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Department of Human Services P3M3 Capability Improvement Plan

January 2014 to December 2015

TABLE OF CONTENTS

EXECUTIVE SUMMARY.................................................................................................................................3WHY WE MUST IMPROVE OUR CAPABILITY TO DELIVER CHANGE AND ACHIEVE BENEFITS..........6

STRATEGIC ALIGNMENT...................................................................................................................................6

EXPECTED BENEFITS......................................................................................................................................7

THE P3M3 ASSESSMENT PROCESS...........................................................................................................8WHAT THE P3M3 CAPABILITIES WILL LOOK LIKE..................................................................................10

MATURITY TARGETS......................................................................................................................................10

FOCUS OF CONTINUOUS IMPROVEMENT ACTIVITIES........................................................................................14

HOW WE WILL GET THERE........................................................................................................................18CAPABILITY SPONSORSHIP AND MANAGEMENT...............................................................................................18

STAKEHOLDER ENGAGEMENT........................................................................................................................18

FUNDING......................................................................................................................................................18

OPPORTUNITIES AND CONSTRAINTS..............................................................................................................18

SCOPE.........................................................................................................................................................18

RISK MANAGEMENT.......................................................................................................................................23

GLOSSARY OF COMMONLY USED TERMS..............................................................................................25Attachment A................................................................................................................................................26Attachment B................................................................................................................................................32Attachment C................................................................................................................................................33

DOCUMENT CONTROLPURPOSE OF THIS PLAN

This document outlines the department’s plan for maintaining and improving our capability to manage ICT-enabled change initiatives. This document forms part of the report to the Secretaries’ ICT Governance Board.

ENDORSEMENT

This document was endorsed by the DHS Executive Committee on 11 March 2014.

2014-15 DHS CIP V1.1PAGE 2 OF 34 Department of Human Services

EXECUTIVE SUMMARYThis Portfolio, Programme and Project Management Maturity Model (P3M3) Capability Improvement Plan (CIP) covers the period from January 2014 – December 2015. The annual P3M3 assessments are completed by 30 September each year, and upon further findings from this year’s assessment, a refresh of this plan will be undertaken.

This CIP builds upon the successful outcomes of the department achieving consistent maturity levels of 4 across all of the seven P3M3 process perspectives and the six generic attributes for portfolio, programme and project management and aims to maintain and improve the capability achieved in the 2012-2013 P3M3 assessment. It targets achieving a maturity level of 4 across the board and where possible seeks stretch targets which will allow us to optimise our processes. This is in recognition of the current fiscally constrained environment as targeting level 5 across the board involves significantly more automation of our work and deliberate process optimisation. Table 1 highlights the areas of focus in portfolio, programme and project management in this CIP cycle which also responds to recommendations from the 2013 Assessment findings.

Table 1: 2014 to 2015 P3M3 targets and areas of improvement focus

Process Model

Dec 2010 result

Dec 2012 Target

Aug 2012 result

June 2013 Target

Aug 2013 result

Dec 2015 Target

Summary of key CIP focus

Portfolio 2 2 3 3 4 4

Focuses on benefits, financial and risk management as key processes for stretch targets as part of the department’s continuous improvement processes. Attention will be paid to increased use of process metrics with Enterprise Project Management Tool support.

Programme 1 3 4 4 4 4

Continue to embed learnings from the Service Delivery Reform programme into the management of all programmes undertaken by the department by strengthening the capacity of the enabling support and programme community.

Project 2 3 3 3 4 4

Ensure that project level processes continue to integrate well and benefit from the department’s strong portfolio and programme processes.


As shown in the table above the department has made a significant increase in maturity since the commencement of the P3M3 process in 2010. Note that the 2010 assessment results were pre-integration of the department, with the August 2012 result being the first assessment of the integrated department. The department exceeded its 2012 and 2013 targets. The achievement is largely credited to:

leveraging opportunities presented by the integration of the department such as the Executive focus on driving standardisation, cultural integration and improvement at all levels

the broader Service Delivery Reform (SDR) programme agenda and continued emphasis on programme management excellence

significant improvement in portfolio and project management.

To maintain and stretch our targets where appropriate, the CIP seeks to continue process standardisation and improvement, and embed good portfolio, programme and project management processes.

Key enablers identified for achieving the set targets include:

the continued leadership provided at the portfolio level by the key governance boards such as the Executive Committee, the Finance and Investment Committee (FIC) and the ICT Governance Committee where risk based decision making and assurance oversight is culturally embedded as standard operating protocol. This governance and applied consistency continues to cascade throughout all other governance and oversight boards and strong commitment of Senior Responsible Officials (SROs) is maintained.

continued workforce planning, recruitment and people capability strategies so that the high resource demands and appropriately skilled resources can be supplied to meet the resourcing requirements of new work. Meeting supply and demand with the required skills is a critical success factor and currently a key constraint in the APS recruitment climate.

Portfolio Programme Office (PPO)’s continued attention to ensuring effective Service Delivery Reform (SDR) and other programmes’ process improvements, lessons learned and tools are embedded and remain strong e.g. governance, risk management and assurance (external, internal and business design). This will strengthen the implementation of all new programmes, such as Child Support Systems Redesign (CSSR) and Shared Services, and support the high departmental maturity rating. Following the organisational intent to make the SDR Programme part of the way the department does business, many processes developed by SDR and other programmes continue to be embedded into departmental functions as Business as Usual. For instance, the involvement of the Executive in the management of business change is now reflected in the governance of business change organisation wide; and the SDR benefits function is now embedded in the CFO Division’s departmental Benefits Section and working across the department’s portfolio of programmes and projects.

the continued operation of the former Virtual Enterprise Portfolio Office now in the form of the CIP Working Group, made up of senior officer representation from the main Project Management Offices (PPO, ICT PMO, SDR PMO & CSSR PMO) and organisational process owners such as risk, finance, stakeholder, people resources, change and benefit management. This will help to maintain consistency of operation across the department’s portfolio of programmes and projects. The Working Group provides a sound mechanism for ensuring there is harmonisation of processes in spite of distributed process governance and ownership arrangement in the department.

the continued standardisation and improvement upon existing supportive frameworks and systems and aligning them with the portfolio, programme and project management frameworks as common practice. The ability for the PPO to continue to provide project


management training services, communities of interest and the project specialist role that delivers on the job advice and coaching to all programmes and projects, ensures the operational focus, compliance with the framework standards and improved process and tools adoption.

continue developing the capability of individuals across the relevant processes including business change, risk and benefit management and roles including Project and Programme Managers, Senior Responsible Officials (SROs) and Business Analysts.

strategic investment in our enterprise toolset that provides portfolio, programme and project process metrics - a key factor in level 4 maturity rating. This is exceptional as it is anticipated that achieving the 2015 targets will be primarily supported by the business as usual functions identified in this plan.

Key constraints that would impact and are most likely to reduce achievement of targets include:

any further machinery of government changes where the department would undertake integration or substantial integration with another agency or agencies: As DHS has achieved the highest maturity rating of Commonwealth (FMA) agencies in September 2013, other agencies integration will most likely reduce the maturity scores, as they are not as high as DHS’ current maturity position. There may also be a requirement for increased scope of work in the department, as evidenced by the introduction of the current shared services arrangement that may require extended capability and capacity.

APS recruitment environment that will constrain the department from recruiting appropriately skilled additional resources required to meet new work demands.


WHY WE MUST IMPROVE OUR CAPABILITY TO DELIVER CHANGE AND ACHIEVE BENEFITSDelivering successful change in a complex organisation such as DHS can be challenging. This is particularly so in a tight fiscal environment where the need for changes to actually deliver the expected benefits has become more critical. Improving the capability to deliver change and benefits does not only help the department to increase productivity and achieve its strategic goals but it is also a government imperative considering the introduction of the new Public Governance, Performance and Accountability Act 2013 (PGPA Act) and the outcomes from the National Commission of Audit.

Our current ratings indicate that we obtain and retain specific management metrics on our portfolio of programmes and projects as a means of predicting future performance. Furthermore, we assess our capacity to manage programmes and projects and prioritise them accordingly. This provides us with the capability to deliver significant change and effectively implement government initiatives. Agency capability is formally taken into consideration before undertaking major ICT projects that are either internally funded or receiving new policy proposal funding.

To enable the department to successfully manage the broad range of programmes we deliver on behalf of Government over the term of this plan, the department will continue to build on the existing governance mechanisms. These include supportive frameworks and systems, promoting excellent practices from SDR and other programmes and continuing to support the individual development of our people, in particular the role of the Senior Responsible Official (SRO).

STRATEGIC ALIGNMENTThe CIP enables the effective delivery of our portfolio of programmes and projects which is a mechanism for achieving the department’s strategic plan. The strategic plan is focused on four strategic themes around Government and customer outcomes, capable and engaged people, a strong collaborative approach and service transformation.

Government and customer outcomes: The majority of new government and customer initiatives are delivered through projects and programmes including initiatives such as Household Assistance Package, Building Australia Future Workforce, Aged Care Reform, Service Delivery Reform (SDR), Child Support System Redesign, Optimising Online Health Services for Healthcare and Shared Services. Their effective delivery means capability is built within the department for achieving positive outcomes and benefit realisation for government and customers; and improving the efficiency and cost effectiveness of service provision.

Capable and engaged people: Having the right balance of all our roles to meet our service delivery goals includes programme and project personnel who must be trained to deliver outstanding service outcomes for Government and customers through the delivery of initiatives.

Strong collaborative approach: The portfolio, programme and project framework espouses collaboration with relevant stakeholders including the community and customers, service partners and Government agencies. The engagement of the right stakeholders at the right level is a major contributor to successful outcomes as well as making a significant difference to benefits realisation.

Service transformation: The innovation the department provides in delivering connected and encompassing services to the community are often reflected in or delivered through projects and programmes. These are the vehicles for the transformational change DHS is delivering to our customers. Strategically the initiatives help the department to meet the evolving needs of Government, customers and other relevant stakeholders.


EXPECTED BENEFITS The benefits of capability maturity improvement are drawn from a correlation between mature processes and better outcomes. Implementing the CIP will not only see DHS continue to be a leading department within Australian Government for portfolio, programme and project management maturity but also help to:

maintain the Government’s confidence in the department’s ability to deliver large and complex service delivery and ICT reforms efficiently and effectively

ensure on-time, on budget delivery performance and outcomes of projects and programmes in accordance with the department’s budget statements. This is especially important in the context of achieving savings by on-time delivery of the expected outcomes for government.

ensure the department maintains adequate risk management and assurance oversight with increasing significant and complex changes so there are no adverse outcomes for government or customers

ensure portfolio resource allocation decisions direct resources to those initiatives with the highest priority

ensure increased benefits are realised from programmes of ICT enabled change ensure increased in portfolio, programme and project management capability and

experience as well as effective engagement of policy agencies.Ultimately, there are efficiency and effectiveness benefits to be achieved on a whole of government basis from improved capability.


THE P3M3 ASSESSMENT PROCESSThe Department of Human Services (DHS) engaged KPMG, an accredited P3M3 consultancy service provider who partnered with the PPO staff to undertake the P3M3 assessment in August 2013. This ensured that DHS had full visibility and understanding of the processes used, and ownership of the outcomes. It also meant that DHS could access the consultants’ expertise to build capability and ensure independent validation of the results. Table 2 itemises the maturity rating achieved in 2012-13 assessment.

Table 2: P3M3 Assessment Report (Ratings achieved in August 2013)

Process models Portfolio

Programme

Project

OVERALL ASSESSMENT 4 4 4

Process perspectives

Organisational Governance 4 4 4

Management Control 4 4 4

Stakeholder Engagement 4 4 4

Benefits Management 4 4 4

Financial Management 4 4 4

Resource Management 4 4 4

Risk Management 4 4 4

Generic Attributes

Roles and Responsibilities 4 4 4

Experience in Portfolio, Programme & Project Management (P3M) 4 4 4

Capability Development 4 4 4

Planning and Estimating Process 4 4 4

Information and Documentation 4 4 4

Scrutiny and Review 4 4 4

The P3M3 Assessment Report is the second DHS-wide P3M3 assessment encompassing the master programmes of Centrelink, Medicare and Child Support. The report notes that the consistent 2012/13 score of four across portfolio, programme and project, positions DHS in the top few Commonwealth agencies to have reached that level of maturity.

The report also notes that the level of maturity achieved is a result of continued focus and investment across DHS which can be summarised within three main themes:

1. a significant improvement in portfolio management in areas including financial management, business change management and cross government stakeholder engagement

2. continued emphasis on programme delivery excellence


3. a significant improvement in project management resulting from a structured focus on project management frameworks, consistency of implementation and capability development across DHS.

The report continues on to state that the assessment is a significant achievement for the department and positions DHS as a pre-eminent implementer for government. This level of maturity is a high watermark and DHS will need to continue to invest and maintain a focus on portfolio, programme and project management capability in order to maintain this level of maturity over the coming 12 to 24 months.

The detailed observations from the report have been incorporated into this plan.


WHAT THE P3M3 CAPABILITIES WILL LOOK LIKEMATURITY TARGETSTable 3 below identifies the individual process and attribute targets for this plan. The targets maintain the maturity ratings achieved in the 2013 assessment and seek to stretch where possible. The department recognises that maintaining the current level 4 maturity ratings and stretching for 5 ratings will require a continued focus and commitment from the organisation. Specific and generic attributes required for these ratings can be found at Attachment A.Table 3: Target maturity ratings

Process models Portfolio Programme

Project Portfolio Programm

e Project

December 2014 December 2015

OVERALL ASSESSMENT 4 4 4 4 4 4

Process perspectives

Organisational Governance 4 4 4 4 4 4

Management Control 4 4 4 4 4 4

Stakeholder Engagement 4 4 4 5 4 4

Benefits Management 4 4 4 5 4 4

Financial Management 4 4 4 5 5 5

Resource Management 4 4 4 4 4 4

Risk Management 4 4 4 5 5 5

Generic Attributes

Roles and Responsibilities

4 4 4 4 4 4

Experience in P3M 4 4 4 4 4 4

Capability Development 4 4 4 4 4 4

Planning and Estimating Process

4 4 4 4 4 4

Information and Documentation

4 4 4 4 4 4


Scrutiny and Review 4 4 4 4 4 4

The P3M3 report notes that in some areas stretching towards a higher rating could be considered and where possible efforts will be applied to do so, particularly in the areas of financial and risk management. However, at this stage, as also recommended in the report, the department will focus on maintaining and stabilising the consistent level 4 ratings. The fundamental design of the portfolio, programme and project management capabilities developed during the previous CIP will be maintained in the first year and stretched in the second year.

PORTFOLIO MANAGEMENTDHS is a large organisation and has a broad range of portfolio functions that together serve to form the key ‘office’ functions required to support portfolio management. The PPO will continue to work closely with the Chief Financial Officer (CFO) and Information and Communication Technology (ICT), as well as key functions that maintain supportive frameworks including risk management, benefits management, people capability, governance and stakeholder management.

This CIP Working Group supports a range of committees and governance mechanisms. The existing portfolio governance bodies comprising of the Executive Committee (EC), Finance and Investment Committee (FIC), and the ICT Governance Committee will continue to be the primary governance committees.

A coordinated approach to streamlining points of integration of portfolio, programme and project processes is a key element in sustaining the current maturity level. The CIP Working Group will continue to actively collaborate to improve processes that support the delivery of the department’s portfolio of programmes and projects.

The recent P3M3 report summarises the level of maturity achieved through the following examples:

over two years following the integration of the major master programmes, the DHS portfolio governance bodies comprising of the Executive Committee (EC), Finance & Investment Committee (FIC) and ICT Governance Committee are operating at a strong level of maturity and effectiveness. They ensure that the ICT change portfolio is effectively directed and prioritised according to numerous factors including mandatory requirements, strategic alignment, risk management and capacity planning.

The FIC ensures tight financial management across the portfolio, including initial costing analysis, fully costed business case approval and approval and management of discretionary projects.

there are enhanced cross departmental processes and practices for engagement with portfolio departments and central agencies. This positions DHS to positively impact and support Government priorities.

DHS has established a Change Command Centre and Change Front Door capability to assist with the assessment of impact on business as usual prior to the introduction of initiatives into the business. This capability assists with ongoing change management as new/enhanced functionality is delivered into business as usual.

DHS has established consistent reporting and control mechanisms across its programmes and projects including metrics which are providing a means for predicting future performance. This reporting and control is facilitated by PPO and the ICT Portfolio Management Office (ICT PMO).

DHS has established sound mechanisms to support resource management including capacity and capability planning for both business and ICT.


DHS has its own centrally controlled portfolio, programme and project management processes. Programmes and projects can flex within these processes to suit the context. Clear accountability exists for realising portfolio benefits and there is strong linkage between business operations and business benefits realised from the portfolio.

Note: For more information on the design of the portfolio management functions refer to the Portfolio Management Framework located on the Portfolio Programme Office intranet site. (see Attachment B: Portfolio at a Glance)

PROGRAMME MANAGEMENTThe SDR Programme has heavily influenced the development of the department’s Programme Management Framework and the achievement of the current levels. The investment in SDR has required a significant focus on programme management to achieve significant savings and benefits. SDR is becoming ‘business as usual’ and supports other programme management capability building more broadly. Naturally this will require tailoring the framework to programmes of varying size and complexity, examples of which already exist within the department.

The experience of key individuals in managing large programmes is a critical consideration in embedding programme management. A concentrated focus on organisational and individual capability improvement is a key element in sustaining the current maturity level.

The recent P3M3 report summarises the level of maturity achieved through the following examples:

major strategic change initiatives including SDR, Household Assistance Package (HAP) and Aged Care Reform are being run as strategic change programmes. These initiatives utilise centrally controlled and sound programme management processes, principles and governance arrangements, including benefits management and change management disciplines.

both the PPO and the ICT PMO have invested significant resources into skilling and supporting programme managers and business change managers. This was evident from the interviews conducted. This investment has enabled the achievement of a fairly strong level 4 maturity rating with all of the generic attributes rated at level 4.

a resource pool of trained and experienced programme managers and business change managers is clearly being developed by DHS to support current and future programmes.

programme managers monitor costs and expenditure in accordance with clear guidelines, procedures and tolerances. This is a process which is underpinned by regular monitoring of programme financial performance and business cases as they evolve through the programme lifecycle.

a culture of continuous improvement is being cultivated within DHS through the effective use of project specialists to coach and support sensible application at the project and programme levels. This is coupled with the effective use of “lessons learned” as a mechanism for sharing organisational experience and improving individual and business performance.

there is a clear and consistently applied accountability model for Programme Management which includes individual accountability for delivery and benefits realisation with clear hand offs and linkages between programme and business as usual.

Note: For more information on the design of the programme management functions refer to the Programme Management Framework located on the Portfolio Programme Office intranet site.


PROJECT MANAGEMENTThe department has integrated three agency project frameworks into a single framework. The framework provides consistent ‘language’ and structure for all projects. In addition the department has also extended this common framework with ICT specific extensions that integrate into the ICT systems development lifecycle. The most recent cycle has focused on simplification and streamlining the framework with a particular focus on removing duplication.

Again, the experience of project managers is a critical consideration. A concentrated focus on organisational and individual capability improvement is a key element in sustaining the current maturity level.

The P3M3 assessment report observes that project management is the area that has benefited from the greatest improvement in maturity over the last 12 months with all seven process perspectives moving from 3 to 4. The report attributes this improvement to three main areas.

1. There has been direct investment in project management learning and development and practice management. We note that across all of the P3M3 interviewees there was an evident uplift in project capability compared to prior years.

2. In its second year of operation, the DHS Portfolio Programme Office has significantly matured and is having a direct impact on project management practices, consistent application of organisational standards and generally lifting the standard of project management across DHS. For example:

centrally controlled project management processes and techniques are being used to effectively manage the delivery of new or enhanced capability.

sound project governance arrangements are being applied consistently, often within the boundaries of a larger change programme.

a resource pool of trained and experienced project managers is being developed by DHS to support current and future projects. This is supported by a focus on ongoing development for individuals in specific roles and the creation of forums to share organisational experience, lessons learned and knowledge across projects.

3. The improvement in portfolio management is also having a positive impact on project management practices as the DHS senior executive begin to set higher Departmental expectations on projects and project managers.

Note: For more information on the design of the Project Management functions refer to the Project Management Framework located on the Portfolio Programme Office intranet site.

PORTFOLIO, PROGRAMME AND PROJECT CAPABILITY GOVERNANCEThe PPO provides a central point of co-ordination of the P3M3 process. As noted under portfolio management, the CIP Working Group has responsibility for oversighting the development and implementation of the CIP. As key stakeholders and subject matter experts of various components within the P3M3 model, the CIP implementation benefits from continued sponsorship, ownership and management of interdependencies with respect to capability improvement. The terms of reference for the CIP Working Group is at Attachment C.


FOCUS OF CONTINUOUS IMPROVEMENT ACTIVITIESThe following table summarises how the department envisages each element within the P3M3 model will evolve over the period of this CIP. As stated, the focus of the changes relate primarily to maintaining and stabilising current maturity levels. Areas for specific improvement are based on the observations in the P3M3 assessment report and internal consultation.

Table 4: Focus of improvement activities for Jan 2014 – Dec 2015

Process Portfolio Programme Project Focus of maintenance activities and opportunities to improve

Organisational Governance 4 4 4

The governance that has been established at the portfolio level and the implementation of programme governance according to the framework is a key enabler to maintaining executive involvement and commitment. The CIP Working Group is collectively a key driver for ensuring that appropriate governance continues to be put in place as new initiatives are commenced. Opportunities to enhance the integrated reporting and metrics to inform executive decisions will further improve maturity and rating of this process. There is a high demand for metrics and trend analysis to continue to be aggregated by programmes and the portfolio. The department expends considerable effort in monitoring activities in order to achieve this high level of maturity.

Management Control 4 4 4

There is a very high level of executive engagement in P3M. Using programmes to group key change projects simplifies the portfolio view. Improvement to and integration of tools will enable the department to have greater visibility, consistency, accuracy and agility. Further maintaining knowledge management by utilising centralised tools in key areas will have maturity gains for the department. Where opportunities exist, effort will be applied to further tighten this capture of intelligence and to embed supportive frameworks into the P3M frameworks.

Stakeholder Engagement

5 4 4 Stakeholder engagement is a complex task within the department as change initiative often cut across two and three Groups unlike other agencies. Organisational stakeholder engagement capability will continue to be well integrated with P3M. The departmental stakeholder management function is represented on the CIP Working Group to further strengthen the integration with portfolio management practices and increase the sophistication of analysis and modelling. Where opportunities exist, capturing and measuring effectiveness of the stakeholder engagement and their influence will be sought or considered to be built into P3M practices or



templates, such as the Post Implementation Review. This will support a stretch target of 5 at the portfolio level. The department will continue to maintain current mechanisms for engaging and evaluating stakeholder engagement including customer satisfaction surveys, mechanisms outlined in business agreements with other federal agencies and state and territories agencies and annual surveys of senior executive in key federal partner agencies.

Benefits Management 5 4 4

Maintaining the maturity involves continuing the practice of aggregating projects with significant benefits (in particular savings) into programme structures to ensure information availability and consistency to support trend measurement and analysis. There will be continued effort to capture and measure all identified benefits from initiatives in flight. This will enhance monitoring of their realisation and fine tuning of indicators if required. Additionally, the departments Benefits Framework, Policy and tools will be further promoted and targeted training delivered to embed benefit management practices. The Benefits Team will work alongside the PPO to embrace opportunities for supporting P3M3 with Benefits Framework and review processes where capture of lessons learned can be enhanced and fed back for continuous improvement.

Financial Management 5 5 5

Improvement and integration of tools will enable the department to have greater visibility, accuracy and agility. This will allow for greater proactive portfolio control and prioritisation of individual projects by consistent application and analysis of initiatives data. Leveraging from maturity gained and application of consistent tools creates opportunity to establish measures to track costs and impact of realised benefits on the business. The use of the earned value concept will enhance performance monitoring.

Resource Management

4 4 4 DHS has sound mechanisms to support resource management including capacity and capability planning for both business and ICT Improvement. Integration of tools will enable the department to have greater visibility, accuracy and agility. This will contribute to more effective portfolio planning for the medium to long term investment horizon. Expansion and exploitation of work undertaken by Business Change Managers will be considered. Extraction plans for individuals leaving programmes or projects will support the continuous improvement process. There is



an opportunity for resource capability improvement through improved work design, information management and improved processing systems.

Risk Management 5 5 5

Risk management as a corporate process is embedded at all levels of management. Risk aggregation and analysis at programme and portfolio can be further enabled by including expertise of risk specialists and building this capability. Consideration will be given to how cost effectiveness of response measures are demonstrated across all programmes and projects consistently. Targeted risk training and assistance to be applied to ensure risks are actively owned and are consistent with realistic definition to risk responses.

Roles and Responsibilities 4 4 4

The department has approached P3M3 with a view to integrating roles and responsibilities into the existing structures within the department. Hence there is a high level of executive engagement and involvement. The assessment noted that the department is large and can largely ‘self-insure’ with respect to succession planning. Active development of interested and/or high performing project managers into the more complex skills of programme management is expected to develop further.

Experience in P3M 4 4 4

The maturity differentiator for the department is maintaining the culture of individual performance against defined key performance indicators.

Capability Development 4 4 4

Maintaining and growing the pool of individuals with the capability and skills to implement change is a core enabler. The PPO in conjunction with the ICT PMO, Workforce Planning and Learning and Development Branches will continue to run mentoring, training and communities of practice. Embedding P3M roles within the department is a key goal during this CIP. This will contribute towards making P3M capability building an integral part of the organisational functions involved in P3M.

Planning and Estimating 4 4 4

The department expends considerable effort in planning activities in order to achieve this high level of maturity. Improvement and integration of tools will enable the department to have greater visibility, accuracy and agility.

Information and Documentation

4 4 4 The department expends considerable effort in information management activities and aims to further develop trend analysis to identify improvement opportunities and decision making effectiveness. Improvement and integration of tools will enable the



department to have greater visibility, accuracy and agility.

Scrutiny and Review 4 4 4

The majority of review activity is aimed at individual programmes and projects. Portfolio review activity also encompasses a broader scope and looks for opportunities across programmes. Enhancing lessons learned processes and capture for dissemination will be reviewed and identified opportunities will be implemented.


HOW WE WILL GET THERECAPABILITY SPONSORSHIP AND MANAGEMENT

The sponsoring group for this plan is the DHS Executive Committee. The Senior Responsible Official is the Chief Financial Officer (observer at EC and a member of FIC). The P3M3 Capability Improvement Plan is one of the key strategic deliverables in the Portfolio Programme Office business plan, as part of the CFOs division. The National Manager, PPO will co-ordinate the governance committee and reference groups that will be responsible for implementing elements of the plan, and who will also collectively develop the plan for the next CIP cycle.

STAKEHOLDER ENGAGEMENT

The PPO will continue to work closely with CFO and ICT, as well as key functions such as Risk, Benefits, People Capability, Governance, Service Strategy and Policy, Strategic Information Division and Service Delivery Reform. The CIP Working Group is the core governance group for the implementation of the P3M3 Capability plan.

The CIP Working Group will further engage stakeholders, such as the broader project management community, via existing networks and forums and in specific working groups as required. Updates to the frameworks and tools will be coordinated and supported by relevant communication and training programmes. The PPO is the point of contact for the Australian Government Information Management Office (AGIMO) with respect to the P3M3 process and capability improvement plan.

FUNDING

The deliverables and activities outlined in this plan are primarily funded out of the business as usual office functions. There are also some initiatives that require additional investment.

This plan also relies on the SDR Programme contributing to the programme framework guidance and to provide active leadership and mentoring to the next set of programme leaders and managers outside of the SDR Programme. The SDR Programme continues over the timeframe of the next capability improvement cycle, and therefore will continue to directly support the maintenance of the programme maturity level in particular.

OPPORTUNITIES AND CONTRAINTS

DHS has continued to increase its P3M3 rating since its integration into a core department in 2011. Any future machinery of government changes or significant impacts from the National Commission of Audit may possibly impact the department’s maturity rating as a result of significant organisational changes.

SCOPE

This plan has been developed based on the maturity objectives of the department and the analysis of the last P3M3 assessment. The plan will be reviewed and updated with activities based on the outcomes of the next P3M3 review and the progress of the initiatives identified.

The key themes to maintain and drive further improvement are to:

continue to streamline functions and frameworks to make processes simpler for people and remove duplication. This incorporates embedding supportive frameworks into the P3M3 frameworks

implement better and more integrated tools to improve information availability and accuracy

deliver training to develop people with capability in portfolio, programme and project management

further integrate portfolio and programme reporting and enhance metrics to further support evidence based performance and decisions


increased workforce planning with key project and programme skills to enhance and transition key core skills from SDR into the PPO as support services

revisit and enhance continuous improvement activities, such as lessons learned to build upon knowledge management in centralised management offices of DHS such as PPO and the benefits, risk and financial management process areas

focus efforts to expand the Business Change Managers capabilities across the department

further embed benefits management practice across the department through targeted training now the policy, framework and tools are available for use.

The plan will also ensure that the P3M3 capability improvement aligns with other relevant business as usual activity and the action plan developed in response to the National Commission of Audit and impacts of the Public Governance, Performance and Accountability Act 2013.


Table 5: Key improvement initiatives for 2014-15

LEGEND Process Perspectives Generic Attributes1 - Organisational Governance 5 - Risk Management 8 - Roles and Responsibilities 11 - Planning & Estimating Processes2 - Management Control 6 - Resource Management 9 - Experience in Project/

Programme Management12 - Information Documentation

3 - Benefits Management 7 - Stakeholder Management 10 - Capability Development 13 - Scrutiny & Review4 - Financial Management*Reference numbers in the table relate to the above legend of process perspectives and generic attributes

Ref. Based on 2012-13 Assessment Recommendation

Activity Dec 2014 Dec 2015

1 Further consolidate and integrate ideas into strategic plan

Review Strategic Planning 31 Aug √

1& 4 Portfolio selection should not only be based on finance but consider, strategic goals, existing and upcoming initiatives and trend data of business performance

Support FIC with project definition and use of project and business performance metrics

√

1 Analyse, coordinate and manage impact of change

Streamline governance arrangements around change management

31 Apr

3 Manage dependencies between benefits

Improve portfolio benefits register and identify clear roles between the PPO and Change and Project Coordination branches to assist in embedding the benefits framework and tools

30June

3 Track negative and positive effects on the business - Increase identification and management of dis-benefits

Support staff with benefit identification and management through lifecycle of the benefit

√

3 Link benefits to business metrics Support staff with benefit identification linked to organisational KPIs.

Support staff with information on the impact of on-time delivery on benefits (e.g. savings) in keeping with expected government outcomes.

Progress work on information assets register to improve data stewardship

30 June

3 Tighten non-financial benefits Improve benefits framework continually and work with Change and Project Coordination for handling and embedding non-financial benefits management

Ongoing enhancement of the PPO assurance role in support of a robust outcomes framework

√

6 Build Business Change Managers Conduct targeted Business Change Manager Training

30Apr

√

2 Develop blueprinting skills Conduct targeted training and support for blueprinting process. Refine or develop core service offer for blueprinting

√

2 Build business configuration management of assets

Conduct targeted training on ARIS to support configuration management

√

3 Build benefit management skills Conduct targeted benefit management training

√

5 Build risk expertise Conduct targeted risk management training 31 Aug8 Build Programme Managers and

Business Analysts (BA)Conduct targeted programme management and BA training

√




10 Build Senior Responsible Officials Conduct SRO briefing √2, 8 & 6

Develop succession and extraction plans for staff retention and lessons respectively

Strengthen succession and extraction planning in line with suggestions on appropriate governance changes to enable the PPO to actively manage the project and programme capabilities within the department.

√

2 Embed capacity planning Provide annual workforce planning support 30 Jun2 Analyse data to justify resource

pooling as a mechanism for capacity and capability monitoring

Conduct annual workforce planning 30 Jun √

3 Improve Post Implementation Reviews (PIRS) focus on benefits

Continue framework improvement e.g. inclusion of agile methodology, benefits, SDR lessons, PIRs etc.

√

7 Clarify the role of stakeholders with high authority not on boards

Improve framework with stakeholder roles √

1 Improve framework with Project Brief

Reflect project brief in framework √

2 Support planning and monitoring with Enterprise PM Tool

Use existing tools and continue to rationalise them

√ √

4 Earned Value Reporting Continue process improvement √1 Reporting on business impact of

projectsRevisit programme reporting to identify impact of projects on business performance post implementation

√

4 Tracking & report on-cost of benefits

Improve budget allocation and reporting √

12 Use trend analysis to support decisions, proactive management of risk and continuous improvement

Strengthen Group Dashboards and Executive Dashboard with improved reporting of data

√

6 Track resource availability and utilisation

Continue status reporting √

6 Performance assessment based on initiative performance

Provide performance assessment guidance through the framework

√

4 Integrated BAU and P3 financial controls

Ongoing organisation-centric support and reporting processes

√

4 Base financial decision on actual and robust forecast data

Regular financial reporting √

4 & 11

Use trend data and lessons to improve costing

Enhancement to costing process via TM1 30 Apr

2 Centralise knowledge management function

Improve PPO’s portfolio knowledge management function

√

1 Improve knowledge management in support of continuous improvement

Redefine business processes & strategy for knowledge management

√

13 Implement sophisticated information distribution

Establish knowledge sharing mechanisms including stronger use of WIKI

√

5 Continued alignment between BAU and project Risk framework and ownership

Continue framework improvements 30 June

5 Consider opportunity risk Continue project risk support/workshops √ √5 Use of risk modelling and

simulationsConduct targeted risk management education and training

31 Aug √

5 Identify budgetary impact and cost effectiveness of risk response

Continue project risk reporting and benefits tracking

√ √

2 Use independent expertise on appropriate boards

Revisit governance framework for programmes and projects

√

2 Centralise and improve assurance function with tightened project review, this includes development of specialists for projects to refer to

Revisit assurance framework and strengthen implementation

√ √




when required.2 Implement mature board operations

broadlyImplement project earned autonomy and continue strong ICT Top Ten project governance

√ √

7 Centrally maintain stakeholder information

Develop central hub of stakeholder information

30 Apr

7 Measure stakeholder engagement effectiveness

Capture stakeholder engagement effectiveness via success criteria within project plans and PIRs and annual customer surveys

√


RISK MANAGEMENTThe department has a strategic risk to manage with respect to on-time, on-budget delivery of Government initiatives. The P3M3 Capability Improvement activities are a direct treatment for this risk. With respect to this CIP the following key risks are highlighted.

Risk statement Current Rating Treatment(s) Residual

Rating

If the current P3M3 maturity ratings are not maintained then this may impact the department’s ability (real or perceived) to deliver on Government initiatives and the current reform agenda

Medium

(Likely, Moderate)

The scope of this plan is primarily based on the continuation of activities commenced in the previous capability cycle, and activities identified in process areas business plans. Effort will be applied if gaps are identified which could threat maturity rating decline.

The CIP Working Group provides governance oversight as well as enable key stakeholders to be engaged.

Continuation of explicit support from the SDR Programme Office will allow for the transition of experience into the frameworks and to key individuals.

Medium

(Possible, Moderate)

If further machinery of government changes where the department would undertake integration or substantial integration with another agency or agencies, considering DHS has achieved the highest maturity rating of Commonwealth (FMA) agencies in September 2013, then other agencies integrating will most likely reduce the maturity scores, as they are not as high as DHS’ current maturity position. There may also be increased scope of work or ‘new’ functions such as the shared services arrangement.

Medium

(Likely, Moderate)

Explore opportunities for using best of breed approaches to identify and implement best practices from the agencies involved to ensure overall capability of any such new organisation.

Continued unwavering executive leadership commitment to use the P3 disciplines to deliver on ambitious Government reform agenda.

Explore opportunities to share DHS’s current capability to bring other parts of the APS in line.

Continued development of the required capability to sustain the delivery of ‘new’ functions such as modifications to the current shared services arrangement or any other future arrangements.

Medium

(Possible, Moderate)


Risk statement Current Rating Treatment(s) Residual

Rating

If additional investments are not funded such as in tool and process improvements then this may impact the department’s ability to reach the stretch targets identified in this plan

Medium

(Likely, Moderate)

Explore opportunities to co-invest from current business as usual budgets.

Be clear with stakeholders that the stretch targets are contingent upon appropriate investment. The level of organisational capability and investment required is significant (in training, education, mentoring, process improvement, systems, induction, user communities etc.).

Low

(Possible, Minor)

If the development and implementation of the CIP does not allow sufficient time before the next P3M3 assessment then embedding of improved processes and quality of deliverables could be impacted

Medium

(Likely, Moderate)

Ensure the CIP is registered as a project in the PPO so adequate priority and resourcing is made available to implement the CIP.

Attention and importance of the CIP with stakeholders is sought as they influence their business processes/counterparts to complete their responsibilities on time and with quality.

Continued communication of the CIP and progress with the project and programme community is evident and has strong presence of outcomes achieved or desired.

Low

(Possible, Minor)

If the P3 community is not adequately engaged then there will be a diminished ability to achieve the set targets

Medium

(Likely, Moderate)

Ensure adequate Executive engagement and appropriate communication and support occurs with project and programme community in DHS.

Low

(Possible, Minor)

If highly regarded and project management accredited DHS staff leave the department due to the current APS recruitment climate, then capacity to implement Government initiatives will be impacted

Medium

(Likely, Moderate)

Ensure DHS continues programmes that attract and retain high performing staff. There is a recruitment and retention strategy required to help retain Project Managers and Business Analysts.

Improved training and skills development across the department, and inclusion of such in workforce plans.

Low

(Possible, Minor)

The department also notes that there is a current initiative by the UK Office of Government Commerce to make revisions to the P3M3 model. A watching brief will be maintained for any changes and flow-on impacts to the CIP.


GLOSSARY OF COMMONLY USED TERMSBenefit – the measurable improvement resulting from an outcome perceived as an advantage by one or more stakeholders.

P3M3® - Portfolio, Programme and Project Management Maturity Model - agencies subject to the Financial Management and Accountability Act 1997 are implementing the P3M3 as a common methodology for assessing their organisational capability to commission, manage and realise benefits from ICT-enabled investments. P3M3 is owned by the Office of Government Commerce (OGC), now part of the new Efficiency and Reform Group within the Cabinet Office within the UK Government with a remit to help public sector organisations improve their efficiency, gain better value for money from procurements and deliver improved success from programmes and projects.

Portfolio - the totality of the Human Services organisation’s investment (or segment thereof) in the changes required to achieve its benefits and savings.

Portfolio Management - a co-ordinated collection of strategic processes and decisions that together enable the most effective balance of organisational change and business as usual.

Programme - a temporary, flexible organisation created to co-ordinate, direct and oversee the implementation of a set of related projects and activities in order to deliver outcomes and benefits related to strategic objectives.

Programme Management - the action of carrying out the coordinated organisation, direction and implementation of a dossier of projects and transformation activities to achieve outcomes and realise benefits that are of strategic importance to the business.

Project - a temporary organisation, usually existing for a much shorter time, which will deliver one or more outputs in accordance with a specific Business Case. A particular project may or may not be part of a programme.

Project Management - Project Management guides a project through a visible set of activities, from controlled start-up, through delivery, to controlled closure, and review.

Blueprint – a model of the organisation, its working practices and processes, the information it requires and the technology that supports its operations.


Attachment A


Attachment B


Attachment C

Terms of ReferenceP3M3 CIP Working Group

Chair: National Manager, Portfolio Programme Office

Establishment Date: 17 January 2014

Committee Manager: Director, Capability Development and Framework

Reporting Line: Chief Financial Officer

Purpose:

Support the DHS Executive Committee by overseeing the development and implementation of the DHS Capability Improvement Plan to ensure the department maintains its position in the top few Commonwealth agencies to have reached very high maturity levels.

Background:

The Department of Finance’s ICT Reform Agency Capability Initiative requires all agencies subject to the Financial Management and Accountability Act 1997 (FMA Act Agencies) to conduct a formal P3M3 evaluation and develop capability improvement plans annually. The outcomes are reported to the Department of Finance, for the Secretaries’ ICT Governance Board (SIGB). The Government considers agencies’ capability as part of the New Policy Proposal (ICT Two Pass Review) process but the results also provide a strong evidence base for ‘earned autonomy’ in the Commonwealth.

A working group of key stakeholders with the relevant background and subject matter expertise to oversee this work will ensure a coordinate and integrated approach to progressing portfolio, programme and project management capability in the department.

Key Activities and Deliverables:

Oversee and provide subject matter advice required for the development of the department’s Capability Improvement Plan

Monitor the implementation of the Capability Improvement Plan against agreed actions and milestones to maintain the department’s high maturity rating

Ensure the integration and streamlining of portfolio, programme and project management processes and tools within the department

Advise the Executive Committee on approaches to best support and improve portfolio, programme and project management in the department including:

o Continued efficient use of resourceso Greater benefits realisationo Improved stakeholder engagemento Improved accountability, organisation governance & reportingo Improved transparency.


Monitor the effectiveness of the portfolio, programme and project processes, standards and frameworks (including compliance) and recommend changes as necessary.

Meeting Protocols and Sub-committees:

The working group will meet fortnightly from 17 January 2014 to 14 February 2014 during the planning stage and then oversee the Capability Improvement Plan implementation post approval on a monthly basis.

Performance Measures:

Members of the Working Group are required to undertake an annual self-evaluation of the operation of the Group against its purpose, key activities, deliverables and performance. This may result in suggestions to update or change these Terms of Reference or the Group’s membership or processes. A summary of the self-evaluation will be provided to the Chief Financial Officer.

Membership:

10 National Managers from across the department providing relevant expertise in process perspectives and generic attributes of P3M3.

In addition National Managers selected are identified as process owners for the CIP activities.


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