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Windows in Program Management Governance Structures

October 18, 2008 | Author: PM Hut | Filed under: Program Management

Windows in Program Management Governance Structures (#4 in the series Structure of Program Management Governance)
By Robert Prieto

This is the fourth 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 windows into the program management effort that must exist for the program to be successful.

Windows into the Program Management Effort

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 a strong foundation that was described in the prior article in this series and “windows” which are discussed here. These windows must provide:

  • Assurance - activities to verify and validate all operations delegated to the program manager as well as his readiness and capacity to perform. Objective assessment standards must be clearly agreed to at the outset of the project. Key elements of internal conformance and accountability include:
    • documentation of the objectives, roles and powers of the owner’s representative, program director and executive or steering committee;
    • internal audit and review processes and functions;
    • documentation of objectives, roles and powers of other program committees (for example, HSE);
    • owner and program manager business planning arrangements that aim to make conformance and accountability integral to the way the organisation meets its business and project execution objectives objectives;
    • performance planning and monitoring arrangements;
    • fraud control plans and processes, including any planned inspector general type structures and how integrated into project execution processes;
    • up to date and consistent rules relating to financial and other delegations, and
    • clear and widely communicated policies on the standards of professional and ethical behaviour.

    An organisation with effective internal conformance and accountability will have staff and management who know, understand and communicate clearly their own roles, powers and responsibilities and how these relate to others in the organisation.

  • Alignment - activity to support higher level vision, goals and objectives . Alignment sessions are ofter uncomfortable to participants since by nature they are designed to resolve policies, conflicts and drive accelerated decision making and action. Alignment is further reinforced by government systems and processes such as:

    • Effective corporate, business and program execution planning. It is important to ensure such plans down to, and including, individuals’ performance plans, are aligned and mutually reinforcing. This reduces the potential for unclear or conflicting objectives or gaps in execution planning.
    • Clear and robust budgeting and financial planning systems, overseen by an appropriately resourced finance committee or equivalent.
    • Various reporting and measurement frameworks for financial and non-financial aspects of the organisation’s specified outcomes and outputs.
    • A structured and regular system of performance measurement and monitoring aligned with the organisation’s outcomes and outputs structure.
    • Consideration of program wide and cross-project issues in policy development and program execution. Issues related to joint or shared accountability, risks and responsibilities can affect governance arrangements.

  • Improvement - activity to continuously assess performance, research and develop new capabilities and systemically apply learning and knowledge to the program. Performance criteria must provide the program manager with the necessary authority to innovate and drive new systemic continuous improvements into the project execution process.

  • Business Process Improvement – activity undertaken by the program manager that not only identifies business process improvement actions within the program management function but also in the activities undertaken by and between those suppliers and service providers managed by the program manager. Business process improvement should also identify processes changes in the owner organization that would further reinforce the efforts of the program manager in the achievement of program success. The executive sponsorship requirements outlined under “governance” are essential to success of these efforts.

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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