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Strong Foundations in Program Management Governance Structures

October 7, 2008 | Author: PM Hut | Filed under: Program Management

Strong Foundations in Program Management Governance Structures (#3 in the series Structure of Program Management Governance)
By Robert Prieto

This is the third part of a five part series looking at the governance structure that should be applied in the use of a program management delivery form. This part reviews the key ingredients which comprise a strong foundation in program management governance structures.

Program Management Governance Structures

In the course of implementing a program management delivery approach, there are fundamental practices and governance features which must be put in place. These include (but are not limited to) strong foundations built on:

  • Governance - the structure and process to control operations and change to performance objectives. Sufficient authority must be provided to the program manager to take timely actions for program success while at the same time assuring that owner driven changes to program objectives are strategic in nature and not merely expressions of sub-group preferences. This tradeoff of flexibility for improved outcomes typically represents a major change management challenge even in the contractual negotiation stage. Governance structures must be supported by a well defined framework for program sponsorship at both the program and executive levels in the owner and program management organizations. Governance structures must provide for clear leadership and establish the requisite ethical, safety and other cultural foundations that successful programs require.

    Critical success factors for governance leadership:

    • shape strategic thinking;
    • achieve results;
    • cultivate productive working relationships;
    • exemplify personal drive and integrity; and
    • communicate with influence.

  • Standards - activity and limits that define the performance “architecture” for the programs systems, structures, components and practices that will aid in the capture of the value inherent in a rpogram management approach.
    Integration - activity to optimize performance across the program value chain functionally and technically. Program management may result in a reconfigured or perhaps even new value chain. Traditional owner – supplier relationships may need to be modified to provide the program manager with the authority and freedom of action required to fully integrate all elements for success. Certain owner functions may need to take on a shared management approach (risk and contingency management are examples).

    Key components of effective risk management, for example would include:

    • robust systems in place
    • detailed consideration of the risks facing the organisation as a whole as well as major policy or strategy developments and/or operational tasks or projects;
    • establishment by management of appropriate processes and practices to manage all risks
    • analysis and review of risk management approaches; and
    • the active involvement in risk management of everyone in the organisation.

    To be effective, the risk management process needs to be rigorous, structured and systematic. Emphasis is on real actions and outcomes so that it does not become essentially a process-based exercise. Effective risk management requires an organisation to have a risk-assessment culture whereby all major decisions are considered in terms of risk management principles.

Program Management Governance Structures

Governance Structures increase the confidence in Program Management Strategy and Organization

Robert Prieto, Senior Vice President

Robert Prieto is senior vice president for Fluor, where he leads strategy for Fluor’s Industrial and Infrastructure group. Mr. Prieto focuses on the development and delivery of large, complex projects worldwide.

Prior to joining Fluor, Bob served as chairman of Parsons Brinckerhoff Inc. As head of PB’s board of directors, he was responsible for overseeing management performance, establishing top-level policies, and ensuring the firm’s continued long term success.

He is a member of the executive committee of the National Center for Asia-Pacific Economic Cooperation, a member of the board of directors of the Business Council on International Understanding, a member of the board of the Civil Engineering Forum for Innovation, and co-founder and member of the board of the Disaster Resource Network. He currently serves on the National Research Council’s committee framing the challenges on Critical Infrastructure Systems. Until 2006 he served as one of three U.S. presidential appointees to the Asia Pacific Economic Cooperation (APEC) Business Advisory Council (ABAC) and served as chairman of the Engineering and Construction Governors of The World Economic Forum and co-chair of the infrastructure task force formed after September 11th by the New York City Chamber of Commerce. He is also a member of the board of trustees of Polytechnic University of New York, and was previously selected as alumni of the year by its New York Chapter.

He has had an executive sponsorship role in the World Trade Center Transportation Hub; West Coast Rail Modernization; Train Protection and Warning System; Level 3 Communications Long Haul Network and Superconducting Super Collider.

Prieto holds a master of science in nuclear engineering from Polytechnic University of New York and a bachelor of science in nuclear engineering from New York University.

Fluor Corporation (NYSE: FLR) provides services on a global basis in the fields of engineering, procurement, construction, operations, maintenance and project management. Headquartered in Irving, Texas, Fluor is a FORTUNE 500 company with revenues of $14.1 billion in 2006. For more information, visit www.fluor.com.

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