GR1 - Governance Arrangements

Question 1

Why do organisations need to change?

Answer 1

1. New government policies or initiatives (legislation & policies)
2. Meeting new standards (new legislation & improving services or products offered)
3. Improving competitiveness
4. Changes in technology
5. Upgrading systems or tools
6. Gaining more market share
7. Customers’ changing expectations
8. More efficient in use of resources

Question 2

What happens if an organisation doesn’t change?

Answer 2

-it would stagnate…
-could lead to failure
-customers would move on
-it would not meet the relevant standards
-may be penalised

Question 3

What would need to be changed in an organisation?

Answer 3

-what we work with
-the tools used
-who we use as suppliers
-how we communicate w/ customers, suppliers & other stakeholders
-how organisation is structured
-the organisation’s culture (how we behave, when & where we work)

Question 4

How do we deliver change in an organisation?

Answer 4

-through projects

Question 5

What is a Project?

Answer 5

-a unique piece of work, with a start & end point
-specific objectives
-often has a cross-functional team
-have constraints to work around
-have targets to achieve
-enables change
-delivers an output or deliverable

Question 6

What are the objectives of a project (6)?

Answer 6

-scope
-quality (standards)
-cost
-time (scale)
-risks
-benefits

Question 7

What is scope (objectives)?

Answer 7

-describes what the project has to deliver & all the work involved in doing it (what will or will not be delivered)
-delivered to stated standard known as ‘quality’

Question 8

What is quality (objective)?

Answer 8

-the standard we require
-how good does it have to be?

Question 9

What is cost (objectives)?

Answer 9

-the budget (a constraint)

Question 10

What is time (objectives)?

Answer 10

-duration of the project (a constraint)

Question 11

What are risks (objectives)?

Answer 11

-delivering something new/different
-amount of risks prepared to accept dependent on the relative importance of the other objectives of time, cost & quality

Question 12

Project pyramid objectives…

Answer 12

• Quality
  / \
  / \
  / \
  Scope - - / - - safety - \ - - Risk
  / \
  Cost ———————– Time
  Benefits

Question 13

What are the benefits?

Answer 13

-the purpose of the work
-benefits usually realised post project (after project ends) when the final deliverables have been handed to customer
-they are outside the scope of a project

Question 14

Who realises the benefits?

Answer 14

-the business areas concerned will BUT the SPONSOR needs to make sure that happens
-needs to manage the change of the projects’ outputs into every day use

Question 15

How are benefits achieved?

Answer 15

“Benefits are achieved by the business using the outputs of the project”

Question 16

What is important about safety?

Answer 16

-it shouldn’t be compromised to achieve one of the other objectives
-reduce risk to acceptable level (as low as reasonably practicable)
-conduct risk assessment

Question 17

Project? (Bok Definition)

Answer 17

“A unique, transient endeavour undertaken to bring about change & to achieve planned objectives”

Question 18

Project Management? (Bok Definition)

Answer 18

“The application of processes, methods, knowledge, skills & experience to achieve specific objectives for change”
-making it happen & driving plan forward (scope delivered to right standards, on time, on budget, safely & having taken into consideration the risks such that the end result is capable of being used by the customer to realise the benefits)

Question 19

What does Project Manager have to ensure?

Answer 19

-the project team have the required information & resources, & are in a position to start upcoming work

Question 20

When does the change in a project happen?

Answer 20

-once output created, needs handing over to operational environment
-the use of this output in the operational environment is the change

Question 21

Why might users not adopt a new output?

Answer 21

-if not involved in defining the output, it might not meet their needs
-might object to how or when the output was released

Question 22

Why does the Project Manager need to engage with all stakeholders?

Answer 22

-to understand any objections & resistance
-to deal with the above during the project
-this ensures the important stakeholder engagement

Question 23

Programme? (Bok Definition)

Answer 23

“A unique, transient strategic endeavour undertaken to achieve beneficial change & incorporating a group of related projects & business as usual, or steady-state activities”
-Change management & Benefits realisation (key difference w/ project vs programme)

Question 24

Programme Management? (Bok Definition)

Answer 24

“The coordinated management of projects & business as usual (or steady-state) activities to achieve beneficial change”

Question 25

Difference between a Project & a Programme in terms of delivery?

Answer 25

-project = delivers outputs
-programmes = achieve outcomes & strategic changes; will define & sequence a number of projects as part of its scope

Question 26

What do Programmes monitor of a Projects outputs?

Answer 26

-monitor the adoption in BAU of projects’ outputs
-take remedial action
-measure & report on the benefits

Question 27

What are the advantages of using a Programme to deliver change over multiple unconnected Projects?

Answer 27

-Programmes can set a vision based on the outcomes even when the scope of the business change is not fully defined
-Programmes can allow scope to be adjusted as benefits are achieved
-Programmes can undertake risk management activities at strategic level when there is a high amount of uncertainty & risk which allows projects to focus on the risks inherent in their own activities
-Programmes can manage complex dependencies to ensure the projects are triggered in the right order
-Programmes focus on achieving outcomes & benefits, not just delivering the outputs as a project would

Question 28

Portfolio? (Bok Definition)

Answer 28

-“A collection of projects and/or programmes used to structure & manage investments at an organisational or functional level to optimise strategic benefits or operational efficiency.”

Question 29

Portfolio Management? (Bok Definition)

Answer 29

-“The selection, prioritisation & control of an organisation’s projects & programmes in line with its strategic objectives & capacity to deliver.”

Question 30

Business as Usual (BAU) activities in a Programme vs a Portfolio?

Answer 30

-Programme BAU = management of change & benefits
-Portfolio BAU = day-to-day operations of the business

Question 31

How is a Portfolio developed?

Answer 31

-strategic planning stating organisations’ strategy in short, medium or long term
-in order to achieve strategic goals, the organisation will need to change
-construct & prioritise a portfolio of programmes & projects
-programmes & projects report into the portfolio
-assessment of the portfolio is related back to the strategic plan so that senior management can take corrective action if necessary

Question 32

What does shaping the Portfolio require senior managers to understand?

Answer 32

-the organisation’s ability to resource the whole portfolio
-any changes to the strategic direction or the pace of strategic implementation
-these are influenced by the organisation’s ability to take on changes whilst maintain BAU day-to-day activities

Question 33

What does prioritisation of a Portfolio involve balancing?

Answer 33

-the relative priority of corporate goals
-quantitative & qualitative benefits
-short term gains vs long term gains
-changing external requirements
-availability of key resources or the allocation of ppl
-the risk profile of each programme or project

Question 34

What is required in Portfolio management?

Answer 34

-continual analysis of projects & programmes to ensure they represent value for money & will achieve the strategic aims
-prioritisation of projects & programmes to reflect prevailing business & economic conditions
-monitoring the portfolio to ensure it remains valid
-adjusting the mix of projects, programmes & BAU activities to match the current climate
-dealing with challenges related to scarce or limited resources meaning the recruitment of specific skills with consideration of the current economic & business environment

Question 35

What 3 things does the Portfolio Manger have to balance?

Answer 35

-risk vs return
-timing of projects
-capacity bottleneck

Question 36

Is ‘Refurbishing a kitchen to be completed within 3 months’ an example of a Project, Programme or Portfolio?

Answer 36

-Project

Question 37

Is ‘Introducing a strategic business change over 5 years’ an example of a Project, Programme or Portfolio?

Answer 37

-Programme

Question 38

Is ‘Building a new office block in 3 years & providing maintenance services to existing clients at the same time’ an example of a Project, Programme or Portfolio?

Answer 38

-Portfolio

Question 39

Which of the following are advantages of using programmes to deliver change?
-ability to set a vision without knowing all deliverables
-managing high levels of uncertainty & risk
-reducing the need for stakeholder engagement
-managing complex dependencies between projects
-simplifying project management processes

Answer 39

Answer:
-ability to set a vision without knowing all deliverables
-managing high levels of uncertainty & risk
-managing complex dependencies between projects

Question 40

Identify the missing word:
Projects are undertaken to achieve specific objectives & often have a [ ? ] team.
-fixed
-variable
-cross-functional
-permanent

Answer 40

Answer:
-cross-functional

Question 41

List 2 reasons why an organisation might need to change?

Answer 41

Answer:
-new government policies or initiatives
-meeting new standards

Rationale: Organisations need to adapt to new government policies or initiatives as they may directly impact their operations. Additionally, meeting new standards, whether legislative or aimed at improving services or products, is essential for staying competitive & compliant. Other possible reasons include improving competitiveness, changes in technology, & upgrading systems or tools.

Question 42

EQ: Which role is accountable for ensuring the project links to the organisational strategy? (1 mark)

Answer 42

EA:
-the Project Sponsor is accountable for ensuring the project links to the organisational strategy

Question 43

EQ: What would be 2 consequences of a project not adhering to corporate governance? (2 marks)

Answer 43

EA:
-Increased Risk of Project Failure : Without adherence to corporate governance, the project may lack proper oversight, leading to unmanaged risks, misaligned objectives, & poor decision-making. This increases the likelihood of project failure, resulting in wasted resources & missed opportunities.

-Loss of Stakeholder Trust & Reputation Damage : Failing to follow corporate governance can erode the trust of stakeholders, including customers, investors, & regulatory bodies. This can lead to a damaged reputation, which can have long-term negative impacts on the organisation’s credibility & ability to secure future projects or investments.

Question 44

EQ: What are 2 benefits of a project following corporate strategy? (2 marks)

Answer 44

EA:
-Alignment with Organisational Objectives : When a project follows corporate strategy, it ensures that the project’s goals & outcomes are aligned with the broader objectives of the organisation. This alignment maximises the project’s contribution to the overall strategic goals, ensuring that resources are used effectively to achieve desired business outcomes.

-Enhanced Decision-Making & Resource Allocation : Following corporate strategy provides a clear framework for decision-making & resource allocation. It helps ensure that the project receives the necessary support & resources, & that decisions are made in a manner consistent with the organisation’s priorities & long-term vision. This leads to more efficient project execution & management.