Perspective Competence Area

4.3.2 - Governance, Structures and Processes

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What is Corporate Governance?
• Good governance relates to consistent management, cohesive policies, guidance, processes and
decision- rights given to an area of responsibility and proper oversight and accountability.
• Corporate Governance is the system by which companies are directed and controlled. The Board of
Directors are responsible for governance of an organization.

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Corporate Governance

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Corporate Governance
• Company governance essentially requires balancing the interests of many stakeholders in a
company – these include its shareholders, management, customers, suppliers, bankers,
government and the community. Since corporate governance also offers the framework for
realizing a company’s objectives, it encompasses nearly every sphere connected with
management, from action plans and inner controls to performance measurement and corporate
and business disclosure.
• Corporate governance is a few systems, principles and processes, about just how companies are
guided and controlled, it regulates the way in which boards manage the running of any company
by their executives, and how board members are liable to shareholders and also the company.

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Corporate Governance - Role

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Governance Mechanisms
 Internal
 Committees – Procurement Audits, Quality Audits, Performance Audits, Health, Safety
and Environment Committee, Compensation & Rewards
 Audit and Accounts Department
 Legal & Contracts Cell, Compliance, Regulatory Control Cell
 Standards Cell
 External
 Public Relations , Communications & Media Cell
 Government Liaison, Corporate Social Responsibility Cell

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Project Governance Model

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PROJECT WORK-BREAKDOWN STRUCTURE

Project Phases Activities Tasks

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 What is management?

Management is getting things done with and through people.

Management functions :
planning
organizing
staffing
leading or directing, and
controlling an organization (a group of two or more people and resources being utilized to
accomplish a goal).

Resourcing encompasses the deployment and optimal utilization of human resources, financial
resources, technological resources and natural resources .

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 Characteristics of a project

•Temporary – have a definite beginning and an end

•Unique – no two projects are identical

•Pre-defined goals & objectives – financial/ social /economic

•Budgets & schedules – prefixed cost budget and timeframe

•Uses Resources & Manpower – both are limited

•Quality / Performance – determined/specified at beginning

•Face Risks – known and unknown risks

•Have a Project Life cycle – Number of phases from start to end

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 Aspects of a Project

Technical/Hard Socio-cultural/Soft
Aspects Aspects
Scope Leadership
WBS Problem solving
Schedules Teamwork
Resource Allocation Negotiation
Baseline Budgets Politics
Status Reports Customer expectation

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 SOME TERMS USED
•Portfolio – A set of projects and /or programmes, which are not necessarily related to a common
objective, brought together for the sake of control, coordination and optimisation of the portfolio
in its totality. Portfolios are aligned to the strategy of the organization and deliver additional
benefits.

•Programmes – Achieve Strategic Goals - Management of a coherent group or a collection of

projects that are inter-related to a common objective to deliver business benefits. Significantly
change business processes and methods. Programs have outcomes.

•Operations – Carrying out the day-today work of the organization. Routine, repetitive,
maintaining status quo. Ex: Taking back-ups of data and programs of IT systems.

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Project….Programme ….Portfolio

Portfolio

Project Programme Programme

Project Project Project

 Operations Projects
Unique, Temporary
Ongoing/ Permanent, (Flyovers/Dams
Repetitive Construction ,
Chemical/Cement Plants)
Have tangible outputs
Orientation is near future (1-2
Orientation is for Present years)
Maintain existing
Create new products/services
products/services
To achieve the objectives of
To sustain the business the project & then close
the project
Programmes
Strategic intent and long term
( JNNURM, NREGA, Pulse
Polio, TB Eradication)
Have outcomes Change
Orientation is medium, long
term (3-7 years)
Business processes/ systems
undergo change
To sustain/grow the business
and have competitive edge
in marketplace
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 Advantages of a Project Life Cycle

 Allows better planning, scheduling, estimating & control

 Work can be broken up into manageable pieces or phases - each phase has
specific deliverables
 More efficient allocation of all resources –requirements vary with phase
 Better cost control – funds needed for next phase, procurement can be
planned & released as needed
 Allows progress review by stakeholders before going to next phase - go/no-go
decision gates
 Allows for better risk management
 Tasks are identified more easily

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 Life Cycle - Characteristics

Opportunity to add Value

High

Low Cost to make change

Time

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 Life Cycle - Characteristics

Uncertainty of Success/ Risk

High

Low Amount at Stake/ Sunk Cost

Time

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 Integrated approach
• For successful completion of a project, all aspects are to be integrated to achieve
the goals/objectives of the project including
• resources,
• knowledge level,
• competency,
• experiences,
• motivation,
• innovation and technologies etc.
• It takes into consideration the interdependencies
• This is an objective oriented approach and relevant to problem solving so as to
remove hurdles on the path to progress.
• The project director is expected to be capable in achieving effective integration to
drive the project towards its time bound goal.

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 Steps Involved

Project Management has been defined as the application of knowledge, skills, tools
and techniques to a broad range of activities in order to meet the requirements of a
particular project.

The process of directing and controlling a project - may be further divided into five
basic phases:

1. Project conception and initiative 2. Project definition and planning

3. Project launch and execution 4. Project performance and control

5. Project closure

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 Choice of Projects

Compliance
Projects

Strategic Projects Operational Projects

Various forms of Project Organizations
- Project as part of Functional Organization
staff from existing departments is temporarily pooled & placed under
a project manager for the duration of the project.
- Pure Project Organization
project organization which is separated from its parent organization and is an
independent unit with its own staff, budget and other resources.
- Matrix Organization
A combination of the above two structures and thus has been flexibility in
adopting different forms as per the requirements of different projects and
programmes.

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 Functional Organization
 Grouped by function or
department
 Each employee has clear
boss
 Interdepartmental
communication via
Functional head
 Staff & Project lead assigned
part time to project

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 Matrix Structure

 Staff assigned to project

report to both Functional and
Project Manager
 PM assigned full time to
project
 PM and Functional Managers
share decision making and
authority

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 Project Structure
 Projects main work of
organization and structure
geared for projects
 All staff report to PM
 PM has complete authority and
independence
 Project work given maximum
importance

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 Programme Orientation

Programme Orientation in an organization is the decision to apply and

manage the concept of managing by programmes and development of the
competence of programme management to implement their strategic plans

Need for Programme Orientation

• Projects part of the programme not identified at the beginning.
• Later projects in the programme depend on the outcome of an earlier project.
• End dates are defined only where the benefits are realised or when the benefits
are handed over.
• A programme oriented organization experiences frequent addition of new
programmes

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Programme Governance

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Programme management and control

 Central programme controller

 Change managers
 Programme director
 Programme steering committee
 Programme management methodology, techniques, tools and
procedures

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 Steps in Portfolio orientation
• List and prioritise programmes and projects in line with the
organisation’s strategies and goals
• Allocate resources to the portfolio. Balance supply with demand.
• Define standard processes, tools and reporting schemes to be used in
all Programmes/projects of the portfolio and establish support
functions.
• Continuously monitor and control the programmes/projects of the
portfolio.
• Initiate corrective actions.
• Delete programmes/projects from the portfolio when not relevant ; Or
when business strategy has changed
• Ensure there is a feedback mechanism for lessons learnt.
• Select and add new projects/programmes to the portfolio.
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Project management is no longer a special need management
It is rapidly becoming a standard way of doing business

Change is the only constant

in today’s corporate world

Companies have to manage

CHANGE

…. All the time……

Have to constantly innovate

Have to transform

Have to ride the crest ..

Surf the wave or perish

•Review and define the Review
Mission
organizational mission
External Internal
Environment Environment

•Set long range goals and New Goals

objectives
Portfolio of
strategic choices

•Analyze and formulate strategies Strategy

to reach objectives Implementation

Project
Selection
•Implement strategies through
projects Projects
Project Management -Constraints

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 Project Management Success

ICB has defined Project Management Success as ‘The

appreciation of Project Management Results by the relevant
interested parties

Key Ingredients  Project Plan

 Project Manager  Monitoring System
 Team Members  Learning From Learning
 The Project Itself Curve
 Risk Management
 Organization

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 Environment
 Other Aspects for Success

 Strong Centralized PMO  Quick Resolution Of

Issues
 Effective Communication
 Macro – Manage
 Managing Schedule
Effectively  Keep Team Members
Motivated
 Tight Scope Management
 Set Expectations &
 Follow Repeatable PM Milestones Upfront
Practices
 Reward System
 Manage Stakeholders

 Quality of Work 33