Project Management “Whose Project Is It Anyway”

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Financial Management Institute of Canada Professional Development Day

January 21, 2016

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Overview

To discuss horizontal initiatives from a project management perspective

To provide an overview of several Treasury Board Secretariat initiatives underway in support of project management:

– OCG, Assets and Acquired Services Sector

– CIOB, IT Project Review and Oversight

– OCG, Costing Centre of Expertise

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Horizontal Initiatives and Project Management

Office of the Comptroller General (OCG) Assets and Acquired Services Sector

Lisa Reynolds

Senior Director

Investment Planning and Project Management Division

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Whose Project Is It Anyway?

Project Management

Cost Estimates Project Manager

Stakeholders IT Specialists

Horizontal Initiatives Departmental Performance Report

Report on Plans and Priorities

Project Sponsor

Joint Projects Budget

Project Performance

Departmental Financial Management Specialists

Close-out Reports

OPMCA

Departmental Procurement Specialists

Governance

Departments Investment Plans

Public Services and Procurement Canada

PCRA

GOC Project

Enterprise Initiatives

Shared Services Canada

Treasury Board Scope Reporting

Departmental Real Property Specialists

Project Outcomes

Schedule

Treasury Board Secretariat

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Horizontal Initiatives

What CFOs Should Know About Project Management

Article: CFO.com

– “Don’t fall into the trap of aiming for positive outcomes with no sense

of structure or consistency around how to achieve them.”

– “All strategic initiatives are delivered through projects and programs.”

Guidance on the Governance and Management of Evaluations of Horizontal

Initiatives – Treasury Board Policy Suite defines a Horizontal Initiative as:

“an initiative in which partners from two or more federal organizations

have established a formal funding agreement (e.g., Memorandum to

Cabinet, Treasury Board submission) to work toward achieving shared

outcomes.”

Mark A. Langley

CEO, Project Management Institute

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The Policies

As principles based policies, sufficient flexibility exists to address

horizontal/joint projects:

The Policy on Investment Planning – Assets and Acquired Services

The Policy on the Management of Projects

• The policy requires that investment planning

be influenced by and support departmental,

portfolio, horizontal and government–wide

perspective and takes into account strategic

government-wide initiatives.

• Departmental Investment plans provide an

opportunity to explore efficiencies –

identifying similar investments, making

connections for potential collaboration

among departments.

Once departments determine to undertake a

joint project as a single project, the Policy on

the Management of Projects expects:

• One project = one sponsor = one PCRA,

assessed against the Organizational Project

Management Capacity Assessment

(OPMCA) of the sponsor.

• Not all projects involving multiple

departments need to be managed in the

same way. The policy provides deputy

heads with the authority to determine the

best way to manage a joint project.

• Expenditure Authority: Within joint projects,

departments are free to seek individual

expenditure authorities.

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The Challenge

Joint projects by nature require more effort, are often more complex

and require a heightened level of project management maturity to be

successful.

Key Challenges:

• Sponsors of horizontal/Joint projects have to rely on external

organizations in order to achieve their intended project

outcomes;

• They require a certain culture and maturity level to be

successful;

• Often the Partnership is “imposed” which complicates buy-in

with respect to the “what” and “how” things will get done.

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Some Key Differences

Differences when compared to single departmental projects:

• Inclusion in investment plans – should be consistently presented

• Competing priorities often exist among partners

• Partners may have different definitions of success

• Agreement – decision making may be challenging – need for sound

governance

• Decision making – accountability is sometimes unclear

• More effort is required on communications

• Funding availability may be an issue with some stakeholders

• Scheduling – must be integrated and is often more complex

• Change management – impact on other partners must be considered

and assessed (importance of planning)

• Indicators of readiness for success: may be different among partners.

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Independent 3rd Party Reviews of IT Enabled Projects

Chief Information Officer Branch (CIOB) IT Project Review and Oversight Division

Claire Pereira

Director

IT Project Review and Oversight Division

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Chief Information Officer Branch IT Project Review and Oversight Division

• IT Project Review and Oversight Division (ITPROD) was established to assist departments to develop and enhance project management capacity and contribute to improving the overall success rate of IT-enabled projects

• Key activities include: – Active monitoring and oversight of IT-enabled projects – Due diligence reviews of Treasury Board submissions related to IT-

enabled projects and associated project management documentation – Development of tools and guidance for IT-enabled project practitioners

and executives – Community outreach and engagement activities

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Chief Information Officer Branch Independent Project Review Program

• Independent project reviews are critical assessments of a project at one or more “decision gates” conducted by an independent third party at arm's length from the project

• CIOB/ITPROD launched the Independent Review Program in 2010,

consisting of: – Reviewer’s Handbook – Review Topics for Enquiry – Guide to Project Gating for IT-enabled Projects – Guide to Accessing Independent IT Project Review Professional Services – Public Services and Procurement Canada (PSPC - formerly PWGSC) supply

arrangement for qualified vendors

• CIOB analyzed findings from 45 Independent Reviews of large IT-enabled projects across the GC and grouped findings into five broad themes as follows: 1. Communication and Stakeholder Engagement 2. Resourcing 3. Planning & Scheduling 4. Management & Governance 5. Post-Implementation Transition

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Independent Project Review Study

Key Findings by Theme

1. Communication and Stakeholder Engagement

Inadequate or problematic partner/ stakeholder engagement

Poor internal communications including roles and responsibilities

Project leadership not fully involved

2. Resourcing

HR capacity, staffing, and turnover issues

Procurement or contracting issues (acquiring the right skills at the right time)

Lack of subject matter expertise or strong challenge function

Lack of project management capacity or experience

Lack of resource planning or defined resource requirements

3. Planning & Scheduling

Incomplete, changing or vague requirements / scope

Aggressive or unrealistic scheduling

Lack of integrated schedule which identifies interdependencies with other projects / activities

Lack of detailed planning

Business case options and / or benefits not fully articulated / assessed

Concerns related to TB submissions or funding approvals

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Independent Project Review Study

Key Findings by Theme

4. Management & Governance

Poor budget management and/or insufficient contingency funding

Unclear governance, decision-making authority, or poorly documented decisions

Need for a clearly defined and enforced continuous risk and issue management process

Lack of (or delayed) formal sign-off of deliverables

Ineffective or inconsistent status reporting

5. Post-Implementation Transition

Lack of benefits realization / business outcomes measurement plan once the solution is implemented / deployed

Inadequate post completion transition planning

Lack of adequate process change management or business transformation planning

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Cost Estimating

Office of the Comptroller General (OCG)

Financial Management Sector

Michael Lionais

Executive Director

Costing Centre of Expertise

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Cost Estimating

• Need to change from providing a single number to providing a cost estimate range

• Need to identify the cost estimates sensitivity to financial risk (i.e. potential changes in inputs)

• Need to identify the key framing assumptions which if they change could invalidate the cost estimate

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Why Is This Important • Horizontal Initiatives = strategic change

– Strategic change is accomplished through projects

– The likelihood of successful realization of horizontal initiatives will be enhanced if project management principles and practices inform the work plan

• The value and benefits of strong project management in all its discipline

• The 2014 Project Management Institute’s Pulse of the ProfessionTM: The High Cost of Low Performance outlines the following in relation to strategic initiatives:

– Only 56% of strategic initiatives meet their original goals and business intents

– This translates into organizations losing on average 10.9% of every $1 invested in projects and programs

– High performing organizations successfully complete 89% of their projects, while low performers complete only 36%

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What’s Next

• Continue to create opportunities to enhance awareness of expertise and share best practices across our various communities in support of the successful delivery of horizontal initiatives

• Policy Suite Re-set

• Tools: – Website: Canada.ca

How Government Works:

Government of Canada Project Management:

http://www.tbs-sct.gc.ca/hgw-cgf/oversight-surveillance/itpm-itgp/pm-gp/index-eng.asp