Professional Documents
Culture Documents
PPfM
Framework
Supported by the Office of the Deputy Prime Minister through the eInnovations Programme
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TABLE OF CONTENTS
INTRODUCTION...............................................................................................5
Why a Framework?................................................................................................................................7
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BALANCE AND ENSURING NOT ALL EGGS ARE IN ONE BASKET. THE
ASSESSMENT WILL HELP ANSWER QUESTIONS SUCH AS:..................26
Corporate Level PPfM process – page 2.............................................................................................27
The Challenges......................................................................................................................................44
Response to Challenges........................................................................................................................45
Summary................................................................................................................................................46
ACKNOWLEDGEMENTS...............................................................................56
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Conditions of use
All material in these documents, unless otherwise stated, and in any materials developed using or
based upon these documents, including without limitation text, logos, icons, photographs and all
other artwork, is copyright material of Cambridgeshire County Council or its partners. Use may be
made of these documents and materials for non-commercial purposes without permission from
the copyright holder on condition that the ownership of CCC or its partners is identified in any
material so used. Commercial use of this material may only be made with the express, prior,
written permission of Cambridgeshire County Council and subject to such conditions as the
Council may determine.
Material contained in these documents provided by any third party, including material obtained
through links to other sites, is likely to be the copyright material of the author. Permission to copy
or otherwise use such material must be obtained from the author.
In no event will Cambridgeshire County Council be liable for any loss or damage including,
without limitation, indirect or consequential loss or damage, or any loss or damages whatsoever
arising from use or loss of use of, data or profits arising out of or in connection with the use of the
documents or materials. Links to other websites contained in these documents are for information
only and Cambridgeshire County Council accepts no responsibility or liability for access to, or the
material on, any such website.
CONTACT
Debbie Bondi
Head of Business Development
Cambridgeshire County Council
Shire Hall
Cambridge CB3 0AP
e-Mail: debbie.bondi@cambridgeshire.gov.uk
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INTRODUCTION
Welcome to the Project Portfolio Management (PPfM) Framework developed through the Office of the
Deputy Prime Minister’s eInnovations programme by Cambridgeshire County Council and partners to
help Local Authorities improve the management of change by selecting and running the optimum set
of projects and programmes. It has been developed in response to the demand from Local Authorities
for support and guidance with developing a range of capabilities required for managing, delivering
and sustaining successful business change.
With the emphasis on demonstrating value for money and the introduction of the Annual Efficiency
Statement and the Comprehensive Performance Assessment (CPA) scoring on “Use of Resources”,
Authorities are now looking to develop and improve existing capabilities as a foundation for
establishing structured and robust methods of investment decision making so its resources are
directed at the changes that will contribute most effectively to its strategy and objectives.
All too frequently, projects can be approved on the basis of who shouts loudest or who has got the
money in their budget. However, the budget may have been set under different conditions from those
that now prevail, and the money could be better spent from both the citizen and Authority standpoint.
An additional level of complexity is that, once approved, changes in the internal and external
environment can invalidate projects or programmes and senior managers need consistent information
on which to judge the impact of such changes.
This framework provides a structure for establishing PPfM within a Local Authority setting, so the
appropriate capabilities and infrastructure are established that will support an effective investment
decision-making process and project delivery function. This will ensure:
• The right projects and programmes are selected to achieve the strategic outcomes and
priorities set by the Authority.
• Unnecessary activities are terminated or never started at all.
• Resources are deployed where the organisation needs them most.
• Programmes and projects are monitored against key outcomes
• Ongoing successful delivery of programmes and projects
Project Portfolio Management tools in the market place are mature, and it would be very easy
(tempting!) to purchase one of these without due regard to the functionality required. The temptation
to invest early in purpose-built or off-the-shelf tools to support a PPfM function could prove expensive
and unnecessary if they don’t provide the functions and features required, or are too functionally rich
for an Authority’s immediate and longer term needs. Automated tools are a useful aid for capturing
and analysing data before translating into management information. However, our experience is that
many Authorities don’t yet create or collect the source data on which to base this information. One of
the key principles of this framework is to enable Authorities to develop a more rounded PPfM function
and adapt a range of ‘manual’ processes or exploit features in existing tools before undertaking a
major investment in automated tools.
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Through dedicated funding this framework encapsulates a range of experiential learning from the
Local Authority sector and uses existing practical guidance and material to support a Project Portfolio
Management function. It synthesises approaches and methodologies in the Public Sector to come up
with a practical generic framework that could easily be applied in a Local Authority setting. The
project studied the processes and conditions necessary to set up and grow a successful PPfM
function in an incremental way that would maximise any future investment in tools and infrastructure.
We have found this process of experiential learning an effective method by which to develop the
PPfM function.
A Project Portfolio Management function helps to ensure that the citizen gets the maximum value
from each pound spent on projects and programmes, which the Meta Group estimates can reduce
spending by up to 30 percent.
If you can’t respond yes to 3 key questions, this Project Portfolio Management framework is for you.
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SECTION 1 - ABOUT THE FRAMEWORK
A Working Definition
In the context of a Local Authority delivering key services and improvements, Project Portfolio
Management (PPfM) is viewed as a corporate, strategic level process for coordinating successful
delivery across a Local Authority’s entire set of programmes or
1 in 3 firms have no project
projects. It provides a structured method of decision-making that
selection criteria
enables an Authority to select and run the optimal set of
Programmes and Projects. In particular it considers alignment with 1 in 3 firms do not explicitly
Public Sector Agreement (PSA) and CPA targets and other align projects with strategy
source Gartner © 2004
corporate policies/objectives and overall achievability based on the
Local Authority’s capacity and capability to deliver.
The Project Portfolio Management (PPfM) framework has been developed by Cambridgeshire
County Council and partners to help other Local Authorities improve the management of change by
selecting and running the optimum set of projects and programmes to support their strategic
priorities. It is the response to the demand from Local Authorities for support with developing the
skills, capabilities and knowledge required for managing and delivering successful business change
projects
The framework provides guidance based on experiential learning and existing practice and
identifies the building blocks on which to start developing a PPfM function within a Local Authority. It
is designed to complement and build on existing guidance provided by Central Government already
in the public domain and should be read as a framework for an approach and not a prescriptive
implementation path or standard.
Why a Framework?
Unlike Project and Programme Management, there isn’t a de facto standard for PPfM, and in
practice the maturity of PPfM is relatively low within many Local Authorities. Much of the material
that can be purchased or is in the public domain does not have a Local Authority focus and can be
both difficult to absorb, too advanced or lacks relevance for the present levels of project,
programme and change management maturity within Local Authorities.
There is only so much change an organisation can manage efficiently at once, so this framework
suggests a staged and phased approach to develop the PPfM function. There is no magic wand or
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big bang approach, and it is intended the approach will be towards incremental improvements in
developing the capabilities.
This framework is designed to be as generic as possible, although the look and feel of the PPfM
function is likely to vary from Authority to Authority depending on individual preferences and
tailoring.
It has been established to help Local Authorities develop their own portfolio management function
through a method of:
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Sections
This section defines what Project Portfolio Management is and puts the framework
and its components into context
PPfM overview
2
This section provides summary guidance, an overview of the Project Portfolio
Management function and a definition of 7 core Portfolio Management processes.
The content of this guidance has been developed from a blend of practical learning
and research and is aimed at helping departments understand the principles and
value of Project Portfolio Management and how to get started.
Tools
5
This section provides some useful tools in the form of guidance or techniques to help
develop the necessary capabilities and infrastructure of the PPfM function. Some of
these tools have been developed by Cambridgeshire, others are freely available
using the OGC Successful Delivery Toolkit or via other web sites where you may
need to register first. These tools are signposted using links or are embedded in this
document
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High Level PPfM Framework
This framework comprises 3 elements that form part of the broader PPfM function.
It acknowledges in principle that PPfM is a strategic decision making process, but it is reliant on a
level of capability underneath to enable good information and practice to flow, without which the
strategic level processes are likely to lead to poor decisions.
This framework doesn’t attempt to prescribe a specific sequence in which these elements are
implemented as the level of capabilities may vary according to personal preference or current levels
of maturity and the individual nature of the organisation
PPfM Elements
These are the strategic (corporate) level processes of the PPfM
function. PPfM in its narrow definition is the process of strategic
decision making for selecting and maintaining an optimum level of
project and programmes. This framework defines what these are,
Strategic Level
PPfM Processes
and what capabilities need to be developed, but is sensitive to the
broader needs and requirement for good management information
to enable strategic decision making to take place. This framework
has been established around a number of capabilities that need to
be developed in order good practices and information can be
created.
The following table is an illustrative High Level Framework that describes the components of these
3 elements in more detail
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ILLUSTRATIVE HIGH LEVEL PPfM FRAMEWORK
Core
Capabilities
Investment
Manageme
Managem
Managem
Managem
Managem
Managem
Performan
Project &
Capabilit
Strategic
Program
Capacity
Benefits
Risk
ent
ent
ent
ent
ent
me
&
ce
nt
&
y
Infrastructure
Building Blocks
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SECTION 2 –PPfM OVERVIEW
Getting Started
Change requires the desire and motivation to do it and the greater this is the more likely you will
succeed. This alone will not guarantee success when implementing PPfM in your Authority, although
with an understanding of the benefits, challenges, and how these can be managed, an Authority can
better prepare for the journey ahead. Using this framework any Authority will be able to establish a
plan for developing PPfM. It does not provide an implementation route map, but an overall approach
that will help to deliver noticeable benefits.
Many Authorities are in the process of developing, or have already established project management
as a method for managing and delivering change. Whereas the methods, standards and benefits of
project management are more widely understood, the value of PPfM is less well known and viewed
by some with certain cynicism as just another distraction, more bureaucracy that will consume more
time across an already overstretched workforce.
Although Project Management is now becoming a well-established practice across many Authorities
to an acceptable standard, it doesn’t necessarily mean we are
investing in the right projects. The investment in developing excellent In short ‘we might be
investing our time and
project management capabilities could be devalued as a result of energy in managing and
approving projects that don’t deliver real value or are not aligned with delivering the wrong projects
the real priorities of the Authority. well’.
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sustaining the most advantageous projects by improving the organisation’s decision-making process
through access to better information, and having the means and capability to support this.
The case for PPfM is about ensuring any investment decisions will be made with the necessary and
appropriate attention given to the short and long-term value the change will deliver.
It is understandable that senior managers will ask the question ‘ what will PPfM do for us’ or ‘what will
we get out of it’. The immediate benefits are summarised:
This isn’t an exhaustive list, but these are the benefits often cited or associated with Project Portfolio
Management.
Whilst this framework does not attempt to provide a generic cost benefit analysis for PPfM, the
following sub sections clearly identify the areas where any Authority could benefit from PPfM
practices.
Rather than expand on the generic PPfM benefits above that apply equally to both public and private
organisations, the following expands on 3 key drivers for improving efficiency that are relevant and
specific to any Authority delivering public services.
The Gershon and CPA efficiency drives for realising cashable and non-cashable gains can be
achieved through better management of an Authority’s financial and human resources and strategic
risks. These are explicit principles of PPfM and core components of the capabilities within the
framework.
Sections to explain the relationship between a PPfM approach and the following three drivers:
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Linkage with CPA
The philosophy of portfolio management supports the CPA process in a number of ways.
The following areas have been discussed with the Audit Commission as part of this project:.
Corporate Assessment The principles of portfolio management support the Corporate Assessment in a number of ways
particularly with respect to Prioritisation (Theme 2) and Capacity (Theme 3).
Each area is considered in more detail in the table below, based on the Key Lines of Enquiry
(KLOE) documents, which can be found at http://www.audit-commission.gov.uk/kloe/index.asp
Corporate Governance The philosophy behind portfolio management appears to support Corporate Governance since it
concerns the husbandry and governance of resources in a clear and transparent manner.
In particular, several KLOEs (Key Lines of Enquiry) are relevant to portfolio management which
are described in the table below
Use of Resources The philosophy behind portfolio management appears to support Use of Resources since it is
about optimising the way in which resources are utilised with respect to projects and
programmes, in support of corporate objectives.
In particular, under Financial Management, Key Line of Enquiry 2.1 states “The council’s medium-
term financial strategy, budgets and capital programme are soundly based and designed to
deliver its strategic priorities”. Portfolio management supports this by ensuring that proposed
projects and programmes are aligned to strategic priorities before approval is given and by
helping to ensure that business planning is integrated with financial planning.
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KLOE Nr. Corporate Assessment KLOE Relevance to PPfM
2.2 Is there a robust strategy to deliver the This KLOE requires that “resources allocated within and between
priorities? partner organisations are managed, reviewed and revised in line with
priorities”. Portfolio management provides a framework to do this.
3.2 Is capacity used effectively and This KLOE requires that “the council ensures that projects are properly
developed to deliver ambitions and resourced…”. Portfolio management provides resource management
priorities? at a strategic level to ensure that the resources of the organisation are
used to optimal effect in support of strategic priorities and are not
over/under utilised.
3.3 Does the council, with its partners, have By promoting a more strategic approach to developments, portfolio
the capacity it needs to achieve change management provides a framework for looking forward to understand
and deliver its priorities? what resources will be required to deliver current and future priorities.
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KLOE Nr. Corporate Governance KLOE Relevance to PPfM
1.3 Is the council’s vision translated into A pre-requisite for portfolio management is having corporate priorities
organisational aims and objectives? which are understandable and which are based on the vision.
Instituting portfolio management provides a pressure to ensure that the
vision is translated into meaningful priorities and objectives. In
particular, portfolio management appears to support 1.3.3 which refers
to the quality of decision-making.
2.2 Are the council’s policy and decision- Portfolio management supports good decision-making and is part of
making processes working effectively to good governance.
ensure clear accountability and good
governance?
2.3 Are the council’s corporate and service- Portfolio management supports a “cascade of corporate priorities”
planning processes comprehensive and (2.3.2). One of the components of inadequate performance under 2.3.2
consistent? is a “mismatch of plans and priorities”. Portfolio management helps to
guard against this.
2.5 Does the council have a comprehensive Portfolio management operates at the strategic level, irrespective of
and well-managed strategy for cross- organisational boundaries. In this way, it helps to promote cross-
departmental working? departmental working.
3.3 Does the council plan resources over the Portfolio management promotes strategic planning by considering how
medium and long term? resources can best be utilised in support of corporate priorities.
3.6 Does the council ensure projects are Portfolio management considers resourcing of projects ie. Are they
properly resourced and vigorously achievable and is there sufficient resource?
managed
Portfolio management will however not ensure that projects are
vigorously managed.
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Mitigating risk of project failure
The OGC and NAO have agreed a list of Common Causes of Project Failure. PPfM provides a
complete framework, which develops a range of competencies, processes, and methods that
mitigate these risks.
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chain. capabilities to ensure effective partnership working
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Addressing common inefficiencies
The following table provides a few probing questions that may help you address areas of
inefficiency within your authority’s project and change delivery. Where you cannot respond
positively or with certainty, about a specific area, the column opposite indicates the PPfM
capability that needs to be developed to address this.
PPfM has many facets and to move from a project-oriented to a portfolio approach involves
developing and maintaining multi-layer relationships across the Authority to sustain and perform
the PPfM function.
Although there will be a number of challenges to manage and overcome, gaining senior level
support and buy-in for a Portfolio Management functional is required from the outset.
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What are the Organisational Barriers for PPfM?
Consultations with a range of Authorities during the development of this framework have identified
a number of common barriers and challenges that are seen as potential obstructions to
establishing effective PPfM. The Lessons Learned section in this Framework also provides
information on some of the specific barriers and challenges faced in Cambridgeshire.
The high dependency between managing these barriers and achieving effective strategic level
project portfolio decision-making is one of the key reasons for developing a much broader and
deeper PPfM framework that extends beyond the strategic level PPfM processes.
The PPfM maturity model in this framework incorporates illustrative behaviours and
characteristics that guide the direction towards mature and better practices to help overcome
these barriers. They also smooth the transition from a project centric to a portfolio management
approach that minimise the impact these obstacles can have on progress.
The following provides an overview of the areas of challenge and the capabilities that need to be
developed to address these.
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Area of Challenge PPfM Capability area
understood at Senior Management Level and Members. management
• Many organisations have experienced difficulties in
moving away from line to matrix management
arrangements.
• The HR implications of the framework e.g matrix
management brought on by project and programme
management and juggling priorities between day jobs and
project work
• Members are set to scrutinise and not intervene. Lack of
engagement can be a barrier.
• Difficulty in allocating skilled resources due to structural,
geographical and HR issues.
• Maturity of organisation is key
• Making and then actioning difficult decisions affecting the Risk management
portfolio as a whole when resources are in short supply
and timescales are tight
• Hard to justify closing a project. Justification of “sunk” Investment & Performance
costs on stopped projects can be too political. management
• Defining how decisions are made. What are the gaps e.g
missing or weaknesses in for instance Benefits
Realisation?
• When looking at the cost benefits for PPfM consider the Benefits management
cost of not doing it.
• Defining what the pre-requisites or critical success factors
are for PPfM
• A significant number of organisations do not have enough Capacity & capability
resources in place to make their project portfolios Management
achievable.
PPfM is not dependant on the use of any specific methodologies, but the extent to which the
strategic level process of PPfM matures is dependant on how well an Authority develops and
matures the supporting capabilities and infrastructure.
Each level of maturity therefore has its own set prerequisites, and that higher level of maturity will
only be achieved if lower maturity behaviours and characteristics are achieved. You can view
each maturity level as pre-conditions for the next level.
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However, in order to begin implementing PPfM practices the following preconditions are seen as
supportive and highly influential to the successful implementation at any level. Against these pre-
conditions are notes of Cambridgeshire’s own experiential learning
PPfM is both a support function and decision making process which requires people to carry out
necessary activities. However, it also draws on other inputs, outputs and activities across other
functions and it’s this bringing together that becomes the object of the PPfM framework that
positions PPfM as an organisational practice and way of working.
PPfM, as it has already been mentioned, extends beyond those core strategic PPfM processes for
selecting, prioritising and maintaining a portfolio of strategic projects. This framework defines the
inputs to these core processes as the underpinning capabilities and infrastructure that also span
other management functions and processes
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The multidimensional view of the PPfM framework is illustrated by a number of overarching high-
level processes that interact across 4 management functions
• Corporate Strategic Management
• Portfolio Management
• Programme / Project Management
• Service (operational) Management
The diagram illustrates how the strategic PPfM processes of the Portfolio Management function
cuts across the other management functions and 3
delivery stages of implementing change (pre-delivery, The experiential learning from the
delivery, and post delivery) PPfM project has shown that even in
the early stages of establishing a
These high level processes are relatively generic, and from project portfolio management
this perspective the process may not look much different approach, these processes become
from one Authority to another. However, sub level recognisable and start to take shape
and operate at low maturity levels
processes are more likely to reflect local preferences and
using a mixture of formal and
are not generic enough for this framework informal formal methods, techniques
and tools.
Establish
Corporate
budget
Portfolio
Approve
Collect Assess & Identify /Agree
Analyse Project /
Information Prioritise Corrective Measur es
Change
Track Benefit
Project /
resource
Create Project
utilisation
investment Design new capability
request Establish service Manage new capability
Outcomes
improvement
1
Project Portfolio Management (PPfM)
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PPfM is a practice that affects the organisation on many levels. The traditional view that PPfM is
a series of corporate level processes for aligning organisational objectives and projects to
produce identified business outcomes, is limiting from a Local Authority perspective. A more
rounded PPfM approach incorporates a range of capabilities, processes and methods operating
effectively at all levels.
• The Corporate level defines the strategic direction and priorities of the Authority
• The Portfolio level ensures that projects and programs are aligned with the Authority’s
strategic priorities, have the capacity and capability to meet the strategic objectives without
compromising operational service levels and ensure programmes & projects are meeting
or exceeding planned contribution to the overall objectives
• The Project & Programme level focuses on defining and delivering benefits and managing
the Authority’s resources and risks.
• The Operational level provides innovation and the transformation of strategic plans into
realisable and measurable service improvements and efficiency gains.
The following illustrates the functional levels and where portfolio management is positioned in
relation to other functions.
•CPA
External •Priority Outcomes
•Community partnerships
drivers •e-Gov
The PPfM function is performed by a Vision •Gershon
person or department for and on behalf Strategic Planning
of a senior / strategic management team. Legislation
This functions ensure Strategic Objectives Changes Compliance
•Develops capability, capacity and skills Corporate Priorities
•Embeds practices and processes
Policy
•Defines governance Strategic Management Government priorities
•Informs decision makers
•Bridges gap between strategy and
projects
•Provides objective prioritisation Portfolio Management
assessment of investment requests Provides a picture of the authorities investment and
commitment of resources to delivering its strategic
objectives.
Programme Management
Project Management
•Strategic Projects •Enhancement / maintenance projects •In-flight projects
1
Project Portfolio Management (PPfM)
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The Portfolio Management Level within Cambridgeshire combines tasks and activities performed
by 3 Business Development Boards, each with the responsibility for making investment decisions
on projects and programmes in their respective areas, and the Corporate Project Office who
provide appropriate and accurate information on proposals and project/ programme progress.
More details on how this model is applied in Cambridgeshire is found in the Case study
At the heart of Project Portfolio Management (PPfM) function there is a defined set of processes
for collating and analysing a range of business information, and assessing the relative value of
each change programme or project in meeting corporate strategy and business outcomes.
The value measure used for prioritising projects and programmes will typically include
• The costs that will be incurred.
• Expected benefits
• The alignment of those benefits with corporate strategy and performance measures
• The level of risk inherent to achieving the benefits and outcomes.
In assessing the priorities, the process will assimilate information about the capacity and
capability of the organisation to determine what is achievable within these constraints.
The evaluation technique
The important step towards realising that goal is to develop a used to determine value is
method for providing a relative measure of each project and likely to be a fairly simple
implementing some repeatable processes for prioritising and logic (gut feel almost) when
initiating projects and programmes, which may start for example by first implementing PPfM,
an evaluation of the strategic fit between projects, programmes and which can be refined into
organisational goals or desired outcomes. something less rudimentary
as the PPfM function
The end product of the Portfolio Management level process is to matures.
establish the Authority’s optimum portfolio of programmes and
projects that will deliver business benefits appropriate to the needs and priorities of the Authority.
This objective, unbiased decision-making process is not achieved at a programme or project level
and it ensures funding, resources and benefits are targeted at the priorities of the Authority, rather
than individual services.
The process model in this framework reflects the approach Cambridgeshire County Council is
implementing and although reference to programme management is made, it does not suggest
this function is a pre-requisite for PPfM. The core outputs from programme management
processes could similarly relate to those from projects, such as project briefs, project definitions
and project business cases, which provide the necessary information on which to make
investment and selection decisions.
1 2 3 4 5 6 7
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Corporate Level PPfM process – page 1
1- Collect Information 2- Analyse
Each programme and proposed project that may contribute to the overall change agenda needs to be Information analysis produces and presents findings on the unapproved, approved and in-flight projects
examined and evaluated to enable informed decisions to be made. Before this can happen a process of to support the decision makers in deciding which projects provide the most balanced and blended
information gathering and analysis needs to be completed. The information collected will be used to support portfolio. Using the information collated earlier, the analysis process provides assurance that the right
portfolio selection, planning and performance tracking. There is no single definitive list of information that is projects are selected and that the organisation chooses a portfolio that is achievable: It will aim to answer
collected for each project, and the type of information each organisation collects may vary to suit individual the following questions.
requirements, but it will generally fall into these broad areas:
• Are we doing the right programmes and projects, and at the right time?
• Benefit/ Value • Are there sufficient resources with the right capabilities?
• Cost • Is there sufficient time?
• Achievability • Is there sufficient budget?
o Capacity. Skills etc • Are the benefits linked to the desired business outcomes?
• Complexity
• Project Profile Note – the more information that is collected and analysed the more likely you will need automated tool
to do the job. This process comprises the following sub processes
This process will also develop and maintain a register of resources that match the core skills sets required • 2.1 Balancing
Click here for summary of the
by the organisation for delivering programmes and projects. This register will contain details of the resource • 2.2 Strategic Alignment sub processes
pool, which a project manager can search to identify appropriate resources for their projects. It also • 2.3 Benefit
provides the basis for further analysis when looking at the organisation’s ability to match supply with • 2.4 Capability
demand, and where potential resource conflicts exist
All programmes and projects should be scrutinised and challenged at appropriate stages or gates. The
7 - Track Benefits
monitoring and review process should be completed as an iterative process to ensure that any variances
and gaps that appear in project schedules, funding estimates, capacity and resource utilisation, Whether a project is a constituent part of a programme or just a standalone project, it should remain part of
outcomes and benefits are reviewed. Where variances or gaps are reported or evidenced, this will trigger the overall portfolio beyond the original implementation period and for the duration of the investment period
portfolio management to provide analysis and assess the impact on the portfolio and replan if necessary until all the benefits or outcomes of the project or programme have been delivered and realised. The
for investment decision makers to make stop, start or hold decisions if necessary. Adhoc reviews will be investment period may be a number of years and will almost certainly extend beyond the life of a project
initiated where circumstances change that may have an impact or influence on the balance or viability of and in some cases a programme. For this reason the tracking of benefits should be seen as a portfolio
management function that can be transferred from project and programme management to another
the portfolio. Whilst changes in strategy will cause a review of the existing portfolio, good practice
management group for the continuity of benefits measurement and tracking. This process will provide
suggests portfolio management should also initiate a review of corporate strategy as a means of
information to investment or senior management teams on the performance and success of the original
providing corporate level assurance the existing vision and strategic direction is in line with current
investment. Smart use of categories will enable these investments and benefits to be filtered out into one or
thinking. more portfolio’s depending on how the organisation wishes to view its performance. The use of dashboards
provides an effective means of presenting and reporting benefits, which will be tracked against the
Once authorisation has been given to initiate a programme or project through the portfolio management measures and performance indicators established and agreed in the Programme and Project Benefits
process, any changes to the original costs, benefits, timescales, sequencing and resourcing will need to Realisation Plan and Business Case.
be updated in the business case. The revised business case will be the reviewed through this process
and validated against the authorised business case to ensure no unacceptable variances have occurred.
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Corporate Level PPfM process – page 3 2.2 Strategic Alignment
For successful change to occur it is essential that an organisation identifies and selects those projects and programmes that will
contribute most in helping achieve its overall aims. To do this, it will be necessary to integrate the cyclical business planning process
2.1 Balancing into the overall change management function of the business, so that co-ordinated change programmes are established that embody
corporate values and are aligned with corporate priorities, objectives and business plans. The outputs from business planning
Programme management tends to provide static and one-dimensional view of provide targeted improvements that programme and project management then translate into a vision for change. These are shaped
the respective programmes it manages, and as a consequence, performance into individual or multiple programmes and projects that define the outputs and outcomes needed, and demonstrate how they support
tracking and reporting of the organisation’s portfolio is often constrained by this the business priorities/ objectives. The strategic alignment process will determine the relative strength each project/ programme has
narrow focus. A portfolio management perspective extends this view across against the organisational priorities/objectives and the targeted improvements set in the business plans.
organisational boundaries and programmes and establishes a process through
which projects can be categorised to provide multi-dimensional views of the
overall portfolio. For instance, the organisation may decide it requires a good 2.3 Benefits
balance of projects within the portfolio that deliver short-term efficiency savings.
An organisation in its early stages of implementing Project, Programme and Portfolio Management (PPfM) is unlikely to use complex
As these projects may cut across multiple programmes and business areas a
financial models for measuring project and programme value and expected benefits. The purpose of this process is to provide a
consolidated view of progress and status may not be available without investing
relative measure so that one projects benefit can be compared to another. This does not have to be a complex process, so long as it
significant time and effort in consolidating the information, which could be out of
achieves a level of consistency, accuracy and provides some measure of comparative value. Value metrics for each programme will
date by the time it is produced. Applying a category for e.g. ‘short term
be collected as part of the information gathering process. The value metrics could be financial, where this is difficult to quantify in
efficiency saving’ to any project delivering this type of benefit will facilitate a
monetary terms for ‘soft’ benefits such as ‘Improved Customer Service,’ a scoring model applied consistently will provide a fair
real-time consolidated ‘portfolio view’ of all those projects sharing this category
means to evaluate the relative strength of one project against another. In the case of both financial and non-financial comparisons,
irrespective of which programme or business area it resides in. Further
the whole life investment costs will need to be taken into account for a true evaluation of the benefit to cost ratio.
analysis can determine how much investment is tied up in these projects, what
the overall return or net efficiency saving is and the level of risk that is spread
across the efficiency portfolio. This is just one dimension of how the portfolio
can be viewed and tracked allowing proactive management of the portfolio. 2.4 Capability
Capability in this context is defined as having sufficient capacity in the right skills, budget, and time to deliver the project within the
Categories need to be thought through carefully before collecting data. This will constraints of complexity and risk that are inherent to the programme or project. This process aims to answer whether sufficient
enable projects to be blended into various portfolios depending on how the resources exist, and how they are allocated.
organisation decides to diversify its portfolio and how it apportions and
manages both investment and risk across the change programme. This way, Capacity - This process takes the information collected earlier to provide a gap analysis between the resources that are available
changes that may impact a portfolio can be tracked, and appropriate corrective within the organisations resource pool and those that required from the resource pool to deliver the projects. Capacity should also
action taken if necessary to maintain or correct the balance. include other resources such as building facilities and hardware that are often shared. Deficiencies and conflicts can be resolved by
either rescheduling projects, procuring additional resources or changing scope but any of these may invalidate the business case, so
these will need to be re-examined.
Categories can also be used to manage the portfolio in different ways. For
instance, programmes and projects that are not transformational, but are policy Time - When projects are planned at the project and programme level, conflicts are not always identified and the projects are not
or asset maintenance driven are more focused on delivering an outcome rather always sequenced to maximise the realisation of benefits. With the information collected earlier, portfolio analysis will determine
than a benefit to be realised over an extended period time. Programmes such whether existing programme and project schedules are in the most logical sequence, and whether rescheduling projects can
as these may require a portfolio view, but the approach to managing and maximise value and resolve any current or potential resource conflicts.
tracking the benefits will be different.
Budget - This process provides a picture of the total cost of each programme based on actual or best estimate project costs
contained in programme business case. The purpose of this analysis is to ensure the organisation has sufficient funding for its
Cautionary note - It may be tempting to define a large number of categories optimal portfolio. Committed or spent funds should be identified in the information collection process where programmes or projects
but it would be advisable to restrict them to those that describe how the are already in progress. This will be a factor during the analysis and assessment process later when decisions are formed on which
organisation wishes to manage or view its portfolio. Keep it simple and relevant projects will be selected for the portfolio. Project cost information also enables portfolio management to evaluate the cost benefit
to the organisational priorities. Paralysis by analysis should be avoided; too analysis of each project.
much information will detract from what is important. Ask - What information do
we want? Why do we want it? How do we want to view it? Complexity / Risks - Based on the information collected earlier, this process will provide analysis on the size of complexity and risk
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the portfolio. Whilst benefit is part of the value equation, risk is also a factor and may be the key differentiator
©Cambridgeshire County Council between two programmes or projects that are of equal or similar benefit. The organisational capability to deliver a project and
maintain a business as usual operation need to be understood before the selection process can begin. Version: 1.0
SECTION 3 – MATURITY ASSESSMENT MODEL
Introduction
We have found the practice of PPfM to be in its early stages across a range of Local Authorities
and those within or known to the project reference group are still performing in the early maturity
stages of this framework. It is envisaged this framework and maturity model will develop as
experience increases.
The maturity model complements the processes defined and described earlier, and provides a
generic framework for any Authority to plan, develop and establish a PPfM function.
The Maturity Assessment Model is a hybrid of our own experiential learning and other maturity
models. It combines practical experiences in project, programme & portfolio management within a
Local Authority setting, and advice and guidance from government and academic research that is
available in the public domain.
It is expected that this model will be refined and amended as PPfM practice evolves, establishes
and embeds itself as a familiar organisational practice.
The model does not prescribe a set sequence for developing each component of a PPfM function.
Instead it aims to defined general levels by which an organisation can measure and evaluate its
current level of capability along the maturity continuum. This will enable any Local Authority to set
goals and milestones for improvement and close gaps between where they perceive themselves
to be, and where they aim to get. Full maturity is a future aspiration of many Authorities. In time as
the level of maturity across Local Authorities develops, the higher levels may be lowered and new
high levels identified as more is learned about the subject.
With the assumption that many Authorities require only a basic level of understanding in these
early stages, a key principle of this framework is to provide simple and easy to use guidance. The
reference group consulted in developing this framework suggested the value of such a model
would not come from a plethora of Case Studies and theory, but guidance on some of the
transitional issues, supporting tools and illustrative behaviours or characteristics expected at each
level of maturity.
Authorities who find themselves operating in early maturity levels may still produce good results
and well-run projects. An advantage of establishing more mature levels is that it promotes
consistency with an assurance that the right projects are delivering the right results again and
again and producing more predictable outcomes across a diverse organisation. Embedding the
corporate level PPfM processes, the supporting capabilities and infrastructure provides a
framework for Authorities to achieve their priority objectives and deliver repeatable results through
repeatable processes and practices, and negates the common risks that causes business change
to fail.
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What is the maturity assessment model?
The maturity assessment model evolves around the transitional states of 6 core capabilities.
Capability Area
Benefits Management aims to make sure that desired business change
or policy outcomes have been clearly defined, are measurable, and
provide a compelling case for investment. This ultimately helps to
ensure that the change or policy outcomes are actually achieved. Any
Benefit Management change project or programme requires a constant focus on the
intended benefits (measurable improvements) if it is to deliver value
and remain aligned with business goals. Delivering value begins with
defining the expected high-level outcomes before a programme is
approved and continues through the identification, profiling, tracking
and embedding of benefits.
Risk management at the project level focuses on keeping unwanted
outcomes that would adversely affect the project outputs to the
minimum. Programmes risks are generally associated with broader
Risk Management funding, organisational and cultural issues. Risk management at the
programme level is primarily concerned with the overall direction of the
programme and the management of interdependencies between the
related projects. Risk Management at the portfolio level provides a
aggregated level of risk that evaluates the impact re-prioritisation
decisions or significant changes to projects and programmes may have
on achieving strategic outcomes
This activity embodies the strategic level PPfM decision processes for
selecting, prioritising and maintaining the optimum level of projects. It
Investment & Performance determines the appropriate governance arrangements for each
management investment request. It ensures alignment between each investment
request and the performance framework of the organisation and
monitors performance of the change programmes to ensure the
collective benefits will meet the strategic objectives.
Strategic management is the Authority’s methodology of setting and
maintaining its strategic direction, aligning strategies, performance and
Strategic management business results. It is also the decision-making process for responding
to changing circumstances and the challenges of the organisation.
Capacity & Capability management in this framework is the business
activity that manages the quality, efficiency and effectiveness of the
resources, and ensures there are sufficient resources of the right
quality to meet the needs of the Authority’s change agenda without
compromising standards of operational service. It brings together
people, processes, organisation and technologies to support the
Capacity and capability objectives of the organisation. Resources generally relate to people in
management this framework but equally an Authority requires effective capacity
management practices for buildings, finance and IT equipment.
Capability refers to the ability to perform through the use of the
Authority’s skills, knowledge, understanding, and physical tools
Project management is the function through which change is planned,
monitored, controlled and delivered. Programme management is the
Project & programme method through which the Authority defines a vision of change and co-
management ordinates a portfolio of related projects and activities to achieve
identified outcomes and business benefits
It provides a framework for an Authority to assess and plan developing the capabilities it needs to
establish its own PPfM function.
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There are two maturity models against which you can both assess your own Authority’s position
and track its progress
• A quick assessment will help establish an overall maturity level for each capability, which
may indicate which area you want to analyse a bit further.
• A detailed assessment will help develop a better profile of the characteristics and
capabilities that need to be developed
It is unlikely any Authority will develop to a mature state without a sustained development. You
might find that in some areas you are in the later stages and in other areas, early stages. The
purpose is to provide an assessment of where you are and where you need to get to, to help plan
your journey and progress.
For any Authority wishing to develop and improve their processes, capabilities and infrastructure
for PPfM, this model provides.
• A framework to provide the basic and essential ingredients for establishing PPfM within a
Local Authority.
• An understanding of the key practices that need to be fully embedded and developed
within the organisation to achieve continuous improvement in PPfM.
• Simple but effective guidance for establishing PPfM process improvements and
developing an understanding of the capabilities required for establishing and running an
optimum set of projects.
• A tool to assess, evaluate and improve the maturity of the authority’s PPfM capabilities
and processes.
• A method for identifying and planning priority development needs and establishing
measures and milestones for target improvements.
• A foundation for integrating and/ or building a set of appropriate tools to support each
process in PPfM.
• A mechanism to help identify risks and issues that need to managed as part of
establishing the PPfM function.
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The tool is not intended as a
• Benchmarking tool for comparing and contrasting the PPfM functions of different
Authorities
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The maturity model is simple to use and each capability is illustrated this way
Example
1 2 3 4 5
Characteristics
Describes the characteristics when Describes the characteristics and behaviours during the developmental stages of the PPfM function. This Describes the characteristics when
operating at the basic level model breaks the ‘Maturing’ stage into 3 interim stages as some characteristics may develop faster or more the PPfM function has matured
slowly than others.”
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Quick Maturity Assessment
1 2 3 4 5
Projects generally There is a standard The Authority has The benefits realisation The whole benefit management
describe some business approach across the established a consistent and management process process is embedded across all
benefit, but there is no Authority for developing approach for benefit is well established across the Authority’s change
formal or standardised business cases and realisation planning and all change programmes programmes and the benefit
benefit management defining business benefits, measurement. However, and both project outputs measurement of individual
practice, and ownership of but no formal benefit these are mainly focused and programme benefits programmes and projects are
Benefits Management benefits. tracking and management on the output of individual are actively managed and clearly aligned to the corporate
process. Ownership of projects rather than owned, and the Authority performance framework and
benefits is best described aggregated and measured is developing some priority outcomes.
as sporadic programme benefits. linkage between outcomes
Programme sponsors are and the corporate
signed up to owning performance framework.
benefits
There is an adhoc and Generally projects are Project and Programme Programme risk registers Stage gates used to proactively
inconsistent approach to managing risks well, but risks are well managed used as an everyday assess and manage investment
managing risks. Risk are decision-making is project and consistent. Inter working tool to ensure risk and make decisions on
Risk Management often identified, but focused and considers the dependencies across decisions taken consider impact on the wider Authority
effective management of impact on individual projects are better defined the impact on the portfolio. Diversifies exposure to
the risks is inconsistent project outcomes without and enable project prospective value of risk by selecting diverse
across the Authority the wider impact decisions to considering a individual programmes technologies and programmes
larger impact.
All or nothing approach to Project budget devolved to The Authority has The Authority has The organisation has effective
funding. Approved funding project as one pot and developed investment established documented and robust governance for
is devolved to budget managed by project board management processes policies; procedures and managing change. Investment
Investment & centres and is spent with in controlled stages but and practices for governance for project boards manage investment on a
Performance little or no accountability generally project will programme level programme investments pay as you go basis subject to
management outside the budget owner continue to progress and governance although and developed investment successful programme stage
deliver regardless of its decisions to halt project board structure to oversee gate reviews and agreed
continuing performance. and programme programme investments performance measures.
progression based on
future performance are
unlikely.
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Quick Maturity Assessment cont
LOW Maturity Transitional State HIGH
Core Capability
1 2 3 4 5
There is no recognisable There is some attempt to Large change projects and The Authority as a Community and Corporate
Strategic Management process for defining and align projects with programmes are generally well whole has a defined strategy plans are fully
translating the Authority’s corporate objectives but defined and demonstrate alignment and managed process integrated into the
strategic objectives and this work ‘bottom up’ with strategic outcomes/ objectives for translating policy strategic planning process
policies into defined change and the Authorities change agenda and key corporate for defining the Authority’s
projects. Some projects can priorities into well change programmes and
evidence how they Strategic projects are easily defined change project, with clear
support the Authority’s identified. programmes and alignment to the strategic
strategic outcomes or projects outcomes with sequential
service plans, but this is schedules for all
best described as programmes/ projects
inconsistent and informal.
Individual project identify Resources are identified The Authority has developed a Real-time utilisation of The Authority has
Capacity & Capability and source own resources and allocated at resource pool, which can be used the Authority’s resource established effective
Management using internal external mix. programme level to better by project managers to identify staff pool is monitored to capacity and capability
Authority generally has a manage potential risks of with the appropriate skill sets, or the plan, manage and meet strategies and processes
high risk of overcommiting over committing skills required for specific roles to its resourcing needs for obtaining, allocating
key resources. resources. fulfil the needs of the project. across the Authority. and adjusting resource
levels in line with medium
and long terms investment
plans.
There is no consistent A consistent approach for The organisation has embedded a Programme A standard programme
Project & Programme approach to managing project management is corporate standard for project Management is being management approach is
Management change projects, the developing within the management, which all change used in parts of the embedded across the
Management Authority uses various tried organisation based on projects use consistently. organisation to define organisation, through
and tested methods internal and external change programmes which change
good practice and the constituent programmes are defined
projects that will deliver and managed to deliver
the change the Authority’s vision for
change.
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Detailed Maturity Assessment
Benefits Management
1 2 3 4 5
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Detailed Maturity Assessment
Risk Management
1 2 3 4 5
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Detailed Maturity Assessment
Investment & Performance management
1 2 3 4 5
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Detailed Maturity Assessment
Investment & Performance management (continued)
2 3 4 5
1
Immature Maturing Matured
Illustrative Characteristics at each Transitional stage
It is difficult to establish how most In many areas business cases are The Authority has established and Investment proposals are The organisation has effective and
investment requests contribute to appraised independently of each agreed criteria for assessing approved subject to a sound robust governance for managing
the strategic objectives other, and real priorities are not progress and alignment of projects business justification that change.
established. and programmes demonstrates measurable cost
It is difficult to establish the benefits and alignment with A process exists for Project and
rationale for which projects are Project budget devolved to project Investment proposals are approved corporate objectives. Programmes to provide Interim
funded or approved. at initiation and managed by subject to a sound business performance results.
project board in controlled stages justification that demonstrates Business Cases are mandatory
Investment requests are supported but generally project will continue delivery of benefits and alignment for all investment proposals Authority is proactive in conducting
by a proposal or service to progress and deliver regardless with corporate objectives. strategic reviews to ensure its
improvement initiative but not of its continuing performance. All Business Case are appraised projects and programmes remain
evaluated on cost benefit analysis. The Authority has started to for the potential cost, financial consistent and up to date with
Initial governance arrangements develop its investment viability, risk, and operational strategy.
Investment decisions are not are established management processes and impact
corporately made. practices at programme level Real-time management information of
Time recording introduced as a although decisions to halt/stop Projects and Programmes are project and programme performance
mechanism for collecting projects and programme categorised to provide logical is available to ensure proactive
information progression based on future groupings of projects and multi- management of the Authority’s total
performance are unlikely. dimensional views giving better investment
management information that
Governance arrangements for improves decision-making to Investment decisions are based on
projects and programmes are achieve a better balance of well-defined and robust selection
developing projects criteria which measure and assess
the comparative value of programmes
A mechanism for determining the The Authority has a repeatable and projects for whole life costs, risk,
appropriate governance and consistent process/ method achievability and strategic alignment.
arrangements is developing by which all strategic project and
programme requests are The investment boards have
authorised. established a process to monitor
changes to risks and to assess
The Authority has established intended benefits and outcomes to
documented policies, ensure they are still on course.
procedures and governance for
project and programme Roll out and develop co-ordinated
investments and has developed projects and programmes linked to
an investment board structure to local/ regional/ NEED TO CHECK
oversee programme investments THIS PHRASE
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Strategic Management
1 2 3 4 5
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Detailed Maturity Assessment
Capacity & Capability Management
1 2 3 4 5
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Detailed Maturity Assessment
Project & Programme Management
1 2 3 4 5
There is little or no consistency in A corporate approach for project The Authority has established a The Authority has fully embedded The Authority is continually
the Authority’s approach to project management is developing within common framework and standard a corporate standard for project developing and improving the
management and the success the Authority based on internal and for managing its projects management, which all change standard of project management
factors of one project are difficult to external good practice projects use consistently. through a process of establishing
replicate. Programme Management is being best practise, internal/ external
Policies and governance used in parts of the organisation for The principles and practices of networks, and lessons learned
No particular project management arrangements are being defining and shaping change programme management are now
standard is applied within the established for co-ordinating programmes and identifying the being used to some extent in A standard programme
organisation. projects and programmes. constituent projects that will deliver delivering strategic change. management approach is
the change embedded across the organisation,
It isn’t uncommon for projects not Project Boards are established to Programme plans integrate and through which all strategic change
to have any senior business oversee the implementation of The Authority has established a synchronise the timetable for programmes are defined and
ownership or direction significant change projects governance framework for the projects with the benefit realisation managed to deliver the Authority’s
initiation all projects and plan. vision for change.
The are no governance Although plans are relatively high programmes
arrangements or policies for level, plans generally define stages The Authority has effective Projects are controlled and
initiating, selecting, running and and the key decision points. No project is initiated or approved governance for managing projects managed through the development
closing projects and programmes without Senior Sponsor ownership that span internal and external and approval of costed stage
All projects articulate their for the business case, providing boundaries plans.
Project management expertise is objectives direction to the project, and the
not matched to the demands of the realisation of projected benefits. Governance arrangements apply to Individual project plans reflect
project. Project resources are identified all project activity across the decision made at the programme
during Initiation as standard Plans are developed in sufficient Authority level on the sequencing of the
Projects plans are created in practice detail with clear timeline plans, projects designed to deliver and
isolation, and in some cases there milestones and work packages Programme Management is maximise benefit, capacity and
are no formal documented plans All projects have a project plan but defined established to translate strategic achievability.
these may vary in quality and detail aims into co-ordinated projects that
will bring into effect the necessary Governance for all projects/ and
business change programmes is appropriate to the
level of investment and scope.
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Detailed Maturity Assessment
Project & Programme Management (continued)
1 2 3 4 5
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SECTION 4 – PPfM Experience in Cambridgeshire County Council
Background
After Cambridgeshire County Council set out its vision and priorities for 2004-5, it underwent a
major reshaping programme to meet these challenges. In line with the Council’s vision and
priorities, a new organisation was put in place from April 2005 tightly focused on service delivery
and meeting its customers’ needs.
One of the drivers for organisational change was the Improving Business Support initiative set up
during 2004 with the purpose of bringing a consistent and structured approach to the numerous
projects undertaken at any one time across the Council.
Under this initiative a Corporate Project Office (CPO) was established in April 2004 to bring
consistency in project management and delivery, and ensure that scarce resources were
allocated effectively and efficiently across the portfolio of projects and the Authority had the
capacity to deliver.
The CPO established itself as a Centre of Expertise for project & programme management that:
• offered expert support and guidance in delivering projects on time and to budget
• made best-practice project management skills available to all.
• offered the chance to share knowledge and learning with other project managers across
the Council.
• created new opportunities for personal and professional development through training.
The CPO is now established as a corporate service that is available and accessible to all
Cambridgeshire County Council (CCC) programmes and projects, providing skills in programme
and project management, establishing robust programme and project governance, quality
assurance, monitoring and control, mentoring and support services.
The Challenges
There are a number of issues and challenges the Authority and the CPO are facing
What Problemare We
Trying to Solve?
Ahighly capable organisation working in a complex environment,
but there is always roomfor improvement
Co r p o r a t e P r o j e c t Of f i c e
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Response to Challenges
Since April 2004, the CPO has established itself as a corporate service and helped develop and
embed an infrastructure and many of the core capabilities required for a PPfM approach. There
is now. Here are some of the highlights
(Source material
CCC)
Developed and embedded project/ programme Governance across three
Business Development Area Boards. Governance arrangements define:
"Business Governance
Development Governance_Ext_ v1.0.doc"
• How accountability is assigned
• How decisions are made (Source material Investment &
• How projects & programmes are identified, defined, prioritised, CCC Draft
Performance
approved, funded, resourced, managed and closed Governance)
Management
Established the Business Case as the corporate vehicle for gaining
management commitment and approval of all project and programme Benefits
investment requests. The CPO provides project management support in Management
the development of the Business Cases through 1-1 mentoring.
Developed a Typology tool to identify the appropriate level of
governance for projects
"Typology draft Tools
(Source material CCC) 0.7.xls"
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Summary
It is still early days but there is evidence of more rational decision-making as a result of
developing some PPfM tools and techniques. More accessible, timely and accurate information is
also improving the quality of decision-making. It is still early days, but the following are evidence
that progress is being made.
Objective measurement is not always easy and the limits to developing decision-making criteria
need to be established. The end goal for PPfM governance needs to be a balance between
structure and culture so human factors remain part of the decision-making processes
Governance - a Balance of
Structure and Culture?
• Hard
• Rule-based • Soft
• Quantitative/binary • Gut-based
• Thinking • Qualitative
• Formality and • Feeling
bureaucracy • Innovation and
creativity (anti-
bureaucratic)
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Experiential learning assessment tool
The experiential learning assessment was completed using a set of questions on which to reflect, review
and plan the Authority’s progress against developing key PPfM practices. This tool was developed by
Cambridgeshire, and can be used or modified by any Authority that wishes to use experiential learning as
an approach.
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Reflect Back (6-24mnths) Actions Taken Review Actions Forward Plans
IN REPONSE CONSIDER IN REPONSE CONSIDER IN REPONSE CONSIDER IN REPONSE CONSIDER
Reflecting back consider the What actions have been Have the actions made any What further strategies and
Capability Area issues that were identified and implemented (based on the positive or negative impact. plans are the Authority
problems the Authority needed Authority’s strengths and What level of improvement is implementing or considering to
to address, but also identify weaknesses) visible in this specific capability become more effective in this
any examples ‘good practice’ area area.
How would the standard of What methods or approach What benefits are being seen What further developments
Project Management project management be best have been implemented to from these actions? and strategies have been
described in the Authority? improve project management identified to improve all
standards and capabilities? aspects of project
management?
How would the standard of What methods or approach What benefits are being seen What further developments
Programme programme management be have been implemented to from these actions? and strategies have been
Management best described in the improve programme identified to improve all
(If applicable) Authority? management standards and aspects of programme
capabilities? management?
What was the method or What improvements has the Does the Authority have How might the Authority
approach for scheduling and Authority taken to better overall visibility of its project change its approach for
sequencing projects manage cross project and programme scheduling and sequencing
Project Scheduling deliverables and benefits and dependencies, risks, benefits commitments? projects to deliver further
how were cross project delivery, resource conflicts, improvement and visibility
dependencies recognised and financial management through
managed. co-ordinated project plans
/schedules.
Resource Planning – What would be the best way to What has the Authority done to Describe to what extent What strategy and plans has
(Capacity and describe the Authority’s improve the way it utilises, improved resource planning the Authority developed to
Capability) approach and method of manages and develops its key has improved project delivery further improve resource
managing, developing and resources to match supply and and the Authority’s capacity utilisation and the capacity and
utilising its resources across its demand? and capability to deliver capabilities required for
span of project activity. strategic projects. selecting and running multiple
change projects.
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Reflect Back (6-24mnths) Actions Taken Review Actions Forward Plans
IN REPONSE CONSIDER IN REPONSE CONSIDER IN REPONSE CONSIDER IN REPONSE CONSIDER
Reflecting back consider the What actions have been Have the actions made any What further strategies and
Capability Area issues that were identified and implemented (based on the positive or negative impact. plans are the Authority
problems the Authority needed Authority’s strengths and What level of improvement is implementing or considering to
to address, but also identify weaknesses) visible in this specific capability become more effective in this
any examples ‘good practice’ area area.
How effective was project or What measures were taken to To what extent has the quality What further improvement
programme information in improve the collection, of information improved the could be made, and what
enabling clear direction, capture, presentation, direction, decision making and priorities lie next?
Project Reporting informed decision-making and analysis of information to monitoring of projects?
monitoring of projects ensure management boards
(Consider, risk, progress, were more effective in
schedule, cost, benefits, direction and decision making
visibility, accuracy, reliability).
What issues or gaps have been What approach has the Which gaps have been closed How does the Authority intend
identified in the overall Authority used to improve its and how? to further improve its overall
Decision Making decision-making process decision making process and What improvements have been decision-making process?
spanning project or programme how? made? How will the Authority close
selection, delivery, benefits What still needs to be done to remaining gaps?
relations and lifecycle improve its decision-making.
reporting? Is the process responsive and
flexible?
By what process did the How does the organisation What evidence suggests How does the Authority plan
Project Selection & organisation assess, evaluate assess, evaluate and present selection methods are to improve the effectiveness
Prioritisation and communicate project communicate priorities? prioritising projects more of selecting the most
priorities? effectively? And is there a advantageous projects or
better awareness of the programmes in the future?
Authority’s priorities?
How was the relative What methods, if any, have Has an agreed set of criteria How does the Authority plan
Project Selection & importance of one project or been implemented to improve been established that uses a to improve the effectiveness
Prioritisation programme compared to project selection criteria? combination of - strategic fit, of selecting the most
another? risk, affordability, benefit, advantageous projects or
achievability as a relative programmes in the future?
measure of project weighting or
value?
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Reflect Back (6-24mnths) Actions Taken Review Actions Forward Plans
IN REPONSE CONSIDER IN REPONSE CONSIDER IN REPONSE CONSIDER IN REPONSE CONSIDER
Reflecting back consider the What actions have been Have the actions made any What further strategies and plans
Capability Area issues that were identified and implemented (based on the positive or negative impact. are the Authority implementing or
problems the Authority needed to Authority’s strengths and What level of improvement is considering to become more
address, but also identify any weaknesses) visible in this specific capability effective in this area.
examples ‘good practice’ area
Strategic Fit How would you describe the What initiatives / actions have Is it the case that all change How can the translation between
process for aligning projects with been introduced to improved projects are now strategically high level business plans and project
corporate strategy, objectives the strategic fit of the aligned? What further outputs be developed to improve
and priorities Authority’s projects and challenges does the Authority investment decision-making?
programmes face in aligning priorities with What approach does the Authority
project delivery plan to use for assessing alignment
of its projects and programmes with
corporate plans, strategy, priorities
etc.
Risk Management What risk management How has the Authority Are responsibilities for What are the priorities to further
framework existed to identify, improved its process for managing and reporting risk improve the process by which the
assess, manage and report managing risk including the explicit? Authority manages the impact of
project level and cross project business wide perspective? What is the current level of risk risks across its projects and
dependencies management? programmes?
Are risks assessed beyond the
project level?
Tools Which tools and techniques did How has the Authority Is there any evidence of How does the Authority feel it will
the Authority use during its improved its decision making improved decision making further develop and improve in the
investment decision making process to improve the through the use of tools or following areas:
process spanning project or methods by which it selects, techniques? • Using tools etc:
programme selection, runs and reports project • Visibility of investments,
management and reporting. programme and manages • Aligning investments to
risk, benefits, resources and priorities
strategic fit • Benefits realisation
• Managing risks
• Comparing relative values
of projects
• Establishing business cases
• Resource planning
• Selecting and deselecting
projects.
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Reflect Back (6-24mnths) Actions Taken Review Actions Forward Plans
IN REPONSE CONSIDER IN REPONSE CONSIDER IN REPONSE CONSIDER IN REPONSE CONSIDER
Reflecting back consider the What actions have been Have the actions made any What further strategies and
Capability Area issues that were identified and implemented (based on the positive or negative impact. plans are the Authority
problems the Authority Authority’s strengths and What level of improvement is implementing or considering to
needed to address, but also weaknesses) visible in this specific become more effective in this
identify any examples ‘good capability area area.
practice’
Communciations & How would you describe the Describe any deficiencies in Is stakeholder analysis used What are the main issues that
Stakeholder Management effectiveness of stakeholder the process for managing effectively? still need be resolved to ensure
(internal, suppliers, management both internal stakeholders and any actions Are stakeholders engaged effective stakeholder
partners, etc) and external? that have been implemented sufficiently to overcome engagement?
to make this function more resistance How will the Authority overcome
efficient Do business cases take these?
account of the views of
internal and external
stakeholders?
Benefits Management How were project / What were the weaknesses in Is benefit management and How will this process and
programme benefits this process and have any the realisation process a capability mature?
described, defined, measured improvement measures been higher profile function now?
and tracked. To what extent implemented especially to How has the process
were measures linked to improve alignment of benefits matured?
business outcomes? to the performance Is there a more robust
management framework mechanism for considering
within the Authority? the relative measure and
alignment of benefit in the
selection process?
Financial & Investment How effective were the Describe any changes in How has the investment How would the Authority like to
Management governance arrangements for these arrangements to make decision-making process change its governance
approving and managing overall project and investment matured? arrangements to become better
investment requests? governance more effective? Are decision points built into at managing the delivery of
governance framework? benefit and managing its project
What evidence exists of better investments and why?
or more informed financial
decision-making?
Are there any key problems or
issues still to be resolved?
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Reflect Back (6-24mnths) Actions Taken Review Actions Forward Plans
IN REPONSE CONSIDER IN REPONSE CONSIDER IN REPONSE CONSIDER IN REPONSE CONSIDER
Reflecting back consider the What actions have been Have the actions made any What further strategies and
Capability Area issues that were identified and implemented (based on the positive or negative impact. plans are the Authority
problems the Authority Authority’s strengths and What level of improvement is implementing or considering
needed to address, but also weaknesses) visible in this specific to become more effective in
identify any examples ‘good capability area this area.
practice’
Business Cases To what extent did project / What has the Authority done How are business cases used How will the Authority develop
programme business cases to establish business cases at in the decision making its mechanism to ensure
support the decision making the heart of the investment process? investment decisions are
process for deciding which decision making process and Are business cases actively driven by business cases and
projects were selected? ensuring projects continue to managed? that projects remain viable?
remain viable? Do they provide the level of
justification to support
decision making?
Organisation What was the organisational How has this structure had to Is this structure working How will the structure need to
structure for getting projects change and adapt to enable effectively? change to overcome any
approved, and managing the improvements in the Has decision making outstanding issues or meet
decision making process governance arrangements for improved? further improvements in
throughout delivery and selecting and running more Is decision making being selecting and maintaining a
benefits realisation? effective projects and made at the appropriate diverse range of projects?
programmes? levels?
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LESSONS LEARNED FROM CAMBRIDGESHIRE
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Investment & Performance Management Investment & Strategic Management
• Project selection and prioritising can be achieved at a basic level using elementary • Don’t assume that because the priorities are defined, they are understood in
analysis to measure the strategic fit of each project. There are still limitations with this depth across the organisation
approach because it isn’t very analytical, and tends to rely more on “gut instinct” than • There are many public-facing documents that convey value statements and
one might expect. In particular, some of the barriers to achievability aren’t made very priorities concerned with securing the health and sustainability of individual
explicit. The analysis of whether the organisation has enough skill and resource to do a citizens and communities. Rather less tends to be focused on securing the
particular project is less factual and more anecdotal, but the basic principles of PPfM can health and sustainability of the organisation itself
be applied to good effect without any complex or formal quantitative analysis. This • Project Portfolio Management requires a holistic view where strategic
approach does require a broad understanding of what the strategic priorities are to management defines and articulates the Authority’s priorities for securing
provide the appropriate challenge. the health and sustainability of its citizens, communities and organisation.
• It is important to establish an investment management structure to provide the • Without considering the internal focus it is difficult to evaluate the value and
challenge, leadership and decision-making. This will help to combat any weak strategic importance of those projects and programmes that provide
investment management practice that might have lingered in an environment of devolved sustainability of the Authority.
budgets, strong management boundaries and the misconception that once approved, the • Using a balanced scorecard approach, which includes dimensions such as
budget belongs to the budget holder to do with as they wish. Citizen, Finance, Learning & Growth and Internal Business Process can be
• Effective governance and an investment management process can provide scrutiny considered. Using such a method illustrates more effectively the strategic
of each project proposal regardless of the funding status. This wider scrutiny can relevance of each priority, and provides a tool to assess the strategic fit of
evaluate and approve each project proposal based on the strength of business case and each project and programme in the portfolio.
not simply the existence of a budget • Priorities need to be articulated in a meaningful way. High-level statements
• The CPA provides useful leverage to overcome some of the cultural barriers, as are difficult for people to translate into a form so they understand what it
Authorities need to demonstrate that human and financial resources are targeted at means and what is expected of them. This helps the Authority to tie more
priorities. The transparency required to achieve this cannot be evidenced without some closely the process of strategic planning, business planning and personal
form of management structure that can either directly or indirectly influence how budget objectives to better visualise how successful outcomes can be achieved
or resource is utilised. • Strategic planning is fundamental to the maturing process of project portfolio
• Although in the early stages of maturity, the model and governance used by management. Incentives for high innovation and economise of scale are
Cambridgeshire has been effective in a number of ways: the three Business less likely where the driver for change is bottom up and where budgets are
Development Boards have had a strong influence, using service budgets to support managed within silos.
better strategic objectives. Each Board is responsible for specific strategic programmes • Engaging early with the Authority’s Performance and Policy team helps to
and is headed by a Deputy Chief Executive who can form a clearer picture of how money map out cross cutting themes and priorities between internal and
and resources are being directed in pursuit of strategic objectives partnership strategic priorities. There is a complex process concerning how
• Investment Boards can effectively control budgets without necessarily becoming externally funded or shared priorities fit within the overall governance that
budget centres themselves by using sound governance. needs to be addressed.
• Moving from 1 year to 3-year business planning cycles has helped the practice of
investment management. This has developed a more strategic focus, and the
transparency of how a budget is directed to projects and programmes is made clearer.
•
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Capacity & capability Management Project & Programme Management
• Capacity management works effectively as an informal process • Identify and integrate existing good practice into a project management standard
in the early stages of maturity • Standardise your practice and methodology across the Authority as far as possible to breakdown
• With greater visibility across larger cross-functional groups on the language barriers.
programme and business development boards, resource • Developing a corporate project office as a centre of excellence for project and programme
dependencies get picked up. management has removed any preconceived ideas or legacy influence
• Anecdotal evidence supports the improvement in capacity • Avoid being overly bureaucratic. A one-size heavy weight method isn’t appropriate for all
management: employee say it feels better, and although they projects. Devise a suitable approach for low/ medium/ high risk projects
may still be asked to do too many things at once, there are now • Cambridgeshire have developed a typology of different types or categories of projects to tailor
fewer things being asked of them, and it has become slightly approaches.
more reasonable. They also report that with more formal • Consult internal and external experts to develop better estimates
governance structures, they have an escalation path if work is • Project management can be seen purely a discipline around a particular profession like
unachievable. construction, rather than a way of managing change. Setting up and establishing internal forums
• The early stages of maturity in Capability management has and networks for Project Management within Cambridgeshire, has helped to break down some of
thrown up issues about what the scarce resources are the functional boundaries and change perceptions by getting people to think more broadly about
• To develop further capacity for project sponsorship, the open project management
leadership behaviours required for effective sponsorship need • Look at exploiting any existing tools to start some quantitative time recording measures that can
to be encouraged and supported. support planning and project estimating.
• With the advent of 3-year business planning and looking at • Develop better estimation techniques as a foundation to more informed decision-making and
longer-term change programmes, the capabilities and skills planning.
needed have become clearer. How resources are used is also • Try to analyse and understand the culture within the Authority and the receptiveness to change
key to CPA. Project and programme management skills and and avoid being too rigid on the process at the expense of delivery.
awareness have developed well in the early stages, but in
• Work towards making more detailed estimates of the effort required to produce/deliver the
hindsight more attention might have been given earlier to
individual components or perform the lowest level tasks.
sponsorship skills.
• Using programme management early as a container for a group of projects provides senior
• It has been much more difficult in a large Authority to gain
management a higher-level picture and starts to focus them on the more strategic issues rather
clarity about scarce resource groups although it is easier to
than getting bogged down by the detail of individual projects.
identify the capabilities and skills that will need to be developed.
To try and get the model right the initial focus will be on a very • Programme management has been a successful vehicle for getting senior managers to think
few scarce resource groups, the ones that will be a barrier to more openly and publicly about how to deliver strategic objectives. However it is necessary to be
development. In doing this tricky issues start to emerge about considerate of differences between the different styles of programme and the need to be flexible
whether it would be better to source skills externally. This starts with any methodology.
to stray into areas about working with the private sector, • Without a broader approach to strategic management and planning, it may be difficult to extend
outsourcing and so on. These are quite complex and programme management beyond a container for projects and be able to define programmes that
sophisticated issues that will take some time to resolve. more clearly support strategic objectives.
• Programme sponsorship is as necessary as project sponsorship.
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Acknowledgements
We would like to thank the following organisations for their input and contributions to the
development of this Framework
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