The Many Faces of Project Management

Transcription

1 The Many Faces of Project Management May 20, 2014 Assessing Project Complexity and Risk and the Capacity to Manage It: The Government of Canada s Approach Greg Kenney Treasury Board of Canada Secretariat

2 Assessing Project Complexity and Risk and the Capacity to Manage It: The Government of Canada s Approach Greg Kenney Treasury Board of Canada Secretariat

3 Purpose and Overview Describe the Government of Canada s approach to determining the oversight of projects Will cover: Context Policies and standards Tools

4 Context

5 Treasury Board and its Secretariat Treasury Board: A Cabinet committee of ministers that translates government policies and programs into reality and provides departments with the resources and administrative environment necessary to function Treasury Board Secretariat: makes recommendations and provides advice to the Treasury Board on policies, directives, regulations, and program expenditure proposals with respect to the management of the government's resources

6 Policy Suite Integrity Introduced in January 2005 by the Treasury Board Secretariat to: Clarify management responsibilities and accountabilities; Reduce the number of policies; Harmonize reporting requirements across operational areas; and Embrace a principles-based, risk-sensitive, resultsfocused management regime.

7 Where We Were Unclear accountabilities Prescriptive Inflexible Cost-focused Outdated

8 Renewed Policy Regime In June 2006, Treasury Board approved: Policy Framework for the Management of Assets and Acquired Services Policy on the Management of Materiel Policy on the Management of Real Property In June 2007, Treasury Board approved: Policy on Investment Planning Assets and Acquired Services Policy on the Management of Projects

9 Focus on Life Cycle Management Ensures value for money and sound stewardship in the management of assets and acquired services Promotes effective management of assets and acquired services throughout their entire life cycles Planning Acquisition Use Disposal

10 Policy Instruments and Tools FORMER POLICIES NEW POLICIES + STANDARDS and GUIDES Project Management (three policies) Management of Projects Standards Assessment Tools Guidance Long-Term Capital Plans Investment Planning Assets and Acquired Services Guidance

11 Key Changes Ensure value for money Directed at heads of department (i.e., deputy heads) Focus on management processes, governance, and systems Contribute to fact-based, strategic decision making Promote government-wide efficiency and effectiveness Strengthen the link between expenditures and results Place greater emphasis on life cycle management Based on risk, complexity, performance, AND cost

12 Policies and Standards

13 Investment Planning $ Billion $ Billion LTCP Assets and Acquired Services 18 departments required to submit a Long-Term Capital Plan with scope limited to assets only ($5B CDN in ) LTCP Investment Plans 98 departments required to submit an investment plan, including all assets and acquired services ($26B CDN in )

14 Policy on Investment Planning Assets and Acquired Services Objective is strategic investment planning Resources are allocated diligently in support of value for money and sound stewardship Key Changes Increased scope to include all spending on assets and acquired services Treasury Board approves the process, not the plan Provides decision makers with departmental investment planning context Supports deputy head oversight and accountability

15 Investment Plan as a Management Tool Provides the deputy head with a portfolio-wide view of departmental investment priorities and risks Ensures resources are allocated diligently with consideration for greatest risks Contributes to fact-based, strategic decision making Enhances efficiency/efficacy of capital planning, governance, and project delivery Provides insight into project complexity and risk at an enterprise level

16 THEN Project Management Policy Project Approval Policy Management of Major Crown Projects Projects managed in silos Financial threshold for Treasury Board approval, which varied by project type Major Crown Projects = $100 million and up Authorities tied to project Management of Projects NOW Policy on the Management of Projects Focus on governance Assessments of project management capacity across departments as well as of complexity and risk of all departmental projects Tailored Treasury Board project approval Treasury Board can now oversee any project

17 Context for Treasury Board Oversight As the management board of the Government of Canada, the Treasury Board limits the authority of departments to approve operational expenditures Treasury Board approves and provides oversight on a number of operational expenditures, including projects, contracts, and real property transactions

18 Policy on the Management of Projects Key changes to project approval authority Instead of an approval threshold based on dollar value and project type, project approval limits now based on the assessed complexity and risk of projects and the assessed departmental capacity to manage its project portfolio Assessments are completed by departments using standardized assessment tools Project approval and oversight are tailored to the project s complexity and risk

19 Standard for Organizational Project Management Capacity Establishes the mandatory process that deputy heads are required to use to assess their department s project management capacity class Not all departments need the same level of project management capacity

20 Standard for Project Complexity and Risk Establishes the mandatory process that deputy heads are required to use to assess the level of complexity and risk of their department s projects If a department s capacity class equals or exceeds a given project s complexity and risk level, it may have the opportunity to undertake the project with minimal Treasury Board oversight

21 Responsibilities of Deputy Heads The new policy clarifies the responsibilities of deputy heads in the effective management and delivery of their projects, which includes: The achievement of project outcomes and their contributions to program and broader government objectives; Clear and documented project accountability; and Governance and oversight mechanisms in place that reflect the level of project complexity and risk.

22 Expected Results and Benefits Treasury Board and its Secretariat can enable departments to manage their projects more effectively and with more flexibility Treasury Board oversight is tailored and risk-based (i.e., no longer one-size-fits-all) Fewer project submissions seeking Treasury Board approval Balancing of departmental capacity and project portfolio Standardized assessment tools applied throughout the Government of Canada

23 Tools

24 History In 2006, the TBS created the Organizational Project Management Capacity Assessment Tool and the Project Complexity and Risk Assessment Tool Based on industry best practices with input from a focus group of project managers from different functional communities (e.g., real property, information technology, defence, social programs, etc.) The tools were then tested and piloted operationally with four federal government departments

25 Organizational Project Management Capacity Assessment Comprises 92 assessment criteria in three areas of capabilities: Organizational Integration Core Project Management Supporting Project Management Support through the Guide to Using the OPMCA Tool

26 Overview of the OPMCA Organizational Integration Investment Portfolio Management Investment Program Management Organizational Support Structure Project Management Standards Core Project Mgmt. Project Integration Management Project Scope Management Project Time Management Project Cost Management Project Risk Management Supporting Project Management Project Quality Management Project Procurement Management Project Human Resource Management Project Communication Management

27 Interpreting the OPMCA Score Five classes, ranging from inconsistent practices driven by individuals to a capacity to completely change the way the organization does business: Limited (0) Sustaining (1) Tactical (2) Evolutionary (3) Transformational (4)

28 When to Conduct an OPMCA At least every three years, in parallel with the development of the investment plan When significant changes occur that would impact on the department s project management capacity If a department s project portfolio does not warrant an OPMCA, the deputy head can accept a limited capacity class and a $1 million project approval limit

29 Project Complexity and Risk Assessment Comprises 64 assessment criteria in seven categories: Project Characteristics Strategic Management Procurement Human Resources Business Project Management Integration Project Requirements Support through the Guide to Using the PCRA Tool

30 Overview of the PCRA Section Project Characteristics Description This category is designed to build a profile of a given project with respect to key attributes, including funding, budget, size and number of resources, duration, scope, technology scope, stakeholders, dependencies, and external considerations. Strategic Management Procurement Human Resources Business Project Management Integration Project Requirements This category assesses a project s alignment with its organization s strategic investment plan: -Is the project well positioned to achieve the goals and objectives of the strategic plan? -Is the project a potential risk to the strategic plan? This category assesses to what extent procurement activities present potential risk(s) to the project. This category assesses whether the project has the right skill sets in place, with the right roles and responsibilities This category assesses to what extent the project impacts the organization operationally and legislatively. This category assesses whether the project demonstrates implementation of key project management control measures and deliverables. This category assesses to what extent the specific requirements of the project add risk and complexity.

31 Interpreting the PCRA Score Four levels, ranging from projects with low risk and complexity to those requiring extensive capabilities that may effect dramatic change on the department (and its partners): Sustaining (1) Tactical (2) Evolutionary (3) Transformational (4)

32 When to Conduct a PCRA Before the expenditure of project funds on any projects over $1 million When significant changes occur that would impact on the project s level of complexity and risk Many departments are using the PCRA on projects under $1 million

33 Assessment Mapping PCRA Project Characteristics Strategic Management Procurement Human Resources Business Integration Project Requirements OPMCA Investment Portfolio/Program Management Mgmt Organizational Support Structures Project Management Standards Project Integration Management Project Scope Management Project Time Management Project Cost Management Project Risk Management Project Quality Management Procurement Management Human Resources Management Communications Management 33

34 Callipers Web application that provides departments and the Treasury Board Secretariat with real-time access to the OPMCA and PCRA tools and assessments, which support: Project managers in identifying and managing project risks; and the Treasury Board Secretariat in reviewing and challenging assessment results. Support through the Callipers User Guide

35 Determining Project Approval Limits Step 1: Using the OPMCA Tool, the department determines its capacity class, which must be approved by the Treasury Board Step 2: Using the PCRA Tool, the department determines the project s complexity and risk level Step 3: Departments compare the capacity class with the project complexity and risk level. Departments may approve a project whose complexity and risk level does not exceed their capacity class

36 Project Oversight Treasury Board s project oversight increases, the lower a department s capacity class and the higher a project s complexity and risk level Treasury Board and its Secretariat make use of many tools to oversee projects, from audits, to third-party reviews, to regular submissions to the Treasury Board Treasury Board retains the discretion to determine a project s level of oversight regardless of the assessment results

37 Project Oversight continued... Treasury Board Oversight Low High High 4 3 Organizational Capacity 2 1 Low Low 1 2 Project Complexity and Risk 3 4 High

38 Tailored Oversight Based on key risk areas identified in the PCRA Project management framework is expected to address these risk areas Key decision points throughout the project life cycle should be described in the project management plan and featured in the project brief

39 Project Brief Required to support a Treasury Board decision Provides understanding of the project and a synopsis of core project documents (e.g., business case, project charter, project management plan) Defines for Treasury Board: Expected outcomes Anticipated scope, schedule, and cost Gating framework Performance indicators

40 OPMCA and PCRA Best Practices OPMCA: Define the project portfolio Establish the applicable risk profile and resource requirements and, therefore, the needed capacity Note documented internal policies, management frameworks, monitoring and controlling activities, auditing plans, project performance metrics, etc. Obtain input from all areas responsible for projects and all supporting services Plan and document the assessment approach

41 OPMCA and PCRA Best Practices continued... OPMCA and PCRA: Discuss supporting evidence with internal auditors and the Treasury Board Secretariat Early on, share assessment results with the Secretariat to validate the approach Consult with the Secretariat and other stakeholders PCRA: Develop and document a protocol to ensure clear responsibilities and expectations for the department and the Secretariat

42 Guidance and Support Materials In addition to the guides already mentioned, departments are supported by: Lessons learned from the policy implementation; Project management repository; Guide to Preparing Treasury Board Submissions; and A course on the OPMCA and PCRA tools offered through the Canada School of Public Service.

43 Questions?

44 Contact Information Greg Kenney