Supporting Public Administration in Brazil Study of Methodologies for Portfolio Project Management, Successful Experiences from the UK and Applicability for the Brazilian Public Service PRODUCT ONE: INCEPTION REPORT AND WORK PLAN
INCEPTION REPORT Supporting Public Administration in Brazil Study of Methodologies for Portfolio Project Management, Successful Experiences from the UK and Applicability for the Brazilian Public Service November1 st -9 th 2012 This project has been funded with support from the UK Foreign and Commonwealth Office. The contents herein reflect the views of the author only, and the UK FCO cannot be held responsible for any use that may be made of the information contained therein.
1. Background In September 2012, IFCI launched a Request for Services in order to procure the services of an international consultant for 40 business days. The purpose is to identify best practices in project management, with a particular focus upon portfolio project management, from the UK and to explain through a study of the methodologies centred upon the UK cabinet office, of successful tools in portfolio, programme and project management. A contract was duly signed in October 2012. The Terms of Reference stipulates three products. These are: Product One: A detailed work plan and methodology of the work to be performed and relevant bibliography (this document) Product Two: The study containing analysis of methodologies for project and portfolio management, including successful experiences form the UK as well as proposals considering the Brazilian reality Product Three (a): Presentation of the study and report on decisions reached, (including signatures of participants, photographs of the event), and slides used during the presentation. Product Three (b): final report including Swot analysis for portfolio management and recommendations The Inception Phase kicked off with a briefing meeting with relevant people in the OPM from the Ministry of Planning, Budget and Management. To reduce costs associated with this project, this meeting was conducted by teleconference/skype to the satisfaction of both sides. The consultant, before this contract, worked with the ministry of planning on an EU funded project and thus was well familiar with the specificities of the Brazilian context. Prior to submitting this report, it was submitted in draft to the ministry for their comments and suggestions. This document may thus be considered as agreed with the beneficiary of this intervention.
2. Project Synopsis 2.1 Overall Objective The global objective of the project is to enhance efficiency in the Brazilian public administration. 2.2 Project Purpose The specific purpose of this project is to identify best practices based upon the experiences from the United Kingdom for improved public management through the provision of methodologies in project and programme management, with a specific focus on portfolio project management. 3. Approach and Methodology Over the past thirty years or so, organisations, whether private or public, have increasingly recognised the need to manage projects properly. While projects are seen as additions to business as usual, increasingly the way in which an organisation manages projects will mark it out as being more successful than others are. While project management is, by its nature, old, arguably it took off with the rise of IT technology from the 1980s onwards. This spawned in effect the project management industry that we see today. In the UK, during the Blair administration (1997-2007), much effort was put into trying to increase efficiency into the provision of public services and to bring about public administration reform. Within project management terms, it was realised that governments engage in many projects, but that at the same time many of those projects fail or do not bring about the overall changes that were envisaged. Research into the nature of projects and how they were conducted, showed a clear relationship between projects and a need to somehow bring projects together. In addition, it was further found that for projects to be successful there was a requirement that they be more closely tied to the way a particular organisation was run and linked more concretely to its strategic plan and purpose. Through the efforts of the Cabinet Office, new tools were created to enable organisations both public and private to manage projects more effectively and to bring the management of projects together. These were first formulated in terms of programme management and later portfolio project management. Today the UK has a sophisticated range of models and tools available for organisations to manage not only projects, but to ensure they are all aligned to the strategic objectives of the particular organisation.
In summary the tools provide for: Senior management to make decisions on prioritization, risk management, and deployment of resources across an organization to successfully deliver their business objectives (portfolio management) The Identification and realization of outcomes and benefits via programmes and projects (programme management) The delivery of programmes and projects within time, cost, quality and other organizational constraints (project management) The Brazilian public administration has long recognised the need for quality project management. The Ministry of Planning, Budget and Management is the responsible ministry of the Brazilian Federal Government. Its function is to plan the government's administration, plan its costs, analyze the usability of projects, manage budgets and distribute funds to state as well as government projects. In recognition of the increasing importance of projects in the last year or so, changes have been made to the public administration. In May 2011, the government established the Board of Management Policies, Performance and Competitiveness. This board aims to formulate specific policies and measures to rationalize the use of public resources, control and improve public management as well as coordinate and promote their implementation with a view to improving standards of efficiency, effectiveness, responsiveness, transparency and quality of public administration and the services provided to citizens under those areas under the federal government s responsibility. Moreover, the Ministry of Planning in 2011-2012 underwent organisational change. The Department of Public Administration at the Ministry of Planning, Budget and Management (SEGEP) was established by Decree No. 7675 of 20 January 2012. Its aim is to improve the performance of the Federal Government by streamlining procedures and spending in order to increase efficiency in the provision of public services. SEGEP is the result of an amalgamation of the Departments of Administration and Human Resources. The creation of the department led to the need to redesign work processes and the creation and abolition of various sub-units. One of the new units introduced was the Office of Special Projects Management Modernization (ESPRO). Its mission is to manage special projects for the modernization of public administration, supporting agencies to achieve the expected results. In late 2012, a Special Advisory Office for the Modernization of the State, was established that is directly responsible to the Minister rather than through the Segep Secretary. This is also known as the Escritório de Projetos or PMO. Since its inception in early 2012 the number of projects has increased and is set to grow further. It is estimated by early 2013, the office will have under its stewardship some fifty projects. Currently, the OPM is utilizing Mepcp or Structured Methodology of Project Planning and Control. This is a methodology based on concepts from PMBOK and the PDCA cycle. Discussions between the Ministry of Planning and UK representatives in Brasilia resulted in agreement to hire a consultant to provide a study of the portfolio, programme and project management tools used in the UK and to test with the OPM their applicability and possible adoption.
In effect, the OPM has two main challenges. Firstly, there is the management of the projects directly under their supervision. These are the fifty referred to above. There are then other projects conducted within the federal administration that the OPM is required to have a watching brief over. The contents of the study will be as follows: Introduction to portfolio and programme management Critical analysis of theoretical framework relative to project portfolio management, discussing, among other topics, pipeline management, human, material and financial resource management, risk assessment and managing change Guide to the P3M3, MoP and P3O methodologies and applicability; UK experiences with P3M3, MoP and P3O While conducting the study, the consultant will keep in close contact with the OPM to ensure that the findings are in-line with the Brazilian realities. Moreover, the consultant will conduct structured interviews using Skype with key personnel in the OPM to test out the findings and to determine specific issues and problems that the OPM faces. A presentation of the study will be given to OPM and other interested parties in Brasilia. Following the presentation the consultant will conduct a SWOT analysis with the OPM using elements of P3M3 to discern its level of maturity and its specific applicability in the Brazilian context. These are planned to take place during the second week of January 2013. The final report will provide details of the SWOT analysis as well as recommendations regarding implementation of portfolio management in the OPM and proposals for future implementation of systematic project prioritization in the OPM, with suggestions of key elements for evaluation and determination of critical moments in project and portfolio evaluation. The website http://www.best-management-practice.com provides all the tools and literature available of the methods used for portfolio, programme and project management by the UK government. The materials on this site will be the main source of the study. The site also leads on to many examples of how the various tools have been used in different organisations and thus will be used as best practice or successful examples. Where necessary, the consultant will contact the organisations that have been implementing P3M3, MoP and P30 methodologies. The main titles that will be used in the study are: HM Treasury and Cabinet Office (2011) Major Project approval and assurance guidance.
National Audit Office (June 2010) Assurance for high risk projects. OGC (2005) The eight common causes of project failure, London TSO OGC (2007) Managing Successful Programmes, London: TSO. OGC (2008) P3O (Portfolio, Programme and Project Offices), London. OGC (2009) PRINCE2, London: TSO. OGC (2010) Management of Portfolios (third draft), London. An Executive Guide to Portfolio Management. London: TSO (The Stationery Office), 2012. Management of Portfolios Book: London: TSO (The Stationery Office), 2011. Managing Successful Programmes Pocketbook. London: TSO (The Stationery Office), 2005. A number of white papers will also be consulted. These include: Capital Investment Governance MSP - A Basic Overview. How do organizations benefit from using the Managing Successful Programmes framework? Everything you wanted to know about Managing Successful Programmes (MSP) in less than one thousand words! MSP : The Basics. Everything you wanted to know about Management of Risk (M_o_R ) in less than 1000 words. Applying Management of Risk (M_o_R ) for Public Services. Corporate Governance and Management of Risk (M_o_R ) Business Benefits of P3O Implementation. These are all accessible from: http://www.best-management-practice.com/knowledge- Centre/White-Papers/ 5. Overall Plan of Operations (Work Plan) The Overall Plan of Operations is as follows: Inception Phase: Product 1 - completed November 1 st - November 9 th, 2012 (5 days) Implementation Phase: Product 2 November 12 th, 2012 January 11 th, 2013 (23 days) Implementation Phase: Product 3 January 14 th, 2012 January 30 th, 2013 (12 days)
The proposed work plan is a reflection of the terms of reference for the project. The detailed work plan is provided in Annex I. Following the inception phase, the first implementation phase will see the production of Product 2. This will then be discussed at a presentation to be held in mid- January in Brasilia (Product 3a). A SWOT analysis workshop will be conducted with the OPM to discern the applicability of the tools. The results of the SWOT analysis along with recommendations will be provided in the final report (Product 3b). This will also take into account any revisions to product 2 that might derive from the presentation.
ANNEX I WORKPLAN OF THE PROJECT Week number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Oct - Nov 12 Dec 12 Jan 13 Ref Result/Phase and Activities 29-2 5-9 12-16 19-23 26-30 03-07 10-14 17-21 24-28 31-04 07-11 14-18 21-25 28-01 Total 1 Inception Phase (Product One) 1.1 Discussion with Min of Planning 2 2 1.2 Inception report and work plan 1 2 3 Sub Total 5 2 Study report of methodologies for portfolio and project management, with successful experiences from the UK and recommendations for the OPM (Product 2) 2.1 Research and interviews 1 3 3 3 10 2.2 Production of report 2 2 5 4 13 Sub Total 23 3 Presentation and report of presentation to OPM with conclusions (Product 3) 3.1 Presentation production 3 3 3.2 Presentation workshop and SWOT analysis 5 5 3.3 Final Report 4 4 Sub Total 12 Totals 5 10 10 10 10 6 10 10 5 5 5 3 5 4 40