How many successful projects have you seen in your organisation? I am talking not just about the big capital expenditure projects, such as new builds or ERP implementations, I am also talking about smaller projects, like streamlining company reporting, or the never-ending drive to improve output. Project failure includes projects running over budget, taking longer than planned or simply not achieving their goal.
Projects fail for many reasons, but more often than not, the root cause for all types of project failures is poor project governance.
Usually, a project is kicked off with a detailed project plan and a clear end-point in mind. The trouble starts with the project update meetings: poor attendance, milestones missed, and complaints about too many projects and too many meetings.
Had the project manager started with proper project governance, they could have ensured proper buy-in, clear alignment to the overall organisational strategy as well as clear rules of engagement.
So, before you jump in to your next project, ask these 15 questions:
1. Do you have a business case for the project?
Good project governance starts with a detailed business case for the project. The business case will drive the direction of the project, allow for stakeholder buy-in, ensure that if there is scope creep, it is for the right reasons and ensure there are clear rules of engagement. A good business case must address the following 9 questions.
2. How does this project align to the organisational strategy?
This is the most important question the project manager and owner must answer. This is how you ensure stakeholder buy-in and get the project sponsor to champion the inevitable costs of the project. If the project does not align with the overall business strategy it should not be considered.
Consistently applying this rule will create a culture where every employee understands that projects support the organisational strategy, which will drive buy-in and commitment, which in turn will aid in delivering successful projects.
3. What problem does the project solve?
If not a problem, maybe there is a risk that the business will face or a regulatory issue that needs to be addressed. Alternatively, it may be an opportunity that has recently arisen. The business case must clearly show the before and after states. Knowing the expected outcome helps create focus and reduces the risk of scope creep.
4. How much will it cost?
All projects have a cost, whether they are large capital projects, such as installing a new manufacturing line, or small, single person research project. These costs need to be accounted for, and the return must be quantified. Ensuring that all potential costs are included, such as transport/logistics costs, salary and wages etc. will ensure that the project costs are less likely to overrun if the project is greenlit. The returns, both financial and goodwill/market perceptions, must be quantified, and, of course, be greater than the costs.
And what if there is no return on investment? Then, unless it is a regulatory requirement, the project should be halted.
5. Who needs to be involved, informed and who will be affected?
All the stakeholders in the project must be listed. A stakeholder is not only someone whose skills or knowledge are required for the project, but also those internal and external to the organisation who will be impacted by the project. All these must be listed and involved in the project initiation. This will ensure buy-in, and for the project management office, give an indication of resource requirements, thus preventing individuals being overloaded with project work.
6. What are the risks to the project?
One of the most important parts of ongoing project governance is risk management. It starts with listing all the potential risks and issues that the project, not the organisation, may face. Each risk should ideally have a mitigation plan. This needs to be regularly reviewed and updated through-out the duration of the project. Failing to do this will lead to project overruns at the very least.
7. What will the project address and even more importantly what will the project not address?
Scoping any project is one of the most important aspects, as any experienced project manager will tell you. Scoping the project upfront will assist with buy-in by stakeholders and give the project clearly defined boundaries. These boundaries need to be enforced to ensure there is no scope creep. Scope creep is a major cause of project failures, clearly defining what is in and out of scope can reign in the creep.
8. What other options were considered?
Much like any big purchase, you do your research get multiple quotes before you commit. It is important to outline what other options were considered. The business case must also detail why these options where not chosen. This will ensure that the best option for the organisation is chosen, and prevents misfeasance.
9. How will the project outcomes be accomplished?
The business case should also have a high-level breakdown of the project plan. It should show what the project phases are, how goods and services will be procured as well as how progress will be reported. This should also list critical milestones and the necessary decision points. Doing this at a high-level will ensure that the right stakeholders are identified and these can ensure that all aspects required for the desired outcome are addressed.
10. How do we measure success?
This question links back to question 3 – what problem is solved. Yes, projects can be measured by being on time and in budget, but did it truly solve the initial problem? This is best illustrated by an example: what if the project was to install a new manufacturing line. The build, installation and commissioning all happened on time, and there were no overruns, but the line is not producing at the specified rate. This project should be seen as a failure, as the return on investment will not be realised.
These first 10 questions must be addressed before the project should even commence. The next step for the project would be the planning phase. This is where project plans, Gantt charts, critical paths, resourcing et al are detailed out and firmed up. Progress is tracked against the plan during the project implementation phase and what most people think of in terms of project management. Good project governance demands that the next 5 questions also be answered.
11. Do you have regular feedback sessions?
Feedback sessions with the Steering Committee, project management team, and for larger projects, for each stream, must be scheduled regularly and be in the attendees’ diaries. Attendance is mandatory and organisational culture should re-enforce the importance of these meetings. These sessions should be chaired by the project manager and need to address the following:
· Project progress
· Action steps from previous meetings
· Actions to be completed by the next meeting
· Risks, issues and concerns (see question 13)
· Project changes (see question 14)
Anything that cannot be resolved during these mandated sessions, must be escalated as per the business case. This usually means that problems are escalated from the stream to the management team to the Steering Committee.
12. Do you have standard feedback reports?
Not only should the feedback sessions be regularly scheduled and compulsory, their format and reports should be standard. Arbitrary scheduling and formats may cause important elements to be missed and vital decisions delayed. Having standardised feedback formats guarantee that all stakeholders know what is required and that the meetings can efficiently conclude normal business, so that time can be spent addressing issues.
13. Do you do regular Risk Reviews?
The business case requires a risk review as discussed in question 6 above, but good project governance requires regular and continuous risk reviews. While this can be part of regular feedback meetings, additional risk review sessions must be held to ensure new risks are added and that all mitigating actions have been taken to address said risks.
14. What about changes?
Change orders or variance orders are often used in the construction industry, but often completely ignored in other projects. Sometimes changes are required, but they must be logged, reasoned and approved by the Steering Committee. This will ensure that stakeholders stay informed as well as reduce unnecessary scope creep.
15. Are you also noting what lessons were learnt?
Throughout the project it is important to note any lessons learnt, both the positive and negative. This will ensure that the same mistakes in the case of the negative, are avoided and that project managers can build on the positives. This will drive more successful projects.
Doing all of the above may not guarantee a successful project, but I can almost guarantee that not doing this will lead to a failed project.