OR1 - Governance

Question 1

Governance establishes?

Answer 1

-The behaviour expected from the staff
-The management structures which enable effective escalation of issues and change requests
-The roles and responsibilities of those involved in decision making to be clearly defined
-Company policies and standards relating to ethical and professional standards and behaviours
-An effective decision-making process

Question 2

Governance (Bok Definition):

Answer 2

“The framework of authority & accountability that defines & controls the outputs, outcomes & benefits from projects, programmes & portfolios.”

AND

“The mechanism whereby the investing organisation exerts financial & technical control over the deployment of the work & the realisation of value.”

Question 3

What does governance enable?

Answer 3

-enables senior managers to ask key questions & be confident that the answers are accurate, timely & enable them to make effective decisions

Question 4

What are the 3 levels of governance within an organisation?

Answer 4

-corporate governance
-business as usual (BAU) governance
-business change governance
-(There is an interaction between these 3)

Question 5

What is corporate governance concerned with?

Answer 5

-concerned with the organisation’s vision, mission & strategic goals/objectives

Question 6

What is business as usual (BAU) governance concerned with?

Answer 6

-concerned with the organisation’s operational activities & making sure these are undertaken in the appropriate way

Question 7

What is business change governance concerned with?

Answer 7

-concerned with the way the organisation develops & delivers portfolios, programmes & projects

Question 8

Effective governance is dependent on an organisation having…?

Answer 8

-Policies: for risk management, finance, ethical & professional behaviour which informs staff about what is expected from them & ensures they’re doing things correctly
-Regulations: compliance with relevant industry legislation
-Functions: defines the roles & responsibilities of those involved in the decision-making process
-Defined limits of authority: set at the appropriate level to enable staff to manage projects without unnecessary delays

Question 9

What is a RACI matrix & what does it do?

Answer 9

-Responsibilities Assignment Matrix
-defines roles & responsibilities:
-those Responsible for making decision
-those Accountable for decision
-those Consulted before decision made
-those Informed of decision

-confirms for Senior Managers that decision making is efficient & effective; & ensures the investing organisation maintains the capacity & capability to deliver

Question 10

Benefits of Governance (7)?

Answer 10

-clear link to strategic direction
-clear ownership & leadership
-effective stakeholder engagement
-proven project & risk management
-clear understanding of & links to, suppliers
-consideration of long term value rather than short term gains
-can be audited

Question 11

Benefit of Governance - Clear link to strategic direction?

Answer 11

Governance ensures portfolio is aligned to the strategic direction of the organisation. Similarly, at project & programme level, governance will ensure that these change initiatives are aligned to the organisation’s strategic direction whether part of a portfolio or not.

Question 12

Benefit of Governance - Clear ownership & leadership?

Answer 12

Governance ensures that each change initiative has a suitable governance board, sponsor & project manager & that all members understand their responsibilities for accountability & decision making. A RACI matrix is used in this area.

Question 13

Benefit of Governance - Effective stakeholder engagement?

Answer 13

Key part of governance is ensuring that stakeholders are engaged in the change initiative at an appropriate level. Those with accountability for the initiative should ensure that stakeholder analysis & engagement activities are performed appropriately.

Question 14

Benefit of Governance - Proven project & risk management?

Answer 14

All governance systems will include risk & issue management. This ensures that these important matters are not overlooked & managed properly will help to ensure project success.

Question 15

Benefit of Governance - Clear understanding of, & links to, suppliers?

Answer 15

Procurement activities involving external supplier must be managed in such a way that they are open , fair & above board in all respects. Governance will ensure this happens & can be demonstrated to anyone who needs or has a right to know.

Question 16

Benefit of Governance - Consideration of long term value rather than short term gains?

Answer 16

Change initiatives be they projects, or programmes, must be aligned to the strategic aims & objectives & governance ensures that those involved look at the long-term value as well as the short-term gains which may be made. This provides a balanced approach to investment in the initiative.

Question 17

Benefit of Governance - Can be audited?

Answer 17

Having processes & procedures in place which support governance can be audited. Audits are independent & as a result the senior management team gain assurance, or confidence, that the initiative is being managed correctly. Where problems are highlighted senior management have the opportunity to instigate corrective action. Audits also provides the opportunity to highlight areas where the governance regime can be improved.

Question 18

Which of the following are benefits of good governance in a project?
1. clear link to strategic direction
2. increased project costs
3. effective stakeholder engagement
4. proven project & risk management
5. higher employee turnover

Answer 18

1- clear link to stratic direction
3-effective stakeholder engagement
4-proven project & risk management

Good governance in a project ensures a clear link to the strategic direction, effective stakeholder engagement, and proven project and risk management, all of which contribute to the overall success and alignment of the project with organisational goals.

Question 19

Identify the missing words in the following sentence:
Good governance requires roles and responsibilities to be clearly
defined, and a [?] provides a useful tool for this activity.
1. Project charter
2. Gantt chart
3. RACI matrix
4. Work breakdown structure

Answer 19

3-RACI matrix

A RACI matrix is an effective tool for defining and clarifying roles and responsibilities in a project. It helps identify who is Responsible, Accountable, Consulted, and Informed for each task or decision, ensuring clarity and accountability within the team.

Question 20

Identify one of the three levels of governance within an organisation.

Answer 20

Example Answer:
Corporate.

Rationale:
Corporate governance is one of the three levels of governance within an organisation. It focuses on the organisation’s vision, mission, strategic goals, and objectives. The other two levels are business as usual (focused on operational activities) and business change (focused on developing and delivering portfolios, programmes. and projects). Understanding these levels helps ensure that governance is effectively applied across all aspects of the organisation.

Question 21

Explain how policies and regulations impact the governance of project management in an organisation.
Defining policies and regulations. (1 mark each)

Answer 21

Example answer:
Policies are formal statements issued by an organisation to guide its decisions and actions. They are intended to ensure consistency and compliance with the organisation’s strategic goals, legal requirements, and ethical standards. For example, a risk management policy might outline the organisation’s approach to identifying, assessing, and mitigating risks across projects. Regulations are mandatory requirements established by governments or industry bodies that organisations must follow. These can include health and safety regulations, environmental standards, or
data protection laws. Regulations ensure that organisations operate within the legal framework and meet external compliance standards.

Question 22

Explain how policies and regulations impact the governance of project management
in an organisation.
Impact on project management governance. (3 marks)

Answer 22

The impact on project management governance include:

1. Ensures Compliance and Accountability:
   Policies and regulations provide a framework that ensures all project activities comply with internal and external legal requirements. This compliance helps in maintaining accountability within the project team and towards external stakeholders, reducing the risk of legal penalties and reputational damage.
2. Standardises Processes and Procedures:
   By defining how tasks should be carried out, policies and regulations help standardise project management processes and procedures. This standardisation leads to consistent and repeatable practices across projects, facilitating better control, monitoring, and evaluation of project performance.
3. Enhances Decision-Making and Risk Management:
   With clear policies and regulations in place, project managers and teams can make informed decisions based on predefined guidelines and standards. This clarity reduces ambiguity and helps in identifying
   and managing risks more effectively, leading to higher project success rates.
   Effective governance of project management relies heavily on well-defined policies and regulations. These elements ensure that project activities align with organisational goals and comply with legal
   standards. By standardising processes and enhancing decision-making capabilities, policies and regulations contribute significantly to the successful delivery of project outcomes and benefits.