Improving project delivery in the UK Tim Banfield

Tim Banfield • Internationally recognised expert in the leadership of complex projects and programmes • 30 years working at the heart of the UK Government • Head of the UK Government Project Delivery profession • Leading role in the Association for Project Management and International Centre for Complex Project Management • Author of over 100 peer reviewed reports and thought pieces • Proven track record of diagnosis of complex problems and provision of viable solutions

About Nichols is a unique, independent company of strategic transformation and change specialists. We provide advice on large iconic programmes and complex mega projects for government and private sector clients alike. For over 43 years we have brought clients’ vision to reality, and delivered work in a wide range of areas, including regeneration, transport, decommissioning, energy and technology. Our original and unrivalled expertise and our depth of experience enables us to provide an unparalleled service, developing and delivering some of the largest programmes in the UK and across the globe. As an independent, leading consultancy with industry authority, we have the imagination and capability to fulfil all complex programme and project management needs.

Key messages 1. Successful projects change lives for the better. 2. People deliver projects by making consistently good judgements.

Agenda 1. The opportunity 2. The problem 3. Complicating factors 4. Developing people 5. Making good decisions

1. The opportunity Projects deliver change

Perspectives on success Components of requirements Examples measures Benefits Sustainability Satisfies needs Economic effects Social benefits Stakeholder satisfaction Achievement of strategic aims Value added to society Realisation of policy Outcomes The impact of outputs The extent to which the outputs are used Outputs Project performance Relevance Take-up Stakeholder acceptability Time Cost Quality Scope Safety Source: Project Initiation Routemap

Effectiveness vs efficiency Efficient projects Effective projects Relationships Quality Change Outcome Cost Time

2. The Problem The situation in 2010

“A project that starts poorly never improves”* Before 2010, two thirds of UK Government projects failed. The Major Projects Review 2010 highlighted: • A lack of central oversight • No understanding of the scale of the undertaking such as the number, size or complexity of Government projects • Little accountability or responsibility for underperformance • Little collaboration between the departments and the centre • Lack of effective senior project leadership capability • Previous performance no longer acceptable * Getting a Grip: how to improve major project execution and control in government (Lord Browne)

Diversity of the UK Government portfolio Infrastructure Defence Equipment Crossrail Geological Disposal Facility Programme Nuclear Warhead Capability Sustainment Programme HS 2 Airseeker Olympic Park Queen Elizabeth Carriers Sellafield Chinook Information Technology Transformation Columbus (Aspire Replacement Programme) Universal Credit Crime Change Programme Electoral Registration Transformation Programme Nursing Technology Fund NHS Mail HMCTS reform

3. Complicating factors

Transformation is different from traditional project delivery and takes time

Aspects of delivery complexity • Strategic importance • Deliverers and influencers • Requirements and benefit articulation • Stability of overall context • Financial impact and value for money • Execution complexity (including technology) • Interfaces and relationships • Range of disciplines and skills • Dependencies • Extent of change • Organisational capability, performance to date • Interconnectedness

The shape of the Government project portfolio 15

Bridging the gap Current model Policy experts Delivery experts Implementation planning Policy development Implementation delivery Public commitment Future model Policy experts Implementation Delivery experts Policy development Implementation delivery Policy Announcement of policy intent Public commitment

Challenges to good initiation

The delivery world is continuing to change New ways of working New people Agile Gen Y Collaboration Millennials Global business model New technologies Cloud Digital transformation Advanced analytics Big data

4. Developing people

Four levels of people engagement

Why people matter

What the profession covers

Project leadership development Delivered through: Orchestrating Major Projects – Key Senior Influencers Major Projects Leadership Academy – Senior Responsible Owners and Project Directors Project Leadership Programme – New Project Leaders Competency Domain Description Leadership of Self Distinguishing the self-knowledge to allow a leader to know how to maximise their leadership impact on the project. Leadership of Major Projects Distinguishing those attributes of leadership which are most germane to major projects (‘temporary organisations’), compared to the leadership of ongoing operations. Commercial Leadership The competency to provide commercial leadership and exert effective control over the ‘extended delivery team’ across organisational boundaries. Technical Leadership The competency of appropriately applying the principles, disciplines and tools to programme and project management to support the leadership of the project.

Project Delivery Career Pathways

PMO Director 1

PMO Director 1 Continued

5. Making good decisions

Transformation programmes need different aptitudes Features What they mean for capital programmes What is different for transformation Setup Clear, ‘engineered’ designed off before execution. Clear vision of the outcomes and benefits but avoid detailed solutions in the early phases. More iterative approach, testing and learning from experience. Leadership Maximising a defined network’s delivery of very specific products. Maximising a ‘loose’ network towards a common aspiration. Stakeholders Engaging stakeholders to support a defined, detailed plan. Engaging stakeholders as we develop ‘the what and the why’ of the transformation. Budgets & Plans Making external comparisons to ensure commercial and funding goals can be reached. Avoid detailed plans too early, before sufficient scoping and experimentation and network engagement has happened. Risk management Structured management of a detailed risk register that covers all elements of the programme, linked to management of the contingency. Focus on the big issues that are likely to run through implementation, e. g. customer behaviour, partner or supplier support, delivery pace requirements. Commercial strategy Procurement frequently in one big-bang transaction, following a clear commercial strategy. Able to adopt a more experimental, incremental approach to commercial resourcing. Resources Reliance on very specific technical skills. Programme management capability is crucial to success. Reliance on a broad skillset, including transformational leadership, organisation design, digital leadership (not ‘doing’), communications, tailored governance and review.

Strategic prioritisation What is the landscape (number, characteristics, status and level of aggregation of each project) of the department’s current projects portfolio? How does the projects portfolio, and each individual project, align with and support the delivery of the department’s strategic objectives? What is the through-life cost, funding, and resourcing profile of the department’s projects portfolio? What are the constraints to delivering the department’s projects portfolio, and what are we doing to address these constraints? What are the interdependencies within the department’s projects portfolio, and how are we managing the impact of these interdependencies? What are the major risks against the department’s projects, at both the project and cumulative portfolio level, and how are we managing these risks? What is the department’s future pipeline of projects, and how will those projects be integrated into the portfolio? What is the department’s prioritisation of projects, and how have we prioritised these projects? How effective is the existing governance structure for both individual projects and the portfolio as a whole, and what mechanisms exist for ongoing review and management of the portfolio? Does the department have a culture that encourages openness about issues facing both individual projects and the portfolio as a whole, and action on the basis of any concerns?

The role of the Senior Responsible Owner

Accountability and responsibility Project leaders were not empowered to get the job done: • Complex accountability structures • Unclear lines of responsibility Accountability has been clarified with formal letters of appointment, explaining: • The role • Accountability • Tenure With a full understanding of remit, SROs will be able to have more rigorous discussions with decision makers

A holistic view of success

Weak signals • Earned Value Management • Time and cost performance against plan • Contractor relationships • Team health • Risk profile/contingency • Delivery of outcomes and benefits against plans • Staff turnover • Skills/post gaps Performance External factors People Review and scrutiny • Performance of dependent projects • Progressing without approvals • Volatility of funding • Contractor financial stability • Length of time since last independent review • Changes in external risks • Acting on advice • Outcomes of independent reviews • Compliance with the integrated assurance plan

Ethics • What priorities does this decision support or work against? • Does it reflect the values of the organisations and decision-makers? • What are the consequences for each stakeholder? • What qualms would the decision-makers have about public disclosure? • What is the positive/negative symbolic potential if the decision is understood/misunderstood? • How would my children look back on this?

I would be delighted to discuss further Tim Banfield tim. banfield@nichols. uk. com +44 (0) 7730 814057 www. nicholsgroup. co. uk