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Chapter 1: Introduction > 1.9 GOVERNANCE AND CONTROL - Pg. 11

Introduction | 11 resources to help deliver that vision. Individuals brought into the P3O are often selected simply because they are available, not necessarily because they have been trained for the role. This is not a criticism; it is a fact of life for many P3Os that they do not reach or deliver their full potential because they find themselves endlessly having to justify their existence, rather than being allowed to contribute to the delivery of organizational objectives. What many senior managers fail to appreciate is that a mature and effective P3O model adds real value by helping management to reduce risk, effect control and also support the delivery of change. A mature P3O model costs less to operate as a percentage of overall portfolio spend, and adds value both to staff and to its customers. P3Os evolve over many months and years, and the best have been planned to lead the evolution in P3RM maturity across an organization (or department) and similarly evolve their own individual competencies, functions and services. In an immature or new P3O, the services and functions offered are limited to data gathering, reflecting the lack of competency of individuals, whereas in a mature P3O, individuals will possess the competencies to offer a wider range of functions/services, challenging and using the data gathered. Functions and services are tailored to individual programmes and projects with an underlying performance culture. See section 3.6 for more on desired skills and competencies. Mature P3O models provide: Governance ­ supporting governance (including organization. The whole tone and approach is set by the person at the top. These concepts are explored further in Chapter 3. 1.9 GOvERNANCE AND CONTROL The P3O model underpins organizational governance and control that runs through all change programmes and projects within an organization and the transition of change into business operations. Formal decision enablement rules ­ who makes what decisions, when and what information do they require ­ should be developed, and the P3O model is responsible for ensuring information is escalated and cascaded appropriately through the different levels of the portfolio, programme and project management environment. This should drive appropriate decisions to main board level. Where a single P3O unit exists, this may be easier to implement. Where multiple offices exist in an overall P3O model, both permanent and temporary, then rules should be established regarding levels of plans; dependency tracking; examination and escalation of risks, issues and changes; and roll-up of progress information. Overall the intention is to ensure the right decision is taken by the right person or group, based on the right level of supporting information. There should be a single source for any piece of data, which is then amalgamated appropriately through the layers of governance and decision-making. The same rigour should be applied to restraining decisions, ensuring stage gates are not passed through without the appropriate authority and sign-off, ensuring Management Boards are equipped with progress reports, exception reports and options. P3Os should provide a comprehensive set of data to enable governance decisions and be resourced with individuals with the right level of expertise and competence to advise management boards appropriately. Where a Centre of Excellence (COE) exists it should define the standards to be applied to information management and provide appropriate tools to allow for ease of roll- up of information. The COE should also define standard methods of working (such as tailored uses of MSP, PRINCE2 and M_o_R) and assure their use across the portfolio. An example of enabling consistency of decision-making is to have a single approach to the setting of traffic-light alerts across the portfolio of change, based on agreed tolerances. structures and accountabilities) through scrutiny and challenge, ensuring return on investment through effective management of delivery and risk Transparency ­ relevant, accurate and timely information (single source) to support decision-making Delivery support ­ ensuring programme, project managers and operational business managers do things right (competency and skills) and do them well (assurance), reducing bureaucracy and encouraging consistency Reusability ­ embedding industry and sector best practice and sharing lessons learned Traceability ­ history and documentation. The best P3Os are led by a senior P3RM or strategic/ business planning professional (dependent on the focus of the P3O unit) with the influence, experience and credibility to gain commitment from all levels in the