Further memorandum submitted by the Foreign
and Commonwealth Office
Letter to the Rt Hon Michael Ancram QC
MP, from the Secretary of State, Foreign and Commonwealth Office,
28 October 2003
In April you tabled a number of Questions about
the decision to cancel the Focus programme, which had been designed
to provide the FCO with an integrated, knowledge management system.
In one of my answers, I explained that we were undertaking a review
of the lessons learned from the Focus programme, and other comparable
programmes, to provide guidance to those managing such programmes
in future.
As promised, I enclose a copy of that review
(Annex A). It outlines what we are doing to ensure that we learn
the lessons from past programmes and embed improved processes
in the FCO to try to ensure that projects are well run in the
future.
I am copying this letter and the review to Donald
Anderson, as the Focus programme also came up during Michael Jay's
evidence to the FAC in June[15]
Rt Hon Jack Straw MP,
Secretary of State, Foreign and Commonwealth Office
October 2003
Annex A
The Management of IT Programmes and Projects[16]in
the FCO—Learning the lessons
1. INTRODUCTION
It is crucial that, as an organisation as well
as individuals, we learn the lessons from our experiences of managing
projects and programmes. Knowing what has worked before and what
hasn't gives us a much better chance of managing today's projects
to successful conclusions. In an organisation like the FCO, where
many staff move every few years, this is even more important.
This paper draws on the experience of FCO programme and project
managers, and of the Office Of Government Commerce (OGC), to identify
the key lessons and outlines the approach we are taking to embedding
those lessons in our structure, working practices and culture.
It includes the lessons learnt from the Focus Programme, following
the decision to halt the programme because of the increase in
projected costs. Following OGC best practice the FCO has established
a programme and project management Centre of Excellence which
we have named the Programme and Project Management Group (PPMG).
The PPMG together with the IT Strategy Unit is overseeing these
actions.
2. THE KEY
LESSONS AND
HOW WE
ARE RESPONDING
| Lessons | Responses
|
| A. Take the necessary time at the start of a Programme/Project to make sure it is clearly defined.The objectives, outcomes, benefits, costs, risks, dependencies, management structures and resources must be established. Wherever possible aim for delivery in incremental steps—be clear about what is driving the timescale for each step. Get the project team in place as early as possible to ensure the project definition stage is properly resourced. Establish the correct fit for the programme/project within the wider portfolio of ICT programmes/projects and ensure that Inter-dependencies are clearly identified and understood (see also Change Control at J below). Look for potential security issues to avoid running into them unexpectedly later on. Remember that IT projects are not just about IT—the reason for doing them is to bring about change, so think of them as change projects that are IT-enabled.
| — Standard format for programme and project initiation documents covering all key aspects of' project/programme definition, to be made mandatory.
— Approving body to withhold authorisation to proceed until it is satisfied that all aspects have been defined.
— Include explanations of project definition process in induction pack for new project/programme managers and for SROs (Senior Responsible Owners).
— Completion of OGC Project Profile Model (PPM) to be mandatory for all Projects to establish the overall risk rating of the project.
— Explore applicability of formal project estimating techniques, and if found to be suitable, introduce them via project management guidance.
|
B. Make sure that the right level of contingency is built into timescale and budgets. No project ever costs what the preliminary estimate said it would. The vast majority of such estimates are optimistic (hence the move by HM Treasury to apply a correction for "optimism bias" to all project proposals). Keep the project plan up to date so that an assessment can always be made about whether there is adequate contingency. Beware ofscope creep eating up the contingency.
| — Apply appropriate correction for optimism bias in all project estimates.
— Compile historical data on comparisons between estimates and actual project spend and use this to reline optimism bias correction and to guide subsequent estimates.
|
| C. Make sure there are enough people with the right skills and experience to staff the project bearing in mind the other work going on at the same time. This doesn't just apply to core project team members. Significant "user" input is always needed, but these people have a full-time day job too. This is not just a question of grabbing the right people for one project. The FCO's HR strategy needs to plan how to instil project and programme management expertise in sufficient numbers or staff to meet expected demand. Put the effort into getting the right people onto the project and be prepared to move out those who don't fit. And identify early those outside the project (OGC, other government departments, and private sectorcontacts) who can offer relevant advice.
| — FCO HR Strategy to identify how to instil project management skills more generally into FCO staff. (Including investigating the feasibility of mentoring by experienced Programme Managers).
— Introduction or induction packs and clearly defined training programmes for new Programme Managers and SROs.
— Centrally coordinate resource plans for all IT programmes and other major change initiatives within IT Strategy Unit to identify resource conflicts.
— SRO to ensure key user resources are signed-up for the project.
— Use Capability and Capacity assessment tool, currently being developed by Programme and Project Management Group, to assess whether there are sufficient people with the right skills to allow another programme or project to be undertaken in addition to the existing portfolio.
|
| D. Make sure changes to key personnel (e.g. Programme/Project Manager or SRO) mid-project are kept to a minimum. Secure thenecessary commitments to ensure the project retains key staff. Put the effort into succession planning to ensure the negative effects of key staff turnover are minimised.
| — Personnel Directorate adopt policy that project/programme managers are assigned for the duration of the project.
— Avoid long projects—break them down into smaller chunks. (Include in guidance to project/programme managers the need to succession plan for key team members.
— Mitigate the effect of key staff turnover by ensuring key information is written down and remains accessible, and project procedures are documented.
|
| E. Take OGC best practice guidelines, make them specific to FCO circumstances and make them mandatory. And check regularly that people stick to them. Maintain a regular dialogue with OGC.
| — IT Strategy Unit to take project and programme management guidancebeing produced by PPMG (Project and Programme Management Group)—the FCO's centre of excellence in project management, and endorse it as mandatory standards.
— Internal Audit Department to continue to check adherence to standards.
— PPMG and project managers to maintain contact with OGC staff.
|
| F. Make sure that senior management have taken ownership of the project, Preferably appoint the key senior manager with an interest in the outcome of the project as Senior Responsible Owner (SRO). For missioncritical and high risk projects get the appropriate Minister engaged early on. Report progress to them regularly and accurately.
| — As per OGC guidance, ensure a Minister is appointed to oversee mission critical and high risk projects. Continue to widely report monthly progress for all key projects in a simple and clear format.
— Continue to ensure SROs are in place and understand their obligations.
|
| G. Make tire that all the key stakeholders have been identified and are suitably engaged. Make sure their needs are understood and communicate regularly with them. Appoint the right stakeholders to the Project Board.
| — Include guidance on stakeholder analysis and stakeholder management in project/programme management guidance (a Best Practice Guidance Note has already been produced by Programme and Project Management Group).
— Compile a checklist of typical stakeholder groups for FCO IT projects.
|
| H. Establish at the outset how the necessary independent assurance of the project will be provided. This will include appointing individuals with specific assurance responsibilities as well as planning in Gateway Reviews.
| — SRO to check specifically how independent assurance will be provided.
— Gateway and assurance arrangements to be documented in project/programme initiation documents.
|
| I. Pay close attention to the relationship with key suppliers and contractors. Evaluate prospective suppliers' fit with FCO culture as well as their capability Get to know the market. Get the contract right but don't rely on it to resolve problems. Understand what, other than immediate profit, motivates prospective suppliers.
| — FCO's Procurement Policy Department to continue to advise project managers and project boards on procurement matters.
— Produce additional guidance on supplier relationship management.
|
| J. Evaluate proposed changes fully before changing the project/programme scope. Use the agreed change control procedure and be clear about the effect of the change on the business case for the project (costs and benefits and risks) and on interdependencies with otherprogrammes/projects before deciding whether to adopt it.
| — Change control procedure documented in all project initiation documents, based on a common format explained in project management guidance.
|
15
Ev 1 Back
16
a project as referred to here is a managed set of activities aimed
at delivering some new capability while a programme is a portfolio
of projects which achieves strategic organisation change. A project
finishes when it has delivered the specified new capability. The
programme finishes when it has demonstrably achieved the benefits
from the planned organisational change Back
|
