National IT Project Management Methodology

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1 NATIONAL INFORMATION TECHNOLOGY AUTHORITY - UGANDA National IT Project Management Methodology Project Reporting Support Guide Version 0.5 Project Reporting Support Guide version 0.5 Page 1

2 Document Version Control Version Date Author Change Description Gerald Kisongoch, PMP. Draft Gerald Kisongoch,PMP, PMI-RMP Content Review Abdul Nsubuga, PMP Document general review and restructuring July 2013 Taskforce Incorporated Workshop comments Projects Reporting Support Guide version 0.5 Page 2

3 Table of Contents 1. INTRODUCTION Project Reporting Overview SCALABILITY MONITORING PROJECT PERFORMANCE REPORTING PROJECT PERFORMANCE REPORTING SCHEDULE Projects Off-Track and Exception Reporting Performance Reports Pipeline Report Project Status Report Project Finance Report Project Cost Tracker Dashboard Report PERFORMANCE REPORT DEFINITIONS Project / Programme Health Project Health (Traffic Light) Indicators Delivery Confidence Project Governance Business Change Management Benefits Realisation Project Dependency Project Resourcing Project Scope PROJECT STAGE GATES Project Stage Gate Definitions PROJECT SCHEDULE INDICATORS PROJECT BUDGET INDICATORS Projects Reporting Support Guide version 0.5 Page 3

4 1. Introduction 1.1 Project Reporting Overview This document provides guidance on the performance reporting used to monitor and control projects using the guidelines provided in the National IT Project Management Methodology. The guidelines in this document have been developed to ensure all IT projects in government apply similar control mechanisms and report in a consistent manner. It is designed to be used by stakeholders who are participating in the project and are required to provide project reports Project progress should be monitored and reported throughout the project life-cycle to be able to establish the follow among other aspects: 1) Measure objectives and outcomes presented in the Business case VS the actual deliverables 2) Monitor whether the business case is still justified 3) Assess that the project still meets Business / Institution needs 4) Measure what is actually achieved against the baseline (time, budget and quality) 5) Assess what remains to be achieved and the effort required to achieve it 6) Update plans and revise forecasts 7) Identify what control actions and corrective actions are required to keep the project on track 8) Establish how efficiently are we using resources 9) Forecast what the project is likely to cost and time required 10) Provide the basis for lessons learned 11) Obtain performance metrics to provide estimates for future projects Projects Reporting Support Guide version 0.5 Page 4

5 2. Project Reporting Scalability 2.1 The project reports will look similar for all projects regardless of their key characteristics of size, risk and complexity. The only difference between projects reporting will be the level of granularity applied to the monitoring and control activities. For example small projects, Project team may only monitor summary performance information at the overall project level, such as, the start and end dates and total spend against total budget, whilst a medium and large projects monitor at a much lower level of detail down to key milestone and key deliverables start and finish timelines, key dependencies, monthly spend by activity/cost element against budget, risks, issues, changes and forecasts among others. 2.2 It is the Project Managers responsibility to engage with the Steering Committee and other stakeholders to agree on the appropriate level of details for their project reports. 3. Monitoring Project Performance 3.1 Project performance should be monitored and controlled against the approved business case, project management plan and project baselines to ensure the project is delivered to the agreed timelines, cost and expected quality deliverables. Controlling the project baseline is absolutely essential to project success. Project quality will be monitored using the project health indicators and project quality assurance and controls, which must be agreed up in the early stages (initiation and planning) of the project. 3.2 Table 1 below provides guidelines for the performance reports expected throughout the lifecycle of a project: Projects Reporting Support Guide version 0.5 Page 5

6 Table 1: Guidelines on Performance Reports Project Status Definition Report Type Project Initiation Funnel Pipeline Project is proposed and awaiting approval and funding to proceed. Project is committed and is awaiting funding approval, and Project Manager to be assigned to enable it to start. Pipeline Report Active In Progress The project is in-progress in its project planning or execution or stages Close-out Project Manager is being de-assigned and the project accounts are still open until all project costs are accounted for or until the financial year has closed. In-active Deferred The project is on hold or deferred to be re-started at a later date. Project Status Report Project/Programme Summary Report Dashboard Report Finance Report Earned Value Report (optional) Exception Report (for projects off-track) Final Project Status Report Final Project/Programme Summary Report Final Dashboard Report Final Finance Report Procurement status report Dashboard Report Finance Report Cancelled Closed The project is cancelled, the project manager is deassigned and the project accounts are closing or closed. Project Manager has been de-assigned and the project and finances have been closed. Final Project Status Report Final Project/Programme Summary Report Final Dashboard Report Final Finance Report Post Implementation Review 4. Reporting Project Performance Projects Reporting Support Guide version 0.5 Page 6

7 4.1 The performance reporting process involves the collection of all project/programme data, and distribution of performance information to stakeholders. Project performance should be reported at a detailed level for each individual project, and a one-page overview produced to report performance of all projects in the MDA. 4.2 All projects In-progress, the Project Manager should report on project performance each month, as a minimum. At the end of the Project Close-out stage, and before the project manager is de-assigned and the project is formally Closed, a final project closure report should be produced. 4.3 The table below outlines the project performance areas that should be monitored and controlled to maximise the success of a project: Table 2: Project Performance Areas to be Monitored and Controlled Monitoring Performance: Project Schedule against the Baseline Project Spend against the Baseline Budget Project Health Reporting: The actual and estimated start and completion dates for the project, stages and milestones are reported to monitor any deviation from the agreed baseline start and completion dates. If the deviation from the agreed baseline is greater than the agreed threshold for performance corrective action will be required. A baselined Project Implementation Plan will be the source of information. The actual spend and forecast cost at completion is reported to monitor any deviation from the agreed baseline budget. If the deviation from the agreed baseline is greater than the agreed threshold for performance corrective action will be required. Approved Budget will be the baseline source of information Traffic Light indicators are reported to monitor the health of a project and identify whether corrective Projects Reporting Support Guide version 0.5 Page 7

8 Project Achievements Project Outlook Escalated Risks Escalated Issues action is required in the following areas: o Delivery Confidence o Project Governance o Business Change o Benefits Realisation o Project Dependency o Project Resourcing o Project Scope The definitions section of this document describes how to apply these indicators. The actual achievements of the project within a set time period should be reported to monitor the progress of the project. An achievement is generally the completion of a key milestone or key deliverable, and the set time period is usually aligned to the reporting schedule i.e. over the previous reporting month. The project outlook monitors the planned achievements of the project over a set time period, which is usually aligned to the reporting schedule i.e. over next reporting month. The combination of Achievements and Outlook provides another checking mechanism for project performance i.e. if the achievements that were planned within a set time period were not actually achieved with that time period, the project may be experiencing problems with delay. The escalated risks are those that are of high impact and probability and cannot be mitigated within the threshold of the project and have been escalated to the Steering Committee for higher level management prevention. These are taken from the project Risk Log and closely monitored as they could severely impact the successful delivery of the project. The escalated issues are those that are of high impact and cannot be resolved within the threshold of the project and have therefore been escalated to the Steering Committee for higher level management Projects Reporting Support Guide version 0.5 Page 8

9 intervention and corrective action. These are taken from the project Issue Log and closely monitored as they are severely impacting the successful delivery of the project. 5. Reporting Schedule Project managers should produce projects and/or programmes performance reports monthly. The following report schedule should be observed. 5.1 Projects Off-Track and Exception Reporting Despite an exceptionally well planned project, the actual performance of the project may not always achieve the agreed thresholds set out in the project management plan, due to unforeseen influencing factors, namely risks and issues. The Project Manager should always agree the performance thresholds for each project with the Sponsor and Steering Committee, as percentage margins of time, cost and quality. This should allow actual performance to fluctuate within these percentage margins and the project will still be considered under control. The Project Manager should produce an Exception Report to advise the Steering Committee that the plan has deviated or is predicted to deviate, significantly, outside of its agreed threshold margins. An exception report describes the forecast deviation, and provides analysis of both the exception and corrective action in terms of cost, time and quality. The recommended options to bring the project back on track should also highlight any impact on the benefits stated in the business case to ensure its continued viability. Template is available in the project reporting tool kit. 5.2 Performance Reports All projects should produce performance reports unless there are exceptional circumstances and the Steering Committee. Template is available in the project reporting tool kit. Projects Reporting Support Guide version 0.5 Page 9

10 5.3 Pipeline Report The Pipeline Report should be produced to provide a high level view of all proposed projects that are in either Funnel or Pipeline status, in the Project initiation stage. Each proposed initiative is reviewed and prioritised, on a regular basis, as part of the business as usual planning process to decide whether it is a viable proposition, and therefore should be allocated funding to proceed. Template is available in the project reporting tool kit. 5.4 Project Status Report The Project Status Report should be produced monthly to enable key stakeholders track project schedule and budget against the baseline plan, assess the project health, and monitor risks, issues and changes. The information supplied in this report should be used to produce Dashboard Reports as part of the monthly reporting cycle. Template is available in the project reporting tool kit. 5.5 Project Finance Report The Project Finance Report should be produced monthly to track actual spend and forecast costs against the baseline Budget. The report should include the summary KPI information that can be extracted from the Project Cost Tracker. The summary finance information should be used to produce Dashboard Reports. Template is available in the project reporting tool kit. 5.6 Project Cost Tracker The Project Cost Tracker should be maintained by the by the Project Manager to capture and track the detailed project costs and latest forecasts. It is recommended that the project manager updates the Project Cost Tracker on a weekly basis and extracts the summary KPI information to update the Project Finance Report. Template is available in the project reporting tool kit. Projects Reporting Support Guide version 0.5 Page 10

11 5.7 Dashboard Report The Dashboard Report should be produced monthly to provide key stakeholders with a summary of project performance. The report provides KPI information on project schedule and budget against the baseline plan and project health. Template is available in the project reporting tool kit. 6. Performance Report Definitions 6.1 Project / Programme Health A project health should be monitored in the following areas indicators: 1) Delivery Confidence 2) Project Governance 3) Business Change Management 4) Benefits Realisation Plan 5) Project Dependency 6) Project Resourcing 7) Scope Guidance on Programmes: When reporting status on programme health, determine the overall importance of each project that is included within the Programme. Based on the project s health in a given area and based on the Programme Manager s judgement of all the factors influencing the overall performance of the programme the overall health of the Programme can be determined. Note: this is an informed but subjective view of project/programme health. Table 3: Project Health Reporting Tool Project Name:... Implementing Agency:... Project Manager:... Reporting Period:... No. Project Health Indicator Projects Reporting Support Guide version 0.5 Page 11

12 (Dashboard Elements) 1 Delivery Confidence 2 Project Governance 3 Business Change Management 4 Benefits Realisation Plan 5 Project Dependency 6 Project Resourcing 7 Scope Overall Project Health Project Managers Signature and Date: Steering Committee Chairperson Signature and Date: Table 4: Programme Health Reporting Tool Programme Name:... Implementing Agency:... Project A:... Project B:... Project C:... Period of Reporting:... Project A Project B Project C No. Health Indicator (Dashboard Elements) 1 Delivery Confidence 2 Project Governance Projects Reporting Support Guide version 0.5 Page 12

13 3 Business Change Management 4 Benefits Realisation Plan 5 Project Dependency 6 Project Resourcing 7 Scope Overall Project Health Overall Programme Health Project Manager Name, Sign & Date Steering Committee Sign Off 6.2 Project Health (Traffic Light) Indicators Traffic light indicators should highlight the health status of the project/programme to the best of the Project Manager's knowledge and judgement. Amber and Red indicators should be used to highlight whether the project is experiencing issues that may impact its success if corrective action is not taken in time Although Amber and Red indicators signal the need for management attention, the Project Manager should also follow normal escalation channels via the Steering Committee to escalate risks and issues that need management intervention. Table 5: Overall Programme / Project Health Indicators Definitions Traffic Light Green Definition Programme/project is performing within the agreed thresholds for the specified health indicator, and although there may be issues, these are Projects Reporting Support Guide version 0.5 Page 13

14 Amber Red under control and are not expected to impact the ability to deliver the project with the agreed thresholds. There are risks and issues affecting the health of the project that may impact the ability to deliver the project within the agreed thresholds. A corrective action plan in place/being agreed with higher management and the project is being monitored as high risk. The return to green comments should specifically state the level to which the issues have been escalated and what corrective action is being taken. An Exception Report may be required if there are significant risks with a number of health indicators that will impact the ability to deliver the project within the agreed thresholds. There are serious issues affecting the health of the project that are significantly impacting the ability to deliver the project, the project has exceeded its threshold The issues have been escalated for higher management attention for resolution, and a plan for corrective action is already in place. The return to green comments should specifically state the level to which the issues have been escalated and what corrective action is being taken. 6.3 Delivery Confidence This provides an overall indicator of the level of confidence in project delivery, based on the reported status of the other dashboard elements and latest estimates at completion It is recognised that large complex programmes/projects contain a mixture of good progress and problematic issues. The project/programme manager will use their judgment and insight to select the appropriate indicator using the guidelines as a common framework for their decision-making. Table 6: Delivery Confidence Indicators Definitions Traffic Light Green Amber Definition High: The project is running smoothly. Any issues experienced by project are under control and there is confidence that the project will be delivered within the agreed thresholds of time, quality and cost, and the benefits outlined in the business case are achievable. Medium: The project is experiencing some issues, which require Projects Reporting Support Guide version 0.5 Page 14

15 management attention as they may impact the ability to delivery project within the agreed thresholds of time, quality, cost or the benefits outlined in the business case. A corrective action plan in place/being agreed with higher management and this area is being monitored as high risk. The return to green comments should specifically state the level to which the issues have been escalated and what corrective action is being taken. Red Low: The project/programme is not performing within the agreed thresholds of the project management plan, as there are significant issues impacting the schedule, budget, quality, or benefits delivery that have been escalated to higher management for intervention and corrective action. The project/programme plan maybe undergoing a re-baseline and will require higher management attention until the issues are considered as under control and confidence in the delivery of the project has been regained. 6.4 Project Governance This indicates whether an appropriate governance structure is in place, the effectiveness of the governance structure and associated processes, and the engagement of key stakeholders. Table 7: Project Governance Indicators Definitions Traffic Light Green Definition Active/ Full Representation: An effective and clear governance structure has been implemented that is setting direction and actively managing major project issues on a regular basis. All appropriate stakeholder groups are represented within the process. Amber Active/ Partial Representation: A governance structure has been implemented, setting direction but not actively managing major project issues on a regular basis. Not all stakeholder groups are represented within the structure, and/or the structure is not entirely clear. Although this is not immediately impacting the ability to deliver successfully, corrective action is needed, and this area should be monitored as high risk. Red None/ Not Effective: No governance structure is in place, or the existing governance structure is ineffective, e.g. inappropriate stakeholder representation to ensure effective management decisions/intervention. There is a significant risk the governance structure will not be able to resolve project issues if/when they arise. Projects Reporting Support Guide version 0.5 Page 15

16 6.5 Business Change Management This indicates the readiness of the business with regards to managing and supporting the business and the human side of change, ensuring any new processes required are defined, the targeted community is ready, willing and able to utilise the new processes and tools and a change management implementation plan exists. Table 8: Business Change Management Indicators Definitions Traffic Light Green Amber Red Definition Actively Managed: The following framework of activities are underway: The impact of changes and the risks involved have been analysed and are being actively managed. Any new processes required have been defined, or plans exist to define them. Stakeholders are involved and are actively preparing for the transition. Business Change management Plans have been built and are being executed. The appropriate communications and training are being provided. Incentives are being provided to stakeholders to realise the change. Change agents are identified and equipped with reasons for and advantages of the change Top management support exists Minor Issues/Major Risks: The issues experienced in this area are considered as under control and a corrective action plan is being/has been agreed with higher management and this area is being monitored as high risk. Significant Issues: Significant issues exist in this area, which need immediate attention, as there is a significant impact on the successful delivery of the project due to inability of the business to effectively accept and adopt the change. The return to green comments should specifically state the level to which the issues have been escalated and what corrective action is being taken. 6.6 Benefits Realisation Projects Reporting Support Guide version 0.5 Page 16

17 6.6.1 This indicates whether the Institution has developed, documented and committed to a robust benefits realisation plan that will ensure all planned benefits are realised when the project is completed. Table 9: Benefits Realization Indicators Definitions Traffic Light Green Definition The Benefits Realisation Plan is documented to ensure the benefits outlined in the business case are achieved. Amber Red The Benefits Realisation Plan has been documented and agreed; however, the benefits may not be realized due to changes in environment or policy The Benefits Realisation Plan has not been formulated. The return to green comments should specifically state the level to which the issues have been escalated and what corrective action is being taken. 6.7 Project Dependency This indicates how well project dependencies are being managed. Table 10: Project Dependency Indicators Definitions Traffic Light Green Amber Red Definition Agreed and managed: All external and internal project dependencies have been identified. All relevant meetings with all parties have been set-up and the project plans have been integrated with those of the affected parties. Low risk of dependencies impacting the ability to deliver the project/programme successfully. Minor Issues/High Risk: There are issues, which may delay, or cause material changes to the project due to a dependency on an affected party or another project. The dependencies are either 1) being managed with the risk of impact being closely monitored and controlled, or 2) a corrective action plan is in place/being agreed with higher management to prevent the dependencies from having an impact. Impact is considered as under control and being monitored as high risk. Significant Issues: There is a major impact on the ability to deliver the project due to dependencies either 1) not having been identified or 2) being unmanageable. The issues have been escalated to higher management for intervention and corrective action, to enable the project to be delivered within the agreed thresholds. Projects Reporting Support Guide version 0.5 Page 17

18 6.8 Project Resourcing This indicates the status of project resources. Project managers provide their management judgment and insight on the appropriateness of the number and quality of their resources. Table 11: Project Resourcing Indicators Definitions Traffic Light Green Amber Red Definition Fully Resourced: All resources have been identified in the plan or are already assigned. Minor Issues/High Risk: Resources have not been identified, or made sufficiently available, or do not have the right capabilities to deliver the project work required. The issue with resources is either 1) being managed with the risk of impact being closely monitored and controlled, or 2) a corrective action plan is in place/being agreed with higher management. Impact is considered as under control and being monitored as high risk. Significant Issues: The project is significantly under-resourced, which is having a major impact on the ability to deliver within the agreed thresholds. The issues have been escalated to higher management for intervention and corrective action, to enable the project to be delivered within the agreed thresholds. 6.9 Project Scope This indicates how well the scope is being managed and all changes are being controlled. Table 12: Project Scope Indicators Definitions Traffic Light Green Definition Stable: Scope is well defined and a robust change control process is in place and being strictly adhered to. All changes have been assessed effectively and can be delivered within the agreed thresholds of the project. Project scope is considered as stable. Projects Reporting Support Guide version 0.5 Page 18

19 Amber Red Minor Issues/High Risk: There are a number of issues which may require a change to the project scope. The impact of the potential change to scope is either 1) being assessed, or has been assessed, and is considered as high risk as contingency will be required, or 2) management intervention may be required. Significant Scope Issues: There are significant scope issues and/or change control processes are not effective. The issues have been escalated to higher management for intervention and corrective action, to enable the project to be delivered within the agreed thresholds. 7. Project Stage Gates 7.1 Project Stage Gate Definitions The stage gates should be used to monitor and control project delivery, and additional information regarding to required documentation can be found in the main methodology section There are four stage gates and in the following section we define the indicators. Table 13: Stage Gate Status Indicators Definitions Traffic Light White Definition Not Started. Green Amber Achieving Schedule: The project is performing within the agreed baseline threshold for the stage schedule. Recoverable Deviation: The project is experiencing minor deviation (ranges from 6% - 15%) from the agreed baseline schedule, which is recoverable through corrective action recovery plan. There is minor or no impact on the critical path, business benefits or dependent projects. Red Significant Deviation: The project is experiencing major deviation (> 15%) from the agreed baseline schedule, and cannot be recovered with corrective action. There is sufficient impact on the critical path, business benefits or dependent projects that a correct action recovery plan will not bring the project back on track. The project scope and plan may need to be re-assessed and re-baselined. Projects Reporting Support Guide version 0.5 Page 19

20 Blue Completed. 8. Project Schedule Indicators 8.1 The following indicators should be referenced when monitoring and reporting project schedule Variance: Table 14: Schedule Variance Indicators Definitions Traffic Light Green Definition Achieving Schedule: The project is on or ahead of time (schedule). Amber Recoverable Deviation: The project has experienced some setbacks, which have led to a delay of between 5% - 15% over schedule. Has a minor and recoverable impact to the overall project delivery, i.e. the delays will not adversely affect the critical path, or impact dependent projects or committed benefits. Red Significant Deviation: Delays are >15% behind schedule. The project has experienced setbacks, which have led to delays that cannot be recovered. The overall project delivery will have to be put back, which may impact dependent projects and benefits delivery. The project plan is likely to require re-baselining to fully understand the business impact Percentage (%) Schedule variance is based on the difference between the planned schedule thresholds with the actual. Final Completion date Variance = Final date Planned. Schedule Variance Is a useful metric used to measure schedule performance on a project. SV = EV-PV. Positive SV means ahead of schedule; negative means the project is behind schedule. Zero means that all planned value was earned. Projects Reporting Support Guide version 0.5 Page 20

21 9. Project Budget Indicators 9.1 The Project Budget includes the agreed planned spend for the project. Additional information on Project Budget can be found in the Cost Management Guide. The following indicators are applied to monitor budget variance. Table 15: Budget Variance Indicators Definitions Traffic Light Green Amber Red Definition Achieving Budget for Current Spend to Date: The actual spend for the project to date is within the budgeted spend to date. Recoverable Deviation: The actual spend for the project to date is between 6% and 15% over / under the budgeted spend to date. Significant Deviation: The actual spend for the project to date is more than 15% over / under the budgeted spend to date. 9.2 Budget Variance % based on Estimate at Completion s the variance, as a percentage, between the Estimate at Completion (EAC) and the Total Project Budget. Variance = (EAC Budget) / Budget. Cost Variance Is a useful metric used to measure cost performance on a project. CV = EV- AC Positive CV means below budget; negative means the project is above budget. Zero means on budget It is important to determine the cause of variance and deciding whether corrective or preventive action is required. The larger percentage variances allowed at the start of the project can decrease as the project nears completion. Projects Reporting Support Guide version 0.5 Page 21

22 10. Related Support Guides The following support guides should be referenced when using this guide: 1. Project Initiation Support Guide 2. IT Project Steering Committee Support Guide 3. Project Manager Selection Support Guide 4. Project Change Management Guide 5. Project Reporting Support Guide Monthly Project Reporting Templates Detailed report Projects Reporting Support Guide version 0.5 Page 22

23 Dashboard Projects Reporting Support Guide version 0.5 Page 23

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