TUESDAY 9 OCTOBER, 2007 Project Management - Setting the Standard

1. CS4.2.3 Program & Project Management at the Department of Sustainability and Environment Fiona Dunn TUESDAY 9 OCTOBER, 2007 Project Management - Setting the Standard Australian Institute of Project Management National Conference 2007 Hobart Tasmania October 7 – 10, 2007

3. History of Project Management in DSE • DSE was formed in 2002 – from NRE, DPI and DOI • Each organisation had their own way of doing projects .. Some structured .. some not .. DSE initially had no project management methodology • The department spent over $3 million a day on projects • There was a perception of non-delivery

4. DSE’s Project Management Maturity – Dec 2004 1 2 3 4 5 LEGEND FOR RANKINGS USED 1 Initial — Processes are ad hoc and disorganised 2 Repeatable — Processes follow a regular pattern 3 Defined — Processes are documented and communicated 4 Managed — Processes are monitored and measured 5 Optimised — Best practices are followed and automated

5. DSE Capability Framework Report Card Project Management Evolution 2004 2005 2006 • New project management training programs introduced, including the Diploma in Project Management February • Project Management community of interest seminars run monthly • Project Office set up April • BPR Training Manual published June • The End to End project management framework was reviewed – templates and additional “How to .. Guides” and checklists developed for all major stages August • Powell Report - A Report on the Review of DSE’s Project Management Framework November • Program & Project Management Policy approved • Project Approval Process approved • Survey of DSE managers undertaken to determine support for “management wedge” needs • Management wedge re-developed to focus on how a DSE manager does things “right” in the organisation – the policies and processes – including Project Management • February • Program & Project Management Policy and Approval Process launched • Launch of Version 2 of End to End Project Management framework • Governance training for Senior Responsible Owners improved • Certificate in Project Management offered • April • BPR Version 4.1 released August • Grants Management policy approved September • Draft Project Change control policy distributed for feedback November • Review of DSE management of Capital Projects completed • March - May • Project Management training programs piloted • May • End-to-End Project Management Framework launched • All Business Plan projects expected to have an implementation plan • August • Project Review Unit set up to review all Capital and Water projects • November • 1st edition of the Project Leader Newsletter published - monthly • Project Coaches trained on the End to End methodology in place in all business units

6. What is a Project? Challenges about what was a project ….. • Project: is a unique (once-off) set of co-ordinated activities, with definite starting and finishing points, undertaken by an individual or team to meet specific objectives within defined time, cost and performance parameters as specified in the business case/project plan. • A finite and defined lifespan • Defined and measurable business products (i.e. deliverables and/or outputs to meet specific business objectives) • A corresponding set of activities to achieve the business products • A defined amount of resources • An organisation structure, with defined responsibilities, to manage the project

7. Program, Initiative, Ongoing service delivery Challenges about what a program, initiative and ongoing service delivery was ….. • Program: is a framework for implementing business strategies through the co-ordinated management of a portfolio of projects to achieve benefits of strategic importance. It is acknowledged that the term “program” has various other meanings. The definition above relates specifically to this policy. • Initiative: is a combination of activities that may include programs, projects and ongoing service delivery that all contribute to a common outcome or goal. What a program or project is not: • Ongoing service delivery – activities that deliver day to day services of the department. Activities include asset and system operations and maintenance; business systems that deliver policy, planning and information

8. Project Types – and what was appropriate for each …

9. Key Roles and Responsibilities There were challenges about roles and responsibilities ….. • Senior Responsible Owner • Program / Project Manager • Project Control Board • Business Performance Management Committee • DTF Gateway Reviews

10. Program & Project Classification Classification Criteria • Notes • Budget includes all project costs, less the cost of existing permanently employed staff. • Risk is determined using the DSE approved risk management framework • The flow is determined by the higher criteria triggered (budget or risk); e.g. a project with a budget of $200 K but presents a high risk will need to fulfil the requirements of the Full flow process.

11. End-to-End Framework Overview

12. Positioning the EPO Approach‘Mirroring the culture’ Risk AbdicationApproach Risk ManagementApproach Risk RegulationApproach DSE’s EPO ServiceStructureTransparency Highly regulated, direct management or oversight of projects Distributed power or weak governance

13. EPO Mission Deliver services, provide structure, and create transparency to enhance DSE’s capacity to prioritise, deliver and manage projects at a regional, head office and executive level.

14. EPO Objectives • Facilitate reporting • Share knowledge • Advise project teams & review boards • Assess projects • Escalate issues • Measure success

15. Approach Business Strategy Establish Enterprise Priorities Adjust Project Portfolio Identify Improvements Asset Transformation Project Proposals ProjectPortfolioManagement Day-to-dayPortfolioManagement Retirement Manage Portfolio Execution Assess value Assess Value Manage Usage Implement Projects/Programs New/Modified Assets Operational Process Transformational Process Source: based on META Group Inc., 2003

16. DSE’s Project Office Project Office Project Health checks Capability building Practices Review Services • Professional development • Community of interest • Monthly news letters • Monthly seminars • Coaching • Facilitation • Policy • Framework • Templates • Tools • Reporting • Project Analysis • Reports • Facilitating Approval process • Centralised document storage • Project Health checks • Documentation Review • Coaching • Workshop facilitation • Guidance

17. Key successes • Project Management development pathway • Establishment of the End to End PM framework – and the revised version • Increase in project management understanding • Increase in competency at the practitioner level • Increased awareness of the policies, framework and PO Services, • Increased planning workshops requested • Project office tools – project register • Central storage of project data • Organisational wide reporting system • Increased awareness of organisational gaps

18. Key Challenges • Evaluation of organisational delivery – have we added value? • Universal adoption of project management • Project approval process – side step it • Executive support for PM and the approval process • Increased competency - recognition of PM as a profession • Project governance & SRO role • Program & portfolio management • Integration with other key business processes • Clarity of project definition • Project reporting

19. Where to get help The Project Office Website Project Office – 963 78778

20. Question and Discussion Time TUESDAY 9 OCTOBER, 2007 Project Management - Setting the Standard Australian Institute of Project Management National Conference 2007 Hobart Tasmania October 7 – 10, 2007

21. AFTERNOONREFRESHMENTS Trade Exhibition Area Please reconvene at 14:30in the Grand Ballroom TUESDAY 9 OCTOBER, 2007 Project Management - Setting the Standard Australian Institute of Project Management National Conference 2007 Hobart Tasmania October 7 – 10, 2007