logged Activities

25%

50%

100%

No

of R

isk

Even

ts

No

of T

imel

y Re

spon

ses

No

of R

eque

st.

No

of T

imel

y Ap

prov

als

No

of V

iola

tions

No

of T

imel

y Re

spon

ses

Progress Change Scope Risk Audit

Quality Measures: Examples

23Talking Governance

-10 %

-3 %

-10 %

-7 %

-5 %

-3 %

-3 %

-3 %

-3 %Schedule Control

Budget Control

Performance Control

Failure to Satisfy The Client

Failure to Meet Planned Budget

Failure to Meet Milestones

Technical Control

Cost Control

Performance Control

Failure to Satisfy The PM

Failure to Minimize Variations

Failure to Satisfy Peers

The Project Manager

5,000 EventsIn 20 Months

The Consultant

20,000 Events

In 20 Months

Technical Control

Safety Control

Performance Control

Failure to Satisfy The Consultant

Failure to Meet the Code

Failure to Satisfy ConsultantThe Contractor

!00,000 Events

In 16 Months 2.80

3.50

2.80

3.00

3.15

3.50

3.50

3.50

3.50

10,000

3,000

10,000

1,400

1,000

600

150

150

150

24

7

24

3

2

1

0.3

0.3

0.3

TotalDail

yDefectsApplications ISO 6σ

VISUALIZE CHANGE

ASSESSMANAGE

PLAN REVISE

MEASUREACT

Quality Cycle

DEFINE CONTOL

ANALYZEIMPROVE

24Talking Governance

Strategy Control

P/R A

Contractor ConsultantProject

ManagerLiaisonOfficer

TheBoard

P S/R/A A

P S/R/A A

P S/R/A S/R/A A

Viability

Planning &Controlling

DesignActivities

SiteActivities

S/R/A

S/R/A

TechnicalLevel

ProjectLevel

ContractualLevel

BusinessLevel

Perform Supervise Recommend Approve

25Talking Governance

Progress Control

P/R A

Contractor ConsultantProject

ManagerLiaisonOfficer

TheBoard

P

P A

P S/R/A A

Viability

Planning &Controlling

DesignActivities

SiteActivities

TechnicalLevel

ProjectLevel

ContractualLevel

BusinessLevel

Perform Approve

S/R/A

S/R/A

S/R/A A

Supervise Recommend

26Talking Governance

Operations Control

P/R A

Contractor ConsultantProject

ManagerLiaisonOfficer

TheBoard

P/R A

P/R A

P A

Viability

Planning &Controlling

DesignActivities

SiteActivities

TechnicalLevel

ProjectLevel

ContractualLevel

BusinessLevel

Perform Approve

S/R/A

Supervise Recommend

27Talking Governance

Technical Control

P/R A

Contractor ConsultantProject

ManagerLiaisonOfficer

TheBoard

P/R A

P/R A

P/R A

Viability

Planning &Controlling

DesignActivities

SiteActivities

TechnicalLevel

ProjectLevel

ContractualLevel

BusinessLevel

Perform Approve

S

Supervise Recommend

28Talking Governance

Corporate Framework

Organizational Structure

Processes & Operations

29Talking Governance

Alignment to Corporate Governance as sole route for

Business Excellence

Legal Standardization

Roles & Responsibilities Matrix

Business Proposition

Resources & Skills

Techniques & Tools

Operational Manuals

Recommendations

Segregation between Roles of Project Management , Lead

Consultancy & Sub Consultants

Adherence to Continuous Improvement as Baseline for

Quality Performance