IMPROVING BENEFITS MANAGEMENT AT SELLAFIELD

Version 1v1

22-June-15

Introductions

• Mike Ward– Head of Capability for

programme and portfolio management

• Richard Peel– Outperform Senior Consultant

helping to deliver change

Insert Sellafield Context slide here….

The numbers

• Annual Budget around £1.9bn• Life Time cost of £67.2bn • Life Time plan over 100 years of work• Typically over 600 projects live at any one time• Managed through 3 Divisions and 23 Programme areas• Strong project focus over many years • Programme management journey commenced in 2012

Five high hazard programmes represent 90% of the nuclear hazard potential on the site

Pile Fuel Storage Pond

Pile Fuel Cladding Silo

First Generation Magnox Fuel Pond

Magnox Swarf Storage Silos

HAL (Highly-Active Liquor) Workstream

Legacy Ponds and Silos

Mandate (2012)

• Case for Change– There is a strong desire to continue to improve programme management

capability so as to provide more effective programme execution– Sellafield Strategic Objective 6: To deliver our major projects through

programme and project excellence

• Delivering Benefits– Assurance of the consistency & coherence between programmes in delivering

strategic objectives– Increased predictability in performance to help improve stakeholder

confidence – Enhanced programmatic thinking allows programme teams to evaluate and

recommend responses to emerging issues & opportunities– Supports effective decision making on the allocation of scarce resources to

maximise site performance

Capability Vision & Mission

Vision

Excellence in programme and portfolio management

Mission

Sellafield will be trusted to deliver more efficient and effective portfolio and programme management

APM

Corporate

Accreditation

P3M3Certification

Awards

Roles

CPDOpportunities

Centre of

ExcellenceTools and systems

Sharing

Knowledge

Acad

emy

Code of

Business conduct

Benef

its

Fram

ewor

k

Gov

erna

nce

Fra

mew

ork

Information

Portal (w

iki)

Coaching and

Learning

CompetencyFramework

Portfolio & Programme Excellence

Blueprint / Benefits MapCoaching & learning

environment

PPM Academy

Competency framework

One-stop shop info portal

Framework for Pg/Pf management

Governance & Assurance framework

Tools & systems for baseline mgt

CoE support for Pg/Pf management

Nominated people in position

Programmatic Thinking

Managed supply of new entrants

More mature organisation

Respected as best-in-class

More stable environment &

processes

SO3 – what we do and how we do it

SO6 – programme excellence

SO7 – open and transparent

S04 – Accelerate risk and hazard reduction

SO10 – value for money

More efficient

Trusted to deliver

More effective

Price of non-conformance

Reputation

Value saved on scope

Predictable realization of benefit “SPI”

S09 - return on investment

Benefits Management Framework

• Framework Elements– Leadership– Governance & Assurance– Key Processes– Roles and responsibilities– Performance Management– Benefits dictionary /

categories– Tools support– Techniques

Benefits Management Framework

• Example benefit categories– Legislative compliance – Hazard reduction – Efficiency - increase throughput– Efficiency - cost reduction– Risk reduction– Revenue generating: direct or fee earning – Site restoration– Economic and social improvement– Reputation

Draft

Note the similarity to risk categories – why

is this?

Engagement Journey

P2M in a day

Peer Assist (PA) structure is – WK1: 1 day theory based + examples; 1

day practical with coaching– WK2: 1 day practical with coaching– Regular forums for sharing

PA1 PA2 PA3 PA4

Coaching(tasks based on need)

Month1 Month2

Scope

5 days 1 dayMonth3 Month4

Team meeting(selling the message)

Programme themes Portfolio themes

PA1 = Programme Scope, Objectives & Benefits PA1 = Governance structure and controls

PA2 = Governance, Assurance & Risk PA2 = Portfolio strategic alignment

PA3 = Controls: Resourcing, Planning, Info Management PA3 = Stakeholder engagement and communications

PA4 = Stakeholder Management, Reporting PA4 = Portfolio delivery

BCM Master Class

MSP Accredited Training

The Big Challenge

• What to measure– Improved operational parameters, e.g. volumes of waste retrieved

and made safe– Actual benefits, e.g. hazard reduction– Your contribution to strategic objectives

• What controls you need to put in place– Define when new capability comes on stream– Understand the risks if things don’t go to plan– Integrate the project and programme plans!

Tools & Techniques 1

Tools & Techniques 2

Tools & Techniques 3

Maturity Journey

• Using AXELOS’ Portfolio, Programme, and Project Management Maturity Model (P3M3®) 1

• 3 models• 7 perspectives• 5 levels of maturity

1 P3M3® is a Registered Trade Mark of AXELOS limited

Level 1 – Aware

Level 2 – Repeatable

Level 3 – Defined

Level 4 – Managed

Level 5 – Optimised

How are we doing?• More Efficient

– We use a consistent language – There is a collective understanding of programme challenges and areas for

improvement, e.g. reporting and resource management

• Trusted to Deliver• Programmes have a sense of realism about what needs to be done and are able to take

on the communication challenges they face– The focus on Benefits Management is impressive– There is a sense of ownership and pride from many of those interviewed

• More Effective– Programmes are now pro-actively sharing best practice amongst themselves [level 4

characteristic]– Advocates for programme management now exist from within operational areas– Enhanced programmatic thinking allows the programme teams to be ahead of the game– Top management commitment is being seen and recognised

Prove it!

• Recognised contribution from just one programme (example)– £50m scope “retired”– £40m scope identified as “missing” early in the process

1 P3M3® is a Registered Trade Mark of AXELOS limited

Organisa

tional Gove

rnan

ce

Manag

emen

t Contro

l

Benefi

ts Man

agem

ent

Risk M

anag

emen

t

Resource

Man

agem

ent

Stake

holder Man

agem

ent

Finan

ce Man

agem

ent

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

Sellafield 20124 programmes (2013)5 programmes (2014)6 programmes (2015)Best in Class

Annual independent P3M3 1

assessments

Top Tips Maintain ‘line of sight’ from programmes to strategic objectives & understand the contribution of eachDo to yourself what you

are asking others to do

Allow best practice to emerge and then adopt it Allow time to put

in place measurement & control systems

Talk to other organisations

Use surrogate measures where you need to

Contacts

• Outperform– Richard Peel

• Sellafield– Mike Ward

+44 203 432 6330

www.outperform.co.uk

+44 19467 28333

www.sellafieldsites.com