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Public procurementTim BanfieldDirectorNational Audit Office
27 June 2013
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Four aspects:
• Why projects matter for government;• Our evaluative approach;• How we are developing our skills;• How we share insights.
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Why projects matter for government• Projects are the currency to deliver change;• 95 percent of government policy is delivered through
projects;• The majority of public sector projects do not deliver as
expected;• Failures may relate to efficiency (ie not delivering to
time/cost/performance) and/or effectiveness (not achieving the desired benefit/policy outcome);
• The private sector isn’t much better.
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GMPP£384 bn
HO
DfE£6,699m
DEFRA£3,969m
HMRC
DCMS
CO
NS&I
FCO
ONS
DfID
DCLG
HMT
DWP£26951m
DoH£20344
£13,201m
£12,489m
£1,465m
£1,218m
£840m
£713m
£521m
£423m
£115m
£20m
MoD£150,782m
DECC£89,068m
DfT£46,970
mDWP£26,506
m
DoH£19,927
m
BiS
HO
MoJ£7,736m
£1,221m
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Characteristics
- Strategically important programmes
- High value/risk/ reward
- Unique projects, complex & uncertain
- Long-term horizons
Complex CBA
Vested interests in projects
Contracting with powerful players
Long supply chains
Operational impacts, some managed through third parties
Decommissioning challenges
Complex accounting
Contingency planning and maintain/replace decisions
Governance & accountability
Resource constraints
Financial management
Business transformation
Providers of last resort for strategic national services
Management and maintenance of current asset base
Ma
na
ge
me
nt
ch
all
en
ge
s
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There are plenty of examples of good project planning and execution………
Few could have envisaged how successful the London 2012 Games would turn out to be. The construction programme was completed on time and within budget, 11 million tickets were sold and our athletes excelled. Crucially, the Games passed off without major transport disruption or security incident. Taken as a whole, the Games were a success by any reasonable measure and it looks as if not all of the Funding Package will be used.
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Our evaluative approach
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How we look at project delivery (1)
Influencing improvement
Desired Capabilitystate
CurrentState
of Capability
DeliveryEnvironment&Complexity
Value for money
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Would you bet your own money on this project delivering the policy objectives
There are ten factors common to projects.
They provide a framework to:
• Understand the specific challenges the project faces;
• Assess whether the bespoke delivery approach proposed is realistic;
• Judge whether the project has a good chance of achieving its objectives.
Source: NAO analysis of over 3,500 projects
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How we look at project delivery (2)
Influencing improvement
Desired Capabilitystate
CurrentState
of Capability
DeliveryEnvironment&Complexity
Value for money Judgement
Organisational Competency
Portfolio Prioritisation and Management
Individual Project & Programmes
Knowledge Base• What works, fails, why and effect• Capability across government• Departmental assessments
Intelligence on current portfolio of major projects
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How we are developing our skills
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Capability Growth Path Indicative Roles, Contributions
Role Complexity of Project (DECA)
Basic Project Management tools techniques
Understanding leadership & behaviour
NAO Knowledge/ Back Catalogue exploitation
NAO Analytics External Profile
Lead interventions, advisory & quality assurance
Complex Expert in some aspect, competent in most
Application of analytics & interpretation
Comprehensive knowledge & interpretation
Thought leader Thought leadership NAO ambassador
Manage delivery & apply complex analytics & quality assurance
Complex Competent in most, growing expertise in some
Application of analytics & interpretation
Comprehensive knowledge & some interpretation
Lead development Recognised expertise NAO ambassador
Lead application of analytics & quality assurance
Complicated Competent in some & potential expertise identified
Awareness of dynamics & analytical tools
Interrogate & utilise appropriately
Contribute to development
Contribute to debate NAO ambassador
Supporting Simple Appreciation Awareness Access & understanding
Awareness & understanding
Engages
Portfolio of Evidence(Authentic, Valid, Reliable, Current, Sufficient)
Attribute Based - Professional qualifications- CPD- Contribution to development of profession- Specific qualifications e.g. PRINCE 2
- Assurance/Gateway reviewer
Performance - NAO intervention experienceBased - Analytic development
- Corporate knowledge development- Secondment- Previous career- External engagement- Academic engagement & research
Collegiate - Support to colleaguesBehaviours - Learn contribution
- Ability to work with clients
Competencies
Unit Elements Why it Matters Illustrative Techniques/ Attributes
Understanding success • Translating policy intent• Benefits optimisation• Requirement setting
• Systems engineering• Value engineering• Benefits management• Sponsorship
Designing the delivery approach
• Understanding the delivery environment & complexity
• Alternative delivery models• The legal & legislative framework
• Parliamentary procedure• Organisation design
Portfolios presentation
Making investment decisions
• Time and cost forecasting• Risk and uncertainty controls
• Estimations Monte Carlo simulation• Reference class forecasting• Historic trend analysis• Risk management• Scenario modelling • CBA & business cases
Delivery through/ with others
• Commercial engagement• Engagement with other delivery partners• Broader stakeholder/ influencer
relationships
• Legal & EU law• Contractual design• Negotiation
Stakeholder mapping & relationship mgt• Public enquiries & legal challenge
Behavioural aspects • Delivery leadership• Organisation & personal incentives• The operating environment• Skills & capability development
Project prioritisation • Project controls• Change management• Disputes• Interdependencies
• EVM• Schedule design• Dispute resolution/ arbitration• Team building & dynamics• Decision making
Transition to BAU • Acceptance• Process & cultural alignment• Learning & applying knowledge
• Change management
Novice
Knowledgeable
Experienced
Expert
Capability
Time* Evaluation Point
*
*
*
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The Norwegian Approach
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How we share insights
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The range of assurance options
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Five factors influencing successful delivery
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Five key elements for initiating successful projects
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GMPP
• Portfolio Management
• On Time
• On Budget
• Delivering Specified Benefits
THE MPA LEADERSHIP ACADEMY
• World class project leaders
• Much improved outcomes
• Value for money
GOVERNMENT MAJOR PROJECTS PORTFOLIO
MAJOR PROJECTS LEADERSHIP ACADEMY
OPERATING ENVIRONMENT
ACHIEVEMENTS& LEARNING
• Portfolio Management
• On Time
• On Budget
• Delivering Specified Benefits
• World class project leaders
• Much improved outcomes
• Value for money
• The ultimate Approach
• The ultimate Structure
• The ultimate process
• Interactive electronic dimension
• Advanced access systems
• Sophisticated alignment tool
The 4 Pillars of the Major Projects Authority
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Thinking differently about success
2. Outcomes
How the project is used Impact Relevance Take -up
3. Benefits
What value is added to society (realisation of policy) Sustainability Satisfies needs Economic effects
1. Outputs
Performance Time Cost Quality
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Tim Banfield
Tel: +44 20 7798 7662
Fax: +44 20 7798 7588
E-mail: [email protected]
Website: www.nao.org.uk