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A Pocket guide
Contents
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Section A: Introduction
What is a Centre of Excellence?
The corporate context of programme and project management delivery
Why is it important to coordinate delivery?
The Centre of Excellence: coordinating delivery
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Introduction
This guide outlines the role of the Centre of Excellence (also known as a Programme
and Project Support Unit or Corporate Programme Management Office in central
government) in coordinating and supporting delivery. This function is different from a
programme or project support office because it provides the management board with a
strategic oversight of delivery.
The guide provides a quick reference to good practice and a routemap to more detailed
sources of advice and guidance. It takes account of lessons learned from OGC
Gateway reviews and other sources; it integrates with existing programme/project and
risk management guidance. It helps your organisation to achieve better, more consistent
delivery of your organisations programmes and projects.
If you are the manager of a Centre of Excellence, this guide helps you to determine
what you and your team should do to coordinate delivery and support
programme/project teams.
If you are a programme or project manager, this guide helps you to identify the
support you can expect from your local Centre of Excellence, and the governance
arrangements which will apply.
Section A
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Introduction
more effective deployment of scarce resources: the right people with the right skills for
delivery
better results from individual projects: more consistent approach, better supported and
better managed.
appropriate skills for the programme/project team (plus expert advice when needed)
Upwards:
making sure that the management board gets a consistent and reliable report on
the main things it needs to know - delivery milestones, current risks etc - so that it
can make informed decisions about what to do
offering advice and support on challenging the business case for individual
initiatives, from start-up to close-down
Inwards:
making sure that every team has access to the programme/project management
skills it needs
making sure that programmes and projects are managed in line with best practice,
so that they can do things in a repeatable way, learn and improve
challenging individual programmes and projects that are not carrying out all the
activities that are associated with successful delivery.
Outwards:
coordinating OGC Gateway reviews or equivalent independent reviews
networking with peers and central bodies so as to learn from them and share
experiences
in more complex environments, liaising with external delivery partners who are
outside their control.
Portfolio management and prioritisation are critical to successful delivery (see section B:
Managing Delivery). Best practices for delivery include programme and project
management, risk and quality management, benefits management and stakeholder
management; these are outlined in section B, with recommended standards summarised
in section C: Organisation and Standards. Other necessary processes, such as
procurement and contract management, are covered in OGC guidance available on the
OGC website at www.ogc.gov.uk/
Organisations will vary in their ability to cover this wide scope initially but most will have
these functions in place as a core set. See section D: Improving Capability to assess your
organisations current capability and identify targets for improvement plans.
The Centre of Excellence should have close links with internal audit, corporate planning
and performance, and strategy units. Its structure should be tailored to the needs of your
organisation, appropriate to its current level of maturity in delivery and its governance
requirements (see sections C and D).
Section B
Managing Delivery
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Managing Delivery
Overview
This section describes the tasks of coordinating and managing delivery. These tasks
involve two key areas of expertise: managing the portfolio, and programme/project
management (PPM). The section starts with an overview of the corporate context of the
COE, and the roles played by various business and functional managers in ensuring
successful delivery of programmes and projects.
The corporate investment board scrutinises business cases for delivery programmes
throughout their lifecycle
The finance and procurement functions advise on achievability of the portfolio and
procurement approaches
The HR function provides the interface for recruitment, training and staff development
in the programme and project management specialism.
The Centre of Excellence also coordinates and liaises with Finance, HR, corporate risk
management, the CIO function and other parts of the organisation to ensure a joined-up
delivery support framework across the department.
Delivery Roles
The table below summarises the key delivery roles; the exact titles of the roles will vary
from organisation to organisation. An individual might have more than one role; they are
not mutually exclusive.
Perspective
Management
board
Responsibility
Setting strategic
direction
Corporate
Making investment
overview of
decisions
current delivery
portfolio
Managing
commercial aspects
Managing corporate
governance
Accounting Officer
Heads of Centre of Excellence or equivalent
coordinating group
Risk Implementation Managers or equivalent
Managing risk at
the corporate level
Individual
Delivering
programmes and outcomes through
projects
programmes and
projects
Ongoing
operational
services and
benefits
realisation
Who
Continuing to
deliver outcomes
through operational
services
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Portfolio management
The key question is: What should be done with available resources? Only those
programmes and projects that contribute most strongly to the organisations business
strategy should be chosen to go forward. The management board selects programmes
and projects for inclusion in the portfolio, with advice and support from the Centre of
Excellence. Subsequently the Centre of Excellence reports on progress against plans, so
that the management board can make informed decisions about the portfolio.
The Centre of Excellence assesses new and existing programmes and projects in the light
of Board decisions, considering them in relationship to:
compliance with the agreed scope matches the criteria for success and not drifting
from the agreed scope.
All major programmes and projects should be included in the Boards portfolio, which will
need to be revisited at regular intervals by the Board with advice from the Centre of
Excellence. Reshaping the portfolio will depend on:
current capability and capacity to deliver programmes and projects within the portfolio
current commitments externally with partners and internally to existing service levels
and operations.
Step 2: Ascertain what is already in place and where new programmes and projects
will fit in.
Step 4: Investigate the business case for each proposed programme and project. Is it
worth doing? Determine the contribution to strategic objectives; benefits; added value.
Is it achievable and do stakeholders support it?
Step 5: Check the programme/projects fit within the portfolio and corporate priorities
even though it is worth doing, there may be higher priorities.
Step 6: Confirm that the programme or project should go ahead; if so, it will form part
of the agreed portfolio. Ensure that the delivery approach has been thought through
and that the teams competencies match the initiative.
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Step 7: Revisit individual programmes and projects at key decision points. Has the
strategy changed? Are priorities different? Are resources no longer available? What
should be done if a project is out of control? What would be the impact of redeploying
resources to support failing projects?
Look to the future - plan for known changes and forecast the future demands on
resources.
For advice on setting up a portfolio, see the OGC document Portfolio Management Building a portfolio management function an illustrative framework on page 6.
Figure 4 shows in outline the processes involved in establishing and managing the
organisations portfolio of programmes and projects.
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Highly Desirable programmes or projects are important (but not essential) for major
initiatives as above; or they are essential to the successful delivery of a minor
legislative requirement, a high profile (but not PSA) target or other government policy
initiatives. Alternatively, if they fail, there are serious (but not catastrophic) implications
for major initiatives and/or catastrophic implications for the delivery of non-key public
services or the realisation of significant business benefits.
Desirable programmes or projects are all those that do not meet the Mission Critical
or Highly Desirable criteria, but remain important to the sponsoring department.
whether the initiative is inherently high risk: where there is radical change, complexity
or innovation, uncertainty of outcome, large scale, and sensitivity if the project fails or
multiple partners/delivery agents are involved.
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Programme management
The aim of programmes is to achieve the desired outcome and realise the expected
benefits. Programme management coordinates, directs and implements a related set of
projects. It is not always clear whether to deliver an initiative as a programme or project;
the table below provides some pointers. Further detailed guidance on programme and
project management topics is available on the OGC website: www.ogc.gov.uk/
Programme or Project?
Programme
Project
Long timescale
Large scale and/or complex and/or uncertain, with Short term and very clearly defined?
a long time frame? Should be rescoped as a set Should be managed as a project
of coordinated projects and managed as a
programme
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Governance Roles
Programme governance (see Figure 6) is tailored to the requirements of a specific
programme, taking account of:
the relationship required with project organisations there must be clear reporting
lines from the individual projects, through a project board if required
whether a formal programme board is needed, in which case the programme owner
would chair the board as its executive, and key stakeholders take the role of
programme board members.
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clearly defined outcomes, appropriate scope and understanding about what success
will mean
It is important to note that a large project may have its own project office; the relationship
between this office and any programme office and the Centre of Excellence must be
clearly defined.
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Project management
Introduction
The organisation must adopt a good project management method to guide every project
through a controlled, well managed, visible set of activities to achieve the desired results.
Adopting the principles of good project management will help the organisation avoid the
most common project failures; these principles are:
a project is a finite process with a defined start and end
for genuine commitment to the project, all parties must be clear about why the project
is needed, what it is intended to achieve, how the outcome is to be achieved, and
what their responsibilities are in that achievement.
The Centre of Excellence is responsible for ensuring that all projects in the organisation
are run according to these principles, and for embedding a project management method in
the organisation.
pilots or prototypes, to test on a small scale whether the proposed option would work
in practice but large enough to mimic the real thing
modules a distinct part of the programme/ project that delivers some benefit even if
the other parts of the programme/ project are not complete (e.g. providing one
component of the planned service and adding others later)
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Risk management
Programme level risk management
Typical risks at the programme level are associated with acquisition, funding,
organisational and cultural issues, projects, security, safety, quality and business
continuity.
Project and operational risks should be escalated to the programme level against set
criteria where they exceed agreed tolerances, such as an unacceptable exposure to risk, if
they fall outside certain limits, or if they could affect programme objectives.
Before initiating any programme or major project, the organisation should make a realistic
assessment of its readiness to cope with complex change. These questions provide an
indicator of the issues that should be probed:
If these preconditions for success are not met, any programme or project is at high risk.
These questions should be revisited at each significant decision point in a programme or
major project.
Risk management at this level should be applied where:
the information about risk can influence the programme most effectively, such as
where critical decisions are to be taken
decisions being taken at the strategic level require programme risk information
the business case for the programme or associated projects is being revised or
reviewed
considering all the projects that make up a programme as representing a single entity.
Where appropriate, decisions about risk at this level form an important part of the
business case.
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Risks are identified and logged in risk registers with ownership at an appropriate level
within the organisation
Risks are analysed and monitored in terms of probability, impact and dependencies
Risks are proactively managed at the most appropriate level within the organisation
and escalation mechanisms are clear and effective
Risk reporting is open and honest to ensure that the benefits of early warning are
realised.
Quality Management
The approach to Quality management should ensure that:
Quality controls, such as walkthroughs and design reviews, are used as appropriate,
and provide early indication of non-conformity with stated quality criteria. Design
Quality Indicators are used for construction projects.
Robust business cases are produced for all significant programmes and projects and
cover strategic fit with the organisations objectives, achievability, affordability, value
for money and an appraisal of options.
Business cases are maintained throughout the life of programmes and projects and
are reviewed at each key decision stage.
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Benefits management
The approach to Benefits management should ensure that:
Expected benefits are identified and fully defined, including attributes, measures,
owners and risks.
Benefits realisation plans are in place and actively monitored for all programmes
Requirements management
The approach to Requirements management should ensure that:
Requirements are defined, prioritised and baselined following agreement between all
key stakeholders.
Programme outcomes/project outputs are modelled to gain clarity and are formally
verified against the agreed requirements.
There is a clear process for baselining requirements and managing changes to them.
Key stakeholders are engaged in the development of the policy and business case
and their interests are regularly assessed during the lifecycle of the
programme/project.
Gateway reviews
The OGC Gateway Process examines programmes and projects at key decision points in
their lifecycle. It looks ahead to provide assurance that they can progress successfully to
the next stage.
Programme Reviews are carried out under OGC Gateway Review 0: Strategic
Assessment. A programme will generally undergo three or more OGC Gateway Reviews
0: an early Review; one or more Reviews at key decision points during the course of the
programme, and a final Review at the conclusion of the programme.
Project Reviews are carried out under OGC Gateway Reviews 1 - 5; typically a project will
undergo all five of these Reviews during its lifecycle three before commitment to invest,
and two looking at service implementation and confirmation of the operational benefits.
Project Reviews may be repeated as necessary depending on the size, scope and
complexity of the project.
Each of these Reviews is described in the appropriate Workbook; all Workbooks are
available on the OGC website: www.ogc.gov.uk/
Section C
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Overview
This section describes different organisation models for a Centre of Excellence, with
advice on setting up a Centre of Excellence. It also includes notes on appropriate
processes and standards.
Organisation models
There are a variety of corporate management models in existence and no one size PPM
Centre of Excellence will fit all. To be effective the Centre of Excellence must align itself
with the existing model, understanding the relationship between various elements, and
position itself to maximise the benefits of shared information and influence.
Three options for organising the Centre of Excellence are widely used in the public sector.
Other variations on these models may be equally appropriate, so long as they enable a
coordinated approach to delivery across the organisation. The main options are:
a virtual group, which has a core team but draws upon specific skills and
competencies from across the organisation to fulfil the requirements for a Centre of
Excellence
a federated group, which resembles a hub and spoke structure and can be either
physical or virtual, or a combination of both. This type of structure is usually more
suited to an organisation that has a diverse range of activities and satellite operations
such as Executive Agencies and non-departmental public bodies.
The governance arrangements described throughout this Pocket guide would be effective
with each of these models. However, the virtual model would need to accommodate a
combination of matrix management and line management. The federated model would
require a steering committee with representatives from the hub and each of the satellites
to ensure collective buy-in.
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C
O
E
Adopting
Portfolio
Management
Embedding
Key
Practices
Improving
Capability &
Skills
Improvement
ImprovementPlans
Plans
B
O
A
R
D
Good practice
Communication plan: the Centre of Excellence should identify key contacts and
establish good working relationships. This will enable it to gather the necessary
information, communicate and report effectively.
Measurement for the Centre of Excellences value to the organisation: the Centre of
Excellence should develop and implement measurement processes to assess the
value to the organisation of its services, and determine what impact it is making on the
organisations delivery capability.
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obtaining the capability to introduce the new function (resources could ultimately be
absorbed into operational functions) and producing recommendations for resourcing
the function over the long term across the whole organisation (and partners, where
applicable)
developing a formal approvals process for selecting programmes and projects for
inclusion in the portfolio, including their ongoing scrutiny
Phase 2 involves:
running and improving the new systems across the whole organisation
developing a process for assessing the organisations current capability and capacity
to deliver the portfolio
developing a process for assessing the overall capability and capacity of programme
and project teams, matched to the needs of specific initiatives
identifying and developing training programmes that are good value for money.
Governance
The principles of governance need to be applied consistently at portfolio, programme and
project level. The main factors for effective governance are outlined below.
The management board is ultimately accountable for ensuring that programmes and
projects achieve the required outcomes.
Membership of the board includes those with a track record of successful delivery.
Levels of accountability are clearly defined and ownership agreed throughout the
delivery chain.
Programmes are initiated on a sound basis, aligned with strategic objectives, have
clearly defined outcomes, delivery strategy and governance arrangements.
Governance structures for cross-cutting initiatives take account of cultural fit and
practices across organisational boundaries.
Common standards for reporting are consistently applied with different partners,
different programmes and different projects.
The right things are measured across the work streams and managed by exception.
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Consolidated reporting on key programme and project risks (high level risk register
with traffic lights).
Balanced Scorecard reports (showing progress against key targets and providing
commentary).
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programme management: managing stakeholder needs and the delivery of a coordinated set of projects, which ensures that the right governance arrangements are
in place and critical relationships between projects are managed
procurement: enables acquisition within EU procurement rules; if not done well, value
for money will not be achieved and the organisation may be in breach of EU rules
contract and supplier management: provides the foundation for operational service
delivery and relationships with suppliers; weak contract management and/or the
wrong supplier relationship is a persistent theme in NAO investigations
risk management: enables all the major risks to be identified and managed; without
effective risk management the project cannot be controlled
benefits management: provides a framework for realising the benefits on which the
investment was justified; without active management, benefits cannot be achieved
and value for money is lost
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processes that are in place to release and embed methods, techniques and tools into
standard but continuously improving processes
lessons learnt processes that are in place within the organisation for collection of
lessons and dissemination of best practice.
Section D
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Improving Capability
Overview
This section outlines the characteristics of a mature Centre of Excellence and provides
some criteria for developing targets for improvement plans.
the Centre of Excellence drives the scrutiny and challenge of the organisations
portfolio
the head of the Centre of Excellence has sufficient credibility, authority, capacity and
skills to influence and drive change across the organisation
the Centre of Excellence provides expert support and advice to programmes and
projects, e.g. coaching and mentoring of programme/project owners and programme
managers, facilitation of programme initiation workshops, advice on application of best
practice
the Centre of Excellence has a robust reporting process that provides the
management board with timely and accurate information on its portfolio and overall
improvement progress
the Centre of Excellence, in conjunction with internal audit and internal review
functions, has a strategy and programme of work to provide an assurance framework
(including Gateway Reviews and internal audit reviews) for the organisations
programmes and projects
the Centre of Excellence has effective mechanisms in place to assess the value of its
work and to determine priorities for improvement plans
the Centre of Excellence coordinates and improves the management of Risk across
the organisation
the Centre of Excellence challenges projects and programmes that are not performing
the activities that normally lead to successful delivery.
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Organisational learning
The requirement
Management boards will want to ensure that programme and project management (PPM)
approaches are repeatable and applied appropriately. If every project is managed
differently it is difficult to transfer lessons learnt to other projects. If the approach to PPM
cannot be repeated it cannot be improved.
Good practice
Analysing feedback from reviews: the Centre of Excellence evaluates reports from
major reviews such as OGC Gateway Review reports, Post Implementation Reports
and Post-Evaluation Reports, as well as other review documentation and
recommendations. It establishes the root causes of persistent problems or process
issues and triggers action for improvement.
Providing appropriate skills and resources: the Centre of Excellence has the
knowledge and expertise to be of direct assistance to programmes and projects and to
help them understand and make use of best practice.
Driving improvement: the Centre of Excellence ensures that the results of its analyses
and monitoring work feed into the promulgation of lessons learned and the
improvement of guidance and standards.
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Good practice
Assessing and monitoring availability and capacity of PPM: skill levels are defined
within a number of standards and are typically assessed through NVQ-type
assessments. The Centre of Excellence understands the implications this has for the
organisations capacity to deliver change.
Balancing supply and demand for Gateway reviewers or equivalents; planning for
medium risk reviews (central civil government): this is a key prerequisite to the
delegation of medium risk OGC Gateway Reviews and provides a reliable indicator of
the extent of PPM skills within the organisation.
Defining a process for selection and appointment of key PPM roles: key PPM staff
have the appropriate level of expertise matched to the complexity of the
programme/project and skills mix of others in the PPM team.
Programmes are owned at the correct level with skills and experience matched to the
scale and complexity of the programme.
A programme owner is appointed for each programme with overall accountability for
ensuring that the programme delivers its expected outcomes.
Projects have outputs with clearly defined success criteria that are linked to business
objectives.
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Good practice
Tracking progress against key targets and outcomes: there is timely and accurate
input to management board meetings in the form of status reports, risks,
dependencies, issues for action, lessons learned analyses, what if analyses and
forward looks to facilitate decision making.
Gateway (or equivalent) reviews: these are fully established for all categories of
programmes and projects.
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the current commitment (that is, all the current and proposed programmes and
projects for which the board is accountable)
the organisations current track record for delivery (that is, how well or badly it
manages programmes and projects)
improve the success rate of individual programmes and projects (the right projects
managed in the right way that is, delivering value; on time and within budget)
follow standard practices for managing programmes and projects (consistent ways of
doing things, tackling the persistent problems, learning from experience and
improving)
remove commitments that are beyond the organisations current capability and
capacity
ensure that only those programmes or projects with a clear linkage to strategic
objectives are approved.
Further Information
For further information contact OGC Service Desk on 0845 000 4999
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