Role of the Board of Directors from Leadership and Regulatory Perspectives

Welcome to Advanced
Project Management
Role of the Board of Directors
from Leadership and Regulatory
Perspectives

Agenda
Topic Learning Outcome
Recap Previous Topic
Project Boards
Activity 1: Project boards in PRINCE2®
Boards of Directors
Activity 2: Boards of directors, governance and ethics
Review of Apply & Consolidate Activities
Formative assignment preparation
Recap, Q&A, Next steps

Today’s Learning Outcomes
Explain and evaluate the purpose and function of a Board of
Directors
Critically evaluate board structures and performance
Evaluate how a Board of Directors impacts large strategic
projects

Recap previous topic
The Project Board
The Project Board
Organisation’s
board
Project
board

The Project Board – responsibilities
• Making decisions to continue or abort
• Undertaking project assurance
• Measuring project progress
• Agreeing changes to the plan
• Maintaining legal, regulatory, ethical
and operational standards

The Project Board – attributes
• Terms of reference
• A suitably qualified sponsor
• Members with appropriate seniority
• Stakeholder representation
• Formality commensurate with the
complexity of the project

Activity 1: Project
boards in
PRINCE2®
This Photo by Unknown Author is licensed under CC BY-ND
Collaboration Activity 1: Project boards in PRINCE2®
Read the case study: Suffolk County Council.
Do some independent research on the concepts you have
studied as part of this webinar preparation and define:
1.What are the main responsibilities of the project board,
according to the PRINCE2® method?
2.What might be the challenge of rolling out PRINCE2® to large,
complex organisations?
You have
40 minutes for this exercise
Resources provided: PRINCE2® Case Study: Suffolk County
Council.pdf supported by independent research

Boards of directors
Boards of directors – different sectors
Private limited
company
Public limited
company
Charity Government School, college
Board of
directors
(minimum 1)
Board of
directors
(minimum 2)
Board of
trustees
Council,
cabinet
Board of
governors

Boards of directors – responsibilities
• Defined in law
• Varies by sector
• Defined in company documents
• Promoting the success of the organisation
• Exercising independent judgement
• Exercising care and due diligence
• Avoiding conflicts of interest
• Not accepting benefits from third parties
• Declaring interests in proposed activities

Activity 2: Boards of
Directors

Collaboration Activity 2: Boards of directors,
governance and ethics
The scope of this exercise it to study the Financial Times article Rio Tinto executive
coach reported ethical concerns to regulators
. Learners should then conduct
their own research on the topic before contributing to the group discussion.
Each group is going to read the case study, then spend some time conducting
independent research, and reply to one of the following questions:
Group 1: What role does the board of directors play in the management of large,
complex projects?
Group 2: Describe, with examples, the ethical considerations boards of directors
must consider in relation to projects?
Group 3: How should boards of directors maintain knowledge of projects run by
their organisation?
Group 4: Describe the accountability of the board of directors and the project
board; are they consistent with each other? What conflicts might arise?
Your group has
40 minutes for performing your tasks.
Resources needed for this exercise: Rio Tinto executive coach reported ethical
concerns to regulators | Financial Times.pdf supported by independent research

Formative
assessment

Review of Apply &
Consolidate
Activities

Recap, Q&A, Next
Steps

Key Takeaways
• Boards of directors vary in size, description and
composition from one organisation to the next
• Boards are responsible for doing the right things, and
doing things right.
• The composition and formality of a project board will vary
depending on the size and complexity of the project.
Organisations should strike a balance between ease of
administration and robust governance.
• Risk and disappointment re correlated with project size
and cost. Effective corporate governance and project
management best practices can increase the likelihood of
success.
• Boards of directors have a fundamental role to play in
ensuring good practices, behaviours and values are
embedded in their organisations.
Source: pixabay.com/ Accessed 4 January 2021
Next Steps
• Review the fundamental concept
• Go through the Module Overview and Introduction (if not
done yet)
• Go through the Preparation and Apply part of this week (if
not done yet)
• Go through the Consolidation part of this week
• Go through the Preparation and Apply part of next week
• See you next week same time!
Source: pixabay.com/ Accessed 4 January 2021