Presentation on theme: "Public procurement Tim Banfield Director National Audit Office 27 June 2013."— Presentation transcript:
Public procurement Tim Banfield Director National Audit Office 27 June 2013
Four aspects: Why projects matter for government; Our evaluative approach; How we are developing our skills; How we share insights.
Why projects matter for government Projects are the currency to deliver change; 95 percent of government policy is delivered through projects; The majority of public sector projects do not deliver as expected; Failures may relate to efficiency (ie not delivering to time/cost/performance) and/or effectiveness (not achieving the desired benefit/policy outcome); The private sector isn’t much better.
GMPP £384 bn HO DfE £6,699m DEFRA £3,969m HMRC DCMS CO NS&I FCO ONS DfID DCLG HMT DWP £26951m DoH £20344 £13,201m £12,489m £1,465m £1,218m £840m £713m £521m £423m £115m £20m MoD £150,782m DECC £89,068m DfT £46,970 m DWP £26,506 m DoH £19,927 m BiS HO MoJ £7,736m £1,221m
Characteristics -Strategically important programmes -High value/risk/ reward -Unique projects, complex & uncertain -Long-term horizons Complex CBA Vested interests in projects Contracting with powerful players Long supply chains Operational impacts, some managed through third parties Decommissioning challenges Complex accounting Contingency planning and maintain/replace decisions Governance & accountability Resource constraints Financial management Business transformation Providers of last resort for strategic national services Management and maintenance of current asset base Management challenges
There are plenty of examples of good project planning and execution……… Few could have envisaged how successful the London 2012 Games would turn out to be. The construction programme was completed on time and within budget, 11 million tickets were sold and our athletes excelled. Crucially, the Games passed off without major transport disruption or security incident. Taken as a whole, the Games were a success by any reasonable measure and it looks as if not all of the Funding Package will be used.
How we look at project delivery (1) Influencing improvement Desired Capability state Current State of Capability Delivery Environment & Complexity Value for money
Would you bet your own money on this project delivering the policy objectives There are ten factors common to projects. They provide a framework to: Understand the specific challenges the project faces; Assess whether the bespoke delivery approach proposed is realistic; Judge whether the project has a good chance of achieving its objectives. Source: NAO analysis of over 3,500 projects
How we look at project delivery (2) Influencing improvement Desired Capability state Current State of Capability Delivery Environment & Complexity Value for money Judgement Organisational Competency Portfolio Prioritisation and Management Individual Project & Programmes Knowledge Base What works, fails, why and effect Capability across government Departmental assessments Intelligence on current portfolio of major projects
Capability Growth Path Indicative Roles, Contributions RoleComplexity of Project (DECA) Basic Project Management tools techniques Understanding leadership & behaviour NAO Knowledge/ Back Catalogue exploitation NAO AnalyticsExternal Profile Lead interventions, advisory & quality assurance ComplexExpert in some aspect, competent in most Application of analytics & interpretation Comprehensive knowledge & interpretation Thought leaderThought leadership NAO ambassador Manage delivery & apply complex analytics & quality assurance ComplexCompetent in most, growing expertise in some Application of analytics & interpretation Comprehensive knowledge & some interpretation Lead developmentRecognised expertise NAO ambassador Lead application of analytics & quality assurance ComplicatedCompetent in some & potential expertise identified Awareness of dynamics & analytical tools Interrogate & utilise appropriately Contribute to development Contribute to debate NAO ambassador SupportingSimpleAppreciationAwarenessAccess & understanding Awareness & understanding Engages Portfolio of Evidence (Authentic, Valid, Reliable, Current, Sufficient) Attribute Based- Professional qualifications - CPD - Contribution to development of profession - Specific qualifications e.g. PRINCE 2 - Assurance/Gateway reviewer Performance - NAO intervention experience Based- Analytic development - Corporate knowledge development - Secondment - Previous career - External engagement - Academic engagement & research Collegiate - Support to colleagues Behaviours- Learn contribution - Ability to work with clients Competencies UnitElementsWhy it MattersIllustrative Techniques/ Attributes Understanding successTranslating policy intent Benefits optimisation Requirement setting Systems engineering Value engineering Benefits management Sponsorship Designing the delivery approach Understanding the delivery environment & complexity Alternative delivery models The legal & legislative framework Parliamentary procedure Organisation design Portfolios presentation Making investment decisions Time and cost forecasting Risk and uncertainty controls Estimations Monte Carlo simulation Reference class forecasting Historic trend analysis Risk management Scenario modelling CBA & business cases Delivery through/ with others Commercial engagement Engagement with other delivery partners Broader stakeholder/ influencer relationships Legal & EU law Contractual design Negotiation Stakeholder mapping & relationship mgt Public enquiries & legal challenge Behavioural aspectsDelivery leadership Organisation & personal incentives The operating environment Skills & capability development Project prioritisationProject controls Change management Disputes Interdependencies EVM Schedule design Dispute resolution/ arbitration Team building & dynamics Decision making Transition to BAUAcceptance Process & cultural alignment Learning & applying knowledge Change management Novice Knowledgeable Experienced Expert Capability Time * Evaluation Point * * *
Five key elements for initiating successful projects
GMPP Portfolio Management On Time On Budget Delivering Specified Benefits THE MPA LEADERSHIP ACADEMY World class project leaders Much improved outcomes Value for money GOVERNMENT MAJOR PROJECTS PORTFOLIO MAJOR PROJECTS LEADERSHIP ACADEMY OPERATING ENVIRONMENT ACHIEVEMENTS & LEARNING Portfolio Management On Time On Budget Delivering Specified Benefits World class project leaders Much improved outcomes Value for money The ultimate Approach The ultimate Structure The ultimate process Interactive electronic dimension Advanced access systems Sophisticated alignment tool The 4 Pillars of the Major Projects Authority
Thinking differently about success 2. Outcomes How the project is used Impact Relevance Take -up 3. Benefits What value is added to society (realisation of policy) Sustainability Satisfies needs Economic effects 1. Outputs Performance Time Cost Quality