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PM-Lecture-5

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Dr Anna Michalska

Associate Professor (Teaching Focused)

Lecture 5: Project
Ethics and Governance
Learning outcomes

Understand the importance of social responsibility


in the context of project management
Discuss ethics as part of the Project Manager’s role

Consider the Project Management ‘code of conduct’

Understand the role of project governance


in relation to managing projects
Social Responsibility
Socially-oriented projects

https://www.youtube.com/watch?v=f8unx8-pZxg

The Eden Project is more than just


botanical garden, says its creator.
It is a place where people are encouraged
to think differently. Tim Smit now hopes
to use his inspirational vision to effect wider
social and environmental change.
Ethics as part of the Project Manager role

Project Managers face ethical dilemmas


• …when there are two or more options, but
neither of them are the best ethical or moral
decision

• Imagine that whatever decisions you make


were going to make the national news.
Would you be comfortable?
“ What is ethics?

“Set of recognised
standards of conducts
and behaviour within
the profession”.
(APM, 2012)
Legal issues vs ethical issues

Bribery is illegal, but…

• Low balling
• Bid rigging
• Compromising health and safety
• Withholding important information
• Exaggerating state of the project

… are unethical
The relationship between ethics and the law

Ethics

“Grey
area”

Law

(Crane and Matten 2004)


Code of Conduct
APM / PMI Code of Ethical Behaviour

Covers:
• Honesty
• Confidentiality
• Accepting responsibility
• Not accepting gifts / bribes
• Upholding the value and mission of the profession
• Working transparently
• Accurate reporting
What next?

We know how we should act as project


managers, but what measures should be
built into the project to encourage
transparency and clear decision making?
The role of project governance
“The process of project decision making and the framework,
models or structures that are established to enable this. It is
recognised as a critical success factor for the delivery of projects.”
Garland (2009)

“The function of governance is to ensure that an organisation or


partnership fulfils it’s overall purpose, achieves it’s intended
outcomes for citizens and service users, and operates in an
effective, efficient and ethical manner.”
OPM (2004)
Project Governance: Origin

• The word governance derives from the Greek verb


kubernaein [kubernáo] (meaning to steer)

Kubernates

Steersman of a Trireme
Three roles of a steersman

1. Set Direction
2. Make Decisions
3. Oversight

(Adapted from Clayton 2018)

https://www.youtube.com/watch?v=qoro7iML1DA
What's wrong with this structure?

(Garland 2009)
PRINCE2 team
structure
Project assurance
• Aims to ensure a project is delivering what is expected by providing
an independent assessment of how the project is progressing
• Reports to the project board
• Can be as extensive as the project itself, particularly where safety is a
concern, or the project is publically funded
(Maylor and Turner, 2022)
Can the Project Manager conduct
the Project Assurance role?
Four principles of effective governance

• Ensure a single point of accountability for the success of the project


• Ensure project governance is service delivery focussed (customer-led)
• Ensure separation of stakeholder management and project decision
making activities
• Ensure separation of project governance and organisational governance

(Garland 2009)
SADBET

https://www.youtube.com/watch?v=i9z9pIhDYNY
SADBET

• The project needs to be strategically aligned with the goals of the organisation
• Accountability needs to be defined for governance.
• Disclosure of information about the project must be open and honest
• Business case must be in place and align with the corporate strategy
for every project
• Evaluation of project by external peer groups is a required to ensure
it remains in control
• Termination of projects that do not have a viable business case must be done.
Golden
thread of
delegated
authority

Essential elements
of good project
governance
Alignment to
Decision
Reporting organisational
(Murray 2009) objectives
gates

Independent
assurance
Gateway reviews

• Peer experts outside


the project

• Gate or end of stage


assessment
Governing project life cycle

(Garland 2009)
Learning outcomes - checklist

Understand the importance of social responsibility


in the context of project management
Discuss ethics as part of the Project Manager’s role

Consider the Project Management ‘code of conduct’

Understand the role of project governance


in relation to managing projects
References and further reading
• Andersen, E. (2008) Rethinking Project Management. An organisational perspective. Gosport,
Prentice Hall

• Garland, R. (2009) A Practical Guide to Effective Project Decision Making. London: Kogan Page

• Maylor, H. and Turner, N. (2022) Project Management 5th ed., Harlow: Pearson

• Murray, A. (2011) PRINCE2 & Governance. Available https://www.educore.com.tr/wp-


content/uploads/2014/08/PRINCE2_and_Governance_White_Paper_Nov2011.pdf

• Office of Government Commerce (2009) Managing Successful Projects with PRINCE2: 2009
Edition. Norwich: TSO

• OPM (2005) The Independent Commission on Good Governance in Public Services. Available
http://www.jrf.org.uk/publications/good-governance-standard-public-services
This Photo by Unknown Author is licensed under CC BY

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