Project Management Guide

Transcription

1 Appendix 1 to agenda item 10 Project Management Guide 1 Introduction 1.1 Purpose This section sets out the key principles and expectations for how project management should take place at Chichester District Council (CDC). It is aimed at everyone who has a role in managing or delivering projects and links to our annual planning cycle and performance monitoring processes. It is based on PRINCE2 methodology but has been tailored to CDC s own governance structure for project management. The guidance is not designed to be a training manual on how to be a project manager although basic information is included alongside supporting information and useful templates (see section six). New project managers may therefore require additional support or training if considered necessary. 2. Our Guiding Principles 2.1 What is a project? Whilst there are many definitions of a project, one of the most important things to determine is whether you are really commencing a project. It is possible that the activities you are going to undertake are actually an extension of your routine work or business as usual. We recognise that projects are different from the everyday operations of the council in that they: Have an agreed start and end date. Introduce change by creating something new or altering something that is already in place. This could include changes to processes, procedures or systems. Involves significant resources from other parts of the organisation or external providers. Have defined objectives and outcomes and create new outputs that will enable benefits to be realised and measured. Have a specific, temporary management organisation and governance arrangements set up for the duration of the project. Are susceptible to risks not usually encountered in the day to day operations of the council. Have fixed funding that could come from external sources or specially allocated budgets. 2.2 Typical Project Lifecycle Best practices in project management agree that well run projects should use a lifecycle view to help those involved understand what needs to be done to manage and execute the project and to make timely decisions about the project s status and progress. Although there are a number of recognised project lifecycle models available each follow a phased approach along the lines of:

2 Project start Project execution Project close Define and agree the project objectives. Compile the business case, setting out the expected outcomes and how they will be measured. Identify the project costs and resources required. Produce project plans and agree how the project will be managed. Gain approval for the project to commence. Execute agreed plans and produce required outputs. Monitor and report performance, expenditure and progress. Report any critical issues by exception. Watch for and assess risks. Review the project s performance, expenditure and management. Identify lessons learned. Gain approval to close the project. Confirm how outstanding outcomes will be realised and measured. 2.3 Inputs, Outputs and Outcomes Every project must have a clearly defined business case at the outset in order to judge whether it is worth proceeding with or not. Rather than just focusing on time, cost, quality and the immediate outputs of the project; it is also necessary to identify what outcomes will be achieved. A basic guide to help distinguish between outputs and outcomes is included below. Input Output Outcome Outcome Measure Inputs are the resources that contribute to project delivery. Inputs commonly include things such as staff time, funding, assets or IT systems. An output is the immediate result of the project - what is produced - and can be tangible or intangible. For example a new building built, a new strategy written, a new process or system implemented. An outcome is the result of the change derived from the output it is the WHY the council is doing an activity rather than the WHAT. For example, if the immediate output is the implementation of a new applications system, the expected outcome could be that applications are processed more quickly and accurately. An outcome measure helps us to realise the benefits that derive from the project outcome(s). Using the previous example, an outcome measure for a new applications system could be that costs are reduced by 10%, the volume of applications increases by 15% and revenue increases by 10% annually. 2.4 Overarching Principles Regardless of the size of the project, the following principles should apply (although the level of detail may vary). 1. Business case: The project must have a clear business case which ultimately feeds into the council s Corporate Plan. If the project is not meeting an identified need or if the expected outcomes are not clear from the outset then it should be reconsidered before proceeding. 2. Defined roles and responsibilities: Every project must have one Senior Responsible Owner who takes ultimate responsibility and accountability for its

3 successful completion. It is also essential that all project participants know what their responsibilities are and how they fit with the project s objectives. 3. Sufficient resources: Ensure the project is adequately resourced. Input from support services (e.g. Finance, HR, ICT, Legal, Procurement, Estates) must be identified and agreed as early as possible. 4. Risks managed: Establish what the risks are and frequently review throughout the life of the project. 5. Plan: The project must be planned with key milestones and timescales identified. This can only be done to a level of detail that is manageable and foreseeable. A detailed plan for the short term and an outline plan for the long term is an effective approach dividing the project into a number of management stages as necessary. 6. Control and report by exception: The project must be kept under an appropriate level of control and regularly reviewed against the business case. Any significant issues or changes to the business case, project plan, level of risk, or variation against the project budget should be escalated to the next management level or in line with the project s management structure. 7. Communication: Get all relevant stakeholders on board and communicate regularly, including issues and progress against the project plan. 8. Lessons learned and post project evaluation: Keep a log of lessons learned along the way and evaluate the project upon completion, establishing whether the expected outcomes were successfully met or not. Where any expected outcomes and/or outcome measures are yet to be realised these should be identified in the post project evaluation alongside anticipated timescales for their achievement so they can be evaluated in the future. 3. Project Governance 3.1 Project Scale Whilst there may be similarities, all projects are unique and will vary in size, complexity, importance and risk. As a consequence not all projects need the same degree of control and management. For this reason we have created three simple categories of project which are set out below and when initiating a new project, the Project Type Matrix template should be completed to determine which category your project falls into based on the total score awarded (see Documents and Templates - section 6.1). However, remember that assessing the scale of a project is not an entirely objective process; experience and common sense should also be used to confirm the most appropriate level of management.

4 Small Project score of 22 or less A project that is mainly delivered by a single person or a single team, often without the need for resources from another service area. The project cost is under 50,000 and has limited or loose links to the council s Corporate Plan. Project details should be recorded in the relevant Service Plan specifying the expected outcomes and key milestones. Project management should be at service level, although significant issues should be reported by exception to the next level of management. Project progress should be monitored within the service via Covalent if considered appropriate by the Assistant Director. Medium Project score from 23 to 62 A project that involves more than one service area. The project cost is 50,000 to 175,000 and directly contributes to a Corporate Plan objective. The Initial Project Proposal Document (IPPD), the Project Initiation Document (PID) and the Post Project Evaluation (PPE) must go to the Corporate Management Team (CMT) to approve and give instruction on how to proceed. Project roles and responsibilities must also be defined and allocated at the start of the project. Any support services must be engaged at the earliest stage to advise on costs, risks, technical capabilities and timescales. Project progress must be monitored via Covalent and updated monthly. Critical issues such as changes (realised or anticipated) to the business case, project plan, level of risk, or variation against the project budget must be reported to CMT via their monthly exception performance reports unless it is time critical in which case it should be raised earlier. Large Project score of 63 or more Same as medium project but the project cost is over 175,000 and directly contributes to more than one Corporate Plan objective. The PID and an Options Appraisal must go to CMT and be approved by Cabinet. In compliance with the council s Constitution, all large projects must also include a representative of the Section 151 Officer to ensure that all governance issues are complied with. This person must have no operational responsibilities within the project team. Critical issues such as changes (realised or anticipated) to the business case, project plan, level of risk, or variation against the project budget must be reported to Cabinet if considered appropriate by CMT or the Senior Responsible Owner. 3.2 Project Documentation The table below sets out the minimum project documentation requirements for each project type.

5 Requirement Project Type Small Medium Large Project overview in Annual Service Plan. Yes Yes Yes Initial Project Proposal Document. No Yes Yes Project Initiation Document. No Yes Yes Options Appraisal Document. No No Yes Monthly progress updates via Covalent Optional Yes Yes covering: progress to date, any issues that may affect the project plan, next steps. Completion statement via Covalent Optional Yes Yes covering: summary of achievements, key lessons learned, when a post project evaluation is expected. Post Project Evaluation Document. No Yes Yes 3.3 Roles and Responsibilities Who Council Cabinet Cabinet Member All Members What Approves the council s budget spending plans, including the Capital Programme, and the Council Tax for the year ahead. Adopts the Corporate Plan. Is responsible for the review and implementation of the council s Asset Management Plan, Asset Renewal Programme and the Capital Strategy. Annually reviews the Corporate Plan as part of an informal meeting and considers the existing list of Corporate Plan projects. Agrees the Corporate Plan and approves all related IPPDs for medium and large scale projects. Approves PIDs for large scale non IT projects. Receives PPE documents for large scale non IT projects. Receives exception reports for large scale projects covering any critical issues such as changes (realised or anticipated) to the business case, project plan, level of risk, or variation against the project budget as considered appropriate by CMT or the Senior Responsible Owner. Will receive monthly exception reports electronically to monitor progress against Capital and Corporate Plan projects. Has responsibility for the delivery of projects within their portfolio. Must be involved in the development and consideration of all IPPDs, PIDs and PPEs within their portfolio and must agree the content before it reaches Cabinet. The Cabinet Member for Finance must consider all PIDs for large scale projects following CMT sign-off and before it reaches Cabinet. The Cabinet Member for Corporate Services and Communications has overall responsibility for Project Management process. Review the performance against the Capital Programme via quarterly Covalent reports posted on the Members Bulletin Board. Review the performance against projects contained in the Corporate Plan via a mid-year Covalent report posted on the

6 Overview & Scrutiny Committee IT Advisory Group Business Routeing Panel Corporate Management Team Senior Responsible Owner Project Manager Members Bulletin Board. Reviews the performance against projects contained in the Corporate Plan. Reviews the community outcomes and benefits achieved for projects it feels appropriate. Monitors the progress of IT projects. Receives all PIDs for all IT projects. Receives all PPE documents for all IT projects. Considers the council work plan. Decides whether a new project should have member involvement and whether certain stages of a project should be routed to a specific committee or Task and Finish Group. Acts a Project Management Board. Receives all IPPDs, PIDs, and PPE documents and agrees next steps. Monitors progress of projects, mainly by exception. Receives requests for changes (realised or anticipated) to the business case, project plan, level of risk, or variation against the project budget and will refer to Cabinet as appropriate. Supports Cabinet in the annual review of the Corporate Plan. Considers the council work plan and supports the Business Routeing Panel. The Executive Director of Support Services and the Economy has overall responsibility for the Project Management process including training. Will normally be an Assistant Director or Director but could be a senior manager for small projects. Champions the project and has overall responsibility for its delivery. Ensures that the business case is sound and manages the approval of the project. Responsible for ensuring that an initial kick off meeting takes place with all the anticipated key players to discuss the vision of the project and likely issues (e.g. financial, legal, ICT) to allow for an early understanding of the level of support required internally. Identifies the core Project Team at the kick off meeting including the Project Manager and a substitute in case the Project Manager is absent. Provides support to the Project Manager. Ensures the Project Manager has all the resources necessary to deliver the project at their disposal. Resolves any issues at a level outside the scope of the Project Manager, for example resources/priorities. Refers issues by exception to CMT. Reports to the relevant Cabinet Member, Cabinet, Overview and Scrutiny Committee, Corporate Governance and Audit Committee or IT Advisory Group as required. Ensures the relevant Cabinet Member is engaged in the development and agreement of the IPPD, PID and PPE. Will normally be a senior manager or an appropriately qualified officer and can sit outside the project service area.

7 Project Team The role should not be shared and is the single focus for day-today management of the project. Responsible for producing project documentation including the PID and PPE. Manages the project delivery including management of the project budget and Project Team (where appropriate). Responsible for ensuring effective completion of the project as specified in the PID. Keeps the Senior Responsible Owner regularly informed of progress and of any significant deviation from the project plan (realised and anticipated). Responsible for contacting Corporate Policy to ask for the project details, together with the approved budget and project milestones, to be added to Covalent. Responsible for producing monthly progress updates for Covalent. Ensures project team meetings are arranged as appropriate. Provides reports as required by the Senior Responsible Owner. Not all projects will require a team for delivery. For some it will mean a cross service officer team, whilst others will also have member representation. A Project Team: Should be made up of officers who have the required skills, experience and knowledge to deliver the project. Project Team members must be identified in the PID and their participation must be agreed by the relevant Director to ensure there is enough capacity to support the project. Project Team members must fully understand their roles and responsibilities. Is responsible for carrying out tasks allocated by the Project Manager in accordance with the PID and is collectively responsible for the delivery of the project. Provides progress updates to the Project Manager (frequency to be defined by Project Manager) and raise issues as they occur. The size of the Project Team can vary depending on the type and scope of project. All large projects must also include a representative of the Section 151 Officer on the Project Team. 4. Project Monitoring Covalent is used across the council to monitor progress against projects and to track performance against outcome measures. The detail of the project or outcome measure is initially uploaded onto Covalent by Corporate Policy for the relevant service/project Manager to maintain. This information must be supplied by the Project Manager, taken from the IPPD and PID once approved. All officers and members are able to have read only access to Covalent and each service has a minimum of one user license. For larger projects it is beneficial to use a tool such Microsoft Project to plan the key dates, map out critical paths, and allocate roles to individuals. The approach taken to manage the project plan can be decided by the Project Manager however project progress, budget and key milestones must be uploaded onto Covalent for all medium and large projects to ensure CMT and members are informed of the project s status and to support successful exception reporting.

8 5. Annual Planning Cycle Whilst it is appreciated that new projects may arise during the year in response to unforeseen circumstances, the annual planning cycle exists to ensure new project proposals are prioritised according to the objectives set out in our Corporate Plan. For more information on the key activities and timescales in relation to the annual planning cycle please refer to Section Two of the toolkit The Annual Planning Cycle (to be developed). 6. Supporting Information 6.1 Documents and Templates Included below are links to the templates referred to in this guide and should be used as required. They are also available on the x drive under the Project Management folder. Project Type Matrix. Initial Project Proposal Document. Project Initiation Document. Options Appraisal. Post Project Evaluation Document. Summary of Key Actions Based on Project Type. 6.2 Useful Information Useful Documents and Information The Official PRINCE2 Website Project and Programme Management Community of Practice an online group to share thoughts, ideas and expertise. The Council s Work plan Access to Covalent List of PRINCE2 / Project Management qualified CDC staff Source Access is via the Knowledge Hub: Available on the X drive: X:\Work planning\council Workplan Read only access is available to all CDC staff and Members using the following log in details: Username: chichester Password: covalent Available on the X drive: X:\Project Management\Guidance & Templates