Programme Turnaround: Public Sector
The Situation
An international organisation had recognised a growing issue with project and programme delivery- particularly affecting large scale IT projects. Budget for projects and programmes was growing significantly and represented the majority of the organisation's discretionary cost base. IT systems were being delivered late, over budget and with critical functionality ditched in the run up to go live. Internally there was an increasing chasm between IT staff (who were mostly contractors) and "the business" (who were mostly full time client staff). Key external stakeholders were becoming aware of the problem and comments were raised by external auditors. The role of the organisation was being increasingly challenged.
The Approach
After an initial analysis, we recognised that current steps to improve this area were inadequate- they aimed at developing a sub-committee of the management team to manage the projects and programmes on a collective basis. We developed a proposal for a root and branch turnaround of the projects and programmes, focusing upon identifying and transferring accountability for programmes to individual senior business leaders. This proposal was strongly supported by the CEO and Deputy CEO as well as the management team. Starting from a point of identifying which projects were in progress and getting control of the budget, we focused on implementing transparent governance and a programme lifecycle and portfolio management process. We established a central light touch Programme Management Office (PMO) led by a senior business leader. The IT department was placed under business control and restructured into development and operations. Now under business control, IT were able to rationalise staff as well as move away from building customised IT systems to buying off the shelf packages.
The Outcome
For the first time senior management had visibility, accountability and control of the multiple projects and programmes. External audit recognised a significant improvement, removing observations and stating that best in class processes were being implemented- which could transfer across to similar organisations in this sector. The programme budget was brought under control. Capability across full time staff involved in project management was enhanced. The PMO is established as a centre of excellence and are now accountable for developing capability. The turnaround phase ended successfully- the transformation stage has started well and will progress over the next few years.
An international organisation had recognised a growing issue with project and programme delivery- particularly affecting large scale IT projects. Budget for projects and programmes was growing significantly and represented the majority of the organisation's discretionary cost base. IT systems were being delivered late, over budget and with critical functionality ditched in the run up to go live. Internally there was an increasing chasm between IT staff (who were mostly contractors) and "the business" (who were mostly full time client staff). Key external stakeholders were becoming aware of the problem and comments were raised by external auditors. The role of the organisation was being increasingly challenged.
The Approach
After an initial analysis, we recognised that current steps to improve this area were inadequate- they aimed at developing a sub-committee of the management team to manage the projects and programmes on a collective basis. We developed a proposal for a root and branch turnaround of the projects and programmes, focusing upon identifying and transferring accountability for programmes to individual senior business leaders. This proposal was strongly supported by the CEO and Deputy CEO as well as the management team. Starting from a point of identifying which projects were in progress and getting control of the budget, we focused on implementing transparent governance and a programme lifecycle and portfolio management process. We established a central light touch Programme Management Office (PMO) led by a senior business leader. The IT department was placed under business control and restructured into development and operations. Now under business control, IT were able to rationalise staff as well as move away from building customised IT systems to buying off the shelf packages.
The Outcome
For the first time senior management had visibility, accountability and control of the multiple projects and programmes. External audit recognised a significant improvement, removing observations and stating that best in class processes were being implemented- which could transfer across to similar organisations in this sector. The programme budget was brought under control. Capability across full time staff involved in project management was enhanced. The PMO is established as a centre of excellence and are now accountable for developing capability. The turnaround phase ended successfully- the transformation stage has started well and will progress over the next few years.