Tim Banfield, Director, National Audit Office

Report
Public procurement
Tim Banfield
Director
National Audit Office
27 June 2013
Four aspects:
•
•
•
•
Why projects matter for government;
Our evaluative approach;
How we are developing our skills;
How we share insights.
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.
HMT
DCLG
DfID
ONS
FCO
NS&I
CO
HMRC
DCMS
£20m
£115m
£423m
£521m
£713m
MoD
£150,782m
£840m
£1,218m
£1,221m
£1,465m
GMPP
DEFRA
£3,969m
£384 bn
DECC
DfE
£6,699m
£89,068m
MoJ
£7,736m
DfT
HO
£12,489m HO
£13,201m
BiS
DoH
DoH
£20344
£19,927
m
DWP
DWP £26951m
£26,506
m
£46,970
m
Characteristics
Vested
interests in
projects
Decommissioning
challenges
Complex
accounting
- Strategically
important
programmes
- High value/risk/
reward
- Unique projects,
complex &
uncertain
- Long-term
horizons
Contingency planning and
maintain/replace decisions
Management and
maintenance of
current asset
base
Long supply
chains
Providers of
last resort
for strategic
national
services
Operational
impacts,
some
managed
through third
parties
Governance &
accountability
Management
challenges
Complex
CBA
Contracting with
powerful players
Resource
constraints
Financial
management
Business
transformation
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.
Our evaluative approach
How we look at project delivery (1)
Value for money
Delivery
Environment
&
Complexity
Desired
Capability
state
Current
State
of
Capability
Influencing improvement
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
How we look at project delivery (2)
Value for money Judgement
Organisational Competency
Delivery
Environment
&
Complexity
Desired
Capability
state
Portfolio Prioritisation and Management
Individual Project & Programmes
Knowledge Base
Intelligence on current
portfolio of major projects
• What works, fails, why and effect
• Capability across government
• Departmental assessments
Influencing improvement
Current
State
of
Capability
How we are developing our skills
Indicative Roles, Contributions
Capability Growth Path
Capability
*
Expert
*
Experienced
Knowledgeable
*
Novice
* Evaluation Point
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
Time
Competencies
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
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
•
•
•
Parliamentary procedure
Organisation design
•
•
Understanding the delivery environment &
complexity
Alternative delivery models
The legal & legislative framework
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
Portfolios presentation
Performance
Based
Collegiate
Behaviours
- NAO intervention experience
- Analytic development
- Corporate knowledge development
- Secondment
- Previous career
- External engagement
- Academic engagement & research
- Support to colleagues
- Learn contribution
- Ability to work with clients
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
The Norwegian Approach
How we share insights
The range of assurance options
Five factors influencing successful
delivery
Five key elements for initiating successful projects
The 4 Pillars of the Major Projects Authority
THE MPA LEADERSHIP
GMPP
GOVERNMENT MAJOR
MAJORACADEMY
PROJECTS OPERATING
ACHIEVEMENTS
PROJECTS PORTFOLIO LEADERSHIP ACADEMY ENVIRONMENT
& LEARNING
• Portfolio
class project leaders
• Portfolio •World
• World class
Management
•The ultimate
Management
project leaders
Approach
• On Time
•Much improved outcomes
• On Time
• Much improved
•The ultimate
outcomes
• On Budget
Structure
• On Budget
•Value for money
• Value for
• Delivering
•The ultimate
•
Delivering
money
Specified Benefits
process
Specified Benefits
•Interactive
electronic
dimension
•Advanced access
systems
•Sophisticated
alignment tool
Thinking differently about success
1. Outputs
Performance
 Time
 Cost
 Quality
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
Tim Banfield
Tel:
Fax:
+44 20 7798 7662
+44 20 7798 7588
E-mail:
[email protected]
Website: www.nao.org.uk

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