Strategic Project Governance Flashcards
What is a procuring client
The singular entity contracting with the contractor
How can a procuring client reduce client complexity
Present a single, unified voice to the construction industry (pluralistic)
Resolve internal conflict between internal stakeholders and between external and internal stakeholders
What are projects to the procuring client
Vehicles for furthering a firm’s strategy
1:5:200 rule
A response to the need for improved designs in construction by prioritising values in process planning and execution
How does the client value system interact with client action
Client will change its situation when the situation ceases to reflect its terminal values
Conditions for project success
Client and scope well defined and objectives established
Effective risk and opportunity management
Culture - right people and behaviours
Solutions and outcomes that fulfil objectives
Satisfaction of project requirements and objectives
Project governance aligned to client structures
What is the value chain
5 primary activities (inbound logistics, operations, outbound logistics, marking and sales, service)
4 support activities (firm infrastructure, HR management, technology development, procurement)
Who is a project sponsor
Someone who’s objective is to align client’s strategic project to their construction project
Central in the pluralistic client body
Responsibilities of project sponsors
Link projects to corporate strategy
Accountable for benefits
Collaborate with other projects
Apply project governance
Essential project elements
Business case
Governance board
Sponsor (links project and client organisation)
Scope (time, cost, quality)
Project manager
Project team
Purpose of business case
Establishes the project mandate by defining:
Strategic fit
Option evaluation and choice
Achievability and risk profile
Affordability and payback
Governance and management
How can strategic outcomes be defined
Benefits are desired project outcomes
Disbenefits are undesired project outcomes
Client cares about outcomes, not outputs
How can strategic alignment be monitored
Project must advance the business strategy
Monitoring of aligned objectives through data analysis and meetings enables assessment of strategic alignment
What is the project mandate
A general understanding that the project is the right thing to do
Held collectively by project stakeholders
Secured and sustained by project sponsor
Must evolve if project evolves
A political device that can be quickly and easily lost
Interface between project sponsor and construction team
Project sponsor is directly in contact with PM, holding a middle position between client and contractor
