Introduction.

South Australian (SA) Water which is responsible in supplying the

secure and quality water to Adelaide and the world famous Barossa
Valley Vineyards. This case mainly talks about the Project
Governance. SO before going into brief about the case analysis lets
we first understand the concept of Project governance.
Project governance is a framework mainly used in Management of a
business or an organization in order to take effective decisions which
allow projects to progress in an efficient manner. Coming to the
deadlines which is a major component in deciding the performance I
a project, it helps in meeting the deadlines and increases the rate of
success.
About SA Water:
SA Water had evolved into a vertically integrated government
department and later restructured as a government-owned
corporation which outsources the maintenance and operations of
Adelaides water supply to United Water. CEO Anne Howe, who
structured the organisation along functional lines with a separate
business unit to manage the water-testing laboratory and later in
1999, CEO Howe brought in an external appointee David Johnston.
When David joined the company the situation of IT Infrastructure
was unable to operate industry standard systems, for example, it
could not even support an effective email service.
Now lets answer the questions based on the case analysis:
Q1: After Johnstons changes, does the IS function fit the
organization and its environment? In considering the answer to this
question, you should draw on the models of IT Infrastructure and fit.
In particular, ask how the new initiatives help IS to get closer to the
business?
To the first part of the question the answer is Yes, The changes that
CIO brought to the desk are:
To build a platform for future value creating IT applications.
Do major upgrade in IT infrastructure to support the
development of new systems.

 Johnston renamed the existing division name to Information

services (IS) from its earlier name of Information systems with
a goal to deliver the right information, at the right time, to the
right destination regardless of the location.
Johnston introduced the concept of business-focused IT and set
out to raise the IT profile throughout the organisation.
He developed an IS model where both the information and
systems are owned by business.
BY Repositioning of IS which led Johnston to implement
strategic broker model of selective outsourcing and by this
implementation many functions of IS moved to business units.
Under this model, SA Waters IS set up Service Level
Agreements with external strategic partners, such as Aspect
Computing, and with its own internal groups. External parties
provide IS skills and advice.
Johnston recruited people from industry both to upgrade the
groups competencies and to change the groups culture.
Adopted PRINCE2 methodology and created three new
organisational structures: Information services executive
committee, Project Governance Office, and Project Board.

Q2: Is it the people, the structure, the methodology, the technology,

the top team relationship, vendor support, or the project
management, that is the key to Waterscopes success? Which of
these elements did Johnston emphasise to bring about
improvement, and what risks to high-performance project practice
remain?
Looking at the case, it is evident that the success to the Waterscope
is the combination of technology, methodology by Johnston and the
structure of the organization. PRINCE2 methodology enabled the
business to monitor and control the project. Internal and external
project managers were required to have received training in
PRINCE2. Technology helped in automated checking of the samples
and timely publishing of information of water online and the three
new organizational structures.
Information services executive committee purpose was to
focus on business issues and ensure that the top team was

committed to and satisfied with the projects delivered on their

behalf.
Project Governance Office was established to provide
assistance to business unit managers to maximise the success
of IT projects through the application of endorsed methods,
tools and techniques.
Project Board involved in initiation, authorization, advices,
closure and reviews of the project.

Johnston emphasized on integration of new structure, processes,

and roles within the business as follows:
a) Introduced the concept of business focused IT in the
organization.
b) Showed that the IT could deliver benefits to the business on
the whole.
c) Renamed the divisions name to Information services and
establishing a new goal.
d) He made everyone in the organization to understand the
business and become more business-focused
e) He also changed he organizational culture and enhanced the IT
team competencies.
f) Appointed new key roles and positions to address specific
skills.
g) Introduced the broker model of outsourcing focusing on role
based working style and retained the responsibility for risk
management and het delivery of the business benefits.
The risks involved in performing high project practice are
Unable to meet the requirements due to problem in interfacing
in LIMS and delay in PDA testing.
Lack of business resources and the lack of relevant IT skills in
the market