Successful Delivery Pocketbook

Leading and directing successful delivery

Contents
3
Introduction
The delivery landscape Delivery framework Key roles The key issues

4
6 8 9 10

Delivery planning
Delivery planning steps Information needed for delivery planning Techniques to help with delivery planning

11
12 20 22

Implementing plans
Programme and project delivery Decision points Decisions in the wider corporate context Managing change

35
36 38 41 42

Operational services
Managing operational services Achieving outcomes/realising benefits Managing service contracts

43
44 45 46

Corporate standards
What should be in place to enable you to deliver? Processes and standards

47
48 49

Further information

50

Introduction
4
The challenge to all public sector organisations is to find the most efficient way to successfully deliver their services. Most organisations depend on third parties to deliver their outcomes, often through complex networks of delivery agents. To help their organisations to improve, senior managers need to understand their leadership role in delivery, to strengthen the linkage from policy through to the front line and to be more effective in their delivery planning. This Pocketbook explains senior managers roles in planning and managing successful delivery. It also describes the steps to initiate effective programmes and projects, together with an outline of the information needed to support informed decision making. The Pocketbook includes advice on achieving planned outcomes and benefits realisation after implementing new ways of working. It uses proven best practice techniques, taking account of lessons learned from OGC GatewayTM reviews and other sources; it integrates with existing programme/project and risk management guidance.

Who should read the Pocketbook?

If you are a senior manager, the Pocketbook helps you to understand the key decisions you need to make about delivery and the governance arrangements you should have in place If your task is to advise or support senior managers, the Pocketbook provides you with an outline of the activities and information that you need to check.

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KEY TERMS Policy: the translation of governments political priorities and principles into programmes and courses of action to deliver desired changes [NAO definition] Outcome: the result of implementing policy Benefit: a measurable improvement Project: particular way of managing activities to deliver specific outputs over a specified period of time and within defined resource constraints Programme: management framework for co-ordinating related projects to deliver outcomes and benefits Portfolio management: selection and coordinated management of an organisations programmes and projects Centre of Excellence: the coordinating function in an organisation that provides strategic oversite, scrutiny and challenge across its portfolio of programmes and projects.

The delivery landscape

6
In pursuit of providing better public services, more efficiently, the Government is encouraging public sector organisations to consider more collaboration in delivery. Many already have complex delivery chains - often so complex that they should really be viewed as a landscape rather than an end-to-end chain. The figure opposite shows such a landscape, where the central department (Department for Education and Skills) delivers its services through networks of intermediaries to reach the front line. These networks include: other government departments and cross-cutting units national delivery agents such as the Learning and Skills Council local delivery, both at regional and local levels, such as Regional Development Agencies and local employers organisations the front line - those directly affected, such as school leavers, and those who are stakeholders such as parents. Central government departments may have no direct control over many of their partners; they may decide to reduce central control to enable more flexible responses at local levels. Effective service delivery through agents and partners depends on clear co-ordination with simple lines of communication and accountability. The National Audit Office (NAO) identifies five key issues relating to delivery of better public services: complexity of the delivery chain - this must be managed well so that funds reach the front line delivery agents capacity of delivery organisations - adequate skills, equipment and infrastructure targeting of resources - maximising the potential to improve services risk management - addressing the factors that could impede delivery and providing contingency arrangements if risks materialise monitoring and evaluating performance - monitoring progress against targets and taking appropriate action where required.

Source: NAO

Delivery framework
8
The table below summarises the linkages between policy, delivery and the front line. In practice, the linkages may be complex - especially in the delivery chain, where multiple partners may be collaborating on crosscutting initiatives. Whatever the relationships between the parties, there should be a clear linkage between the policy formulation, its intended outcomes, delivery to the citizen and evaluation of outcomes. Who Central government department* Local authority NHS body Other public sector organisations Delivery chain What Sets policy; determines delivery plan within current departmental capability; manages and evaluates outcomes Delivers services/ outcomes on behalf of department; may include department itself, other departments, its agencies, the voluntary sector, intermediaries and or NDPBs, the wider public sector and/or suppliers Delivers services in a responsive, outcome focused and accountable way to individuals and communities, gathering feedback on the customer experience and transmitting this to others in the delivery framework How Policy definition; programme brief; performance targets and trajectories for expected outcomes Delivery programmes and projects Managing operational services

Front line - interface to the citizen

Clear objectives and defined outcomes with appropriate key performance indicators, performance measures, baseline measures, reporting on progress towards targets, acting on front line feedback.

*Note: throughout the Pocketbook the term department is used to mean any public sector body

Key roles
9
Delivery roles might be at the management board level, taking a corporate overview across the whole of the department or responsible for individual programmes, projects or operational services. An individual might have more than one role; they are not mutually exclusive. The table below summarises the key roles; the exact titles of the roles will vary from department to department. Perspective Management board Responsibility Setting strategic direction Making investment decisions Managing commercial aspects Managing corporate governance Who Management board members; PSA targe holders Corporate investment board members Heads of procurement or commercial directors Accounting Officer Heads of Centres of Excellence or equivalent coordinating groups Senior Responsible Owner (SROs) Programme and project board members, Senior Responsible Industry Executives (SRIES) SROs Their industry equivalents-SRIEs

Corporate overview of current delivery portfolio

Individual programmes and projects

Delivering outcomes through programmes and projects

Ongoing operational services and benefits realisation

Continuing to deliver outcomes through operational services

The key issues

10
What are the things you must get right?
Experience has shown that there are common issues and areas of weakness for every programme or project. If your organisation relies on third parties for delivery, these are the key things you must get right: Better informed investment decisions: a business case that helps the organisation to determine exactly what it wants to achieve and how it will do so, rather than just used to obtain funding; sound investment decisions that are based on strategic fit, adequate options explored, affordability, improving efficiency, achievability and appropriate commercial arrangements that are value for money; informed by more reliable estimates More effective engagement with stakeholders: clear understanding of their needs and the outcomes to be achieved, especially the views of end-users; managing potential conflicts of interest; consulting and communicating about key decisions Better understanding of the supplier marketplace: early engagement with the market to establish what they can and cannot do, backed up by reliable assessments of individual suppliers; different ways of doing business considered, including more use of smaller suppliers Good understanding of the delivery chain: effective governance where everyone understands their role, responsibilities and reporting lines More effective management of risk: realistic assessments of risk and uncertainty; appropriate balance of cost, benefit and risk; risks allocated to those best placed to manage them and prompt action to deal with risks if they emerge Taking a whole life view: understanding that delivery does not end with implementation but continues into operational services; considering how suppliers and performance will be managed; taking a long term view, including likely change and how it should be managed Active management of intended outcomes: effective monitoring of progress and performance including the customer experience of policy delivery taking prompt corrective action as required. Feedback to policy-makers from the front line.

Delivery planning
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Delivery planning steps Information needed for delivery planning Techniques to help with delivery planning

Delivery planning steps

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This section of the Pocketbook describes the steps you should take to decide on the best way forward to achieve the outcome you want. For convenience, the steps are described in a sequence; in practice, you will revisit some of the steps as your available choices become clear. The steps and their interdependencies are summarised overleaf. The Delivery Units guidance on delivery planning and trajectories provides detailed advice on delivery planning. Your objectives in delivery planning are to: initiate a programme or project to achieve the outcomes you want; this may be delivery of a policy requirement or implementation of a major change to the business and might involve a number of organisations collaborating to deliver the outcome make sure that it can be delivered as part of the current and planned commitments of all the organisations involved find the most efficient delivery channel. The figure below summarises what you need to consider for programme and project initiation - what you want to achieve (model of causation), what is likely to achieve that outcome (model of what works) and who will deliver it on your behalf (map of delivery agents). You also need to consider the context of your organisations current work and plans.

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1: What do you want to deliver and when?
Use the Prime ministers Delivery Units three stage model to inform your thinking about what you want to achieve and gain a good understanding of the status quo. Describe why the work needs to be done - for example, to meet a policy imperative or respond to a driver for change. Describe the required outcome in measurable, time-based terms - what you want to change and how you will know that you have changed it. Identify high level benefits, how they contribute to strategic objectives and how they will be measured. Identify the causal factors - what needs to be in place for the outcome to happen? Describe the actions/projects that need to be undertaken; think about the interfaces with related programmes and projects - which may or may not be under your control. Take account of the checklist for effective policy making (see the box below). CHARACTERISTICS OF EFFECTIVE POLICY MAKING Forward looking: outcomes clearly defined; long term view of the likely effect and impact of the change Outward looking: takes account of factors, nationally, in Europe and internationally; reflects knowledge and lessons learned from the experience of other countries Innovative, flexible and creative: questioning traditional ways of doing things; looks at new ways of working that other organisations have adopted Evidence-based: best available evidence (both reliable and comprehensive) used; key stakeholders involved from an early stage and throughout Inclusive: key stakeholders involved directly; account taken of the impact on all people affected by the change Joined up: holistic view, looking beyond immediate boundaries to government strategic objectives Review: process for constant review to ensure that the change really is dealing with issues it was designed to solve Evaluate: process systematic evaluation of the effectiveness of the change; success criteria defined Learns lessons for the future.
Source: CMPS

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Delivery planning overview

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2: Resources: What capabilities and resources will you need?
Base your estimates on what others have done, wherever possible. Look at the current priorities with other programmes and projects in your organisation to arrive at the optimum allocation of resources that you are likely to be able to obtain. Establish the skills and expertise you need (capability to do the job) and the numbers of people who will be required over the lifetime of the project (capacity). Estimate the whole-life cost of the change - people and physical resources (buildings, technology etc). Consider whether your organisation has enough experience and skills to manage new arrangements where they involve working with others. Determine the budget/resource limits and where the costs will fall. Make an assessment of the capabilities and capacity that is likely to be available to you, within your organisations overall commitments and capability. Confirm this assessment with your centre of excellence or equivalent coordinating group.

3: Evidence: where is the evidence that it could work?

Look at what others are doing. Compare your programme or project with other ways of delivering a similar outcome - public/private sector and internationally. Take account of factors that could affect success, such as cultural differences. Identify why others have succeeded - or failed - and the lessons learned from their experiences. Establish how much is new or changing in terms of people and the way they work, services and physical resources such as buildings and IT. Make a realistic assessment of the likelihood of success, given your organisations existing commitments, priorities, capability and capacity. Consider whether critical business processes would be affected; consider breaking the work down into smaller packages instead of doing everything at once. Revisit the priorities; in addition, expect the unexpected - could you cope with unforeseen change? Contingency plans need to be outlined at this stage. Seek advice from your centre of excellence on the realism of the proposed way forward. Discuss potential ways forward with suppliers, where appropriate.

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4: Action: Decide who will deliver the outcomes?
Establish who will be responsible for each aspect of delivery; check that they have the capability and capacity to deliver what you require. Where third parties are suppliers, engage early with the marketplace to check that they are likely to be interested and offer good value for money. Decide how risks will be allocated and managed. Where relevant, look at opportunities to exploit technology to deliver the capability you need - perhaps providing services direct to the citizen. Establish responsibility for project/service delivery in the initial planning stages.

5: Leadership, project structures: How will you work together?

Establish who will be responsible for making investment decisions (for example, the management board, partners) and who will be the senior individual responsible for the project/programme as its owner. Check that the right person is given the role, in terms of their authority and responsibilities in relation to the proposed change. Define high level governance structures and responsibilities for all parties in the delivery chain; consider how different responsibilities fit together and how everyone involved will understand their role and responsibility. Define high level arrangements for reporting downwards on policy and business requirements, reporting upwards on progress, performance and risks and taking prompt action as required. For joint programmes and projects, identify the additional arrangements that need to be in place. Ensure that reporting lines will be kept as short as possible. Clarify working arrangements at both project and service delivery level. Confirm these arrangements with your centre of excellence.

6: Capability: Who could deliver the required outcomes?

Look at the whole delivery chain - your organisation, business partners, suppliers and their suppliers, your advisers and front line organisations interfacing with the citizen. Consider innovative ways of delivery, such as collaborating with intermediaries where there are appropriate incentives.

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7: Risk/dependencies: What are the options?
Consider a wide range of possibilities and the trade-offs associated with each. Consider innovative ways of delivery, such as collaborating with the private sector where there are appropriate incentives for them to do so. Check for opportunities to collaborate with others and for overlaps with programmes and projects already planned or under way; look at the interfaces with other initiatives/organisations. If it is an innovative approach, consider how to manage the risks and how well your organisation could cope with the scale of change proposed by more radical options. Look at the proposed way/s forward in the context of the business, its current portfolio and priorities; check that they fit with the organisations strategy. Establish that each of the proposed options are practical, realistic and viable; consider how well each option meets stakeholder needs. Identify the option with the most acceptable balance of cost, benefit and risk. Confirm the solution that offers best value for money.

8: Communications: How will you share knowledge and information with stakeholders?
Consider who your stakeholders are and what they want - the people who will be involved in/affected by the change and/or influence the outcome. In particular, think about the proposed way forward from the end-users perspective - take a customer focused view. Resolve any conflicting demands. Think about how you will achieve stakeholder buy-in and overcome any resistance to the change. Consider the perceptions that might have to change and how behaviours could be changed. Determine how you will communicate with stakeholders from the outset through to delivery of operational services.

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9: Timetable, monitoring, incentives: How will you monitor performance?
Revisit the key risks to performance and delivery. Risks relating to performance could include lack of public interest leading to poor take-up of a service; risks relating to performance could include over-ambitious timescales, inadequate resources and lack of essential skills. Set milestones - that is, progress checkpoints at specified intervals - against intermediate targets towards the required outcome. These milestones will enable you to track progress against plans and take action on any feedback relating to progress. Determine the trajectory for progress - whether change is likely to be slow at first and then speed up or whether there will be an immediate impact and then more gradual change. Identify performance measures that are SMART (specific, measurable, achievable, realistic and time-based); determine mechanisms for reliable and regular performance information. Think about the incentives for staff, partners and suppliers that will encourage a successful outcome. Check that performance information can be collected efficiently and in good time to take remedial action if required. Confirm performance reporting arrangements with your centre of excellence.

Information needed for delivery planning

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Use the outlines below as a starting point for your own delivery planning documentation. You will need this information for programme/ project initiation.

High level options

This establishes the scope and context of the proposed way forward; it provides input to business case development. Why the work needs to be done: business/policy need, required outcomes; benefits; success criteria against targets Scope of the programme/project: what is included/excluded; boundaries Strategic context: contribution to strategy and fit with current priorities Constraints such as timescales and resources High level options appraisal and recommended option/s, balancing cost, benefit and risk Cost: a realistic estimate that is affordable Required resources (capability and capacity), demonstrating that the way forward is achievable Sourcing: where the resources will come from (internally, partners, suppliers etc).

Programme or project brief

This defines the programmes/projects objectives in outline and provides input to detailed programme/project planning. Information for a programme brief is shown below. Background to the business need Vision statement: a description of the capabilities the organisation seeks to achieve from the programme, including performance measures, service levels, costs; key targets Main stakeholders, especially service users Benefits expected and how measured Estimate of overall effort required and who will do it Outline of activities required Key milestones, including critical stages Relationship between success factors and key interfaces/dependencies with other programmes.

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Stakeholder analysis and communication strategy
This manages the perceptions and expectations of all stakeholders. Objective: what you want to achieve - describe the primary changes in perception/behaviour required Audiences: the stakeholders - state whether they are directly or indirectly affected by the change and whether they are key players. Identify which ones to inform, influence or control Messages: what you need/want to tell them - set out key messages that need to be covered, which will support the intended outcomes Tactics: how you will reach the various stakeholders - list the means of reaching the key groups, showing priorities, dates/milestones and who will be responsible for each action (by organisation and role if not by name). Categorise the activities as: consult; keep informed; make aware.

High level risk management approach

This identifies the major risks and who will manage them. Principal risks and barriers, with evaluation of the nature and extent of risks; how linked to other risks How each risk will be managed - minimised, transferred etc Who will be responsible for what (and why) across the whole delivery chain How to deal with things going wrong: contingency plan.

High level performance management approach

This identifies responsibilities for assessing and taking action on benefits realisation and performance, what to do and when. Critical measures/indicators of success and benchmarks to measure against How performance is to be reported and monitored to ensure appropriate accountability across the delivery chain Governance framework - responsibilities and reporting arrangements for progress, performance, risk and issues that need to be resolved upwards; reporting arrangements for requirements downwards Arrangements for ensuring that the programme remains appropriate and relevant and continues to deliver the intended outcomes cost-effectively What to put in place to drive out further efficiency improvement.

Techniques to help with delivery planning

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The techniques on the following pages help you to identify the really important issues and questions that you should ask before committing to a definite way forward.

Business analysis
Business analysis helps you to gain a full understanding of the current and future business of your organisation, the way in which its business has been - and could be - conducted and of the imperatives and constraints acting upon it for delivery planning. These are the key questions to ask. What are the biggest constraints and how could they be removed? How could technology be used to change the way we do things? What tasks could we get our customers to do? What tasks could we get our partners and suppliers to do? What alternatives are there to the current delivery channel?

Benefits cascade
A benefits cascade shows the links between your highest level vision and objectives down to proposed options for delivery. If links cannot be made, reconsider what you are planning to do and why. Vision Aims (linked to strategic objectives such as PSA targets) Business objectives Strategic themes Strategic benefits (shopping list of things to achieve) Key programmes and projects Project objectives Options Optimum mix of benefits, cost and risk. Outcome relationship mapping (opposite) shows the dependencies between intended outcomes - for example, more effective learning by pupils cannot occur without improved teaching. A high level benefits management strategy (page 24) helps you to think through the practical steps to realise planned benefits.

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Outcome relationship mapping

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Benefits management strategy

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High level business case
To determine the optimum balance of cost, benefit and risk for proposed options, carry out a high level appraisal of the business case using the tables below. Consider trade-offs between strategic fit/achievability etc on the basis of your current priorities - e.g. speedy outcome may be more important than cost. As more detailed information becomes available, you should be especially rigorous in checking assumptions such as resource estimates and stakeholder commitment. Strategic fit How well does the option support the business strategy and current priorities? If it is a poor fit, can we change the scope? Should we do it at all? Options Have we explored a wide range? Have we considered innovative approaches and/or collaboration with others? If not, why not? Wide range Medium range Narrow range Good fit Adequate fit Poor fit

Achievable

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Achievability Can we achieve this with our current capability and capacity? If not, how can we acquire the capability we need and /or change the scope? Value for money Can we get value for money from our proposed sources (e.g. partners, suppliers)? If not, can we make our proposed option attractive to a wider market? Affordability Can we obtain the budget required to do this? if not, can we reduce the scope or deliver it over a longer period of time? can we seek funding from other sources? Very affordable Affordable Not affordable Good Adequate Poor Easy Achievable Difficult

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Business case challenge
In the figure below, use the achievability/worth-doing matrix to determine whether you can achieve what you want to do for your programme/project and whether it is worth doing. If it is difficult to achieve, consider how difficulties could be overcome - more time, more resources etc. If it is not worthwhile, consider whether changing the scope would make a significant difference. Revisit the box in the wider context of current priorities using evidence - based measures wherever possible to inform decisions. Use these questions to determine how worthwhile the programme/project is likely to be and how easy or difficult to achieve.

Is it worth doing?
What contribution to strategic objectives? What benefits? What added value?

Is it achievable?
What level of stakeholder buy-in? How well are success factors understood? What dependencies? What level of risk? How accurate and complete is the scope? How adequate are resources and processes to deliver it?

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High level risk management approach
You have to make choices about the risks you are willing to take to achieve the required outcome. A high level risk management approach helps you to think through the practical steps that need to be in place to manage risks across the whole supply chain.

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Modular and incremental delivery
These approaches help you to reduce risk by breaking delivery down into manageable components or tranches. Pilots or prototypes, to test on a small scale whether the proposed option would work in practice - but large enough to mimic the real thing Modules - a distinct part of the programme/project that delivers some benefit even if the other parts of the programme/project are not complete (e.g. providing one component of the planned service and adding others later) Increments - delivery in phases rather than a big bang, allowing evolutionary development and/or implementation of the overall change (e.g. fully operational to one region rather than nationwide).

High level cost management approach

A high level cost management approach helps you to identify when and where costs will fall and how costs could be displaced - savings or benefits achieved in one area could add to costs elsewhere in the organisation or delivery chain. This is especially significant where the organisation has to maintain parallel channels for service delivery.

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Performance technique: Goal Question Metric (GQM)
This technique helps you to measure performance by: defining goals associated with the programme, especially the critical milestones towards the intended outcome asking questions about progress towards those goals defining the key metrics (that is, performance measures of how much and when) to provide quantitative answers, to check actual progress against assumptions.

(Source: Basili and Rombach)

Stakeholder segmentation
Stakeholders are the groups or individuals who are directly involved in the programme/project and/or affected by the proposed change. Grouping stakeholders into segments helps the programme to develop effective strategies for dealing with the inevitable diversity of interests and influence. Segmentation also helps to ensure the channels for communication reflect the needs of the stakeholder groups and can be targeted appropriately.

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Stakeholder map
A stakeholder map lists each of the stakeholder segments against their particular interest area in the programme and can be used as input to the planning and implementation of the necessary communications process for a programme. Stakeholder segments Key Impact linkage on staff to strategic direction Impact on Public customers safety Competitive position

Segment A Segment B Segment C Segment D Segment E Segment F Segment G

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Commercial aspects
Your objective is to make effective use of third parties, including suppliers. Look at the main components of the delivery chain and check that your organisation has adequate commercial knowledge to obtain good value for money over the whole life of the investment. Use this checklist to help. Requirements: Clear and unambiguous; likely to be understood by the market? Supported by stakeholders, including end-users? Realistic? Sourcing: Opportunities to collaborate with others explored? Opportunities to achieve economies of scale considered (e.g. using government catalogues?) Within the markets capability to deliver? Procurement route where applicable: Complies with EU procurement rules? Appropriate procedure e.g. Restricted, Negotiated? Encourages integrated customer and supply chains as a delivery team? Enabling effective supplier involvement: Publishing requirements early to encourage good response? Packaged appropriately to obtain the best responses from industry? Supplier responses: Capability and capacity of likely suppliers established? Good understanding of their perspective e.g. business model and risks? Good understanding of expected relationship and likelihood of success?

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Contractual arrangement: If one supplier, how will they manage their supply chain? If multiple suppliers, how will you manage the supply chain? If part of the requirement is uncertain, is there scope for partitioning that part of the contract?

OGCs Decision Map

The Decision Map helps senior managers and their advisers with the strategic planning needed before projects begin and to determine an appropriate procurement approach: if there is confidence about the long-term goal, stability of the organisation and business objectives, and the outcome responsibility can be passed to a contractor, then there is scope for contracting for an outcome, using a partnering approach where appropriate where there is stability of requirement, but a relatively simple set of objectives and processes, then contracting for outputs is the most likely path where there is low stability, frequent change, and new approaches are developing rapidly, contracting for inputs is the better option. The Decision Map can be found in OCGs Successful Delivery Toolkit and is supported by practical advice on contract clauses and schedules.

The IT Supplier Code of Best Practice

The aim of the Code is to facilitate a more mature acquisition and delivery environment that provides: for the customer - greater certainty of successful delivery and better value from IT- enabled programmes for the supplier - more successful and sustainable business for a fair rate of return. The Code describes the standards of best practice that all IT suppliers working in the public sector should strive to achieve; its general principles have wider applicability. It sets out the principles of best practice in a series of ten commitments. These focus on the role of the supplier but recognise that the Code will operate most effectively where its values are complemented by the customers approach.

Implementing plans
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Programme and project delivery Decision points Decisions in the wider corporate context Managing change

Programme and project delivery

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Who is responsible?
Senior managers who are appointed to specific roles related to programme/project delivery - responsible for providing appropriate direction and timely management action, relevant to your role, focused on achieving successful delivery and achievement of outcomes. The figure below shows how the key programme roles are organised: Sponsoring Group: responsible for making the investment decision. For cross-cutting initiatives, it is important to clarify who holds the budget, who pays for what and when SRO: personally responsible for the success of a programme. If it is a cross-cutting initiative, there should be a single SRO with overall responsibility for a successful outcome, supported by representatives from each of the collaborating organisations. Where private sector partners/suppliers are involved, there should be a senior manager with an equivalent role - the Senior Responsible Industry Executive (SRIE) programme board members - responsible for decision-making support to the SRO - as the programme boards executive a stakeholder group representing their interests business change manager(s): responsible for transition and embedding of change (programmes only). For cross-cutting initiatives, there should be one for each organisation involved.

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The figure below shows how the key project roles are organised: SRO: personally responsible for the success of a project where private sector partners/suppliers are involved, there should be an SRIE project board members - responsible for decision-making support to the SRO as the project boards executive a stakeholder group representing the interests of end-users and other stakeholders a project assurance team to check that the required quality is being achieved delivery chain(s): external to the project organisation. Where multiple agencies are involved, clear reporting lines must be defined for each. There may also be a requirement for: professional advisers to the SRO, with specialist expertise a project director (or equivalent title) representing the interests of the business on behalf of the SRO and providing the day-to-day interface to the project manager (essential for most construction projects).

Decision points
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Decisions about individual programmes and projects
The figure opposite summarises the wider context of programme and project delivery. It shows how the policy cycle is supported by OGCs GatewayTM Review process, which provides independent reviews at key decision points in the delivery of programmes and projects to check that they are ready to continue to the next stage. Note that GatewayTM reviews are not intended to challenge or confirm whether this is the right project (doing the right thing) - this is a decision that can only be made by the business. They are intended to check that the project is likely to succeed (doing things right) in terms of management of risk, achievability against planned milestones and so on. GatewayTM Review 0 is a repeatable review for programmes only. It helps you to make a strategic assessment of the programme: confirming or revisiting the need for the programme checking that it is likely to achieve its intended outcomes. GatewayTM Review 1 investigates the business justification for the project. It helps you to check that: appropriate options have been identified and appraised affordability, achievability and value for money are established. GatewayTM Review 2 examines the procurement strategy (or equivalent sourcing strategy with existing delivery agents, where appropriate). It helps you to check that: an appropriate procurement strategy has been developed requirements have been specified in a way that will encourage a good response from the market.

Policy, programmes and projects

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GatewayTM Review 3 confirms the investment decision. It helps you to check that: the recommended contract decision is likely to deliver what is required on time, within budget and achieve value for money there are sound plans for implementation, risk and change. GatewayTM Review 4 investigates readiness for service. It helps you to check that: plans for managing implementation and operation are realistic the plans are shared and understood by the entire delivery chain. CHECKLIST: READINESS FOR A NEW SERVICE Successful implementation requires that: the organisation is ready staff are ready the public are ready providers are ready contract management is in place service management is in place benefits management is in place performance measurement is in place changes ahead have been thought about. GatewayTM Review 5 is repeated over the life of the investment in delivery to evaluate the ongoing benefits achieved. It helps you to check that: the expected benefits are being delivered and opportunities to achieve more benefits are being taken up the relationship with suppliers and the potential to improve are being actively managed.

Essential reading/reference
GatewayTM checklist for managers

Decisions in the wider corporate context

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New programmes will be delivered in a complex multi project environment where there will be inevitable conflicts and interactions - such as conflicting priorities for scarce resources and interdependencies between projects. There must be continuous alignment of progress (projects and programmes) with the business direction. The key question is: Can everything be done? Your departmental centre of excellence or equivalent coordinating function will be responsible for advising senior management on the portfolio, its progress against plans and any problems with conflicting priorities. You may have to make hard choices about programmes, projects and resources in the light of changing strategic direction and changing priorities: programmes and projects - continue, complete, defer, stop/scrap resources - deploy or redeploy; acquire; develop. At each decision point you should revisit programmes and projects in the context of the portfolio - for example: Has the strategy changed? Are priorities different? Are resources no longer available? What should be done if a project is out of control? What would be the impact of redeploying resources to support failing projects? Your management board will need to track the portfolio and progress against key outcomes, taking prompt corrective action when required. Your centre of excellence should provide you with the information you need; you will want to check monthly on the mission critical projects. You will also want to be kept informed about the organisations total exposure to risk.

Managing change
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There are five main phases in a change initiative. Identifying the change is about determining whether it is a forced change or something that the organisation wants to do, then identifying the main considerations. These include thinking about why the change is needed, what stakeholders want, the scale of the change and the main issues that could affect success. Initiating the change is about agreeing the need for change and setting up the arrangements for delivering the change. Planning the change involves translating high level requirements into detailed action plans. It starts by exploring the options for achieving the change, then prioritising the projects to deliver the change and detailed programme planning. Implementing the change is carried out in two steps: developing new ways of working managing the transition to those new ways of working. Deploying and reviewing the change is about making sure that change sticks with the new operational arrangements, measuring success and looking to the future, because change always leads to further change. The cultural aspects are the most important aspect of a change initiative and can make the difference between success and failure. In an IT-enabled change such as implementing customer relationship management systems, only 20% of the project effort relates to the technology. 80% of the effort is concerned with preparing people for new ways of working - staff, stakeholders and end-users. Good communications are vital to the success of every change initiative.

Operational services
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Managing operational services Achieving outcomes/realising benefits Managing service contracts

Managing operational services

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Key questions after transition to new ways of working
After a transition stage in which your organisation implements new ways of working (such as developing new services to the citizen or improving current processes) you will need to ensure that operational services are running smoothly and improving over time. The workbook for OGCs GatewayTM Review 5: Benefits Evaluation covers the detailed questions that should be asked over the life of the services. The main questions are summarised below. Was the business case justification for the project at OGC GatewayTM Review 3 realistic and are the expected benefits actually being delivered? Have we done a post-implementation review or equivalent review of business benefits? Have we got enough resources to manage the service/contract successfully and with continuity of key personnel? If we have made agreed changes, can we be sure that they do not compromise the original procurement? Is there still a business need for this service/contract? If circumstances have changed, are the service delivery and contract adapting to the new situation? Are we actively seeking to improve efficiency, value for money and performance? Are we ready for the future, with plans for future service provision? Have we plans to continue to measure the efficiency of service provision and is there a suitable benchmark to test against? Are the exit strategy and arrangements for recompetition still appropriate? Are we actively learning from experience and setting maturity targets?

Achieving outcomes/realising benefits

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As part of your delivery planning you will have determined the critical measures and indicators of success. You should also have arrangements for ensuring that the programme remains appropriate and relevant and continues to deliver the intended outcomes cost-effectively. There should be progress checkpoints at specified intervals against intermediate targets towards the required outcome. For example, in Year 1 you expect 10% of citizens to use an e-enabled service; by Year 2 there should be 25% of citizens using the service and so on. At pre-defined decision points throughout the life of the operational service (such as before a scheduled GatewayTM Review 0) you should be checking that: the planned outcomes remain achievable and not changed in scope, relationship or value the principal stakeholders remain committed and confident that outcomes will be achieved when expected the plan for achieving outcomes is being actively managed, monitoring delivery against agreed performance measures/key performance indicators and any problems resolved promptly. Where key benefits have been identified, such as more effective service delivery, increased efficiency or cost savings, these should be actively managed in the same way. You must be able to define exactly what a benefit will deliver in a way that can be measured, within realistic timescales, costs and risks. Each benefit must be linked to planned outcomes and each benefit must be assigned to an owner who is accountable for its realisation. For major programmes, there will be a business change manager coordinating benefits realisation on behalf of the business areas owning the benefits.

Managing service contracts

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Managing service contracts
If you are the owner of an operational service, you will want to ensure that the right processes are in place over the life of your contracts. Experience has shown that the main causes of failure are a contract that has not been thought through, weak management of the contract after award and failure to cope with change. The checklist below should help you to check that operational services will run smoothly. Developing the contract or contracts Clear ownership of requirements and outcomes from the service Senior management and other key stakeholders fully committed Thorough attention to risk management by all involved in delivery Shared understanding across the delivery chain of how the service will be provided Appropriate baseline measures for performance, efficiency, quality and budgets. Managing the contract Adequate skills and resources provided by all parties to the contract throughout the life of the contract Continual checking and revisiting of key assumptions Context, complexities and interdependencies of contract well understood by everyone involved Excellent governance arrangements and relationship management. Looking to the future Formal change management procedures that everyone follows Appropriate incentives for continuous improvement Continue assessment of the efficiency of the service provision Changes ahead considered and planned for, linked to ongoing business strategy Future supplier arrangements considered, such as exit strategy and recompetition.

Corporate standards
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What should be in place to enable you to deliver? Processes and standards

What should be in place to enable you to deliver?

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You must have:
a business strategy that has a clear direction set out, which is owned by all key stakeholders and informs all investment in business change; it should be underpinned by a corporate procurement strategy that sets the context for commercial arrangements with suppliers senior management commitment to delivery plans governance arrangements that clearly establish reporting lines, roles and responsibilities for delivery within the department and with others in the delivery chain (e.g. partners and suppliers) a consistent set of processes for managing delivery (see below) processes in place for learning from experience and improving the departments ability to deliver.

Who is responsible for organisational standards?

Depending on your organisations internal structure, responsibility for delivery will be taken by the Accounting Officer; Head of Centre of Excellence or equivalent; risk implementation manager or equivalent senior roles. They are responsible for putting a governance framework for delivery in place (so that there can be appropriate delegation to the front line delivery agents and clear reporting lines); ensuring that there are the people, processes, funding and organisational structures required for successful delivery and a commitment to continuous improvement. They should make everyone who needs to know aware of the consequences if good practice is not in place: programmes and projects will not meet business need in terms of doing the right thing the department will be vulnerable to changing business priorities it may not be able to deliver because of inadequate capability/capacity risks will not be managed there will be inconsistent approaches to delivery, so the department will be unable to learn from experience.

Processes and standards

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You need to have effective processes and standards for: strategy formulation and management: a clear statement of strategic direction to which every programme and project contributes plus feedback to policy makers business case development: structured thinking and decision-making to justify investment against strategic fit, achievability, affordability, a wide range of options and commercial aspects requirements development: a thorough investigation of the business need, including the needs of key stakeholders and end-users, translated into a specification that can be met by suppliers programme management: managing stakeholder needs and the delivery of a co-ordinate set of projects, which ensures that the right governance arrangements are in place and critical relationships between projects are managed project management: providing a framework for decision making and reporting on project progress to ensure that the project meets the specification, is on time and within budget procurement: enables acquisition within EU procurement rules contract and supplier management: provides the foundation for operational service delivery and relationships with suppliers risk management: enables all the major risks to be identified and managed benefits management: provides a framework for realising the benefits on which the investment was justified plus feedback performance management: sets targets for performance and continuous improvement.

IT service provision
OGCs IT Infrastructure Library (ITIL) is an important standard for IT service provision, which gives the customers of IT services confidence that their service providers comply with internationally adopted best practice.

Further information
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The principles outlined in this Pocketbook are explained in more detail in OGCs Successful Delivery Toolkit (available on the OGC website at www.ogc.gov.uk/sdtoolkit). For more information about how OGC is working with the public sector to help improve efficiency, gain better value for money from commercial activities and deliver improved success from their programs and projects, visit the website at www.ogc.gov.uk The central organisations involved in developing the Pocketbook include: the National School of Government (formerly Centre for Management and Policy Studies - CMPS) www.nationalschool.gov.uk HM Treasury: www.hm-treasury.gov.uk National Audit Office: www.nao.gov.uk e-Government Unit: www.cabinetoffice.gov.uk/e-government Office of Government Commerce: www.ogc.gov.uk Office of Public Services Reform: www.cabinetoffice.gov.uk/opsr The Prime Ministers Delivery Unit: www.cabinetoffice.gov.uk/pmdu In addition, a number of departments and other public sector organisations have contributed their ideas and good practice. Their contribution is acknowledged with thanks. Office of Government Commerce Rosebery Court St Andrews Business Park Norwich NR7 0HS OGC Service Desk: 0845 000 4999 Email: ServiceDesk@ogc.gsi.gov.uk

About OGC OGC - the UK Office of Government Commerce is an Office of HM Treasury. The OGC logo is a registered trademark of the Office of Government Commerce. OGC Gateway is a trademark of the Office of Government Commerce. OGC Successful Delivery Toolkit is a is a trademark of Office of Government Commerce. OGC Service Desk OGC customers can contact the central OGC Service Desk about all aspects of OGC business. The Service Desk will also channel queries to the appropriate secondline support. We look forward to hearing from you. You can contact the Service Desk 8am - 6pm Monday to Friday T: 0845 000 4999 E: ServiceDesk@ogc.gsi.gov.uk W: www.ogc.gov.uk

CP0043/01/06

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